Malicious .git Configs Can Make Claude, Codex, Cursor, and Other AI Agents Run Attacker Code
Malicious .git core.fsmonitor configs let attacker code run in AI coding agents like Claude Code and Codex; four of eight flaws remain unpatched.
Manifold Security disclosed eight flaws across seven command-line AI coding agents where a repository's Git core.fsmonitor configuration causes agent-spawned commands to execute attacker code outside the sandbox and without approval prompts. Fixes shipped for goose (CVE-2026-72718, CVSS 4.0 score 7.0), Claude Code on one path, and Cursor, while Hermes Agent, Qwen Code, Grok Build, and a second Claude Code path were still unpatched as of September 1. OpenAI issued three CVEs for the same class in Codex, including CVE-2026-19592, and prior related bugs include CVE-2021-43891 in Visual Studio Code and CVE-2022-24346 in JetBrains IDEs. Exploitation requires the repository to arrive with its .git directory intact, such as via archives, shared drives, or USB sticks rather than an ordinary clone.
AI-powered attack exploited PaperCut flaws to hack 395 organizations
AI-driven campaign exploited PaperCut flaws CVE-2026-81578 and CVE-2026-82078, compromising 440 servers at 395 organizations in 48 countries.
GreyNoise reports a likely Russian-speaking threat actor used hundreds of AI agents combining OpenAI Codex and DeepSeek models to build, test, and refine exploits for CVE-2026-81578 and CVE-2026-82078 in PaperCut NG/MF, launching the campaign on August 31. At least 440 PaperCut instances at 395 organizations across 48 countries were compromised, with the education sector accounting for roughly half of victims and the US most targeted. Attackers harvested credentials from 280 victims, obtained OS or domain secrets from 147, and gained admin privileges at 12 organizations, using LSASS dumping, pass-the-hash, noPac, and DCSync to dump NTDS.DIT. The adversary went from empty workspace to first RCE in under four hours, and compromised at least 11 organizations within 26 seconds once the campaign launched.
ThreatsDay: CEO Phishing Kits, 5K Dropbox Account Hacks, OAuth Traps + 17 More Stories
Microsoft warns of Teams IT-impersonation intrusions deploying Node.js implants; Spring Ring vishing hit 150+ employees across 10 companies; The Gentlemen ransomware claims 683 victims.
Microsoft warned of a human-operated campaign abusing Teams external collaboration to impersonate IT help desk staff, deploy malicious MSI packages staging Node.js runtimes and obfuscated JavaScript implants, then pivot to domain controllers over WinRM. Unit 42 documented the Spring Ring vishing operation targeting over 150 employees across at least 10 companies using 26 attacker identities, including an NTLM relay variant against domain controllers. Sophos reported The Gentlemen ransomware (Gold Sherwood) reached 683 total victims by end of July 2026, adding 169 in July, with a playbook using BYOVD-based EDR killers and backup tampering. Group-IB found the Outsider phishing-as-a-service platform created 700+ new phishing pages within a month despite law enforcement takedowns.
China-Linked Hackers Use AI Agents in Autonomous Attack on Taiwan
Suspected Chinese hackers used eight AI agents to autonomously breach Taiwan government networks, compromising 85+ accounts and stealing 2,500 personnel records.
Israeli cybersecurity firm Dream documented what appears to be the first fully autonomous, end-to-end AI hacking operation against a government target, suspected to be Taiwan, in early July. The toolkit, built from open-source agent frameworks Hermes and OpenClaw, deployed up to eight agents that mapped 21 government systems, compromised at least 85 accounts, and extracted over 2,500 personnel records before expanding to a nuclear safety agency and at least seven energy companies. Operators bypassed the model's guardrails by framing the entire campaign as an authorized penetration test. Dream found a 160MB, 1,395-file archive containing the deliberately assembled multi-agent weapon.
Malicious LiteLLM Releases Tied to Trivy Hack May Have Exposed 2,100+ Organizations
Malicious LiteLLM 1.82.7/1.82.8 PyPI releases tied to the Trivy TeamPCP campaign harvested cloud, SSH, and database credentials, potentially exposing 2,500+ organizations.
CloudSEK reported that two malicious LiteLLM releases on PyPI (versions 1.82.7 and 1.82.8, live about 40 minutes on March 24) harvested cloud keys, SSH keys, Kubernetes tokens, and database passwords, with captured loot files mapping potential exposure to more than 2,500 organizations including NVIDIA, Cisco, Deloitte, Volkswagen, FedEx, Siemens, and X Corp. The campaign is part of TeamPCP (tracked by Google as UNC6780), linked to the Aqua Security Trivy scanner compromise tracked as CVE-2026-33634 and added to CISA's Known Exploited Vulnerabilities catalog on March 26. The payload used a litellm_init.pth file executed at Python interpreter startup and exfiltrated secrets to models.litellm[.]cloud; the FBI's FLASH-20260702-01 advisory urged rotation of CI/CD, publishing, and cloud credentials.
Risky Bulletin: Two TeamPCP members arrested in Australia
Australian Federal Police arrested two alleged TeamPCP members behind supply-chain worm attacks that stole over 500,000 credentials from compromised open-source libraries.
The AFP arrested alleged TeamPCP leader Ruben Thomson, 21, and Louis Gaebler, 23, near Perth; both were charged and remain in custody. The group inserted a self-spreading credential-stealing worm into open-source projects including Trivy, KICS, LiteLLM, and Telnyx, harvesting more than 500,000 credentials used for network access, ransomware, extortion, and sales. About 78,000 tokens and secrets from nearly 2,200 organizations leaked online last month, and the FBI supported the investigation that began in April.