A newly discovered zero-day vulnerability in Windows’ NTLM authentication protocol exposes users and enterprises to credential theft. The exploit, which impacts all versions of Windows from 7 to the latest Windows 11 v24H2 and Server 2022, allows attackers to steal NTLM hashes simply by having a victim view a malicious file in File Explorer.
Unlike traditional exploits that require a user to execute or interact with a file, this flaw is triggered merely by navigating to a folder containing the malicious file — whether on a local system, a shared network drive, or a USB device.
Key Technical Details
The attack leverages NTLM’s challenge-response mechanism, tricking the user’s system into generating NTLM hashes without explicit consent. These hashes can then be:
- Cracked offline to obtain plaintext passwords.
- Used in pass-the-hash attacks to impersonate the user and gain access to other systems on the network.
Even without execution, malicious files hosted in shared network folders, removable drives, or the Downloads folder — potentially auto-populated by a compromised website — can act as vectors for this attack.
This makes the vulnerability particularly dangerous in enterprise settings where shared resources are common and NTLM remains in widespread use for authentication.
Implications for Enterprises and Legacy Systems
This vulnerability affects all supported and unsupported versions of Windows, including:
- Windows 7 and Server 2008 R2 (no longer supported).
- Windows 10 versions 1803 through 22H2.
- Windows 11 (22H2, 23H2, 24H2).
- Server editions, including 2012, 2016, 2019, and 2022.
While modern systems are expected to receive patches, older systems relying on extended support agreements or left unsupported are at significant risk. These legacy systems are often found in critical infrastructure, healthcare, and industrial environments, where patching or upgrading is difficult due to operational constraints.
Potential Real-World Impact
For enterprise SOC teams, the risks include:
- Credential Theft: NTLM hashes stolen using this exploit can be used for lateral movement and privilege escalation within a network.
- Critical Infrastructure Exposure: Legacy systems critical to operations are especially vulnerable, with few options for protection outside third-party micropatches.
- Operational Disruption: Exploits targeting shared resources or file repositories can disrupt operations across multiple users and systems simultaneously.
Mitigation Strategies
To reduce the risk, SOC teams should focus on the following:
- Network Segmentation and Isolation
- Restrict access to shared folders and isolate legacy systems.
- Limit access to SMB and other shared network services to trusted endpoints.
- Enhance Monitoring
- Implement monitoring for unusual NTLM authentication traffic.
- Detect spikes in hash requests or unauthorized file interactions, especially in shared environments.
- Restrict NTLM Usage
- Gradually phase out NTLM in favor of more secure protocols like Kerberos or Windows Negotiate.
- Disable NTLM where feasible, particularly for internet-facing systems.
- File Integrity Monitoring (FIM)
- Use FIM to track changes in critical directories like Downloads or shared folders.
- Deploy Temporary Mitigations
- Third-party micropatches may provide immediate, albeit unofficial, protection for legacy systems. These can serve as a stopgap measure until Microsoft delivers a formal update.
Broader Concerns
This isn’t an isolated issue. The researchers behind this vulnerability have reported several other NTLM flaws, including PetitPotam, PrinterBug, and DFSCoerce, which Microsoft has classified as “won’t fix.” These flaws remain exploitable in fully updated systems, underscoring the challenges organizations face in securing legacy authentication protocols.
Additionally, previously reported vulnerabilities like EventLogCrasher, which disables logging across domain systems, highlight persistent risks in Windows environments that require layered defenses to address gaps left by unpatched flaws.
Conclusion
While this specific NTLM vulnerability has not yet been seen in active attacks, its low-effort nature and potential impact make it a high-priority concern. Organizations relying on Windows systems should proactively implement mitigations, restrict access to shared resources, and consider transitioning away from NTLM where feasible.
While Microsoft has moved toward modern options like Kerberos, NTLM remains in use across many organizations, leaving systems vulnerable to emerging threats.
SOC leads should focus on key priorities:
- Mapping and addressing authentication dependencies to reduce reliance on legacy protocols.
- Enhancing visibility and monitoring for unusual authentication attempts or file interactions.
- Working with IT teams to phase out insecure configurations and implement more robust security measures.
By adopting a proactive and structured approach, SOC teams can mitigate risks tied to vulnerabilities like this, ensuring a secure environment even as new threats emerge.
How Can Netizen Help?
Netizen ensures that security gets built-in and not bolted-on. Providing advanced solutions to protect critical IT infrastructure such as the popular “CISO-as-a-Service” wherein companies can leverage the expertise of executive-level cybersecurity professionals without having to bear the cost of employing them full time.
We also offer compliance support, vulnerability assessments, penetration testing, and more security-related services for businesses of any size and type.
Additionally, Netizen offers an automated and affordable assessment tool that continuously scans systems, websites, applications, and networks to uncover issues. Vulnerability data is then securely analyzed and presented through an easy-to-interpret dashboard to yield actionable risk and compliance information for audiences ranging from IT professionals to executive managers.
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