Attackers use compromised ConnectWise credentials in Microsoft 365 attacks

19 Oct 2026

Security researchers at Huntress found that attackers have gained access to a credential used by ConnectWise Cloud Backup, a service that is used to back up customers’ Microsoft 365 data.

 

They have confirmed that it is being used to gain unauthorized access to customers’ Microsoft 365 environments belonging to 173 partner and customer organizations. They also found that attackers tried to gain administrator privileges and added new credentials to maintain access.

 

Through the blog, we will understand what the threat is about, its impact on organizations, and what they can do to defend against it.

About the threat

Threat name and Severity 

Targeted technology 

Threat type 

Affected/targeted products 

Observed scale of campaign 

ConnectWise Cloud Backup Credential Compromise and High risk 

 

  • ConnectWise Cloud Backup 
  • Microsoft 365 
  • Microsoft Entra ID  
  • Microsoft Graph API 
  • Supply Chain Attack 
  • Credential Compromise 
  • Unauthorized Cloud Access 
  • Privilege Escalation and Persistence. 

 

  • ConnectWise Cloud Backup 
  • Microsoft 365 
  • Microsoft Entra ID enterprise applications and service principals 
  • Microsoft Graph API 
  • Exchange Online, SharePoint, OneDrive and Microsoft Teams 
  • Related ConnectWise Cloud Management application 

 

  • 173 partner/customer tenants had confirmed unauthorized sign-ins. 
  • Microsoft Graph access tokens were obtained using the compromised credential. 
  • Suspicious Global Administrator assignments and client secret additions were identified. 

How does the threat impact organizations?

A successful compromise may allow threat actors to:

  • Access Microsoft 365 mailboxes, emails, and attachments.
  • Access OneDrive, SharePoint, and Teams data, depending on permissions.
  • Enumerate users, groups, and directory information.
  • Escalate privileges through unauthorized directory role assignments.
  • Add application credentials to maintain persistent access.
  • Abuse trusted MSP integrations to access additional customer environments.
  • Expose sensitive organizational and customer data.

Official security guidance

Organizations should:

 

  • Identify ConnectWise Cloud Backup applications and related service principals.
  • Review Microsoft Graph permissions and OAuth consent grants.
  • Disable affected application identities in coordination with ConnectWise.
  • Remove unauthorized client secrets and certificates.
  • Investigate unexpected Global Administrator assignments.
  • Review Microsoft Entra ID service principal sign-in and audit logs.
  • Investigate Exchange, SharePoint, OneDrive, and Teams activity.
  • Revoke suspicious access and tokens using appropriate Microsoft procedures.
  • Preserve logs and follow official vendor remediation guidance.

SharkStriker’s recommendations

As an MSSP, SharkStriker recommends:

 

  • Identify affected applications: Inventory ConnectWise integrations across Microsoft 365 tenants.
  • Review permissions: Identify excessive application permissions and unauthorized consent grants.
  • Hunt for suspicious activity: Investigate unusual service principal sign-ins, source IPs, and Microsoft Graph access.
  • Check persistence: Review new client secrets, certificates, and privileged role assignments.
  • Investigate data access: Examine mailbox, file-sharing and Teams audit logs for suspicious activity.
  • Coordinate remediation: Work with ConnectWise and the relevant service provider before disabling business-critical integrations.     
  • Strengthen security: Apply least-privilege access and continuously monitor third-party application identities.

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