Misconfigurations Enabled Ransomware Attacks on ESXi and Proxmox

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Summary

Kaspersky GERT details two ransomware investigations: reused ESXi root credentials accessible through monitoring, and Proxmox credentials stored in plain-text notes. The cases show how privileged access enabled encryption without a VM escape.

Key points

  • Kaspersky GERT investigated ransomware incidents affecting ESXi and Proxmox environments.
  • In the ESXi case, broad monitoring access and a reused root password enabled SSH access to multiple hosts; the attacker disabled execInstalledOnly, ran ransomware, and cleared logs.
  • In the Proxmox case, credentials in plain-text notes on a compromised administrator workstation enabled root access and use of a VNC websocket to run ransomware across the cluster.
  • The article says neither incident required a VM escape; exposed administrative paths and privileged credentials enabled access to the virtualization layer.
  • Recommended defenses include dedicated least-privilege monitoring identities, unique vaulted credentials, restricted SSH access, network segmentation, and alerts for security-setting changes.
  • The article also discusses risks from VM and container escapes, compromised images, management APIs, and weak network, storage, and backup controls.

Article Details

Attack Vectors
  • In the ESXi incident, access to a monitoring environment exposed a reusable root credential; the attacker used it to connect to multiple ESXi hosts over SSH.
  • On ESXi, the attacker disabled the execInstalledOnly restriction, then executed the uploaded encryption binary and deleted logs.
  • In the Proxmox incident attributed to The Gentlemen group, an attacker found administrative credentials and access details stored in plain-text notes on a compromised administrator workstation.
  • The attacker used the Proxmox root account to activate the VNC web socket, access other hosts, and download and execute ransomware across the cluster.
Defensive Notes
  • Use dedicated, least-privilege monitoring identities; do not store reusable hypervisor root credentials in monitoring systems.
  • Use unique, vaulted credentials for each host, rotate exposed secrets, and protect privileged access with multifactor authentication.
  • Route routine ESXi administration through vCenter; keep SSH and ESXi Shell disabled by default, restrict approved access, and alert on root logins and service activation.
  • Enforce and monitor execInstalledOnly, Secure Boot, and Lockdown Mode where supported.
  • Store privileged credentials in an approved password manager or privileged access management system rather than plain-text notes.
  • Separate monitoring, management, backup, storage, and workload networks; restrict permitted source, destination, and services.
  • Forward host, identity, management, and network logs to protected remote storage, and protect backups with separate identities and restricted management paths.
  • Patch hypervisors, kernels, runtimes, and management software; use trusted image sources, controlled builds, provenance records, and signature checks.

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