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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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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.
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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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IT Help Desk Impersonation Lets Hackers Bypass MFA
Arctic Wolf tracks PREY-0058 posing as IT help desk to steal Microsoft 365 sessions via AiTM panels, then extorting executives after SaaS data theft.
Arctic Wolf documented a threat cluster tracked as PREY-0058 that impersonates internal IT help desk staff by phone, luring Directors, VPs, and executives to authentication-themed URLs formatted as victim-organization lure domains. Adversary-in-the-middle panels intercept credentials and MFA approvals, and stolen sessions are replayed through residential proxies such as NodeMaven from IPs matching the victim's geo-location and ASN, defeating impossible-travel alerts. Attackers perform discovery against SharePoint and Entra ID, then harvest data from OneDrive, Exchange, and Box before issuing extortion demands. Defenders are advised to require managed devices, use phishing-resistant MFA like FIDO2, enable Continuous Access Evaluation, and monitor sign-ins, SharePoint SearchQueryPerformed, and MailItemsAccessed events.
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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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Risky Bulletin: BEC campaign steals €35 million from French notaries
Hackers stole over €35 million from 500+ French notary offices in a four-year BEC campaign; ANSSI spent two years helping evict the attackers.
A business email compromise campaign breached more than 500 French notary offices — about 7% of all French notaries per the Conseil Supérieur du Notariat — over four years, stealing more than €35 million by phishing initial access and silently modifying wire transfer details. France's cybersecurity agency ANSSI worked for two years behind the scenes to help notaries remove the persistent attackers, who had deep access; officials also feared hackers could issue fake notarized acts such as marriage certificates or forged real estate deals. No forged documents have been found so far, but notaries have added two-factor authentication and in-person requirements for banking details, and banks added extra checks in 2024. The newsletter also notes other incidents, including a $320 million Bitcoin extraction from Blockstream's Liquid Network and a JetBrains Cadence breach via TeamCity servers.
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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.
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ThreatsDay Bulletin: Claude Security Plugin, Azure Priv-Esc, Kali365 MFA Bypass, FIFA Scams +15 More
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⚡ Weekly Recap: NFC Fraud, Curly COMrades, N
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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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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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Smishing Triad Hackers Use JWR Phishing Kit to Steal Cards, OTPs and Bank Credentials
Group-IB attributes large-scale smishing using the JWR real-time phishing kit to the Smishing Triad's Outsider cluster, harvesting card data, OTPs, and bank credentials.
Group-IB attributes a large-scale SMS phishing campaign to Outsider, an operator sub-cluster within the Smishing Triad phishing-as-a-service ecosystem, using a kit dubbed JWR. The Vue 2-based platform maintains real-time WebSocket communication with operators, enabling them to adapt pages live and harvest roughly 70 PII fields, card data, PINs, OTPs, identity document images, and digital wallet credentials via a dedicated PayPal sub-funnel. Unit 42 previously tied 194,345 malicious domains across 136,933 root domains to the broader operation since January 2024. Defenders can hunt for /api/open/ endpoints, /webSocket/QT/ paths, JWR-prefixed storage artifacts, and a hard-coded WebSocket token.
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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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ClickFix attacks infecting PCs and Macs are going viral
ClickFix social engineering attacks are spreading widely, delivering malware to Windows and macOS users by tricking them into running malicious terminal commands that bypass Gatekeeper.
BlueVoyant reports the Lorem Ipsum malware operation pivoted to ClickFix in late May 2026, dropping code-signing infrastructure and broadening its victim pool from Microsoft Teams searchers to anyone browsing a compromised website. Jamf and independent researchers documented macOS ClickFix variants that bypass Gatekeeper protections. Cisco Talos observed attackers abusing published Google Sheets for control traffic, while Netskope counted 5,400 sites beaconing to one campaign; Sandworm has separately hosted control infrastructure in blockchain smart contracts.
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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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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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FBI raises alarm over deceptive phishing campaign targeting prominent people
The FBI warns of an ongoing OAuth consent phishing campaign granting attackers persistent access to high-profile victims' cloud accounts without passwords.
The FBI says attackers impersonate government officials, journalists and event coordinators on commercial messaging apps to trick prominent individuals, their families and acquaintances into authorizing malicious OAuth applications on Microsoft or Google cloud services. Once approved, attackers gain persistent access to emails, files and other sensitive data; the access survives password changes and bypasses MFA, and can only be revoked by invalidating the OAuth token in security settings. The campaign has been tracked since late 2025, and the FBI advises independently verifying senders and granting access only to trusted applications.
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