New Attack Turned Microsoft 365 Copilot into Data Theft Tool | Sync Up

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A critical flaw in Microsoft 365 Copilot could have allowed attackers to pull sensitive information with a malicious link. We’ll explain what happened and what can be done to protect company data as we sit down and sync up with Rocket IT’s weekly technology update.

In this episode, you’ll hear more about:

  • How Microsoft 365 Copilot uses existing permissions to access company data
  • Why a recently fixed Copilot vulnerability highlights the importance of data governance
  • What businesses should review before giving AI tools access to Outlook, OneDrive, and SharePoint
  • How least privilege, file sharing controls, and employee awareness can help reduce risk
  • Why AI tools like Copilot work best when paired with clear security guardrails

Video Transcript

Microsoft 365 Copilot is built to help employees work faster across tools like Outlook, OneDrive, SharePoint, and Teams. It can summarize emails, search company files, draft content, and help users find information more quickly.

That usefulness depends on access. Copilot can only work with information a user is already allowed to see. But when an AI tool can reach email, documents, calendars, and shared folders, permissions become even more important.

Security researchers at Varonis recently found a vulnerability chain in Microsoft 365 Copilot Enterprise called SearchLeak. According to their notes, an attacker could create a malicious link that send instructions to Copilot through a search query.

If someone clicked that link, Copilot could be prompted to search through information the user had access to, such as emails, meeting details, OneDrive files, or SharePoint documents. From the user’s perspective, it may have looked like Copilot was simply loading. Behind the scenes, the attack could have attempted to send information back to the attacker.

The good news is that Microsoft has already fixed this specific issue, and there is no user action required to address it. But the bigger lesson is worth paying attention to. AI tools do not create access out of nowhere. They work within the access people already have. So, if employees have access to files they no longer need, old folders are overshared, or sensitive information is not properly protected, AI can make those gaps more visible.

That does not mean businesses should avoid tools like Copilot. It means they should prepare before rolling them out.

Start by reviewing who has access to sensitive files. Clean up old sharing links in SharePoint and OneDrive. Make sure confidential information is labeled correctly. And train employees to be cautious with unexpected links, even when they appear to open a trusted tool. This is also a good reminder of least privilege, which means employees should only have access to the information they need to do their jobs. When that principle is followed, tools like Copilot can be more useful without creating unnecessary exposure. AI can help teams save time and work more efficiently. But like any business technology, it works best when it is supported by clear policies, secure settings, and regular oversight. If your organization is exploring Microsoft 365 Copilot or wants help reviewing how company data is protected before rolling out AI, contact Rocket IT using the link in this video’s description. And to stay up to date on trending technology news, hit that subscribe button and bell to catch us on next week’s episode of Sync Up with Rocket IT.

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