The attack replaces the hardware's IOS, allowing for traffic to be secretly monitored and the further injection of malware.
Multiple memory corruption flaws look to be fixed with this month's Patch Tuesday offering.
The deal looks to strengthen online protection of data across Microsoft's cloud services.
The first hint of the new project comes from a job listing posted by the company.
The incident also highlights the growing trend of attackers using Big Data to access personal information.
Cumulative updates for Internet Explorer and Microsoft's newest browser Edge should be this month's top priorities.
Plus: Yahoo ads expose users to ransomware attack for four days.
The move will help to strengthen Office 365's security capabilities.
Microsoft releases a large security update, which includes four critically rated fixes for IE, Hyper-V and Windows.
Aside from the privacy issues, granting government agencies with access provides security holes for attackers to take advantage of, the MIT report argues.
The company said that it is being done to provide customers with control over which updates to install.
Microsoft argues that the problem would not be addressed due to the difficulty of exploiting the hole and the small possible target size of the vulnerability.
The FBI is investigating whether St. Louis Cardinals officials breached a private database of the Houston Astros.
Plus, Microsoft turns on HTTP Strict Transport Security for Internet Explorer 11.
A reported 53 issues were found in D-Link products and 22 in SOHO routers.