Security flaws in Microsoft's Azure ecosystem enable cybercriminals to create deceptive applications that imitate official services like the Azure Portal. Varonis discovered that attackers can bypass safeguards using invisible Unicode characters, leading to potential phishing attacks.

A recent investigation revealed a critical loophole in Azure applications that allowed hackers to create malicious apps using reserved Microsoft names. This vulnerability enabled attackers to gain unauthorized access and escalate privileges within Microsoft 365 environments, posing significant risks to organizations.