What is Lateral Movement and How to Detect and Prevent It

What is Lateral Movement?

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Lateral movement refers to a technique used by attackers to systematically spread across a network, moving from one system to another in search of sensitive data and valuable resources. This tactic allows cybercriminals to gain and maintain access within a network, extending their reach and increasing their chances of successfully executing their malicious objectives.

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After gaining initial access through means such as phishing attacks, exploiting vulnerabilities, or using stolen credentials, attackers use lateral movement techniques to go across the network stealthily. The goal is to evade detection, escalate privileges, and compromise additional systems. This process often involves sophisticated methods to blend in with normal network traffic, making it difficult for traditional security measures to identify and stop the attack.

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Stages of Lateral Movement

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Understanding how lateral movement works is important for recognizing the stages attackers follow to infiltrate deeper into a network. These stages provide insight into the tactics and methods used to evade detection and compromise valuable resources:

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Stage 1: Reconnaissance

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The first stage is reconnaissance. During this phase, attackers gather as much information as possible about the network's infrastructure, key systems, and security controls, including understanding the organization's SaaS security. This includes mapping out the network topology, identifying high-value targets, and locating potential vulnerabilities. Tools like network scanners and open-source intelligence (OSINT) methods are commonly used. This information helps attackers plan their next moves and find the best paths to move laterally without detection.

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Stage 2: Stealing of Credentials

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Following reconnaissance, attackers move to the stealing of credentials stage. This involves obtaining legitimate user credentials through methods like phishing, keylogging, or exploiting vulnerabilities in password storage. Gaining initial access to these credentials allows attackers to impersonate legitimate users, making it easier to move across the network undetected. The stolen credentials provide the attackers with the necessary access rights to further their attack, often leading to privilege escalation. Additionally, attackers may perform account takeover or SaaS session hijacking, where they hijack active sessions to gain unauthorized access to SaaS applications, further compromising sensitive data and systems.

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Stage 3: Lateral Movement Access

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With stolen credentials in hand, attackers proceed to the lateral movement access stage. In the context of the MGM/Okta breach, attackers employed sophisticated techniques to pivot within the network. Initially, attackers exploited social engineering tactics to impersonate an MGM employee, gaining access to the network through the IT help desk. They managed to bypass Multi-Factor Authentication (MFA) by manipulating the help desk into resetting MFA devices.

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Once inside, the attackers used the compromised Okta credentials to gain access to the Okta admin console. With administrative privileges, they could disable MFA for other users, add their own devices, and reset MFA settings, thereby maintaining persistent access. This method allowed them to take control of various accounts and escalate their privileges within the network.

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Key techniques used included:

Social Engineering: Attackers impersonated an MGM employee to gain initial access.
Bypassing MFA: Through manipulation and social engineering, attackers reset MFA devices.
Admin Console Exploitation: With access to the Okta admin console, attackers disabled MFA protections and added their own devices.
Credential Escalation: Attackers escalated their privileges by adding themselves to higher privilege roles within Okta.

This approach enabled attackers to move laterally from the initial compromised system to other critical systems within the network, including cloud services. The ability to disable MFA and manipulate identity provider (IdP) settings gave the attackers broad access to sensitive data and critical infrastructure, underscoring the need for robust security measures and continuous monitoring of IdP configurations.

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Stage 4: Detection & Interception

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The final stage is detection and interception. Despite their efforts to remain hidden, the activities of the attackers can be detected using advanced security measures. Companies take advantage of tools like Endpoint Detection and Response (EDR) and SaaS Detection and Response solutions to identify suspicious behaviors indicative of lateral movement. By continuously monitoring the network and applying machine learning algorithms to detect anomalies, such as those provided by Reco’s SaaS detection and response solutions, security teams can intercept these attacks. Effective detection involves real-time alerting and automated responses to mitigate the threat before significant damage occurs.

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What Types of Attacks Use Lateral Movement?

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After examining the stages of lateral movement, it's essential to understand how attackers use certain tactics in various types of cyber attacks. The ability to move laterally within a network significantly enhances the effectiveness and impact of their malicious activities. Let's explore some notable types of attacks that frequently leverage lateral movement:

Ransomware: Ransomware attacks often start with initial access through phishing or exploiting vulnerabilities. Attackers use lateral movement to spread the ransomware to multiple systems, ensuring that vital data and operations are compromised. This widespread infection amplifies the pressure on victims to pay the ransom to regain access to their data. Techniques such as credential theft and exploiting vulnerabilities are essential for the ransomware to move laterally and infect the network comprehensively.

