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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

Infostealers Are Hijacking Claude Sessions and Draining Subscriptions

Infostealers hijacked active Claude sessions to bypass 2FA, drain paid usage and run unauthorized charges; Anthropic is revoking sessions and refunding.

Anthropic confirmed that infostealer malware on user machines stole active Claude login sessions, letting attackers bypass passwords, MFA, and SSO and drain paid usage and run unauthorized charges. Affected families identified on Windows include Vidar, LummaC2, StealC, RedLine, and Acreed, plus Atomic Stealer on a small number of Macs; the malware typically arrived via unofficial downloads or malicious apps. Anthropic signed users out, removed saved payment cards, revoked affected sessions, and is refunding unauthorized charges, noting phones and tablets were not involved.

Security Affairs · 16d agoMalware in the wild

Phishing Attacks Abuse Trusted Email Infrastructure and URL Cloaking to Evade Security Filters

VBSpam Q3 2026 test shows phishers abusing DKIM-aligned domains, Amazon SES, and multi-stage URL cloaking to defeat email filters.

Virus Bulletin's Q3 2026 VBSpam test (AMTSO-LS1-TP207) found phishing campaigns moving payloads past the email itself via browser-fingerprinting gates, redirect chains, and hidden POST requests. Examples include a Dutch McAfee/TotalAV scareware renewal scam, a German overdue-payment Web3 fraud delivered via Amazon SES from DKIM-aligned moolaah.com, and Romanian BCR PSD2 credential phishing embedding IPv6-mapped URLs resolving to 103.193.179.223. Net at Work NoSpamProxy ranked first with a 99.995 score while open-source Rspamd caught only 62.55% of phishing mail.

GBHackers · 1d agoPhishing & fraud in the wild 2 sources

Six Chinese AI firms accused of aggressively copying US frontier models

NSA, CISA, and FBI accuse DeepSeek, Moonshot AI, Alibaba, MiniMax, StepFun, and Z.AI of industrial-scale distillation of US frontier models via API abuse.

A joint NSA, CISA, and FBI release alleges six Chinese AI firms have extracted capabilities from US frontier models, including Claude, GPT, Gemini, and Grok, since at least late 2024, likely with Chinese government awareness. Tactics include bulk procurement of premium subscriptions with fraudulent accounts, proxy routing to evade geo-restrictions, and prompt injection to force models to reveal hidden chain-of-thought reasoning. Agencies recommend stronger identity verification, monitoring of anomalous usage, and quietly downgrading or adding noise to responses for suspected distillers, while warning these mitigations could frustrate legitimate users.

Ars Technica · AI · 6d agoAI safety & security in the wild 4 sources

DeepSeek, Alibaba and Chinese AI Firms Extract Billions of Tokens From U.S. AI Models

NSA, CISA and FBI advisory AA26-251A accuses DeepSeek, Alibaba and four other Chinese AI firms of industrial-scale distillation of US frontier models.

Joint advisory AA26-251A from NSA, CISA and FBI accuses DeepSeek, Alibaba, Moonshot AI, MiniMax, StepFun and Z.AI of extracting billions of tokens from Claude, GPT, Gemini and Grok variants since at least late 2024, likely with Chinese government awareness. Campaigns allegedly used API proxy 'transfer stations', account pools, metadata sanitization and prompt injection to harvest reasoning, coding, agentic and reinforcement-learning capabilities, with techniques mapped to MITRE ATLAS. DeepSeek's R1 and V3 and Alibaba's Qwen families reportedly trained on harvested outputs, and DeepSeek's $5.6 million training-cost claim is disputed as excluding distilled data value. Agencies urge anomaly monitoring, output alteration for suspected extractors, and intelligence sharing across vendors, clouds and aggregators.

GBHackers · 7d agoAI safety & security in the wild1· 1 read

The Self-Expanding Stolen Inference Supply Chain: An AI Agent Harvesting and Re-Serving LLM Access, (Fri, Sep 11th)

An autonomous coding agent harvested LLM API access from poorly secured gateways and aggregated stolen inference capacity behind a self-hosted gateway

A SANS researcher observed a semi-autonomous coding agent finding weakly secured LLM resale gateways via FOFA queries, creating trial accounts with temporary emails and CAPTCHA solving, and exploiting weak authorization such as client-supplied group_id fields. The agent validated stolen keys using factorial code-logic tests, then loaded roughly 379 upstream endpoints into a self-hosted New-API gateway, disabling 341 fake or dead channels. Five model names including claude-opus-5 and gpt-5.6-sol were served via round-robin and failover, forming a partially self-expanding inference supply chain resembling an evolution of LLMjacking.

SANS Internet Storm Center · 5d agoThreat actor in the wild

Hackers Use AI-Assisted CEO Emails to Trick Finance Teams Into Sending $50,000 Payments.

