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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 · 8d agoAdvisory in the wild1

Apple Releases iOS 27 Security Update to Fix Over 120 Vulnerabilities

Apple released iOS 27 and iPadOS 27 patching roughly 126 vulnerabilities across kernel, WebKit, sandboxing, and authentication components; no active exploitation reported.

Apple released iOS 27 and iPadOS 27 on September 14, 2026, fixing approximately 126 vulnerabilities across more than 90 components, including the kernel, WebKit, AppleKeyStore, Sandbox, and TCC. Flaws include memory corruption, information disclosure, denial-of-service, logic errors, sandbox escapes enabling root privileges, and a Bluetooth issue permitting remote code execution in specific circumstances. Apple also shipped iOS 26.7 and iPadOS 26.7 with over 80 fixes for users delaying the major upgrade, including 75 vulnerabilities shared with iOS 27. No vulnerabilities were reported as actively exploited at release time.

GBHackers · 1d agoAdvisory

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.

The Hacker News · 21d agoAdvisory