Beginning September 1, 2026, Microsoft will begin rolling out passkeys as the default authentication experience in Microsoft Entra ID. As the rollout reaches each organization, users enabled for SMS or voice authentication will automatically be enabled for passkeys, and the next time they perform multifactor authentication, they’ll be prompted to register a passkey.

Following this transition, on February 1, 2027, Microsoft will retire Microsoft-provided telecom delivery for SMS and voice authentication and will no longer offer SMS and voice as a native Microsoft Entra capability. Organizations that still require SMS or voice authentication methods will have the option to choose one of our telecom partners through the Microsoft Security Store. Customers will be responsible for any associated telecom-related costs charged by the telecom partners.

We strongly recommend moving users to passkeys or another phishing-resistant authentication method as soon as possible.

Why stronger authentication matters in the AI era

Authentication methods that use SMS or voice rely on shared secrets or channels that attackers increasingly intercept, phish, or manipulate. Passkeys use public-key cryptography rather than shared secrets, making them phishing-resistant by design. They also provide a faster, simpler sign-in experience for users.

The case for moving beyond SMS and voice is no longer just that attackers intercept or socially engineer these methods. The threat environment has changed in speed, scale, and sophistication. Microsoft Threat Intelligence has observed AI-enabled phishing campaigns reaching click-through rates as high as 54%, compared with roughly 12% for more traditional campaigns, making stolen passwords and phishable second factors an urgent risk.¹ At the same time, tactics such as SIM swapping and multifactor authentication bypass have become more accessible and repeatable.

An AI-powered cyberattack can use a compromised identity to automate discovery, privilege escalation, and lateral movement much faster than a human attacker working manually. This is why phishing-resistant authentication methods are so important.

By making passkeys the default authentication experience, organizations reduce reliance on phishable authentication methods and strengthen protection against credential theft and phishing.

Still need SMS or voice? Select a telecom provider in Microsoft Security Store 

Today, Microsoft provides the telecom delivery behind SMS and voice authentication natively within Entra ID. As part of this transition, we’ll step back from providing that native telecom delivery to encourage phishing-resistant methods as the standard for everyone.

For most organizations, the recommended path is simple: move users to passkeys at no additional cost.  

If you have a regulatory, technical, or business requirement to keep SMS or voice, you’ll be able to select, configure, and manage a third-party telecom provider through the Microsoft Security Store—a partner marketplace where you can contract directly with supported carriers. 

On September 18, 2026, we’ll share information on supported providers, deployment guidance, and technical documentation with pricing and commercial terms available through the Microsoft Security Store.

How to prepare

Start planning your transition now so you can select the deployment approach that best fits your organization and ensure your users are prepared for upcoming changes to their sign-in experience.

1. Identify users who still use SMS or voice. Review your authentication method policy and identify which users or groups are enabled for SMS or voice authentication.
2. Plan your passkey rollout. Enable passkeys and select the types that best fit your users’ devices and workflows. Microsoft Entra ID supports:
   • Synced passkeys, such as passkeys stored in platform credential managers like iCloud Keychain and Google Password Manager.
   • Device-bound passkeys, such as Microsoft Authenticator passkeys, Entra passkey on Windows, and FIDO2 security keys.
3. Use a registration campaign to drive adoption. Microsoft Entra ID can help organizations move users at scale by prompting them to register a passkey during multifactor authentication sign-in.
4. Prepare user communications. Tell affected users what’s changing, when they’ll see a passkey registration prompt, and how to complete registration on their device.

For step-by-step guidance on planning, deploying, and managing passkeys, see our Microsoft Learn documentation and passkey deployment guide. 

• aka.ms/passkeybydefault
• Get started with a phishing-resistant passwordless authentication deployment in Microsoft Entra ID

If regulated, technical, or operational scenarios still require SMS or voice:

1. Identify and document affected user segments.
2. Starting October 30, 2026, select and configure a supported telecom provider through the Microsoft Security Store.
3. Test your configuration with a pilot group before any broad rollout.

Timeline

Note: The dates outlined in this post apply to Microsoft Entra ID in the public cloud only. Support for other cloud environments will follow on a separate timeline, with additional guidance and dates to be announced in advance.

SMS and voice have served their purpose well, bringing multifactor authentication to billions of users who otherwise would have had none. But the threat environment has evolved beyond their capabilities, and we need to evolve with it.

We’re making passkeys the default in Entra ID because they work better for users and worse for cyberattackers. We’re trying to make this transition as predictable as possible with clear dates, fallback options during migration, and recovery that doesn’t depend on phishable credentials anymore.

Learn more at aka.ms/passkeybydefault 

To learn more about Microsoft Security solutions, visit our website. Bookmark the Security blog to keep up with our expert coverage on security matters. Also, follow us on LinkedIn (Microsoft Security) and X (@MSFTSecurity) for the latest news and updates on cybersecurity.

¹Microsoft Digital Defense Report 2025.

The post Microsoft Entra ID security updates: Passkeys are the default authentication method in Entra ID appeared first on Microsoft Security Blog.

At Microsoft we encompass these security requirements, along with threat knowledge and operational frameworks in our Secure Future Initiative (SFI), to guide what a well-defended cloud service looks like. But defining the requirements is only the start. Meeting them means continuously evaluating our live services against them, at AI speed.  

That is why Microsoft built a multi-agent AI system that proactively evaluates and hardens our cloud infrastructure—matching the speed, scale, depth, and quality needed for our unique hyper-scale production environments. This system is purpose-built to evaluate Microsoft’s own cloud services against our stringent security requirements and make our infrastructure harder to compromise. While this is an internal capability and not available as a customer-facing product or service, the insights and patterns we develop through this work will inform how we improve our products over time. This system complements existing tools in Microsoft’s security ecosystem. For example, this system incorporates code-level vulnerabilities, including from systems like codename MDASH and adds configuration, identity, network, and runtime context, to assess overall service security posture. 

A modern AI architecture for proactive defense 

Vulnerabilities don’t just live in code. They emerge from the interplay between how a service is built, configured, deployed, and connected. Consider a cloud service where the application code passes every security review, the identity configuration follows least-privilege policy, and the network rules restrict inbound traffic as designed. Individually, each component is compliant. The system evaluates the service as a whole and may find that a combination of a permissive service-to-service trust relationship, a token scope that grants broader access than the service requires, and a deployment configuration that exposes an internal API to an adjacent network tier creates a composite vulnerability that no single-component review would surface.

At its core, the system employs a multi-tier agent hierarchy: orchestration agents for workflow management, analysis agents that specialize in security reasoning and are grounded in Microsoft’s threat intelligence—including emerging patterns and threat actor activity—and evidence-gathering agents that investigate across code repositories, infrastructure definitions, identity configurations, runtime settings, network topologies, and live resource states.  

The result of this multi-stage analysis is a comprehensive security understanding of each service that goes beyond what any single analysis method can provide on its own. Compared to traditional human-led security reviews that take weeks, the system compresses the same depth of analysis into hours. 

How it works: The system follows a multi-stage analysis pipeline, where each stage builds on the one before it:

1. Profiles each service architecture to understand components, data flows, trust boundaries, risk exposure, and more. 
2. Enumerates applicable security controls based on SFI requirements across identity, network, tenant isolation, engineering systems, and detection domains. 
3. Verifies control implementations against real-world code, configurations, and cloud resources. 
4. Evaluates defense-in-depth coverage to help ensure layered protections exist across all control domains. 
5. Identifies where controls are missing, misconfigured, or brittle, and maps the compensating controls that determine whether a gap is exploitable in practice. 
6. Produces compensating controls and durable fix recommendations for immediate-risk reduction while driving lasting remediation. 
7. Continuously learns and improves by incorporating feedback from security reviewers and service teams, and by tapping into Microsoft’s evolving threat intelligence to adapt to new patterns. 

Core design principles  

The analysis pipeline is shaped by four principles that determine how the system reasons about security: 

1. Frontier-ready architecture

The system is built with modular model interfaces that can take advantage of new frontier capabilities as they emerge. New models, enhanced planning, and execution capabilities can be integrated behind stable agent interfaces—preserving existing tooling, orchestration, knowledge, pipelines, reporting, and governance.  

2. Compositional risk reasoning

The system uses “what-if” agentic ideation to reason compositionally about risk. It explicitly explores how individual security gaps can chain together into multi-step attack paths. For example, a minor misconfiguration in identity, combined with a seemingly unrelated network exposure, and a missing data encryption control, might together enable a serious breach. Modern attacks are often complex sequences rather than single bugs, and the system is designed to help identify and analyze them. By running diverse models and large-scale reasoning trials in parallel, the system explores an expansive space of scenarios that traditional static analysis or single-scan tools would miss. 

3. Service-specific adaptation

Cloud services aren’t one-size-fits-all, so security analysis shouldn’t be either. Rather than applying a fixed checklist, the system builds a service-specific understanding of each service it analyzes. It profiles the service in depth—identifying its components, mapping data flows, locating trust boundaries, and determining which security controls should apply given that service’s unique architecture and risk profile. If a service uses a novel pattern, a microservices architecture spanning multiple codebases, or an agent-to-agent communication model, the system adapts its analysis to account for those patterns. This adaptive approach, guided by current SFI requirements, means that the system can tackle emerging cloud paradigms that don’t fit traditional security checklists.

