I had a ticket open with a 3rd party Microsoft vendor that alluded to the possibility that the 'mydomain.mail.onmicrosoft.com' records were the reason for the spoofing attacks in how they are able to find that our domain/tenant exists in the M365 cloud. Then the attacker used the DirectSend for the attack. I opened a ticket with Microsoft to have those MX records updated since we don't own the .onmicrosoft.com domain. Why is it that we can't change those MX records? That would would help tremendously to ensure that ALL of our stuff is not pointing directly to the cloud.
With that being said, we personally follow and have strict SPF, DKIM, and DMARC in place and this attack STILL bypassed all of those. When I analyzed the message headers, they stated ALL failed... including ARC, and yet a couple of messages still go through. So anything regarding that DirectSend was protected by these is false.
Here's what I think we all need to see changed is the tenant lockdown... all tenants, need to be treated like an on-premise system. I get that there are things in place like Defender, Forefront, etc, but if I have a 3rd party (i.e Barracuda, Proofpoint, etc), and I want that to be front door, I should have the means and control to ensure ALL emails flow through only the front door. That's the way my on-premise is setup. There are no windows or other doors that it can be accessed. My tenant needs to be the same. Introducing features like this and have a 'default' inbound connector that a tenant admin cannot control or touch only leaves to more vulnerability. Yes I know Microsoft publishes articles on best practice and how to secure your tenant, but it should closed off completely by default. I shouldn't have to make changes in the defender portal anti-spam policies if I have other protections in place. I do have an inbound connector built to reject all emails coming directly to the tenant. In hindsight, I should not have to build that. I should not see messages quarantined in the Microsoft defender because of attempted access through an open protocol/port that I can't control or is on by default.