Microsoft suspends GitHub repositories after AI developer credential theft
Dozens of open source projects disabled as malware designed to steal passwords is discovered in tools used with AI coding applications.
Microsoft has temporarily disabled at least 70 open source projects hosted on GitHub following the discovery of malware injected into the code. The breach affects tools associated with the company’s Azure cloud service and various applications used by developers to code with artificial intelligence, including Claude Code, Gemini’s command line interface, and Visual Studio Code.
Security firms Cloudsmith and OpenSourceMalware were among the first to identify the compromise, noting that the malicious code is designed to steal user passwords and sensitive credentials when developers open the affected tools within their AI coding environments. The specific number of individuals who have downloaded the compromised software remains unknown.
Microsoft spokesperson Ben Hope confirmed the removals, stating that the company had temporarily pulled the repositories to investigate potential malicious content. Hope noted that while some repositories have been restored following review, others remain offline as the investigation continues. The company has notified a small number of customers who may have pulled down content from the affected projects but did not provide a total figure for those impacted.
This incident marks Microsoft’s second known compromise of its open source projects in recent weeks. In mid-May, security researchers reported that the Durable Task project was hacked. Security analysts and OpenSourceMalware have suggested that the latest attack may be a re-compromise of the Durable Task project, implying that the initial breach was not fully eradicated, or it could represent a distinct new breach.
The event is classified as a supply chain attack, a method that targets code widely used in software products or by users with access to cloud systems and customer data. While sole developers of open source projects are frequently targeted, it is considered rare for large technology giants with significant defensive resources to fall victim to such intrusions. GitHub has displayed messages on the affected project pages indicating that access was disabled due to a violation of terms of service.