4. Defense-in-depth evaluation

A key focus area for SFI is layered defense. The system asks two questions: “What vulnerabilities exist?” and “Where does this service lack multiple lines of defense?”. It evaluates whether critical security domains have overlapping, robust controls, and it flags any missing or brittle layers—even if no immediate exploit is identified.

For example, the system will highlight a scenario where a service might have a weak network segmentation or an overly permissive admin role—even in the absence of a known attack—because those gaps mean a single failure could lead to a compromise.

This forward-looking, “assume breach” analysis embodies the Zero Trust and defense-in-depth principles reinforced by SFI. In an era when AI-assisted attackers can enumerate systems faster and chain together weaknesses more systematically, ensuring redundant safeguards is increasingly critical.  

The assurance tree: SFI in action 

At the core of the system are the SFI engineering and security principles: a structured body of security requirements shaped by years of hardening the Microsoft infrastructure. These requirements guide what the system evaluates, how it reasons about risk, and the recommendations generated. When security expectations evolve—whether to address a new class of threats or incorporate lessons from remediation—the system’s reasoning evolves with them. The assurance tree is how we express these requirements: a structured, hierarchical map of security controls that the system expects a service to have in place, tailored to that service’s usage and design.

As the system profiles a cloud service, it generates an assurance tree tailored to that service. At the top level of the tree are the fundamental security domains, that map to the SFI pillars. Each of these domains is recursively decomposed into more granular controls and sub-controls tailored to the service. For instance, Identity security decomposes into controls for password policies, OAuth token handling, and MFA enforcement—down to verifying that the service’s code correctly validates a JSON Web Token’s issuer and expiration. The assurance tree guides the system’s evidence-gathering agents to verify that thousands of expected controls are in place and effective—or to identify where something is missing. 

This approach turns security from an open-ended hunt into a systematic verification of the SFI requirements: the system is essentially asking, “Have all the security measures that should protect this service been properly implemented?”. Crucially, it goes further—considering how individual gaps might combine, helping to ensure that even combinations of missing controls are identified and addressed. 

Proven results: From theory to practice 

Within a few months, the system has enabled Microsoft security engineering teams to proactively harden our cloud services. It generates findings and recommendations which our security engineering teams then validate and implement. Because the system evaluates the whole service in context and reasons about the severity and exploitability of each issue before surfacing it, its findings have proven high quality and actionable: more than 90% have been confirmed as genuine security issues by our security engineers, enabling proactive action to improve security posture. Just as important as the volume and precision of findings is their nature. Many issues the system discovers are nuanced, cross-domain vulnerabilities that wouldn’t have been caught by traditional methods. For example, the system has uncovered security gaps that only become apparent when considering code, configuration, and cloud resources together—the kind of issue that isolated scans or compliance checklists could overlook.  

This capability allows us to enhance how we do security reviews. Traditionally, a deep security review of a complex service might span weeks of effort by multiple domain experts. The system can achieve a thorough review in a matter of hours—allowing teams to assess more services, more frequently.

The path forward: Applying these principles in your environment

If you are responsible for security at your organization, the key question is whether your defenses are keeping pace. AI models will continue to evolve. The organizations that are hardest to compromise will be the ones that have layered, verified controls already in place—not the ones that react fastest after something is found.

Based on what we have learned from building and operating this system, here are three principles any organization can apply now:

1. Go beyond code scanning to system-level discovery. The most consequential issues emerge not from a single bug, but from how factors including code, configuration, identity, and network interact in production. Collect rich signals across these domains and evaluate your services as composed systems, not isolated components. Prioritize composite attack paths over individual findings. 
2. Move beyond known vulnerability patterns to proactive defensive controls. Traditional scanning asks, “Is there a known bug here?” Proactive hardening asks, “Does this service have comprehensive controls and layered defenses?” Reason about not just vulnerabilities, but controls, and how defense-in-depth coverage can improve protection before a specific exploit is discovered. 
3. Integrate AI to drive proactive prevention at machine speed. The same AI capabilities that accelerate vulnerability discovery can be applied to continuously evaluate whether security controls are correctly implemented, layered effectively, and working as intended. Organizations that adopt AI-powered proactive evaluation will identify and close gaps faster than those relying solely on periodic manual review. 

For deeper guidance on implementing AI-powered defense for an AI-accelerated threat landscape, customers can review Secure Now guidance for AI‑powered security and proactive defense. Any customer with a Microsoft Entra ID can access it. Microsoft Security customers will also have access to capabilities that enable them to assess their exposure and take action. 

Moving forward, we will share more about how we are scaling our response operations to match machine speed and how SFI’s engineering practices are evolving for this new reality.

To learn more about Microsoft Security solutions, visit our website. Bookmark the Security blog to keep up with our expert coverage on security matters. Also, follow us on LinkedIn (Microsoft Security) and X (@MSFTSecurity) for the latest news and updates on cybersecurity. 

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Codename MDASH helps teams discover and remediate complex vulnerabilities

Codename MDASH is a multi-model agentic scanning system designed to discover, validate, and help remediate software vulnerabilities across complex environments. MDASH orchestrates a panel of specialized AI agents that reason through proprietary code and systems, helping security teams surface elusive vulnerabilities quickly and systematically. For example, when security teams use MDASH to scan a complex application, it can identify and validate a previously undetected vulnerability in the underlying code and systems, and route it into Microsoft Defender workflows and engineering pipelines for remediation. This closed loop connects discovery, validation, and remediation across the Microsoft stack. Sign up to follow codename MDASH and join the private preview to surface and validate hard-to-find vulnerabilities with multi-model AI.

Microsoft Defender extends endpoint protection to local AI agents

Microsoft Defender now discovers more than 25 types of local AI agents and Model Context Protocol (MCP) servers across managed Windows and macOS devices. Defender also protects at runtime: if a developer using a popular coding agent like GitHub Copilot Command-Line Interface (CLI) or Claude Code is targeted by a prompt injection attempts, Defender detects and blocks it before the malicious action executes. From there, security teams can investigate agent exposure across their environment with Advanced Hunting. These capabilities are now in preview.

Microsoft Entra Backup and Recovery restores critical identity data

Microsoft Entra Backup and Recovery is now generally available, delivering Microsoft-managed, always-on backups native to your environment that are protected from deletion or modification. Security teams gain clear visibility into what changed across their tenant and can back up core directory objects, compare and restore to previous timestamps, and configure Conditional Access policies to protect against permanent deletion. Together, these capabilities protect your tenant, helping you minimize downtime and recover quickly from accidental changes and security compromises. Strengthen identity resilience with rapid recovery capabilities in Microsoft Entra.

Microsoft Defender protects open-source relational databases on AWS RDS

Microsoft Defender for Cloud now extends database threat protection to open-source relational databases on Amazon Web Services (AWS) Relational Database Service (RDS). Now generally available, built-in threat detection identifies anomalous access patterns and brute-force attempts, while automated sensitive data discovery helps teams understand where high-risk data resides. These insights, combined with integrated investigation across Microsoft Defender, help teams prioritize and respond to database risks more effectively. Detect threats and discover sensitive data across Azure and AWS with Microsoft Defender.

Greater flexibility over data security insights with Microsoft Purview customizable reports

Microsoft Purview customizable reports, now generally available in Data Security Posture Management (DSPM), give teams greater control and flexibility to tailor reporting views, analyze trends, and quickly surface the insights that enable faster, more informed decisions. Choose from out-of-the-box reports or create custom reports tailored to your organization’s specific needs, with easy options to export and share insights across teams and stakeholders. For example, security teams can create role-specific reports that highlight high-risk data exposure trends to guide policy decisions. Learn how to customize reporting experiences to uncover your critical data security insights.

Broader visibility with expanded multi-cloud coverage in Defender for Cloud

Microsoft Defender for Cloud is expanding multicloud coverage and visibility across AWS and Google Cloud, adding support for approximately 90 additional resource types and more than 200 new security recommendations. Security teams can better understand their attack surface with broader visibility across cloud-native applications, identities, data services, and workloads. Across multicloud environments, teams can better assess security posture and prioritize remediation based on exposure context, compliance posture, and business criticality to reduce risk more effectively. Gain broader visibility and prioritize risk across multicloud environments with Defender for Cloud.

Prioritize risk with unified identity risk score

A new unified identity risk score combines signals from across Microsoft Security into a single, explainable measure of an identity’s risk. It brings together behavior, access patterns, and threat intelligence for all related accounts, sessions, and applications to provide a complete view of risk. The moment an identity acts suspiciously, the score helps your team cut through the noise, prioritize what’s urgent, and can automatically trigger Conditional Access policies to enforce protection at the point of access. Prioritize identity risk and enforce protection in real time with the new unified identity risk score.

