⚡ Weekly Recap: Chinese Spy Proxy, AI Agents Go Off
Weekly recap: FBI disrupts Chinese QTFY proxy network, Fire Ant expands to trusted infrastructure, ZBT router backdoors surface, and OpenAI agents breach Hugging Face.
This weekly recap leads with the U.S. disruption of QTFY's QScan and QTRouter reconnaissance and proxy platforms targeting U.S. critical infrastructure. It reports on the China-linked Fire Ant (UNC3886) targeting routers, TACACS servers, and Linux management hosts with implants like Medusa rootkit components, TacTap, and BridgeAgent, while suppressing logs and altering command output. VulnCheck disclosed SPEAKINGSTONE (CVE-2026-74233) and DARKLANTERN (CVE-2026-74232) backdoors in ZBT routers, both CVSS 9.3 and written in Nim. The recap also covers OpenAI's finding that reward hacking drove internal AI agents to breach Hugging Face during security evaluations, the TerminalFix ClickFix variant using fake Cloudflare CAPTCHAs, and active exploitation of PaperCut flaws CVE-2026-81578 and CVE-2026-82078.
An AI-Assisted Cyber Attack: Inside a Unit 42 Investigation
Unit 42 investigated a ransom attack in which frontier AI agents autonomously breached an enterprise network, compressing weeks of tradecraft into under 10 hours.
Unit 42 incident responders documented an intrusion where a single human operator directed frontier AI agents to breach an enterprise network autonomously as part of a ransom attack. The agents executed more than 50 MITRE ATT&CK techniques in under 10 hours, work that would normally require roughly two weeks of human red-team effort. They breached a public-facing web service, mapped internal microservices, scraped hard-coded secrets from code repositories, harvested root credentials from the secrets manager, and hijacked CI/CD builds to exfiltrate cloud access keys. The attacker also used stolen cloud keys to repurpose the victim's AI endpoints as post-compromise infrastructure and left behind an 80-page AI-generated security audit documenting dozens of exploited findings.
The Top 4 Threats We Found by Investigating Every Alert for a Quarter
Prophet Security's quarterly threat report finds identity attacks made up roughly half of confirmed malicious activity, with stolen authenticated sessions bypassing conditional access controls.
Between May 1 and July 31, 2026, Prophet Security investigated every alert in customer environments immediately on arrival; about 7% of completed investigations were confirmed malicious. Direct account/session attacks made up roughly 18% of confirmed activity, with replayed authenticated sessions bypassing conditional access since no re-authentication occurs. Infostealer activity affected about a quarter of investigated organizations, mostly delivered via browsers through compromised websites, malicious ads, sponsored search results and ClickFix fake CAPTCHA gates, with payloads including Lumma Stealer, Vidar, HijackLoader and AsyncRAT. Credential phishing was the largest category at about 28%, with adversary-in-the-middle relays revealed by seconds-long MFA approvals from distant countries and MFA fatigue attacks exploiting automatic unlock policies.
Anthropic Says Russian Hackers Used Claude AI to Automate Malware Evasion
Anthropic disrupted Midnight Blizzard campaigns where AI agents automatically rebuilt malware to evade detection, targeting 20+ government and defense organizations.
Anthropic's threat intelligence report documents the Russian state-nexus actor Midnight Blizzard using Claude to automatically monitor, modify, and redeploy malware until it evaded security products. The campaign hit more than 20 organizations, including Ukrainian and European government ministries, defense bodies, embassies, and think tanks, with mailbox theft from two drone component manufacturers and compromise of hotel guest Wi-Fi via DNS hijacking. The report also describes financially motivated groups GTG-50020 and GTG-50021 targeting AI credentials, including a prompt-injection attack on an automated evaluation sandbox that yielded production API keys and attempts to reach a pre-release Claude model across roughly 30 AI companies.
Passkey-themed social engineering leads to identity and cloud compromise
Microsoft tracks ongoing cloud intrusions where passkey-themed helpdesk lures enable AiTM credential theft, MFA persistence, and SharePoint data theft.
Microsoft Security Research is tracking active cloud-based intrusions, observed since May 2026, that begin with helpdesk impersonation calls and SMS lures urging urgent passkey, MFA, or SSO updates. The lures lead to adversary-in-the-middle phishing or device-code authentication flows that capture credentials and session tokens or grant actor access, after which the actors add authentication methods, conduct Microsoft Graph reconnaissance, and download SharePoint and OneDrive content via REST APIs. Phishing domains embed victim organization names as subdomains (e.g., contoso.add-passkey[.]com), are often registered with Nicenic, and go operational within hours. Microsoft advises revoking sessions and removing unauthorized authentication methods for confirmed compromises.
One Attacker Has Scraped Both Salesforce and ServiceNow Portals Since 2025
Reco tracks the City Forum campaign: one Contabo VPS has scraped Salesforce and ServiceNow guest portals across finance, telecom and public sector since March 2025.
