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Emerging Threat Uses Windows Tools to Facilitate Banking Credential Theft


An alarming development that underscores how financial cybercrime is evolving is a Windows-based banking trojan dubbed Coyote. It has been observed for the first time that a malware strain leveraging the Microsoft UI Automation (UIA) framework for stealthy extraction of sensitive user data has emerged. It was developed in 2024 by Kaspersky, and it is specifically targeted at Brazilian users. Through its advanced capabilities, Coyote can log keystrokes, record screenshots, and use deceptive overlays on banking login pages that are designed to fool users into providing their information to the malware. 


A security researcher at Akamai has reported that in the latest variant, the legitimate Microsoft UIA component, which is designed to provide accessibility to desktop UI elements for those with disabilities, is exploited to retrieve credentials from websites linked to 75 financial institutions and cryptocurrency platforms via a phishing attack. A novel abuse of an accessibility tool demonstrates that threat actors are becoming increasingly sophisticated in their attempts to circumvent traditional security measures and compromise digital financial ecosystems. 

The Coyote virus first appeared in Latin American cybersecurity in February 2024 and has since been a persistent and damaging threat across the region. Coyote, a banking trojan, was originally used to steal financial information from unsuspecting users by using traditional methods, such as keylogging and phishing overlays. 

Despite being classified as a banking trojan, its distribution mechanism is based on the popular Squirrel installer, a feature which is also the inspiration for its name, a reference to the coyote-squirrel relationship, which is a predator-prey relationship. It was not long ago that Coyote began targeting Brazilian businesses, with the intent of deploying an information-stealing Remote Access Trojan (RAT) in their networks in an effort to steal information. 

After the malware was discovered, cybersecurity researchers began to discover critical insight into its behaviour as soon as it became apparent. The Fortinet company released a comprehensive technical report in January 2025 that detailed Coyote's attack chain, including the methods used to propagate the attack and the techniques used to infiltrate the system. In the evolution of Coyote from conventional credential theft to sophisticated abuse of legitimate accessibility frameworks, one can see a common theme in modern malware development—a trend in which native system utilities are retooled to facilitate covert surveillance and data theft. 

Through innovation and stealth, Coyote is proving to be an excellent example of how regionally focused threats can rapidly escalate into globally significant risks through the use of innovation and stealth. The Coyote malware has evolved significantly in its attack methodology since its previous appearance in 2015, which has prompted cybersecurity professionals to have new concerns. 

Since December 2024, Akamai researchers have been following Coyote closely, and they have found out that earlier versions of the malware have mainly relied on keylogging and phishing overlays to steal login credentials from users of 75 targeted banking and cryptocurrency websites. However, users had to access financial applications outside of traditional web browsers in order for these methods to work, meaning that browser-based sessions largely remained safe. 

In contrast, Coyote's newest version, which was released earlier this year, demonstrates a markedly higher level of sophistication. Using Microsoft's UI Automation framework (UIA), Coyote can now detect and analyse banking and crypto exchange websites that are open directly within browsers by utilising its Microsoft UI Automation framework. As a result of this enhancement, malware is now able to identify financial activity more accurately and extract sensitive information even from less vulnerable sessions, significantly increasing the scope and impact of the malware. 

With stealth and precision, the Coyote malware activates on a victim's computer as soon as the program they are infected with—typically through the widely used Squirrel installer—is executed on their system. As soon as the malware has been installed, it runs silently in the background, gathering fundamental system details as well as continuously monitoring all active programs and windows. One of the primary objectives of this malware is to detect interactions with cryptocurrency platforms or banking services.

If Coyote detects such activity, it utilises the UI Automation framework (UIA) to programmatically read the content displayed on the screen, bypassing traditional input-based detection mechanisms. Furthermore, the malware is capable of extracting web addresses directly from browser tabs or the address bar, cross-referenced to a predefined list of financial institutions and crypto exchanges that are targeted. This further elevates the malware's threat profile. 

Upon finding a match, the tool initiates a credential harvesting operation that is aimed at capturing credentials such as login information and wallet information. As of right now, Coyote appears to have a geographic focus on Brazilian users, targeting companies like Banco do Brasil, Santander, as well as global platforms like Binance, as well. 

Although it is unlikely that this regional concentration will remain static for long, threat actors often launch malware campaigns in limited geographies for the purpose of testing them out before attempting to spread their campaign to a broader audience. Among the latest versions of Coyote malware, there is an impressive combination of technical refinement and operational stealth that sets it apart from typical financial Trojans in terms of performance.

It is particularly noteworthy that it utilises Microsoft's UI Automation framework to look directly at application window content to be able to steal sensitive information without having to rely on visible URLs or browser titles. There are no longer any traditional techniques for this variant that rely on keylogging or phishing overlays, but rather rely on UI-level reconnaissance that allows it to identify and engage with targeted Brazilian cryptocurrency and banking platforms with remarkable subtlety. Further increasing its evasiveness is its ability to operate offline. 

By doing so, it can gather and scan data without requiring a connection to the command-and-control (C2) server. In order to initiate an attack sequence, the malware first profiles the infected system, obtaining information such as the name of the device, the operating system version, and the credentials of the user. As a result, Coyote scans the titles of active windows in an attempt to find financial platforms that are well-known. 

If no direct match is found, Coyote escalates its efforts by parsing the visual user interface elements via the UIA interface, resulting in critical data such as URLs and tab labels that are crucial for the application. As soon as the application detects a target, it uses an array of credential harvesting techniques, which include token interception and direct access to usernames and passwords.

Although the current campaign remains focused in Brazil, the fact that Coyote can operate undetected at the user interface layer and that it uses native Windows APIs poses a serious and scalable threat to businesses across the globe. Considering its offline functionality, small network footprint, and ability to evade standard security solutions, it is a potent reminder that legitimate system tools can be repurposed to quietly undermine digital defences complex cybersecurity landscape that is getting ever more complex. 

Cybersecurity is rapidly evolving, and it is becoming increasingly apparent to us that the dynamic between threat actors and defenders has become more of a high-stakes game, where innovation can change the balance quite rapidly between the two sides. A case study such as the Coyote malware underscores the fact that even system components which appear harmless, such as Microsoft's UI Automation (UIA) framework, can be exploited to achieve malicious objectives. 

Although UIA was created to enhance accessibility and usability, the abuse of the tool by advanced malware proves the inherent risks associated with native tools that are trusted. The objective of security researchers is to give defenders a better understanding of the inner workings and methods employed by Coyote, so they can detect, mitigate, and respond more effectively to such stealthy intrusions. 

It is important to note that the exploitation of UIA as an attack vector is not simply a tactic that is used for a single attack-it signals a shift in adversarial strategy that emphasises invisibility and manipulation of systems. Organisations must strengthen their security posture by observing how legitimate technologies may be repurposed as a means to commit cybercrime, as well as staying vigilant against threats that blur the line between utility and vulnerability. 

There is no question that the advent of Coyote malware marked a turning point in the evolution of cyber threats. It underscores the growing abuse of legitimate system tools for malicious purposes as well. Using Microsoft's UI Automation framework (UIA), an accessibility feature which was created to support users with disabilities, Coyote illustrates to us that trusted functionality could be repurposed to steal information from systems by silently infiltrating them. 

