Key Takeaways:
- Cybercriminals are increasingly posing as legitimate employees to gain access to corporate systems and steal sensitive data.
- Fake employee cyberattacks can be challenging to detect, but combining strong security operations center (SOC) practices with insider risk strategies can help close the gaps that threat actors exploit.
- Microsoft’s Detection and Response Team (DART) provides forensic insights and actionable guidance to help organizations detect, disrupt, and prevent similar attacks.
- Organizations can strengthen their defenses by improving visibility, protecting sensitive data, and monitoring for unapproved IT tools.
- The Cyberattack Series provides customers with real-world stories of cyberattacks, including how they happened, how they were discovered, and strategies to avoid similar attacks.
Introduction to Fake Employee Cyberattacks
In the latest edition of the Cyberattack Series, a real-world case of fake employees is examined. Cybercriminals are no longer just breaking into networks, but are also gaining access by posing as legitimate employees. This form of cyberattack involves operatives posing as legitimate remote hires, slipping past human resources checks and onboarding processes to gain trusted access. Once inside, they exploit corporate systems to steal sensitive data, deploy malicious tools, and funnel profits to state-sponsored programs. According to recent Gartner research, surveyed employers report that they are increasingly concerned about candidate fraud, with Gartner predicting that by 2028, one in four candidate profiles worldwide will be fake, with possible security repercussions far beyond simply making "a bad hire."
The Cyberattack Unfolds
The cyberattack began as a routine onboarding process, but quickly turned into a covert operation. Four compromised user accounts were discovered connecting PiKVM devices to employer-issued workstations, allowing unknown third parties to bypass normal access controls and extract sensitive data directly from the network. With support from Microsoft Threat Intelligence, the activity was quickly traced to the North Korean remote IT workforce known as Jasper Sleet. PiKVM devices, low-cost, hardware-based remote access tools, were utilized as egress channels, allowing threat actors to maintain persistent, out-of-band access to systems and bypass traditional endpoint detection and response (EDR) controls.
Microsoft’s Response
Microsoft’s Detection and Response Team (DART) quickly pivoted from proactive threat hunting to full-scale investigation, leveraging numerous specialized tools and techniques. These included Cosmic and Arctic for Azure and Active Directory analysis, Fennec for forensic evidence collection across multiple operating system platforms, and telemetry from Microsoft Entra ID protection and Microsoft Defender solutions for endpoint, identity, and cloud apps. Once the scope of the compromise was clear, DART acted immediately to contain and disrupt the cyberattack, disabling compromised accounts, restoring affected devices to clean backups, and analyzing Unified Audit Logs to trace the threat actor’s movements. Advanced detection tools, including Microsoft Defender for Identity and Microsoft Defender for Endpoint, were deployed to uncover lateral movement and credential misuse.
Strengthening Defenses
This cyberthreat is challenging, but it’s not insurmountable. By combining strong security operations center (SOC) practices with insider risk strategies, companies can close the gaps that threat actors exploit. Organizations can start by improving visibility through Microsoft 365 Defender and Unified Audit Log integration and protecting sensitive data with Microsoft Purview Data Loss Prevention policies. Additionally, Microsoft Purview Insider Risk Management can help organizations identify risky behaviors before they escalate, while strict pre-employment vetting and enforcing the principle of least privilege reduce exposure from the start. Finally, monitoring for unapproved IT tools like PiKVM devices and staying informed through the Threat Analytics dashboard in Microsoft Defender can give defenders the confidence to detect, disrupt, and prevent similar attacks.
The Cyberattack Series
The Cyberattack Series provides customers with real-world stories of cyberattacks, including how they happened, how they were discovered, and strategies to avoid similar attacks. DART is made up of highly skilled investigators, researchers, engineers, and analysts who specialize in handling global security incidents. The team is dedicated to working with customers before, during, and after a cybersecurity incident, providing forensic insights and actionable guidance to help organizations detect, disrupt, and prevent similar attacks. To learn more about DART capabilities, customers can visit the Microsoft website or reach out to their Microsoft account manager or Premier Support contact. The full report on the cyberattack can be downloaded to learn more about the incident and how to protect against similar attacks.
Conclusion
In conclusion, fake employee cyberattacks are a growing concern for organizations, but by combining strong security operations center (SOC) practices with insider risk strategies, companies can close the gaps that threat actors exploit. Microsoft’s Detection and Response Team (DART) provides forensic insights and actionable guidance to help organizations detect, disrupt, and prevent similar attacks. By staying informed and taking proactive measures, organizations can protect themselves against these types of cyberattacks and ensure the security of their systems and data. To learn more about Microsoft Security solutions, customers can visit the Microsoft website, bookmark the Security blog, or follow Microsoft Security on LinkedIn and X for the latest news and updates on cybersecurity.
