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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

ThreatsDay: 296K IoT Botnet, 100+ Water Systems Targeted, SharePoint RCE Chain + 27 New Stories

Weekly ThreatsDay bulletin details a ShinyHunters-style social engineering hit on ReliaQuest, the 296,000-device Dysphoria IoT botnet, and several new malware families.

ReliaQuest confirmed a social engineering attack on August 22, 2026, in which an attacker used a fake SSO page and MFA push approval to gain brief view-only access to an identity dashboard, with tactics matching ShinyHunters, which has since listed the firm on its leak portal. The Shadowserver Foundation reported the Dysphoria botnet has compromised nearly 296,000 IoT devices for DDoS attacks and recently added residential proxy capability. Cisco Talos documented JWR, an operator-driven phishing-as-a-service framework linked to The Outsider that harvests credentials, identity documents, and 2FA codes over an encrypted WebSocket. New malware coverage includes the Octagon Android fraud bot ($1,400/month), the C2Looper Rust backdoor delivered via ClickFix, and the Aeternum loader that moved C2 to the Polygon blockchain.

The Hacker News · 15d agoMalware in the wild

NovaCookies Campaigns Abuse Genuine Docusign Notifications to Steal Microsoft 365 Sessions

NovaCookies AitM phishing kit, a Sneaky 2FA variant, uses genuine Docusign lures to steal Microsoft 365 sessions at hundreds of organizations.

Island disclosed NovaCookies, a $320/month adversary-in-the-middle phishing-as-a-service platform that relays Microsoft 365 sign-ins through attacker infrastructure to capture credentials, MFA codes, and authenticated sessions. Campaigns abuse genuine Docusign envelopes and Microsoft/Google redirect hops so each step looks legitimate, with lure domains on .vu and alternating-case labels such as PwPt-sHaRe. Proofpoint assesses NovaCookies as a Sneaky 2FA variant with added flows for Okta and Entra domains federated to GoDaddy, and a fully managed PhaaS model. It has targeted hundreds of organizations in the U.S., U.K., Canada, Germany, Israel, and the U.A.E., and is advertised via Telegram with anti-analysis checks like a Cloudflare gate.

The Hacker News · 15d agoPhishing & fraud

A Single Canadian Tax Lure Spread into a 46-Country, US-First RMM Campaign

A phishing campaign using fake Canada Revenue Agency tax documents has expanded to 46 countries, with 45% of activity targeting the US via RMM tools.

ANY.RUN analysis traced a campaign that began with fake Canada Revenue Agency (CRA) T4 tax documents and grew into a broader remote-access operation spanning 46 countries. The United States accounts for 45% of observed activity. Attackers impersonate trusted organizations and document types to trick victims into installing remote monitoring and management (RMM) tools.

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