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Office 365 Small Business Email Hacked

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#1 JackOfSomeTrades


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Posted 09 July 2018 - 04:14 PM

I have already posted this at https://www.bleepingcomputer.com/forums/t/680378/office-365-email-hacked-please-advise-urgently/ but am now thinking that perhaps I posted in the wrong forum. I copy and pasted my 3 posts together, so it may read funny but all the info is there.
Hello my father's small crane rental business email account for Office 365 has been hacked and sent out emails to everyone he has communicated with. The emails contain some kind of falsified OneDrive link and is somewhat personalized our business as it's essentially pretending to be a crane vendor agreement of some kind. I would say it could very well be a hacking of our gmail account as we currently have that configured to send emails as though they come from our Outlook address, however I was able to locate the hacker's sent emails in the Office 365 folders on our Outlook desktop app and was unable to locate any in the gmail folders.
Backround information:
-We were recently forcefully migrated from Godaddy email servers to Office 365 servers and have yet to migrate over any form of contact list, so I am somewhat confused as to whether someone has the capability to automatically generate a contact list out of all of our communications to send the emails to. As it stands, I'm not even sure how I should go about emailing everyone that received the compromised email.
-We have also been victim recently (within the past 5 months) to a form of email-bombing that was an attempt to obscure fraudulent credit card purchases and we are still having issues sorting out quite a bit of junkmail from worldwide, but mostly russian sources.
-I have seen certain emails over the past year that make a strong attempt at targeting to our business but contain enough vagueness to be discerned as someone's attempt to get us to click on a certain attachment. The emails contain enough information to definitively appear to be personalized as opposed to being related to some form of mass emailing scam.
So as it stands, I have changed all passwords to what I would consider incredibly tough to hack, am going to enable a second form of authentication using my father's cell phone when I can see him next, and am in the process of tracking down any possible security questions that may have been compromised. I've also scanned the computer for viruses using MBAM and ESET. I would greatly appreciate any input from those well-schooled in this domain. I have read through certain articles that have suggestions on how to proceed, but am interested in hearing any more information that may be more pertinent to my situation.
Additionally, not only was a fraudulent email sent to everyone on our contact list, but an auto-reply was sent as well in an attempt to reassure whomever received the hacker's emails. This was all done over the course of an hour this morning prior to me changing all the passwords. The only evidence I have in the web application is an email that was responded to by one of the recipients that automatically ended up in my junk folder. The desktop application appears to only sync over the information from the sent emails but did not delete any evidence of them being sent, unlike the web application. 
I would like to point out that I would greatly like to know if there is any current news on how our password may have been compromised. I wouldn't put my dad above being capable of being phished, but he's aware of the possibility and appears to be taking care. I have heard recent vague references to Android phones being hacked in order to gain access to email services. Any probabilities as to how this occurred?
Thank you for your time.

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