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

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

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

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

Multi-step social engineering campaign leading to credential theft

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

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

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

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

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

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

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

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

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

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

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

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

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

Mitigation and protection guidance

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

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

Microsoft Defender detections

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

Microsoft Security Copilot

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

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

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

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

Threat intelligence reports

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

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

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

Hunting queries

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

Campaign emails by sender address

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

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

Indicators of compromise

Learn more

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

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

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

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

Tycoon2FA disruption impact

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

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

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

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

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

QR code phishing attacks

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

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

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

CAPTCHA tactics

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Malicious payloads

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

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

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

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

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

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

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

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

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

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

Business email compromise

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

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

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

Defending against email threats

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

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

Microsoft Defender detections

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

Microsoft Defender for Endpoint

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

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

Microsoft Defender for Office 365

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

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

Microsoft Security Copilot

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

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

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

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

Threat intelligence reports

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

Microsoft Defender XDR threat analytics

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

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

Learn more

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

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

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

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

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Robinhood fixed an account-creation flaw that hackers abused to send convincing phishing emails from its own system to some users over the weekend.

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I skipped last week's roundup. Holiday weekend, family stuff, the usual. So this is a two-week-ish view of what we've published in the Threat Intelligence series since Edition 03 dropped on April 13.

The post Best of the Worst: Five Attacks That Looked Broken (and Worked) appeared first on Security Boulevard.

In identity-based attack campaigns, any initial access activity can turn an already serious intrusion into a critical incident once it allows a threat actor to obtain domain-administration rights. At that point, the attacker effectively controls the Active Directory domain: they can change group memberships and Access Control Lists (ACLs), mint Kerberos tickets, replicate directory secrets, and push policy through mechanisms like Group Policy Objects (GPOs), among others.

What makes domain compromise especially challenging is how quickly it could happen: in many real-world cases, domain-level credentials are compromised immediately following the very first access, and once these credentials are exposed, they’re often abused immediately, well before defenders can fully scope what happened. Apart from this speed gap, responding to this type of compromise could also prove difficult. For one, incident responders can’t just simply “turn off” domain controllers, service accounts, or identity infrastructure and core services without risking business continuity. In addition, because compromised credential artifacts can spread fast and be replayed to expand access, restoring the identity infrastructure back to a trusted state usually means taking steps (for example, krbtgt rotation, GPO cleanup, and ACL validation) that could take additional time and effort in an already high-pressure situation.

These challenges highlight the need for a more proactive approach in disrupting and containing credential-based attacks as they happen. Microsoft Defender’s predictive shielding capability in automatic attack disruption helps address this need. Its ability to predict where attacks will pivot next and apply just in time hardening actions to  block credential abuse—including those targeting high-privilege accounts like domain admins—and lateral movement at near-real-time speed, shifting the advantageto the defenders.

Previously, we discussed how predictive shielding was able to disrupt a human-operated ransomware incident. In this blog post, we take a look at a real-world Active Directory domain compromise that illustrates the critical inflection point when a threat actor achieves domain -level control. We walk through the technical details of the incident to highlight attacker tradecraft, the operational challenges defenders face after domain compromise, and the value of proactive, exposure-based containment that predictive shielding provides.

Predictive shielding overview

Predictive shielding is a capability in Microsoft Defender’s automatic attack disruption that helps stop the spread of identity-based attacks, before an attacker fully operationalizes stolen credentials. Instead of waiting for an account to be observed doing something malicious, predictive shielding focuses on moments when credentials are likely exposed: when Defender sees high-confidence signals of credential theft activity on a device, it can proactively restrict the accounts that might have been exposed there.

Essentially, predictive shielding works as follows:

• Defender detects post-breach activity strongly associated with credential exposure on a device.
• It evaluates which high-privilege identities were likely exposed in that context.
• It applies containment to those identities to reduce the attacker’s ability to pivot, limiting lateral movement paths and high-impact identity operations while the incident is being investigated and remediated. The intent is to close the “speed gap” where attackers can reuse newly exposed credentials faster than responders can scope, reset, and clean up.

This capability is available as an out-of-the-box enhancement for Microsoft Defender for Endpoint P2 customers who meet the Microsoft Defender prerequisites.

The following section revisits a real-world domain compromise that showcases how attack disruption and predictive shielding changed the outcome by acting on exposure, rather than just observed abuse. Interestingly, this case happened just as we’re rolling out the predictive shielding, so you can see the changes in both attacker tradecraft and the detection and response actions before and after this capability was deployed.

Attack chain overview

In June 2025, a public sector organization was targeted by a threat actor. This threat actor progressed methodically: initial exploitation, local escalation, directory reconnaissance, credential access, and expansion into Microsoft Exchange and identity infrastructure.  

Initial entry: Pre-domain compromise

The campaign began at the edge: a file-upload flaw in an internet-facing Internet Information Services (IIS) server was abused to plant and launch a web shell. The attacker then simultaneously performed various reconnaissance activities using the compromised account through the web shell and escalated their privileges to NT AUTHORITY\SYSTEM by abusing a Potato-class token impersonation primitive (for example, BadPotato).

The discovery commands observed in the attack include the following example:

Using the compromised IIS service account, the attacker attempted to reset the passwords of high-impact identities, a common technique used to gain control over accounts without performing credential dumping. The attacker also deployed Mimikatz to dump logon secrets (for example, MSV, LSASS, and SAM), harvesting credentials that are exposed on the device.

Had predictive shielding been released at this point, automated restrictions on exposed accounts could have stopped the intrusion before it expanded beyond the single-host foothold. However, at the time of the incident, this capability hasn’t been deployed to customers yet.

Key takeaway: At this stage of an attack, it’s important to keep the containment host‑scoped. Defenders should prioritize blocking credential theft and stopping escalation before it reaches the identity infrastructure.

First pivot: Directory credential materialization and Exchange delegation

Within 24 hours, the attacker abused privileged accounts and remotely created a scheduled task on a domain controller. The task initiated NTDS snapshot activity and packaged the output using makecab.exe, enabling offline access to directory credential material that’s suitable for abusing credentials at scale:

Because the first malicious action by the abused account already surfaced the entire Active Directory credentials, stopping its path for total domain compromise was no longer feasible.

The threat actor then planted a Godzilla web shell on Exchange Server, used a privileged context to enumerate accounts with ApplicationImpersonation role assignments, and granted full access to a delegated principal across mailboxes using Add‑MailboxPermission. This access allowed the threat actor to read and manipulate all mailbox contents.

The attack also used Impacket’s atexec.py to enumerate the role assignments remotely. Its use triggered the attack disruption capability in Defender, revoking the account sessions of an admin account and blocking it from further use.

Following the abused account’s disruption, the attacker attempted several additional actions, such as resetting the disrupted account’s and other accounts’ passwords. They also attempted to dump credentials of a Veeam backup device.

Key takeaway: This pivot is a turning point. Once directory credentials and privileged delegation are in play, the scope and impact of an incident expand fast. Defenders should prioritize protecting domain controllers, privileged identities, and authentication paths.

Scale and speed: Tool return, spraying, and lateral movement

Weeks later, the threat actor returned with an Impacket tooling (for example, secretsdump and PsExec) that resulted in repeated disruptions by Defender against the abused accounts that they used. These disruptions forced the attacker to pivot to other compromised accounts and exhaust their resources.

Following Defender’s disruptions, the threat actor then launched a broad password spray from the initially compromised IIS server, unlocking access to at least 14 servers through password reuse. They also attempted remote credential dumping against a couple of domain controllers and an additional IIS server using multiple domain and service principals.

Key takeaway: Even though automatic attack disruption acted right away, the attacker already possessed multiple credentials due to the previous large-scale credential dumping. This scenario showcases the race to detect and disrupt credential abuse and is the reason we’re introducing predictive shielding to preemptively disrupt exposed accounts at risk.

Predictive shielding breaks the chain: Exposure-centric containment

In the second phase of the attack, we activated predictive shielding. When exposure signals surfaced (for example, credential dumping attempts and replay from compromised hosts), automated containment blocked new sign-in attempts and interactive pivots not only for the abused accounts, but also for context-linked identities that are active on the same compromised surfaces.

Attack disruption contained high-privileged principals to prevent these accounts from being abused. Crucially, when a high-tier Enterprise or Schema Admin credential was exposed, predictive shielding contained it pre-abuse, preventing what would normally become a catastrophic escalation.

Second pivot: Alternative paths to new credentials

With high-value identities pre-contained, the threat actor pivoted to exploiting Apache Tomcat servers. They compromised three Tomcat servers, dropped the Godzilla web shell, and launched the PowerShell-based Invoke-Mimikatz command to harvest additional credentials. At one point, the attacker operated under Schema Admin:

They then used Impacket WmiExec to access Microsoft Entra Connect servers and attempt to extract Entra Connect synchronization credentials. The account used for this pivot was later contained, limiting further lateral movement.

