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FBI Disrupts China-Linked QTFY Infrastructure Used to Steal Data From U.S. Organizations
FBI and Lumen disrupted QTFY's QScan and QTRouter botnet platforms used by Chinese state-sponsored hackers to conceal intrusions into U.S. agencies.
The U.S. DoJ announced court-authorized seizure of domains behind QScan and QTRouter, operated by the Chinese state-sponsored group QTFY and employed by Nanjing Xinjiuwei Network Technology Company. QTFY has been active since May 2018 and targeted NASA, the Federal Reserve, the Department of Energy, DoJ, HHS, NIH, the U.S. Senate, and academic institutions. QScan exploits vulnerable IoT devices, feeding them into QTRouter, an OpenWrt-based proxy obfuscation network likened to an operational relay box (ORB) that masks attack origins. The group exploited zero-days such as Ivanti CSA flaws CVE-2024-8190, CVE-2024-8963, and CVE-2024-9380, plus numerous N-days, and maintained persistence with RATs, web shells, and legitimate credentials.
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US takes down alleged Chinese hacking tools used against Federal Reserve, DOJ and Senate
DOJ takes down QScan and QTRouter Chinese obfuscation platforms used to breach Federal Reserve, DOE, DOJ, and Senate since 2018.
The DOJ and FBI seized domains hard-coded into QScan and QTRouter, platforms run by Nanjing Xinjiuwei Network Technology Company and used by China's Ministry of State Security and PLA. QScan automatically infected IoT devices worldwide which were absorbed into QTRouter, allowing attackers to disguise intrusions as originating from other countries or local sources. Victims included the Federal Reserve, Department of Energy, DOJ, US Senate, NASA, HHS, NIH, plus hospitals, telecoms, power companies, financial institutions, and defense contractors. The FBI investigated QTFY since 2018, tracing a 2019 NASA incident through Pulse Secure VPN exploitation.
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⚡ Weekly Recap: SharePoint 0-Day, Chrome Exploit, macOS Spyware, NVIDIA Toolkit RCE and More
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Threat Advisory: Critical Apache Log4j vulnerability being exploited in the wild
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Magnitude exploit kit
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ASCII smuggling crosses over from AI prompt injection to phishing evasion
Microsoft details high-volume phishing campaign using ASCII smuggling (Unicode tag chars) for filter evasion, peaking at 2.3M messages.
Microsoft researchers observed a high-volume finance-themed phishing campaign using invisible Unicode tag characters (U+E0000–U+E007F), a technique known from AI prompt injection research as ASCII smuggling, to split lure words like 'funding' and evade email filters. Telemetry from Microsoft Defender for Office 365 showed signature hits jump from roughly 21,000 messages on February 8, 2026 to more than 1.3 million on February 9, peaking above 2.3 million on February 11, with elevated weekday activity lasting approximately three months. The discovery emerged from prompt injection protection research, showing AI-era evasion techniques crossing into traditional phishing. Most messages were flagged by layered Defender protections rather than a single Unicode-specific signal.
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FBI Seizes China-Linked Hacking Platforms QScan and QTRouter Used Against Critical Infrastructure
FBI seizes China-linked QScan and QTRouter hacking platforms used by QTFY to obfuscate intrusions against US federal agencies.
The DOJ and FBI seized domains hard-coded into QScan and QTRouter, two platforms operated by China-based Nanjing Xinjiuwei Network Technology Company on behalf of state-sponsored group QTFY. QScan automatically infected thousands of IoT devices which were added to QTRouter, an obfuscation network routing malicious traffic through compromised and proxy devices outside China. Targets included NASA, the Federal Reserve, Departments of Energy, Justice, and HHS, NIH, and the US Senate, exploiting flaws in Fortinet SSL-VPN, Citrix ADC, Microsoft Exchange, F5 BIG-IP, Log4j, and others.
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CosmicSting attack & defense overview
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New malicious web shell from the Tropic Trooper group is found in the Middle East
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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.
