How Microsoft 365 account are getting hacked

Introduction:

In recent cyber incidents, attackers have been targeting Microsoft 365 accounts using a sophisticated and fast-paced method. On January 6, 2025, cybercriminals began exploiting a tool called “FastHTTP” to carry out large-scale automated password-guessing attacks. This method leverages the tool’s capability for high-speed login attempts, making it a serious threat to organizations relying on Microsoft 365 for email and collaboration. Let us break this down in simple terms.

The Attack:

  • What Happened?
    • Attackers utilized a software library called “FastHTTP” to automate a huge number of login attempts against Microsoft 365 accounts. This software works at high speed, minimizing delays, and is ideal for launching these types of attacks.
    • The attacks were traced to regions like Brazil, Turkey, and Argentina, where they originated.
  • How Does the Attack Work?
    • Credential Stuffing: Attackers use usernames and passwords that were leaked from previous data breaches to try logging into Microsoft 365 accounts.
    • Password Spraying: Instead of using multiple passwords for one account (which could cause it to lock), attackers try a small set of common passwords across many accounts.
    • These attacks target the Azure Active Directory API, a system responsible for managing logins to Microsoft 365.
  • What About MFA-Protected Accounts?
    • Even accounts with Multi-Factor Authentication (MFA)—a second layer of security where users approve logins via their phone or email—aren’t completely safe.
    • Attackers exploit a technique called MFA fatigue, where they send repeated login requests, overwhelming users with approval notifications. A user might mistakenly approve one, giving attackers access.
  • Outcomes of the Attacks:
    • 10% Success Rate: About 1 in 10 attempts successfully takes over the targeted account.
    • 21% Lockouts: Some attacks trigger account lockouts due to too many failed login attempts.
    • 41.5% Failure Rate: The rest of the attempts fail outright.
  • Impact of a Successful Attack:
    • Once attackers gain access, they can:
      • Steal sensitive data (data exfiltration).
      • Use the account to send fake emails as part of business email compromise (BEC) schemes.
      • Move deeper into the organization’s network to access more systems and data (lateral movement).

  • It’s critical for organizations to enhance their defenses, educate users on MFA fatigue, and adopt measures like conditional access policies to protect against such threats.