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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 · 8d agoAdvisory in the wild1

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

September 2026 Patch Tuesday forecast: All we need is more time

September 2026 Patch Tuesday forecast expects record CVE volume after August's 398 fixes, with SharePoint flaws CVE-2026-55040 and CVE-2026-63520 actively exploited.

This Patch Tuesday forecast column notes August 2026 Patch Tuesday was the second largest ever with 398 resolved CVEs, yet only one was confirmed actively exploited. SharePoint flaws CVE-2026-55040 and CVE-2026-63520 are being chained for authentication bypass and remote code execution in active attacks against unpatched servers. Microsoft Defender's ShieldBreak elevation of privilege flaw (CVE-2026-69414) is publicly disclosed with PoC code and a fix is expected, while Chrome CVE-2026-85046 was reported exploited in the wild. Several products, including Windows 11 24H2 Home/Pro and Exchange Server 2016/2019 ESU, reach end of support in October 2026.

Help Net Security · 7d agoAdvisory in the wildCVE-2026-55040CVE-2026-63520CVE-2026-62911+5 CVEs1

Researching Employment Scams

Schneier highlights research into North Korean fake-employment IT-worker scams that embed operatives in remote roles for long-term insider access.

The post discusses research into employment scams in which fabricated remote workers, associated with North Korean IT-worker schemes, embed in organizations for months or years to exfiltrate data or position for financial theft. Researchers used controlled sandbox environments to observe operatives syncing personal accounts and working under false identities. Commenters also note reverse scams targeting desperate job seekers through high-pressure MLM and door-to-door sales schemes.

Schneier on Security · 13d agoPhishing & fraud

Guildma (Astaroth) malware infection from Brazilian Portuguese email, (Tue, Sep 1st)

Guildma (Astaroth) malware spread via geofenced Brazilian Portuguese phishing emails, using zip archives, shortcuts, and AutoIt loaders.

SANS researchers documented a Guildma (Astaroth) malware infection initiated on 2026-08-31 by a malicious Brazilian Portuguese email offering a DocuSign-themed PDF. The delivery link is geofenced to Brazil and requires Brazilian Portuguese browser and OS language settings, otherwise serving a legitimate installer. The infection chain uses a zip archive containing a Windows shortcut that retrieves a DLL saved as an alternate data stream, which installs a compiled AutoIt package for persistence. Unique SHA-256 indicators and HTTPS traffic to Azure-hosted and .cfd domains were observed, with prior reports noting the campaign's abuse of GitHub.

SANS Internet Storm Center · 15d agoMalware in the wild

E4del and PINHOLE RATs Turn FTP Banners Into Dead Drops for Malware Commands

Researchers identified two new RATs, E4del and PINHOLE, using FTP banners as dead drop resolvers to fetch C2 commands via ClickFix-style lures.

SOCRADAR documented two previously unreported RATs, E4del and PINHOLE, that use FTP banners as dead drop resolvers, a first in-the-wild use of this technique. E4del is a Node.js-based RAT hidden in a digitally signed Electron application masquerading as Discord, with tiered-jitter beaconing, reverse shell, screenshot capture and desktop streaming. PINHOLE is more advanced, using Pinterest, SurveyMonkey and Cloudflare Workers for C2 resolution, six layers of unpacking, Halo's Gate EDR evasion and Early Bird APC injection. A related WebDAV delivery chain overlaps with ClearFake campaigns distributing WordlistLoader and Amatera Stealer.

The Hacker News · 22d agoMalware in the wild