ConnectWise has suspended its Cloud Backup service after attackers exploited compromised application identities to gain unauthorized access to numerous customer Microsoft 365 tenants. The attackers leveraged a credential belonging to ConnectWise Cloud Backup (formerly SkyKick) to sign into customer environments, inheriting its permissions. ConnectWise has disabled several application identities as part of its ongoing investigation. This incident highlights a significant supply-chain risk for MSPs and their clients.