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Defenders should review service principal sign-ins from unrecognized IP addresses, app credential changes, and OAuth grant activity associated with this OAuth AppId. We recommend looking for Threat Intelligence alerts on matching of IP against the Graph API activity & service principal activities.
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We will continue to monitor this incident and will share updates as they become available. We encourage customers to check ConnectWise advisory for more information and additional guidance: msft.it/63322aQBLq.
Microsoft Threat Intelligence assesses that China state-aligned threat actor Storm-0940 was responsible for this supply chain compromise. Storm-0940 used the agentic AI pen testing framework ARTEX to automate attacks targeting hundreds of organizations globally. msft.it/63329aaj9h
The operational detail in that write-up is easy to miss: search by application ID, not display name - four ConnectWise app IDs are in scope, not just Cloud Backup - and don't delete the enterprise applications as a first response. Keep connections disabled until ConnectWise says otherwise.