Scammers briefly commandeered Microsoft's X account and used it to amplify a Clippy-themed meme coin to the platform's massive audience.
They also tried to strengthen the illusion by posting what looked like a Microsoft-style disclaimer, making the promotion seem more legitimate, TechRadar reported.
Here's what to know
The hijacked Microsoft account retweeted a message from @ClippyMSFTCo, a Clippy-themed profile.
"How many likes to bring Clippy back? @microsoft give us a number, please," the post asked, while pitching the $CLIPPY token to Microsoft's 13 million followers.
The scammers then deleted the earlier post and published a fake public apology.
"We are aware of a cryptocurrency token being promoted in connection with $MSFT stock, including the unauthorized use of the Clippy brand and Microsoft-related intellectual property," the scammers wrote.
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"Microsoft has not authorized, sponsored, endorsed, or granted permission for the creation, promotion, or use of any cryptocurrency token associated with Clippy, Microsoft, or $MSFT."
After removing the posts, Microsoft confirmed its account had been compromised.
"We have confirmed unauthorized access to our account on X, including posts that did not come from Microsoft. The account has been secured and the unauthorized posts have been removed, and we are continuing to investigate the circumstances," said spokesperson Brent Colburn.
TechRadar noted that the fake-branding effort may have continued beyond that initial account.
After X disabled "@clippymsftcto," researchers at Cybernews found another account, @ClippyMSFT, still promoting $CLIPPY.
"For the first time ever, everyone's favorite paperclip has a liquidity pool paired directly with $MSFT, the company that built him is now the floor under his bags," the account stated.
More background
The token appeared to fit into the memecoin side of crypto, where assets spike on online buzz and unravel just as fast.
As examples, TechRadar cited $SQUID, which reportedly climbed to roughly $2,800 per token before collapsing to $0.0008 within minutes, and $HAWK, which fell by about 90% almost immediately after launch.
Clippy made for an easy theme.
Microsoft introduced the paperclip assistant with Office 97. It later showed up in older Office versions as a digital helper before being discontinued after gaining a reputation for being more irritating than useful.
Clippy took on a second life online as both a meme and a nostalgia icon.
The scheme also appears to have extended beyond token promotion — a separate post pushed software that would let users "build their own Clippy," adding another layer of risk for anyone duped into clicking.
What's being done?
Microsoft locked down the account, the unauthorized posts were deleted, and the company is still investigating how the breach happened.
X also disabled the fraudulent @clippymsftcto account named in the report. Still, Cybernews' discovery of @ClippyMSFT showed how quickly copycat or backup accounts can keep a dubious campaign alive even after one profile is removed.
That approach matches a familiar crypto-scam playbook: using hype-filled promotion alongside corporate-sounding language to create a veneer of legitimacy.
Where can I learn more?
For more on the crypto hype and weak spots that can help scams like this spread, these articles examine warnings about speculative trading, illegal mining operations, and efforts to make blockchain tech less wasteful.
• Market experts warn that crypto frenzies can unravel fast after bouts of euphoria.
• In Malaysia, utility losses topped $1.1 billion as illegal crypto mining spread nationwide.
• Researchers are developing greener digital wallet systems that could soften crypto's footprint.
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