IDE Shepherd Extension

IDE Shepherd is a security extension for VS Code and Cursor IDEs that detects and blocks malicious extensions and supply chain attacks — including threats that are already installed and running. It operates on two layers: a runtime interception layer that hooks Node.js primitives (http, child_process, fs) as they are loaded, blocking suspicious network requests, process executions, and file system access in real time; and a static source analysis layer that scans every .js file in an extension's directory — including node_modules — for known attack primitives such as obfuscated exec calls, download-and-execute patterns, and reverse shell signatures.

When a threat is detected, IDE Shepherd surfaces it immediately in the sidebar and gives you granular trust controls: allowlist a specific extension version you have reviewed, trust an entire publisher whose extensions you rely on, or mark a workspace as trusted so legitimate build tasks are never interrupted. Everything blocked by default can be explicitly permitted — putting you in control of what runs in your IDE rather than choosing between security and usability.

Extension threat detection — The Iolite Smart Contract Plugin is a real malicious VS Code extension that was removed from the official marketplace on March 28th, 2026. It injected heavily Unicode-obfuscated code into a bundled node_modules dependency to download and execute a remote payload via child_process.exec. IDE Shepherd intercepts the call before it runs, blocks execution, and surfaces a detailed security event in the sidebar. From that notification you can immediately add the extension to your allow list if you have reviewed it and consider it safe, or trust its publisher to exempt all of their extensions from future checks.

Workspace task detection — Malicious .vscode/tasks.json files have been weaponized in the wild as part of the "Contagious Interview" campaign. The fake repository is configured to silently download and execute a remote payload the moment a developer opens and trusts the workspace. IDE Shepherd detects and blocks the task before any command runs and notifies you with the full details. If the repository is one you own or have audited, you can add it to your trusted workspaces list with one click. Future tasks from that workspace will run without interruption, while all others remain monitored.

Check out the new Datadog Agent integration and Cloud SIEM content pack for IDE-SHEPHERD.

Usage

Security Monitoring

The extension automatically starts monitoring when VS Code (Cursor) loads:

• Hybrid RITM + Monkey Patching: Uses a two-layer approach to intercept module loading (Module._load) and patch Node.js primitives
  • Layer 1: Hooks into the module loading system to catch all future require() calls
  • Layer 2: Patches individual exports (e.g., http.request, child_process.spawn, fs.readFile)
• Real-time Analysis: Analyzes network traffic, process spawning, file system access, and workspace tasks for security threats

Quick Overview:

flowchart TD
    A[IDE Shepherd Activates Early]

    A --> B[Hook Module._load - RITM]
    A --> C[Register Task Listeners]

    B --> D[Extension makes API call]
    D --> E[Intercept and analyze call]
    E --> F{Is it Malicious}
    F -->|No| R0[Allow]
    F -->|Yes| R1[Block and Report]


    C --> G[VS Code task starts]
    G --> H[Analyze command against task rules]
    H --> F

    style B fill:#4a9eff,stroke:#2563eb,color:#fff
    style E fill:#4a9eff,stroke:#2563eb,color:#fff
    style R1 fill:#ff0000,stroke:#ff0000,color:#fff
    style R0 fill:#22c55e,stroke:#16a34a,color:#fff
    style C fill:#f59e0b,stroke:#d97706,color:#fff
    style H fill:#f59e0b,stroke:#d97706,color:#fff

Viewing Status & Logs

IDE Status Command

Command Palette (Ctrl+Shift+P) > IDE Shepherd: Show Status > View monitoring status, uptime, and recent security events

Extension Logs

Command Palette (Ctrl+Shift+P) > Developer: Show Logs > IDE Shepherd Extension > View detailed logs of all monitoring activity

Security Detection Rules

IDE Shepherd employs multiple layers of security detection to identify potentially malicious extensions, network activity, process execution, file system access, and workspace tasks:

Metadata Heuristics

Network Monitoring

Process Monitoring

Static Source Analysis

IDE Shepherd scans every .js file inside an extension's installation directory (including node_modules) for TTP-based attack primitives. Each rule requires two independent signals in the same file, keeping the false-positive rate low while reliably identifying malicious combinations. Findings contribute to the extension's overall risk score displayed in the Extension Analysis sidebar.

File System Monitoring

IDE Shepherd intercepts fs module calls (readFile, writeFile, appendFile, and their sync/promise variants) to detect credential theft and persistence attempts. Suspicious operations are blocked and reported as security events.

Credential Access Detection (Read)

Persistence Mechanism Detection (Write)

Task Detection

VS Code and Cursor workspace tasks are monitored for potentially dangerous operations:

Limitations

Extension Development Host

• Deactivate Before Development: You must deactivate IDE Shepherd before opening the Extension Development Host (F5 or "Run Extension"). The module patching system can interfere with the extension development environment. Therefore it is recommended to disable the extension in VS Code or Cursor settings before running extension development.

