MediumII Cyber Warfare & Critical Infrastructure17 October 2026, Saturday
A stolen ConnectWise backup credential opens 173 Microsoft 365 tenants
Using a stolen credential belonging to the ConnectWise Cloud Backup application, an attacker signed in to customer environments over 2 hours and 21 minutes on 15 October. By 17 October Huntress had confirmed unauthorised access in 173 tenants, and ConnectWise shut the application down.
According to The Hacker News on 17 October, the attacker obtained the credential of an application, formerly known as SkyKick, that managed service providers use to back up Microsoft 365 data for their clients. A tenant is an organisation's separate environment within Microsoft 365. Huntress observed Microsoft Graph access tokens being issued to the address 144.172.64.128 between 06:13 and 08:34 UTC on 15 October. The attacker worked through tenants in order of their ID numbers, a few seconds apart, which points to a script running from a ready-made target list.
Because the credential belonged to an application rather than a user, the attacker inherited every permission customers had previously granted to it. Multi-factor authentication never came into play. Microsoft described the incident as an active supply chain attack and said directory write permissions such as Directory.ReadWrite.All may have been abused. In at least one partner tenant, a second ConnectWise application added itself to the Global Administrator role. A Python script then wrote new secrets to two other trusted applications.
According to Todyl, disabling the application stops new tokens from being issued, but tokens already granted remain valid for up to 90 minutes. ConnectWise has suspended application access until further notice and says it has found no evidence that partners' backup data was compromised. How the credential was stolen has not been disclosed. SpecterOps' note of 17 October cites a Huntress count of 162 tenants; the figure rose to 173 during the day.
Talay assessment
Bottom line
With a single application identity, the attacker reached the email, files and directories of hundreds of organisations at once, and multi-factor authentication never saw it. The real risk is not the backup data but the privilege escalation and new secrets written in at least one tenant, which could leave a persistent backdoor even after the application is shut. The likeliest path is for the tenant count to climb for a few more days and for the incident to trigger a wave of audits of third-party application permissions.
Likely effects
- Managed service providersNegativeWeeks
While the application stays offline, clients' Microsoft 365 backups are halted; providers must handle the outage and audit secrets added after 13 October at the same time.
- Cloud application permissionsNegative1–6 months
Broad permissions granted to applications rather than users have been exposed as an entry route that bypasses multi-factor authentication; organisations will need to inventory them.
- Microsoft 365 users in TürkiyeUncertainWeeks
Turkish organisations using cloud backup through a managed service provider carry the same permission model; no list of affected countries has been released.
Possibilities, ranked
- 1Count grows, focus shifts to permission audits55%
The number of affected tenants rises, ConnectWise rotates its credentials and providers tighten third-party application permissions.
Watch: Updated tenant counts from Huntress and ConnectWise, and a credential rotation notice
- 2Backdoor cases multiply30%
More tenants turn up with newly written secrets; access persists despite the shutdown and data leak disclosures follow.
Watch: A new Microsoft warning on secrets added to service principals
- 3Incident stays contained15%
It is confirmed that the attacker was stopped before exfiltrating data, and tenants quickly resume backups.
Watch: A final ConnectWise investigation report showing no data was exfiltrated
Probabilities are calibrated judgement based on the sources, not measurement, and are revised as new information arrives. Not investment advice.
Market reaction
Indicators affected
- Confirmed tenants▼ 173
- Unauthorised access window▼ 2 h 21 min