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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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India’s STPI serves TerminalFix-style attack via fake Cloudflare check
India's STPI government website serves a spoofed Cloudflare verification page that preloads malicious commands into visitors' clipboards for execution in Windows Terminal, matching TerminalFix-style attacks.
A malicious external JavaScript on the ananta.stpi[.]in subdomain of India's Software Technology Parks of India displays a fake Cloudflare 'Verify you are human' prompt and silently writes a URL into the visitor's clipboard, instructing the user to paste and execute it in Windows Terminal. Researcher Vibhum Dubey reported the behavior to STPI and CERT-In; the script loads from the recently registered cdn[.]quickdelivr[.]com and assigns each visitor a unique session identifier. The malicious script remained embedded after the overlay briefly disappeared, and the destination URL was flagged as malicious by 17 VirusTotal engines. No attribution has been established, though the pattern matches Microsoft's TerminalFix, a variant of ClickFix.
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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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Inside Knight Office, a New M365 AiTM Phishing Kit
Huntress details Knight Office, a new AiTM phishing kit stealing Microsoft 365 session tokens and registering attacker-controlled devices.
Huntress investigated an August 18, 2026 adversary-in-the-middle attack using the Knight Office phishing kit, which captured Microsoft 365 session tokens via a DocuSign-style lure routed through a Monday.com tracking link and a compromised Joomla site. After token capture, the actor enrolled an unauthorized host in Microsoft Entra ID and bound a Windows Hello for Business key credential to the account. The kit's operator console, found at IP 104.37.188.94, is built on Python Flask and hosts at least 25 .vu phishing domains. Telemetry links the kit to at least nine token-replay logins in two weeks and roughly 700 reported lure emails since April.
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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.
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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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New Phishing Campaign Abuses Windows Mshta.exe to Steal Credentials and Secrets
Fortra researchers track an active phishing campaign targeting Spanish speakers that abuses mshta.exe to run HTA payloads for reconnaissance and credential theft.
Fortra's FIRE team says a phishing campaign active since June 2026 targets Spanish-speaking users with invoice ('Facturación') and judicial ('Aviso Judicial') lures, many sent via libero.it/italiaonline.it infrastructure with SCL:-1 markings to bypass anti-spam. Clicking embedded links delivers an HTA launcher executed via mshta.exe, which hides its window off-screen, builds dynamic C2 URLs, and performs reconnaissance using WMI, PowerShell, and environment-variable inspection. A second-stage JavaScript dropper uses HTML smuggling to reconstruct a Base64-encoded ZIP in the browser, delivering a 7-Zip self-extracting executable disguised as a Firefox installer; staged design allows later delivery of credential stealers or ransomware. Defenders are urged to block archivogratuito[.]online and shortener domains goo[.]su, abrir[.]link, and abre[.]ai, and to restrict mshta.exe execution via AppLocker or ASR rules.
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Microsoft sees some new wrinkles in invoice-scam emails
Microsoft researchers observed a BEC invoice scam sending 1M+ AI-assisted emails impersonating executives and ServiceNow to request ~$50,000 payments.
Microsoft researchers tracked a campaign of more than one million invoice-scam emails launched in early August, with about 88% of targets in the United States. Attackers impersonated top executives and ServiceNow, fabricating forwarded email threads and invoices to convince accounts payable teams to send payments of nearly $50,000. Microsoft found indicators such as extensive HTML comments and highly uniform template construction consistent with AI-assisted campaign development, though it could not independently establish how much content AI generated.
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Hackers Abuse Google Sheets as C2 in ClickFix Attacks to Steal Cryptocurrency
Cisco Talos tracks a ClickFix crypto-theft campaign using Google Sheets as C2 to swap deposit addresses in Chrome.
Cisco Talos uncovered a cryptocurrency theft campaign that abuses Google Sheets and the Google Visualization API as a covert C2 channel, delivering obfuscated JavaScript into victims' Chrome browser sessions via ClickFix-style social engineering. Victims are lured with a fake "API Logic Flaw" report promising 25-38% bonuses on SimpleSwap and SwapZone swaps; the injected payload acts as a browser-based web skimmer that replaces deposit addresses, overrides the fetch API, and hijacks the clipboard. Later variants use the legitimate Tampermonkey extension with a user script for persistence without OS-level compromise. Talos identified 49 Bitcoin wallets, with 24 reused addresses receiving about 0.159 BTC (~$10,000) before mixing through more than 3,000 addresses.
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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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X Money rollout linked to password-reset attacks
X is investigating bulk unsolicited password-reset emails as its X Money payments service expands, with no confirmed breaches or account takeovers yet.
X users began reporting unexpected password-reset emails and codes on September 1, and product engineer Mridul Singhai said attackers appear to believe newly widespread X Money access makes accounts worth targeting. X says it has found no evidence of any breach or successful account takeover, and completing a reset still requires access to the account's email or phone number. X Money offers eligible US users interest-bearing accounts, a Visa debit card, and P2P payments, with Cross River Bank providing banking infrastructure. Malwarebytes warns the reset flood can serve as cover for phishing and urges reset protection, 2FA, and unique passwords.
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Outsider Phishing Kit Survives Takedown With 700 New Pages
Group-IB found the Outsider phishing kit kept generating 700+ new phishing pages within a month of Operation Ghost Hook's takedown.
Group-IB linked the Outsider Phishing Kit, operated by a threat actor known as ChenLun, to more than 100,000 phishing pages across 54+ countries between December 2025 and May 2026. After the FBI, Google, and Lumen's Black Lotus Labs seized core admin servers, a Shopify storefront, about $100,000, and thousands of domains under Operation Ghost Hook in June, over 700 new phishing domains appeared within a month. The kit offered 267 templates, adversary-in-the-middle MFA interception, WebSocket-based live operator communication, and SMS delivery via a Telegram affiliate ecosystem with more than 5,000 subscribers.
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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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North Korean remote workers are broadening their job hunt beyond IT
Huntress links suspected North Korean remote workers to sales, marketing, and healthcare jobs using stolen identities, VPNs, proxies, and KVM hardware.
Huntress investigations identified suspected DPRK remote workers hired beyond IT in sales, marketing, and healthcare/financial organizations, sometimes actually performing the work they were hired for. Fraudulent documents included passports from the same city issued one day apart, ID cards with identical validity dates, and electricity bills built from the same online template with matching typos. A financial-services case found a PiKVM and Guermok USB capture card on a new hire's laptop within hours of delivery, suggesting a laptop farm, and another hire used a police mugshot with the photo digitally swapped. Researchers urge rigorous background checks and identity verification at the interview stage.
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