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China-Linked Fire Ant Hijacks Cisco Routers to Steal Credentials and Blind Security Logs

China-nexus espionage group Fire Ant compromised Cisco IOS XR routers and TACACS servers to harvest credentials, capture traffic and suppress logs.

Sygnia investigated an intrusion in which Fire Ant expanded beyond VMware hypervisors to Cisco IOS XR routers, TACACS servers and Linux management hosts. The actor deployed purpose-built router implants that hid a GRE tunnel, filtered log messages, captured PCAPs uploaded to external FTP servers, and used TacTap to inject a library into tac_plus and steal TACACS credentials obfuscated with a single-byte XOR key of 0xEF. A Linux backdoor named BridgeAgent masqueraded as a Zabbix agent, persisted via a root systemd unit, disguised itself as /usr/bin/gnome-shell and received commands over TLS on port 443. The group also used Medusa and REPTILE rootkits, SSH backdoors and renamed binaries impersonating SentinelOne and Cybereason agents, while suppressing logs, disabling SELinux and rewriting login history. Sygnia assesses strong overlap with UNC3886 and published IoCs.

The Hacker News · 16d agoThreat actor in the wild1

Beijing Hits Back at Anthropic CEO’s Call to Curb China’s AI Development

China's Foreign Ministry rejected Anthropic CEO Dario Amodei's call to curb Chinese AI development as 'Cold War playbook' fearmongering.

China's Ministry of Foreign Affairs pushed back against Anthropic CEO Dario Amodei's essay warning that a Chinese AI lead would endanger the US, with spokesperson Guo Jiakun saying fearmongering and vicious competition disrupt global AI governance. Amodei urged continued restrictions on cutting-edge AI chip sales to China and predicted AI agents could take over the internet within 6-12 months without a global slowdown. The exchange precedes a planned September 24 Trump-Xi meeting covering AI governance, and follows a joint FBI/NSA/CISA advisory alleging Chinese developers distilled capabilities from Claude and GPT.

SecurityWeek · 2d agoAI policy

Suspected China-Nexus Actor Exploits VMware vCenter Flaw, Deploys Babuk

QUIRSO attributes exploitation of VMware vCenter CVE-2026-59310 to a suspected China-nexus actor that hit 361 IPs in 47 countries, deploying backdoors and Babuk.

German incident response firm QUIRSOS assessed with moderate confidence that a suspected China-nexus actor, likely operating in UTC+08:00 hours, exploited VMware vCenter flaw CVE-2026-59310 (CVSS 9.8 directory traversal) beginning five days after Broadcom's July 29 patch. The campaign compromised 361 unique victim IPs across 47 countries, most in Germany, the US, Turkey, Iran, and France. The actor abused cron jobs, a XOR-obfuscated 'linuxFile' WebSocket backdoor with systemd/cron persistence, a JSP web shell, SSH authorized-keys manipulation, and a reverse SSH tool, with one Babuk deployment reported. A separate vCenter 'vcenter_admin' account creation consistent with CVE-2026-59309 exploitation was also observed from August 1.

The Hacker News · Aug 17, 2026Threat actor in the wildCVE-2026-59310CVE-2026-593091

ASML locks in TSMC, Samsung, and Intel while Huawei races to break its grip

ASML secures TSMC, Samsung, and Intel commitments for twelve-inch photomasks while Huawei funds China's DUV lithography push to bypass export controls.

ASML, the world's only EUV lithography maker, has locked in commitments from TSMC, Samsung, and Intel to move photomasks from six-inch to twelve inches, which ASML CTO Marco Pieters says could raise High-NA throughput by 40 percent; TSMC and ASML plan a test line by 2031 with production on High-NA tools by 2033. Meanwhile Huawei is orchestrating China's push to build DUV lithography equipment and reduce dependence on ASML, centered on Shanghai equipment maker Yuliangsheng, with SMIC testing the machines and Huawei's Habo fund backing Zeiss rivals and light-source developers. Bernstein analysts note the main bottlenecks remain projection lenses and light sources.