Data Exfiltration: In data exfiltration attacks, the primary goal is to steal sensitive data. Attackers use lateral movement to navigate the network, locate valuable information, and exfiltrate it without detection. By accessing multiple systems, attackers can gather extensive data, increasing the impact of the breach. This type of attack targets confidential business information, personal data, and intellectual property, causing significant damage to the organization.

Espionage: Cyber espionage involves long-term, covert operations to gather intelligence. Attackers employ lateral movement to maintain a persistent presence within the target network. This stealthy approach helps them avoid detection while they access confidential data and monitor communications. Nation-states and organized crime groups commonly use these methods to gather intelligence on competitors or adversaries.

Botnet Infection: Botnet infections rely on lateral movement to compromise as many devices as possible within a network. Once an initial device is infected, the attacker spreads the infection to other systems, creating a network of compromised devices, or botnets. These botnets can then be used for malicious activities such as distributed denial-of-service (DDoS) attacks, spam campaigns, or large-scale data breaches. Lateral movement techniques are crucial for growing and maintaining control over a large number of devices in a botnet.

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Why Do Attackers Use the Lateral Movement Technique

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Developing effective defense systems demands an understanding of why attackers choose lateral movement techniques. Lateral movement allows them to extend their reach within a compromised network, maximize the impact of their attacks, and achieve their objectives with minimal risk of detection. Let's explore the key reasons why attackers rely on this tactic.

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1. Easier to Evade Detection

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Attackers use lateral movement to blend in with normal network traffic and avoid detection by security systems. By moving laterally, they can exploit legitimate credentials and existing network protocols, making it harder for traditional security controls to identify malicious activity. This stealthy approach allows attackers to remain undetected for longer periods, increasing the chances of successfully compromising critical systems and sensitive data.

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2. Time to Learn Vulnerabilities

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Lateral movement provides attackers with the opportunity to thoroughly explore the network, identify vulnerabilities, and understand the architecture of the target environment. By spending time within the network, attackers can gather valuable information about operating systems, applications, and security controls. This knowledge enables them to plan and execute more effective attacks, increasing the likelihood of success.

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3. Opportunity for Privilege Escalation

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Attackers often seek to gain higher levels of access within a network to control more valuable resources and sensitive data. Lateral movement techniques allow them to move from a compromised low-privilege account to an account with higher privileges, such as an administrator or domain controller. This escalation of privileges provides attackers with greater control over the network, enabling them to execute more destructive actions and access critical systems without restriction.

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Common Lateral Movement Techniques

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Attackers will use a variety of sophisticated techniques to move laterally within a compromised network. These methods enable them to extend their reach, maintain persistence, and access valuable resources. Understanding these techniques helps detect and prevent lateral movement in your network. Following are some of the most common lateral movement techniques:

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Lateral Movement Techniques	Description
Pass-the-Hash	Pass-the-Hash (PtH) is a technique where attackers steal password hashes from one system and use them to authenticate to other systems without needing to crack the passwords. This method allows attackers to gain access to multiple systems by exploiting the same hash, making it difficult to detect and prevent.
Pass-the-Ticket	Pass-the-Ticket (PtT) involves stealing Kerberos tickets to authenticate within Active Directory environments. In the Okta/MGM breach, attackers likely used social engineering to gain initial access and then used administrative privileges to bypass MFA. Once inside, they could issue Kerberos tickets to move laterally within the network, accessing additional SaaS applications without needing usernames and passwords. This method is particularly dangerous as it bypasses traditional security measures and allows attackers to compromise additional cloud resources.
Exploiting Vulnerabilities	Attackers often exploit vulnerabilities in software and network infrastructure to move laterally. This can include unpatched software, misconfigured systems, and weaknesses in security controls. By exploiting these vulnerabilities, attackers can gain access to additional systems and escalate their privileges.
Using Stolen Credentials	Using stolen credentials is one of the most straightforward and effective lateral movement techniques. Attackers obtain valid usernames and passwords through phishing, social engineering, or other methods. Once they have these credentials, they can move laterally across the network, accessing sensitive data and systems without raising suspicion.

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How to Detect Lateral Movement

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Detecting lateral movement is the first step in order to minimize the damage caused by a cyber attack. As we have already mentioned in this article, attackers who successfully move laterally within a network can escalate their privileges and access sensitive data, leading to significant breaches. To effectively identify and respond to lateral movement, it is necessary to understand the concept of breakout time and adhere to the 1-10-60 rule.

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Breakout Time and the 1-10-60 Rule

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Breakout Time refers to the period it takes for an attacker to move laterally from the initial point of compromise to other systems within the network. On average, this time is about two hours, but it can vary depending on the attacker's skill and the network's defenses.

