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China-Based Artificial Intelligence Companies Conducting Industrial-Scale Distillation Campaigns Against U.S. AI Companies

NSA, CISA, and FBI warn DeepSeek, Alibaba, and other Chinese AI firms ran industrial-scale distillation of U.S. frontier models, threatening U.S. AI leadership.

A joint NSA, CISA, and FBI Cybersecurity Advisory (AA26-251A) says China-based firms DeepSeek, Moonshot AI, Alibaba, MiniMax, StepFun, and Z.AI extracted billions of tokens from U.S. frontier models including Claude, GPT, Gemini, and Grok, likely with Chinese government knowledge. Campaigns running since at least late 2024 used native APIs, cloud providers, third-party aggregators, gray-market proxy "transfer stations", and shared premium subscriptions to bypass geographic restrictions, evade safeguards, and violate providers' terms of use. The agencies recommend detecting anomalous prompts, accounts, and usage patterns; subtly altering responses to suspected distillers; and cross-organization intelligence sharing. They also call DeepSeek's publicly cited $5.6M training cost misleading because it excludes data acquired through distillation.

CISA Advisories · 9d agoAdvisory in the wild1

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.

Cyber Security News · 3h agoThreat actor in the wild 4 sources1

Threat Actors Are Posing as OpenAI, Anthropic and DeepSeek to Target Credentials and Secrets

GreyNoise observes scanners spoofing OpenAI, Anthropic, and DeepSeek crawler user agents to hunt leaked credentials and secrets.

GreyNoise is observing automated scanners that pose as the web crawlers of OpenAI, Anthropic, DeepSeek, and Fortune 500 companies. The scanners use forged user agents while requesting files where misconfigured web servers frequently leak secrets and credentials. This activity abuses trust in AI crawler traffic to discover exposed credentials for follow-on attacks.

GreyNoise · 20d agoExploit / PoC in the wild

Chinese AI firms are siphoning capabilities from American models, CISA warns

CISA, NSA and FBI warn Chinese AI firms including DeepSeek and Moonshot AI extracted billions of tokens from US frontier models via distillation campaigns.

A joint CISA, NSA and FBI advisory says China-based firms including DeepSeek, Moonshot AI, Alibaba, MiniMax, StepFun and Z.AI have run industrial-scale knowledge distillation campaigns against US frontier models such as Claude, GPT, Gemini and Grok since at least late 2024, likely with Chinese government knowledge. The campaigns used gray-market API proxies called transfer stations, premium account pools and traffic routing to bypass restrictions, evade safeguards and exfiltrate billions of tokens used to train models like DeepSeek R1/V3 and Kimi. The agencies challenge DeepSeek's reported $5.6 million training cost and recommend identity verification, usage monitoring, response variation, differential privacy and indicator sharing as defenses.

Help Net Security · 8d agoAdvisory in the wild1

Chinese Hackers Use AI Agents in Multi

China-linked campaign used the SecFlow AI-agent framework (Claude, Qwen, DeepSeek) to automate intrusions against government targets in Taiwan, Indonesia, China and Vietnam.

Hunt.io documented a second China-linked campaign wiring commercial AI models into live cyberespionage, reconstructing the SecFlow orchestration system from five accidentally exposed open directories. Targets included Taiwan's Kuomintang Party archives, Indonesia's Ministry of Foreign Affairs, mainland Chinese government and education systems, and Vietnamese industrial hosts. The most extensive compromise hit a Fengtai District government Office Automation environment, yielding LSASS and registry hive theft, 822 user records and 1.28GB of attachments including patient health data. Tooling included a GLUTTON webshell hiding payloads in PNG pixels via steganography and a fake MySQL deserialization service for client-side code execution.

Security Affairs · 13d agoThreat actor in the wild

Detect and disrupt AI-themed attacks with Microsoft Defender

Microsoft Threat Intelligence reports criminal campaigns impersonating ChatGPT, Copilot, Claude, and DeepSeek in phishing, AiTM, and malvertising attacks reaching 100,000 emails daily.