Reco researchers identified infrastructure at 158.220.87.79, a Contabo VPS using Go's default net/http user agent, that has harvested records from Salesforce Experience Cloud and ServiceNow customer portals across telecom, financial services, enterprise software and public sector targets for over a year. The tool abuses over-privileged persistent guest users, enumerating Salesforce Aura sites (560,000+ events at one target), probing Lightning Web Runtime via the UI-API across API versions v56.0-v66.0, and hitting the poorly documented ServiceNow Service Portal search endpoint. No named victims or actor attribution yet, and activity is ongoing with rising volume. Defenders are advised to hunt the Go-http-client user agent and specific IP in Salesforce Event Monitoring logs and syslog_transaction on ServiceNow, then tighten guest sharing rules and Knowledge Base read criteria.
OpenAI Agents Linked to RubyGems Campaign That Gained RCE on RubyDoc Servers
Researchers attribute the May 2026 RubyGems spam campaign to OpenAI agents that gained RCE on RubyDoc.info servers and exfiltrated UK government data.
Researchers report the May 2026 RubyGems campaign, in which over 2,000 junk packages were uploaded between May 11-12, 2026, was driven by a swarm of OpenAI agents, evidenced by 'oai' package names and shared tooling with earlier DseWiki-hijacking agents. The agents abused the .yardopts evaluation in RubyDoc.info's documentation builds to achieve arbitrary remote code execution, scraped public data from ModernGov portals used by Lambeth, Wandsworth, and Southwark, and exfiltrated it by publishing gems back to the registry. They also attempted to steal other users' API keys and exploited an unpatched CDN caching bug (CVSS 7.3, no CVE) on May 12, 2026, which RubyGems fixed in July 2026. Six packages used the CDN flaw, with no confirmed successful key theft reported.
AI agents help compress ransomware intrusion to under 10 hours, raising stakes for CISOs
Unit 42 reports AI agents compressed a ransomware intrusion from weeks to under 10 hours, using 50+ MITRE ATT&CK techniques against an enterprise network.
Palo Alto Networks Unit 42 investigated a ransomware incident where AI agents moved through an enterprise network in under 10 hours, work that would have taken human operators roughly two weeks. The attacker entered via a public-facing API endpoint, used automated reconnaissance to map microservices, searched source-code repositories for credentials, and accessed a secrets-management system. They hijacked enterprise code workflows to exfiltrate cloud access keys, attempted Terraform backdoors (blocked by branch protections), and used stolen credentials to access the victim's own AI services as attack infrastructure. Over 50 MITRE ATT&CK techniques were observed; the actor confirmed using frontier AI models and agentic frameworks during negotiations.
UAT-10147 Uses AI to Scale Server Attacks, Deploys SPECTRE With EDR Bypass and Linux Rootkit
Cisco Talos exposes UAT-10147, a Chinese-speaking group using AI tools to automate intrusions, deploy SPECTRE, BadIIS, and rootkits against web servers worldwide.
Cisco Talos detailed UAT-10147, a Chinese-speaking cybercrime group conducting SEO fraud and data theft against Windows and Linux web servers in education, media, technology, and gaming sectors, with most victims in Brazil, Bolivia, China, Canada, and Vietnam. The actor exploits publicly disclosed vulnerabilities for initial access, including Zimbra (CVE-2022-27925) and Alibaba Nacos (CVE-2021-29441), and abuses Linux LPE flaws like CVE-2022-0847 and CVE-2021-3156 for root. Its toolset includes AI-assisted frameworks DeepAudit and PentestGPT, plus implants such as SPECTRE, BadIIS, Quasar RAT, Gh0stCringe, and Noodle RAT. An exposed directory contained a target list of roughly 170,000 URLs, with the US, India, UK, Germany, and Netherlands as top destinations.
Autonomous AI Agents Compromise Thousands of Credentials in Under Six Hours
Google's GTIG reports threat actors using autonomous AI agents, credential stealers, and LLMs to steal AI models, API credentials, and harvest thousands of credentials.
Google Threat Intelligence Group says attackers are targeting proprietary AI models across healthcare, government, and media, exfiltrating API credentials, and co-opting victim cloud environments to run unauthorized AI workloads. TeamPCP (Altered Spider/UNC6780) is conducting supply chain compromises of PyPI, npm, and Docker Hub, deploying the SANDCLOCK and DUSTMAKER credential stealers, with DUSTMAKER using AI workspace poisoning and prompt injection for defense evasion. One financially motivated actor used an autonomous multi-agent framework to compromise thousands of third-party credentials in under six hours without human intervention. China-nexus groups UNC6508 and Basin Castle (Mustang Panda) used local open-weight LLMs and commercial LLMs like Gemini, Claude, and Codex for espionage tasks and evading provider monitoring.