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Six Chinese AI firms accused of aggressively copying US frontier models

NSA, CISA, and FBI accuse DeepSeek, Moonshot AI, Alibaba, MiniMax, StepFun, and Z.AI of industrial-scale distillation of US frontier models via API abuse.

A joint NSA, CISA, and FBI release alleges six Chinese AI firms have extracted capabilities from US frontier models, including Claude, GPT, Gemini, and Grok, since at least late 2024, likely with Chinese government awareness. Tactics include bulk procurement of premium subscriptions with fraudulent accounts, proxy routing to evade geo-restrictions, and prompt injection to force models to reveal hidden chain-of-thought reasoning. Agencies recommend stronger identity verification, monitoring of anomalous usage, and quietly downgrading or adding noise to responses for suspected distillers, while warning these mitigations could frustrate legitimate users.

Ars Technica · AIupdated · 4d agofirst · 6d agoAI safety & security in the wild 13 sources

US Government Accuses Chinese AI Firms of Distilling Frontier Models

US agencies allege Chinese AI firms covertly extracted billions of tokens from OpenAI, Anthropic, Google Gemini, and Grok models to cut development costs.

Dark Reading reports that US agencies claim Chinese companies covertly extracted billions of tokens from OpenAI, Anthropic, Google Gemini, and Grok models to reduce their own model development costs. The accusation aligns with a joint NSA, CISA, and FBI advisory describing industrial-scale distillation of US frontier AI models and urging US AI firms to adopt countermeasures.

Dark Readingupdated · 4d agofirst · 6d agoAI safety & security in the wild 13 sources1

US Agencies Warn Chinese AI Firms Are Extracting Advanced AI Models

NSA, CISA, and FBI accuse six Chinese AI firms including DeepSeek and Alibaba of industrial-scale distillation of US frontier models.

A joint NSA, CISA, and FBI advisory alleges DeepSeek, Moonshot AI, Alibaba, MiniMax, StepFun, and Z.AI extracted billions of tokens across millions of requests from US frontier models including Claude, GPT, Gemini, and Grok since at least late 2024. DeepSeek reportedly ran an organized campaign against Claude, GPT, and Gemini between late 2024 and mid-2025 that aided R1 and V3 development, including chain-of-thought reasoning extraction. Reported techniques included shared premium accounts, gray-market proxy 'transfer stations,' automated failover, and prompt injection that made Claude Code believe it was a MiniMax product. The advisory recommends detection signals such as 24/7 multi-IP account usage and covertly serving degraded responses to suspected distillers.

Security Affairsupdated · 4d agofirst · 6d agoAI safety & security in the wild 13 sources1

AI Is Giving Lesser-Resourced Attackers Nation-State-Level Reach, Google Warns

Google's Threat Intelligence Group warns AI now gives lesser-resourced criminal and nation-state attackers nation-state-level speed and scale, citing TeamPCP, Basin Castle, APT42, and APT24 usage.

GTIG documented throughout 2026 that adversaries increasingly use AI to automate and scale attacks. TeamPCP (UNC6780) used an AI coding chatbot with agent instructions to plan and execute a mass credential harvesting campaign in under six hours, and has compromised PyPI, npm, and Docker Hub since March 2026 with its Dustmaker credential stealer plus released tools Shai-Hulud and Miasma. PRC-nexus Basin Castle uses LLMs for target profiling, lure drafting, and malware development; APT42 (Calanque Ion) uses Gemini for OSINT and localized lures; APT24 (Ravine Castle) uses Gemini across the full attack lifecycle; and DPRK's Midnight Neptune (UNC1069) integrates AI into cryptocurrency theft. Google responds by disrupting attacker accounts and hardening models against distillation attacks.

SecurityWeek · 6d agoThreat actor in the wild 2 sources2

Multiple Chinese hacking groups seen using identical Chrome zero-day exploit

Four China-linked espionage groups share identical BlueMoon Chrome zero-day exploit kit targeting US defense contractors and Asian government agencies.

