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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 · 9d agoAdvisory in the wild1

Microsoft security advisory – September 2026 monthly rollup (AV26-896) – Update 1

Canada's Cyber Centre relays Microsoft's September 2026 rollup; CISA added exploited zero-days CVE-2026-85880 and CVE-2026-81963 to KEV.

Advisory AV26-896 from the Canadian Centre for Cyber Security summarizes Microsoft's September 2026 monthly security rollup, listing affected products across Windows, Office, .NET, Azure, Exchange and SQL Server. It notes Microsoft confirmed CVE-2026-81963 and CVE-2026-85880 have been exploited. On September 8, 2026, CISA added both CVEs to its Known Exploited Vulnerabilities catalog, and administrators are urged to apply the updates.

7th September – Threat Intelligence Report

Check Point weekly bulletin: exploited SonicWall SMA 1000 zero-days (CVE-2026-83548/49), JFrog Artifactory auth bypass, and a 2.8M-patient Baylor Genetics breach.

Check Point's weekly bulletin covers breaches including Thomson Reuters' C-Track platform (court records across 11 US states and Canada), Baylor Genetics (2.8M patients and employees, SSNs included), Hit casinos in Slovenia, and Dropbox (~5,000 accounts via abused Lenovo email verification). SonicWall patched two exploited SMA 1000 zero-days, including CVE-2026-83548, a CVSS 10.0 pre-authentication SSRF, while JFrog fixed exploited authentication bypass CVE-2026-82329 (CVSS 9.8). Malware and actor coverage includes Gambling Goblin, JSCeal, Mirage Kitten's NodeRabbit/PollCat campaign, and DPRK Contagious Interview macOS activity, plus a FalconFlank privilege-escalation PoC against CrowdStrike Falcon.

AI agent authorization risks remain a gap in new NIST-CISA token security guidance

NIST and CISA release IR 8587 guidance on securing signed tokens, but AI agent authorization and delegation risks remain out of scope.

NIST, with CISA support, published 'Protecting Tokens and Assertions from Forgery, Theft, and Misuse' (NIST IR 8587), recommending continuous monitoring and tighter token lifecycle controls for SSO and API access. The guidance does not yet fully address AI agent identity, delegation chains, or prompt injection steering agents with valid tokens, and NIST says new or expanded standards are needed. Experts recommend treating AI agents as low-trust non-human identities, maintaining agent inventories, expiring credentials after task completion, and requiring human approval for high-risk actions. The report references shared-signal mechanisms like CAEP and RISC, and follows a May incident where a CISA contractor GitHub repository exposed AWS and GitHub tokens.

CSO Online · 20h agoAdvisory