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Hackers Turn Windows Shadow Copies Into a Tool for Credential Theft and Ransomware
Attackers abuse Windows VSS shadow copies to delete recovery points before ransomware and to extract NTDS.dit/SAM credentials, demanding context-aware detection.
Threat actors are weaponizing the Volume Shadow Copy Service (VSS) for two purposes: destroying local recovery points via vssadmin.exe, wmic.exe, diskshadow.exe, wbadmin.exe, and bcdedit.exe before encryption, and accessing static copies of locked files such as NTDS.dit and SAM for credential theft. Ransomware families tied to shadow-copy removal include Akira, Black Basta, BlackCat, Conti, LockBit, Qilin, RansomHub, REvil, Ryuk, and WannaCry. Huntress's analysis of the Nightmare-Eclipse tool showed the BlueHammer technique chaining a Windows Defender timing issue with a VSS snapshot to dump the SAM database and decrypt NT hashes. Defenders should correlate VSS operations with parent process, hive access, and subsequent encryption activity, and maintain immutable off-host backups.
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Hackers Steal Active Directory Password Hashes Without Attacking Domain Controllers Directly
Attackers use the DCSync technique to impersonate domain controllers and harvest AD password hashes and Kerberos keys without directly compromising domain controllers, Trellix warns.
Per Trellix, threat actors increasingly abuse Active Directory replication via DCSync, using privileged credentials to invoke DRSGetNCChanges and retrieve NTLM password hashes and Kerberos key material without running code on domain controllers. Capturing the krbtgt account hash enables forging Golden Tickets for persistent, highly privileged domain access. Because malicious replication traffic mimics legitimate DRS/RPC activity, defenders should monitor Windows Security Event ID 4662, restrict replication permissions, and investigate replication requests from non-domain-controller systems.
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Hackers Use LLMs to Generate Exploit Scripts and Automate Post-Exploitation Across Latin America
Unit 42 says Latin American attackers used LLMs to automate post-exploitation in campaigns hitting Mexican government, water utilities, and Brazilian financial firms.
Unit 42 identified two campaigns in Latin America whose operators used commercial LLMs (Claude, GPT-4.1) behind a self-hosted NextChat interface to generate and debug post-exploitation scripts. Cluster CL-CRI-1131 compromised a transportation organization, Mexican federal ministries, and water utilities in Mexico and Ecuador, using native Windows tools and Volume Shadow Copies to dump the SAM registry hive and NTDS.dit. Cluster CL-CRI-1163 targeted Brazilian financial organizations with job-themed phishing, custom RATs, and a Go-based reverse SOCKS5 tunneling utility called SockTz, with nine versions deployed within roughly two hours. Trend Micro tracks related AI-augmented activity as SHADOW-AETHER-040 and SHADOW-AETHER-064.
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Storm-1175 Replaces Medusa With New StormEncryptor Ransomware
Microsoft reports China-linked ransomware group Storm-1175 switched from Medusa to a new C++ strain, StormEncryptor, likely exploiting N-able flaw CVE-2026-18577.
Microsoft Threat Intelligence reports that the financially motivated, China-linked group Storm-1175 began deploying a new ransomware strain called StormEncryptor on August 2, 2026, replacing its previous Medusa ransomware. StormEncryptor is written in C++, appends the .encrypted extension to files, and drops a !!!README_FIRST!!!.txt ransom note in each scanned directory. Microsoft assesses the group is likely exploiting CVE-2026-18577, an authentication bypass in N-able disclosed on August 2, 2026 and added to CISA's Known Exploited Vulnerabilities catalog the next day. Since 2023, Storm-1175 has exploited more than 16 vulnerabilities in products including Microsoft Exchange, Ivanti, ConnectWise ScreenConnect, JetBrains TeamCity, SimpleHelp, CrushFTP, and GoAnywhere MFT, often moving from initial access to data theft and ransomware deployment within days.
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Hackers Disable Endpoint Protection and Deploy Sliver Across Compromised Windows Domain
The Hunter's Ledger tracked campaign UTA-2026-024 using Sliver C2, Domain Admin account creation, and Ethereum-based C2 rotation to compromise a US organization's Windows domain.
The Hunter's Ledger tracked an intrusion at one unnamed US organization as UTA-2026-024, staged from exposed server 193.233.202.17 with a Sliver beacon. Operators created a non-expiring Domain Admin account, enabled RDP with NLA disabled, dumped SAM, SYSTEM and SECURITY hives plus LSASS memory, and disabled eight endpoint protection services. A Node.js implant resolved its C2 server from an Ethereum smart contract that rotated domains five times in five months, while SYSTEM scheduled tasks with backdated dates and DNS allowlist manipulation provided persistence. The infrastructure ties to a confirmed ransomware incident, but no encryptor deployment was proven in this intrusion.
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Infostealer Logs Expose Replayable AI Tokens That Can Bypass MFA
Okta finds infostealer logs contain thousands of replayable AI session tokens and API keys, letting criminals bypass MFA and access services from Google, Anthropic and OpenAI.
Okta analyzed a 7 GB infostealer dump from August 2, 2026 covering 5,871 infected machines in 162 countries and found 555 of 44,791 JWTs related to AI services, plus 1,843 unexpired JWTs and JWEs (largely set by OpenAI via NextAuth.js) and 24 still-valid API keys for Google Gemini, OpenAI, Groq and OpenRouter. Valid session tokens and API keys can be replayed with anti-detect browsers like Camoufox to bypass credential and MFA checks, fueling an underground market for AI account access known as LLMjacking, where attackers rack up victims' AI compute bills. Some 17.7% of the JWTs contained plaintext PII usable for social engineering. Google's GTIG reported growing buyer demand for Claude, Gemini, Cursor and Devin credentials, and Mandiant handled an incident where an actor used an exposed GitHub PAT to deploy unauthorized AI infrastructure and scale high-performance compute.
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