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AWS IAM Privilege Escalation Methods

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An attacker with the iam:CreatePolicyVersion permission can create a new version of an IAM policy that they have access to. This allows them to define their own custom permissions. When creating a new policy version, it needs to be set as the default version to take effect, which you would think would require the iam:SetDefaultPolicyVersion permission, but when creating a new policy version, it is possible to include a flag (--set-as-default) that will automatically create it as the new default version. That flag does not require the iam:SetDefaultPolicyVersion permission to use. This privilege escalation method could allow a user to gain full administrator access of the AWS account.

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