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Scam Attacks Taking Advantage of the Popularity of the Generative AI Wave
Unit 42 finds about 225 generative AI-themed domains registered daily since ChatGPT's launch, with nearly 29 percent suspicious, fueling scams and PUP delivery.
Palo Alto Networks analyzed new domain registrations containing generative AI keywords such as chatgpt, prompt, and sora since ChatGPT's November 2022 launch, observing around 225 GenAI-related registrations per day. About 28.75 percent of these domains are suspicious, a rate 22 times higher than for general new domains, with registration spikes aligning with milestones like Bing ChatGPT integration, the GPT-4 release, new GPTs, and OpenAI's Sora announcement. Over 72 percent of the domains use gpt or chatgpt keywords, and gpt domains show a 76 percent suspicious rate. Case studies cover PUP delivery, spam distribution, and monetized domain parking, with 35 percent of traffic to these domains directed at suspicious ones.
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ASCII smuggling crosses over from AI prompt injection to phishing evasion
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.
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Search results are sending people to fake Bitrefill checkouts
Scam sites impersonating Bitrefill's crypto checkout appear in search results, tricking victims into sending up to $1,990 in crypto directly to scammers.
Malwarebytes documents a cluster of lookalike domains copying Bitrefill's gift card checkout, surfaced via search engine results rather than email. Victims choose an amount up to $1,990 and pay in Bitcoin, Ethereum, USDC, USDT, Solana, or Litecoin to scammer-controlled addresses, with no recourse since crypto payments are irreversible. Domains use typosquatting and Punycode/IDN homoglyph tricks, and the fake sites run commercial analytics software to measure and optimize victim conversion. Bitrefill's security team is working with takedown specialists to remove the sites.
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Network Abuses Leveraging High-Profile Events: Suspicious Domain Registrations and Other Scams
Unit 42 found scammers surge deceptive domain registrations around major events like the 2024 Paris Olympics to run phishing and counterfeit merchandise scams.
Unit 42 analyzed newly registered domains (over 200,000 detected daily from zone files, WHOIS, and passive DNS) containing event-specific keywords, using the 2024 Paris Summer Olympics as a case study. Threat actors register lookalike domains to sell counterfeit merchandise, push fraudulent services, and run phishing, as previously seen with COVID-19-themed and fake ChatGPT tool scams. The article recommends monitoring domain registrations, DNS and URL traffic trends, textual patterns, and verdict change requests to catch event-themed abuse early.
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Operation Falcon II: Unit 42 Helps INTERPOL Identify Nigerian Business Email Compromise Ring Members
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BigBear 2.0 Evilginx2 Phishing Campaign Bypasses Microsoft 365 MFA With Session Cookie Theft
CloudSEK identified BigBear 2.0, an Evilginx2-based AiTM phishing operation stealing Microsoft 365 MFA session cookies, hitting 461 organizations across 40-plus countries.
The campaign proxies Microsoft sign-in pages to capture credentials and authenticated session cookies, enabling session replay into email, Teams, SharePoint, OneDrive, and connected SSO applications. CloudSEK's June 2026 discovery found 5,137 stolen records, 1,032 passwords, and 4,148 session cookies tied to 3,331 victim IPs, linked to operator 'General Boss' across 42 VPS nodes. The operation targeted IT services and managed service providers, used country-matched residential proxies, and involved at least five affiliates.
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Hackers Use Passkey-Themed Phishing to Hijack Microsoft 365 Accounts and Steal Cloud Data
Microsoft reports passkey-themed phishing campaigns hijacking Microsoft 365 accounts via AiTM and device-code flows, then exfiltrating cloud data.
Microsoft researchers identified passkey-themed phishing across cloud intrusions observed since May 2026, where callers posing as IT support direct victims to lookalike sign-in pages. The flows include adversary-in-the-middle phishing and device-code authentication, letting attackers capture usable sessions even when MFA succeeds, followed by rogue MFA registration for persistence. Attackers enumerate tenants via Microsoft Graph and collect SharePoint, OneDrive, and Exchange data at rates below 1,000 items per hour; lure domains include passkeyhelpdesk.com and setupmypasskey.com.
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ApateWeb: An Evasive Large-Scale Scareware and PUP Delivery Campaign
Unit 42 uncovers ApateWeb, a campaign using over 130,000 domains and multilayered redirects to deliver scareware, adware and PUPs to millions of users.
