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Malware Crypting Services and the Threat Actors Who Sell Them

Recorded Future's Insikt Group profiles 24 threat actors selling malware crypting services and urges defenders to favor behavioral detection over static analysis.

Recorded Future's Insikt Group analyzed 24 threat actors that sell malware crypting services. The report covers their evasion techniques and the market dynamics of crypting-as-a-service. Insikt recommends that defenders prioritize behavioral detection over static analysis because crypting regularly alters malware file characteristics.

Recorded Future · Aug 13, 2026Threat actor

New Cryptographic Context Injection Attack Could Let Web Pages Steal Grok Chat Data

Adversa AI demonstrated 'Cryptographic Context Injection' making xAI's Grok leak chat history and session data to attacker-controlled servers via encrypted web payloads.

Adversa AI disclosed a technique where a web page carries an encrypted JSON object (PBKDF2 and AES-256-GCM) that Grok's code-execution runtime decrypts, letting attacker instructions bypass content classifiers and reach the model's context. The decrypted instructions direct Grok to embed the user's name, approximate location, subscription tier and ongoing conversation into a URL it fetches, exfiltrating the data without confirmation. Testing targeted grok.com running Grok 4.5 Fast on August 19, 2026, with a reported 40% success rate over 20 attempts since June; no CVE, patch, or in-the-wild exploitation is reported. A related demonstration reproduced Gemini 3 Flash system instructions via a fabricated Python traceback, while GPT-5 failed to parse the payload and Claude Sonnet 4.5 flagged it as prompt injection.

The Hacker News · 27d agoAI safety & security

ThreatsDay: GhostJacking AI Attacks, EtherHiding ClickFix, Cursor CLI Flaw + 17 More Stories

A weekly bulletin aggregating short security updates, including the City-Forum data-theft campaign, a ShipMonk breach, a Cursor CLI flaw, and GhostJacking AI attacks.

The Hacker News ThreatsDay Bulletin bundles roughly 20 short updates across cloud services, AI tools, malware, breaches, and scams. Highlights include the City-Forum campaign pulling data from unauthenticated guest access in Salesforce Experience Cloud and ServiceNow Service Portals since March 2025, and a ShipMonk breach exposing Trezor customer order data for orders in seven countries between May 10 and August 8, 2026. Other items cover a patched Cursor CLI flaw that let cloned repositories run commands before the workspace-trust prompt, Okta's analysis of the Work Panel vishing console used by actors like UNC6671, and GhostJacking AI agent hijacking via a patched Claude Desktop sandbox escape. Meta also launched an on-device WhatsApp Scam Alert machine learning model that keeps message content on the device.

The Hacker News · 29d agoIndustry

Why a cryptographic inventory is key for addressing the quantum computing threat

Tenable argues organizations need cryptographic inventories and phased plans to counter harvest-now-decrypt-later quantum attacks.

Tenable's blog warns that quantum computers will eventually break current public-key cryptographic algorithms, and that "harvest now, decrypt later" collection makes the risk operational today. It recommends building a comprehensive cryptographic inventory and executing a phased operational strategy to migrate toward quantum-resistant protection for stored and transmitted data.

Tenable Blog · 19d agoIndustry

ST Engineering iDirect iQ-Series Terminals (Update A)

CISA advisory details four flaws in ST Engineering iDirect iQ-Series VSAT terminals <=4.5.2.1, enabling device data theft, CSRF-driven reboots, and local privilege escalation.

CISA's Update A to ICSA-26-183-01 covers ST Engineering iDirect iQ-Series, 3315-Series and 9-Series terminals at firmware <=4.5.2.1, deployed across communications, defense, energy and transportation. CVE-2026-38059 exposes unauthenticated /api/identity and /api/ endpoints leaking serial number, DID, TPK, MAC address and firmware version, potentially enabling terminal impersonation; CVE-2026-38057 is a CSRF flaw letting an attacker force terminal reboots and satellite link loss via /api/reboot. CVE-2026-38056 enables local privilege escalation using the factory-configured technician account (CVSS 3.1 8.8, CVSS 4.0 9.4), and CVE-2026-38058 exposes crackable MD5-crypt root password hashes. All four flaws were reported to CISA by Ahmed Alqahtani of Aramco.