Security innovations purpose built for developers

To help developers secure code, agents, and models while giving security teams consistent visibility and control from development through runtime, Microsoft is integrating security into the tools and platforms developers already use. Organizations can use the new security tools and capabilities announced at Microsoft Build 2026 to innovate faster and scale AI adoption without sacrificing security. Read more about the Build 2026 security announcements.

Stay In the Loop

Microsoft Security continually ships meaningful innovations across our portfolio and research-driven insights and reports for the security community. In the Loop posts are your reliable source of what’s new across Microsoft Security and what it means for your security strategy. Check back for the next drop.

To learn more about Microsoft Security solutions, visit our website. Bookmark the Security blog to keep up with our expert coverage on security matters. Also, follow us on LinkedIn (Microsoft Security) and X (@MSFTSecurity) for the latest news and updates on cybersecurity.

The post ​​What’s new in Microsoft Security: June 2026 appeared first on Microsoft Security Blog.

Why Microsoft Intune is a leader in endpoint management

The Forrester Wave™ Endpoint Management Platforms, Q2 2026 report includes eight endpoint management platform providers, assessed across current offering, strategy, and customer feedback. Forrester’s assessment of Microsoft reflects how Intune is built. The vision Forrester describes is one built on Microsoft Entra, Microsoft Defender, Windows, and Windows 365 as a connected system, not a collection of adjacent tools. Customers can enforce conditional access, apply compliance policies, and correlate device health signals from a single admin center. That reach is what the cross-platform, cloud-native architecture is built for.

Microsoft Intune offers a strong platform for Windows environments, as customer feedback in the Forrester report notes, and Intune brings management across Windows, macOS, iOS, and Android together in the same admin console. That leadership extends from information worker devices to the frontline worker endpoints that are increasingly critical to business operations. On macOS specifically, Intune uses declarative device management to apply configuration and compliance policies natively, without requiring a separate tool or an additional management layer. Frontline workers on shared kiosks and handheld scanners, and information workers on corporate laptops, fall under the same policies without requiring parallel toolchains.

Endpoint Privilege Management (EPM) received explicit recognition from Forrester, which noted that AI embedded in Intune powers EPM and device onboarding workflows to help IT analyze device data and troubleshoot issues. Elevating or restricting privileges used to require manual review cycles. With AI in that workflow, admins make faster decisions on which requests to approve, deny, or escalate.

Security Copilot in Intune operates directly within the admin experience, operating on the same data and policy surface IT teams already use. From policy configuration, to identifying vulnerabilities, and recommending remediation, agentic assistance handles investigation and triage so admins focus on decisions that need judgment. The recent public preview of the Vulnerability Remediation Agent extends that further, drawing on Microsoft Defender Vulnerability Management to surface CVEs across Intune-managed Windows devices and apps, with Copilot-assisted impact summaries, suggested actions, and step-by-step remediation guidance, all without leaving the console.

These capabilities do not stand alone. Forrester also recognized a superior partner strategy. Our strategy helps connect endpoint management to the service desk, device procurement, and mobile threat defense tools already in the environment. Endpoint management that stops at the device boundary does not close the loop on risk. Intune, with capabilities such as EPM and AI-assisted remediation, brings its partner ecosystem together to help turn Zero Trust from core principles into daily IT practice: apply least privilege, verify explicitly, and enforce through policy to prevent breach.

On licensing, Forrester’s independent customer feedback pointed to the economic value of Microsoft simplified, bundled pricing. Intune is included in Microsoft 365 E3 and Microsoft 365 E5. Starting this month, advanced management solutions of the Intune Suite, including EPM, join those plans automatically. Full details are in our announcement blog: Microsoft 365 adds advanced Microsoft Intune solutions at scale. We continue to invest in areas such as unattended remote access sign-in for Intune Remote Help and automatic updates of required apps for Intune Enterprise Application Management, both of which will roll out for general availability in July 2026, and Intune now supports Red Hat Enterprise Linux 9 and 10.

Governing AI for the future of work

Every organization putting AI to work in practice needs IT and security teams that can say yes confidently: Yes to new device types, yes to modern workloads, and yes to agents running alongside users. Trust and confidence are requirements for safe AI adoption. Microsoft Agent 365 gives organizations a control plane for agents they can trust, and confidence comes from having a platform where identity, device management, and security policy are already connected. A unified platform does not just reduce complexity. It changes what teams are able to do with their time, and what the organization is able to do with AI.

AI agents are now endpoints, and Intune is the policy layer for Agent 365 that governs how they run. Through Microsoft Execution Containers, Intune gates local agent runtime execution directly on Windows devices, requiring isolation with guardrails like filesystem rules so agents run in controlled environments rather than with unchecked access to host systems. Windows 365 for Agents extends that model to cloud PCs provisioned specifically for agent workloads: Each agent Cloud PC is Entra-joined and Intune-managed, configured with the same security, compliance, and policy controls as user devices, so governance scales without new infrastructure.

For shadow AI, Intune is one of three signals alongside Defender and Entra that surface unmanaged agents. Defender discovers agents and adds inline protection; Intune applies policies to block common execution methods and device-level runtime security policies, giving multiple connected signals and one coordinated posture rather than multiple parallel workflows. That is how AI moves from an isolated pilot into the daily practice of how organizations operate, govern and protect AI, not just enable it.

At Microsoft, we believe Forrester’s assessment reflects where the market is heading, where governance, identity, and security work as one system. Each capability is more effective because it operates on shared signal, not siloed data. Microsoft Intune helps organizations reduce complexity, strengthen security, and make AI adoption practical at scale—governed and protected.

Learn more about Microsoft Intune solutions. Bookmark the Microsoft Intune blog to keep up with our expert coverage on endpoint management.

To learn more about Microsoft Security solutions, visit our website. Bookmark the Security blog to keep up with our expert coverage on security matters. Also, follow us on LinkedIn (Microsoft Security) and X (@MSFTSecurity) for the latest news and updates on cybersecurity.

Forrester does not endorse any company, product, brand, or service included in its research publications and does not advise any person to select the products or services of any company or brand based on the ratings included in such publications. Information is based on the best available resources. Opinions reflect judgment at the time and are subject to change. This report is part of a broader collection of Forrester resources, including interactive models, frameworks, tools, data, and access to analyst guidance. For more information, read about Forrester’s objectivity here . 

The post Microsoft a Leader in The Forrester Wave™ for Endpoint Management Platforms appeared first on Microsoft Security Blog.

As threat actors operationalize AI to accelerate attacks, they are also leveraging the wider global interest around AI itself as a social engineering lure. In recent months, Microsoft Threat Intelligence has observed a growing number of campaigns that impersonate the branding of popular AI platforms such as ChatGPT, Microsoft Copilot, DeepSeek, and Anthropic’s Claude as lures. These campaigns, which don’t represent compromise of services, span phishing, malvertising, and search engine optimization (SEO)-driven attacks that ultimately lead to credential theft, financial fraud, or malware infection.

Threat actors are quick to capitalize on highly anticipated launches or emerging trends, leveraging trusted branding and exploiting user curiosity to improve the success rates of their campaigns. Despite the AI-themed lures, however, these campaigns combine longstanding tactics, such as urgency-driven messaging, abuse of trusted services, and multi-stage redirection chains that require user interaction to evade detection.

While traditional lures like invoices, payment notifications, or delivery alerts remain effective and continue to be widely used, AI-themed lures reflect a shift in social engineering that is likely to persist as a long-term tactic used by threat actors, from cybercriminal groups to nation states. Notably, Microsoft Threat Intelligence has observed the initial access broker Storm-3075 employing AI-themed malvertising to deliver payloads, including malware signed by the malware-signing-as-a-service (MSaaS) offering attributed to the financially motivated threat actor Fox Tempest, on behalf of multiple downstream actors.

This blog details several of the campaigns observed by Microsoft Threat Intelligence in the past few months that used AI brands and references as lures, and provides guidance to help users and organizations detect, mitigate, and respond to these threats. Importantly, Microsoft believes that the activity noted in this blog is purely abuse of AI brand names as lures, not reflecting a compromise of any referenced vendor. As threat actors scale their operations with AI, organizations should leverage AI-powered security capabilities to enhance visibility, automate detection, and accelerate response across email, identity, and endpoint surfaces.

ChatGPT-themed lure leads to phishing kit collecting credit card data

On May 5, 2026, Microsoft detected a ChatGPT-themed phishing attack that delivered malicious URLs leading to phishing pages that collected credit card and personal information such as names and addresses. This phishing activity, which consisted of 4,500 emails sent to targets in South Africa (97%), was part of a broader campaign using similar themes and infrastructure. We also observed this campaign delivering as much as 100,000 emails on a single day to targets in Switzerland, Austria, and South Africa affecting a broad range of industries, including higher education and professional services.

The emails used the sender display name ChatGPT and the subject “To ensure your ChatGPT Plus continues to work – please update your payment method”. The emails posed as an urgent request to update the ChatGPT Plus subscription payment method. They warned the recipient that if a new payment method was not provided within seven days, the account would be downgraded to a free plan. A ChatGPT logo was prominently displayed at the top of the email body.

