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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 · 8d agoAdvisory in the wild1

Infostealers Are Hijacking Claude Sessions and Draining Subscriptions

Infostealers hijacked active Claude sessions to bypass 2FA, drain paid usage and run unauthorized charges; Anthropic is revoking sessions and refunding.

Anthropic confirmed that infostealer malware on user machines stole active Claude login sessions, letting attackers bypass passwords, MFA, and SSO and drain paid usage and run unauthorized charges. Affected families identified on Windows include Vidar, LummaC2, StealC, RedLine, and Acreed, plus Atomic Stealer on a small number of Macs; the malware typically arrived via unofficial downloads or malicious apps. Anthropic signed users out, removed saved payment cards, revoked affected sessions, and is refunding unauthorized charges, noting phones and tablets were not involved.

Security Affairs · 17d agoMalware in the wild

Threat Assessment: Ryuk Ransomware

Unit 42 assesses Ryuk ransomware amid a CISA/FBI/HHS alert on threats to U.S. healthcare, including the UHS attack that disrupted hospital operations.

A joint CISA, FBI, and HHS alert on October 28, 2020 warned of an imminent threat to U.S. healthcare from operators deploying Trickbot and Ryuk ransomware. Universal Health Services reported a Ryuk attack that disrupted all U.S. UHS sites for weeks, with similar incidents at hospitals in Oregon and New York. Ryuk typically arrives after Trickbot or BazaLoader infections delivered via malicious email, and operators enumerate networks with PowerShell and WMI before encryption. The Trickbot Anchor_DNS module performs DNS tunneling for C2, using connectivity checks to benign domains like ipinfo.io and checkip.amazonaws.com.

Palo Alto Unit 42 · Aug 17, 2026Ransomware in the wild

Six Chinese AI firms accused of aggressively copying US frontier models

NSA, CISA, and FBI accuse DeepSeek, Moonshot AI, Alibaba, MiniMax, StepFun, and Z.AI of industrial-scale distillation of US frontier models via API abuse.

A joint NSA, CISA, and FBI release alleges six Chinese AI firms have extracted capabilities from US frontier models, including Claude, GPT, Gemini, and Grok, since at least late 2024, likely with Chinese government awareness. Tactics include bulk procurement of premium subscriptions with fraudulent accounts, proxy routing to evade geo-restrictions, and prompt injection to force models to reveal hidden chain-of-thought reasoning. Agencies recommend stronger identity verification, monitoring of anomalous usage, and quietly downgrading or adding noise to responses for suspected distillers, while warning these mitigations could frustrate legitimate users.

Ars Technica · AI · 7d agoAI safety & security in the wild

Chinese AI firms are siphoning capabilities from American models, CISA warns

CISA, NSA and FBI warn Chinese AI firms including DeepSeek and Moonshot AI extracted billions of tokens from US frontier models via distillation campaigns.

A joint CISA, NSA and FBI advisory says China-based firms including DeepSeek, Moonshot AI, Alibaba, MiniMax, StepFun and Z.AI have run industrial-scale knowledge distillation campaigns against US frontier models such as Claude, GPT, Gemini and Grok since at least late 2024, likely with Chinese government knowledge. The campaigns used gray-market API proxies called transfer stations, premium account pools and traffic routing to bypass restrictions, evade safeguards and exfiltrate billions of tokens used to train models like DeepSeek R1/V3 and Kimi. The agencies challenge DeepSeek's reported $5.6 million training cost and recommend identity verification, usage monitoring, response variation, differential privacy and indicator sharing as defenses.

Help Net Security · 8d agoAdvisory in the wild1

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 · 8d agoAI safety & security in the wild1· 1 read

Microsoft security advisory – September 2026 monthly rollup (AV26-896) – Update 1

Canada's Cyber Centre relays Microsoft's September 2026 rollup; CISA added exploited zero-days CVE-2026-85880 and CVE-2026-81963 to KEV.

Advisory AV26-896 from the Canadian Centre for Cyber Security summarizes Microsoft's September 2026 monthly security rollup, listing affected products across Windows, Office, .NET, Azure, Exchange and SQL Server. It notes Microsoft confirmed CVE-2026-81963 and CVE-2026-85880 have been exploited. On September 8, 2026, CISA added both CVEs to its Known Exploited Vulnerabilities catalog, and administrators are urged to apply the updates.

Canadian Centre for Cyber Security · 8d agoAdvisory in the wildCVE-2026-81963CVE-2026-858802

Condé Nast Data of 32.8 Million Users Offered for Sale After WIRED Leak

A 32.8 million-record Conde Nast user database is offered for $15,000 on a Russian cybercrime forum, extending December's WIRED leak with millions of unseen records.

A database of 32,815,767 Conde Nast user records went on sale on 7 September 2026 for $15,000 on a Russian-language forum, containing names, addresses, birth dates and phone numbers but no passwords or payment data. Ransomnews verified a 5,000-record sample as genuine account data collected between September and late October 2025, with roughly 30.5 million non-WIRED records never previously published. The listing matches the December 2025 WIRED leak of 2,366,576 records, claimed by an actor called 'Lovely' who said 40+ million records were stolen via IDOR and broken access controls. Conde Nast has not confirmed the breach; exposed data enables credible targeted phishing and fraud.

