AI Risk Wire

Cases › security breach › LR-2026-0713

EvilTokens AI-assisted device code phishing service disrupted by Microsoft

Preliminary Why: 1 report: The Hacker News · subject to change · 1 independent report

Developing: a major or severe case captured in the last 72 hours. Later changes are logged on the corrections page.

Status: fix reported

Severity major
Reported 22 Sep 2026

No source states: loss or records, developer and model, agent tool, could do, deployer, industry.

Severity major: test met: many third parties, with a stated count of over 10,000 organizations affected.

Microsoft announced on 22 September 2026 that it had taken down EvilTokens, a phishing-as-a-service platform that it said used AI at every step of the attack chain. Its chatbot could analyze a victim's inbox to help criminals identify trusted relationships and payment authorizations, and could recommend fraud strategies, including impersonating messages. Victims were tricked into entering a device code on Microsoft's real sign-in page, which gave attackers access to their email accounts. Statistics shared by Microsoft linked the service to more than 12,000 compromised email inboxes across over 10,000 organizations. Microsoft and partners seized 50 websites and disabled over 150 additional domains, and two men were arrested by the Metropolitan Police Service on 11 September 2026.

What happened

1 · What it was doingThe service's AI tools let customers summarize and translate stolen emails, map organisational roles, identify trusted relationships and recommend targets.
2 · What went wrongVictims were tricked into entering a device code on Microsoft's real sign-in page, giving attackers authenticated access to their email.
3 · What it reached or didMicrosoft's statistics link the service to more than 12,000 compromised email inboxes across over 10,000 organizations.

What was done

Fix reported

“The web infrastructure and security company said the EvilTokens developers used domains purchased and set up by a third-party based in another country, and that it banned hundreds of domains and Workers projects, as well as killed Worker scripts and suspended accounts as part of the enforcement effort.”

Abuse monitoring and account enforcement

Risks

AI used to run a cyber attack
Primary
96 incidents
Rising: 24 vs 4.0 a week

Read from the sources; not yet reviewed by a person.

Controls

Infrastructure / target

Not effective (bypassed) Phishing and fraud filters

Control failure chain

L1 · Model Not stated in sourcesProvider not named
L2 · Harness Not stated in sourcesHarness not named
L3 · Application Attacker's ownThe attacker
L4 · Infrastructure / target Not effective (bypassed)Organisation hit

L1 · ModelProvider not namedModel provider

No source mentions a control at this layer.

Model version not linked to a model card.

Other controls for this risk at this layer, not mentioned in the sources: Safety training and refusal, Cyber and weapons safeguards, Abuse monitoring and account enforcement, Staged or restricted release, Dangerous-capability testing before release, Outside red-teaming, Content safety classifiers, Safeguards kept on in testing, Reasoning monitoring.

L2 · HarnessHarness not namedAgent framework vendor

No source mentions a control at this layer.

L3 · ApplicationThe attackerDeployer

The attacker ran the agent; this layer was the attacker's own.

L4 · Infrastructure / targetOrganisation hit

Not effective (bypassed)Phishing and fraud filters“Simultaneously, EvilTokens employs a multi-stage delivery pipeline to bypass traditional email gateways and endpoint security through fake CAPTCHA checks and redirection chains that make use of high-reputation "serverless" platforms like Vercel, Cloudflare Workers, and AWS Lambda to blend in with legitimate enterprise cloud traffic and sidestep domain-blocklist triggers.”The Hacker News

Other controls for this risk at this layer, not mentioned in the sources: Known flaws patched, Multi-factor sign-in and password policy, Network segmentation, Intrusion and endpoint detection, Backups and recovery.

EffectiveNot effectiveNot effective (bypassed)Did not existNot stated in sourcesNot yet checkedAttacker's ownOrder: model · harness · application · target

Controls for this risk: result in this incident

ControlPart of the systemResult
Content safety classifiersL1 ModelNot stated in sources
Safety training and refusalL1 ModelNot stated in sources
Cyber and weapons safeguardsL1 ModelNot stated in sources
Dangerous-capability testing before releaseL1 ModelNot stated in sources
Outside red-teamingL1 ModelNot stated in sources
Staged or restricted releaseL1 ModelNot stated in sources
Abuse monitoring and account enforcementL1 ModelNot stated in sources
Reasoning monitoringL1 ModelNot stated in sources
Safeguards kept on in testingL1 ModelNot stated in sources
Phishing and fraud filtersL4 Infrastructure / targetNot effective (bypassed)
Known flaws patchedL4 Infrastructure / targetNot stated in sources
Multi-factor sign-in and password policyL4 Infrastructure / targetNot stated in sources
Network segmentationL4 Infrastructure / targetNot stated in sources
Intrusion and endpoint detectionL4 Infrastructure / targetNot stated in sources
Backups and recoveryL4 Infrastructure / targetNot stated in sources

Evidence

No source states: how it was caught, when it happened, when it was found, how many records were exposed, the direct loss, any court case, the cause, what set it off, what was done.

Show the full account: 5 items from the primary sources

What happened, in order

  1. 2025-10 to 2026-06 Period over which Coinbase traced platform revenue and deposits to EvilTokens.
  2. 2026-03 Sekoia report characterized EvilTokens as sold on Telegram since mid-February 2026.
  3. 2026-03 Huntress first documented EvilTokens as a phishing-as-a-service platform.
  4. 2026-04 Sekoia published a follow-up report on the device code phishing kit.
  5. 2026-09-11 Metropolitan Police Service arrested two men in connection with the operation.
Show every field, with its source and grade

What happened

Earliest source we hold
2026-09-22
D inferred by us from the described behaviour, reason shown
Who caught it
an outside party
C one secondary source states it
Who caused it
an outside attacker
C one secondary source states it
What was done
seized 50 websites and disabled over 150 additional domains
C one secondary source states it
What went wrong
security breach
C one secondary source states it
primary risk
RK07
D inferred by us from the described behaviour, reason shown
secondary risks
RK03, RK19
D inferred by us from the described behaviour, reason shown
control chain
layer: L4; party: target; control id: J9; outcome: got around; quote: Simultaneously, EvilTokens employs a multi-stage delivery pipeline to bypass traditional email gateways and endpoint security through fake CAPTCHA checks and redirection chains that make use of high-reputation "serverless" platforms like Vercel, Cloudflare Workers, and AWS Lambda to blend in with legitimate enterprise cloud traffic and sidestep domain-blocklist triggers.; source index: 0
C one secondary source states it
remediations
kind: fix; controls added: D7; quote: The web infrastructure and security company said the EvilTokens developers used domains purchased and set up by a third-party based in another country, and that it banned hundreds of domains and Workers projects, as well as killed Worker scripts and suspended accounts as part of the enforcement effort.; source index: 0
C one secondary source states it

Impact

Severity
major
D inferred by us from the described behaviour, reason shown
Who was affected
email accounts of victims in more than 10,000 organizations worldwide
C one secondary source states it
Kinds of data exposed
e-mail
C one secondary source states it
Why this severity
test met: many third parties, with a stated count of over 10,000 organizations affected.
D inferred by us from the described behaviour, reason shown

Notes on gaps

Controls for the chatbot's safeguards (refusal, monitoring) are not stated and were not reported.

LR-2026-0713 · version 1 · published 2026-11-01 after automatic checks; not yet checked field by field by a person · JSON