GhostCode attackers abuse device codes to take over Microsoft 365 accounts

Microsoft 365 users are being tricked into handing over access to their accounts by a new phishing kit, GhostCode, that exploits a weakness in a legitimate device authorization flow. Researchers in eSentire’s threat response unit identified the campaign in late August 2026. The kit abuses Microsoft’s OAuth 2.0 device authorization grant flow, a legitimate mechanism designed to enable authentication from IoT devices, smart TVs, printers, or other devices that cannot easily support a conventional