Microsoft tracked a million-message AI-assisted BEC campaign impersonating executives with fake ServiceNow invoices to steal ~$50,000 ACH payments.

Microsoft detected over one million messages in a BEC campaign running August 3-5, using AI-assisted phishing templates, executive impersonation, and fabricated ServiceNow subscription invoices to trick finance teams into authorizing fraudulent ACH payments of roughly $50,000. The US received 87.7% of volume. Attackers used lookalike domains like service-nowinc[.]com registered just days before delivery, with no compromise of ServiceNow itself. Telltale signs included verbose HTML comments, uniform formatting, and inconsistent forwarded-message headers.

GBHackersupdated · 5d agofirst · 5d agoPhishing & fraud in the wild 2 sources

CISA Warns Chinese AI Firms Extract Billions of Tokens From Claude, GPT, Gemini and Grok

CISA, NSA and FBI advisory says six Chinese AI firms extracted billions of tokens from Claude, GPT, Gemini and Grok via API proxies since late 2024.

A joint advisory from CISA, NSA and FBI alleges China-based AI companies including DeepSeek, Moonshot AI, Alibaba, MiniMax, StepFun and Z.AI harvested billions of tokens across millions of exchanges from Claude, GPT, Gemini and Grok variants since late 2024. Operators allegedly used API proxy 'transfer stations', account pools, bulk premium subscriptions and prompt injection or jailbreak-style requests to force models to reveal chain-of-thought reasoning. DeepSeek's R1 and V3 and Moonshot's Kimi-K2 and Kimi-K3 models reportedly benefited from the extracted data. CISA urged providers to add identity checks, monitor subscription-to-usage ratios, rate limit, and share infrastructure signals with cloud platforms.

Cyber Security News · 7d agoAI safety & security in the wild

Hackers are stealing Claude tokens from subscribers

Infostealer malware is stealing Claude login sessions, letting attackers mint OAuth tokens and burn subscribers' paid usage largely undetected.

Anthropic confirmed a bad actor used common infostealer malware to steal Claude login sessions from users' computers and consume their paid usage. A UK consultant saw idle token usage climb, and Anthropic suspended his account, invalidated sessions and Claude Code tokens, and issued a £44.49 partial refund on his $200-per-month plan. Multiple other users on Reddit and GitHub reported similar theft; Anthropic signed out affected users and issued refunds, but still lacks itemized usage reporting to help users detect misuse.

TechCrunch · AI · 7d agoAI safety & security in the wild1

Home & Small Office Wireless Routers Exploited to Attack Gaming Servers

Unit 42 details an updated Gafgyt botnet variant exploiting Zyxel, Huawei, and Realtek router vulnerabilities to recruit devices for DoS attacks on gaming servers.

Unit 42 researchers identified an updated Gafgyt variant derived from the JenX botnet that combines three remote code execution exploits: CVE-2017-18368 (Zyxel P660HN-T1A), CVE-2017-17215 (Huawei HG532), and CVE-2014-8361 (Realtek RTL81XX chipset). Shodan scans show more than 32,000 wireless routers worldwide potentially vulnerable to these exploits. The exploits act as droppers, pulling architecture-specific binaries from a malicious server (185.172.110.224), and the botnet performs denial-of-service attacks against gaming servers, most notably Valve Source engine servers.

ApateWeb: An Evasive Large-Scale Scareware and PUP Delivery Campaign

Unit 42 uncovers ApateWeb, a campaign using over 130,000 domains and multilayered redirects to deliver scareware, adware and PUPs to millions of users.

Unit 42 discovered ApateWeb, a large-scale campaign using a network of more than 130,000 domains to deliver scareware, potentially unwanted programs, adware including a rogue browser and browser extensions, and scam pages. The campaign uses a three-layer structure with deceptive emails as the entry point, centralized victim tracking via UUIDs, intermediate adware or anti-bot redirections, and evasion tactics such as cloaking, bot detection error pages, and wildcard DNS abuse. Activity spiked since August 2022, with several hundred attacker-controlled sites remaining in Tranco's top 1 million rankings and millions of monthly hits; Unit 42 blocked an estimated 3.5 million sessions across 74,711 devices in November 2023.

Palo Alto Unit 42 · Aug 17, 2026Phishing & fraud in the wild

Chess.com Leak Exposes 7.3 Million Users — Evidence Points to Scraping

A free 15.5 GB leak exposed 7.3 million Chess.com user records; analysis suggests large-scale scraping via find-friends rather than a server breach.

