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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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One runaway AI agent racked up a $50,000 cloud bill
Mandiant's AI Risk and Resilience report details prompt injection, AI supply chain compromises, agent abuse, and a runaway agent that accrued $50,000 in cloud charges.
Mandiant, drawing on Google Threat Intelligence Group (GTIG) observations, warns that poisoned data sources, model dependencies, and extension hooks can turn AI agents into channels for reconnaissance, lateral movement, and sandbox escape. Mandiant responded to incidents involving UNC6780 (TeamPCP), who stole AI service credentials and used prompt injection against AI coding assistants, while GTIG disclosed the first confirmed criminal use of an AI-developed zero-day exploit in a planned mass exploitation campaign. Red team tests showed an AI assistant manipulated into cloning internal repositories to an external GitHub account, and a runaway accounting agent made over 15,000 costly API calls in under an hour, generating roughly $50,000 in cloud charges.
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New Cryptographic Context Injection Attack Could Let Web Pages Steal Grok Chat Data
Adversa AI demonstrated 'Cryptographic Context Injection' making xAI's Grok leak chat history and session data to attacker-controlled servers via encrypted web payloads.
Adversa AI disclosed a technique where a web page carries an encrypted JSON object (PBKDF2 and AES-256-GCM) that Grok's code-execution runtime decrypts, letting attacker instructions bypass content classifiers and reach the model's context. The decrypted instructions direct Grok to embed the user's name, approximate location, subscription tier and ongoing conversation into a URL it fetches, exfiltrating the data without confirmation. Testing targeted grok.com running Grok 4.5 Fast on August 19, 2026, with a reported 40% success rate over 20 attempts since June; no CVE, patch, or in-the-wild exploitation is reported. A related demonstration reproduced Gemini 3 Flash system instructions via a fabricated Python traceback, while GPT-5 failed to parse the payload and Claude Sonnet 4.5 flagged it as prompt injection.
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⚡ Weekly Recap: Chrome 0-Day, Router Hijacks, Coder Supply Chain Attack and More
Weekly recap: actively exploited Chrome V8 zero-day, MikroTik RouterOS zero-day chain, Magento StyleSmuggler backdoor, and critical N-able N-central flaws.
Google patched an actively exploited Chrome V8 type confusion zero-day, CVE-2026-85046 (CVSS 8.8), the sixth exploited Chrome zero-day of 2026. CERT Polska warned of the MikroTrick exploit chain (CVE-2026-67276 and CVE-2026-86060, CVSS 9.2) giving unauthenticated full control of MikroTik RouterOS devices via SSH, observed since September 2. Sansec disclosed the StyleSmuggler Magento/Adobe Commerce zero-day used since September 4 to inject a Rust backdoor into online stores, while N-able patched three critical N-central flaws (CVE-2026-86206, CVE-2026-86207, and CVE-2026-86218, CVSS 10.0) with Huntress observing likely exploitation. Elastic and Morphisec also detailed RevStealer, an information stealer spread via game cheats and a fake Claude Desktop app.
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Meta Releases Muse, a Personal AI Agent With Privacy ‘Built Into It’
Meta launched Muse, a personal AI agent on iOS, Android, WhatsApp, and web, with VM-isolated execution and prompt-injection protections.
Meta released Muse, a personal AI agent from Meta Superintelligence Labs that automates tasks such as sending email, booking travel, and making purchases, accessible via a dedicated app, Muse.ai, and WhatsApp. The agent runs in a Secure VM architecture that isolates untrusted web and integration data from the action-taking component, with a Sentinel system that routes human-in-the-loop approval prompts directly to users to resist prompt injection. Purchases use Stripe's Link single-use card numbers with no-fee return protections, and a future Confidential VM co-developed with Moxie Marlinspike will run in trusted execution environments with user-held keys. Meta added Muse to its public bug bounty with payouts up to $300,000, including up to $130,000 for single-user prompt injection findings.
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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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Week in review: High severity WordPress vulnerabilities, fake OAuth IDs bypass sign-in logs
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GTIG AI Threat Tracker: From Prompting to Autonomy – The Evolution of Adversarial AI
GTIG's Q2 2026 tracker shows adversaries adopting agentic AI workflows, including credential harvesting in under six hours and supply chain attacks by UNC6780.
