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Microsoft shares workaround for Windows domain login issues

Microsoft confirms September 2026 Windows updates trigger domain trust failures via Machine Identity Isolation and shares a workaround for Windows 11 enterprises.

Microsoft confirmed the September 2026 security updates (KB5124008 for Windows 11 24H2/25H2, KB5124012 for 26H1) cause Windows to honor Machine Identity Isolation enforcement settings, breaking domain trust on systems not connected to Windows Server 2025 domain controllers. Admins report valid credentials failing with domain trust and credential errors. The workaround requires disabling Machine Identity Isolation via the same management method that enabled it (Intune, group policy, or registry) and resetting the secure channel with Test-ComputerSecureChannel. Microsoft previously shipped out-of-band fixes for Remote Desktop, Hyper-V, and USB audio issues from the same updates.

BleepingComputer · 2h agoAdvisory

Windows 11 KB5124008 update breaks domain trust for some users

Microsoft is investigating Windows 11 KB5124008 breaking Active Directory domain trust, leaving some users unable to log in with valid credentials.

Administrators report the Windows 11 KB5124008 security update breaks the secure channel between domain-joined machines and Active Directory, causing login failures on Windows 11 25H2 systems after reboot. The failures are linked to the Machine Identity Isolation feature, which in enforcement mode moves machine account secrets into Credential Guard and removes the LSA copy; one admin saw 11 of roughly 256 devices affected. Workarounds include setting MachineIdentityIsolation to 0 and repairing the secure channel with Test-ComputerSecureChannel, though Microsoft has confirmed no root cause or official fix and warns disabling the feature can also break domain authentication.

BleepingComputerupdated · 10h agofirst · 14h agoVulnerability 2 sources

Windows 11 KB5124008 Update Breaks Active Directory Domain Trust and Blocks User Logins

Microsoft's September Windows 11 cumulative update KB5124008 breaks Active Directory domain trust on domain-joined machines, blocking logins despite valid credentials.

Microsoft is investigating community reports that KB5124008, the September 8, 2026 cumulative update for Windows 11 24H2/25H2 (builds 26100.9445/26200.9445), breaks the AD secure channel, causing 'The user name or password is incorrect' errors on interactive logon. Admins reproduced the failure consistently and observed nltest error 1786 (ERROR_NO_TRUST_LSA_SECRET) plus domain controller Event 4625 with status 0xC000006D over NTLM. The problem is suspected in Machine Identity Isolation, a Credential Guard capability that moves machine-account secrets into virtualization-based security, and disabling it via registry value, Group Policy, or Intune baseline restored trust. The September 14 out-of-band update KB5129195 does not address the domain trust issue, and Microsoft's release notes do not list it as a known problem.

FamousSparrow Deploys New SparroWocky Backdoor Against Latin American Governmentsnew

China-aligned APT FamousSparrow deployed a new modular backdoor, SparroWocky, against government entities across eight Latin American countries since August 2025, ESET reports.

ESET reports that China-aligned threat actor FamousSparrow replaced its SparrowDoor implant with SparroWocky, a distinct modular C++ backdoor active against governments in Argentina, Ecuador, Guatemala, Honduras, Panama, Peru, Puerto Rico, and Venezuela. Around 90% of the group's targets from mid-2025 into 2026 were in Latin America, which ESET links to regional competition over US influence. The backdoor arrives via a three-component DLL side-loading chain, persists through a Windows service (ProcAuditManager) or Run keys (SnapCart), captures screenshots, and exfiltrates RC4-encrypted data over TLS C2 on ports 443 and 8080. It supports in-memory Beacon Object File execution, API hashing, and SilentMoonwalk-style call-stack spoofing; IOCs for three C2 servers were released.

GBHackers · 13m agoThreat actor in the wild 2 sourcesCVE-2021-26855

Chosen Brick, Iran’s Surveillance Malware

UK, US, and Dutch agencies warn Iranian CHOSEN BRICK malware targets dissidents and journalists via Telegram, harvesting contacts, emails, and messages since 2025.

