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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.
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ST Engineering iDirect iQ-Series Terminals (Update A)
CISA advisory details four flaws in ST Engineering iDirect iQ-Series VSAT terminals <=4.5.2.1, enabling device data theft, CSRF-driven reboots, and local privilege escalation.
CISA's Update A to ICSA-26-183-01 covers ST Engineering iDirect iQ-Series, 3315-Series and 9-Series terminals at firmware <=4.5.2.1, deployed across communications, defense, energy and transportation. CVE-2026-38059 exposes unauthenticated /api/identity and /api/ endpoints leaking serial number, DID, TPK, MAC address and firmware version, potentially enabling terminal impersonation; CVE-2026-38057 is a CSRF flaw letting an attacker force terminal reboots and satellite link loss via /api/reboot. CVE-2026-38056 enables local privilege escalation using the factory-configured technician account (CVSS 3.1 8.8, CVSS 4.0 9.4), and CVE-2026-38058 exposes crackable MD5-crypt root password hashes. All four flaws were reported to CISA by Ahmed Alqahtani of Aramco.
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AVEVA Pipeline Integrity Monitor
CISA advisory details four flaws in AVEVA Pipeline Integrity Monitor <=2025_SP1_P1, allowing information disclosure, weak-hash admin elevation, and cross-site scripting.
CISA published ICSA-26-253-01 covering AVEVA Pipeline Integrity Monitor versions <=2025_SP1_P1_build_7.1.9580.8513. CVE-2026-81821 (hard-coded cryptographic key, CWE-321) lets a user with read access decrypt PIMBoards project files, and CVE-2026-81822 (CWE-327) allows brute-forcing weak password hashes to elevate to PIMBoards administrator; both score 8.4 HIGH (CVSS v3.1). CVE-2026-81823 (CWE-862) permits unauthenticated read operations, and CVE-2026-81824 (CWE-79) enables arbitrary JavaScript execution via socially engineered links. CISA reports no known public exploitation and recommends limiting network exposure of control system devices.
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Digital Watchdog VMAX DVR and NVR Product Lineups
CISA advisory details six flaws, aggregate CVSS 9.6, giving attackers full control of Digital Watchdog VMAX DVR/NVR surveillance devices.
CISA advisory ICSA-26-258-01 discloses six vulnerabilities affecting all versions of Digital Watchdog VMAX A1 G4 DVRs, VMAX IP G4 NVRs, VMAX A1 PLUS, VA1G4, and VG4 recorders, with aggregate CVSS v3 of 9.6. Flaws include an authentication bypass leaking plaintext admin credentials (CVE-2026-68953), hard-coded credentials enabling root FTP access (CVE-2026-66890, CVE-2026-68950), root command execution (CVE-2026-68070), missing authorization on state-changing CGIs (CVE-2026-66887), and predictable session tokens (CVE-2026-66372). Successful exploitation grants full administrative control, live and recorded surveillance access, and a network pivot point. Products are deployed worldwide across commercial facilities, government, healthcare, and transportation sectors.
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CareCam CM2507
CISA advisory: seven flaws in CareCam CM2507 IP cameras enable unauthenticated live video access, privileged ONVIF control, credential recovery, and code execution.
CISA advisory ICSA-26-258-08 discloses seven vulnerabilities in CareCam HMT.CM2507 IP cameras running firmware v251211.1507. Issues include missing authentication for network video streaming (CVE-2026-88259, CVSS 3.1 7.5), an empty password on a privileged ONVIF account (CVE-2026-84398), weak legacy hashing of the root password (CVE-2026-85497, CVSS 4.0 9.3 critical), and cleartext storage of Wi-Fi credentials (CVE-2026-81321). Physical-access flaws allow arbitrary code execution from scripts on removable media (CVE-2026-81305) and unauthenticated bootloader access (CVE-2026-85478). The cameras are deployed worldwide in commercial facilities.
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mySCADA myPRO Manager
CISA advisory reveals unauthenticated privileged API access and arbitrary SMS sending in mySCADA myPRO Manager <=2.1, CVSS 9.8.
CISA advisory ICSA-26-258-03 discloses two vulnerabilities in mySCADA myPRO Manager <=2.1 with aggregate CVSS v3 of 9.8. CVE-2026-73807 (CVSS 9.8) lets unauthenticated network attackers access privileged management functions via the command API, while CVE-2026-82567 exposes an unauthenticated HTTP endpoint that sends arbitrary SMS messages through a connected GSM modem. Deployments span critical manufacturing, energy, food and agriculture, transportation, and water and wastewater sectors. CISA states no known public exploitation has been reported at this time.
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Wärtsilä FOS-Onboard
CISA advisory: two hardcoded cryptographic key flaws in Wärtsilä FOS-Onboard 5.07.0923.01 (CVSS 9.0/9.1) could allow unauthorized updates, code execution, and credential theft.
CISA advisory ICSA-26-258-02 discloses CVE-2026-78225 (CVSS 3.1 9.0 critical), a hardcoded cryptographic server key in the deployer-ng Update Controller of Wärtsilä FOS-Onboard 5.07.0923.01. CVE-2026-81855 (CVSS 3.1 9.1 critical) is a hardcoded client authentication key in the robot testing framework component. Successful exploitation could let an attacker deliver unauthorized updates, execute code, or extract credentials to impersonate a privileged client. The product is deployed worldwide in transportation systems critical infrastructure; Cydome Security reported the flaws and CISA states no known public exploitation exists.