The malware operations of this company, which are currently focused on Brazilian financial institutions and crypto exchanges, represent the emerging trend toward stealth-driven malware campaigns that target specific regions of the globe. A call to action has been issued to defenders by this evolution, as traditional security tools that are based on network-based detection or signature matching may not be up to the task of combating threats that operate entirely within the user interface layer and do not require the use of command-and-control communications. 

Consequently, organisations have to develop more nuanced strategies to keep their data secure, such as behavioural monitoring, heuristic analysis, and visibility of native API usage. As a further precaution, maintaining strict controls over software distribution methods, such as Squirrel installers, is also a great way to prevent the spread of early-stage infections. By adopting a silent, system-native approach, Coyote reflects a change in the cyber threat landscape, shifting away from overt, disruptive attacks to covert, credential-stealing surveillance. 

Coyote utilizes low-noise approaches to achieve maximum data exfiltration, often as part of long-term campaigns, in order to evade detection, resulting in maximum data exfiltration. This demonstrates the sophistication of modern malware and the urgent need for adaptive cybersecurity frameworks to cope with these threats. In addition to exploiting UIA, it is also likely that it will result in more widespread abuse of accessibility features that have traditionally been overlooked in security planning, and which may eventually become a major security concern.

As threat actors continue to refine their approaches, companies need to be vigilant, rethink what constitutes potential attack surfaces, and take measures to detect threats as soon as possible. Coyote is an example of malware that requires a combination of stronger tools, as well as a deeper understanding of the way even helpful technology can be turned into a security liability quickly if it is misused.

New Coyote Malware Variant Exploits Windows Accessibility Tool for Data Theft

 




A recently observed version of the banking malware known as Coyote has begun using a lesser-known Windows feature, originally designed to help users with disabilities, to gather sensitive information from infected systems. This marks the first confirmed use of Microsoft’s UI Automation (UIA) framework by malware for this purpose in real-world attacks.

The UI Automation framework is part of Windows’ accessibility system. It allows assistive tools, such as screen readers, to interact with software by analyzing and controlling user interface (UI) elements, like buttons, text boxes, and navigation bars. Unfortunately, this same capability is now being turned into a tool for cybercrime.


What is the malware doing?

According to recent findings from cybersecurity researchers, this new Coyote variant targets online banking and cryptocurrency exchange platforms by monitoring user activity on the infected device. When a person accesses a banking or crypto website through a browser, the malware scans the visible elements of the application’s interface using UIA. It checks things like the tab names and address bar to figure out which website is open.

If the malware recognizes a target website based on a preset list of 75 financial services, it continues tracking activity. This list includes major banks and crypto platforms, with a focus on Brazilian users.

If the browser window title doesn’t give away the website, the malware digs deeper. It uses UIA to scan through nested elements in the browser, such as open tabs or address bars, to extract URLs. These URLs are then compared to its list of targets. While current evidence shows this technique is being used mainly for tracking, researchers have also demonstrated that it could be used to steal login credentials in the future.


Why is this alarming?

This form of cyberattack bypasses many traditional security tools like antivirus programs or endpoint detection systems, making it harder to detect. The concern grows when you consider that accessibility tools are supposed to help people with disabilities not become a pathway for cybercriminals.

The potential abuse of accessibility features is not limited to Windows. On Android, similar tactics have long been used by malicious apps, prompting developers to build stricter safeguards. Experts believe it may now be time for Microsoft to take similar steps to limit misuse of its accessibility systems.

While no official comment has been made regarding new protections, the discovery highlights how tools built for good can be misused if not properly secured. For now, the best defense remains being careful, both from users and from developers of operating systems and applications.



Ditch Passwords, Use Passkeys to Secure Your Account

Ditch Passwords, Use Passkeys to Secure Your Account

Ditch passwords, use passkeys

Microsoft and Google users, in particular, have been warned about ditching passwords for passkeys. Passwords are easy to steal and can unlock your digital life. Microsoft has been at the forefront, confirming it will delete passwords for more than a billion users. Google, too, has warned that most of its users will have to add passkeys to their accounts. 

What are passkeys?

Instead of a username and password, passkeys use our device security to log into our account. This means that there is no password to hack and no two-factor authentication codes to bypass, making it phishing-resistant.

At the same time, the Okta team warned that it found threat actors exploiting v0, an advanced GenAI tool made by Vercelopens, to create phishing websites that mimic real sign-in webpages

Okta warns users to not use passwords

A video shows how this works, raising concerns about users still using passwords to sign into their accounts, even when backed by multi-factor authentication, and “especially if that 2FA is nothing better than SMS, which is now little better than nothing at all,” according to Forbes. 

According to Okta, “This signals a new evolution in the weaponization of GenAI by threat actors who have demonstrated an ability to generate a functional phishing site from simple text prompts. The technology is being used to build replicas of the legitimate sign-in pages of multiple brands, including an Okta customer.”

Why are passwords not safe?

It is shocking how easy a login webpage can be mimicked. Users should not be surprised that today’s cyber criminals are exploiting and weaponizing GenAI features to advance and streamline their phishing attacks. AI in the wrong hands can have massive repercussions for the cybersecurity industry.

According to Forbes, “Gone are the days of clumsy imagery and texts and fake sign-in pages that can be detected in an instant. These latest attacks need a technical solution.”

Users are advised to add passkeys to their accounts if available and stop using passwords when signing in to their accounts. Users should also ensure that if they use passwords, they should be long and unique, and not backed up by SMS 2-factor authentication. 

Microsoft Defender for Office 365 Will Now Block Email Bombing Attacks



Microsoft Defender for Office 365 Will Now Block Email Bombing Attacks

Microsoft Defender for Office 365, a cloud-based email safety suite, will automatically detect and stop email-bombing attacks, the company said.  Previously known as Office 365 Advanced Threat Protection (Office 365 ATP), Defender for Office 365 safeguards businesses operating in high-risk sectors and dealing with advanced threat actors from harmful threats originating from emails, collaboration tools, and links. 

"We're introducing a new detection capability in Microsoft Defender for Office 365 to help protect your organization from a growing threat known as email bombing," Redmond said in a Microsoft 365 message center update. These attacks flood mailboxes with emails to hide important messages and crash systems. The latest ‘Mail Bombing’ identification will spot and block such attempts, increasing visibility for real threats. 

About the new feature

The latest feature was rolled out in June 2025, toggled as default, and would not require manual configuration. Mail Bombing will automatically send all suspicious texts to the Junk folder. It is now available for security analysts and admins in Threat Explorer, Advanced Hunting, the Email entity page, the Email summary panel, and the Email entity page. 

About email bombing attacks

In mail bombing campaigns, the attackers spam their victims’ emails with high volumes of messages. This is done by subscribing users to junk newsletters and using specific cybercrime services that can send thousands or tens of thousands of messages within minutes. The goal is to crash email security systems as a part of social engineering attacks, enabling ransomware attacks and malware to extract sensitive data from victims. These attacks have been spotted for over a year, and used by ransomware gangs. 

