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US says Chinese firms extracted billions of tokens from frontier AI models
CISA, NSA, and FBI say six Chinese AI firms including DeepSeek industrial-scale distilled Anthropic, OpenAI, Google, and xAI frontier models.
A joint CISA, NSA, and FBI advisory accuses DeepSeek, Moonshot AI, Alibaba, MiniMax, StepFun, and Z.AI of extracting billions of tokens from frontier models via millions of API requests since late 2024. The agencies assess the operations likely had Chinese government awareness and represent a core development strategy. Tactics included fraudulent shared accounts, provider failover, proxy routing, and chain-of-thought extraction across Claude, GPT, Gemini, and Grok models.
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Hackers build AI frameworks for widescale credential theft
Google GTIG details threat actors using autonomous multi-agent AI frameworks to automate attacks, including a six-hour credential-harvesting campaign and a 23,800-secret Recon panel.
Google Threat Intelligence Group (GTIG), drawing on Mandiant telemetry, reports threat actors are moving from AI coding assistants to autonomous multi-agent frameworks that automate vulnerability scanning, credential harvesting, troubleshooting, and IP rotation. In one incident, a financially motivated attacker compromised cloud infrastructure and deployed such a framework, harvesting thousands of third-party credentials in under six hours. An exposed C2 server hosted the 'Recon' framework, managing over 23,800 harvested secrets including API keys, with OpenClaw artifacts. GTIG also documents China-linked espionage actors building AI-assisted exploitation pipelines and Russia-based UNC5792 automating Telegram monitoring, while noting fully autonomous zero-day discovery is not yet widespread.
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Risky Bulletin: Russia tells data centers to deploy drone defenses
Russia ordered data center operators to deploy drone strike defenses under a Putin decree allowing temporary state takeover of unprotected critical infrastructure.
The Russian government instructed data center operators to deploy protections against drone strikes under a presidential decree signed by Putin that allows temporary state administration of critical infrastructure operators failing to defend against Ukrainian hacks and drone strikes. Although data centers are not formally critical infrastructure in Russia, the decree applies to them because other sectors depend heavily on cloud services; Russia has more than 180 data centers, over 80% in the European region within range of Ukrainian strikes. The digest also reports a Dropbox breach affecting nearly 5,000 accounts via the Lenovo ID integration, spyware attacks on at least 14 Serbians using NoviSpy or Pegasus, and a password recovery attack targeting hundreds of thousands of X accounts tied to the new X Money service. Other items include a 14-hour compromise of Coder's Cloudflare infrastructure delivering malicious Terraform modules, donor data breaches at Davayte and You Are Not Alone via the Stripe/WooCommerce integration, a $2.5M Aquifer crypto heist, and a TVING breach exposing data of almost 40 million accounts.
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Threat actors are coming for your AI assets to operationalize their use of AI
Google GTIG reports espionage and crime groups stealing AI models, prompts, and API credentials, plus distillation campaigns and agentic AI attack automation.
Google Threat Intelligence Group's quarterly AI Threat Tracker reports adversaries stealing proprietary models, source code, prompts, and API credentials from government, healthcare, and media targets, including China-based UNC6508 compromising clouds to run unauthorized LLM workloads. Distillation campaigns against Google's models exceeded 100 million prompts launched via thousands of stolen account credentials through proxy networks. Mandiant also observed a financially motivated actor deploy an autonomous multi-agent framework that harvested thousands of third-party credentials in under 6 hours, and a 'Recon' framework on a live C2 server managing over 23,000 stolen credentials including cloud and AI API keys.
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China-Linked Hackers Exploit Chrome-Windows Zero-Day Chain to Deploy GRIMWEDGE
Volexity attributes spear-phishing campaign exploiting Chrome-Windows zero-day chain to Chinese actors UTA0560 and APT31 deploying GRIMWEDGE and LONGTALE.
Volexity attributes a September 1, 2026 spear-phishing campaign targeting NGOs to China-linked UTA0560, which abused a reflected XSS flaw on a US university website to trigger a three-part exploit chain (CVE-2026-85046, CVE-2026-87491, CVE-2026-85880) escaping the Chrome V8 and browser sandboxes to deploy the GRIMWEDGE JavaScript backdoor with reconnaissance, file management, and command execution capabilities. The same chain was used near-simultaneously by JungleBamboo (APT31) to deploy SUPERSTOMP, installing the LONGTALE/GemStone credential-stealing Chrome extension masquerading as Google Gemini. The Chrome flaws were patched in Chromium but not yet in stable Chrome, creating an unusual patch-gap zero-day window attackers raced to exploit.
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Four Nation-State Actors Used the Same Chrome Zero-Day Exploit Kit Within 12 Days
Proofpoint reports four nation-state actors, mostly China-nexus, adopted the BlueMoon Chrome and Windows zero-day exploit kit within 12 days, targeting US organizations.
