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Chinese AI firms are siphoning capabilities from American models, CISA warns
CISA, NSA and FBI warn Chinese AI firms including DeepSeek and Moonshot AI extracted billions of tokens from US frontier models via distillation campaigns.
A joint CISA, NSA and FBI advisory says China-based firms including DeepSeek, Moonshot AI, Alibaba, MiniMax, StepFun and Z.AI have run industrial-scale knowledge distillation campaigns against US frontier models such as Claude, GPT, Gemini and Grok since at least late 2024, likely with Chinese government knowledge. The campaigns used gray-market API proxies called transfer stations, premium account pools and traffic routing to bypass restrictions, evade safeguards and exfiltrate billions of tokens used to train models like DeepSeek R1/V3 and Kimi. The agencies challenge DeepSeek's reported $5.6 million training cost and recommend identity verification, usage monitoring, response variation, differential privacy and indicator sharing as defenses.
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September 2026 Patch Tuesday: Record patch count, 2 zero-days, and a SigRed successor
Microsoft's September 2026 Patch Tuesday delivers a record patch count, fixing two exploited zero-days and a wormable DNS flaw dubbed a SigRed successor.
Microsoft's September 2026 Patch Tuesday sets another record patch count, fixing two vulnerabilities exploited as zero-days: CVE-2026-81963, a Windows Update Stack low-privilege-to-SYSTEM escalation reported by MSTIC, and CVE-2026-85880, a Windows Advanced Local Procedure Call escalation reported by Proofpoint. Zero Day Initiative's Dustin Childs urges priority on a cluster of 20 potentially wormable bugs including DNS RCE CVE-2026-69730, described as a spiritual successor to SigRed, plus Kerberos authentication bypass CVE-2026-69676 that could give any authenticated domain user RCE on domain controllers, and Exchange RCE CVE-2026-55007 via a malicious Visio attachment. All Windows fixes are bundled in cumulative updates, and experts stress prioritizing exploitable, reachable flaws over raw patch counts.
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CISA Red Team Fully Compromised Two Critical Infrastructure Orgs
CISA red teams achieved full domain and cloud compromise at two critical infrastructure orgs; one SOC never detected the intrusion.
CISA advisory AA26-237A documents two simultaneous red team assessments. Organization A (Government Services sector) missed the intrusion entirely, as default credentials on a web app, ADCS ESC1 abuse, and thousands of false-positive alerts let the red team reach sensitive business systems and read SOC email. Organization B (Water/Wastewater sector) detected, isolated, and reimaged hosts quickly, but both orgs lacked Conditional Access for workload identities, and B still exposed DCSync, Golden Ticket, and OT network attack paths.
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CISA Red Team Compromised Two Critical Infrastructure Orgs, One Detected Nothing
CISA red teams fully compromised two critical infrastructure orgs with similar tradecraft; one detected nothing, the other contained phishing within minutes.
CISA advisory AA26-237A, 'A Tale of Two SOCs,' describes two simultaneous red team assessments of a Government Services organization and a Water and Wastewater Systems organization, both compromised to the domain level. Organization A never detected the intrusion, enabled by default credentials, a misconfigured AD CS template (ESC1), cleartext credentials, non-expiring static AWS keys, and over-permissioned Entra ID applications. Organization B detected and isolated phishing within 2-20 minutes, though the red team still reached krbtgt via DCSync from cleartext SCCM credentials. CISA attributes the outcome gap to people and processes rather than the security tools themselves.
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AI-fueled attacks pose ‘active threat’ to water, other sectors, U.S. agencies warn
NSA, CISA, FBI, DOE and EPA warn hackers are using AI-generated scripts to actively attack Siemens S7 PLCs across critical-infrastructure sectors.
A joint cybersecurity advisory from the NSA, CISA, FBI, Department of Energy and EPA warns of an active threat campaign targeting water, food, energy, chemical, manufacturing and commercial facilities via Siemens S7 Series programmable logic controllers. The actors use internet scanning to find exposed or poorly protected PLCs, then deploy AI-generated exploitation scripts disguised as legitimate monitoring tools, an OT first that dramatically lowers the expertise required for ICS attacks. Siemens says no new S7 vulnerabilities are involved, only exploitation of misconfigurations, and it is coordinating with CISA's ProductCERT. The warning follows a joint FBI-EPA advisory confirming attacks at water and wastewater utilities in at least 12 states since July 27.
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