China-aligned Hackers Use AI Agents to Breach ConnectWise Supply Chain
Attackers have targeted thousands of Microsoft tenants using automated tools to gain privileged access.
By Natalia Campos ·
Businesses relying on Microsoft 365 and ConnectWise services face a new security threat. A state-aligned hacking group has launched a large-scale attack using AI-driven tools to compromise systems. The incident has led to the suspension of several ConnectWise services, including Cloud Backup and SaaS Security, with restoration expected to take several days. Microsoft advises customers to disable affected app connections until formal restoration instructions are issued.
The attack, attributed to a group named Storm-0940, leveraged an open-source AI penetration testing framework called ARTEX. This tool allows autonomous agents to conduct penetration tests, automating tasks like scanning and password guessing without human interaction. The use of such automation enabled the attackers to rapidly target more than 2,250 Microsoft 365 tenants, attempting sign-ins using stolen application credentials. In some cases, attackers achieved privileged access in under three hours.
Microsoft's security blog detailed the campaign, which involved both automated password spraying and AI agent activity. A password spray campaign targeted accounts across eight organizations, generating over 151,000 failed logins without any successes. While nearly 98% of this activity was locked out, the AI agents used stolen credentials to sign into customer tenants from a shared IP range. Microsoft noted that the activity did not result from a compromise of its own systems or services.
Once inside a tenant, the attackers performed various actions, including reconnaissance, credential changes, and modifications to identities and roles. Security firm Huntress observed an application granting itself the Global Administrator role in one instance. The attackers also planted new secrets intended to last until 2028. By October 16, Huntress confirmed unauthorized sign-ins for 162 tenants, and the following day, nearly 1,000 tenants showed sign-in activity from the attacking IP.
The targeted industries include aerospace and defense, semiconductors, government, and think tanks. This campaign is part of a broader trend of threat actors using AI for malicious purposes. Public reporting has linked this same AI framework to breaches at South Korean financial institutions, with suspects potentially based in China. The developer of the ARTEX framework has since announced that the project will no longer be updated and will become closed source.
ConnectWise has confirmed the unauthorized access and suspended affected services as a precaution. The company has started a phased restoration process, which is expected to take several days. While no indicators suggest partner backup data was compromised, Microsoft states that a successful sign-in does not necessarily mean data was accessed or taken.
Source: Tom's Hardware
