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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

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.

GBHackersupdated · 6d agofirst · 6d agoPhishing & fraud in the wild 2 sources

US Finance Under Phishing Pressure: What the SOC Data Reveals?

ANY.RUN SOC telemetry shows escalating phishing campaigns against US finance, including Vercel-hosted RMM attacks abusing legitimate services.

ANY.RUN analyzed SOC telemetry data on phishing targeting the US financial sector, concluding that the scale and security impact should not be understated. The analysis highlights modern campaigns such as Vercel-hosted attacks that deliver remote monitoring and management (RMM) tools. It notes that attackers increasingly abuse legitimate services and everyday workflow tools to deliver phishing, making detection harder for SOC teams.

ANY.RUN · 22d agoPhishing & fraud in the wild

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

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.

The Hacker News · 12d agoPhishing & fraud in the wild1

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).

The Hacker News · 4d agoPhishing & fraud in the wild2

US Becomes Top Target in RMM Phishing Campaign Spanning 46 Countries

ANY.RUN linked 601 RMM-tool phishing cases across 46 countries, with the US the top target at 45% of observed activity.

A phishing campaign that tricks victims into installing legitimate remote monitoring and management (RMM) software spans 46 countries, with around 45% of observed activity targeting the United States, according to ANY.RUN. Lures include Canada Revenue Agency tax forms, UPS shipping notices, Adobe PDF pages, Social Security Administration themes and invoices, delivered through rapidly rotated Vercel, GitHub Pages and Netlify infrastructure. Researchers identified 425 kit URLs across 240 hosts, 94% of which appeared for only a single day, while stable kit indicators such as font1.woff2 and the secure.html to project/*.zip chain tie the infrastructure together.

The Hacker News · 14d agoPhishing & fraud in the wild