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Microsoft disabled over 70 open-source repositories after attackers injected password-stealing malware into its Azure and AI coding toolchains. This supply chain attack specifically targeted credentials used by developers of AI applications like Claude Code and VS Code, highlighting the critical risk of compromised dependencies in large-scale software ecosystems. The incident underscores the necessity for rigorous vetting of third-party code, particularly for tools that grant access to sensitive cloud infrastructure and customer data.
Microsoft’s open source tools were hacked to steal passwords of AI developers

Microsoft shut down dozens of GitHub code repositories for Azure and AI coding tools after a reported hack.
Microsoft has cut off access to dozens of its open-source projects hosted on GitHub as it investigates how hackers apparently breached the projects and injected password-stealing malware into the code. Many of the affected projects relate to Microsoft’s cloud service Azure and other tools used by developers…
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