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Protecting organizations from AI-assisted executive impersonation and invoice fraud

Microsoft tracked a campaign of over one million AI-crafted CEO-impersonation emails seeking ~$50,000 ACH payments with fabricated ServiceNow invoices.

Between August 3 and 5, Microsoft detected a campaign of more than one million fraud emails, 87.7% of them targeting US enterprise users, sent through multiple third-party email delivery service accounts. The actor impersonated CEOs, CFOs, and presidents of targeted companies, urging accounts payable staff to process an ACH payment of nearly $50,000. Lures layered executive impersonation, lookalike domains, a fabricated ServiceNow 'Annual Subscription' invoice personalized to the recipient, and forged forwarded email threads; Microsoft found no evidence ServiceNow or the referenced executives were compromised. Microsoft observed indicators consistent with generative AI-assisted template creation, while leftover inconsistencies such as missing forwarding headers and mismatched display names gave defenders detection cues.

Microsoft Security Blog · 5d agoPhishing & fraud1

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 · 12d agoPhishing & fraud in the wild

Impersonating IT support: how threat actors turn a remote session into enterprise-wide access

Microsoft details Teams IT-support impersonation campaigns deploying Node.js implants, AD reconnaissance, and WinRM lateral movement toward domain controllers.

Microsoft Threat Intelligence describes a human-operated campaign where attackers impersonate IT/helpdesk staff via Microsoft Teams external collaboration, talk users into granting remote sessions, and use RMM tools for interactive access. During the session they run PowerShell to silently install a malicious MSI that stages a portable Node.js runtime and obfuscated JavaScript implant for C2, executing follow-on payloads via rundll32. Operators then perform host and Active Directory reconnaissance, capture desktop screenshots, and pivot via WinRM on port 5985 to domain controllers and certificate authorities. The hands-on-keyboard chain, which can precede data theft and ransomware, blends into normal operations by relying on Teams, Quick Assist, msiexec, and Node.js; Microsoft shares hunting and mitigation guidance.

Microsoft Security Blog · 13d agoThreat actor in the wild

Aggah Campaign: Bit.ly, BlogSpot, and Pastebin Used for C2 in Large Scale Campaign

Aggah campaign abuses Bit.ly, BlogSpot, and Pastebin as multi-hop C2 to deliver RevengeRAT across the Middle East, US, Europe, and Asia.

Unit 42 details the Aggah campaign, which began with spearphishing emails in March 2019 spoofing a large financial institution and targeting education, media/marketing, and government organizations in the Middle East, later expanding to the US, Europe, and Asia. Delivery documents use Template Injection to load a remote OLE file whose macro runs mshta against a Bit.ly link redirecting to a BlogSpot post, which then uses Pastebin pastes to download RevengeRAT configured with a duckdns[.]org C2 domain. The embedded script also deletes Microsoft Defender signatures and kills Defender and Office processes, and modifies registry keys to enable macros. High-level TTPs resemble the Gorgon Group, but Unit 42 could not confirm attribution.

Palo Alto Unit 42 · 29d agoThreat actor

Once popular for attacking AI, ASCII smuggling is embraced by spammers

Spammers adopt ASCII smuggling—invisible Unicode tag characters—to evade email filters, with Microsoft Defender detections spiking to 2.5 million per day.

ASCII smuggling hides text in Unicode tag characters (e.g., U+E0041 for "A") that are invisible to humans but readable by LLMs and text processors. The technique gained attention as a stealthy prompt-injection vector and is now used by spammers to obfuscate keywords from email detectors. Microsoft reported Defender for Office smuggling detections jumped from roughly 21,000 per day to over 1.3 million in early February, reaching 2.5 million within four days, before falling sharply in mid-May.

Ars Technica · Security · 11d agoPhishing & fraud