The M365 Attack Chain Is Not What You Think

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Officers stand by for mission briefing, red alert.

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MFA isn't a shield on my watch.

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Stolen tokens, right past it, like cloaked ships through an open gate.

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Firewalls guard borders.

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But the breach doesn't cross borders.

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It hijacks identity.

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Here's our mission promise.

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We'll map a real M365 tenant breach end to end.

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We start in the attackers cockpit.

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We end with detections and policy locks you can deploy today.

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We'll track consent fishing, token theft and OAuth abuse.

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We'll show the exact logs, the Sentinel analytics and the Entra controls.

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There's one policy that breaks this chain.

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Stay sharp, threat, intel brief.

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What modern crews actually do, listen up officers.

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The intelligence picture is clear.

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The enemy doesn't brute force doors.

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They borrow badges.

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They use commodity AETM fishing kits.

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Fishing as a service outfits run at scale.

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Malicious OAuth apps drift across tenants like multi-tenant gunships.

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The tooling is cheap, the effect is strategic.

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Their goal set is simple.

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Take the mailbox, siphon sharepoint, persist via app consent and tokens.

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With offline access, they keep refreshed tokens alive.

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With graph, they pull data quiet and headless.

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With mail rules, they blind your centuries.

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Why all defenses fail?

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MFA blocks passwords, not replayable sessions.

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Admin portals don't show OAuth sprawl by default.

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Portals lull crews to sleep while service principles multiply in the dark.

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You see users.

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They use apps.

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You chase login failures.

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They replay cookies.

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Different war.

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Assume this terrain.

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Entra ID holds identity.

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Exchange online and sharepoint house the crown.

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Defender and Sentinel exist, but they're under tuned.

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Telemetry flows, alerts don't.

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That gap is where attackers live.

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Here are the artifacts that matter.

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Entra ID sign-in logs show authentication requirements satisfied.

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That phrase hides the heist when a stolen cookie glides in.

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Audit logs record consent to application, service, principle created,

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and app role assigned to.

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An exchange mailbox audit tracks inbox rule ads, external forwarding and folder moves.

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SharePoint and the unified audit log show file access and file downloaded

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with an app ID stamp app registrations and service principle updates

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mark credential drops and scope creep.

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The thing most people miss, you don't just guard the login.

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You bind the token device binding and conditional access.

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Based on risk, cut the replay.

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That's the shield, not another password policy.

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Token protection for exchange and share point makes a stolen cookie

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useless off device.

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Risk-based conditional access holds the session even when MFA already passed.

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Now the operational truth attackers run AATM reverse proxies to capture credentials

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and the session token in the same pass.

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They land a rogue multi tenant app.

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Scopes look harmless.

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User.

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Read mail.

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All read offline access but together they grant durable reach.

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They pivot to graph harvesting.

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They do it with no human logo in the loop.

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The mailbox becomes a data host.

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SharePoint becomes a quiet stream.

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No popups, no prompts, just API calls.

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Your telemetry grid must light up early.

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In Sentinel analytic rules should watch for consent by risky users or from unfamiliar IP

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ranges.

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New EBA in Defender flags, impossible travel and sudden session switches that match hijack

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patterns.

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Custom KQL can alert on a new service principle with high value scopes.

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That's how we catch the ship as it declokes.

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But remember this crew, visibility without policy is theatre.

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If users can grant consent, you'll lose ground.

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If tokens aren't bound, the enemy will replay sessions from clean infrastructure.

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If your all-o-list is blank, every appid looks normal.

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Follow protocol, disable user consent, enforce admin workflow, turn on token protection where

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supported, segment conditional access by workload and device compliance, then your detections

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mean action, not after action reports.

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Hold the line.

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Initial access, consent phishing and token theft.

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Your mission coordinates.

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The breach starts with consent phishing plus AITM token theft, one click, no MFA prompt

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for access.

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That's the play.

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Why this matters?

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If a user grants consent, an app gets scopes the user doesn't understand.

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Mail.

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Read looks harmless.

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Offline access looks boring.

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Together they create durable reach that survives password resets.

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And with ITM the attacker steals the session cookie at the same time MFA already fired.

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The cookie replays clean, gate wide open.

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Here's what the crews run.

