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Phishing and Compromised Identities Replace Software Exploits as Leading Ransomware Entry Ooint, Sophos Reports





Phishing campaigns, malicious emails and compromised credentials have overtaken software vulnerability exploitation as the leading entry points for ransomware attacks, according to Sophos' State of Ransomware 2026 report, signalling that threat actors are placing greater focus on stealing identities than breaking into unpatched systems.

The report is based on responses from 2,158 IT and cybersecurity leaders across 17 countries whose organisations experienced ransomware attacks during the previous year. While ransomware groups continue to encrypt data in a large share of incidents, the findings point to a clear change in how attackers gain their initial foothold inside enterprise networks.

Malicious email accounted for 26% of ransomware attacks, making it the most common root cause identified by respondents. Phishing followed closely at 24%, while compromised credentials were responsible for another 23% of incidents. In comparison, exploited vulnerabilities accounted for 18% of attacks, a sharp decline from 32% reported in the previous edition of the survey.

Taken together, email-based attacks and stolen credentials were responsible for nearly three-quarters of reported ransomware intrusions, showing that attackers are increasingly relying on social engineering and identity compromise instead of searching for vulnerable internet-facing systems.

Sophos also found that 67% of organisations described the ransomware incident as the most serious identity-related attack they encountered during the past 12 months. Across the surveyed organisations, almost four out of five ransomware attacks originated through compromised identities, placing user accounts and authentication systems at the centre of modern ransomware operations.

The findings also challenge a common assumption about multifactor authentication. Sophos reported that MFA had already been deployed in 97% of attacks where compromised credentials were identified as the root cause, yet attackers still succeeded in gaining access.

According to the company, the figures do not mean MFA has become ineffective. Instead, they point to weaknesses in deployment and the growing sophistication of credential theft techniques. Some organisations may have protected only part of their infrastructure, leaving legacy systems, remote access services or administrative interfaces outside MFA coverage. Those gaps can provide attackers with alternative routes into corporate environments.

Attackers have also refined methods for bypassing authentication protections. Adversary-in-the-middle phishing kits can intercept authentication sessions, while stolen browser cookies and authenticated session tokens allow attackers to access accounts without repeatedly triggering MFA challenges. MFA fatigue attacks, where users are bombarded with repeated authentication requests until one is approved, continue to be used against organisations relying on push-based authentication.

Among organisations using MFA, one-time passwords, push notification applications and passkeys were the most widely deployed authentication methods. FIDO2 security keys ranked behind those options despite offering one of the strongest defences against phishing because authentication is tied to legitimate websites and cannot be replayed through fake login pages.

Although software vulnerabilities no longer ranked as the leading ransomware entry point, Sophos cautioned that organisations should not reduce their focus on patch management. Instead, the report recommends pairing vulnerability remediation with stronger identity security controls to reduce opportunities for attackers to obtain valid credentials.

To reduce the risk of email-driven intrusions, Sophos recommends deploying advanced email filtering alongside domain authentication technologies including DMARC, DKIM and SPF. These controls help organisations verify legitimate senders, detect spoofed domains and prevent fraudulent emails from reaching employees. The company also recommends regular phishing awareness training to help users identify increasingly convincing social engineering campaigns.

Beyond email security, Sophos advises organisations to strengthen identity protection through Identity Threat Detection and Response (ITDR), enforce MFA across every access point and routinely review both human and machine identities to remove unnecessary privileges, dormant accounts and outdated credentials that could be abused during an attack.

Chet Wisniewski, director and global field chief information security officer at Sophos, said organisations with stronger ransomware resilience typically rely on multiple defensive layers rather than a single security control. Network segmentation can slow lateral movement after an initial breach, Zero Trust Network Access (ZTNA) reduces dependence on traditional VPNs, and continuous threat detection gives security teams more opportunities to identify malicious activity before ransomware spreads across the network.

The report also found that ransomware operators successfully encrypted data in 56% of reported attacks. Although median ransom demands and payments have fallen compared with previous years, the findings show that attackers continue to achieve their primary objective once they obtain access. For defenders, protecting identities has become just as important as patching software, with user accounts, credentials and authentication systems now representing the most frequently targeted path into enterprise environments. 

