A financially motivated assault on Azure instances
Both Microsoft and Baggenstos warn that Storm-0501 operators exfiltrate data, encrypt originals, and destroy backups. Their ultimate goal: extortion.
The group has been active for years, with documented attacks against US school districts and healthcare providers. More recently, Storm-0501 has shifted tactics, moving away from local endpoints to attack hybrid cloud infrastructures. Their cloud-native ransomware rapidly siphons off large volumes of data, rendering traditional malware redundant.
Anatomy of an attack
An incident in autumn 2024 illustrates their modus operandi. Attackers compromised Active Directory and Microsoft Entra ID to obtain global administrator rights. They then implanted backdoors in Entra ID tenant configurations via federated domains. In some cases, they deployed on-premises ransomware to encrypt endpoints and servers.
Microsoft's security blog details one such case: the victim had fragmented Microsoft Defender deployments across subsidiaries. An Entra Connect Sync server without endpoint protection became the pivot point. Attackers harvested password hashes, attempted multiple privileged account logins, and ultimately succeeded. With a global admin account, they gained direct access to the Azure portal.
Defending against Azure account takeover
Microsoft has introduced mitigations:
- A change in Microsoft Entra ID restricts permissions for the Directory Synchronization Accounts (DSA) role, reducing opportunities for privilege escalation.
- The May 2025 release of Entra Connect introduces modern authentication with application-based options (currently in public preview).
- Enabling the Trusted Platform Module (TPM) on Entra Connect Sync servers helps secure credentials and cryptographic keys, mitigating Storm-0501’s credential extraction techniques.
How Baggenstos can help
Baggenstos supports organisations in securing their Azure environments. This requires a holistic security posture that protects on-premises infrastructure, cloud identities, and workloads.
«Baggenstos provides secure predefined baselines,» explains Cloud Solution Architect Sven Heeb. «We apply the latest security standards, including ransomware-resilient backups with Azure Resource Guard.»
The latest wave of attacks highlights the need for robust design and implementation of hybrid cloud environments. As Heeb stresses:
«Hybrid clouds deliver productivity gains, but they also introduce new attack vectors. Security must be built in from the ground up.»