Last updated on
June 19, 2025

OneDrive Security Risks: Microsoft Grants Full Access to Third-Party Apps

Kim Tran

Highlights:

How One Click Leads to OneDrive Data Exposure

Security concerns surrounding Microsoft OneDrive have recently surfaced. Researchers found that numerous third-party app permissions, including for popular services like Slack, ClickUp, Trello, and ChatGPT, are overly broad and grant them full access to users' OneDrive files.

This issue stems from the OneDrive File Picker's OAuth permissions, which allow these applications to access all content in a user's OneDrive account, even when only a single file is uploaded. So hey, technically it’s not entirely your fault.

The urgency here is that employees can connect these tools with just a click, and rarely are thinking of the repercussions or security impact. So the overpermissions can quickly spiral.

Understanding File Picker OAuth Scopes

OneDrive File Picker simplifies the process of connecting your web apps to documents stored in OneDrive. It speeds up file access and sharing, but this convenience can come with security trade-offs.

The OneDrive File Picker requests read access (Files.Read for your own files or Files.Read.All for files shared with you) to the entire drive, due to the lack of granular OAuth scopes. As shown in the example below, an action like this could grant ChatGPT access to all your files (including PII, financial records, and intellectual property). 

Users are prompted for consent during uploads, but the prompt lacks clarity about how much access is actually granted. On top of this, users rarely read all the fine print. Between the two—ease of integration and minimal warning of what is being shared—employees are often agreeing to more than they realize.

This puts organizations that allow third-party applications to access OneDrive at risk of data breaches and compliance violations… because GenAI tools, once authorized, can quickly scan, find, and exfil data in real time. We aren’t talking about weeks or days! We’re talking about seconds. In the wrong hands, that’s all it takes for a smart tool to become a smarter adversary.

In OneDrive, the attackers can exploit this access to steal, alter, or encrypt data that’s stored. Additionally, the latest version of the OneDrive File Picker requires developers to manage user authentication using a tool that stores sensitive credentials insecurely in the browser, increasing the risk of unauthorized access. 

How Obsidian Security Flags and Fixes Excessive App Access

Obsidian Security identifies which applications have overly permissive scopes, so you can regain control and rest easy at night. 

Obsidian offers several useful tools to help you manage your security posture. One of the key features is the Posture Management Module.

With Obsidian’s SSPM solution, you can define custom rules that flag applications requesting sensitive permissions like Files.Read and Files.Read.All. This helps security teams proactively monitor for excessive access and enforce least privilege principles across integrated tools.

Once saved, Obsidian will generate a list of all applications requesting those scopes, giving you clear visibility into potential access risks.

There’s also the Integration Risk Management (IRM) module in Obsidian. IRM gives security teams the option to quickly filter and review applications based on the permissions they’ve been granted—such as Files.Read or Files.Read.All—to identify potential overexposure and take corrective action. As we know, over permissioned apps can pose serious risks. 

Once selected, you should see a clear list of all applications requesting those scopes. You can take action where it’s needed and only ensure the right apps have the right level of access. 

Strengthen Your SaaS Posture with Obsidian Security

SaaS security is a team sport that requires alignment across IT, security, and all business units. It is important to:

Visibility and collaboration are key to staying secure. Obsidian is here to help. Contact us today to learn more.

Frequently Asked Questions (FAQs)

What is the OneDrive File Picker OAuth flaw and why is it a security risk?

The OneDrive File Picker OAuth flaw refers to overly broad permissions granted to third-party apps when users connect them to their OneDrive accounts. Instead of limiting access to a single file, permissions like Files.Read.All can let these apps access all files within a user's OneDrive, exposing sensitive data. This over-permissiveness significantly increases the risk of data exposure and potential breaches.

How do third-party app permissions expose data in OneDrive?

When employees authorize third-party apps—even with a single click—they may unknowingly grant these apps access to their entire OneDrive storage, not just specific files. Many apps request broad permissions such as Files.Read.All, allowing them to view, copy, or even exfiltrate sensitive data like PII or intellectual property, which can lead to compliance violations and security incidents.

Why are "one-click" integrations with OneDrive considered risky?

"One-click" integrations allow employees to quickly connect apps to OneDrive, often without fully understanding the extent of access they’re granting. Consent prompts during the integration process lack clarity about the scope of permissions, making it easy for users to unintentionally overexpose company data in a matter of seconds.

How can organizations identify and manage over-permissive app access to OneDrive?

Organizations can use tools like Obsidian Security to flag and manage apps with excessive permissions. Obsidian identifies which applications have been granted broad scopes, such as Files.Read and Files.Read.All, and provides custom rule features to monitor, review, and restrict unnecessary or risky access to organizational OneDrive data.

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