Lapsus$ Hacking Group Is Back with Evolved Extortion Tactics

Resurgent Lapsus$ Group Reportedly Reforms, Integrating New Techniques and Focusing on Identity-Based Extortion

HIGH
January 7, 2026
4m read
Threat ActorCyberattackThreat Intelligence

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Executive Summary

Threat intelligence reports indicate that the Lapsus$ extortion group, which was significantly disrupted in 2022, has reformed and is active once again. This new iteration of the group appears to have evolved, incorporating tactics and techniques from other criminal syndicates. The primary shift in their methodology is a move towards more sophisticated identity-based extortion schemes. Rather than relying solely on data theft and leaking, the resurgent group is leveraging compromised employee identities to conduct more subtle, persistent, and damaging attacks. This evolution makes detection more challenging and raises the threat level for large enterprises, particularly in the technology sector.

Threat Overview

The original Lapsus$ group was infamous for its brazen attacks against major companies like Microsoft, Nvidia, and Okta. Their TTPs included a unique blend of social engineering, SIM swapping, and paying insiders for access. The group's primary goal was extortion, threatening to leak stolen source code and data if their demands were not met.

This new report suggests that the group's core members or affiliates have regrouped. The key evolution is the integration of techniques from other criminal operations and a refined focus on identity. This could mean they are moving beyond simple credential theft to more advanced forms of identity compromise, such as:

  • Manipulating SSO and federation services.
  • Abusing compromised identities to create persistent backdoors.
  • Targeting identity and access management (IAM) infrastructure directly.

By focusing on identity, the group can achieve deeper and more persistent access, making their extortion threats more potent.

Technical Analysis

While specific TTPs of the new group are still emerging, they are likely building upon their old playbook with new enhancements.

Lapsus$ MITRE ATT&CK Mapping (Historical & Evolved)

Impact Assessment

The resurgence of an advanced group like Lapsus$ poses a significant threat. Their proven ability to breach well-defended, major technology companies demonstrates their skill and determination. An identity-focused approach increases the potential impact, as it can lead to a complete takeover of an individual's corporate access, allowing for subtle data exfiltration, source code manipulation, and sabotage over a long period. The financial and reputational damage from a successful attack by this group can be immense.

Detection & Response

  • Identity Threat Detection and Response (ITDR): Deploy solutions that monitor for anomalous identity behavior, such as unusual MFA activity, suspicious privilege escalations, or access from unfamiliar locations.
  • Help Desk Monitoring: Train and equip IT help desk staff to recognize social engineering attempts. Implement strict identity verification procedures for all password reset or MFA device change requests.
  • MFA Log Analysis: Monitor MFA logs for signs of MFA fatigue attacks (i.e., multiple MFA pushes in a short time for a single user without a corresponding login attempt).
  • D3FEND Techniques: Utilize D3-UBA: User Behavior Analysis to baseline normal identity behavior and alert on deviations that could indicate a compromised account.

Mitigation

  • Phishing-Resistant MFA: The most effective defense against many of Lapsus$'s techniques (MFA fatigue, SIM swapping) is to deploy phishing-resistant MFA, such as FIDO2 security keys. This is a critical application of M1032 - Multi-factor Authentication.
  • Insider Threat Program: Develop a formal insider threat program to detect and deter employees from selling access to threat groups.
  • Strengthen Help Desk Processes: Remove the help desk as a weak link by implementing strong, multi-channel verification for any sensitive account actions.
  • Limit Access for New Employees/Devices: Implement policies that grant reduced access for a set period for new employees or when a user logs in from a new device, limiting the immediate impact of a compromised account.

Timeline of Events

1
January 7, 2026
This article was published

MITRE ATT&CK Mitigations

Deploying phishing-resistant MFA (e.g., FIDO2) is the most effective technical control against many of Lapsus$'s known TTPs, including MFA fatigue and SIM swapping.

Mapped D3FEND Techniques:

Train all employees, especially IT help desk staff, to recognize and resist social engineering attempts.

Implement policies and technical controls to limit the number of MFA pushes a user can receive, mitigating MFA fatigue attacks.

Mapped D3FEND Techniques:

D3FEND Defensive Countermeasures

To counter the specific identity-based attacks favored by Lapsus$, organizations must prioritize the deployment of phishing-resistant MFA. Standard push-based or TOTP MFA are vulnerable to the group's known MFA fatigue and social engineering tactics. The gold standard is FIDO2/WebAuthn, which uses hardware security keys or platform authenticators (like Windows Hello). This method is not susceptible to phishing or credential theft. A strategic rollout should target privileged users, administrators, developers with access to source code, and help desk staff first, as these are all high-value targets for Lapsus$. This single control is the most powerful mitigation against the group's core TTPs.

To specifically combat the MFA fatigue attack (T1621), organizations should configure their Identity Provider (IdP) to limit the rate and number of MFA prompts. For example, set a threshold to only allow a maximum of 3 MFA push requests within a 5-minute window for a single user. After this threshold is met, the account should be temporarily locked, and an alert should be sent to the security team and the user via a separate channel (e.g., email). This technical control prevents the attacker from overwhelming the user with notifications and provides a clear, high-fidelity signal of an attack in progress, allowing for a rapid response.

Lapsus$ has repeatedly demonstrated its ability to exploit weak processes at IT help desks. Organizations must harden these processes. Implement a 'no exceptions' policy for identity verification. For sensitive actions like a password reset or MFA device change for a privileged user, require multi-channel verification. For example, the help desk agent must initiate a video call to visually confirm the user's identity or use a pre-registered alternate phone number. Remove social-media-based or knowledge-based questions (e.g., 'What was your first car?') as verification methods, as this information is often publicly available and used by Lapsus$ for social engineering.

Sources & References

Resurgence Of Scattered Lapsus$ Hunters Presents An Evolving Threat
Cybersecurity Intelligence (cybersecurityintelligence.com) January 7, 2026
Lapsus$ is back and has evolved, warns analyst
Continuity Central (continuitycentral.com) January 7, 2026

Article Author

Jason Gomes

Jason Gomes

• Cybersecurity Practitioner

Cybersecurity professional with over 10 years of specialized experience in security operations, threat intelligence, incident response, and security automation. Expertise spans SOAR/XSOAR orchestration, threat intelligence platforms, SIEM/UEBA analytics, and building cyber fusion centers. Background includes technical enablement, solution architecture for enterprise and government clients, and implementing security automation workflows across IR, TIP, and SOC use cases.

Threat Intelligence & AnalysisSecurity Orchestration (SOAR/XSOAR)Incident Response & Digital ForensicsSecurity Operations Center (SOC)SIEM & Security AnalyticsCyber Fusion & Threat SharingSecurity Automation & IntegrationManaged Detection & Response (MDR)

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Lapsus$Threat ActorExtortionData BreachIdentityMFA FatigueSocial Engineering

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