Mode of operation

BlackBast gang first used email bombing to spam their victims’ mailboxes. The attackers would later follow up and pretend to be IT support teams to lure victims into allowing remote access to their devices via AnyDesk or the default Windows Quick Assist tool. 

After gaining access, threat actors install malicious tools and malware that help them travel laterally through the corporate networks before installing ransomware payloads.

Microsoft Entra ID Faces Surge in Coordinated Credential-Based Attacks

An extensive account takeover (ATO) campaign targeting Microsoft Entra ID has been identified by cybersecurity experts, exploiting a powerful open-source penetration testing framework known as TeamFiltration. 

First detected in December 2024, the campaign has accelerated rapidly, compromising more than 80,000 user accounts across many cloud environments over the past several years. It is a sophisticated and stealthy attack operation aimed at breaching enterprise cloud infrastructure that has been identified by the threat intelligence firm Proofpoint with the codename UNK_SneakyStrike, a sophisticated and stealthy attack operation. 

UNK_SneakyStrike stands out due to its distinctive operational pattern, which tends to unfold in waves of activity throughout a single cloud environment often targeting a broad spectrum of users. The attacks usually follow a period of silent periods lasting between four and five days following these aggressive bursts of login attempts, a tactic that enables attackers to avoid triggering traditional detection mechanisms while maintaining sustained pressure on organizations' defence systems. 

Several technical indicators indicate that the attackers are using TeamFiltration—a sophisticated, open-source penetration testing framework first introduced at the Def Con security conference in 2022—a framework that is highly sophisticated and open source. As well as its original purpose of offering security testing and red teaming services in enterprises, TeamFiltration is now being used by malicious actors to automate large-scale user enumeration, password spraying, and stealthy data exfiltration, all of which are carried out on a massive scale by malicious actors. 

To simulate real-world account takeover scenarios in Microsoft cloud environments, this tool has been designed to compromise Microsoft Entra ID, also known as Azure Active Directory, in an attempt to compromise these accounts. It is important to know that TeamFiltration's most dangerous feature is its integration with the Microsoft Teams APIs, along with its use of Amazon Web Services (AWS) cloud infrastructure to rotate the source IP addresses dynamically. 

Not only will this strategy allow security teams to evade geofencing and rate-limiting defences, but also make attribution and traffic filtering a significant deal more challenging. Additionally, the framework features advanced functionalities that include the ability to backdoor OneDrive accounts so that attackers can gain prolonged, covert access to compromised systems without triggering immediate alarms, which is the main benefit of this framework. 

A combination of these features makes TeamFiltration a useful tool for long-term intrusion campaigns as it enhances an attacker's ability to keep persistence within targeted networks and to siphon sensitive data for extended periods of time. By analysing a series of distinctive digital fingerprints that were discovered during forensic analysis, Proofpoint was able to pinpoint both the TeamFiltration framework and the threat actor dubbed UNK_SneakyStrike as being responsible for this malicious activity. 

As a result, there were numerous issues with the tool, including a rarely observed user agent string, hardcoded client identifications for OAuth, and a snapshot of the Secureworks FOCI project embedded within its backend architecture that had been around for quite some time. As a result of these technical artefacts, researchers were able to trace the attack's origin and misuse of tools with a high degree of confidence, enabling them to trace the campaign's origin and tool misuse with greater certainty. 

An in-depth investigation of the attack revealed that the attackers were obfuscating and circumventing geo-based blocking mechanisms by using Amazon Web Services (AWS) infrastructure spanning multiple international regions in order to conceal their real location. A particularly stealthy manoeuvre was used by the threat actors when they interacted with the Microsoft Teams API using a "sacrificial" Microsoft Office 365 Business Basic account, which gave them the opportunity to conduct covert account enumeration activities. 

Through this tactic, they were able to verify existing Entra ID accounts without triggering security alerts, thereby silently creating a map of user credentials that were available. As a result of the analysis of network telemetry, the majority of malicious traffic originated in the United States (42%). Additional significant activity was traced to Ireland (11%) and the United Kingdom (8%) as well. As a consequence of the global distribution of attack sources, attribution became even more complex and time-consuming, compromising the ability to respond efficiently. 

A detailed advisory issued by Proofpoint, in response to the campaign, urged organisations, particularly those that rely on Microsoft Entra ID for cloud identity management and remote access-to initiate immediate mitigations or improvements to the system. As part of its recommendations, the TeamFiltration-specific user-agent strings should be flagged by detection rules, and multi-factor authentication (MFA) should be enforced uniformly across all user roles, based on all IP addresses that are listed in the published indicators of compromise (IOCs). 

It is also recommended that organisations comply with OAuth 2.0 security standards and implement granular conditional access policies within Entra ID environments to limit potential exposure to hackers. There has been no official security bulletin issued by Microsoft concerning this specific threat, but internal reports have revealed that multiple instances of unauthorised access involving enterprise accounts have been reported. This incident serves as a reminder of the risks associated with dual-use red-teaming tools such as TeamFiltration, which can pose a serious risk to organisations. 

There is no doubt in my mind that such frameworks are designed to provide legitimate security assessments, however, as they are made available to the general public, they continue to raise concerns as they make it more easy for threat actors to use them to gain an advantage, blurring the line between offensive research and actual attack vectors as threats evolve. 

The attackers during the incident exploited the infrastructure of Amazon Web Services (AWS), but Amazon Web Services (AWS) reiterated its strong commitment to promoting responsible and lawful use of its cloud platform. As stated by Amazon Web Services, in order to use its resources lawfully and legally, all customers are required to adhere to all applicable laws and to adhere to the platform's terms of service. 

A spokesperson for Amazon Web Services explained that the company maintains a clearly defined policy framework that prevents misappropriation of its infrastructure. As soon as a company receives credible reports that indicate a potential violation of these policies, it initiates an internal investigation and takes appropriate action, such as disabling access to content that is deemed to be violating the company's terms. As part of this commitment, Amazon Web Services actively supports and values the global community of security researchers. 

Using the UNK_SneakyStrike codename, the campaign has been classified as a highly orchestrated and large-scale operation that is based on the enumeration of users and password spraying. According to researchers at Proofpoint, these attempts to gain access to cloud computing services usually take place in bursts that are intense and short-lived, resulting in a flood of credentials-based login requests to cloud environments. Then, there is a period of quietness lasting between four and five days after these attacks, which is an intentional way to prevent continuous detection and prolong the life cycle of the campaign while enabling threat actors to remain evasive. 

A key concern with this operation is the precision with which it targets its targets, which makes it particularly concerning. In the opinion of Proofpoint, attackers are trying to gain access to nearly all user accounts within the small cloud tenants, while selectively targeting particular users within the larger enterprise environments. 

TeamFiltration's built-in filtering capabilities, which allow attackers to prioritise the highest value accounts while avoiding detection by excessive probing, are a calculated approach that mirrors the built-in filtering capabilities of TeamFiltration. This situation underscores one of the major challenges the cybersecurity community faces today: tools like TeamFiltration that were designed to help defenders simulate real-world attacks are increasingly being turned against organisations, instead of helping them fight back. 