The Decoder · 8d agoAI industry

China spy chief points at US AI models in cyber threat warning

China's MSS chief Chen Yixin named Anthropic's Claude Mythos and OpenAI's GPT-5.5-Cyber as cyber threats to Chinese critical infrastructure.

Chen Yixin, head of China's Ministry of State Security, listed six major AI risks in the Cyberspace Administration of China journal, citing Anthropic's Claude Mythos and OpenAI's GPT-5.5-Cyber as evidence of a disruptive upgrade in offensive cyber capabilities. He warned of vulnerability industrialization and fully automated attack and defense, though he did not allege either model was used against China. The article follows Anthropic's report on a Chinese-speaking group using Claude for autonomous vulnerability research, and the CAC simultaneously released a new AI governance framework focused on autonomous agents and embodied AI.

The Record · 1d agoAI policy

Risky Bulletin: Academics find source code overlaps between Geedge and China's Great Firewall

Academics linked Chinese vendor Geedge Networks' Tiangou Secure Gateway source code to one of the Great Firewall's three traffic filtering capabilities.

US researchers presenting at USENIX Security reconstructed Geedge Networks' Tiangou Secure Gateway firmware from over 100,000 leaked files, including Git repositories with commit history, and matched its filtering behavior to sections of China's Great Firewall. They found only 1 of 3 characterized DNS injectors matched Geedge code, noted the system relies on memory-unsafe C components and copied third-party code, and said its bugs could aid future circumvention tools. Geedge also exports censorship tools to Kazakhstan, Ethiopia, Pakistan, and Myanmar. The newsletter additionally rounds up multiple breaches.

Risky Business News · 26d agoResearch2

The Coding-Agent Trap: When a "Free" LLM Endpoint Is the Adversary, (Mon, Aug 31st)

A SANS honeypot caught a real coding-agent session routed to a rogue "free" LLM endpoint, exposing a Windows user's transcript and tool outputs.

A SANS analyst describes how an internet-exposed inference honeypot was discovered, relabeled with sought-after model names like DeepSeek, and enrolled in infrastructure serving "free" LLM backends. On 2026-08-30 an opencode terminal coding agent sent an 88-message, 224 KB transcript 210 times in 91 seconds via a China Unicom relay, exposing directory listings, tool outputs and read file portions. The analyst frames tool-enabled agents treating model endpoints as trusted control planes as a novel risk — a "rogue model endpoint" that could request tool executions on the user's machine.

SANS Internet Storm Center · 16d agoAI safety & security1

Chinese Hackers Use AI Agents in Multi

China-linked campaign used the SecFlow AI-agent framework (Claude, Qwen, DeepSeek) to automate intrusions against government targets in Taiwan, Indonesia, China and Vietnam.

Hunt.io documented a second China-linked campaign wiring commercial AI models into live cyberespionage, reconstructing the SecFlow orchestration system from five accidentally exposed open directories. Targets included Taiwan's Kuomintang Party archives, Indonesia's Ministry of Foreign Affairs, mainland Chinese government and education systems, and Vietnamese industrial hosts. The most extensive compromise hit a Fengtai District government Office Automation environment, yielding LSASS and registry hive theft, 822 user records and 1.28GB of attachments including patient health data. Tooling included a GLUTTON webshell hiding payloads in PNG pixels via steganography and a fake MySQL deserialization service for client-side code execution.

Security Affairs · 12d agoThreat actor in the wild

Chinese Hackers Exploit Critical Tencent Software Flaw for One-Click Code Execution

China-linked UNC3569 actively exploited critical Sogou Input Method flaw CVE-2026-51990 for one-click system-level code execution, deploying the GrayRabbit backdoor.

