Cloud forensics: Prepare for the worst -implement security baselines for forensic readiness in Azure

Forensic readiness in the cloud

Forensic readiness in the cloud refers to an organization’s ability to collect, preserve, and analyze digital evidence in preparation for security incidents.

Forensic readiness is increasingly important as more organizations migrate workloads to the cloud. Achieving an appropriate security posture ensures that organizations are adequately equipped for forensic investigations. This requires more than just the presence of logs; logging and monitoring configurations must be thoughtfully scoped and proactively enabled.

Additionally, the adoption of cloud environments presents unique challenges for forensic investigations. First, capturing the right evidence can be difficult due to the dynamic nature of cloud data. Second, in a shared responsibility model, organizations must work closely with their cloud providers to ensure preparedness for forensic investigations. Azure’s multi-tenant architecture adds another layer of complexity, as data from multiple customers may reside on the same physical hardware. Therefore, strict access controls and robust logging are essential. To maintain forensic readiness, organizations must implement comprehensive monitoring and logging across all cloud services to ensure evidence is available when needed.

Preparing your Azure environment for forensic readiness

When the Azure environment is set up correctly and configured with accurate logging in place, it becomes easier to quickly identify the scope of a security breach, trace the attacker’s actions, and identify the Tactics, Techniques, and Procedures (TTP) employed by a threat actor. Through the implementation of these measures, organizations can ensure that data required to support forensic investigations is available, hence ensuring compliance with auditing requirements, improving security, and ensuring security incidents are resolved efficiently. With that granularity of log data in the environment, organizations are more well-equipped to respond to an incident if it occurs.

Case study: Forensic investigation disrupted due to lack of forensic readiness in Azure

In a recent cybersecurity incident, a large company utilizing Azure experienced a major setback in its forensic investigation. This case study outlines the critical steps and logs that were missed, leading to a disrupted investigation.

Step 1: Initial detection of the compromise

The organization’s Security Operations Centre (SOC), identified anomalous outbound traffic originating from a compromised Azure virtual machine (VM) named “THA-VM.” Unfortunately, the absence of diagnostic settings significantly hindered the investigation. Without access to Guest OS logs and data plane logs, the team was unable to gain deeper visibility into the threat actor’s activities.

The lack of critical telemetry—such as Windows Event Logs, Syslog, Network Security Group (NSG) flow logs, and resource-specific data plane access logs—posed a major challenge in assessing the full scope of the compromise. Had these diagnostic settings been properly configured, the investigation team would have been better equipped to uncover key indicators of compromise, including local account creation, process execution, command-and-control (C2) communications, and potential lateral movement.

Figure 1: Diagnostic settings not configured on the virtual machine resource

Step 2: Evidence collection challenges

During the forensic analysis of the compromised virtual machine, the team attempted to capture a snapshot of the OS disk but discovered that restore points had not been configured and no backups were available—severely limiting their ability to preserve and examine critical disk-based artefacts such as malicious binaries, tampered system files, or unauthorized persistence mechanisms. Restore points, which are not enabled by default in Azure virtual machines, allow for the creation of application-consistent or crash-consistent snapshots of all managed disks, including the OS disk. These snapshots are stored in a restore point collection and serve as a vital tool in forensic investigations, enabling analysts to preserve the exact state of a VM at a specific point in time and maintain evidence integrity throughout the investigation process.

Step 3: Analysis of the storage blob

The team then turned to storage blobs after identifying unusual files that appeared to be associated with threat actor tool staging such as scanning utilities and credential dumping tools. However, because diagnostic settings for the storage account had not been enabled, the investigators were unable to access essential data plane logs. These logs could have revealed who uploaded or accessed the blobs and when those actions occurred. Since storage diagnostics are not enabled by default in Azure, this oversight significantly limited visibility into attacker behavior and impeded efforts to reconstruct the timeline and scope of malicious activity—an essential component of any effective forensic investigation.

Step 4: Slow response and escalation

In the absence of tailored logging and monitoring configurations, response timelines were delayed, and the full incident response process that was required was not initiated quickly enough to minimize the impact.

Step 5: Recovery and lessons learned

Despite the delays, the team pieced together elements of the story based on the data they had available, without determining the initial access vector largely because the necessary diagnostic data wasn't available. This absence of forensic readiness highlights the importance of configuring diagnostic settings, enabling snapshots, and using centralized logging solutions like Microsoft Sentinel, which will bring all this telemetry into a single pane of glass, providing real-time visibility and historical context in one place. This unified view enables faster incident detection, investigation, and response. Its built-in analytics and AI capabilities help surface anomalies that might otherwise go unnoticed, while retaining a searchable history of events for post-incident forensics.

Recommended practices for forensic readiness in Azure

The table below outlines key recommendations for deploying and administering workloads securely and effectively in Azure. Each recommendation is categorized by focus area and includes a best practice description, specific action to take, and a reference to supporting documentation or resources to assist with implementation.

By using Microsoft’s tools and implementing these recommended best practices, organizations can improve their forensic readiness and investigation capabilities in Azure. This approach not only helps in responding effectively to incidents but also enhances an organization’s overall security posture. By staying ahead of potential threats and maintaining forensic readiness, you’ll be better equipped to protect your organization and meet regulatory requirements.

Conclusion

Forensic readiness in Azure is not a one-time effort, it is an ongoing commitment that involves proactive planning, precise configuration, and strong coordination across security, operations, and governance teams. Key practices such as enabling diagnostic logging, centralizing telemetry, enforcing least-privilege access, and developing cloud-tailored incident response playbooks are essential. Together, these measures improve your ability to detect, investigate, and respond to security incidents in a timely and effective manner.