In this article
Mitigation and protection guidanceMicrosoft Defender detectionsHunting queriesIndicators of compromise
In October 2026, the financially motivated threat actor Storm-3358 began targeting organizations in the financial sector using the agentic AI offensive framework ARTEX. The threat actor that Microsoft Threat Intelligence tracks as Storm-3358 is a Cambodia-based intrusion cluster that primarily targets financial organizations in Southeast As
In October 2026, the financially motivated threat actor Storm-3358 began targeting organizations in the financial sector using the agentic AI offensive framework ARTEX. The threat actor that Microsoft Threat Intelligence tracks as Storm-3358 is a Cambodia-based intrusion cluster that primarily targets financial organizations in Southeast Asia, in addition to a smaller number of large financial organizations globally.
Microsoft has observed Storm-3358 use ARTEX in combination with conventional automated tools to scan systems connected to the public internet, exploit security flaws including anonymous file upload and server-side request forgery (SSRF), and install open-source remote access trojans (RATs). Storm-3358 has used the WISP, vshell, and AdaptixC2 RATs for persistence and lateral movement. Microsoft has observed ARTEX agents using utilities like netcat and curl to download these RATs to compromised systems, as shown in Figure 1.
Figure 1. Example commands that ARTEX agents used to download RATs to compromised systems.
In recent ARTEX-related attacks, threat actors have used ARTEX agents to scan and exploit vulnerabilities in web applications, use web shells for persistence on compromised web servers, compromise credentials from public sources and compromised systems, and use compromised cloud identities for persistence and data exfiltration. ARTEX agents can also perform brute-force password attacks, password spraying, API enumeration and abuse, and database dumping. Agentic tools like ARTEX can leverage compromised credentials and systems at machine speed to move laterally, escalate privileges, and exfiltrate data.
This activity illustrates an ongoing trend of threat actors accelerating all stages of the attack chain with agentic AI penetration testing frameworks, including ARTEX. As these capabilities evolve, defenders must similarly use AI to investigate and respond across large environments.
While threat actors regularly use proxies and virtual private networks (VPNs) to change the source IP address of malicious traffic and bypass static detections, Microsoft is providing indicators of compromise (IOCs) to help defenders detect related activity.
Mitigation and protection guidance
Microsoft’s research into threats involving agentic frameworks informs security detections and investigative context across its products. The capabilities available to customers depend on the source of the activity and the products and protections deployed in their environment.
Several behavioral signals can help organizations determine that they are being targeted by threat actors using agentic AI. Agentic AI frameworks scanning a target send a wide variety of requests in a brief time and retry variations on the same technique or move on to next-stage actions at machine speed. Agentic AI frameworks use existing penetration testing tools. For example, ARTEX by default uses Nmap, curl, wget, Python HTTP clients, Norma SDK WebFetch, and headless Chromium through Playwright, among others. These tools may send network traffic with distinctive characteristics, such as default user agent strings. While blocking network traffic with these characteristics will not stop an attack by an AI agent, which will quickly change them, identifying them can alert defenders to the activity.
Defensive honeypots, decoys, tarpits, and fake wins can pull autonomous AI attacks away from legitimate targets. Honeypots and decoy surfaces such as Microsoft Sentinel Deception give the agent attractive but worthless targets to pursue. Tarpits consume the agent’s time and budget. Fake wins present convincing evidence that the agent’s objective is complete, which can cause it to stop on a false success. In Microsoft’s testing, these controls helped reduce the attack traffic reaching real assets and produced high-confidence, attribution-quality signal.
Microsoft’s continuous research into threat actors leveraging agentic frameworks integrates directly into the following products:
Identity and sign-in activity — Microsoft Entra ID Protection
Microsoft analyzes sign-in activity and other signals to identify potential identity risk. Customers can investigate risk detections and risky sign-ins, and configure Conditional Access policies that use sign-in or user risk to require multifactor authentication or block access when specified conditions are met. Identity and sign-in activity from known threat actor infrastructure, including from agentic frameworks like ARTEX, generate Verified threat actor IP risk detections delivered at high risk. See:
Endpoint activity — Microsoft Defender for Endpoint
Endpoint alerts help security teams identify and investigate suspicious activity on devices. Indicators of compromise can support detection and, when configured, blocking. Customers can review related alerts in the Microsoft Defender portal. See:
Activity across security domains — Microsoft Defender portal
The portal brings together alerts and incidents from Microsoft security solutions and provides relevant threat intelligence to support investigation, threat hunting, and response. This helps customers assess suspicious activity in the context of their own environment. See:
Threat actor misuse of AI accelerates risk across enterprise environments by amplifying existing threats such as exploitation of vulnerabilities, phishing, malware threats, and insider activity. To help organizations stay ahead of AI-enabled threat activity, Microsoft has introduced the Security Dashboard for AI. The dashboard provides users with a unified view of AI security posture by aggregating security, identity, and data risk across Microsoft Defender, Microsoft Entra, and Microsoft Purview. See:
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. These alerts may trigger on unrelated activity. Customers should investigate to determine if the alert is related to the activity outlined in this blog.
Tactic
Microsoft Defender coverage
Execution
Microsoft Defender for Endpoint – Process launched in the background – Suspicious file dropped and launched – Suspicious file or content ingress – Hidden file executed – Suspicious process executed by network service – Suspicious piped command launched – Suspicious process launched by service – Suspicious process launched from a world-writable directory – Suspicious script launched – Suspicious shell execution from PHP application – Suspicious shell command execution
Collection
Microsoft Defender for Endpoint – Enumeration of files with sensitive data – Suspicious file copy operations – Suspicious process collected data from local system
Credential access
Microsoft Defender for Endpoint – Suspicious access of sensitive files
Defense evasion
Microsoft Defender for Endpoint – Executable permission added to file or directory – Obfuscation or deobfuscation activity – Possible time based evasion – Suspicious decoding of encoded content into script – Suspicious file and directory permission modification – Suspicious file or information obfuscation detected – Suspicious path deletion
Discovery
Microsoft Defender for Endpoint – Suspicious port scan activity
Command and control (C2)
Microsoft Defender for Endpoint – Possible reverse shell – Suspicious connection to remote service – Suspicious curl behavior
Microsoft Defender for Cloud – Publicly accessible storage containers have been exposed – Azure Resource Manager operation from suspicious IP address
Lateral movement
Microsoft Defender for Endpoint – Remote Desktop session
Persistence
Microsoft Defender for Endpoint – Possible Web Server compromise activity – Suspicious cron job creation
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.
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 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 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.
Hunting queries
Microsoft Defender XDR
Microsoft Defender XDR customers can run the following advanced hunting query to find related activity in their networks:
Download of new files using curl
Threat actors might use tools such as curl to download additional files, communicate with C2 infrastructure, or exfiltrate data. This query looks for new files being downloaded using curl. curl also has legitimate uses, so files and hosts should be reviewed to identify potentially malicious activity.
let known_files = DeviceNetworkEvents
| where TimeGenerated between (ago(7d)..ago(1d))
| where InitiatingProcessFileName has "curl"
| extend url = extract("http[s]?:\\/\\/(?:[a-zA-Z]|[0-9]|[$-_@.&+]|[!*\\(\\),]|(?:%[0-9a-fA-F][0-9a-fA-F]))+", 0,InitiatingProcessCommandLine)
| extend ip = extract("(\\b25[0-5]|\\b2[0-4][0-9]|\\b[01]?[0-9][0-9]?)(\\.(25[0-5]|2[0-4][0-9]|[01]?[0-9][0-9]?)){3}[^ ]*", 0, InitiatingProcessCommandLine)
| extend remote_file = iif(isnotempty(url), url, ip)
| union (SecurityEvent
| where TimeGenerated between (ago(7d)..ago(1d))
| where EventID == 4688
| where CommandLine has "curl"
| extend url = extract("http[s]?:\\/\\/(?:[a-zA-Z]|[0-9]|[$-_@.&+]|[!*\\(\\),]|(?:%[0-9a-fA-F][0-9a-fA-F]))+", 0,CommandLine)
| extend ip = extract("(\\b25[0-5]|\\b2[0-4][0-9]|\\b[01]?[0-9][0-9]?)(\\.(25[0-5]|2[0-4][0-9]|[01]?[0-9][0-9]?)){3}[^ ]*", 0, CommandLine)
| extend remote_file = iif(isnotempty(url), url, ip))
| summarize by remote_file;
DeviceNetworkEvents
| where TimeGenerated > ago(1d)
| where InitiatingProcessFileName has "curl"
| extend url = extract("http[s]?:\\/\\/(?:[a-zA-Z]|[0-9]|[$-_@.&+]|[!*\\(\\),]|(?:%[0-9a-fA-F][0-9a-fA-F]))+", 0,InitiatingProcessCommandLine)
| extend ip = extract("(\\b25[0-5]|\\b2[0-4][0-9]|\\b[01]?[0-9][0-9]?)(\\.(25[0-5]|2[0-4][0-9]|[01]?[0-9][0-9]?)){3}[^ ]*", 0, InitiatingProcessCommandLine)
| extend remote_file = iif(isnotempty(url), url, ip)
| union (SecurityEvent
| where EventID == 4688
| where CommandLine has "curl"
| extend url = extract("http[s]?:\\/\\/(?:[a-zA-Z]|[0-9]|[$-_@.&+]|[!*\\(\\),]|(?:%[0-9a-fA-F][0-9a-fA-F]))+", 0,CommandLine)
| extend ip = extract("(\\b25[0-5]|\\b2[0-4][0-9]|\\b[01]?[0-9][0-9]?)(\\.(25[0-5]|2[0-4][0-9]|[01]?[0-9][0-9]?)){3}[^ ]*", 0, CommandLine)
| extend remote_file = iif(isnotempty(url), url, ip))
| where remote_file !in (known_files)
Microsoft Sentinel
Microsoft Sentinel customers can run the following advanced hunting query to find related activity in their networks:
Detect network IP indicators of compromise using ASIM
The following query checks IP address across data sources in the past 30 days supported by ASIM network session parser.
let lookback = 30d; let
ioc_ip_addr = dynamic(["199.19.95.66", "199.19.95.67", "199.19.95.68", "91.92.240.238", "85.11.168.45", "178.15.54.129", "31.77.229.35", "85.11.167.52"]);
_Im_NetworkSession(starttime=todatetime(ago(lookback)), endtime=now())
| where DstIpAddr in (ioc_ip_addr)
| summarize FirstSeen=min(TimeGenerated), LastSeen=max(TimeGenerated), EventCount=count() by SrcIpAddr, DstIpAddr, DstDomain, Dvc, EventProduct, EventVendor
Indicators of compromise
Note: Threat actors regularly use proxies and virtual private networks (VPNs) to change the source IP address of malicious traffic and bypass static detections. Microsoft is providing the following sample indicators of compromise (IOCs) to help defenders detect related activity.
To hear stories and insights from the Microsoft Threat Intelligence community about the ever-evolving threat landscape, listen to the Microsoft Threat Intelligence podcast.
Vercel introduced Vercel DBSC session security to tie logins to hardware TPM chips, neutralizing infostealer malware and stolen cookie replay attacks.
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Introduction
Incidents in virtual environments can begin with a software vulnerability, human error, a configuration weakness, or several of these factors at once. The investigation is rarely limited to the workload. Hypervisors, container runtimes, management consoles, monitoring platforms, identity systems, virtual networks, datastores, backups, and automation accounts all influence what an attacker can reach.
Kaspersky GERT recently investigated two more ransomware cases on ESXi and Proxmox e
Incidents in virtual environments can begin with a software vulnerability, human error, a configuration weakness, or several of these factors at once. The investigation is rarely limited to the workload. Hypervisors, container runtimes, management consoles, monitoring platforms, identity systems, virtual networks, datastores, backups, and automation accounts all influence what an attacker can reach.
Kaspersky GERT recently investigated two more ransomware cases on ESXi and Proxmox environments in which weak access controls, insufficient network separation, exposed administrative services, and poor management of privileged credentials contributed to the impact. A monitoring system that could reach the virtualization layer also exposed a reusable root credential. Once the attacker controlled that route, ordinary administrative access was enough to affect several hosts. No VM escape was required.
The incidents show why patching and secure configuration must be managed together. A fully patched hypervisor can still be compromised through a shared password, an overprivileged monitoring account, an open SSH path, or an administrator interface reachable from a general server network. NIST guidance places secure configuration baselines, restricted administrative access, current patches, and monitoring across all layers within the same set of sound security practices.
In this article, we’re going to describe both incidents with additional focus on common unsafe practices that were exploited, leading to compromise, as well as remediation tactics. We’ll also discuss the broader scope of threats targeting virtual environments for a better understanding of possible protection strategies.
The connected system defenders must protect
A business virtual environment is not just Hyper-V, VMware, or Docker but rather a connected stack. Management consoles, orchestration tools, monitoring platforms, and automation accounts sit above hypervisors and container engines. Registries, image stores, virtual switches, datastores, and backup systems connect the layers. Applications and business services run at the bottom, while much of the administrative power sits near the top.
The important boundaries extend beyond guest to host. They include workload to management plane, monitoring system to hypervisor, registry to deployment, administrator workstation to console, management plane to storage, and one virtual network segment to another. An attacker only needs one usable route. The possibility of compromise may lie in one stolen or insecurely placed administrator credential rather than in a complex escape exploit. In the GERT case, the compromise route passed through the monitoring platform and included a valid virtualization platform credential.
Case #1: From network monitoring to ESXi encryption
The investigation began with evidence of BlackNevas ransomware activity on a Windows system in a virtualized domain controller segment. UserAssist artifacts recorded execution of the AnyDesk RMM tool and GMER binaries. The environment also used PRTG Network Monitor to monitor its virtual infrastructure.
UserAssist artifacts
The available evidence showed that the PRTG deployment had broad access to the ESXi hosts and that the same root password was reused across several nodes. After obtaining access to the monitoring environment, the attacker used the ESXi credential to connect over SSH to the hosts that shared the same password. This design joined monitoring, credential storage, and direct administration into one attack path.
PRTG supports storing VMware credentials at the device or inherited group level. That feature is operationally useful, but a monitoring server becomes privileged infrastructure when it holds credentials that can administer the systems it observes. The security question is therefore not whether monitoring needs access, but whether the identity, privileges, storage method, and permitted network path are limited to the monitoring task.
The threat actor gained root access to the ESXi environment and used the esxcli command to bypass the system restriction by disabling the execInstalledOnly policy to execute the encryption binary and also perform anti-forensic log deletion. Let’s look closely at the timeline of the initial host compromise.