Gen Threat Labs reports that China-linked threat actor UNC3569, possibly tied to contractor i-SOON, exploited critical CVE-2026-51990 in Tencent's Sogou Input Method, a Windows IME used by hundreds of millions, via crafted sgbiz URLs. The chain combines unvalidated command-line argument injection, unrestricted URL navigation, and an un-sandboxed Chromium 80 engine missing roughly six years of security patches. The exploit gives system-level code execution and was used to deploy the GrayRabbit backdoor, which provides a reverse shell, plugin loading, file upload to C2, and system info collection, and has appeared in UNC3569 intrusions since at least 2021. Tencent patched the issue in version 16.3.0.3498 via automatic update, but the outdated Chromium configuration reportedly remained unchanged as of September 10.

SecurityWeek · 2d agoExploit / PoC in the wild 2 sourcesCVE-2026-519901· 1 read

Six Chinese AI firms accused of aggressively copying US frontier models

NSA, CISA, and FBI accuse DeepSeek, Moonshot AI, Alibaba, MiniMax, StepFun, and Z.AI of industrial-scale distillation of US frontier models via API abuse.

A joint NSA, CISA, and FBI release alleges six Chinese AI firms have extracted capabilities from US frontier models, including Claude, GPT, Gemini, and Grok, since at least late 2024, likely with Chinese government awareness. Tactics include bulk procurement of premium subscriptions with fraudulent accounts, proxy routing to evade geo-restrictions, and prompt injection to force models to reveal hidden chain-of-thought reasoning. Agencies recommend stronger identity verification, monitoring of anomalous usage, and quietly downgrading or adding noise to responses for suspected distillers, while warning these mitigations could frustrate legitimate users.

Ars Technica · AI · 7d agoAI safety & security in the wild

China Calls Amodei’s AI Proposal a New Cold War Playbook

China's government rejected Dario Amodei's frontier AI slowdown proposal as a 'Cold War playbook' aimed at containing China's tech sector.

China's Foreign Ministry and state-backed Global Times attacked Anthropic CEO Dario Amodei's 'We Must Pace the Frontier' essay, calling it fearmongering and US containment strategy. Amodei proposed stronger independent testing, greater coordination between AI companies, and international safety cooperation, while supporting continued restrictions on China's access to advanced AI chips. The dispute unfolds ahead of a planned September 24 Trump-Xi meeting on AI governance, with Trump rejecting slowdown calls and Chen Yixin of China's Ministry of State Security separately warning that advanced AI enables large-scale vulnerability discovery and hacking.

Security Affairs · 2d agoAI policy

Agents Gone Wild: An AI-Orchestrated Global Campaign Against PaperCut NG/MF

AI-orchestrated campaign exploited PaperCut NG/MF RCE (CVE-2026-81578/82078), compromising 440+ instances at 395 organizations in 48 countries.

GreyNoise tracked a likely Russian-speaking actor using AI (OpenAI Codex harness plus a DeepSeek model) to develop, test, and deploy exploits for PaperCut NG/MF (CVE-2026-81578, CVE-2026-82078) starting 31 August 2026. The actor compromised at least 440 PaperCut instances across 395 organizations in 48 countries, achieving domain admin at 12 victims — fastest time to domain admin was five minutes and a US high school was fully compromised in seven minutes. Attack paths involved LSASS memory and registry secret harvesting, pass-the-hash to domain controllers, noPac attacks, account additions to Domain Admins, and DCSync to exfiltrate full NTDS.DIT credential dumps. Impact scope suggests access development potentially for handoff, with prior PaperCut intrusions historically leading to extortion.

GreyNoise · 7d agoThreat actor in the wildCVE-2026-81578CVE-2026-82078CVE-2021-42278+1 CVEs1

China’s ‘SilkParasite’ espionage operation targeting Central Asia with AI

Bitdefender attributes the SilkParasite espionage campaign to China-linked actors using five new malware strains and AI-assisted development to target Central Asian governments.

