Critical Copilot Vulnerability Enabled Theft of 2FA Codes from Users

Microsoft patched a critical vulnerability in its M365 Copilot AI platform after researchers demonstrated a proof-of-concept exploit that could retrieve two-factor authentication codes and other sensitive data from accessible emails. The root cause is that AI bots cannot distinguish between user instructions and those hidden in third-party content they process. Attackers bypassed guardrails by using markup language or HTML tags to exfiltrate data to their servers.