GhostCode Abuses Microsoft Entra Device Enrollment to Maintain Access After Token Revocation
eSentire exposes GhostCode, a device-code phishing kit that abuses Microsoft Entra device enrollment to persist even after stolen tokens are revoked.
eSentire's Threat Response Unit observed GhostCode campaigns in late August 2026, using BEC-style social engineering that impersonated procurement staff, including BJ's Wholesale Club, via Salesforce contact forms. Victims received password-protected HTML lures disguised as a FlipBook document portal, with junk-data padding, HTML comment injection, and AES-256-GCM encrypted redirects gated by anti-bot checks. The kit exploits the OAuth 2.0 device authorization grant, prompting victims to approve real Microsoft device-code sign-ins with MFA. Within 78 seconds of approval, attackers registered three Entra devices and obtained a Primary Refresh Token, so rogue device registrations persist even after session token revocation.
Passkey-themed social engineering leads to identity and cloud compromise
Microsoft tracks ongoing cloud intrusions where passkey-themed helpdesk lures enable AiTM credential theft, MFA persistence, and SharePoint data theft.
Microsoft Security Research is tracking active cloud-based intrusions, observed since May 2026, that begin with helpdesk impersonation calls and SMS lures urging urgent passkey, MFA, or SSO updates. The lures lead to adversary-in-the-middle phishing or device-code authentication flows that capture credentials and session tokens or grant actor access, after which the actors add authentication methods, conduct Microsoft Graph reconnaissance, and download SharePoint and OneDrive content via REST APIs. Phishing domains embed victim organization names as subdomains (e.g., contoso.add-passkey[.]com), are often registered with Nicenic, and go operational within hours. Microsoft advises revoking sessions and removing unauthorized authentication methods for confirmed compromises.
TWINLOOT Abuses SharePoint and Teams to Steal Credentials and Move Across Networks
Ontinue disclosed TWINLOOT, a Python implant hiding C2 in SharePoint dead drops and Teams TURN relays, harvesting credentials and pivoting via reverse SOCKS5.
Ontinue's Cyber Defense Center identified TWINLOOT during a July 2026 campaign investigation: a modular, PyArmor-hardened Python implant (a 39 MB bootstrap-fat.pyc loader) whose entire C2 infrastructure lives inside trusted Microsoft services. Tasking flows through SharePoint Online file dead drops polled every 15 seconds via the Microsoft Graph API, while interactive operator access uses WebRTC DataChannels relayed by Microsoft Teams TURN servers; Graph traffic is driven by the victim's own headless Edge browser. The implant harvests Windows credentials with fake lock screens, offers a reverse SOCKS5 pivot for lateral movement to SMB, RDP, WinRM, and MSSQL, executes commands, and persists on hosts. Initial access is assessed to be Teams social engineering masquerading as IT support, prompting a PowerShell command to download the payload.
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).
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.
Zero-Click Grok Chat History Theft: Adversa AI Demonstrates Cryptographic Context Injection
Adversa AI's Cryptographic Context Injection bypasses AI guardrails using AES-encrypted payloads, enabling zero-click theft of Grok users' full chat histories.
Adversa AI researcher Rony Utevsky disclosed Cryptographic Context Injection, which hides instructions in AES-256-GCM ciphertext and tricks models into decrypting them inside their own code execution runtime, where the output is treated as trusted. Demonstrated against xAI's Grok, it stole user names, locations, subscription tiers, and full chat histories with zero clicks, and against Google's Gemini to bypass safety rules, generate incendiary-device instructions, and expose system instructions. Reported to xAI on June 3, 2026, the Grok attack remained reproducible as of August 19, 2026; the Gemini issue was not formally reported because Google's bug bounty excludes jailbreaks.
14 Trojanized npm Packages Drop RedC2 4.0 Linux Backdoor With AI
Trend Micro found 14 trojanized npm calendar utilities delivering RedC2 4.0, an AI-powered cross-platform backdoor sold for $99.99.
Trend Micro's TrendAI identified 14 functional but trojanized npm packages (streak-*, kit-map-vim, map-streak-kit) that load a bundled Linux implant, the RedShell beacon of RedC2 4.0, without requiring install hooks. RedC2 4.0, sold by Red Offsec for $99.99 and advertised on Hack Forums by actor MarlboroMan in June 2026, offers shell access, credential theft, SOCKS5 proxying, in-memory execution, and an LLM-driven component called Red Agent for natural-language post-exploitation. The framework has evolved from version 2.0 in August 2025 through 4.0, with the Linux beacon introduced in the latest release.