Economic incentives encourage malware authors to constantly develop new, increasingly complex malware to steal sensitive data or blackmail individuals and companies into paying large ransoms. In 2017, the worldwide economic impact of cyberattacks is estimated to be between 445 and 600 billion USD, or 0.8% of global GDP. Traditionally, one of the approaches used to defend against malware is network traffic analysis, which relies on network data to detect the presence of potentially malicious software. However, to keep up with increasing network speeds and amount of traffic, network analysis is generally limited to work on aggregated network data, which is traditionally challenging and yields mixed results. In this paper we present MalPhase, a system that was designed to cope with the limitations of aggregated flows. MalPhase features a multi-phase pipeline for malware detection, type and family classification. The use of an extended set of network flow features and a simultaneous multi-tier architecture facilitates a performance improvement for deep learning models, making them able to detect malicious flows (>98% F1) and categorize them to a respective malware type (>93% F1) and family (>91% F1). Furthermore, the use of robust features and denoising autoencoders allows MalPhase to perform well on samples with varying amounts of benign traffic mixed in. Finally, MalPhase detects unseen malware samples with performance comparable to that of known samples, even when interlaced with benign flows to reflect realistic network environments.

As malware detection algorithms and methods become more sophisticated, malware authors adopt equally sophisticated evasion mechanisms to defeat them. Anecdotal evidence claims Living-Off-The-Land (LotL) techniques are one of the major evasion techniques used in many malware attacks. These techniques leverage binaries already present in the system to conduct malicious actions. We present the first large-scale systematic investigation of the use of these techniques by malware on Windows systems.In this paper, we analyse how common the use of these native system binaries is across several malware datasets, containing a total of 31,805,549 samples. We identify an average 9.41% prevalence. Our results show that the use of LotL techniques is prolific, particularly in Advanced Persistent Threat (APT) malware samples where the prevalence is 26.26%, over twice that of commodity malware.To illustrate the evasive potential of LotL techniques, we test the usage of LotL techniques against several fully patched Windows systems in a local sandboxed environment and show that there is a generalised detection gap in 10 of the most popular anti-virus products.