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Microsoft reported a sharp rise in phishing activity in Q3 2026, characterized by the abuse of spoofed business-service domains and the exploitation of overly permissive organizational security overrides to deliver credential-harvesting threats.

The EvilTokens phishing-as-a-service (PhaaS) platform sold on Telegram is capable of launching device code phishing attacks at scale, leveraging AI to generate convincing and personalized lures, enabling aspiring cybercriminals to bypass traditional security measures, including MFA.

Threat actors are increasingly using device code phishing, often via Phishing-as-a-Service platforms, to compromise user accounts by abusing the OAuth 2.0 device authorization grant flow and capturing authentication tokens, enabling account takeover, data theft, and business email compromise.