AI & ML

Sophisticated Passkey-Related Scams Target Microsoft 365 Users

Attackers are leveraging passkey-themed social engineering to breach Microsoft 365 accounts, exploiting vulnerabilities in MFA systems.

Sep 11, 2026 ● 3 min read
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Recent findings reveal that attackers are employing clever passkey-themed social engineering tactics to infiltrate Microsoft 365 accounts. A report from Microsoft Security Research indicates that since May, there has been a surge in cloud-based attacks, where adversaries pose as IT helpdesk staff, convincing employees that they need to update or enroll a passkey. This manipulation leads victims to fraudulent phishing pages designed to capture sensitive information.

How the Attack Unfolds

These malicious interactions typically start with attackers contacting employees via phone or messaging apps, claiming they're from the organization’s IT support. They convey an urgent need for an update concerning passkeys, multi-factor authentication (MFA), or single sign-on configurations to dodge potential disruptions. By creating a false sense of urgency, attackers exploit employee trust and prompt quick reactions, making it less likely for victims to think critically about the request. This conversation often ends with the employee being directed to a counterfeit Microsoft sign-in page, effectively giving attackers access to their credentials.

In certain tactics, like adversary-in-the-middle (AiTM) attacks, attackers can gain access to session tokens directly from the victims. In other scenarios, victims are instructed to enter codes on authentic Microsoft authentication pages, inadvertently authorizing the attacker's access. Microsoft’s assessments highlight that these initial contacts often leave minimal traces, particularly when phishing links are accessed on unmanaged personal devices. What this means for you is that enterprise security teams must be vigilant, since these channels of attack can easily bypass traditional defenses.

The Evolution of Tactics

Notably, some attackers have taken a step further by utilizing already-compromised accounts to send passkey-themed prompts through trusted platforms like Microsoft Teams, further blurring the line of trust. This tactic is particularly worrisome, as it marries a trusted communication tool with nefarious intent, misleading employees into compliance. Microsoft's observations reveal that attackers are not limited to a single approach; some have leveraged credentials and MFA methods registered days prior, indicating a sophisticated orchestration of attacks aimed at maintaining persistent access. This behavior underscores the adaptability of cybercriminals and their ability to exploit existing platforms to manipulate victims.

Post-Compromise Activities

Once an identity is compromised, attackers quickly begin registering their authentication methods. This includes personal phone numbers and software-based one-time password (OTP) tokens. This strategic move allows them to respond to future MFA challenges without raising suspicion. If you're working in this space, it’s imperative to understand this method, as it not only aids attackers in maintaining access but also complicates remediation efforts. Subsequently, attackers can use Microsoft Graph to map users, roles, groups, and cloud resources, making it easier for them to move laterally into applications like SharePoint and OneDrive in search of critical files and emails.

“Once an attacker registers their authenticator method, they can traverse the tenant through Microsoft Graph and retrieve files at a rate that could easily be mistaken for normal employee activity,” explains Jon Baker, VP of Threat-Informed Defense at AttackIQ. This insight reveals a chilling reality: the sequence of operations, while appearing superficial, is where the true danger lies.

Indicators of automation have been discovered—particularly in SharePoint and OneDrive activities—suggesting a calculated approach by attackers. Some attacks utilize the “python-httpx” user agent, which further complicates detection efforts. Attackers deliberately maintain a discreet pace, accessing fewer than 1,000 files or emails per hour. This insidious technique allows their operations to blend in with typical enterprise behavior, making it even more challenging for security teams to identify and act upon suspicious activity. And this is the part most people overlook: the nuanced strategies employed by attackers often remain undetected until significant damage has already occurred.

Defensive Strategies

In response to these threats, Microsoft recommends that organizations correlate unusual sign-in activities with new authentication method registrations. They also advise examining abnormal activity across Graph, SharePoint, and OneDrive. Implementing more resistant MFA systems through Conditional Access is also critical. These strategies can help mitigate risks associated with these sophisticated attacks, although organizations might find themselves continually adapting as attackers refine their techniques.

Implications and Future Outlook

As these attacks become increasingly prevalent and sophisticated, the implications for cybersecurity in organizations are substantial. Employees are often the first line of defense, and their awareness of social engineering tactics needs to be heightened. Training programs that focus not just on recognizing phishing attempts but also on understanding the manipulation tactics employed by attackers are crucial.

The threat landscape could push enterprises to adopt more stringent security measures, including real-time monitoring and rapid incident response strategies. With cybercriminals increasingly utilizing trusted platforms and leveraging existing credentials, organizations must remain agile and proactive. Ignoring these developments won't lead to a resolution—it's more likely to exacerbate vulnerabilities. The stakes have never been higher.

Source: James Davis · www.csoonline.com

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