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Sherlocked Security – AI-Powered Cybersecurity & Penetration TestingSherlocked Security – AI-Powered Cybersecurity & Penetration Testing
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Red Teaming & Adversary Simulation

Lateral Movement Simulation

  • May 8, 2025
  • 0

Sherlocked Security – Lateral Movement Simulation

Simulate the Lateral Movement of Attackers Within Your Network to Identify Weaknesses


1. Statement of Work (SOW)

Service Name: Lateral Movement Simulation
Client Type: Enterprises, Financial Institutions, Healthcare, Government Agencies
Service Model: Simulating Attacker Movement Across Network Systems to Evaluate Internal Defenses
Compliance Coverage: NIST 800-53, SOC 2, ISO 27001, PCI-DSS

Simulation Types:

  • Network-based Lateral Movement Simulation
  • Active Directory Privilege Escalation & Lateral Movement
  • Credential Dumping & Pass-the-Hash Simulation
  • Remote Desktop Protocol (RDP) Exploitation
  • SMB & Lateral Movement Simulation
  • Kerberos Ticketing Exploitation
  • Lateral Movement Using PowerShell, WMI, and Other Tools
  • Simulated Advanced Persistent Threat (APT) Movement

2. Our Approach

[Pre-engagement & Scope Definition] → [Lateral Movement Simulation Setup] → [Privilege Escalation Testing] → [Credential Dumping & Pass-the-Hash Attacks] → [Simulated Lateral Movement via SMB/RDP] → [Post-Exploitation & Lateral Movement Techniques] → [Detection & Response Testing] → [Reporting & Remediation Recommendations] → [Retesting & Validation]


3. Methodology

[Kickoff & Scope Agreement] → [Lateral Movement Path Mapping] → [Privilege Escalation & SMB/RDP Testing] → [Exploitation of Active Directory] → [Simulate Lateral Movement Using PowerShell & WMI] → [Test for Detection & Mitigation] → [Reporting & Remediation Plan]


4. Deliverables to the Client

  1. Lateral Movement Simulation Report: Overview of lateral movement scenarios and test results
  2. Privilege Escalation Findings: Detailed analysis of privilege escalation vectors and lateral movement paths
  3. Credential Dumping & Pass-the-Hash Report: Findings from simulated credential dumping and hash-based attacks
  4. SMB/RDP Exploitation Report: Results from exploiting SMB and RDP protocols for lateral movement
  5. Post-Exploitation Assessment: Insights into post-exploitation techniques used by attackers to move laterally
  6. Detection & Response Evaluation: Evaluation of how your internal security tools detect lateral movement attempts
  7. Remediation Recommendations: Actionable guidance to reduce lateral movement risk and improve internal defense systems
  8. Retesting & Certification: Validation of improvements and post-remediation testing

5. What We Need from You (Client Requirements)

  • Access to network topology and key systems for simulation
  • List of critical assets and systems to include in testing
  • Collaboration with IT/Network and Security teams for setting up test scenarios
  • Access to Active Directory or relevant directory services for privilege escalation testing
  • Information on current endpoint security and network monitoring solutions
  • Access to necessary logs for analysis (e.g., Active Directory logs, endpoint security logs)
  • Access to firewall and network configuration details for testing SMB, RDP, and other protocols
  • A list of relevant user roles for privilege escalation testing (admins, power users, etc.)

6. Tools & Technology Stack

  • Custom Tools / Scripts for lateral movement simulations
  • Cobalt Strike for post-exploitation and lateral movement emulation
  • Mimikatz for credential dumping and pass-the-hash attacks
  • BloodHound for Active Directory privilege escalation mapping
  • Metasploit Framework for exploiting network protocols and privilege escalation
  • PowerShell Empire for PowerShell-based lateral movement and exploitation
  • Impacket for SMB and RDP exploitation tools
  • Responder for LLMNR and NetBIOS poisoning to capture hashes
  • Wireshark for network traffic analysis during lateral movement activities
  • Nmap for scanning and identifying vulnerable systems and open ports
  • Kali Linux for attack simulation and exploitation tools

7. Engagement Lifecycle

1. Discovery Call → 2. Scope Definition & Strategy → 3. Lateral Movement Path Mapping → 4. Privilege Escalation Testing → 5. Simulated Lateral Movement Using SMB/RDP → 6. Detection & Response Testing → 7. Draft Report → 8. Final Report & Remediation Recommendations → 9. Retesting & Certification


8. Why Sherlocked Security?

Feature Sherlocked Advantage
Realistic Lateral Movement Simulation Test for lateral movement techniques within your internal network
Privilege Escalation Testing Simulate and identify privilege escalation vectors within Active Directory and other systems
SMB/RDP Exploitation Evaluate the vulnerability of SMB and RDP protocols in your network environment
Advanced Post-Exploitation Techniques Simulate advanced post-exploitation tactics used by APTs and other threat actors
Detection & Response Testing Evaluate your network and endpoint detection systems for lateral movement detection capabilities
Custom Attack Tools Tailored tools and scripts to simulate lateral movement with precision

9. Real-World Case Studies

Lateral Movement in a Healthcare Organization

Client: Global Healthcare Provider
Scenario: Attackers used SMB and RDP exploitation to move laterally between network segments.
Findings: Inadequate endpoint monitoring and detection allowed attackers to spread without detection.
Fix: Enhanced endpoint detection tools, blocked unnecessary SMB/RDP ports, and improved user role management for internal systems.

Privilege Escalation and Lateral Movement in a Financial Institution

Client: Investment Bank
Scenario: A simulated attack escalated privileges through Active Directory and moved laterally using PowerShell.
Findings: Weak privilege separation and unmonitored privilege escalation paths were discovered.
Fix: Reconfigured Active Directory permissions, implemented least-privilege access, and deployed stricter monitoring on lateral movement.


