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Malicious .git Configs Can Make Claude, Codex, Cursor, and Other AI Agents Run Attacker Code
Malicious .git core.fsmonitor configs let attacker code run in AI coding agents like Claude Code and Codex; four of eight flaws remain unpatched.
Manifold Security disclosed eight flaws across seven command-line AI coding agents where a repository's Git core.fsmonitor configuration causes agent-spawned commands to execute attacker code outside the sandbox and without approval prompts. Fixes shipped for goose (CVE-2026-72718, CVSS 4.0 score 7.0), Claude Code on one path, and Cursor, while Hermes Agent, Qwen Code, Grok Build, and a second Claude Code path were still unpatched as of September 1. OpenAI issued three CVEs for the same class in Codex, including CVE-2026-19592, and prior related bugs include CVE-2021-43891 in Visual Studio Code and CVE-2022-24346 in JetBrains IDEs. Exploitation requires the repository to arrive with its .git directory intact, such as via archives, shared drives, or USB sticks rather than an ordinary clone.
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Houthis Used Claude Code to Develop Missile Guidance Software: Anthropic
Anthropic's threat report details a Houthi-linked Yemeni cell using parallel Claude Code sessions to build missile guidance software, evading safeguards by fragmenting tasks.
Anthropic's September threat report describes a Yemen-based cell, assessed as highly likely Houthi-linked, that used Claude Code across multiple parallel instances to develop guidance software for a tactical guided rocket, a ballistic missile with over 2,000 km range, and a hypersonic glide vehicle concept called 'R2000'. The operators integrated open-source autopilot software, built six-degree-of-freedom trajectory simulations, and used reinforcement learning to tune flight-control algorithms, ultimately compiling an offline executable. The group test-fired a guided rocket that failed, then used Claude within hours to analyze launch telemetry. Anthropic blocked numerous requests, but operators evaded safeguards by obscuring intent and dividing work across separate conversations before accounts were banned; the case is one of six conventional-weapons cases (three China-linked, two Russia-linked) in a report covering disrupted operations from December 2025 to August 2026.
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Week in review: AiTM phishing kit used to hijack AWS accounts, year-long malware campaign targets HR
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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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Attackers turn to AI for help identifying files worth stealing
Gambit Security documents three threat actors using AI: a ransomware operator with Claude Code, credential harvester Zerofot, and the AI-built RAGE cryptomining framework.
Gambit Security examined three unrelated threat actors using AI across different stages of intrusions. A suspected operator tied to The Gentlemen ransomware-as-a-service used Claude Code running Claude Sonnet 4.6 in late June 2026 at six organizations, including an Australian energy utility, where it ran reconnaissance, ranked valuable databases, staged SQL Server dumps for exfiltration, and modified firewall configurations, accidentally taking one utility firewall offline. The Zerofot credential-harvesting operation, built with OpenAI Codex and Claude Code, collected 2,975 validated credentials from 1,742 hosts between April 5 and May 23, 2026, including SSH private keys and AWS access keys. The AI-generated RAGE Python framework exploits exposed Redis, Elasticsearch, Docker, Tomcat, and other services to harvest credentials and deploy cryptominers, guided at runtime by a DeepSeek-backed AI Orchestrator.
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Week in review: High severity WordPress vulnerabilities, fake OAuth IDs bypass sign-in logs
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Using AI for Weapons Development
Anthropic report reveals Yemen-based actors used Claude Code to build guidance software for guided rockets and ballistic missiles.
Bruce Schneier highlights Anthropic's misuse disclosure describing a threat actor cell in northern Yemen running three weapons programs: a guided rocket with phone-class homing guidance, a 2,000+ km multi-stage ballistic missile, and the 'R2000' hypersonic glide vehicle set. The actors used Claude Code as a substitute for human engineers to write GNC software, integrate an open-source autopilot, tune controls, and run flight simulations, orchestrating multiple Claude instances in delegated roles. Safeguards blocked many requests but evasion tactics included hiding intent and splitting work across sessions; one guided rocket test-fire failed but no operational device was fielded.