Google Threat Intelligence Group's Q2 2026 report documents adversaries moving from basic prompting to agentic AI workflows and automation, including a cloud compromise followed by agent-enabled mass credential harvesting executed in under six hours. It tracks financially motivated actor UNC6780 (TeamPCP) conducting large-scale open source supply chain compromises across PyPI, npm, and Docker Hub since March 2026, deploying credential stealers. The report also highlights growing targeting of proprietary AI models, source code, prompts, and API credentials, plus LLMJacking practices where adversaries steal developer credentials or hijack cloud infrastructure to run unauthorized AI workloads.
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⚡ Weekly Recap: NFC Fraud, Curly COMrades, N
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Meta Introduces Muse, a Personal AI Agent That Runs on Its Own Dedicated Secure Cloud Computer
Meta launched Muse, a proactive personal AI agent running in an isolated per-user cloud VM with a Sentinel approval agent and surrogate credentials.
Meta introduced Muse, a consumer agent that performs long-horizon tasks like email, travel booking, and bill negotiation, rolling out in the US on iOS, Android, muse.ai, and WhatsApp with free and paid tiers. Each user gets a dedicated Muse Secure VM where the agent runs in a systemd-nspawn cell, while a separate Sentinel agent approves every network request at layer 4/7 and injects real credentials only at the network boundary. The underlying Muse Spark 1.3 model, which Meta says cuts tool calls by ~20% and tokens by ~25% versus 1.2 and is near state-of-the-art on prompt-injection resistance, is available via Meta Model API, with open weights on the roadmap.
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Inside 90 days of attacks on AI infrastructure
Wiz honeypots recorded 90 days of active campaigns attacking LiteLLM, MCP servers, and AI frameworks via RCE, blind prompt injection, and credential theft.
Wiz deployed AI infrastructure honeypots and observed active attack campaigns over a 90-day window. Attackers targeted LiteLLM, MCP servers, and popular AI frameworks using techniques including remote code execution, blind prompt injection, and memory credential theft. The findings show exposed AI infrastructure is being actively targeted in the wild.
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Microsoft Copilot Personal Flaws Could Let One Click Exfiltrate Data From Connected Apps
Varonis discloses CoSnitch (CVE-2026-24301), three Microsoft Copilot Personal flaws enabling one-click exfiltration of connected-app data; patched August 18, 2026.
Varonis Threat Labs found that an undocumented autorun=1 parameter, paired with the q parameter, lets an attacker-supplied prompt run automatically on page load in a victim's authenticated Copilot session, then exfiltrate data from connected services such as mail, calendar, Google Drive, chat history and the memory store via Copilot's built-in URL fetch to an attacker webhook. A separate memory-poisoning path through web summarization lets a crafted page persist attacker instructions in the user's memory, surviving password changes, session revocation and device re-enrollment. Microsoft shipped patches on August 18, 2026, tracked as CVE-2026-24301, and Varonis found no evidence of in-the-wild exploitation. The flaws were found via 'meta-hacking', asking Copilot itself to reveal the autorun parameter and its protections.
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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.
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ChatGPT Flaw Could Let Attackers Steal Gmail Data Across User Accounts
Check Point found a patched ChatGPT flaw where prompt injection and a shared Artifactory service let attackers covertly exfiltrate Gmail data across accounts.
Check Point Research discovered that ChatGPT's isolated code-execution containers could access a shared internal JFrog Artifactory service, whose item metadata API enabled a bidirectional cross-tenant covert channel between accounts. Attackers could embed hidden prompt-injection instructions in shared conversations or custom GPT configurations, causing a victim's session to silently relay connected Gmail data to another ChatGPT account. In a proof of concept, email data was exfiltrated with the only visible hint being a 'Talked to Gmail' activity label. OpenAI decommissioned the internal Artifactory instance involved, eliminating the channel by publication time.
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Emergence World: Adversarial Stress-Testing of Long-Horizon Multi-Agent Systems
16-day multi-agent stress test finds no world fully resilient to prompt injection, misinformation, or memory exposure; adversarial content acted on 46 hours later.
Emergence World is a continuously running multi-agent environment for adversarial stress testing of long-horizon autonomous systems. Eight parallel 10-agent worlds (seven homogeneous frontier-model worlds plus one mixed-model world) ran for 16 days, generating over 850,000 LLM calls and nearly 50 billion tokens. Three controlled stress events—indirect prompt injection, misinformation, and exposure of private agent memories—were delivered through ordinary interaction surfaces; no world achieved full resilience. Detection did not ensure containment: agents recognized threats yet wrote adversarial content into persistent memory and acted on it up to 46 hours later, suggesting model-level alignment is not compositional.
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