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Showing posts with label Huntress SMB Report. Show all posts

81 Million Login Attempts Linked to Azure CLI Password Spray Attack

 


A large-scale password spraying campaign targeting Microsoft 365 environments through Microsoft’s Azure Command-Line Interface (Azure CLI) generated more than 81 million authentication attempts and compromised at least 78 user accounts across 64 organizations, according to cybersecurity firm Huntress.

Huntress said the activity was observed between June 12 and June 21, with attackers typically compromising two to four accounts per day before activity surged around June 22, when 23 organizations were affected. Most of the login attempts originated from AS32167, an autonomous system associated with hosting provider LSHIY LLC.

The company said the campaign formed part of a larger wave of credential-spraying attacks spanning multiple autonomous systems and noted that the volume of such attacks across its customer base has increased more than 155-fold during the past six months. Investigators believe the operation relied primarily on previously exposed username-and-password combinations obtained from credential leak collections.

A key element of the campaign was the use of the OAuth Resource Owner Password Credentials (ROPC) flow through Azure CLI. Although ROPC has been deprecated in OAuth 2.1, it can still exchange valid usernames and passwords directly for access tokens without an interactive sign-in prompt. Huntress said this allowed attackers to authenticate successfully in environments where multi-factor authentication policies did not fully cover that authentication flow.

The investigation identified several configuration gaps among affected organizations, including MFA policies applied only to certain cloud applications or user groups, enforcement limited to non-trusted locations, and policies that had been configured but never enforced. Huntress also found that eight impacted organizations had no MFA policy enabled.

Huntress emphasized that the findings should not be interpreted as evidence that MFA is ineffective. Instead, organizations should review Conditional Access policies, eliminate deprecated authentication methods where possible, ensure MFA protections apply to all supported sign-in flows, and monitor Azure CLI authentication activity for unusual login patterns.

The IPv6 address range used in the campaign belongs to LSHIY, an internet infrastructure provider registered in Hong Kong, Wuhan, China, and New York. Huntress said it reported the activity through the provider’s abuse-reporting channel but had not received a response.

Ransomware Tactics Evolve as Hackers Shift Focus to Data Theft

 

Ransomware groups are adapting their strategies to outsmart stronger cybersecurity defenses and increasing law enforcement pressure, according to the Huntress 2025 Cyber Threat Report. The findings reveal that attackers are moving beyond traditional encryption-based ransomware, instead focusing on data theft and extortion to bypass modern protections. 

In 2024, 75% of ransomware cases Huntress investigated involved remote access Trojans (RATs), allowing hackers to infiltrate systems discreetly. Additionally, 17.3% of incidents featured the misuse of legitimate remote management tools such as ConnectWise ScreenConnect, TeamViewer, and LogMeIn. This shift reflects a growing reliance on “living off the land” techniques, where attackers use trusted administrative tools to avoid detection. 

A significant trend noted in the report is that sophisticated tactics once reserved for targeting large enterprises are now common across businesses of all sizes. Huntress observed that cybercriminals are increasingly disabling or tampering with security software to maintain access and avoid detection, effectively closing the gap between attacks on major corporations and smaller organizations.  

Huntress’ analysis of over 3 million endpoints also revealed that nearly 24% of ransomware incidents in 2024 involved infostealer malware, while malicious scripts designed to automate attacks and evade security tools appeared in 22% of cases. Greg Linares, principal threat intelligence analyst at Huntress, states that ransomware groups must constantly evolve to survive in the competitive cybercrime landscape.

“If malware isn’t staying ahead of detection techniques, it becomes obsolete fast,” Linares explained. Another key insight from the report was the speed of modern ransomware campaigns. On average, the time from initial access to the delivery of a ransom demand — known as time-to-ransom (TTR) — was just 17 hours. Some groups, including Play, Akira, and Dharma/Crysis, were even faster, with TTRs averaging around six hours.  

