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International Business Times UK
International Business Times UK
Technology
Arcelie Fernandez

Microsoft Warns That China-Linked Hackers Unleash AI-Powered Cyberattacks on US Supply Chains

Microsoft warns that China-linked hackers are using AI-powered tools to accelerate cyberattacks, raising concerns over supply chain security and unauthorised access to cloud systems (Credit: ALDONA SZCZEPANIAK/FLICKR.COM)

Microsoft reported on 21 October that China-aligned hacking group Storm-0940 used an AI-powered penetration testing framework to automate attacks against organisations worldwide as early as September 2026. The company also assessed that Storm-0940 was responsible for a supply chain compromise involving a multi-tenant application associated with ConnectWise Cloud Backup.

The findings highlight the risks of interconnected business systems, where compromised third-party application access can expose customer environments. Microsoft said the campaign targeted hundreds of organisations across multiple industries, although most targeting attempts were unsuccessful.

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