Anthropic caught Russia-linked spies using Claude in hacking operations
Anthropic disrupted Russia-linked APT29 using Claude in espionage against 20+ organizations, including Ukrainian government targets and a military drone maker whose vision SDK was stolen.
Anthropic's threat report covering December 2025 to August 2026 attributes the campaign to Midnight Blizzard (APT29/Cozy Bear, Storm-2945), which it links to Russia's SVR. The group compromised hotel Wi-Fi providers, altered DNS records to redirect travelers, accessed mailboxes at two drone-component manufacturers, and stole a proprietary SDK for a drone vision system, which it reverse-engineered using Claude. The group also used Claude to monitor whether security products detected its implants and to modify and redeploy flagged artifacts. The report also covers ShinyHunters affiliates using AI for credential scanning and extortion, a Chinese-speaking group's autonomous zero-day research, and a French-speaking hacktivist.
How hackers used Claude for missiles, drone swarms, and surveillance, while Chinese labs mined it for training data
Anthropic's threat report details eight months of Claude misuse: AI-assisted espionage against 20+ organizations, self-rewriting malware, and Chinese labs distilling Claude via fraudulent accounts.
Anthropic's threat intelligence report covering December 2025 through August 2026 documents Claude misuse across seven categories including cyber operations, surveillance, fraud, and unauthorized model distillation. A Russian-speaking espionage actor tracked as GTG-20006 used AI agents to rewrite and recompile malware evading antivirus detection, targeting more than 20 organizations in Ukraine and Europe and stealing a drone vision system SDK. Alibaba's Qwen lab ran the largest distillation campaign, with over 151 million exchanges between May and July 2026 peaking near 3 million per day to train Qwen 3.5, 3.6, and 3.7. DeepSeek, Moonshot AI, Xiaomi, and Zhipu also relayed customer or replayed traffic to Claude, including PLA-linked users analyzing CCTV footage and users with credentials tied to the Russian Ministry of Defense.
New Italian unicorn Exein rides the physical AI wave
Italian IoT-security startup Exein raised $270 million at a $1.7 billion valuation to build a security layer for physical AI and edge devices.
Rome-based Exein raised a $270 million round led by Headline at a $1.7 billion valuation, becoming Italy's new unicorn, with plans for M&A and US/APAC expansion. The company claims over 2 billion connected devices secured across aerospace, industrial automation, automotive, energy, healthcare, and semiconductors using its Photon kernel-level runtime protection. Exein is training a foundational model for physical AI security on machine telemetry, targeted for Q1 2027, and reports 400% year-on-year growth. The EU Cyber Resilience Act, whose reporting obligations began last week, is expected to further boost demand.
Germany moves to give spy agencies hacking and sabotage powers
Germany's cabinet approved a 732-page bill granting BND and BfV intelligence agencies new hacking, sabotage, and disinformation powers pending parliamentary approval.
Germany's cabinet approved draft legislation that would give the foreign intelligence service BND and domestic agency BfV active operational powers, including hacking foreign systems, sabotaging supply chains with faulty components, disabling servers of hostile state-sponsored hackers, and feeding false information to extremists inside Germany. The 732-page bill, the largest overhaul of postwar German spy laws, requires telecom carriers and digital providers to assist the agencies, bars measures endangering life, and imposes new statutory controls on how agencies use AI analysis, including judge-supervised spot checks of machine-generated outputs. The reforms stem from a Federal Constitutional Court ruling on surveillance proportionality and are expected to pass parliament, with the government aiming for the law to take effect next year; civil liberties groups plan to challenge it.
The push to designate AI as the next critical infrastructure sector
Americans for Responsible Innovation report urges designating AI models, companies and supporting infrastructure as critical infrastructure with CISA as sector lead.
A report from the nonprofit Americans for Responsible Innovation calls for the federal government to declare the AI sector — including frontier model designs, model weights, datacenters, AI hardware and semiconductors — the 17th critical infrastructure sector, with CISA as the lead agency for sector cyberthreats. The authors argue AI is concentrated among a handful of foundation models and interdependent with other sectors, so a single attack on the AI stack could cascade widely, citing incidents like Iranian drone attacks on Amazon datacenters. Former DHS officials note the designation would unlock federal resources such as CDM access and threat intelligence, but warn that picking a lead agency could trigger a bureaucratic turf war with Commerce and Treasury.