The $24 Criminal Tool: Microsoft & Police Shut Down RedVDS Fraud Engine

According to Microsoft’s Digital Crimes Unit, the operation to shut down RedVDS—a subscription service that supplied disposable virtual computers to criminals—marks the first civil action in the United Kingdom by the unit, undertaken with German authorities, Europol and US law enforcement. RedVDS offered a cheap, high‑speed, trace‑easy way for criminals to spin up digital identities and conduct fraudulent transactions before investigators could follow the IP address, with plans from as little as US $24 a month.

Since March 2025, the service has facilitated roughly US $40 million in reported fraud losses in the United States. The takedown is described as a significant victory in the fight against AI‑enabled fraud and real estate scams, with the infrastructure seizure effectively taking the marketplace offline. The operation represents the 35th civil action targeting cybercrime infrastructure by Microsoft’s Digital Crimes Unit, underscoring a broader strategy to dismantle services criminals rely on to operate and scale. Microsoft says it will continue cross‑border work to disrupt cyber‑enabled fraud and protect people online.