ConnectWise disabled seven application identities and suspended its Cloud Backup and Cloud Management services after unknown threat actors compromised the application credentials and used them to gain unauthorized access to Microsoft 365 customer tenants. The attack is particularly dangerous because the stolen application credentials allowed attackers to authenticate as ConnectWise's own applications and request access tokens from Microsoft Entra ID, potentially enabling access to mailboxes, SharePoint, Teams, and directory data — and even establish persistence by adding new credentials or applications within compromised tenants. Security firm Huntress has confirmed malicious activity across nearly 1,000 Entra tenants, with successful sign-ins in approximately 300, and identified a second targeted wave of attempts focused on 16 tenants in sensitive sectors including national security and critical minerals.