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The 1-10-60 Rule is a guideline for responding to cyber threats efficiently:

1 Minute to Detect the Intrusion: Quick detection of an attack is crucial to prevent lateral movement. This can be achieved through continuous monitoring of network activities and advanced threat detection systems.
10 Minutes to Investigate: Once an intrusion is detected, security teams should quickly investigate the incident to understand the attack vector, identify the compromised systems, and assess the attack's scope.
60 Minutes to Contain and Remediate: The final step is to contain the attack and prevent further lateral movement. This involves isolating compromised systems, revoking stolen credentials, and implementing additional security measures to mitigate the threat.

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How to Prevent Lateral Movement

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Adopting a multi-layered strategy is important when protecting your network from cyber attackers' advanced tactics. Companies can successfully lower the danger of lateral movement and guard against the loss of their sensitive data by combining several preventive measures. By implementing the following strategies, a business can effectively prevent lateral movement and protect its critical assets from cyber threats.

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1. Enforce MFA

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Multi-Factor Authentication (MFA) adds an extra layer of security by requiring users to provide two or more verification factors to gain access to resources. This reduces the risk of attackers using stolen credentials to move laterally within the network. By enforcing MFA, organizations can ensure that even if an attacker obtains a password, they still face significant hurdles before accessing sensitive systems.

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2. Penetration Testing

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Penetration testing involves simulating cyberattacks on a network to identify and fix security vulnerabilities. Regular tests help organizations uncover weaknesses that can be exploited for lateral movement, ensuring strong SaaS security best practices are followed. By proactively identifying and addressing these vulnerabilities, organizations can strengthen their defenses and prevent attackers from advancing within their networks.

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3. Zero Trust Security

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Zero Trust Security operates on the principle of "never trust, always verify." It assumes that threats can exist both inside and outside the network and therefore requires strict verification of every access request. Implementing a Zero Trust framework ensures that every user and device is continuously authenticated and authorized, minimizing the risk of lateral movement by limiting access to only what is necessary.

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4. Identity & Access Governance

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Identity & Access Governance involves a comprehensive approach to managing and securing all endpoints and devices connected to the network. This includes using advanced endpoint protection solutions, such as anti-malware and firewalls, to detect and prevent malicious activities at the device level. Regularly updating and patching endpoint security software is necessary to prevent attackers from exploiting vulnerabilities for lateral movement. By integrating solid Identity & Access Governance solutions, companies can ensure a higher level of security and control over network access points.

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5. IAM

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Identity and Access Management (IAM) ensures that users have appropriate access levels based on their roles. By managing and monitoring user permissions, IAM helps prevent unauthorized access and limits the potential for lateral movement. Implementing strict access controls and regularly reviewing access permissions are essential components of a robust IAM strategy.

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6. Secure Authentication

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Secure Authentication practices, such as strong password policies and encryption, are essential for preventing lateral movement. Ensuring that passwords are complex, frequently changed, and securely stored can reduce the risk of credential theft. Additionally, implementing Reco’s SaaS Security Posture Management (SSPM) solutions can protect credentials from being intercepted during transmission.

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7. ITDR and SaaS Detection & Response Monitoring

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Identity Threat Detection and Response (ITDR) and SaaS detection and response monitoring solutions provide continuous oversight of user activities and SaaS application interactions. These tools can identify signs of lateral movement, such as unusual login attempts, unauthorized access, and suspicious behaviors within SaaS environments. By continuously monitoring and analyzing identity-related activities, ITDR and SaaS detection tools can respond in real-time to contain threats, ensuring robust protection against sophisticated cyber attacks.

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8. Extended Detection and Response (XDR)

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Extended Detection and Response (XDR) integrates data from multiple security layers, including endpoints, networks, and cloud environments, to provide comprehensive threat detection and response. XDR enhances visibility across the entire IT environment, making it easier to detect and prevent lateral movement by correlating data from various sources and providing a unified view of potential threats.

