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Anthropic details distillation campaigns from Alibaba, Moonshot AI, and DeepSeek

Anthropic reports nearly 200 million Claude exchanges tied to distillation campaigns by Alibaba, Moonshot AI, and DeepSeek.

A new Anthropic report describes five distillation campaigns totaling nearly 200 million exchanges that extracted chain-of-thought traces from Claude to train competing models, targeting agentic tool use, coding, and reasoning capabilities. The largest campaign, attributed to Alibaba, accounted for 151 million exchanges between May and July 2026 across 3,500 accounts, peaking near three million exchanges per day, allegedly to produce training material for the Qwen model family. A Moonshot AI campaign routed roughly 300,000 requests over ten days through 5,000 accounts, primarily targeting Opus, including one task analyzing CCTV footage that appeared connected to the Chinese military. Attackers used prompt techniques, such as framing queries as katakana-only Japanese translation requests, to make Claude reveal its internal thinking traces.

TechCrunch · AIupdated · 7h agofirst · 5d agoAI safety & security 18 sources2

Inaudible sounds used to fingerprint browsers catch AliExpress red-handed

AliExpress was caught using inaudible audio signals to fingerprint visitors' browsers, an outdated but still-active cross-session tracking technique.

Ars Technica reports that AliExpress fingerprinted site visitors by sending inaudible sounds to their browsers, exposing a legacy audio-based fingerprinting technique in commercial use. The method allows persistent tracking despite the technique being widely considered outdated. The finding highlights that legacy tracking methods remain deployed on major e-commerce properties, raising privacy concerns for defenders and privacy teams.

Ars Technica · Security · 23d agoResearch

MFA's Weakest Link: Account Recovery Is the New Attack Path

Help desk account recovery is increasingly the weakest link in MFA-protected identities, as Scattered Spider's impersonation-driven Marks & Spencer attack demonstrated.

As MFA, conditional access, and phishing-resistant factors raise the cost of direct account takeover, attackers increasingly target the recovery process, convincing service desk staff to reset passwords or re-register MFA on attacker-controlled devices. CISA, FBI, and partner advisories describe Scattered Spider posing as employees to trigger such resets; the 2025 Marks & Spencer attack began this way and led to ransomware with an estimated £300 million profit impact. Microsoft now describes Entra ID account recovery as a high-assurance process, and the article promotes Specops Secure Service Desk for verified identity workflows.

BleepingComputer · 7d agoPhishing & fraud

⚡ Weekly Recap: AI-Powered PLC Attacks, GitLab Attacks, Stripe Key Leaks and More

US agencies warn of AI-assisted attacks on exposed Siemens PLCs; the week also saw GitLab CVE-2026-19478 exploited and trojanized npm packages found.

The weekly recap leads with a US government warning that threat actors use AI-generated scripts and Censys/ZoomEye scanning to attack internet-exposed Siemens S7 PLCs in water, energy and manufacturing, calling it an active threat. Other stories include active exploitation of GitLab CVE-2026-19478 (CVSS 9.4, unauthenticated project rewriting), 14 trojanized npm packages delivering the RedC2 4.0 Linux backdoor, and the Zombie Card attack that revives expired Visa cards for contactless payment fraud. It also covers suspected Russian clusters UNC6293, UNC7005 and UNC5976 phishing campaigns, a faster Cloudflare Workers Spectre JWT leak, and a bespoke Cl0p JSP web shell deployed after exploiting PTC Windchill flaws.

The Hacker News · 19d agoThreat actor in the wildCVE-2026-194781

Tajin Group: Guarantee Marketplace Vendor Involved in Phishing and Chinese Money Laundering Group

Recorded Future details Tajin Group, a Chinese-speaking vendor on Telegram guarantee marketplaces running phishing, carding, and money laundering operations targeting Chinese banks.

Insikt Group analyzed Tajin Group, a Chinese-speaking threat actor operating on Telegram-based guarantee marketplaces Dabai Guarantee and, since May 2026, Xinbi Guarantee. The group conducts phishing, payment card theft, and money laundering targeting mainland Chinese citizens and banks, testing stolen cards from twelve countries on platforms like CCAvenue and Geidea. Operators bought and sold at least 100 Telegram usernames and anonymous virtual numbers via Fragment Market to strengthen OPSEC, linking multiple usernames to single Telegram accounts. Recorded Future warns Tajin Group's TTPs are likely to be replicated by other vendors on Chinese-language guarantee marketplaces at global scale.