The phishing email contained a clickable Update payment method button, which did not directly send users to the attacker-controlled site. Instead, users were redirected through a series of legitimate and abused redirector hops. This is a common technique used by threat actors to exploit the reputation of trusted domains and bypass email filters, evade detection, and track victim engagement.

Targets were first directed to grupoconstat[.]bitrix24[.]com[.]br (a legitimate customer relationship management (CRM) service), which redirected to awstrack[.]me (an Amazon domain used for tracking email opens and clicks), which in turn redirected to a Rebrandly URL (a legitimate but often abused URL shortener service). Targets were finally sent to a likely legitimate but compromised domain legendarytrendsbay[.]shop where the threat actor had placed the phishing page in the /ChatGPT/ folder.

The landing page did not immediately display the phishing content. It first required visitors to pass a custom CAPTCHA, which was a simple Update payment button. If they clicked this button, users were sent to the next page where personal information, including first name, last name, and address was collected. The final page then collected the name, credit card number, expiration date, and card verification code.

Claude-themed phishing campaign collected credentials and access tokens

From April 20 to 22, 2026, Microsoft observed a phishing campaign impersonating Anthropic-branded services to target users with account-related lures tied to the Claude AI platform. The campaign sent phishing emails to targets across more than 2,000 organizations, primarily in the United States (62%), the United Kingdom (18%), and India (9%). While this campaign impacted a broad range of industries, it was most notably focused on information technology (56%), other business entities (21%), and financial services (8%).

The campaign used enforcement-themed messaging claiming that the recipient’s account was in violation of acceptable use policies and required immediate action. The emails impersonated Anthropic’s popular AI service Claude using the display names Anthropic Teams and Anthropic PBC, masquerading as legitimate account-related communications. Subject lines followed a consistent structure of “Claude Appeal Request” combined with date elements.

The email body was delivered as HTML and included Anthropic and Claude branding. The message informed recipients that their account was violating “AUP (Account Usage Policy)” and that Anthropic had “initiated an appeal procedure”. The message instructed recipients to review the attached material to access their appeal and indicated that Claude features would be limited pending review.

The email attachment was a PDF named Fill and Sign Claude Appeal Form.pdf, which was designed to resemble an official process tied to Claude account enforcement. The document presented an appeal workflow, prompting users to copy an appeal ID and click the “Claude Appeal” link, which initiated the credential harvesting process.

When clicked, the link embedded in the PDF directed users to an attacker-controlled domain, dash.awaydouble[.]org. The initial landing page displayed a Cloudflare verification prompt, presented as confirming the user was arriving from a “legitimate session”. This step likely served as a gating mechanism to impede automated analysis and sandbox detonation.

Users who completed the verification were redirected to another Claude-themed landing page hosted on servicing.pureplantcravings[.]com. This page was named “Account Appeal Notice” and contained “Account Security & Compliance” message informing users that their account had been flagged for repeated violations of usage policies. The page provided a reference date and a one-time access code, prompting users to copy the code and continue.

Clicking “Continue” redirected users to the final page, which was not available at the time of analysis. Source code revealed conditional redirect logic that routed users to one of two final landing pages, depending on whether the site was accessed through mobile device or a desktop system.

While the final redirect destination was no longer active at the time of analysis, infrastructure overlap, including shared intermediate domains and consistent redirect logic, strongly suggested that users were ultimately presented with a Microsoft sign-in experience. This final stage is consistent with adversary-in-the-middle (AiTM) tactics designed to intercept authentication tokens and facilitate account compromise.

“Awesome AI Windows Plugin” malvertising deploys Vidar stealer

Since at least early 2026, Microsoft Threat Intelligence has observed malvertising campaigns that use AI-themed terms such as “Awesome AI Windows Plugin” and “Flux Pro AI” in social engineering lures in malicious popups, in malware executable names, and GitHub repository and folder names throughout the attack chain. These campaigns are notable for their scale and velocity, moving from launch to mass impact within hours and infecting tens to hundreds of thousands of endpoints. The malware delivered in these campaigns is frequently code-signed, lending an additional layer of perceived trust to both the operating system and the user.

Microsoft attributes this malvertising activity to an initial access broker and malware distributor tracked as Storm-3075. We assess that Storm-3075 delivers final payloads on behalf of multiple downstream actors. While the example campaign described in this section delivered Vidar Stealer, we have also observed this campaign distributing Lumma Stealer, Hijack Loader, and Oyster.

On March 13, 2026, a single campaign run targeted over 66,000 devices. Microsoft has revoked the related signing certificate and GitHub has taken down the associated repository, helping to prevent tens of thousands of additional infections. Given the nature of the attack source, majority of impacted devices were likely consumer rather than enterprise endpoints. Telemetry showed global distribution, with the top affected countries being Japan, South Africa, the United States, and France.

Analysis of the redirection chain determined that the attack likely originated from free movie streaming sites. Infections on such sites typically begin when users interact with embedded movie players or click popups. Malvertising embedded in such sites can redirect users to a range of unwanted content, including malware. In this campaign, users were redirected to a page advertising a download for an “Awesome AI Windows plugin”, a fictitious product name. The plugin purported to help users watch free, high-quality videos, a lure aligned with the context of users already streaming free or pirated content.

Clicking the download button retrieved an executable named ProFluxeFlowAi-win-Setup.exe, which the user then had to manually launch. The file name mimicked a legitimate product with a similar name, Flux Pro AI, which supports text, image, and video creation. This lure reinforced the perceived legitimacy of the executable within the streaming of free movies context. The executable itself was hosted on GitHub in a repository named shippingtechnologymovie under a folder named AI-techVideos, both tailored to the AI video helper narrative.

The malware executable was signed with a fraudulently obtained Microsoft-issued code-signing certificate obtained through Artifact Signing (certificate thumbprint: 4f5c5b3ef45cfff7721754487a86aeff9a2e6e32). Microsoft attributes the signing service used by the threat actor to Fox Tempest, a financially motivated threat actor operating a malware-signing-as-a-service (MSaaS) offering used by other threat actors. Microsoft has revoked over one thousand code signing certificates attributed to Fox Tempest. In May 2026, Microsoft’s Digital Crimes Unit (DCU), in partnership with Resecurity, facilitated a disruption of Fox Tempest infrastructure and access model.   

Signing malware through such a service is expensive; however, for a threat actor targeting tens or hundreds of thousands of infections, the cost can be justified by the additional level of trust signed binaries imply to both the operating system and the user. Signed malware also tends to exhibit lower detection rates early in the infection lifecycle, extending the window of effective distribution.

Another notable feature of the malware is that, immediately after launch, it displays a window with a “Continue” checkmark and does not proceed until the box is clicked. This extra user interaction step is uncommon. We assess that this technique is intended to hide the malicious functionality from sandboxes and automated analysis environments that cannot dynamically perform the click. Until the user clicks “Continue,” the malware performs no suspicious activity on the operating system. This technique is functionally analogous to the CAPTCHAs frequently seen in phishing attacks.

Once the user clicks “Continue”, the executable drops and runs a malicious Python-based downloader. Both the Python interpreter and the downloader script are saved in the \AppData\Local\ folder as pythonw.exe and LICENSE.txt, respectively. The malicious script runs shellcode that loads the next-stage malware from the command-and-control (C2) domain brokeapt[.]com. The final payload observed in this campaign was Vidar infostealer.

Fake DeepSeek V4 installers on GitHub delivered Vidar Stealer

In April 2026, Microsoft identified a social engineering campaignsocial-engineering campaign that leveraged interest in the newly released DeepSeek V4 by impersonating it through a fraudulent GitHub repository and organization. The campaign abused GitHub’s release-asset infrastructure to deliver information-stealing malware such as Vidar stealer. Search engines increased the exposure of the malicious repository, exacerbated by the fact that DeepSeek did not publish an official V4 repository on GitHub.

Our investigation shows the DeepSeek lure is one identity in a broader rotating brand-abuse ecosystem that recycles whichever AI tool is trending into a fresh malware download experience. After discovering this activity, Microsoft shared the details with GitHub, and GitHub has since taken down the malicious organization, repository, and operator account.

On April 24, 2026, within hours of DeepSeek officially previewing its new V4 frontier model, a threat actor initiated the attack chain that can be summarized as:

1. Resource development on GitHub, all within roughly 45 minutes: A new GitHub organization (DeepSeek-V4), a single repository (deepseek-V4), and a release tag (deepseek-V4). The repository was decorated with stolen DeepSeek branding, real benchmark data, and SEO-optimized topics.
2. Search-driven discovery: Users found the repository through GitHub repository search, search engines, social sharing, and AI-assisted search results pointing to the lure page. The repository’s llms.txt and topic taxonomy were designed to be discovered by both classical search engines and large-language-model-powered search; observed top-rank results on search engines are consistent with that design, though we did not observe paid advertising and therefore do not assess this as malvertising.
3. Archive download from GitHub’s release-asset CDN: The release page hosted two archives, deepseek-v4-pro_x64.7z and deepseek-v4-flash_x64.7z.
4. User extraction: Users needed to extract the executable from the archive using common Windows archive tools.
5. Payload execution: The archives contained a heavyweight Win32 PE that masqueraded as the DeepSeek installer. At least one confirmed victim endpoint revealed the extracted payload landed at: C:\Users\<user>\Downloads\Programs\IA DeepSeek-V4\deepseek-v4-flash_x64.exe.
6. Active payload rotation: The threat actor actively rotated archive content while preserving file names and the release page. We observed at least three distinct archive hash generations in three days.