Last attempts and shutdown

In the final phase of the attack, the threat actor attempted a full LSASS dump on a file sharing server using comsvcs.dll MiniDump under a domain user account, followed by additional NTDS activity:

Attack disruption in Defender repeatedly severed sessions and blocked new sign-ins made by the threat actor. On July 28, 2025, the attack campaign lost momentum and stopped.

How predictive shielding changed the outcome

Before compromising a domain, attackers are mostly constrained by the hosts they control. However, even a small set of exposed credentials could remove their constraints and give them broad access through privileged authentication and delegated pathways. The blast radius spreads fast, time pressure spikes, and containment decisions become riskier because identity infrastructure and high-privilege accounts are production dependencies.

The incident we revisited earlier almost followed a similar pattern. It unfolded while predictive shielding was still being launched, so the automated predictive containment capability only became active at the midway of the attack campaign. During the attack’s first stages, the threat actor had room to scale—they returned with new tooling, launched a broad password spray attack, and expanded access across multiple servers. They also attempted remote credential dumping against domain controllers and servers.

When predictive shielding went live, it helped shift the story and we then saw the change of pace—instead of reacting to each newly abused account, the capability allowed Defender to act preemptively and turn credential theft attempts into blocked pivots. Defender was able to block new sign-ins and interactive pivots, not just for the single abused account, but also for context-linked identities that were active on the same compromised surfaces.

With high-value identities pre-contained, the adversary shifted tradecraft and chased other credential sources, but each of their subsequent attempts triggered targeted containment that limited their lateral reach until they lost momentum and stopped. How this incident concluded is the operational “tell” that containment is working, in that once privileged pivots get blocked, threat actors often hunt for alternate credential sources, and defenses must continue following the moving blast radius.

As predictive shielding matures, it will continue to expand its prediction logic and context-linked identities.

MITRE ATT&CK® techniques observed

The following table maps observed behaviors to ATT&CK®.

Tactics shown are per technique definition.

Learn more

For more information about automatic attack disruption and predictive shielding, see the following Microsoft Learn articles:

• Check out our latest Ninja show showcasing how predictive shielding expands to identity centric attacks
• Automatic attack disruption in Microsoft Defender XDR
• Predictive shielding in Microsoft Defender (Preview)

The post Containing a domain compromise: How predictive shielding shut down lateral movement appeared first on Microsoft Security Blog.

Executive summary

Microsoft Threat Intelligence uncovered a macOS‑focused cyber campaign by the North Korean threat actor Sapphire Sleet that relies on social engineering rather than software vulnerabilities. By impersonating a legitimate software update, threat actors tricked users into manually running malicious files, allowing them to steal passwords, cryptocurrency assets, and personal data while avoiding built‑in macOS security checks. This activity highlights how convincing user prompts and trusted system tools can be abused, and why awareness and layered security defenses remain critical.

Microsoft Threat Intelligence identified a campaign by North Korean state actor Sapphire Sleet demonstrating new combinations of macOS-focused execution patterns and techniques, enabling the threat actor to compromise systems through social engineering rather than software exploitation. In this campaign, Sapphire Sleet takes advantage of user‑initiated execution to establish persistence, harvest credentials, and exfiltrate sensitive data while operating outside traditional macOS security enforcement boundaries. While the techniques themselves are not novel, this analysis highlights execution patterns and combinations that Microsoft has not previously observed for this threat actor, including how Sapphire Sleet orchestrates these techniques together and uses AppleScript as a dedicated, late‑stage credential‑harvesting component integrated with decoy update workflows.

After discovering the threat, Microsoft shared details of this activity with Apple as part of our responsible disclosure process. Apple has since implemented updates to help detect and block infrastructure and malware associated with this campaign. We thank the Apple security team for their collaboration in addressing this activity and encourage macOS users to keep their devices up to date with the latest security protections.

This activity demonstrates how threat actors continue to rely on user interaction and trusted system utilities to bypass macOS platform security protections, rather than exploiting traditional software vulnerabilities. By persuading users to manually execute AppleScript or Terminal‑based commands, Sapphire Sleet shifts execution into a user‑initiated context, allowing the activity to proceed outside of macOS protections such as Transparency, Consent, and Control (TCC), Gatekeeper, quarantine enforcement, and notarization checks. Sapphire Sleet achieves a highly reliable infection chain that lowers operational friction and increases the likelihood of successful compromise—posing an elevated risk to organizations and individuals involved in cryptocurrency, digital assets, finance, and similar high‑value targets that Sapphire Sleet is known to target.

In this blog, we examine the macOS‑specific attack chain observed in recent Sapphire Sleet intrusions, from initial access using malicious .scpt files through multi-stage payload delivery, credential harvesting using fake system dialogs, manipulation of the macOS TCC database, persistence using launch daemons, and large-scale data exfiltration. We also provide actionable guidance, Microsoft Defender detections, hunting queries, and indicators of compromise (IOCs) to help defenders identify similar threats and strengthen macOS security posture.

Sapphire Sleet’s campaign lifecycle

Initial access and social engineering

Sapphire Sleet is a North Korean state actor active since at least March 2020 that primarily targets the finance sector, including cryptocurrency, venture capital, and blockchain organizations. The primary motivation of this actor is to steal cryptocurrency wallets to generate revenue, and target technology or intellectual property related to cryptocurrency trading and blockchain platforms.

Sapphire Sleet operates a well‑documented social engineering playbook in which the threat actor creates fake recruiter profiles on social media and professional networking platforms, engages targets in conversations about job opportunities, schedules a technical interview, and directs targets to install malicious software, which is typically disguised as a video conferencing tool or software developer kit (SDK) update.

In this observed activity, the target was directed to download a file called Zoom SDK Update.scpt—a compiled AppleScript that opens in macOS Script Editor by default. Script Editor is a trusted first-party Apple application capable of executing arbitrary shell commands using the do shell script AppleScript command.

Lure file and Script Editor execution

The malicious Zoom SDK Update.scpt file is crafted to appear as a legitimate Zoom SDK update when opened in the macOS Script Editor app, beginning with a large decoy comment block that mimics benign upgrade instructions and gives the impression of a routine software update. To conceal its true behavior, the script inserts thousands of blank lines immediately after this visible content, pushing the malicious logic far below the scrollable view of the Script Editor window and reducing the likelihood that a user will notice it.

Hidden beneath this decoy, the script first launches a harmless looking command that invokes the legitimate macOS softwareupdate binary with an invalid parameter, an action that performs no real update but launches a trusted Apple‑signed process to reinforce the appearance of legitimacy. Following this, the script executes its malicious payload by using curl to retrieve threat actor‑controlled content and immediately passes the returned data to osascript for execution using the run script result instruction. Because the content fetched by curl is itself a new AppleScript, it is launched directly within the Script Editor context, initiating a payload delivery in which additional stages are dynamically downloaded and executed.

Execution and payload delivery

Cascading curl-to-osascript execution

When the user opens the Zoom SDK Update.scpt file, macOS launches the file in Script Editor, allowing Sapphire Sleet to transition from a single lure file to a multi-stage, dynamically fetched payload chain. From this single process, the entire attack unfolds through a cascading chain of curl commands, each fetching and executing progressively more complex AppleScript payloads. Each stage uses a distinct user-agent string as a campaign tracking identifier.

The main payload fetched by the mac-cur1 user agent is the attack orchestrator. Once executed within the Script Editor, it performs immediate reconnaissance, then kicks off parallel operations using additional curl commands with different user-agent strings.

Note the URL path difference: mac-cur1 through mac-cur3 fetch from /version/ (AppleScript payloads piped directly to osascript for execution), while mac-cur4 and mac-cur5 fetch from /status/ (ZIP archives containing compiled macOS .app bundles).

The following table summarizes the curl chain used in this campaign.

Reconnaissance and C2 registration

After execution, the malware next identifies and registers the compromised device with Sapphire Sleet infrastructure. The malware starts by collecting basic system details such as the current user, host name, system time, and operating system install date. This information is used to uniquely identify the compromised device and track subsequent activity.

The malware then registers the compromised system with its command‑and‑control (C2) infrastructure. The mid value represents the device’s universally unique identifier (UUID), the did serves as a campaign‑level tracking identifier, and the user field combines the system host name with the device serial number to uniquely label the targeted user.

Host monitoring component: com.apple.cli

The first binary deployed is a host monitoring component called com.apple.cli—a ~5 MB Mach-O binary disguised with an Apple-style naming convention.

The mac-cur1 payload spawns an osascript that downloads and launches com.apple.cli:

The host monitoring component repeatedly executes a series of system commands to collect environment and runtime information, including the macOS version (sw_vers), the current system time (date -u), and the underlying hardware model (sysctl hw.model). It then runs ps aux in a tight loop to capture a full, real‑time list of running processes.

During execution, com.apple.cli performs host reconnaissance while maintaining repeated outbound connectivity to the threat actor‑controlled C2 endpoint 83.136.208[.]246:6783. The observed sequencing of reconnaissance activity and network communication is consistent with staging for later operational activity, including privilege escalation, and exfiltration.