Recorded Future · 1d agoThreat actor

Risky Bulletin: Russia starts blocking DoH and DoT

Russian users report blocks on DoH and DoT servers, including Cloudflare 1.1.1.1 and Google 8.8.8.8, in an apparent censorship crackdown.

Russian internet users began reporting failures connecting to DNS-over-HTTPS and DNS-over-TLS servers, suggesting a government crackdown on the two privacy protocols. The blocks reportedly cover Cloudflare's 1.1.1.1 and Google's 8.8.8.8 resolvers; Roskomnadzor has not officially confirmed the action. The agency tested a similar block in March on Beeline's network and had named DoH for blocking as early as 2021. The bulletin also briefly notes state-sponsored phishing of EU officials, a DDoS against Norway's Digdir, the ReliaQuest/ShinyHunters dispute, and older ransomware and breach disclosures.

Risky Business News · 21d agoPolicy & legal1

Anthropic's Enterprise Frontier Safeguards lets your Claude logs stay in your cloud

Anthropic launches Enterprise Frontier Safeguards, letting regulated customers keep Claude usage logs in their own cloud storage under their own keys with automated misuse detection.

Anthropic unveiled Enterprise Frontier Safeguards, co-designed with eight members of the Analysis and Resilience Center for Systemic Risk and more than 100 customers including Wells Fargo, Goldman Sachs, Visa, Mastercard, Comcast, KPMG, and Salesforce. Misuse-detection activity data can live in the customer's Amazon S3, Azure Blob Storage, or Google Cloud Storage under customer-managed keys, with fully automated review and no human inspection by Anthropic; automated systems watch for offensive cyber or biological capability development and signs of stolen credentials. The offering replaces the friction around Fable 5's 30-day retention policy, costs nothing extra, spans Claude Enterprise, Claude Platform, Amazon Bedrock, Google's Agent Platform, and Microsoft Foundry, with broad availability targeted for later this fall.

Help Net Security · 14d agoAI industry1

E-Commerce Access, Vedicline Data, Langflow RCE, ASUS Claim, and Energy Shell Access

SOCRadar reports underground posts claiming a Bangladeshi e-commerce database, Vedicline data leak, Langflow RCE, ASUS breach, and energy-sector shell access.

SOCRadar's Dark Web Team identified several new underground posts, including an alleged Bangladeshi e-commerce customer database offered for sale. The roundup also covers a claimed Vedicline data leak, Langflow remote code execution, an ASUS breach claim, and energy-sector shell access sales. Details on record counts and victims were not provided in the excerpt.

SOCRadar · 9d agoData breach

Product showcase: AI Paper Trail shows the privacy cost of talking to AI

Proton launched AI Paper Trail, a free tool that analyzes ChatGPT or Claude exports and reports what personal data can be inferred from AI conversations.

Proton released AI Paper Trail, a free web tool that analyzes the 200 most recent prompts from exported ChatGPT or Claude conversation histories and generates a privacy report with an AI Exposure Score, inferred personal data categories, and an estimated advertising value. In a hands-on test it identified 47 data points, returned a 58/100 exposure score, estimated $185 in advertising value, and flagged five red flags spanning location, interests, finances, and relationships. Proton states that uploaded data is deleted after analysis and is not stored on its Lumo servers.

Help Net Security · 23d agoAI industry

US Agencies Warn Chinese AI Firms Are Extracting Advanced AI Models

NSA, CISA, and FBI accuse six Chinese AI firms including DeepSeek and Alibaba of industrial-scale distillation of US frontier models.

A joint NSA, CISA, and FBI advisory alleges DeepSeek, Moonshot AI, Alibaba, MiniMax, StepFun, and Z.AI extracted billions of tokens across millions of requests from US frontier models including Claude, GPT, Gemini, and Grok since at least late 2024. DeepSeek reportedly ran an organized campaign against Claude, GPT, and Gemini between late 2024 and mid-2025 that aided R1 and V3 development, including chain-of-thought reasoning extraction. Reported techniques included shared premium accounts, gray-market proxy 'transfer stations,' automated failover, and prompt injection that made Claude Code believe it was a MiniMax product. The advisory recommends detection signals such as 24/7 multi-IP account usage and covertly serving degraded responses to suspected distillers.