Microsoft Defender telemetry observed the first victim download approximately four hours later. The threat actor’s operational tempo on April 24, 2026, is consistent with a prepared, rehearsed workflow. The repository was designed to be convincing at a glance. It accumulated 91 stars and 27 forks within four days, though the proportion of organic versus inflated engagement is not independently confirmed. The attacker invested in several credibility-building elements:

• Stolen branding: The repository’s README and assets folder embedded the legitimate DeepSeek whale logo, copied from the real deepseek-ai/DeepSeek-V2 repository.
• Real benchmark data as lure: The release notes displayed authentic DeepSeek V4 benchmark scores against Claude Opus 4.6, GPT-5.4, and Gemini 3.1 Pro, copied from the official release announcement.
• Action-oriented SEO topics: The repository was tagged with deepseek-v4, deepseek-v4-download, deepseek-v4-downloader, deepseek-v4-install, and deepseek-v4-installer, which are queries users are expected to use when intent-shopping for an installer.
• LLM-aware discoverability: A top-level llms.txt file repeated the same SEO copy in a format aimed at AI-assisted search engines.

On closer inspection, the staging gives the operation away: the repository contained only a README, LICENSE, llms.txt, and stub assets/ and inference/ directories with no real model code; all nine commits were made in a single burst on April 24, 2026 by a single author; the README claimed an MIT license while repository metadata specified Apache 2.0.

Once the lure was live, search engines increased the exposure of the malicious repository. We tested the queries an interested user would naturally try when looking for DeepSeek V4 on GitHub or the open web. In a snapshot captured on April 28, 2026, the results were as follows (search results are volatile and may differ at the time of reading):

The 7z archives hosted on GitHub contained a loader executable such as SHA-256: 5455341ed1bbe75a664fca2dd0794c508e1874f75360253a7ff5bc119bc92d80. The loader was observed downloading and installing Vidar stealer and potentially additional malware.

Lastly, Microsoft observed that the DeepSeek-themed payloads share infrastructure with a much larger rotating fake-AI / fake-tool ecosystem. The same shared loader hash (SHA-256 5455341…) appeared under file names impersonating GPT-5.5, Claude Code, Kimi, Seedance, Gemma, GrokCLI, Manus AI, FraudGPT, and others (see table below). Public research from Trend Micro, Zscaler ThreatLabz, and Huntress describe the same broader ecosystem, with TradeAI.exe, OpenClaw_x64.7z, WormGPT_x64.7z, and DeepSeekAI_agent_x64.7z appearing as sibling lures and the downstream payload set documented as Vidar plus GhostSocks.

Mitigation and protection guidance

To defend against social engineering campaigns that leverage AI brands as lures, Microsoft recommends the following mitigation measures:

• Configure automatic attack disruption in Microsoft Defender XDR. Automatic attack disruption is designed to contain attacks in progress, limit the impact on an organization’s assets, and provide more time for security teams to remediate the attack fully.
• Enforce multifactor authentication (MFA) on all accounts, remove users excluded from MFA, and strictly require MFA from all devices in all locations at all times.
• Use the Microsoft Authenticator app for passkeys and MFA, and complement MFA with conditional access policies, where sign-in requests are evaluated using additional identity-driven signals.
• Conditional access policies can also be scoped to strengthen privileged accounts with phishing resistant MFA.
• Enable Zero-hour auto purge (ZAP) in Office 365 to quarantine sent mail in response to newly acquired threat intelligence and retroactively neutralize malicious phishing, spam, or malware messages that have already been delivered to mailboxes.
• Configure Microsoft Defender for Office 365 Safe Links to recheck links on click. Safe Links provides URL scanning and rewriting of inbound email messages in mail flow and time-of-click verification of URLs and links in email messages, other Microsoft Office applications such as Teams, and other locations such as SharePoint Online. Safe Links scanning occurs in addition to the regular anti-spam and anti-malware protection in inbound email messages in Microsoft Exchange Online Protection (EOP). Safe Links scanning can help protect your organization from malicious links that are used in phishing and other attacks.
• Invest in advanced anti-phishing solutions that monitor and scan incoming emails and visited websites. For example, organizations can leverage web browsers like Microsoft Edge that automatically identify and block malicious websites, including those used in this phishing campaign, and solutions that detect and block malicious emails, links, and files.
• Encourage users to use Microsoft Edge and other web browsers that support Microsoft Defender SmartScreen, which identifies and blocks malicious websites, including phishing sites, scam sites, and sites that host malware.
• Enable network protection to prevent applications or users from accessing malicious domains and other malicious content on the internet.

Microsoft Defender detections

Microsoft Defender customers can refer to the list of applicable detections below. Microsoft Defender coordinates detection, prevention, investigation, and response across endpoints, identities, email, apps to provide integrated protection against attacks like the threat discussed in this blog.

Microsoft Security Copilot

Microsoft Security Copilot is embedded in Microsoft Defender and provides security teams with AI-powered capabilities to summarize incidents, analyze files and scripts, summarize identities, use guided responses, and generate device summaries, hunting queries, and incident reports.

Customers can also deploy AI agents, including the following Microsoft Security Copilot agents, to perform security tasks efficiently:

• Threat Intelligence Briefing agent
• Phishing Triage agent
• Threat Hunting agent
• Dynamic Threat Detection agent

Security Copilot is also available as a standalone experience where customers can perform specific security-related tasks, such as incident investigation, user analysis, and vulnerability impact assessment. In addition, Security Copilot offers developer scenarios that allow customers to build, test, publish, and integrate AI agents and plugins to meet unique security needs.

Threat intelligence reports

Microsoft Defender XDR customers can use the following threat analytics reports in the Defender portal (requires license for at least one Defender XDR product) to get the most up-to-date information about the threat actor, malicious activity, and techniques discussed in this blog. These reports provide the intelligence, protection information, and recommended actions to prevent, mitigate, or respond to associated threats found in customer environments.

• Threat overview profile: Evolving phishing threats

Microsoft Security Copilot customers can also use the Microsoft Security Copilot integration in Microsoft Defender Threat Intelligence, either in the Security Copilot standalone portal or in the embedded experience in the Microsoft Defender portal to get more information about this threat actor.

Indicators of compromise

Learn more

For the latest security research from the Microsoft Threat Intelligence community, check out the Microsoft Threat Intelligence Blog.

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To hear stories and insights from the Microsoft Threat Intelligence community about the ever-evolving threat landscape, listen to the Microsoft Threat Intelligence podcast.

The post AI brands as bait: How threat actors are using the AI hype in social engineering appeared first on Microsoft Security Blog.

Today, developers and security teams are caught in growing tension. AI is accelerating development and introducing new issues around insecure code, opaque models, data exposure, and compliance. Add the challenges of shadow AI and tool sprawl and the result is a widening gap between innovation and control. As developers move faster, security teams struggle to keep up with visibility, governance, and oversight. The resulting friction across the development lifecycle is forcing a tradeoff between speed and safety that doesn’t need to exist. Security needs to move upstream to become part of how developers actually work: built into their day-to-day tools and connected to the tools security teams use.

At Microsoft Build 2026, we are announcing new security tools and capabilities to give developers clear guidance in real time, scale with the complexity of tasks, and provide security teams with a consistent view across the full lifecycle so innovation can move fast and securely without the business losing control. Learn more about our solutions to help secure your code, secure your agents, and secure your models.

Secure your code

Today’s headlines reflect the tension around the power of AI models and the potential threat they pose when used to find and exploit vulnerabilities. It is forcing a shift as security teams look for solutions to help them safely harness the power of these models. At the same time, developers want to use these same models to efficiently identify real, exploitable risk and remediate it within their flow of work. That’s why we developed the Microsoft Security multi-model agentic scanning harness (codename MDASH) and added native integration between Microsoft Defender and GitHub Code Security (part of the former GitHub Advanced Security suite) to help both security and developer teams identify and close gaps early.

Discover and validate exploitable vulnerabilities with codename MDASH

The new Microsoft Security multi-model agentic scanning harness (codename MDASH) is available in an expanded preview for eligible organizations and now includes integration with Microsoft Defender. This new agentic security system orchestrates a pipeline of more than 100 specialized AI agents using an ensemble of models to discover, validate, and prove exploitability across codebases written in popular programming languages.

This approach is unique in the industry. Our multi-model agentic scanning harness uses a configurable panel of models, ranging from state-of-the-art (SOTA) models as the heavy reasoners, to more cost-effective models for high-volume operations. This allows us to trade speed, recall, and cost, and minimize dependency on any specific model.

The combination of multiple models, hundreds of agents, and over 100 trillion signals a day helps identify real risk over theoretical noise, to help teams focus on what can be exploited. The strategic implication is clear: AI vulnerability discovery has crossed from research curiosity into production-grade defense at enterprise scale, and the durable advantage lies in the agentic system around the model rather than any single model itself. MDASH recently jumped roughly 10% in less than three weeks to a new CyberGym industry benchmark score of 96.55%.

