Microsoft has confirmed a major victory against cybercrime, announcing the disruption of RedVDS, a virtual desktop platform linked to phishing, malware, and business email compromise (BEC). The platform, active in the US and UK, reportedly caused over $40 million in damages in 2025, targeting businesses of all sizes. Microsoft collaborated with Europol and German law enforcement to seize RedVDS servers and halt ongoing attacks.
RedVDS allowed cybercriminals to rent disposable Windows cloud servers for as little as $24 per month. These “throwaway” virtual machines made fraudulent operations cheap, scalable, and difficult to trace. Criminals used the platform to deploy phishing campaigns, spread malware, and carry out AI-powered scams, including deepfake attacks on corporate executives. Microsoft warned that services like RedVDS have quietly become a key driver of cyber-enabled crime worldwide, targeting businesses, employees, and communities.
Investigators noted that RedVDS users leveraged AI tools to enhance phishing emails and craft convincing deepfakes, making it harder for victims to detect scams. This fusion of AI and disposable cloud infrastructure represents a new wave of cybercrime, pushing financial losses and operational risks to unprecedented levels. Businesses are now facing more sophisticated attacks that blend automation, deception, and anonymity.
The takedown of RedVDS highlights the power of international cooperation in cybercrime prevention. Microsoft, Europol, and German authorities worked together to locate, seize, and shut down servers linked to the platform. Officials stressed that such joint efforts are critical for disrupting online criminal networks that exploit virtual technologies to defraud businesses globally.
Experts warn that RedVDS is just one of many platforms enabling cybercrime at scale. Companies are urged to strengthen cybersecurity measures, including employee training, multi-factor authentication, and advanced email filtering, to reduce exposure to phishing and BEC attacks. Microsoft emphasized that vigilance and proactive security practices remain essential as criminals continue to innovate with AI and cloud-based tools.
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