Suspicious Child Process via Azure VM CustomScript Extension

Identifies a suspicious process executing as a descendant of the Azure VM CustomScript extension handler (CustomScriptHandler.exe) on a Windows host. The Azure CustomScript extension runs an attacker-supplied script with high privilege (SYSTEM) via the guest agent, and is a common cloud-to-host code-execution and persistence primitive. Because the extension's resource name is attacker-controlled and absent from on-host telemetry, this rule anchors on the type-bearing handler binary ('Microsoft.Compute.CustomScriptExtension...\CustomScriptHandler.exe') rather than the spoofable extension name, making it resistant to renaming. CustomScript legitimately launches PowerShell and cmd, so the rule fires only when the descendant is an execution-proxy, download, or discovery LOLBin, or PowerShell exhibiting suspicious tradecraft.

Elastic rule (View on GitHub)

  1[metadata]
  2creation_date = "2026/06/17"
  3integration = ["endpoint"]
  4maturity = "production"
  5updated_date = "2026/06/17"
  6
  7[rule]
  8author = ["Elastic"]
  9description = """
 10Identifies a suspicious process executing as a descendant of the Azure VM CustomScript extension handler
 11(CustomScriptHandler.exe) on a Windows host. The Azure CustomScript extension runs an attacker-supplied script with high
 12privilege (SYSTEM) via the guest agent, and is a common cloud-to-host code-execution and persistence primitive. Because
 13the extension's resource name is attacker-controlled and absent from on-host telemetry, this rule anchors on the
 14type-bearing handler binary ('Microsoft.Compute.CustomScriptExtension\\...\\CustomScriptHandler.exe') rather than the
 15spoofable extension name, making it resistant to renaming. CustomScript legitimately launches PowerShell and cmd, so the
 16rule fires only when the descendant is an execution-proxy, download, or discovery LOLBin, or PowerShell exhibiting
 17suspicious tradecraft.
 18"""
 19from = "now-9m"
 20index = ["logs-endpoint.events.process-*"]
 21language = "eql"
 22license = "Elastic License v2"
 23name = "Suspicious Child Process via Azure VM CustomScript Extension"
 24note = """## Triage and analysis
 25
 26### Investigating Suspicious Child Process via Azure VM CustomScript Extension
 27
 28The Azure CustomScript extension executes a script as SYSTEM via the guest agent. The extension's resource name is
 29attacker-controlled and not present on the host, so this rule anchors on the handler binary path
 30(`Microsoft.Compute.CustomScriptExtension\\...\\CustomScriptHandler.exe`), which is rename-proof, and alerts when a
 31LOLBin or suspicious PowerShell runs anywhere in its process tree.
 32
 33### Possible investigation steps
 34
 35- Review the full process tree from `CustomScriptHandler.exe` to the alerting process, including `process.command_line`
 36  and `process.args`.
 37- Identify the descendant: execution proxies (`mshta`, `regsvr32`, `rundll32`, `installutil`, `msbuild`), download tools
 38  (`certutil`, `bitsadmin`), script hosts (`wscript`, `cscript`), or discovery utilities (`whoami`, `net`, `nltest`,
 39  `wmic`) are not expected children of a benign CustomScript payload.
 40- Correlate with the control-plane event: a `MICROSOFT.COMPUTE/VIRTUALMACHINES/EXTENSIONS/WRITE` in
 41  `logs-azure.activitylogs-*` for this host around the same time, and the acting principal/source behind it.
 42- Retrieve the extension's settings/protectedSettings from the VM (the activity log does not contain the script body) to
 43  assess intent.
 44- Pivot on the host for credential access, new local accounts, persistence, or outbound C2 following the execution.
 45- Review who deployed the extension (Entra sign-in logs and RBAC for the principal in the correlated activity log event).
 46
 47### False positive analysis
 48
 49- Infrastructure-as-code and configuration-management scripts deployed via CustomScript may legitimately run discovery
 50  utilities (`whoami`, `net`, `nltest`, `systeminfo`, `wmic`, `tasklist`, `arp`) for bootstrap or inventory. If the
 51  activity recurs from known automation, baseline it and exclude by `process.command_line`/`process.args`.
 52- Software installation and bootstrapping via CustomScript can invoke `msbuild`, `installutil`, `regsvr32`, `regasm`,
 53  `regsvcs`, `certutil`, or `bitsadmin` to build, register, or download legitimate components. Verify the target