Microsoft Threat Intelligence observed a growing set of campaigns that abuse trust in popular AI brands: a ChatGPT-themed phishing campaign sent up to 100,000 emails in one day to steal payment card data, and a Claude-themed campaign used adversary-in-the-middle techniques to harvest credentials and access tokens. Other campaigns included malvertising for a fake AI Windows plugin delivering the Vidar stealer and fraudulent DeepSeek installers distributed via GitHub. Initial access broker Storm-3075 used AI-themed malvertising to distribute payloads for multiple downstream actors, and Microsoft notes the AI services themselves were not compromised. Microsoft also details Defender protections such as Safe Links, Safe Attachments, and attack disruption against these multi-stage lures.

Microsoft Security Blog · 6d agoPhishing & fraud in the wild1

PaperCut Attacker Uses Hundreds of AI Agents to Compromise 440+ Instances

GreyNoise and Blackpoint tracked an AI-assisted actor using OpenAI Codex and DeepSeek agents to exploit PaperCut flaws across 440+ instances in 48 countries.

A suspected Russian-speaking actor exploited the CVE-2026-81578 authentication bypass and CVE-2026-82078 RCE chain in PaperCut NG/MF, compromising at least 440 instances across 395 organizations in 48 countries, heavily targeting education in the US, UK, France, and elsewhere. The actor used hundreds of AI agents powered by OpenAI Codex and DeepSeek plus tools like Mimikatz, SharpHound, Certipy, Rubeus, and Impacket, reaching domain admin at 12 victims and full domain admin at a US high school within seven minutes. Post-exploitation included registry hive collection and Metasploit/Meterpreter payloads, with origin traced to IP 45.142.193.132.

The Hacker News · 7d agoThreat actor in the wildCVE-2026-81578CVE-2026-820781

AI lets small actors run state-level hacking campaigns, Anthropic report finds

Anthropic's threat report finds AI let a Russian-aligned espionage campaign, a Chinese student-run exploit foundry and ShinyHunters operators run state-grade operations.

Anthropic's report covering December 2025 to August 2026 details a Russian-aligned espionage campaign by actor 'JackPoterz' — matching Midnight Blizzard behaviors — against more than 20 government and defense organizations across Ukraine and Europe, with AI agents autonomously rebuilding Windows implants to evade detections. Chinese undergraduates ran an automated vulnerability-research foundry using Claude agent swarms, yielding more than a dozen potential zero-days in one month. ShinyHunters-affiliated operators used AI to dump over 2,100 Azure access tokens across 40 corporate tenants in 34 hours. Seven Chinese labs including Alibaba, DeepSeek, Moonshot AI, Xiaomi and Zhipu distilled Claude outputs; Alibaba peaked at nearly 3 million exchanges per day from more than 3,500 fraudulent accounts to train its Qwen systems.

CyberScoopupdated · 19h agofirst · 6d agoThreat actor in the wild 20 sources2· 1 read

August 2026 CVE Landscape

Insikt Group catalogs 73 high-impact August 2026 CVEs (43 Very Critical), including PaperCut, Zimbra, and Metabase flaws actively exploited or weaponized.

Recorded Future's Insikt Group identified 73 high-impact vulnerabilities in August 2026, 43 rated Very Critical, spanning 45 vendors with Microsoft accounting for roughly 11%. 31 vulnerabilities surfaced via CISA's KEV catalog, with others validated via open sources, vendor telemetry, and honeypot data. New Nuclei detection templates were released for CVE-2025-62593 (Ray), CVE-2026-72898 (Metabase), and CVE-2026-9198 (IBM Langflow). The report also highlights two AI-assisted operations: UAT-10147 exploited Zimbra, AjaxPro, Nacos, and Telerik servers before using DeepAudit and PentestGPT post-compromise, while a separate Chinese-speaking actor weaponized Hermes Agent and DeepSeek in a failed attempt.

Recorded Future · 9d agoVulnerability in the wildCVE-2025-62593CVE-2026-72898CVE-2026-9198+4 CVEs1

Human Attacker Hits Machine-Speed Exploitation of Marimo RCE

Sysdig details a human attacker chaining pre-auth RCE in Marimo (CVE-2026-39987) to AWS credentials and a bastion host in eight seconds.