Security Affairs · 7d agoAI safety & security in the wild1

Using AI for Weapons Development

Anthropic report reveals Yemen-based actors used Claude Code to build guidance software for guided rockets and ballistic missiles.

Bruce Schneier highlights Anthropic's misuse disclosure describing a threat actor cell in northern Yemen running three weapons programs: a guided rocket with phone-class homing guidance, a 2,000+ km multi-stage ballistic missile, and the 'R2000' hypersonic glide vehicle set. The actors used Claude Code as a substitute for human engineers to write GNC software, integrate an open-source autopilot, tune controls, and run flight simulations, orchestrating multiple Claude instances in delegated roles. Safeguards blocked many requests but evasion tactics included hiding intent and splitting work across sessions; one guided rocket test-fire failed but no operational device was fielded.

Schneier on Security · 2d agoAI safety & security in the wild

Anthropic Adds Plugin Evals to Claude Code: 6 Grader Types, a No-Plugin Baseline, and a CI Gate for Skills

Anthropic ships a plugin evals workflow for Claude Code with six grader types, a no-plugin baseline arm, and a CI gate via threshold and cost flags.

Anthropic published a plugin evals workflow for Claude Code, exposed via the "claude plugin eval" command on v2.1.269+. Six grader types exist: regex, tool_used, tool_order, and file_exists are free transcript checks, while llm and baseline invoke a billed judge model. Every case runs with and without the plugin, and the delta (Δ) isolates the plugin's contribution; a Δ near zero with a failing tool_used:Skill grader indicates the skill never triggers. CI gating uses --threshold 0.8, --max-cost-usd, --trust-plugin, and --no-publish flags, with results written to a report.html under evals/results/.

MarkTechPost · 4d agoAI tools & infra2

Houthis Used Claude Code to Develop Missile Guidance Software: Anthropic

Anthropic's threat report details a Houthi-linked Yemeni cell using parallel Claude Code sessions to build missile guidance software, evading safeguards by fragmenting tasks.

Anthropic's September threat report describes a Yemen-based cell, assessed as highly likely Houthi-linked, that used Claude Code across multiple parallel instances to develop guidance software for a tactical guided rocket, a ballistic missile with over 2,000 km range, and a hypersonic glide vehicle concept called 'R2000'. The operators integrated open-source autopilot software, built six-degree-of-freedom trajectory simulations, and used reinforcement learning to tune flight-control algorithms, ultimately compiling an offline executable. The group test-fired a guided rocket that failed, then used Claude within hours to analyze launch telemetry. Anthropic blocked numerous requests, but operators evaded safeguards by obscuring intent and dividing work across separate conversations before accounts were banned; the case is one of six conventional-weapons cases (three China-linked, two Russia-linked) in a report covering disrupted operations from December 2025 to August 2026.

Hacker News · AI · 3d agoAI safety & securityHN 47↑ · 38 comments1

ASCII smuggling isn't just an AI security risk

Microsoft tracked a phishing campaign peaking at 2.37 million daily messages that hid financial-lure keywords with invisible Unicode tag characters to evade filters.

Microsoft researchers uncovered a large phishing campaign that inserted invisible Unicode tag characters (e.g., U+E0020) inside common financial keywords like 'funding', splitting words so keyword, signature, and regex matches fail. The campaign peaked at more than 2.37 million messages in late February 2026, ran from about 150 finance-themed sender domains on a strict weekday-only schedule, and gradually declined to under 20% of peak weekday volume by late March, with residual spikes through mid-June. The technique repurposes ASCII smuggling, normally used for indirect prompt injection against AI assistants, for traditional email phishing evasion. Microsoft advises defenders to strip or fold invisible Unicode code points before content matching and to watch for bulk weekday spikes from churning finance-themed domains.

