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Security researchers at Varonis discovered a critical vulnerability in Microsoft Copilot Personal and 365 Copilot that allowed attackers to use AI prompt injection to exfiltrate sensitive user data through a crafted URL. The flaw, revealed by Copilot itself under questioning, was patched by Microsoft in August 2026.[AI generated]
Why's our monitor labelling this an incident or hazard?
The event involves an AI system (Microsoft Copilot) with a critical vulnerability that allowed automatic prompt execution without user consent, data exfiltration from connected applications, and persistent memory poisoning. These flaws directly enable harm to users' data privacy and security, which are violations of rights and harm to property. The vulnerability was actively demonstrated, indicating realized harm or at least a direct pathway to harm. Therefore, this qualifies as an AI Incident rather than a hazard or complementary information.[AI generated]