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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Sality, a Russia-based botnet that infected more than 11 million devices during a 23-year run of operations, was dismantled Monday by law enforcement, CrowdStrike and the Shadowserver Foundation. 

CrowdStrike, which announced the takedown Tuesday alongside authorities, said it played a crucial role dismantling the botnet’s technical infrastructure, rendering the malware-spreading operation irrecoverable. 

The peer-to-peer botnet was a persistent piece of criminal infrastructure that evaded disruption for an exceptionally long period because it lacked centralized architecture. 

Sality used infected machines to communicate peer-to-peer, creating a decentralized structure that made system-wide disruption efforts more difficult than botnets that rely on a core server. 

“The same properties that made Sality resilient also created the conditions for its undoing,” CrowdStrike wrote in a blog post. The company said it targeted Sality’s peer list of infected machines and tricked the network into permanently cutting off access to those devices.

“From the operator’s perspective, infected machines simply disappear,” CrowdStrike wrote, adding that the botnet is no longer under the operator’s control.

Sality’s domains were seized by a globally coordinated effort supported by the FBI, Justice Department and authorities from Europol, Bulgaria, Hungary and Romania, officials said. Shadowserver is working with internet service providers to identify devices infected by Sality and aid with remediation. 

“Cybercriminals, botnets, and malware are a clear and present danger to our nation’s security and economy,” Bill Essayli, first assistant U.S. attorney, said in a statement. 

Europol said the Sality takedown was the culmination of work spanning global law enforcement back to 2017. 

CrowdStrike said Sality’s operator was primarily financially motivated, but it attributed three DDoS attacks to Sality, suggesting the operator was occasionally willing to use the botnet for personal or political aims. 

The botnet enabled cryptocurrency theft and cyberattacks on victims in the United States and abroad, the Justice Department said. Officials did not name the person or cybercrime group behind Sality.

“This operation demonstrates that peer-to-peer architecture, long considered a shield against disruption, is not invincible,” CrowdStrike wrote. 

“Operating for decades without consequence does not mean operating without risk,” the company added. “The calculus has changed. We will find you, we will dismantle your infrastructure, and we will impose costs that make the enterprise untenable.”

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The Federal Bureau of Investigation (FBI) said today it worked with industry partners to seize hundreds of domains associated with NetNut, a sprawling residential proxy service operated by the publicly-traded Israeli company Alarum Technologies [NASDAQ: ALAR]. The action comes roughly two weeks after KrebsOnSecurity published findings from multiple security firms connecting NetNut to the Popa botnet, a collection of at least two million devices that have been compromised by malicious software with little or no consent from victims.

On June 19, three different security firms issued similar findings: That NetNut is a residential proxy network which populates a botnet called Popa, and distributes software for devices commonly found in homes, such as smart TVs and streaming boxes. NetNut’s software turns those systems into always-on residential proxy nodes that are rented to others, who predominantly use them to relay abusive and intrusive Internet traffic, such as mass content scraping, advertising fraud, and account takeover activity.

Earlier today, NetNut’s homepage was replaced with a seizure notice from the FBI and the Internal Revenue Service Criminal Investigation division. The seizure notice thanked Google, Lumen, Shadowserver and other industry partners for their help in dismantling hundreds of domains tied to the Popa botnet, which experts say has long been synonymous with NetNut’s residential proxy infrastructure.

In a blog post published today, the Google Threat Intelligence Group (GTIG) said NetNut’s proxy network is widely resold and white-labeled by a number of third-party proxy providers, and that its services are heavily sought out by cybercriminals seeking to obfuscate the source of their malicious traffic. The GTIG said that in a single week during June 2026, they observed 316 distinct clusters of threat actors using suspected NetNut exit nodes, including cybercriminal and espionage groups.

“These bad actors can use NetNut to mask their origin IP address when accessing victim environments, accessing their own infrastructure, and conducting password spray attacks,” Google’s GTIG wrote. “Furthermore, when a consumer device becomes an exit node, unauthorized network traffic passes through it. This means bad actors can access other private devices on the same home network, effectively exposing them to Internet threats.”