By weaponizing these tools, threat actors can infiltrate cloud infrastructure, extract sensitive data, establish long-term access, and bypass conventional security controls, while infiltrating it, extracting sensitive data, and establishing long-term control. In this campaign, we are reminded that dual-purpose cybersecurity technologies, though essential for improving organization resilience, can also pose a persistent and evolving threat when misappropriated. 

As the UNK_SneakyStrike campaign demonstrates, the modern threat landscape continues to grow in size and sophistication, which is why it is imperative that cloud security be taken into account in a proactive, intelligence-driven way. Cloud-native organisations must take steps to enhance their threat detection capabilities and go beyond just reactive measures by investing in continuous threat monitoring, behavioural analytics, and threat hunting capabilities tailored to match their environments' needs. 

In the present day, security strategies must adapt to the dynamic nature of cloud infrastructure and the growing threat of identity-based attacks, which means relying on traditional perimeter defences or static access controls will no longer be sufficient. In order to maintain security, enterprise defenders need to routinely audit their identity and access management policies, verify that integrated third-party applications are secure, and review logs for anomalies indicative of low-and-slow intrusion patterns. 

In order to build a resilient ecosystem that can withstand emerging threats, cloud service providers, vendors, and enterprise security teams need to work together in order to create a collaborative ecosystem. As an added note, cybersecurity community members must engage in ongoing discussions about how dual-purpose security tools should be distributed and governed to ensure that innovation intended to strengthen defences is not merely a weapon that compromises them, but rather a means of strengthening those defences. 

The ability to deal with advanced threats requires agility, visibility, and collaboration in order for organisations to remain resilient. There is no doubt that organisations are more vulnerable to attacks than they were in the past, but they can minimise exposure, contain intrusions quickly, and ensure business continuity despite increasingly coordinated, deceptive attack campaigns if they are making use of holistic security hygiene and adopting a zero-trust architecture.

Microsoft's Latest AI Model Outperforms Current Weather Forecasting

 

Microsoft has created an artificial intelligence (AI) model that outperforms current forecasting methods in tracking air quality, weather patterns, and climate-affected tropical storms, according to studies published last week.

The new model, known as Aurora, provided 10-day weather forecasts and forecasted hurricane courses more precisely and quickly than traditional forecasting, and at a lower cost, according to researchers who published their findings in journal Nature. 

"For the first time, an AI system can outperform all operational centers for hurricane forecasting," noted senior author Paris Perdikaris, an associate professor of mechanical engineering at the University of Pennsylvania.

Aurora, trained just on historical data, was able to estimate all hurricanes in 2023 more precisely than operational forecasting centres such as the US National Hurricane Centre. Traditional weather prediction models are based on fundamental physics principles such as mass, momentum, and energy conservation, and therefore demand significant computing power. The study found that Aurora's computing expenses were several hundred times cheaper. 

The trial results come on the heels of the Pangu-meteorological AI model developed and unveiled by Chinese tech giant Huawei in 2023, and might mark a paradigm shift in how the world's leading meteorological agencies predict weather and possibly deadly extreme events caused by global warming. According to its creators, Aurora is the first AI model to regularly surpass seven forecasting centres in predicting the five-day path of deadly storms. 

Aurora's simulation, for example, correctly predicted four days in advance where and when Doksuri, the most expensive typhoon ever recorded in the Pacific, would reach the Philippines. Official forecasts at the time, in 2023, showed it moving north of Taiwan. 

Microsoft's AI model also surpassed the European Centre for Medium-Range Weather Forecasts (ECMWF) model in 92% of 10-day worldwide forecasts, on a scale of about 10 square kilometres (3.86 square miles). The ECMWF, which provides forecasts for 35 European countries, is regarded as the global standard for meteorological accuracy.

In December, Google announced that its GenCast model has exceeded the European center's accuracy in more than 97 percent of the 1,320 climate disasters observed in 2019. Weather authorities are closely monitoring these promising performances—all experimental and based on observed phenomena.

London Startup Allegedly Deceived Microsoft with Fake AI Engineers

 


There have now been serious allegations of fraud against London-based startup Builder.ai, once considered a disruptor of software development and valued at $1.5 billion. Builder.ai is now in bankruptcy. The company claims that its artificial intelligence-based platform will revolutionise app development. With the help of its AI-assisted platform, Natasha, the company claims that building software will be easier than ordering pizza. 

The recent revelations, however, have revealed a starkly different reality: instead of employing cutting-edge AI technology, Builder.ai reportedly relies on hundreds of human developers in India, who manually execute customer requests while pretending to be AI-generated results.

Having made elaborate misrepresentations about this company, Microsoft and Qatar Investment Authority invested $445 million, led by the false idea that they were backed by a scalable, AI-based solution, which resulted in over $445 million in funding being raised. This scandal has sparked a wider conversation about transparency, ethics, and the hype-driven nature of the startup ecosystem, as well as raised serious concerns about due diligence in the AI investment landscape. 

In 2016, Builder.ai, which was founded by entrepreneur Sachin Dev Duggal under the name Engineer.ai, was conceived with a mission to revolutionise app development. In the company's brand, the AI-powered, no-code platform was touted to be able to dramatically simplify the process of creating software applications by cutting down on the amount of code required. 

Founded by a group of MIT engineers and researchers, Builder.ai quickly captured the attention of investors worldwide, as the company secured significant funding from high-profile companies including Microsoft, the Qatar Investment Authority, the International Finance Corporation (IFC), and SoftBank's DeepCore. 

The company highlighted its proprietary artificial intelligence assistant, Natasha, as the technological breakthrough that could be used to build custom software without human intervention. This innovative approach was a central part of the company's value proposition. With the help of a compelling narrative, the startup secured more than $450 million in funding and achieved unicorn status with a peak valuation of $1.5 billion. 

It was widely recognised in the early stages of the evolution of Builder.ai that it was a pioneering force that revolutionised software development, reducing the reliance on traditional engineering teams and democratizing software development. However, underneath the surface of the company's slick marketing campaigns and investor confidence lay a very different operational model—one which relied heavily on human engineers, rather than advanced artificial intelligence. 

Building.ai's public image unravelled dramatically when its promotional promises diverged from its internal practices. It was inevitable that the dramatic collapse of Builder.ai, once regarded as a rising star in the global tech industry, would eventually lead to mounting scrutiny and a dramatic unravelling of its public image. This has revealed troubling undercurrents in the AI startup sector.

In its beginnings, Builder.ai was marketed as a groundbreaking platform for creating custom applications, but it also promised automation, scale, and cost savings, and was positioned as a revolutionary platform for developing custom applications. Natasha was the company's flagship artificial intelligence assistant, which was widely advertised as enabling it to develop software with no code. Yet internal testimonies, lawsuits, and investigation findings have painted a much more troubling picture since then. 

According to its claims of integrating sophisticated artificial intelligence, Natasha was only used as a simple interface for collecting client requirements, whereas the actual development work was done by large engineering teams in India, despite Natasha's claims of sophisticated artificial intelligence integration. According to whistleblowers, including former executives, Builder.ai did not have any genuine AI infrastructure in place. 