In parallel with deploying com.apple.cli, the mac-cur1 orchestrator also deploys a second component, the services backdoor, as part of the same execution flow; its role in persistence and follow‑on activity is described later in this blog.

Credential access

Credential harvester: systemupdate.app

After performing reconnaissance, the mac-cur1 orchestrator begins parallel operations. During the mac‑cur2 stage of execution (independent from the mac-cur1 stage), Sapphire Sleet delivers an AppleScript payload that is executed through osascript. This stage is responsible for deploying the credential harvesting component of the attack.

Before proceeding, the script checks for the presence of a file named .zoom.log on the system. This file acts as an infection marker, allowing Sapphire Sleet to determine whether the device has already been compromised. If the marker exists, deployment is skipped to avoid redundant execution across sessions.

If the infection marker is not found, the script downloads a compressed archive through the mac-cur4 user agent that contains a malicious macOS application named (systemupdate.app), which masquerades as the legitimate system update utility by the same name. The archive is extracted to a temporary location, and the application is launched immediately.

When systemupdate.app launches, the user is presented with a native macOS password dialog that is visually indistinguishable from a legitimate system prompt. The dialog claims that the user’s password is required to complete a software update, prompting the user to enter their credentials.

After the user enters their password, the malware performs two sequential actions to ensure the credential is usable and immediately captured. First, the binary validates the entered password against the local macOS authentication database using directory services, confirming that the credential is correct and not mistyped. Once validation succeeds, the verified password is immediately exfiltrated to threat actor‑controlled infrastructure using the Telegram Bot API, delivering the stolen credential directly to Sapphire Sleet.

Decoy completion prompt: softwareupdate.app

After credential harvesting is completed using systemupdate.app, Sapphire Sleet deploys a second malicious application named softwareupdate.app, whose sole purpose is to reinforce the illusion of a legitimate update workflow. This application is delivered during a later stage of the attack using the mac‑cur5 user‑agent. Unlike systemupdate.app, softwareupdate.app does not attempt to collect credentials. Instead, it displays a convincing “system update complete” dialog to the user, signaling that the supposed Zoom SDK update has finished successfully. This final step closes the social engineering loop: the user initiated a Zoom‑themed update, was prompted to enter their password, and is now reassured that the process completed as expected, reducing the likelihood of suspicion or further investigation.

Persistence

Primary backdoor and persistence installer: services binary

The services backdoor is a key operational component in this attack, acting as the primary backdoor and persistence installer. It provides an interactive command execution channel, establishes persistence using a launch daemon, and deploys two additional backdoors. The services backdoor is deployed through a dedicated AppleScript executed as part of the initial mac‑cur1 payload that also deployed com.apple.cli, although the additional backdoors deployed by services are executed at a later stage.

During deployment, the services backdoor binary is first downloaded using a hidden file name (.services) to reduce visibility, then copied to its final location before the temporary file is removed. As part of installation, the malware creates a file named auth.db under ~/Library/Application Support/Authorization/, which stores the path to the deployed services backdoor and serves as a persistent installation marker. Any execution or runtime errors encountered during this process are written to /tmp/lg4err, leaving behind an additional forensic artifact that can aid post‑compromise investigation.

Unlike com.apple.cli, the services backdoor uses interactive zsh shells (/bin/zsh -i) to execute privileged operations. The -i flag creates an interactive terminal context, which is required for sudo commands that expect interactive input.

Additional backdoors: icloudz and com.google.chromes.updaters

Of the additional backdoors deployed by services, the icloudz backdoor is a renamed copy of the previously deployed services backdoor and shares the same SHA‑256 hash, indicating identical underlying code. Despite this, it is executed using a different and more evasive technique. Although icloudz shares the same binary as .services, it operates as a reflective code loader—it uses the macOS NSCreateObjectFileImageFromMemory API to load additional payloads received from its C2 infrastructure directly into memory, rather than writing them to disk and executing them conventionally.

The icloudz backdoor is stored at ~/Library/Application Support/iCloud/icloudz, a location and naming choice intended to resemble legitimate iCloud‑related artifacts. Once loaded into memory, two distinct execution waves are observed. Each wave independently initializes a consistent sequence of system commands: existing caffeinate processes are stopped, caffeinate is relaunched using nohup to prevent the system from sleeping, basic system information is collected using sw_vers and sysctl -n hw.model, and an interactive /bin/zsh -i shell is spawned. This repeated initialization suggests that the component is designed to re‑establish execution context reliably across runs.

From within the interactive zsh shell, icloudz deploys an additional (tertiary) backdoor, com.google.chromes.updaters, to disk at ~/Library/Google/com.google.chromes.updaters. The selected directory and file name closely resemble legitimate Google application data, helping the file blend into the user’s Home directory and reducing the likelihood of casual inspection. File permissions are adjusted; ownership is set to allow execution with elevated privileges, and the com.google.chromes.updaters binary is launched using sudo.

To ensure continued execution across reboots, a launch daemon configuration file named com.google.webkit.service.plist is installed under /Library/LaunchDaemons. This configuration causes icloudz to launch automatically at system startup, even if no user is signed in. The naming convention deliberately mimics legitimate Apple and Google system services, further reducing the chance of detection.

The com.google.chromes.updaters backdoor is the final and largest component deployed in this attack chain, with a size of approximately 7.2 MB. Once running, it establishes outbound communication with threat actor‑controlled infrastructure, connecting to the domain check02id[.]com over port 5202. The process then enters a precise 60‑second beaconing loop. During each cycle, it executes minimal commands such as whoami to confirm the execution context and sw_vers -productVersion to report the operating system version. This lightweight heartbeat confirms the process remains active, is running with elevated privileges, and is ready to receive further instructions.

Privilege escalation

TCC bypass: Granting AppleEvents permissions

Before large‑scale data access and exfiltration can proceed, Sapphire Sleet must bypass macOS TCC protections. TCC enforces user consent for sensitive inter‑process interactions, including AppleEvents, the mechanism required for osascript to communicate with Finder and perform file-level operations. The mac-cur3 stage silently grants itself these permissions by directly manipulating the user-level TCC database through the following sequence.

The user-level TCC database (~/Library/Application Support/com.apple.TCC/TCC.db) is itself TCC-protected—processes without Full Disk Access (FDA) cannot read or modify it. Sapphire Sleet circumvents this by directing Finder, which holds FDA by default on macOS,  to rename the com.apple.TCC folder. Once renamed, the TCC database file can be copied to a staging location by a process without FDA.

Sapphire Sleet then uses sqlite3 to inject a new entry into the database’s access table. This entry grants /usr/bin/osascript permission to send AppleEvents to com.apple.finder and includes valid code-signing requirement (csreq) blobs for both binaries, binding the grant to Apple-signed executables. The authorization value is set to allowed (auth_value=2) with a user-set reason (auth_reason=3), ensuring no user prompt is triggered. The modified database is then copied back into the renamed folder, and Finder restores the folder to its original name. Staging files are deleted to reduce forensic traces.

Collection and exfiltration

With TCC bypassed, credentials stolen, and backdoors deployed, Sapphire Sleet launches the next phase of attack: a 575-line AppleScript payload that systematically collects, stages, compresses, and exfiltrates seven categories of data.

Exfiltration architecture

Every upload follows a consistent pattern and is executed using nohup, which allows the command to continue running in the background even if the initiating process or Terminal session exits. This ensures that data exfiltration can complete reliably without requiring the threat actor to maintain an active session on the system.

The auth header provides the upload authorization token, and the mid header ties the upload to the compromised device’s UUID.

