Last Saturday the Cybersecurity and Infrastructure Security Agency issued an urgent warning that threat actors are actively exploiting three Microsoft Exchange vulnerabilities—CVE-2021-34473, CVE-2021-34523, and CVE-2021-31207. These vulnerabilities can be chained together to remotely execute arbitrary code on a vulnerable machine.

This set of Exchange vulnerabilities is often grouped under the name ProxyShell. Fixes were available in the May 2021 Security Updates issued by Microsoft. (To be more precise, the first two were patched in April and CVE-2021-31207 was patched in May.)

The attack chain

Simply explained, these three vulnerabilities can be chained together to allow a remote attacker to run code on the unpatched server. Attackers use them as follows:

  • Get in with CVE-2021-31207, a Microsoft Exchange Server security feature bypass vulnerability. The vulnerability allows a remote user to bypass the authentication process.
  • Take control with CVE-2021-34523, a Microsoft Exchange Server elevation of privilege (EoP) vulnerability. The vulnerability allows a user to raise their permissions.
  • Do bad things with CVE-2021-34523, a Microsoft Exchange Server remote code execution (RCE) vulnerability. The vulnerability allows an authenticated user to execute arbitrary code in the context of SYSTEM and write arbitrary files.


The Record reports that ProxyShell has been used to take over some 2,000 Microsoft Exchange mail servers in just two days. This can only happen where organisations use the on-premise version of Exchange, and system administrators haven’t installed the April and May patches.

We know there are many reasons why patching is difficult, and often slow. The high number is surprising though, given the noise level about Microsoft Exchange vulnerabilities has been high since March. Although it may have been muffled by the other alarm cries about PrintNightmare, HiveNightmare, PetitPotam, and many others.


Several researchers have pointed to a ransomware group named LockFile that combines ProxyShell with PetitPotam. Kevin Beaumont has documented how his Exchange honeypot detected exploitation by ProxyShell to drop a webshell. Later, the threat actor revisited to initiate the staging of artefacts related to the LockFile ransomware. For those interested in how to identify whether their servers are vulnerable, and technical details about the stages in this attack, we highly recommend you read Kevin Beaumont’s post.


Before we can point out how ProxyShell can lead to a full blown network-wide ransomware infection we ought to tell you more about PetiPotam. PetitPotam enables a threat actor to launch an NTLM relay attack on domain controllers.

PetitPotam uses the EfsRpcOpenFileRaw function of the Microsoft Encrypting File System Remote Protocol (MS-EFSRPC) API. MS-EFSRPC is used for maintenance and management operations on encrypted data that is stored remotely, and accessible over a network. The PetitPotam proof-of-concept (PoC) takes the form of a manipulator-in-the-middle (MitM) attack against Microsoft’s NTLM authentication system. The targeted computer is forced to initiate an authentication procedure and share its authentication details via NTLM.

Since the PetitPotam attack is not based on a vulnerability but uses a legitimate function in a way that was not intended, it will be hard to patch for this attack without “breaking stuff.” Further, stopping the Encrypting File System (EFS) service does not prevent the technique from being exploited. (For mitigation details, see our post about PetitPotam.)


LockFile attacks have been recorded mostly in the US and Asia, focusing on organizations in financial services, manufacturing, engineering, legal, business services, travel, and tourism. Symantec pointed out in a blog post that the ransom note from LockFile ransomware is very similar to the one used by the LockBit ransomware group and that they reference the Conti gang in their email address. This may mean that members of those gangs have started a new operation, or just be another indication of how all these gangs are connected, and sharing resources and tactics.


CISA strongly urges organizations to identify vulnerable systems on their networks and immediately apply Microsoft’s Security Update from May 2021—which remediates all three ProxyShell vulnerabilities—to protect against these attacks.

We would like to add that you have a look at the mitigation advice for PetitPotam and prioritize tackling these problems in your updating processes.

Stay safe, everyone!