Sysdig's Threat Research Team documented an intrusion where an operator exploited CVE-2026-39987, a pre-auth RCE in the Marimo notebook terminal WebSocket endpoint, gaining an interactive shell with no credentials. The attacker harvested AWS credentials from the process environment and Redis backend, retrieved an SSH private key from AWS Secrets Manager, and authenticated to an internet-reachable bastion host. The chain fired in eight seconds after roughly four hours of toolkit building, logging over 850 commands during a nine-hour session. The flaw, fixed in Marimo 0.23.0, has been on CISA's KEV catalog with a May 7, 2026 federal remediation deadline.

Infosecurity Magazineupdated · 2d agofirst · 2d agoExploit / PoC in the wild 4 sourcesCVE-2026-39987

Security Affairs newsletter Round 594 by Pierluigi Paganini – INTERNATIONAL EDITION

Weekly Security Affairs newsletter aggregates top stories including Cisco FMC exploitation, Qilin ransomware, Chrome zero-days, and Berlin leak.

Pierluigi Paganini's Security Affairs newsletter Round 594 (International Edition) rounds up the week's security headlines. Topics include attackers exploiting a critical Cisco FMC flaw to deploy Qilin ransomware, SonicWall mass exploitation linked to a UK council attack, multiple CISA KEV additions, Chrome zero-days used by four nation-state actors, a $320 million Liquid Network theft, and a Berlin ransomware data leak. It also covers AI security items such as agent sandbox failures and distillation campaigns by Chinese AI firms.

Security Affairs · 3d agoIndustry in the wildCVE-2026-42016CVE-2026-42018CVE-2026-82329+1 CVEs1

The Self-Expanding Stolen Inference Supply Chain: An AI Agent Harvesting and Re-Serving LLM Access, (Fri, Sep 11th)

An autonomous coding agent harvested LLM API access from poorly secured gateways and aggregated stolen inference capacity behind a self-hosted gateway

A SANS researcher observed a semi-autonomous coding agent finding weakly secured LLM resale gateways via FOFA queries, creating trial accounts with temporary emails and CAPTCHA solving, and exploiting weak authorization such as client-supplied group_id fields. The agent validated stolen keys using factorial code-logic tests, then loaded roughly 379 upstream endpoints into a self-hosted New-API gateway, disabling 341 fake or dead channels. Five model names including claude-opus-5 and gpt-5.6-sol were served via round-robin and failover, forming a partially self-expanding inference supply chain resembling an evolution of LLMjacking.

SANS Internet Storm Center · 5d agoThreat actor in the wild

ThreatsDay: 200 Android Flaws, Browser-Built Phishing, 119K Scam Shops + 23 More Stories

Hacker News ThreatsDay digest: malicious browser extensions, AI-agent intrusions, NCSC shadow AI warning, M&A wire fraud, and 119,000-domain fake shops.

Socket found four malicious Chrome and Firefox extensions (J7Tracker, VREO, Orbit Tracker) stealing session tokens and wallet data from Axiom Trade and Padre users via attacker-controlled Vercel deployments. Hunt.io reported a Chinese-speaking operator using Claude Code, Alibaba Qwen, and DeepSeek with the SecFlow orchestration framework to automate intrusions against government and financial targets in Afghanistan, Thailand, Taiwan, and the US. The UK NCSC warned shadow AI use risks breaches and regulatory failure, Microsoft announced privacy-preserving Windows Age APIs, and Gen Digital described fake M&A wire-fraud scams. A 119,000-domain fake-shop operation called DoppelCart was also highlighted.

The Hacker News · 6d agoIndustry in the wild

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.

BleepingComputerupdated · 6d agofirst · 6d agoExploit / PoC in the wild 5 sourcesCVE-2026-81578CVE-2026-82078CVE-2021-42278+1 CVEs1· 1 read

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.

