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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.
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FamousSparrow Exploits Public-Facing Exchange Servers to Deploy SparroWocky Backdoornew
ESET attributes a new SparroWocky backdoor to espionage group FamousSparrow, deployed via exploited internet-facing Exchange servers across Latin American governments.
ESET's Welivesecurity team reports FamousSparrow gained initial access by exploiting publicly reachable Microsoft Exchange servers, with roughly 90 percent of targets since mid-2025 in Latin America, including governments in Argentina, Ecuador, Guatemala, Honduras, Panama, Peru, Puerto Rico, and Venezuela. The group's new modular C-language backdoor SparroWocky replaces SparrowDoor and uses a three-part loader: a legitimate executable, a malicious DLL side-loaded in memory, and an encrypted payload. It persists via Windows services or Registry Run keys, supports screenshots, file operations, TCP proxying, Beacon Object Files, TLS/RC4-encrypted C2, and anti-forensics such as call-stack spoofing. IOCs including loader SHA-1 hashes and C2 IP addresses were published.
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APT36 Uses USB-Spreading Malware to Reach Air-Gapped Government Networks
Zscaler attributes the RapidRust campaign by Pakistan-linked APT36 to USB-propagating Rust malware targeting air-gapped government networks in India and Afghanistan.
Zscaler identified in August 2026 a campaign tracked as RapidRust in which APT36 uses infected removable drives to reach air-gapped government environments in India and Afghanistan. RUSTYMOVE, a Rust USB-spreading utility, copies a fake-PDF shortcut and the RUSTYSHADE backdoor to removable media; RUSTYSHADE uses attacker-controlled private GitHub repositories for C2, running shell commands, capturing screenshots and webcam images, while PSNATCH and BASHNATCH steal files. Operators enumerated users, shares, and remote administrative shares to expand beyond initial victims, with payloads staged on lookalike domains mimicking Indian media outlets and Backblaze B2 storage.
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BlackHatSect0r Uses DeepSeek-Powered AI Agent to Automate Attacks and Harvest 16,834 Credentials
SOCRadar linked the BlackHatSect0r crew to a DeepSeek-powered AI agent that automated scanning and harvested 16,834 credentials from exposed systems.
SOCRadar researchers found an exposed operation server with 4.9 GB across 9,299 files, including the DXSCAN scanning platform, phishing tools, extortion material and a vault holding 16,834 credentials such as AWS keys, GitHub tokens and Stripe keys. The French-speaking crew ran a Nous Research Hermes agent against a DeepSeek model with safety features removed, queuing 2,759,860 domains and reaching 726,989 hosts. Access came from misconfigurations like public cloud buckets and exposed .env files, not new vulnerabilities.
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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.
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Impersonating IT support: how threat actors turn a remote session into enterprise-wide access
Microsoft details Teams IT-support impersonation campaigns deploying Node.js implants, AD reconnaissance, and WinRM lateral movement toward domain controllers.
Microsoft Threat Intelligence describes a human-operated campaign where attackers impersonate IT/helpdesk staff via Microsoft Teams external collaboration, talk users into granting remote sessions, and use RMM tools for interactive access. During the session they run PowerShell to silently install a malicious MSI that stages a portable Node.js runtime and obfuscated JavaScript implant for C2, executing follow-on payloads via rundll32. Operators then perform host and Active Directory reconnaissance, capture desktop screenshots, and pivot via WinRM on port 5985 to domain controllers and certificate authorities. The hands-on-keyboard chain, which can precede data theft and ransomware, blends into normal operations by relying on Teams, Quick Assist, msiexec, and Node.js; Microsoft shares hunting and mitigation guidance.
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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.
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Counterfeit installers to system compromise: Tracking a deceptive software download campaign
Microsoft tracks a counterfeit software-installer campaign compromising multinationals' China operations, moderately linked to the Silver Fox (Yinhu) actor.
Microsoft Defender Experts is tracking an active campaign using spoofed software download sites for brands such as Razer, Kaspersky, Microsoft Edge, Calibre, and Baidu Netdisk on .com.cn and .hl.cn domains, delivering installer archives whose hashes change per download, indicating server-side payload generation. The implants establish persistence, weaken security protections, and communicate with attacker-controlled infrastructure, with confirmed compromises across healthcare, manufacturing, gaming, technology, logistics, government, and education. Microsoft assesses with moderate confidence that the activity matches the publicly reported Silver Fox (Yinhu) fake software campaign; it has not attributed it to a nation-state actor.
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China's 'Fire Ant' campaign used compromised Cisco routers as platform for more attacks
Sygnia links the China-nexus Fire Ant campaign to UNC3886, showing hackers weaponized compromised Cisco IOS XR routers for espionage and wider intrusions.
Sygnia's Fire Ant report details Chinese hackers compromising Cisco IOS XR routers, TACACS+ authentication servers and management infrastructure to capture traffic, harvest credentials and stage attacks on high-value and critical infrastructure networks. The group, which overlaps with Mandiant's UNC3886, developed custom router malware for persistence, hid logs, deleted files and tampered with firewall rules, and remained active in 2026 after Sygnia's 2025 disclosure. The activity aligns with prior Chinese campaigns against Cisco devices, including Volt Typhoon and Salt Typhoon operations.
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Fake Conferences, OAuth and WhatsApp: Inside Russia’s New Espionage Tactics
Google tracks three Russia-linked espionage clusters abusing OAuth, app passwords, and device code phishing against Western researchers and diplomats.
Google's Threat Intelligence Group documented three suspected Russia-linked clusters, UNC6293, UNC7005, and UNC5976, abusing legitimate authentication flows. UNC6293, a likely APT29/ICE RELIC sub-cluster, impersonates US State Department officials in app password and OAuth phishing targeting fewer than five victims at a time. UNC7005, tracked by Microsoft as STORM-2945, spoofs the GLOBSEC conference, runs device code phishing against Microsoft and WhatsApp accounts, and deploys VIDAR and AtomicStealer infostealers. Targets include researchers, academics, diplomats, think-tank analysts, and defense personnel in Europe and the United States.
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