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NT LAN Manager (NTLM) Remediation
Published on March 23, 2016
NT LAN MANAGER - NTLM

NT LAN MANAGER (NTLM)

Windows NT LAN Manager (NTLM) is a Microsoft challenge-response authentication protocol.  This is used to authenticate a client to a particular resource on an Active Directory domain or on home networks. Here are some basics how to increase (maximize) NTLM security levels.

Raising NTLM security levels can be a complicated subject.  Here are some handy visual representation that clearly explains the difference between the six security levels of NT LAN manager (NTLM) authentication.

Authentication

This method of authentication is fairly old.  It was last refreshed in 1999 (release of Windows 2000). NTLM however unwittingly remains a widely utilized in the Microsoft (Windows) world.  Network captures or system logs can readily demonstrate its use. 

With the advent of Microsoft Active Directory Domain Services (AD DS) in 2000 and their version (use) of MIT Kerberos, the necessity and use of LAN Manager authentication began to reduce. This however did not phase it out of existence – yet.

Because NTLM makes use of encrypting passwords, versus the use of tokens, it’s continued use remains security vulnerability susceptible to man-in-the-middle attacks.. 

Take a moment to also read Microsoft’s Article depicting these levels.

NT Lan Manager (NTLM) Remediation

NT LAN Manager is set using a single registry key – LmCompatibilityLevel (see visuals below). This can be defined via a policy (GPO) or directly to the registry.  Changes to this setting become effective without the need for a reboot.

    • GPO Location: Computer Configuration\Windows Settings\Security Settings\Local Policies\Security Options
    • Registry Location: HKLM\System\CurrentControlSet\Control\Lsa\LmCompatibilityLevel

This registry key determines which challenge or response authentication protocol is used for network logons. LAN Manager (LM) includes client computer and server software. This allows users to connect computers together on a single network. Network capabilities include transparent file and print sharing, user security features, and network administration tools. In Active Directory domains, the Kerberos protocol is the default authentication protocol. However, if the Kerberos protocol is not negotiated for some reason, Active Directory uses LM, NTLM, or NTLM version 2 (NTLMv2).

Target: Client Settings Only

Client’ services initiate connections to servers
(refers to the source where network traffic is initiated or generated)

LMCompatibilityLevel = 0

NTLM - LMC0

Send LM & NTLM responses

Client devices use LM and NTLM authentication, and they never use NTLMv2 session security. Domain controllers accept LM, NTLM, and NTLMv2 authentication.

LMCompatibilityLevel = 2

NTLM - LMC2

Send NTLM response only

Client devices use NTLMv1 authentication, and they use NTLMv2 session security if the server supports it. Domain controllers accept LM, NTLM, and NTLMv2 authentication.

LMCompatibilityLevel = 1

NTLM - LMC1

Send LM & NTLM – use NTLMv2 session security if negotiated

Client devices use LM and NTLM authentication, and they use NTLMv2 session security if the server supports it. Domain controllers accept LM, NTLM, and NTLMv2 authentication.

LMCompatibilityLevel = 3

NTLM - LMC3

Send NTLMv2 response only

Client devices use NTLMv2 authentication, and they use NTLMv2 session security if the server supports it. Domain controllers accept LM, NTLM, and NTLMv2 authentication.

Target: Server Settings Only

Server’ listening services receive client connections or requests
(refers to the receipt point or respondent of communication initiated by a client)

LMCompatibilityLevel = 4

NTLM - LMC4

Send NTLMv2 response only. Refuse LM

Client devices use NTLMv2 authentication, and they use NTLMv2 session security if the server supports it. Domain controllers refuse to accept LM authentication, and they will accept only NTLM and NTLMv2 authentication.

LMCompatibilityLevel = 5

NTLM - LMC5

Send NTLMv2 response only. Refuse LM & NTLM

Client devices use NTLMv2 authentication, and they use NTLMv2 session security if the server supports it. Domain controllers refuse to accept LM and NTLM authentication, and they will accept only NTLMv2 authentication.

Authentication

LAN Manager authentication includes the LM, NTLM, and NTLMv2 variants, and it is the protocol that is used to authenticate all client devices running the Windows operating system when they perform the following operations:

    • Join a domain
    • Authenticate between Active Directory forests
    • Authenticate to domains based on earlier versions of the Windows operating system
    • Authenticate to computers that do not run Windows operating systems, beginning with Windows 2000
    • Authenticate to computers that are not in the domain

Remediation Phases:

Level-set (or augment) LMCompatibilityLevel to the following.  This includes all servers, workstations and Domain Controllers.  Prior to transitioning to LMC 5, allow for sufficient soak time for testing and verification.

    1. Augment LMCompatibilityLevel (LMC) to a value of 3
    2. Augment LMCompatibilityLevel (LMC) to a value of 5
I hope this provides a bit more light on these particular setting.

Warmest Regards,

SHAWN MAY – DTS Inc. | Principal Architect & CEO | shawn@yourDTS.com

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