Data collected during exfiltration

• Host and system reconnaissance: Before bulk data collection begins, the script records basic system identity and hardware information. This includes the current username, system host name, macOS version, and CPU model. These values are appended to a per‑host log file and provide Sapphire Sleet with environmental context, hardware fingerprinting, and confirmation of the target system’s characteristics. This reconnaissance data is later uploaded to track progress and correlate subsequent exfiltration stages to a specific device.
• Installed applications and runtime verification: The script enumerates installed applications and shared directories to build an inventory of the system’s software environment. It also captures a live process listing filtered for threat actor‑deployed components, allowing Sapphire Sleet to verify that earlier payloads are still running as expected. These checks help confirm successful execution and persistence before proceeding further.
• Messaging session data (Telegram): Telegram Desktop session data is collected by copying the application’s data directories, including cryptographic key material and session mapping files. These artifacts are sufficient to recreate the user’s Telegram session on another system without requiring reauthentication. A second collection pass targets the Telegram App Group container to capture the complete local data set associated with the application.
• Browser data and extension storage: For Chromium‑based browsers, including Chrome, Brave, and Arc, the script copies browser profiles and associated databases. This includes saved credentials, cookies, autofill data, browsing history, bookmarks, and extension‑specific storage. Particular focus is placed on IndexedDB entries associated with cryptocurrency wallet extensions, where wallet keys and transaction data are stored. Only IndexedDB entries matching a targeted set of wallet extension identifiers are collected, reflecting a deliberate and selective approach.
• macOS keychain: The user’s sign-in keychain database is bundled alongside browser data. Although the keychain is encrypted, Sapphire Sleet has already captured the user’s password earlier in the attack chain, enabling offline decryption of stored secrets once exfiltrated.
• Cryptocurrency desktop wallets: The script copies the full application support directories for popular cryptocurrency desktop wallets, including Ledger Live and Exodus. These directories contain wallet configuration files and key material required to access stored cryptocurrency assets, making them high‑value targets for exfiltration.
• SSH keys and shell history: SSH key directories and shell history files are collected to enable potential lateral movement and intelligence gathering. SSH keys may provide access to additional systems, while shell history can reveal infrastructure details, previously accessed hosts, and operational habits of the targeted user.
• Apple Notes: The Apple Notes database is copied from its application container and staged for upload. Notes frequently contain sensitive information such as passwords, internal documentation, infrastructure details, or meeting notes, making them a valuable secondary data source.
• System logs and failed access attempts: System log files are uploaded directly without compression. These logs provide additional hardware and execution context and include progress markers that indicate which exfiltration stages have completed. Failed collection attempts—such as access to password manager containers that are not present on the system—are also recorded and uploaded, allowing Sapphire Sleet to understand which targets were unavailable on the compromised host.

Exfiltration summary

All uploads use the upload authorization token fwyan48umt1vimwqcqvhdd9u72a7qysi and the machine identifier 82cf5d92-87b5-4144-9a4e-6b58b714d599.

Defending against Sapphire Sleet intrusion activity

As part of a coordinated response to this activity, Apple has implemented platform-level protections to help detect and block infrastructure and malware associated with this campaign. Apple has deployed Apple Safe Browsing protections in Safari to detect and block malicious infrastructure associated with this campaign. Users browsing with Safari benefit from these protections by default. Apple has also deployed XProtect signatures to detect and block the malware families associated with this campaign—macOS devices receive these signature updates automatically.

Microsoft recommends the following mitigation steps to defend against this activity and reduce the impact of this threat:

• Educate users about social engineering threats originating from social media and external platforms, particularly unsolicited outreach requesting software downloads, virtual meeting tool installations, or execution of terminal commands. Users should never run scripts or commands shared through messages, calls, or chats without prior approval from their IT or security teams.
• Block or restrict the execution of .scpt (compiled AppleScript) files and unsigned Mach-O binaries downloaded from the internet. Where feasible, enforce policies that prevent osascript from executing scripts sourced from external locations.
• Always inspect and verify files downloaded from external sources, including compiled AppleScript (.scpt) files. These files can execute arbitrary shell commands via macOS Script Editor—a trusted first-party Apple application—making them an effective and stealthy initial access vector.
• Limit or audit the use of curl piped to interpreters (such as curl | osascript, curl | sh, curl | bash). Social engineering campaigns by Sapphire Sleet rely on cascading curl-to-interpreter chains to avoid writing payloads to disk. Organizations should monitor for and restrict piped execution patterns originating from non-standard user-agent strings.
• Exercise caution when copying and pasting sensitive data such as wallet addresses or credentials from the clipboard. Always verify that the pasted content matches the intended source to avoid falling victim to clipboard hijacking or data tampering attacks.
• Monitor for unauthorized modifications to the macOS TCC database. This campaign manipulates TCC.db to grant AppleEvents permissions to osascript without user consent—a prerequisite for the large-scale data exfiltration phase. Look for processes copying, modifying, or overwriting ~/Library/Application Support/com.apple.TCC/TCC.db.
• Audit LaunchDaemon and LaunchAgent installations. This campaign installs a persistent launch daemon (com.google.webkit.service.plist) that masquerades as a legitimate Google or Apple service. Monitor /Library/LaunchDaemons/ and ~/Library/LaunchAgents/ for unexpected plist files, particularly those with com.google.* or com.apple.* naming conventions not belonging to genuine vendor software.
• Protect cryptocurrency wallets and browser credential stores. This campaign targets nine specific crypto wallet extensions (Sui, Phantom, TronLink, Coinbase, OKX, Solflare, Rabby, Backpack) plus Bitwarden, and exfiltrates browser sign-in data, cookies, and keychain databases. Organizations handling digital assets should enforce hardware wallet policies and rotate browser-stored credentials regularly.
• Encourage users to use web browsers that support Microsoft Defender SmartScreen like Microsoft Edge—available on macOS and various platforms—which identifies and blocks malicious websites, including phishing sites, scam sites, and sites that contain exploits and host malware.

Microsoft Defender for Endpoint customers can also apply the following mitigations to reduce the environmental attack surface and mitigate the impact of this threat and its payloads:

• Use Microsoft Defender for Endpoint on Mac, which detects, stops, and quarantines the malware discussed in this blog.
• Turn on cloud-delivered protection and automatic sample submission on Microsoft Defender Antivirus. These capabilities use artificial intelligence and machine learning to quickly identify and stop new and unknown threats.
• Enable potentially unwanted application (PUA) protection in block mode to automatically quarantine PUAs like adware. PUA blocking takes effect on endpoint clients after the next signature update or computer restart.
• Turn on network protection to block connections to malicious domains and IP addresses.

Microsoft Defender detection and hunting guidance

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

Microsoft Security Copilot

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

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

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

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

Threat intelligence reports

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

Microsoft Defender XDR threat analytics

• Actor Profile: Sapphire Sleet

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:

Suspicious osascript execution with curl piping

Search for curl commands piping output directly to osascript, a core technique in this Sapphire Sleet campaign’s cascading payload delivery chain.

DeviceProcessEvents
 | where Timestamp > ago(30d)
 | where FileName == "osascript" or InitiatingProcessFileName == "osascript"
 | where ProcessCommandLine has "curl" and ProcessCommandLine has_any ("osascript", "| sh", "| bash")
 | project Timestamp, DeviceId, DeviceName, AccountName, ProcessCommandLine, InitiatingProcessCommandLine, InitiatingProcessFileName

Suspicious curl activity with campaign user-agent strings

Search for curl commands using user-agent strings matching the Sapphire Sleet campaign tracking identifiers (mac-cur1 through mac-cur5, audio, beacon).

DeviceProcessEvents
 | where Timestamp > ago(30d)
 | where FileName == "curl" or ProcessCommandLine has "curl"
 | where ProcessCommandLine has_any ("mac-cur1", "mac-cur2", "mac-cur3", "mac-cur4", "mac-cur5", "-A audio", "-A beacon")
 | project Timestamp, DeviceId, DeviceName, AccountName, ProcessCommandLine, InitiatingProcessFileName, InitiatingProcessCommandLine

Detect connectivity with known C2 infrastructure

Search for network connections to the Sapphire Sleet C2 domains and IP addresses used in this campaign.

let c2_domains = dynamic(["uw04webzoom.us", "uw05webzoom.us", "uw03webzoom.us", "ur01webzoom.us", "uv01webzoom.us", "uv03webzoom.us", "uv04webzoom.us", "ux06webzoom.us", "check02id.com"]);
 let c2_ips = dynamic(["188.227.196.252", "83.136.208.246", "83.136.209.22", "83.136.208.48", "83.136.210.180", "104.145.210.107"]);
 DeviceNetworkEvents
 | where Timestamp > ago(30d)
 | where RemoteUrl has_any (c2_domains) or RemoteIP in (c2_ips)
 | project Timestamp, DeviceId, DeviceName, RemoteUrl, RemoteIP, RemotePort, InitiatingProcessFileName, InitiatingProcessCommandLine

TCC database manipulation detection

Search for processes that copy, modify, or overwrite the macOS TCC database, a key defense evasion technique used by this campaign to grant unauthorized AppleEvents permissions.

DeviceFileEvents
 | where Timestamp > ago(30d)
 | where FolderPath has "com.apple.TCC" and FileName == "TCC.db"
 | where ActionType in ("FileCreated", "FileModified", "FileRenamed")
 | project Timestamp, DeviceId, DeviceName, ActionType, FolderPath, InitiatingProcessFileName, InitiatingProcessCommandLine

Suspicious LaunchDaemon creation masquerading as legitimate services

Search for LaunchDaemon plist files created in /Library/LaunchDaemons that masquerade as Google or Apple services, matching the persistence technique used by the services/icloudz backdoor.

DeviceFileEvents
 | where Timestamp > ago(30d)
 | where FolderPath startswith "/Library/LaunchDaemons/"
 | where FileName startswith "com.google." or FileName startswith "com.apple."
 | where ActionType == "FileCreated"
 | project Timestamp, DeviceId, DeviceName, FileName, FolderPath, InitiatingProcessFileName, InitiatingProcessCommandLine, SHA256

Malicious binary execution from suspicious paths

Search for execution of binaries from paths commonly used by Sapphire Sleet, including hidden Library directories, /private/tmp/, and user-specific Application Support folders.

