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Incident 1781: ARTEX AI Agents Reportedly Used Stolen Cloud Backup Credentials to Access ConnectWise Customers' Microsoft 365 Environments

Description: Microsoft reported that China-aligned hackers used ARTEX, an AI penetration-testing framework, to access customers' Microsoft 365 environments through stolen credentials for ConnectWise's cloud backup services. Agents reportedly changed credentials and privileges in some environments to retain unauthorized access. The activity formed part of a global campaign; the extent of compromise and any data theft remained uncertain.

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Alleged: Large language model developers , ARTEX developers and AI agent system developers developed an AI system deployed by Threat actors , Storm-0940 , China-linked threat actors , AI agent system deployers and Agentic threat actors, which harmed Microsoft , Enterprises relying on Microsoft 365 and identity services , ConnectWise customers , ConnectWise and Information integrity.
Alleged implicated AI systems: Large language models , ARTEX and AI agent systems

Incident Stats

Incident ID
1781
Report Count
2
Incident Date
2026-10-15
Editors
Daniel Atherton

Incident Reports

Reports Timeline

Incident Occurrence+1
AI-driven, large-scale nation-state campaign using ARTEX enables supply chain compromise
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AI-driven, large-scale nation-state campaign using ARTEX enables supply chain compromise

AI-driven, large-scale nation-state campaign using ARTEX enables supply chain compromise

microsoft.com

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Chinese-linked hackers compromise ConnectWise, target hundreds in global attack, Microsoft says

Chinese-linked hackers compromise ConnectWise, target hundreds in global attack, Microsoft says

reuters.com

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AI-driven, large-scale nation-state campaign using ARTEX enables supply chain compromise
microsoft.com · 2026

As early as September 2026, Storm-0940, a China-state aligned actor, used the agentic AI penetration testing framework ARTEX to automate attacks targeting hundreds of organizations globally across a broad range of industries. Several of the…

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Chinese-linked hackers compromise ConnectWise, target hundreds in global attack, Microsoft says
reuters.com · 2026

Oct 21 (Reuters) - A Chinese state-aligned hacking group used an AI-driven penetration testing tool to compromise IT ​services firm ConnectWise as part of a campaign that targeted hundreds ‌of organizations globally, Microsoft said on Wedne…

Variants

A "variant" is an AI incident similar to a known case—it has the same causes, harms, and AI system. Instead of listing it separately, we group it under the first reported incident. Unlike other incidents, variants do not need to have been reported outside the AIID. Learn more from the research paper.
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