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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

ZDI-26-657: ASUS Control Center Express Agent Missing Authentication Remote Code Execution Vulnerability

ZDI-26-657: ASUS Control Center Express Agent has an unauthenticated remote code execution flaw, CVE-2026-19397, rated CVSS 9.8.

The Zero Day Initiative published advisory ZDI-26-657 for ASUS Control Center Express Agent. The flaw, tracked as CVE-2026-19397, lets remote attackers execute arbitrary code without authentication. ZDI assigned a CVSS 9.8 rating. The advisory accompanies a vendor patch for affected installations.

ZDI-26-634: Flowise CSV Agent Prompt Injection Remote Code Execution Vulnerability

ZDI disclosed a CVSS 9.8 unauthenticated prompt injection vulnerability in Flowise's CSV agent that allows remote arbitrary code execution.

ZDI published advisory ZDI-26-634 for a prompt injection vulnerability in Flowise's CSV agent component. Remote, unauthenticated attackers can inject prompts to execute arbitrary code on affected installations. ZDI assigned CVSS 9.8 and the issue is tracked as CVE-2026-70477.

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.

Windows 11 cumulative updates KB5124008 & KB5122880 released

Microsoft shipped mandatory September 2026 Patch Tuesday cumulative updates KB5124008 and KB5122880 for Windows 11, fixing vulnerabilities and adding features.

Microsoft released Windows 11 KB5124008 (versions 25H2/24H2) and KB5122880 (23H2) cumulative updates containing the September 2026 Patch Tuesday security patches, described as covering 1,000 vulnerabilities discovered in previous months. The updates are mandatory and add features including movable and resizable taskbars, Start menu customization, a Windows Search option to hide Bing and Store web suggestions, and Administrator Protection, a just-in-time admin privilege feature that is off by default and configurable via Intune OMA-URI or Group Policy.

BleepingComputer · 8d agoAdvisory

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.

Help Net Security · 7d agoAdvisory in the wild1

ZDI-26-652: TrendAI Apex One Security Agent Cache Mechanism Time-Of-Check Time-Of-Use Local Privilege Escalation Vulnerability

ZDI-26-652: TOCTOU race in Trend Micro Apex One cache mechanism, CVE-2025-71416, enables local privilege escalation, rated CVSS 7.8.

The Zero Day Initiative published advisory ZDI-26-652 for the Trend Micro Apex One Security Agent. A time-of-check time-of-use (TOCTOU) flaw in the cache mechanism, tracked as CVE-2025-71416, allows local attackers to escalate privileges after gaining low-privileged code execution. ZDI assigned a CVSS 7.8 rating. A vendor patch is available for affected installations.

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.

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 · 5h agoAdvisory