Proofpoint identified at least four Chinese-aligned espionage groups (TA412/RedBravo, UNK_LateNight, UNK_DoubleCheck, UNK_QuietRacket) using an identical Chrome zero-day exploit kit dubbed BlueMoon in late August through this week. Targets include US defense contractors, NGOs, mining companies, and Southeast Asian government agencies. The exploit chains a Chromium patch-gap vulnerability with a Windows flaw, delivering malware such as ShadowPad and a fake Gemini browser extension backdoor, with possible AI-assisted exploit development.

The Recordupdated · 11h agofirst · 6d agoExploit / PoC in the wild 20 sources1

Infostealer Logs Expose Replayable AI Tokens That Can Bypass MFA

Okta finds infostealer logs contain thousands of replayable AI session tokens and API keys, letting criminals bypass MFA and access services from Google, Anthropic and OpenAI.

Okta analyzed a 7 GB infostealer dump from August 2, 2026 covering 5,871 infected machines in 162 countries and found 555 of 44,791 JWTs related to AI services, plus 1,843 unexpired JWTs and JWEs (largely set by OpenAI via NextAuth.js) and 24 still-valid API keys for Google Gemini, OpenAI, Groq and OpenRouter. Valid session tokens and API keys can be replayed with anti-detect browsers like Camoufox to bypass credential and MFA checks, fueling an underground market for AI account access known as LLMjacking, where attackers rack up victims' AI compute bills. Some 17.7% of the JWTs contained plaintext PII usable for social engineering. Google's GTIG reported growing buyer demand for Claude, Gemini, Cursor and Devin credentials, and Mandiant handled an incident where an actor used an exposed GitHub PAT to deploy unauthorized AI infrastructure and scale high-performance compute.

The Hacker Newsupdated · 5d agofirst · 6d agoThreat actor in the wild 4 sources1

US Agencies Warn China Is Systematically Extracting Frontier AI Capabilities

NSA, CISA and FBI warn Chinese AI firms including DeepSeek and Moonshot systematically extracted billions of tokens from US frontier models since late 2024.

The NSA, CISA, and FBI report that China-based AI companies including DeepSeek, Moonshot AI, Alibaba, MiniMax, StepFun, and Z.AI extracted billions of tokens from US frontier models such as Claude, GPT-4/GPT-5, Gemini, and Grok 4 since late 2024. The distillation trained DeepSeek's R1 and V3 and Moonshot's Kimi-K2/K3 models, and the agencies mapped the tactics to MITRE ATLAS while noting additional novel techniques like subscription exploitation and request metadata sanitization. They describe the activity as a strategic economic threat to US technological leadership and recommend behavioral detection, differential privacy, and targeted cost-imposing responses.

SecurityWeekupdated · 4d agofirst · 6d agoAI safety & security in the wild 13 sources1

Hackers Target Claude, Cursor and Codex AI Agents to Steal Tokens and Prompt Histories

Gen Digital found infostealers like Amatera and Remus stealing AI coding agent tokens, prompt histories, and MCP configs from infected Windows and macOS machines.

Gen Digital analysts observed Amatera and Remus detections among tens of thousands of protected Windows users over three months, with Amatera targeting Cline and Continue data and Remus targeting Claude, Cursor, and OpenCode. CallbackBeaver added Cursor and Claude to its collection scope with more than 5,000 samples in 30 days, while macOS-focused Djinn Stealer has been associated with Claude, Codex, Gemini, Cline, OpenCode, and Kilo. The stealers harvest access and refresh tokens, prompt histories, and MCP configuration files that can expose source control, ticketing, databases, cloud resources, and sensitive project context for follow-on fraud. Many stealers add targets via remotely managed rules, meaning this is an adaptation of existing infostealers rather than a new vulnerability in the AI tools themselves.

Cyber Security Newsupdated · 5d agofirst · 6d agoMalware in the wild 4 sources2

U.S. Agencies Accuse China AI Firms of Distilling Claude, GPT, Gemini, and Grok

NSA, CISA and FBI accuse Chinese AI firms including DeepSeek of industrial-scale distillation of Claude, GPT, Gemini and Grok since late 2024.