“At Accenture, we’re always looking toward the next frontier in protecting our clients and our enterprise. What Microsoft is building with MDASH reflects a meaningful shift from reactive, rule-based scanning to agentic systems that can reason across complex codebases like a skilled security researcher,” says Kris Burkhardt, Chief Information Security Officer at Accenture. Accenture is one of a select group of Security partners and Microsoft Intelligent Security Association (MISA) members that are engaged in the preview to shape MDASH and accelerate agentic AI vulnerability discovery.

Our partner engagements reflect a shared focus on moving from reactive detection to proactive identification of exploitable risk. “We’re seeing cyber threats evolve rapidly, with AI accelerating both the scale and sophistication of attacks. Microsoft’s investment in MDASH reflects a strong commitment to helping organizations stay ahead of this curve. Based on our early discussions and exposure to the innovation, we see strong potential for MDASH to simplify and strengthen SecOps, helping organizations operate with greater resilience and confidence,” says Morgan Adamski, Principal and Deputy Platform Leader of Cyber, Data, and Tech Risk at PwC US.

Together, we are partnering across the industry to use leading models paired with our platforms and expertise to deliver protection at scale. “We’re excited to work with Microsoft on MDASH because it addresses one of the most pressing challenges our customers face: reducing the time between discovering a vulnerability and taking meaningful action. Microsoft’s role as a trusted security vendor matters here—customers need innovation, but they also need confidence, governance, and a partner they can rely on. Our early experience with MDASH has been encouraging, and we see real opportunity for it to help organizations modernize how they approach vulnerability discovery and remediation,” says Jason Rader, Insight CISO.  

Reach out to your Microsoft account representative for more information on the expanded preview of codename MDASH.

Prioritize and remediate code vulnerabilities with Microsoft Defender and GitHub Code Security

While codename MDASH identifies and validates what’s truly exploitable, the integration between Microsoft Defender and GitHub Code Security (part of the former GitHub Advanced Security suite), now generally available, brings runtime context into development and security workflows so that teams can prioritize and address risks early minimizing the impact to human resources. Vulnerabilities discovered in code are automatically enriched with real production signals, such as internet exposure and data sensitivity to inform prioritization. Developers can then remediate issues using AI-assisted fixes that are generated, assigned, and validated through GitHub Copilot Autofix and the GitHub Copilot cloud agent.

To support responsible, coordinated disclosure of findings that represent both real and potential vulnerabilities, role-based access controls ensure that only authorized individuals can view and act on them. Together, the production signal enrichment, AI-assisted remediation, and secure handling of findings within a single workflow help security and developer teams focus on real risk and enable teams to act quickly.

Secure your agents

Agents are quickly becoming a new layer of the application stack. As developers build agents and move them into production, they need the tools to ship fast without sacrificing security, including built-in identity, governance, and safety testing. Security teams have overlapping needs: visibility into what’s running, control over what agents can access, and consistent governance across clouds and endpoints. Microsoft is delivering new solutions to help.

Build secure agents from day one

At Build 2026, Microsoft is introducing new capabilities to help developers build secure, enterprise-ready agents by default. With the general availability of the Agent 365 SDK, developers can integrate controls directly into their development workflows, bringing observability, access controls, and compliance enforcement into how agents are designed and deployed. This enables teams to build custom agents for any AI platform that are compliant, and enterprise-ready, and compose well with Agent 365.

Security extends beyond development and into how agents run. On Windows, the Microsoft Execution Container (MXC) SDK provides OS-level control over agent execution, giving developers and IT teams the ability to define containment and policy, applied by the OS through isolation technologies such as process and session isolation. Windows 365 for Agents, now generally available, enables you to run any agent in a fully isolated, policy-governed Cloud PC. Native Windows integration with Agent 365 provides a common foundation for observability, security, and governance, including built-in Intune capabilities to set policies that govern agent runtime execution and control how agents operate.

These new capabilities are now in early preview.

Observe, govern, and secure agents at scale with Agent 365—now including local agents

As agents proliferate across environments, gaining visibility and control over them becomes critical. Agent 365 introduces new capabilities to manage agent sprawl and risk, including an Agent 365 Agent Registry that surfaces unmanaged local agents discovered by Microsoft Defender, Microsoft Entra, and Microsoft Intune—all working together. The registry supports more than 20 types of local agents, including coding agents, AI desktop applications, and both local and remote Model Context Protocol (MCP) servers. From there, Intune policies can be used to block common execution methods for OpenClaw agents.

Security teams also need the ability to defend against emerging threats without slowing developer productivity. Microsoft Defender, Entra, and Intune work together to provide the visibility, runtime protections, and context needed to manage agent risk without slowing developer productivity. Defender enables analysts to investigate agent activity using advanced hunting and provides an exposure graph that helps teams understand how agents are connected across the network. Preview of these capabilities coming soon.

Protecting data is foundational to securing agents at scale. Microsoft Purview controls to prevent data exfiltration, Data Security Posture Management risk discovery, and agentic risk detection for coding agents Claude Code, GitHub Copilot, OpenAI Codex, and OpenClaw. This enables visibility on how local agents access sensitive data, runtime protections for risky prompts, and insights into unsafe agent behaviors. Microsoft Purview Audit also logs all agent activity for full traceability. Preview of these capabilities coming soon.

Trust agents with your data

Developers also need direct, real-time insight into data security posture and risk signals associated with the agents they build. With Purview data risk signals embedded in the Foundry Control Plane, generally available, these signals provide guidance to developers on where to enforce protections before sensitive data is exposed. For example, Purview flags in real time when an agent surfaces sensitive financial data during testing and guides developers to mask or restrict access before deployment.

To further reduce risk, Purview introduces runtime data loss prevention (DLP) for agent prompts in Foundry, in preview with Agent 365. This capability detects, blocks, and audits sensitive data before it is processed by the agent, ensuring that sensitive information never reaches AI models.

Secure your models

Before AI reaches production, teams need to verify that the models they depend on are safe. Now developers can inspect model artifacts, whether platform-native or bring-your-own, with Defender AI model scanning, in preview. To help close gaps early model Defender AI model scanning detects and blocks potentially vulnerable or compromised models across registries, workspaces, and CI/CD pipelines to verify model integrity before deployment.

Trust starts with security

There should never be a choice between innovation and safety.

The capabilities announced today span the full development lifecycle: discovering what’s exploitable, governing what’s running, protecting the data AI depends on, and verifying that agents behave as intended before they reach production. Microsoft security is embedded directly into the platforms and workflows developers already use, supporting innovation across Microsoft Foundry, Copilot Studio, GitHub, and open-source frameworks, and bringing discovery and governance to shadow AI.

But real progress in AI depends on more than breakthrough capabilities—it depends on whether organizations can trust the systems they are building and deploying. That is the common thread across the innovations announced at Build 2026 and the principle guiding our approach. Because the future of AI will belong not just to those who move fastest, but to those who can innovate with trust.

To learn more about Microsoft Security solutions, visit our website. Bookmark the Security blog to keep up with our expert coverage on security matters. Also, follow us on LinkedIn (Microsoft Security) and X (@MSFTSecurity) for the latest news and updates on cybersecurity. To learn more about how security is built into the Windows platform, explore the Windows Security book and Windows Server Security book.

The post Microsoft Build 2026: Securing code, agents, and models across the development lifecycle appeared first on Microsoft Security Blog.

But most organizations are still operating across disparate systems. Identity signals are captured in one place, access policies enforced in another, and response workflows managed separately. That fragmentation slows decision-making, increases operational complexity, and creates gaps cyberattackers can exploit.

Customers are looking for an identity platform that meets their evolving needs. We’re pleased to share that Microsoft has been recognized as a Leader in The Forrester Wave™: Workforce Identity Security Platforms, Q2 2026, receiving the highest scores in both the current offering and strategy categories. We believe this recognition demonstrates the value that the Microsoft Entra product portfolio brings to our customers, which we are always striving to improve. This report also reflects a broader shift in the market. Identity is no longer just a checkpoint in the access flow. It has become the primary way organizations manage risk across environments.

Forrester’s research highlights the need for strong identity foundations, actionable intelligence, and support for emerging AI-powered scenarios. As identity surfaces expand and cyberthreats grow more dynamic, organizations need a model that connects signals, enforces policy consistently, and drives response in real time. Without that continuity, security remains reactive and incomplete.

This is especially important as identity continues to be one of the most targeted attack surfaces, with credential-based attacks still dominating. Securing access requires more than stronger authentication. It requires bringing identity, access, and response into a unified system.

Why this recognition matters now

As AI expands the number of identities and accelerates the pace of change, organizations need approaches that simplify how identity is managed while strengthening how risk is controlled. That means moving beyond disconnected tools toward systems that are integrated by design.

