Microsoft Legal Action Disrupts RedVDS Cybercrime Infrastructure Used for Online Fraud
Jan 15, 2026
Cybercrime / Artificial Intelligence
Microsoft on Wednesday announced that it has taken a " coordinated legal action " in the U.S. and the U.K. to disrupt a cybercrime subscription service called RedVDS that has allegedly fueled millions in fraud losses. The effort, per the tech giant, is part of a broader law enforcement effort in collaboration with law enforcement authorities that has allowed it to confiscate the malicious infrastructure and take the illegal service (redvds[.]com, redvds[.]pro, and vdspanel[.]space) offline. "For as little as US $24 a month, RedVDS provides criminals with access to disposable virtual computers that make fraud cheap, scalable, and difficult to trace," said Steven Masada, assistant general counsel of Microsoft's Digital Crimes Unit. "Since March 2025, RedVDS‑enabled activity has driven roughly US $40 million in reported fraud losses in the United States alone." Crimeware-as-a-service (CaaS) offerings have increasingly become a lucrative business mod...