A joint bulletin from the NSA, CISA and FBI accuses China-based AI firms including DeepSeek, Moonshot AI, Alibaba, MiniMax, StepFun and Z.AI of systematic, industrial-scale distillation of U.S. frontier models. The agencies say billions of tokens were extracted from Claude, GPT, Gemini and Grok variants since at least late 2024 through APIs, cloud relays, obfuscated accounts and gray-market proxies, likely with Chinese government backing. Firms allegedly shared premium subscriptions across developer teams and used chain-of-thought extraction and automated failover to evade blocks. Mitigations include subtly altering responses to suspected distillers and correlating activity across providers, clouds and aggregators.

The Hacker Newsupdated · 4d agofirst · 6d agoAI policy 13 sources

CISA Warns Chinese AI Firms Extract Billions of Tokens From Claude, GPT, Gemini and Grok

CISA, NSA and FBI advisory says six Chinese AI firms extracted billions of tokens from Claude, GPT, Gemini and Grok via API proxies since late 2024.

A joint advisory from CISA, NSA and FBI alleges China-based AI companies including DeepSeek, Moonshot AI, Alibaba, MiniMax, StepFun and Z.AI harvested billions of tokens across millions of exchanges from Claude, GPT, Gemini and Grok variants since late 2024. Operators allegedly used API proxy 'transfer stations', account pools, bulk premium subscriptions and prompt injection or jailbreak-style requests to force models to reveal chain-of-thought reasoning. DeepSeek's R1 and V3 and Moonshot's Kimi-K2 and Kimi-K3 models reportedly benefited from the extracted data. CISA urged providers to add identity checks, monitor subscription-to-usage ratios, rate limit, and share infrastructure signals with cloud platforms.

Cyber Security Newsupdated · 4d agofirst · 6d agoAI safety & security in the wild 13 sources

DeepSeek, Alibaba and Chinese AI Firms Extract Billions of Tokens From U.S. AI Models

NSA, CISA and FBI advisory AA26-251A accuses DeepSeek, Alibaba and four other Chinese AI firms of industrial-scale distillation of US frontier models.

Joint advisory AA26-251A from NSA, CISA and FBI accuses DeepSeek, Alibaba, Moonshot AI, MiniMax, StepFun and Z.AI of extracting billions of tokens from Claude, GPT, Gemini and Grok variants since at least late 2024, likely with Chinese government awareness. Campaigns allegedly used API proxy 'transfer stations', account pools, metadata sanitization and prompt injection to harvest reasoning, coding, agentic and reinforcement-learning capabilities, with techniques mapped to MITRE ATLAS. DeepSeek's R1 and V3 and Alibaba's Qwen families reportedly trained on harvested outputs, and DeepSeek's $5.6 million training-cost claim is disputed as excluding distilled data value. Agencies urge anomaly monitoring, output alteration for suspected extractors, and intelligence sharing across vendors, clouds and aggregators.

GBHackersupdated · 4d agofirst · 6d agoAI safety & security in the wild 13 sources1· 1 read

Feds accuse China of ‘systematic’ distillation of U.S. AI models

NSA, CISA, and FBI jointly accuse Chinese AI firms including DeepSeek and Moonshot AI of industrial-scale distillation of US frontier models.

A joint advisory from the NSA, CISA, and FBI alleges China-based AI companies including DeepSeek, Moonshot AI, Alibaba, MiniMax, StepFun, and Z.AI have systematically extracted capabilities from US frontier models since at least late 2024. The companies allegedly spent billions of tokens across millions of requests against Claude, ChatGPT, Gemini, and Grok, routing traffic through multiple accounts, platforms, proxies, and third-party aggregators to evade detection. Moonshot AI allegedly distilled 18 US models, including Anthropic's most advanced model, to train its Kimi-K2 and Kimi K3 models.

CyberScoop · 7d agoAI policy

Threat actors are giving AI agents a bigger role in cyberattacks

Google Threat Intelligence's Q3 2026 tracker shows threat actors using AI agents for autonomous credential harvesting, including a six-hour campaign compromising thousands of credentials.

