Microsoft, along with a group of industry partners, disrupted EvilTokens, a short-lived but highly consequential cybercrime platform that investigators linked to more than 12,000 compromised Microsoft customer email inboxes across more than 10,000 organizations globally, the company said Tuesday.

Acting on federal court order Sept. 15, Microsoft and partners seized 50 websites the phishing-as-a-service used for operations and disabled more than 175 domains linked to EvilTokens’ supporting infrastructure. 

EvilTokens, launched in February 2026, was “a powerful cybercrime platform that used AI at every step of the attack chain — from compromising email accounts to designing intricate roadmaps for financial fraud and scams,” Steven Masada, associate general counsel and general manager of Microsoft’s Digital Crimes Unit, wrote in a blog post.

About 1,000 cybercriminals used EvilTokens over the course of its operation, a Microsoft spokesperson told CyberScoop.

The service was centered on an AI-style chatbot that cybercriminals used to analyze victims’ inboxes, identify trusted relationships, payment authorizations and other sensitive details that could facilitate fraud.

“AI was not simply helping attackers write more convincing messages. It helped them decide who to target, who to impersonate, and how to most effectively exploit the relationship to extract as much money as possible,” Masada wrote. 

EvilTokens was one of the most widely used phishing-as-a-service platforms prior to its takedown. It facilitated business-email compromise campaigns by stealing session tokens that allowed cybercriminals to sift through a victim’s inbox and maintain persistent access.

“We cannot estimate the total fraud attributable to all EvilTokens activity. However, we were able to correlate at least 13 complaints filed with the FBI’s Internet Crime Complaint Center to EvilTokens-linked activity, representing approximately $1.7 million in reported losses,” a Microsoft spokesperson said. “Because many incidents go unreported and not all victims can be definitively linked to specific campaigns, we believe this is a conservative estimate.”

Victims of EvilTokens were largely concentrated in the United States, Canada, the United Kingdom, Australia, India and France, according to Microsoft. SpyCloud, which supported the takedown, identified compromised email domains spanning 79 countries.

Microsoft said it also identified two men behind EvilTokens — Felix Utomi and Waidi Segun Adams — and attributes the development and support of the platform to Storm-2992, a threat actor unaffiliated with any other known cybercrime groups.

The United Kingdom’s Metropolitan Police acted on that information Sept. 18 when it served warrants in the greater London area, arrested the men accused of making articles for use in fraud and money laundering and seized their digital devices.

The Metropolitan Police said it received information from Microsoft about EvilTokens’ administrators in August. Utomi and Adams were released on bail as the investigation continues. 

“The two primary operators identified in our investigation were residing in the U.K.,” a spokesperson for Microsoft told CyberScoop. “While our investigation focused on those individuals, we believe others may have supported the operation in various capacities.”

Microsoft’s legal filing in the U.S. District Court for the Eastern District of Virginia refers to five additional unidentified people allegedly acting as support personnel and users.

Microsoft and others involved in the EvilTokens takedown, including Health-ISAC, Cloudflare, OpenAI, Shadowserver and TRM Labs, didn’t fully quantify how much fraud the service enabled, but it gained popularity quickly among cybercriminals and was lucrative for its operators.

Coinbase, which also aided the investigation into EvilTokens, said it traced about $1.1 million in revenue for EvilTokens from its paying customers. The virtual currency company’s threat researchers found more than 1,000 deposits to EvilTokens from more than 700 distinct addresses through June 2026. 

Operators sold access to the service through Telegram for a $1,500 initiation fee and a recurring $500 subscription. EvilTokens significantly lowered the barrier to entry for cybercriminals by including specialized tools for identity attacks, cloud systems, social engineering and financial fraud in a single interface.

The service allowed cybercriminals to map organizational structure and permissions in Microsoft Graph, which enabled lateral movement, researchers said. With active tokens gained through a collection of highly-targeted phishing lures, cybercriminals consistently bypassed multi-factor authentication, email gateways and endpoint security tools.

Microsoft said the platform’s creators developed portions of the platform with AI and it uncovered capabilities from multiple AI models. 

“It packaged much of the criminal process into a commercially run service, complete with subscription pricing, customer support, management dashboards and tools designed to move customers from account access toward financial exploitation,” Masada added.

The companies and organizations involved in the globally-coordinated takedown identified and notified potential victims, shared indicators of compromise and shared intelligence with law enforcement about EvilToken’s operators and some of its customers.

