Elastic Security Labs identified multiple ways attackers can bypass or erode the reputation-based protections in Windows Smart App Control (SAC) and Microsoft Defender SmartScreen. The methods include using fraudulently obtained code-signing certificates, hijacking trusted application reputation, seeding files to build favorable reputation, and modifying binaries without apparently losing SAC reputation. Researchers also reported an LNK stomping flaw in which a specially structured shortcut causes explorer.exe to rewrite the file and remove its Mark of the Web before SmartScreen evaluates it; VirusTotal samples indicated the technique may already have been used in the wild.
SmartScreen evaluates the reputation of URLs, files, applications, and digital certificates, and uses blocklists and behavioral analysis to warn users about phishing, malware, unsafe downloads, deceptive advertising, and potentially unwanted applications. However, organizations should not treat those warnings as a standalone control: SmartScreen does not protect files originating from internal locations or network shares, and reputation can be abused. Defenders should monitor anomalous execution from download directories, abuse of script hosts, and explorer.exe overwriting .lnk files, while managing SmartScreen policies through Group Policy or Microsoft Intune.

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The researchers reported the LNK stomping issue to the Microsoft Security Response Center. They stated that Microsoft might address it in a future Windows update.
Specially crafted LNK files caused explorer.exe to rewrite shortcuts into canonical form and remove their Mark of the Web before SmartScreen checks. The researchers used the technique to launch PowerShell and execute Calculator under Smart App Control, and chained it with the cdb debugger to run shellcode.
Researchers demonstrated that code-signing abuse, reputation hijacking of trusted script hosts, reputation seeding, and binary modification could circumvent reputation-based protections. They also showed trusted Lua, Node.js, AutoHotkey, and JamPlus components being used to execute code without expected warnings.
Researchers identified multiple VirusTotal samples exhibiting the LNK overwrite behavior used to remove Mark of the Web metadata; the oldest identified sample had been submitted more than six years earlier.
Microsoft introduced Smart App Control as a cloud-reputation-based Windows 11 protection that blocks malicious or untrusted applications; when enabled, it replaces Defender SmartScreen.
Microsoft built Defender SmartScreen into Windows beginning with Windows 8, using reputation checks and Mark of the Web-triggered assessments for downloaded files.
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