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China-Linked Hackers Use ARTEX AI Agents in ConnectWise Supply Chain Attack

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Summary

Microsoft attributed the ConnectWise Cloud Backup supply chain compromise to Storm-0940, a China state-aligned actor, which used the closed-source ARTEX agentic AI penetration testing framework to automate scanning, password spraying and OAuth application abuse against hundreds of organizations since September 2026. Between October 10 and 14, 2026, its infrastructure ran a cross-tenant password-spray campaign against 327 accounts across eight organizations, and on October 15 the AI agents gained control of ConnectWise cloud application identities and used them to authenticate to customer environments.