A 15.5 GB dump containing 7,337,395 Chess.com records appeared on leak forums posted by user V0idix at no cost. Ransomnews confirmed the data is genuine by validating embedded v1 UUID timestamps against registration dates, but found daily-batch collection over nine days and ~7.4% duplicate records, pointing to scraping. The schema includes emails, ratings, subscription tiers and internal Google Ad Manager audience segments not exposed in the public API, and contains no passwords or payment data. Chess.com reported a similar 828,000-record 2023 leak from find-friends abuse and said then that it was not a breach.

Security Affairs · Aug 14, 2026Data breach in the wild

Hackers Can Rent VectraRAT for $250 a Month to Take Control of Windows PCs

SOCRadar uncovered VectraRAT, a previously undocumented $250-per-month Windows RAT rental service delivered via Amadey and ClickFix lures.

SOCRadar's Threat Research Unit identified VectraRAT, a rental-only remote access trojan sold by a developer known as Vectra (formerly Nyxel), after an exposed online directory revealed samples, licenses, and operator logs across ten-plus servers. The toolkit includes a Linux control server, Windows implant, payload builder, and VectraHub panel, enabling hidden desktop access, keylogging, command execution, credential theft, file transfer, proxying, and silent privilege escalation. Of victims with OS data, 48 percent ran corporate Windows editions, and researchers recorded 38 genuine victim sessions in under a week, including file theft from business systems. Distribution occurs through the Amadey loader and ClickFix pages impersonating TurboTax, with custom TCP-based C2 over non-standard ports.

Cyber Security News · 1h agoMalware in the wild 3 sources

US Agencies Warn China Is Systematically Extracting Frontier AI Capabilities

NSA, CISA and FBI warn Chinese AI firms including DeepSeek and Moonshot systematically extracted billions of tokens from US frontier models since late 2024.

The NSA, CISA, and FBI report that China-based AI companies including DeepSeek, Moonshot AI, Alibaba, MiniMax, StepFun, and Z.AI extracted billions of tokens from US frontier models such as Claude, GPT-4/GPT-5, Gemini, and Grok 4 since late 2024. The distillation trained DeepSeek's R1 and V3 and Moonshot's Kimi-K2/K3 models, and the agencies mapped the tactics to MITRE ATLAS while noting additional novel techniques like subscription exploitation and request metadata sanitization. They describe the activity as a strategic economic threat to US technological leadership and recommend behavioral detection, differential privacy, and targeted cost-imposing responses.

SecurityWeek · 7d agoAI safety & security in the wild1

Infostealers Target Claude, Cursor, Codex and Other AI Agents to Steal Credentials and Sensitive Data

Gen Digital researchers report infostealer families Amatera, Remus and CallbackBeaver now harvest Claude, Cursor and Codex agent data, including tokens and MCP configs.

Gen Digital researchers found commodity infostealers extending their collection rules to local AI coding agent data from Claude, Cursor, Codex, Cline, Continue and OpenCode on Windows and macOS. Amatera targets Cline and Continue, Remus targets Claude, Cursor and OpenCode, and CallbackBeaver added Claude and Cursor with more than 5,000 samples observed in 30 days; Djinn Stealer hits Claude, Codex, Gemini, Cline, OpenCode and Kilo on macOS. Stolen data includes access and refresh tokens, prompt histories, conversation databases and MCP configurations holding API keys, potentially exposing connected source-control, cloud and ticketing systems. Remus is assessed as a Lumma Stealer variant using EtherHiding C2 resolution via Ethereum smart contracts.

GBHackers · 7d agoMalware in the wild1

Week in review: Records allegedly stolen from Azure tenants, Medusa ransomware hits 500+ orgs

Week in review: Medusa ransomware hit 500+ orgs per CISA, millions of Azure tenant records allegedly stolen, SafePal and French tax authority breaches disclosed.

Help Net Security's weekly roundup covers the FBI, CISA, and HHS joint advisory update reporting Medusa ransomware has breached more than 500 organizations since June 2021, and threat actor TheHatman's claim of millions of employee records stolen from Azure tenants of Fortune 500 firms including McDonald's, Vodafone, Kyndryl, and Tata Consultancy Services, per Hudson Rock. It also covers the SafePal breach affecting 39,798 customers, France's DGFiP breach exposing data on 678,000 individuals, and UT San delaying its fall semester after a cyberattack. Security items include critical unauthenticated GitLab flaw CVE-2026-19478, an actively exploited patched macOS Screen Sharing flaw deploying a cryptominer, US charges against 17 Mabna Institute Iranian hackers over 31TB of stolen academic data, and Google Mandiant's AI agents finding 100+ high-severity vulnerabilities.

Help Net Security · 24d agoData breach in the wildCVE-2026-19478

Mirai Variant MooBot Targeting D

Unit 42 observed the MooBot Mirai variant exploiting four D-Link vulnerabilities to compromise unpatched routers for use in DDoS attacks.