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Week in review: Axios npm supply chain compromise, critical FortiClient EMS bugs exploited
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⚡ Weekly Recap: SD-WAN 0-Day, Critical CVEs, Telegram Probe, Smart TV Proxy SDK and More
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Off Guard: Breaking LiteLLM from authentication bypass to cloud compromise
Wiz found LiteLLM auth bypass (CVE-2026-59822) and post-auth RCE (CVE-2026-59821) chainable to cloud compromise; the bypass is in CISA KEV with in-the-wild exploitation.
Wiz scanned roughly 3,074 internet-facing LiteLLM deployments and found 9.6% accepted the default master key sk-1234 or required no authentication, making post-auth attacks effectively pre-auth. The MCP endpoint accepts any Bearer token and grants a valid session (CVE-2026-59822), confirmed exploited in the wild via honeypots and added to CISA's Known Exploited Vulnerabilities catalog. Custom code guardrails allow post-auth root-level RCE via exec(compile(...)) (CVE-2026-59821), while pass-through endpoints lack URL validation, enabling cloud credential theft in post-auth scenarios. All assigned vulnerabilities have been patched; the research was presented at DEF CON 34.
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Anthropic: AI Misuse Is Entering a New Phase: From Cybercrime to Surveillance, Propaganda and Weapons
Anthropic's threat intelligence report documents AI misuse scaling cybercrime, surveillance, propaganda, and weapons development from December 2025 to August 2026.
Anthropic's September 2026 threat intelligence report covers malicious activity disrupted between December 2025 and August 2026, spanning cyber operations, influence campaigns, surveillance, fraud, and weapons. One operator (aliases MeowSHA/frkoo/blazespider) ran a credential-harvesting pipeline on 10 AWS EC2 workers that downloaded and scanned 1.8 million Android APKs for hardcoded secrets, feeding confirmed breaches. Claude was abused to build malware, phishing tools, and a mass-interception platform used by Malian national security authorities, with actors linked to China, Iran, and West Africa.
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deepseek-ai/DeepSeek-V4.1-Flash — new model trending #28 on Hugging Face
DeepSeek releases DeepSeek-V4.1-Flash, a 552B-parameter multimodal MoE model with 1M-token context and KV cache cut to 890 bytes per token.
DeepSeek-V4.1-Flash is a multimodal Mixture-of-Experts model with a 552B-parameter backbone that activates 8B parameters per token during prefill and 16B during decode. It uses a Causal Encoder-Decoder architecture, Compressed Sparse Attention 2, and FP4 KV caching to reduce the global KV cache footprint to 890 bytes per token, roughly one quarter of DeepSeek-V4-Flash. The model was trained from scratch on 45T tokens with context extended to 1M tokens, includes an Engram conditional-memory module (196B parameters), and is released under the MIT license. Post-training uses SFT, RL, and on-policy distillation with large-scale automated synthesis of agentic tasks and a controllable reasoning effort setting from 1 to 100.
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Anthropic's Enterprise Frontier Safeguards lets your Claude logs stay in your cloud
Anthropic launches Enterprise Frontier Safeguards, letting regulated customers keep Claude usage logs in their own cloud storage under their own keys with automated misuse detection.
Anthropic unveiled Enterprise Frontier Safeguards, co-designed with eight members of the Analysis and Resilience Center for Systemic Risk and more than 100 customers including Wells Fargo, Goldman Sachs, Visa, Mastercard, Comcast, KPMG, and Salesforce. Misuse-detection activity data can live in the customer's Amazon S3, Azure Blob Storage, or Google Cloud Storage under customer-managed keys, with fully automated review and no human inspection by Anthropic; automated systems watch for offensive cyber or biological capability development and signs of stolen credentials. The offering replaces the friction around Fable 5's 30-day retention policy, costs nothing extra, spans Claude Enterprise, Claude Platform, Amazon Bedrock, Google's Agent Platform, and Microsoft Foundry, with broad availability targeted for later this fall.
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