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Hackers Deploy Hundreds of AI Agents to Compromise 440 PaperCut Servers
AI-agent campaign exploited PaperCut CVE-2026-81578 and CVE-2026-82078, compromising 440 servers at 395 organizations and reaching Domain Admin in 12.
GreyNoise tracked a likely Russian-speaking actor that used AI agents (OpenAI Codex, a DeepSeek model) to exploit an authentication bypass (CVE-2026-81578) and unsafe-reflection RCE (CVE-2026-82078) in PaperCut NG/MF starting August 31, 2026. At least 440 servers across 395 organizations in 48 countries were compromised, with one US high school going from initial access to Domain Admin in seven minutes. Escalation relied on LSASS and registry credential harvesting, pass-the-hash, the noPac technique (CVE-2021-42278/CVE-2021-42287), new Domain Admin accounts, and DCSync to steal NTDS.DIT data. Operators staged registry hives, used Ligolo tunneling and certutil Base64 encoding for exfiltration, and one attempt was blocked by Cloudflare WAF.
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Agents Gone Wild: An AI-Orchestrated Global Campaign Against PaperCut NG/MF
AI-orchestrated campaign exploited PaperCut NG/MF RCE (CVE-2026-81578/82078), compromising 440+ instances at 395 organizations in 48 countries.
GreyNoise tracked a likely Russian-speaking actor using AI (OpenAI Codex harness plus a DeepSeek model) to develop, test, and deploy exploits for PaperCut NG/MF (CVE-2026-81578, CVE-2026-82078) starting 31 August 2026. The actor compromised at least 440 PaperCut instances across 395 organizations in 48 countries, achieving domain admin at 12 victims — fastest time to domain admin was five minutes and a US high school was fully compromised in seven minutes. Attack paths involved LSASS memory and registry secret harvesting, pass-the-hash to domain controllers, noPac attacks, account additions to Domain Admins, and DCSync to exfiltrate full NTDS.DIT credential dumps. Impact scope suggests access development potentially for handoff, with prior PaperCut intrusions historically leading to extortion.
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Chinese Hackers Use AI Agents in Multi
China-linked campaign used the SecFlow AI-agent framework (Claude, Qwen, DeepSeek) to automate intrusions against government targets in Taiwan, Indonesia, China and Vietnam.
Hunt.io documented a second China-linked campaign wiring commercial AI models into live cyberespionage, reconstructing the SecFlow orchestration system from five accidentally exposed open directories. Targets included Taiwan's Kuomintang Party archives, Indonesia's Ministry of Foreign Affairs, mainland Chinese government and education systems, and Vietnamese industrial hosts. The most extensive compromise hit a Fengtai District government Office Automation environment, yielding LSASS and registry hive theft, 822 user records and 1.28GB of attachments including patient health data. Tooling included a GLUTTON webshell hiding payloads in PNG pixels via steganography and a fake MySQL deserialization service for client-side code execution.
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Persistent Attempts at Cyberespionage Against Southeast Asian Government Target Have Links to Alloy Taurus
Alloy Taurus (GALLIUM) compromised Southeast Asian government networks from 2022 to 2023 using Exchange web shells and undocumented .NET backdoors Reshell and Zapoa.
Unit 42 tracked persistent multiwave intrusions at a Southeast Asian government starting in early 2022 and continuing through 2023, attributing the activity with moderate confidence to Alloy Taurus (aka GALLIUM), a Chinese state-aligned espionage group. Attackers exploited Exchange Server vulnerabilities to deploy web shells including China Chopper, then ran reconnaissance with Fscan and WebScan, created administrative accounts, and installed undocumented .NET backdoors named Reshell and Zapoa. They established resilience by installing SoftEther VPN, brute-forced Active Directory credentials with Kerbrute, and dumped credential stores with GoDumpLsass and LsassUnhooker. The campaign reflects long-term espionage tradecraft to maintain a foothold.
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PaperCut Attacker Uses Hundreds of AI Agents to Compromise 440+ Instances
GreyNoise and Blackpoint tracked an AI-assisted actor using OpenAI Codex and DeepSeek agents to exploit PaperCut flaws across 440+ instances in 48 countries.
A suspected Russian-speaking actor exploited the CVE-2026-81578 authentication bypass and CVE-2026-82078 RCE chain in PaperCut NG/MF, compromising at least 440 instances across 395 organizations in 48 countries, heavily targeting education in the US, UK, France, and elsewhere. The actor used hundreds of AI agents powered by OpenAI Codex and DeepSeek plus tools like Mimikatz, SharpHound, Certipy, Rubeus, and Impacket, reaching domain admin at 12 victims and full domain admin at a US high school within seven minutes. Post-exploitation included registry hive collection and Metasploit/Meterpreter payloads, with origin traced to IP 45.142.193.132.
