2FA Fail: Hackers Exploit Microsoft 365 to Launch Code Phishing Attacks

Two-factor authentication (2FA) has been one of the most secure ways to protect online accounts. It requires a secondary code besides a password. However, in recent times, 2FA has not been a reliable method anymore, as hackers have started exploiting it easily. 

Experts advise users to use passkeys instead of 2FA these days, as they are more secure and less prone to hack attempts. Recent reports have shown that 2FA as a security method is undermined. 

Russian-linked state sponsored threat actors are now abusing flaws in Microsoft’s 365. Experts from Proofpoint have noticed a surge in Microsoft 365 account takeover cyberattacks, threat actors are exploiting authentication code phishing to compromise Microsoft’s device authorization flow.

They are also launching advanced phishing campaigns that escape 2FA and hack sensitive accounts. 

About the attack

The recent series of cyberattacks use device code phishing where hackers lure victims into giving their authentication codes on fake websites that look real. When the code is entered, hackers gain entry to the victim’s Microsoft 365 account, escaping the safety of 2FA. 

The campaigns started in early 2025. In the beginning, hackers relied primarily on code phishing. By March, they increased their tactics to exploit Oauth authentication workflows, which are largely used for signing into apps and services. The development shows how fast threat actors adapt when security experts find their tricks.[…]
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This article has been indexed from CySecurity News – Latest Information Security and Hacking Incidents

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