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US Agencies Warn Chinese AI Firms Are Extracting Advanced AI Models

NSA, CISA, and FBI accuse six Chinese AI firms including DeepSeek and Alibaba of industrial-scale distillation of US frontier models.

A joint NSA, CISA, and FBI advisory alleges DeepSeek, Moonshot AI, Alibaba, MiniMax, StepFun, and Z.AI extracted billions of tokens across millions of requests from US frontier models including Claude, GPT, Gemini, and Grok since at least late 2024. DeepSeek reportedly ran an organized campaign against Claude, GPT, and Gemini between late 2024 and mid-2025 that aided R1 and V3 development, including chain-of-thought reasoning extraction. Reported techniques included shared premium accounts, gray-market proxy 'transfer stations,' automated failover, and prompt injection that made Claude Code believe it was a MiniMax product. The advisory recommends detection signals such as 24/7 multi-IP account usage and covertly serving degraded responses to suspected distillers.

Security Affairsupdated · 6d agofirst · 6d agoAI safety & security in the wild 3 sources1

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

GTIG AI Threat Tracker: From Prompting to Autonomy – The Evolution of Adversarial AI

GTIG's Q2 2026 tracker shows adversaries adopting agentic AI workflows, including credential harvesting in under six hours and supply chain attacks by UNC6780.

Google Threat Intelligence Group's Q2 2026 report documents adversaries moving from basic prompting to agentic AI workflows and automation, including a cloud compromise followed by agent-enabled mass credential harvesting executed in under six hours. It tracks financially motivated actor UNC6780 (TeamPCP) conducting large-scale open source supply chain compromises across PyPI, npm, and Docker Hub since March 2026, deploying credential stealers. The report also highlights growing targeting of proprietary AI models, source code, prompts, and API credentials, plus LLMJacking practices where adversaries steal developer credentials or hijack cloud infrastructure to run unauthorized AI workloads.

Google Threat Intelligence · 8d agoThreat actor in the wild1

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.

Palo Alto Unit 42 · 13d agoThreat actor in the wild1

China-Based Artificial Intelligence Companies Conducting Industrial-Scale Distillation Campaigns Against U.S. AI Companies

NSA, CISA, and FBI warn DeepSeek, Alibaba, and other Chinese AI firms ran industrial-scale distillation of U.S. frontier models, threatening U.S. AI leadership.

A joint NSA, CISA, and FBI Cybersecurity Advisory (AA26-251A) says China-based firms DeepSeek, Moonshot AI, Alibaba, MiniMax, StepFun, and Z.AI extracted billions of tokens from U.S. frontier models including Claude, GPT, Gemini, and Grok, likely with Chinese government knowledge. Campaigns running since at least late 2024 used native APIs, cloud providers, third-party aggregators, gray-market proxy "transfer stations", and shared premium subscriptions to bypass geographic restrictions, evade safeguards, and violate providers' terms of use. The agencies recommend detecting anomalous prompts, accounts, and usage patterns; subtly altering responses to suspected distillers; and cross-organization intelligence sharing. They also call DeepSeek's publicly cited $5.6M training cost misleading because it excludes data acquired through distillation.

CISA Advisories · 8d agoAdvisory in the wild1

AI Coding Tools Now a Prime Target for Threat Actors, Google Warns

Google Threat Intelligence Group warns threat actors increasingly target AI coding tools and proprietary AI data, with UNC6780's Dustmaker enabling large-scale supply chain compromises.

Google Threat Intelligence Group's September 8 report says AI-assisted coding tools have become prime targets, contributing to large-scale software supply chain compromises in 2025 and early 2026. Financially motivated group UNC6780 used its Dustmaker credential stealer to extract tokens from GitHub Actions runner memory and compromise packages across PyPI, npm, and Docker Hub, then sold harvested AI tool credentials to other criminals. Chinese nation-state actor UNC6508 conducted espionage against proprietary AI research at North American academic, medical, and military institutions, while extortion gangs stole models, prompts, and source code in Q2 2026. GTIG also documented agentic attacker experimentation, including an autonomous multi-agent credential harvesting campaign built in under six hours and a 'Recon' C2 framework managing over 23,800 harvested secrets.

Infosecurity Magazine · 8d agoThreat actor in the wild 2 sources1

Hackers abused Claude to extract secrets from 1.8M Android apps

Anthropic reports ShinyHunters, Midnight Blizzard, and GTG-10007 misused Claude to automate credential theft, malware operations, and espionage against dozens of victims.

Anthropic's threat report details how ShinyHunters member 'frkoo' ran a credential-harvesting pipeline on ten AWS EC2 workers that mass-downloaded and decompiled 1.8 million Android APKs, scanning for hardcoded secrets with TruffleHog. In one AI-assisted operation, an actor extracted 2,100+ Azure AD authentication tokens across more than 40 Microsoft tenants in roughly 34 hours, and ShinyHunters affiliates also stole AI API keys and breached a SaaS provider affecting about 200 downstream customers. Russian espionage group Midnight Blizzard used Claude Code skills to automate malware development, phishing, C2, and exfiltration against 20+ government and defense entities, rebuilding malware automatically when detected. Chinese-linked GTG-10007 ran autonomous vulnerability research that uncovered zero-days in a major endpoint security product and hit roughly 50 organizations with confirmed compromises; Anthropic disrupted the abuse and banned the accounts.

BleepingComputerupdated · 4d agofirst · 4d agoThreat actor in the wild 15 sources1

BambooToken Malware Uses MQTT to Control Windows and Linux Systems

Lumen uncovers BambooToken, a stealthy multi-platform malware using MQTT C2 and Tendyron DLL sideloading to compromise Asian and South American organizations.

Lumen Black Lotus Labs disclosed BambooToken, a previously undocumented malware family active since at least February 2023 that controls Windows and (since December 2025) Linux hosts via the MQTT protocol for C2. The malware sideloads a rogue OnKeyToken_KEB.dll via Tendyron's OnKey PKI token software, gathers host details, and uses a WMI-based plugin to enumerate installed antivirus products and exfiltrate them to C2 domains proxied through Cloudflare. A dozen compromised entities were detected across Asia and South America, and DLL sideloading plus SoftEther VPN usage suggests a China nexus.

The Hacker News · 1d agoMalware in the wild 2 sources

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.

GBHackersupdated · 6d agofirst · 6d agoThreat actor in the wild 2 sources1