In a recent revelation at Black Hat USA in Las Vegas, a concerning vulnerability in Microsoft’s Entra ID identity and access management service has come to light. This flaw could potentially give hackers leveraging an admin-level account unrestricted access to an organization’s entire cloud environment.
Eric Woodruff, a senior cloud security architect at Semperis, uncovered this critical issue and is scheduled to detail the attack at 4:20 p.m. local time at the Black Hat conference. The exploit involves manipulating authentication mechanisms within Entra ID to gain global administrator privileges, granting the attacker nearly limitless control over the organization’s cloud infrastructure.
With global administrator privileges, an attacker can infiltrate various connected services, such as Microsoft 365 and Azure, enabling them to access sensitive data and deploy malicious software. Woodruff aptly describes the scenario as akin to being a domain administrator in the cloud, emphasizing the broad scope of capabilities granted to a global administrator.
Entra ID plays a central role in managing and securing access across cloud applications and services for organizations utilizing Microsoft 365 and Azure. Within each organization, Entra ID represents users, groups, and applications as service principals with assigned roles and permissions.
The vulnerability identified by Woodruff arises from the ability of users with privileged roles to assign credentials directly to a service principal, allowing attackers to masquerade as targeted applications. By following the OAuth 2.0 client credential grant flow, attackers could exchange credentials for tokens to access resources within the cloud environment.
During his research, Woodruff pinpointed three application service principals capable of executing unauthorized actions with varying severity. The vulnerabilities assigned by the Microsoft Security Response Center range from medium to high severity, emphasizing the critical nature of the issue.
Of particular concern is the vulnerability in the Device Registration Service, which allows privilege escalation to the global administrator level. This flaw allows individuals with lesser administrative roles to potentially elevate their privileges, posing a significant security risk within organizations.
Upon reporting the findings to Microsoft, Woodruff discovered that hidden authentication mechanisms facilitated the attack, prompting the company to implement new controls to prevent unauthorized privilege escalation using service principals. Despite these efforts, it remains unclear whether this vulnerability has been exploited in real-world scenarios.
Woodruff advises organizations to monitor Entra ID audit logs and watch for lingering attacker credentials to detect potential breaches. However, he warns that these methods are not foolproof, as logs may expire over time, and attackers can conceivably cover their tracks retroactively.
This latest security revelation underscores the importance of robust cloud permissions management and the need for organizations to bolster security measures around application administrators. As cyber threats continue to evolve, maintaining vigilance and implementing comprehensive security protocols are essential to safeguarding sensitive data and infrastructure from potential exploits.