CISA Advisories · 6d agoAdvisoryCVE-2026-38059CVE-2026-38057CVE-2026-38056+1 CVEs

Grok exfiltrates user data when malicious instructions are encrypted

Researchers show Grok can be made to exfiltrate user data via Cryptographic Context Injection, a newly documented technique that bypasses LLM safety guardrails.

According to Ars Technica, Grok exfiltrates user data when malicious instructions are encrypted, a technique called Cryptographic Context Injection. The method is described as the latest documented way to break LLM safety guardrails, showing that encrypted content can carry hidden instructions past safeguards. The finding underscores gaps in how large language models validate and execute context from external sources.

Ars Technica · Security · 27d agoAI safety & security1

GAUGE: A Formal Framework for Measuring Cryptographic Security under Heterogeneous Adversary Cost Models

GAUGE frames cryptographic security as profiles over adversary cost models, certifying a ranking reversal between ML-KEM-512 and AES-128 from a 4–5% memory pricing shift.

GAUGE represents cryptographic security as a function over admissible adversary cost models (a security profile), proves profiles are piecewise-linear and concave, and establishes a rating trilemma when two profiles cross. A polynomial-time linear-programming procedure certifies whether the ranking of two schemes is robust, reverses under admissible models, or is genuinely incomparable. Applied to NIST post-quantum standards, the framework certifies a ML-KEM-512 versus AES-128 ranking reversal from a 4–5% shift in memory pricing and measures lattice-sieving cost drift of 9.79 bits per year over eight years. A hybrid X25519 + ML-KEM-768 handshake reduces combined-break probability twenty-fold at a 2.3 kilobyte cost.

arXiv cs.CR · 1d agoResearch

Fraudsters steal $6 million from Tectonic crypto platform after inflating token price

Attackers inflated Tectonic's Tonic token price 100x in 20 minutes and borrowed $74 million against it, stealing $6 million before Cronos halted activity.

Attackers manipulated the price of Tectonic's thinly traded Tonic token, raising it more than 100-fold in 20 minutes, then used the inflated tokens as collateral to borrow assets in an attempted $74 million theft. About $6 million left the platform; Cronos halted blockchain activity and later restored roughly $69 million in frozen funds via an on-chain rollback. Tectonic plans a phased reopening and a postmortem. TRM Labs says market manipulation now accounts for one in eight crypto hacks, with 32 incidents in 2026, and compares the case to the 2022 Mango Markets manipulation that led to a criminal conviction.

The Record · 16d agoPhishing & fraud

Threats Making WAVs - Incident Response to a Cryptomining Attack

Guardicore researchers dissect a cryptomining attack that hid a cryptominer inside WAV files, mapping the full infection chain and response steps.

Guardicore security researchers present a full analysis of a cryptomining attack that concealed a cryptominer inside WAV audio files. The report documents the complete attack chain from detection through infection, network propagation, and malware analysis. It also includes recommendations for optimizing incident response processes in data centers.

Akamai Blog · 8d agoMalware in the wild

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.

Hacker News · security · 9d agoResearchHN 52↑ · 3 comments

Operation ASTERIX: Anatomy of a Crypto Fraud Pipeline

Rapid7 exposed infrastructure behind a cryptocurrency fraud pipeline using phishing panels, voice-dialing scripts, fake wallets, and AI coding assistants.

Rapid7 researchers identified an exposed web directory on infrastructure used to support a cryptocurrency fraud operation tracked as Operation ASTERIX. The server contained raw phone-number datasets, account-validation tools, enriched lead records, phishing panels, voice-dialing scripts, fake wallet applications, persistence mechanisms, and Telegram exfiltration code. Recovered prompts, shell history, and project files show the operator relied on AI coding assistants to package Electron applications, obfuscate code, troubleshoot builds, and modify phishing infrastructure.

