China-aligned hackers deploy AI agents in massive ConnectWise supply chain attack

China-state-aligned actor Storm-0940 used ARTEX, an open-source agentic AI penetration testing framework, in its large-scale ConnectWise supply chain attack, Microsoft wrote in its Security blog. After unauthorized access to the multi-tenant application, the group attempted sign-ins at more than 2,250 Microsoft 365 tenants, with stolen ConnectWise app credentials that authenticated as the apps with no interactive user sign-in. Some of the group’s attacks reached privileged access less than three hours after initial targeting.

Automated password guessing, or password spraying, also targeted 327 accounts across eight organizations with more than 151,000 failed logons and no successes. The use of ARTEX, “a system of LLM-driven agents that run an autonomous penetration test,” sped up scanning and reconnaissance, password spraying, and OAuth application abuse. The agents can work around the clock “with little needed human interaction,” at a pace that “leaves defenders with little time to detect and respond.” …