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Microsoft dismantles EvilTokens phishing service, two arrested in UK

Microsoft has shut down EvilTokens, a subscription-based cybercrime service sold via Telegram that used AI tools to break into Microsoft accounts and mine stolen inboxes for payment details and business contacts. The company said the service compromised roughly 12,000 accounts across 10,000 organizations by abusing Microsoft's device-code sign-in process, and it seized 50 websites and 150 domains via legal action. UK police separately arrested two men suspected of running the operation.

Varonis details TrustSink attack abusing Microsoft Entra external MFA providers

Varonis Threat Labs disclosed a technique called TrustSink in which an attacker with a highly privileged Entra account registers a rogue external MFA provider that inserts a fake password prompt into legitimate login flows, capturing users' plaintext passwords. The rogue provider still returns a valid signed token to Entra, so the sign-in completes normally with no visible error, and resetting a stolen password does not remove the malicious provider from the authentication flow. Varonis says the method could work with any authentication system using this external MFA model but demonstrated it specifically against Microsoft Entra.

Microsoft sets February 2027 deadline to retire SMS sign-in for Entra ID

Microsoft has told IT administrators to move Entra ID users off SMS and voice-based first-factor sign-in before it shuts the option down in February 2027. Alternatives include passkeys, QR code authentication, and FIDO2 security keys, and the change applies even to organizations using their own telephony providers for multifactor authentication. The retirement covers only workforce tenant scenarios, not customer identity products like Entra External ID.

Microsoft Entra brings device-bound and synced passkeys to general availability

Microsoft Entra now fully supports passkeys as a passwordless authentication method, with both device-bound and synced passkey options reaching general availability. The guide explains how passkeys work using the WebAuthn standard, where a private key stays on the user's device or synced service while a public key is stored in Entra ID.

Azure OpenAI assistant leaked SharePoint files to low-privilege users, engineer finds

Egiziago Cioffi, CEO of Microsoft partner SynSphere Italia, discovered that an Azure OpenAI email assistant he built was returning SharePoint content to a low-privilege test account that the account could not access directly in SharePoint. The assistant had passed all evaluation scores and unit tests, but comparing outputs from a high-privilege and a low-privilege account against identical queries exposed the mismatch, revealing that retrieval was happening under the indexer's permissions rather than the requester's.