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Milk Dragon, also known as NaiLong, is an adversary-in-the-middle (AiTM) phishing kit that uses fake bargain storefronts to steal payment details and relay one-time passcodes into real payment-authentication flows. Group-IB reported that the campaign has been active since October 2025. Its October 1, 2026 report describes 258 phishing pages, victims in 66 countries, and 36 financial-institution verification templates observed by the researchers—not a complete count of all activity.

What Milk Dragon does

Milk Dragon is a phishing-as-a-service kit reportedly sold through Telegram communities. It targets shoppers rather than relying only on familiar lures such as account-warning or delivery-failure messages. A typical approach is to advertise an unusually cheap consumer product through Facebook or TikTok marketplace ads or native posts, then send interested buyers to a counterfeit shop.

The kit is designed to collect card or other payment details and exploit the shopper’s interaction with a genuine authentication challenge. This is AiTM phishing: the criminal operator sits between the victim and a real service, relaying information between them. The reported attack abuses the authentication flow; Group-IB does not describe a flaw in the 3D Secure protocol itself.

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How the scam moves from an ad to a stolen code

1. A steep discount leads to a fake shop

The shopper follows a social-media promotion to a storefront that imitates a legitimate retailer. Group-IB says the pages use WordPress and WooCommerce, with a custom plugin called BytePress. The checkout can present fake card and PayPal payment options while connecting the page to the operators’ panel.

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2. BytePress streams checkout input to an operator

Group-IB reports that BytePress maintains a persistent Socket.IO WebSocket connection to the operator panel. As the shopper types into checkout fields, the kit can stream the input character by character before the form is submitted. This is sometimes described as WebSocket keylogging, but the reported behavior concerns input on the compromised checkout page—not proof that the kit records every keystroke across the shopper’s device.

The live connection also lets an operator alter the checkout flow or display notices while the victim is using the page. That makes the interaction more adaptable than a static form that simply collects and sends submitted data.

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3. A counterfeit verification page captures a one-time code

After payment details are entered, the victim may see a loading screen followed by a fake bank-verification or one-time-passcode page. The operator can use the submitted details to initiate a real 3D Secure (3DS) or other authentication flow, then relay the code the shopper enters into the counterfeit page. If the real challenge is approved, a fraudulent transaction may be authorized; the captured information may also support account takeover, depending on the flow involved.

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4. A fake confirmation can delay suspicion

The shopper may be shown a counterfeit order confirmation after entering the code. That can make the interaction look complete while the victim believes a purchase has gone through.

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What Group-IB reported—and what the figures mean

Reported observation Qualification
258 phishing pages Identified by Group-IB since the campaign’s reported start in October 2025; reported October 1, 2026.
Victims in 66 countries Geographic reach observed by Group-IB, not a complete global victim count.
36 financial-institution verification templates Templates reported in Group-IB’s October 1, 2026 investigation.
From 300 USDT per month Group-IB’s reported observation of the kit’s criminal-market subscription price; this is not a legitimate service or a recommendation to buy it.

These are figures from one company’s investigation, not an exhaustive census of every Milk Dragon page, victim, or operator. Group-IB also reported ongoing developer support and updates for affiliates and operators.

How shoppers can reduce risk

  • Treat extreme discounts as a reason to verify. A social-media ad, marketplace post, polished page, or low price does not establish that a seller is genuine.
  • Check the destination before entering payment details. Look closely at the domain and independently navigate to the retailer’s known website rather than trusting an ad link. Link-reputation services such as urlscan.io, VirusTotal, and ScamAdviser can provide additional context, but a clean or inconclusive result should not be treated as proof that a shop is safe.
  • Be cautious when checkout changes unexpectedly. A loading screen followed by a bank-branded code page is not, by itself, proof of fraud, but an unfamiliar shop or suspicious domain makes the request riskier. Do not enter a code on a page reached through a questionable seller link.
  • Act quickly if you submitted information. Contact your bank or card issuer immediately if you entered card details or an authentication code on a suspicious page. Ask what steps are appropriate for the account or card, and review recent activity for transactions you do not recognize.
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What organizations should monitor

For retailers, financial institutions, and security teams, the described attack spans social-media lures, lookalike storefronts, live checkout capture, and payment authentication. Monitoring can therefore focus on the points where the flow becomes visible:

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  • Lookalike domains and counterfeit storefronts that imitate the organization or its partners.
  • Unusual checkout behavior and suspicious card activity that may follow a phishing campaign.
  • Emerging phishing-kit activity, including operator-driven changes to checkout or verification pages.

Group-IB says its full indicator-of-compromise data is restricted to its customers, so its public report does not provide a complete IOC list for defenders to reproduce.

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