Stolen Entra ID and Azure DevOps Credentials Fuel Expanding Cloud Intrusion Campaign
Researchers at Todyl's MXDR Team have reported an ongoing campaign in which threat actors are using stolen Microsoft Entra ID application credentials and Azure DevOps identities to gain unauthorized access to Microsoft 365 and Azure environments. As of November 3-4, 2026, the activity has impacted at least 27 organizations, including MSPs and their downstream customers across government, energy, transportation, education, legal, and nonprofit sectors. Attackers compromised valid application credentials rather than exploiting a Microsoft vulnerability. Approximately 45 application registrations across 18 organizations were targeted, with more than 33 successfully authenticated. The threat actor leveraged application identities, allowing them to bypass user-focused MFA and Conditional Access controls that do not apply to app-only authentication. Investigators observed: Searches across roughly 25 Microsoft tenants. Downloads of at least 81 files. Access to approximately 2,279 mailbo...