Microsoft Stops AI-Powered Phishing Attack Hidden in SVG Files

Microsoft has successfully intercepted a sophisticated phishing campaign that used artificial intelligence to generate malicious code hidden inside an SVG file. The attack, aimed at U.S.-based organizations, sought to steal login credentials by disguising phishing emails as legitimate file-sharing notifications.

The campaign originated from a compromised small business email account, with attackers using the BCC field to mask actual recipients and bypass filters. The attached SVG file was made to look like a PDF document, but instead contained obfuscated JavaScript designed to launch malware and redirect victims to fake login portals.

Microsoft’s Defender for Office 365, powered by AI threat detection, flagged multiple warning signals—including suspicious sender-receiver patterns, abnormal network activity, and hallmarks of AI-generated obfuscation. Rather than relying on simple content scans, Microsoft’s system used behavioral and infrastructural analysis to uncover the malicious payload.

The case highlights a growing trend: AI is now a double-edged sword in cybersecurity. While attackers are using AI to create more advanced and evasive threats, defenders are equally deploying AI to detect and neutralize them.

Microsoft stressed the importance of constant vigilance, urging users to carefully inspect unexpected emails, attachments, and file-sharing prompts—even when they appear genuine.

By stopping this campaign, Microsoft demonstrated how AI-driven defense strategies can outpace AI-driven cyberattacks, but also underscored that the battle between attackers and defenders is rapidly evolving.