As it turns out, internal documentation indicates that applications are being marketed as “80% built by AI” when in fact their underlying tools are rudimentary at best, when they are actually built with artificial intelligence. Former CEO Robert Holdheim filed a $5 million lawsuit alleging wrongful termination after raising concerns about deceptive practices and investor misrepresentation in the company. Due to his case catalysing broader scrutiny, allegations of financial misconduct, as well as technological misrepresentations, were made, resulting in allegations of both. 

After Sachin Dev Duggal had taken over as CEO in mid-2025, Manpreet Ratia took over as CEO, starting things off in a positive manner by stabilising operations. An independent financial audit was ordered under Ratia's leadership that revealed massive discrepancies between the reported revenue and the actual revenue. 

Builder.ai claimed that it had generated more than $220 million in revenues for 2024, while the true figure was closer to $50 million. As a result, Viola Credit, a company's loan partner, quickly seized $37 million in the company's accounts and raised alarm among creditors and investors alike. A final-ditch measure was to release a press release acknowledging Builder.ai had been unable to sustain payroll or its global operations, with only $5 million remaining in restricted funds. 

In the statement, it acknowledged that it had not been able to recover from its past decisions and historic challenges. Several bankruptcy filings were initiated across multiple jurisdictions within a short period of time, including India, the United Kingdom, and the United States. The result was the layoff of over 1,000 employees and the suspension of a variety of client projects. 

The controversy exploded as new allegations were made about revenue roundtrips with Indian technology company VerSe, which was believed to be a strategy aimed at inflating financial performance and attracting new investors. Further, reports revealed that Builder.ai has defaulted on substantial payments to Amazon and Microsoft, owing approximately $85 million to Amazon and $30 million to Microsoft for unpaid cloud services. 

As a result of these developments, a federal investigation has been launched, with authorities requesting access to the company's finances and client contracts as well. As a result of the Builder.ai scandal, a broader issue is at play in the tech sector — "AI washing", where startups exaggerate or misstate their artificial intelligence capabilities to get funding and market traction. 

In an interview with Info-Tech Research Group, Principal Analyst Phil Brunkard summarised this crisis succinctly: "Many of these so-called AI companies scaled based on narrative rather than infrastructure." There is a growing concern among entrepreneurs, investors, and the entire technology industry that Builder.ai could be serving as a cautionary tale for investors, entrepreneurs, and the entire technology industry as regulatory bodies tighten scrutiny of AI marketing claims. 

There have been concerns regarding the legitimacy of Builder.ai's artificial intelligence capabilities ever since a report published by The Wall Street Journal in 2019 raised questions about how heavily the company relies on human labour over artificial intelligence. It has been reported that, despite the company's marketing narrative emphasising automation and machine learning, the company's internal operations paint a different picture. 

The article quotes former employees of Builder.ai saying that Builder.ai was a platform that was primarily engineering, and not AI-driven. This statement starkly contradicted the company's claim to be an AI-first, no-coding platform. Even though many investors and stakeholders ignored these early warnings, they hinted that there might be deeper structural inconsistencies with the startup's operations than what the initial warnings indicated. 

When Manpreet Ratia took on the role of CEO of the company in February 2025, succeeding founder Sachin Dev Duggal, the extent to which the company's internal dysfunction was revealed. It became apparent to Ratia quickly that the company had been misreported and that data had been manipulated for years in order to increase its valuation and public image, despite the fact that it had been tasked with restoring investor confidence and operational transparency. 

Following the revelations in this case, U.S. federal prosecutors immediately began an investigation into the company's business practices in response to the disclosures. Earlier this week, the authorities formally requested access to Builder.AI's financial records, internal communications, and its customer data. The request is part of a broader investigation looking into the possibility of fraud, deception of investors, and violations related to false descriptions of AI capabilities.

It should be noted that the failure of Builder.AI serves as an obvious sign that the investment and innovation ecosystems surrounding artificial intelligence need to be recalibrated urgently and sharply. Capital is continuing to flow into AI-powered ventures at a rapid pace, and stakeholders need to raise their standards in regards to due diligence, technical validation and governance oversight as a result. 

It is important to temper investor enthusiasm for innovative startups by rigorously evaluating the company's technical capabilities beyond polished pitch decks and strategic storytelling. The case reinforces the importance of transparency and sustainability over short-term hype for founders, as well as the need for regulators to develop frameworks aimed at holding companies accountable if they make misleading claims in their product representations and financial disclosures. 

Regulators are becoming increasingly aware of what is being called "AI washing" and are developing strategies to address it. Credibility in a sector built upon trust has become an essential cornerstone of long-term viability, and the collapse of Builder.ai illustrates that this is no longer just a case of a singular failure; rather, it has become a call to action in the tech industry to place substance above spectacle in the age of artificial intelligence.

Rust-Developed InfoStealer Extracts Sensitive Data from Chromium-Based Browsers

Rust-Developed InfoStealer Extracts Sensitive Data from Chromium-Based Browsers

Browsers at risk

The latest information-stealing malware, made in the Rust programming language, has surfaced as a major danger to users of Chromium-based browsers such as Microsoft Edge, Google Chrome, and others. 

Known as “RustStealer” by cybersecurity experts, this advanced malware is made to retrieve sensitive data, including login cookies, browsing history, and credentials, from infected systems. 

Evolution of Rust language

The growth in Rust language known for memory safety and performance indicates a transition toward more resilient and hard-to-find problems, as Rust binaries often escape traditional antivirus solutions due to their combined nature and lower order in malware environments. 

RustStealers works with high secrecy, using sophisticated obfuscation techniques to escape endpoint security tools. Initial infection vectors hint towards phishing campaigns, where dangerous attachments or links in evidently genuine emails trick users into downloading the payload. 

After execution, the malware makes persistence via registry modifications or scheduled tasks, to make sure it remains active even after the system reboots. 

Distribution Mechanisms

The main aim is on Chromium-based browsers, abusing the accessibility of unencrypted information stored in browser profiles to harvest session tokens, usernames, and passwords. 

Besides this, RustStealer has been found to extract data to remote C2 servers via encrypted communication channels, making detection by network surveillance tools such as Wireshark more challenging.

Experts have also observed its potential to attack cryptocurrency wallet extensions, exposing users to risks in managing digital assets via browser plugins. This multi-faceted approach highlights the malware’s goal to increase data robbery while reducing the chances of early detection, a technique similar to advanced persistent threats (APTs).

About RustStealer malware

What makes RustStealer different is its modular build, letting hackers rework its strengths remotely. This flexibility reveals that future ve

This adaptability suggests that future replications could integrate functionalities such as ransomware components or keylogging, intensifying threats in the longer run. 

The deployment of Rust also makes reverse-engineering efforts difficult, as the language’s output is less direct to decompile in comparison to scripts like Python or other languages deployed in outdated malware strains. 

Businesses are advised to remain cautious, using strong phishing securities, frequently updating browser software, and using endpoint detection and response (EDR) solutions to detect suspicious behavior. 

Hackers Tricking Employees with Fake IT Calls and Email Floods in New Ransomware Scam

 


A growing number of cyberattacks are being carried out by a group linked to the 3AM ransomware. These attackers are using a combination of spam emails and fake phone calls pretending to be a company’s tech support team. Their goal is to fool employees into giving them access to internal systems.

