AWS and Cloudanix team co-authored this blog: Real-Time Threat and Anomaly Detection for Workloads on AWS

What is a Malicious Code?

Uncover how malicious code bypasses traditional antivirus. Learn the 4 stages of execution, the impact of Stuxnet, and 2026 multi-layered security practices.

Right from the early days of computing, when programmers began sharing code and started to collaborate more frequently, they encountered instances of code that were intentionally designed to cause harm or disruption to computer systems. This harmful code became known as malicious code.

Malicious code refers to any software or script designed to disrupt computer operations, steal sensitive information, or gain unauthorized access to systems. This term is primarily a part of application security threats and cannot be resolved or effectively controlled by traditional antivirus software.

Malicious code can enter systems through various means, such as email attachments, infected websites, malicious downloads, or removable media. Once inside, it can cause significant damage, including data loss, system crashes, identity theft, financial loss, and disruption of critical services. Some malicious code can also create backdoors, allowing attackers to gain unauthorized access to systems and networks, potentially leading to further exploitation and more severe consequences.

How does malicious code work in the first place?

Malicious code, once injected into a system, generally operates through a series of four stages. We have tried to simplify each stage and explain it in more detail. Let us take a look.

Initial Execution

The malicious code needs to be triggered to start its execution. This can happen in various ways:

  • User Interaction: The user might open an infected email attachment, click on a malicious link, or download and install infected software.
  • Exploiting Vulnerabilities: The code might exploit a security flaw in the system’s software or operating system to gain unauthorized access and execute itself.
  • Social Engineering: Attackers might trick users into performing actions that lead to the execution of malicious code, such as entering sensitive information into a fake website.

Establishing persistence

Many types of malicious code aim to establish a persistent presence on the infected system. This allows them to continue operating even after the initial infection vector is removed.

Common methods include:

  • Modifying system settings: The code might modify system settings to automatically start itself when the system boots up.
  • Installing rootkits: Rootkits are a type of malicious code that can hide itself from detection by the operating system.
  • Creating backdoors: Backdoors allow attackers to remotely access and control the infected system.

Carrying out malicious activities

The specific actions performed by malicious code vary depending on its type and the attacker’s goals. These actions might include:

  • Data theft: Stealing sensitive information such as passwords, credit card numbers, and personal data.
  • System disruption: Causing system crashes, data loss, or denial-of-service attacks.
  • Spreading to other systems: Replicating itself to other computers on the network.
  • Holding systems hostage: Encrypting files and demanding a ransom for their release (ransomware).

Evasion techniques

Malicious code often employs techniques to evade detection by security software. These techniques might include:

  • Polymorphism: Changing its code to avoid detection by signature-based antivirus software.
  • Stealth techniques: Hiding its activities from system monitoring tools.
  • Anti-debugging techniques: Making it difficult for security researchers to analyze the code.

By understanding how malicious code works, organizations and individuals can better protect themselves against cyber threats.

Malicious code example

Stuxnet is particularly one of the notorious examples of malicious code that came to light in 2010. It was a highly sophisticated worm designed to target and sabotage Iran’s nuclear program. Let us understand more about this attack.

How did it work?

  • Stealthy Infection: Stuxnet primarily targeted Siemens industrial control systems used to operate uranium enrichment centrifuges in Iran’s nuclear facilities. It spreads through infected USB drives, exploiting vulnerabilities in Windows systems.
  • Data Acquisition: Once inside the targeted systems, Stuxnet would gather information about the industrial machinery, including its operating parameters and status.
  • Malicious Manipulation: Based on the collected data, Stuxnet would subtly alter the control signals sent to the centrifuges. These alterations were carefully calibrated to cause them to spin at abnormal speeds, leading to their physical destruction.
  • Covering Tracks: To evade detection, Stuxnet would also modify system logs and tamper with monitoring systems to conceal its activities and make the damage appear to be the result of mechanical failures.

Impact of Stuxnet

Stuxnet was highly effective in damaging Iran’s nuclear program, destroying a significant number of centrifuges. It also raised serious concerns about the potential for cyber warfare and the use of malicious code to target critical infrastructure.

Key takeaways from the attack

  • Sophistication: Stuxnet demonstrated the increasing sophistication of cyberattacks, highlighting the need for robust cybersecurity measures, especially for critical infrastructure.
  • Cyber Warfare: The incident underscored the potential for cyberattacks to be used as weapons in geopolitical conflicts.
  • Industrial Control Systems: The attack targeted industrial control systems, emphasizing the importance of securing these systems against cyber threats.

While Stuxnet is a well-known example, it’s important to remember that the world of malicious code is constantly evolving. New threats emerge regularly, requiring continuous vigilance and adaptation of security measures.

How do you protect your organization against malicious code?

As we mentioned at the beginning of this article, malicious attacks are not secured with your traditional antivirus software. Protecting your organization from malicious code requires a multi-layered approach. This includes implementing strong security measures like firewalls, intrusion detection systems, vulnerability management, etc.

Below is a list of practices an organization can follow to protect themself against malicious code.

