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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

Fake CAPTCHA Scams

Bruce Schneier examines fake CAPTCHA scams that abuse human-verification prompts as social engineering lures against users.

Bruce Schneier's blog post covers fake CAPTCHA scams, a social engineering technique in which attackers pose as CAPTCHA verification checks to manipulate users. The available page text is largely site navigation, and no specific campaign, victim, or malware family is named in the source.

Schneier on Security · 1d agoPhishing & fraud

Most Fraudulent Hires Receive Credentials Before Detection

HYPR report finds 42% of fraudulent hires pass screening and receive corporate credentials, averaging 5.73 days of unmonitored network access before detection.

A HYPR study of 500 US HR executives found 42% of fraudulent candidates pass pre-hire screening and get hired, with only 3% detected on their hire day and 20% remaining undetected up to three weeks. This gives fraudulent hires an average of 5.73 days of unmonitored corporate network access, and 98% of surveyed executives said they had experienced candidate fraud firsthand. The report follows a September 9 CISA update to its Insider Threat Mitigation Guide warning that malicious actors use AI tools to obtain remote IT jobs, a tactic long used by North Korean actors for data theft and extortion.

Infosecurity Magazine · 1d agoPhishing & fraud

TerminalFix Uses Fake Cloudflare CAPTCHAs to Deploy Reverse

Microsoft details TerminalFix, a ClickFix variant using fake Cloudflare CAPTCHAs to make users run PowerShell payloads with reverse-tunnel implants.

Microsoft disclosed TerminalFix campaigns that direct users to run commands in Windows Terminal or PowerShell instead of the Run dialog, increasing the chance multi-line scripts execute. Compromised websites serve fake Cloudflare CAPTCHA verifications; the resulting PowerShell command downloads a ZIP with legitimate LockScreenContentServer.exe and rogue dui70.dll for DLL sideloading, retrieves payloads hidden in PNG images from attacker domains, persists via Registry Run keys and scheduled tasks, and performs domain trust and Active Directory reconnaissance. A Python-based reverse-tunnel implant (client.py) tunnels arbitrary TCP traffic over an encrypted WebSocket to gitnow[.]dev:443, giving attackers network-level proxy access that could enable privilege escalation, security-tool tampering, data theft or ransomware. Microsoft recommends AppLocker restrictions, PowerShell script block logging and ClickFix awareness training.

The Hacker News · 18d agoPhishing & fraud in the wild1

Cortex XDR™ Detects New Phishing Campaign Installing NetSupport Manager RAT

Cortex XDR threat hunters uncovered a phishing campaign delivering the NetSupport Manager RAT via a fake password-protected NortonLifelock Word document.

Unit 42 identified a January 2020 phishing campaign using a Microsoft Word document disguised as a password-protected NortonLifelock file. Enabling macros triggered an obfuscated command that built alpaca.bat in the temp directory, which used msiexec to download an MSI payload from quickwaysignstx.com, filtered on the Windows Installer user-agent string. The payload installed a PowerShell script and the campaign, which has delivered NetSupport Manager RAT since at least 2018, showed related activity dating back to early November 2019.

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

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.

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