Google Threat Intelligence Group's Q3 2026 AI Threat Tracker, based on Mandiant incident response and platform telemetry, documents adversaries shifting toward AI-driven multi-step attack workflows. Mandiant investigated a financially motivated actor that compromised cloud infrastructure and used an AI coding chatbot plus agent instructions to run vulnerability scanning, troubleshooting, and IP rotation autonomously, harvesting thousands of third-party credentials in under six hours; an exposed 'Recon' C2 server held over 23,800 harvested secrets including cloud and AI API keys. Separately, two PRC-nexus espionage actors experimented with Gemini, Claude, and Codex to build automated penetration testing and exploitation frameworks, with Shai-Hulud used for C2 and credential harvesting. GTIG says no fully autonomous attack pipelines have yet been observed in the wild.

Help Net Security · 7d agoThreat actor 2 sources

China-Based Artificial Intelligence Companies Conducting Industrial-Scale Distillation Campaigns Against U.S. AI Companies

NSA, CISA, and FBI warn DeepSeek, Alibaba, and other Chinese AI firms ran industrial-scale distillation of U.S. frontier models, threatening U.S. AI leadership.

A joint NSA, CISA, and FBI Cybersecurity Advisory (AA26-251A) says China-based firms DeepSeek, Moonshot AI, Alibaba, MiniMax, StepFun, and Z.AI extracted billions of tokens from U.S. frontier models including Claude, GPT, Gemini, and Grok, likely with Chinese government knowledge. Campaigns running since at least late 2024 used native APIs, cloud providers, third-party aggregators, gray-market proxy "transfer stations", and shared premium subscriptions to bypass geographic restrictions, evade safeguards, and violate providers' terms of use. The agencies recommend detecting anomalous prompts, accounts, and usage patterns; subtly altering responses to suspected distillers; and cross-organization intelligence sharing. They also call DeepSeek's publicly cited $5.6M training cost misleading because it excludes data acquired through distillation.

CISA Advisories · 7d agoAdvisory in the wild1

Extortion crews have their eyes on high-value AI data, Google warns

Google's Mandiant warns extortion crews now steal proprietary AI models, prompts, and research for ransom, while threat actors automate attacks with agentic AI.

Google's AI Threat Tracker details intrusions in which extortion crews exfiltrated healthcare drug research and a proprietary AI model, and stole an AI media company's source code, prompts, skills, model scripts, and secrets, threatening leaks unless paid. TeamPCP (UNC6780), behind large open-source supply chain attacks on PyPI, npm, and Docker Hub since March, used a malicious GitHub Actions workflow to exfiltrate a company's proprietary AI repository. Mandiant also observed a fully autonomous multi-agent credential-harvesting cloud intrusion completed in under six hours, and a China-linked espionage group using Gemini to build a dynamic automated penetration-testing framework.

The Register · Security · 7d agoThreat actor in the wild 2 sources1

Structural Jailbreaks Generalize but Do Not Compound: A cross-provider and multilingual study of Involuntary In-Context Learning

Researchers show IICL structural jailbreaks generalize to Google Gemini, lifting attack success to 80-100% on harm and financial benchmarks; non-English prompts attenuate it.

The study red-teams two Google Gemini models with Involuntary In-Context Learning (IICL), a structural jailbreak reframing harmful requests as the final cell of a data-labeling task. IICL lifts attack success from at most 6.7% to 80-90% on HarmBench and 97-100% on financial abuse (FinProof), an order of magnitude above prior results on OpenAI's GPT-5.4. Against a compounding hypothesis, forcing IICL output into Spanish, Hindi, or Arabic attenuates the attack in 11 of 12 conditions, attributed to a 'relevance curse' producing lower-quality harmful content in lower-resource languages. Findings replicate under an independent non-Google judge (Cohen's kappa 0.86 over 377 paired verdicts).

arXiv cs.CR · 7d agoAI safety & security

ChatGPT claws back web traffic share to 55.5 percent as Gemini's brief comeback fades

Similarweb data shows ChatGPT regaining chatbot web traffic share to 55.5% while Gemini slipped to 25.6% and Claude grew to 9.3%.

Similarweb figures show ChatGPT's share of AI chatbot website traffic rising from 52.7% three months ago to 55.5%, though it remains far below its 73.3% share a year ago. Google Gemini declined from 27.8% to 25.6% after a brief comeback, while Anthropic's Claude grew from 1.9% to 9.3% year-over-year. DeepSeek (3.4%), Grok (2.4%), Copilot (1.6%), and Perplexity (0.9%) trail the leaders. The data covers website traffic only and excludes mobile and desktop app usage.