Proofpoint tracked an exploit kit dubbed BlueMoon that chains CVE-2026-85046, a Chrome V8 type-confusion bug, with an unnamed V8 sandbox escape and CVE-2026-85880, a Windows kernel privilege escalation using ALPC and the Windows Notification Facility. The first observed use was by China-nexus TA412 (APT31, Violet Typhoon, JungleBamboo) on August 28, 2026 against US NGOs, mining companies, and commodity trading firms, followed by UNK_LateNight targeting US aerospace and defense companies on September 2. Both V8 bugs were patch-gap zero-days: the fix was committed to Chromium on August 7 but reached stable Chrome on September 3, enabling rapid weaponization from public patches. TA412's post-exploitation payload, GemStone, is a malicious browser extension posing as an AI-powered Google Gemini companion that captures keystrokes, cookies, screenshots, and browsing history via a Cloudflare Worker C2.
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China-Linked Hackers Exploit Chrome and Windows Zero-Days in BlueMoon Attacks
China-linked clusters deploy the BlueMoon kit chaining Chrome V8 CVE-2026-85046 and Windows LPE CVE-2026-85880 in espionage campaigns.
Proofpoint researchers identified BlueMoon, an exploit kit combining a V8 type-confusion RCE (CVE-2026-85046), a V8 sandbox escape, and a Windows kernel privilege-escalation flaw (CVE-2026-85880), first observed August 28, 2026. At least four clusters adopted it, led by TA412 (also tracked as APT31/Violet Typhoon) and followed by UNK_LateNight, UNK_DoubleCheck, and UNK_QuietRacket, targeting aerospace, manufacturing, government, consulting, and financial sectors. The kit exploited a nearly four-week patch gap between the public Chromium commit (August 7) and stable rollout (September 3). TA412 delivered the GemStone Chrome extension masquerading as a Gemini companion, while other clusters deployed ShadowPad via DLL sideloading, a Rust loader, and DoH-based C2.
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Novel Blue Moon kit targeting Chrome and Windows reflects new reality of AI-driven exploits
Proofpoint reports the BlueMoon exploit kit, chaining two Chrome V8 zero-days and a Windows ALPC bug, being shared across China-linked espionage groups.
Proofpoint identified a new exploit kit, BlueMoon, first observed on August 28 and used by TA412 (APT31/Violet Typhoon) against US NGOs, mining firms, and commodity trading companies. The kit chains a V8 type confusion RCE (CVE-2026-85046), a V8 sandbox escape, and a Windows Advanced Local Procedure Call privilege escalation (CVE-2026-85880), both patched flaws having been exploited in the wild. At least four espionage groups, most with suspected China nexus including UNK_LateNight, adopted the kit within days, targeting US aerospace firms with defense-sector lures. Fewer than 20 organizations were observed targeted, and researchers believe AI-assisted exploit development against upstream Chromium patches enabled the kit's rapid creation and sharing.
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Chinese espionage groups swarm to exploit triple-link chain of zero-days
Four China-aligned espionage groups, starting with TA412/APT31, chained zero-days CVE-2026-85046, CVE-2026-87491 and CVE-2026-85880 to spy on targets since late August.
TA412 (Violet Typhoon/APT31) began exploiting the BlueMoon chain on Aug. 28, followed by UNK_LateNight (US aerospace, Sept. 2), UNK_DoubleCheck (Vietnamese manufacturing via a compromised Southeast Asian government account) and UNK_QuietRacket (Indonesia and Singapore government, consulting and finance, Sept. 3). The chain pairs Chromium JavaScript engine RCE flaws CVE-2026-85046 and CVE-2026-87491 with the Windows ALPC privilege-escalation zero-day CVE-2026-85880, enabling sandbox escape and system privileges. Delivery used phishing links installing a fake Google Gemini browser extension that surveilled browser activity and stole credentials; Proofpoint directly observed fewer than 20 organizations but expects wider proliferation as the kit spreads.
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Multiple Chinese hacking groups seen using identical Chrome zero-day exploit
Four China-linked espionage groups share identical BlueMoon Chrome zero-day exploit kit targeting US defense contractors and Asian government agencies.
Proofpoint identified at least four Chinese-aligned espionage groups (TA412/RedBravo, UNK_LateNight, UNK_DoubleCheck, UNK_QuietRacket) using an identical Chrome zero-day exploit kit dubbed BlueMoon in late August through this week. Targets include US defense contractors, NGOs, mining companies, and Southeast Asian government agencies. The exploit chains a Chromium patch-gap vulnerability with a Windows flaw, delivering malware such as ShadowPad and a fake Gemini browser extension backdoor, with possible AI-assisted exploit development.
