4/17/2017 © 2014 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Pass the Hash Whitepaper v2 4/17/2017 Pass the Hash Whitepaper v2 CDP-B241 Patrick Jungles, TwC Mark Simos, MCS © 2014 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Takeaways 1 2 3 Apply Mitigations 1-3 Upgrade hosts and domain 4/17/2017 Takeaways Apply Mitigations 1-3 1 Upgrade hosts and domain 2 3 Build full defenses (IPDRR) © 2014 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Agenda Credential theft attacks Review previous mitigations Strategies: Identify, Protect, Detect, Respond, Recover New features and platform updates Scenarios

Assume breach “There are two types of companies today, those that have been hacked and those that don’t know they’ve been hacked.” 1 Assumption of breach represents a maturing of defenses to meet this reality and shifts the focus from “if” to “when” an attacker gets inside an organization’s network. 1. http://bits.blogs.nytimes.com/2013/04/22/the-year-in-hacking-by-the-numbers

Problem Get Credentials Social engineering and phishing schemes are used to trick personnel and obtain credentials. Most organizations do not recognize when attackers are already within the network and have access to information such as emails, confidential documents and other intellectual property. Get Data The attack doesn’t stop there. Attackers look for the next set of credentials with elevated permissions to access servers. Once elevated credentials are obtained and servers are compromised, organizations risk losing revenue, brand reputation and business continuity. Get Control The ultimate goal of the attacker may be to gain access to the domain controllers, the central clearing hub for all credentials and identities. Once compromised, an attacker has complete control over an entire organization. All assets, intellectual property, physical property and personal information are in jeopardy.

Mitigation 1 - Restrict and protect high privileged domain accounts 4/17/2017 Mitigation 1 - Restrict and protect high privileged domain accounts Objective How Outcome This mitigation reduces the risk of administrators from  inadvertently exposing privileged credentials to higher risk computers.  Restrict DA/EA accounts from authenticating to lower trust computers Provide admins with accounts to perform administrative duties Assign dedicated workstations for administrative tasks. Mark privileged accounts as “sensitive and cannot be delegated” Do not configure services or schedule tasks to use privileged domain accounts on lower trust computers An attacker cannot steal credentials for an account if the credentials are never used on the compromised computer. Addition of authentication policies © 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Built-in SIDs for local accounts and local administrators 4/17/2017 Mitigation 2 - Restrict and protect local accounts with administrative privileges Objective How Outcome This mitigation restricts the ability of attackers to use local administrator accounts or their equivalents for lateral movement PtH attacks. Enforce the restrictions available in Windows Vista and later versions, preventing local accounts from being used for remote administration. Explicitly deny network and Remote Desktop logon rights for all administrative local accounts. Create unique passwords for local accounts with administrative privileges. An attacker who successfully obtains local account credentials from a compromised computer will not be able to use those credentials to perform lateral movement on the organization's network. Built-in SIDs for local accounts and local administrators © 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Mitigation 3 - Restrict inbound traffic using the Windows Firewall 4/17/2017 Mitigation 3 - Restrict inbound traffic using the Windows Firewall Objective How Outcome This mitigation restricts the ability of attackers from initiating lateral movement from a compromised workstation by blocking inbound connections. Restrict all inbound connections to all workstations except for those with expected traffic originating from trusted sources, such as helpdesk workstations, security compliance scanners and servers. An attacker who successfully obtains any type of account credentials will not be able to connect to other workstations. No technical changes © 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Strategies Identify high-value assets Protect against known and unknown threats Detect PtH and other related attacks Respond to suspicious activity Recover from breach

Identify Current environment Identify high-value assets 4/17/2017 Identify Current environment Identify high-value assets Consider attacker mindset Baseline normal behavior © 2014 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Protect Against known and unknown threats 4/17/2017 Protect Against known and unknown threats Architect a complete credential theft defense Consider usability a security feature © 2014 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Protect Create hardened and restricted administrative hosts 4/17/2017 Protect Create hardened and restricted administrative hosts Develop a containment strategy © 2014 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Detect PtH and related attacks Collect and correlate events 4/17/2017 Detect PtH and related attacks Focus on high-value assets Monitor Event IDs of interest Collect and correlate events © 2014 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Respond To suspicious activity 4/17/2017 Respond To suspicious activity Regularly update protection and detection mechanisms Closely observe affected hosts Ensure attack vectors are properly addressed Follow up on lessons learned © 2014 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Regain control over accounts Recover Account compromise Regain control over accounts Change compromised account passwords or Disable an account and remove group memberships Considerations: • Only effective against future authentication • Offline attackers can still use cached logon pv • Attacker may be able to re-obtain password • Attacker may persist using malware in user context

Consider professional incident response services Recover Domain compromise Tactical Recovery Strategic Recovery A short-term operation designed to disrupt a known adversary operation Useful intelligence on the adversary presence Stealth operation that the adversary is unaware of Properly scoped defender operation A long-term plan that consists of multiple operations focused on recovering integrity at a high assurance level • Risk of migration • Risk of coexistence • Planned end state Consider professional incident response services

