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Malicious Outlook add-in exposes cloud trust flaw

A rogue Microsoft Outlook add-in has been identified as the first known case of attackers weaponising Microsoft’s own extension ecosystem to gain persistent access to corporate mailboxes, exfiltrate sensitive data and establish covert command channels inside trusted cloud infrastructure.

Security researchers say the campaign marks a significant shift in tactics, exploiting Microsoft’s Office add-in framework rather than relying on traditional malware attachments or compromised credentials alone. By embedding malicious code within an Outlook add-in that appears legitimate and operates inside Microsoft 365, attackers effectively bypass conventional endpoint security tools designed to detect suspicious executables or network traffic.

The add-in, once installed, runs within the Outlook environment and leverages Microsoft Graph API permissions to access mailbox content. Analysts who examined the code found it capable of silently reading, copying and forwarding emails, harvesting authentication tokens and maintaining persistent access even after password resets. Because the add-in is authorised through Microsoft’s trusted infrastructure, its activity blends into normal cloud operations.

Cybersecurity specialists describe the technique as a “living off the platform” approach, where attackers exploit built-in cloud capabilities rather than deploying foreign binaries. This mirrors a broader trend in enterprise breaches in which adversaries abuse legitimate tools such as Azure Active Directory roles, OAuth applications and API integrations.

Outlook add-ins are designed to extend productivity, allowing third-party developers to integrate CRM systems, task managers or analytics services into users’ mailboxes. Administrators can deploy add-ins centrally across organisations. That convenience, researchers warn, creates a powerful vector if governance controls are weak or if users are tricked into granting permissions.

Investigators believe the malicious add-in was distributed through targeted phishing emails that persuaded victims to authorise what appeared to be a legitimate productivity extension. Once consent was granted, the attacker-controlled application gained delegated permissions under OAuth, enabling it to interact with the mailbox without triggering many of the alarms associated with malware infections.

Microsoft’s security architecture relies heavily on trust relationships between applications and tenants. OAuth consent grants are intended to provide flexibility and user autonomy. However, security teams have increasingly warned that malicious OAuth apps are becoming a preferred persistence mechanism. The novelty in this case lies in embedding the attack directly within the Outlook add-in model, which users are conditioned to trust.

Enterprise defenders face particular challenges because add-ins operate within Microsoft’s cloud boundary. Traditional endpoint detection and response systems monitor local processes, file writes and registry changes. A cloud-resident add-in communicating through official APIs produces little of that telemetry. Security monitoring must instead focus on anomalous API calls, unusual consent grants and behavioural patterns within Microsoft 365 audit logs.

Analysts note that the add-in’s command-and-control communications were routed through legitimate Microsoft domains, making network filtering ineffective. Rather than contacting suspicious external servers, the malicious code issued API requests that appeared indistinguishable from standard Outlook operations.

The discovery has prompted renewed scrutiny of cloud-native security practices. Experts argue that many organisations have migrated email and collaboration platforms to Microsoft 365 while retaining legacy security assumptions. Zero-trust strategies, they say, must extend to internal cloud ecosystems, not only to perimeter threats.

The attack also underscores the importance of conditional access policies and least-privilege principles. Administrators can restrict which applications may receive user consent, require admin approval for high-risk permissions and monitor OAuth app registrations. Yet adoption of these safeguards remains inconsistent across enterprises.

Industry observers point out that email remains a primary attack vector despite years of awareness campaigns. According to multiple cybersecurity firms, phishing continues to account for a substantial share of breaches globally. By shifting from malicious attachments to malicious integrations, attackers are adapting to tighter filtering of macros and executable files.

Microsoft has taken steps over the past few years to limit abuse of Office add-ins, including enhanced verification processes and stricter marketplace controls. However, not all add-ins originate from the official store; some can be sideloaded or deployed through tenant-level administration. That flexibility, while useful for enterprises, can be exploited if credentials are compromised.

Researchers involved in analysing the malicious add-in stress that the campaign appears targeted rather than indiscriminate. The victims identified so far include corporate users in sectors handling sensitive financial and strategic data. No widespread consumer impact has been reported, but investigators caution that the technique could be replicated by other threat actors.

Cyber risk specialists say the incident challenges the assumption that software supplied through major technology ecosystems is inherently safe. Supply-chain and trust-chain vulnerabilities have become a recurring theme in high-profile breaches over the past decade. From compromised update mechanisms to abused cloud permissions, attackers increasingly target the connective tissue of digital infrastructure.
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