ESXi (192.168.*.*) timeline
2025-10-18 Connection attempts from IP address 192.168.*.*.
2025-10-19 During an SSH session by root from IP 192.168.*.*, the file esx is uploaded to the system.
2025-10-19 User "root" attempts to execute the binary esx with the error "Execution of non-installed file prevented".
chmod 777 esx
./esx /log
2025-10-19 User "root" deactivates the execInstalledOnly option.
esxcli system settings advanced set -o
/User/execInstalledOnly -i 0
2025-10-19 User "root" executes the malware esx.
2025-10-19 New connection attempts from IP 192.168.*.*.
Now, at the same time, the following activities ensued on a different host with the same password for the root user:
ESXi (172.16.*.*) timeline
2025-10-19 SSH connection by user "root" from IP 172.16.*.*.
2025-10-19 User "root" executes the malware esx and clears the logs.
chmod a+x esx && chmod 777 esx
./esx /selftest
nohup ./esx /p /vmfs/ /depth 5 /log /wipe
./esx /depth 5 /log /wipe
Case #2: Credential notes impacting the whole Proxmox environment
GERT responded to a ransomware incident by The Gentlemen group, in which the threat actor gained access to Proxmox using information collected during the dwell time between initial access and visible impact. On a compromised system administrator workstation, the actor discovered administrative credentials and access details stored in notes in plain text. These records provided the information needed to log in to Proxmox using the root account.
The actor then activated the VNC web socket through the compromised root account, gaining extensive control over the Proxmox environment. This access was subsequently used to download and execute ransomware within the cluster, which resulted in the encryption of the entire virtual environment. Below are the log records showing the root account being used to access other hosts via a VNC web socket.
This incident is a clear example of the risks of storing privileged credentials in unsecured notes or other easily accessible files. Once the administrator workstation was compromised, the saved credentials allowed the actor to move from a single endpoint into the virtualization management layer. Because the credentials belonged to a highly privileged root account, one poor credential handling practice significantly increased the scope and impact of the attack. Privileged credentials should instead be stored in an approved password manager or privileged access management system, protected with multifactor authentication and rotated immediately if an administrator workstation is suspected of being compromised.
Why the misconfiguration caused broad impact
Both cases exhibited unsafe misconfiguration practices whose exploitation led to a bigger impact on the host system. Next, we will break down each misconfiguration to see how it enabled further compromise and what should be done to avoid it.
Monitoring inherited excessive privilege
In Case 1, the monitoring platform could do more than collect health and performance data. It held or could use credentials with enough privilege to reach ESXi directly. A compromise of the monitoring system therefore became a compromise of the management plane. Monitoring identities should be dedicated to the task and given only the permissions required by the deployed sensors.
Credential reuse
Password reuse converted one recovered secret into farm-wide access. System administration should use named identities through the central management plane. Each host should have unique credentials and proper password storage hygiene. Password strength alone does not limit the impact of theft, but where the credential can be used and where it is stored do.
Direct root access bypassed central control
Direct SSH access allowed the actor to authenticate as root, upload a binary, and change a security setting without first passing through vCenter role controls. Broadcom, the parent company of VMware, recommends managing vSphere through vCenter, disabling SSH during normal operation, and using Lockdown Mode where suitable. Required service accounts should be explicit exceptions rather than members of a broad administrator group.
Lack of enhanced security settings
The initial execution attempt was blocked by execInstalledOnly, but the attacker had enough privilege to disable this policy. Broadcom documents enforcement options that combine execInstalledOnly with UEFI Secure Boot and TPM-backed configuration protection. These controls must be enabled, tested, and monitored for change. A setting that can be silently disabled by the same credential used for daily administration provides limited resistance after account compromise.
Unsafe credential storage
Case 2 demonstrated the possibility of compromise lying in privileged credential exposure. The mitigation strategy involves not only securing the administrative credential storage but also general hardening practices of secret handling, such as privilege management and regular access audits.
How to close this attack path
In this section, we share remediation advice on how to mitigate such attacks, and detect and prevent them from going further. We recommend the following actions:
Separate monitoring from administration. Create a dedicated monitoring identity for each platform and restrict it to the smallest set of objects and actions that the monitoring sensors require. Do not use ESXi root or another emergency account for routine polling. Prevent monitoring servers from starting interactive administrator sessions unless a separately approved support workflow requires it. The same principle applies beyond VMware.
Replace stored root passwords. Locate every copy of hypervisor, management, storage, and backup credentials in monitoring tools, scripts, scheduled tasks, connection managers, and service configurations. Replace static passwords with vault retrieval, brokered identities, or limited API tokens where the platform supports them. Record every retrieval and rotate the secret after emergency use or compromise.
Restrict direct host access. Route normal ESXi administration through vCenter and enable an appropriate Lockdown Mode after testing monitoring, backup, and recovery dependencies. Keep ESXi Shell and SSH stopped by default. When support work requires SSH, enable it for a defined period, restrict the source, and alert on service activation, root login, and changes to the exception list of users who are allowed to connect via SSH.
Use a specialized security solution. In our portfolio, Kaspersky Cloud Workload Security (KCWS) is perfectly suited to address virtual environment risks, offering a powerful combination of two products: Kaspersky Hybrid Cloud Security (KHCS) and Kaspersky Container Security (KCS). Kaspersky Hybrid Cloud Security is specifically built to secure virtualized infrastructures, private data centers, and hybrid clouds. A patented Light Agent architecture minimizes resource impact without compromising performance, while comprehensive infrastructure visualization through a unified console gives administrators complete visibility and control over the entire hybrid network. Kaspersky Container Security covers every stage of a containerized app’s lifecycle, from development to operation. Among other capabilities, the solution allows for detecting misconfigurations using a dedicated scanner for images, file systems, and repositories that contain IaC files (such as Terraform, CloudFormation, Azure ARM templates, Helm charts, and Dockerfiles).
Treat configuration changes as security events. Alert when execInstalledOnly, Secure Boot enforcement, Lockdown Mode, SSH, local accounts, exception users, firewall rules, or remote logging settings change. Baseline the expected state and test whether the security team can detect an unauthorized change. A secure configuration set once does not mean that the control remains active on the host.
Isolate the management network. Place hypervisor, monitoring, backup, storage, and cluster administration on restricted management networks. Permit only the exact source and destination services required. Administrative workstations should enter through hardened jump hosts with named identities and multifactor authentication.
Protect logs, backups, and recovery. Forward ESXi, vCenter, Proxmox monitoring, identity, and network logs to protected storage that a compromised administrator cannot erase. Backup platforms should use separate identities, restricted management paths, and recovery copies outside ordinary administrative reach.
Configuration checks for monitored virtualization
Below are recommended checks to run when enabling virtualization monitoring. The safest state depends on the platform and monitoring method, but each control should be tested.
Control area
Safer state
Verification
Monitoring identity
Dedicated service account or token with only required read and polling rights
Review assigned roles and test every sensor without root or global administrator access
Credential storage
No recoverable host root password on a monitoring or general-purpose server
Review tool configurations, scripts, scheduled tasks, and connection stores for embedded credentials, access tokens, or other secrets
Network path
Monitoring reaches only required polling services while administration uses a jump host
Test management ports from monitoring server, user segments and untrusted network segments
Direct host access
Lockdown Mode where suitable with SSH and ESXi Shell stopped by default
Attempt direct client API and SSH access to host using a routine account
Configuration integrity
Secure Boot and execInstalledOnly enforcement enabled where supported and tested
Change a test setting through the approved process and confirm an alert is generated
Evidence
Host, management, identity, monitoring, firewall, and PAM logs stored remotely
Generate successful and failed logins and verify source, account, host, time, and action
The wider attack surface
Closing the monitoring and credential routes does not secure the environment by itself. Virtualization also relies on isolation boundaries, trusted images, management APIs, virtual networks, storage, and backups. Each layer requires a different control and leaves evidence in a different place.
VM and container escapes
In a VM escape, code inside a guest reaches past the VM boundary and affects the host or another guest. The weakness may be in a virtual device, an integration feature, a hypercall interface, or another component that translates guest requests for the host. If the escape works, control of one VM may lead to control of the physical server and every workload on it. VMware CVE-2025-22224 showed this risk: an attacker with administrator rights inside a VM could execute code as the VMX process on the host, and Broadcom reported exploitation in the wild.
A container escape can reach a similar result, but the starting point is different. Linux containers share the host kernel, so their isolation model differs from that of a VM. Namespaces limit what processes can see, cgroups control resource use, and capabilities split root privileges into smaller parts. A kernel or runtime bug can break this isolation. Copy Fail (CVE-2026-31431) is a good example of a kernel flaw. Code already running in a container could use a Linux AF_ALG crypto socket to change pages in the shared Linux kernel page cache. Because the host and other containers may read the same cached pages, the effect did not have to stay inside one container. The fix is a kernel update; Docker Engine 29.4.3 also tightened its default security profiles to reduce exposure on hosts that had not yet been patched.
Unsafe settings can also break the boundary. Privileged mode, excessive capabilities, writable host mounts, or access to the Docker socket may remove isolation without any software exploit. For instance, runc CVE-2024-21626 involved leaked file descriptors that could expose the host filesystem to a malicious image or container process.
This difference changes the investigation. A VM can often be treated like a separate computer with its own kernel, memory, and disk. A container is a group of host processes placed inside namespaces. If investigators collect only the container filesystem, they may leave the most useful process, socket, and control-plane evidence on the host.
Images and templates
A compromised golden VM image or container base image can spread through normal automation. Common weaknesses include unofficial public images, mutable tags, overprivileged build tokens, recoverable secrets in older layers, and stale templates that restore vulnerable software or forgotten accounts. Scanning might help, but it does not establish who built the artifact or whether the exact image tested and approved was the one ultimately deployed to production. Use controlled builders, provenance records, signature checks, and planned rebuilds from trusted sources.
Management tools and APIs
A stolen vCenter identity, exposed Docker API, overpowered Portainer role, or compromised backup console may give an attacker an easier route than an escape exploit. Portainer advisory GHSA-7fw3-x4r2-g7wc showed how a proxy validated one bind-mount representation but missed an equivalent API form, allowing an authenticated non-administrator with container creation privileges to reach host paths. The runtime performed a valid request after authorization had already failed in the management layer.
Administrative file-copy operations also deserve attention. Docker fixed archive and mount-handling flaws in CVE-2026-41567, CVE-2026-41568, and CVE-2026-42306. These cases required particular conditions and operator or API activity. They are a reminder to patch the daemon and record who initiated copy operations, which container was involved, the source and destination paths, and the result.
Virtual networks, storage, and backups
East-west traffic between virtual workloads may stay inside one host and bypass a physical sensor. Management, migration, storage, and workload traffic should use separate zones with filtering between them. Snapshot and memory files may contain credentials, while weak datastore permissions can expose whole virtual disks. Backup systems need broad access to recover services, which also makes them valuable to an attacker who wants to delete recovery points or reach several hosts.
Attack surface examples by layer
To sum up, the described attack vectors might be mitigated as follows:
Attack surface
Initial access
Possible impact
Primary control
Credentials and configuration
Password recovered from monitoring or an overprivileged account
Direct control of several hypervisor nodes
Unique vaulted credentials, segmented access, and configuration monitoring
VM escape
Administrative access or code execution privileges inside a guest plus a hypervisor flaw
Host process or neighboring workload compromise
Patch the hypervisor and reduce risky virtual devices and guest privilege
Malicious container affecting kernel or runtime
Code in a container or a malicious image
Host filesystem, kernel, or shared cache impact
Patch kernel and runtime, and remove privileged settings
Images and templates
Compromised build input registry or golden image
Repeated deployment of the compromise
Immutable digests, controlled builds, provenance, and verification
Management API
Stolen identity exposing endpoint or authorization gap
Fleet-wide administrative actions
MFA, least privilege, network restrictions, and complete API validation
Networks, storage, and backups
Flat network or broad datastore and access through backups
Lateral movement, data theft, encryption, and recovery loss
Segmentation, least privilege, protected backups, and traffic monitoring
Conclusion
GERT cases that we presented in this article did not require an attacker to break the VM boundary. The attack path was created by an overprivileged monitoring relationship, an insecure password storage approach, a recoverable and reused root credential, broad management-network reachability, and direct SSH administration. Each element was legitimate on its own, but together they allowed one compromise to reach virtualization hosts and their workloads.
Misconfiguration should therefore receive the same operational attention as vulnerability management. Teams need to know where privileged credentials exist, which systems can use them, which network paths make them effective, and which logs will show their use. Escape flaws, unsafe images, API weaknesses, virtual network exposure, and attacks on storage or backups remain serious, but closing the known administrative route should come first.
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In this article
From exposed secrets to cloud compromiseFollow-on actionsMitigating application credential abuse activityDefending against agentic AI attacksMicrosoft detectionsAdvanced hunting queries
Microsoft Threat Intelligence has observed threat actors using an agentic AI offensive framework to search public GitHub repositories for exposed secrets, including credentials, application credentials, and AI inference-related API keys across multiple applic
Microsoft Threat Intelligence has observed threat actors using an agentic AI offensive framework to search public GitHub repositories for exposed secrets, including credentials, application credentials, and AI inference-related API keys across multiple applications and cloud services. These threat actors can then use the secrets for further malicious activity against the compromised organization.
Searching open code repositories for exposed credentials, secrets, keys, and other authentication material is a well-documented technique that has historically been limited by the time required for human operators to find code repositories, review the data in the repositories, and leverage authentication material for further action. However, agentic tooling like ARTEX allows threat actors to not only scan for secrets across multiple repositories at a quicker pace but also use the agents to analyze the output and conduct follow-on attacks, cutting down on the need for the threat actor to have hands-on-keyboard interactions throughout the attack chain. In at least one case, Microsoft observed an AI agent advance from scanning GitHub for secrets to exfiltrating data from Azure Key Vault in just five minutes.
