Hackers Deploy Hundreds of AI Agents to Compromise 440 PaperCut Servers
AI-agent campaign exploited PaperCut CVE-2026-81578 and CVE-2026-82078, compromising 440 servers at 395 organizations and reaching Domain Admin in 12.
GreyNoise tracked a likely Russian-speaking actor that used AI agents (OpenAI Codex, a DeepSeek model) to exploit an authentication bypass (CVE-2026-81578) and unsafe-reflection RCE (CVE-2026-82078) in PaperCut NG/MF starting August 31, 2026. At least 440 servers across 395 organizations in 48 countries were compromised, with one US high school going from initial access to Domain Admin in seven minutes. Escalation relied on LSASS and registry credential harvesting, pass-the-hash, the noPac technique (CVE-2021-42278/CVE-2021-42287), new Domain Admin accounts, and DCSync to steal NTDS.DIT data. Operators staged registry hives, used Ligolo tunneling and certutil Base64 encoding for exfiltration, and one attempt was blocked by Cloudflare WAF.
PaperCut Flaws Exploited in Attacks on U.S. and European Schools
Attackers are chaining recently disclosed PaperCut flaws CVE-2026-81578 and CVE-2026-82078 to steal credentials and create privileged accounts at US and European schools.
Arctic Wolf researchers observed threat actors exploiting PaperCut servers via CVE-2026-81578 and CVE-2026-82078, chaining an authentication bypass with remote code execution. Post-exploitation included creating a privileged account named Administrator17, downloading credential-harvesting tools with certutil, Meterpreter Java payloads, and registry hive collection to recover the Windows BootKey and reach the SAM database. PaperCut disclosed active exploitation on August 27, 2026, and CISA added both flaws to its Known Exploited Vulnerabilities catalog on August 31. PaperCut has a history of exploitation, including attacks that delivered LockBit ransomware.
Attackers Exploit PaperCut Flaws to Steal Credentials From Schools and Universities
Attackers exploit newly disclosed PaperCut auth bypass CVE-2026-81578 and RCE CVE-2026-82078 to steal credentials from schools and universities in the US and Europe.
Arctic Wolf observed threat actors chaining CVE-2026-81578 (authentication bypass) and CVE-2026-82078 (remote code execution) in PaperCut to execute commands, perform reconnaissance, and create privileged accounts on servers at K-12 schools and universities in the US and Europe. Post-exploitation includes registry hive collection with lsa_collect.exe delivered via certutil, Meterpreter Java payloads from 194.180.48.134, and searches of PaperCut config files for passwords, LDAP bindings, and tokens. Stolen logins could provide a pathway into other critical systems across compromised environments.
Microsoft patches 400+ vulnerabilities, one zero-day under attack (CVE-2026-68820)
Microsoft's August 2026 Patch Tuesday fixes 400+ vulnerabilities, including an actively exploited Windows zero-day (CVE-2026-68820) used by North Korean attackers.
Microsoft's August 2026 Patch Tuesday fixes over 400 vulnerabilities, including CVE-2026-68820, a use-after-free in the Windows Ancillary Function Driver exploited in the wild by North Korean actors deploying a kernel-mode rootkit in Operation Dream Job. Critical unauthenticated remote code execution flaws in Microsoft QUIC (CVE-2026-62815) and Windows DNS (CVE-2026-62878) were also patched, alongside a SharePoint RCE chain combining CVE-2026-63520 with CVE-2026-55040. Researcher Nightmare-Eclipse released ShieldBreak, a PoC bypassing the July RoguePlanet Microsoft Defender patch (CVE-2026-50656), confirmed working by Will Dormann on Windows 11.