This method, which has been seen in past cyber incidents involving other groups like Black Basta and FIN7, is becoming more widespread due to how effective it is. Cybersecurity company Sophos has confirmed at least 55 attacks using this approach between November 2024 and January 2025. These incidents appear to come from two different hacker groups following similar tactics.

In one recent case during early 2025, the attackers targeted a company using a slightly different method than before. Instead of pretending to be tech support over Microsoft Teams, they called an employee using a fake caller ID that showed the company’s actual IT department number. The call took place while the employee’s inbox was being flooded with dozens of spam emails in just minutes — a technique known as email bombing.

During the call, the attacker claimed the employee's device had security issues and asked them to open Microsoft’s Quick Assist tool. This is a real remote help feature that allows another person to take control of the screen. Trusting the caller, the employee followed instructions and unknowingly handed over access to the attacker.

Once inside, the hacker downloaded a dangerous file disguised as a support tool. Inside the file were harmful components including a backdoor, a virtual machine emulator (QEMU), and an old Windows system image. These tools allowed the attacker to hide their presence and avoid detection by using virtual machines to move through the network.

The hacker then used tools like PowerShell and WMIC to explore the system, created a new admin account, installed a remote support tool called XEOXRemote, and gained control of a domain-level account. Although Sophos security software stopped the ransomware from spreading and blocked attempts to shut down protections, the hacker managed to steal 868 GB of company data. This data was sent to cloud storage using a syncing tool called GoodSync.

The full attack lasted around nine days. The majority of the data theft happened in the first three days before the attackers were cut off from further access.

To protect against such attacks, Sophos suggests reviewing admin accounts for weaknesses, using security tools that can spot unusual uses of trusted programs, and setting strict rules for running scripts. Most importantly, companies should train employees to recognize signs of fake support calls and suspicious emails, as these scams depend on fooling people — not just machines.

The 3AM ransomware group is relatively new, first spotted in late 2023, but appears to have links with well-known cybercrime networks like Conti and Royal.


U.S. Shuts Down LummaC2 Malware Network in Major Takedown

 

In a major crackdown on cybercrime, the U.S. Department of Justice (DOJ), in coordination with the FBI and Microsoft, has dismantled a global malware operation known as LummaC2 by seizing five internet domains used to deploy the infostealer malware. LummaC2, notorious for stealing personal and financial data such as browser history, login credentials, and cryptocurrency wallet information, had compromised at least 1.7 million systems worldwide. 

The takedown occurred over three days in May 2025, with two domains seized on May 19, followed by the rapid seizure of three additional domains after the malware operators attempted to restore access. These domains acted as user panels for cybercriminals leasing or buying access to the malware, allowing them to deploy it across networks and extract stolen data. 

FBI Assistant Director Bryan Vorndran said, “We took action against the most popular infostealer service available in online criminal markets. Thanks to partnerships with the private sector, we were able to disrupt the LummaC2 infrastructure and seize user panels.” 

DOJ Criminal Division head Matthew R. Galeotti added, “This type of malware is used to steal personal data from millions, facilitating crimes such as fraudulent bank transfers and cryptocurrency theft.” In a parallel move, Microsoft launched a civil legal action to take down 2,300 more domains believed to be linked to LummaC2 actors or their proxies. 

Emphasising the value of collaboration, Sue J. Bai, chief of the DOJ’s National Security Division, said, “Today’s disruption is another instance where our prosecutors, agents, and private sector partners came together to protect us from the persistent cybersecurity threats targeting our country.” 

The operation, led by the FBI’s Dallas Field Office and supported by several DOJ divisions, forms part of a broader U.S. strategy to counter cyber threats, including a State Department programme offering up to $10 million for information on individuals targeting U.S. critical infrastructure.

Global Operation Dismantles Lumma Malware Network, Seizes 2,300 Domains and Infrastructure

 

In a sweeping international crackdown earlier this month, a collaborative operation involving major tech firms and law enforcement agencies significantly disrupted the Lumma malware-as-a-service (MaaS) operation. This effort resulted in the seizure of thousands of domains and dismantling of key components of Lumma's infrastructure across the globe.

A major milestone in the operation occurred on May 13, 2025, when Microsoft, through legal action, successfully took control of around 2,300 domains associated with the malware. Simultaneously, the U.S. Department of Justice (DOJ) dismantled online marketplaces used by cybercriminals to rent Lumma’s services, while Europol’s European Cybercrime Center (EC3) and Japan’s Cybercrime Control Center (JC3) helped take down Lumma’s infrastructure in their respective regions.

"Between March 16, 2025, and May 16, 2025, Microsoft identified over 394,000 Windows computers globally infected by the Lumma malware. Working with law enforcement and industry partners, we have severed communications between the malicious tool and victims," said Steven Masada, Assistant General Counsel of Microsoft's Digital Crimes Unit.

Cloudflare, one of the key players in the effort, highlighted the impact of the takedown.

“The Lumma Stealer disruption effort denies the Lumma operators access to their control panel, marketplace of stolen data, and the Internet infrastructure used to facilitate the collection and management of that data. These actions impose operational and financial costs on both the Lumma operators and their customers, forcing them to rebuild their services on alternative infrastructure,” Cloudflare stated.

The operation saw contributions from companies like ESET, CleanDNS, Bitsight, Lumen, GMO Registry, and law firm Orrick. According to Cloudflare, the Lumma malware misused their platform to mask server IP addresses that were used to siphon off stolen credentials and sensitive data.

Even after suspending malicious domains, the malware managed to bypass Cloudflare’s interstitial warning page, prompting the company to reinforce its security measures.

"Cloudflare's Trust and Safety team repeatedly flagged domains used by the criminals and suspended their accounts," the company explained.

“In February 2025, Lumma’s malware was observed bypassing Cloudflare’s interstitial warning page, which is one countermeasure that Cloudflare employs to disrupt malicious actors. In response, Cloudflare added the Turnstile service to the interstitial warning page, so the malware could not bypass it." 

Also known as LummaC2, Lumma is a sophisticated information-stealing malware offered as a subscription-based service, ranging from $250 to $1,000. It targets both Windows and macOS systems, enabling cybercriminals to exfiltrate data from browsers and apps.

Once installed, Lumma can extract a broad range of data, including login credentials, credit card numbers, cryptocurrency wallets, cookies, and browsing history from popular browsers like Google Chrome, Microsoft Edge, Mozilla Firefox, and other Chromium-based platforms. The stolen data is packaged and sent to attacker-controlled servers, where it is either sold on dark web marketplaces or used in follow-up cyberattacks.

Initially spotted in December 2022 on cybercrime forums, the malware quickly gained traction. Cybersecurity firm KELA reported its rapid rise in popularity among cybercriminals.

IBM X-Force’s 2025 threat intelligence report revealed a 12% year-on-year increase in the number of stolen credentials being sold online, largely driven by the use of infostealers like Lumma. Phishing campaigns delivering such malware have surged by 84%, making Lumma the most dominant player in this threat landscape.

Lumma has been linked to major malvertising campaigns affecting hundreds of thousands of users and has been used by notorious groups such as the Scattered Spider cybercrime collective.

