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23 Oct 2026, 12:47 AMTechCrunch7.5 Chinese hackers spied on thousands of companies after breaching IT giant ConnectWise

Microsoft says China state-aligned hackers breached ConnectWise's cloud backup service, stole application credentials used for customer data links, and accessed Microsoft-hosted email and files at around 2,250 organizations. The attackers used AI agents, including the open-source ARTEX framework, to attempt nearly 3,000 sign-ins per minute, and the same tooling was used in a recent compromise of South Korea's financial systems. ConnectWise has paused access to its cloud backup system and says it is investigating and restoring the service.

Why: If your team relies on ConnectWise Cloud Backup or similar MSP/backup integrations, treat linked app credentials as exposed: rotate or revoke them, enforce MFA and conditional access, and review sign-in logs for abnormal volume. For anyone building or deploying AI agents, this is a concrete case of agent-driven authentication abuse at roughly 3,000 attempts per minute, so rate limits, anomaly detection, and credential scoping are not optional.

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