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ASCII smuggling crosses over from AI prompt injection to phishing evasion

Microsoft Security Blogby Microsoft Security Research, Noam Kochavi and Sarah Wolstencroft ()13 min read4 · 2 reads
AI summary · glm-5.3-flashSummaries by Vani AI

Microsoft details high-volume phishing campaign using ASCII smuggling (Unicode tag chars) for filter evasion, peaking at 2.3M messages.

Microsoft researchers observed a high-volume finance-themed phishing campaign using invisible Unicode tag characters (U+E0000–U+E007F), a technique known from AI prompt injection research as ASCII smuggling, to split lure words like 'funding' and evade email filters. Telemetry from Microsoft Defender for Office 365 showed signature hits jump from roughly 21,000 messages on February 8, 2026 to more than 1.3 million on February 9, peaking above 2.3 million on February 11, with elevated weekday activity lasting approximately three months. The discovery emerged from prompt injection protection research, showing AI-era evasion techniques crossing into traditional phishing. Most messages were flagged by layered Defender protections rather than a single Unicode-specific signal.

Key facts
  • Phishing campaign used invisible Unicode tag characters to obfuscate financial lure keywords from filters.
  • ASCII smuggling technique originated in AI prompt injection/XPIE research and was repurposed for phishing evasion.
  • Signature hits rose ~two orders of magnitude from ~21,000 to 1.3M messages on Feb 9, 2026, peaking at 2.3M.
  • Activity remained elevated on weekdays for approximately three months.
  • Detection was discovered via Defender for Office 365 prompt injection hunting logic.
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Indicators of compromise

