Russian APT Hackers Exploit Device Code Phishing to Circumvent MFA Security

A newly discovered campaign orchestrated by the Russian state-affiliated Advanced Persistent Threat (APT) group, known as Storm-2372, has raised alarms across the cybersecurity landscape.

The group has adopted a sophisticated device code phishing tactic to bypass multi-factor authentication (MFA) and access high-value corporate systems.

This represents an alarming evolution in social engineering, exposing vulnerabilities in even advanced security frameworks and underscoring the urgent need for organizations to adopt adaptive, context-aware defense mechanisms.

What Is Device Code Phishing and How It Works

Device code phishing leverages loopholes in the OAuth device authorization flow, a mechanism originally meant to facilitate authentication for devices with limited user interfaces.

Storm-2372 has weaponized this process to gain unauthorized access to corporate accounts stealthily.

The attack sequence typically begins with phishing messages sent via email or SMS, urging recipients to authenticate using a device code.

MFA Security
Device code phishing attack sequence

These messages often direct victims to legitimate-looking login portals, such as Microsoft’s authentication page.

Unsuspecting users, under the impression they are following standard procedures, enter attacker-generated device codes.

Once the victim grants access, the attackers can infiltrate the target’s systems without activating conventional MFA challenges.

This method allows malicious actors to remain under the radar, as it exploits trusted authentication platforms and bypasses standard verification layers.

Targeted Sectors and Global Scope of the Campaign

Storm-2372 has set its sights on industries that possess critical and sensitive data or influence high-stakes decision-making.

The group’s focus includes sectors such as government, technology, financial institutions, defense, healthcare, and media.

The campaign appears to prioritize espionage, national security threats, and economic sabotage, alongside attempts to exploit cloud services, steal credentials, and launch disinformation campaigns.

This operation has left traces globally, with confirmed activity observed in the United States, Ukraine, the United Kingdom, Germany, Canada, and Australia.

The group’s ability to adapt and scale its attacks presents a significant challenge to international cybersecurity efforts.

To preempt potential breaches, organizations should scrutinize unusual OAuth authorization attempts, especially those originating from unknown apps or unexpected geolocations.

Phishing messages carrying device codes that request urgent authentication should also raise suspicion.

IT teams should closely monitor access and login anomalies, including persistent sessions following password updates or logins from unfamiliar IP addresses.

Regular auditing of endpoint and cloud access logs is crucial for identifying malicious activities tied to OAuth abuse.

Mitigation strategies include enabling conditional access policies to restrict login attempts based on device compliance and location, deploying phishing-resistant MFA solutions like FIDO2 security keys, and educating employees about sophisticated phishing attacks.

monitoring third-party OAuth token requests and auditing permissions can also enhance resilience against such threats.

This campaign highlights the growing sophistication of APT groups in exploiting identity-based vulnerabilities.

The traditional perimeter-based security model is becoming insufficient, with identity and access controls emerging as the new frontline of cyber defense.

Organizations must stay ahead of evolving threats by implementing modern security techniques, fostering a culture of cybersecurity awareness, and continuously monitoring for anomalous behaviors.

As a trusted leader in cybersecurity, SOCRadar emphasizes an intelligence-driven approach by offering tools like its Extended Threat Intelligence (XTI) platform.

These solutions integrate phishing-resistant MFA protocols, enforce stringent access controls, and provide continuous monitoring to detect and mitigate emerging threats effectively.

The Storm-2372 campaign is a reminder of the rapidly changing threat landscape, calling for vigilance and innovation to secure critical assets and infrastructure.

Staying informed, adopting proactive defensive measures, and nurturing organizational resilience are now non-negotiable in the fight against covert cyber threats.

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Mandvi
Mandvi
Mandvi is a Security Reporter covering data breaches, malware, cyberattacks, data leaks, and more at Cyber Press.

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