Storm-1175 Exploits The Patch Gap In Web-Facing Assets To Deploy Medusa

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Storm-1175 is a financially motivated cybercriminal actor tracked by Microsoft Threat Intelligence. This actor is characterized by a high operational tempo, specializing in the rapid weaponization of newly disclosed vulnerabilities (N-days) and occasionally zero-days to deploy Medusa ransomware.

Severity: High

Targeting

  • Sectors: Healthcare, Education, Professional Services, Finance
  • Regions: Australia, United Kingdom, United States
  • Assets: Vulnerable internet-facing systems (Ivanti, Exchange, TeamCity, CrushFTP, SAP, SimpleHelp, BeyondTrust…)

Attack Chain

PhaseTactics & Tools Used
Initial AccessExploitation of vulnerable web-facing assets. Weaponizes N-day vulnerabilities often within 24 hours of disclosure (e.g., SAP NetWeaver CVE-2025-31324).
PersistenceCreation of new user accounts in the administrators group ; deployment of web shells or Remote Monitoring and Management (RMM) tools.
Lateral MovementUse of Cloudflare tunnels (disguised as conhost.exe) for RDP sessions ; leveraging Impacket, PsExec, and PDQ Deployer.
Credential AccessLSASS dumping via Task Manager or Mimikatz ; modifying registry keys (e.g., UseLogonCredential) ; stealing credentials from Veeam backup software.
Defense EvasionModifying registry settings to tamper with Microsoft Defender Antivirus ; using PowerShell to add “C:” drive exclusions ; deleting created accounts to scrub logs.
ExfiltrationData collection using Bandizip and exfiltration via Rclone to attacker-owned cloud resources.
ImpactDeployment of Medusa ransomware via PDQ Deployer scripts (RunFileCopy.cmd) or Group Policy updates.

Notable Exploited Vulnerabilities

Microsoft has observed the exploitation of over 16 vulnerabilities since 2023. High-profile examples include:

  • N-Day: CVE-2024-1709 (ConnectWise ScreenConnect), CVE-2023-21529 (Microsoft Exchange), and CVE-2025-31161 (CrushFTP).
  • Zero-Day: CVE-2026-23760 (SmarterMail) and CVE-2025-10035 (GoAnywhere MFT), both exploited a week prior to public disclosure.
  • Chained Exploits: Exploiting CVE-2022-41080 and CVE-2022-41082 (OWASSRF) to achieve remote code execution.

Recommendations

  1. Patch internet-facing systems immediately. Treat patch lag on perimeter assets as an active breach risk.
  2. Enable tamper protection. Use the DisableLocalAdminMerge setting to prevent local admins from overriding global antivirus exclusion lists.
  3. Enable Credential Guard on all domain-joined Windows endpoints.
  4. Block LSASS credential stealing and PSExec/WMI process creation via ASR rules.
  5. Maintain an approved RMM allowlist, enforce MFA on all approved tools, and treat any unrecognized RMM installation as a compromise indicator.
  6. Monitor and alert on new local admin account creation.
  7. Webshell creation is Storm-1175’s most common initial persistence mechanism after exploitation. The “Block Webshell creation for Servers” ASR rule directly addresses this. Combine with file integrity monitoring on web-accessible directories.
  8. Backup servers should have no direct connectivity to production endpoints and credentials should not be reused.
  9. Block the IOCs at their respective controls
    https://www.virustotal.com/gui/collection/9924605cf31bd8cb99039fad37a1a4b795f764bdeeab7137f08d0e41ab59232f/iocs

IOCs

SHA-256:0cefeb6210b7103fd32b996beff518c9b6e1691a97bb1cda7f5fb57905c4be96
SHA-256:9632d7e4a87ec12fdd05ed3532f7564526016b78972b2cd49a610354d672523c
SHA-256:e57ba1a4e323094ca9d747bfb3304bd12f3ea3be5e2ee785a3e656c3ab1e8086
SHA-256:5ba7de7d5115789b952d9b1c6cff440c9128f438de933ff9044a68fff8496d19
IP:185.135.86[.]149
IP:134.195.91[.]224
IP:85.155.186[.]121

Source:

  • https://www.microsoft.com/en-us/security/blog/2026/04/06/storm-1175-focuses-gaze-on-vulnerable-web-facing-assets-in-high-tempo-medusa-ransomware-operations/

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