  • Least Privilege: Grant users only the necessary permissions to perform their job functions.
  • Multi-Factor Authentication (MFA): Require multiple forms of verification (e.g., passwords, biometrics, tokens) for access.
  • Regular Password Rotations: Enforce frequent password changes to minimize the impact of compromised credentials. We recommend having a 3-month rotation period.
  • Centralized IAM: Utilize cloud-native IAM services or a trusted third-party IAM solution for centralized management and control.
  • Control Inbound and Outbound Traffic: Define rules to allow or deny traffic based on source, destination, port, and protocol.
  • Create Security Zones: Isolate sensitive resources or workloads into separate security zones with restricted access.
  • Implement Network Segmentation: Divide your cloud network into smaller, isolated segments to limit the impact of a potential breach.
  • Continuous Monitoring: Continuously monitor your cloud environment for misconfigurations, vulnerabilities, and deviations from security best practices.
  • Proactive Remediation: Automatically remediate identified issues to maintain a secure posture.
  • Compliance Reporting: Generate reports to demonstrate compliance with industry standards and regulations.
  • Data Encryption at Rest: Encrypt data stored on disks, in databases, and object storage.
  • Data Encryption in Transit: Encrypt data transmitted over the network using protocols like TLS/SSL.
  • Key Management: Implement robust key management practices to protect encryption keys.
  • Software Updates: Keep operating systems, applications, and libraries up to date with the latest security patches.
  • Automated Patching: Automate patching processes to ensure timely and efficient updates.
  • Vulnerability Scanning: Regularly scan your environment for vulnerabilities and prioritize remediation efforts.
  • Monitor Network Traffic: Monitor network traffic for malicious activity, such as suspicious login attempts, data exfiltration, and malware.
  • Real-time Threat Detection: Detect and respond to threats in real-time to minimize the impact of an attack.
  • Log Analysis: Analyze security logs to identify and investigate security incidents.
  • Security Awareness Training: Educate employees about common cyber threats, social engineering tactics, and safe computing practices.
  • Phishing Simulations: Conduct phishing simulations to test employee awareness and train them to identify and report suspicious emails.
  • Incident Response Training: Train employees on how to respond to security incidents, such as reporting suspicious activity and following incident response procedures.
  • Cloud-Based Firewalls: Leverage cloud-based firewalls for enhanced security and scalability.
  • Cloud-Based Antivirus and Anti-Malware: Utilize cloud-based security services to detect and prevent malware infections.
  • Cloud-Based Vulnerability Scanning: Leverage cloud-based vulnerability scanning services for continuous and automated vulnerability assessments.
  • Security Audits: Conduct regular security audits to assess the effectiveness of your security controls.
  • Threat Intelligence: Stay informed about the latest cyber threats and adjust your security controls accordingly.
  • Continuous Improvement: Continuously review and improve your security posture based on lessons learned from security incidents and industry best practices.

By implementing these measures, you can significantly enhance the security of your cloud environment and protect your organization from malicious code.

How can malicious code spread?

Malicious code or malware can spread through various means. There are many examples of these codes exploiting human behavior and vulnerabilities in software, systems, or cloud-based applications. We did our research and have listed below some of the most common methods:

  • Email Attachments and Links: This is a very common method. Attackers send emails with malicious attachments (e.g., .exe, .doc, .zip files) or links to infected websites. When the user opens the attachment or clicks the link, the malware is installed on their device.
  • Infected Websites: Malicious code can be injected into legitimate websites, often through vulnerabilities in the website’s software. When users visit these infected sites, their browsers may automatically download and execute the malware.
  • Removable Media: Infected USB drives, external hard drives, or other removable media can spread malware when connected to a clean system.
  • Software Downloads: Malicious code can be included in seemingly legitimate software downloads, especially from untrusted sources.
  • Exploiting Software Vulnerabilities: Attackers can exploit known vulnerabilities in software (e.g., operating systems, web browsers, applications) to install malware without user interaction.
  • Social Engineering: Attackers use social engineering techniques to trick users into performing actions that lead to infection, such as clicking on phishing links or downloading malicious files.
  • Network Propagation: Some types of malware, like worms, can spread across networks without user interaction, infecting other devices on the network.

Understanding these methods of spread is crucial for implementing effective security measures to protect your devices and networks from malicious code.

How do you detect malicious code?

We have seen almost everyone speaking about the threats, types of attacks, etc, over the internet. But no one wants to talk about the cure. Thus, here are some key methods for detecting malicious code that we gathered from our experience and various experts from our ScaleToZero podcast.

Signature-Based Detection

This is a traditional method where antivirus software compares the code of a file to a database of known malware signatures (unique patterns). While this technique is relatively fast and effective against known malware, there is limited effectiveness against new or polymorphic malware (malware that changes its code to evade detection).

Heuristic Analysis

This method analyzes the behavior of a program to identify suspicious activities, such as Attempting to modify system files, communicating with unknown or suspicious servers, encrypting or deleting files, consuming excess system resources, etc. Unlike signature-based detection, this method can detect new and unknown malware. However, there is a possibility that it may generate false positives (flagging legitimate programs as malicious).

Behavioral Analysis

This method involves monitoring the behavior of a program in a controlled environment (like a sandbox) to observe its actions and identify malicious patterns. This method is highly effective against advanced and evasive malware. However, it can be resource-intensive and may require specialized expertise.

Anomaly Detection

This method identifies deviations from normal system behavior, such as unusual network traffic patterns or unexpected file modifications. It can detect unknown threats and insider threats. But generates a high volume of alerts, requiring careful analysis.

Cloud-Based Sandboxing

This technique involves executing suspicious files in a secure, isolated cloud environment to analyze their behavior without risking the host system. This process provides a safe environment for analyzing potentially dangerous files.

Machine Learning

Machine learning algorithms can analyze large datasets of malware samples to identify patterns and anomalies. This allows them to detect new and evolving threats more effectively. ML is seen to adapt to new threats and improve detection accuracy over time. The catch is that organizations require significant computational resources and expertise to train and maintain.

Using the above techniques and getting the right tools, such as security software, the right CNAPPs, Intrusion Detection Systems, or Endpoint detection and response, can significantly improve an organization’s ability to identify and respond to malicious code threats.

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