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.

Talked to another impacted victim org in the Microsoft 365 hack, they basically got no actionable info from MS. Basically ‘lol you got hacked’ with wordsmithing and padding. 👀😬

I think I’m going to post hunting queries for this with an MS Paint logo.

🎶 regulation 🎶

I agree with CISA here (and have publicly for years) - security access logs for customers own services shouldn't be locked behind E5 per user licensing.

Yes, it will cost Microsoft money in upsell. They're more profitable than a large portion of the UK economy; they can afford it.

I should also point out the reason Microsoft was able to tell orgs specifically that they'd be targeted even when they didn't have E5 is MS already store the logs anyway.

https://archive.ph/MFnxP

On how the USG, European govs and Microsoft have been threat hunting the MS 365 breach, per Microsoft documentation on the logs... "If a mailbox is throttled, you can probably assume there was MailItemsAccessed activity that wasn't recorded in the audit logs."
Really good new MS blog on the MS compromise - contains IOCs etc. I'll put MSPaint.exe down. https://www.microsoft.com/en-us/security/blog/2023/07/14/analysis-of-storm-0558-techniques-for-unauthorized-email-access/
Analysis of Storm-0558 techniques for unauthorized email access | Microsoft Security Blog

Analysis of the techniques used by the threat actor tracked as Storm-0558 for obtaining unauthorized access to email data, tools, and unique infrastructure characteristics. 

Microsoft Security Blog

“We don’t have any evidence that the actor exploited a 0day." say Microsoft. Their first blog on this says “exploit” - so are MS saying they don’t patch vulnerabilities in their cloud? 🤔

Their latest blog also says “This was made possible by a validation error in Microsoft code” - which is a vulnerability. Which is a 0day as it was under exploitation before Microsoft knew of it existing.

Microsoft lying to media and customers is not a good look.

https://arstechnica.com/security/2023/07/microsoft-takes-pains-to-obscure-role-in-0-days-that-caused-email-breach/

Microsoft takes pains to obscure role in 0-days that caused email breach

Critics also decry Microsoft's "pay-to-play" monitoring that detected intrusions.

Ars Technica

All it took was Exchange Online in GCC and GCC High getting breached

Non-E5 users to get some security log availability finally.

https://www.wsj.com/articles/microsoft-to-offer-some-cybersecurity-tools-free-after-suspected-china-hack-6db94221

WSJ News Exclusive | Microsoft to Offer Some Cybersecurity Tools Free After Suspected China Hack

Company says it will make security logs available to customers with lower-cost cloud services

WSJ

More details about the Microsoft 365 Exchange Online breach in this article.

Although not stated, orgs are struggling to understand the scope of the breach due to audit log limits on MailItemsAccessed - it stops recording after 1k items. https://www.wsj.com/articles/u-s-ambassador-to-china-hacked-in-china-linked-spying-operation-f03de3e4

U.S. Ambassador to China Hacked in China-Linked Spying Operation

Spying campaign also compromised State Department official who oversees East Asia

The Wall Street Journal

Just to loop this thread into this thread - I took a look at the attack path used in the M365 customer data breach.

A key part of the attack chain was documented by Microsoft at BlackHat in 2019.

https://cyberplace.social/@GossiTheDog/110736594147931759

Kevin Beaumont (@[email protected])

Attached: 2 images Been looking at Microsoft 365 email breach some more - it looks like Microsoft were aware of issues in same token validation space in Exchange Online 4 years ago. MS did a talk at BlackHat about it, after somebody external pointed out an invalid token allowed any email box to be accessed via consumer Outlook.com. They fixed that issue - but still allowed any valid MS token to access any email, so the threat actor stole one of the MSA certs. Talk: https://www.youtube.com/watch?v=KN6e1mqcB9s

Cyberplace

Wiz have an in-depth look at what they think happened at Microsoft over the Microsoft 365 breach.

