Hackers Use Claude and GPT-Powered Tools to Help Breach Government and Financial Networks
Unit 42 links two Latin America campaigns where operators used Claude and GPT-4.1 during intrusions against government and financial targets.
Palo Alto Networks Unit 42 identified two activity clusters, CL-CRI-1131 and CL-CRI-1163, tied by shared SOCKS5 relay infrastructure and use of large language models during operations. The Mexican cluster targeted a transportation organization, federal ministries and water utilities in Mexico and Ecuador, while the Brazilian cluster used resume-themed phishing, custom remote-access Trojans and SockTz SOCKS5 tunneling against financial organizations. An exposed self-hosted NextChat interface on attacker infrastructure led researchers to assess operators used Claude and GPT-4.1 to generate workaround scripts and troubleshoot execution failures. Unit 42 noted AI reduced time needed to troubleshoot intrusions after initial access, rather than replacing the attacker.
Agents Gone Wild: An AI-Orchestrated Global Campaign Against PaperCut NG/MF
AI-orchestrated campaign exploited PaperCut NG/MF RCE (CVE-2026-81578/82078), compromising 440+ instances at 395 organizations in 48 countries.
GreyNoise tracked a likely Russian-speaking actor using AI (OpenAI Codex harness plus a DeepSeek model) to develop, test, and deploy exploits for PaperCut NG/MF (CVE-2026-81578, CVE-2026-82078) starting 31 August 2026. The actor compromised at least 440 PaperCut instances across 395 organizations in 48 countries, achieving domain admin at 12 victims — fastest time to domain admin was five minutes and a US high school was fully compromised in seven minutes. Attack paths involved LSASS memory and registry secret harvesting, pass-the-hash to domain controllers, noPac attacks, account additions to Domain Admins, and DCSync to exfiltrate full NTDS.DIT credential dumps. Impact scope suggests access development potentially for handoff, with prior PaperCut intrusions historically leading to extortion.
BraZetsu Malware Turns Compromised Windows Hosts Into Criminal Marketplace Inventory
Group-IB details BraZetsu, a modular Python Windows malware that monetizes compromised-host access through the Infected Marketplace for initial access brokers.
Group-IB attributes BraZetsu to the Exilware threat actor, believed to be native Portuguese speakers targeting Iberian and Latin American e-commerce, financial, industrial, and law enforcement victims. The framework, first observed in early May 2026, uses generative AI for data triage and target prioritization, steals browser histories and digital certificates, and hunts Brazilian CNAB financial remittance files. Access to compromised hosts is sold on the Infected Marketplace from roughly $5.80, letting buyers remotely deploy secondary payloads over WebSocket-linked infrastructure. Some samples evaded detection on VirusTotal; delivery likely uses VBS loaders from a domain also used to distribute the Ousaban banking trojan.
Attackers Expose Ongoing AI Tool Use Targeting Organizations in Latin America
Unit 42 documents two AI-assisted intrusion campaigns against Latin American government, utility, and financial organizations using LLM-orchestrated tooling.
Palo Alto Networks Unit 42 tracks two ongoing intrusion clusters, CL-CRI-1131 (Mexican transportation, federal ministries, municipal water utilities) and CL-CRI-1163 (Brazilian financial sector), both using living-off-the-land techniques, SOCKS5 relays, and custom RATs. The attackers appear to orchestrate operations via commercial LLMs like Claude and GPT-4.1, evidenced by iterative batch scripts and AI-generated tunneling tool naming. The Mexican campaign (also reported as Operation Escaneo by CloudSEK) exfiltrated sensitive data via dynamic-DNS infrastructure with rotated multi-SAN TLS certificates between February and June 2026. This signals broader adoption of AI-enhanced operations by diverse threat groups in the region.
Dark Caracal Deploys New Go Malware With Ethereum-Based C2 Fallback
Dark Caracal targeted a Venezuelan communications organization with new Go-based GoCaracal malware and an updated Bandook backdoor using Ethereum smart-contract C2 fallback.
Arctic Wolf Labs linked a June 2026 intrusion against a communications organization in Venezuela to Dark Caracal, an espionage group associated with Lebanon's General Directorate of General Security (GDGS). The group deployed a previously undocumented Go-based framework called GoCaracal in lightweight and extended builds alongside a Delphi-loaded Bandook backdoor, with delivery via phishing emails carrying weaponized SVG attachments through URL shorteners. The extended build uses a custom Solidity contract, BulletproofC2, on Ethereum to retrieve replacement C2 addresses without redeploying malware, and Arctic Wolf traced 249 related samples from January to July 2026 showing a modular evolution arc.
GoCaracal Malware Uses Ethereum Smart Contract to Fetch Replacement C2 Address
Arctic Wolf links new Go-based GoCaracal malware with Ethereum smart-contract C2 fallback to Dark Caracal, targeting a Venezuelan communications organization.
Arctic Wolf assessed with medium confidence that a June 2026 intrusion at an unnamed Venezuelan communications organization used GoCaracal, a previously undocumented Go-based malware framework linked to Dark Caracal. The lightweight profile provides encrypted C2, interactive shell access, and shellcode injection; the extended profile adds browser data theft, keylogging, WebRTC remote desktop, and SOCKS5 proxying. When the primary C2 server is unreachable, the malware queries an Ethereum smart contract via eth_getStorageAt at public JSON-RPC endpoints to fetch a replacement C2 address. Bandook was deployed in parallel, and Arctic Wolf published a YARA rule and indicators of compromise.
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.