A vital flaw in Microsoft's M365 Copilot made it possible for users to view confidential files without triggering audit logs, exposing serious security and compliance threats. The vulnerability was found in July 2024 and was made possible by taking advantage of a foundational flaw in the way Copilot processes audit logging. Under normal circumstances, file access through Copilot would be captured to help with traceability. Researchers found that it was enough to just not provide file links through Copilot to not log these access events—essentially deleting any record of the interaction. This flaw was not merely easily exploitable, but also likely to occur during routine usage, such that numerous organizations had truncated audit records unbeknownst to them. In heavily regulated industries such as healthcare or finance, where audit logs are essential for proving adherence to regulations such as HIPAA, such omissions constitute a drastic weakness. Audit trails are also crucial for internal investigations and court cases, making this bug particularly sinister. Even though it had been reported to Microsoft's Security Response Center (MSRC) on July 4th, the firm declined to allocate a CVE or alert customers, claiming a practice of only issuing CVEs for critical flaws, even though this particular one was labeled "important." Microsoft rolled out a quiet fix on August 17th, 2024, updating Copilot systems automatically. But organizations that had used Copilot before this patch may never be aware which file access events were not logged. The researcher who found the problem came forward after Microsoft refused to notify customers, which raised questions about the company's transparency in general. This case points to the dangers of using AI-powered tools for critical operations without independent logging procedures and the imperative of having strong, vendor-independent audit policies in the enterprise space.
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