Microsoft has also investigated follow-on activity involving the misuse of valid application credentials. As early as October 28, 2026, Microsoft began observing successful service principal sign-ins from the IP address 199.19.77[.]84 involving multiple application IDs across some impacted customers, including cases where a multitenant application credential was compromised at the source (vendor-owned application) and used to access multiple downstream tenants. The threat actor used the compromised credentials for cloud resource discovery, and credential and data exfiltration, including from Azure Key Vaults and Storage Accounts, and abuse of Azure AI services consistent with the activity described above. Additionally, Microsoft observed malicious activity originating from two IP addresses potentially associated with this campaign. We identified malicious operations from 65.87.223[.]26, including indications of vulnerability exploitation by embedded shell commands in a user agent and attempts to obtain App Service authentication tokens. A similar campaign involving the same IPs addressed was also reported by Todyl. Separately, Microsoft observed reconnaissance operations from 157.22.126[.]128 targeting AI workloads deployed by victims on Azure AI services.
Microsoft encourages organizations to scan their code in GitHub and determine where any secrets are present. In addition to removing the secrets from the code base, affected organizations should immediately rotate any exposed keys or credentials. GitHub monitors public repositories by automatically scanning for secrets. In addition to scanning their own repositories, organizations can enable public monitoring through GitHub to detect secrets leaked in secondary public repositories across GitHub. This extends secret scanning beyond the repositories an enterprise owns to follow potential secret exposure across the platform. GitHub Advanced Security for Azure DevOps scans for credentials and other sensitive content in source code. Push protection can also block supported secrets before they’re pushed. Organizations need either GitHub Advanced Security for Azure DevOps or, for organizations using the standalone experience, GitHub Secret Protection for Azure DevOps enabled.
Secrets are exposed in public repositories when code containing the secret is committed to GitHub. Developers might store secrets in configuration files, scripts, or other code to quickly operationalize the OAuth application or avoid configuring more modern authentication flows. Organizations can reduce exposure by protecting workload identities and secrets, enforcing least privilege, safeguarding recovery resources, and enabling relevant Microsoft Defender for Cloud protections. Publicly exposed credentials remain usable until revoked or rotated; removing the original disclosure alone does not remediate the exposure. Microsoft recommends that developers migrate OAuth applications away from secret-based authentication. While storing long-lived application client secrets in code is a common practice, using managed identities for application authentication eliminates the possibility of secret exposure in code, manual processes associated with secret management, and barriers to securely scaling applications.
This activity illustrates an ongoing trend of threat actors accelerating all stages of the attack chain with agentic AI penetration testing frameworks, including ARTEX. As these capabilities evolve, defenders must similarly use AI to investigate and respond across large environments.
From exposed secrets to cloud compromise
Starting in August 2026, Microsoft observed threat actors using an agentic AI offensive framework to submit large volumes of queries to GitHub for secrets. The queries submitted by the AI framework often included the name of a target organization, keywords for secrets, a keyword linked to cloud services, or a keyword linked to another AI service provider. Organizations that find their secrets exposed in public repositories must assume that the exposed secrets and associated applications are compromised.
Follow-on actions
Credential abuse via Entra ID
In one follow-on attack that began as early as October 28, 2026, an agentic framework used valid leaked or stolen application credentials to access Microsoft Entra ID tenants of certain organizations and connected Azure and Microsoft 365 resources. The sign-ins primarily came from two IP addresses: 199.19.77[.]84 and 199.19.77[.]18. The latter IP address is a Tor exit node, which might be associated with unrelated malicious activity, including from unrelated sources. The agent successfully conducted service principal sign-ins on dozens of associated applications across multiple tenants.. Service principals are the identities that applications use to authenticate and give direct, programmatic access to whatever the application is authorized to reach.
The threat actor targeted operations that return credentials, including storage account keys, App Service settings, connection strings and publishing credentials, AI and machine learning (ML) connections and datastores, and Azure Kubernetes Service (AKS) user credentials. The compromised applications subsequently accessed SharePoint and OneDrive in the targeted organization tenants, including file downloads and mailbox-item access. In some tenants, the threat actor sent Microsoft Graph API requests, which were mostly searches to find content of interest. The threat actor enumerated subscriptions, resource groups, permissions, AI model deployments, and service configurations in Azure to map the environment.
Additionally, the threat actor attempted to validate stolen Azure resources, including compromised Azure AI services, as identified using Defender for Cloud’s AI threat protection. Observed activity suggests that the threat actor might have attempted to abuse some of these compromised AI resources to facilitate their broader attack activity.
Figure 1. Tactics, techniques, and procedures (TTPs) observed across the credential abuse attack chain
Cloud API adjustments indicative of adaptive behavior
Additionally in this attack the agent’s operations on a victim’s Azure Resource Manager (ARM) instance originating from 199.19.77[.]84 demonstrated sequences consistent with adaptive troubleshooting, where failed cloud API requests were followed by changes to HTTP methods or API versions and subsequent HTTP 200 responses:
A batch of ARM requests attempting to enumerate secret metadata across multiple Azure Key Vault resources returned HTTP 400 (Bad Request). These requests specified a version associated with Key Vault’s data-plane APIs against ARM (control-plane) APIs. Approximately 28 seconds after the first failed response, a batch rerun began against the same vault resource paths using the ARM API version 2023-07-01 and returned HTTP 200.
A GET request to enumerate an Azure SQL server’s firewall rules specified an outdated API version and returned HTTP 400. Approximately 60 seconds after that request, a matching GET began using a supported version and subsequently returned HTTP 200. The URL changed only in its api-version parameter.
An ARM POST request to an Application Insights query endpoint returned HTTP 400 because an outdated API version was specified. Approximately 80 seconds after the failed request, another POST began against the same endpoint, specifying a supported API version, and subsequently returned HTTP 200.
OAuth application abuse
In multiple cases, Microsoft observed the same agentic AI tools subsequently obtain a token for a single-tenant OAuth application in the same target organization, then use the compromised OAuth application to enumerate other cloud resources within the organization. In some cases, the agents exfiltrated secrets from the organization’s Azure Key Vault. The agents once authenticated have also searched Azure DevOps for secrets. Until the secrets are revoked or rotated, they can allow a threat actor to maintain persistence in the organization, compromise additional identities, or hijack resources. In one observed case, an AI agent progressed from searching for the client secrets in GitHub to exfiltrating data from Azure Key Vault in five minutes.
The agents also used the compromised OAuth application to use the Run Command, which runs scripts in Azure VMs. With access to this functionality on a VM, a threat actor can access unsecured credentials and other stored data, compromise associated workload identities, or run code that provides persistence or lateral movement.
During this activity, the AI agents repeatedly demonstrated a focus on credentials that provide access to AI services, such as API keys for major AI service providers and OAuth applications with access to Foundry Tools (previously known as Azure Cognitive Services). Multiple public reports have documented threat actors using agentic AI tools to compromise credentials for AI services, sometimes to run the same agentic AI workflow.
Mitigating application credential abuse activity
Microsoft recommends the following mitigation steps to contain, detect, and investigate this threat.
Containment
Block 199.19.77[.]84/32 as a named location in a Conditional Access policy targeting workload identities, assigned directly to service principals, and in a user-scoped block policy to cover replayed sessions. Note that workload identity policies require Workload ID Premium licensing and cover only single-tenant apps registered in your tenant. Block the exact IP rather than the whole ASN.
For affected users, revoke Entra sessions, Azure DevOps PATs and SSH keys.
For any affected application, remove all client secrets, certificates and federated credentials, including those added by the threat actor and disable the service principal if needed. Tokens already issued remain valid until expiry.
Rotate everything stored in any Key Vault the affected application could read, and any credentials found in accessed documents.
MSPs: Review Partner Center access, GDAP relationships, and customer tenants, and notify affected customers per your agreements.
Detection and hunting
Review Entra service principal and non-interactive sign-in logs for 199.19.77[.]84 and 199.19.77[.]18 including failed attempts. Sign-in errors AADSTS7000215 (invalid secret) or AADSTS7000222 (expired secret) indicate someone holds a credential for your app; a failure followed by a success is urgent.
Review Azure Activity, Key Vault and Storage diagnostics, Entra audit, Azure DevOps audit and Microsoft 365 unified audit logs for the address, including secret reads, blob and file downloads, and changes to apps, permissions or pipelines.
In Azure DevOps auditing, review PAT creation and first use, federated service connections, pipeline runs and edits, and unfamiliar user agents. Enable auditing if it is off.
Look for behavior as well as the IP: one address authenticating to three or more service principals with mixed success, or one app requesting tokens across Azure Resource Manager, Key Vault, Storage and Graph in a short window. Search as far back as retention allows.
Defending against agentic AI attacks
Threat actors can and do change the source IP address, user agent strings, and other fingerprints left by the agentic AI penetration testing tools they use. This can make identifying and blocking malicious network traffic early difficult for defenders.
Several behavioral signals can help organizations determine that they are being targeted by threat actors using agentic AI. Agentic AI frameworks scanning a target send a wide variety of requests in a brief time and retry variations on the same technique or move on to next-stage actions at machine speed. Agentic AI frameworks use existing penetration testing tools. For example, ARTEX by default uses Nmap, curl, wget, Python HTTP clients, Norma SDK WebFetch, and headless Chromium through Playwright, among others. These tools may send network traffic with distinctive characteristics, such as default user agent strings. While blocking network traffic with these characteristics will not stop an attack by an AI agent, which will quickly change them, identifying them can alert defenders to the activity.
Defensive honeypots, decoys, tarpits, and fake wins can pull autonomous AI attacks away from legitimate targets. Honeypots and decoy surfaces such as Microsoft Sentinel Deception give the agent attractive but worthless targets to pursue. Tarpits consume the agent’s time and budget. Fake wins present convincing evidence that the agent’s objective is complete, which can cause it to stop on a false success. In Microsoft’s testing, these controls helped reduce the attack traffic reaching real assets and produced high-confidence, attribution-quality signal.
Microsoft recommends the following mitigations to reduce the impact of this threat.
Protect and continuously assess application credentials and secrets. Avoid storing service principal credentials, storage keys, connection strings, and other secrets in source code, configuration files, public repositories, issues, or other locations where they might be inadvertently exposed. To find credentials in source code, consider using tools like GitHub Advanced Security or other OWASP source code analysis tools.
Rotate compromised or exposed credentials immediately and establish credential lifecycle practices. Treat credentials that have been publicly exposed as compromised, even if the original location has subsequently been edited or deleted. Removing the content does not invalidate the credential or eliminate copies retained in edit history, caches, archives, logs, or other systems. Immediately revoke or rotate the affected credentials and investigate their historical use. Where supported, organizations should favor mechanisms that reduce reliance on long-lived credentials. Learn more about protecting secrets with Defender for Cloud.
Enable appropriate Microsoft Defender for Cloud plans for critical Azure workloads. Consider enabling workload protections relevant to the resources in your environment, including Defender for Resource Manager, Defender for Storage, Defender for Key Vault, Defender for App Service, and Defender for Databases. Learn more in the Microsoft Defender for Cloud overview.
Apply least privilege to service principals and other workload identities. Review the Azure role-based access control (RBAC) permissions assigned to service principals and restrict their privileges to the resources and operations required by their applications. Learn more about best practices for Azure RBAC.
Protect backup and recovery infrastructure as part of resilience. Restrict access to backup and recovery resources and closely monitor attempts to modify or remove their protection controls. Learn more about Azure Backup security best practices.
Hardening OAuth applications against compromise involves managing the permissions of the applications in your organization and securing application secrets. To triage applications in your environment, enforce security policies with new applications as they are created, and address existing applications over time beginning with the most recent ones.
Identify and catalog applications running in your cloud environment. The Cloud app catalog page in Defender for Cloud Apps is one service that can help accomplish this.
Use Microsoft Defender for Cloud Apps Cloud Discovery tools to identify unmanaged apps, and prioritize the most frequently used apps to migrate and integrate.
Set permission restrictions to limit who can create an application in the tenant. This can be achieved by setting the ability for users to register apps to “No” and limiting the application developer role to privileged users. Review the list of least privileged roles by task to help scope role-based access control in your environment.
Microsoft Defender and Microsoft Sentinel customers can refer to the list of applicable detections below. Microsoft Defender 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.
Tactic
Observed activity
Microsoft Defender and Sentinel coverage
Initial access
Multiple identity-protection alerts identified authentication attempts from anonymized or high-risk infrastructure. This pattern can indicate attempted access through proxy, VPN, or previously reported malicious network sources.
Microsoft Entra ID Protection – Anonymous IP address
Initial access
Attack-analysis detections identified OAuth application activity consistent with compromise. This type of detection is useful when evaluating whether an app identity, rather than only a user identity, may have been abused.
Microsoft Defender XDR – Potentially compromised OAuth application identified through attack activity analysis
Initial access, Discovery
Unattributed network indicators related to ARTEX use are flagged by Microsoft Threat Intelligence research and surfaced across multiple alerts. Suspected ARTEX use can include activity beyond the GitHub repository scanning activity discussed in this blog.
Microsoft Sentinel – Abnormal Deny Rate for Source IP – Abnormal Port to Protocol – Inbound Network Attack detected – Malformed user agent – Password spray attack against Azure AD application
Microsoft Defender XDR – Account compromised following a password-spray attack – Anomalous OAuth device code authentication activity – Multiple Service Principal Sign-ins from Single IP – Graph API activity from a Microsoft threat intelligence IP address
Microsoft Defender for Cloud Apps – Activities from suspicious user agents – Multiple failed login attempts – Multiple failed user log on attempts to an app – OAuth application activity from an uncommonly visited ISP – Suspicious OAuth app registration
Microsoft Defender for Cloud – Key vault unusual access denied – user/application accessing high volume of denied key vaults – Access from an unusual location to a sensitive blob container – Azure Resource Manager operation from suspicious IP address
Microsoft Entra ID Protection – Atypical travelMalicious IP addressPassword Spray – Verified threat actor IP
Credential access
Identity-protection detections observed password spray behavior. This indicates repeated authentication attempts across accounts or tenants using a common source pattern.
Microsoft Entra ID Protection – Password spray
Microsoft Defender for Identity – Suspicious service principal sign-in following credential addition
Credential access
Azure Key Vault access
Microsoft Defender for Cloud (Defender for Key Vault) – Unusual operation pattern in a key vault – High volume of operations in a key vault – Unusual application accessed a key vault – Suspicious secret listing and query in a key vault – Unusual access to the key vault from a suspicious IP (Non-Microsoft or External)
Command and control
Suspicious Microsoft Graph API usage was observed from campaign infrastructure. The activity involved Graph requests that can support discovery, collection, or follow-on cloud operations.
Microsoft Defender for Identity – Suspicious Entra Graph API query observed
Advanced hunting queries
The following hunting queries are related to the October 28 Entra ID service principal sign-in activity.