10. SOP – Standard Operating Procedure

  1. Discovery call and scope agreement
  2. Mapping of lateral movement paths and critical assets
  3. Testing of privilege escalation vectors and lateral movement techniques (SMB, RDP, PowerShell)
  4. Post-exploitation testing using Mimikatz and BloodHound
  5. Evaluate detection capabilities for lateral movement via network tools (Wireshark, Nmap)
  6. Draft report and conduct review call with stakeholders
  7. Final report delivery with remediation steps
  8. Retesting and post-fix validation

11. Lateral Movement Simulation Checklist

1. Privilege Escalation and Lateral Movement Simulation

  • Test for unnecessary privileged access in Active Directory (AD) accounts.
  • Privilege escalation through Active Directory misconfigurations (T1071, T1087).
  • Simulate Pass-the-Hash attacks across the internal network (T1075).
  • Token impersonation to gain unauthorized access (T1134).
  • Test for Kerberos ticket stealing (T1558) and Golden Ticket attacks (T1558).
  • Escalate privileges using PowerShell Remoting or WMI (T1021).
  • Simulate AD ACL (Access Control List) attacks to elevate privileges (T1484).
  • Identify and exploit weak permissions in Active Directory and Group Policy Objects (T1484).
  • Test Group Policy vulnerabilities for lateral movement (T1484).
  • Escalate privileges using Remote Desktop Protocol (RDP) (T1021).
  • Test for improper network segmentation between internal network segments.

2. SMB and RDP Exploitation

  • Exploit SMB for lateral movement (T1021).
  • Test for RDP vulnerabilities and weak configurations that allow lateral movement (T1071).
  • Simulate SMB relay attacks (T1557) and test SMB signing (T1071).
  • Exploit RDP misconfigurations (weak passwords, unencrypted sessions).
  • Brute-force RDP credentials (T1071) using dictionary or password spraying.
  • Use stolen credentials to move laterally via SMB or RDP (T1071, T1021).
  • Map SMB shares and attempt lateral movement between systems (T1071).

3. PowerShell and WMI for Lateral Movement

  • Move laterally using PowerShell scripts (T1071, T1021).
  • Simulate WMI (Windows Management Instrumentation) attacks for lateral movement (T1047).
  • Abuse WMI for remote code execution and lateral movement (T1047).
  • Test for PowerShell-based exploits for internal network traversal (T1071).
  • Check PowerShell logging and event logs to detect suspicious activity (T1071).
  • Test for PowerShell Remoting access that could be exploited by attackers.

4. Credential Dumping and Network Scanning

  • Dump credentials from memory using tools like Mimikatz (T1003).
  • Simulate credential dumping via LSASS (T1003).
  • Scan internal networks for vulnerable systems and weak passwords (T1087).
  • Attempt password spraying and brute-force attacks on internal systems.
  • Test SMB signing and encryption enforcement to reduce risk of SMB-based lateral movement (T1071).
  • Scan and identify SMB shares with open permissions or accessible to unauthorized users.
  • Test for unprotected credentials stored in plaintext or insecure locations (e.g., registry, file shares).

5. Post-Exploitation Lateral Movement

  • Simulate lateral movement using stolen credentials (Pass-the-Hash, Pass-the-Ticket).
  • Compromise multiple systems using the same credentials to see how far attackers can move.
  • Monitor and map lateral movement paths through network shares, unpatched systems, or software vulnerabilities.
  • Simulate APT-like behaviors such as establishing persistence or escalating privileges after lateral movement.

6. Detection and Response Testing

  • Evaluate internal detection systems for lateral movement attempts (e.g., SIEM, EDR, IDS/IPS).
  • Test network segmentation and verify if unauthorized lateral movement is detected.
  • Evaluate logging mechanisms on endpoints and servers for lateral movement activities.
  • Test if your firewall and IDS/IPS detect SMB/RDP traffic anomalies.
  • Evaluate if unusual authentication attempts (multiple failed logins, logins from suspicious locations) trigger alerts.
  • Test for endpoint protection (EPP) to detect lateral movement using PowerShell and other tools.
  • Simulate network traffic analysis and monitor if lateral movement is detected by intrusion detection systems (IDS).

7. Network Access Control Testing

  • Test Active Directory security and configurations (e.g., password policies, group memberships, delegation).
  • Verify restrictions on lateral movement using firewalls or network segmentation.
  • Test for unused network services that may allow lateral movement (e.g., unnecessary RDP/SMB access).
  • Evaluate VLAN segmentation to prevent lateral movement between sensitive networks.
  • Test internal DNS configuration to prevent attackers from abusing it to navigate through the network.
  • Test access controls on SMB shares, file systems, and critical services to ensure attackers can’t exploit them.

8. Privilege Escalation Detection and Countermeasures

  • Verify detection mechanisms for privilege escalation techniques such as exploiting Sudo, Sudo Caching, and Privilege Abuse.
  • Test internal detection of escalation using WMI, PowerShell, or Kerberos manipulation.
  • Test alerts for unauthorized admin privileges and credential changes.
  • Verify endpoint detection for tools like Mimikatz, BloodHound, and other post-exploitation tools.

9. Access Review and Remediation Recommendations

  • Review access controls and ensure the principle of least privilege is enforced.
  • Block SMB and RDP access to sensitive systems, or use VPN-based access to mitigate lateral movement risks.
  • Recommendations for segmenting network environments and enforcing strict access rules to limit the ability of attackers to move across the network.
  • Patch and update internal systems to mitigate exploitation opportunities.
  • Implement multifactor authentication (MFA) for RDP and other critical services to reduce the risk of lateral movement.

Persistence & Post-Exploitation Techniques
Insider Threat Simulation

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