Microsoft Disrupts AI-Powered Fraud Platform Behind 12,000 Account Compromises
A criminal service called EvilTokens has been taken down after compromising 12,000 Microsoft accounts belonging to 10,000 organisations in a matter of months, according to Ars Technica.
EvilTokens launched in February via Telegram. For a $1,500 sign-up fee and $500 a month, subscribers got a complete fraud pipeline: an AI chatbot that read victims' inboxes, spotted trusted contacts and payment workflows, then drafted convincing impersonation emails designed to trick employees into transferring money. Selling the capability as a packaged monthly service is the same model as a legitimate SaaS product — price list, recurring billing, and all.
The platform exploited device code authentication, a legitimate sign-in method designed for TVs and devices without keyboards. The attacker sends the victim a code; the victim, thinking it is routine, enters it in their browser; the attacker's device gets authenticated. No stolen password required.
Microsoft, working with security firm SpyCloud and the UK's Metropolitan Police Service, seized 50 websites and 150 domains used to run the platform. Two men were arrested in the UK on suspicion of offences connected to EvilTokens. Victims spanned construction, healthcare, financial services, real estate, and higher education — mostly in the US, with significant numbers in Canada, the UK, Australia, India, and France.
What to do: Be sceptical of any authentication code request you did not personally trigger. If you receive a device code prompt out of nowhere, do not enter it — contact your IT support or the service directly to confirm it is legitimate.
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