Microsoft Discloses Passkey Phishing Campaigns Hijacking Cloud Accounts and Exfiltrating Data

Microsoft has revealed details of two active campaigns where threat actors are exploiting third-party email delivery infrastructure for financial fraud scams and using passkey-themed social engineering to breach cloud environments. One campaign involved sending over a million scam emails in early August 2026, impersonating CEOs to trick accounts payable departments into initiating fraudulent transfers. The attackers leveraged generative AI to craft tailored email templates.