AI code is in use across sectors for variety of tasks, particularly cybersecurity, and both threat actors and security teams have turned to LLMs for supporting their work.
Security experts use AI to track and address to threats at scale as hackers are experimenting with AI to make phishing traps, create obfuscated codes, and make spoofed malicious payloads.
Microsoft Threat Intelligence recently found and stopped a phishing campaign that allegedly used AI-generated code to cover payload within an SVG file.
The campaign used a small business email account to send self addressed mails with actual victims coveted in BCC fields, and the attachment looked like a PDF but consisted SVG script content.
The SVG file consisted hidden elements that made it look like an original business dashboard, while a secretly embedded script changed business words into code that exposed a secret payload. Once opened, the file redirects users to a CAPTCHA gate, a standard social engineering tactical that leads to a scanned sign in page used to steal credentials.
The hidden process combined business words and formulaic code patterns instead of cryptographic techniques.
Security Copilot studied the file and listed markers in lines with LLM output. These things made the code look fancy on the surface, however, it made the experts think it was AI generated.
The experts used AI powered tools in Microsoft Defender for Office 375 to club together hints that were difficult for hackers to push under the rug.
The AI tool flagged the rare self-addressed email trend , the unusual SVG file hidden as a PDF, the redirecting to a famous phishing site, the covert code within the file, and the detection tactics deployed on the phishing page.
The incident was contained, and blocked without much effort, mainly targeting US based organizations, Microsoft, however, said that the attack show how threat actors are aggressively toying with AI to make believable tracks and sophisticated payloads.
To counter threats like SpamGPT, cybersecurity experts recommend:
Enforcing DMARC, SPF, and DKIM to block spoofed emails.
Deploying AI-driven phishing detection tools.
Maintaining regular backups and malware removal protocols.
Implementing multi-factor authentication (MFA) across all accounts.
Providing ongoing phishing awareness training for employees.
Using network segmentation and least-privilege access controls.
Keeping software and security patches updated.
Testing and refining incident response plans for rapid recovery.
SpamGPT demonstrates how cybercriminals are harnessing AI to evolve their tactics. As defenses improve, attackers are adapting just as quickly—making vigilance and layered security strategies more critical than ever.
Among the many cybersecurity issues, phishing attacks like QR code phishing were the ones that have seen a massive surge in the sector.
Also, the report noted that the finance sector is subject to attacks on the software supply chain.
Sekoia claims that in 2023, the phishing-as-a-service paradigm reached widespread use. Cybercriminals are selling phishing kits that comprise phishing pages that mimic various financial institutions, as well as kits designed to take over Microsoft and obtain login credentials for Microsoft 365, which businesses utilize to authenticate to multiple services.
One instance of such a threat is NakedPages PhaaS, that offers phishing pages for varied targets, among which are the financial institutions. With over 3,500 individuals, the threat actor maintains licenses and frequently posts updates on its Telegram channel.
In regards to the aforementioned number, Sekoia based strategic threat intelligence analyst, Livia Tibirna says “generally speaking, cybercrime actors tend to increase their audience, and so their visibility, by inviting users to join their public resources. Therefore, the users are potential (future) customers of the threat actors’ services. Yet, other type of users joining threat actors’ Telegram resources are cybersecurity experts monitoring the related threats.”
QR Code Phishing Campaigns are on the Rise/ Sekoia reports an upsurge in the quantity of QR code phishing, or quishing, activities. Attacks known as "quishing" include using QR codes to trick people into divulging personal information—like login passwords or bank account details.
The cybersecurity firm notes that QR code phishing will eventually increase due to its “effectiveness in evading detection and circumventing email protection solutions.”
According to Sekoia, the most popular kit in Q3 of 2023 is the Dadsec OTT phishing as a service platform, which includes quishing features. It has been noted in a number of extensive attack campaigns, specifically posing as financial institutions.
Attacks against the supply chain of open-source software increased by 200% between 2022 and 2023. Since open-source components are used in digital products or services by 94% of firms in the financial sector, the industry is susceptible to attacks that take advantage of supply chain compromises involving open-source software.
