Chinese Hackers Used AI Agents to Breach ConnectWise and Target 2,250 Companies

Security researchers at Microsoft reported that China state-aligned hackers breached ConnectWise’s cloud backup service, stealing application credentials used to link ConnectWise with its corporate customers. These credentials allowed hackers to log into customer Microsoft-hosted environments, accessing emails and files. The hackers utilized AI agents, specifically ARTEX, to rapidly hack around 2,250 organizations at a rate of almost 3,000 attempted sign-ins per minute, a speed Microsoft said gives defenders little time to respond. ConnectWise has paused access to its cloud backup system and is investigating the breach.