Unit 42 discovered ApateWeb, a large-scale campaign using a network of more than 130,000 domains to deliver scareware, potentially unwanted programs, adware including a rogue browser and browser extensions, and scam pages. The campaign uses a three-layer structure with deceptive emails as the entry point, centralized victim tracking via UUIDs, intermediate adware or anti-bot redirections, and evasion tactics such as cloaking, bot detection error pages, and wildcard DNS abuse. Activity spiked since August 2022, with several hundred attacker-controlled sites remaining in Tranco's top 1 million rankings and millions of monthly hits; Unit 42 blocked an estimated 3.5 million sessions across 74,711 devices in November 2023.
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Hackers Pose as IT Support to Hijack Microsoft 365 Accounts With Fake Passkey Alerts
Microsoft warns of vishing campaigns by Storm-3121 and Storm-3032 hijacking Microsoft 365 accounts via fake passkey alerts, adding attacker-controlled MFA and exfiltrating cloud data.
Microsoft Security Research has tracked the campaign since May 2026: callers posing as IT helpdesk staff tell employees to urgently update passkeys, MFA, or SSO settings via domains such as add-passkey[.]com and contoso[.]add-passkey[.]com. The lures lead to adversary-in-the-middle phishing or device-code authentication flows that yield credentials, session tokens, or OAuth tokens, after which attackers enroll their own MFA methods for persistence and run Microsoft Graph reconnaissance. They then collect SharePoint, OneDrive, and sometimes Exchange Online data at deliberately low rates (often under 1,000 files or messages per hour), with python-httpx seen in high-volume file access. Microsoft attributes initial access tradecraft to Storm-3121 and Storm-3032, linked respectively to ShinyHunters/Falcon and BlackFile/Helix extortion operations.
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Phishing Campaign Sends Millions of Emails Using Invisible Unicode to Evade Filters
Microsoft warns of a high-volume phishing campaign using invisible Unicode characters to split keywords like 'funding' and evade filters, peaking at 2.37 million daily messages.
Microsoft's Security Research team documented a high-volume phishing operation inserting deprecated Unicode Tags characters (U+E0000-U+E007F) inside financial keywords such as 'funding' so literal-string and regex email filters stop matching them. The campaign ran on a weekly cadence with 1-2.37 million weekday messages between February and May 15, 2026, peaking on February 26, 2026. It used hundreds of disposable finance-themed sender domains and relayed mail through ActiveCampaign's click-tracking infrastructure (acemlnd[.]com, activehosted[.]com), lending legitimate platform reputation. Microsoft ties the activity to an AI-assisted SBA loan phishing campaign that Fortra's FIRE team disclosed in September 2025.
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Attackers Use Passkey Phishing to Hijack Microsoft Cloud Accounts and Exfiltrate Data
Microsoft details two campaigns: million-email CEO impersonation ACH fraud and passkey-themed vishing that hijacks Microsoft cloud accounts for data theft and extortion.
Microsoft disclosed a campaign that sent over one million CEO-impersonation scam emails between August 3-5, 2026, targeting U.S. accounts payable departments with fake ServiceNow subscription invoices to induce ACH transfers, using generative AI to tailor templates. A second campaign detected since May 2026 uses passkey/MFA-themed voice phishing posing as the IT help desk, redirecting victims via SMS to counterfeit Microsoft sign-in pages and adversary-in-the-middle or device-code flows to hijack accounts. Post-compromise activity includes adding attacker-controlled authentication methods, high-volume Microsoft Graph activity, SharePoint and OneDrive downloads, and mailbox collection via REST APIs. Microsoft attributes initial access to Storm-3121 (linked to ShinyHunters and Falcon extortion) and Storm-3032 (UNC6671, a BlackFile splinter operating the Helix extortion brand).
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Passkey-themed phishing attacks lead to Microsoft 365 data theft
Microsoft links ShinyHunters- and Helix-affiliated actors to passkey-themed vishing and device-code phishing that compromises Microsoft 365 accounts and steals cloud data.
Microsoft attributes passkey- and SSO-themed social engineering activity, observed since May 2026, to Storm-3121 (linked to ShinyHunters and Falcon) and Storm-3032 (tied to BlackFile members now operating as Helix). Attackers impersonate corporate IT help desks by phone or SMS, urging fake passkey, MFA, or SSO updates and directing victims to adversary-in-the-middle phishing pages or device-code authentication flows that yield credentials, session tokens, and OAuth tokens. Post-compromise behavior includes Microsoft Graph enumeration of users, SharePoint, and OAuth grants, plus persistence via attacker-controlled MFA methods. Google Threat Intelligence tracks related activity as UNC6671, linked to the BlackFile, Helix, Falcon, Pink, and Redact extortion gangs.