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Orthanc DICOM Server
CISA advisory flags CVE-2026-87020, an integer overflow in Orthanc DICOM Server <1.13.0 causing heap out-of-bounds write and denial of service when decoding crafted PNG/JPEG images.
CISA published ICSMA-26-253-02 for Orthanc DICOM Server versions below 1.13.0, used in healthcare environments worldwide. CVE-2026-87020 (CWE-190) is an integer overflow in pitch and buffer-size computation causing a heap out-of-bounds write when decoding attacker-supplied PNG or JPEG images. An authenticated remote attacker can crash the Orthanc process and cause denial of service; CVSS v3.1 is 8.1 HIGH. CISA states no known public exploitation targeting this flaw has been reported.
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NextGen Healthcare Mirth Connect
CISA warns NextGen Healthcare Mirth Connect <=4.7.1 has SQL injection and XXE flaws enabling credential theft, file writes, and DoS.
CISA released advisory ICSMA-26-253-01 covering three vulnerabilities in NextGen Healthcare Mirth Connect versions 4.7.1 and earlier: SQL injection CVE-2026-82583 (CVSS 8.3), XXE CVE-2026-78224 (CVSS 8.2), and XXE CVE-2026-82578 (CVSS 7.5). Exploitation could expose stored credentials for connected systems, enable arbitrary file writes, and cause denial-of-service conditions. No public exploitation has been reported; the product is deployed worldwide in the Healthcare and Public Health sector.
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CareCam Pro IP Cameras
CISA advisory details hard-coded bootloader credential CVE-2026-85083 in ANJIA AJL33PC0801 CareCam Pro cameras, allowing physical-access firmware compromise.
CISA ICS advisory ICSA-26-251-01 describes CVE-2026-85083, a hard-coded credential (CWE-798) used for bootloader authentication in the ANJIA AJL33PC0801 CareCam Pro IP camera. An attacker with physical access could gain privileged bootloader access and modify firmware and configuration, potentially fully compromising the device. The flaw scores 6.8 on CVSS 3.1 (7.0 on CVSS 4.0), is not remotely exploitable, and no public exploitation has been reported. Affected firmware is linux_linux_202008261138_svn13796 with U-Boot 2010.06; the vendor is headquartered in China with worldwide deployments.
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Tycon Systems TPDIN-Monitor-WEB3
CISA reports three flaws (hard-coded credentials, CSRF, missing authorization) in Tycon TPDIN-Monitor-WEB3 <=2.2.9 enabling MitM, credential theft, or device resets.
CISA published ICSA-26-246-08 for Tycon Systems TPDIN-Monitor-WEB3 versions 2.2.9 and prior, covering CVE-2026-77847 (use of hard-coded credentials, CWE-798), CVE-2026-82712 (CSRF, CWE-352), and CVE-2026-82684 (missing authorization, CWE-862). Exploitation could enable man-in-the-middle attacks, factory resets, credential wiping, or extraction of system credentials, configurations, and flash contents; the CSRF issue scores CVSS 8.8. No public exploitation has been reported; CISA recommends isolating devices from business networks.
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Inductive Automation Ignition
CISA reports a permissions flaw (CVE-2026-77393, CVSS 8.8) in Inductive Automation Ignition <=8.1.53 letting authenticated users create projects; fixed in 8.1.54.
CISA republished Inductive Automation's advisory for CVE-2026-77393, an incorrect default permissions issue (CWE-276) in Ignition 8.1.53 and earlier. The Gateway "Create Project Role(s)" setting shipped blank, allowing any authenticated user who can execute gateway scripts to create projects. Ignition 8.1.54 restricts project creation to Designer sessions and the 8.3 series is unaffected. CISA notes no known public exploitation of this vulnerability.
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Rockwell Automation ControlFLASH
CISA advisory for CVE-2026-12663 (CVSS 7.3) in Rockwell Automation ControlFLASH <=V15.07: world-writable install directory enables local code execution.
Rockwell Automation reported CVE-2026-12663 in ControlFLASH V15.07 and earlier, where the installer grants write permissions on the installation directory to the Everyone group. An attacker could plant malicious code there and execute it at the logged-in user's privilege level. The issue is local only and not remotely exploitable; no public exploitation has been reported to CISA.
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OPCFoundation OPC UA LocalDiscoveryServer (LDS)
CISA warns CVE-2026-77477 (CVSS 4.6) lets local attackers hijack a privileged console during OPC UA LDS installation below version 1.04.420.
CISA published ICSA-26-246-01 for CVE-2026-77477, CWE-250 execution with unnecessary privileges in OPC Foundation UA-LDS-Installers below 1.04.420. An attacker able to launch the installer with elevated privileges and access the keyboard and display can intercept a high-privilege console window during installation and run arbitrary commands. CVSS 3.1 score is 4.6, the issue is not remotely exploitable, and no public exploitation has been reported. Lukas Schumaker of Rockwell Automation reported the flaw to OPC Foundation.
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IXON VPN Client
CISA warns CVE-2026-75925 (CVSS 9.6) in IXON VPN Client <1.4.7 lets attackers inject config directives for root/SYSTEM remote code execution.
IXON's CRLF injection flaw (CVE-2026-75925, CWE-93) in VPN Client before 1.4.7 lets the unauthenticated local configuration service inject additional directives into a file consumed by a privileged subprocess. Injected configuration persists across client and OS restarts, enabling code execution as root or SYSTEM while the VPN connection keeps functioning normally. Deployments span energy, manufacturing, water, and IT sectors; no public exploitation has been reported to CISA.
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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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