Security Posture

• Blocks by Default: IDE Shepherd takes a conservative approach and may flag legitimate extensions with suspicious patterns
• False Positives: Some legitimate extensions may trigger heuristic rules (e.g., extensions with minimal descriptions)
• Manual Review: High-risk detections should be manually reviewed before taking action
• Extension Kind: IDE Shepherd's monitoring is limited to workspace and ui extensions and doesn't extend to "web"

Known Limitations

• Module-Level Destructuring Gap: IDE Shepherd patches child_process, http, and fs exports in-place as early as possible. However, if a malicious extension unpacks a function at module evaluation time — e.g. const { exec } = require('child_process') at the top level — that local variable captures the original reference before any hook can be installed. Patching the exports object afterwards has no effect on the captured reference, so the call bypasses the runtime hook entirely. Static source analysis (download_and_execute, eval_dynamic_payload, etc.) is the reliable detection path for this class of attack, as it operates independently of hook timing.
• Activation Window: IDE Shepherd installs its hooks at the very start of activate(), but the VS Code extension host may have already evaluated other extension modules before our activation begins. Extensions whose entire payload runs synchronously in module scope (not in activate()) may therefore evade the runtime layer. Static analysis aims at bridging this gap.
• Task Blocking Race Condition: If task verification takes too long, a task may be executed before IDE Shepherd can terminate it. This is a timing-dependent limitation of the task blocking mechanism.

Observability

Datadog Telemetry Integration

IDE Shepherd supports sending telemetry data to Datadog via the Datadog Agent for centralized monitoring and analysis:

• Extension Repository Data: User-installed extensions with metadata
• Security Events: Real-time reporting of detected threats and IoCs
• Metadata Analysis: Risk scores and suspicious patterns from heuristic analysis

Quick Setup

1. Install and Start Datadog Agent

First, ensure the Datadog Agent is installed and running on your system. See Datadog Agent Installation Guide.

2. Enable Telemetry in IDE Shepherd

IDE Shepherd now automatically configures the Datadog Agent when you enable telemetry for the first time:

1. Open the IDE Shepherd sidebar in VS Code or Cursor
2. Navigate to Settings → Datadog Telemetry
3. Click on Telemetry: Disabled to enable it
4. IDE Shepherd will automatically:
   • Create the configuration directory: /opt/datadog-agent/etc/conf.d/ide-shepherd.d/
   • Write the configuration file: conf.yaml with the appropriate settings
   • Configure the agent to listen on the specified port

3. Restart Datadog Agent

After the automatic configuration, restart the Datadog Agent for changes to take effect:

# macOS
launchctl stop com.datadoghq.agent
launchctl start com.datadoghq.agent

See Datadog Agent Commands for more details.

4. Verify Telemetry Status

Telemetry is now sent automatically in real-time:

• Extension installed/updated/uninstalled → OCSF event sent immediately
• Security threat detected → OCSF event sent immediately

You can verify the connection from the sidebar:

• Agent Status: Shows if the Datadog Agent is up and running
• Agent Port: Shows the port on which the agent is listening

5. View in Datadog

• Go to Datadog Logs Explorer
• Filter: source:ide-shepherd service:ide-shepherd-telemetry

Manual Configuration (Optional)

If you prefer to manually configure the Datadog Agent, create /opt/datadog-agent/etc/conf.d/ide-shepherd.d/conf.yaml:

logs:
  - type: tcp
    port: 10518
    service: 'ide-shepherd-telemetry'
    source: 'ide-shepherd'

Then restart the agent and configure the same port in IDE Shepherd settings.

Disabling Telemetry

When you disable telemetry in IDE Shepherd, you'll be asked whether to:

• Remove the agent configuration: Automatically deletes the IDE Shepherd configuration from Datadog Agent
• Keep the configuration: Leaves the agent configuration in place for future use

Installation

From the Marketplace

Search for IDE Shepherd in the Extensions panel (Ctrl+Shift+X / Cmd+Shift+X) or install from:

• Visual Studio Marketplace
• Open VSX Registry

From a VSIX File

Download the latest .vsix from the GitHub Releases page, then install it via the command line:

For VS Code:

code --install-extension ide-shepherd-extension-2.1.0.vsix

For Cursor:

cursor --install-extension ide-shepherd-extension-2.1.0.vsix

Reload your IDE after installation (Ctrl+Shift+P or Cmd+Shift+P → "Developer: Reload Window").

Development

Prerequisites

• Node.js (20.x recommended)
• VS Code (1.99.3) or Cursor

Development Setup

1. Clone the repository

   git clone https://github.com/DataDog/IDE-SHEPHERD-extension
   cd IDE-SHEPHERD-extension
   

2. Install dependencies

   npm install
   

3. Install VS Code Extension Manager (optional, for packaging)

   npm install -g @vscode/vsce
   

Development Workflow

1. Compile TypeScript

   npm run compile
   # Or for continuous compilation during development:
   npm run watch
   

2. Run formatting

   npm run format
   npm run format:check
   

3. Type checking

   npm run typecheck
   

4. Run tests

   npm test
   

5. Package the extension into a VSIX file

   vsce package
   

6. Install from locally built VSIX

   For VS Code:

   code --install-extension /path/to/ide-shepherd-extension-*.vsix
   

   For Cursor:

   cursor --install-extension /path/to/ide-shepherd-extension-*.vsix