Security Affairs · 9d agoData breach in the wild

The Self-Expanding Stolen Inference Supply Chain: An AI Agent Harvesting and Re-Serving LLM Access, (Fri, Sep 11th)

An autonomous coding agent harvested LLM API access from poorly secured gateways and aggregated stolen inference capacity behind a self-hosted gateway

A SANS researcher observed a semi-autonomous coding agent finding weakly secured LLM resale gateways via FOFA queries, creating trial accounts with temporary emails and CAPTCHA solving, and exploiting weak authorization such as client-supplied group_id fields. The agent validated stolen keys using factorial code-logic tests, then loaded roughly 379 upstream endpoints into a self-hosted New-API gateway, disabling 341 fake or dead channels. Five model names including claude-opus-5 and gpt-5.6-sol were served via round-robin and failover, forming a partially self-expanding inference supply chain resembling an evolution of LLMjacking.

SANS Internet Storm Center · 5d agoThreat actor in the wild

Hackers Use AI-Assisted CEO Emails to Trick Finance Teams Into Sending $50,000 Payments.

Microsoft tracked a million-message AI-assisted BEC campaign impersonating executives with fake ServiceNow invoices to steal ~$50,000 ACH payments.

Microsoft detected over one million messages in a BEC campaign running August 3-5, using AI-assisted phishing templates, executive impersonation, and fabricated ServiceNow subscription invoices to trick finance teams into authorizing fraudulent ACH payments of roughly $50,000. The US received 87.7% of volume. Attackers used lookalike domains like service-nowinc[.]com registered just days before delivery, with no compromise of ServiceNow itself. Telltale signs included verbose HTML comments, uniform formatting, and inconsistent forwarded-message headers.

GBHackersupdated · 5d agofirst · 6d agoPhishing & fraud in the wild 2 sources

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 · 8d agoAI safety & security in the wild

New Mirai Variant Targeting Network Security Devices

New Mirai botnet variant exploits nine vulnerabilities in SonicWall, D-Link, Netgear, and other devices, with attacks ongoing at publication.

Unit 42 observed attacks exploiting VisualDoor (SonicWall SSL-VPN), CVE-2020-25506 (D-Link DNS-320), CVE-2020-26919 (Netgear ProSAFE Plus), and other flaws, with infrastructure rotating across at least three IP addresses between February 16 and March 13, 2021. Payloads were updated hours after CVE-2021-27561 and CVE-2021-27562 (Yealink Device Management, unauthenticated root RCE) and later added CVE-2021-22502 (Micro Focus Operation Bridge Reporter) and CVE-2019-19356 (Netis WF2419). Successful exploitation invokes wget to fetch shell scripts that download Mirai binaries compiled for multiple architectures and brute-forcers, and attacks were still ongoing when reported.

Palo Alto Unit 42 · 28d agoExploit / PoC in the wildCVE-2020-25506CVE-2020-26919CVE-2019-19356+3 CVEs

Keys to the Kingdom: Erlang/OTP SSH Vulnerability Analysis and Exploits Observed in the Wild

Attackers actively exploit CVE-2025-32433, a CVSS 10.0 unauthenticated RCE in Erlang/OTP SSH, heavily targeting OT and critical infrastructure networks.

CVE-2025-32433 enables unauthenticated RCE in Erlang/OTP's SSH daemon via SSH connection protocol messages (codes >= 80) processed before authentication, affecting versions before OTP-27.3.3, OTP-26.2.5.11 and OTP-25.3.2.20. Unit 42 recorded a spike in exploitation between May 1-9, 2025, with 70% of detections on firewalls protecting OT networks, disproportionately affecting healthcare, agriculture, media and high technology. Observed payloads bind TCP-connected shells or launch Bash reverse shells to hosts like 146.103.40.203:6667, with randomized DNS lookups under dns.outbound.watchtowr.com indicating OAST-driven blind RCE validation.

Palo Alto Unit 42 · Aug 17, 2026Exploit / PoC in the wildCVE-2025-32433

CVE-2022-22965: Spring Core Remote Code Execution Vulnerability Exploited In the Wild (SpringShell) (Updated)

Attackers actively exploit Spring Framework RCE CVE-2022-22965 (SpringShell, CVSS 9.8) to deploy webshells; patches 5.3.18/5.2.20 shipped March 31, 2022.

CVE-2022-22965 enables unauthenticated remote code execution in the widely used Spring Framework (CVSS 9.8), which Unit 42 has observed being exploited in the wild. The flaw stems from getCachedIntrospectionResults exposing the class object during parameter binding, letting attackers manipulate the class loader to modify Tomcat logging and upload a JSP webshell. Public PoCs require JDK 9+, Tomcat, WAR packaging, and spring-webmvc or spring-webflux dependencies on Spring 5.3.0-5.3.17, 5.2.0-5.2.19, or older. Fixes shipped in Spring Framework 5.3.18 and 5.2.20; the related Spring Cloud Function flaw CVE-2022-22963 was patched March 29, 2022.

Palo Alto Unit 42 · Aug 17, 2026Exploit / PoC in the wildCVE-2022-22965CVE-2022-22963CVE-2010-16221