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Microsoft 365 Accounts Targeted in Stealthy Botnet Attack

Written by Admin | Feb 27, 2025 4:26:17 PM

A massive botnet of over 130,000 compromised devices is conducting a large-scale password-spraying attack against Microsoft 365 accounts—without triggering the usual security alerts. The attack exploits non-interactive sign-ins, an authentication method that often goes unnoticed by security teams.

How the Attack Works

Unlike traditional password-spraying attacks that lead to account lockouts and investigations, this method operates under the radar. Non-interactive sign-ins occur when a system or application logs in on behalf of a user, without requiring manual authentication input. These are commonly used for service accounts, automated workflows, and API integrations.

Since security teams typically monitor interactive logins rather than non-interactive ones, attackers are able to launch large-scale password-spraying attempts without setting off alarms. This gives them more time to infiltrate systems, gain unauthorised access, and potentially move laterally within an organisation.

A Global Threat Across Microsoft 365 Tenants

Security researchers have observed this attack pattern across multiple Microsoft 365 environments worldwide. The botnet is systematically testing credentials on accounts using basic authentication, allowing it to bypass many traditional security measures.

Unlike conventional password-spraying tactics that cause account lockouts, non-interactive sign-in attacks allow bad actors to persist for longer periods, making them a serious security risk even for organisations with robust authentication controls.

The Risks for Organisations

Companies that focus only on monitoring interactive logins could be missing a critical vulnerability. This attack method increases the risk of:

  1. Account takeovers

  2. Business disruption

  3. Lateral movement within the network

  4. Bypassing multifactor authentication (MFA)

  5. Exploiting conditional access policy (CAP) weaknesses

What Organisations Should Do Now

If your organisation uses Microsoft 365, it’s essential to take proactive steps to mitigate this threat. Immediate actions include:

  1. Reviewing non-interactive sign-in logs for unusual activity

  2. Rotating credentials for service accounts and any accounts appearing in these logs

  3. Enforcing Privileged Access Management (PAM) to control and monitor service account access

  4. Strengthening authentication monitoring across all sign-in types, not just interactive logins

  5. Keeping up with threat intelligence updates to stay informed about evolving attack techniques

As attackers continue to evolve their methods, organisations must adapt their security strategies. Monitoring and securing all authentication pathways, including non-interactive sign-ins, is crucial to preventing unauthorised access and protecting critical systems.