Google said it disabled Google accounts and services used by NetNut for malware command and control, and that it shared technical intelligence on NetNut’s software development kits (SDKs) and backend infrastructure with platform providers, law enforcement and research firms. The company also disabled apps known to bundle NetNut’s various SDKs.

Omer Weiss, legal counsel for NetNut parent Alarum Technologies, said the company was aware of the FBI seizure and cooperating with investigators.

“Alarum takes this matter seriously and will fully cooperate with law enforcement to ensure any misuse of its infrastructure is thoroughly investigated and those responsible are held to account,” Weiss said in a written statement.

Benjamin Brundage is founder of the proxy tracking service Synthient, one of the companies that published evidence last month linking the Popa botnet to NetNut and Alarum Technologies. Brundage said the domain seizures appear to have disrupted both the Popa botnet and the NetNut proxy network that rides on top of it.

Brundage said NetNut’s apparent demise is likely to be a great disadvantage for the cybercrime community, which was already reeling from legal actions by Google earlier this year that seized infrastructure for NetNut’s biggest competitor — IPIDEA.

“I think this takedown is going to have a big impact, because NetNut gained significant popularity after the IPIDEA takedown,” he said. “Also NetNut has been incredibly common among resellers, and they were on par with IPIDEA in terms of their daily traffic, quality, size, price per gigabyte, all of it.”

The NetNut and Popa botnet takedown may have another added benefit, Brundage said: Lessening the impact of large distributed denial-of-service botnets that have been built on the backs of poorly configured residential proxy services. In January, Synthient revealed how cybercriminals had built the world’s largest DDoS botnet (Kimwolf) by tunneling through IPIDEA proxy connections into the local networks of TV box owners, and infecting other Android-based devices behind the victim’s firewall.

While many of the bigger proxy providers took steps to block this activity, resellers of the major proxy networks have been far slower to respond to the threat, Brundage said.

“In terms of all these TV box devices getting compromised from the proxy network, it will have an impact on the DDoS botnets out there,” he said.

For its part, Google reckons today’s actions have caused “significant degradation to NetNut’s proxy network and its business operations, reducing the available pool of devices for the proxy operator by millions.” But the company warns that proxy networks can rebuild themselves by effectively reselling other proxy services, as IPIDEA has done over the past few months.

“Google has high confidence that many popular residential proxy brands are in fact whitelabeling the NetNut botnet,” the GTIG report concludes. “While we expect this disruption to have a larger ripple effect across the residential proxy ecosystem, observations after the disruption of IPIDEA proved that individual networks can appear resilient. What we have observed is that when faced with the degradation of their own botnet, proxy operators begin buying capacity from their competitors, effectively becoming a reseller. We recognize that creating a lasting disruption in this fluid ecosystem means we must scale our efforts to target the infrastructure of several interconnected providers.”

As KrebsOnSecurity has warned repeatedly, most of the no-name TV streaming boxes for sale on the major e-commerce websites either come pre-installed with residential proxy software, or require the installation of proxy SDKs in order to use the device for its stated purpose (streaming pirated movies, sporting events and TV shows). Google’s advice here is sound: When it comes to TV boxes, stick to name brands from reputable manufacturers, and then be sparing and judicious with any apps you choose to install.

The sketchy TV boxes that are being commandeered by the Popa botnet and other threats all come with or require the user to install unofficial Android operating systems that do not operate within the confines of Google’s Official Play Protect store. Google says consumers can confirm whether or not a device is built with the official Android TV OS and Play Protect certification by following these instructions.

Even people without TV streaming boxes can find their smart TVs enrolled in residential proxy networks, just by installing one of thousands of apps available for download on Samsung and LG smart TVs. In a report released last month, the proxy tracking company Spur found 42 percent of apps available for download via the webOS operating system on LG smart TVs include SDKs that turn one’s television into an always-on residential proxy node. More than a quarter of the apps made for Samsung’s Tizen operating system had similar residential proxy components, Spur found.

Update, 4:24 p.m. ET: Included a statement shared post-publication from an attorney representing NetNut parent Alarum Technologies.

Update, July 8, 2:34 p.m. ET: The website for Alarum Technologies — alarum[.]io — now also features a seizure notice from the FBI. The company’s stock has taken a beating since the FBI action, and is currently trading at $2.62 a share, a roughly 67 percent decline over the past week.