Find successful and failed application sign-ins from the suspicious IP addresses
let startTime = datetime(2026-10-28T00:00:00Z);
let endTime = now();
EntraIdSpnSignInEvents
| where Timestamp between (startTime .. endTime)
| where IPAddress in ("199.19.77.84")
| project Timestamp, TenantId, Application, ApplicationId, ServicePrincipalName, ServicePrincipalId, ResourceDisplayName, ResourceId, ResourceTenantId, IPAddress, ErrorCode, UserAgent, CorrelationId, RequestId
| order by Timestamp asc
Find Microsoft Graph API requests from the two IP addresses, including searches and response status
let startTime = datetime(2026-10-28T00:00:00Z);
let endTime = now();
GraphAPIAuditEvents
| where Timestamp between (startTime .. endTime)
| where IpAddress in ("199.19.77.84")
| project Timestamp, TenantId, ApplicationId, ServicePrincipalId, AccountObjectId, IpAddress,
RequestMethod, RequestUri, ResponseStatusCode, ResponseSize, Scopes, EntityType,
TargetWorkload, UniqueTokenIdentifier, ClientRequestId, OperationId, RequestId
| order by Timestamp asc
Find available Microsoft 365 and Microsoft Azure cloud activity details from the suspicious IP addresses
let startTime = datetime(2026-10-28T00:00:00Z);
let endTime = now();
CloudAppEvents
| where Timestamp between (startTime .. endTime)
| where IPAddress in ("199.19.77.84")
| project Timestamp, Application, CloudAppId = ApplicationId, ActionType, ActivityType,
AccountType, AccountDisplayName, AccountId, AccountObjectId, IPAddress, UserAgent,
ObjectName, ObjectType, ObjectId, ActivityObjects, ReportId, RawEventData
| order by Timestamp asc
CloudAuditEvents table to identify suspicious controlplane operations
CloudAuditEvents
| where IPAddress has_any ('199.19.77.84','65.87.223.26')
CloudStorageEvents table to identify possible exfiltration from Storage Accounts.
CloudStorageAggregatedEvents
| where IPAddress in ('199.19.77.84','65.87.223.26')
| where SuccessfulOperationsCount > 0
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.
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 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 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 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.
To hear stories and insights from the Microsoft Threat Intelligence community about the ever-evolving threat landscape, listen to the Microsoft Threat Intelligence podcast.
In this article
Spoofed sender domainsQR code phishing attacksCAPTCHA-gated phishing tacticsMalicious payloadsBusiness contact impersonationMicrosoft Teams threatsNotable phishing campaignsDefending against email and collaboration threatsHunting queriesIndicators of compromise (IOCs)
Microsoft Threat Intelligence detected approximately 7.3 billion email-based phishing threats from July through September, including a sharp increase to nearly 3 billion in Sep
Microsoft Threat Intelligence detected approximately 7.3 billion email-based phishing threats from July through September, including a sharp increase to nearly 3 billion in September alone, up 41% from August. Yet the increase did not extend across the techniques that had driven threat actor activity earlier in the year. QR code phishing remained far below its early-year peak, while CAPTCHA-gated phishing reversed several months of decline, driven in part by renewed use of SVG attachments.
The quarter also highlighted how sender identity and security exceptions can shape the outcome of detected threats. Microsoft detected approximately 129 million malicious messages spoofing the sender domains of tracked business services. Many were delivered because organization- or user-configured exceptions overrode security protections, even after the messages failed authentication checks and were identified as malicious, showing how overly broad exceptions intended to preserve legitimate workflows can also expose them to impersonation. In Microsoft Teams, attackers increasingly used ordinary personal names rather than explicit help desk identities while continuing to use live interactions for social engineering. Across malicious attachment activity more broadly, credential theft remained the dominant objective in Q3.
Two campaigns observed during the quarter illustrate the range of activity behind these trends. An August campaign targeting legal organizations used personalized salary review documents and QR codes to lead recipients into device code phishing, despite the broader decline in QR code attacks. In September, purchase order and payroll lures used disguised archives to deliver Agent Tesla, malware commonly used to collect credentials and other information. Together, the campaigns show how familiar business requests remained effective lures across distinct attack paths.
The effects of the March disruption of the Tycoon2FA phishing-as-a-service (PhaaS) platform also remained evident. By July, Microsoft detected approximately 21,000 phishing messages linked to the platform, down 99.8% from 8.9 million in February, the last full month before the operation.
This blog provides a view of email threat activity across Q3 2026, examining shifts in phishing techniques, malicious payloads, business contact impersonation (BCI), and Teams-based threats. We also highlight spoofed business-service sender domains and two campaigns that show how attackers used familiar work requests to make malicious messages appear credible. Together with recommendations, Microsoft Defender detections, and hunting queries, these findings can help defenders assess where existing protections may be weakened and investigate activity across email and collaboration platforms.
Spoofed sender domains
Requests to sign a document, review an invoice, or respond to a survey are routine business communications. Attackers exploit that familiarity by spoofing the sender domains of the legitimate services that deliver them. Rather than relying only on a misleading display name or a lookalike domain, these messages claim the service’s actual domain as their sender identity.
Microsoft detected approximately 129 million malicious messages spoofing the business-service domains tracked in this analysis during Q3. Activity had remained consistently high since at least May, at roughly 41 million to 46 million messages a month. DocuSign was the most frequently spoofed brand in September, accounting for 29% of that month’s total. Adobe, SurveyMonkey, and Barracuda also saw increases toward the end of the quarter, even as overall spoofing volume remained broadly steady.
The more consequential finding was how security exceptions affected these messages after detection. Despite failing email authentication checks and being identified as malicious, many were associated with tenant- or user-level overrides. In September, overrides applied to 63% of messages with a recorded security outcome, with tenant-level overrides accounting for most of them.
The figures do not establish that recipients opened the messages or that accounts were compromised. They do show why exception policies deserve attention alongside detection coverage. An organization may create an exception to avoid interrupting a legitimate business workflow, but an overly broad exception can also weaken protection against messages impersonating that workflow. Familiar branding is not a substitute for an authenticated sender.
QR code phishing attacks
QR code phishing ended Q3 far below the levels seen during its early-year surge. Microsoft detected approximately 12.1 million attacks over the quarter, down 67% from Q2. The decline continued through September despite the broader increase in email threats, leaving monthly QR code volume 86% below its March peak.
Figure 4. Monthly QR code phishing volume (January – September 2026)
Much of the volume reduction came from the attachments that had supported that earlier growth:
PDF attachments remained the most common delivery format in Q3, accounting for 78% of QR code attacks in July and August before dropping to 61% in September. Nonetheless, the volume of PDFs carrying malicious QR codes fell by roughly 65% by the end of the quarter.
DOC/DOCX attachments accounted for 14% of QR code attacks in July and August before rising to 20% in September. Word document delivery volume similarly contracted in Q3, falling 39% between July and September following a sharp drop at the start of the quarter.
Email-embedded QR codes increased from 5% of attacks in July to 12% in September. After dropping to near-zero in Q2, the volume of malicious QR codes embedded in email bodies more than tripled by the end of Q3, although the method remained a smaller delivery category than attachments.
Figure 5. QR code phishing delivery method share by month (January – September 2026)
The distinction between delivery methods matters for inspection coverage, but not for the recipient’s experience: either attachment or embedded formats can move a user from a message on a managed device to a phishing page on a personal phone. The reduction in volume has not changed that underlying challenge.
CAPTCHA-gated phishing tactics
CAPTCHA-gated phishing began to recover while QR code attacks continued to fall. By September, Microsoft detected 3.1 million CAPTCHA-gated attacks, nearly twice the volume seen at July’s low. Activity remained well below its March peak, but the recovery ended several months of sustained decline.
Figure 6. CAPTCHA-gated phishing volume (January – September 2026)
The increase in CAPTCHA-gated phishing attacks was not confined to a single attachment format as delivery methods shifted throughout Q3, though SVG attachments were central to the initial recovery.
SVG attachment volume increased sixfold in August, accounting for almost half of September’s total CAPTCHA-gated phishing attacks. Up from 17% of attacks in July, SVGs represented 65% of CAPTCHA-gated phishing attacks in August, remained elevated at 49% in September, and were the leading delivery method at the quarter end.
Email-embedded URLs accounted for 49% of attacks in July before falling to 19% in August as SVG activity surged. URL-delivered attacks more than doubled in September, reclaiming 30% of attacks.
PDF attachments declined from 22% of attacks in July to 12% in August, remaining at 12% in September.
HTML attachments declined from 9% of attacks in July to 2% in August, then more than tripled in volume in September to account for 6% of attacks.
DOC/DOCX attachments remained comparatively uncommon throughout Q3, representing only 1% of attacks each month.
Figure 7. CAPTCHA-gated phishing distribution method share by month (April – September 2026)
Malicious payloads
The dominant risk from malicious attachments continued to be credential theft, not malware installation. Approximately 94-96% of payload-based attacks during Q3 directed recipients toward a phishing site or presented a fraudulent sign-in page locally. An attachment did not need to install software to put an account at risk.
HTML and PDF attachments remained the two most common malicious payload types during Q3, together accounting for approximately 56–62% of payload-based attacks each month, while the more significant change was the return of SVG files:
Figure 8. Malicious payloads by type
HTML attachments accounted for nearly two-thirds of malicious payloads and remained relatively steady across the quarter. HTML files ranked first in July at 32% of attacks before declining to 26% in August and recovering to 29% in September.
PDF attachments accounted for 27–30% of attacks and were the leading payload type in August and September. Volume remained comparatively stable, declining only 2% between July and September.
SVG attachments increased from 13% of attacks in July to 20% in August, when volume reached 10.1 million—the highest monthly volume in more than a year. Volume then fell 34% in September, although SVGs still represented 13% of attacks and remained roughly 50% higher than the monthly average for the first half of 2026.
DOC/DOCX attachments declined from approximately 5% of attacks in July and August to less than 3% in September, falling 76% below its monthly average volume for the first half of 2026.
ZIP/GZIP attachments declined from 5% of attacks in July to 3% in August before recovering slightly to 4% in September. Raw volume remained 24% below July.
The reduced use of Word documents alongside the renewed use of SVG files left a different mix of attachment threats, though credential theft remained the dominant objective.
Figure 9. Malicious payload file type distribution by month (June – September 2026)
CAPTCHA-gated phishing accounted for only part of the malicious SVG activity. The resurgence was therefore broader than the use of SVG files to deliver that particular technique.
Business contact impersonation
Microsoft defines business contact impersonation (BCI) 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 attacker sensitive documents.
BCI volume declined throughout Q3, totaling approximately 6.2 million attacks. That was substantially below Q2, although the comparison is influenced by the unusually large spike in April. By September, monthly activity had fallen to its lowest level since at least July 2025.
Figure 10. Monthly BCI attack volume (January – September 2026)
The reduction in overall volume also concealed differences among financial lures. Generic messages continued to dominate initial BCI contact during Q3, but explicit task and financial requests gained share as overall attack volume declined:
Generic outreach messages, such as “Are you at your desk?”, accounted for 82% of attacks in July and August before declining to 79% in September. Raw volume fell 14% across the quarter, reinforcing that operators still overwhelmingly favored establishing contact before introducing a fraudulent request.
Generic task requests represented 8–10% of attacks during Q3, increasing from 9% in July to 10% in September despite a 9% decline in raw volume.
Within the smaller subset of explicit financial requests:
Payroll update requests were the most common financial lure, accounting for 6% of attacks in July and August and 7% in September. Raw volume remained broadly stable at approximately 126,000–130,000 attacks per month.
Invoice payment requests recovered from June’s low. Volume increased 34% in July, 25% in August, and 89% in September, more than tripling between June and September. Their share reached 3% in September, its highest level since March.
Gift card requests remained at 2% of attacks each month, while raw volume declined 9% from July to September.
Figure 11. Initial BCI email content by type (Q3 2026)
The decline in BCI overall did not extend equally to the requests reaching payment and payroll staff.
Microsoft Teams threats
Microsoft observed approximately 141,000 malicious Teams call attempts during Q3. Activity peaked in July before declining 31% by September, although September volume remained 38% above the monthly average for the first half of 2026. Teams-based attacks continued to use live interactions across chat, voice, screen sharing, and remote-support tools to facilitate remote access, credential theft, and hands-on-keyboard compromise.
Figure 12. Monthly observed malicious Microsoft Teams calls (January – September 2026)
Attackers increasingly moved away from display names that explicitly announced an IT- or tech-related support role. Ordinary personal-name display names rose from 46% of the observed July sample to 88% in September, while explicit help desk identities fell from 17% to 2%.
Figure 13. Malicious Teams call impersonation comparison (Q3 2026)
This shift does not necessarily mean attackers abandoned IT support stories. A personal name can accompany a claim to work for the help desk, while the underlying account address retains technical or service-related wording. More targeted attempts also used domains resembling the intended victim organization’s domain, emphasizing that the visible name is only one part of the impersonation.
Voice phishing attempts peaked in July and then receded, but September volume remained above the levels observed early in 2026. Calls were concentrated during recipients’ weekday working hours, when a live response was more likely. These attempts included unanswered, rejected, and short-lived calls, partly reflecting Microsoft’s expanding visibility and ongoing efforts to strengthen protective measures against social engineering abuse. Attemps should not be interpreted as successful attacker interactions.
Salary review lure delivers personalized QR code attachment for device code credential capture targeting legal organizations
On August 19, 2026, Microsoft Defender Research observed a phishing campaign targeting more than 10,000 users across more than 4,800 organizations, almost exclusively located in the United States. While most phishing attacks typically don’t focus on a single vertical, this campaign targeted the professional services sector, specifically law firms and legal organizations. Messages in this campaign were sent out over a 13-hour period between 13:27 UTC on August 19, 2026, and 2:59 UTC on August 20, 2026.
Figure 14. Intended campaign targets by industry
Emails in this campaign were sent with the subject line “Salary Review” from smtp[@]wekash[.]net via Amazon Simple Email Service. The email body carried no visible text and the sole payload was a Word document attachment named Your-Q3-Compensation-Summary.docx.
Figure 15. Sample of the campaign document attachment
The Word document impersonated the recipient’s own organization, displaying company branding and addressing the recipient by name. The message claimed that the recipient’s compensation had been revised following a Q2 performance review and that updated details were ready for review. A QR code in the document carried an instruction to scan it to access the revised details. This approach moved the phishing URL out of the email body and into an image, bypassing email gateway controls that scan text-based links but do not decode QR code images.
