O365 Added Service Principal

name: O365 Added Service Principal
id: 1668812a-6047-11eb-ae93-0242ac130002
version: 13
creation_date: '2021-01-26'
modification_date: '2026-05-13'
author: Rod Soto, Splunk
status: production
type: TTP
description: The following analytic detects the addition of new service principal accounts in O365 tenants. It leverages data from the `o365_management_activity` dataset, specifically monitoring for operations related to adding or creating service principals. This activity is significant because attackers can exploit service principals to gain unauthorized access and perform malicious actions within an organization's environment. If confirmed malicious, this could allow attackers to interact with APIs, access resources, and execute operations on behalf of the organization, potentially leading to data breaches or further compromise.
data_source:
    - O365
search: |-
    `o365_management_activity` Workload=AzureActiveDirectory Operation="*Add service principal*" OR (Operation = "*principal*" AND action = "created")
      | fillnull
      | stats count min(_time) as firstTime max(_time) as lastTime
        BY signature dest user
           src vendor_account vendor_product
      | `security_content_ctime(firstTime)`
      | `security_content_ctime(lastTime)`
      | `o365_added_service_principal_filter`
how_to_implement: You must install splunk Microsoft Office 365 add-on. This search works with o365:management:activity
known_false_positives: The creation of a new Federation is not necessarily malicious, however these events need to be followed closely, as it may indicate federated credential abuse or backdoor via federated identities at a different cloud provider.
references:
    - https://www.fireeye.com/content/dam/fireeye-www/blog/pdfs/wp-m-unc2452-2021-000343-01.pdf
    - https://www.cisa.gov/uscert/ncas/alerts/aa21-008a
    - https://www.splunk.com/en_us/blog/security/a-golden-saml-journey-solarwinds-continued.html
    - https://blog.sygnia.co/detection-and-hunting-of-golden-saml-attack?hsLang=en
finding:
    title: User $user$ has created new service principal in AzureActiveDirectory
    entity:
        field: user
        type: user
        score: 50
analytic_story:
    - Office 365 Persistence Mechanisms
    - Cloud Federated Credential Abuse
    - NOBELIUM Group
asset_type: O365 Tenant
mitre_attack_id:
    - T1136.003
product:
    - Splunk Enterprise
    - Splunk Enterprise Security
    - Splunk Cloud
category: cloud
security_domain: threat