GBHackers · 7d agoExploit / PoC in the wildCVE-2026-81578CVE-2026-82078CVE-2021-42278+1 CVEs1

Hackers Use Hundreds of AI Agents to Exploit PaperCut Flaws and Compromise 440 Servers Worldwide

A Russian-speaking actor used hundreds of AI agents to exploit PaperCut flaws, compromising 440 servers across 395 organizations in 48 countries.

GreyNoise's Global Observation Grid observed a Russian-speaking threat actor operating from IP 45.142.193.132 deploy hundreds of autonomous AI agents, built on OpenAI's Codex harness with a DeepSeek model, to exploit PaperCut NG/MF flaws CVE-2026-81578 (authentication bypass) and CVE-2026-82078 (unsafe reflection RCE). At least 440 servers across 395 organizations in 48 countries were compromised; the US had 98 victims and educational institutions accounted for 204. The agents paired with Mimikatz, Certipy, Rubeus, and Impacket, escalated to domain admin in 12 of 440 cases, and executed DCSync to exfiltrate the full NTDS.DIT credential database.

AutoTrans: AI-Assisted Automatic Translation of Security Assertions for RISC-V Processors

AutoTrans uses LLMs with regex extraction and formal verification to automatically translate security assertions across RISC-V processors, achieving 78% unattended acceptance.

AutoTrans is an automated framework for translating verified security assertions between RISC-V processor targets, where manual translation takes hours per assertion. It combines a regex-based SystemVerilog signal extractor to prevent LLM signal hallucination, a pinned prompt template yielding byte-identical prompts resilient to model updates, and JasperGold FPV formal verification of generated assertions. Applied with DeepSeek V4 to translate assertions between RISC-V targets such as IBEX and NS31A, it achieves a 78% automatic translation acceptance rate without human intervention and 100% after human refinement.

arXiv cs.CR · 8d agoResearch

Hackers Weaponize Agentic AI to Automate Reconnaissance, Exploitation and Post-Exploitation

Google GTIG reports threat actors using agentic AI to automate reconnaissance, exploit selection, and credential harvesting, compromising thousands of secrets.

Google Threat Intelligence Group's Q3 2026 AI Threat Tracker documents threat actors operationalizing agentic AI: in one Mandiant investigation, a financially motivated actor built and executed a credential-harvesting operation in under six hours, with an exposed 'Recon' framework managing more than 23,800 harvested secrets including cloud and AI-service API keys. A Chinese-speaking actor tracked as knaithe used a DeepSeek-powered Hermes Agent for automated reconnaissance and vulnerability enumeration, pivoting from Langflow to n8n and enabling manual exploitation of exposed Citrix NetScaler, Marimo, Apache Tomcat, and VPN infrastructure. Operators harvested Citrix session cookies from process memory to bypass MFA, obtained AWS credentials from compromised Marimo instances, and deployed the Go-based NKAbuse backdoor, with reported RCE and data exfiltration. Google notes fully autonomous end-to-end AI attack pipelines have not yet been observed in the wild.

GBHackers · 8d agoThreat actor in the wild2

Risky Bulletin: Ukraine's top prosecutor resigns amid scam call center scandal

Ukraine's top prosecutor Ruslan Kravchenko resigned after NABU arrested a deputy for taking bribes protecting scam call centers running fake investment platforms.

Ukraine's anti-corruption bureau NABU arrested Serhiy Kropyva, Deputy Head of International Cooperation at the Prosecutor General's Office, alleging officials took monthly protection fees from a network of 100-500 scam call centers luring victims into fake investment platforms, with bribes reportedly growing from $700,000 to $3.5 million per month. Prosecutor General Ruslan Kravchenko resigned on Monday, calling it a political decision, while Kropyva was fired with bail set at 120 million hryvnias ($2.7 million) and over 100 call centers shut down in the past month. The newsletter also briefly covers a cyberattack crippling more than 80 Luxembourg medical practices via payment vendor BMS Engineering, ShinyHunters' claimed theft of 200,000 Florida DMV driver records, a cyberattack on the American Meteor Society, and school closures in Springfield, Massachusetts.

