Microsoft seizes RedVDS infrastructure, disrupts fast-growing cybercrime marketplace | CyberScoop<\/title> <meta name=\"description\" content=\"The service became a prolific tool for cybercriminals in the past year, as it facilitated thousands of attacks involving credential theft, account takeovers, mass phishing and payment diversion fraud.\"> <link rel=\"canonical\" href=\"https:\/\/cyberscoop.com\/microsoft-seizes-disrupts-redvds-cybercrime-marketplace\/\"> <meta property=\"og:locale\" content=\"en_US\"> <meta property=\"og:type\" content=\"article\"> <meta property=\"og:title\" content=\"Microsoft seizes RedVDS infrastructure, disrupts fast-growing cybercrime marketplace\"> <meta property=\"og:description\" content=\"The service became a prolific tool for cybercriminals in the past year, as it facilitated thousands of attacks involving credential theft, account takeovers, mass phishing and payment diversion fraud.\"> <meta property=\"og:url\" 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class=\"ad__inner\"> <span class=\"screen-reader-text\">Advertisement<\/span> <\/div>\n<\/div>\n<p> <main id=\"main\" role=\"main\" tabindex=\"-1\"> <\/p>\n<div class=\"ad ad--top ad--top-mobile\">\n<div class=\"ad__inner\"> <span class=\"screen-reader-text\">Advertisement<\/span> <\/div>\n<\/div>\n<section id=\"stickybar\" class=\"stickybar stickybar--newsletter js-stickybar\" readability=\"0.82\"> <button class=\"stickybar__close js-stickybar-close\" aria-controls=\"stickybar\"> <svg class=\"icon icon--close\" width=\"21\" height=\"22\" viewBox=\"0 0 21 22\" fill=\"none\"><path d=\"m.822.518-.805.805L9.695 11 .017 20.678l.805.805 9.678-9.678 9.677 9.678.806-.805L11.305 11l9.678-9.677-.806-.805-9.677 9.677L.822.518Z\" fill=\"currentColor\" \/><\/svg> <span class=\"visually-hidden\">Close<\/span> <\/button> <\/section>\n<article class=\"single-article content\">\n<div class=\"single-article__container js-single-article-content\">\n<header class=\"single-article__header \" readability=\"27.60094637224\">\n<div class=\"single-article__header-content\" readability=\"38.336798336798\">\n<ul class=\"single-article__eyebrow\">\n<li class=\"single-article__category\"> <a class=\"single-article__category-link\" href=\"https:\/\/cyberscoop.com\/microsoft-seizes-disrupts-redvds-cybercrime-marketplace\/\"> <span>Cybercrime<\/span> <\/a> <\/li>\n<\/ul>\n<p> The service became a prolific tool for cybercriminals in the past year, as it facilitated thousands of attacks involving credential theft, account takeovers, mass phishing and payment diversion fraud. <\/p>\n<p>  <br \/>\n<audio id=\"audio-player\" src=\"https:\/\/wp-tts-cdn.api.scpnewsgrp.com\/cyberscoop\/87403\/english.openai.mp3\"><\/audio> <\/p>\n<div readability=\"11\">\n<div>\n<p>Listen to this article<\/p>\n<p>  <\/p>\n<p>0:00<\/p>\n<\/p><\/div>\n<p>  <\/p>\n<p> <span id=\"tts-tooltip\">Learn more.<\/span> <span> This feature uses an automated voice, which may result in occasional errors in pronunciation, tone, or sentiment. <\/span> <\/p>\n<\/div>\n<p>  <\/div>\n<div class=\"single-article__cover-wrap\">\n<figure class=\"single-article__cover\"> <img data-recalc-dims=\"1\" fetchpriority=\"high\" width=\"640\" height=\"360\" src=\"https:\/\/i0.wp.com\/ddi.mohflo.net\/wp-content\/uploads\/2026\/01\/microsoft-seizes-redvds-infrastructure-disrupts-fast-growing-cybercrime-marketplace.png?resize=640%2C360&ssl=1\" class=\"single-article__cover-image wp-post-image\" alt=\"Microsoft seized the infrastructure used to run RedVDS, a cybercrime marketplace that facilitated thousands of attacks globally. (Courtesy of Microsoft)\" decoding=\"async\" fetchpriority=\"high\" srcset=\"https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2026\/01\/microsoft-seizes-redvds-infrastructure-disrupts-fast-growing-cybercrime-marketplace-1.png 