Scanning the QR code would have directed users to an attacker-controlled phishing page impersonating a Microsoft OneDrive sign-in portal hosted on the domain splace[.]co[.]za. The page presented an alphanumeric code and instructed recipients to copy it and proceed to the Microsoft sign-in portal.
Figure 16. Sample phishing landing page
The phishing page used a device code phishing technique, which works by making an authentication request to Microsoft’s device authentication service before the recipient arrived, receiving a user code in return, and embedding that code into the page. When a recipient copied the code and proceeded, the page redirected them to the legitimate Microsoft device authentication portal at microsoft.com/devicelogin, where they entered the code and signed in. Completing that sign in would have transferred a valid session token to the attacker. The token granted persistent access to the recipient’s Microsoft 365 account without ever exposing the password and without re-triggering multifactor authentication (MFA). A countdown timer on the page signaled that each code had a limited validity window, pressing recipients to act quickly.
Spanish-language purchase order and payroll campaign leads to Agent Tesla malware
On September 21, 2026, Microsoft Defender Research observed a phishing campaign targeting more than 56,000 users across more than 8,100 organizations. The campaign primarily targeted users in Spanish-speaking countries, with Colombia accounting for the largest share of intended recipients (15%), followed by the United States (12%), Mexico (12%), Chile (11%), and Spain (8%). Like most large-scale phishing attacks, this campaign did not focus on a single vertical, but instead targeted a broad range of industries, most notably retail and consumer goods (27%), manufacturing and agriculture (19%), and financial services (13%). Messages in this campaign were sent out over an almost nine-hour period between 14:57 UTC and 23:35 UTC on September 21, 2026.
Figure 17. Timeline of campaign message volume
Two lure variations were observed throughout the duration of the campaign: a purchase order theme, which was used in 63% of messages, and a payroll theme, which was used in the remaining 37%. Both variations were sent from the address contacto06[@]carloxmextos[.]org. Sender Policy Framework (SPF), DomainKeys Identified Mail (DKIM), and Domain-based Message Authentication, Reporting, and Conformance (DMARC) all passed for that domain, so the messages did not depend on simple address forgery. The actor changed the display name to resemble a sales or human resources identity associated with the recipient’s organization. That combination gave the messages technically valid authentication while using the visible sender identity and familiar business context to support the impersonation.
The purchase order lure variation used the reply-style subject “Re: solicitud de cotización”. Its body said, “Buen Dia”, claimed that a purchase order was attached, and asked the recipient to confirm receipt before closing with the lowercase “saludos”. The abrupt wording, inconsistent capitalization, and copied professional signature made the message look like a short continuation of an existing commercial exchange while avoiding details that a recipient could easily challenge.
The attached file, Nuevo orden de compra – 21092026.pdf.uu, was a RAR archive despite its uncommon .uu ending and PDF-like name. Inside it was Nuevo orden de compra – 21092026.pdf.js, a JavaScript downloader whose second extension exposed the executable script type only after extraction. If run, the script fetched a file named Lincoln.ps1 from a campaign-controlled object in Firebase Storage, and that PowerShell payload led to Agent Tesla malware. The nested archive and misleading extensions separated the visible business document theme from the code that executed, while the cloud-hosted download gave the actor a remotely accessible staging point.
Figure 18. Redacted rendering of the purchase order lure email
The payroll-themed lure used the subject “Nomina 21.09.2026”. It addressed the recipient by name, said the September 21 payroll list was attached, and signed off as a human resources manager. The date-specific payroll pretext created an immediate work-related reason to open the file, while the personalized greeting made a bulk message appear locally relevant.
The payroll lure’s attachment, Nomina 21.09.2026.xml.001, was also a RAR archive. Extraction produced Nomina 21.09.2026.xml.exe, an Agent Tesla executable disguised with an XML-themed double extension. Unlike the purchase order delivery chain, this branch did not require a separate downloader in the supplied evidence, but both paths used the same sender infrastructure, attachment camouflage, date, and malware family. Agent Tesla is commonly used to collect credentials and other information from an infected host, so the shared final payload suggested that credential and information theft were the campaign’s likely objective.
Figure 19. Redacted rendering of the payroll lure email
Defending against email and collaboration threats
Microsoft recommends the following mitigations to reduce the impact of this threat. Check the recommendations card for the deployment status of monitored mitigations.
Microsoft helps organizations reduce the risk of phishing and social engineering in Teams through user awareness and layered, built-in protections. Users should exercise caution with external connection requests and messages, including verifying a sender’s identity and requests before acting on them. Administrators can also block external Teams users and specify which users in their organization are permitted to chat or meet with people outside the enterprise. These flexible controls help organizations manage risk for employees in sensitive roles and departments. Teams will also be introducing AI-powered phishing detection that uses conversation context to identify phishing and social engineering in higher-risk messaging scenarios, particularly first-contact chats with external users. Together, these measures help organizations collaborate more securely in Teams.
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.
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 passwordless authentication methods (for example, Windows Hello, FIDO keys, or Microsoft Authenticator) for accounts that support passwordless. 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.
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, and 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.
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 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 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
Microsoft Defender XDR customers can run the following advanced hunting queries to find related activity in their networks:
Salary review campaign emails by sender address
The following query identifies emails associated with the August 19 campaign using a message’s sending email address.
EmailEvents
| where SenderMailFromAddress == “smtp@wekash.net”
Spanish-language purchase order and payroll campaign emails by sender address
The following query identifies emails associated with the September 21 campaign using a message’s sending email address.
EmailEvents
| where SenderMailFromAddress == "contacto06@carloxmextos.org"
Indicators of compromise (IOCs)
Indicator
Type
Description
First seen
Last seen
wekash[.]net
Domain
Sender domain used to distribute campaign emails via Amazon SES
2026-08-19
2026-08-20
smtp@wekash[.]net
Email address
Sender email address observed in campaign messages
2026-08-19
2026-08-20
Your-Q3-Compensation-Summary.docx
File name
Word document attachment carrying the compensation lure and QR code
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 Binance hack hit USD 6.34B via a fake job interview, an abused AI tool and EIP-7702 delegation. The FBI points to North Korea.
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cPGuard supply chain attack: an update channel compromise pushed a backdoor in versions 5.88.12-5.88.19. Update to 5.88.25 and rotate credentials.
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The Microsoft Authenticator AuthMask flaw allowed rogue Android apps to impersonate trusted software and hijack enterprise tokens and passkeys.
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A Cash App account opened in her name has left Amanda Smith facing criminal charges and potentially up to six years in prison.404 Media reports that Smith says someone used her Social Security number (SSN) and date of birth to create an account that received money from a Facebook Marketplace scam. Allegedly, a buyer sent $1,000 for items that weren’t really for sale. A scammer had taken over someone else’s Facebook account and directed the buyer to pay a Cash App account in Smith’s name.Investig
A Cash App account opened in her name has left Amanda Smith facing criminal charges and potentially up to six years in prison.
404 Media reports that Smith says someone used her Social Security number (SSN) and date of birth to create an account that received money from a Facebook Marketplace scam.
Allegedly, a buyer sent $1,000 for items that weren’t really for sale. A scammer had taken over someone else’s Facebook account and directed the buyer to pay a Cash App account in Smith’s name.
Investigators obtained account information from Block, Cash App’s parent company. That information included Smith’s Social Security number and date of birth. Police subsequently arrested her in Pennsylvania over the alleged crime in Arkansas, a state she says she had never visited.
She spent three nights in jail. But 404 Media’s review of account records found that several account details, including the address and network used, did not match her own.
Smith also described a frustrating obstacle when she tried to investigate:
“Cash App refused to provide me with any information about the account, because I couldn’t prove that I was the owner.”
The account was associated with her closely enough to contribute to her arrest, yet she said she could not get information directly from the company. She later received account records through the criminal case.
It’s a disturbing reminder that the consequences of identity theft can go well beyond an unfamiliar charge on your bank statement. You could also find yourself accused of a crime committed using your details.
Breaches happen every day. Don’t be the last to know.
Smith suspects that information exposed in a data breach may have been used to impersonate her. When investigating, 404 Media found the phone number used for the account linked to an Amanda Smith in older breach data. They also found someone made a Venmo account using the same phone number but under another name entirely.
The source of her Social Security number and date of birth hasn’t been established, and her case is ongoing. Her experience highlights why it matters to know which of your details have been exposed.
How to protect yourself
The practical lesson is to look beyond the headline that a company “lost customer data.” What matters is which information was exposed, because different exposures call for different responses. Our guide for how to handle being involved in a data breach recommends checking the affected company’s official information before deciding what to do next.
The steps depend on the type of data that was stolen or leaked:
Email addresses and phone numbers: Be alert for phishing messages and scam calls, including messages that refer to the breach.
Passwords: Change the affected password and anywhere else you reused it. Enable multifactor authentication where available.
Payment or banking details: Contact the relevant financial institution and review your accounts for unauthorized activity.
Social Security numbers and other identifying information: Check your credit reports for unfamiliar accounts. In the US, you can freeze your credit for free with each of the three major credit bureaus: Equifax, Experian, and TransUnion. This helps prevent new credit accounts being opened in your name, but does not prevent every type of identity misuse.
If you discover an account opened in your name, contact the company’s fraud department through its official website and report the identity theft (in the US you can do that at IdentityTheft.gov). Keep copies of your reports and correspondence, and ask for written confirmation when the fraudulent account is closed.
A breach-checking service can help you identify known exposures linked to your information. Malwarebytes’ Digital Footprint Scan, for example, checks for exposures associated with your email address.
What do cybercriminals know about you?
Use Malwarebytes’ free Digital Footprint scan to see whether your personal information has been exposed online.
Cyble scanned 1.3M+ newly registered domains and found AI-built sites leaking live secrets to the browser: OpenAI keys, Stripe keys, and database tokens.
Spinning up a website no longer takes a developer. A prompt to an AI app-builder returns a working, styled, deployable site in minutes, and when one template works, the same operator clones it across a dozen domains before launch. That is also how secrets end up in plain sight.
Over a month, Cyble Research and Intelligence Labs (CRIL) s
Cyble scanned 1.3M+ newly registered domains and found AI-built sites leaking live secrets to the browser: OpenAI keys, Stripe keys, and database tokens.
Spinning up a website no longer takes a developer. A prompt to an AI app-builder returns a working, styled, deployable site in minutes, and when one template works, the same operator clones it across a dozen domains before launch. That is also how secrets end up in plain sight.
Over a month, Cyble Research and Intelligence Labs (CRIL) scanned more than 1.3 million newly registered domains, identified the ones built by AI app-builders, and read their public front-end code for exposed credentials. We built our own classifiers to spot AI-generated websites as they are registered, paired with a scanner that pulls exposed keys and credentials straight from their public code. On 35 of the 22,306 AI-built sites we identified, a genuinely private secret was sitting in the browser: live OpenAI keys, Stripe secret keys, backend database tokens, and, in several cases, a single credential cloned across a whole fleet of domains.
Thirty-five is a small number, since counting every key-shaped string on an AI-built site is easy and misleading, as most are meant to be in the browser; a single reCAPTCHA key appeared on thousands of sites. We kept only the credentials that are never supposed to leave a server. Those are the findings below.
This report walks through the two leak patterns we observed, what appears exposed, what an attacker can do with these keys, and how to shut down the exposure.
AI-built Websites are leaking the keys that power them
An AI-built site generates its content with a Large Language Model (LLM), and the key to that model often ships in the page the visitor downloads. That is the plainest pattern we found, and the most on-the-nose.
Five AI-built sites carried live OpenAI API keys in their client-side code, sixteen distinct keys across them, and four of the five are confirmed AI-generated. One AI-writing site stands out on its own: it shipped twelve different OpenAI keys, one per content category, as plain values in its bundle. Figure 1 shows a single entry, with the key masked.
Figure 1 – Live OpenAI keys embedded as plain values in an AI-writing site’s JavaScript (key masked by CRIL).
A handful of sites, but each key is sensitive to exposure. An OpenAI secret key is a billing credential: anyone who reads the page can spend the owner’s balance, exhaust the rate limit, or run the bill up until someone notices and revokes it. Twelve keys in one bundle are twelve live credentials shipped at once, and five sites like this are five accounts an attacker can exploit.
Clone-and-leak: one secret across a whole fleet
An AI builder makes the hundredth site as cheap as the first, so an operator clones a working template across many domains, and whatever secret sat in the template now sits on every copy. We saw this in two shapes.
A Slack webhook shared across a 13-domain fleet. Thirteen near-identical domains, each a short word (ask, call, chat, get, hello, hey, hi, its, join, let, meet, my, see), glued to one brand, all served the same client bundle, and all embedded the same live Slack incoming-webhook URL. Figure 2 shows the URL in the shipped bundle, masked.
Figure 2 – One Slack webhook shared across a 13-domain fleet, in each site’s shipped bundle (secret and workspace IDs masked).
Anyone who can read the page can post messages to the operator’s Slack workspace via that webhook. That works for spam, for phishing aimed at the operator’s own staff, or for flooding a channel.
One Stripe secret key across four domains and two brands. A single Stripe secret key appeared on four domains under two separate brand names. The same sk_live_ value across all four points to one operator, or one shared Stripe account, behind every site. Figure 3 shows the assignment.
Figure 3 – The same live Stripe secret key reused across four domains under two brands.
A Stripe secret key provides full API access to the account, including the ability to create charges, issue refunds, and read customer and payout records. That one key exposes the operator’s whole payment account on every domain in the fleet.
The 13-domain Slack fleet runs on Bubble, a no-code and AI app builder, as confirmed by Bubble’s x-bubble-perf response header and client markers. Bubble serves each app from a dynamic.js bundle, and any value a developer places in a client-accessible field ships inside that bundle in plain text. The Stripe cluster runs on a Next.js build instead, which shows that the pattern spans builders rather than tracing to a single platform.
What else is exposed
Four AI-built sites exposed a Supabase service role JSON Web Token (JWT) on their front ends. A service-role token bypasses row-level security and grants full read and write to the project database. In terms of impact, it sits at the top of the set because it opens the entire backend rather than a single service.
Most of the remaining secret-looking strings on AI-built sites carry no/minimal exposure.
2,172 sites carried Google API keys, which matter only if they are unrestricted.
1,461 sites exposed a Supabase or Firebase backend address, which is a real exposure only when that backend’s rules are open.
Filtering those out is why the confirmed count is 35, not several thousand. Table 1 breaks the 35 down by type. The values stay withheld, and a few sites appear under more than one row.
