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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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Detect and disrupt AI-themed attacks with Microsoft Defender
Microsoft Threat Intelligence reports criminal campaigns impersonating ChatGPT, Copilot, Claude, and DeepSeek in phishing, AiTM, and malvertising attacks reaching 100,000 emails daily.
Microsoft Threat Intelligence observed a growing set of campaigns that abuse trust in popular AI brands: a ChatGPT-themed phishing campaign sent up to 100,000 emails in one day to steal payment card data, and a Claude-themed campaign used adversary-in-the-middle techniques to harvest credentials and access tokens. Other campaigns included malvertising for a fake AI Windows plugin delivering the Vidar stealer and fraudulent DeepSeek installers distributed via GitHub. Initial access broker Storm-3075 used AI-themed malvertising to distribute payloads for multiple downstream actors, and Microsoft notes the AI services themselves were not compromised. Microsoft also details Defender protections such as Safe Links, Safe Attachments, and attack disruption against these multi-stage lures.
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The sexy AI-powered dating app scams are here
Anthropic exposed a network of roughly 28 AI-driven dating apps using autonomous personas and gig workers to defraud paying users.
Anthropic threat intelligence uncovered a fraud network of around 28 dating apps after a prepaid account sent over 100,000 Claude API requests daily, with most chats run by autonomous AI personas and no human agent. Researchers Matthew Gore-Kormanik and Anthropic's Chris Cronbaugh documented apps including Dora, Romi, and Doni, which monetize conversations via coins; gig workers were hired only to pass liveness checks and select pregenerated replies. An operations manual written in Chinese was found inside the Doni app, and Anthropic published findings in its September 2026 AI misuse report.
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ClickFix attacks are tricking Mac and Windows users into hacking themselves
ClickFix campaigns trick users into pasting terminal commands via fake CAPTCHAs; latest wave abused HBO Max's hacked Reddit account to push infostealer ads.
ClickFix attacks use fake CAPTCHA or anti-bot prompts on hacked or counterfeit websites to convince victims to copy a command into Windows Command Prompt or macOS Terminal, instantly installing infostealers that steal passwords, logged-in sessions, and crypto wallets. The latest campaign compromised HBO Max's official Reddit account to post hundreds of fake ads linking to a spoofed HBO Max page carrying the lure, per researchers at Hudson Rock. It is unclear how many users were compromised. Because execution happens in the terminal, many attacks evade antivirus tools; enterprises can block terminals domain-wide and Mac users can deploy BlockBlock.
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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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Attackers call employees’ personal phones to break into Microsoft 365 accounts
Microsoft tracks vishing campaigns by Storm-3121 and Storm-3032 that impersonate IT staff, phish Microsoft 365 credentials, and steal cloud data.
Microsoft Security Research has tracked a campaign since May 2026 in which attackers call or text employees' personal phones posing as IT staff, using passkey/MFA/SSO lures to run adversary-in-the-middle phishing or device-code authentication flows. Attackers register their own MFA methods for durable persistence, abuse Microsoft Graph for tenant discovery, and download SharePoint, OneDrive, and Exchange data below 1,000 files or emails per hour to avoid detection. Microsoft attributes initial access to actors including Storm-3121, which feeds ShinyHunters and Falcon extortion operations, and Storm-3032, the Helix extortion operation descended from BlackFile.
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Hackers Impersonate IT Support on Microsoft Teams to Take Control of Employee PCs
Microsoft warns of a human-operated campaign where attackers pose as IT support in Teams to gain remote PC control and reach domain controllers.
Microsoft Threat Intelligence observed attackers abusing Microsoft Teams external collaboration to impersonate IT/helpdesk staff, persuading employees to grant screen control via Quick Assist or RMM tools. Operators deploy malicious MSI packages via silent msiexec, run encrypted JavaScript implants through portable Node.js, and persist via EdgeUpdate Run keys or Startup folder entries. The Node.js backdoor uses HTTPS long-polling C2, captures screenshots, enumerates Active Directory, and moves laterally over WinRM (TCP 5985) to domain controllers and certificate authorities. Initial access maps to MITRE ATT&CK T1566.003 (Spearphishing via Service); no Teams vulnerability is exploited.
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BigBear 2.0 phishing campaign hijacks Microsoft 365 sessions after MFA
CloudSEK uncovered BigBear 2.0, a PhaaS operation that captured 4,148 Microsoft 365 session cookies, hijacking authenticated sessions after MFA via AiTM proxy.
CloudSEK infiltrated the BigBear 2.0 phishing-as-a-service panel in June, finding 5,137 credential records tied to 461 organizations in over 40 countries, including 4,148 captured session cookies and 474 completed post-MFA logins. The operation, built on Evilginx2, uses an attacker-controlled reverse proxy to steal authenticated session cookies and residential proxies to defeat location-based Conditional Access checks, while custom code disables FIDO2/WebAuthn on phishing pages. At least five affiliates operated 42 VPS nodes, with IT services and managed service providers the most targeted sector.
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BigBear Microsoft 365 phishing service bypassed MFA at 258 organizations
CloudSEK found the BigBear 2.0 phishing-as-a-service platform bypassed MFA at 258 organizations and captured over 5,000 Microsoft 365 credentials.
CloudSEK researchers gained administrator access to the BigBear 2.0 phishing-as-a-service control panel and found it had exfiltrated 5,137 credential records, including 474 completed MFA-bypassed authentications, 1,032 plaintext passwords, and 4,148 session cookies across 3,331 victim IPs in 40+ countries. The Evilginx2-based AitM proxy intercepts credentials and authenticated session cookies, and custom JavaScript interferes with FIDO2/WebAuthn to force weaker authentication. The panel is leased to at least five affiliate operators via Telegram exfiltration bots, and geo-matched residential proxies cover 69 countries to evade detection.
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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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⚡ Weekly Recap: NFC Fraud, Curly COMrades, N
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