Unit 42 captured attacks exploiting four D-Link remote code execution vulnerabilities: CVE-2015-2051, CVE-2018-6530, CVE-2022-26258, and CVE-2022-28958, with three rated critical at CVSS 9.8. The exploits download the MooBot malware, a Mirai botnet variant, from infrastructure at 159.203.15.179 via wget. Compromised devices fall under full attacker control and can be used for distributed denial-of-service attacks. D-Link has published bulletins for all four flaws, but unpatched devices remain exposed.

Palo Alto Unit 42 · Aug 17, 2026Malware in the wildCVE-2015-2051CVE-2018-6530CVE-2022-26258+1 CVEs

Mirai Variant V3G4 Targets IoT Devices

Unit 42 tracked the Mirai variant V3G4 exploiting 13 vulnerabilities across IoT devices and servers from July-December 2022 to build a DDoS botnet.

From July to December 2022, Unit 42 observed three campaigns spreading V3G4, a Mirai botnet variant, by exploiting 13 vulnerabilities, including CVE-2022-26134 in Atlassian Confluence and CVE-2019-15107 in Webmin. The campaigns shared the same C2 domains containing the string 8xl9, nearly identical shell script downloaders, and the same XOR keys, suggesting a single threat actor. The malware brute-forces telnet and SSH credentials, terminates rival botnet processes via a stop list, and receives DDoS commands from its C2. Compromised servers and networking devices are absorbed into the botnet for further attacks.

Palo Alto Unit 42 · Aug 17, 2026Malware in the wildCVE-2012-4869CVE-2014-9727CVE-2017-5173+6 CVEs

Old Wine in the New Bottle: Mirai Variant Targets Multiple IoT Devices

Unit 42 analyzed the Mirai IZ1H9 botnet variant exploiting Tenda, LB-Link, DCN and Zyxel flaws to build DDoS-capable IoT botnets.

Unit 42 observed the Mirai IZ1H9 variant on April 10, 2023, using a shell script downloader lb.sh from 163.123.143.126 to infect exposed Linux servers and networking devices. Campaigns running since November 2021 share infrastructure, near-identical bot functions and the XOR key 0xBAADF00D. The malware exploits CVE-2023-27076 (Tenda G103), CVE-2023-26801 (LB-Link), CVE-2023-26802 (DCN DCBI-Netlog-LAB) and a Zyxel RCE flaw. Compromised devices join a botnet used for DDoS attacks, and the downloader deletes logs and modifies iptables to block SSH, Telnet and HTTP recovery.

Palo Alto Unit 42 · Aug 17, 2026Malware in the wildCVE-2023-27076CVE-2023-26801CVE-2023-26802

IoT Under Siege: The Anatomy of the Latest Mirai Campaign Leveraging Multiple IoT Exploits

Unit 42 tracks a Mirai botnet campaign exploiting over 20 IoT vulnerabilities in routers, cameras and DVRs to build DDoS botnets since March 2023.

Since March 2023, Unit 42 has tracked threat actors exploiting more than 20 IoT vulnerabilities to spread a Mirai botnet variant, first seen downloading payloads from zvub.us on March 14, 2023. Exploited flaws span CVE-2023-1389 (TP-Link Archer), CVE-2022-30525 (Zyxel), CVE-2022-31499 (Nortek) and many router, camera and DVR bugs. The variant decrypts configuration strings with an XOR key derived from 0xDEADBEEF and lacks built-in credential brute forcing, so spreading relies on manual operator exploitation. Two campaigns observed since October 2022 share infrastructure and near-identical samples.

Palo Alto Unit 42 · Aug 17, 2026Malware in the wildCVE-2019-12725CVE-2019-17621CVE-2019-20500+13 CVEs1

Stately Taurus Activity in Southeast Asia Links to Bookworm Malware

Unit 42 links Stately Taurus APT activity in ASEAN region and Myanmar to the decade-old Bookworm malware family via infrastructure overlaps.

Unit 42 connected Stately Taurus (aka Mustang Panda) espionage activity targeting ASEAN-affiliated organizations and Myanmar to the Bookworm malware family, first published in 2015. Earlier attacks delivered the PubLoad stager via DLL sideloading, with a PubLoad variant communicating with C2 at 123.253.32[.]15 while mimicking Windows Update URLs. Three previously unreported loader samples from 2021-2022 used UUID-decoded shellcode loaded via heap allocation and API callbacks, ultimately decrypting and loading Bookworm DLLs. A ToneShell backdoor variant shared debug paths with Bookworm loaders, and the January 2024 CSIRT CTI post corroborated the Myanmar attacks.

Palo Alto Unit 42 · Aug 17, 2026Threat actor in the wild