 54  file/URL and, if benign, scope the exclusion to the specific command or signed binary rather than the whole LOLBin.
 55- Legitimate setup scripts (DSC bootstrap, agent installers) may use PowerShell download cradles
 56  (`Invoke-WebRequest`, `DownloadString`, `-EncodedCommand`) against trusted internal or Microsoft endpoints. Confirm
 57  the destination host and content before excluding, and exclude by the specific command line, not by host.
 58- A known automation principal deploying the extension from expected corporate egress (corroborated by the correlated
 59  `MICROSOFT.COMPUTE/VIRTUALMACHINES/EXTENSIONS/WRITE` and an approved change) lowers confidence, but still review the
 60  executed content. Prefer narrow, command- or argument-scoped exclusions over broad host or LOLBin exclusions, since
 61  the same execution chain is exactly what an attacker abuses.
 62
 63### Response and remediation
 64
 65- If unauthorized, remove the extension, isolate the host, rotate credentials reachable from it, and review RBAC on the affected subscription/resource group.
 66"""
 67references = [
 68    "https://blog.pwnedlabs.io/diving-deep-into-azure-vm-attack-vectors",
 69    "https://www.sysdig.com/blog/the-expendable-extension-name-azure-vmaccess-naming-chaos-password-resets-and-a-detection-gap",
 70    "https://learn.microsoft.com/en-us/azure/virtual-machines/extensions/custom-script-windows",
 71]
 72risk_score = 47
 73rule_id = "b4d4f0fb-908e-4cd1-ac8f-795c0433db0a"
 74severity = "medium"
 75tags = [
 76    "Domain: Endpoint",
 77    "OS: Windows",
 78    "Use Case: Threat Detection",
 79    "Tactic: Execution",
 80    "Tactic: Defense Evasion",
 81    "Data Source: Elastic Defend",
 82    "Resources: Investigation Guide",
 83]
 84timestamp_override = "event.ingested"
 85type = "eql"
 86query = '''
 87sequence by host.id with maxspan=1m
 88  /* Azure CustomScript extension handler */
 89  [process where host.os.type == "windows" and event.type == "start" and
 90     (process.name : "CustomScriptHandler.exe" or
 91      process.executable : "?:\\Packages\\Plugins\\*CustomScript*\\*\\CustomScriptHandler.exe")] by process.entity_id
 92  /* Abused LOLBin / suspicious PowerShell anywhere in its tree */
 93  [process where host.os.type == "windows" and event.type == "start" and
 94   (
 95     process.name : ("mshta.exe", "regsvr32.exe", "rundll32.exe", "installutil.exe", "msbuild.exe", "regasm.exe",
 96                     "regsvcs.exe", "wscript.exe", "cscript.exe", "bitsadmin.exe", "nltest.exe", "whoami.exe",
 97                     "net.exe", "net1.exe", "wmic.exe", "systeminfo.exe", "quser.exe", "arp.exe", "tasklist.exe") or
 98     (process.name : "certutil.exe" and process.args : ("*urlcache*", "*-decode*", "*-encode*")) or
 99     (process.name : ("powershell.exe", "pwsh.exe") and
100      process.command_line : ("*-enc*", "*EncodedCommand*", "*FromBase64String*", "*DownloadString*", "*DownloadFile*",
101                              "*Invoke-Expression*", "*IEX *", "*IEX(*", "*|IEX*", "*-w hidden*", "*WindowStyle Hidden*",
102                              "*Net.WebClient*", "*Invoke-WebRequest*", "*Start-BitsTransfer*"))
103   )] by process.Ext.ancestry
104'''
105
106[[rule.threat]]
107framework = "MITRE ATT&CK"
108
109[[rule.threat.technique]]
110id = "T1651"
111name = "Cloud Administration Command"
112reference = "https://attack.mitre.org/techniques/T1651/"
113
114[[rule.threat.technique]]
115id = "T1059"
116name = "Command and Scripting Interpreter"
117reference = "https://attack.mitre.org/techniques/T1059/"
118
119[[rule.threat.technique.subtechnique]]
120id = "T1059.001"
121name = "PowerShell"
122reference = "https://attack.mitre.org/techniques/T1059/001/"
123
124[[rule.threat.technique.subtechnique]]
125id = "T1059.003"
126name = "Windows Command Shell"
127reference = "https://attack.mitre.org/techniques/T1059/003/"
128
129[rule.threat.tactic]
130id = "TA0002"
131name = "Execution"
132reference = "https://attack.mitre.org/tactics/TA0002/"
133
134[[rule.threat]]
135framework = "MITRE ATT&CK"
136
137[[rule.threat.technique]]
138id = "T1218"
139name = "System Binary Proxy Execution"
140reference = "https://attack.mitre.org/techniques/T1218/"
141
142[rule.threat.tactic]
143id = "TA0005"
144name = "Defense Evasion"
145reference = "https://attack.mitre.org/tactics/TA0005/"