Experts advised organizations and employees to treat unsolicited device codes as a red flag, assume compromised accounts are fully cataloged in minutes, and independently verify requests to change payment information or redirect funds.

“The infrastructure supporting EvilTokens has been disrupted, but the model it demonstrated will not disappear with it,” Masada warned.

The post Microsoft and partners disrupt EvilTokens, a comprehensive cybercrime service for financial fraud appeared first on CyberScoop.

The Trump administration rolled out a six-month test program in Texas on Monday that will draw on volunteer expertise and technology from cyber and artificial intelligence companies to protect the water sector.

“Project Watershed 250” is the first of the state-based, industry-centric pilot projects to cross the finish line that the Office of the National Cyber Director has previewed since the publication of its national cybersecurity strategy earlier this year. Water systems have long been viewed as among the most vulnerable and neediest critical infrastructure sectors, and in recent months the sector has been the victim of a spree of attacks.

“Project Watershed 250 is a commitment from the states, industry and federal government that we will continue to prioritize our nation’s safety and deliver on America-first policies for the American people,” National Cyber Director Sean Cairncross said at a rollout event in San Antonio Monday.

“U.S. companies are providing world-class cyber capabilities, red teaming that tests utilities’ current defenses, system hardening using the latest private sector cyber tools and AI tooling that helps utilities’ frontier cyber defenders to protect Texas water systems and scale proven solutions across the country,” he said. “This six-month pilot program is designed to make our water and wastewater critical infrastructure more resilient and resistant to cyber attacks by proactively finding and fixing system weaknesses.”

The pilot program, featuring collaboration between federal and state governments, stands in contrast to how the Biden administration tried to tackle the issue, with audit requirements that some GOP states challenged in court, forcing Biden’s Environmental Protection Agency to withdraw its rule.

“For too long, at least on the federal level, the government has admired the problem of cybersecurity in water systems,” Cairncross said. “We are going to find out what works. We’re going to target that, and we are going to scale off of this and learn lessons.”

A dozen companies — Parsons, Microsoft, Fortinet, Google Cloud, Palo Alto Networks, Amazon Web Services, Reflection AI, Cloudflare, Zscaler, Forescout, Abnormal AI and Dragos — appeared at the rollout Monday to praise the initiative and tout their contributions to it.

Not everyone praised the initiative elsewhere, however. One cyber professional who works on water security issues, speaking on condition of anonymity, said the program was “all smoke” and that “there’s no real money behind it.”

“The White House did what it always does — reached out to industry with their hands out asking for industry to pay for things the government should be doing, at least in part,” the person said.

Texas Gov. Greg Abbott said the program would be overseen by Cairncross’s office and Texas Cyber Command, which was established just last year. Abbott cited the need for the program by mentioning “an Iranian-backed cyberattack” on 30 water systems across 12 states and a 2024 attack on the water system in Muleshoe, Texas, suspected to be the work of Russian hackers.

“The need for cyber resilience is overwhelming,” Abbott said. “Many rural providers simply don’t have the resources they need to be able to protect themselves.”

Watershed 250 isn’t the only federal effort to bolster water cybersecurity, with lawmakers introducing legislation in the aftermath of the recent attacks. Past legislation that Congress has enacted also sought to tackle the problem.

Updated 8/31/26: with comment from cyber professional.

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From Cloudflare’s new report: Key insights The 1 Tbps club grew. Cloudflare mitigated a combined 935 network-layer DDoS attacks exceeding 1 Tbps in the first half of 2026 and a +519% quarter-over-quarter surge between Q1 and Q2. The attack-vector center of gravity shifted from botnet floods to reflection and amplification. DNS-based attacks accounted for 34.3%...

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A financially motivated data theft and extortion group is attempting to inject itself into the Iran war, unleashing a worm that spreads through poorly secured cloud services and wipes data on infected systems that use Iran’s time zone or have Farsi set as the default language.

Experts say the wiper campaign against Iran materialized this past weekend and came from a relatively new cybercrime group known as TeamPCP. In December 2025, the group began compromising corporate cloud environments using a self-propagating worm that went after exposed Docker APIs, Kubernetes clusters, Redis servers, and the React2Shell vulnerability. TeamPCP then attempted to move laterally through victim networks, siphoning authentication credentials and extorting victims over Telegram.

