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Disrupted Phishing-as-a-Service Operation Stole Microsoft 365 Credentials

HowsMyPassword Team
September 29, 2025
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Microsoft Just Shut Down a Massive Phishing Operation (Here's What You Need to Know)

Remember when phishing scams were obviously fake emails from "princes" who needed your help? Those days are long gone. Microsoft and Cloudflare just took down a sophisticated phishing operation that was stealing Microsoft 365 credentials from thousands of people - and trust me, these weren't your typical obvious scams.

This operation, called RaccoonO365, was targeting regular people and businesses across 94 countries. The scary part? Their fake login pages looked so legitimate that even tech-savvy folks were getting fooled.

How This Phishing Operation Worked (And Why It Was So Effective)

These weren't amateur hackers - this was a full-blown criminal business operation. They were literally selling "phishing as a service" for $355 per month. Here's what made it particularly nasty:

  • They created perfect copies of Microsoft 365 login pages

  • Used CAPTCHA systems to avoid detection by security tools

  • Hosted everything on Cloudflare's infrastructure to look legitimate

  • Could even bypass some forms of two-factor authentication

Once they had your credentials, they could access everything - your OneDrive files, SharePoint documents, and all your Outlook emails. This is exactly why I've been pushing everyone I know to use a password manager like NordPass - it helps you spot fake login pages because it won't auto-fill your credentials on phishing sites.

The Takedown: Microsoft Strikes Back

Microsoft and Cloudflare finally managed to disrupt this operation by:

  • Seizing 338 phishing websites

  • Shutting down their infrastructure

  • Blocking their ability to create new phishing sites

But here's the thing - there are dozens more operations like this out there. The best defense is making yourself a harder target.

How to Protect Yourself (Because This Will Happen Again)

First things first: If you're not using multi-factor authentication yet, drop everything and set it up now. Seriously. For extra protection, I recommend using a YubiKey - it's a physical security key that makes it virtually impossible for phishers to steal your login, even if they get your password.

Here are some other critical steps:

1. Double-Check Those Login Pages

Before entering your password anywhere, check the URL carefully. Microsoft365.com-secure.net? That's fake. Only trust official domains like microsoft.com.

2. Use a Password Manager

I can't stress this enough - a good password manager like NordPass will save you from yourself. It won't autofill your credentials on fake sites, which is often your first clue something's wrong.

3. Keep Your Security Software Updated

I use Malwarebytes Premium because it catches a lot of these phishing attempts before they even reach you. Whatever security software you use, make sure it's up to date.

The Bottom Line

While it's great that Microsoft shut down RaccoonO365, there are plenty more phishing operations out there. The best protection is being proactive about your security. Use strong, unique passwords (seriously, get a password manager), enable multi-factor authentication, and always be skeptical of login requests - even if they look legitimate.

Quick heads up:Some links in this article are affiliate links. If you buy something through them, we might earn a small commission (doesn't cost you extra). We only recommend stuff we'd actually use ourselves or set up for our own families. No BS recommendations here.

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