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What is Network security: Restrict NTLM: Outgoing NTLM traffic to remote servers setting?

'Network security: Restrict NTLM: Outgoing NTLM traffic to remote servers' is a security policy setting that can block as well as audit outgoing NTLM traffic from client devices to remote servers. NTLM is an older Windows authentication software that has been known to be vulnerable to man-in-the-middle (MITM) attacks, brute force attacks, SMB relay, and so on. Therefore auditing the outgoing NTLM traffic to the remote servers can help a network administrator find the servers that receive NTLM authentication requests and decide whether the traffic needs to be blocked.

There are multiple ways to enable this policy setting:

  • Deny All: Choosing this option leads to all outgoing NTLM traffic being blocked. The client devices will not be able to perform NTLM authentication with the remote servers. The blocked authentication requests will also be logged on the system.
  • Allow all: If this option is enabled, there is no restriction placed on the client devices from performing NTLM authentication with a remote server.
  • Audit all: If this option is enabled, the systems keeps logs on the NTLM authentication requests sent to remote servers. These logs are stored in the 'Operational' log located under Applications and Services Log\Microsoft\Windows\NTLM.

Choosing the option 'Not Defined', means that there is no restriction on the outgoing NTLM traffic to remote servers.

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