A surge in phishing campaigns abusing Microsoft’s OAuth device code authorization flow has been observed with multiple threat clusters using the technique to gain unauthorized access to Microsoft 365 accounts.
According to a new advisory published today by Proofpoint, both state-aligned and financially motivated actors are leveraging social engineering to trick users into approving malicious applications, enabling account takeover, data theft and further compromise.
The attacks rely on the OAuth 2.0 device authorization grant, a legitimate process designed to help users sign in on devices with limited input capabilities.
Once a victim enters a device code generated by an attacker-controlled application on Microsoft’s trusted verification page, the threat actor receives a valid access token. That token can then be used to control the compromised M365 account.
QR Codes, Embedded Buttons and Hyperlinks
While device code phishing is not a new technique, Proofpoint observed a sharp increase in its use by September 2025.
The researchers noted unusually widespread campaigns that relied on QR codes, embedded buttons or hyperlinked text to initiate the attack chain. Lures often claimed to involve document sharing, token reauthorization or security verification.
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One campaign detected on December 8 used a fake shared document titled “Salary Bonus + Employer Benefit Reports 25.” Victims were sent emails from attacker-controlled addresses and directed to localized websites branded to match their organization.
Users were then prompted to enter a code on Microsoft’s device login page, inadvertently granting access to their accounts.
Proofpoint linked the growth of these campaigns to readily available phishing tools that simplify device code abuse. Two tools stood out:
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SquarePhish2, an updated phishing framework that uses QR codes and automates the OAuth device grant flow
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Graphish, a free phishing kit shared on vetted hacking forums that supports adversary-in-the-middle attacks and OAuth-based authorization abuse
Both tools are designed to be user-friendly and require limited technical skill, making them accessible to a wide range of threat actors.
Financial and State-Aligned Activity
Proofpoint said a financially motivated actor tracked as TA2723 began using device code phishing in October 2025, spoofing salary documents and shared files to lure victims.
The company also observed state-aligned activity, particularly from Russia-linked actors, adopting the technique as part of a broader shift toward passwordless phishing.
One suspected Russia-aligned group, UNK_AcademicFlare, targeted government, academic and transportation sectors in the US and Europe using compromised email accounts and spoofed OneDrive links to deliver device code phishing workflows.
According to Proofpoint, the expansion of these campaigns shows how quickly threat actors adapt legitimate authentication features for malicious ends.
The company said organizations should strengthen OAuth controls and train users not to enter device codes received from untrusted sources.
“Proofpoint assesses that the abuse of OAuth authentication flows will continue to grow with the adoption of FIDO compliant MFA controls.”
