Cybersecurity researchers have identified an active campaign where threat actors are exploiting a compromised Microsoft 365 (M365) credential belonging to ConnectWise Cloud Backup. This credential has been used to gain unauthorized access to customers' M365 environments.
ConnectWise Cloud Backup, a service for managed service providers (MSPs) to secure client data, requires broad access to mailboxes, OneDrive, SharePoint, Teams, and directory data in every tenant where it is installed. The compromised credential allows attackers to leverage these extensive permissions.
Huntress, a cybersecurity firm, confirmed unauthorized sign-ins within 173 partner/customer tenants using the compromised vendor credential. The credential is effective against every tenant where the application is consented.
Security researcher Jonathan Semon stated that the app's credential was used to obtain Microsoft Graph tokens in customer tenants from a specific IP address on October 15, between 06:13 and 08:34 UTC. The actor moved through tenants in sorted GUID order, suggesting an automated script.
Attackers are authenticating to the app using their own tools, similar to the backup service, to obtain tokens with the app's existing permissions. With these tokens, an attacker can read mailboxes, files, and directory data, mirroring the access capabilities of the backup service itself.
The same IP address was also involved in password spraying attempts against four law firm tenants on October 13 and 14, 2026, though no successful user sign-ins were detected in that specific activity.
In at least one partner tenant, Huntress discovered a separate ConnectWise app assigning itself Global Administrator privileges. This app then added credentials to other trusted applications within the environment, creating a pathway to other privileged applications within customer environments. This action extends the potential risk beyond the initial vendor account compromise.
Specifically, the ConnectWise Cloud Management app for Microsoft Teams (application ID 24205314-2b89-4e07-a2a4-579e898a5640) added itself to the Global Administrator role and subsequently modified two other applications in the tenant using a Python script.
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