Are You at Risk from Microsoft Phishing? How Hackers Are Exploiting ADFS Redirects to Steal Your 365 Logins

August 20, 2025
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4 min
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Phishing attacks have taken a more sophisticated turn with hackers exploiting trusted Microsoft infrastructure. By leveraging ADFS redirects, these cybercriminals have found a way to bypass traditional security measures and sneak past some MFA protections. This blog delves into what exactly is at stake, the potential risks to your data, and the actionable steps you can take to safeguard your Microsoft 365 credentials.

What Data Points Were Leaked?

When hackers target Microsoft 365 users through ADFS redirect phishing, they’re after more than just an email address. Here’s what’s typically at risk:

Credentials in the Crosshairs

  • Usernames and Passwords: The main goal is to steal your login details. Attackers use fake ADFS (Active Directory Federation Services) login screens, making it almost impossible for the average user to spot the difference.
  • Session Cookies: Some campaigns go a step further, capturing session tokens. With these, attackers can bypass multi-factor authentication (MFA) and access your account as if they were you.
  • Personal Identifiable Information (PII): If attackers get access to the account, they can pull names, contact details, organizational roles, and more.

How ADFS Redirects Enable Theft

Phishing attacks using ADFS redirects are cunning. Instead of sending you to a shady-looking site, hackers exploit trusted Microsoft infrastructure. They trick you into clicking a link that appears legitimate, but it secretly reroutes your login through a malicious server.

  • The attacker sets up a phishing page that mimics your company’s login portal.
  • When you enter credentials, the site passes your info through to Microsoft—so you’re actually logging in—but not before copying your details for the attacker.

The Role of bluegraintours.com

This domain has popped up in recent campaigns. It acts as a middleman, capturing every keystroke and session detail:

  • Redirect Domain: bluegraintours[.]com is used to intercept the login flow, harvest your credentials, and then pass you on to Microsoft so you don’t notice anything unusual.
  • Session Hijack: By acting as an invisible hop, it collects tokens that allow hackers to impersonate you—even if you use MFA.

These methods are designed to be stealthy. Many users don’t realize they’ve been compromised until it’s too late, which is why understanding exactly what’s at risk is so critical.

Should You Be Worried?

Phishing attacks are nothing new. But when cybercriminals start using trusted domains—like Microsoft 365’s own servers—to slip past your radar, the threat gets a whole lot more personal. Here’s why this isn’t just another “change your password and move on” situation.

The Real Impact on Individuals

When your data is part of a breach, the fallout isn’t just about spam emails or annoying pop-ups. The risks are real and can be serious:

  • Identity Theft: Stolen credentials can let attackers impersonate you, open new accounts, or drain your existing ones.
  • Reputation Damage: If someone uses your account to send malicious emails, it can harm your relationships, both at work and in your personal life.

It’s not just a theoretical risk. Microsoft 365 is the backbone of daily operations for millions, and a compromised account can mean business disruption, lost trust, or worse.

Why Trusted Domains Make This Different

Let’s be blunt: most people trust Microsoft. So when an email comes from what appears to be a legitimate Microsoft 365 server, even the most cautious among us can get caught off guard. Attackers exploiting this trust are playing on the fact that:

  • Security Warnings May Be Bypassed: Standard security tools might not flag messages from trusted domains.
  • Human Nature Kicks In: We’re wired to trust familiar brands. Hackers know this—and use it.

No flashy red warnings. No obvious signs. That’s why this method is so effective, and so concerning.

What It Means for Microsoft 365 Users

If you rely on Microsoft 365 for work or personal use, you’re in the crosshairs. The consequences go beyond just your inbox:

  • Organization-wide Risk: A single compromised account can be the entry point for a much larger attack. Think ransomware, data leaks, or company-wide outages.
  • Difficulty Detecting Attacks: These phishing emails often look indistinguishable from legitimate communication, making it hard for users and IT teams to spot the threat in time.

This is where advanced security tools come into play. Solutions like Cloaked, for example, help by detecting suspicious behavior—even when an email looks like it’s come from a safe source. They add a layer of protection that standard spam filters can’t provide, especially when the attack is coming from a trusted platform.

The short answer? Yes, there’s reason to be concerned. But with the right knowledge and tools, you don’t have to be caught off guard.

What Should Be Your Next Steps?

1. Monitor for Suspicious ADFS Activity

Active Directory Federation Services (ADFS) is a prime target for attackers aiming to breach corporate networks. Staying vigilant is non-negotiable. Here’s how you can keep a close watch:

  • Regularly audit ADFS logs: Watch for unfamiliar IP addresses, unexpected authentication attempts, or changes in configuration settings. These are classic warning signs.
  • Review access permissions: Only allow necessary accounts. Disable or remove any accounts that are no longer needed.
  • Check for failed login attempts: Multiple failures in a short window often point to brute-force attempts.

For organizations that want a more streamlined approach, Cloaked can help. Their product provides detailed visibility into authentication flows, making it much easier to spot the warning signs early—before they become major incidents.

2. Scrutinize Ad Links and Identify Malicious Domains

Phishing campaigns often rely on clever, lookalike domains and misleading ad links. Don’t take any link at face value:

  • Hover before you click: Always check where a link points before clicking. Look for small spelling errors or odd subdomains—attackers count on quick clicks.
  • Use trusted browser extensions: Tools that flag known malicious sites or suspicious URLs can be lifesavers.
  • Educate your team: Make sure everyone knows how to recognize a fake link. Even seasoned IT pros get caught off guard sometimes.
  • Regularly update blocklists: Keep your organization’s threat intelligence up to date. Block access to known phishing domains at the network level.

3. Migrate from ADFS to Azure AD for Enhanced Security

Sticking with legacy authentication systems like ADFS is risky. Microsoft’s own guidance stresses the security improvements in Azure Active Directory (Azure AD):

  • Cloud-based authentication: Azure AD offers advanced threat protection, conditional access, and multifactor authentication out of the box.
  • Automatic updates: With Azure AD, you benefit from Microsoft’s continuous security enhancements—no more manual patching or outdated protocols.
  • Easier breach response: If something goes wrong, Azure AD’s forensic tools and logging are far superior, making investigation and cleanup faster.

If you’re still running ADFS, now is the time to start planning your migration. Cloaked supports integrations with Azure AD, making the transition smoother and helping secure your authentication flow from end to end.

Bottom line: Don’t just react—act. Proactively monitor your environment, train your team to spot the traps, and invest in modern authentication tools. Attackers are always looking for cracks. Your job is to seal them tight.

Cloaked FAQs Accordion

Frequently Asked Questions

Cloaked is a privacy-first tool that lets you create secure aliases for emails, phone numbers, and more—shielding your real identity online. With Cloaked, your personal info stays protected from breaches, scams, and tracking.
Look for urgent messages, unfamiliar links, or strange sender addresses. With Cloaked aliases, it’s easier to identify which site may have leaked your contact details and ignore suspicious communications.
Yes. If a Cloaked alias starts receiving spam, you can pause, delete, or rotate it. This eliminates the need to change your real email or phone number.
They do different jobs. VPNs protect browsing. Password managers secure logins. Cloaked protects your real identity at the contact level—emails, phones, and personal identifiers.
Definitely. Use Cloaked aliases to avoid spam and limit exposure to companies that may mishandle or leak your data.
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