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Hackers Use AI-Assisted CEO Emails to Trick Finance Teams Into Sending $50,000 Payments.
Microsoft tracked a million-message AI-assisted BEC campaign impersonating executives with fake ServiceNow invoices to steal ~$50,000 ACH payments.
Microsoft detected over one million messages in a BEC campaign running August 3-5, using AI-assisted phishing templates, executive impersonation, and fabricated ServiceNow subscription invoices to trick finance teams into authorizing fraudulent ACH payments of roughly $50,000. The US received 87.7% of volume. Attackers used lookalike domains like service-nowinc[.]com registered just days before delivery, with no compromise of ServiceNow itself. Telltale signs included verbose HTML comments, uniform formatting, and inconsistent forwarded-message headers.
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Protecting organizations from AI-assisted executive impersonation and invoice fraud
Microsoft tracked a campaign of over one million AI-crafted CEO-impersonation emails seeking ~$50,000 ACH payments with fabricated ServiceNow invoices.
Between August 3 and 5, Microsoft detected a campaign of more than one million fraud emails, 87.7% of them targeting US enterprise users, sent through multiple third-party email delivery service accounts. The actor impersonated CEOs, CFOs, and presidents of targeted companies, urging accounts payable staff to process an ACH payment of nearly $50,000. Lures layered executive impersonation, lookalike domains, a fabricated ServiceNow 'Annual Subscription' invoice personalized to the recipient, and forged forwarded email threads; Microsoft found no evidence ServiceNow or the referenced executives were compromised. Microsoft observed indicators consistent with generative AI-assisted template creation, while leftover inconsistencies such as missing forwarding headers and mismatched display names gave defenders detection cues.
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GhostCode Phishing Kit Bypasses Microsoft 365 MFA to Hijack Accounts in 78 Seconds
eSentire identified GhostCode, a phishing kit abusing Microsoft 365 OAuth device-code sign-in to steal tokens and take over accounts in seconds.
eSentire analysts identified GhostCode in late August, a phishing kit that uses business contact-form messages and an NDA pretext to deliver a password-protected HTML attachment leading victims to a Microsoft device-code sign-in. Victims authenticate on legitimate Microsoft pages, letting the kit obtain a Primary Refresh Token in 32 seconds and register three devices in 78 seconds, with residential proxies matching the victim's location. The kit hides its redirect with encrypted addresses, junk data, and scanner-filtering challenges, and uses GHOSTnet-linked infrastructure during device enrolment. eSentire recommends blocking device-code authentication via Conditional Access, invalidating tokens, and reviewing newly enrolled devices.
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Hackers Impersonate CEOs in 1 Million Emails to Trick Employees Into $50,000 Payments
A BEC campaign sent over one million fake CEO invoice emails, mostly to US firms, urging ~$50,000 ACH transfers to attacker accounts.
Microsoft analysts tracked a business email compromise campaign that sent more than one million messages between August 3 and 5, with 87.7% targeting US recipients. Emails impersonated CEOs, CFOs, and presidents and carried fake ServiceNow-branded subscription invoices directing accounts-payable staff to make ACH transfers of nearly $50,000 to attacker-controlled accounts. No malicious attachments or malware were used, and researchers observed signs consistent with AI-assisted template development. Lookalike domains such as service-nowinc[.]com and third-party delivery accounts were used, while named firms like ServiceNow showed no evidence of compromise.
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Phishing Attacks Serve Browser-in-the-Browser Pages, Rogue RMM Persistence
Phishing emails with browser-in-the-browser fake Adobe pages trick users into installing rogue ScreenConnect clients granting persistent remote access.
Huntress SOC investigated two August incidents where phishing links led to fake CAPTCHA checks and Adobe PDF Reader lures rendered as browser-in-the-browser (BiTB) pages spoofing legitimate domains like get.adobe.com. Victims downloaded what they believed was Acrobat Reader but actually installed ScreenConnect.ClientSetup.exe from attacker infrastructure, yielding two rogue ScreenConnect clients with service-based persistence. The attacker used cmd.exe and curl to stage a second client connecting to 144.172.115.59, leveraged a ScreenConnect Trial Relay domain for stealth, and ran HideCursor.exe as a defense-evasion binary. Incident 2 arrived via AT&T Office@Hand (RingCentral), with both chains stopped before broader impact.
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