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An adversary in the middle reverse proxy sits between the user and Microsoft.

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The email lure is standard, invoice, share request, payroll update.

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The link routes through the proxy, the user enters credentials.

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The proxy relates to Microsoft.

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MFA completes.

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The proxy captures the session token.

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At the same moment, a benign looking multi-tenant app asks for consent.

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The prompt says, read your mail and basic profile.

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The user approves, no alarm, no second factor.

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The attacker now holds two assets, a live cookie and a sanctioned service principle.

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Now the technique stack.

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First, consent grant to a malicious multi-tenant app.

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Scopes user.

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Read mail.

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Read offline access.

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The key is offline access.

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It authorizes refresh tokens for long sessions.

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Second, session token theft via the reverse proxy.

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The cookie gets replayed from a new device.

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No password, no prompt.

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Third, OUTH abuse through Microsoft Graph.

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The attacker queries mail and files headless.

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Harvest begins quiet, consistent API cadence, not human behavior.

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Let me show you exactly how we see it.

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In Entra ID audit, you'll find consent to application.

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Then service principle created.

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Then app role assigned to.

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Those three mean the app landed.

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The service identity exists and scopes are active.

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In Entra ID, sign in logs.

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Look for authentication requirements satisfied.

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Tied to a new device or country within minutes of the user's real login.

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That pattern screams cookie replay.

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In exchange mailbox audit.

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Watch for ad inbox rule.

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Ad inbox rule or SMTP forwarding settings.

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Often dropped right after consent to blind the user.

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In the unified audit log and SharePoint logs, file access and file downloaded events show

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an app ID, not Outlook or a browser.

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That app ID is the ghost doing the pulling.

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Detections to arm now.

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Incentenal, build an analytic that fires on consent to application when the requester

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is high value or the source IP is unfamiliar.

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Share it with a watch list of sanctioned app id.

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Anything outside that list gets priority one.

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Turn on UEBA for impossible travel and sudden session switching.

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Identity satisfied from one country than a second country.

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Minutes apart, same user agent string.

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That's a hijack signature.

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Add custom KQL to flag new service principles with scopes like mail.

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Read right files read dot all.

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Sites read dot all.

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Or offline access when granted to non admins.

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Those scopes are the data hose.

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Now here's where most people mess up.

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They leave user consent on.

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They trust that MFA blocks the fish.

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They don't enable token protection.

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Result.

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The attacker asks the user for access.

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The organization never approved.

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And the stolen cookie lands on clean infrastructure, the tenant trusts.

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No control sees it as foreign.

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You get no prompt.

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You get no fail.

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You get no chance.

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The quick win.

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Disable user consent across the tenant.

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Build the admin consent workflow.

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Force all app requests through review.

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Second turn on token protection for exchange and share point.

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We're available.

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Device bind those tokens.

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So replay from another machine.

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Dies at the gate.

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Third, enable sign in risk conditional access.

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If risk is medium or above, require step up or block.

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This stops a stolen cookie piggybacking from a new country.

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An example.

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In five minutes, sign in logs show requirements satisfied from two countries.

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Audit shows consent to application to a multi tenant app named Mail Optimizer.

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Unified audit shows file downloaded by that app ID from a share point sales site.

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Each mailbox audit shows a new inbox rule moving messages from security to RSS subscriptions.

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That's the entire chain end to end on a single screen.

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Once you nail this picture, everything else clicks.

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The first battle is consent.

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The second is token replay.

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Shut those doors.

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And the rest of the chain starves.

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Hold the line.

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Persistence.

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Living off the land with OAuth and mail rules.

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Listen up officers.

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This consent lands and the cookie replace the enemy stops sprinting.

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They dig in.

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They turn access into residency.

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Password resets won't save you now.

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App consent survives them.

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Refresh tokens renew them.

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They become service.

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Quiet.

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Durable.

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Hard to evict.

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Why this matters?

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If they keep offline access, they hold the refresh token that rotates forever until you

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revoke the grant.

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They don't need the user again.

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They don't need a prompt.

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The graph becomes their supply line.

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No one watches headless ships.

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Here's the playbook.

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First, they protect the tap.

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Hidden inbox rules root anything from security, IT or Microsoft to a dead folder or delete

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on arrival.