auto-extracted · verify before use · export allAll
TypeIndicatorContext
domainacemlnd.comssage body to route through its own click-tracking domains (acemlnd[.]com and activehosted[.]com), so the URLs the recipient clicks
domainacems10.comaped acems<N>[.]com and emsd<N>[.]com (e.g. emsd4[.]com, s9.acems10[.]com). Across the measured activity, ~98.5% of messages matche
domainactivehosted.come through its own click-tracking domains (acemlnd[.]com and activehosted[.]com), so the URLs the recipient clicks do not point at the br
domainadvancefundingboost.comusinessloanexpress[.]com 25,048 yourlocfunding[.]com 24,482 advancefundingboost[.]com 24,053 guardiancapitalway[.]com 23,921 harboradvancefundi
domaincatalystboostfunding.comrbusinessloans[.]com 20,444 directcapitalpulse[.]com 19,767 catalystboostfunding[.]com 19,519 elevatecapitalrush[.]com 19,395 fundingexpresscapi
domaincatalystcapitalharbor.comtcapitalboost[.]com 22,875 onlinedirectfinance[.]com 21,195 catalystcapitalharbor[.]com 21,130 rocketboostfunding[.]com 20,908 digitalrushcapital
domaindigitalcapitalboost.comomain Hits (Feb 9, 2026) guardiangrowthfunding[.]com 30,442 digitalcapitalboost[.]com 27,021 thebusinessloanexpress[.]com 25,048 yourlocfunding
domaindigitalrushcapital.comtcapitalharbor[.]com 21,130 rocketboostfunding[.]com 20,908 digitalrushcapital[.]com 20,796 guardianloccapital[.]com 20,781 guardianlocchoice[
domaindirectcapitalboost.comradvancefunding[.]com 23,595 unitedfundingwave[.]com 23,269 directcapitalboost[.]com 22,875 onlinedirectfinance[.]com 21,195 catalystcapitalha
domaindirectcapitalpulse.comuardianlocchoice[.]com 20,553 ourbusinessloans[.]com 20,444 directcapitalpulse[.]com 19,767 catalystboostfunding[.]com 19,519 elevatecapitalru
domainelevatecapitalrush.comcapitalpulse[.]com 19,767 catalystboostfunding[.]com 19,519 elevatecapitalrush[.]com 19,395 fundingexpresscapital[.]com 18,695 Table 1. Top 20
domainemsd4.comending pool , shaped acems<N>[.]com and emsd<N>[.]com (e.g. emsd4[.]com, s9.acems10[.]com). Across the measured activity, ~98.5%
domainfundingexpresscapital.comstboostfunding[.]com 19,519 elevatecapitalrush[.]com 19,395 fundingexpresscapital[.]com 18,695 Table 1. Top 20 (by signature hits) of the 148 fin
domainguardiancapitalway.comourlocfunding[.]com 24,482 advancefundingboost[.]com 24,053 guardiancapitalway[.]com 23,921 harboradvancefunding[.]com 23,595 unitedfundingwav
domainguardiangrowthfunding.comand the per-domain volume: Sender domain Hits (Feb 9, 2026) guardiangrowthfunding[.]com 30,442 digitalcapitalboost[.]com 27,021 thebusinessloanex
domainguardianloccapital.cometboostfunding[.]com 20,908 digitalrushcapital[.]com 20,796 guardianloccapital[.]com 20,781 guardianlocchoice[.]com 20,553 ourbusinessloans[.]
domainguardianlocchoice.comtalrushcapital[.]com 20,796 guardianloccapital[.]com 20,781 guardianlocchoice[.]com 20,553 ourbusinessloans[.]com 20,444 directcapitalpulse[.
domainharboradvancefunding.comcefundingboost[.]com 24,053 guardiancapitalway[.]com 23,921 harboradvancefunding[.]com 23,595 unitedfundingwave[.]com 23,269 directcapitalboost[
domainonlinedirectfinance.comtedfundingwave[.]com 23,269 directcapitalboost[.]com 22,875 onlinedirectfinance[.]com 21,195 catalystcapitalharbor[.]com 21,130 rocketboostfund
domainourbusinessloans.comrdianloccapital[.]com 20,781 guardianlocchoice[.]com 20,553 ourbusinessloans[.]com 20,444 directcapitalpulse[.]com 19,767 catalystboostfundi
domainrocketboostfunding.comrectfinance[.]com 21,195 catalystcapitalharbor[.]com 21,130 rocketboostfunding[.]com 20,908 digitalrushcapital[.]com 20,796 guardianloccapital
domainthebusinessloanexpress.comgrowthfunding[.]com 30,442 digitalcapitalboost[.]com 27,021 thebusinessloanexpress[.]com 25,048 yourlocfunding[.]com 24,482 advancefundingboost[.]
domainunitedfundingwave.comancapitalway[.]com 23,921 harboradvancefunding[.]com 23,595 unitedfundingwave[.]com 23,269 directcapitalboost[.]com 22,875 onlinedirectfinanc
domainyourlocfunding.compitalboost[.]com 27,021 thebusinessloanexpress[.]com 25,048 yourlocfunding[.]com 24,482 advancefundingboost[.]com 24,053 guardiancapitalwa
urlhttps://<account-id>.acemlnd.com/<tracking-token>s do not point at the brand domain at all – they look like: hxxps://<account-id>.acemlnd[.]com/<tracking-token> hxxps://<brand-subdomain>.activehosted[.]com/<tracking-to
urlhttps://<brand-subdomain>.activehosted.com/<tracking-token>k like: hxxps://<account-id>.acemlnd[.]com/<tracking-token> hxxps://<brand-subdomain>.activehosted[.]com/<tracking-token> Most of the flagged messages carried links associated wit

From the original article

13 min read at microsoft.com

Invisible Unicode characters popularized for hiding instructions from AI models are now being used to obfuscate words before email filters parse them. The post ASCII smuggling crosses over from AI prompt injection to phishing evasion appeared first on Microsoft Security Blog.

Microsoft Security Blog

By Microsoft Security Research, Noam Kochavi and Sarah Wolstencroft · microsoft.com

Read the full article at Microsoft Security Blog

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