Microsoft disclosed a hidden input in Copilot that let attackers steal passwords from users who clicked a crafted link.
Microsoft revealed that Copilot contained a secret, undocumented input parameter that allowed the assistant to be compromised. Attackers could abuse the hidden input to steal passwords when a target clicked a malicious link. The disclosure highlights hidden-parameter risks in widely deployed AI assistants.
Weekly ThreatsDay bulletin details a ShinyHunters-style social engineering hit on ReliaQuest, the 296,000-device Dysphoria IoT botnet, and several new malware families.
ReliaQuest confirmed a social engineering attack on August 22, 2026, in which an attacker used a fake SSO page and MFA push approval to gain brief view-only access to an identity dashboard, with tactics matching ShinyHunters, which has since listed the firm on its leak portal. The Shadowserver Foundation reported the Dysphoria botnet has compromised nearly 296,000 IoT devices for DDoS attacks and recently added residential proxy capability. Cisco Talos documented JWR, an operator-driven phishing-as-a-service framework linked to The Outsider that harvests credentials, identity documents, and 2FA codes over an encrypted WebSocket. New malware coverage includes the Octagon Android fraud bot ($1,400/month), the C2Looper Rust backdoor delivered via ClickFix, and the Aeternum loader that moved C2 to the Polygon blockchain.
ConfusedPilot attack exploits Microsoft 365 Copilot's retrieval pipeline to expose confidential enterprise data in AI responses.
ConfusedPilot targets Microsoft 365 Copilot's retrieval-augmented generation pipeline, potentially causing the assistant to surface confidential enterprise content in generated responses. Researchers disclosed the technique as a Copilot data confidentiality flaw affecting search and caching behavior. It highlights the emerging attack surface in enterprise AI assistants that access corporate data stores.
Iran-linked Mirage Kitten uses fake LinkedIn job challenges to deliver new cross-platform RATs NodeRabbit and PollCat to developers in fintech, aviation, and aerospace.
PolySwarm documented a campaign by Iran-linked Mirage Kitten (UNC1549) that uses fake recruiter personas and technical hiring challenges on LinkedIn to deliver the newly documented RATs NodeRabbit and PollCat, which run on Windows, Linux, and macOS. A challenge archive bundles a fake npm package (colorized_terminal 2.1.0) in node_modules that loads NodeRabbit, while a React-based challenge delivers PollCat with an attacker-controlled OTP screen. NodeRabbit persists through a malicious Visual Studio Code extension and Git post-merge/post-checkout hooks; PollCat persists via scheduled tasks, cron, and LaunchAgents. Victims were observed in fintech, aviation, and aerospace, with confirmed targets in Egypt, Ethiopia, and Afghanistan.
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.
Kaspersky reports Iran-linked Mirage Kitten delivers new NodeRabbit and PollCat malware to fintech and aviation targets via fake LinkedIn coding assessments.
Kaspersky researchers documented two previously undocumented Node.js malware families, NodeRabbit and PollCat, attributed with high confidence to Iran-linked APT group Mirage Kitten. The malware is delivered via fake recruiter personas on LinkedIn offering coding assessments hosted on Amazon S3, with instructions banning AI assistants so AI code-review tools would not flag the trojanized npm packages. NodeRabbit is cross-platform (Windows, Linux, macOS), uses AES-256-GCM-encrypted C2 on Azure, includes sandbox checks, and one variant installs a fake 'GitHub Copilot Helper' VS Code extension plus Git hook persistence. Victims identified so far are in fintech and aviation organizations across Egypt, Ethiopia, and Afghanistan.
Week in review: Medusa ransomware hit 500+ orgs per CISA, millions of Azure tenant records allegedly stolen, SafePal and French tax authority breaches disclosed.
Help Net Security's weekly roundup covers the FBI, CISA, and HHS joint advisory update reporting Medusa ransomware has breached more than 500 organizations since June 2021, and threat actor TheHatman's claim of millions of employee records stolen from Azure tenants of Fortune 500 firms including McDonald's, Vodafone, Kyndryl, and Tata Consultancy Services, per Hudson Rock. It also covers the SafePal breach affecting 39,798 customers, France's DGFiP breach exposing data on 678,000 individuals, and UT San delaying its fall semester after a cyberattack. Security items include critical unauthenticated GitLab flaw CVE-2026-19478, an actively exploited patched macOS Screen Sharing flaw deploying a cryptominer, US charges against 17 Mabna Institute Iranian hackers over 31TB of stolen academic data, and Google Mandiant's AI agents finding 100+ high-severity vulnerabilities.
Sophos documented 38 MDR cases where attackers impersonated AI brands like Claude and Perplexity to deliver infostealers and backdoors.
Sophos X-Ops analyzed 12 months of MDR cases and confirmed 38 incidents involving AI. Software impersonation accounted for 30 cases, with Claude impersonated in 26; fake installers used an 'InstallFix' technique delivering mshta commands, in-memory payloads, and process hollowing. Malicious browser extensions posing as AI assistants, including a fake Perplexity extension with 10,000 installs, acted as infostealers. In one case, attackers used a Claude coding agent to develop a Rust remote access trojan communicating over Slack after an SQL injection compromise.