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The user sees nothing.

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Second, they harden persistence.

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They add a second, benign looking multi-tenant app.

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Same scopes.

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Say for name.

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If you kill the first, the twin breathes life back in.

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Third, they upgrade scopes over time.

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From mail, read to mail, read right.

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From sites, read.all to files, read.all.

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Small changes.

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Big reach.

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Operational telemetry.

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In Entra audit, watch for update application.

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Add credentials.

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Key credential added.

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Password credential added.

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Those are key drops.

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Service principles getting new secrets mean hands on your lifeline.

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An app roller sign to scope creep appears as new roller signments.

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Mail.

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Read right.

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Sites.

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Read.

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To all.

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Files.

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Read.

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All.

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Each grant expands the blast radius.

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In exchange admin audit and mailbox audit.

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Set inbox rule.

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New inbox rule.

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And set mailbox with forwarding semtip address.

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Tell you the blindfold is on.

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Rules that redirect external are the ex fill highways.

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Let me show you exactly how to monitor it.

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In Sentinel build an analytic for inbox rules that forward externally and inbox rules that

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delete or move security mail.

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Use an allow list for approved forwarding domains.

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Everything else triggers.

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Pay that with defender, you eeba, to detect sudden spikes in graph calls by a new app id.

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Baseline per app.

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Alert when call volume jumps or hits odd hours.

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This reveals the quiet hose turning into a pump.

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Now here's where most people mess up.

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They revoke a single token.

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They reset a password.

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They close the incident.

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The service principle keeps breathing.

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The refresh token renews.

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The twin app wakes up.

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Days later, files keep moving.

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The crew thinks it's normal sink.

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It's not.

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You didn't cut the artery.

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You only scratched the skin.

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How to break it.

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Follow protocol.

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Step one.

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Revoke app consent for every malicious and suspicious app in entra.

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Remove the service principles.

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Kill the grants at the root.

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Step two.

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Invalidate refresh tokens.

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Tenant-wide for the affected identities.

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Force sign out.

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End active sessions.

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Step three.

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Rotate application secrets for any sanctioned app that touched the compromised accounts.

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Assume token leakage.

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Step four.

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Implement conditional access session controls.

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Block legacy refresh tokens.

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Set sign-in frequency to force re-evaluation on high-risk signals.

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Device by and tokens with token protection for exchange and sharepoint were supported.

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Replay dies at the gate.

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Quick lab to practice.

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Pull entra audit and search activity display.

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Name equals consent to application.

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Capture the app ID.

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Cross-map that app it to unified audit events for file access and file downloaded.

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You'll see which sharepoint sites the app touched.

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First query exchange mailbox audit for new inbox rule and set inbox rule by that user in

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the same time frame.

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That alignment confirms blinding plus pull.

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Finally check app roll assigned to for that service principle.

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Any growth in scopes after day one is a persistence tell.

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Your countermeasures need structure.

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Build a Sentinel watch list of approved app IDs.

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Your sanctioned fleet.

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Alert on deviations.

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Set a playbook when consent to application fires an app ID not in watch list auto-revol grants

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disable the app notify the soc and open a ticket.

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Tie in defender for cloud apps or auth app governance to rate limit or block apps with

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high permissions and anomalous use.

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One system sees the other acts 12 time collapses to minutes but remember this policy first detection

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second.

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Disable user consent enforce admin workflow require compliant device for exchange and sharepoint

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external forwarding disabled by default with a narrow exception list then your telemetry

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becomes a weapon not a diary.

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Hold the line lateral movement from mailbox to share point to keys engineers the beach head

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is up now the crew pivots from a single mailbox they map the galaxy their target is data

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gravity share point male and the directory graph turns it all into a hose why this matters

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the mailbox is in tell it holds project names sight links vendors and leadership threads

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with that context the enemy charts where the crown lives share point libraries finance

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folders executive calendars from there they don't guess they query here's the movement

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pattern first they enumerate sites via graph with sites

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read all they query root then drives then lists they harvest site IDs and drive IDs they

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sample a few files to validate value if it pays the scale second they rate the mailbox

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for MFA reset paths and vendor conversations business email compromise rides these threads

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they inject replies change payment instructions and wait third they probe and draw with directory

