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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.
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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).
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CISA Red Team Fully Compromised Two Critical Infrastructure Orgs
CISA red teams achieved full domain and cloud compromise at two critical infrastructure orgs; one SOC never detected the intrusion.
CISA advisory AA26-237A documents two simultaneous red team assessments. Organization A (Government Services sector) missed the intrusion entirely, as default credentials on a web app, ADCS ESC1 abuse, and thousands of false-positive alerts let the red team reach sensitive business systems and read SOC email. Organization B (Water/Wastewater sector) detected, isolated, and reimaged hosts quickly, but both orgs lacked Conditional Access for workload identities, and B still exposed DCSync, Golden Ticket, and OT network attack paths.
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IT Help Desk Impersonation Lets Hackers Bypass MFA
Arctic Wolf tracks PREY-0058 posing as IT help desk to steal Microsoft 365 sessions via AiTM panels, then extorting executives after SaaS data theft.
Arctic Wolf documented a threat cluster tracked as PREY-0058 that impersonates internal IT help desk staff by phone, luring Directors, VPs, and executives to authentication-themed URLs formatted as victim-organization lure domains. Adversary-in-the-middle panels intercept credentials and MFA approvals, and stolen sessions are replayed through residential proxies such as NodeMaven from IPs matching the victim's geo-location and ASN, defeating impossible-travel alerts. Attackers perform discovery against SharePoint and Entra ID, then harvest data from OneDrive, Exchange, and Box before issuing extortion demands. Defenders are advised to require managed devices, use phishing-resistant MFA like FIDO2, enable Continuous Access Evaluation, and monitor sign-ins, SharePoint SearchQueryPerformed, and MailItemsAccessed events.
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China-Linked Jewelbug Uses XG-Web for Government Espionage and Crypto Fraud
China-linked Jewelbug runs government espionage and crypto fraud from a single XG-Web browser-based control framework.
Broadcom's Symantec and Carbon Black detail Jewelbug, a China-based hackers-for-hire group conducting espionage against governments and militaries in the Middle East, Southeast Asia, and South Asia, plus crypto fraud against Chinese-speaking victims. Operations center on XG-Web, a browser-centric remote-access and infostealing framework, with implants spanning browsers, Windows, Linux, and network devices. The group overlaps with CL-STA-0049, Ink Dragon, Earth Alux, and REF7707, and compromised a Middle Eastern government's webmail across 15 tenants.
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Lazarus Exploits Windows Zero-Day to Gain SYSTEM Access and Deploy Backdoor
Lazarus exploits Windows AFD.sys zero-day CVE-2026-68820 in Operation Dream Job to deploy Troy backdoor at defense firms.
Check Point attributes Operation Dream Job attacks to Lazarus Group exploiting CVE-2026-68820 (CVSS 7.0), a privilege escalation flaw in Windows AFD.sys patched in August 2026 Patch Tuesday. The campaign targets defense and aerospace firms in France, Germany, Brazil, and India via trojanized PDF viewers and DLL side-loading, deploying backdoors Troy, ForestTiger, and the FudModule 3.1 kernel rootkit. Attackers also compromise WordPress, SharePoint, and Roundcube servers as C2, using CVE-2025-49113 and the RelayShell PHP web shell.
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