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 * HOME
 * ▸ news
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 * ▸ 2024
 * ▸ US Government Impacted In Microsoft Breach By Midnight Blizzard: Report

Security


US GOVERNMENT IMPACTED IN MICROSOFT BREACH BY MIDNIGHT BLIZZARD: REPORT

By Kyle Alspach
April 4, 2024, 6:45 PM EDT

In a statement provided to CRN, Microsoft confirmed that it has been working
with CISA on an emergency directive related to the threat.



Shares
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The U.S. federal government has been impacted by a Russian state-sponsored
hacker group, known as Midnight Blizzard, in connection with the threat actor’s
breach of Microsoft executive accounts disclosed in January, according to a
report Thursday.

The report from Scoop News Group indicated that the U.S. Cybersecurity and
Infrastructure Security Agency (CISA) released an emergency directive this week
to federal agencies, which came in response to an unspecified impact on the U.S.
government related to the Midnight Blizzard attack against Microsoft.

In a statement provided to CRN Thursday, Microsoft confirmed it has been working
with CISA on the emergency directive related to the Midnight Blizzard threat to
the federal government.

“As shared in our March 8 blog, as we discover secrets in our exfiltrated email
we are working with our customers to help them investigate and mitigate any
impacts,” Microsoft said in the statement. “This includes working with CISA on
an emergency directive to provide guidance to government agencies.”

CRN has reached out to CISA for comment.

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Microsoft initially disclosed Jan. 19 that Midnight Blizzard, which has been
associated with Russia’s SVR foreign intelligence unit, was able to steal emails
from members of its senior leadership team as well as from employees on its
cybersecurity and legal teams. The attack began in late November, the company
has said.

In an update on the incident in early March, Microsoft disclosed that Midnight
Blizzard had been observed continuing to seek to exploit information gathered in
the attack.

As of this writing, the CISA emergency directive has not been made public. A
CISA spokesperson reportedly told Scoop News Group that “CISA continues to
provide guidance to Federal Civilian Executive Branch agencies regarding actions
to secure accounts potentially placed at risk through the Midnight Blizzard
campaign disclosed by Microsoft in January 2024.”

“We are working closely with Microsoft to understand the risks to federal
agencies and the broader ecosystem in order to provide necessary guidance and
information,” the CISA spokesperson said, according to the report.

In its March update, Microsoft said it had seen a recent surge in the activity
by Midnight Blizzard. It has been “apparent that Midnight Blizzard is attempting
to use secrets of different types it has found,” Microsoft said in the post.

The company noted that “some of these secrets were shared between customers and
Microsoft in email.” A Microsoft representative clarified that the “secrets”
referenced in the post consist of cryptographic secrets such as passwords,
credentials, certificates and keys.

Microsoft said in March that it had “seen evidence that Midnight Blizzard is
using information initially exfiltrated from our corporate email systems to
gain, or attempt to gain, unauthorized access.”

“This has included access to some of the company’s source code repositories and
internal systems,” Microsoft said.

According to the Scoop News Group report, the CISA emergency directive is geared
toward mitigation of malicious activities by Midnight Blizzard.

The disclosure follows this week’s blistering report about Microsoft’s security
culture and practices issued by the U.S. Homeland Security-appointed Cyber
Safety Review Board. The board released a 34-page report on last year’s
Microsoft Exchange Online breach, which was linked to China and impacted
multiple federal agencies and officials including Commerce Secretary Gina
Raimondo. The review board pinned the cloud email breach on a “cascade of
Microsoft’s avoidable errors.”

Kyle Alspach

Kyle Alspach is a Senior Editor at CRN focused on cybersecurity. His coverage
spans news, analysis and deep dives on the cybersecurity industry, with a focus
on fast-growing segments such as cloud security, application security and
identity security. He can be reached at kalspach@thechannelcompany.com

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