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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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Hunting Vulnerabilities Using Frontier Models
Okta used frontier AI models GPT-5.5 Cyber and Mythos via OpenAI and Anthropic programs to scan millions of code lines for vulnerabilities.
Okta describes using frontier AI models, including GPT-5.5 Cyber Preview (TAC) and Mythos Preview, through OpenAI's Daybreak Cyber Partner Program and Anthropic's Project Glasswing to hunt vulnerabilities across its product codebase. The team built a custom Python orchestrator with strong isolation, vendor-agnostic model support, and four distinct scanning pipelines executed as isolated Codex or Claude Code sessions with progressive context loading to reduce context bloat. Human experts and AI agents worked both autonomously and in paired hunts, and Okta reports the best results when humans and agents taught each other.
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VEX-Bench: Benchmarking LLM Agents for Assessing Exploitability of Software Supply Chain Vulnerabilities
Introduces VEX-Bench, 75 expert-labeled real-world cases testing whether LLM agents can assess supply chain vulnerability exploitability; frontier models reach about 80% F1.
VEX-Bench is the first benchmark evaluating LLM agents on assessing whether upstream dependency vulnerabilities are exploitable in downstream projects, with 75 real-world expert-labeled cases across Python, Java, and Go mined from GitHub. Nine models across three agent harnesses were evaluated; GPT-5.5 and Claude Opus 4.6 reach approximately 80% F1 on binary vulnerability-status classification, but only GPT-5.5 surpasses 70% macro-F1 on fine-grained justification classification. The gap highlights the difficulty of moving beyond binary exploitability calls to explaining exploitability reasons, unlike prior benchmarks targeting zero-day settings.
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Week in review: cPanel vulnerability actively exploited, DigiCert breach, LinkedIn job scams
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1Password's AI patching benchmark is misleading
Trail of Bits reanalysis says 1Password's 26% AI clean-fix rate is misleading; 86% of eligible patches blocked exploits.
Trail of Bits critiques 1Password's FLAWED AI patching benchmark, arguing its 26% clean-fix headline mixes trials where agents were instructed to apply wrong fixes (22% of data) with trials that prohibited compiling or testing (36%). Restricting to reasonable conditions, 2,634 of 3,067 patches (86%) blocked the supplied exploit. Trail of Bits also reports 12.5% of 2,265 developer first fixes failed in its own 2024-2026 assessments, and released post-patch-validation and review-walkthrough agent skills.
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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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Hackers exploit new MikroTik RouterOS flaws to hijack routers
Attackers actively exploit a MikroTik RouterOS SSH authentication bypass and privilege escalation chain, dubbed MikroTrick, to fully hijack internet-exposed routers.
Poland's CERT, with help from GPT-5.5-cyber and GPT-5.6-sol, discovered and confirmed active exploitation of a MikroTik RouterOS chain dubbed MikroTrick: SSH authentication bypass CVE-2026-67276 (incomplete RSA public key validation) chained with privilege escalation CVE-2026-86060 (crafted usernames granting full administrative privileges). A third flaw, CVE-2026-67277, allows unauthenticated kernel memory leaks or router crashes via the bandwidth-test service. Fixes shipped September 3 in RouterOS 7.25beta3, 7.24.2, 7.23.4, and 6.49.21, adding a startup compromise-detection mechanism. Shadowserver data showed 122,500 MikroTik devices with exposed SSH interfaces as of September 5, and the CERT published IoCs including two attacker IP addresses.
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Hackers exploit RouterOS flaws to hijack MikroTik devices without authentication
CERT Polska confirms attackers exploit chained MikroTik RouterOS SSH flaws to hijack devices without authentication; patches released in four RouterOS versions.
CERT Polska discovered six RouterOS vulnerabilities and confirmed active attacks chaining CVE-2026-67276 (CVSS 9.2, SSH authentication bypass caused by comparing only RSA key moduli) and CVE-2026-86060 (CVSS 9.2, privilege escalation via crafted usernames), dubbed MikroTrick. A third flaw, CVE-2026-67277 (CVSS 8.8) in the bandwidth-test service, can expose kernel memory or crash devices. Shadowserver counted about 122,500 MikroTik devices with SSH exposed; attackers created a privileged 'ops' account from IP 82.192.72.4, active since September 2. Fixes shipped in RouterOS 7.25beta3, 7.24.2, 7.23.4, and 6.49.21, adding startup configuration scanning with a 'Flagged' marker for unauthorized changes.
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Researcher Explains Release of Undisclosed Zero
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