The priorities highlighted by Forrester in their report reflect this reality. They also align with Microsoft’s focus on delivering a comprehensive strategy based on Zero Trust principles, using AI in the flow of work, and extending identity and access controls to AI agents. Forrester noted Microsoft strengths in identity threat detection and response (ITDR), access control, phishing-resistant authentication, and identity verification. These capabilities are essential for organizations to stay ahead of evolving cyberthreats and improve their identity security posture continuously. Microsoft is focused on helping customers reap the benefits of a unified system that extends governance, visibility, and control across all identities.

AI is accelerating identity complexity

AI is reshaping the identity landscape. It is increasing both the number of identities and the speed at which they operate.

In addition to human users, organizations now need to manage AI agents and other non-human identities. These identities require authentication, authorization, lifecycle management, and governance. They operate at machine speed and interact with systems in ways traditional identity models were not designed to handle. At this scale, static policies and disconnected systems fall short. Organizations need continuous enforcement driven by real-time signals.

Treating AI-powered identities as core participants in an identity strategy enables organizations to extend governance, visibility, and control as their environments evolve. This is not an incremental change. It is a structural shift in how identity must be managed.

Evolving your identity and access approach

Identity and access should be an integrated system rather than a collection of tools, for human and non-human identities. An Access Fabric brings together identity signals, access policies, and security workflows into a continuous loop. Signals inform decisions. Decisions trigger enforcement. Enforcement drives response.

This model enables organizations to move beyond static, point-in-time checks to continuous, context-aware access decisions across environments.

With Microsoft Entra, organizations can apply consistent access policies to any identity across Microsoft cloud, on-premises, and third-party applications, helping reduce fragmentation while improving visibility and control.

By bringing signals, policy enforcement, and response together, Microsoft Entra helps organizations move from reactive identity management to continuous risk evaluation and control.

Learn more

Learn more about Microsoft Entra solutions. Bookmark the Microsoft Entra blog to keep up with our expert coverage on workforce identity matters.

To learn more about Microsoft Security solutions, visit our website. Bookmark the Security blog to keep up with our expert coverage on security matters. Also, follow us on LinkedIn (Microsoft Security) and X (@MSFTSecurity) for the latest news and updates on cybersecurity.

Forrester does not endorse any company, product, brand, or service included in its research publications and does not advise any person to select the products or services of any company or brand based on the ratings included in such publications. Information is based on the best available resources. Opinions reflect judgment at the time and are subject to change. This report is part of a broader collection of Forrester resources, including interactive models, frameworks, tools, data, and access to analyst guidance. For more information, read about Forrester’s objectivity here . 

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Microsoft Purview visibility now extends to Anthropic’s Claude

Security and compliance teams can now detect and investigate Claude usage alongside other cloud applications in their broader AI ecosystem. The new Claude Compliance API for Microsoft Purview delivers centralized visibility and oversight for Claude Enterprise activity enabling Microsoft Purview to provide insights on Claude interactions and audit log signals. This integration will provide visibility across Claude Enterprise, extending the Microsoft Purview experience and helping your teams protect sensitive data across your AI estate.  

New data security posture management experience in Microsoft Purview

The new Microsoft Purview Data Security Posture Management (DSPM) experience is now generally available. This solution unifies and streamlines DSPM across scenarios, from discovery to protection, all the way to remediation, allowing teams to investigate risks and take actions on the same workflow. The new experience delivers goal-oriented flows, deeper remediation, expanded reporting, and third-party visibility. Your teams can efficiently discover sensitive data, assess risk, and take action at scale.

Microsoft Purview Data Security Investigations extends investigative depth with custom examinations

Microsoft Purview Data Security Investigations now includes optical character recognition (OCR) and custom examination capabilities to extend investigative depth. OCR extracts text from images, bringing previously inaccessible visual content into scope for AI-powered deep content analysis. In addition to existing examination types that identify credentials, risk, and personally identifiable data, and help inform mitigation, investigators can define their own analysis with custom examination, enabling more tailored and flexible investigations based on their unique needs. 

Microsoft Entra ID Account recovery securely restores account access

Microsoft Entra ID Account recovery is an advanced authentication recovery mechanism that enables users to regain access to their organizational accounts when they’ve lost access to all registered authentication methods. Unlike traditional password reset capabilities, Account recovery focuses on identity verification and trust re-establishment prior to replacement of authentication methods rather than simple credential recovery.

Windows 365 for Agents delivers a secure AI agent execution environment

Windows 365 for Agents, now expanding in public preview, and Microsoft Agent 365 work together to provide a consistent, secure environment to run and govern agents. Agent 365 determines the work an agent is authorized to do, using shared organizational policies and identity to govern agent behavior and access. Windows 365 for Agents defines where an agent executes the work, providing Cloud PCs that enable agents to operate their own desktops and applications within a fully managed and auditable environment. Read our blog for more details.

Stay In the Loop

Microsoft Security continually ships meaningful innovations across our portfolio and research-driven insights and reports for the security community. In the Loop posts are your reliable source of what’s new across Microsoft Security and what it means for your security strategy. Check back for the next drop and connect with us at Microsoft Build, June 2-3, 2026, in San Francisco, to hear directly from Microsoft Security experts and learn more about today’s releases.

To learn more about Microsoft Security solutions, visit our website. Bookmark the Security blog to keep up with our expert coverage on security matters. Also, follow us on LinkedIn (Microsoft Security) and X (@MSFTSecurity) for the latest news and updates on cybersecurity.

The post What’s new in Microsoft Security: May 2026 appeared first on Microsoft Security Blog.

There are more than 500 million monthly active players¹ across Xbox consoles, PC, handheld, and more through Xbox cloud gaming. They’re the folks who come to mind when people refer to “gaming culture.” But they’re not really the whole story. Globally, more than 3 billion people engage with gaming.² The majority of these people are gamers, but the number also includes developers working for independent gaming studios, engineers supporting the Xbox platform, and the security and operations professionals that support them all.

In my role as Deputy CISO for Gaming at Microsoft, it’s this much larger, much more complex community that I have to take into account. My team and I aren’t tasked solely with protecting consoles or player accounts. We’re safeguarding intellectual property (IP), live operations, and the trust of billions of interactions. We’re also partnering on risks that range from cheating and monetization exploits to supply chain vulnerabilities and regulatory compliance for child safety and privacy.

Gaming isn’t really a single culture, but rather a culture of cultures—each with their own risk factors to account for. At the heart of gaming is the player experience—their need for seamless access, low latency, and frictionless, immersive experiences. This goes hand-in-hand with privacy and safety in a world where cyberattackers could target well-known players. But aside from those basic needs, players form their own tribes, and a diverse, global player base requires a different approach—which makes securing gaming unique. You don’t approach it like you might traditional enterprise. Studios operate with creative autonomy, platforms demand global scale and low latency, and players expect frictionless experiences. That diversity makes gaming vibrant while also creating unique security challenges.

Each culture comes with its own security risks

Let’s first take a look at the risks that most often appear with each of the overlapping cultures that make up the world of gaming:

Platforms, underpinning services like Xbox Game Pass and Xbox Cloud Gaming, require centralized infrastructure with high availability. Here, security must integrate seamlessly with identity systems and Microsoft-wide standards without slowing down gameplay. But platforms face a number of distinct risks.

The complexity of platforms makes them a rich target for financially-motivated cyberattackers seeking to take over top accounts—or send targeted messages to individuals in an environment where they aren’t expecting phishing, which can threaten both ecosystem trust and commercial strategy. And because platforms serve as the connective tissue between devices, we have to pay special attention to weaknesses in integration points.

We also contend with fraud and abuse in commerce systems, where bad actors attempt to manipulate in-game economies or exploit payment flows. These persistent cyberthreats require layered defenses, real-time monitoring, and rapid responses.

Game development studios, whether they are AAA giants, indie teams, or sole developers, thrive on flexibility. Their environments are highly individualized and frequently blend proprietary tools with third-party assets and co-development with partners. My job is to make sure they can innovate securely—balancing their creative freedom with governance and compliance timelines. But this flexibility introduces risks that look very different from experienced by centralized platforms.

On the plus side, studios’ independence creates smaller failure domains, leaving them free to make their own choices and experiment with new tools, partners and engineering practices, without putting the broader platform and peer studios at risk. But reputation, regulatory liability, and cyberattacker interest can’t be firewalled off so easily. So, we need to establish a baseline of controls and detect anomalies early, closing down blind spots—despite fragmented development environments and third-party risk from studios that rely on external contractors, middleware providers, and asset marketplaces.

And some of the cyberattacks are the same: Without tight identity governance, credential sprawl can create highly-privileged accounts that become prime targets for threat actors. Studios operate under tight deadlines and with small margins, so we need empathy for their desire to make things easier—and to avoid security checks when under milestone pressure—despite the risk those actions could cause to production.

It’s also important to note that the driving factor for many threat actors targeting studios is the incredibly high value of unreleased IP. For the same reason, social engineering and insider threats are a constant risk for studios.

Studio Central Teams provide shared IT and infrastructure support. They’re the bridge between creative teams and operational security, ensuring that artists, producers, and marketers work in environments that are both productive and resilient. But that role comes with its own set of risks, which are often hidden in the complexity of shared services.

