Microsoft warns Chinese threat actors are using the Quad7 botnet to carry out password-spray attacks and steal credentials.Quad7 botnet, also known as CovertNetwork-1658, targets SOHO devices and VPN appliances.Chinese threat actors, including Storm-0940, are using credentials obtained from Quad7 botnet through password-spray attacks.Microsoft advises organizations to prioritize credential hygiene and harden cloud identities to defend against password spraying.