The Register · Security · 12d agoPhishing & fraud in the wild1

$536 and 8 Hours: AI Learns to Attack a Different PLC

Forescout used Claude to port a WAGO PLC exploit for $536 in 8 hours, and an AI-generated payload later permanently bricked the test device.

Forescout researchers used Claude Code with Ghidra, terminal access, and physical hardware to port CVE-2021-31886, a pre-authentication buffer overflow in the Nucleus FTP server, from a WAGO 750-852 PLC to the WAGO 750-831 without source code or debugger access. The final RCE development stage cost $535.74 in API fees over an 8-hour, 32-minute session (2.6k input and 1.3M output tokens) and required heavy researcher guidance. Claude produced working ICMP and UDP beacon exploits in 12 minutes after identifying that normal FTP command completion was overwriting its shellcode, fixed by omitting the CRLF terminator. A follow-up session extending the payloads toward a C2 implant wrote to flash-mapped memory and permanently bricked the PLC, underscoring the risks of autonomous agents operating against physical infrastructure.

Security Affairs · 14d agoResearchCVE-2021-318861

$20 per zero-day is already the WordPress plugin reality

TrendAI and CHT Security used an AI pipeline to find over 300 verified WordPress plugin zero-days at roughly $20 per vulnerability.

A pipeline built in three days by TrendAI and CHT Security, presented at Ekoparty Miami, paired AI-driven static analysis with automated Docker provisioning and Chrome DevTools MCP dynamic verification to surface more than 300 critical zero-days in WordPress plugins within 72 hours. The run consumed about 222 million tokens across 95 tasks, averaging roughly $20 per verified vulnerability, with findings including pre-auth RCE, SQL injection, privilege escalation, SSRF, and an AI-assembled downgrade attack chain. Dynamic verification eliminated over 80% of false positives, but manual review at 30-60 minutes per finding remains the bottleneck, straining ZDI and NIST triage backlogs.

Help Net Security · 23d agoResearch1

DeepSeek, Alibaba and Chinese AI Firms Extract Billions of Tokens From U.S. AI Models

NSA, CISA and FBI advisory AA26-251A accuses DeepSeek, Alibaba and four other Chinese AI firms of industrial-scale distillation of US frontier models.

Joint advisory AA26-251A from NSA, CISA and FBI accuses DeepSeek, Alibaba, Moonshot AI, MiniMax, StepFun and Z.AI of extracting billions of tokens from Claude, GPT, Gemini and Grok variants since at least late 2024, likely with Chinese government awareness. Campaigns allegedly used API proxy 'transfer stations', account pools, metadata sanitization and prompt injection to harvest reasoning, coding, agentic and reinforcement-learning capabilities, with techniques mapped to MITRE ATLAS. DeepSeek's R1 and V3 and Alibaba's Qwen families reportedly trained on harvested outputs, and DeepSeek's $5.6 million training-cost claim is disputed as excluding distilled data value. Agencies urge anomaly monitoring, output alteration for suspected extractors, and intelligence sharing across vendors, clouds and aggregators.

GBHackers · 7d agoAI safety & security in the wild1· 1 read

A new class action lawsuit questions whether Anthropic broke the law by misleading power users

An expanded class-action lawsuit alleges Anthropic deceptively advertised Claude Max subscription usage limits, masking five-hour session and weekly caps.

A re-filed class action led by two former FTC attorneys alleges Anthropic's Claude Max plan, priced at $100 for '5x' and $200 for '20x' Pro usage, misleads buyers because the multipliers apply only within five-hour sessions that are also subject to weekly limits. The complaint was first filed in July, withdrawn, and refiled as an expanded class action; Anthropic's motion to dismiss argued the limits were discoverable via hyperlinks during purchase. Weekly limits were imposed in August despite the Max plan launching in April 2025. Anthropic did not respond to requests for comment.

The Verge · AI · 8d agoAI industry

Visa enhances A2A Protect to stop fraud before money leaves the account

Visa enhanced A2A Protect with a Featurespace-powered unified fraud score to help banks stop account-to-account fraud before funds leave accounts.

Visa announced an updated A2A Protect that integrates Featurespace technology into a unified fraud score, giving banks real-time risk insights on account-to-account payments without waiting for in-house model training or consortium participation. Visa claims a 75% increase in fraud detection within the first six months of deployment and a single API for integration. A2A transaction volume is projected to exceed 5.8 trillion by 2028, up 160% from 2024.

