Medium

KeyStealth Hid in a Microsoft 365 Inbox for Seven Weeks, MFA and All

ADAMnetworks details how a device code phishing kit let an operator register rogue Entra devices, sit in a company's Microsoft 365 account for seven weeks and attempt payment fraud.

A phishing crew used a fake quote request to take over a US construction-bid company’s Microsoft 365 account, hold it for seven weeks, and then try to redirect a customer payment, ADAMnetworks reports. The researchers call the operator KeyStealth. Its rogue devices were named iAuthFlow-Device, which ties it to the iAuthFlow phishing-as-a-service kit. Citing Abnormal’s August research, ADAMnetworks says that kit sells on a Russian-language forum for $10,000. Responders disabled the account about 12 minutes after the operator set up its payment trap, and no payment details went out.

For defenders

Access: A “Re: Request for Quote” email, sent from a compromised third-party mailbox, linked through i-ps-c[.]com to bnkcontract[.]cam, with a decoy page shown to scanners (T1566.002 (Phishing: Spearphishing Link)). The victim entered a password and approved MFA, and the operator collected tokens through the OAuth device code flow using the Microsoft Authentication Broker client ID. ADAMnetworks counted 209 of 211 later sign-ins carrying the device code marker.

Persistence: Within 22 seconds of getting the token, the operator registered two Entra devices, and added a third 19 days later with no user sign-in. All reported OS version 10.0.19041.928, the ROADtools default. Those devices let the operator mint primary refresh tokens, the long-lived Windows single sign-on token. That’s T1098.005 (Account Manipulation: Device Registration) and T1550.001 (Use Alternate Authentication Material: Application Access Token). A passkey was also added but never used.

BEC: On Oct. 15 the operator set up an inbox rule named . that hid a customer’s replies, offered same-day ACH or Venmo payment, then deleted the sent copy (T1564.008 (Hide Artifacts: Email Hiding Rules)).

Hunt: Look for Entra “Add device” events with that name or OS version, device code sign-ins to app ID 29d9ed98-a469-4536-ade2-f981bc1d605e, device registration within minutes of a Broker sign-in, and one-character rules moving mail to Conversation History. Block device code flow with a Conditional Access authentication flows policy wherever it isn’t needed.

Network
i-ps-c[.]com
bnkcontract[.]cam
kinsleyconstructions[.]us
wmmeagency[.]cam
37.148.203[.]226

What it means for you

This attack beats MFA instead of guessing passwords. The victim signed in and approved the MFA prompt themselves, and that handed the attacker a pass that kept working for weeks. Then they wait quietly in your email until there’s money to redirect. If a customer or supplier suddenly gets “new payment details” from you, that should be checked by phone.

Do this now

  1. Treat any emailed “quote,” “invoice” or “PDF” link that asks you to sign in to Microsoft as suspect, even when it comes from a contact you know. Their mailbox may be the compromised one.
  2. In Microsoft 365, check Entra for devices you don’t recognize and review inbox rules on finance and sales mailboxes.
  3. If you find a rogue device, disable the account and revoke sessions first, then delete the device, remove unknown sign-in methods, and reset the password.
  4. Confirm any payment-change request with a phone call to a number you already have.

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