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Windows Defender ShieldCrash 0-Day Lets Attackers Read Arbitrary Files as SYSTEM
Unpatched Windows Defender zero-day 'ShieldCrash' PoC lets local attackers read arbitrary files as SYSTEM, apparently bypassing the CVE-2026-69414 patch.
Researcher MSNightmare published a skeleton proof-of-concept for 'ShieldCrash', an unpatched Microsoft Defender flaw enabling arbitrary file reads with SYSTEM privileges that reportedly persists on supported Windows versions after September 2026 updates. It appears to bypass the recent fix for the Malware Protection Engine elevation-of-privilege flaw CVE-2026-69414 (ShieldBreak), patched in engine version 1.1.26080.3. SYSTEM-level file disclosure could expose credentials, application secrets and registry hives and support post-compromise reconnaissance. No active exploitation is confirmed and Microsoft had issued no specific patch or mitigation at disclosure time.
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PaperCut Flaws Exploited in Attacks on U.S. and European Schools
Attackers are chaining recently disclosed PaperCut flaws CVE-2026-81578 and CVE-2026-82078 to steal credentials and create privileged accounts at US and European schools.
Arctic Wolf researchers observed threat actors exploiting PaperCut servers via CVE-2026-81578 and CVE-2026-82078, chaining an authentication bypass with remote code execution. Post-exploitation included creating a privileged account named Administrator17, downloading credential-harvesting tools with certutil, Meterpreter Java payloads, and registry hive collection to recover the Windows BootKey and reach the SAM database. PaperCut disclosed active exploitation on August 27, 2026, and CISA added both flaws to its Known Exploited Vulnerabilities catalog on August 31. PaperCut has a history of exploitation, including attacks that delivered LockBit ransomware.
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Attackers Exploit PaperCut Flaws to Steal Credentials From Schools and Universities
Attackers exploit newly disclosed PaperCut auth bypass CVE-2026-81578 and RCE CVE-2026-82078 to steal credentials from schools and universities in the US and Europe.
Arctic Wolf observed threat actors chaining CVE-2026-81578 (authentication bypass) and CVE-2026-82078 (remote code execution) in PaperCut to execute commands, perform reconnaissance, and create privileged accounts on servers at K-12 schools and universities in the US and Europe. Post-exploitation includes registry hive collection with lsa_collect.exe delivered via certutil, Meterpreter Java payloads from 194.180.48.134, and searches of PaperCut config files for passwords, LDAP bindings, and tokens. Stolen logins could provide a pathway into other critical systems across compromised environments.
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Attackers Expose Ongoing AI Tool Use Targeting Organizations in Latin America
Unit 42 documents two AI-assisted intrusion campaigns against Latin American government, utility, and financial organizations using LLM-orchestrated tooling.
Palo Alto Networks Unit 42 tracks two ongoing intrusion clusters, CL-CRI-1131 (Mexican transportation, federal ministries, municipal water utilities) and CL-CRI-1163 (Brazilian financial sector), both using living-off-the-land techniques, SOCKS5 relays, and custom RATs. The attackers appear to orchestrate operations via commercial LLMs like Claude and GPT-4.1, evidenced by iterative batch scripts and AI-generated tunneling tool naming. The Mexican campaign (also reported as Operation Escaneo by CloudSEK) exfiltrated sensitive data via dynamic-DNS infrastructure with rotated multi-SAN TLS certificates between February and June 2026. This signals broader adoption of AI-enhanced operations by diverse threat groups in the region.
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Microsoft patches 400+ vulnerabilities, one zero-day under attack (CVE-2026-68820)
Microsoft's August 2026 Patch Tuesday fixes 400+ vulnerabilities, including an actively exploited Windows zero-day (CVE-2026-68820) used by North Korean attackers.
Microsoft's August 2026 Patch Tuesday fixes over 400 vulnerabilities, including CVE-2026-68820, a use-after-free in the Windows Ancillary Function Driver exploited in the wild by North Korean actors deploying a kernel-mode rootkit in Operation Dream Job. Critical unauthenticated remote code execution flaws in Microsoft QUIC (CVE-2026-62815) and Windows DNS (CVE-2026-62878) were also patched, alongside a SharePoint RCE chain combining CVE-2026-63520 with CVE-2026-55040. Researcher Nightmare-Eclipse released ShieldBreak, a PoC bypassing the July RoguePlanet Microsoft Defender patch (CVE-2026-50656), confirmed working by Will Dormann on Windows 11.
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