PUBlished on
June 30, 2023
updated on
November 5, 2025

Behind the Breach: Phishing & Token Compromise in SaaS Environments

OBSIDIAN THREAT RESEARCH TEAM

Earlier this year, Gartner published a new research report focused on the human component of cybersecurity which explored trends around cybersecurity leadership, challenges with hiring, and attacks targeting individuals. One notable prediction—that by 2025, lack of talent or human failure will be responsible for over half of significant cyber incidents—resonated particularly with our threat team because of a recent security incident we observed firsthand.

When a client in the technology sector approached Obsidian regarding a security assessment, a successful SaaS account takeover attempt was uncovered in their environment. In this case, a victim user had fallen for an email phishing campaign and failed to take corrective action even after recognizing what had happened.

Below, we’ll review the timeline of events related to this incident, share key takeaways and practical guidance, and reflect on Gartner’s prediction about human responsibility in cybersecurity.

What happened?

The incident began with a targeted user falling for a phishing email that used the guise of enrollment in company benefits. The email was sent from a seemingly legitimate external domain, included a mention of the target’s full name, and stated a clear end date for enrollment, providing a sense of legitimacy and urgency. The user signed in and used SMS for their multi-factor authentication.

At the same time, the victim credentials and MFA code were intercepted and reused by the attacker via an AWS IP address originating in an entirely different state.

Only a few minutes later, the victim user seemed to recognize what had occurred and responded by reporting and deleting the phishing email. This prompted a second round of security scanning, and yet, it wasn’t caught by Defender for Office 365. The user also failed to take any further corrective action by resetting their password or existing sessions, allowing the attacker to maintain access.

The adversary was observed digging into the victim account from a different AWS data center and tapping into prior exchanged and intercepted session tokens. When our team began investigation, it was clear that there were several parallel sessions between the victim user and attacker during this period.

After connecting to the client environment, two especially significant threat events were detected by the Obsidian platform:

The email was submitted for rescanning one final time, this time by a systems administrator. Once again, the email came back marked as safe. Because the systems administrator is not a security analyst, they are not obligated to conduct security checks on the victim user—nor were they even able to because of insufficient visibility into the SaaS environment. As a result, incident remediation did not occur until later security team engagement.

What are the takeaways, and what can I do to remain secure?

While it is an excellent firsthand example of several adversarial techniques used against SaaS environments and security measures like MFA, this incident is far from unique or isolated. To that end, there are three key takeaways and security recommendations we can provide:

In the wake of this incident, Gartner’s assessment of human vulnerability in cybersecurity holds true.

“Gartner predicts that by 2025, lack of talent or human failure will be responsible for over half of significant cyber incidents. The number of cyber and social engineering attacks against people is spiking as threat actors increasingly see humans as the most vulnerable point of exploitation.”

As your organization continues to invest in security education and protective solutions, pay some mind to the tools and strategies you have in place to rapidly address incidents where these measures fail. Account for the realities of social engineering and insider risk as you plan out the future of your organizational security.

Frequently Asked Questions (FAQs)

What is a SaaS session token compromise and how does it impact security?

A SaaS session token compromise occurs when an attacker intercepts and reuses a valid authentication token, allowing unauthorized access to a victim's SaaS account without needing their password. This type of attack can be particularly difficult to detect, as attackers appear to be legitimate users. If left unchecked, it enables ongoing, discreet access to sensitive data and applications.

How can attackers bypass multi-factor authentication in SaaS phishing attacks?

Attackers can bypass multi-factor authentication (MFA) by capturing session tokens and one-time MFA codes at the time of login. Once obtained, these credentials and tokens can be immediately reused from a different device or location, sometimes before the user realizes the breach occurred. Sophisticated phishing campaigns can also trick users into enrolling new MFA devices controlled by the attacker.

Why did traditional security tools fail to stop the phishing attack described in the incident?

In the reviewed incident, standard security measures like Defender for Office 365 and email rescanning failed to flag the phishing attempt as malicious. Attackers often use well-crafted emails that appear legitimate, evading automated scanning tools. Furthermore, security teams may lack sufficient visibility into SaaS environments to identify token-related compromises, delaying effective response.

What immediate actions should a user take after falling for a phishing email in a SaaS environment?

If a user suspects they have fallen for a phishing email, they should immediately reset their password and terminate any active sessions in the affected accounts. Promptly reporting the incident to the security team is critical, but users must also ensure account credentials and MFA enrollments are updated to prevent attackers from maintaining access.

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