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I have a lot of Windows VMs, viz XP, Server 2003, Vista and 7. All of them are in Network and connected to Internet. Will they be affected by WannaCry if not patched ?

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Yes, VMs can be affected as much as "normal" hosts can. It can also affact Linux when you run the code with wine. See also: https://askubuntu.com/questions/914623/what-is-the-wanna-cry-ransomwares-possible-impact-on-linux-users

Additional information: Some derivatives of the malware may detect that you are running these OS's in a virtual maschine and don't go off, but i would not consider this as a comfortable position.

anon
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