Exposure
Sites
What an attacker gains
OpenAI API key
5
Spend the owner’s balance, exhaust quota, run up the bill
Shared Slack webhook
13
Post arbitrary messages into the operator’s workspace
Stripe secret key
6
Full API access: charges, refunds, customer and payout data
Supabase service-role JWT
4
Full read/write to the backend database, bypassing access rules
AWS access key
5
Cloud account access, scope set by the paired secret
GitHub token / Google OAuth secret
2
Source-control or identity-provider access
Table 1 – Confirmed private-credential exposures across 22,306 AI-built sites, by type.
What an attacker can do with these
Every credential in Table 1 is a working key to a live account. An attacker reads a public web page, copies a value, and calls an API. Here is what that buys them, key by key.
OpenAI and other LLM keys: Run inference on the victim’s account until the bill or rate limit stops them. On a metered account, that is direct financial loss; on a funded one, it is a free, anonymous model endpoint that the attacker can point at anything, billed to the victim and running under their quota and identity.
Stripe secret key; Drive the victim’s payment account through Stripe’s own API: create and refund charges, push the account toward fraud, and pull the customer list, email addresses, and payout history. One key is a money problem and a data-breach problem at once.
Supabase service-role token: Read and write the entire production database, past whatever row-level security the app configured. That means stealing every user record, altering or deleting data, and planting content the app will serve back to its own visitors.
Slack incoming webhook: Post into the operator’s own Slack as if from inside. Flooding a channel is a nuisance case; the real risk is internal phishing.
AWS access key: With the paired secret and enough permission, reach into the owner’s cloud: spin up resources (crypto-mining is the usual first move), read storage buckets, or pivot further in.
GitHub token or OAuth secret: Read or push to the owner’s source repositories or misuse their identity integration.
One exposure counts many times over. When the key sits on a cloned fleet, it is live on every domain in that fleet, so an attacker who finds it on one site has compromised all of them.
Conclusion
AI app-builders made it almost free to publish a website, and just as free to clone one, and most of what they produce is worth nothing to steal.
The exceptions are what we went looking for. A small, steady set of these sites hand over the key that runs them, and when an operator copies one site across a fleet, the leak rides along to every domain.
Against the millions of domains registered each month, the number is tiny, but every hit is a live account an attacker can reach and exploit just by opening the page.
If you build on these tools, read your own shipped code before you publish it. If you defend an organization, assume your keys may surface on sites you never built and look for them.
Cyble’s Threat Intelligence Platformscontinuously monitor emerging threats, infrastructure, and activity across thedark web,deep web, and open sources.This proactive intelligence empowers organizations with early detection, impersonation, infrastructure mapping, and attribution insights. Altogether, these capabilities provide a critical head start in mitigating and responding to evolvingcyber threats.
Our Recommendations
For developers and AI-builder users:
Keep every secret key (OpenAI sk-, Stripe sk_live_, a Supabase service-role token) in a server-side function or backend workflow, never in a client-accessible field.
Use only the browser-safe variants on the front end, publishable and anon keys, and enforce access with Supabase row-level security, Firebase rules, and API key restrictions.
Rotate any key that has ever sat on the client side, and treat it as already compromised.
Read your own page source before you ship, and search it for sk-, sk_live_, service_role, and hooks.slack.com. If you find them, so can anyone.
For SOCs and defenders:
Monitor public code and newly registered domains for your own keys and webhooks; don’t just paste sites.
Treat a secret found on one domain of a template fleet as exposed on all of them, and scope the response to the fleet, not the domain.
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North Korean IT workers are paying Americans to help them get and keep remote jobs at U.S. companies, the FBI said in an updated FBI public service announcement. At the same time, the Justice Department announced charges, two arrests, and the seizure of about 187 computer devices linked to the scheme.
The FBI said these workers use stolen identities, extort victims, and threaten physical violence to demand payments. North Korea's government receives an estimated 85 to 90 percent of the revenu
North Korean IT workers are paying Americans to help them get and keep remote jobs at U.S. companies, the FBI said in an updated FBI public service announcement. At the same time, the Justice Department announced charges, two arrests, and the seizure of about 187 computer devices linked to the scheme.
The FBI said these workers use stolen identities, extort victims, and threaten physical violence to demand payments. North Korea's government receives an estimated 85 to 90 percent of the revenue they generate, money that helps fund its nuclear weapons and other military programs.
How North Korean IT Workers Use American Facilitators
According to the FBI, North Korean IT workers are hiring Americans for a growing list of tasks. These include appearing on camera, sitting for job interviews, verifying fake identities, lending social media or professional networking accounts, shipping packages, completing urinalysis tests or fingerprint submissions, and keeping work laptops online from their homes.
[caption id="attachment_114769" align="aligncenter" width="600"] Image Source: FBI Cyber Division[/caption]
The FBI said some workers deliberately target people under financial stress, looking for those more likely to follow instructions without questions if paid. Taking part in these activities is illegal.
Home setups that host company laptops, known as laptop farms, have helped the workers hide their locations for years. The FBI said they now run more laptop farms with fewer laptops at each to avoid single points of failure. Some also land remote IT jobs and then subcontract the work to freelancers in Pakistan, India, Nigeria, or nearby countries for a fraction of the salary.
Extortion, Threats, and Identity Theft
Identity theft sits at the center of the scheme. Most names and addresses given to employers come from stolen identities, and workers often buy accounts from identity verification providers to check that stolen details will pass background checks.
The FBI said that after being fired, some workers made death threats against former managers and their families to collect more money. Others threatened to leak sensitive corporate data unless paid large lump sums. Some hired U.S.-based facilitators to show up in person at victim companies to intimidate staff.
The workers also target jobs requiring U.S. government security clearances, positions with cleared defense contractors, and active-duty U.S. military members to host laptops.
Justice Department Charges Linked to North Korean IT Workers
In Ohio, a four-count indictment charges a scheme that ran from 2019 to around July 2025. U.S. nationals Michael James Bostelle of Pennsylvania and Juan Cecilio Pena Carrillo of Texas were arrested. Ten China-based individuals were also charged, and two more defendants remain under seal.
Prosecutors say the scheme affected more than 70 U.S. employers and generated about $3 million, believed to have gone to sanctioned DPRK-controlled entities. Victims included health care, communications, cyber support, retail, and manufacturing firms across Ohio, 16 other states, and the District of Columbia.
Under Operation Lonestar Roundup, the FBI carried out searches and other actions at more than 40 Texas residences between Sept. 21 and Sept. 25. Agents seized about 187 laptops and KVM devices. Cybersecurity firm CrowdStrike tracks the group as "Famous Chollima.
FBI Cyber Division Assistant Director Brett Leatherman said 14 individuals have been charged and called close coordination with the private sector central to the operation.
What Companies Should Know About North Korean IT Workers
The FBI said no single red flag reliably identifies North Korean IT workers. It recommends an "identity in depth" approach, using layered checks throughout employment. Warning signs include remote desktop tools such as AnyDesk and TeamViewer, KVM over IP devices like TinyPilot and PiKVM, unrelated software on work devices, and frequent changes in bank accounts or addresses.
Using E-Verify, requiring a U.S. passport, and live identity checks can add friction, the FBI said, while relying only on name ban lists may block real applicants.
Individuals who receive threats should call 911. Victims or anyone approached can contact a local FBI field office and file a complaint at www.ic3.gov. The State Department has offered rewards of up to $5 million for information that disrupts North Korea's illicit financial activities.
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In this article
Star Blizzard TTPs observed in 2026Defending against Star Blizzard and RedFlick-related activityMicrosoft Defender detectionsHunting queriesIndicators of compromise
Since January 2026, Microsoft has observed Russian state threat actor Star Blizzard evolve their detection evasion capabilities through large-scale phishing campaigns, the use of accounts on compromised websites, and a novel malware delivery technique that Microsoft tracks as “Re
Since January 2026, Microsoft has observed Russian state threat actor Star Blizzard evolve their detection evasion capabilities through large-scale phishing campaigns, the use of accounts on compromised websites, and a novel malware delivery technique that Microsoft tracks as “RedFlick”. These changes represent a notable shift in the actor’s operational tradecraft and support ongoing cyberespionage activity targeting Ukrainian individuals and institutions as well as international non-government organizations (NGOs), Western think tanks, governments, and other organizations associated with international policy—particularly those with a nexus in supporting Ukraine.
As part of this evolution, Star Blizzard adopted RedFlick, a malware delivery technique that helps evade detection by initiating a set of scheduled tasks to deploy the actor’s custom backdoor, CosmicPulse. This technique is a notable departure from the actor’s previous use of ClickFix-based infection chains which required victims to complete multiple actions before CosmicPulse could be installed. By contrast, the RedFlick infection flow only requires a single user interaction, reducing friction in the compromise process. Combined with the actor’s shift toward large-scale phishing operations during the same period, these changes likely improve Star Blizzard’s ability to reach more targets, evade detection, and increase the likelihood of successful compromise.
This blog provides updated technical analysis of Star Blizzard’s tactics, techniques, and procedures (TTPs) observed throughout 2026, building on our 2025 and 2023 blogs. It details the actor’s evolving phishing, persistence, and malware delivery techniques, and provides recommendations, indicators of compromise (IOCs), detections, and hunting guidance to help organizations identify and defend against RedFlick-related activity. As with any observed nation-state actor activity, Microsoft directly notifies customers that have been targeted or compromised, providing them with recommendations and mitigations to secure their accounts.
Star Blizzard TTPs observed in 2026
Star Blizzard is attributed by the United States Cybersecurity and Infrastructure Agency (CISA) as subordinate to the Russian Federal Security Service Centre (FSB) Centre 18. Star Blizzard periodically overhauls their TTPs to avoid detection, often in response to public exposure of the actor’s campaigns that have involved targeted social engineering through messaging apps and credential theft. Since Google Threat Intelligence Group published its report on Star Blizzard’s COLDCOPY malware in October 2025, Microsoft observed the actor refine their initial access and evasive techniques to include:
Moving away from targeted spear phishing to large-scale initial contact phishing campaigns
Using compromised websites to create accounts to send phishing emails
Updating malware deployment to facilitate the installation of a CosmicPulse downloader
As of the writing of this blog, the RedFlick campaigns have targeted Ukrainian individuals and institutions, as well as international NGOs, think tanks, governments, and financial institutions that have supported Ukraine politically or financially. Microsoft has observed this activity affect over 100 organizations primarily in the United States and United Kingdom, consistent with Star Blizzard’s longstanding targeting priorities.
Microsoft continues to observe some previously reported Star Blizzard phishing techniques throughout 2026; however, the TTPs discussed in this blog have been associated primarily with the actor’s new larger-scale phishing campaigns.
Larger-scale initial contact phishing
Microsoft previously reported on Star Blizzard’s spear-phishing campaigns observed during 2023-2024. During these operations, the actor continued to rely on their conventional TTPs such as initiating email contact with targets before sending a follow-up containing a malicious link, to actor-controlled/compromised infrastructure purposed for credential theft, while impersonating known political or diplomatic figures to lure victims into responding.
In 2026, Microsoft observed Star Blizzard shift from exclusively targeted spear-phishing operations to also conducting larger-scale phishing campaigns. The larger-scale phishing operations were observed at a scale not previously seen from the actor, ranging from tens to hundreds of email messages per campaign. This change likely reflects the actor’s adoption of a mass-mailing phishing platform to automate campaign execution and increase the likelihood of successful compromises by significantly expanding the initial targeting pool. The progression of these campaigns is summarized in the following timeline, including examples of Star Blizzard’s phishing subject lines, targeting details, and the malware delivery methods observed across each campaign:
January
“Повідомлення про результати податкової перевірки” (Notice of tax audit results) – Campaign targeting unidentified Ukraine persons with an attached RedFlick lure.
February
“списання з Вашого рахунку за оплату штрафу” (Debiting from your account for payment of a fine) – Campaign targeting unidentified Ukraine persons with an attached RedFlick lure.
March
“Invitation to an IISS [Private Roundtable/Closed-Door Discussion] on European Security” – Initial contact campaign targeting government officials, security researchers, academia, media, and NGOs. Respondents received a RedFlick lure attachment.
“Invitation to a Closed CES Roundtable Discussion” – Initial contact campaign targeting US and Europe technology-sector organizations. Respondents received a RedFlick lure attachment.
“Atlantic Council Closed-Door Strategic Discussion” – Initial contact campaign targeting government officials, foreign policy practitioners, security researchers, academia, media, and NGOs. Respondents received a link to DarkSword iOS backdoor installation.
April
“Closed-Door Online Session on Global Capital Allocation & M&A” – Initial contact campaign targeting international financial organizations and researchers. Respondents received a RedFlick lure attachment.
May
“Future of Peace Operations Forum – A Closed Strategic Dialogue” – Initial contact campaign targeting diplomatic and multilateral organizations. Respondents received a RedFlick lure attachment.
“Future of Liberty Forum” – Initial contact campaign targeting employees of a US-based think tank. Respondents received a RedFlick lure attachment.
June
“Invitation to the MAMA Summit on the Current Situation Surrounding the Ukrainian Crisis” – Initial contact campaign targeting incumbent/former diplomatic staff. Respondents received a RedFlick lure attachment.
“Invitation to the Chatham House London Conference 2026 – 9 July 2026” – Initial contact campaign targeting think tanks, NGOs, and national parliamentary. Respondents received a RedFlick lure attachment.
July
“Thought you might find this USUBC roundtable of interest” – Initial contact campaign targeting think tanks, NGOs, and Ukraine civil society. Respondents received a RedFlick lure attachment.
“Інформація щодо тимчасового відключення водопостачання” (Information about temporary water supply shutdown) – Targeted Kyiv-based hotels with an attached RedFlick lure.
August
“Payment Advice Note from 06.08.2026” – Targeted employees of an international financial organization with an attached RedFlick lure.
Once a recipient responds to the initial phishing email, Star Blizzard typically sends a follow-up message containing a password-protected RAR or ZIP archive. The archive contains files that initiate the RedFlick infection flow. The password is included as an image in the follow-up email shown in Figure 1, along with additional examples of Star Blizzard follow-up emails below:
Figure 1. July 2026 RedFlick campaign follow-up email regarding an “omitted” attachmentFigure 2. June 2026 RedFlick campaign follow-up email with the subject line “Invitation to the Chatham House London Conference 2026”Figure 3. August 2026 RedFlick campaign follow-up email with a payment notice subject line sent to all targets
Since January 2026, Microsoft observed at least 13 distinct large-scale phishing campaigns targeting primarily NGOs, think tanks, and government organizations worldwide. The earliest campaigns, observed between January and February, targeted unspecified users of the Ukraine email provider Ukr.net. These emails impersonated Ukrainian authorities and were themed as notifications of a tax audit or outstanding fine.
