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Chinese AI firms are siphoning capabilities from American models, CISA warns

CISA, NSA and FBI warn Chinese AI firms including DeepSeek and Moonshot AI extracted billions of tokens from US frontier models via distillation campaigns.

A joint CISA, NSA and FBI advisory says China-based firms including DeepSeek, Moonshot AI, Alibaba, MiniMax, StepFun and Z.AI have run industrial-scale knowledge distillation campaigns against US frontier models such as Claude, GPT, Gemini and Grok since at least late 2024, likely with Chinese government knowledge. The campaigns used gray-market API proxies called transfer stations, premium account pools and traffic routing to bypass restrictions, evade safeguards and exfiltrate billions of tokens used to train models like DeepSeek R1/V3 and Kimi. The agencies challenge DeepSeek's reported $5.6 million training cost and recommend identity verification, usage monitoring, response variation, differential privacy and indicator sharing as defenses.

Help Net Security · 7d agoAdvisory in the wild1

Threat actors are coming for your AI assets to operationalize their use of AI

Google GTIG reports espionage and crime groups stealing AI models, prompts, and API credentials, plus distillation campaigns and agentic AI attack automation.

Google Threat Intelligence Group's quarterly AI Threat Tracker reports adversaries stealing proprietary models, source code, prompts, and API credentials from government, healthcare, and media targets, including China-based UNC6508 compromising clouds to run unauthorized LLM workloads. Distillation campaigns against Google's models exceeded 100 million prompts launched via thousands of stolen account credentials through proxy networks. Mandiant also observed a financially motivated actor deploy an autonomous multi-agent framework that harvested thousands of third-party credentials in under 6 hours, and a 'Recon' framework on a live C2 server managing over 23,000 stolen credentials including cloud and AI API keys.

CSO Online · 1d agoThreat actor in the wild

US says Chinese firms extracted billions of tokens from frontier AI models

CISA, NSA, and FBI say six Chinese AI firms including DeepSeek industrial-scale distilled Anthropic, OpenAI, Google, and xAI frontier models.

A joint CISA, NSA, and FBI advisory accuses DeepSeek, Moonshot AI, Alibaba, MiniMax, StepFun, and Z.AI of extracting billions of tokens from frontier models via millions of API requests since late 2024. The agencies assess the operations likely had Chinese government awareness and represent a core development strategy. Tactics included fraudulent shared accounts, provider failover, proxy routing, and chain-of-thought extraction across Claude, GPT, Gemini, and Grok models.

BleepingComputerupdated · 6d agofirst · 6d agoAI safety & security in the wild 4 sources

AI lets small actors run state-level hacking campaigns, Anthropic report finds

Anthropic's threat report finds AI let a Russian-aligned espionage campaign, a Chinese student-run exploit foundry and ShinyHunters operators run state-grade operations.

Anthropic's report covering December 2025 to August 2026 details a Russian-aligned espionage campaign by actor 'JackPoterz' — matching Midnight Blizzard behaviors — against more than 20 government and defense organizations across Ukraine and Europe, with AI agents autonomously rebuilding Windows implants to evade detections. Chinese undergraduates ran an automated vulnerability-research foundry using Claude agent swarms, yielding more than a dozen potential zero-days in one month. ShinyHunters-affiliated operators used AI to dump over 2,100 Azure access tokens across 40 corporate tenants in 34 hours. Seven Chinese labs including Alibaba, DeepSeek, Moonshot AI, Xiaomi and Zhipu distilled Claude outputs; Alibaba peaked at nearly 3 million exchanges per day from more than 3,500 fraudulent accounts to train its Qwen systems.

CyberScoopupdated · 4d agofirst · 5d agoThreat actor in the wild 15 sources2· 1 read

Hackers build AI frameworks for widescale credential theft

Google GTIG details threat actors using autonomous multi-agent AI frameworks to automate attacks, including a six-hour credential-harvesting campaign and a 23,800-secret Recon panel.

Google Threat Intelligence Group (GTIG), drawing on Mandiant telemetry, reports threat actors are moving from AI coding assistants to autonomous multi-agent frameworks that automate vulnerability scanning, credential harvesting, troubleshooting, and IP rotation. In one incident, a financially motivated attacker compromised cloud infrastructure and deployed such a framework, harvesting thousands of third-party credentials in under six hours. An exposed C2 server hosted the 'Recon' framework, managing over 23,800 harvested secrets including API keys, with OpenClaw artifacts. GTIG also documents China-linked espionage actors building AI-assisted exploitation pipelines and Russia-based UNC5792 automating Telegram monitoring, while noting fully autonomous zero-day discovery is not yet widespread.

BleepingComputer · 8d agoThreat actor1