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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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H1 2026 Malware Vulnerability Trends
Recorded Future's H1 2026 report finds 215 actively exploited CVEs, RAT dominance, NFC payment fraud, and AI-augmented but not autonomous tradecraft.
Recorded Future's Insikt Group identified 215 actively exploited CVEs in H1 2026, up 34% from 161 in H1 2025, with the most impactful flaws combining network reachability, no authentication, and code execution. AsyncRAT was the top malware family, with AsyncRAT, Cobalt Strike, XWorm, Stealc, and REMCOS remaining top-ten staples; Android NFC malware like NFCShare and NGate enabled payment card theft and ATM cash-outs. AI-enabled attacks remained additive to established tradecraft, concentrated in Levels 1-3 of Recorded Future's AIM3 maturity model, with AI-assisted vulnerability research (e.g., Claude Mythos fixing 271 Firefox bugs in Firefox 150) inflating NVD disclosure volumes 43% above the prior six-month average. The report urges defenders to prioritize remotely exploitable RCE flaws, behavioral detection, developer credential security, and third-party oversight.
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Impersonating IT support: how threat actors turn a remote session into enterprise-wide access
Microsoft details Teams IT-support impersonation campaigns deploying Node.js implants, AD reconnaissance, and WinRM lateral movement toward domain controllers.
Microsoft Threat Intelligence describes a human-operated campaign where attackers impersonate IT/helpdesk staff via Microsoft Teams external collaboration, talk users into granting remote sessions, and use RMM tools for interactive access. During the session they run PowerShell to silently install a malicious MSI that stages a portable Node.js runtime and obfuscated JavaScript implant for C2, executing follow-on payloads via rundll32. Operators then perform host and Active Directory reconnaissance, capture desktop screenshots, and pivot via WinRM on port 5985 to domain controllers and certificate authorities. The hands-on-keyboard chain, which can precede data theft and ransomware, blends into normal operations by relying on Teams, Quick Assist, msiexec, and Node.js; Microsoft shares hunting and mitigation guidance.
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⚡ Weekly Recap: VMware Exploits, Windows 0-Day, MCP Attacks, Browser Hijacks and More
Weekly recap: suspected China-nexus APT exploited VMware vCenter CVE-2026-59310, Lazarus used Windows zero-day CVE-2026-68820, and macOS flaw dropped Monero miners.
The week's top stories included a suspected China-nexus APT exploiting VMware vCenter CVE-2026-59310 (CVSS 9.8), a directory-traversal flaw enabling arbitrary code execution, with backdoors, reverse SSH and Babuk-derived ransomware deployed, per QUIRSO. NCSC-NL reported active exploitation of macOS Screen Sharing flaw CVE-2026-65400 (CVSS 9.8) to install Monero miners on systems with port 5900 exposed. Lazarus Group exploited Windows zero-day CVE-2026-68820 (CVSS 7.0) in Operation Dream Job, delivering ForestTiger and Troy backdoors to defense and aerospace targets. GeoServer patched a critical SQL injection flaw exploited within hours of disclosure, and Jamf analyzed the new Amnesia Stealer for macOS with live browser control.
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Nearly 800 Malicious npm Packages Deliver Cross
Nearly 800 typo-squatted npm packages deliver WEL1DROPPER, a cross-platform downloader installing RAT and infostealer payloads on Windows, macOS, Linux.
Researchers found roughly 800 npm packages with AI-generated typo-squat names that trigger a WEL1DROPPER downloader when loaded via require() rather than install hooks. The downloader fetches payloads from Cloudflare Workers hosts, falling back to DNS TXT records from wel1.ru, then achieves persistence, sandbox checks, ETW/AMSI patching and Sliver C2 deployment on Linux. Domains like tcsbank.ru suggest targeting of Russian financial institutions; Sonatype tracks the campaign as Flooding Dropper, a possible evolution of the Moika dependency-confusion campaign. Unit 42 separately documented npm/PyPI crypto stealers and malicious Chrome extensions that turn browsers into residential proxy crawlers.
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