They nail a new detail - one of the 'acquired' signing keys expired in 2021, but apparently it was still valid in Microsoft's cloud services. https://www.wiz.io/blog/storm-0558-compromised-microsoft-key-enables-authentication-of-countless-micr

Compromised Microsoft Key: More Impactful Than We Thought | Wiz Blog

Our investigation of the security incident disclosed by Microsoft and CISA and attributed to Chinese threat actor Storm-0558, found that this incident seems to have a broader scope than originally assumed. Organizations using Microsoft and Azure services should take steps to assess potential impact.

wiz.io

YOU MUST ONLY READ THE OFFICIAL BLOGS

there is no breach
there is no vulnerability
there are no zero days
*jedi wave*

https://therecord.media/microsoft-disputes-report-on-chinese-hacking

Microsoft disputes report that Chinese hackers could have accessed suite of programs

Microsoft is disputing a new report that claims hackers may have had access to more parts of victims’ systems than previously known in a campaign that targeted dozens of organizations, including government agencies.

The Microsoft write up on how Microsoft 365 got owned to steal customer emails is out. It’s really good and honest from a technical level I think, if you’ve been following the details closely. Top points to the US Gov for forcing public disclosure originally btw.

https://msrc.microsoft.com/blog/2023/09/results-of-major-technical-investigations-for-storm-0558-key-acquisition/

Results of Major Technical Investigations for Storm-0558 Key Acquisition | MSRC Blog | Microsoft Security Response Center

Results of Major Technical Investigations for Storm-0558 Key Acquisition

One big thing missing from Microsoft’s blog (that was in the Wiz blog, and is accurate) - the MSA key expired in 2021. They weren’t checking the validity dates, either - customers might want to ask them if they fixed this.
One extra thing to highlight - Microsoft’s blog doesn’t mention it, but they demo’d the technique of using a signing key to access email from a different account using M365 on stage at BlackHat 3 years ago and made various recommendations to stop it happening again... which weren’t implemented. https://www.youtube.com/watch?v=KN6e1mqcB9s
Preventing Authentication Bypass: A Tale of Two Researchers

YouTube

There’s a pretty good look at unanswered questions the MSRC blog on the Microsoft 365 customer data breach in this: https://arstechnica.com/security/2023/09/hack-of-a-microsoft-corporate-account-led-to-azure-breach-by-chinese-hackers/

Unsurprisingly MS aren’t using words like ‘breach’, ‘vulnerability’ etc when clearly it was both. It’s almost like there’s misaligned incentives.

Other obvious issues include a compromise in 2021 where the threat actor took process dumps etc but nobody checked what they were doing (you live and learn etc), no HSMs etc. Assume MS are compromised.

Microsoft finally explains cause of Azure breach: An engineer’s account was hacked

Other failures along the way included a signing key improperly appearing in a crash dump.

Ars Technica

This TechCrunch piece has one extra detail not in the MSFT blog on the Microsoft 365 data breach - access was gained via session token theft.

To expand, Microsoft use Azure AD MFA, which has a problem with session token theft. https://techcrunch.com/2023/09/08/microsoft-hacker-china-government-storm-0558/

TechCrunch is part of the Yahoo family of brands

US State Department have gone on the record about how they found the Microsoft 365 data breach.

They set up a detection rule called Big Yellow Taxi two years ago to look for unknown AppIDs in OfficeActivity, which ultimately saved Microsoft’s ass.

https://www.politico.com/news/2023/09/15/digital-tripwire-helped-state-uncover-chinese-hack-00115973

How the State Dept discovered that Chinese hackers were reading its emails

The State Department relied on a clever alert system to uncover and unravel an advanced Chinese spying campaign that involved breaches of officials’ emails.

POLITICO
60k emails of the US State Department were stolen from Microsoft 365 in this security breach. https://www.reuters.com/world/us/chinese-hackers-stole-60000-emails-us-state-department-microsoft-hack-senate-2023-09-27/
Chinese hackers stole emails from US State Dept in Microsoft breach, Senate staffer says

Chinese hackers who breached Microsoft's <a href="https://www.reuters.com/markets/companies/MSFT.O" target="_blank">(MSFT.O)</a> email platform this year managed to steal tens of thousands of emails from U.S. State Department accounts, a Senate staffer told Reuters on Wednesday.

Reuters

Microsoft have announced they are going to start using Azure HSM for their own services finally, after being cyber bullied by GossiTheDog. https://www.microsoft.com/en-us/security/blog/2023/11/02/announcing-microsoft-secure-future-initiative-to-advance-security-engineering/

(It’s actually a really good blog with a bunch of good ideas, if you ignore the AI stuff).