Platform updates Core platform changes (automatically on) 4/17/2017 Platform updates Core platform changes (automatically on) Features Description AVAILABLE ON Windows 7 / Windows Server 2008 R2 AVAILABLE ON Windows 8 / Windows Server 2012 AVAILABLE ON Windows 8.1 / Server 2012 R2 REQUIRES DOMAIN UPGRADE Windows Server 2012 R2 Domain Functional Level Remove LAN Manager (LM) hashes and plaintext credentials from LSASS LAN Manager legacy hashes and (reversibly encrypted) plaintext passwords are no longer stored in LSASS Enforce credential removal after logoff New mechanisms have been implemented to eliminate session leaks in LSASS, thereby preventing credentials from remaining in memory Logon restrictions with new well-known security identifiers (SIDs) Use the new SIDs to block network logon for local users and groups by account type, regardless of what the local accounts are named © 2014 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Platform updates Configurable Features 4/17/2017 Platform updates Configurable Features Features Description AVAILABLE ON Windows 7 / Windows Server 2008 R2 AVAILABLE ON Windows 8 / Windows Server 2012 AVAILABLE ON Windows 8.1 / Server 2012 R2 REQUIRES DOMAIN UPGRADE Windows Server 2012 R2 Domain Functional Level Restricted Admin mode for Remote Desktop Connection The Remote Desktop application and service have been updated to support authentication without providing credentials to the remote host Protected Users security group The new Protected Users security group enables administrators to restrict authentication to the Kerberos protocol only for group members within a domain Authentication Policy and Authentication Policy Silos New Authentication policies provide the ability to restrict account authentication to specific hosts and resources © 2014 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Credentials in memory 4/17/2017 ~ Only if installed ** Off by default on Windows 8.1 and Windows Server 2012 R2 * Off by default Adapted from: Benjamin Delpy LSASS security improvements #windows8.1 https://twitter.com/gentilkiwi/status/352557093640892416/photo/1 © 2014 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Sample scenarios Recommendations Helpdesk Domain administration 4/17/2017 Sample scenarios Recommendations Helpdesk Domain administration Operations and service management Service accounts Business group isolation Bring your own device (BYOD) Separate administrative accounts from user accounts Use hardened and restricted hosts Limit exposure of administrative credentials RDP /RestrictedAdmin Tools that only use network logon (Type 3) Add accounts to Protected Users security group (if Kerberos only is feasible) Create authentication policies and silos (if protected users is feasible) © 2014 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Sample scenarios Recommendations Domain administration 4/17/2017 Sample scenarios Recommendations Helpdesk Domain administration Operations and service management Service accounts Business group isolation Bring your own device (BYOD) Reduce privileges and privilege use Only use DA/EA for DC Maintenance and Delegation Separate administrative accounts from user accounts Use hardened and restricted hosts Strengthen authentication assurance Implement security monitoring Add accounts to Protected Users security group (if Kerberos only is feasible) Create authentication policies and silos (if protected users is feasible) © 2014 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Sample scenarios Recommendations Service accounts Helpdesk 4/17/2017 Sample scenarios Recommendations Helpdesk Domain administration Operations and service management Service accounts Business group isolation Bring your own device (BYOD) Grant the least privilege Never add to Domain Admins or Enterprise Admins Use managed service accounts Change passwords regularly Strengthen authentication assurance Monitor service account activity Contain credential exposure © 2014 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Sample scenarios Considerations Business group isolation Helpdesk 4/17/2017 Sample scenarios Considerations Helpdesk Domain administration Operations and service management Service accounts Business group isolation Bring your own device (BYOD) Define Use Cases Use hardened and restricted hosts Restrict account logons Consider blocking Internet access Do not share accounts or passwords Ensure unique local administrative passwords on workstations and servers © 2014 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Sample scenarios Considerations Bring your own device (BYOD) Helpdesk 4/17/2017 Sample scenarios Considerations Helpdesk Domain administration Operations and service management Service accounts Business group isolation Bring your own device (BYOD) Define use cases and policies Ensure risks are understood and accepted Do not use BYOD devices for administration Ensure that high business impact (HBI) data is not being stored on these devices No shared password for corporate and personal accounts No use of privileged service accounts on BYOD devices Deploy available security policies Isolate network access Create response/recovery strategies © 2014 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Next steps 1 2 3 Implement strategies Apply scenario guidance Identify and implement quick wins Implement mitigations 1,2 and 3. Restrict DA/EA and other privileged accounts Deny network logon to local accounts and groups Restrict inbound access using the Windows Firewall Manage with RDP /RestrictedAdmin Remove service account privileges (e.g. Domain Admins) Adopt Protected Users and Auth Policies

http://www.microsoft.com/PtH 4/17/2017 © 2014 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

References Credential Theft Portal http://www.microsoft.com/PTH Tech Ready 15 4/17/2017 References Credential Theft Portal http://www.microsoft.com/PTH NIST Framework http://www.nist.gov/cyberframework/upload/cybersecurity-framework-021214.pdf Credential Theft Mitigation (CTM) Solutions - http://channel9.msdn.com/Events/TechEd/NorthAmerica/2014/DCIM-B213 Update to Improve Credentials Protection and Management https://technet.microsoft.com/en-us/library/security/2871997.aspx © 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

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Evaluate this session 4/17/2017 © 2014 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

4/17/2017 © 2014 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION. © 2014 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.