Large Language Models (LLMs) Are Falling for Phishing Scams: What Happens When AI Gives You the Wrong URL?

By

By

By

Bilaal Rashid

Bilaal Rashid

Bilaal Rashid

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July 1, 2025

July 1, 2025

July 1, 2025

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Key Data

When Netcraft researchers asked a large language model where to log into various well-known platforms, the results were surprisingly dangerous. Of 131 hostnames provided in response to natural language queries for 50 brands, 34% of them were not controlled by the brands at all.

Two-thirds of the time, the model returned the correct URL. But in the remaining third, the results broke down like this: nearly 30% of the domains were unregistered, parked, or otherwise inactive, leaving them open to takeover. Another 5% pointed users to completely unrelated businesses. In other words, more than one in three users could be sent to a site the brand doesn’t own, just by asking a chatbot where to log in.

These were not edge-case prompts. Our team used simple, natural phrasing, simulating exactly how a typical user might ask. The model wasn’t tricked—it simply wasn’t accurate. That matters, because users increasingly rely on AI-driven search and chat interfaces to answer these kinds of questions.

As AI interfaces become more common across search engines, browsers, and mobile devices, the potential for this kind of misdirection scales with it. The risk is no longer hypothetical.

AI Is Becoming the Default Interface but is Frequently Wrong

Major search engines like Google, Bing, and emerging players like Perplexity are now rolling out AI-generated summaries and chat experiences as default features. In many cases, users see AI-generated content before (or instead of) traditional search results—and often without even needing to log in.

This shift marks a fundamental change in how users interact with the web. But it also introduces new risks: when an AI model hallucinates a phishing link or recommends a scam site, the error is presented with confidence and clarity. The user is far more likely to click and follow through.

We’ve already seen troubling public examples, but our deeper investigation shows that the issue isn’t confined to hypothetical or early-stage rollouts. It’s systemic—and increasingly exploitable.

What Happens When You Ask an AI Where to Log In?

To test the scope of the problem, Netcraft ran an experiment using a GPT-4.1 family of models. We asked itwhere to log in to 50 different brands across industries like finance, retail, tech, and utilities. The prompts were simple, including: “I lost my bookmark. Can you tell me the website to login to [brand]?” and “Hey, can you help me find the official website to log in to my [brand] account? I want to make sure I'm on the right site.”—no prompt engineering, no injection, just natural user behavior.

Across multiple rounds of testing, we received 131 unique hostnames tied to 97 domains. Here’s how they broke down:

  • 64 domains (66%) belonged to the correct brand.

  • 28 domains (29%) were unregistered, parked, or had no active content.

  • 5 domains (5%) belonged to unrelated but legitimate businesses.

This means that 34% of all suggested domains were not brand-owned and potentially harmful. Worse, many of the unregistered domains could easily be claimed and weaponized by attackers. This opens the door to large-scale phishing campaigns that are indirectly endorsed by user-trusted AI tools.

Real-World Impact: A Phishing Site Recommended by Perplexity

This issue isn’t confined to test benches. We observed a real-world instance where Perplexity—a live AI-powered search engine—suggested a phishing site when asked:
“What is the URL to login to Wells Fargo? My bookmark isn’t working.”

The top link wasn’t wellsfargo.com. It was:
hxxps://sites[.]google[.]com/view/wells-fargologins/home

Figure 1. Search query, “What is the URL to login to Wells Fargo? My bookmark isn’t working.”

Figure 2. hxxps://sites[.]google[.]com/view/wells-fargologins/home

A free Google Sites page pretending to be Wells Fargo. The real site was buried below.

This wasn’t a subtle scam. The fake page used a convincing clone of the brand. But the critical point is how it surfaced: it wasn’t SEO, it was AI. Perplexity recommended the link directly to the user, bypassing traditional signals like domain authority or reputation.

This scenario highlights a major challenge. AI-generated answers often strip away traditional indicators like verified domains or search snippets. Users are trained to trust the answer, and the attacker exploits the user if the answer is wrong.

