PUBlished on
July 25, 2023
updated on
November 5, 2025

The Power of Audit Logs: Critical Lessons from the Recent Storm-0558 Threat

OBSIDIAN THREAT RESEARCH TEAM

Earlier this month, Microsoft and CISA reported the discovery of a recent advanced persistent threat (APT), Storm-0558, which gained access to Exchange and harvested corporate emails. The threat actor group responsible managed to gain access to exchange data via Outlook Web Access (OWA) API, using an access token obtained by exploiting vulnerabilities in the Microsoft ecosystem related to token exchange and signature validation. They started with a stolen authentication key created for a different purpose.

How was it detected?

What’s interesting about this breach scenario is what led to the investigation and eventual discovery of the sophisticated threat. Although Microsoft ultimately found the APT, it was a Microsoft customer who first alerted on and investigated anomalous events of MailItemsAccessed through the Microsoft audit log.

When it comes to sophisticated attacks such as this, people often assume that they primarily leverage 0-day vulnerabilities, making them near impossible to defend against. Discovering a 0-day exploit is challenging, but it isn’t the only way to detect an APT. Bad actors seldom carry out an entire attack chain using only 0-days (via server-side RCE or SQLI, etc.). To reduce cost and effort, they will likely return to the standard service path at some point. Inevitably, this leaves a trace of activity at the application level, making it far less difficult to detect the threat.

To help visualize this, imagine a thief breaking into your home using a key mold to unlock your front door. You have no way of knowing where or when they obtained this mold. Regardless, the security camera flags and tracks the activity the moment they step foot on your property. You are alerted once they attempt to open your door.

The same was true for this incident. After exploiting a few 0-day vulnerabilities, the threat actors eventually returned to the standard service path, OWA API, leaving MailItemsAccessed records in audit logs that eventually found them out.

How to harness audit log intel at scale

In this particular example, the audit log showed signs of anomalous activity and suspicious events that were then linked to key validation and token exchange exploits after an internal investigation of Microsoft. The logs could have just as easily hinted at other vulnerabilities that lead to identity theft such as XSS. With constant monitoring and assessment in place, audit logs can provide a powerful source of information for your threat detection and investigation efforts.

Obsidian’s industry-leading threat and posture capabilities for SaaS make it possible to identify and investigate threats quickly—before a material data breach occurs.

If you’re concerned about the security of Microsoft or any other central SaaS platforms such as Salesforce, Google Workspace, ServiceNow, or Workday, Obsidian Security is offering a no-cost risk assessment to help teams better understand the risks present in their environment.

Learn more about this risk assessment program and apply here.

Frequently Asked Questions (FAQs)

What was the Storm-0558 threat and how did it impact organizations?

Storm-0558 refers to an advanced persistent threat (APT) group that compromised Microsoft Exchange environments by exploiting vulnerabilities related to token exchange and signature validation. Using a stolen authentication key, the attackers accessed corporate emails via the Outlook Web Access (OWA) API and harvested sensitive data. This breach highlights the risks posed by complex token-based authentication systems in cloud environments.

How was the Storm-0558 breach detected despite its sophistication?

The breach was initially detected thanks to a Microsoft customer who noticed anomalous activity in the Microsoft audit logs, specifically through unusual MailItemsAccessed events. While the attackers used advanced techniques, their actions left traces at the application level, allowing security teams using audit logs to identify suspicious behavior and investigate further.

Why are audit logs important for detecting advanced threats like Storm-0558?

Audit logs provide detailed records of user and application activities, making it possible to spot unusual access patterns or suspicious events that may indicate a security incident. Even when attackers use 0-day vulnerabilities or advanced evasion techniques, their activities eventually interact with standard service paths—leaving detectable traces in audit logs that can trigger alerts and aid in investigations.

How can organizations effectively use audit logs to improve threat detection?

Organizations should implement continuous monitoring and regular assessment of audit logs to identify abnormal activity and potential threats. Leveraging tools like Obsidian Security's SaaS threat and posture platform can enhance visibility across SaaS applications, enable rapid detection of compromise, and support precise incident investigation with clear timelines and actionable recommendations.

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