1246w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2026\/01\/microsoft-seizes-redvds-infrastructure-disrupts-fast-growing-cybercrime-marketplace-1.png?resize=300,168 300w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2026\/01\/microsoft-seizes-redvds-infrastructure-disrupts-fast-growing-cybercrime-marketplace-1.png?resize=768,431 768w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2026\/01\/microsoft-seizes-redvds-infrastructure-disrupts-fast-growing-cybercrime-marketplace-1.png?resize=1024,575 1024w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2026\/01\/microsoft-seizes-redvds-infrastructure-disrupts-fast-growing-cybercrime-marketplace-1.png?resize=600,337 600w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2026\/01\/microsoft-seizes-redvds-infrastructure-disrupts-fast-growing-cybercrime-marketplace-1.png?resize=1200,675 1200w\" sizes=\"(max-width: 1200px) 100vw, 1200px\"><figcaption> Microsoft seized the infrastructure used to run RedVDS, a cybercrime marketplace that facilitated thousands of attacks globally. (Courtesy of Microsoft) <\/figcaption><\/figure>\n<\/p><\/div>\n<\/header>\n<div class=\"single-article__content\">\n<div class=\"single-article__content-inner has-drop-cap\"> <html readability=\"57.102404965089\"><body readability=\"119.28429423459\"><\/p>\n<p>Microsoft announced Wednesday that it worked with international law enforcement to seize infrastructure used to run cybercrime subscription service RedVDS and organized civil actions in the United States and United Kingdom to disrupt its further use. <\/p>\n<p>RedVDS has enabled at least $40 million in fraud losses in the U.S. since March 2025, according to Microsoft. Victims that are joining Microsoft as co-plaintiffs in the civil action include Alabama-based H2 Pharma, a pharmaceutical company that lost more than $7.3 million, and Florida-based Gatehouse Dock Condominium Association, which was tricked out of nearly $500,000. <\/p>\n<p>\u201cFor as little as US $24 a month, RedVDS provides criminals with access to disposable virtual computers that make fraud cheap, scalable and difficult to trace,\u201d Steven Masada, assistant general counsel at Microsoft Digital Crimes Unit, said in a blog post. \u201cIt provides access to cheap, effective, and disposable virtual computers running unlicensed software, including Windows, allowing criminals to operate quickly, anonymously and across borders.\u201d<\/p>\n<p>Microsoft said a joint operation with Europol and authorities in Germany allowed it to seize RedVDS\u2019s infrastructure and take the marketplace offline. Cybercriminals used the site, which included a loyalty program and referral bonuses for customers, to send high-volume phishing attacks, host infrastructure for scams and facilitate fraud such as business email compromise.<\/p>\n<div class=\"ad ad--inline_1 \">\n<div class=\"ad__inner\"> <span class=\"screen-reader-text\">Advertisement<\/span> <\/div>\n<\/div>\n<p>Microsoft customers were among those impacted by RedVDS\u2019s tools and services. <\/p>\n<p>\u201cSince September 2025, RedVDS\u2011enabled attacks have led to the compromise or fraudulent access of more than 191,000 Microsoft email accounts across over 130,000 organizations worldwide,\u201d Masada said in the blog post. \u201cThese figures represent only a subset of the impacted accounts across all technology providers, illustrating how quickly this infrastructure increases the scale of cyberattacks.\u201d<\/p>\n<p>Over the course of a month, more than 2,600 RedVDS virtual machines sent Microsoft customers an average of one million phishing messages per day, Masada added. <\/p>\n<p>RedVDS facilitated payment diversion fraud against organizations like H2 Pharma and the Gatehouse Dock Condominium Association through business email compromise. The marketplace was also used to compromise the accounts of realtors, escrow agents and title companies to divert payments, according to Microsoft.