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7 Best Practices to Detect & Prevent Lateral Movement Security Threats

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In addition to implementing strong preventive measures, businesses must adopt best practices to enhance the detection of potential lateral movement activities and ensure continuous improvement in their security posture. These practices complement preventive strategies by providing additional layers of detection, monitoring, and response, ensuring that any suspicious behavior is quickly identified and mitigated. Here are some essential strategies to consider:

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Best Practices	Description
1. Gauge the Attack Surface Awareness	Understanding the extent of your attack surface is critical for defending against lateral movement. Businesses should regularly map out all assets, devices, and connections within their network to identify potential vulnerabilities. This awareness helps in prioritizing security measures and focusing on areas that are most susceptible to attacks.
2. Investigate Permissions and Identities	Regularly reviewing and auditing user permissions and identities is essential. Ensuring that users have the minimum necessary access reduces the risk of unauthorized lateral movement. Implementing strict identity and access management (IAM) policies can help in managing and monitoring user permissions effectively.
3. Measure Anomalies and Detection Accuracies	Use advanced detection tools that leverage machine learning and behavioral analytics to identify anomalies in network activity. Continuously measuring the accuracy of these tools ensures they are effectively identifying potential threats. Businesses should focus on refining their detection algorithms to reduce false positives and improve response times.
4. Use Effective Automation and Orchestration	Automation and orchestration can significantly enhance the efficiency of your security operations. By automating routine tasks and orchestrating responses to detected threats, businesses can reduce the time it takes to respond to potential lateral movement activities. Implementing Security Orchestration, Automation, and Response (SOAR) platforms can streamline these processes.
5. Update Your Endpoint Security Solution	Keeping endpoint security solutions up-to-date is crucial. Advanced endpoint detection and response (EDR) tools should be regularly updated to protect against the latest threats. Businesses must ensure that all endpoints are equipped with the latest security patches and updates to prevent exploitation by attackers.
6. Proactively Hunt for Advanced Threats	Proactive threat hunting involves actively searching for signs of compromise within the network. Security teams should regularly conduct threat-hunting exercises to identify and mitigate threats before they can cause significant damage. This proactive approach helps in uncovering hidden threats that automated tools might miss.
7. Maintain Proper IT Hygiene	Maintaining proper IT hygiene is fundamental to preventing lateral movement. This includes regularly updating software and systems, applying security patches, and removing outdated or unnecessary access permissions. By maintaining a clean and organized IT environment, businesses can reduce the risk of attackers exploiting vulnerabilities to move laterally within the network.

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How Reco Can Help with Lateral Movement Protection

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The recent MGM breach, executed by the BlackCat ransomware group, underscores the many vulnerabilities in hybrid identity infrastructures. Attackers used their on-prem dominance to compromise the cloud identity infrastructure, demonstrating the need for a unified approach to identity protection.

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Reco's comprehensive suite of tools, however, addresses these vulnerabilities by providing solid protection across both on-prem and cloud environments. By implementing Reco's unified identity protection platform, businesses can significantly enhance their defenses against lateral movement, protecting both their on-prem and cloud assets from sophisticated cyber threats.

Let’s see how exactly Reco can help achieve that:

Unified Identity Protection: Reco integrates with both on-prem and cloud identity infrastructures, ensuring continuous monitoring and risk analysis. By protecting the entire identity ecosystem, Reco helps prevent attackers from exploiting weaknesses in interconnected systems.

Real-Time Threat Detection: Reco’s advanced threat detection capabilities identify and respond to suspicious activities in real-time. This includes detecting lateral movement attempts and blocking unauthorized access before attackers can escalate their privileges or compromise additional systems.

Automated Response Mechanisms: Reco’s automated response features ensure swift action against detected threats. By leveraging machine learning and behavioral analytics, Reco can initiate automated remediation processes, such as enforcing Multi-Factor Authentication (MFA) or blocking access, to prevent lateral movement.

Comprehensive Visibility: Reco provides deep visibility into user activities across various SaaS applications and on-prem systems. This holistic view enables organizations to identify and investigate suspicious behavior promptly, ensuring that any potential lateral movement is quickly detected and mitigated.

Posture Management: Reco’s posture management capabilities continuously assess and improve the security posture of your organization. By identifying and addressing misconfigurations, vulnerabilities, and compliance issues, Reco ensures that your security measures are always up to date and effective.

Configuration Management: Reco's configuration management tools help maintain and enforce security configurations across all your systems. This ensures consistency and compliance with security policies, reducing the risk of configuration drift that can lead to security gaps and potential exploits.

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Conclusion

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Protecting sensitive data and critical infrastructure in the constantly changing field of cybersecurity requires a thorough understanding of lateral movement and the ability to prevent it. Companies can significantly reduce the danger of cyber attackers moving laterally within their networks by implementing strong detection and prevention measures.

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Furthermore, adopting best practices for security measures and continuous improvement provides ongoing protection against advanced threats. By using enhanced capabilities like Reco for unified identity protection across both on-prem and cloud environments, businesses can strengthen their defenses, detect threats in real-time, and maintain a resilient security posture in the face of growing cyber threats. The encouraging outlook is that with continued innovation, education, and awareness, the future of cybersecurity in the business industry looks promising and more secure, provided that companies will continue to take the right steps at the right time.

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