When central teams support diverse projects, maintaining consistent security baselines across cloud resources, build servers, and collaboration tools becomes difficult. Failing to maintain security consistency can lead to configuration drift—where a single misconfigured storage bucket or firewall rule can expose critical assets. But because central teams manage shared infrastructure, they are risk-averse to changes, including some critical security patches, that could cause cascading production failures.

These central teams can be security’s best partners for implementing strong monitoring and segmentation—but also need to be governed to avoid insider risk and toxic combinations of overlapping permissions.

Collaboration over control

Security in gaming isn’t about imposing rules. It’s more about partnership. I work closely with Temi Adabambo, General Manager for Gaming Security, Microsoft, and Eric Mourinho, Chief Architect, Microsoft, to co-develop secure environments and shared tooling. Governance is a dialogue. We collaborate between platform teams, studio IT, security architects, and technical directors in game studios. That’s how we manage exception handling, cross-team dependencies, and the tension between creative speed and security rigor.

One of the advantages of the Microsoft environment is the access it grants us to a security ecosystem that scales globally. In gaming, we build upon that foundation, adapting it for the unique needs of developers, platforms, and players:

• Identity and access management: We use Microsoft Entra ID to secure identities across Xbox Live, Game Pass, and studio environments. Shared identity systems allow frictionless sign-in for players while enforcing strong authentication for developers and partners.
• Compliance and governance: We rely on a combination of tools and processes to manage sensitive data and meet regulatory obligations across environments like public cloud infrastructure and bespoke studio setups. This includes Microsoft Purview for data classification and compliance monitoring, Microsoft Defender for Cloud for policy enforcement and resource hardening, Entra ID for identity governance, and Microsoft Sentinel for audit and reporting. Together, these capabilities help us maintain visibility, enforce standards, and respond quickly to compliance exceptions without slowing down development.
• Threat intelligence and detection: With Microsoft Defender for Cloud, Microsoft Sentinel, and proprietary Microsoft tooling, we gain visibility into cyberthreats across platforms and supply chains. These tools allow us to detect anomalies, respond quickly, and share intelligence across teams without slowing down creative workflows.
• Secure development lifecycles: We embed security into game development through automated code scanning, vulnerability management, and secure build pipelines, helping studios ship faster without sacrificing safety.

These are enterprise-grade capabilities, adapted to the needs of the global gaming culture of cultures. They allow us to protect billions of interactions while enabling the creativity that defines this industry. 

Looking ahead 

Gaming will only grow more complex. But I see that as an opportunity. Security presents challenges, but in facing those challenges head-on, we are constantly refining our practices, products, and player experiences. When we design for resilience, we protect not just games but the communities that help them thrive.

For Microsoft, that means treating gaming security as an ever-evolving system—one that changes with each new iteration of technology, player expectations, and the creative heartbeat of the industry.

Security teams and their families are gamers too. Visit the Xbox Wire and our recent blog post for Safer Internet Day to learn more about how we keep players and communities safe and secure at Xbox.

Microsoft
Deputy CISOs

To hear more from Microsoft Deputy CISOs, check out the OCISO blog series:

To stay on top of important security industry updates, explore resources specifically designed for CISOs, and learn best practices for improving your organization’s security posture, join the Microsoft CISO Digest distribution list.

To learn more about Microsoft Security solutions, visit our website. Bookmark the Security blog to keep up with our expert coverage on security matters. Also, follow us on LinkedIn (Microsoft Security) and X (@MSFTSecurity) for the latest news and updates on cybersecurity.

¹Microsoft FY25 Fourth Quarter Earnings Conference Call  

²Microsoft to acquire Activision Blizzard to bring the joy and community of gaming to everyone, across every device 

The post Securing the gaming culture of cultures appeared first on Microsoft Security Blog.

Passwords remain a major source of risk; they’re difficult to manage and easy to steal. Along with weaker forms of multifactor authentication, they’re also highly vulnerable to phishing: AI-powered campaigns drive click-through rates as high as 54%.¹ In response, Microsoft is expanding passkey adoption across our ecosystem. We’re reducing reliance on legacy authentication and strengthening account recovery so it won’t become a backdoor for cyberattackers.

Passkey adoption continues to grow industry wide

Passkey adoption is accelerating: FIDO Alliance estimates 5 billion passkeys already in use worldwide.² Across Microsoft’s consumer services, including OneDrive, Xbox, and Copilot, hundreds of millions of users sign in with passkeys every day.

There are many reasons to choose passkeys as the standard authentication method over passwords. Sign-in success rates are significantly higher than with passwords, and exposure to credential-based attacks is significantly lower.³ Organizations and individual users alike prefer the simpler, more secure sign-in experience passkeys offer.⁴

Inside Microsoft, we’ve eliminated weaker authentication methods and rolled out phishing-resistant authentication, covering 99.6% of users and devices in our environment.⁵ It’s made signing in a lot simpler: no codes to enter, no extra prompts to manage, just a straightforward experience for everyone.

Product updates across sign-in and recovery

Across Microsoft, we’ve been steadily building passkey support into every layer of the identity experience from consumer accounts to enterprise access with Microsoft Entra, and from device-based authentication like Windows Hello to Microsoft’s password manager. This work ensures people can create and use passkeys wherever they sign in, with a consistent, phishing-resistant experience across devices, apps, and environments.

To make passkeys more accessible, we’re expanding where and how people can use them:

• Synced passkeys and passkey profiles in Microsoft Entra ID make it easier to scale passwordless sign-in across diverse environments. We’re expanding flexibility in cloud passkey management, including support for larger and more complex policies, and transitioning tenants to a unified passkey profile model.
• Entra passkeys on Windows make it simple for users to create and use device-bound passkeys directly on personal or unmanaged Windows devices using Windows Hello, and will be generally available in late May 2026.
• Passkeys for Microsoft Entra External ID will be generally available late May 2026, so your customer-facing applications can offer a more seamless, consumer-grade sign-in experience.
• Passkey-preferred authentication in Microsoft Entra ID (preview) detects registered methods and prompts the strongest one first. If a passkey is registered, that’s what the user sees—immediately. 
• On the consumer side, with Microsoft Password Manager, users can now save and sync passkeys across devices signed in with their Microsoft account, with support for iOS and Android rolling out soon through Microsoft Edge. 

Account recovery also plays a critical role in maintaining the integrity of identity systems. Historically, it’s been vulnerable to cyberattackers who try to hijack the recovery process, for example by impersonating legitimate users and requesting new credentials.

Microsoft Entra ID account recovery, generally available today, strengthens security for recovery flows by enabling users to regain access to their accounts through a robust identity verification process. Users can regain access after losing all authentication methods by using government-issued ID and biometric face checks. At general availability, we are expanding our identity verification ecosystem with two new partners—1Kosmos and CLEAR1—joining our existing partners Au10tix, IDEMIA, and TrueCredential. 

Removing phishable credentials from user accounts

Strengthening authentication is important, but reducing risk means eliminating phishable credentials entirely. Microsoft is continuing to phase out legacy methods and move users toward phishing-resistant authentication. Starting in January 2027, security questions will be removed as a password reset option in Microsoft Entra ID due to their susceptibility to guessing and social engineering.

The rationale is straightforward: improving strong methods while removing weak ones shrinks the attack surface. This is increasingly urgent as AI agents act on behalf of users. If an identity is compromised, cyberattackers can leverage those agents to access systems, execute workflows, and operate within existing permissions. Organizations need to address this risk quickly.

A more secure and usable future

Last year, Microsoft joined dozens of organizations in taking the Passkey Pledge, a commitment to accelerating the adoption of phishing-resistant authentication and to moving beyond passwords. Since then, we’ve seen meaningful progress, from hundreds of millions of better-protected consumer accounts to large-scale deployments across organizations like our own.

What once felt like a long-term shift is finally gaining real momentum: authentication is becoming simpler, safer, and passwordless.

For a more in-depth perspective on how cyberattackers try to bypass authentication through fallback methods and recovery flows—and how to address those gaps—read our companion post.

Getting started

Organizations that want to strengthen their identity security posture can enable passkeys for their users and extend policy protections across both sign-in and recovery scenarios.

Get started with a phishing-resistant passwordless authentication deployment in Microsoft Entra ID.

Individuals can create and use passkeys for their personal accounts for better security and convenience.

To learn more about Microsoft Security solutions, visit our website. Bookmark the Security blog to keep up with our expert coverage on security matters. Also, follow us on LinkedIn (Microsoft Security) and X (@MSFTSecurity) for the latest news and updates on cybersecurity.

¹Microsoft Digital Defense Report 2025.

²FIDO Alliance reports mainstream global usage on World Passkey Day. FIDO Alliance, 2026.

³Synced passkeys and high assurance account recovery, Microsoft Entra blog. December 16, 2025.

⁴FIDO Alliance Champions Widespread Passkey Adoption and a Passwordless Future on World Passkey Day 2025, FIDO News Center. May 1, 2025.

⁵Microsoft Security and Future Initiative (SFI) Progress Report—November 2025.

The post World Passkey Day: Advancing passwordless authentication appeared first on Microsoft Security Blog.