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Anthropic Says Seven China-Based AI Labs Ran Industrial-Scale Claude Distillation Attacks

Anthropic disrupted industrial-scale unauthorized Claude distillation by seven China-based AI labs, including Alibaba, DeepSeek, Moonshot, and Z.ai.

Anthropic identified and disrupted six illicit distillation campaigns since February 2026 run by seven China-based labs: Alibaba, Moonshot, DeepSeek, Z.ai (Zhipu), MiniMax, Xiaomi, and SenseTime. The largest, GTG-16005, involved 151 million exchanges targeting Claude Opus 4.6/4.7 chain-of-thought transcripts, peaking at roughly 3 million exchanges per day from more than 3,500 fraudulent accounts. Labs used proxy/relay services with fictitious identities, fake or stolen credit cards, harvested API keys, and purchased conversation transcripts from third-party resellers. Anthropic is countering by banning reseller accounts, summarizing internal reasoning before responding, and introducing preserved thinking in Fable 5.1, which encrypts reasoning and prevents context edits before it.

Weekly Cybersecurity Newsletter Bulletin – Microsoft 0-day, FortiOS, PAN-OS Flaw, Revolut Data Breach, and 20+ Stories

Weekly roundup: Microsoft patches 973 flaws including two actively exploited zero-days; FortiOS CAPWAP flaw deploys PivotC2 RAT; PAN-OS root RCE disclosed.

Microsoft's September 2026 Patch Tuesday fixed 973 vulnerabilities, including two zero-days under active exploitation: CVE-2026-85880 (Windows ALPC) and CVE-2026-81963 (Windows Update Stack), both elevation-of-privilege bugs. SOCRadar reported active exploitation of CVE-2025-25249 (CVSS 9.8) in FortiOS CAPWAP, deploying a Node.js RAT called PivotC2 that exfiltrates Exchange mailboxes to Wasabi cloud storage; 178 devices were compromised out of 30,000 scanned IPs, attributed to a Russian-speaking financially motivated group. Palo Alto disclosed CVE-2026-0310, a 9.2-rated buffer overflow enabling root code execution on PA-Series firewalls, and Fortinet disclosed CVE-2026-84393, a ZTNA certificate validation MITM flaw. Cyera also revealed CVE-2026-6471 ('PostGREShell'), a 12-year-old PostgreSQL logical-decoding flaw allowing code execution via REPLICATION-privileged accounts.

Anthropic Says Russian Hackers Used Claude AI to Automate Malware Evasion

Anthropic disrupted Midnight Blizzard campaigns where AI agents automatically rebuilt malware to evade detection, targeting 20+ government and defense organizations.

Anthropic's threat intelligence report documents the Russian state-nexus actor Midnight Blizzard using Claude to automatically monitor, modify, and redeploy malware until it evaded security products. The campaign hit more than 20 organizations, including Ukrainian and European government ministries, defense bodies, embassies, and think tanks, with mailbox theft from two drone component manufacturers and compromise of hotel guest Wi-Fi via DNS hijacking. The report also describes financially motivated groups GTG-50020 and GTG-50021 targeting AI credentials, including a prompt-injection attack on an automated evaluation sandbox that yielded production API keys and attempts to reach a pre-release Claude model across roughly 30 AI companies.

SecurityWeekupdated · 10h agofirst · 5d agoThreat actor in the wild 18 sources4