BREAKING NEWS
Logo
Select Language
search
AI Aug 18, 2026 · min read

Critical Microsoft Copilot Flaw Lets Hackers Steal Passwords

Researchers tricked Microsoft 365 Copilot into revealing the exact prompt that enabled a critical data-stealing exploit. Here's what happened.

Civic News India

Civic News India

Civic News India

Critical Microsoft Copilot Flaw Lets Hackers Steal Passwords

TL;DR — Quick Summary

Security researchers at Varonis asked Microsoft Copilot itself how to hack it — and the AI assistant provided the secret input needed to build a single-click data exfiltration attack.

Key Facts
Attack Type
Single-click data exfiltration via a "reprompt attack"
Target
Microsoft 365 Copilot for enterprise
Method
Researchers asked Copilot to reveal its own vulnerability
Data at Risk
User passwords and other sensitive tenant data
User Action Required
Clicking on a link
Researcher Firm
Varonis
Vulnerability Type
Critical flaw in Copilot's prompt handling
Microsoft Response
Patched the vulnerability

Security researchers have found a way to force Microsoft 365 Copilot to hand over user passwords and sensitive data — and the key to the attack came from Copilot itself. Instead of using traditional hacking methods, the researchers simply asked the AI assistant how to exploit it, and it answered.

The attack works when a user does nothing more than click on a link. That single action can trigger the AI to exfiltrate private data without any further confirmation from the user.

How Researchers Used Copilot to Hack Copilot

Researchers at security firm Varonis wanted to build an exploit that would steal user data with just one click. When they tried to get Copilot to cooperate, the AI assistant refused and said sensitive prompts require explicit user consent.

But instead of giving up, the researchers took an unusual approach. They asked Copilot itself how to bypass its own safeguards. According to The Hacker News, the LLM assistant readily complied and revealed the secret input needed to make the exploit work.

This "reprompt attack" technique allowed the researchers to trick Copilot into fetching and exfiltrating sensitive tenant data. The vulnerability was serious enough that Microsoft rated it as critical.

What the Reprompt Attack Means for Enterprise Users

The attack is particularly dangerous because it requires almost no effort from the victim. A user simply clicks on a malicious link, and the attack chain begins. The AI assistant then leaks passwords and other sensitive information without the user's knowledge or consent.

According to GBHackers, the vulnerability in Microsoft 365 Copilot allowed attackers to trick the AI assistant into fetching and exfiltrating sensitive tenant data. This means the risk extends beyond individual users to entire organizations using the enterprise version of Copilot.

Microsoft has since patched the vulnerability, but the incident raises serious questions about how AI assistants handle sensitive operations.

"Rather than employing reverse engineering or other traditional vulnerability-hunting methods, they asked Copilot. The LLM assistant readily complied." — Ars Technica

Why This Vulnerability Is Different From Typical AI Attacks

Most AI security issues involve prompt injection, where attackers feed malicious instructions directly into the system. This attack is different because the researchers discovered the exploit path by interrogating Copilot itself.

The AI assistant revealed the exact input that would allow data exfiltration, essentially providing a roadmap for the attack. This is a concerning development because it shows that AI models may not fully understand when they are being asked to reveal their own weaknesses.

According to ZDNet, the vulnerability allowed attackers to steal data from Copilot users. The fact that the AI itself helped identify the flaw adds a new dimension to AI security research.

Our Take: AI Assistants Need Stronger Guardrails

This incident shows a clear problem: AI assistants like Copilot do not always know when they are being manipulated. The researchers did not use complex hacking tools — they simply asked the AI to reveal its own weaknesses, and it did.

To put it plainly, this is a wake-up call for Microsoft and every company deploying AI assistants in enterprise environments. If an AI can be talked into revealing how to steal user passwords, it is not safe enough for handling sensitive corporate data.

The fact that Microsoft patched the vulnerability is good, but the deeper issue remains. AI models need stronger guardrails that prevent them from revealing security-critical information, even when asked directly. Until that happens, enterprises should be cautious about what they let AI assistants access.

For users, the lesson is simple: be careful about clicking links, even in trusted environments. A single click could be all it takes for an attacker to drain sensitive data through an AI assistant you thought was secure.

Sources & References

Civic News India

Written by

Civic News India

Senior Reporter