CVE-2025-38742 is a medium-severity vulnerability identified in the Dell iDRAC Service Module (iSM) prior to version 6.0.3.0. The vulnerability is classified under CWE-732, which corresponds to Incorrect Permission Assignment for a Critical Resource. This flaw allows a low-privileged attacker with local access to the affected system to potentially execute arbitrary code. The root cause lies in improper permission settings on critical resources within the iSM, which is a software component designed to facilitate management and monitoring of Dell servers via the integrated Dell Remote Access Controller (iDRAC). Because the vulnerability requires local access and low privileges, an attacker must already have some foothold on the system or physical/logical access to the host machine. Exploitation does not require user interaction, and the attacker can leverage the incorrect permissions to escalate privileges and execute code, potentially compromising confidentiality, integrity, and availability of the server management environment. The CVSS v3.1 base score is 5.3, reflecting a medium severity with low attack vector (local), low attack complexity, and low privileges required. No known exploits are currently reported in the wild, and no patches or mitigation links were provided at the time of publication. However, given the critical role of iDRAC in server management, exploitation could lead to significant control over server hardware and management functions.

For European organizations, the impact of this vulnerability could be significant, especially for enterprises and data centers relying on Dell servers managed via iDRAC. Successful exploitation could allow attackers to gain unauthorized control over server management interfaces, potentially leading to unauthorized changes in server configurations, installation of persistent malware, or disruption of critical services. This could compromise sensitive data confidentiality and integrity, and impact availability of critical infrastructure. Industries such as finance, healthcare, telecommunications, and government agencies in Europe that depend on Dell server infrastructure for critical workloads are at heightened risk. Additionally, the local access requirement means that insider threats or attackers who have already breached perimeter defenses could leverage this vulnerability to escalate privileges and deepen their foothold. Given the increasing reliance on remote management tools in hybrid and cloud data centers, the vulnerability could also facilitate lateral movement within networks if exploited.

European organizations should prioritize upgrading the Dell iDRAC Service Module to version 6.0.3.0 or later as soon as the patch becomes available. Until then, organizations should implement strict access controls to limit local access to servers running vulnerable iSM versions. This includes enforcing strong physical security, restricting administrative access to trusted personnel, and using network segmentation to isolate management interfaces. Monitoring and logging of local access attempts and unusual activities on servers with iDRAC should be enhanced to detect potential exploitation attempts. Additionally, organizations should review and harden permission settings on critical resources related to iSM where possible, and consider disabling or restricting iSM functionality if not required. Regular vulnerability scanning and compliance checks should include verification of iSM versions and configurations. Finally, organizations should prepare incident response plans specific to potential iDRAC compromises to quickly contain and remediate any exploitation.