<\/p>\n<p>More than 9,000 customers, many in Canada and Australia, were directly impacted by real estate-related fraud aided by RedVDS. Microsoft Threat Intelligence said other scams enabled by RedVDS hit organizations in construction, manufacturing, healthcare, logistics, education and legal services.<\/p>\n<div class=\"ad ad--inline_1 \">\n<div class=\"ad__inner\"> <span class=\"screen-reader-text\">Advertisement<\/span> <\/div>\n<\/div>\n<p>Researchers said the marketplace\u2019s user interface was loaded with features that allowed eager cybercriminals to purchase unlicensed and inexpensive Windows-based remote desktop protocol servers with full administrator control. RedVDS reused a single, cloned Windows host image across the service, which allowed researchers to find unique technical fingerprints.<\/p>\n<p>The group that develops and operates RedVDS is tracked by Microsoft as Storm-2470. At least five additional cybercrime groups and cybercriminals who used the <a href=\"https:\/\/cyberscoop.com\/microsoft-seizes-phishing-sites-raccoono365\/\">Racoon0365 phishing service<\/a> prior to its takedown in October were also using RedVDS infrastructure, according to Microsoft Threat Intelligence.<\/p>\n<p>RedVDS\u2019s site first launched in 2019 and has remained in operation since providing servers in the U.S., U.K., Canada, France, the Netherlands and Germany. The marketplace \u201chas become a prolific tool for cybercriminals in the past year, facilitating thousands of attacks, including credential theft, account takeovers and mass phishing,\u201d researchers said in a report.<\/p>\n<p>RedVDS rented servers from third-party hosting providers, including at least five hosting companies in the U.S., Canada, U.K., France and the Netherlands. This allowed RedVDS to provision IP addresses in geolocations close to targets, allowing cybercriminals to evade location-based security filters and blend in with normal data center traffic, researchers added. <\/p>\n<p>\u201cCybercrime today is powered by shared infrastructure, which means disrupting individual attackers is not enough,\u201d Masada said. \u201cThrough this coordinated action, Microsoft has disrupted RedVDS\u2019s operations, including seizing two domains that host the RedVDS marketplace and customer portal, while also laying the groundwork to identify the individuals behind them.\u201d<\/p>\n<p><\/body> <\/p>\n<footer class=\"single-article__footer\" readability=\"2.9092356687898\">\n<div class=\"author-card\" readability=\"14\">\n<div class=\"author-card__avatar\">\n<figure class=\"author-card__image-wrap\"> <img data-recalc-dims=\"1\" decoding=\"async\" class=\"author-card__image\" src=\"https:\/\/i0.wp.com\/ddi.mohflo.net\/wp-content\/uploads\/2026\/01\/microsoft-seizes-redvds-infrastructure-disrupts-fast-growing-cybercrime-marketplace.jpg?w=640&ssl=1\" alt=\"Matt Kapko\"> <\/figure>\n<\/p><\/div>\n<p><h4 class=\"author-card__name\">Written by Matt Kapko<\/h4>\n<p> Matt Kapko is a reporter at CyberScoop. His beat includes cybercrime, ransomware, software defects and vulnerability (mis)management. The lifelong Californian started his journalism career in 2001 with previous stops at Cybersecurity Dive, CIO, SDxCentral and RCR Wireless News. 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{"id":8260,"date":"2026-01-14T09:00:00","date_gmt":"2026-01-14T15:00:00","guid":{"rendered":"https:\/\/cyberscoop.com\/?p=87403"},"modified":"2026-01-14T09:00:00","modified_gmt":"2026-01-14T15:00:00","slug":"microsoft-seizes-redvds-infrastructure-disrupts-fast-growing-cybercrime-marketplace","status":"publish","type":"post","link":"https:\/\/ddi.mohflo.net\/index.php\/2026\/01\/14\/microsoft-seizes-redvds-infrastructure-disrupts-fast-growing-cybercrime-marketplace\/","title":{"rendered":"Microsoft seizes RedVDS infrastructure, disrupts fast-growing cybercrime marketplace"},"content":{"rendered":"