Recently, stolen data linked to Lumma has played a role in high-profile breaches at companies like PowerSchool, HotTopic, CircleCI, and Snowflake. In some cases, infostealer malware has been used to manipulate internet infrastructure, such as the Orange Spain RIPE account hijacking incident that disrupted BGP and RPKI configurations.

On the day of the crackdown, the FBI and CISA jointly issued a security advisory outlining indicators of compromise (IOCs) and detailing the tactics, techniques, and procedures (TTPs) employed by threat actors using Lumma malware.


Microsoft Uncover Password Stealer Malware on 4 lakh Windows PCs

 

Microsoft's Digital Crimes Unit (DCU) and global partners have halted Lumma Stealer, one of cybercriminals' most common info-stealing malware tools. On May 13, Microsoft and law enforcement agencies seized nearly 2,300 domains that comprise Lumma's infrastructure, inflicting a significant blow to cybercrime networks targeting sensitive private and institutional data. 

Lumma is a Malware-as-a-Service (MaaS) that has been advertised on underground forums since 2022. It specialises in siphoning passwords, banking credentials, cryptocurrency wallets, and other information. Its victims include individual consumers, schools, banks, and critical service providers. Between March and May 2025, Microsoft found about 394,000 Lumma-infected Windows systems. The majority of these systems were located in Brazil, the United States, and other parts of Europe.

The operation, which was permitted by the US District Court for the Northern District of Georgia, involved Microsoft, the US Department of Justice, Europol, and Japan's Cybercrime Control Centre. The DOJ removed Lumma's command infrastructure, while law enforcement assisted in the suspension of local networks that supported the malware. 

Microsoft is sending over 1,300 confiscated or transferred domains to its "sinkholes"—a defensive infrastructure that intercepts malicious traffic in order to detect and prevent further attempts. The insights gained from these sinkholes will help public and private cybersecurity operations to investigate, track, and neutralise Lumma-related threats. 

Lumma, which is designed to avoid detection, has been popular among ransomware gangs such as Octo Tempest (also known as Scattered Spider). It spreads via phishing attacks, malvertising, and impersonation frauds, such as a recent attack that used Booking.com to perpetrate financial theft. Lumma has been used against sectors like healthcare, telecom, and logistics in addition to financial fraud, highlighting the wide-ranging and persistent threat it poses.

“We know cybercriminals are persistent and creative. We, too, must evolve to identify new ways to disrupt malicious activities. Microsoft’s DCU will continue to adapt and innovate to counteract cybercrime and help ensure the safety of critical infrastructure, customers, and online users,” noted Microsoft in a blog post.

Why Microsoft Says DeepSeek Is Too Dangerous to Use

 


Microsoft has openly said that its workers are not allowed to use the DeepSeek app. This announcement came from Brad Smith, the company’s Vice Chairman and President, during a recent hearing in the U.S. Senate. He said the decision was made because of serious concerns about user privacy and the risk of biased content being shared through the app.

According to Smith, Microsoft does not allow DeepSeek on company devices and hasn’t included the app in its official store either. Although other organizations and even governments have taken similar steps, this is the first time Microsoft has spoken publicly about such a restriction.

The main worry is where the app stores user data. DeepSeek's privacy terms say that all user information is saved on servers based in China. This is important because Chinese laws require companies to hand over data if asked by the government. That means any data stored through DeepSeek could be accessed by Chinese authorities.

Another major issue is how the app answers questions. It’s been noted that DeepSeek avoids topics that the Chinese government sees as sensitive. This has led to fears that the app’s responses might be influenced by government-approved messaging instead of being neutral or fact-based.

Interestingly, even though Microsoft is blocking the app itself, it did allow DeepSeek’s AI model—called R1—to be used through its Azure cloud service earlier this year. But that version works differently. Developers can download it and run it on their own servers without sending any data back to China. This makes it more secure, at least in terms of data storage.

However, there are still other risks involved. Even if the model is hosted outside China, it might still share biased content or produce low-quality or unsafe code.

At the Senate hearing, Smith added that Microsoft took extra steps to make the model safer before making it available. He said the company made internal changes to reduce any harmful behavior from the model, but didn’t go into detail about what those changes were.

When DeepSeek was first added to Azure, Microsoft said the model had passed safety checks and gone through deep testing to make sure it met company standards.

Some people have pointed out that DeepSeek could be seen as a competitor to Microsoft’s own chatbot, Copilot. But Microsoft doesn’t block every competing chatbot. For example, Perplexity is available in the Windows app store. Still, some other popular apps, like Google’s Chrome browser and its Gemini chatbot, weren’t found during a search of the store.

Windows CLFS Zero-Day Flaw Exploited in Play Ransomware Attacks

 

In zero-day attacks, the Play ransomware gang exploited a critical Windows Common Log File System flaw to gain SYSTEM access and install malware on infected PCs. The vulnerability, known as CVE-2025-29824, was identified by Microsoft as being exploited in a small number of attacks and addressed during last month's patch.

"The targets include organizations in the information technology (IT) and real estate sectors of the United States, the financial sector in Venezuela, a Spanish software company, and the retail sector in Saudi Arabia," Microsoft noted in April. 

Microsoft attributed these assaults to the RansomEXX ransomware outfit, claiming that the perpetrators installed the PipeMagic backdoor malware, which was employed to deliver the CVE-2025-29824 exploit, ransomware payloads, and ransom letters after encrypting files. 

Since then, Symantec's Threat Hunter Team has discovered evidence linking them to the Play ransomware-as-a-service operation, claiming that the hackers used a CVE-2025-29824 zero-day privilege escalation exploit after breaching a US organization's network. 

"Although no ransomware payload was deployed in the intrusion, the attackers deployed the Grixba infostealer, which is a custom tool associated with Balloonfly, the attackers behind the Play ransomware operation," Symantec added. "Balloonfly is a cybercrime group that has been active since at least June 2022 and uses the Play ransomware (also known as PlayCrypt) in attacks.” 

The Grixba custom network-scanning and information-stealing program was discovered two years ago, and Play ransomware operators often use it to list users and computers in compromised networks. The Play cybercrime gang first appeared in June 2022, and it is also renowned for double-extortion attacks, in which its affiliates coerce victims into paying ransoms to prevent their stolen data from being exposed online. 

As of October 2023, the Play ransomware gang has compromised the networks of around 300 organisations globally, according to a joint alert released by the FBI, CISA, and the Australian Cyber Security Centre (ACSC) in December 2023. 

The cloud computing company Rackspace, the massive auto retailer Arnold Clark, the City of Oakland in California, Dallas County, the Belgian city of Antwerp, and, more recently, the American semiconductor supplier Microchip Technology and doughnut chain Krispy Kreme are among the notable victims of the Play ransomware.

Commvault Confirms Cyberattack, Says Customer Backup Data Remains Secure


Commvault, a well-known company that helps other businesses protect and manage their digital data, recently shared that it had experienced a cyberattack. However, the company clarified that none of the backup data it stores for customers was accessed or harmed during the incident.

The breach was discovered in February 2025 after Microsoft alerted Commvault about suspicious activity taking place in its Azure cloud services. After being notified, the company began investigating the issue and found that a very small group of customers had been affected. Importantly, Commvault stated that its systems remained up and running, and there was no major impact on its day-to-day operations.