Beginning in March 2026, Star Blizzard expanded targeting outside of Ukraine. Subsequent campaigns frequently used lures themed as invitations to conferences or events purportedly organized by a reputable think tank or NGO. Microsoft also observed the actor target multiple individuals within the same organization, with phishing emails often crafted to appear as internal communications originating from the targeted organization itself. The actor’s shift from Ukraine-focused operations to global targets could indicate Star Blizzard initially targeted Ukraine to test their new capabilities.
The large-scale campaigns have demonstrated capabilities previously unassociated with Star Blizzard. For example, a campaign observed in mid-August 2026 employed steganography to conceal identifiers. Throughout 2026, Star Blizzard has also continued to develop additional operational capabilities. Notably, ProofPoint reported in March that the actor had targeted vulnerable Apple iOS devices to deploy the DarkSword backdoor.
Creating accounts on compromised websites
Since March 2026, Star Blizzard has made another notable change to their TTPs to support the higher-volume phishing operations, using accounts created on compromised websites to send phishing emails to targets. This change coincided with the actor’s shift to larger-scale phishing campaigns and has been observed almost exclusively in support of these operations. Previously, the actor would create accounts on free email services (predominantly using Protonmail and Microsoft consumer accounts) to impersonate an individual that would be well known to the prospective target, whether it was a political figure, academic, or former diplomat. In the large-scale campaigns, Star Blizzard has used accounts created on websites hosted on CPanel and WordPress, using the same account name across multiple website domains. Microsoft Threat Intelligence assesses with high confidence that these websites have been compromised by Star Blizzard for this purpose.
Updating malware delivery and installation TTPs
Between January and August 2026, Microsoft observed multiple waves of Star Blizzard phishing campaigns alongside notable changes in the actor’s initial access TTPs, particularly the use of RedFlick scheduled tasks. During this period, Microsoft observed three significant shifts in the threat actor’s delivery techniques.
From ClickFix to VHDX
Figure 4. VHDX lure execution chain
In mid-January 2026, Microsoft observed the use of a malicious Virtual Hard Disk v2 (VHDX), delivered through a phishing email containing a password-protected ZIP file. The VHDX file ships a malicious LNK file disguised as a PDF document, alongside a hidden directory containing a BAT script and a legitimate decoy PDF.
When the victim opens the LNK file, conhost.exe is launched in a hidden window and cmd.exe is subsequently spawned to execute the embedded BAT script:
The BAT file opens the decoy PDF and invokes SSH.exe with PermitLocalCommand enabled, ultimately downloading and executing a remotely hosted MSI installer:
In multiple campaigns, Microsoft observed an MSI installer creating a scheduled task that uses control.exe to download and execute a remotely hosted CosmicPulse downloader masquerading as a Control Panel applet (CPL). Unlike earlier campaigns that relied on ClickFix lures and user interaction, this approach relies on compiling the CosmicPulse downloader as a Control Panel applet DLL.
The shift from interactive user execution to remote execution and masquerading as a CPL item highlights an evolution in both persistence and defense evasion techniques.
CosmicPulse downloader
The Control Panel applet DLL is a downloader with the sole purpose of downloading and installing a version of CosmicPulse, a malicious Python backdoor, on the target device. The downloader is also known publically as NOROBOT or BAITSWITCH.
Similar to previous versions, this downloader downloads, persists, and executes a version of CosmicPulse on the infected device. Upon execution, it downloads two ZIP files and stores them on disk. It then writes an encrypted AES key to the HKEY_CURRENT_USER\Software\Classes\.mollis registry key. One ZIP file contains a Python 3.8 64-bit package and a Python file that serves as the CosmicPulse bootstrapper. The bootstrapper reads the encrypted key from the registry, recovers it using an embedded key in AES-ECB mode, and then uses the recovered key to decode the CosmicPulse payload (also known as YESROBOT) contained in the second ZIP file. The below image shows the process of the CosmicPulse installation.
Since January 2026, Microsoft has observed the CosmicPulse backdoor going through various little changes to circumvent existing signatures. However, the capabilities and purpose of this backdoor remain the same as described in previous articles.
Persistence through multiple scheduled tasks
In April 2026, Microsoft observed Star Blizzard changing persistence tactics to include RedFlick scheduled tasks. Whereas a malicious MSI file installed a single scheduled task in January—by April, the actor’s MSI installer created three scheduled tasks masquerading as legitimate network components, each with their own purpose. The TTPs have overlaps with the spear-phishing campaigns reported by the Digital Security Lab Ukraine (DLUA) in June 2026. In at least one incident, Microsoft has observed either the first or third task deploying an instance of CosmicPulse on the infected machine.
Figure 6. Scheduled task installed through MSI installer observed in April 2026
Task 1 – Registration beaconing and dynamic DLL execution task
The first task masquerades as a legitimate Internet Quality Test Connection task. The scheduled command serves two purposes. First, it sends a UTF-16 and Base64-encoded string containing the network or computer name and the username of the infected device to the C2 server. Thereby, it exfiltrates basic information about the infected host.
Second, an attacker-controlled DLL can be executed remotely through invoking Control_RunDLL from Shell32.dll. Microsoft was unable to obtain a variant of this payload. The task uses a WebDAV UNC path to access the remote payload, allowing the resource to be retrieved over HTTP rather than through a conventional SMB network share.
Task 2 – Supporting task
The second installed task, named Network Configuration Manager, supports the WebDAV-based execution used by the other tasks. The invoked command causes Windows to treat the UNC-style path as a WebDAV resource and process it through the WebDAV redirector and associated WebClient functionality.
Through WebDAV, Windows applications can interact with a remote web resource as though it is a file or folder path while the underlying communication is performed using HTTP/HTTPS rather than conventional SMB. The task therefore prepares the WebDAV client functionality required by the other scheduled tasks.
Task 3 – CosmicPulse downloader execution
The third installed task, named System Health Monitor, uses control.exe to access a remote path hosted on the hardcoded C2 server and execute the next stage.
Hiding payloads in PDF files
In July 2026, Microsoft observed another change in Star Blizzard’s delivery techniques, this time involving a multistage execution chain.
Figure 7. Overview of attack chain from July 2026
The phishing email contains a password-protected RAR archive nested inside a ZIP file. After the archive is opened, it exposes an LNK file.
When executed, the LNK file uses conhost.exe and curl to download a PDF from an actor-controlled server:
After downloading the PDF, the command runs a second PowerShell payload. This payload searches the PDF for the magic header cAB, extracts the subsequent 208 bytes of Base64-encoded data, and executes the decoded command through PowerShell. The resulting conhost command, shown below, attempts to download and install another MSI file:
As in previous campaigns, the Python installer contains obfuscated PowerShell code. When executed, the code attempts to create two additional scheduled tasks. The first scheduled task again serves as a helper task, consistent with the supporting tasks observed in previous campaigns. The second scheduled task attempts to download and execute a CPL applet again.
Star Blizzard’s shift from ClickFix-based delivery chains to VHDX files, expanded use of scheduled tasks for persistence, and concealment of payloads within PDF files demonstrate the actor’s continued ability to adapt their delivery methods in response to evolving defenses. The actor’s recent use of PDFs to conceal payloads further illustrates efforts to bypass layered defenses through increasingly complex execution chains. Taken together, these changes demonstrate Star Blizzard’s continued efforts to streamline malware deployment, reduce required user interaction, and improve operational scalability while maintaining its longstanding espionage objectives.
Defending against Star Blizzard and RedFlick-related activity
Microsoft Threat Intelligence advises organizations that are most likely at risk—primarily those in government, NGOs, or think tanks adjacent to Ukraine policy or support—to implement the following recommendations to mitigate against Star Blizzard activity.
Protecting against Star Blizzard phishing
As previously reported, Star Blizzard’s success relies on sophisticated, targeted phishing lures that trick users into engaging with the actor by impersonating trusted contacts. While Star Blizzard has changed their overall TTPs, the actor continues to employ the same phishing patterns against users:
Star Blizzard continues to impersonate trusted contacts that users or organizations would expect an email from. Star Blizzard also continues using email from free providers such as Proton @proton[.]me, particularly in Evilginx spear-phishing operations observed throughout 2026. However, despite the actor’s recent shift toward leveraging compromised legitimate websites that impersonate real individuals associated with a target’s organization, users can still remain vigilant for other Star Blizzard TTPs, several of which have been observed in previous campaigns:
Star Blizzard continues to make initial contact with a target by sending an email, usually without an attachment.
If a user engages, Star Blizzard will follow up with an email with an attachment. In this particular campaign, it has been an archive file such as a RAR or ZIP.
The email sender contains names of actual persons and organizations they belong to—however, the organization is not within the root or registered domain itself but in the username or local part of the email address. This should draw a red flag to the email’s authenticity. When in doubt, directly contact the person you think sent the email using a previously established and trusted contact method such as known email address or phone number.
The emails in these RedFlick campaigns are often sent in bulk.
To best mitigate against this activity, Microsoft suggests the following policies to strengthen network environments against Star Blizzard phishing operations:
Microsoft also recommends the following mitigations to reduce the impact of this threat
Run endpoint detection and response (EDR) in block mode so that Microsoft Defender for Endpoint can block malicious artifacts, even when your non-Microsoft antivirus does not detect the threat, or when Microsoft Defender Antivirus is running in passive mode. EDR in block mode works behind the scenes to remediate malicious artifacts that are detected post-compromise.
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.
Configure investigation and remediation in full automated mode to allow Microsoft Defender for Endpoint to take immediate action on alerts to resolve breaches, significantly reducing alert volume.
Turn on cloud-delivered protection and automatic sample submission in Microsoft Defender Antivirus to cover rapidly evolving attacker tools, techniques, and behaviors. These capabilities use artificial intelligence and machine learning to quickly identify and stop new and unknown threats.
Use security defaults as a baseline set of policies to improve identity security posture. For more granular control, enable Conditional Access policies. Conditional Access policies evaluate sign-in requests using additional identity driven signals like user or group membership, IP location information, and device status, among others, and are enforced for suspicious sign-ins. Organizations can protect themselves from attacks that leverage stolen credentials by enabling policies such as compliant devices or trusted IP address requirements.
Continuously monitor suspicious or anomalous activities. Investigate sign-in attempts with suspicious characteristics (for example, location, ISP, user agent, and use of anonymizer services).
Turn on 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.
Enable network protection to prevent applications or users from accessing malicious domains and other malicious content on the internet.
Configure Microsoft Defender for Office 365 to recheck links on click. Safe Links provides URL scanning and rewriting of inbound email messages in mail flow, and time-of-click verification of URLs and links in email messages, other Office 365 applications such as Teams, and other locations such as SharePoint Online. Safe Links scanning occurs in addition to the regular anti-spam and anti-malware protection in inbound email messages in Exchange Online Protection (EOP). Safe Links scanning can help protect your organization from malicious links that are used in phishing and other attacks.
Use the Attack Simulator in Microsoft Defender for Office 365 to organize realistic, yet safe, simulated phishing and password attack campaigns in your organization by training end users against clicking URLs in unsolicited messages and disclosing their credentials. Training should include checking for poor spelling and grammar in phishing emails or the application’s consent screen as well as spoofed app names, logos, and domain URLs appearing to originate from legitimate applications or companies. Note that Attack Simulator testing only supports phishing emails containing links at this time.
Utilize Windows Firewall, Windows Firewall with Advanced Security, or an enterprise firewall/filtering solution to help prevent or restrict outbound SSH connection attempts to external or public networks that are not essential for business.
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.
Tactic
Observed activity
Microsoft Defender coverage
Initial access
– Phishing emails with attached archive files or PDFs throughout the campaign – VHDX file executes malicious LNK disguised as a PDF; use of LNK to hide malicious payload across all campaigns – LNK file uses curl to download a PDF from an actor-controlled server
Microsoft Defender for Endpoint – Star Blizzard Activity Group – Suspected PDF phishing detected – Suspicious phishing activity detected – Suspicious LNK execution from container – Suspicious file download via curl
Execution
– Execution of RedFlick scheduled task and CosmicPulse backdoor – MSI file installs scheduled tasks across all campaigns
Microsoft Defender Antivirus – Trojan:Script/RedFlick – Backdoor:Script/CosmicPulse – Backdoor:Python/CosmicPulse
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.
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.
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
Microsoft Defender XDR customers can run the following advanced hunting queries to find related activity in their networks:
Conhost.exe invokes curl
The following query will detect the use of conhost.exe to launch curl to download a decoy PDF from an actor-controlled server, which Star Blizzard used in July 2026. (Note that this query may detect activity not related to Star Blizzard or necessarily malicious. Please investigate findings to determine if the activity is legitimate.)
DeviceProcessEvents
| where Timestamp > ago(7d)
| where FileName == "conhost.exe"
| where ProcessCommandLine has "curl"
| project Timestamp, DeviceName, AccountName, ProcessCommandLine, InitiatingProcessCommandLine, InitiatingProcessFileName, DeviceId, ProcessId, ProcessUniqueId, InitiatingProcessUniqueId
Invoke SSH to launch local command line
The following query will detect the invocation of SSH to initiate a local command prompt, which Star Blizzard used in January 2026 to download and execute a remotely hosted MSI installer. (Note that this query may detect activity not related to Star Blizzard or necessarily malicious. Please investigate findings to determine if the activity is legitimate.)
