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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.

Microsoft Security Blog · 13d agoPhishing & fraud in the wild1

The /wayfinder Skill: Navigating the “Fog of War” of Planning

Matt Pocock released the /wayfinder skill, an orchestrator layer that manages planning sessions, maps, and tickets for AFK coding agents.

Latent Space interviews Matt Pocock, whose AI Skills for Real Engineers project has 220,000+ GitHub stars, about his new /wayfinder skill. The skill manages agent context during ambiguous planning by splitting work into grilling, prototype, research, and task tickets organized under a shared map, enabling overnight AFK agent runs. It uses deliberate terminology like map, ticket, and session to steer agent behavior, and was tested on projects including a personal website rearchitecture.

Latent Space · 26d agoAI tools & infra

AI models' written reasoning steps correspond to distinct internal patterns, a new study finds

KAIST and Naver AI Lab researchers show LLM reasoning steps like extraction and computation map to distinct activation patterns, strongest in middle layers.

Researchers at KAIST and Naver AI Lab defined eight recurring reasoning operations, including extraction, decomposition, formula recall, deduction, and computation, and showed they correspond to separable activation patterns in Qwen2.5-7B, Qwen3-8B, and Gemma4-31B on math tasks, with GPT-5 labeling solution segments. The separation peaks in middle layers, holds even when a computation step produces a wrong answer, and goes beyond surface-level token choice. Findings replicated on Llama-3-8B, and classifiers trained on Qwen3-8B transferred to GPQA-Diamond and MATH-500. The authors note that using internal states for error detection or mid-generation steering remains future work.

The Decoder · 4d agoAI research2

Technical Manual for a Toolkit for Measuring Contextual Individuation in Transformer Language Models

An open methodology toolkit measures whether transformer language models contextualize fixed word forms across domains using bridge forms and layer-wise silhouette analysis.

The manual documents an open toolkit built around 'bridge forms' - identical written words recurring across two or more subject domains with a different sense in each - to test whether transformer language models individuate word occurrences by context beyond the embedding layer. It covers declarative specification of bridge forms, Wikipedia corpus acquisition, occurrence localization, layer-wise representation extraction, domain-pairwise silhouette measurement, and visualization, justifying each choice against failure modes such as sense contamination and subword-tokenization misalignment. It is a methodological and implementation reference and reports no empirical results.

arXiv cs.AI / cs.LG / cs.CL · 11d agoAI research

Tracking OceanLotus’ new Downloader, KerrDown

Unit 42 identifies KerrDown, a new OceanLotus (APT32) downloader active since 2018 targeting Vietnamese speakers via malicious macros and DLL side-loading.

Unit 42 tracks KerrDown, a previously undocumented downloader family used by OceanLotus (APT32) since at least early 2018, primarily targeting Vietnam or Vietnamese-speaking individuals. Delivery uses macro-laced Microsoft Office documents embedding base64-encoded 32-bit and 64-bit DLLs, and RAR archives containing a legitimate program abused for DLL side-loading. KerrDown is dropped as main_background.png, downloads a DES-encrypted payload from a URL, and executes it directly in memory. Researchers used Jaccard-index similarity analysis to identify the new family, connect campaign samples, and infer patterns in the group's working hours and days.

Palo Alto Unit 42 · Aug 17, 2026Malware in the wild1