China-Aligned Hackers Deploy AI Agents in ConnectWise Attack
A China-state-aligned threat actor utilized an open-source agentic AI penetration testing framework to launch a sweeping supply chain attack via ConnectWise.
Radwan AbdulhadiEditor and technology writer
AI-Powered Penetration Testing Framework Deployed
A China-state-aligned threat actor known as Storm-0940 has been identified by Microsoft as using ARTEX, an open-source agentic AI penetration testing framework, during a massive supply chain assault. Detailed findings published by the company on its Security blog outline how the actor leveraged LLM-driven agents to conduct autonomous reconnaissance, accelerate scanning, manage password spraying, and execute OAuth application abuse.
According to telemetry, the autonomous agents are capable of operating around the clock with minimal human intervention. This accelerated pace leaves system defenders with remarkably little time to detect and respond to ongoing intrusions. The activity itself did not stem from any vulnerability or compromise within Microsoft's own systems, products, or services.
Rapid Targeting of Microsoft 365 Tenants
Following unauthorized access to a multi-tenant application, the threat group utilized stolen ConnectWise app credentials that authenticated directly without requiring interactive user sign-ins. The AI-driven agents attempted sign-ins across more than 2,250 Microsoft 365 tenants. In several instances, the coordinated attacks managed to reach privileged access in under three hours.
Simultaneously, automated password spraying targeted 327 accounts spread across eight organizations, generating over 151,000 failed logons without a single success. At its peak on October 11, the spray recorded 2,900 failed attempts per minute. However, the true breakthrough for the attackers came through stolen cloud application identities, which enabled rapid sign-ins from consistent IP ranges.
Deep Tenant Penetration and Remediation Efforts
Once inside the compromised environments, the attacking agents performed various operations including directory queries, reconnaissance, app credential modifications, and alterations to roles and identities. Security firms and Microsoft observed instances where malicious applications added themselves to top administrator roles, planting new secrets set to expire years in the future.
In response to the unauthorized access, ConnectWise proactively suspended Cloud Backup—formerly known as SkyKick—alongside SaaS Security and Cloud Management tools. The company initiated a phased restoration process expected to take several days, noting that there are currently no indicators suggesting partner backup data was compromised.
Broader Industry Implications and Future Outlook
The use of the ARTEX framework highlights a shifting threat landscape where actors increasingly rely on autonomous AI tools capable of integrating with various language models. Independent reporting has similarly connected ARTEX deployments to breaches at foreign financial institutions. Meanwhile, further insights and ongoing coverage regarding these threats can be tracked through updates provided by technology publications like Tom's Hardware.
As organizations continue to review activity logs, cybersecurity experts advise keeping affected application connections disabled until formal restoration guidelines are issued by vendors, ensuring that potential secondary exposures are properly mitigated.
Sources
- Tom's HardwareChina-aligned hackers deploy AI agents in massive ConnectWise supply chain attack
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