One of the examples is the Log4Shell vulnerability and its exploitation, that has targeted thousands of companies globally for financial benefits and espionage.
There have also been reports of supply chain attacks that particularly target the banking industry, demonstrating the potential of certain threat actors to create complex attacks against the industry.
"It is highly likely that advanced threat actors will persist in explicitly targeting the software supply chain in the banking sector," according to Sekoia.
Sekoia also mentioned some of the financially oriented malware that are predominantly designed to steal financial data, like credit card information, banking credentials, crypto wallets and other critical data, like:
Mobile Banking Trojans: Sekoia has expressed special concern about the growing number of Trojans associated with mobile banking, which more than doubled in 2022 compared to the previous year and is still growing in 2023. According to Sekoia, this is probably because more mobile devices are being used for financial services, and that malware makes it easier to get around two-factor authentication.
Spyware: According to Sekoia, the usage of spyware, which are malicious programs made to gather passwords, sensitive data, and keystrokes, has increased in bank fraud in 2023. One kind of Android malware is called SpyNote, and it has added targeting of banking applications to its list of features.
Ransomware: The finance industry is a prime target for ransomware; in the third quarter of 2023, it was the sector most affected. Ransom demands ranged from $180,000 to $40 million, and in many instances, they had severe physical repercussions.
According to Sekoia, well-known ransomware actors that use extortion to affect the financial industry, like BianLian, have changed to an exfiltration-based extortion strategy that does not encrypt the victims' systems or data. This action is probably taken to prevent widespread encryption issues during large-scale hacking operations.
The financial sector is vulnerable to several security risks. Although BEC and phishing have been around for a while, they have become more sophisticated over time to continue to impact the industry and stay up with emerging technologies. Every employee of financial institutions needs to be trained to recognize potential fraud or phishing efforts. Additionally, they want to have a simple method for informing their IT staff of any unusual activities.
However, more indirect attacks have recently entered the chart, since threat actors have been targeting organizations through supply chain attacks. Specifically, before being implemented, open-source software utilized in goods or services needs to be thoroughly examined.
In 2022, threat actors conducted malicious activity by using IPFS for email phishing campaigns. They upload HTML files containing phishing forms to IPFS and use gateways as proxies so that users can access the files whether or not an IPFS client is installed on their devices. In addition, the scammers included file access links through a gateway into phishing messages forwarded to targeted victims.
A distributed file system is used by attackers to reduce the cost of hosting phishing pages. Moreover, IPFS makes it impossible to erase files that have been uploaded by third parties. One can request that a file's owner delete it if they want it to totally disappear from the system, but cybercriminals will almost certainly never comply.
IPFS gateway providers manage to tackle IPFS phishing attacks by consistently deleting links to fraudulent or suspicious files.
Still, the detection or deletion of links at the gateway level do not always happen as quickly as blocking phishing emails, cloud files, or document. The URL addresses initially came to light in October 2022. As of right now, the campaign is still ongoing.
The objective of phishing letters with IPFS links is often to gain the victim's account username and password, the reason why they barely contain very creative content. What is interesting about this tactic is where the HTML page links go.
The recipient's email address is contained in the URL parameter. The email address given in the login box and the corporate logo at the top of the phishing form will both change, once modified. This way, one link can be utilized in a number of phishing campaigns targeting a variety of users.
In late 2022, Kaspersky discovered two – 15,000 IPFS phishing letters a day for most of the time. This year, IPFS campaigns have begun to escalate, reaching more than 24,000 letters a day in January and February. February became the busiest month in terms of IPFS phishing activities, where researchers discovered a whooping 400,000 letters, a 100,000 increase from November and December 2022.
In regards to this, Roman Dedenok, a security expert at Kaspersky commented “Attackers have and will continue to use cutting-edge technologies to reap profits. As of late, we have observes an increase in the number of IPFS phishing attacks — both mass and targeted. The distributed file system allows scammers to save money on domain purchase. Plus, it is not easy to completely delete a file, although, there are attempts to combat fraud at the IPFS gateway level. The good news is that anti-spam solutions detect and block links to phishing files in IPFS, just like any other phishing links. In particular, Kaspersky products employ a number of heuristics to detect IPFS phishing.”