Microsoft-Signed Driver Used to Disable Security Software in GodDamn Ransomware Attacks

 


A ransomware group known as Hyadina has been observed using a Microsoft-signed Windows kernel driver to disable endpoint security software before deploying its latest ransomware variant, GodDamn, according to researchers at Symantec. The campaign combines trusted administrative software, publicly available offensive security tools and a signed kernel driver to establish control over victim environments before encrypting systems.

Hyadina has operated as a ransomware-as-a-service (RaaS) group for approximately four years, evolving its malware from earlier variants known as Beast and Monster to its current GodDamn locker. The group primarily targets organizations in the United States while reportedly avoiding victims in former Soviet countries. Previous attacks have affected organizations across healthcare, manufacturing, education and several other industries.

Symantec was unable to determine how the attackers initially gained access to the compromised environment. The first confirmed activity appeared on May 29, when an unauthorized copy of AnyDesk was discovered inside the Music folder of an infected system. Although AnyDesk is legitimate remote access software widely used for IT support, threat actors frequently abuse remote monitoring and management applications because they provide persistent access while blending into normal administrative activity.

The following day, the attackers deployed an executable named symantec.exe, which installed a kernel-mode driver called PoisonX. Running in the Windows kernel gives a driver the highest level of system privileges, allowing it to interact directly with core operating system functions. According to Symantec, PoisonX carried a valid Microsoft Hardware Compatibility signature, enabling Windows to load the driver as trusted.

Once active, PoisonX terminated security-related processes and removed user-mode API hooks commonly used by endpoint detection and response (EDR) solutions to monitor application behavior. By disabling those monitoring mechanisms, the attackers reduced the visibility of security software before carrying out the remaining stages of the intrusion.

With endpoint protections weakened, Hyadina expanded its operation using a collection of credential theft and reconnaissance utilities. Investigators observed fourteen open-source tools designed to recover credentials from web browsers, email clients and instant messaging applications, as well as utilities capable of extracting Wi-Fi credentials and capturing live network traffic. All but one of those tools originated from NirSoft, which publishes legitimate Windows administration utilities. The remaining tool, Mimikatz, is widely known for extracting credentials and authentication material from Windows systems and is frequently abused during post-compromise activity.

The attackers also relied on PsExec, Microsoft's remote administration utility, to move laterally across the victim's network. Combined with legitimate remote management software, credential theft utilities and the signed kernel driver, the attackers were able to strengthen their foothold across multiple systems before deploying the GodDamn ransomware payload.

Symantec also examined the origins of PoisonX. The driver was uploaded to GitHub on April 7 by a developer using the name oxfemale, who described it as a research tool. The developer regularly publishes offensive security projects, including exploit proof-of-concepts, credential stealers and software designed to disable antivirus products, while identifying themselves on LinkedIn as a Russian security researcher specializing in reverse engineering and penetration testing. Symantec, however, considers PoisonX to be malware because its primary function is to disable security protections rather than support legitimate defensive research. Researchers said it remains unclear how the driver obtained Microsoft's Hardware Compatibility signature or whether the signing process was manipulated.

Microsoft maintains a Vulnerable Driver Blocklist to prevent known malicious or exploitable drivers from loading, even when they possess valid signatures. However, Symantec noted that newly identified drivers are not added to the blocklist immediately. Updates can take days or, in some cases, weeks to reach enterprise systems, leaving a window during which attackers can continue using newly signed or newly discovered drivers before defensive protections are updated.

Commenting on the broader use of legitimate software during ransomware intrusions, Symantec's Brigid O Gorman noted that nearly any administrative or security tool can become malicious when misused. She said this makes behavioral and adaptive security controls particularly important because they focus on suspicious activity rather than relying solely on known malicious files or applications. In the case of Hyadina, that combination of trusted software, publicly available offensive tools and a signed kernel driver enabled the attackers to disable security protections, steal credentials, move laterally through the environment and ultimately deploy ransomware.

