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name: detecting-azure-service-principal-abuse description: Detect and investigate Azure service principal abuse including privilege escalation, credential compromise, admin consent bypass, and unauthorized enumeration in Microsoft Entra ID environments. domain: cybersecurity subdomain: cloud-security tags:

azure
entra-id
service-principal
privilege-escalation
credential-abuse
detection
splunk
sentinel

version: '1.0' author: mahipal license: Apache-2.0 d3fend_techniques:

Token Binding
Restore Access
Application Protocol Command Analysis
Reissue Credential
Network Isolation

nist_csf:

PR.IR-01
ID.AM-08
GV.SC-06
DE.CM-01

mitre_attack:

T1078.004
T1098.001
T1528
T1550.001
T1098.003

Detecting Azure Service Principal Abuse

Overview

Azure service principals are identity objects used by applications, services, and automation tools to access Azure resources. Attackers exploit service principals for privilege escalation, lateral movement, and persistent access. Key abuse patterns include: adding credentials to existing principals, assigning privileged roles, bypassing admin consent, and enumerating service principals for attack paths. Application ownership grants the ability to manage credentials and configure permissions, creating hidden privilege escalation paths.

When to Use

When investigating security incidents that require detecting azure service principal abuse
When building detection rules or threat hunting queries for this domain
When SOC analysts need structured procedures for this analysis type
When validating security monitoring coverage for related attack techniques

Prerequisites

Azure subscription with Microsoft Entra ID P2 license
Access to Azure AD Audit Logs and Sign-in Logs
Microsoft Sentinel or Splunk for SIEM-based detection
Microsoft Graph API permissions for investigation
Global Reader or Security Reader role minimum

Key Abuse Patterns

1. New Credentials Added to Service Principal

Attackers add new client secrets or certificates to gain persistent access:

Detection Query (KQL - Sentinel):

kql

AuditLogs
| where OperationName has "Add service principal credentials"
    or OperationName has "Update application - Certificates and secrets management"
| extend InitiatedBy = tostring(InitiatedBy.user.userPrincipalName)
| extend TargetSP = tostring(TargetResources[0].displayName)
| extend TargetSPId = tostring(TargetResources[0].id)
| project TimeGenerated, InitiatedBy, OperationName, TargetSP, TargetSPId
| sort by TimeGenerated desc

Detection Query (SPL - Splunk):

spl

index=azure sourcetype="azure:aad:audit"
operationName="Add service principal credentials"
    OR operationName="Update application*Certificates and secrets*"
| stats count by initiatedBy.user.userPrincipalName, targetResources{}.displayName, _time
| sort -_time

2. Privileged Role Assignment to Service Principal

kql

AuditLogs
| where OperationName == "Add member to role"
| extend RoleName = tostring(TargetResources[0].modifiedProperties[1].newValue)
| where RoleName has_any ("Global Administrator", "Application Administrator",
    "Privileged Role Administrator", "Cloud Application Administrator")
| extend TargetSP = tostring(TargetResources[0].displayName)
| extend InitiatedBy = tostring(InitiatedBy.user.userPrincipalName)
| project TimeGenerated, InitiatedBy, TargetSP, RoleName, OperationName

3. Service Principal Enumeration Detection

kql

MicrosoftGraphActivityLogs
| where RequestMethod == "GET"
| where RequestUri has "/servicePrincipals"
| summarize RequestCount = count() by UserAgent, IPAddress, bin(TimeGenerated, 1h)
| where RequestCount > 10
| sort by RequestCount desc

4. Admin Consent Bypass

kql

AuditLogs
| where OperationName == "Consent to application"
| extend ConsentType = tostring(TargetResources[0].modifiedProperties[4].newValue)
| where ConsentType has "AllPrincipals"
| extend AppName = tostring(TargetResources[0].displayName)
| extend InitiatedBy = tostring(InitiatedBy.user.userPrincipalName)
| project TimeGenerated, InitiatedBy, AppName, ConsentType

