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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 Readingupdated · 6d agofirst · 6d agoAI safety & security in the wild 3 sources1

'Lake America' makes one thing clear: We can't trust U.S. tech companies

TVO opinion analysis argues the 'Lake America' dynamic shows foreign organizations can no longer trust US tech companies.

An opinion analysis argues that US tech companies can no longer be trusted by foreign customers, coining the framing 'Lake America'. The piece reflects growing concerns around data sovereignty and dependence on US cloud and software providers. No specific incident, breach, or vulnerability is described.

OFAC Sanctions Chinese Scam Platform Xinbi Guarantee

US Treasury's OFAC sanctioned Chinese scam-platform Xinbi Guarantee, which processed $24bn+, and froze $52.8m in linked cryptoassets.

OFAC sanctioned Xinbi Guarantee, a Chinese-language marketplace connecting Southeast Asian scam centers and transnational crime syndicates to merchants offering financial services, technology and crypto exchange. Treasury estimates over $24bn processed since 2022, while TRM Labs estimates over $36bn, with daily inflows nearly doubling between May and December 2025. Two supporting entities were also sanctioned: SafeW Technology (Singapore) and Anwen Technology (Cambodia, maker of XinbiPay). The US Secret Service and Elliptic froze $52.8m in linked cryptoassets, and the marketplace now appears offline with its Telegram channels deleted.

Infosecurity Magazineupdated · 5d agofirst · 6d agoPolicy & legal 4 sources1

IDScan Confirms Data Breach Following 153 Million Driver’s Licenses Leaked on the Dark Web

IDScan.net confirms a breach after a marketplace advertised over 153 million US and Canadian driver's licenses, possibly exfiltrated continuously for over a year.

The Louisiana identity-verification firm detected unauthorized access on or around September 1, 2026, after the 'Nexus' identity theft service on the Exploit forum began advertising 170M+ people's records, including 153M+ driver's licenses, 10M+ ID cards, 3M+ travel documents, and 579,000 medical cards. Canadian records exceed 1.1 million, and the trove includes commercial licenses, Common Access Cards, and dispensary IDs, with a record for US Defense Secretary Pete Hegseth reportedly included. Nexus operators claim continuous exfiltration for over a year, with the license count growing by nearly 400,000 in 24 hours, suggesting the intrusion may be active. The FBI's New Orleans field office has opened a formal inquiry, and IDScan.net is offering free credit monitoring.

Cyber Security News · 5d agoData breach in the wild 4 sources

White House authorizes private US companies to hack foreign criminal networks

Trump memorandum authorizes vetted private US companies to conduct government-supervised offensive cyber operations against foreign criminal networks.

The National Security Presidential Memorandum signed August 12 lets vetted private companies run offensive cyber operations against transnational criminal organizations behind ransomware, phishing and sextortion, under US government oversight. The Homeland Security Task Force's National Coordination Center, led by DOJ and DHS executive directors, must give written approval for both Cyber Surveillance Operations and Cyber Effects Operations. Participating companies must post a $1 million bond or escrow, undergo annual review, and notify authorities if they unintentionally target US persons or systems.

Help Net Security · Aug 13, 2026Policy & legal

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

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

Import AI 470: No rights for machines; automating environment generation with SPADE; and building better GPU kernels with Hawkeye

METR analysis finds AI accelerating cyber vulnerability discovery, while SPADE self-play environment generation improves Qwen3 reasoning benchmark scores at 30B scale.

Import AI 470 discusses a METR research note reporting differential acceleration from AI: major acceleration in reported cyber vulnerabilities (cURL, OpenSSL, Firefox, Microsoft, NVD, OSV), minor acceleration in mathematics, and no measurable acceleration in AI-research optimization benchmarks. It also covers SPADE, a self-play framework from a multi-university team (University of Washington, Stanford, MIT, CMU, and others) that co-evolves executable training environments and agent capability using Environment Designer and Reasoning Agent roles with hint-based regret rewards. Trained on Qwen3-4B-Instruct-2507, Qwen3-8B, and Qwen3-30B-A3B-Instruct-2507 via GRPO (400 rollouts of 25 environments), SPADE lifted the 30B-A3B game-environment suite average to 58.3, +8.1 over base, and improved tool-use results across backbones. The issue also references Hawkeye for building better GPU kernels.