Triage and analysis

Investigating Suspicious Child Process via Azure VM CustomScript Extension

The Azure CustomScript extension executes a script as SYSTEM via the guest agent. The extension's resource name is attacker-controlled and not present on the host, so this rule anchors on the handler binary path (Microsoft.Compute.CustomScriptExtension\...\CustomScriptHandler.exe), which is rename-proof, and alerts when a LOLBin or suspicious PowerShell runs anywhere in its process tree.

Possible investigation steps

  • Review the full process tree from CustomScriptHandler.exe to the alerting process, including process.command_line and process.args.
  • Identify the descendant: execution proxies (mshta, regsvr32, rundll32, installutil, msbuild), download tools (certutil, bitsadmin), script hosts (wscript, cscript), or discovery utilities (whoami, net, nltest, wmic) are not expected children of a benign CustomScript payload.
  • Correlate with the control-plane event: a MICROSOFT.COMPUTE/VIRTUALMACHINES/EXTENSIONS/WRITE in logs-azure.activitylogs-* for this host around the same time, and the acting principal/source behind it.
  • Retrieve the extension's settings/protectedSettings from the VM (the activity log does not contain the script body) to assess intent.
  • Pivot on the host for credential access, new local accounts, persistence, or outbound C2 following the execution.
  • Review who deployed the extension (Entra sign-in logs and RBAC for the principal in the correlated activity log event).

False positive analysis

  • Infrastructure-as-code and configuration-management scripts deployed via CustomScript may legitimately run discovery utilities (whoami, net, nltest, systeminfo, wmic, tasklist, arp) for bootstrap or inventory. If the activity recurs from known automation, baseline it and exclude by process.command_line/process.args.
  • Software installation and bootstrapping via CustomScript can invoke msbuild, installutil, regsvr32, regasm, regsvcs, certutil, or bitsadmin to build, register, or download legitimate components. Verify the target file/URL and, if benign, scope the exclusion to the specific command or signed binary rather than the whole LOLBin.
  • Legitimate setup scripts (DSC bootstrap, agent installers) may use PowerShell download cradles (Invoke-WebRequest, DownloadString, -EncodedCommand) against trusted internal or Microsoft endpoints. Confirm the destination host and content before excluding, and exclude by the specific command line, not by host.
  • A known automation principal deploying the extension from expected corporate egress (corroborated by the correlated MICROSOFT.COMPUTE/VIRTUALMACHINES/EXTENSIONS/WRITE and an approved change) lowers confidence, but still review the executed content. Prefer narrow, command- or argument-scoped exclusions over broad host or LOLBin exclusions, since the same execution chain is exactly what an attacker abuses.

Response and remediation

  • If unauthorized, remove the extension, isolate the host, rotate credentials reachable from it, and review RBAC on the affected subscription/resource group.

References

Related rules

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