Windows Phone Link Exploited by CloudZ RAT to Steal Credentials and OTPs

Windows Phone Link Exploited by CloudZ RAT to Steal Credentials and OTPs

Windows Phone Link Exploited by CloudZ RAT to Steal Credentials and OTPs

https://thehackernews.com/2026/05/windows-phone-link-exploited-by-cloudz.html

Publish Date: 2026-05-06 04:34:00

Source Domain: thehackernews.com

Ravie LakshmananMay 06, 2026Endpoint Security / Threat Intelligence

Cybersecurity researchers have disclosed details of an intrusion that involved the use of a CloudZ remote access tool (RAT) and a previous undocumented plugin dubbed Pheno with the aim of facilitating credential theft.

“According to the functionalities of the CloudZ RAT and Pheno plugin, this was with the intention of stealing victims’ credentials and potentially one-time passwords (OTPs),” Cisco Talos researchers Alex Karkins and Chetan Raghuprasad said in a Tuesday analysis.

What makes the attack novel is that CloudZ uses the custom Pheno plugin to hijack the established PC-to-phone bridge by abusing the Microsoft Phone Link application, permitting the plugin to monitor for active Phone Link processes and potentially intercept sensitive mobile data like SMS and one-time passwords (OTPs) without the need for deploying malware on the phone. 

The findings demonstrate how legitimate cross-device syncing features can expose unintended attack pathways to credential theft and help bypass two-factor authentication. What’s more, it obviates the need to compromise the mobile device itself.

The malware, per the cybersecurity company, has been put to use as part of an intrusion that’s been active since at least January 2026. The activity has not been attributed to any known threat actor or group.

Built into Windows 10 and Windows 11, Phone Link offers a way for users to pair their computer with an Android device or iPhone over Wi-Fi and Bluetooth, allowing users to make or take phone calls, send messages, and dismiss notifications.

Unknown threat actors have been observed attempting to leverage the application using CloudZ RAT and Pheno to confirm Phone Link activity on a victim environment and then access the SQLite database file used by the program to store the synchronized phone data. 

The attack chain is said to have employed an as-yet-undetermined initial access method to obtain a foothold…

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