The Decoder · 8d agoAI industry

Hikers rescued after using Google Gemini for planning

Three hikers were rescued from Mount Shasta after following Google Gemini's advice to carry insufficient food and water during a multi-day ordeal.

Three young men began their Mount Shasta ascent at 3 a.m. and summited at 7 p.m., far past the recommended noon turnaround, then tried descending in the dark. The Siskiyou County sheriff's office said Gemini advised far less food and water than required as the planned 8-hour climb became a multiday ordeal. The trio spent the night in Mud Creek Canyon and were rescued the next morning by Forest Service rangers and volunteers.

TechCrunch · AI · 10d agoAI safety & security

Necessary or Sufficient? Evaluating LLM Explanations With Behavioural Evidence

New framework tests whether LLM-cited explanation factors are necessary or sufficient, finding weak correlation across Claude, GPT, and Gemini models.

An arXiv paper introduces black-box intervention tests measuring whether factors LLMs cite in their explanations are necessary or sufficient for their outputs in agent oversight workflows. Across eight models from the Claude, GPT, and Gemini families, Spearman correlations between cited rankings and measured influence ranged from 0.349-0.354 (advisor recommendation) to 0.431-0.580 (prompt monitoring). Uncited factors scored above the lowest cited factor in up to 57.6% of advisor responses, showing cited top-three factors do not reliably identify the most influential inputs.

arXiv cs.AI / cs.LG / cs.CL · 11d agoAI safety & security

Governing Bring Your Own AI: A Parameterized Maturity Model

Researchers propose a parameterized governance model and maturity ladder for Bring Your Own AI, finding data exposure and compliance dominate BYOAI risks.

The paper studies Bring Your Own AI (BYOAI), where employees use personal generative AI accounts such as ChatGPT, Gemini, and Claude outside enterprise identity and security controls. Drawing on a curated corpus of 30 records (24 studies and 6 framework documents), the authors build a risk taxonomy, a five-level governance maturity ladder, and a parameterized model linking control-layer coverage to residual risk. Findings highlight data exposure and compliance as the most prominent risks, inconsistent framework engagement, and evidence that layered technical controls reduce modeled exfiltration risk more than prohibition-based approaches.

arXiv cs.CR · 11d agoResearch

The AI ‘Ghosts’ Contaminating Academic Publishing

Samsung and University of Warsaw researchers find LLMs repeatedly generate the same fake author names, contaminating academic records with 1,655 ghost-authored DOIs.

A preprint from Samsung and the University of Warsaw, "The Ghost Couple: Correlated LLM Name Priors and Their Haunting of the Web and Academic Publishing," shows that LLMs such as Claude, ChatGPT, and Gemini repeatedly generate the same fictional names like Elena Vasquez, Marcus Chen, and Aris Thorne as experts and co-authors. Researchers identified 1,655 ghost-authored records on CERN-operated Zenodo carrying real DataCite DOIs, fabricated journals, and backdated publication dates. Ghost names also form synthetic research groups on ResearchGate and are indexed without verification by Google Scholar and Semantic Scholar. The researchers suggest correlated name priors could serve as provenance signals for detecting AI-generated content.

404 Media · 19d agoAI research

The AI Malware Maturity Gap

Recorded Future introduces AIM3, a five-level maturity model for AI malware, showing current attacker AI use is mostly AI-assisted rather than autonomous.

Recorded Future proposes AIM3, a five-level model defining AI malware from LLM-translated to LLM-embedded, spanning experimentation to fully autonomous agentic campaigns. Public examples remain early-stage: PROMPTFLUX uses Google Gemini to rewrite its VBScript dropper (Level 1), while Lamehug/PROMPTSTEAL, attributed to APT28, invokes the HuggingFace API to generate reconnaissance commands (Level 3). The authors argue most current AI malware augments existing tradecraft rather than enabling one-click autonomous attacks.

Recorded Future · 20d agoResearch

The Outsized Shadow: Why 5% of AI Users Are Your Biggest Security Risk

Akamai's 2026 Enterprise AI Usage report finds the top 5% of AI power users create outsized shadow AI, data leakage, and agent security risks.

