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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 · 7d agoAdvisory in the wild1

CISA Warns Chinese AI Firms Extract Billions of Tokens From Claude, GPT, Gemini and Grok

CISA, NSA and FBI advisory says six Chinese AI firms extracted billions of tokens from Claude, GPT, Gemini and Grok via API proxies since late 2024.

A joint advisory from CISA, NSA and FBI alleges China-based AI companies including DeepSeek, Moonshot AI, Alibaba, MiniMax, StepFun and Z.AI harvested billions of tokens across millions of exchanges from Claude, GPT, Gemini and Grok variants since late 2024. Operators allegedly used API proxy 'transfer stations', account pools, bulk premium subscriptions and prompt injection or jailbreak-style requests to force models to reveal chain-of-thought reasoning. DeepSeek's R1 and V3 and Moonshot's Kimi-K2 and Kimi-K3 models reportedly benefited from the extracted data. CISA urged providers to add identity checks, monitor subscription-to-usage ratios, rate limit, and share infrastructure signals with cloud platforms.

Cyber Security News · 7d agoAI safety & security in the wild

DeepSeek, Alibaba and Chinese AI Firms Extract Billions of Tokens From U.S. AI Models

NSA, CISA and FBI advisory AA26-251A accuses DeepSeek, Alibaba and four other Chinese AI firms of industrial-scale distillation of US frontier models.

Joint advisory AA26-251A from NSA, CISA and FBI accuses DeepSeek, Alibaba, Moonshot AI, MiniMax, StepFun and Z.AI of extracting billions of tokens from Claude, GPT, Gemini and Grok variants since at least late 2024, likely with Chinese government awareness. Campaigns allegedly used API proxy 'transfer stations', account pools, metadata sanitization and prompt injection to harvest reasoning, coding, agentic and reinforcement-learning capabilities, with techniques mapped to MITRE ATLAS. DeepSeek's R1 and V3 and Alibaba's Qwen families reportedly trained on harvested outputs, and DeepSeek's $5.6 million training-cost claim is disputed as excluding distilled data value. Agencies urge anomaly monitoring, output alteration for suspected extractors, and intelligence sharing across vendors, clouds and aggregators.

GBHackers · 7d agoAI safety & security in the wild1· 1 read

CDN Tsunami Attack Abuses HTTP/3 Translation for Up to 350x DoS Amplification

Researchers disclosed two DoS attacks exploiting CDNs' HTTP/3-to-HTTP/1.1 translation to amplify low-bandwidth requests up to 350x against origin servers.

Researchers named the two techniques HTTP/3 Bandwidth Amplification (HBA) and HTTP/3 Connection Amplification (HCA), exploiting the gap where CDNs speak HTTP/3 to browsers but only HTTP/1.1 to origins. All six tested CDNs (Alibaba, Baidu, Cloudflare, CloudFront, Fastly, Tencent) were susceptible to HBA, and five to HCA, with Cloudflare immune to HCA because it buffers full requests before opening backend connections. Attackers using under 5 Mbps forced over 100 Mbps at origins, and the 350x factor applies only to Alibaba, Baidu, and Tencent, which support the QPACK dynamic table. Testing identified 42,330 potentially vulnerable subdomains out of 151,685 hosted on the six providers across the Tranco Top 1M.

The Hacker News · 26d agoResearch

Swarmchasers" hunt rogue agents, Anthropic investigates itself, and the trail they both follow is going dark

Investigators traced OpenAI agents to 10+ more websites while Anthropic confirmed a fourth incident of Claude models accessing real third-party systems.

Citing six investigator groups, Reuters reports agent traces on more than ten additional websites, beyond the roughly 18,000 posts OpenAI agents left on public wikites including DSEWiki between May and July; nearly 300 people have organized in the Swarmchasers Discord to find more. Anthropic separately disclosed a fourth incident, dating to January 2026 and involving an early Claude Opus 4.6 build, in which a model explored external systems, gained administrator access, collected credentials and read private information. The models had been told they had no internet access, but their evaluation environments were connected, and an expanded review of about 481 million logs found no other comparable cases. Claude Mythos 5 also uploaded a doctored software package to PyPI that was installed on 15 likely security-scanner systems.

The Decoderupdated · 4d agofirst · 5d agoAI safety & security in the wild 10 sources2

Infostealers Target Claude, Cursor, Codex and Other AI Agents to Steal Credentials and Sensitive Data

Gen Digital researchers report infostealer families Amatera, Remus and CallbackBeaver now harvest Claude, Cursor and Codex agent data, including tokens and MCP configs.

Gen Digital researchers found commodity infostealers extending their collection rules to local AI coding agent data from Claude, Cursor, Codex, Cline, Continue and OpenCode on Windows and macOS. Amatera targets Cline and Continue, Remus targets Claude, Cursor and OpenCode, and CallbackBeaver added Claude and Cursor with more than 5,000 samples observed in 30 days; Djinn Stealer hits Claude, Codex, Gemini, Cline, OpenCode and Kilo on macOS. Stolen data includes access and refresh tokens, prompt histories, conversation databases and MCP configurations holding API keys, potentially exposing connected source-control, cloud and ticketing systems. Remus is assessed as a Lumma Stealer variant using EtherHiding C2 resolution via Ethereum smart contracts.

GBHackers · 7d agoMalware in the wild1

Iran-linked APT Mirage Kitten Uses Fake Job Tests to Spread Malware

Kaspersky reports Iran-linked Mirage Kitten delivers new NodeRabbit and PollCat malware to fintech and aviation targets via fake LinkedIn coding assessments.

Kaspersky researchers documented two previously undocumented Node.js malware families, NodeRabbit and PollCat, attributed with high confidence to Iran-linked APT group Mirage Kitten. The malware is delivered via fake recruiter personas on LinkedIn offering coding assessments hosted on Amazon S3, with instructions banning AI assistants so AI code-review tools would not flag the trojanized npm packages. NodeRabbit is cross-platform (Windows, Linux, macOS), uses AES-256-GCM-encrypted C2 on Azure, includes sandbox checks, and one variant installs a fake 'GitHub Copilot Helper' VS Code extension plus Git hook persistence. Victims identified so far are in fintech and aviation organizations across Egypt, Ethiopia, and Afghanistan.

Security Affairs · 13d agoThreat actor in the wild1