Nvidia Introduces AI-Focused PC Chip as Industry Pushes Toward Local AI Processing

 Nvidia has announced a new processor designed to run artificial intelligence applications directly on personal computers, signaling the company's latest effort to expand beyond the data center market and into everyday computing devices.

The announcement was made by Nvidia Chief Executive Officer Jensen Huang during a keynote presentation in Taipei ahead of Computex, one of the world's largest technology trade shows. The new chip, called RTX Spark, was developed as part of a long-running collaboration between Nvidia and Microsoft aimed at adapting personal computers for increasingly complex AI workloads.

Unlike many current AI services that rely on cloud infrastructure to process requests, the RTX Spark platform is designed to execute AI tasks locally on laptops and desktop systems. This allows certain AI functions to operate directly on the device rather than sending data to remote servers for processing. Industry observers believe this approach could improve response times, reduce dependence on internet connectivity, and give users greater control over sensitive information.

Nvidia said the processor was developed in partnership with Taiwanese semiconductor company MediaTek. Systems powered by the chip are expected to become available later this year through several major computer manufacturers, including Dell, HP, Lenovo, ASUS, MSI, and Microsoft's Surface product line. Additional products from Acer and GIGABYTE are also expected to follow.

The launch places Nvidia in more direct competition with companies such as AMD, Intel, Apple, and Qualcomm, all of which are pursuing their own strategies for bringing artificial intelligence capabilities to personal computers. While Nvidia has established a dominant position in hardware used to train large AI models, the company is now increasingly focused on technologies that run AI applications after those models have already been developed.

A major objective behind the RTX Spark platform is support for so-called AI agents. Unlike conventional chatbots that simply answer user questions, AI agents are designed to perform sequences of tasks with limited human intervention. Potential applications include managing schedules, conducting research, organizing information, generating content, and carrying out routine administrative work.

According to Nvidia, future personal computers will need significantly more processing capability to support these systems because AI agents are expected to operate continuously in the background rather than responding only when a user initiates an action.

The company's emphasis on local AI processing reflects a broader trend emerging across the technology sector. Many firms are exploring ways to move AI workloads closer to users instead of relying entirely on cloud-based infrastructure. Supporters of this approach argue that local processing can improve performance while reducing network delays and operational costs.

The commercial success of AI-powered PCs, however, remains uncertain. Although several manufacturers have promoted AI-enabled devices as the next phase of personal computing, adoption has been uneven. Some vendors have reported positive contributions to sales, while others have indicated that demand has not reached the levels initially anticipated when the category was introduced.

Technology analysts nevertheless view the market as an area with long-term growth potential. Neil Shah, co-founder of Counterpoint Research, said the shift from application-centered computing toward AI-assisted systems could fundamentally change how users interact with their devices. He suggested that personal AI agents operating on local hardware may become increasingly common as the technology matures.

During his presentation, Huang also highlighted Nvidia's Vera central processing unit, which he previously described as providing access to a market opportunity worth approximately $200 billion. Nvidia stated that organizations including OpenAI, Anthropic, and SpaceX are among the early adopters evaluating the technology.

The Computex presentation also featured discussion about the future direction of artificial intelligence across the computing industry. Qualcomm Chief Executive Officer Cristiano Amon, speaking separately ahead of the event, argued that the industry is moving beyond AI systems that simply generate responses to prompts and toward software capable of carrying out tasks independently. He described 2026 as a potential turning point for agent-based AI, adding that existing device architectures were largely designed around actions initiated by users rather than autonomous software systems.

Huang also addressed concerns that advances in artificial intelligence could reduce employment opportunities for software developers. Rejecting that view, he argued that AI tools are increasing productivity and enabling organizations to undertake larger software projects, which in turn could create additional demand for engineering talent.

The announcements come as Nvidia continues to expand its presence across multiple segments of the AI market. After becoming one of the leading suppliers of hardware for AI model training, the company is now seeking a larger role in personal computing, inference processing, and AI applications designed to run directly on consumer devices.

The developments were unveiled in Taiwan, a location Huang described as central to the global AI supply chain. The Nvidia chief, who was born in the southern Taiwanese city of Tainan, has repeatedly emphasized the island's importance to the future development and production of advanced computing technologies.