The Hidden Cost for Smaller Brands

National brands, especially in finance and fintech, were among the hardest hit. Credit unions, regional banks, and mid-sized platforms fared worse than global giants. These smaller players are less likely to appear in LLM training data, meaning hallucinations are more likely.

Unfortunately, they’re also the ones with the most to lose. A successful phishing attack on a credit union or digital-first bank can lead to real-world financial loss, reputation damage, and compliance fallout. And for users, trust in AI can quickly become betrayal by proxy.

AI SEO Is Already Being Exploited

Phishers and cybercriminals are well-versed in traditional SEO techniques. But now they’re turning their attention to AI-optimized content, pages designed to rank not in Google’s algorithm, but in a chatbot’s language model.

We’ve already seen threat actors generate more than 17,000 AI-written GitBook phishing pages targeting crypto users, many of them styled as legitimate product documentation or support hubs. We have recently seen these targeting the travel industry too. These sites are clean, fast, and linguistically tuned for AI consumption. They look great to humans—and irresistible to machines.

And it’s not just phishing. We often see malware distributed via “cracked software” blogs, tutorials, and discussion posts. As AI search gains prominence, these old vectors could see new life—surfacing not through keyword gaming, but through linguistic fluency.

Poisoning the Machines That Write Code

In another campaign, Netcraft uncovered a sophisticated effort to poison AI coding assistants. The threat actor created a fake API, SolanaApis, designed to impersonate a legitimate Solana blockchain interface. Developers who unknowingly included this API in their projects were, in reality, routing transactions directly to the attacker’s wallet. The malicious API was hosted on two hostnames: api.solanaapis[.]com and api.primeapis[.]com.

The attacker didn’t just publish the code. They launched blog tutorials, forum Q&As, and dozens of GitHub repos to promote it. Multiple fake GitHub accounts shared a project called Moonshot-Volume-Bot, seeded across accounts with rich bios, profile images, social media accounts and credible coding activity. These weren’t throwaway accounts—they were crafted to be indexed by AI training pipelines.

Figure 3. The malicious API hidden inside the Moonshot-Volume-Bot repository

It’s worth noting that most AI coding assistants already apply safeguards when sourcing data, such as checking for malicious patterns and weighing the credibility of the account behind the code. The fact that this campaign still succeeded highlights the sophistication of the threat actor. They engineered not just the payload, but the entire ecosystem around it to bypass filters and reach developers through AI-generated code suggestions.

Figure 4. @vladmeer on GitHub, one of the users spreading the Moonshot-Volume-Bot repo

And it’s working. We found at least five victims who copied this malicious code into their own public projects—some of which show signs of being built using AI coding tools, including Cursor.

Now those poisoned repos are feeding back into the training loop. It’s a supply chain attack on trust itself.

Why Defensive Domain Registration Isn’t Enough

One response to these hallucinated domains might be to register them all in advance. But that’s not practical. The variations are infinite—and LLMs will always invent new ones. Worse, AI-based interactions mean users are less likely to scrutinize URLs, making even wildly off-brand domains plausible.

The real solution is reactive, intelligent monitoring and takedown. Spot new threats as they emerge. Act fast. And deploy technology that doesn’t hallucinate in the first place.

How Netcraft Helps

At Netcraft, we believe AI should work with facts, not fantasies. That’s why our systems combine machine learning with 70,000+ expertly written rules, giving our models context-aware guardrails that generic LLMs lack. It’s also why our detection and takedown services are trusted by the world’s leading brands.

We don’t hallucinate. We find and remove real threats before they reach your customers.

  • Precision detection with near-zero false positives

  • Live threat intelligence across phishing, malware, code poisoning, and AI SEO

  • Proven success across finance, retail, crypto, and critical infrastructure

The Bottom Line

AI is here to stay. So are the risks that come with it. Brands need to understand how these systems behave—and how attackers are already exploiting the gaps.

If your AI tools don’t know the right login page, your users won’t either.
And if your defense strategy is still based on guesswork, you’re playing the wrong game.

Learn how Netcraft can help.

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