DeviceProcessEvents
 | where Timestamp > ago(30d)
 | where FolderPath has_any (
     "Library/Services/services",
     "Application Support/iCloud/icloudz",
     "Library/Google/com.google.chromes.updaters",
     "/private/tmp/SystemUpdate/",
     "/private/tmp/SoftwareUpdate/",
     "com.apple.cli"
 )
 | project Timestamp, DeviceId, DeviceName, FileName, FolderPath, ProcessCommandLine, AccountName, SHA256

Credential harvesting using dscl authentication check

Search for dscl -authonly commands used by the fake password dialog (systemupdate.app) to validate stolen credentials before exfiltration.

DeviceProcessEvents
 | where Timestamp > ago(30d)
 | where FileName == "dscl" or ProcessCommandLine has "dscl"
 | where ProcessCommandLine has "-authonly"
 | project Timestamp, DeviceId, DeviceName, AccountName, ProcessCommandLine, InitiatingProcessFileName, InitiatingProcessCommandLine

Telegram Bot API exfiltration detection

Search for network connections to Telegram Bot API endpoints, used by this campaign to exfiltrate stolen credentials.

DeviceNetworkEvents
 | where Timestamp > ago(30d)
 | where RemoteUrl has "api.telegram.org" and RemoteUrl has "/bot"
 | project Timestamp, DeviceId, DeviceName, RemoteUrl, RemoteIP, RemotePort, InitiatingProcessFileName, InitiatingProcessCommandLine

Reflective code loading using NSCreateObjectFileImageFromMemory

Search for evidence of reflective Mach-O loading, the technique used by the icloudz backdoor to execute code in memory.

DeviceEvents
 | where Timestamp > ago(30d)
 | where ActionType has "NSCreateObjectFileImageFromMemory"
     or AdditionalFields has "NSCreateObjectFileImageFromMemory"
 | project Timestamp, DeviceId, DeviceName, ActionType, FileName, FolderPath, InitiatingProcessFileName, AdditionalFields

Suspicious caffeinate and sleep prevention activity

Search for caffeinate process stop-and-restart patterns used by the services and icloudz backdoors to prevent the system from sleeping during backdoor operations.

DeviceProcessEvents
 | where Timestamp > ago(30d)
 | where ProcessCommandLine has "caffeinate"
 | where InitiatingProcessCommandLine has_any ("icloudz", "services", "chromes.updaters", "zsh -i")
 | project Timestamp, DeviceId, DeviceName, ProcessCommandLine, InitiatingProcessFileName, InitiatingProcessCommandLine

Detect known malicious file hashes

Search for the specific malicious file hashes associated with this Sapphire Sleet campaign across file events.

let malicious_hashes = dynamic([
     "2075fd1a1362d188290910a8c55cf30c11ed5955c04af410c481410f538da419",
     "05e1761b535537287e7b72d103a29c4453742725600f59a34a4831eafc0b8e53",
     "5fbbca2d72840feb86b6ef8a1abb4fe2f225d84228a714391673be2719c73ac7",
     "5e581f22f56883ee13358f73fabab00fcf9313a053210eb12ac18e66098346e5",
     "95e893e7cdde19d7d16ff5a5074d0b369abd31c1a30962656133caa8153e8d63",
     "8fd5b8db10458ace7e4ed335eb0c66527e1928ad87a3c688595804f72b205e8c",
     "a05400000843fbad6b28d2b76fc201c3d415a72d88d8dc548fafd8bae073c640"
 ]);
 DeviceFileEvents
 | where Timestamp > ago(30d)
 | where SHA256 in (malicious_hashes)
 | project Timestamp, DeviceId, DeviceName, FileName, FolderPath, SHA256, ActionType, InitiatingProcessFileName, InitiatingProcessCommandLine

Data staging and exfiltration activity

Search for ZIP archive creation in /tmp/ directories followed by curl uploads matching the staging-and-exfiltration pattern used for browser data, crypto wallets, Telegram sessions, SSH keys, and Apple Notes.

DeviceProcessEvents
 | where Timestamp > ago(30d)
 | where (ProcessCommandLine has "zip" and ProcessCommandLine has "/tmp/")
     or (ProcessCommandLine has "curl" and ProcessCommandLine has_any ("tapp_", "ext_", "ldg_", "exds_", "hs_", "nt_", "lg_"))
 | project Timestamp, DeviceId, DeviceName, ProcessCommandLine, InitiatingProcessFileName, InitiatingProcessCommandLine

Script Editor launching suspicious child processes

Search for Script Editor (the default handler for .scpt files) spawning curl, osascript, or shell commands—the initial execution vector in this campaign.

DeviceProcessEvents
 | where Timestamp > ago(30d)
 | where InitiatingProcessFileName == "Script Editor" or InitiatingProcessCommandLine has "Script Editor"
 | where FileName has_any ("curl", "osascript", "sh", "bash", "zsh")
 | project Timestamp, DeviceId, DeviceName, FileName, ProcessCommandLine, InitiatingProcessFileName, InitiatingProcessCommandLine

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 indicators of compromise

The following query checks for connections to the Sapphire Sleet C2 domains and IP addresses across network session data:

let lookback = 30d;
 let ioc_domains = dynamic(["uw04webzoom.us", "uw05webzoom.us", "uw03webzoom.us", "ur01webzoom.us", "uv01webzoom.us", "uv03webzoom.us", "uv04webzoom.us", "ux06webzoom.us", "check02id.com"]);
 let ioc_ips = dynamic(["188.227.196.252", "83.136.208.246", "83.136.209.22", "83.136.208.48", "83.136.210.180", "104.145.210.107"]);
 DeviceNetworkEvents
 | where TimeGenerated > ago(lookback)
 | where RemoteUrl has_any (ioc_domains) or RemoteIP in (ioc_ips)
 | summarize EventCount=count() by DeviceName, RemoteUrl, RemoteIP, RemotePort, InitiatingProcessFileName

Detect file hash indicators of compromise

The following query searches for the known malicious file hashes associated with this campaign across file, process, and security event data:

let selectedTimestamp = datetime(2026-01-01T00:00:00.0000000Z);
 let FileSHA256 = dynamic([
     "2075fd1a1362d188290910a8c55cf30c11ed5955c04af410c481410f538da419",
     "05e1761b535537287e7b72d103a29c4453742725600f59a34a4831eafc0b8e53",
     "5fbbca2d72840feb86b6ef8a1abb4fe2f225d84228a714391673be2719c73ac7",
     "5e581f22f56883ee13358f73fabab00fcf9313a053210eb12ac18e66098346e5",
     "95e893e7cdde19d7d16ff5a5074d0b369abd31c1a30962656133caa8153e8d63",
     "8fd5b8db10458ace7e4ed335eb0c66527e1928ad87a3c688595804f72b205e8c",
     "a05400000843fbad6b28d2b76fc201c3d415a72d88d8dc548fafd8bae073c640"
 ]);
 search in (AlertEvidence, DeviceEvents, DeviceFileEvents, DeviceImageLoadEvents, DeviceProcessEvents, DeviceNetworkEvents, SecurityEvent, ThreatIntelligenceIndicator)
 TimeGenerated between ((selectedTimestamp - 1m) .. (selectedTimestamp + 90d))
 and (SHA256 in (FileSHA256) or InitiatingProcessSHA256 in (FileSHA256))

Detect Microsoft Defender Antivirus detections related to Sapphire Sleet

The following query searches for Defender Antivirus alerts for the specific malware families used in this campaign and joins with device information for enriched context:

let SapphireSleet_threats = dynamic([
     "Trojan:MacOS/NukeSped.D",
     "Trojan:MacOS/PassStealer.D",
     "Trojan:MacOS/SuspMalScript.C",
     "Trojan:MacOS/SuspInfostealExec.C"
 ]);
 SecurityAlert
 | where ProviderName == "MDATP"
 | extend ThreatName = tostring(parse_json(ExtendedProperties).ThreatName)
 | extend ThreatFamilyName = tostring(parse_json(ExtendedProperties).ThreatFamilyName)
 | where ThreatName in~ (SapphireSleet_threats) or ThreatFamilyName in~ (SapphireSleet_threats)
 | extend CompromisedEntity = tolower(CompromisedEntity)
 | join kind=inner (
     DeviceInfo
     | extend DeviceName = tolower(DeviceName)
 ) on $left.CompromisedEntity == $right.DeviceName
 | summarize arg_max(TimeGenerated, *) by DisplayName, ThreatName, ThreatFamilyName, PublicIP, AlertSeverity, Description, tostring(LoggedOnUsers), DeviceId, TenantId, CompromisedEntity, ProductName, Entities
 | extend HostName = tostring(split(CompromisedEntity, ".")[0]), DomainIndex = toint(indexof(CompromisedEntity, '.'))
 | extend HostNameDomain = iff(DomainIndex != -1, substring(CompromisedEntity, DomainIndex + 1), CompromisedEntity)
 | project-away DomainIndex
 | project TimeGenerated, DisplayName, ThreatName, ThreatFamilyName, PublicIP, AlertSeverity, Description, LoggedOnUsers, DeviceId, TenantId, CompromisedEntity, ProductName, Entities, HostName, HostNameDomain

Indicators of compromise

Malicious file hashes

Domains and IP addresses

Acknowledgments

Existing blogs with similar behavior tracked:

• https://cloud.google.com/blog/topics/threat-intelligence/unc1069-targets-cryptocurrency-ai-social-engineering
• https://www.huntress.com/blog/inside-bluenoroff-web3-intrusion-analysis
• https://securelist.com/bluenoroff-apt-campaigns-ghostcall-and-ghosthie/117842/
• https://x.com/malwrhunterteam/status/2008831892616081508
• https://x.com/patrickwardle/status/2009008936771543341?s=46

Learn more

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The post Dissecting Sapphire Sleet’s macOS intrusion from lure to compromise appeared first on Microsoft Security Blog.