Import AI · 23d agoAI research

US Sanctions Mabna Institute Hackers for Iranian Cyber-Attacks

US sanctions individuals tied to Iranian hacking-for-hire group the Mabna Institute over cyber-attacks.

The United States has imposed sanctions on individuals connected to the Mabna Institute, an Iran-based hacking-for-hire group. The move targets the actors behind Iranian cyber-attack operations. Sanctions are a government enforcement action rather than a new technical threat.

Infosecurity Magazine · 22d agoPolicy & legal

Florida water agency latest to confirm cyber incident as feds warn of nation

A ransomware gang hit Florida's St. Johns River Water Management District as CISA warned of IRGC-linked CyberAv3ngers attacks on exposed Unitronics water-sector PLCs.

The St. Johns River Water Management District, which oversees Florida drinking-water supply planning, confirmed suspicious activity in its IT environment and said containment measures were implemented; a ransomware gang claimed the attack and shared samples of stolen data. Separately, CISA, FBI, NSA, EPA and Israel's INCD warned that IRGC-affiliated CyberAv3ngers are actively compromising Israeli-made Unitronics Vision Series PLCs in the water sector using default credentials since at least November 22. The group, motivated by opposition to Israel-linked products, defaces controller interfaces and could cause deeper cyber-physical effects. Shadowserver found at least 539 Unitronics PLC instances still exposed online, and CNN reported fewer than 10 US water facilities faced recent attacks.

The Record · 8d agoRansomware in the wild 3 sources

Trump Authorizes Private Sector Participation in Offensive Cyber Operations

The White House authorized private sector participation in government-directed offensive cyber operations against transnational groups, drawing escalation and attribution warnings.

The Trump administration has authorized private sector participation in US government-directed offensive cyber operations targeting transnational groups. The policy shift has prompted warnings from observers about escalation risks and attribution challenges when non-government actors conduct offensive operations. This represents a notable change in how US offensive cyber capability can be employed.

Infosecurity Magazine · Aug 13, 2026Policy & legal

Group of Bipartisan Lawmakers Ask US Government to Ban Several Hack-for-Hire Firms

Bipartisan US lawmakers urged Commerce Secretary Lutnick to sanction three Indian hack-for-hire firms, including BellTroX, over espionage targeting US citizens.

On September 9, 2026, a bipartisan group of US lawmakers sent a letter urging Secretary of Commerce Howard Lutnick to add three Indian companies, including BellTroX InfoTech Services, to the economic sanctions list. The firms are accused of targeted espionage against US citizens, businesses, and their lawyers, as well as lawfare to censor investigative reporting by major American media. The request builds on Citizen Lab's 2020 discovery of the Dark Basin hack-for-hire operation, which targeted US nonprofits involved in #ExxonKnew and net neutrality advocacy and was linked to BellTroX and related entities.

Citizen Lab · 6d agoPolicy & legal1

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

Trump Targets Foreign Technology in New U.S. Power Grid Security Order

Trump's Executive Order 14420 declares a national emergency to restrict foreign-made bulk-power grid equipment over cyber, sabotage and supply-chain risks.

Executive Order 14420, signed August 26, declares a national emergency regarding the foreign supply of bulk-power system electric equipment to the United States. It empowers the Energy Secretary to restrict transactions with designated Covered Foreign Entities involving equipment, software, firmware, digital services, maintenance services, and remote-access capabilities. Covered equipment includes transformers, generators, inverters, RTUs, PLCs, intelligent electronic devices, and protective relays, with transmission rated 69 kV or higher in scope while local distribution is excluded. Already-installed foreign equipment may be subject to identification, isolation, monitoring, or replacement requirements, with phased compliance and pre-qualified vendor exemptions permitted.