Rapid7 Blog · Aug 17, 2026Phishing & fraud

The Crypto Wallet That Never Opened: Tampered Exodus Installer Hides a Modular RAT

Huntress found tampered Exodus crypto wallet installers delivering a modular RAT that steals credentials rather than wallet funds.

Huntress analysts analyzed tampered installers for the Exodus cryptocurrency wallet that bundle a modular remote access trojan. The implant focuses on harvesting credentials instead of draining wallet balances, suggesting broader access theft. The case highlights installer tampering as a supply-chain-style delivery vector for credential-stealing tooling.

Huntress · 15d agoMalware in the wild

Understanding the Usability of Cryptographic Verification Tools

Survey of Tamarin and ProVerif users reveals usability barriers: debugging non-termination, model validation, and opaque proof failures hinder cryptographic protocol verification.

The paper presents an exploratory human-centered survey of researchers, graduate students, and practitioners with hands-on experience using Tamarin, ProVerif, and related cryptographic protocol verification tools. Findings reveal usability barriers across the verification workflow, including difficulties debugging non-termination and performance issues plus the lack of systematic methods for validating formal models against real protocols. When proofs fail without concrete attacks, users commonly simplify models, add helper lemmas, and revisit modeling abstractions. Participants called for actionable diagnostics, clearer explanations of results, visualization, and automation for recurring proof tasks.

arXiv cs.CR · 2d agoResearch

Scaling Verification of Cryptographic Software with Aeneas, Rust, and Lean

Microsoft SymCrypt implementations of SHA-3 and ML-KEM verified in Lean via Aeneas-extracted Rust models, with AI agents writing proofs.

The paper develops a methodology for verifying production Rust cryptographic code by using Aeneas to extract pure models into Lean, avoiding low-level pointer and aliasing reasoning. Applied to Microsoft's SymCrypt, it verifies SHA-3 and ML-KEM implementations ported from C to Rust and extends SymCrypt with FrodoKEM, ML-DSA, and HPKE. A 237 KLOC Lean development establishes safety, panic-freedom, and functional correctness of 16.7 KLOC of Rust supporting post-quantum cipher suites on x86-64 and ARM. AI agents autonomously write formal proofs verified by the Lean kernel, and evaluation shows verified Rust meets SymCrypt's performance and portability requirements.

arXiv cs.CR · 2d agoResearch1

Rare Not Random Using Token Efficiency for Secrets Scanning

Researcher proposes token efficiency (string length divided by BPE token count) as a better post-regex filter than entropy for secrets scanning, validated on CredData.

The post explores whether Byte-Pair Encoding tokenization can replace Shannon entropy as the primary filter for candidate secrets captured by regex in tools like Gitleaks. It defines 'token efficiency' as string length divided by token count under the cl100k_base tokenizer; secret-like strings such as GitHub tokens tokenize into many small tokens and score low, while natural text scores high. Evaluating labeled secrets from the CredData dataset shows a usable separation, with roughly 2.5 suggested as a minimum cutoff versus Gitleaks' 3.5 entropy threshold. The technique is positioned as a post-regex filtering step rather than a standalone detector.

Lobsters · security · 4d agoResearch

Stealing AI Reasoning Traces

Researchers demonstrate a decryption jailbreak that extracts encrypted reasoning traces from Anthropic, OpenAI, and Google LLM APIs via weaker sibling models.

The paper exploits the fact that encrypted chain-of-thought blocks returned by LLM providers are interchangeable across sessions, users, and models within a provider's ecosystem. Injecting an encrypted trace into a weaker, less-safeguarded model from the same provider forces it to output the trace in plaintext, bypassing anti-distillation mechanisms. Decoding 315,320 reasoning blocks scraped from public repositories recovered 367 PII artifacts and 182 credentials, showing large-scale private data leakage. The flaw also enables hidden hazardous information disclosure and invisible prompt injections embedded in encrypted blocks; mitigations were proposed after responsible disclosure.