On March 26, Anthropic confirmed the existence of Claude Mythos, an unreleased AI model described internally as "a step change" in capabilities, after a data leak exposed approximately 3,000 unpublished assets in a publicly searchable, unencrypted data store (Fortune, March 26, 2026). The leak was not a sophisticated intrusion. A toggle switch in Anthropic's content management system was left in the wrong position, setting digital assets to public by default (Fortune, March 26, 2026). Among the exposed materials were internal assessments describing Mythos as posing "unprecedented cybersecurity risks" and being "far ahead of any other AI model in cyber capabilities" (World Today News, March 2026).

The post Claude Mythos and the Cybersecurity Risk That Was Already Here appeared first on Security Boulevard.

During tax season, threat actors reliably take advantage of the urgency and familiarity of time-sensitive emails, including refund notices, payroll forms, filing reminders, and requests from tax professionals, to trick targets into opening malicious attachments, scanning QR codes, or following multi-step link chains. Every year, there is an observable uptick in tax-themed campaigns as Tax Day (April 15) approaches in the United States, and this year is no different.

In recent months, Microsoft Threat Intelligence identified email campaigns using lures around W-2, tax forms, or similar themes, or posing as government tax agencies, tax services firms, and relevant financial institutions. Many campaigns target individuals for personal and financial data theft, but others specifically target accountants and other professionals who handle sensitive documents, have access to financial data, and are accustomed to receiving tax-related emails during this period.

Identified campaigns were designed to harvest credentials or deliver malware. Phishing-as-a-service (PhaaS) platforms continue to be prevalent, enabling highly convincing credential theft and multifactor authentication (MFA) bypass campaigns through tailored tax-themed social engineering lures, attachments, and phishing pages. In cases of malware delivery, we noted a continued trend of abusing legitimate remote monitoring and management tools (RMMs), which allow threat actors to maintain persistence on a compromised device or network, enable an alternative command-and-control method, or, in the case of hands-on-keyboard attacks, use as an interactive remote desktop session.

This blog details several of the campaigns observed by Microsoft Threat Intelligence in the past few months that leveraged the tax season for social engineering. By educating users about phishing lures, configuring essential email security settings, and defending against credential theft, individuals and organizations can defend against both this seasonal surge in phishing attacks and more broadly against many types of phishing attacks that we observe.

A wide range of tax-themed campaigns

CPA lures leading to Energy365 phishing kit

In early February 2026, we observed a campaign that was delivering the Energy365 PhaaS phishing kit and used tax and Certified Public Accountant (CPA) lures throughout the attack chain. This campaign stood out due to its highly specific lure customization, in contrast to other threat actors who use this popular phishing kit but employ generic lures. Other notable characteristics of this campaign include the involvement of multiple file formats such as Excel and OneNote, use of legitimate infrastructure such as OneDrive, and multiple rounds of user interaction, all attempts to complicate automated and reputation-based detection. While this specific campaign was not large, it represents the capabilities of Energy365, one of the leading phishing kits that enables hundreds of thousands of malicious emails observed by Microsoft daily.

Between February 5 and 6, several hundred emails with the subject ”See Tax file” targeted multiple industries including financial services, education, information technology (IT), insurance, and healthcare, primarily in the United States. The Excel attachment had the file name [Accountant’s name] CPA.xlsx, using the name of a real accountant (likely impersonated in this campaign without their knowledge). The attachment contained a clickable “REVIEW DOCUMENTS” button that linked to a OneNote file hosted on OneDrive.

The OneNote file, which continued the ruse by using the same CPA’s name and logo, contained a link leading to a malicious landing page that hosted the Energy365 phishing kit and attempted to harvest credentials such as email and password.

QR code and W2 lure leading to SneakyLog phishing kit

On February 10, 2026, Microsoft Threat Intelligence observed tax-themed phishing emails sent to approximately 100 organizations, in the manufacturing, retail, and healthcare industries primarily in the United States. The emails used the subject “2025 Employee Tax Docs” and contained an attachment named 2025_Employee_W-2  .docx. The attachment had content that mentioned various tax-related terms like Form W-2 and had a QR code pointing to a phishing page.

Each document was customized to contain the recipient’s name, and the URL hidden behind the QR code also contained the recipient’s email address. This means that each recipient received a unique attachment. The phishing page was built with the SneakyLog PhaaS platform and mimicked the Microsoft 365 sign-in page to steal credentials. SneakyLog, which is also known as Kratos, has been around since at least the beginning of 2025. This phishing kit is sold as a part of phishing-as-a-service and is capable of harvesting credentials and 2FA. While not as popular as other platforms like Energy365, SneakyLog has been consistently present in the threat landscape.

Form 1099-themed phishing delivering ScreenConnect

In January and February 2026, Microsoft Threat Intelligence observed sets of tax-themed domains registered, likely to be used in tax-themed phishing campaigns. These domains used keywords such as “tax” and “1099form” and also impersonated specific legitimate companies involved in tax filing, accounting, investing sectors. Brand abuse of legitimate accounting, tax preparation, finance, bookkeeping, and related companies continues to proliferate during tax season.

We observed one of these domains being used in a campaign between February 8 and February 10. Several hundred emails were sent to recipients in a wide range of industries primarily in the United States. The emails used subject lines like “Your Account Now Includes Updated Tax Forms [RF] 1234” or “Your Form 1099-R is ready – [RF] 12123123”. The email body said “2025 Tax Forms is ready” and contained a clickable “View Tax Forms” button that linked to the URL taxationstatments2025[.]com. If clicked, this domain redirected to tax-statments2025[.]com, which in turn served a malware executable named 1099-FR2025.exe.

The payload delivered in this campaign is the remote management and monitoring (RMM) tool ScreenConnect, signed by ConnectWise. The specific code signing certificate has since been revoked by the issuer due to high abuse. ScreenConnect is a legitimate tool, but threat actors have learned to abuse RMM functionality and essentially turn legitimate tools into remote access trojans (RATs), helping them take control of compromised devices.

IRS and cryptocurrency-themed phishing delivering SimpleHelp

Another notable campaign combined the impersonation of the US Internal Revenue Service (IRS) with a cryptocurrency lure. Notably, this campaign attempted to evade detection by not including a clickable link, but instead asked recipients to copy and paste a URL, which was in the email body, into the browser.

This campaign was sent on February 23 and 27, and it consisted of several thousands of emails sent to recipients exclusively in the United States. The emails targeted many industries, with the bulk of email sent to higher education. The emails used the subject “IR-2026-216” and abused online platform Eventbrite to masquerade as coming from the IRS:

• “IRS US”<noreply@campaign[.]eventbrite[.]com>
• “IRS GOV”<noreply@campaign[.]eventbrite[.]com>
• “Service”<noreply@campaign[.]eventbrite[.]com>
• “IRS TAX”<noreply@campaign[.]eventbrite[.]com>
• “.IRS.GOV”<noreply@campaign[.]eventbrite[.]com>

The email body said “Cryptocurrency Tax Form 1099 is Ready” and contained a non-clickable URL with the domain irs-doc[.]com or gov-irs216[.]net. If pasted in the browser, the URL led to the download of IRS-doc.msi, which was either the RMM tool ScreenConnect or SimpleHelp, depending on the day of the campaign. SimpleHelp is another legitimate remote monitoring and management tool abused by threat actors. While not as popular as ScreenConnect, threat actors have been increasingly adopting SimpleHelp due to the recent crackdown on abuse of ScreenConnect by ConnectWise.

Campaign targeting CPAs and delivering Datto

Like in previous tax seasons, Microsoft Threat Intelligence observed email campaigns specifically targeting accountants and related organizations. A variant of this campaign is a well-known and documented technique that uses benign conversation starters. The threat actor reaches out asking for assistance in filing taxes, asking for a quote, and typically providing a backstory. If the actor receives a reply, they send a malicious link that leads to the installation of various RATs. However, Microsoft Threat Intelligence also observed campaigns targeting CPAs that contain a similar backstory but include the malicious link in the first email.