In a profile of TeamPCP published in January, the security firm Flare said the group weaponizes exposed control planes rather than exploiting endpoints, predominantly targeting cloud infrastructure over end-user devices, with Azure (61%) and AWS (36%) accounting for 97% of compromised servers.

“TeamPCP’s strength does not come from novel exploits or original malware, but from the large-scale automation and integration of well-known attack techniques,” Flare’s Assaf Morag wrote. “The group industrializes existing vulnerabilities, misconfigurations, and recycled tooling into a cloud-native exploitation platform that turns exposed infrastructure into a self-propagating criminal ecosystem.”

On March 19, TeamPCP executed a supply chain attack against the vulnerability scanner Trivy from Aqua Security, injecting credential-stealing malware into official releases on GitHub actions. Aqua Security said it has since removed the harmful files, but the security firm Wiz notes the attackers were able to publish malicious versions that snarfed SSH keys, cloud credentials, Kubernetes tokens and cryptocurrency wallets from users.

Over the weekend, the same technical infrastructure TeamPCP used in the Trivy attack was leveraged to deploy a new malicious payload which executes a wiper attack if the user’s timezone and locale are determined to correspond to Iran, said Charlie Eriksen, a security researcher at Aikido. In a blog post published on Sunday, Eriksen said if the wiper component detects that the victim is in Iran and has access to a Kubernetes cluster, it will destroy data on every node in that cluster.

“If it doesn’t it will just wipe the local machine,” Eriksen told KrebsOnSecurity.

Aikido refers to TeamPCP’s infrastructure as “CanisterWorm” because the group orchestrates their campaigns using an Internet Computer Protocol (ICP) canister — a system of tamperproof, blockchain-based “smart contracts” that combine both code and data. ICP canisters can serve Web content directly to visitors, and their distributed architecture makes them resistant to takedown attempts. These canisters will remain reachable so long as their operators continue to pay virtual currency fees to keep them online.

Eriksen said the people behind TeamPCP are bragging about their exploits in a group on Telegram and claim to have used the worm to steal vast amounts of sensitive data from major companies, including a large multinational pharmaceutical firm.

“When they compromised Aqua a second time, they took a lot of GitHub accounts and started spamming these with junk messages,” Eriksen said. “It was almost like they were just showing off how much access they had. Clearly, they have an entire stash of these credentials, and what we’ve seen so far is probably a small sample of what they have.”

Security experts say the spammed GitHub messages could be a way for TeamPCP to ensure that any code packages tainted with their malware will remain prominent in GitHub searches. In a newsletter published today titled GitHub is Starting to Have a Real Malware Problem, Risky Business reporter Catalin Cimpanu writes that attackers often are seen pushing meaningless commits to their repos or using online services that sell GitHub stars and “likes” to keep malicious packages at the top of the GitHub search page.

This weekend’s outbreak is the second major supply chain attack involving Trivy in as many months. At the end of February, Trivy was hit as part of an automated threat called HackerBot-Claw, which mass exploited misconfigured workflows in GitHub Actions to steal authentication tokens.

Eriksen said it appears TeamPCP used access gained in the first attack on Aqua Security to perpetrate this weekend’s mischief. But he said there is no reliable way to tell whether TeamPCP’s wiper actually succeeded in trashing any data from victim systems, and that the malicious payload was only active for a short time over the weekend.

“They’ve been taking [the malicious code] up and down, rapidly changing it adding new features,” Eriksen said, noting that when the malicious canister wasn’t serving up malware downloads it was pointing visitors to a Rick Roll video on YouTube.

“It’s a little all over the place, and there’s a chance this whole Iran thing is just their way of getting attention,” Eriksen said. “I feel like these people are really playing this Chaotic Evil role here.”

Cimpanu observed that supply chain attacks have increased in frequency of late as threat actors begin to grasp just how efficient they can be, and his post documents an alarming number of these incidents since 2024.

“While security firms appear to be doing a good job spotting this, we’re also gonna need GitHub’s security team to step up,” Cimpanu wrote. “Unfortunately, on a platform designed to copy (fork) a project and create new versions of it (clones), spotting malicious additions to clones of legitimate repos might be quite the engineering problem to fix.”

Update, 2:40 p.m. ET: Wiz is reporting that TeamPCP also pushed credential stealing malware to the KICS vulnerability scanner from Checkmarx, and that the scanner’s GitHub Action was compromised between 12:58 and 16:50 UTC today (March 23rd).