Microsoft warns of new “Payroll Pirate” scam stealing employees’ direct deposits

Microsoft is warning of an active scam that diverts employees’ paycheck payments to attacker-controlled accounts after first taking over their profiles on Workday or other cloud-based HR services.

Payroll Pirate, as Microsoft says the campaign has been dubbed, gains access to victims’ HR portals by sending them phishing emails that trick the recipients into providing their credentials for logging in to the cloud account. The scammers are able to recover multi-factor authentication codes by using adversary-in-the-middle tactics, which work by sitting between the victims and the site they think they’re logging in to, which is, in fact, a fake site operated by the attackers.

Not all MFA is created equal

The attackers then enter the intercepted credentials, including the MFA code, into the real site. This tactic, which has grown increasingly common in recent years, underscores the importance of adopting FIDO-compliant forms of MFA, which are immune to such attacks.

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