The UK NCSC, FBI, and Dutch AIVD jointly attributed the CHOSEN BRICK Windows malware family to Iranian intelligence services, used since at least 2025 against dissidents, journalists, and activists worldwide, including in the UK, US, and Netherlands. Operators build rapport over WhatsApp or Telegram, impersonating known contacts or platform support, then deliver lures disguised as installers for Pictory, RunwayML, Norton Antivirus, Telegram, Adobe Flash Player, or KeePass, or fake MRI results. The malware persists via registry Run keys, adds Microsoft Defender exclusions, and uses per-victim Telegram bot IDs for C2, with newer versions adding HTTPS or SOCKS5 proxies. Some victims' data appeared on pro-Iranian leak sites, raising harassment and physical-safety risks.

Security Affairs · 3h agoMalware in the wild 7 sources

PAPERMILL Hackers Abuse Signed Notepad++ to Deploy VenomRAT in Tax Audit Attacks

PAPERMILL phishing campaign abuses a signed Notepad++ copy and tax-audit lures to deploy VenomRAT against targets in India.

JUMPSEC tracks PAPERMILL as an emerging cluster whose emails pass SPF, DKIM, and DMARC and deliver tax-audit themed disk images. The mounted image pairs a legitimately signed, renamed executable with a rogue libcurl.dll for DLL sideloading, then uses a Donut shellcode loader to run VenomRAT 6.0.3 in memory with hidden VNC, data-stealing, and file-grabbing capabilities. The loader includes anti-analysis checks and RunOnce persistence, and lures plus China-connected infrastructure overlap with the Silver Fox ecosystem, though attribution remains unconfirmed.

Cyber Security News · 22h agoPhishing & fraud in the wild 2 sources

Three Threat Groups Target Russian Enterprises With Backdoors, Ransomware, and Wipers

Kaspersky details NightEagle, Hacking Cat, and Toy Ghouls targeting Russian enterprises with Exchange backdoors, Gorilla RAT, and destructive Monkey ransomware.

Kaspersky reports three threat clusters targeting Russian enterprises: NightEagle (APT-Q-95), the pro-Ukrainian hacktivist group Hacking Cat, and Toy Ghouls. NightEagle uses compromised VPN credentials and the GhostContainer modular backdoor to fully compromise Microsoft Exchange servers, chaining CVE-2020-0688 exploitation, BlueKeep (CVE-2019-0708), Active Directory vulnerabilities, and DCSync to seize domain controllers. Hacking Cat exploits Exchange flaws including CVE-2021-26855 and CVE-2026-42897 to deliver the Gorilla RAT and multiple Monkey ransomware variants written in Rust, .NET, C++, and Golang targeting Windows, Linux, and VMware ESXi, with some variants acting as wipers that never store the encryption key.

The Hacker Newsupdated · 3h agofirst · 19h agoThreat actor in the wild 5 sourcesCVE-2020-0688CVE-2019-0708CVE-2021-26855+1 CVEs1

Fake AI trading agent steals crypto wallet passwords

Fake AI crypto trading agent sites deliver Needle Stealer, which replaces browser wallet extensions to steal wallet passwords, HP reports.

HP researchers tracked campaigns between April and June 2026 in which a fake AI trading agent site, tradingclaw[.]pro, distributed a Microsoft-signed OLEView executable that DLL side-loads a malicious iviewers.dll and launches Needle Stealer via process hollowing. Needle replaces one of seven browser wallet extensions, including MetaMask, Coinbase Wallet, and Phantom, to capture wallet passwords. Related campaigns used QR-code invoice phishing leading to fake OneDrive pages, Phantom Stealer sold as a penetration testing tool with VBScript-to-PowerShell steganographic loaders, and image-hidden payloads delivering XWorm, PureLogs Stealer, and Formbook; a perceptual-hash VirusTotal search found about 400 distinct rigged images.

