RaccoonO365 Developer Arrested in Nigeria After Joint Microsoft–FBI–Secret Service Intelligence Tip

Threat Summary

Category: Cybercrime Infrastructure Disruption
Features: Phishing-as-a-Service takedown, MFA bypass tooling, credential harvesting at scale, cross-border law enforcement action
Delivery Method: Subscription phishing kit leveraging spoofed cloud authentication portals
Threat Actor: RaccoonO365 developers and operators — Nigeria-linked cybercriminal network

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Nigerian authorities have arrested a suspected core developer behind the RaccoonO365 phishing-as-a-service operation, a globally deployed credential-harvesting platform designed to impersonate Microsoft cloud authentication systems at industrial scale. The arrest follows a coordinated intelligence referral from Microsoft’s Digital Crimes Unit, the FBI, and the U.S. Secret Service, marking one of the most significant developer-level disruptions of a commercial phishing kit in 2025.

The operation highlights a growing shift in cybercrime enforcement strategy: targeting not just end-user scammers, but the infrastructure architects and code authors enabling mass compromise across corporate, financial, and educational sectors.

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Core Narrative

Nigeria’s National Cybercrime Centre conducted coordinated raids in Lagos and Edo states, resulting in three arrests. One individual — Okitipi Samuel — is alleged to have played a key development role in maintaining and distributing RaccoonO365’s phishing infrastructure. Two additional individuals detained during the raids were later determined not to be directly connected to the operation.

Investigators allege that Samuel operated Telegram-based distribution channels where phishing links were sold in exchange for cryptocurrency, while fraudulent Microsoft login portals were hosted through Cloudflare-backed infrastructure using stolen or fraudulently obtained email credentials.

RaccoonO365 functioned as a subscription-based phishing kit, charging operators roughly $365 per month — a price point that gave the service its name. Subscribers were provided with prebuilt templates spoofing Microsoft Outlook and Office 365 login flows, along with instructions for bypassing multi-factor authentication through session token capture and CAPTCHA-gated redirection chains.

At peak activity, the platform enabled attackers to target up to 9,000 email addresses per day, often using QR-code based lures embedded in malicious attachments. Victims were funneled through CAPTCHA screens to lend legitimacy before landing on cloned Microsoft login pages that harvested credentials in real time.

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Infrastructure at Risk

RaccoonO365 was explicitly designed to facilitate business email compromise (BEC) and lateral access within enterprise cloud environments. Targets included:

• Corporate Microsoft 365 tenants
• Financial institutions and payment processors
• Educational and research organizations
• Logistics, shipping, and document-signing platforms

Once credentials were captured, attackers used persistent session hijacking techniques to bypass MFA enforcement entirely, allowing continued mailbox access even after password changes.

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Vendor Defense / Reliance

In September, Microsoft obtained a court order authorizing the seizure of 338 domains associated with RaccoonO365 infrastructure. Cloudflare independently dismantled hundreds of related domains and accounts, citing repeated abuse involving brand impersonation campaigns spoofing Adobe, DocuSign, Maersk, and other enterprise platforms.

According to Microsoft’s Digital Crimes Unit, RaccoonO365 tooling has been linked to the theft of at least 5,000 Microsoft credentials across 94 countries, underscoring the platform’s reach and automation efficiency.

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Actor Snapshot

Microsoft previously identified Nigerian national Joshua Ogundipe as the primary architect behind RaccoonO365, alleging he authored most of the core code and delegated sales, infrastructure management, and customer support to associates through Telegram channels totaling approximately 850 members.

The group’s estimated revenue exceeded $100,000, derived from subscription fees paid by downstream cybercriminals. Ogundipe’s current whereabouts remain unknown, though a criminal referral has been filed with international law enforcement.

Authorities have not publicly detailed Samuel’s precise role within the hierarchy, though evidence suggests involvement in infrastructure hosting, link distribution, and monetization channels.

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Policy / Allied Pressure

Nigeria’s action reflects a notable shift in posture. In 2025, the country has pursued multiple high-profile cybercrime prosecutions, including sentencing nine Chinese nationals tied to transnational fraud operations that recruited and trained local actors.

The RaccoonO365 case demonstrates increasing cooperation between Nigerian authorities and Western cybercrime enforcement bodies — a critical development as phishing kits continue to globalize and decentralize.

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Forecast — 30 Days

• Phishing kit fragmentation as remaining RaccoonO365 operators attempt to rebrand or migrate infrastructure
• Increased law enforcement focus on Telegram-based cybercrime marketplaces
• Short-term spike in copycat phishing kits exploiting the operational vacuum
• Expanded civil takedowns targeting CAPTCHA-gated credential harvesting workflows

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TRJ Verdict

This arrest matters because it strikes upstream, not downstream.

Phishing epidemics are not driven by lone scammers — they are fueled by developers who industrialize deception, automate trust abuse, and sell access like software licenses. Removing one operator does not end the threat, but it raises the cost of entry, disrupts continuity, and fractures ecosystems that rely on stable tooling.

RaccoonO365’s success exposed a deeper reality: MFA alone is not a panacea when trust, session persistence, and cloud centralization are exploited at scale. Enforcement that targets code authors, infrastructure brokers, and monetization channels is the only strategy capable of shifting the balance.

This case is not the end of phishing-as-a-service — but it is proof that the architects are no longer invisible.

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