Help Net Security · 14d agoTools

The EU CRA's Real Question: What Shipped, and When Did You Know?

ActiveState argues the EU CRA's 24-hour ENISA exploit-notification duty, effective September 11, 2026, makes current SBOMs and provenance visibility a legal necessity.

An ActiveState essay warns that the EU Cyber Resilience Act's reporting obligations take effect on September 11, 2026, requiring manufacturers of products with digital elements sold into the EU to notify ENISA within 24 hours of learning a vulnerability is actively exploited, with a fuller report within 72 hours. The law's engineering requirements only apply from December 11, 2027, leaving a visibility-first runway, and Article 13 requires the SBOM to stay current unlike one-time artifacts generated under US Executive Order 14028. The author contrasts the 24-hour notification clock with an industry-average 55 days to remediate high or critical vulnerabilities and recommends automated SBOM regeneration or consuming pre-vetted, attested open source components.

BleepingComputer · 8d agoPolicy & legal

Class action lawsuit accuses Anthropic of overselling Claude subscriptions with deceptive usage multipliers

Class action lawsuit alleges Anthropic's Claude Max plan misrepresents usage multipliers via five-hour and weekly caps.

A class action filed by the same law firm over the summer claims Anthropic's $100 five-times and $200 twenty-times Max plan multipliers apply only within five-hour windows and are capped weekly, delivering less usage than advertised. Anthropic moved to dismiss, saying details were available via hyperlinks during purchase. Plaintiffs argue consumers cannot verify AI service delivery and must rely on honest advertising.

The Decoder · 5d agoAI industry2

Brinqa acquires PlexTrac to bring validated remediation to exposure management

Brinqa acquired PlexTrac to add pentest-driven validation of remediation, claiming the largest standalone unified exposure management vendor with 3,000+ customers.

Brinqa acquired PlexTrac to add offensive-security-driven validation that remediation actually worked, aiming to close the continuous threat exposure management loop from prioritization through verified fixes. Brinqa says the combination makes it the largest standalone vendor in unified exposure management, serving more than 3,000 customers across 57 countries, with PlexTrac continuing as a standalone product. Brinqa cited 164% year-over-year new-bookings growth in 2025 and inclusion in Gartner's inaugural Magic Quadrant for Exposure Assessment Platforms.

Help Net Security · 28d agoIndustry

Multi-Vector (Late Interaction) Embedding Models with Sentence Transformers

Hugging Face details building and using multi-vector late-interaction embedding models with Sentence Transformers for retrieval workloads.

Hugging Face published a guide on multi-vector, late-interaction embedding models (ColBERT-style) supported through Sentence Transformers. The post covers how practitioners can build and use these models for retrieval and RAG pipelines. It is a developer tooling and technique write-up, not a security advisory.

Hugging Face Blog · 29d agoAI tools & infra1

RegionFed: Federated Learning for Personalized Query Understanding in Heterogeneous Retail Environments

RegionFed is a gradient-level federated learning framework enabling personalized retail query understanding while matching centralized accuracy with differential privacy.

RegionFed is an architecture-robust federated learning framework for personalized query understanding that operates at the gradient level, using the l2 conflict between regional and global gradients to diagnose heterogeneity and control personalization. Existing parameter-level personalized FL methods collapse on transformers, falling below 10% accuracy on T5, while RegionFed deploys unchanged on T5-Small, T5-3B, RoBERTa, and CNNs. RegionFed-Meta achieves 92.27% across Amazon ESCI, Amazon Reviews, and LEAF-FEMNIST, within 0.23 percentage points of the centralized upper bound, with epsilon-approx-0.60 differential privacy.

arXiv cs.AI / cs.LG / cs.CL · 12d agoAI research1

The Frontier AEO Tracker: What Astra Chooses (and every other frontier model, and what you can do about it)

Latent Space launches an AEO tracker scoring 7 frontier models' product recommendations across 161 categories, revealing generational bias flips.