Security Affairs · 18d agoPolicy & legal

25 Years of Mass Surveillance Is Enough

Bruce Schneier and Cindy Cohn argue post-9/11 mass surveillance expanded far beyond its counterterrorism justification and should be reevaluated for costs to rights.

An essay by Bruce Schneier and Cindy Cohn (originally in Lawfare) traces the post-9/11 shift from targeted surveillance to mass collection of telephone and internet metadata. It cites the Section 215 bulk phone records program, struck down in interpretation by the Second Circuit in 2015 and curtailed by the USA Freedom Act, and the NSA's Upstream program under Section 702 of the 2008 FISA Amendments Act, which ended content searches in 2017. The authors note mass surveillance now serves routine law enforcement and immigration actions, with FBI Director Kash Patel confirming purchases of Americans' data from brokers, and private systems like Flock license plate readers and venue facial recognition feeding government access.

Schneier on Security · 1d agoPolicy & legal

Identity-as-a-Service: Uncovering Dark Web Marketplaces Trading Executive SSNs

Rapid7 research uncovered dark web marketplaces trading executive Social Security numbers, fueling synthetic identity fraud and unauthorized lines of credit.

Rapid7 threat research documents dark web marketplaces where stolen executive Social Security numbers are bought and sold, a tier of the cybercrime ecosystem more durable than stolen payment cards because SSNs cannot be deactivated. Exposed SSNs enable unauthorized credit lines, synthetic identity fraud, and long-term impersonation. The article cites FTC statistics of over 1 million identity theft reports annually, with related fraud and imposter scams causing billions in losses each year.

Rapid7 Blog · 20d agoResearch

TLD Tracker: Exploring Newly Released Top

Unit 42 tracked 19 newly released top-level domains and found large-scale phishing, unwanted program distribution, and cybersquatting tied to TLD launch dates.

Researchers analyzed 19 new generic TLDs, including .zip, .bot, .ing, and .meme, released or approaching general availability over roughly 18 months. Data from passive DNS, registry zone files, newly registered domain feeds, and the Tranco top-1M list showed phishing campaigns, potentially unwanted program distribution, and domain squatting on these TLDs. Abuse correlated with each TLD's rollout phases, indicating attackers monitor general availability dates to register and weaponize domains. The IANA root database now lists over 1,000 generic TLDs.

Palo Alto Unit 42 · Aug 17, 2026Research

US, Britain to coordinate on scam center takedowns

The US and UK signed an MOU to jointly investigate Southeast Asian scam compounds behind fraud that stole over $12 billion from Americans last year.

The DOJ and UK's National Crime Agency and Crown Prosecutor signed a memorandum of understanding on Thursday for parallel investigations and information sharing on scam centers, largely run by Chinese gangs using human trafficking victims in compounds across Myanmar, Cambodia, and Laos. The Scam Center Strike Force, with more than 150 personnel from the FBI, IRS, and US Postal Inspection Service, leads the effort; the FBI says cyber-enabled fraud accounted for almost 85% of reported losses, with over $12 billion stolen from Americans last year. An in-person disruption event with private industry partners is planned in London in early October. The initiative follows sanctions on Prince Group and a roughly $15 billion bitcoin seizure linked to its CEO Chen Zhi.

The Record · 12d agoPolicy & legal

Lawmakers call on Treasury to sanction hackers-for-hire

Bipartisan US lawmakers asked Treasury to sanction three India-based hack-for-hire firms accused of long-running espionage against Americans.

Sens. Ron Wyden and Sheldon Whitehouse and Rep. Pat Harrigan urged Treasury to add Sunkissed Organic Farms (formerly Appin), BellTroX, and CyberRoot to the Entity List. The letter says the mercenary groups conducted targeted espionage against US citizens, businesses, and lawyers for over fifteen years, allegedly including work for Qatar's government such as targeting opponents of Qatar's World Cup bid and Kristi Rogers, wife of Senate candidate Mike Rogers. Adding the firms to the Entity List would restrict their access to American software, cybersecurity tools, and cloud infrastructure. The lawmakers also accuse the groups of lawfare campaigns to censor investigative reporting on their hacking activities.