Help Net Security · 3h agoMalware in the wild1

GhostCode Abuses Microsoft Entra Device Enrollment to Maintain Access After Token Revocation

eSentire exposes GhostCode, a device-code phishing kit that abuses Microsoft Entra device enrollment to persist even after stolen tokens are revoked.

eSentire's Threat Response Unit observed GhostCode campaigns in late August 2026, using BEC-style social engineering that impersonated procurement staff, including BJ's Wholesale Club, via Salesforce contact forms. Victims received password-protected HTML lures disguised as a FlipBook document portal, with junk-data padding, HTML comment injection, and AES-256-GCM encrypted redirects gated by anti-bot checks. The kit exploits the OAuth 2.0 device authorization grant, prompting victims to approve real Microsoft device-code sign-ins with MFA. Within 78 seconds of approval, attackers registered three Entra devices and obtained a Primary Refresh Token, so rogue device registrations persist even after session token revocation.

GBHackers · 21h agoPhishing & fraud in the wild2

Iranian hackers use CHOSEN BRICK Windows malware to spy on targets

Iranian state-linked hackers use CHOSEN BRICK Windows malware, spread via Telegram and WhatsApp social engineering, to spy on dissidents and journalists worldwide.

US, UK, and Dutch cyber agencies with the FBI issued a joint advisory on Iranian state-linked hackers deploying a Windows malware strain called CHOSEN BRICK against dissidents, activists, and journalists, primarily in the US, UK, and Netherlands. Attacks begin with messages on WhatsApp or Telegram impersonating trusted contacts or technical support, tricking victims into running malicious files disguised as apps such as Pictory, RunwayML, Norton Antivirus, Telegram, and KeePass. The malware persists via Registry Run keys, adds Microsoft Defender exclusions, and uses a per-victim Telegram bot for command-and-control while stealing email, Telegram and WhatsApp data, screenshots, and audio. Stolen data is exfiltrated via Telegram or cloud services like VultrObjects and StorjShare, and sometimes appears on pro-Iranian leak sites, increasing physical risk for dissidents abroad.

BleepingComputerupdated · 3h agofirst · 14h agoThreat actor in the wild 7 sources

Microsoft says Copilot buttons still missing in classic Outlook

Microsoft is still investigating a bug that makes Copilot buttons disappear in classic Outlook for affected M365 Copilot users.

Microsoft confirmed the missing Copilot and Copilot Chat buttons occur after upgrading classic Outlook for Windows to build 20026.20182 and higher, because Outlook cannot locate the MAPI property PR_PROFILE_USER_SMTP_EMAIL_ADDRESS_W. The issue affects Copilot Chat (Basic) and paid M365 Copilot (Premium) customers, and Copilot remains reachable via OWA, new Outlook, and the standalone app. A temporary workaround enables 'Show Apps in Outlook' under Advanced settings, and Microsoft also acknowledged Outlook crashes tied to Kaspersky's Mail Checker (mcou.dll).

BleepingComputer · 23h agoAI industry 2 sources

macOS 27 Golden Gate – Review

Ars Technica reviews macOS 27 Golden Gate, highlighting an unavoidable Apple Intelligence upgrade, new AFM 3 Core models, and dropped Intel Mac support.

macOS 27 Golden Gate delivers the first significant Apple Intelligence upgrade two years after launch, and the toggle to disable the AI features or delete downloaded models is gone. Apple Intelligence runs on a new AFM 3 Core model built in collaboration with Google, while the more capable AFM 3 Core Advanced requires an M3 chip and at least 12GB of RAM. The release drops all Intel Mac support, requiring Apple Silicon, with Sequoia security updates expected to end in fall 2027 and Tahoe's in 2028.

NightEagle Hackers Abuse Microsoft Dev Tunnels and GhostContainer to Breach Russian Companies

NightEagle (APT-Q-95) breached Russian firms using stolen VPN credentials, a GhostContainer Exchange backdoor, Dev Tunnels abuse, and DCSync.