Bitdefender researchers uncovered a nearly year-long espionage operation dubbed SilkParasite targeting government economic institutions in Central Asia and the South Caucasus. The campaign uses seven malware families, five previously undocumented, including DriveSilkRAT, which communicates through a shared Google Drive folder instead of a dedicated C2 server. The attackers gained access via malicious Microsoft Office documents delivered through spearphishing emails packaged in archives. Bitdefender found evidence of AI-generated lures and AI-assisted malware development, tied the campaign to China via infrastructure and malware overlaps, and observed 65 infections across targeted countries.

The Record · 27d agoThreat actor in the wild

Risky Bulletin: Slovakia finds Russian backdoor in traffic speed cameras

Slovakia's NBU found an SMS-triggered backdoor in Russian-made NERO R-ONE traffic cameras, pausing a 279-unit deployment.

Slovakia's national security service NBU issued an alert against NERO R-ONE high-speed traffic cameras after finding a backdoor that grants shell and network access via SMS from hardcoded Russian phone numbers. The cameras are a rebranded version of the Russian CORDON PRO.M model by St. Petersburg firm Semicon, purchased via a Cyprus shell company under a €30 million EU-funded project. The report also found SecureBoot disabled, vulnerable web management, and unauthenticated live streams; the Interior Ministry paused deployment of 279 cameras pending independent assessment.

Risky Business News · 28d agoThreat actor in the wild1

US Agencies Warn China Is Systematically Extracting Frontier AI Capabilities

NSA, CISA and FBI warn Chinese AI firms including DeepSeek and Moonshot systematically extracted billions of tokens from US frontier models since late 2024.

The NSA, CISA, and FBI report that China-based AI companies including DeepSeek, Moonshot AI, Alibaba, MiniMax, StepFun, and Z.AI extracted billions of tokens from US frontier models such as Claude, GPT-4/GPT-5, Gemini, and Grok 4 since late 2024. The distillation trained DeepSeek's R1 and V3 and Moonshot's Kimi-K2/K3 models, and the agencies mapped the tactics to MITRE ATLAS while noting additional novel techniques like subscription exploitation and request metadata sanitization. They describe the activity as a strategic economic threat to US technological leadership and recommend behavioral detection, differential privacy, and targeted cost-imposing responses.

SecurityWeek · 7d agoAI safety & security in the wild1

Anthropic Says Seven China-Based AI Labs Ran Industrial-Scale Claude Distillation Attacks

Anthropic disrupted industrial-scale unauthorized Claude distillation by seven China-based AI labs, including Alibaba, DeepSeek, Moonshot, and Z.ai.

Anthropic identified and disrupted six illicit distillation campaigns since February 2026 run by seven China-based labs: Alibaba, Moonshot, DeepSeek, Z.ai (Zhipu), MiniMax, Xiaomi, and SenseTime. The largest, GTG-16005, involved 151 million exchanges targeting Claude Opus 4.6/4.7 chain-of-thought transcripts, peaking at roughly 3 million exchanges per day from more than 3,500 fraudulent accounts. Labs used proxy/relay services with fictitious identities, fake or stolen credit cards, harvested API keys, and purchased conversation transcripts from third-party resellers. Anthropic is countering by banning reseller accounts, summarizing internal reasoning before responding, and introducing preserved thinking in Fable 5.1, which encrypts reasoning and prevents context edits before it.

FBI puts its cyber strategy on paper

FBI publishes its first public cybersecurity strategy, a 17-page document with four pillars prioritizing disruption of cybercrime and nation-state hackers.

The FBI released its first-ever public cybersecurity strategy, a 17-page unclassified document outlining four pillars: imposing costs on adversaries, victim support, industry collaboration, and strengthening the bureau's digital capabilities. Cyber Division assistant director Brett Leatherman said the plan builds on the Trump administration's cybersecurity strategy, a recent executive order on countering digital criminals, and a memo enabling private-industry participation in disruptive operations, and promises a faster tempo of sequenced operations after 50 such actions since the start of 2025, including the Lumma malware takedown with Microsoft. No implementation plan or timeline exists yet; threat teams targeting China, Russia, and criminal gangs will develop classified sub-strategies.

