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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.

Microsoft Security Blog · 13d agoPhishing & fraud in the wild1

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.

Cyber Security News · 9d agoPhishing & fraud in the wild1

ASCII smuggling isn't just an AI security risk

Microsoft tracked a phishing campaign peaking at 2.37 million daily messages that hid financial-lure keywords with invisible Unicode tag characters to evade filters.

Microsoft researchers uncovered a large phishing campaign that inserted invisible Unicode tag characters (e.g., U+E0020) inside common financial keywords like 'funding', splitting words so keyword, signature, and regex matches fail. The campaign peaked at more than 2.37 million messages in late February 2026, ran from about 150 finance-themed sender domains on a strict weekday-only schedule, and gradually declined to under 20% of peak weekday volume by late March, with residual spikes through mid-June. The technique repurposes ASCII smuggling, normally used for indirect prompt injection against AI assistants, for traditional email phishing evasion. Microsoft advises defenders to strip or fold invisible Unicode code points before content matching and to watch for bulk weekday spikes from churning finance-themed domains.

The Register · Security · 12d agoPhishing & fraud in the wild1

iAuthFlow v2: The $10,000 Phishing Toolkit That Survives Your Password Reset

Abnormal Security details iAuthFlow v2, a $10,000 phishing kit that enrolls attacker-controlled passkeys on Google accounts, persisting through password resets.

Abnormal Security analyzed iAuthFlow v2, a phishing toolkit sold on a Russian-language cybercrime forum for a $10,000 base price with additional capability modules sold separately. Using a browser-in-the-middle relay behind a trycloudflare.com subdomain with valid TLS, it captures Google logins and uses the authenticated session to enroll an attacker-controlled passkey within six seconds of login. Because the passkey persists after password changes and session revocation, operators regain mailbox access even after victims reset credentials. The build examined targets Google, while the seller advertises versions for Microsoft, iCloud, and LinkedIn.

Security Affairs · 24d agoPhishing & fraud1

The Smishing Deluge: China-Based Campaign Flooding Global Text Messages

Unit 42 attributes a global smishing campaign with 194,000+ phishing domains impersonating tolls, banks, and couriers to the Smishing Triad.

Palo Alto Unit 42 attributes ongoing smishing texts about toll violations and package misdelivery to the Smishing Triad, targeting U.S. residents since April 2024. Researchers identified 194,345 FQDNs across 136,933 root domains registered since January 2024, mostly via Hong Kong registrar Dominet (HK) Limited with Chinese nameservers and hosting concentrated on U.S. cloud services. The decentralized campaign impersonates banking, cryptocurrency, e-commerce, healthcare, law enforcement, and social media services, and its scale points to a large phishing-as-a-service operation. Phishing pages harvest national ID numbers such as Social Security numbers, home addresses, payment details, and login credentials.

Palo Alto Unit 42 · Aug 17, 2026Phishing & fraud in the wild1