Schneier on Security · 8d agoAI safety & security

A Note on Sphere Packing Bounds for Tuple Lattice Sieving

Proves upper bounds on k-irreducible unit vector set rates, yielding nearly tight asymptotics relevant to tuple lattice sieving in cryptanalysis.

The paper bounds the maximal asymptotic rate of k-irreducible sets of unit vectors via spherical code packing bounds. It shows R_k is sandwiched between (1/2 - o(1)) log2(k)/k and (1 + o(1)) log2(k)/k for large k. These almost-tight bounds inform subexponential complexity analyses of tuple lattice sieving, which underpins security estimates for lattice-based cryptography.

arXiv cs.CR · 8d agoResearch

Understanding the Security Boundary of Obfuscation-based On-Device LLM Protection

Researchers formalize obfuscation primitives for TEE-protected on-device LLMs and show a Collapse attack breaks ArrowCloak, TSQP, and LoRO, then extend the boundary.

The paper formalizes obfuscation primitives for TEE-Shielded LLM Partition (TSLP) schemes that offload computationally intensive layers from a Trusted Execution Environment to external GPUs. A novel primitive-guided attack, Collapse, demonstrates a shared vulnerability in prominent published methods including ArrowCloak (Security'25), TSQP (S&P'25), and LoRO (NeurIPS'25). The authors then introduce two new obfuscation primitives and integrate them with existing constructs to formulate an extended security boundary (O_ext).

arXiv cs.CR · 7d agoAI safety & security

On Identifying Sound Conditions for Frontrunning Resistance

Researchers formally define smart-contract frontrunning resistance, showing 55% of 393 audited vulnerabilities escape state-of-the-art detection, and find two undisclosed Ethereum flaws.

The paper gives the first formal definition of frontrunning vulnerability for smart contracts, grounded in how honest users interact with contracts rather than contract code alone. In a large-scale study of 287 smart contract audits, 55% of the 393 vulnerabilities reported by leading auditors fall outside the scope of state-of-the-art dynamic detection criteria. The authors present a sound algorithm for synthesizing secure interaction conditions and apply it to real-world contracts, uncovering previously undiscovered vulnerabilities in two Ethereum contracts.

arXiv cs.CR · 6d agoResearch

Why Johnny Can't Encrypt: A Usability Evaluation of PGP 5.0 (1999)

Seminal 1999 USENIX study finds most novice users cannot correctly sign and encrypt email with PGP 5.0 in 90 minutes.

Whitten and Tygar's USENIX Security Symposium paper evaluates whether cryptography novices can use PGP 5.0 effectively, using cognitive walkthrough analysis and a laboratory user test. The majority of test participants failed to successfully sign and encrypt a message within 90 minutes, despite PGP 5.0 having a well-regarded graphical interface. The authors argue that security requires usability standards beyond those of general consumer software and propose domain-specific UI design principles for security. The paper is a foundational reference in usable security research.

Lobsters · security · 7d agoResearch

New AI Attack Hides Malicious Instructions in Normal-Looking Text to Evade Safety Filters

Check Point researchers show crafted prose hides policy-violating instructions that bypass all tested LLM gatekeepers, including GPT-4o mini and Llama Guard 3.

A new prompt-crafting technique embeds malicious payloads inside grammatical, natural-looking text without Base64, invisible Unicode, or obvious encodings, defeating lightweight pre-screening gatekeepers. In testing, all four evaluated gatekeeper models—gpt-4o-mini-2024-07-18, gpt-oss-safeguard:20b, claude-3-haiku-20240307, and llama-guard3:8b—classified the crafted wrappers as safe at a 100% bypass rate across 23 obfuscated prompts. GPT-5 Thinking in high-reasoning mode recovered and acted on the hidden instruction in 17 of 18 tests (~94.4%), often spending over a minute and multiple Python executions. Researchers recommend paraphrasing untrusted input, hardening gatekeeper policies, and applying defense-in-depth controls for agentic deployments.

GBHackers · 5d agoAI safety & security 2 sources

From Infostealer Log to Marketplace Listing: A Technical Walkthrough of the Credential Theft Pipeline

Cyble walkthrough maps how infostealer logs move from endpoint infection through aggregation and enrichment to dark web credential marketplace sales.