Kaspersky's Securelink analysts, via Securelist, documented NightEagle (APT-Q-95) attacks on Russian companies that begin with VPN logins using stolen valid credentials from Cloudflare WARP and European infrastructure. On Exchange servers the group deployed GhostContainer, a .NET backdoor built from public components including Neo-reGeorg tunneling, CVE-2020-0688 logic, and the GhostWebShell class, controlled through Exchange web headers. The operators exposed RDP through Microsoft Dev Tunnels paired with rdp2tcp, staged tools in GitHub repositories, and exploited BlueKeep (CVE-2019-0708) to create admin accounts before running DCSync against Active Directory.

US, UK, Dutch Agencies Expose Iranian ‘Chosen Brick’ Surveillance Malware

US, UK, and Dutch agencies warn Iranian state actors deploy Windows surveillance malware 'Chosen Brick' against dissidents, activists, and journalists worldwide.

Joint advisories from US, UK, and Dutch agencies describe Chosen Brick, a Windows surveillance malware active since at least 2025 and used by Iranian state cyber actors to track regime opponents. The malware harvests contacts, emails, and social media messages, persists via registry Run keys, evades Microsoft Defender, and uses per-victim Telegram bot IDs for command-and-control and exfiltration. Operators build rapport on WhatsApp and Telegram posing as acquaintances or support staff, disguising payloads as utility software or fake medical documents. Capabilities include screenshot capture, audio recording, credential theft, secondary payload delivery, and data wiping.

SecurityWeekupdated · 3h agofirst · 23h agoMalware in the wild 7 sources

NightEagle Hackers Abuse Microsoft Dev Tunnels and GhostContainer to Breach Russian Companies

Kaspersky links NightEagle (APT-Q-95) intrusions in Russia to stolen VPN credentials, the GhostContainer Exchange backdoor, and Microsoft Dev Tunnels abuse.

Kaspersky's Global Emergency Response Team attributes new intrusions against Russian organizations to NightEagle (APT-Q-95), active since at least 2023 and previously focused on Asia. Initial access uses valid VPN credentials, followed by the .NET GhostContainer backdoor on Microsoft Exchange servers, which abuses ASP.NET view state injection, disables AMSI and event logging, and proxies traffic. Operators moved laterally via RDP, abused Microsoft Dev Tunnels with rdp2tcp, used Impacket atexec and netsh portproxy, and in one case exploited BlueKeep (CVE-2019-0708) to create admin accounts and attempt DCSync.

GBHackersupdated · 3h agofirst · 5h agoThreat actor in the wild 5 sourcesCVE-2019-0708CVE-2020-0688

NightEagle Hackers Target Russian Companies Using GhostContainer Backdoor

Kaspersky links NightEagle (APT-Q-95) intrusions in Russia to stolen VPN credentials, the GhostContainer Exchange backdoor, BlueKeep exploitation, and covert tunneling for espionage.

Kaspersky's Global Emergency Response Team attributes new intrusions against Russian companies to NightEagle (APT-Q-95), active since at least 2023 and previously focused on Asian organizations. The group uses valid VPN credentials, deploys the .NET-based GhostContainer backdoor on Microsoft Exchange servers, and tunnels RDP via Microsoft Dev Tunnels and rdp2tcp. In one incident operators exploited BlueKeep (CVE-2019-0708) to create an administrator account, and they performed DCSync replication against Active Directory to harvest domain password hashes. GhostContainer reuses code from Neo-reGeorg, ExchangeCmdPy.py (CVE-2020-0688), and ysoserial, and tampers with AMSI and Windows event logging to evade detection.

GBHackersupdated · 3h agofirst · 5h agoThreat actor in the wild 5 sourcesCVE-2019-0708CVE-2020-06881

BambooToken: The Malware That Speaks MQTT to Stay Under the Radar

Lumen's Black Lotus Labs uncovered BambooToken, a Windows and Linux malware family using MQTT broker-based C2 and DLL sideloading across Asia since February 2023.

Lumen Black Lotus Labs identified BambooToken, a multiplatform malware family that exchanges commands through MQTT brokers so infected hosts never contact the C2 server directly, active from at least February 2023 through July 2026. The Windows variant sideloads via Tendyron's OnKey hardware-token software used in Chinese banking and government, or impersonates Kingsoft Office, without either vendor's signing certificate being compromised; a Linux build appeared by December 2025 with shell, file transfer, and system information commands. Victims include MikroTik and DrayTek routers in Singapore, Cambodia, and Vietnam reached after internet-wide SNMP scanning, and Lumen cannot attribute the family to any known actor.

