According to security researchers at Google Threat Intelligence Group (GTIG) hackers pulled this off by posing as US Department of State officials in advanced social engineering attacks, building a rapport with the target and then persuading them into creating app-specific passwords (app passwords).
App passwords are special 16-digit codes that Google generates to allow certain apps or devices to access your Google Account securely, especially when you have MFA enabled.
Normally, when you sign in to your Google account, you use your regular password plus a second verification step like a code sent to your phone. But since some older or less secure apps and devices—like certain email clients, cameras, or older phones—are unable to handle this extra verification step, Google provides app passwords as an alternative way to sign in.
However, because app passwords skip the second verification step, hackers can steal or phish them more easily than a full MFA login.
In an example provided by CitizenLab, the attackers initially made contact by posing as a State Department representative, inviting the target to a consultation in the setting of a private online conversation.
Although the invitation came from a Gmail account, it CCed four @state.gov accounts, giving a false sense of security and making the target believe that other people at the State Department had monitored the email conversation.
Most likely, the attacker fabricated those email addresses, knowing that the State Department’s email server accepts all messages and does not send a bounce response even if the addresses do not exist.
As the conversation unfolded and the target showed interest, they received an official looking document with instructions to register for an “MS DoS Guest Tenant” account. The document outlined the process of “adding your work account… to our MS DoS Guest Tenant platform,” which included creating an app password to “enable secure communications between internal employees and external partners.”