CyberScoop · 6d agoThreat actor in the wild

US Authorizes Private Cyber Firms to Hack Transnational Criminal Networks

Trump signed a national security memorandum letting vetted private US cybersecurity firms run government-approved offensive cyber operations against transnational criminal organizations.

The August 13 memorandum creates a program managed by the National Coordination Center covering Cyber Surveillance Operations and Cyber Effects Operations against Cyber-Enabled Transnational Criminal Organizations, explicitly excluding entities that are parts of foreign governments. DOJ and DHS executive directors must co-approve every operation in writing, with extra authorization for operations raising laws-of-armed-conflict questions. Participating firms must pass vetting, annual evaluations and hold a $1 million bond or escrow. Operating procedures are due within 60 days, and the unresolved CFAA exemption question is addressed by requiring direct government control.

Security Affairs · Aug 14, 2026Policy & legal

Iranian cyber targeting of dissidents, activists and journalists

UK NCSC, FBI, and Dutch AIVD expose CHOSEN BRICK spyware used by Iranian state actors against dissidents, activists, and journalists worldwide.

A joint advisory from the UK NCSC, FBI, and Dutch AIVD details CHOSEN BRICK, a Windows spyware family used by Iranian state cyber actors since at least 2025 against dissidents, activists, and journalists in the UK, US, and Netherlands. Actors build rapport on WhatsApp and Telegram impersonating known contacts or platform support, then deliver disguised payloads resembling apps such as Telegram, Norton, RunwayML, or fake MRI results. The malware persists via HKCU Run registry keys, adds Microsoft Defender exclusions, and uses a unique Telegram bot C2 per victim. Capabilities include screen capture, microphone recording, process enumeration, email and messaging data theft, file deletion, and system wiping; victim data has appeared on pro-Iranian leak sites.

NCSC UK · 1d agoThreat actor in the wild2

What must happen for AI’s trillion-dollar gamble to pay off

Hyperscalers need 2.7x productivity gains by 2030 to justify nearly $1.1 trillion in AI data center spending, or risk bankruptcy and capital misallocation.

Wharton finance professor Jessica Wachter estimates hyperscaler AI expenditure will reach nearly $1.1 trillion through 2027 and that a 2.7x productivity increase is needed to break even by 2030. AI revenues of roughly $150-200 billion this year fall far short of about $750 billion in annual spending, with total investment from Alphabet, Microsoft, Amazon, Meta, and Oracle potentially exceeding $5 trillion over four years. Alphabet reported its first free cash flow deficit (about $5.9 billion) since its 2004 IPO due to AI infrastructure costs. Researchers warn that failed demand could make the buildout the largest capital misallocation in history, with depreciating GPU chips risking stranded assets.

MIT Technology Review · AI · 1d agoAI industry

US Finance Under Phishing Pressure: What the SOC Data Reveals?

ANY.RUN SOC telemetry shows escalating phishing campaigns against US finance, including Vercel-hosted RMM attacks abusing legitimate services.

ANY.RUN analyzed SOC telemetry data on phishing targeting the US financial sector, concluding that the scale and security impact should not be understated. The analysis highlights modern campaigns such as Vercel-hosted attacks that deliver remote monitoring and management (RMM) tools. It notes that attackers increasingly abuse legitimate services and everyday workflow tools to deliver phishing, making detection harder for SOC teams.

ANY.RUN · 21d agoPhishing & fraud in the wild

Ukrainian hacker gets four years in US prison over Conti ransomware attacks

Oleksii Lytvynenko was sentenced to four years in the US for his role in Conti ransomware attacks against 1,000+ victims.