Security Affairs · 14h agoMalware in the wild1

German Manufacturer Shrinks Security Alert Response While Protecting 10,000 Endpoints

Vendor case study: a German manufacturer's five-person SOC cut alert triage time using ANY.RUN's cloud sandbox across 10,000 endpoints.

ANY.RUN published a case study in which a five-person security team at an unnamed German manufacturer replaced an air-gapped forensic laptop with its cloud-managed interactive sandbox, protecting roughly 10,000 endpoints and 10,000 users. The vendor claims a median 15 minutes saved per alert, 20-40 daily tasks processed, a 2.5-minute alert-to-isolation target, and a 95% agreement rate between analyst and sandbox verdicts; all figures are vendor-supplied with the customer identity withheld. The writeup also describes detonating a multi-stage phishing chain from a PDF link to a password-protected ZIP to malware execution.

Cyber Security Newsupdated · 3h agofirst · 20h agoIndustry 3 sources

Operation RapidRust: APT36 Deploys RUSTYSHADE, RUSTYMOVE, PSNATCH, and BASHNATCH

Zscaler details Operation RapidRust: APT36 deploys four new tools including RUSTYSHADE, a Rust backdoor using private GitHub repos for encrypted C2.

Zscaler ThreatLabz documents Operation RapidRust, a campaign by Pakistan-aligned APT36 deploying four new tools: RUSTYSHADE, a 64-bit Rust Windows backdoor that uses attacker-controlled private GitHub repositories with a hardcoded PAT and AES-256-GCM-encrypted messages for C2; RUSTYMOVE; PSNATCH, a PowerShell file stealer that scans Office documents, archives, media, and databases modified in the last 120 days and exfiltrates up to 5 GB per run to per-machine GitHub repositories; and BASHNATCH. The backdoor was dropped via PowerShell from attacker-controlled Backblaze B2 storage and supports screenshots, webcam capture, file listing, downloads, and shell command execution.

Zscaler ThreatLabzupdated · 1h agofirst · 20h agoThreat actor in the wild 3 sources

A brief history of AI executives calling for regulation

The Verge chronicles the history of AI executives, from Samuel Butler and Turing-era warnings to Altman and Musk, publicly calling for AI regulation.

The article traces recurring calls for AI regulation, from Samuel Butler's 1863 warnings and Alan Turing's 1951 lecture to Bill Joy's 2000 essay and Microsoft's 2018 facial recognition stance. Modern examples include Elon Musk's 2017 remarks to US governors, the 2023 Future of Life Institute pause letter, and Sam Altman's 2023 Senate testimony. It argues such appeals from industry leaders who profit from AI warrant skepticism.

The Verge · AI · 23h agoAI policy1

APT36 Targets Indian Government and Defense Organizations With New Rust Malware Arsenal

Pakistan-linked APT36 deployed a Rust malware suite, including RUSTYSHADE and USB-spreading RUSTYMOVE, against Indian and Afghan government and defense targets.

Zscaler ThreatLabz tracks the August 2026 activity as Operation RapidRust, introducing the Rust-based RUSTYSHADE backdoor, the RUSTYMOVE removable-media propagation utility, and PSNATCH and BASHNATCH file stealers for Windows and Linux. RUSTYSHADE uses private GitHub repositories as C2 with AES-256-GCM-encrypted traffic, supporting shell commands, screenshots, webcam capture, and encrypted exfiltration, while PSNATCH collects Office documents, archives, images, and databases from user folders and drives D: through H:. Typosquat domains spoofing ThePrint and India Today staged payloads with Backblaze storage, and persistence used scheduled tasks impersonating OneDrive and Microsoft Edge updates.

GBHackersupdated · 1h agofirst · 1h agoThreat actor in the wild 3 sources