Cisco Talos2d agoenergy 44

IR trends Q3 2026: Actors impersonate IT help desks in vishing attacks as ransomware activity increases

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Phishing remained the leading initial access technique, appearing in slightly over one-third of all Cisco Talos Incident Response (Talos IR) engagements — a decrease from over 50 percent last quarter. In addition to traditional phishing links and attachments, we observed numerous threat actors conducting voice phishing (vishing) in tandem with IT desk impersonation to socially engineer the victim into allowing remote access via a legitimate remote monitoring and management (RMM) tool. Exploitation of public-facing applications was the next most common vector, accounting for one-third of Talos IR engagements. Threat actors predominantly targeted edge devices such as security gateways and remote network management interfaces. These are critical components within enterprise environments, often responsible for managing authentication, network traffic, or sensitive data. Compromising them can provide broad access to internal networks or user credentials.  Ransomware and pre-ransomware incidents made up 27 percent of engagements in Q3 2026, an increase from a maximum of 20 percent seen in the previous four quarters. Talos responded to attacks involving prolific, technologically advanced, and well-established ransomware-as-a-service (RaaS) variants such as The Gentlemen, Qilin, and Rhysida, as well as Interlock, which operates as a closed group. Threat actors predominantly chose to disable endpoint detection and response (EDR) systems, often by exploiting vulnerable drivers or using Windows Defender Application Control (WDAC). Additionally, we observed the emerging ransomware variant VYPR, whose operator(s) tested a range of tactics, techniques, and procedures (TTPs) instead of following a standard attack method or affiliate playbook. Salt Typhoon-affiliated threat actors exploit public-facing application vulnerabilities for cyber espionage  Talos IR continues to see prolonged cyber espionage intrusions targeting the telecommunications sector. Talos attributed most of these intrusions with high confidence to China state-sponsored threat actors, including Salt Typhoon. The attackers in these intrusions routinely gain initial access by leveraging valid credentials and exploiting a known vulnerability (CVE-2023-20198) in publicly accessible web-based management interfaces—two of the most frequently observed initial access vectors this quarter. In one campaign, the threat actor deployed BadCandy, a malicious web shell implant known to be leveraged by Salt Typhoon, to maintain persistent and stealthy remote access.  The adversaries continue to employ living-off-the-land (LOTL) tactics, leveraging legitimate network infrastructure features — such as VPN access, traffic mirroring, and management protocols — to establish backdoors, exfiltrate data, and conduct reconnaissance. Exploiting a vulnerability in the web-based management interface, they created privileged accounts, disabled logging to conceal their activity, and altered configurations to maintain persistence, blending their actions with normal administrative operations to evade detection.    These intrusions revealed several security weaknesses in the victim environment, including reliance on password-only authentication without evidence of multi-factor authentication (MFA), use of legacy and weak management protocols (such as plaintext SNMP and outdated VPN encryption), and inadequate credential management practices. Attackers were able to create and abuse privileged accounts, disable logging, and manipulate configuration settings without encountering effective security barriers, enabling persistent and stealthy access. The absence of strong MFA and robust credential management are two of the most frequently observed security weaknesses this quarter.  AI exploited as a weapon and a target  Recent Talos IR investigations highlight the growing role of artificial intelligence (AI) in cybercriminal activity, both as a tool and a target. In one case, an internal threat actor who was hired under false credentials abused their privileged access to install AI-powered development tools, such as GitHub Copilot CLI and Anthropic Claude Code. While the investigation did not find evidence of malicious activity or data theft, the employee’s developer-level access — including cloning repositories, configuring plugins, and connecting to databases — could have enabled them to use AI tools to automate malicious actions within the organization.  A second investigation revealed an attack chain in which a compromised macOS endpoint, infected via a trojanized application, was scripted to scrape credentials from the macOS keychain specifically associated with the Anthropic Claude Code AI assistant. This direct targeting of AI-related secrets highlights an emerging threat, where attackers seek to compromise not only traditional user and system credentials but also those tied to AI platforms, which may grant access to additional sensitive data and advanced automation capabilities.   These incidents highlight the critical need for organizations to implement strong MFA and robust credential management practices, especially for AI platforms and development tools.  Ransomware trends  Ransomware and pre-ransomware incidents increased from a little over 20 percent last quarter to 27 percent in Q3, involving well-known threat groups like Interlock and the emerging ransomware VYPR. Frequently observed techniques involved deleting EDR systems and socially engineering victims into initiating remote management sessions. Emerging ransomware variant: VYPR  During a Talos IR engagement, we observed a ransomware variant called “VYPR” that we assess is relatively new and still operationally immature. This assessment is supported by the absence of an established data leak site (DLS), as none was referenced in the ransom note and associated DLS infrastructure was not created until after the engagement. The group also appeared to rely on older leaked Conti-derived source code with only minimal modifications, reflecting a relatively unsophisticated technical approach. Their operations further suggested experimentation rather than a refined playbook, as they took an unusually long time to exfiltrate and encrypt data while testing different exfiltration parameters and deploying multiple vulnerable drivers to disable EDR protections.   The actor gained initial access through voice phishing (vishing); they tricked a user into initiating a Microsoft Quick Assist session, allowing remote access to the endpoint. While the exact social engineering technique was not confirmed in this case, threat actors frequently impersonate IT help desks during vishing calls to manipulate victims into establishing remote connections — a tactic observed in several other Q3 engagements.   The actor was then able to utilize existing RMM software, which subsequently executed PowerShell commands to download and install a Microsoft Software Installer (MSI) package from a remote IP address. During the attack, the actor leveraged tools that are commonly observed during ransomware investigations, including MeshAgent, Rclone, PsExec, IP scan, and Microsoft Terminal Services Client (MSTSC). Notably, we saw exfiltration over multiple days, which is not commonly observed during ransomware investigations.    EDR killers: Why evade detection when you can destroy it?   We observed several instances where ransomware operators disabled EDR systems, prioritizing direct disruption of security controls. We observed Interlock ransomware actors making multiple attempts to impair endpoint detection EDR capabilities by trying to uninstall Cisco Secure Endpoint (CSE) on compromised systems and used tools such as PsExec.exe and taskkill.exe to terminate security services and integrity checkers, including cscm.e

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