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Copilot Chat Bug Bypasses DLP on 'Confidential' Email

A code error caused Microsoft 365 Copilot to bypass data loss prevention and confidentiality labels, prompting a fix rollout starting early February, Microsoft said.

  • On February 18, 2026, Microsoft confirmed a bug let Microsoft 365 Copilot summarize customers' confidential emails for weeks and logged the incident as an advisory.
  • The issue, traced to a code error, was first detected on January 21, 2026, with Redmond saying it caused Copilot to pick up items it should not have processed under bug CW1226324.
  • In practice, the feature was summarizing emails stored in Sent Items and Drafts folders despite sensitivity labels and DLP policies, Microsoft said.
  • Microsoft began rolling out a fix in early February and is monitoring the deployment while contacting a subset of affected users, though it has not disclosed a final timeline or affected customer numbers.
  • In the enterprise context, Microsoft documentation shows sensitivity labels may function differently across apps, while 72 percent of S&P 500 companies cite AI as a material risk despite DLP and Microsoft Purview protections.
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When compliance becomes a mere formality, a single programming error is all it takes – and the most sophisticated security architecture collapses. That's precisely what happened with Microsoft Copilot. A bug in the code allowed the AI assistant to display confidential content from Outlook folders, even though it was protected by Data Loss Prevention and sensitivity labels. The problem wasn't […] Source

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BleepingComputer broke the news in on Wednesday, February 18, 2026.
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