Announcing Microsoft Secure Future Initiative to advance security engineering | Microsoft Security Blog

Read more about the objectives and strategy behind the new Microsoft Secure Future Initiative.

Microsoft Security Blog

Absolutely blistering independent review into Microsoft 365 breach early last year is due this week from Cyber Safety Review Board, highlights huge problems with Microsoft’s security.

I did not participate.

Contains something I didn’t know - last month, Microsoft quietly corrected a blog to say they never found the crash dump with the certificate, so do not know how China got it. They did not store it in a HSM.

References earlier breach they hadn’t disclosed.

https://wapo.st/4cJpKtW

Microsoft faulted for ‘cascade’ of failures in Chinese hack

The independent Cyber Safety Review Board’s forthcoming report knocks the tech giant for shoddy cybersecurity, lax corporate culture and a deliberate lack of transparency.

The Washington Post

Report into MS breach is out: https://www.cisa.gov/sites/default/files/2024-04/CSRB_Review_of_the_Summer_2023_MEO_Intrusion_Final_508c.pdf

I had a tweet in 2021 saying MSTIC should not use the Nation State Notification process to hide breaches from the public.

That was a reference to the Affirmed Networks breach - aka Azure for Operators - listed in this report. They hid it.

The website for Azure for Operators at the time had Satya’s face on it.. that breach, which they refused to share details about, apparently led to this one.

I’ll save full thoughts for later as I need to digest the report, but I will say to Microsoft’s credit, I’ve heard they got the memo on security and plan a range of things including org and governance changes.

IMHO MS need a properly centralised security op model, like you see at.. well.. every other org. And then robust control implementation, lead by risk, blanketed everywhere.

Security should be treated like safety - if you endanger customers, you on the naughty step.

@GossiTheDog I thought that when Charlie Bell went to Microsoft he was going to try to fix their security architecture amongst other things… EVP Security? He ran a tight ship at AWS. Wonder what happened? https://www.linkedin.com/in/charlie--bell
Charlie Bell - Microsoft | LinkedIn

I lead the Security, Compliance, Identity, and Management organization at Microsoft… · Experience: Microsoft · Location: Seattle · 15 connections on LinkedIn. View Charlie Bell’s profile on LinkedIn, a professional community of 1 billion members.

@adrianco @GossiTheDog to poorly mix analogies, one does not simply turn a $3T cargo ship on a dime. We *do* have incredibly strong security programs throughout the company, but clearly there are gaps that Kev is rightfully skewering us on. The trick is not to fill in those gaps bit by bit, but to build out the program so future gaps fill themselves. Takes time. Lots of it isn't publicly visible.
@SteveSyfuhs @GossiTheDog Clearly that approach hasn’t worked. Need to put some band aids on the open wounds so you don’t bleed to death before you extricate yourself from the war zone.
@adrianco @GossiTheDog I mean we can do multiple things in parallel. The point I was making was that irrespective of things going on right now, there are longer term strategies also brewing. As for the current situation, the messes are getting cleaned up, albeit maybe not at a pace some people expect. Nobody isn't taking this seriously. A year ago we were in a better place than 2 years ago. Today we're in a better place than a year ago.
@SteveSyfuhs @GossiTheDog Good to hear that, but I’m surprised Microsoft is so far behind.
@adrianco @GossiTheDog there's some cherrypicking in that. Applying a broad brush to say all things in the company everywhere are so far behind is unfair. I would say it absolutely applies to some things in the company, but speaking in broad terms doesn't capture the reality well enough.
@adrianco @GossiTheDog also to be clear I'm not trying to defend what happened. I think a lot of failures have happened to get to where we are now and that deserves a lot of scrutiny. I just don't want to see the security folks that have been working their butts off get thrown under the bus because of poor decisions by other people.
@SteveSyfuhs @GossiTheDog Agreed. I’m sure there are a bunch of good people working on this, and I hope things get fixed quicker, but competitor sales teams will pounce on the weakness. We’ll find out over the next year or so how much business impact this has.
@adrianco @GossiTheDog I have no doubt attempts will be made and some will be successful. Unclear how strategic such tactics will be though. There's only a handful that could make a claim of being more secure earnestly, and that runs the risk of flying too close to the sun. Agreed that we can and should do better on a faster time line though.