Risky Business News · 8d agoPhishing & fraud

Agents Gone Wild: An AI-Orchestrated Global Campaign Against PaperCut NG/MF

AI-orchestrated campaign exploited PaperCut NG/MF RCE (CVE-2026-81578/82078), compromising 440+ instances at 395 organizations in 48 countries.

GreyNoise tracked a likely Russian-speaking actor using AI (OpenAI Codex harness plus a DeepSeek model) to develop, test, and deploy exploits for PaperCut NG/MF (CVE-2026-81578, CVE-2026-82078) starting 31 August 2026. The actor compromised at least 440 PaperCut instances across 395 organizations in 48 countries, achieving domain admin at 12 victims — fastest time to domain admin was five minutes and a US high school was fully compromised in seven minutes. Attack paths involved LSASS memory and registry secret harvesting, pass-the-hash to domain controllers, noPac attacks, account additions to Domain Admins, and DCSync to exfiltrate full NTDS.DIT credential dumps. Impact scope suggests access development potentially for handoff, with prior PaperCut intrusions historically leading to extortion.

GreyNoise · 8d agoThreat actor in the wildCVE-2026-81578CVE-2026-82078CVE-2021-42278+1 CVEs1

Risky Bulletin: BEC campaign steals €35 million from French notaries

Hackers stole over €35 million from 500+ French notary offices in a four-year BEC campaign; ANSSI spent two years helping evict the attackers.

A business email compromise campaign breached more than 500 French notary offices — about 7% of all French notaries per the Conseil Supérieur du Notariat — over four years, stealing more than €35 million by phishing initial access and silently modifying wire transfer details. France's cybersecurity agency ANSSI worked for two years behind the scenes to help notaries remove the persistent attackers, who had deep access; officials also feared hackers could issue fake notarized acts such as marriage certificates or forged real estate deals. No forged documents have been found so far, but notaries have added two-factor authentication and in-person requirements for banking details, and banks added extra checks in 2024. The newsletter also notes other incidents, including a $320 million Bitcoin extraction from Blockstream's Liquid Network and a JetBrains Cadence breach via TeamCity servers.

Risky Business News · 10d agoPhishing & fraud in the wild1

Attackers impersonate popular AI brands to spread malware

Sophos documented 38 MDR cases where attackers impersonated AI brands like Claude and Perplexity to deliver infostealers and backdoors.

Sophos X-Ops analyzed 12 months of MDR cases and confirmed 38 incidents involving AI. Software impersonation accounted for 30 cases, with Claude impersonated in 26; fake installers used an 'InstallFix' technique delivering mshta commands, in-memory payloads, and process hollowing. Malicious browser extensions posing as AI assistants, including a fake Perplexity extension with 10,000 installs, acted as infostealers. In one case, attackers used a Claude coding agent to develop a Rust remote access trojan communicating over Slack after an SQL injection compromise.

Help Net Security · 27d agoThreat actor in the wild

Critical macOS, SharePoint, vCenter, and Microsoft IKE Flaws Under Active Exploitation

CISA added four critical actively exploited flaws to KEV: macOS Screen Sharing, SharePoint, VMware vCenter, and Microsoft IKE, with APT and ransomware use.

CISA added CVE-2026-65400 (macOS Screen Sharing, CVSS 9.8), CVE-2026-55040 (SharePoint, CVSS 9.1), CVE-2026-59310 (VMware vCenter, CVSS 9.8) and CVE-2026-33824 (Microsoft IKE Service Extensions, CVSS 9.8) to the KEV catalog. The macOS flaw was abused to deliver a Monero miner, while the vCenter bug was exploited by a suspected China-nexus APT to install reverse_ssh backdoors and Babuk-derived ransomware across 361 victim IPs in 47 countries. Unit 42 linked CVE-2026-33824 to a Chinese-speaking actor running an AI-enabled campaign using DeepSeek. FCEB agencies must patch by August 21, 2026 under BOD 26-04.

The Hacker News · 28d agoExploit / PoC in the wildCVE-2026-65400CVE-2026-55040CVE-2026-59310+1 CVEs