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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.
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Party’s Over for Crypto Scammers Who Went on a Spending Spree After a $240 Million Bitcoin Theft
Malone Lam's plea hearing approaches in the $240 million bitcoin social engineering theft; the case highlights surging crypto fraud and limited enforcement.
Malone Lam, accused of organizing a social engineering attack that stole over $240 million in bitcoin (4,100+ BTC) from a Washington, D.C. resident in August 2024, has a plea agreement hearing set. Callers impersonating Google and Gemini staff tricked the victim into revealing security codes. Lam and 17 co-defendants spent lavishly before FBI arrests; crypto investment fraud complaints to the FBI rose nearly 50% in 2025 while DOJ disbanded its crypto crimes unit.
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AI Coding Tools Now a Prime Target for Threat Actors, Google Warns
Google Threat Intelligence Group warns threat actors increasingly target AI coding tools and proprietary AI data, with UNC6780's Dustmaker enabling large-scale supply chain compromises.
Google Threat Intelligence Group's September 8 report says AI-assisted coding tools have become prime targets, contributing to large-scale software supply chain compromises in 2025 and early 2026. Financially motivated group UNC6780 used its Dustmaker credential stealer to extract tokens from GitHub Actions runner memory and compromise packages across PyPI, npm, and Docker Hub, then sold harvested AI tool credentials to other criminals. Chinese nation-state actor UNC6508 conducted espionage against proprietary AI research at North American academic, medical, and military institutions, while extortion gangs stole models, prompts, and source code in Q2 2026. GTIG also documented agentic attacker experimentation, including an autonomous multi-agent credential harvesting campaign built in under six hours and a 'Recon' C2 framework managing over 23,800 harvested secrets.
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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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Attackers turn to AI for help identifying files worth stealing
Gambit Security documents three threat actors using AI: a ransomware operator with Claude Code, credential harvester Zerofot, and the AI-built RAGE cryptomining framework.
Gambit Security examined three unrelated threat actors using AI across different stages of intrusions. A suspected operator tied to The Gentlemen ransomware-as-a-service used Claude Code running Claude Sonnet 4.6 in late June 2026 at six organizations, including an Australian energy utility, where it ran reconnaissance, ranked valuable databases, staged SQL Server dumps for exfiltration, and modified firewall configurations, accidentally taking one utility firewall offline. The Zerofot credential-harvesting operation, built with OpenAI Codex and Claude Code, collected 2,975 validated credentials from 1,742 hosts between April 5 and May 23, 2026, including SSH private keys and AWS access keys. The AI-generated RAGE Python framework exploits exposed Redis, Elasticsearch, Docker, Tomcat, and other services to harvest credentials and deploy cryptominers, guided at runtime by a DeepSeek-backed AI Orchestrator.
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LiteLLM Supply-Chain Attack - Technology, Banking and Healthcare the Most Affected
TeamPCP planted the SANDCLOCK credential stealer in LiteLLM PyPI releases, exposing credentials across 2,038 repositories at 898 organizations including Microsoft and NVIDIA.
Threat actor TeamPCP compromised LiteLLM maintainer credentials and published malicious versions 1.82.7 and 1.82.8 to PyPI around March 2026, creating an exposure window of several months. The SANDCLOCK credential stealer exposed full credential sets across 898 GitHub owners and 2,038 repositories, including Microsoft, Azure, IBM, NVIDIA, PayPal, Deloitte, Bosch, and S&P Global. Stolen material includes GitHub CI/CD identities, AWS/GCP/Firebase credentials, SSH keys, Kubernetes secrets, and OpenAI and Anthropic API keys; Resecurity acquired a 150GB archive with 2,146 credential records. Technology, banking/finance, and healthcare organizations are the most affected sectors, and victims must rotate all exposed credentials.
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Srsly Risky Biz: Data Theft Extortion Is Booming! Hooray!
Google's Threat Intelligence Group reports data theft extortion is surging, with Silent Ransom extracting $10M and $18M from two law firms and BlackFile taking $10M.
Risky Business News, citing Google Threat Intelligence Group (GTIG), reports that cybercriminals are shifting from encrypting ransomware to data theft extortion. Law firms Goodwin Procter and WilmerHale paid Silent Ransom (Luna Moth) ransoms of $10 million and $18 million respectively; GTIG says the group often completes contact-to-extortion in a single day, now sometimes compromising systems in person posing as IT staff. BlackFile, now calling itself Redact, used high-volume vishing to steal credentials and pivot through OneDrive, SharePoint and other SaaS apps, collecting more than $10 million between February and mid-May with an average ransom of $750,000, including attempted attacks on Wall Street hedge funds and private equity firms. The piece argues governments should keep pressure on encrypting ransomware gangs while lower-impact extortion absorbs criminal energy.
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