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FBI alert: Outlook, OneDrive and other Microsoft 365 services targeted by new cyber threat
The kit uses AI-generated lures and device code flow to steal tokens, giving attackers persistent access without passwords or multi-factor authentication.
On May 21, 2026, the FBI issued an alert regarding 'Kali365,' a phishing platform targeting Microsoft 365 services including Outlook, Teams, and OneDrive.
First identified in April, this 'PhaaS' platform allows hackers to bypass Multi-Factor Authentication by capturing OAuth tokens rather than stealing user credentials.
By manipulating legitimate authentication flows, attackers capture tokens, a technique the FBI noted 'lowers the barrier of entry' for less-skilled individuals looking to hijack accounts.
To protect accounts, officials recommend creating conditional access policies to block device code flow and reporting suspicious activity to the Internet Crime Complaint Center.
Cybersecurity experts warn this reflects a broader shift toward exploiting trust, with one analyst stating, 'The next breach at a large enterprise will not start with a hacker exploiting a vulnerability.