Interestingly, Huntress noted a clear shift in ransomware tactics: rather than encrypting data, many attackers now opt to exfiltrate sensitive information and threaten to leak it unless a ransom is paid. This change is seen as a direct response to stronger ransomware defenses and increased law enforcement efforts, which led to the takedown of major groups like Lockbit. 

However, this shift presents new challenges for companies. While endpoint detection and ransomware protections have improved, the report points out that data loss prevention (DLP) measures remain underdeveloped. Linares noted that DLP solutions are often overlooked, especially in organizations with remote work and bring-your-own-device (BYOD) policies. These environments, he said, often lack the comprehensive monitoring and control needed to prevent data exfiltration. 

To stay ahead of these evolving threats, Huntress recommends that businesses not only strengthen their ransomware defenses but also implement more robust DLP strategies to protect sensitive data. As ransomware gangs continue to adapt, companies must be proactive in addressing both encryption and data theft risks.

SMBs Witness Surge in ‘Malware Free’ Attacks


According to the first-ever SMB Threat Report from Huntress, a company that offers security platforms and services to SMBs and managed service providers (MSPs), the most common threats that small and medium businesses (SMBs) faced in Q3 2023 were "malware free" attacks, attackers' growing reliance on legitimate tools and scripting frameworks, and BEC scams.

“Malware Free” Attacks on the Rise

In 44% of cyberattack incidents, attackers tend to deploy malware. However, in the remaining 56% of events, scripting frameworks (like PowerShell) and remote monitoring and management (RMM) software were used along with "living off the land" binaries (LOLBins).

The increased use of RMM software has turned out to be a concerning trend that is challenging to reverse.

“At the SMB level, LOLBin use is especially concerning given the state of monitoring and review for many organizations. Many critical entities—from local school districts to medical offices—may find themselves at best leveraged for cryptomining or botnet purposes, and at worst, the victims of disruptive ransomware,” the researchers noted.

The researchers notes that in over 65% of security incidents, threat actors utilize RMM software as their methods for persistence or remote access mechanisms following the initial access to the victim user's system.

Since RMM tools are largely used as legitimate software, in case they are used for any intrusion purpose, they can readily evade anti-malware security and blend in with the environment when employed for infiltration purposes. Additionally, few small businesses audit the use of RMM tools.

“In some cases, Huntress has observed adversaries diversifying among several RMM tools, such as using a combination of commercial and open-source items, to ensure redundant access to victim environments,” the researchers noted. “Therefore, monitoring RMM tool use and deployment within defended or managed environments is an increasingly important security hygiene measure to ensure owners and operators can identify potential malicious installations.”

Additional Findings

Affiliates of ransomware and operators of business email compromise (BEC) persist in their targeting of end users through the use of phishing.

Notably, malicious forwarding or other inbox rules were engaged in 64% of identity-focused assaults that SMBs faced in Q3 2023, while logins from strange or suspect places were linked to 24% of these attacks.

“While the ultimate goal of such activity remains, in most cases, BEC, defensive visibility and adversary kill-chain dependencies mean these actions are largely caught at the account takeover (ATO) phase of operations,” the experts concluded.

In 2023, Qakbot-related cybersecurity incidents have declined, with this downward trend anticipated to continue.

The findings further note that 60% of ransomware incidents were caused by uncategorized, unknown or "defunct" ransomware strains. This demonstrates a variation in the kind of ransomware frequently observed in corporate settings, where "known-variant ransomware deployments" are the primary target.

“Whether for monetization purposes through ransomware or BEC, or potentially even state-directed espionage activity, SMBs remain at risk from a variety of entities,” the researchers added. 

The researchers further raised concerns towards the adversaries that are exploiting the gaps in  users’ visibility and awareness over evading security controls. While spam filtering and a solid anti-malware program used to be enough for a small business to "get by," the current threat landscape makes these straightforward efforts inadequate.