One such campaign was sent on March 9 and consisted of approximately 1,000 emails sent to users exclusively in the United States. The emails targeted multiple accounting companies but also included a few related industries such as financial services, legal, and insurance. The emails used the subject “REQUEST FOR PROFESSIONAL TAX FILLING”.

The email provided a backstory that included a description of a complex tax return situation involving tax audit, university tuition, loan interest, and real estate income. The sender also attempted to explain their inability to physically visit the office due to travel. Finally, the sender asked for a price quote. We observed variations of the backstory on different days, including switching CPAs due to fee increases.

The link in email used the free site hosting service carrd[.]co. The site contained a simple “VIEW DOCUMENTS” button that linked to a URL shortener service, which redirected users to private-adobe-client[.]im. This uncomplicated redirection chain served to hinder automated detection by using legitimate sites with good reputation and involving user interaction. The final landing page served an executable related to the Datto. Datto is yet another legitimate remote monitoring and management tool, abused by threat actors.

IRS-themed campaign targeting accounting professionals and dropping ScreenConnect

On February 10, 2026, Microsoft Threat Intelligence observed a large-scale phishing campaign sent to more than 29,000 users across 10,000 organizations, almost exclusively focused on targets in the United States (95% of targets). The campaign did not concentrate on any single sector but instead included a wide set of industries, with financial services (19%), technology and software (18%), and retail and consumer goods (15%) being the most commonly targeted.

While the campaign did not seem to have been targeting a specific industry, an analysis of intended recipients indicated that the campaign was targeting specific roles, particularly accountants and tax preparers. Messages in the campaign were sent in two waves over a nine‑hour window between 10:35 UTC and 19:51 UTC.  

The emails impersonated the IRS, claiming that potentially irregular tax returns had been filed under the recipient’s Electronic Filing Identification Number (EFIN). Recipients were instructed to review these returns by downloading a purportedly legitimate “IRS Transcript Viewer.”

The emails were sent through Amazon Simple Email Service (SES) from one of two sender addresses on edud[.]site, a domain registered in August 2025. To enhance credibility, the sender display name rotated among the following 14 IRS‑themed identities:

• IRS e-File Services
• IRS EFIN Team
• IRS EFIN Compliance
• IRS e-Services
• IRS E-File Operations
• IRS Filing Review
• IRS Filing Support
• IRS EFIN Support
• IRS e-Services Team
• IRS e-File Support
• IRS EFIN Review
• IRS e-File Compliance
• IRS e-Services Support
• IRS Practitioner e-Services

Similarly, the subject lines used in the campaign also rotated, presumably to try and circumvent detection systems that rely on static text signatures. The most common among the 49 email subjects we observed in this campaign include:

• IRS Request Transcript Review
• IRS Notice Firm Return Review
• CPA Compliance Review
• IRS Support Firm Filing Review
• Review Requested Compliance

The emails contained a “Download IRS Transcript View 5.1” button, which purported to lead to a legitimate IRS application that could be used to review the transcript referenced in the email. Instead, the link pointed to an Amazon SES click‑tracking URL (awstrack[.]me), which then redirected to smartvault[.]im, a malicious look‑alike domain mimicking SmartVault, a well‑known tax and document‑management service used by accounting professionals. To evade automated analysis, the phishing site used Cloudflare for bot detection and blocking. Only visitors who resembled human users would be able to reach the final phishing payload, while traffic from crawlers and sandboxes would result in a block page.

Users who passed the bot check would be shown a fake “verification” animation that indicated the IRS website was conducting an automated check to verify the connection with IRS provider services. After this animation, a user would be shown a page indicating that the supposed transcript viewer application would start downloading automatically before being redirected to the legitimate IRS provider services webpage. The downloaded file, named TranscriptViewer5.1.exe, was not a legitimate IRS tool but a maliciously repackaged ScreenConnect remote access tool (RAT). Upon execution, this payload could grant attackers remote control of the victim system, enabling data theft, credential harvesting, and further post‑exploitation activity.

How to protect users and organization against tax-themed campaigns

To defend against social engineering campaigns that leverage the surge in email activity during Tax Season, Microsoft recommends the following mitigation measures:

• 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.
• Enforce multifactor authentication (MFA) on all accounts, remove users excluded from MFA, and strictly require MFA from all devices in all locations at all times.
• Use the Microsoft Authenticator app for passkeys and MFA, and complement MFA with conditional access policies, where sign-in requests are evaluated using additional identity-driven signals.
• Conditional access policies can also be scoped to strengthen privileged accounts with phishing resistant MFA.
• Enable Zero-hour auto purge (ZAP) in 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.
• Configure Microsoft Defender for Office 365 Safe Links 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 Microsoft Office 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 Microsoft Exchange Online Protection (EOP). Safe Links scanning can help protect your organization from malicious links that are used in phishing and other attacks.
• Invest in advanced anti-phishing solutions that monitor and scan incoming emails and visited websites. For example, organizations can leverage web browsers like Microsoft Edge that automatically identify and block malicious websites, including those used in this phishing campaign, and solutions that detect and block malicious emails, links, and files.
• 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 network protection to prevent applications or users from accessing malicious domains and other malicious content on the internet.

Microsoft Defender detection and hunting guidance

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

Microsoft Security Copilot

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

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

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

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

Threat intelligence reports

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

• Threat Overview Profile: On-premises credential theft
• Technique Profile: Abuse of remote monitoring and management tools

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:

Find email messages related to known domains

The following query checks domains in Defender XDR email data:

EmailUrlInfo  
| where UrlDomain has_any ("taxationstatments2025.com", "irs-doc.com", "gov-irs216.net", "private-adobe-client.im", "edud.site", "smartvault.im")

Detect file hash indicators in email data

The following query checks hashes related to identified phishing activity in Defender XDR data:

let File_Hashes_SHA256 = dynamic([
"45b6b4db1be6698c29ffde9daeb8ffaa344b687d3badded2f8c68c922cdce6e0", "d422f6f5310af1e72f6113a2a592916f58e3871c58d0e46f058d4b669a3a0fd8"]);
DeviceFileEvents
| where SHA256 has_any (File_Hashes_SHA256)

Microsoft Sentinel

Microsoft Sentinel customers can use the TI Mapping analytics (a series of analytics all prefixed with ‘TI map’) to automatically match the 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.

The following queries use Sentinel Advanced Security Information Model (ASIM) functions to hunt threats across both Microsoft first-party and third-party data sources. ASIM also supports deploying parsers to specific workspaces from GitHub, using an ARM template or manually.

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:

//IP list and domain list- _Im_NetworkSession
let lookback = 30d;
let ioc_ip_addr = dynamic([]);
let ioc_domains = dynamic(["taxationstatments2025.com", "irs-doc.com", "gov-irs216.net", "private-adobe-client.im"]);
_Im_NetworkSession(starttime=todatetime(ago(lookback)), endtime=now())
| where DstIpAddr in (ioc_ip_addr) or DstDomain has_any (ioc_domains)
| summarize imNWS_mintime=min(TimeGenerated), imNWS_maxtime=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:

//IP list - _Im_WebSession
let lookback = 30d;
let ioc_ip_addr = dynamic([]);
let ioc_sha_hashes =dynamic(["45b6b4db1be6698c29ffde9daeb8ffaa344b687d3badded2f8c68c922cdce6e0"]);
_Im_WebSession(starttime=todatetime(ago(lookback)), endtime=now())
| where DstIpAddr in (ioc_ip_addr) or FileSHA256 in (ioc_sha_hashes)
| summarize imWS_mintime=min(TimeGenerated), imWS_maxtime=max(TimeGenerated),
  EventCount=count() by SrcIpAddr, DstIpAddr, Url, Dvc, EventProduct, EventVendor

Detect domain and URL indicators of compromise using ASIM

The following query checks domain and URL IOCs across data sources supported by ASIM web session parser:

// file hash list - imFileEvent
// Domain list - _Im_WebSession
let ioc_domains = dynamic(["taxationstatments2025.com", "irs-doc.com", "gov-irs216.net", "private-adobe-client.im"]);
_Im_WebSession (url_has_any = ioc_domains)

Detect files hashes indicators of compromise using ASIM

The following query checks IP addresses and file hash IOCs across data sources supported by ASIM file event parser:

// file hash list - imFileEvent
let ioc_sha_hashes = dynamic(["45b6b4db1be6698c29ffde9daeb8ffaa344b687d3badded2f8c68c922cdce6e0"]);
imFileEvent
| where SrcFileSHA256 in (ioc_sha_hashes) or
TargetFileSHA256 in (ioc_sha_hashes)
| extend AccountName = tostring(split(User, @'')[1]), 
  AccountNTDomain = tostring(split(User, @'')[0])
| extend AlgorithmType = "SHA256"

Indicators of compromise

Learn more

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

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

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

The post When tax season becomes cyberattack season: Phishing and malware campaigns using tax-related lures appeared first on Microsoft Security Blog.

