Play Ransomware Exploits Windows Zero-Day Vulnerability to Breach U.S. Organization

Threat actors associated with the Play ransomware group have successfully exploited a recently patched zero-day vulnerability in Microsoft Windows, identified as CVE-2025-29824. This attack targeted an unnamed organization in the United States, highlighting the ongoing threat posed by sophisticated ransomware operations.

Key Takeaways

• Vulnerability Exploited: CVE-2025-29824, a privilege escalation flaw in the Windows Common Log File System (CLFS).

• Attack Method: Utilized PipeMagic malware for initial access and privilege escalation.

• Targeted Sectors: Included IT, real estate, and financial sectors across multiple countries.

• Ransomware Tactics: Play ransomware employs double extortion, exfiltrating data before encryption.

Overview of the Attack

The Play ransomware group, also known as Balloonfly or PlayCrypt, has been active since mid-2022 and is notorious for its double extortion tactics. In this recent incident, the attackers exploited CVE-2025-29824, which allows them to escalate privileges from a standard user to SYSTEM level, enabling them to deploy ransomware effectively within compromised networks.

Exploitation Details

The exploitation process involved several sophisticated steps:

1. Initial Access: Attackers likely gained entry through a public-facing Cisco Adaptive Security Appliance (ASA).

2. Malware Deployment: The PipeMagic malware was used to establish a foothold in the target environment.

3. Privilege Escalation: The exploit allowed attackers to elevate their privileges, facilitating further malicious activities.

4. Credential Theft: Using tools like Sysinternals procdump.exe, attackers dumped the memory of LSASS to extract user credentials.

5. Ransomware Deployment: Although no ransomware payload was deployed in this specific incident, the infrastructure was set up for potential future attacks.

Indicators of Compromise (IoCs)

The following IoCs were associated with the exploitation of CVE-2025-29824:

Indicator	Type	Description
C:\ProgramData\SkyPDF\PDUDrv.blf	File Path	Created during CLFS exploit
clssrv.inf	DLL	Injected into winlogon.exe
servtask.bat	Batch File	Used for privilege escalation and user creation
paloaltoconfig.exe	Executable	Masquerades as legitimate software
paloaltoconfig.dll	DLL	Masquerades as legitimate software

Mitigation Strategies

In response to this incident, Microsoft has released security updates to address CVE-2025-29824. Organizations are strongly advised to:

• Apply Security Updates: Ensure all systems are updated to mitigate vulnerabilities.

• Enable Cloud Protection: Utilize cloud-delivered protection in Microsoft Defender Antivirus.

• Implement EDR Solutions: Run Endpoint Detection and Response (EDR) in block mode to remediate threats.

• Conduct Regular Audits: Regularly assess network security and onboard unmanaged devices to enhance visibility.

The exploitation of CVE-2025-29824 underscores the evolving tactics of ransomware groups like Play. Organizations must prioritize timely patching and robust security measures to defend against such sophisticated attacks. The incident serves as a reminder of the critical importance of cybersecurity in today’s digital landscape.

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Sources

• Ransomware Group Actively Exploits Windows CLFS Zero-Day Vulnerability, GBHackers News.

• Exploitation of CLFS zero-day leads to ransomware activity, Microsoft.

• Play Ransomware Exploited Windows CVE-2025-29824 as Zero-Day to Breach U.S. Organization, The Hacker News.

• Windows 0-Day Vulnerability Exploited in Wild to Deploy Play ransomware, CybersecurityNews.