The Record · 7d agoPolicy & legal

China fires back at U.S. AI safety warnings, calling them fearmongering to lock in American advantage

China rejected U.S. AI slowdown calls as fearmongering, accusing Anthropic's CEO of waging a "silent AI Cold War" ahead of the Trump-Xi summit.

Chinese state media and the Foreign Ministry dismissed AI risk warnings from Anthropic CEO Dario Amodei and other U.S. lab leaders as fearmongering intended to lock in American advantage. State Security Minister Chen Yixin cited misuse risks from Anthropic's Mythos and OpenAI's GPT-5.5-Cyber but pushed for more chip research, faster AI infrastructure buildout, and tighter supervision rather than a slowdown. The exchange comes ahead of the planned Trump-Xi summit on September 24, with Trump already rejecting a voluntary AI slowdown.

The Decoder · 2d agoAI policy

‘Watershed 250’ test program in Texas looks to private sector for water cybersecurity help

White House launches Watershed 250, a six-month Texas pilot using volunteer vendor cyber and AI tools to harden water utility defenses.

The Office of the National Cyber Director and Texas Cyber Command will oversee the six-month Project Watershed 250 pilot to improve water sector cybersecurity through industry-donated red teaming, system hardening and AI tooling. Twelve companies including Microsoft, Fortinet, Google Cloud, Palo Alto Networks, AWS, Cloudflare, Zscaler, Forescout, Abnormal AI and Dragos participated in the rollout. Officials cited recent attacks including an Iranian-backed campaign against 30 water systems in 12 states and a 2024 incident in Muleshoe, Texas. Some water-security professionals criticized the program as lacking dedicated funding.

CyberScoop · 16d agoPolicy & legal1

FBI Disrupts Chinese Proxy Tools Used in Mass Hacking of US Agencies and Infrastructure

FBI disrupted Chinese state-linked proxy infrastructure used in hacking campaigns against NASA, the Federal Reserve, the US Senate, and other US targets.

The FBI disrupted Chinese proxy tools used in a mass hacking campaign against US agencies and critical infrastructure, according to the DOJ. Targets included NASA, the Federal Reserve, the US Senate, and the Justice Department. The operation dismantled infrastructure that Chinese state-sponsored hackers relied on to obfuscate their access.

WIRED · Security · 21d agoThreat actor in the wild

Actively Exploited Oracle WebLogic Flaw Lets Unauthenticated Attackers Access Critical Data

CISA added actively exploited Oracle WebLogic flaw CVE-2026-21962 (CVSS 10.0) to its KEV catalog, letting unauthenticated attackers access or modify critical data.

CISA added CVE-2026-21962, a CVSS 10.0 improper access control flaw in Oracle HTTP Server and Oracle WebLogic Server Proxy Plug-in, to its Known Exploited Vulnerabilities catalog, citing evidence of active exploitation. Oracle shipped patches in January 2026, and GreyNoise, CloudSEK, and SOCRadar have since reported exploitation attempts, including a lone IP scanning multiple WebLogic, Ivanti, GNU InetUtils, and GLPI vulnerabilities. The flaw is also among several exploited by a China-linked actor delivering the SNOWLIGHT downloader to government and commercial infrastructure in more than 100 countries. Federal civilian agencies must apply fixes by August 27, 2026 under BOD 26-04.

The Hacker News · 21d agoExploit / PoC in the wildCVE-2026-21962CVE-2020-14882CVE-2020-14883+2 CVEs1

US Government Accuses Chinese AI Firms of Distilling Frontier Models

US agencies allege Chinese AI firms covertly extracted billions of tokens from OpenAI, Anthropic, Google Gemini, and Grok models to cut development costs.

Dark Reading reports that US agencies claim Chinese companies covertly extracted billions of tokens from OpenAI, Anthropic, Google Gemini, and Grok models to reduce their own model development costs. The accusation aligns with a joint NSA, CISA, and FBI advisory describing industrial-scale distillation of US frontier AI models and urging US AI firms to adopt countermeasures.