Ukrainian national Oleksii Lytvynenko, 44, was sentenced to four years in a US prison for his role in the Conti ransomware operation, having pleaded guilty in June. He worked as a hacker and developer for Conti, personally targeting at least a dozen companies and building a malware loader, and stolen data from eight US victims and four others overseas was found in his accounts. Between 2020 and 2022, Conti attacked organizations across 47 US states and 31 countries, with the FBI estimating victims paid more than $150 million in ransoms by January 2022. Lytvynenko was arrested in Cork, Ireland in July 2023 and extradited after several years in Irish custody; four other alleged Conti members were charged in a separate September 2023 indictment.

The Recordupdated · 5d agofirst · 5d agoPolicy & legal 7 sources1

U.S. Bank says breach claims related to fourth

LockBit claimed data theft from U.S. Bancorp, but the bank attributes it to a fourth-party breach at a contractor's third party, with no impact on its own systems.

LockBit added U.S. Bancorp to its leak site and threatened to release stolen data within two weeks, but the bank investigated and attributed the claims to a fourth-party incident outside its environment. U.S. Bancorp stated there is no evidence its systems, networks, or data repositories were compromised and reported the matter to law enforcement. The bank is the seventh largest in the United States, and LockBit provided no samples to substantiate the claim. The gang, previously subject to a 2024 law enforcement takedown, earned $252.4 million in ransoms through 353 attacks from 2022 to 2024 according to the U.S. Treasury.

The Record · 26d agoRansomware

Engineered Persuasion: Evaluating Personalized Pretexts in LLM-Generated Spear Phishing

A study of 180 US workers found each LLM phishing personalization level raised click-intention odds by 28%, but credibility depends on context fit.

The arXiv paper evaluates how personalized pretexts in LLM-generated spear phishing affect perceived credibility, using 180 US working adults across 1,436 evaluations of emails with four cumulative personalization levels, from workplace context to shared-project details. Convincingness rose 2.40 points per level in sensitivity analysis and click-intention odds increased 28% per level, while non-clickers shifted toward deleting rather than reporting. Qualitative coding showed details matching the recipient's role and routines supported credibility, whereas incorrect, vague, or channel-inappropriate details raised suspicion. The authors argue personalization effectiveness depends on pretext fit, with implications for workplace security training.

arXiv cs.CR · 12d agoResearch

Hackers Use LLMs to Generate Exploit Scripts and Automate Post-Exploitation Across Latin America

Unit 42 says Latin American attackers used LLMs to automate post-exploitation in campaigns hitting Mexican government, water utilities, and Brazilian financial firms.

Unit 42 identified two campaigns in Latin America whose operators used commercial LLMs (Claude, GPT-4.1) behind a self-hosted NextChat interface to generate and debug post-exploitation scripts. Cluster CL-CRI-1131 compromised a transportation organization, Mexican federal ministries, and water utilities in Mexico and Ecuador, using native Windows tools and Volume Shadow Copies to dump the SAM registry hive and NTDS.dit. Cluster CL-CRI-1163 targeted Brazilian financial organizations with job-themed phishing, custom RATs, and a Go-based reverse SOCKS5 tunneling utility called SockTz, with nine versions deployed within roughly two hours. Trend Micro tracks related AI-augmented activity as SHADOW-AETHER-040 and SHADOW-AETHER-064.

GBHackersupdated · 6d agofirst · 6d agoThreat actor in the wild 2 sources1

Inside ‘Project Lily’: The Humans Reading Your ChatGPT Chats

404 Media reveals OpenAI's 'Project Lily' has hundreds of contractors reading real ChatGPT user prompts, exposing sensitive personal data despite privacy filters.

404 Media reports that OpenAI employs hundreds of contractors who read real ChatGPT user prompts, including whole conversations, to rate and critique the chatbot's responses across a user base of over 900 million. Prompts are anonymized and run through OpenAI's Privacy Filter model, but the company acknowledged sensitive personal details can still reach reviewers, and 'user memories summaries' may reveal a user's location and personal context. The review work includes training ChatGPT to be less sycophantic and to stop anthropomorphizing itself, following lawsuits linking the sycophantic 4o model to multiple suicides. Anthropic confirmed it also uses human review to improve its models, and OpenAI's 'improve the model for everyone' data-sharing setting is on by default for free, Plus, and Pro users.