5. OAuth App Permissions Escalation

kql

AuditLogs
| where OperationName == "Add app role assignment to service principal"
| extend AppRoleValue = tostring(TargetResources[0].modifiedProperties[1].newValue)
| where AppRoleValue has_any ("RoleManagement.ReadWrite.Directory",
    "Application.ReadWrite.All", "AppRoleAssignment.ReadWrite.All",
    "Directory.ReadWrite.All", "Mail.ReadWrite")
| extend TargetApp = tostring(TargetResources[0].displayName)
| project TimeGenerated, TargetApp, AppRoleValue, CorrelationId

Investigation Procedures

Step 1: Identify compromised service principal

powershell

# List service principals with recently added credentials
Connect-MgGraph -Scopes "Application.Read.All"
 
$suspiciousSPs = Get-MgServicePrincipal -All | ForEach-Object {
    $sp = $_
    $creds = Get-MgServicePrincipalPasswordCredential -ServicePrincipalId $sp.Id
    $recentCreds = $creds | Where-Object { $_.StartDateTime -gt (Get-Date).AddDays(-7) }
    if ($recentCreds) {
        [PSCustomObject]@{
            DisplayName = $sp.DisplayName
            AppId = $sp.AppId
            ObjectId = $sp.Id
            NewCredsCount = $recentCreds.Count
            LatestCredAdded = ($recentCreds | Sort-Object StartDateTime -Descending | Select-Object -First 1).StartDateTime
        }
    }
}
$suspiciousSPs | Sort-Object LatestCredAdded -Descending

Step 2: Review service principal role assignments

powershell

# Check role assignments for a specific service principal
$spId = "<service-principal-object-id>"
Get-MgServicePrincipalAppRoleAssignment -ServicePrincipalId $spId | ForEach-Object {
    $resource = Get-MgServicePrincipal -ServicePrincipalId $_.ResourceId
    [PSCustomObject]@{
        AppRoleId = $_.AppRoleId
        ResourceDisplayName = $resource.DisplayName
        CreatedDateTime = $_.CreatedDateTime
    }
}

Step 3: Check application ownership

powershell

# List owners of all applications (ownership = credential control)
Get-MgApplication -All | ForEach-Object {
    $app = $_
    $owners = Get-MgApplicationOwner -ApplicationId $app.Id
    foreach ($owner in $owners) {
        [PSCustomObject]@{
            AppName = $app.DisplayName
            AppId = $app.AppId
            OwnerUPN = $owner.AdditionalProperties.userPrincipalName
            OwnerType = $owner.AdditionalProperties.'@odata.type'
        }
    }
} | Where-Object { $_.OwnerUPN -ne $null }

Step 4: Review sign-in activity

kql

AADServicePrincipalSignInLogs
| where ServicePrincipalId == "<target-sp-id>"
| project TimeGenerated, ServicePrincipalName, IPAddress, Location,
    ResourceDisplayName, Status.errorCode
| sort by TimeGenerated desc

Preventive Controls

Restrict application registration

powershell

# Disable user ability to register applications
Update-MgPolicyAuthorizationPolicy -DefaultUserRolePermissions @{
    AllowedToCreateApps = $false
}

Configure app consent policies

powershell

# Require admin approval for all app consent requests
New-MgPolicyPermissionGrantPolicy -Id "admin-only-consent" `
    -DisplayName "Admin Only Consent" `
    -Description "Only admins can consent to applications"

Monitor with Microsoft Sentinel Analytics Rules

Create analytics rules for:

New service principal credential additions
Privileged role assignments to service principals
Bulk service principal enumeration
Admin consent grants to unknown applications
Service principal sign-ins from unusual locations

MITRE ATT&CK Mapping

Technique	ID	Description
Account Manipulation: Additional Cloud Credentials	T1098.001	Adding credentials to service principal
Valid Accounts: Cloud Accounts	T1078.004	Using compromised service principal
Account Discovery: Cloud Account	T1087.004	Enumerating service principals
Steal Application Access Token	T1528	OAuth token theft via service principal

References

Splunk Detection: Azure AD Service Principal Abuse
Semperis: Service Principal Ownership Abuse in Entra ID
MITRE ATT&CK Cloud Matrix
Microsoft: Securing service principals in Entra ID

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