A new phishing campaign is bypassing Office 365 anti-phishing defenses and arriving in employees’ inboxes; one of several recent campaigns to slip through the net and test end users’ security awareness knowledge.

The aim of this campaign is not to obtain login credentials or install malware. It is a sextortion scam that aims to get email recipients to make a payment to the scammers.

Sophisticated Sextortion Scam Bypasses Office 365 Anti-Phishing Controls

The scam itself is straightforward. The sender of the email claims to be a hacker who has gained access to the victim’s computer and has installed malware. That malware allowed full access to the user’s device, including control of the webcam. The email claims that the webcam was used to record the victim while he/she was accessing adult web content. The attacker claims to have spliced the webcam recording with the images/videos that were being viewed at the time. The attacker claims the video will be sent to the user’s contacts on social media and via email.

Several similar sextortion scams have been conducted in the past few months, but what makes this campaign different is the extent of the deception. In this campaign, the attacker includes the user’s password in the email body.

“Hello!
I’m a hacker who cracked your email and device a few months ago.
You entered a password on one of the sites you visited, and I intercepted it.
This is your password from [user’s email] on moment of hack: [user’s password]

The password may not be the one currently used, but it is likely to be recognized as it has been taken from a previous data breach. However, its inclusion will be especially worrying for any user who does not regularly change their password and for users that share passwords across multiple sites or reuse old passwords. Changing the password will not block access, according to the email

“Of course, you can and will change it, or already have changed it.
But it doesn’t matter, my malware updated it every time.”

For anyone who has viewed adult content on a laptop or other device with a webcam, this message will no doubt be extremely concerning. Especially, as the email contains ‘evidence’ of email compromise. The From field of the email displays the user’s own email address, indicating that the attacker has sent it from the user’s email account.

The attacker notes in the email, “Do not try to contact me or find me, it is impossible, since I sent you an email from your account.”

While scary, the attacker does not have access to the user’s email account. The From field has been spoofed. This is actually straightforward with a Unix computer set up with mail services. Mass emails can be sent out using the same email address in the From field as the Address field, giving the impression that the messages have been sent from the users’ accounts.

The hacker notes that this is not his/her usual modus operandi. “You are not my only victim, I usually lock computers and ask for a ransom. But I was struck by the sites of intimate content that you often visit.” That will be a particular worry for some users.

To prevent distribution of the video, the user must pay $892 in Bitcoin to the specified address and many email recipients have chosen to pay to avoid exposure. The Bitcoin wallet used for the scam has received 450 payments totaling 6.31131431 BTC – around $27,980. Multiple Bitcoin wallets are often used by scammers, so the actual total is likely to be far higher.

Bypassing of Office 365 Anti-Phishing Defenses a Cause for Concern

This scam may not have any direct impact on a business, as no credentials are compromised, and malware is not installed; however, what is of concern is how the messages have bypassed Office 365 phishing defenses and are arriving in inboxes. The scam was first identified in late September and the messages continued to be delivered to Office 365 inboxes, even those with Advanced Threat Protection that companies pay extra for to provide greater protection against spam and phishing emails.

This is of course just one scam. Others have similarly breached Office 365 anti-phishing defenses, many of which are much more malicious in nature and pose a very real and direct threat to businesses. Office 365 anti-phishing protections do block a lot of threats, and protection is improved with Advanced Threat Protection, but the controls are not particularly effective at blocking sophisticated phishing attempts and zero-day attacks.

The volume of phishing attacks on businesses that are now being conducted, the sophisticated nature of those attacks, and the high cost of mitigating a phishing attack and data breach mean businesses need to improve Office 365 anti-phishing defenses further. That requires a third-party spam solution.

For more than 20 years, TitanHQ has been developing security solutions to protect inboxes and block web-based attacks. During that time, our spam filtering solution, SpamTitan, has been gathering threat intelligence, analyzing spamming and phishing tactics, and protecting end users. Over the years, SpamTitan has receive many updates to improve protection against new threats and phishing tactics. Independent tests have shown SpamTitan now has a catch rate in excess of 99.9%.

The incorporation of a range of predictive techniques ensure SpamTitan is not reliant on signatures and can detect never-before seen phishing attempts and zero-day attacks, and provide superior protection against spam, phishing, malware, viruses, ransomware, and botnets for Office 365 users.

To better protect your email channel and keep your Office 365 inboxes threat free, contact TitanHQ today to schedule a full personalized demo of SpamTitan and to find out just how cost effective the solution is for SMBs and enterprises.