In mid-January 2026, Microsoft Defender Experts identified a credential theft campaign that uses fake virtual private network (VPN) clients distributed through search engine optimization (SEO) poisoning. The campaign redirects users searching for legitimate enterprise software to malicious ZIP files on attacker-controlled websites to deploy digitally signed trojans that masquerade as trusted VPN clients while harvesting VPN credentials. Microsoft Threat Intelligence attributes this activity to the cybercriminal threat actor Storm-2561.

Active since May 2025, Storm-2561 is known for distributing malware through SEO poisoning and impersonating popular software vendors. The techniques they used in this campaign highlight how threat actors continue to exploit trusted platforms and software branding to avoid user suspicion and steal sensitive information. By targeting users who are actively searching for enterprise VPN software, attackers take advantage of both user urgency and implicit trust in search engine rankings. The malicious ZIP files that contain fake installer files are hosted on GitHub repositories, which have since been taken down. Additionally, the trojans are digitally signed by a legitimate certificate that has since been revoked.

In this blog, we share our in-depth analysis of the tactics, techniques, and procedures (TTPs) and indicators of compromise in this Storm-2561 campaign, highlighting the social engineering techniques that the threat actor used to improve perceived legitimacy, avoid suspicion, and evade detection. We also share protection and mitigation recommendations, as well as Microsoft Defender detection and hunting guidance.

From search to stolen credentials: Storm-2561 attack chain

In this campaign, users searching for legitimate VPN software are redirected from search results to spoofed websites that closely mimic trusted VPN products but instead deploy malware designed to harvest credentials and VPN data. When users click to download the software, they are redirected to a malicious GitHub repository (no longer available) that hosts the fake VPN client for direct download.

The GitHub repo hosts a ZIP file containing a Microsoft Windows Installer (MSI) installer file that mimics a legitimate VPN software and side-loads malicious dynamic link library (DLL) files during installation. The fake VPN software enables credential collection and exfiltration while appearing like a benign VPN client application.

This campaign exhibits characteristics consistent with financially motivated cybercrime operations employed by Storm-2561. The malicious components are digitally signed by “Taiyuan Lihua Near Information Technology Co., Ltd.”

Initial access and execution

The initial access vector relies on abusing SEO to push malicious websites to the top of search results for queries such as “Pulse VPN download” or “Pulse Secure client,” but Microsoft has observed spoofing of various VPN software brands and has observed the GitHub link at the following two domains: vpn-fortinet[.]com and ivanti-vpn[.]org.

Once the user lands on the malicious website and clicks to download the software, the malware is delivered through a ZIP download hosted at hxxps[:]//github[.]com/latestver/vpn/releases/download/vpn-client2/VPN-CLIENT.zip. At the time of this report, this repository is no longer active.

When the user launches the malicious MSI masquerading as a legitimate Pulse Secure VPN installer embedded within the downloaded ZIP file, the MSI file installs Pulse.exe along with malicious DLL files to a directory structure that closely resembles a real Pulse Secure installation path: %CommonFiles%\Pulse Secure. This installation path blends in with legitimate VPN software to appear trustworthy and avoid raising user suspicion.

Alongside the primary application, the installer drops malicious DLLs, dwmapi.dll and inspector.dll, into the Pulse Secure directory. The dwmapi.dll file is an in-memory loader that drops and launches an embedded shellcode payload that loads and launches the inspector.dll file, a variant of the infostealer Hyrax. The Hyrax infostealer extracts URI and VPN sign-in credentials before exfiltrating them to attacker-controlled command-and-control (C2) infrastructure.

Code signing abuse

The MSI file and the malicious DLLs are signed with a valid digital certificate, which is now revoked, from Taiyuan Lihua Near Information Technology Co., Ltd. This abuse of code signing serves multiple purposes:

• Bypasses default Windows security warnings for unsigned code
• Might bypass application whitelisting policies that trust signed binaries
• Reduces security tool alerts focused on unsigned malware
• Provides false legitimacy to the installation process

Microsoft identified several other files signed with the same certificates. These files also masqueraded as VPN software. These IOCs are included in the below.

Credential theft

The fake VPN client presents a graphical user interface that closely mimics the legitimate VPN client, prompting the user to enter their credentials. Rather than establishing a VPN connection, the application captures the credentials entered and exfiltrates them to attacker-controlled C2 infrastructure (194.76.226[.]93:8080). This approach relies on visual deception and immediate user interaction, allowing attackers to harvest credentials as soon as the target attempts to sign in. The credential theft operation follows the below structured sequence:

• UI presentation: A fake VPN sign-in dialog is displayed to the user, closely resembling the legitimate Pulse Secure client.
• Error display: After credentials are submitted, a fake error message is shown to the user.
• Redirection: The user is instructed to download and install the legitimate Pulse Secure VPN client.
• Access to stored VPN data: The inspector.dll component accesses stored VPN configuration data from C:\ProgramData\Pulse Secure\ConnectionStore\connectionstore.dat.
• Data exfiltration: Stolen credentials and VPN configuration data are transmitted to attacker-controlled infrastructure.

Persistence

To maintain access, the MSI malware establishes persistence during installation through the Windows RunOnce registry key, adding the Pulse.exe malware to run when the device reboots.

Defense evasion

One of the most sophisticated aspects of this campaign is the post-credential theft redirection strategy. After successfully capturing user credentials, the malicious application conducts the following actions:

• Displays a convincing error message indicating installation failure
• Provides instructions to download the legitimate Pulse VPN client from official sources
• In certain instances, opens the user’s browser to the legitimate VPN website

If users successfully install and use legitimate VPN software afterward, and the VPN connection works as expected, there are no indications of compromise to the end user. Users are likely to attribute the initial installation failure to technical issues, not malware.

Defending against credential theft campaigns

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

• Turn on cloud-delivered protection in Microsoft Defender Antivirus or the equivalent for your antivirus product to cover rapidly evolving attacker tools and techniques. Cloud-based machine learning protections block a huge majority of new and unknown variants. 
• 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-breach. 
• Enable network protection in Microsoft Defender for Endpoint. 
• Turn on web protection in Microsoft Defender for Endpoint. 
• Encourage users to use Microsoft Edge and other web browsers that support SmartScreen, which identifies and blocks malicious websites, including phishing sites, scam sites, and sites that contain exploits and host malware. 
• Enforce multifactor authentication (MFA) on all accounts, remove users excluded from MFA, and strictly require MFA from all devices, in all locations, at all times. 
• Remind employees that enterprise or workplace credentials should not be stored in browsers or password vaults secured with personal credentials. Organizations can turn off password syncing in browser on managed devices using Group Policy. 
• Turn on the following attack surface reduction rule to block or audit activity associated with this threat:
  • Block executable files from running unless they meet a prevalence, age, or trusted list criterion 

Microsoft Defender detection and hunting guidance

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

Microsoft Security Copilot

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

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

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

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

Threat intelligence reports

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

• Actor Profile: Storm-2561
• Activity Profile: Storm-2561 uses SEO poisoning to distribute fake VPN clients for credential theft

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

Hunting queries

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

Files signed by Taiyuan Lihua Near Information Technology Co., Ltd.

Look for files signed with Taiyuan Lihua Near Information Technology Co., Ltd. signer.

let a = DeviceFileCertificateInfo
| where Signer == "Taiyuan Lihua Near Information Technology Co., Ltd."
| distinct SHA1;
DeviceProcessEvents
| where SHA1 in(a)

Identify suspicious DLLs in Pulse Secure folder

Identify launching of malicious DLL files in folders masquerading as Pulse Secure.

DeviceImageLoadEvents
| where FolderPath contains "Pulse Secure" and FolderPath contains "Program Files" and (FolderPath contains "\\JUNS\\" or FolderPath contains "\\JAMUI\\")
| where FileName has_any("inspector.dll","dwmapi.dll")

Indicators of compromise

References

• SEO Poisoning Targets Ivanti VPN: Credential Theft Alert (Zscaler)
• Storm-2561 distributes trojanized SonicWall NetExtender SilentRoute (Microsoft)
• A Sting on Bing: Bumblebee delivered through Bing SEO poisoning campaign (Cyjax)

Learn more

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

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

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

The post Storm-2561 uses SEO poisoning to distribute fake VPN clients for credential theft appeared first on Microsoft Security Blog.

A fake CAPTCHA scam is tricking Windows users into running PowerShell commands that install StealC malware and steal passwords, crypto wallets, and more.

The post Fake CAPTCHA Scam Tricks Windows Users Into Installing Malware appeared first on TechRepublic.

A massive unsecured database exposed 149 million logins, raising concerns over infostealer malware and credential theft.

The post Data Leak Exposes 149M Logins, Including Gmail, Facebook appeared first on TechRepublic.