Catastrophic Failure COM Exception when creating SharePointOnlineCredentials

I'm attempting to instantiate a SharePointOnlineCredentials object (with my AD account details - these are synced with SharePoint online, so the same details I use to login to SharePoint online via the web).

This is in a .net 4.5 WPF client application, as well as within an MVC 4 web api application.

However, it throws a COM exception of Catastrophic Failure. It also does this with incorrect login credentials (such as a blank password).