Danielle Sheer, Commvault’s Chief Trust Officer, said the company is confident that hackers were not able to view or steal customer backup data. She also confirmed that Commvault is cooperating with government cybersecurity teams, including the FBI and CISA, and is receiving support from two independent cybersecurity firms.


Details About the Vulnerability

It was discovered that the attackers gained access by using a weakness in Commvault’s web server software. This flaw, now fixed, allowed hackers with limited permissions to install harmful software on affected systems. The vulnerability, known by the code CVE-2025-3928, had not been known or patched before the breach, making it what experts call a “zero-day” issue.

Because of the seriousness of this bug, CISA (Cybersecurity and Infrastructure Security Agency) added it to a list of known risks that hackers are actively exploiting. U.S. federal agencies have been instructed to update their Commvault software and fix the issue by May 19, 2025.


Steps Recommended to Stay Safe

To help customers stay protected, Commvault suggested the following steps:

• Use conditional access controls for all cloud-based apps linked to Microsoft services.

• Check sign-in logs often to see if anyone is trying to log in from suspicious locations.

• Update secret access credentials between Commvault and Azure every three months.


The company urged users to report any strange behavior right away so its support team can act quickly to reduce any damage.

Although this was a serious incident, Commvault’s response was quick and effective. No backup data was stolen, and the affected software has been patched. This event is a reminder to all businesses to regularly check for vulnerabilities and keep their systems up to date to prevent future attacks.

AI Now Writes Up to 30% of Microsoft’s Code, Says CEO Satya Nadella

 

Artificial intelligence is rapidly reshaping software development at major tech companies, with Microsoft CEO Satya Nadella revealing that between 20% and 30% of code in the company’s repositories is currently generated by AI tools. 

Speaking during a fireside chat with Meta CEO Mark Zuckerberg at Meta’s LlamaCon conference, Nadella shed light on how AI is becoming a core contributor to Microsoft’s development workflows. He noted that Microsoft is increasingly relying on AI not just for coding but also for quality assurance. 

“The agents we have for reviewing code; that usage has increased,” Nadella said, adding that the performance of AI-generated code differs depending on the programming language. While Python showed strong results, C++ remained a challenge. “C Sharp is pretty good but C++ is not that great. Python is fantastic,” he noted. 

When asked about the role of AI in Meta’s software development, Zuckerberg did not provide a specific figure but shared that the company is prioritizing AI-driven engineering to support the development of its Llama models. 

“Our bet is that probably half the development is done by AI as opposed to people and that will just kind of increase from there,” Zuckerberg said. 

Microsoft’s Chief Technology Officer Kevin Scott has previously projected that AI will be responsible for generating 95% of all code within the next five years. Speaking on the 20VC podcast, Scott emphasized that human developers will still play a vital role. 

“Very little is going to be — line by line — human-written code,” he said, but added that AI will “raise everyone’s level,” making it easier for non-experts to create functional software. The comments from two of tech’s biggest leaders point to a future where AI not only augments but significantly drives software creation, making development faster, more accessible, and increasingly automated.

Microsoft Launches Recall AI for Windows 11 Copilot+ PCs with Enhanced Privacy Measures

 

After months of delays stemming from privacy and security concerns, Microsoft has officially rolled out its Recall AI feature for users of Windows 11 Copilot+ PCs. The feature, which has now exited its beta phase, is included in the latest Windows update. Recall AI enables users to search their on-screen activity by automatically taking screenshots and storing them—along with any extracted text—in a locally encrypted and searchable database. This makes it easier for users to find and revisit previous interactions, such as documents, applications, or web pages, using natural language search. 

Originally introduced in May 2024, Recall AI faced widespread criticism due to concerns around user privacy and the potential for misuse. Microsoft delayed its public launch several times, including a planned release in October 2024, to address these issues and gather feedback from Windows Insider testers. 

In its revised version, Microsoft has made Recall AI an opt-in tool with built-in privacy protections. All data remains on the user’s device, with no transmission to Microsoft servers or third parties. Features such as Windows Hello authentication, full local encryption, and user control over data storage have been added to reinforce security. Microsoft assures users they can completely remove the feature at any time, although temporary system files may persist briefly before being permanently deleted. 

For enterprise users with an active Microsoft 365 E3 subscription, the company offers advanced administrative controls. These allow IT departments to set access permissions and manage security policies related to the use of Recall AI in workplace environments. Alongside Recall AI, Microsoft has also launched two additional features tailored to Copilot+ PCs. 

The improved Windows search function now interprets user queries more contextually and processes them using the device’s neural processing unit for faster and smarter results. Meanwhile, the Click to Do feature provides context-sensitive shortcuts, making tasks like copying or summarising text and images more efficient. In separate developments, Microsoft continues to advance its position in quantum computing.

Earlier this year, the company unveiled Majorana 1, a quantum chip based on a novel Topological Core architecture. According to Microsoft, this breakthrough has the potential to significantly accelerate solutions to industrial-scale problems using quantum technology.

Microsoft Alerts Users About Password-spraying Attack

Microsoft Alerts Users About Password-spraying Attack

Microsoft alerts users about password-spraying attacks

Microsoft has warned users about a new password-spraying attack by a hacking group Storm-1977 that targets cloud users. The Microsoft Threat Intelligence team reported a new warning after discovering threat actors are abusing unsecured workload identities to access restricted resources. 

According to Microsoft, “Container technology has become essential for modern application development and deployment. It's a critical component for over 90% of cloud-native organizations, facilitating swift, reliable, and flexible processes that drive digital transformation.” 

Hackers use adoption-as-a-service

Research says 51% of such workload identities have been inactive for one year, which is why attackers are exploiting this attack surface. The report highlights the “adoption of containers-as-a-service among organizations rises.” According to Microsoft, it continues to look out for unique security dangers that affect “containerized environments.” 

The password-spraying attack targeted a command line interface tool “AzureChecker” to download AES-encrypted data which revealed the list of password-spray targets after it was decoded. To make things worse, the “threat actor then used the information from both files and posted the credentials to the target tenants for validation.”

The attack allowed the Storm-1977 hackers to leverage a guest account to make a compromised subscription resource group and over 200 containers that were used for crypto mining. 

Mitigating password-spraying attacks

The solution to the problem of password spraying attacks is eliminating passwords. It can be done by moving towards passkeys, a lot of people are already doing that. 

Microsoft has suggested these steps to mitigate the issue

  • Use strong authentication while putting sensitive interfaces to the internet. 
  • Use strong verification methods for the Kubernetes API to stop hackers from getting access to the cluster even when valid credentials like kubeconfig are obtained.  
  • Don’t use the read-only endpoint of Kubelet on port 10255, which doesn’t need verification. 

Modify the Kubernetes role-based access controls for every user and service account to only retain permissions that are required. 

According to Microsoft, “Recent updates to Microsoft Defender for Cloud enhance its container security capabilities from development to runtime. Defender for Cloud now offers enhanced discovery, providing agentless visibility into Kubernetes environments, tracking containers, pods, and applications.” These updates upgrade security via continuous granular scanning.