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Hackers breach Microsoft open source projects to inject credential stealing malware

Feeds.4Sysops •IT News • June 8, 2026

Microsoft recently disabled access to dozens of open-source repositories on GitHub following a supply chain attack. The breach targeted projects primarily related to Azure cloud services and various AI development tools used within VS Code. Attackers successfully injected malicious code designed to exfiltrate passwords and sensitive credentials from developers who utilized the compromised tools. Source

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This article is one source in a clustered incident — the cluster page carries the summary, timeline and every other outlet covering it.

GitHub Breach: 3,800 Internal Repositories Compromised via Malicious VS Code Extension On May 20, 2026, GitHub confirmed a significant security breach involving a poisoned Visual Studio Code (VS Code) extension that compromised an employee's device. The attack, attributed to the TeamPCP hacking group, resulted in the exfiltration of approximately 3,800 internal repositories. GitHub's initial assessment indicated that the breach did not affect customer data stored outside its internal systems. The malicious extension was promptly removed, and GitHub initiated an incident response, including credential rotation. TeamPCP is reportedly offering the stolen data for sale on cybercrime forums, demanding at least $50,000. The breach highlights vulnerabilities in developer tools and the potential for significant impacts on software supply chains. GitHub is continuing to monitor for any follow-on activity as the investigation progresses. 111 sources 68

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Hackers breach Microsoft open source projects to inject credential stealing malware

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