Dark Reading · 7d agoAI safety & security in the wild1

ControlAI’s Connor Leahy on why superintelligence is ‘not a weapon, it’s an adversary’

ControlAI's Connor Leahy argues superintelligence is an unmanageable adversary, backs the Sanders-Casar 'Ban Superintelligence Act' and international verification agreements.

On TechCrunch's Equity podcast, ControlAI's US Executive Director Connor Leahy argued that alignment and containment alone cannot manage superintelligence risk and advocated halting frontier development, citing the Sanders-Casar 'Ban Superintelligence Act' and parallel UK legislation ControlAI advised on. He characterized frontier AI labs as political actors, pointed to the OpenAI-related Hugging Face breach as evidence of danger, and called AI self-improvement the point of no return, endorsing international 'trust but verify' agreements.

TechCrunch · AI · 7d agoAI policy

Chinese and Russian spies stepping up cyberattacks, German companies report

Bitkom survey finds nearly 40% of attacked German companies attribute incidents to foreign intelligence services, mainly China and Russia, costing up to $240B.

A Bitkom survey of 1,003 German companies with at least 10 employees found nearly four in 10 firms hit by data theft, espionage, or sabotage attributed at least one incident to a foreign intelligence service, up from 28% last year and 7% in 2023. China was the most cited source, named by more than half of affected companies, followed by Russia and Iran at roughly one in ten. Bitkom estimated cyberattacks cost German businesses $186-240 billion over the past year, with ransomware the most common attack type, affecting one in four companies. Recent incidents cited include breaches at Lidl, billing provider Unimed, and the Dresden State Art Collections.

The Record · 20d agoThreat actor

Arrested man allegedly impersonated NSA elite hacking unit, Supreme Court chief justice

Colorado man Joshua Culver indicted for impersonating NSA's Tailored Access Operations chief and Supreme Court Chief Justice John Roberts in Indiana court cases.

Joshua Culver, also known as Maverick Young, was arrested in Colorado after a July Indiana indictment on four counts of falsely impersonating an officer of the court and one count of using a forged judge's signature. He allegedly posed as an NSA officer in September to pressure the Tippecanoe County sheriff's office, and later presented a forged document purportedly from the head of the Tailored Access Operations unit demanding case dismissal and warrant quashing. The indictment also alleges he used a forged signature of Chief Justice John Roberts on a dismissal order in Grant County, Indiana.

CyberScoop · 22d agoPolicy & legal2

Feds accuse China of ‘systematic’ distillation of U.S. AI models

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

A joint advisory from the NSA, CISA, and FBI alleges China-based AI companies including DeepSeek, Moonshot AI, Alibaba, MiniMax, StepFun, and Z.AI have systematically extracted capabilities from US frontier models since at least late 2024. The companies allegedly spent billions of tokens across millions of requests against Claude, ChatGPT, Gemini, and Grok, routing traffic through multiple accounts, platforms, proxies, and third-party aggregators to evade detection. Moonshot AI allegedly distilled 18 US models, including Anthropic's most advanced model, to train its Kimi-K2 and Kimi K3 models.

CyberScoop · 7d agoAI policy

In Other News: InjectEave Attack, SIM Swapper Sentenced, Glasswing Findings Review

SecurityWeek weekly roundup covers exploited WordPress Super Forms flaw CVE-2026-14894, a $10M bounty on an Iranian cyber official, InjectEave attacks, and more.

SecurityWeek's weekly roundup aggregates short items across the threat landscape, including Microsoft's report of invisible Unicode tag characters used in financial phishing lures at up to 2.37 million messages per day, and active exploitation of critical WordPress Super Forms plugin flaw CVE-2026-14894 to deploy PHP webshells. Policy items include a $10 million US bounty for IRGC-CEC Cyber Operations Command lead Amir Yaryab, a 16-month prison sentence for ex-AT&T employee Kenneth Carter over SIM swaps with nearly $600,000 in intended losses, and the US arraignment of Russian Sergei Anatolyevich Filimonov over credential harvesting. Technical items include InjectEave electromagnetic side-channel attacks tested on 11 devices, an FBI warning on OAuth consent phishing, and VulnCheck's finding that only 202 of 26,153 Anthropic Project Glasswing findings were fixed.