Akamai's State of the Internet: Enterprise AI Usage Risk Report 2026, based on real-world usage telemetry, finds the top 5% of enterprise AI power users interact with AI models at 12 times the rate of the bottom 50% of the workforce. 47.11% of enterprise AI conversations occur through personal identities rather than corporate-managed accounts, and 14.4% run through corporate email addresses tied to personal freemium subscriptions. 17.7% of employees at midsize enterprises use AI browser or IDE extensions, of which 16.31% contain known CVE vulnerabilities and nearly 75% request high or critical permissions. The report also describes emerging attack vectors including Vibe Hacking, CursorJacking, and CometJacking indirect prompt injection.

The Hacker News · 22d agoAI safety & security1

Google researchers uncover criminal zero-day exploit likely built with AI

Google links a likely LLM-built criminal zero-day for an open-source admin tool to planned mass exploitation and maps AI-assisted threats.

Google Threat Intelligence Group linked a zero-day exploit for a popular open-source web-based administration tool, enabling 2FA bypass with valid credentials via a semantic logic error, to a criminal group, citing educational docstrings, a hallucinated CVSS score, and textbook Python as signs of LLM authorship; the vendor was notified before a planned mass exploitation campaign. The report also details Russia-nexus malware families CANFAIL and LONGSTREAM using AI-generated decoy code, the PROMPTSPY Android backdoor driving the UI through the Gemini API, APT27 using Gemini to build relay tooling, and the TeamPCP (UNC6780) supply chain compromise of LiteLLM and Trivy repositories that planted the SANDCLOCK credential stealer.

Help Net Security · 22d agoThreat actor

Zero-Click Grok Chat History Theft: Adversa AI Demonstrates Cryptographic Context Injection

Adversa AI's Cryptographic Context Injection bypasses AI guardrails using AES-encrypted payloads, enabling zero-click theft of Grok users' full chat histories.

Adversa AI researcher Rony Utevsky disclosed Cryptographic Context Injection, which hides instructions in AES-256-GCM ciphertext and tricks models into decrypting them inside their own code execution runtime, where the output is treated as trusted. Demonstrated against xAI's Grok, it stole user names, locations, subscription tiers, and full chat histories with zero clicks, and against Google's Gemini to bypass safety rules, generate incendiary-device instructions, and expose system instructions. Reported to xAI on June 3, 2026, the Grok attack remained reproducible as of August 19, 2026; the Gemini issue was not formally reported because Google's bug bounty excludes jailbreaks.

Security Affairs · 23d agoAI safety & security

Google’s $10,000 refund test shows why AI agents need zero trust

Google released an open-source zero-trust reference architecture for AI agents defending against prompt injection via signed database writes, gVisor sandboxing, and deterministic gating.

Google's demonstration, built on the Agent Development Kit (ADK) and Gemini, shows a customer support agent that could be manipulated into issuing a $10,000 refund on a $149 order and exposing environment variables via AI-generated Python. The architecture adds three security layers outside the model: cryptographic signatures on database writes verified via Cloud KMS backed by Cloud HSM, gVisor sandboxing of generated code with network egress disabled, and a Semantic Gateway applying deterministic checks to prompts and tool calls. It treats system prompts as insufficient boundaries because prompt injection, prompt tuning, or model updates can change agent behavior.

Help Net Security · 28d agoAI safety & security

Get closer to the game with Gemini and Pixel

Google's Gemini and Pixel partner with five global football clubs to add AI-powered features to the matchday fan experience.

Google announced partnerships between its Gemini AI and Pixel smartphone lines and five global football clubs. The collaboration aims to elevate the fan matchday experience through AI and smartphone technology. The announcement is primarily a consumer marketing effort rather than a security-relevant development.

Google · AI · 29d agoAI industry

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product Gemini 17vendor Google 16ai model Claude 15product Claude 10ai model Grok 9organization CISA 8organization FBI 7organization NSA 7ai model GPT 7product Grok 7vendor Anthropic 6organization Google 6vendor OpenAI 6product GPT 5ai model ChatGPT 5organization DeepSeek 5
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