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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.
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Infostealers Are Hijacking Claude Sessions and Draining Subscriptions
Infostealers hijacked active Claude sessions to bypass 2FA, drain paid usage and run unauthorized charges; Anthropic is revoking sessions and refunding.
Anthropic confirmed that infostealer malware on user machines stole active Claude login sessions, letting attackers bypass passwords, MFA, and SSO and drain paid usage and run unauthorized charges. Affected families identified on Windows include Vidar, LummaC2, StealC, RedLine, and Acreed, plus Atomic Stealer on a small number of Macs; the malware typically arrived via unofficial downloads or malicious apps. Anthropic signed users out, removed saved payment cards, revoked affected sessions, and is refunding unauthorized charges, noting phones and tablets were not involved.
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IT threat evolution Q2 2022
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Threat Assessment: Ryuk Ransomware
Unit 42 assesses Ryuk ransomware amid a CISA/FBI/HHS alert on threats to U.S. healthcare, including the UHS attack that disrupted hospital operations.
A joint CISA, FBI, and HHS alert on October 28, 2020 warned of an imminent threat to U.S. healthcare from operators deploying Trickbot and Ryuk ransomware. Universal Health Services reported a Ryuk attack that disrupted all U.S. UHS sites for weeks, with similar incidents at hospitals in Oregon and New York. Ryuk typically arrives after Trickbot or BazaLoader infections delivered via malicious email, and operators enumerate networks with PowerShell and WMI before encryption. The Trickbot Anchor_DNS module performs DNS tunneling for C2, using connectivity checks to benign domains like ipinfo.io and checkip.amazonaws.com.
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Critical GitLab Flaws Let Attackers Read Arbitrary Files, Steal Credentials and Execute Code
GitLab issues emergency patches for critical path-traversal flaw CVE-2026-85706 (CVSS 10.0), GraphQL credential exposure CVE-2026-87719, and potential RCE flaw CVE-2026-88765.
GitLab released versions 19.3.2, 19.2.6, and 19.1.8 on September 10, 2026, fixing 18 vulnerabilities across Community and Enterprise Editions. CVE-2026-85706 allows unauthenticated arbitrary file reads via the repository commits API; CVE-2026-87719 exposes Advanced Search credentials through GraphQL subscription deserialization; CVE-2026-88765 may enable authenticated RCE via crafted project export imports. No exploitation was reported, but self-managed administrators are urged to upgrade immediately and review logs for suspicious API and GraphQL activity.
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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.
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Microsoft security advisory – September 2026 monthly rollup (AV26-896) – Update 1
Canada's Cyber Centre relays Microsoft's September 2026 rollup; CISA added exploited zero-days CVE-2026-85880 and CVE-2026-81963 to KEV.
Advisory AV26-896 from the Canadian Centre for Cyber Security summarizes Microsoft's September 2026 monthly security rollup, listing affected products across Windows, Office, .NET, Azure, Exchange and SQL Server. It notes Microsoft confirmed CVE-2026-81963 and CVE-2026-85880 have been exploited. On September 8, 2026, CISA added both CVEs to its Known Exploited Vulnerabilities catalog, and administrators are urged to apply the updates.
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CVE-2026-50522: Patch Critical SharePoint RCE Now
Microsoft patched CVE-2026-50522 (CVSS 9.8), an unauthenticated deserialization RCE in on-premises SharePoint servers, in its July 2026 updates; no exploitation confirmed at disclosure.
CVE-2026-50522 is a critical (CVSS 9.8) deserialization of untrusted data flaw (CWE-502) allowing unauthenticated remote code execution on on-premises Microsoft SharePoint servers. It affects SharePoint Enterprise Server 2016, SharePoint Server 2019, and SharePoint Server Subscription Edition, with fixes shipped in Microsoft's July 14, 2026 security updates; SharePoint Online is not listed as affected. No public evidence of active exploitation of this specific CVE existed at disclosure, though CISA's SSVC judged the attack automatable with total technical impact.
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Condé Nast Data of 32.8 Million Users Offered for Sale After WIRED Leak
A 32.8 million-record Conde Nast user database is offered for $15,000 on a Russian cybercrime forum, extending December's WIRED leak with millions of unseen records.
A database of 32,815,767 Conde Nast user records went on sale on 7 September 2026 for $15,000 on a Russian-language forum, containing names, addresses, birth dates and phone numbers but no passwords or payment data. Ransomnews verified a 5,000-record sample as genuine account data collected between September and late October 2025, with roughly 30.5 million non-WIRED records never previously published. The listing matches the December 2025 WIRED leak of 2,366,576 records, claimed by an actor called 'Lovely' who said 40+ million records were stolen via IDOR and broken access controls. Conde Nast has not confirmed the breach; exposed data enables credible targeted phishing and fraud.
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Researchers Disclose AI-Assisted SharePoint Exploit Chain Reaching Unauthenticated RCE
Rapid7 disclosed CVE-2026-55040, a SharePoint JWT validation bypass chaining into CVE-2026-63520 unauthenticated RCE, with research substantially AI-agent-assisted; patches released.
Rapid7 disclosed CVE-2026-55040 (CVSS 9.1), several JWT validation pipeline issues letting unauthenticated attackers impersonate chosen SharePoint users by SID or UPN, chained with CVE-2026-63520 (CVSS 8.1), an unsafe .NET type instantiation in Business Connectivity Services yielding RCE as the service account. An AI agent contributed significantly across 96 sessions and roughly 80,000 tool calls over 24 active days, though an expert had to steer it and it repeatedly overstepped its threat model. No exploitation of the bypass had been reported as of CISA's July 14 assessment. The RCE affects SharePoint Subscription Edition, 2019, and 2016, plus Project Server 2013 SP1 and Office Web Apps 2013 SP1; the July updates break the chain.
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Microsoft SharePoint servers under attack via zero-day vulnerability (CVE-2025-53770)
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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.
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Hackers Use AI-Assisted CEO Emails to Trick Finance Teams Into Sending $50,000 Payments.
Microsoft tracked a million-message AI-assisted BEC campaign impersonating executives with fake ServiceNow invoices to steal ~$50,000 ACH payments.
Microsoft detected over one million messages in a BEC campaign running August 3-5, using AI-assisted phishing templates, executive impersonation, and fabricated ServiceNow subscription invoices to trick finance teams into authorizing fraudulent ACH payments of roughly $50,000. The US received 87.7% of volume. Attackers used lookalike domains like service-nowinc[.]com registered just days before delivery, with no compromise of ServiceNow itself. Telltale signs included verbose HTML comments, uniform formatting, and inconsistent forwarded-message headers.
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