@Dhruthi R Welcome to Microsoft Q&A Forum, Thank you for posting your query here!
Currently Azure Defender for Storage offers the ability to detect malware upon uploading files to a storage account using hash reputation analysis leveraging the power of Microsoft Threat Intelligence, which includes hashes for Viruses, Trojans, Spyware and Ransomware
Our current offering doesn’t scan the uploaded files, rather they examine the storage logs and compare the hashes of newly uploaded files with those of known viruses, trojans, spyware, and ransomware. When a file is suspected to contain malware, Security Center displays an alert and can optionally email the storage owner for approval to delete the suspicious file.
We are evaluating to offer an extended malware protection that will offer the ability to scan files upon upload leveraging the power of Microsoft AV and Microsoft sandboxing technologies, however we still don't have a concrete timeline to share
Please let us know if you have any further queries. I’m happy to assist you further.
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