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Microsoft’s Azure platform and Exchange servers faced a major data breach in January 2024, affecting hundreds of corporate email accounts.
In this guide, we dive into how exactly the hackers got into Microsoft’s systems and managed to access executive accounts.
We also explain how to protect yourself against data breaches and what you can do if you’re impacted by a data breach.
Microsoft’s data breach has analysts worried about national security risks–but what does this breach mean for you? We dive into the details below.
Midnight Blizzard, a Russian state-sponsored actor also known as NOBELIUM, was behind the Microsoft data breach. The attacker, backed by Russia’s SVR foreign intelligence service, is popular for its sophisticated cyber attacks, from infiltrating source code repositories to compromising cryptographic secrets extracted from emails, and relentless pursuit of valuable data.
The attackers used a password spray attack to break into Microsoft’s legacy non-production test tenant account that didn’t have multi-factor authentication enabled.
If that sounds complex, let’s break it down into two parts. Here’s what they did:
A password spray attack is when an attacker tries a few commonly used passwords against multiple user accounts. You’re probably thinking of brute-force attacks at this point. However, password spray attacks are different.
Instead of guessing a single user’s password multiple times, password spray attacks involve trying a few passwords across multiple user accounts. Since a password spray attack spreads out login attempts, it's less likely to trigger account lockouts or detection systems.
Once Midnight Blizzard was able to access the tenant account (a testing account developers use to test changes before taking them live), they used the account’s permissions to gain access to a small percentage of Microsoft corporate email accounts. This included accounts of senior executives and employees in the legal, cybersecurity, and other departments.
The attackers exfiltrated some emails and attached documents containing information about themselves. Subsequently, they tried to access Microsoft’s source code repositories and internal systems.
While there was no evidence suggesting that Microsoft-hosted customer-facing systems were compromised, the attack left a trail of damage. Here’s a summary of the impact of the breach:
Currently, the extent of the breach seems to be limited to compromised corporate email accounts, exfiltrated emails and documents, and the attempt to access Microsoft’s source code repositories and internal systems.
However, that’s what we know so far. According to the latest update from Microsoft, further investigations into the data breach are underway:
“Our active investigations of Midnight Blizzard activities are ongoing, and findings of our investigations will continue to evolve. We remain committed to sharing what we learn.”
And guess what? Microsoft wasn’t the only target. The attacker had also breached HPE’s email system.
This isn’t the first time Microsoft is dealing with a breach. Storm-0558, a group of Chinese hackers, gained access to emails from around 25 organizations. This allowed hackers to steal over 60,000 emails from 10 State Department accounts. The attacker used a series of errors in July 2023 to hack Microsoft and steal a key that granted them broad access to customer accounts, including those of the U.S. government.
Here are some other recent Microsoft data breaches:
Step one: don’t panic. There are things you can do to safeguard your accounts and prevent attackers from getting their hands on your personal information in the future.
Here’s what you should do if you were impacted by a Microsoft data breach:
You need to find out what information was compromised. This could include personal details, email communications, or sensitive data you’ve shared with the platform that faced the breach. Learn about the extent of the breach so you can figure out what accounts you need to protect.
Reputable organizations generally acknowledge a breach and email customers disclosing the full information, including what type of customer data was stolen. If you don’t receive this information, reach out to their support teams for assistance.
The sooner you identify what information was compromised, the better. Taking corrective action quickly is key to minimizing the potential risks associated with the breach.
Cloaked is a comprehensive security solution that helps protect your digital identity and personal information. It helps you generate unique identities that you can use for any online system.
Cloaked is a comprehensive security solution that helps protect your digital identity and personal information. It helps you generate unique identities that you can use for any online system.
Each identity has a unique login, password, email, and phone number–so you never have to share your personal information again. Whenever you sign up for a new service, use an identity generated by Cloaked. This way, even if the service or platform experiences a breach, your real email and phone number remain safe.
Here’s how you can use Cloaked to stay safe:
Join Cloaked to protect yourself against data breaches.
Hackers don’t knock. Keep an eye on personal information, including credit reports, bank statements, and online accounts to see if there’s any unusual activity or unauthorized transactions.
Anything out of the ordinary could indicate identity theft or fraud. Consider using tools like Have I Been Breached periodically to find breaches where your data could have been compromised.
Report the issue to relevant authorities immediately and take the following steps to secure your account:
Speaking of MFA…
Two-factor authentication (2FA) or MFA adds an extra layer of security to your accounts. Once you enable MFA, logging into your account will require more than just your password—this could be a one-time passcode, a fingerprint scan, or security tokens.
Be mindful of the information you share online to reduce your future digital footprint. Review privacy settings on all online accounts and avoid oversharing personal details on any platform, especially when interacting with unknown or untrustworthy websites.Protect Yourself from Microsoft Breaches TodayRising instances of cybercrime call for a more privacy-conscious approach. If you’re using your primary email to log into every platform you find online, you’re inviting trouble. Use a temporary email or phone instead to protect your privacy.
Cloaked helps you generate emails and phone numbers in seconds. All Cloaked emails or phone numbers can be configured to forward emails, calls, and text messages to your primary email or phone number. You can trash this secondary email or phone number when you no longer need it.
Join Cloaked today to regain control of your privacy.
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