ConnectWise Pulls Cloud Backup Feature as MSP Supply-Chain Risks Grow

ConnectWise has temporarily disabled cloud backups after researchers reported attackers using its credentials to log into Microsoft 365 tenants. The company has not confirmed any customer impact from the incident.
ConnectWise has temporarily disabled a cloud backup feature. The decision came after researchers reported that attackers used ConnectWise credentials to log into Microsoft 365 tenants. ConnectWise has not confirmed any customer impact. The headline places the action against a backdrop of growing supply-chain risks for managed service providers, a category referenced in the story. No further details about the incident, the affected feature, or the researchers' findings were provided in the available material.
The temporary loss of cloud backup could leave some MSP customers without an expected recovery option, though ConnectWise has not confirmed customer impact. If credentials tied to a vendor can be used against Microsoft 365 tenants, organizations relying on that vendor may face heightened uncertainty. The incident may prompt MSPs and their clients to review access controls and vendor dependencies. Broader effects could include reduced trust in managed services, but any societal impact remains uncertain.