A major security flaw in tech giant Microsoft’s (MSFT) SharePoint servers has led to a fast-growing number of breaches, according to Dutch cybersecurity firm Eye Security. In just a few days, the number of affected companies and government agencies jumped from about 60 to roughly 400. Most victims are located in the United States, but other countries, including Mauritius, Jordan, South Africa, and the Netherlands, have also been impacted. Worryingly, among those compromised is the U.S. National Nuclear Security Administration, which manages the country’s nuclear weapons program.
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Microsoft has linked the attacks to several Chinese state-backed hacking groups known as Linen Typhoon, Violet Typhoon, and Storm-2603. These groups reportedly exploited the vulnerability to steal keys that allow them to impersonate users or services, which potentially gave them deep access to networks. Although Microsoft has issued security patches, experts warn that hackers may already have footholds in many systems. Cybersecurity analysts also note that such attacks often begin with targeted espionage but can spread widely once the vulnerability becomes publicly known.
Even though the most sensitive nuclear data is stored on isolated networks, experts warn that less-protected information — such as details about nuclear materials — may have been exposed. As a result, the breaches are adding more strain to already tense U.S.-China relations over hacking and trade. While U.S. officials accuse China of running large-scale espionage campaigns, Chinese officials deny involvement and say they oppose all hacking. Unsurprisingly, the issue is expected to come up during the upcoming trade talks between the two countries.
Is MSFT Stock a Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on MSFT stock based on 31 Buys and three Holds assigned in the last three months. Furthermore, the average MSFT price target of $550.63 per share implies 9% upside potential.
