Microsoft quietly snuck out a blog yesterday to say that Office 365 got compromised by China and used to steal emails. Thread follows. https://msrc.microsoft.com/blog/2023/07/microsoft-mitigates-china-based-threat-actor-storm-0558-targeting-of-customer-email/
Microsoft mitigates China-based threat actor Storm-0558 targeting of customer email | MSRC Blog | Microsoft Security Response Center

Microsoft mitigates China-based threat actor Storm-0558 targeting of customer email

They used Outlook Web App - runs the Exchange Server codebase btw - to craft tokens to bypass auth.

There's some clever wording in blog around only impacting OWA. OWA is a part of Microsoft 365 and Exchange Online.

The problem was discovered by the US Government and reported to Microsoft. https://edition.cnn.com/2023/07/12/politics/china-based-hackers-us-government-email-intl-hnk/index.html

Microsoft have not linked the blog on @msftsecintel or @msftsecresponse Twitter accounts or social media, instead linking pieces yesterday about an unrelated phishing campaign.

This one looks like a huge mistake, a consumer MSA key (managed end to end by Microsoft - there's no external logs) was able to forge any Azure AD key.

It's only become public it appears as the US Government told Microsoft, which forces public disclosure.

Although MS haven't called this a vulnerability, haven't issued a CVE or used the term zero day.. they don't issue CVEs for cloud services, forging a token is a vulnerability, so it's a zero day.

CISA's advisory on the Microsoft 365 compromise is wayyyyyyyyyyy better than the Microsoft advisory - contains actionable hunting and logging information. Kinda nuts that the US Government are providing better information about Microsoft than Microsoft.

https://www.cisa.gov/sites/default/files/2023-07/aa23-193a_joint_csa_enhanced_monitoring_to_detect_apt_activity_targeting_outlook_online.pdf

Another element - to spot this activity, the US government used enhanced logging aka Purview Audit (Premium) logging - the US government had a huge public fight with Microsoft over this a few years ago over cost, to get access. Turns out they needed it indeed.
Does anybody have the AppID used in the Microsoft 365 compromise? -> [email protected]
WSJ reporting the Microsoft 365 hack was used to spy on the State Department. https://www.wsj.com/articles/chinese-hackers-spied-on-state-department-13a09f03
Chinese Hackers Breached Email of Commerce Secretary Gina Raimondo and State Department Officials

Hackers didn’t appear to gain access to national security information

WSJ
For anybody interested - the “acquired Microsoft account (MSA) consumer signing key” used in this must have come from inside Microsoft’s internal network.
The teams who worked on the Microsoft 365 breach of customer data are having a snow day still, I see.

Okay - I found a victim org.

The situation for them is 😬

MS are going to have to release more info, methinks.. or I crank out the blog writing.

Really good Washington Post piece on the breach of Microsoft 365’s email service.

- hackers accessed customer emails for a month
- Microsoft didn’t notice
- USG had to tell them
- The access to generate tokens very likely came from MS being hacked and not realising

https://archive.is/2023.07.12-230927/https://www.washingtonpost.com/national-security/2023/07/12/microsoft-hack-china/

None of these would have helped, since the breach was at Microsoft’s end.
@GossiTheDog
Wherein "robust security measures" means mark Microsoft as untrusted.