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read scopes they list users groups and app role assignments they tag privileged users

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and shared mailboxes if scopes allow they grow to files read all or mail read right each

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inches strategic now the telemetry that gives them away in the unified audit log you'll see

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file access and file downloaded with a single app it hitting many sites the pattern is

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a volume from one caller not many users in enter sign in a single app ID is tied to multiple

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high value users within hours cross entity correlation lights that up in exchange mailbox

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audit new inbox rule with redirect to or delete message appears near the X fill window

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forwarding to external SMTP addresses is the red flare listen up officers Sentinel and

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defender can box this in if we tune them you eBA should watch per app ID download volume

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per site and trigger on time of day deviations quiet service apps don't pull 10,000 files

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at 2 a.m unless someone turned the tap built in analytic rule for high risk or scopes assigned

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to non admin users if male dot read right or files dot read don't all lands on a standard

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user raise priority one pair a playbook when anomalous download volume by app it triggers block

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the app in entra revoke its grants and set the user session to sign out if defender for

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endpoint flags cookie theft tools on a device isolate the endpoint and correlate with identity

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events exfiltration trade craft is subtle they use graph batch API's to group calls that

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smooth rates and dodges crude thresholds they throttle to mimics sync clients they exfiltrate

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to attacker cloud storage hosted in benign ranges so IP reputation stays clean they may

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hop through a vendor account in your tenant to blend further this is why baseline by

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app ID and site not raw counts context beats thresholds defense moves that work on my watch

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conditional access must segment by workload require compliant device for exchange and

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share point a headless apti to a random VM will fail block user consent tenant wide force

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admin workflow bind tokens with token protection for exchange and share point where supported

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now the replay dies and app calls must come from known posture dlp needs service principle

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awareness policies that only watch user agents miss graph apps enable external forwarding

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disabled by default then create a narrow allow list for domains that truly need it now the

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mistake that ruins everything teams allow broad scopes to low risk apps for convenience

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they also maintain a wide exception for external forwarding because vendors need it that's an

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exfilt runway shut it build a proper exception request pipeline tie it to sentinel watchlists

353
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every exception becomes an entity you monitor harder let me show you exactly how to hunt

354
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this in sentinel query the unified audit log for office workload equals share point group

355
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by app ID count file downloaded over one hour windows and compare to the last 14 days app

356
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pits that spike without prior baseline are suspects next pull and trust sign ins where the

357
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same app ID access multiple users in 24 hours especially rolls tagged high value then correlate

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exchange mailbox audit for forwarding and delete rules within the same window that

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triad apps bike cross user access messaging blindfold is the lateral signature operational

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story fast a marketing manager account grants consent within hours unified audit shows

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a pd 9 f pulling 3000 files from three sites tied to sales and finance enter sign ins linked

362
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that apeed to four executives exchange shows a redirect rule on one execs mailbox to an

363
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external domain the playbook fires revokes the app removes rules forces signouts and isolates

364
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a device flagged for cookie theft tooling damage window under 20 minutes that's the standard

365
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but remember this policy closest doors before detection rings bells lock consent bind tokens

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segment access by device compliance your telemetry then becomes early warning not a post

367
00:20:25,400 --> 00:20:33,160
mortem hold the line detection engineering playbooks KQL and unified response offices we

368
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compressed dwell time now return telemetry into automatic action seconds matter minutes decide

369
00:20:40,120 --> 00:20:50,080
impact follow protocol objective is simple convert key signals into playbooks that cut access

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blind the adversary an alert command no manual heroics just disciplined automation core playbooks

371
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in sentinel first trigger consent to application or new high risk or scope action set revoke

372
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all grants for that apeed disable the service principle notify s o c and open an incident

373
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with high severity add a step to comment the event back into entrust audit trail for chain

374
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of custody second trigger external forwarding rule created or inbox rule that deletes

375
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or moves messages from security senders action set remove the rule block external forwarding

376
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if not on allow list send the user a security brief and force user sign out across sessions

377
00:21:41,520 --> 00:21:50,600
third trigger anomalous download volume by a pd in share point or files read all surge action

378
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set block the app in entra revoke refresh tokens for affected users quarantine the user session

379
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and if defender for endpoint shows cookie theft tooling on any linked device isolate that

