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Defender XDR: Critical Asset and Shadow IT Containment

16 April 2025

Threats

Introduction: Microsoft Defender XDR continues to improve its Automatic Attack Disruption capabilities, helping organizations contain attacks earlier and more precisely.

The latest update brings two important new features:

This post provides a quick overview of the changes, how they work, and what you should know before enabling them.

Overview: Why Automatic Attack Disruption matters

Attackers constantly evolve — using lateral movement techniques, privilege escalation, and exploiting unmanaged assets.

Traditional containment strategies often required full device isolation, which could interrupt business operations, especially when critical infrastructure was involved.

Microsoft’s approach improves this by introducing targeted containment:

What’s New?Granular Containment of Critical AssetsScope:

Applies to Domain Controllers, DNS servers, DHCP servers, and other critical systems.

How it works:

Instead of full isolation, Defender for Endpoint intelligently restricts only the network functionalities and communication channels typically abused during attacks.

Impact:

Containment of IP addresses from Unmanaged DevicesScope:

Targets shadow IT, BYOD, and any unmanaged devices that could be leveraged in lateral movement.

How it works:

When malicious activity from an unknown or unmanaged device is detected, its associated IP address is automatically contained, blocking it from interacting with managed assets.

Impact:

Important Technical ConsiderationsPrerequisites - Licensing: Requires M365 E5, Defender for Endpoint Plan 2, or equivalent security licensing (full list available here).

Containment actions are fully visible and manageable:

Contained devices and suspended user accounts are labeled clearly. Release actions can be performed manually after risk mitigation.

All disruption actions are tracked centrally at Action Center.

You can track containment events via KQL queries, e.g.,

DeviceEvents
| where ActionType contains "ContainedDevice"

Tracking Disabled Accounts After Attack Disruption:

let AllDomainControllers =
DeviceNetworkEvents
| where TimeGenerated > ago(7d)
| where LocalPort == 88
| where LocalIPType == "FourToSixMapping"
| extend DCDevicename = tostring(split(DeviceName,".")[0])
| distinct DCDevicename;
IdentityDirectoryEvents
| where TimeGenerated > ago(90d)
| where ActionType == "Account disabled"
| where Application == "Active Directory"
| extend ACTOR_DEVICE = tolower(tostring(AdditionalFields.["ACTOR.DEVICE"]))
| where isnotempty( ACTOR_DEVICE)
| where ACTOR_DEVICE in (AllDomainControllers)
| project TimeGenerated, TargetAccountUpn, ACTOR_DEVICE

Manual Exclusions:

Summary:

This update strengthens Defender XDR’s ability to:

Proper deployment, correct licensing, and full automation policies are key to making the most out of this capability.

Full documentation and setup instructions:

https://techcommunity.microsoft.com/blog/MicrosoftThreatProtectionBlog/automatic-attack-disruption-enhanced-containment-for-critical-assets-and-shadow-/4402157

https://learn.microsoft.com/en-gb/defender-xdr/automatic-attack-disruption-exclusions

Want to know where your tenant stands? Griffin31 checks your Microsoft 365 security settings continuously and shows you what to fix first.