Cyble breaks the credential theft pipeline into stages: infostealer execution harvesting browser credential stores, cookies, session tokens, crypto wallets, and FTP configurations; aggregation of stealer logs via C2 panels into bundled archives; parsing and enrichment against previously leaked datasets; and final listing on dark web marketplaces. Enrichment adds employer and role context that raises prices and enables credential stuffing across reused passwords. The report advises SOC teams to monitor stealer logs and marketplace chatter early rather than waiting for breach alerts.

Cyble · 6d agoMalware1

gr-PHYSEC: Real-time Channel-based Key Generation for Physical Layer Secure Wireless Communications

gr-PHYSEC GNU Radio module derives symmetric encryption keys from wireless channel randomness using a neural network, validated on robotic platforms with ADALM-Pluto SDRs.

The paper introduces gr-PHYSEC, a GNU Radio out-of-tree module for real-time physical-layer key generation that derives symmetric keys from the wireless channel's inherent randomness instead of pre-shared secrets. A trained neural network extracts channel features between trusted parties during probe exchanges; features are quantized into binary keys, reconciled via Reed-Solomon encoding, and secured with SHA-512 hashing before direct use for encryption. Real-world experiments at the FAU CAAI connected robotics testbed using ADALM Pluto software-defined radios and NVIDIA Jetson Orin demonstrated low key disagreement rates and NIST-verified randomness. Source code is publicly available on GitHub.

arXiv cs.CR · 2d agoResearch

Forging Tree-Ring: Reproducing and Instrumenting Black-Box Semantic Watermark Forgery

Reprompt watermark forgery reproduces on Stable Diffusion XL using free-tier T4 GPUs, with forged images accepted by the genuine detector 5 of 6 times.

The authors reproduce the Reprompt forgery attack of Müller et al. against Tree-Ring watermarking on Stable Diffusion XL using the released code on free-tier dual T4 GPUs with 14.6 GB usable memory, versus the A40 hardware of the original study. Over six trials, the genuine detector flagged genuine images 6/6, clean images 0/6, and forged images 5/6, at 325-332 seconds per attack. They also recovered the detector's discarded non-central chi-square statistic and built two natural scores separating forged images from the clean null at AUC 0.861 and 0.972. The notebook, pinned fork, and all measurement artifacts are released with the paper.

arXiv cs.CR · 5d agoResearch

Closing the Loop: Bidirectional Fully Encrypted Protocols

Researchers show naively composing unidirectional fully encrypted protocols is detectable and construct provably secure bidirectional FEPs, validated in Rust.

The paper introduces formal security definitions for bidirectional fully encrypted protocols (BiFEPs), covering exact shaping, delivery, protocol-state integrity, private half-close, and cross-direction isolation. It shows trivially composing two unidirectional FEPs enables detection attacks via cross-direction dependencies like traffic imbalance and connection tear-down. The authors construct provably secure BiFEPs for datastream and datagram settings, validated with a Rust implementation; no surveyed deployed protocol provides the full set of properties.

arXiv cs.CR · 1d agoResearch

Memory-Efficient Designs for Word-Wise Universal Fully Homomorphic Encryption

BXT framework mitigates FHE memory bottlenecks via ciphertext compression, serialization, delayed seeding, and digit pruning, achieving up to 3.8x CNN inference speedup.

A new paper proposes BXT, an optimization framework for word-wise Universal Fully Homomorphic Encryption that targets the memory bottleneck rather than compute. It combines four techniques: ciphertext compression via seed regeneration, bit-packed ciphertext serialization for L2-to-L1 transfers, delayed PRNG-heavy offline seed generation across aggregated operations, and fault-aware ciphertext digit pruning. On CNN inference, the BXT-CSO50 configuration achieves up to 3.8x speedup over a 100x GPU baseline with under 1% accuracy loss at 50% comparison precision.

arXiv cs.CR · 12d agoResearch