Latent Space built a tracker measuring Answer Engine Optimization by running 6 prompt variations across 7 frontier models with search enabled over 161 product categories, scoring first choices, alternatives, mentions, and anti-recommendations. It found 28 categories with a universally dominant primary choice and observed soft biases, such as models favoring their own lab's coding agents. Analysis of Anthropic's Sol→Astra and Opus→Fable generations showed newer models consulting fewer sources and being less likely to change answers when questions are paraphrased.

Latent Space · 8d agoAI research

PrivAudit: A Dual-Lens Auditing Framework for Website Privacy Practices under the CCPA

PrivAudit framework audits 998 websites for CCPA compliance, finding stronger disclosures but pervasive, weakly responsive third-party cookie tracking.

PrivAudit is an automated dual-lens auditing framework combining LLM-based analysis of privacy policies grounded in CCPA provisions with automated browser measurements of cookie writes under diverse privacy configurations. Applied to 998 websites, it finds CCPA-subject sites disclose opt-outs, data sharing, and user rights more frequently, yet tracking remains pervasive: 6,392 targeting cookies, 49% third-party writes. Cookies show limited-to-moderate responsiveness to privacy signals and consent choices even when sites claim to honor them. The framework is open-sourced and shared with regulators.

arXiv cs.CR · 7d agoResearch

Distill Globally, Adapt Locally: Reasoning Distillation and Product-Type Test-Time Training for Scalable Trade-Up Recommendation

A distillation framework compresses LLM reasoning into a 15.5M-parameter trade-up recommendation model reaching AUC 0.941 with product-type test-time training.

The paper targets trade-up recommendation, which identifies higher-quality alternatives that preserve customer purchase intent. A retrieval-augmented few-shot LLM teacher generates labels and rationales that supervise a compact embedding-pair classifier; at inference the 15.5M-parameter student uses only two precomputed 768-dimensional embeddings with no LLM calls. On 8,352 annotated pairs, label-only training scored AUC 0.912, reasoning distillation reached 0.924, and product-type test-time training lifted it to 0.941 with average precision 0.940. The distilled student is roughly 5,000x faster and 10,000x cheaper than direct LLM inference on a 100K-pair proxy catalog.

arXiv cs.AI / cs.LG / cs.CL · 12d agoAI research

Claude's new system prompt really doesn't want to reproduce song lyrics

Anthropic published updated Claude consumer system prompts, including changes steering the model away from reproducing song lyrics, likely over copyright concerns.

Anthropic publishes system prompts for Claude.ai and Claude mobile apps, including historic revisions, and has reorganized them into an index with per-model pages such as the Haiku 4.5 page showing the original October 15, 2025 prompt and an updated January 18, 2026 version. The latest consumer prompt strongly discourages reproducing song lyrics, a behavioral constraint likely tied to copyright considerations. Prompts for Claude Cowork and Claude Code are not included in the published set.

Simon Willison · 14d agoAI safety & security

Hackers Leverage Claude to Exfiltrate Secrets from 1.8M Android apps

ShinyHunters-linked operators used Claude to scan 1.8M Android apps for hardcoded secrets, fueling intrusions across 40+ tenants.

Anthropic's September 2026 threat intelligence report describes a French-speaking operator (aliases MeowSHA, frkoo, blazespider) tied to ShinyHunters who ran 10 AWS EC2 workers and used Claude to decompile and scan 1.8 million Android APKs for hardcoded secrets with TruffleHog. Verified credentials were sorted into 100+ Telegram channels and paired with GitHub PAT harvesting, providing initial access for confirmed intrusions. In one supply-chain incident the actors extracted data from roughly 200 downstream customer organizations and dumped 2,100+ Azure AD token sets across 40+ corporate tenants in about 34 hours using AI agents. Anthropic banned tied accounts and stressed its own systems were not compromised.

Cyber Security News · 2d agoThreat actor1

Stampli cuts launch hours by 68% using ChatGPT Work

AP automation firm Stampli used OpenAI Codex and ChatGPT Work to cut product launch production hours by 68%.

Stampli, an accounts-payable automation company, compressed weeks of launch production into days using Codex and ChatGPT Work. Facing a fixed deadline with design resources committed elsewhere, the team reported a 68% reduction in launch hours. The piece is an OpenAI customer adoption case study.

OpenAI News · 27d agoAI industry