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A Closer Look at the Microsoft ServiceNow Incident 

Julissa Caraballo
November 12, 2024
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Just a few weeks ago, a security researcher managed to gain access to Microsoft’s ServiceNow tenant using a single set of stolen credentials from a commercial threat intelligence feed containing infostealer logs. This incident highlighted glaring vulnerabilities in credential hygiene and raised significant concerns about identity security practices, even within highly secure organizations. 

Let’s break down the attack, the importance of identity and credential hygiene, and how Savvy’s advanced identity security solution could have mitigated these risks. 

Attack Breakdown: How a Single Credential Breach Compromised a Corporate Giant 

In a striking demonstration of how a single vulnerability can disrupt even the most robust corporate defenses, this breach allowed an attacker to infiltrate Microsoft’s internal ServiceNow tenant using just one compromised credential. Sourced from a commercial threat intelligence feed containing infostealer logs, this credential bypassed existing controls, giving the attacker privileged access to sensitive information, including employee emails, chat support logs, and internal communications—all through a single entry point. 

This incident underscored three significant weaknesses: 

  • Credential Hygiene Gaps: Lacking layers of credential hygiene, Microsoft’s defenses were unable to counteract access from an outdated or compromised credential. Without strict policies for password rotation, unique credential requirements, and dynamic password audits, a single exposed credential was sufficient to bypass defenses. 
  • Identity Governance Weaknesses: The breach highlighted gaps in Microsoft’s identity governance approach, as controls over privileged access were not consistently enforced. Once inside, the attacker was able to move laterally across sensitive areas with minimal restriction, exposing limitations in how access rights were managed and monitored for high-privilege accounts. 
  • Absence of Threat Detection Mechanisms: The lack of adaptive threat detection meant that unauthorized access was not flagged immediately, allowing the attacker time to exfiltrate sensitive data. This lag in threat intelligence and anomaly detection created a window in which unauthorized activities were left unchecked. 

Unpacking the Core Weaknesses: Credential and Identity Hygiene 

This incident is a clear reminder that identity and credential hygiene are critical for securing SaaS environments. In the case of Microsoft, two main areas presented critical weak points: 

Credential Hygiene 

  • Advanced Credential Theft and Infostealers: Modern credential-stealing malware, or infostealers, captures credentials and funnels them to threat actors via dark web marketplaces and commercial threat intelligence feeds. Here, the compromised credential was harvested from an infected device, emphasizing the need for robust monitoring practices to identify and remediate compromised credentials before they become exploitable. 
  • Password Reuse and Static Credentials: Static passwords are a significant risk multiplier. Without enforced password rotation policies and unique passwords for each system, static credentials become high-value targets for attackers. Continuous credential hygiene audits are essential to mitigate the risk of unauthorized access via outdated or reused passwords. 

Identity Hygiene 

  • Multi-Factor Authentication (MFA) Deficiencies: Without MFA as a foundational security requirement, even seemingly “secure” credentials are vulnerable. By not mandating MFA for privileged SaaS applications, organizations create exploitable gaps that allow attackers to bypass security using stolen credentials. The lack of MFA here was a critical factor in the breach’s success. 
  • Anomaly Detection and Access Monitoring: Effective identity hygiene extends beyond credential management to include active monitoring for anomalies. The breach could have been identified and isolated sooner had continuous identity monitoring been in place to detect unusual access patterns or login behaviors. Integrating machine learning-based anomaly detection can provide real-time alerts on suspicious activities, helping to prevent and contain breaches. 

How Savvy Could Have Prevented the Attack 

In light of the vulnerabilities revealed by the recent attack on Microsoft’s ServiceNow tenant, it’s clear that consistent credential and identity hygiene are essential to a secure SaaS environment. Savvy’s solution addresses these challenges through comprehensive visibility, automated workflows, and proactive guardrails, making unauthorized access far less likely. Here’s how Savvy could have made a difference in this incident: 

1. Detect SSO Bypass and Monitor Direct Logins 

The breach at Microsoft exposed gaps in controlling direct logins, where compromised credentials enabled unauthorized access outside of the secure Single Sign-On (SSO) environment. Savvy continuously monitors and detects when users attempt to bypass SSO and log in directly to SaaS apps. By flagging direct logins, Savvy ensures all user activity flows through the organization’s secure SSO system, where robust authentication mechanisms like Multi-Factor Authentication (MFA) are enforced. This greatly reduces the risk of unauthorized access, maintains compliance with security policies, and offers centralized logging of all access events for effective auditing and incident response. 

2. Automated Enforcement of Credential Hygiene 

The root cause of many breaches—including this one—lies in poor credential hygiene. Savvy identifies weak, reused, shared, and compromised credentials across your environment and takes immediate action to secure them, eliminating credential-based vulnerabilities. Savvy’s automated workflows enforce security best practices by prompting users with just-in-time guidance on secure practices, such as avoiding password reuse, to ensure consistent identity hygiene. These workflows not only protect credentials but also reinforce secure behavior, adding another layer of security without disrupting productivity. 

3. Enhanced Identity Hygiene with Continuous MFA Enforcement 

A robust MFA setup is essential for preventing unauthorized access, particularly when attackers gain access to valid credentials. Savvy detects SaaS apps without MFA configuration and provides automated workflows that require users to adhere to MFA policies. Unlike point-in-time checks, Savvy continuously validates MFA requirements, so any bypass attempts are flagged immediately. This approach ensures unauthorized users cannot slip past secondary authentication layers, even if they have access to stolen credentials. By enforcing MFA and SSO policies consistently, Savvy prevents risky access combinations from forming—particularly useful in decentralized environments with multiple SaaS applications. 

4. Anomaly Detection and Real-Time Alerts 

In this attack, the absence of early detection mechanisms meant that unauthorized access went undetected until significant exposure occurred. Savvy’s real-time monitoring and anomaly detection capabilities flag irregular access patterns immediately. Suspicious logins, unusual device activity, or access from atypical IP addresses trigger alerts for investigation, allowing security teams to respond swiftly. This proactive approach not only minimizes the potential for data breaches but also provides ongoing protection as Savvy analyzes login patterns and unusual activities, adding a critical layer of protection to catch unauthorized actions early. 

Closing Thoughts: A Stronger Identity Hygiene Strategy 

The Microsoft ServiceNow incident highlights the importance of comprehensive identity and credential hygiene. Organizations must recognize that even one set of stolen credentials can have far-reaching consequences if not properly managed. Savvy’s solution, with its focus on enforcing best practices, detecting risky behavior, and automating security workflows, offers a powerful defense against these types of breaches. By integrating Savvy into their identity security stack, organizations can safeguard their environments against the types of gaps that allowed this recent breach to occur—keeping unauthorized users out and data secure. 

At the end of the day, even one exposed credential can unravel an organization’s security if not managed properly. The Microsoft ServiceNow incident is a call to action for all organizations to step up their identity security game – and with Savvy, they can. 

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