Microsoft Says China-Linked Storm-1175 Deploys New StormEncryptor Ransomware

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Summary

Microsoft says China-linked Storm-1175 has switched from Medusa to StormEncryptor and may be exploiting an N-central flaw. The group uses remote-management and discovery tools before rapidly exfiltrating data and deploying ransomware.

Key points

  • Microsoft reports that Storm-1175, a financially motivated actor linked to China, has deployed a previously undocumented ransomware strain called StormEncryptor, replacing its earlier use of Medusa.
  • StormEncryptor is written in C++, appends .encrypted to encrypted files, and drops a !!!README_FIRST!!!.txt ransom note in scanned directories.
  • Microsoft says the campaign may exploit CVE-2026-18577 in N-able N-central for initial access; the exact vulnerability used remains unclear.
  • The article describes CVE-2026-18577 as a likely patch bypass for CVE-2026-18556; both flaws allow authentication bypass and account takeover in susceptible versions and were flagged by CISA as actively exploited.
  • Post-compromise activity includes AnyDesk or SimpleHelp, Advanced IP Scanner for discovery, and Mimikatz for LSASS dumping.
  • Microsoft says Storm-1175 can move from initial access to data exfiltration and ransomware deployment within a few days, and urges customers to apply patches.

Article Details

Event Type
Ransomware campaign involving Storm-1175's deployment of a previously undocumented ransomware strain.
Impact
The campaign involves intrusion, data exfiltration, and encryption of affected systems. StormEncryptor appends .encrypted to encrypted files and drops a ransom note in scanned directories.

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