Now the report continues: "The actor created additional malicious OAuth applications"
Ok so to do this, the test app would need to have been granted the "Application.ReadWrite.All" MS Graph API permission in the prod tenant. And even worse... 😨
Report also says that "The threat actor then used the legacy test OAuth application to grant them the Office 365 Exchange Online full_access_as_app role, which allows access to mailboxes." 📬
Sketch of interpretation of Midnight Blizzard's attack flow based on @MsftSecIntel's blogpost (had to make a few assumptions, noted in grey). Big h/t to @cnotin and @EricaZelic for their analysis of this incident (links in thread) and to @LSecResearch for valuable input.