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upstart writes:

If you think a password prevents scanning in the cloud, think again:

Microsoft cloud services are scanning for malware by peeking inside users' zip files, even when they're protected by a password, several users reported on Mastodon on Monday.

Compressing file contents into archived zip files has long been a tactic threat actors use to conceal malware spreading through email or downloads. Eventually, some threat actors adapted by protecting their malicious zip files with a password the end user must type when converting the file back to its original form. Microsoft is one-upping this move by attempting to bypass password protection in zip files and, when successful, scanning them for malicious code.

While analysis of password-protected files in Microsoft cloud environments is well-known to some people, it came as a surprise to Andrew Brandt. The security researcher has long archived malware inside password-protected zip files before exchanging them with other researchers through SharePoint. On Monday, he took to Mastodon to report that the Microsoft collaboration tool had recently flagged a zip file, which had been protected with the password "infected."

[...] Fellow researcher Kevin Beaumont joined the discussion to say that Microsoft has multiple methods for scanning the contents of password-protected zip files and uses them not just on files stored in SharePoint but all its 365 cloud services. One way is to extract any possible passwords from the bodies of an email or the name of the file itself. Another is by testing the file to see if it's protected with one of the passwords contained in a list.

"If you mail yourself something and type something like 'ZIP password is Soph0s', ZIP up EICAR and ZIP password it with Soph0s, it'll find (the) password, extract and find (and feed MS detection)," he wrote.

[...] The practice illustrates the fine line online services often walk when attempting to protect end users from common threats while also respecting privacy. As Brandt notes, actively cracking a password-protected zip file feels invasive. At the same time, this practice almost surely has prevented large numbers of users from falling prey to social engineering attacks attempting to infect their computers.

One other thing readers should remember: password-protected zip files provide minimal assurance that content inside the archives can't be read. As Beaumont noted, ZipCrypto, the default means for encrypting zip files in Windows, is trivial to override. A more dependable way is to use an AES-256 encryptor built into many archive programs when creating 7z files.

Original Submission