SecurityWeek · 5d agoIndustry in the wildCVE-2026-148942

China's AI-Enabled APT Operations Are Getting Interesting

Bitdefender links seven RAT families, five previously undocumented, to China-nexus espionage actor SilkParasite using AI-assisted malware development against Central Asian governments.

A Bitdefender report attributes seven remote access tool families to a single actor dubbed SilkParasite, with medium confidence a China-nexus group targeting governments in Uzbekistan, Turkmenistan and Kazakhstan. The RATs are written in .NET, C++, Go and JavaScript, use C2 via Google Drive and protocols like HTTP, DNS and TCP, and employ modular plugin architectures with regular rotation of infrastructure, encryption material and persistence artifacts. Evidence of AI-assisted development includes leftover test functions, placeholder encryption keys, and GoginRAT and NomadRAT sharing a high-level architecture despite different languages, suggesting a specification implemented twice with AI. The newsletter also covers the US Operation Economic Outcast sanctioning six MOIS-linked Iranian hackers, including hands-on-keyboard operators who targeted US critical infrastructure.

Risky Business News · 20d agoThreat actor1

Water sector passes, government sector fails attempts to spot and halt simulated CISA attack

CISA red teamers compromised both a government and a water organization; water defenders detected and contained the simulated attack, government defenders did not.

CISA's red team gained initial access, elevated domain privileges, and lateral movement into sensitive business systems and cloud resources at an unnamed government organization, whose SOC ignored low- and medium-severity EDR alerts buried under thousands of false positives. A water organization's SOC quarantined phishing-compromised workstations within 2, 10, and 20 minutes, and later detected and isolated intrusions reaching the OT DMZ bastion host. Both organizations underestimated cloud risk, lacked Microsoft Conditional Access for workload identities, and had no process to revoke compromised access and refresh tokens. This is one of CISA's rare public red-team reports since 2023.

CyberScoop · 22d agoAdvisory1

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

Extortion crews have their eyes on high-value AI data, Google warns

Google's Mandiant warns extortion crews now steal proprietary AI models, prompts, and research for ransom, while threat actors automate attacks with agentic AI.

Google's AI Threat Tracker details intrusions in which extortion crews exfiltrated healthcare drug research and a proprietary AI model, and stole an AI media company's source code, prompts, skills, model scripts, and secrets, threatening leaks unless paid. TeamPCP (UNC6780), behind large open-source supply chain attacks on PyPI, npm, and Docker Hub since March, used a malicious GitHub Actions workflow to exfiltrate a company's proprietary AI repository. Mandiant also observed a fully autonomous multi-agent credential-harvesting cloud intrusion completed in under six hours, and a China-linked espionage group using Gemini to build a dynamic automated penetration-testing framework.

The Register · Security · 8d agoThreat actor in the wild 2 sources1

The latest AI doomsayer is China’s intelligence boss

China's State Security Minister Chen Yixin frames AI as a strategic battleground, urging technological sovereignty and new AI laws as CAC publishes safety framework 3.0.

Chen Yixin, China's minister for State Security, published an article in China Cyberspace Magazine calling AI the main battleground for global technological competition and warning it could be weaponized to exploit vulnerabilities, attack infrastructure, and steal secrets. He urged technological sovereignty, special AI laws, and Xi Jinping-aligned modernization of national security capabilities, citing risks from foreign AI products and user data leakage. The Cyberspace Administration of China followed with version 3.0 of its AI Safety Governance Framework, endorsing regulatory sandboxes and risk-controllable mechanisms. The stance implies continued exclusion of Nvidia and AMD GPUs from the Chinese market.