DeviceProcessEvents
| where Timestamp > ago(7d)
| where ProcessCommandLine has "ssh.exe"
| where ProcessCommandLine has "PermitLocalCommand=yes"
| where ProcessCommandLine has "LocalCommand=cmd.exe"
| project Timestamp, DeviceName, AccountName, ProcessCommandLine, InitiatingProcessCommandLine, InitiatingProcessParentFileName, DeviceId, ProcessId, InitiatingProcessId, ReportId
Persistence through scheduled tasks
The following query will detect Star Blizzard’s uniquely named scheduled tasks that attempt to masquerade as legitimately-named tasks, used for persistence by Star Blizzard in April 2026.
union isfuzzy=true
(
DeviceProcessEvents
| where Timestamp > ago(7d)
| where ProcessCommandLine has_any ("Internet Quality Test Connection","Network Configuration Manager","System Health Monitor") or AdditionalFields has_any ("Internet Quality Test Connection","Network Configuration Manager","System Health Monitor")
| project Timestamp, DeviceName, ActionType, ProcessCommandLine, AdditionalFields
, RegistryKey = tostring(dynamic(null)), RegistryValueName = tostring(dynamic(null))
, SourceTable = "DeviceProcessEvents"
, ProcessId, AccountName, AccountDomain, AccountSid
)
,
(
DeviceEvents
| where Timestamp > ago(7d)
| where ProcessCommandLine has_any ("Internet Quality Test Connection","Network Configuration Manager","System Health Monitor") or AdditionalFields has_any ("Internet Quality Test Connection","Network Configuration Manager","System Health Monitor") or RegistryKey has_any ("Internet Quality Test Connection","Network Configuration Manager","System Health Monitor") or RegistryValueName has_any ("Internet Quality Test Connection","Network Configuration Manager","System Health Monitor")
| project Timestamp, DeviceName, ActionType, ProcessCommandLine, AdditionalFields, RegistryKey, RegistryValueName
, SourceTable = "DeviceEvents"
, ProcessId = long(null), AccountName = "", AccountDomain = "", AccountSid = ""
)
,
(
DeviceRegistryEvents
| where Timestamp > ago(7d)
| where RegistryKey has_any ("Internet Quality Test Connection","Network Configuration Manager","System Health Monitor") or RegistryValueName has_any ("Internet Quality Test Connection","Network Configuration Manager","System Health Monitor") or RegistryValueData has_any ("Internet Quality Test Connection","Network Configuration Manager","System Health Monitor") or InitiatingProcessCommandLine has_any ("Internet Quality Test Connection","Network Configuration Manager","System Health Monitor")
| project Timestamp, DeviceName, ActionType
, ProcessCommandLine = InitiatingProcessCommandLine, AdditionalFields = ""
, RegistryKey, RegistryValueName
, SourceTable = "DeviceRegistryEvents"
, ProcessId = long(null), AccountName = "", AccountDomain = "", AccountSid = ""
)
Microsoft Sentinel
Microsoft Sentinel customers can use the TI Mapping analytics (a series of analytics all prefixed with ‘TI map’) to automatically match the malicious domain indicators mentioned in this blog post with data in their workspace. If the TI Map analytics are not currently deployed, customers can install the Threat Intelligence solution from the Microsoft Sentinel Content Hub to have the analytics rule deployed in their Sentinel workspace.
Detect network IP and domain indicators of compromise using ASIM
The following query checks IP addresses and domain IOCs across data sources supported by ASIM network session parser.
let lookback = 30d;
let ioc_ip_addr = dynamic(["103.245.231.248", "2.57.241.246", "89.125.209.168", "103.245.231.79", "45.84.59.66", "103.160.59.97"]);
let ioc_domains = dynamic(["etia.ca", "groy.cc", "gliderrompercycl.com", "muvb.net", "divekickspolic.org", "matjk.click", "bpdaersa.click", "stuseamandesilt.org", "Itechx.tel", "guach.net", "ruten.observer", "byveo.org", "secure-dns-hub.com", "qumel.link", "cyrna.top", "drasw.club"]);
_Im_NetworkSession(starttime=todatetime(ago(lookback)), endtime=now())
| where DstIpAddr in (ioc_ip_addr) or DstDomain has_any (ioc_domains)
| summarize FirstSeen=min(TimeGenerated), LastSeen=max(TimeGenerated), EventCount=count()
by SrcIpAddr, DstIpAddr, DstDomain, Dvc, EventProduct, EventVendor
Detect Web Sessions IP and file hash indicators of compromise using ASIM
The following query checks IP addresses, domains, and file hash IOCs across data sources supported by ASIM web session parser.
let lookback = 30d;
let ioc_ip_addr = dynamic(["103.245.231.248", "2.57.241.246", "89.125.209.168", "103.245.231.79", "45.84.59.66", "103.160.59.97"]);
let ioc_domains = dynamic(["etia.ca", "groy.cc", "gliderrompercycl.com", "muvb.net", "divekickspolic.org", "matjk.click", "bpdaersa.click", "stuseamandesilt.org", "Itechx.tel", "guach.net", "ruten.observer", "byveo.org", "secure-dns-hub.com", "qumel.link", "cyrna.top", "drasw.club"]);
_Im_WebSession(starttime=todatetime(ago(lookback)), endtime=now())
| where DstIpAddr in (ioc_ip_addr)
or DstDomain has_any (ioc_domains)
or Url has_any (ioc_domains)
| summarize FirstSeen=min(TimeGenerated), LastSeen=max(TimeGenerated), EventCount=count()
by SrcIpAddr, DstIpAddr, DstDomain, Url, Dvc, EventProduct, EventVendor
Virtual Disk Image file with file name Documents.vhdx; observed in January campaign against Ukraine; contained in 9707a8694e954e9ee13e839d6e5905ce626c0837c7c90da6d1025bfbe152866b
Password protected email attachment with file name Payment Advice Note.zip; used in August campaign in which the actor introduces a new TTP of sending unique ZIP files to each target; Password: BirdMouseCrab
etia[.]ca
Domain
Host for RedFlick MSI installer in January 2026 campaign
103.245.231[.]248
IPv4
Host for CosmicPulse downloader DLL in January 2026 campaign
groy[.]cc
Domain
Host for RedFlick MSI installer in February 2026 campaign
2.57.241[.]246
IPv4
Host for CosmicPulse downloader DLL in February 2026 campaign
gliderrompercycl[.]com
Domain
Host for CosmicPulse backdoor download
muvb[.]net
Domain
Host for RedFlick MSI installer in February 2026 campaign
89.125.209[.]168
IPv4
Host for CosmicPulse downloader DLL in February 2026 campaign
divekickspolic[.]org
Domain
Host for CosmicPulse backdoor download
matjk[.]click
Domain
Host for RedFlick MSI installer in March 2026 campaign
bpdaersa[.]click
Domain
Host for RedFlick MSI installer in March 2026 campaign
103.245.231[.]79
IPv4
Host for CosmicPulse downloader DLL in March 2026 campaign
stuseamandesilt[.]org
Domain
Host for CosmicPulse backdoor download
Itechx[.]tel
Domain
Host for RedFlick MSI installer in April 2026 campaign
45.84.59[.]66
IPv4
Host for CosmicPulse downloader DLL in April 2026 campaign
guach[.]net
Domain
Host for RedFlick PowerShell code installer in June 2026 campaign
ruten[.]observer
Domain
Host for CosmicPulse downloader DLL in June-July 2026 campaigns
byveo[.]org
Domain
Host for RedFlick PowerShell code installer in July 2026 campaign
secure-dns-hub[.]com
Domain
Host for CosmicPulse downloader DLL in July 2026-current campaigns
103.160.59[.]97
IPv4
Host for CosmicPulse downloader DLL in July 2026 campaign
qumel[.]link
Domain
Host for CosmicPulse downloader DLL in July 2026 campaign
cyrna[.]top
Domain
Host for RedFlick MSI installer in August 2026 campaign
drasw[.]club
Domain
Host for CosmicPulse downloader DLL in August 2026 campaign
To hear stories and insights from the Microsoft Threat Intelligence community about the ever-evolving threat landscape, listen to the Microsoft Threat Intelligence podcast.
Discover how the new iOS 27 Auto Lock feature protects your iPhone. This advanced anti-theft security automatically locks snatched devices to secure data.
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What HappenedOn 25 August 2026, Manchester Airports Group (MAG), the operator of Manchester Airport, London Stansted Airport, and East Midlands Airport, reported they recently suffered data breach.Personal information belonging to approximately 8.7 million customers was reportedly accessed. The majority of affected records involve email addresses collected via in-airport Wi-Fi sign ups, alongside customer data from car parking, airport lounge, and Fast Track security bookings.According to BBC r
On 25 August 2026, Manchester Airports Group (MAG), the operator of Manchester Airport, London Stansted Airport, and East Midlands Airport, reported they recently suffered data breach.
Personal information belonging to approximately 8.7 million customers was reportedly accessed. The majority of affected records involve email addresses collected via in-airport Wi-Fi sign ups, alongside customer data from car parking, airport lounge, and Fast Track security bookings.
According to BBC reports, the cybercriminals behind the attack issued a ransom demand to MAG. MAG said it had to temporarily suspended access to its online "Manage My Booking" service but importantly said that passenger safety, aviation security, and flight operations remained uncompromised and operated normally.
On 30 August, the MAG breach was then claimed by an known data extortion group called FulcrumSec, which told BleepingComputer that it stole approximately 86 GB of data.
The FulcrumSec group claims it obtained access using airport-specific Iterable API credentials exposed in client-side JavaScript and that the stolen material includes nearly 200,000 records related to upcoming travel during the remainder of 2026.
Analyst Comment
This breach highlights a common cyber risk pattern around secondary customer services (Wi-Fi portals, parking systems, lounge bookings) often present softer targets than core operational networks. While MAG’s air traffic control and aviation security systems remained segregated and secure, external customer-facing web applications harboured large volumes of Personally Identifiable Information (PII). Although the no payment card details were stolen, the exfiltrated dataset (email, phone, home postcode, vehicle registration) is ideal for tailored targeted phishing and smishing (SMS scams) campaigns, as well as identity theft fraud.
The ransom demand cited by the BBC and claims by FulcrumSec reflects the modern trend of cybercriminals increasingly focus on exfiltrating sensitive PII for extortion, monetising stolen data foregoing the need to encrypt internal infrastructure and cause operational downtime.
The reason MAG’s system was exploited was allegedly due to exposed API credentials in client-side JavaScript. Notably, this is a well-known TTP of FulcrumSec who has stated they leveraged the same issue to target Arup.
While many cybercriminals utilise stolen PII for financial fraud and phishing, state-sponsored advanced persistent threat (APT) groups are likely to also look to exploit this specific combination of datasets as a goldmine for espionage, counter-intelligence, surveillance, and strategic targeting.
Defensive Takeaways
Hunt for Credential Exposure: FulcrumSec has had success multiple times identifying exposed credentials in web app code. Arup Group was also victimised this way. This highlights the importance of thorough and continuous testing during active development and changes pushed to production environments. A basic procedural review of the application’s security could have caught and mitigated this issue.
Review Your Security Architecture: This breach highlighted the importance of segregated ancillary web platforms (such as guest Wi-Fi and parking reservation tools) from core networks. Due to segregation, MAG was able to suspend certain portals while keeping core business operations running without significant disruption.
Proactive Public Communication: MAG did well to proactively issue clear public guidance advising customers on what was and was not taken, helping mitigate downstream fraud risk before attackers exploit the data and before the threat actors publicly claimed the breach.
A North Korean cyber actor group known as WaterPlum, also referred to as "Contagious Interview," has infected at least 30,000 devices across more than 100 countries. The group has been stealing cryptocurrency from IT professionals worldwide.
A joint advisory was issued on September 18, 2026, by Japan's National Police Agency and National Cybersecurity Office, the US FBI and Department of Defense Cyber Crime Center, Australia's Signals Directorate, and Germany's Federal Intelligence Service an
A North Korean cyber actor group known as WaterPlum, also referred to as "Contagious Interview," has infected at least 30,000 devices across more than 100 countries. The group has been stealing cryptocurrency from IT professionals worldwide.
A joint advisory was issued on September 18, 2026, by Japan's National Police Agency and National Cybersecurity Office, the US FBI and Department of Defense Cyber Crime Center, Australia's Signals Directorate, and Germany's Federal Intelligence Service and Federal Office for the Protection of the Constitution.
How WaterPlum Hackers Operate
The agencies assess that WaterPlum actors and certain North Korean IT workers operate under the 313 General Bureau of the Munitions Industry Department, part of the Workers' Party of Korea's Central Committee. The group poses as prospective employers, targeting software developers and IT professionals by impersonating artificial intelligence, cryptocurrency, or non-fungible token companies, and by using recruiting services.
During fake technical interviews, victims are instructed to download files to complete coding assignments or fix errors on video calls. These files carry malicious Node Package Manager packages embedded with BeaverTail malware, InvisibleFerret, OtterCookie, OtterCandy, or StoatWaffle. Once installed, the malware grants backdoor access, allowing Remote Access Trojans to maintain persistence while infostealers exfiltrate wallet credentials, browser passwords, clipboard data, keystrokes, and identification documents to command-and-control servers.
Scale of the Cryptocurrency Theft
Between December 2025 and July 2026, WaterPlum exfiltrated funds or credentials from over 7,000 cryptocurrency wallets, transferring 1.7 billion Japanese yen, equivalent to 10.71 million USD, to North Korea. Primary targets included web designers, engineers, and specialists in blockchain and Web3 technologies.
Role of Laptop Farms
The advisory also details how North Korean IT workers generate foreign currency through "laptop farms," locations, often an enabler's residence, where employment computers are remotely controlled by workers based in North Korea, China, Russia, and occasionally Africa or Southeast Asia.
Enablers supply identification images, bank accounts, and internet connections, then forward payments to the workers after taking a cut. Japanese authorities dismantled a laptop farm for the first time domestically, uncovering evidence of several hundred million yen transferred abroad in cryptocurrency.
A related case involved a suspected North Korean applicant at a Japanese cryptocurrency exchange in May 2025, who submitted a forged resume, accessed the recruitment portal via VPN, and displayed mismatched language skills during a video interview. The company declined to hire the applicant, and no damage occurred.
Warning Signs and Recommended Countermeasures
The agencies list red flags including refusal of in-person meetings, requests for cryptocurrency payment, background voices during calls, and repeated video freezes.
Recommended defenses include avoiding execution of untrusted code outside a sandbox, treating VSCode projects with caution using "Restricted Mode," deploying Endpoint Detection and Response tools, and immediately disconnecting compromised devices from the internet.
Victims are advised to assume wallet data has been exposed, create new wallets on separate devices, and perform full operating system resets.
International Cooperation Continues
The FBI stated it continues to prosecute US-based facilitators who assist North Korean IT workers, while Japanese and American authorities pledged ongoing cooperation to expose revenue-generation schemes benefiting the Kim regime. The advisory noted that WaterPlum and North Korean IT worker operations shared overlapping IP addresses across laptop farms, crowdsourcing platforms, and job applications, indicating coordinated infrastructure.
Companies and individual IT professionals are urged to review the tactics outlined in the advisory and strengthen hiring verification processes to prevent further infiltration.