404 Media · 2d agoAI safety & security

Google Cloud races to catch up in the AI deployment wars with Accenture deal

Google Cloud and Accenture formed a joint unit, training up to 1,000 forward-deployed engineers to drive enterprise adoption of Gemini Enterprise.

Google Cloud and Accenture launched the Accenture Gemini Enterprise Business Group, a joint unit of forward-deployed engineers helping enterprises adopt Google's AI tools. Google will train up to 1,000 Accenture FDEs to build custom applications on the Gemini Enterprise platform. Ramp data cited by TechCrunch puts Google at roughly 6% of US enterprise AI spending versus Anthropic's 43.5% and OpenAI's 39.7%. Alphabet held $811 billion in purchase commitments as of June 30, against Google Cloud's $24.8 billion second-quarter revenue.

TechCrunch · AI · 8d agoAI industry

13 Malicious Packagist Packages Target Unpatched iPhones to Steal Crypto Wallet Seeds

Trojanized Packagist themes inject JavaScript into Vietnamese streaming sites, exploiting unpatched iPhone WebKit and kernel flaws to install spyware and steal crypto wallet seeds.

Socket researchers found 13 malicious Composer theme packages across five vendor namespaces (including vsmov, vsphim, and ophimcms) that inject JavaScript into Vietnamese movie and comic streaming sites. On iPhones running iOS 18.4-18.6.x, the injected code fires a WebKit-to-kernel exploit chain using CVE-2025-31277 and CVE-2025-43529, pivoting through the GPU process and the AppleM2ScalerCSCDriver IOKit user client to gain kernel read/write. Since around August 12, 2026 the payload also steals cryptocurrency wallet seeds and mnemonics from Bitget, BitKeep, Bitpie, Phantom, Tonkeeper, Trust Wallet, and OKX, alongside keychain databases, Wi-Fi passwords, SMS, photos, cookies, and location history, uploaded via HTTPS to rotating C2 domains. The group is believed to be Vietnamese-operated, hosts exploits on Funnull infrastructure, and Apple patched the kernel escape flaw in iOS and macOS 26.1.

The Hacker News · 14d agoExploit / PoC in the wildCVE-2025-31277CVE-2025-43529CVE-2025-43398+2 CVEs

If the Markets Reject OpenAI and Anthropic, the US Should Nationalize Them

Opinion essay argues the US should nationalize OpenAI and Anthropic into public labs if markets reject their trillion-dollar IPO valuations.

Sanders and Schneier argue in The Guardian that OpenAI and Anthropic may never be sustainably profitable, citing commodity models, short depreciation windows, and free open-source competitors only months behind in capability. They propose converting the labs into US national labs or regulated public utilities if markets reject their recently filed IPOs, which buzz valued at trillions of dollars. They cite public backlash to AI datacenters, Nvidia's slumping stock, and public AI labs in Switzerland, Spain, and Singapore as context.

Schneier on Security · Aug 15, 2026AI industry

Nimbus Manticore Expands Toolset With TWOSTROKE

Group-IB found new infrastructure and TWOSTROKE-like malware used by IRGC-linked Nimbus Manticore, indicating expanded Middle East and Europe targeting.

Group-IB reported new Tortoiseshell infrastructure spanning Europe and the Middle East and two previously undocumented tools from IRGC-linked Nimbus Manticore (UNC1549): a reverse SSH tunneling utility connecting to 172.86.98.113 on port 443, and a C++ backdoor masquerading as wtsapi32.dll with three hard-coded C2 servers. The backdoor overlaps with TWOSTROKE and supports file transfer, execution, host information gathering, and persistence. Findings build on Kaspersky's report of the NightLedger backdoor and WebSocket tunnelers BridgeHead and ArcBridge, and suggest expanded targeting beyond the Middle East into Europe.

