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NATION-STATE ACTOR USED STOLEN OKTA CREDENTIALS IN THANKSGIVING ATTACK,
CLOUDFLARE SAYS

Senior executives at networking giant Cloudflare said a suspected nation-state
attacker used credentials stolen from Okta to breach the company’s systems in
late November.

In a blog post Thursday afternoon, Cloudflare CEO Matthew Prince and others said
the company detected on Thanksgiving Day a threat actor on its self-hosted
Atlassian server.

“Our security team immediately began an investigation, cut off the threat
actor’s access, and on Sunday, November 26, we brought in CrowdStrike’s Forensic
team to perform their own independent analysis,” Prince said.

The CrowdStrike investigation, which was completed Wednesday, found that the
threat actor did reconnaissance from November 14 to 17 and accessed several
internal systems, including their internal wiki and their bug database.

The hacker came back on November 20 and 21, gaining access to Cloudflare’s
source code management system.

The actor attempted to access other systems using access tokens and service
account credentials that were stolen during a widely-publicized October breach
at Okta.

All of the hacker’s access to Cloudflare systems was shut off on November 24.

“Even though we understand the operational impact of the incident to be
extremely limited, we took this incident very seriously because a threat actor
had used stolen credentials to get access to our Atlassian server and accessed
some documentation and a limited amount of source code,” Prince wrote.

“Based on our collaboration with colleagues in the industry and government, we
believe that this attack was performed by a nation state attacker with the goal
of obtaining persistent and widespread access to Cloudflare’s global network.”

According to Prince, the company began a wide-ranging effort to ensure the
hackers did not have persistent access to any other systems. Cloudflare’s
investigation, as well as Crowdstrike’s, revealed that the hacker behind the
incident was likely “looking for information about the architecture, security,
and management” of Cloudflare’s global network.

Cloudflare rotated every production credential — about 5,000 of them — and
physically segmented test and staging systems in an effort to “prevent the
attacker from using the technical information about the operations of” their
network as a way to get back in.

The company also replaced hardware used in a data center in São Paulo that the
hacker tried to get into.

“This was a security incident involving a sophisticated actor, likely a
nation-state, who operated in a thoughtful and methodical manner. The efforts we
have taken to ensure that the ongoing impact of the incident was limited and
that we are well-prepared to fend off any sophisticated attacks in the future,”
Prince added.

The incident revived stiff criticism Cloudflare had of Okta about its October
incident, where hackers “gained unauthorized access to files inside Okta’s
customer support system associated with 134 Okta customers.” In addition to
Cloudflare, security companies like 1Password and BeyondTrust were affected.

Okta is a major single sign-on provider that allows people to use one account to
log into multiple digital services.

Despite being told by multiple cybersecurity company customers that there was an
issue, Okta waited weeks before addressing the incident. After the attack was
uncovered, Cloudflare said Okta needed to “take any report of compromise
seriously and act immediately to limit damage.”

Cloudflare slammed Okta for allowing the hacker to stay in its systems from
October 2 to October 17 despite being notified by BeyondTrust. Cloudflare also
called for “timely, responsible disclosures” to customers after breaches are
identified.

At the time, Cloudflare published its own blog notifying customers that hackers
tried to attack their system on October 18 using an authentication token
compromised at Okta. An investigation found that no Cloudflare customer
information or systems were impacted.

“This is the second time Cloudflare has been impacted by a breach of Okta’s
systems. In March 2022, we blogged about our investigation on how a breach of
Okta affected Cloudflare. In that incident, we concluded that there was no
access from the threat actor to any of our systems or data – Cloudflare’s use of
hard keys for multi-factor authentication stopped this attack,” Cloudflare said
last October.

Okta eventually defended the delay in its discovery, attributing it to mistakes
made in identifying the hacker’s activities.

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Tags
 * okta
 * Cloudflare
 * Data breach

Previous articleNext article
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Jonathan Greig



Jonathan Greig is a Breaking News Reporter at Recorded Future News. Jonathan has
worked across the globe as a journalist since 2014. Before moving back to New
York City, he worked for news outlets in South Africa, Jordan and Cambodia. He
previously covered cybersecurity at ZDNet and TechRepublic.


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