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AI-powered attack exploited PaperCut flaws to hack 395 organizations
AI-driven campaign exploited PaperCut flaws CVE-2026-81578 and CVE-2026-82078, compromising 440 servers at 395 organizations in 48 countries.
GreyNoise reports a likely Russian-speaking threat actor used hundreds of AI agents combining OpenAI Codex and DeepSeek models to build, test, and refine exploits for CVE-2026-81578 and CVE-2026-82078 in PaperCut NG/MF, launching the campaign on August 31. At least 440 PaperCut instances at 395 organizations across 48 countries were compromised, with the education sector accounting for roughly half of victims and the US most targeted. Attackers harvested credentials from 280 victims, obtained OS or domain secrets from 147, and gained admin privileges at 12 organizations, using LSASS dumping, pass-the-hash, noPac, and DCSync to dump NTDS.DIT. The adversary went from empty workspace to first RCE in under four hours, and compromised at least 11 organizations within 26 seconds once the campaign launched.
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N-able ships second N-central hotfix as attackers keep exploiting CVE-2026-18577
N-able shipped a second N-central hotfix as attackers actively exploit authentication bypass CVE-2026-18577, attributed to ransomware group Storm-1175.
N-able released Hotfix 2 (N-central 2026.3.1.10) to counter ongoing exploitation of CVE-2026-18577, an authentication bypass that evades the patch for the earlier CVE-2026-18556; exploitation was first detected on August 1, 2026. Post-exploitation includes using the Take Control feature to reach managed endpoints, registering a Cloudflare tunnel service for persistence, creating a 'veeam' domain account, resetting admin passwords, and disabling Microsoft and Sophos security tooling. Microsoft analysts link the activity to Storm-1175, which now deploys a new StormEncryptor ransomware strain instead of Medusa, often reaching data exfiltration and ransomware within days. Sophos and Huntress expanded the IOCs and warned that partners who patched late should treat environments as potentially compromised.
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IT threat evolution Q2 2022
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Microsoft Releases Fix for Zero-Day Flaw in July 2022 Security Patch Rollout
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