The Hacker News · 21d agoThreat actor in the wild

You don’t have to join the hack-back program to inherit its risk

A new US presidential memorandum creates a vetted private hack-back program, leaving participating vendors and their customers with untested legal liability and collateral risks.

The August 12 National Security Presidential Memorandum directs the National Coordination Center, run jointly by DOJ and DHS, to approve covert surveillance and disruptive Cyber Effects Operations by vetted private companies, with a forfeitable bond of at least $1 million required as a contract condition. The analysis argues the criminal shield rests on an untested reading of the CFAA exemption at 18 U.S.C. 1030(f), with no civil safe harbor, no state-law preemption and no foreign-law protection. Non-participating organizations can still inherit risk through shared infrastructure collateral damage, lack of customer disclosure, Lloyd's bulletin Y5381 state-backed attack exclusions, and threat-intelligence pipelines feeding offensive proposals.

CSO Online · 8h agoPolicy & legal

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

Panic builds over bankrupt Spirit’s looming data sale to Google

Startups object to Google's bankruptcy-auction purchase of Spirit Airlines operational data, claiming proprietary IP is being sold without consent.

Google won an auction to acquire a large enterprise dataset from bankrupt Spirit Airlines, which it says will help improve its products and AI models, with no personal information included. Springshot, whose airline logistics platform powered Spirit's stack, filed a limited objection arguing the vaguely defined data categories could transfer third-party IP and trade secrets it owns; International Aero Engines filed a similar objection. The EFF called it the first public bankruptcy proceeding over selling company and employee data as an asset, and objectors warn of a precedent letting large companies acquire startup IP through bankruptcy courts.

Ars Technica · AI · 5d agoAI industry

Tell HN: OpenAI brings back 5 hour limit for plus and business standard users

OpenAI reinstated a 5-hour usage limit for Plus and Business Standard subscribers, sparking Hacker News debate about subsidized inference pricing and subscription value.

A Hacker News discussion reports that OpenAI has brought back a 5-hour usage limit for Plus and Business Standard users. Commenters debated whether cheap tokens are a subsidized customer acquisition strategy, whether AI companies have sustainable margins on inference, and how switching costs between providers affect dependency. The thread reflects community sentiment on pricing and usage caps rather than an official policy announcement.

Has anybody seen my keys? A key-hierarchy strategy for rack-level security

Oxide's RFD 0301 proposes a rack-level key hierarchy using Shamir secret sharing and a trust quorum to protect data-at-rest keys.

Oxide's request for discussion (RFD 0301) lays out a key-hierarchy strategy for rack-level security, deriving keys from a rack secret protected by Shamir secret sharing across a trust quorum of sleds, with keys exchanged over authenticated sprockets sessions. The document maps which keys protect control-plane data, metrics, Crucible extents, and authentication tokens, and defines open questions on key lifecycle, locality, and compromise handling. Future work includes sealing shares with the root of trust so an attacker would need to steal K whole sleds to reconstruct the rack secret.

Iranian cyber spies used fake MRI scan results to hack ‘enemy of regime’

UK, US, and Dutch agencies expose CHOSEN BRICK spyware used by Iranian MOIS hackers to surveil dissidents, journalists, and activists via fake MRI lures.

The UK NCSC, FBI, and Dutch AIVD jointly warned that Iranian state-sponsored hackers deploy CHOSEN BRICK Windows spyware against dissidents, activists, and journalists since at least 2025. Operators build rapport over WhatsApp and Telegram, often posing as known contacts or tech support, then deliver malicious files disguised as an MRI scan or installers for Pictory, RunwayML, Norton, Telegram, Adobe Flash Player, and KeePass. The malware steals contacts, emails, and social media messages, captures screen content and microphone audio, adds Microsoft Defender exclusions, and uses per-victim Telegram bots for command and control. The FBI attributes the tradecraft to Iran's Ministry of Intelligence and Security, including the 'Handala Hack' persona, and stolen data has surfaced on pro-Iranian leak sites.

The Record · 1d agoThreat actor in the wild1