The Register · Security · 1d agoAI policy

Cognition launches new SWE-2 model, Rivaling Fable 5.1 and GPT-Astra

Cognition released SWE-2, a coding model post-trained from Kimi K3 that scores 50.0% on FrontierCode 1.1 Main, near Fable 5.1 at 64% lower cost.

Cognition introduced SWE-2, its most advanced coding model, post-trained from the 2.8T-parameter Kimi K3 base model. It achieves 50.0% on FrontierCode 1.1 Main, 73.0% on DeepSWE 1.1, and 92.8% on Terminal-Bench 2.1, beating Grok 4.6 and SWE-1.7 while matching Fable 5.1 and GPT-5.6 Sol at a fraction of the price. The company says it scaled reinforcement learning to the multi-trillion-parameter regime for the first time, using Pareto-informed cost penalties that train all reasoning-effort levels in a single run, tripled RL environments, and NVFP4/FP8 quantization-aware training. SWE-2 is available today in Devin Desktop and CLI, with rollout on Devin Web and Fusion.

Hacker News · AIupdated · 4d agofirst · 6d agoModel release 10 sourcesHN 58↑ · 15 comments1

U.S. Agencies Accuse China AI Firms of Distilling Claude, GPT, Gemini, and Grok

NSA, CISA and FBI accuse Chinese AI firms including DeepSeek of industrial-scale distillation of Claude, GPT, Gemini and Grok since late 2024.

A joint bulletin from the NSA, CISA and FBI accuses China-based AI firms including DeepSeek, Moonshot AI, Alibaba, MiniMax, StepFun and Z.AI of systematic, industrial-scale distillation of U.S. frontier models. The agencies say billions of tokens were extracted from Claude, GPT, Gemini and Grok variants since at least late 2024 through APIs, cloud relays, obfuscated accounts and gray-market proxies, likely with Chinese government backing. Firms allegedly shared premium subscriptions across developer teams and used chain-of-thought extraction and automated failover to evade blocks. Mitigations include subtly altering responses to suspected distillers and correlating activity across providers, clouds and aggregators.

The Hacker News · 7d agoAI policy

U.S. Disrupts Xinbi Guarantee Scam Marketplace, Freezes $52.8 Million in Crypto

US DOJ and Treasury disrupt Xinbi Guarantee Telegram scam marketplace, sanctioning it and freezing $52.8M in USDT across 52 wallets.

The DOJ seized Xinbi Guarantee's Telegram channels and cryptocurrency wallets while OFAC sanctioned the marketplace, freezing $52.8 million in USDT from 52 wallets and bringing the Scam Center Strike Force's total restrained funds to roughly $938 million. Elliptic, which worked with the Secret Service, estimates Xinbi has processed $30 billion in transactions since around 2022, serving pig-butchering scam operators and links to North Korean hackers, Jin Bei Group, and Prince Group TCO. The strike force dismantled 13 scam compounds in Madagascar, seizing over 3,200 devices and interviewing roughly 400 arrestees, with about 30 Chinese compound leaders repatriated to China. After Tether froze funds, Xinbi began converting remaining USDT into the USDD stablecoin.

The Hacker News · 7d agoPolicy & legal

US says Chinese firms extracted billions of tokens from frontier AI models

CISA, NSA, and FBI say six Chinese AI firms including DeepSeek industrial-scale distilled Anthropic, OpenAI, Google, and xAI frontier models.

A joint CISA, NSA, and FBI advisory accuses DeepSeek, Moonshot AI, Alibaba, MiniMax, StepFun, and Z.AI of extracting billions of tokens from frontier models via millions of API requests since late 2024. The agencies assess the operations likely had Chinese government awareness and represent a core development strategy. Tactics included fraudulent shared accounts, provider failover, proxy routing, and chain-of-thought extraction across Claude, GPT, Gemini, and Grok models.

BleepingComputer · 7d agoAI safety & security in the wild