380
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endpoint one alert full cut your KQL hunting pack is your radar keep it lean keep it lethal

381
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entra audit focus audit logs where activity display name in consent to application add service

382
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principle credentials update application project time generated initiated by target resources

383
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result unified audit focus office activity where office workload in share point exchange

384
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summarize events count by pd office workload bin time generated one h join kind left

385
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untie allow listed apps on app it sign in focus sign in logs where authentication requirements

386
00:22:58,080 --> 00:23:08,000
exe satisfied summarize countries account location details country or region devices

387
00:23:08,000 --> 00:23:18,640
decount device detail device ID by user principle name bin time generated one h where countries

388
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one or devices one tie these to watch lists maintain three approved app it's high value

389
00:23:26,000 --> 00:23:32,040
users allowed forwarding domains your analytics should cross check every alert against these

390
00:23:32,040 --> 00:23:39,680
lists to auto prioritize and act entra id policies that break the chain activate them

391
00:23:39,680 --> 00:23:45,600
disable user consent enforce the admin consent workflow require phishing resistant MFA like

392
00:23:45,600 --> 00:23:51,120
phydo 2 or windows hello for high value users turn on token protection for exchange and

393
00:23:51,120 --> 00:23:57,000
share point were available set sign in frequency for sensitive workloads and disable persistent

394
00:23:57,000 --> 00:24:03,320
browser sessions on risky profiles conditional access must require compliant device for exchange

395
00:24:03,320 --> 00:24:09,880
and share point access block sign in with medium or high risk these settings convert identity

396
00:24:09,880 --> 00:24:15,280
posture into a shield defender integrations complete the perimeter enable defender for

397
00:24:15,280 --> 00:24:22,000
cloud apps or op app governance it will surface high permission apps anomalous use and risky

398
00:24:22,000 --> 00:24:28,560
publisher patterns turn on alerts for high impact scopes mass downloads and unusual tenants

399
00:24:28,560 --> 00:24:35,840
per app spreads in defender for identity use lateral path insights tied to service principle

400
00:24:35,840 --> 00:24:42,160
activity links bikes and graph calls from new app it's to identity anomalies when either

401
00:24:42,160 --> 00:24:49,200
fires let Sentinel own the response common gaps and fixes no app governance enable all

402
00:24:49,200 --> 00:24:55,920
all governance and approvals flat conditional access segment by workload user risk and device

403
00:24:55,920 --> 00:25:02,800
state no allow list deploy the app it watch list and enforce it in every analytic and playbook alerts

404
00:25:02,800 --> 00:25:09,920
without action waste time action without tuning causes noise we require both operational drill

405
00:25:09,920 --> 00:25:18,080
consent to application event lens for a non allow listed appied analytic fires playbook revokes

406
00:25:18,080 --> 00:25:25,360
grants disables the app forces signouts for the user and posts a briefing to sec ops in parallel

407
00:25:25,360 --> 00:25:34,000
a second analytic sees file downloaded surge tied to that appy the playbook blocks the app sign in

408
00:25:34,000 --> 00:25:41,600
revokes refresh tokens for all impacted users and opens a unified incident defender for endpoint

409
00:25:41,600 --> 00:25:47,760
flags a cookie theft tool on one machine isolation executes containment under five minutes

410
00:25:47,760 --> 00:25:54,640
that's our standard before we close remember the hierarchy policy blocks detection reveals

411
00:25:54,640 --> 00:26:02,320
automation cuts hunting confirms reporting educates this order holds the line

412
00:26:02,880 --> 00:26:09,840
the one step breaker and your orders if you remember nothing else bind tokens and kill

413
00:26:09,840 --> 00:26:17,920
consent sprawl controls that act before attackers replay identity your orders disable user consent

414
00:26:17,920 --> 00:26:25,040
and enforce the admin workflow now turn on token protection and risk based conditional access

415
00:26:25,040 --> 00:26:31,360
with compliant device required for exchange and share point deploy Sentinel playbooks for consent

416
00:26:31,360 --> 00:26:38,240
events external forwarding and anomalous downloads tied to appied run the KQL hunts today

417
00:26:38,240 --> 00:26:44,960
purge unsanctioned apps and brief executive mailboxes with step up authentication hold the line