Unveiling the OneDrive.exe Exploit: How Hackers Use DLL Sideloading to Execute Malicious Code (2025)

Imagine your trusted OneDrive application, a tool you rely on daily, secretly turned into a gateway for hackers. That's exactly what's happening with a new, sophisticated attack technique exploiting Microsoft’s OneDrive through DLL sideloading. But here's where it gets controversial: while this method isn't entirely new, its application to OneDrive and the level of stealth involved are raising serious concerns among cybersecurity experts. Let’s break it down in a way that’s easy to understand, even if you’re not a tech guru.

At its core, DLL sideloading is a sneaky way for attackers to trick legitimate applications into loading malicious code instead of the authentic libraries they’re supposed to use. In this case, hackers are targeting OneDrive.exe by placing a weaponized version.dll file in the same directory as the application. Why version.dll? Because many Windows applications, including OneDrive, rely on this library to fetch file version information. And this is the part most people miss: by strategically placing the malicious DLL, attackers can execute their code under the trusted umbrella of a digitally signed Microsoft application, effectively bypassing security controls.

Here’s how it works: When OneDrive.exe launches, it automatically loads the malicious DLL from its local directory before searching system directories. This dependency search order is what attackers exploit. To avoid detection and prevent application crashes, they use DLL proxying techniques. The malicious version.dll mimics the legitimate library, forwarding genuine function calls to the original Windows System32 version.dll while secretly executing malicious operations in the background. This dual functionality ensures OneDrive continues to run smoothly, making it nearly impossible for users or security software to notice anything amiss.

But it gets even more intricate. The attack employs an advanced hooking technique using Vectored Exception Handling and the PAGE_GUARD memory protection flag. Instead of traditional inline hooking methods that are easily detected, this approach triggers memory exceptions to intercept API calls. For instance, when OneDrive.exe tries to call functions like CreateWindowExW, the malicious code captures the execution flow through exception handlers and redirects it to attacker-controlled functions. This method is particularly effective because it avoids persistent code modifications that signature-based detection systems typically flag.

Once the malicious DLL is loaded, it spawns a separate thread to execute arbitrary payloads without disrupting the application’s initialization process. A proof-of-concept demonstrates how this can launch additional processes while hiding their windows, enabling covert operations on compromised systems. Here’s the burning question: With such sophisticated techniques in play, how can we truly secure our systems?

To defend against these attacks, security professionals must take proactive measures. Application whitelisting, monitoring DLL loading behaviors, and validating digital signatures of loaded libraries are critical steps. But is that enough? As attackers continue to innovate, the cybersecurity community must stay one step ahead. What do you think? Are current defenses sufficient, or do we need a paradigm shift in how we approach application security? Let’s discuss in the comments below.

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Unveiling the OneDrive.exe Exploit: How Hackers Use DLL Sideloading to Execute Malicious Code (2025)
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