T1078 – Valid Accounts (Microsoft Defender for Identity Detection)

Microsoft Defender for Identity Alert Details

Alert ID: MDI-VALID-ACCTS-1078-7842
Alert Time: 2024-02-12 08:45:33 EST
Severity: HIGH (85/100)
Source: Microsoft Defender for Identity
Rule: “Honeytoken Account Activity Detected”
MITRE ATT&CK: T1078 – Valid Accounts

Alert Details:

Detection: Honeytoken account activity

Honeytoken Account: svc_backup_old (Service Account)

– Created: 2023-01-15 (as honeytoken)

– Last Activity: Never (until now)

– Password: 128-character random (not used anywhere)

– Permissions: None (appears in logs but no actual access)

Activity Detected:

– Time: 08:42 EST

– Authentication Type: NTLM

– Source Host: WORKSTATION-45 (Unknown device)

– Source IP: 192.168.47.89 (Internal IP – Guest WiFi network)

– Service: Attempted access to FILE-SVR-01 (File Server)

– Result: FAILED (account has no permissions)

Honeytoken Characteristics:

– Account exists in AD but has no real purpose

– Appears in logs to lure attackers

– Any activity is 100% malicious

– No legitimate user would ever use this account

Additional Context:

– Source IP is on Guest WiFi network (non-corporate devices)

– WORKSTATION-45 not in asset inventory

– Likely an attacker scanning with compromised credentials

SOC Investigation Process

StepActionTools UsedFindings
1. Alert ValidationVerify MDI honeytoken alertMicrosoft Defender for IdentityConfirmed 100% malicious activity
2. Source InvestigationIdentify source IP/hostDHCP Logs, Cisco ISEGuest WiFi IP assigned to unknown Windows laptop
3. Physical SecurityLocate device on Guest WiFiWiFi Controller, Security TeamDevice in lobby area; user unknown
4. Credential AnalysisDetermine how attacker had passwordAD Logs, InvestigationPassword never used; likely password hash from memory dump
5. Threat HuntingCheck for other honeytoken activityMDI, SplunkNo other honeytoken activity detected
6. ContainmentBlock source deviceCisco ISE, MAC FilteringDevice blocked from all networks

Jira Incident Report

Ticket: SOC-2024-065
Summary: T1078 – Honeytoken Account Activity Detected – Valid Credentials in Use
Status: RESOLVED
Resolution: MALICIOUS – Honeytoken Triggered
Priority: P2 – MEDIUM
Labels: T1078, valid-accounts, honeytoken, defender-for-identity, lateral-movement
Components: Identity-Management, Threat-Hunting


INCIDENT ANALYSIS REPORT

1. Initial Context:

  • Detection Source: Microsoft Defender for Identity.
  • Alert: “Honeytoken Account Activity Detected”.
  • Honeytoken: svc_backup_old (service account with no real use).
  • Time: 2024-02-12 08:45 EST.
  • Technique: MITRE ATT&CK T1078 – Valid Accounts.

2. Technical Analysis:

  • Honeytoken Design:
  • Account created January 2023 as decoy
  • Never used for any legitimate purpose
  • 128-character random password (not in use anywhere)
  • Appears in AD but has zero permissions
  • Any activity = 100% malicious
  • Detection Details:
  • Time: 08:42 EST
  • Source IP: 192.168.47.89 (Guest WiFi)
  • Source Host: WORKSTATION-45 (unknown device)
  • Target: FILE-SVR-01 (file server)
  • Authentication: NTLM
  • Result: Failed (no permissions)
  • How Attacker Had Password:
  • Password hash likely obtained from:
    • LSASS memory dump on compromised host
    • Domain controller compromise (unlikely)
    • Credential dumping tool (Mimikatz, etc.)
  • Honeytoken password never used, so not from phishing
  • Attacker Activities:
  • Attacker has foothold on internal network
  • Using stolen credentials to move laterally
  • Testing credentials against file server
  • Honeytoken triggered their reconnaissance

3. Investigation Findings:

  • Timeline:

08:42 – Honeytoken activity detected

08:45 – MDI alert triggers

08:47 – SOC investigation begins

08:50 – Source IP identified as Guest WiFi

08:55 – Device located in lobby

09:00 – Device blocked from all networks

  • Source Analysis:
  • Guest WiFi device: Unknown Windows laptop
  • MAC address: 00:1A:2B:3C:4D:5E (not in inventory)
  • User: Unknown (guest/vendor/attacker)
  • Device no longer on network after blocking
  • Credential Source Investigation:
  • Reviewed recent domain controller logs (no compromise)
  • Checked for LSASS dumping alerts (none in EDR)
  • Likely attacker brought compromised credentials from outside

4. Containment Actions:

  • Immediate Actions (08:47-09:00 EST):
  • Blocked source device via Cisco ISE (MAC filtering).
  • Blocked source IP at firewall.
  • Guest WiFi network isolated pending investigation.
  • Honeytoken Monitoring:
  • Honeytoken remains active (intentionally).
  • Enhanced monitoring for any further activity.
  • Threat Hunting:
  • Searched for other honeytoken activity (none).
  • Searched for same source IP in other logs (none).
  • Searched for lateral movement patterns (none).

5. Root Cause Analysis:

  • Primary Cause: Attacker with stolen credentials testing on internal network.
  • Contributing Factors:
  1. Guest WiFi accessible from lobby (physical security gap).
  2. No network segmentation for Guest WiFi.
  3. Honeytoken worked as designed (detected attacker).

6. Business Impact:

  • Operational Impact: None.
  • Data Exposure: None (honeytoken has no access).
  • Detection Value: HIGH – Identified attacker presence.

7. Remediation & Prevention:

Completed Actions:

  • checkedAttacker device blocked.
  • checkedGuest WiFi isolated.
  • checkedThreat hunting completed.

Technical Controls Enhanced:

  • checkedImplemented network segmentation for Guest WiFi.
  • checkedDeployed additional honeytokens across environment.
  • checkedEnhanced monitoring for lateral movement.

8. Conclusion:

This incident demonstrates the value of honeytoken accounts. An attacker with stolen credentials tested them against a file server, triggering our honeytoken. While no actual compromise occurred, we identified an attacker presence on our Guest WiFi and blocked them.

Closure Rationale: Honeytoken detected attacker; device blocked; no compromise.

Analyst: [Walter White], SOC Analyst
Date: 2024-02-12 10:00 EST

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