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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.
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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.
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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.
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Nearly 750k had financial info, SSNs leaked in South Carolina loan company breach
Heights Finance breach of a third-party cloud platform exposed SSNs and banking data of 734,828 loan customers across 11 states.
Attackers breached a third-party cloud platform used by Heights Finance in May, exposing data on 734,828 customers, according to the company's filing with Texas regulators. Stolen data includes contact details, bank account and routing numbers, Social Security numbers, tax IDs and driver's license numbers. The breach, discovered on May 7, was limited to the cloud platform and did not affect loan management systems. No group has claimed the attack and dark web monitoring has found no evidence of the data being leaked.
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