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Ransomware Hackers Start Exploiting Microsoft Exchange Server Flaws

A ransomware strain dubbed DearCry has been spotted encrypting the email data on unpatched Exchange servers, and then demanding victims pay up.

 & Michael Kan Principal Reporter

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A ransomware attack is starting to exploit the recently-disclosed flaws in Microsoft Exchange Server. 

The ransomware strain, dubbed DearCry, has been spotted encrypting vulnerable Exchange servers in an effort to hold the data hostage. On Thursday, Microsoft said it was both detecting and blocking DearCry from hitting unpatched servers. 

The security researcher Michael Gillespie has also noticed the DearCry attacks. He runs a service, called ID Ransomware, where victims can submit ransomware samples to help them identify which strain they’ve been infected with. 

On Thursday, Gillespie tweeted ID Ransomware had received some submissions about DearCry ransomware hitting Exchange servers based in the US, Canada and Australia. 

A victim of the attacks has also posted their experience with the ransomware on a BleepingComputer.com forum. The hacker behind DearCry has been asking the victim to pay $16,000 in bitcoin in order to receive a key to free the encrypted data. 

“Luckily, this was just an email server, and I have a backup, but I may string him along just for the heck of it…” the victim wrote. 

Andrew Thompson, a manager at the security firm Mandiant, is pointing out the DearCry attacks can only encrypt the Exchange server itself — not the rest of a company’s corporate network. “I have not seen mentions of an adversary using the Exchange Server vulnerabilities to conduct a deeper intrusion for purposes of deploying ransomware widely through the environment—YET. That nuance matters when reporting,” he said in a tweet

Indeed, security researchers are warning it may only be a matter of time before more ransomware hackers decide to exploit the vulnerabilities. The flaws in Microsoft Exchange can enable an attacker to remotely take over a server, and loot the emails inside. That’s particularly problematic if the emails contain passwords for other IT systems, or hold confidential information, which a hacker could threaten to leak.  

The security firm ESET has noticed at least ten hacking groups have been exploiting the flaws to infiltrate thousands of servers across the globe. Both Microsoft and the US government are urging affected customers to install the patches as soon as possible, and to also check the servers for any signs of malware.

About Our Expert

Michael Kan

Michael Kan

Principal Reporter

My Experience

I've been a journalist for over 15 years. I got my start as a schools and cities reporter in Kansas City and joined PCMag in 2017, where I cover satellite internet services, cybersecurity, PC hardware, and more. I'm currently based in San Francisco, but previously spent over five years in China, covering the country's technology sector.

Since 2020, I've covered the launch and explosive growth of SpaceX's Starlink satellite internet service, writing 600+ stories on availability and feature launches, but also the regulatory battles over the expansion of satellite constellations, fights with rival providers like AST SpaceMobile and Amazon, and the effort to expand into satellite-based mobile service. I've combed through FCC filings for the latest news and driven to remote corners of California to test Starlink's cellular service.

I also cover cyber threats, from ransomware gangs to the emergence of AI-based malware. In 2024 and 2025, the FTC forced Avast to pay consumers $16.5 million for secretly harvesting and selling their personal information to third-party clients, as revealed in my joint investigation with Motherboard.

I also cover the PC graphics card market. Pandemic-era shortages led me to camp out in front of a Best Buy to get an RTX 3000. I'm now following how the AI-driven memory shortage is impacting the entire consumer electronics market. I'm always eager to learn more, so please jump in the comments with feedback and send me tips.

The Best Tech I've Had:

  • My first video game console: a Nintendo Famicom
  • I loved my Sega Saturn despite PlayStation's popularity.
  • The iPod Video I received as a gift in college
  • Xbox 360 FTW
  • The Galaxy Nexus was the first smartphone I was proud to own.
  • The PC desktop I built in 2013, which still works to this day.

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