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IAM News: Attackers Use Passkey Phishing to Hijack Microsoft Cloud Accounts and Exfiltrate Data

Microsoft has disclosed details of two campaigns in which threat actors are abusing third-party email delivery infrastructure to blast financial fraud scam mess

2 min readSeptember 16, 2026IAM Roadmap Team

Key Insight

Microsoft has disclosed details of two campaigns in which threat actors are abusing third-party email delivery infrastructure to blast financial fraud...

📰 Source: The Hacker News

Summary

Microsoft has disclosed details of two campaigns where threat actors used passkey phishing to breach cloud environments and exfiltrate data. The attackers sent over a million scam emails between August 3 and 5, 2026, masquerading as chief executive officers. These emails exploited third-party email delivery infrastructure to deliver financial fraud scam messages.

Attack Flow

Phishing Email

Clicks on Email

Passkey Captured

Uses Passkey

Attacker

User Receives Email

User Enters Passkey

Attacker Obtains Passkey

Access to Cloud Environment

IAM Impact

The passkey phishing campaign highlights the importance of robust identity and access management (IAM) controls. It demonstrates how attackers can exploit users' trust in email communication and their willingness to provide sensitive information, such as passkeys. This attack also emphasizes the need for organizations to implement multi-factor authentication (MFA) and monitor user behavior for suspicious activities.

Key Takeaways

  • Implement Multi-Factor Authentication (MFA): Enforce MFA for all users accessing cloud environments to prevent unauthorized access.
  • Monitor User Behavior: Regularly monitor user activity to detect suspicious patterns and prevent attackers from using stolen passkeys.
  • Secure Email Delivery Infrastructure: Ensure that third-party email delivery infrastructure is secure and does not facilitate phishing campaigns.

Recommendations

  • Conduct Regular Security Awareness Training: Educate users about the risks of phishing and the importance of verifying the authenticity of emails before providing sensitive information.
  • Implement Passkey Rotation: Enforce regular passkey rotation to reduce the impact of a single compromised passkey.
  • Use Conditional Access: Implement conditional access policies to limit access to cloud environments based on user behavior, location, and device.
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