Microsoft takes RedVDS fraud infrastructure offline

Microsoft announced on 14 January that it and law enforcement partners had disrupted RedVDS, a subscription service selling disposable virtual computers used in phishing and payment fraud. The company said the operation took the marketplace offline and seized infrastructure, alongside legal action in the United States and United Kingdom. Microsoft’s announcement describes German authorities’ seizure of a central server.

The service supplied unlicensed Windows computers for as little as $24 a month. Microsoft linked its activity to roughly $40 million in reported US fraud losses since March 2025. That figure reflects losses the company could observe, rather than a complete worldwide total.

H2-Pharma and the Gatehouse Dock Condominium Association joined the civil action as co-plaintiffs. Microsoft said both had suffered payment diversion through compromised email conversations. Its assessment also listed India among the five countries most affected by compromised Microsoft email accounts associated with RedVDS during September–December 2025. Microsoft recommended independently verifying payment requests using contact details already known to the recipient.