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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 · 7d 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

Threat Assessment: Ryuk Ransomware

Unit 42 assesses Ryuk ransomware amid a CISA/FBI/HHS alert on threats to U.S. healthcare, including the UHS attack that disrupted hospital operations.

A joint CISA, FBI, and HHS alert on October 28, 2020 warned of an imminent threat to U.S. healthcare from operators deploying Trickbot and Ryuk ransomware. Universal Health Services reported a Ryuk attack that disrupted all U.S. UHS sites for weeks, with similar incidents at hospitals in Oregon and New York. Ryuk typically arrives after Trickbot or BazaLoader infections delivered via malicious email, and operators enumerate networks with PowerShell and WMI before encryption. The Trickbot Anchor_DNS module performs DNS tunneling for C2, using connectivity checks to benign domains like ipinfo.io and checkip.amazonaws.com.

Palo Alto Unit 42 · 29d agoRansomware 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 · 20h agoPhishing & fraud in the wild 2 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

Microsoft security advisory – September 2026 monthly rollup (AV26-896) – Update 1

Canada's Cyber Centre relays Microsoft's September 2026 rollup; CISA added exploited zero-days CVE-2026-85880 and CVE-2026-81963 to KEV.

Advisory AV26-896 from the Canadian Centre for Cyber Security summarizes Microsoft's September 2026 monthly security rollup, listing affected products across Windows, Office, .NET, Azure, Exchange and SQL Server. It notes Microsoft confirmed CVE-2026-81963 and CVE-2026-85880 have been exploited. On September 8, 2026, CISA added both CVEs to its Known Exploited Vulnerabilities catalog, and administrators are urged to apply the updates.

Canadian Centre for Cyber Security · 7d agoAdvisory in the wildCVE-2026-81963CVE-2026-858801

Condé Nast Data of 32.8 Million Users Offered for Sale After WIRED Leak

A 32.8 million-record Conde Nast user database is offered for $15,000 on a Russian cybercrime forum, extending December's WIRED leak with millions of unseen records.

A database of 32,815,767 Conde Nast user records went on sale on 7 September 2026 for $15,000 on a Russian-language forum, containing names, addresses, birth dates and phone numbers but no passwords or payment data. Ransomnews verified a 5,000-record sample as genuine account data collected between September and late October 2025, with roughly 30.5 million non-WIRED records never previously published. The listing matches the December 2025 WIRED leak of 2,366,576 records, claimed by an actor called 'Lovely' who said 40+ million records were stolen via IDOR and broken access controls. Conde Nast has not confirmed the breach; exposed data enables credible targeted phishing and fraud.

Security Affairs · 8d agoData breach in the wild

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 · 4d 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 · 4d 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

New Mirai Variant Targeting Network Security Devices

New Mirai botnet variant exploits nine vulnerabilities in SonicWall, D-Link, Netgear, and other devices, with attacks ongoing at publication.

Unit 42 observed attacks exploiting VisualDoor (SonicWall SSL-VPN), CVE-2020-25506 (D-Link DNS-320), CVE-2020-26919 (Netgear ProSAFE Plus), and other flaws, with infrastructure rotating across at least three IP addresses between February 16 and March 13, 2021. Payloads were updated hours after CVE-2021-27561 and CVE-2021-27562 (Yealink Device Management, unauthenticated root RCE) and later added CVE-2021-22502 (Micro Focus Operation Bridge Reporter) and CVE-2019-19356 (Netis WF2419). Successful exploitation invokes wget to fetch shell scripts that download Mirai binaries compiled for multiple architectures and brute-forcers, and attacks were still ongoing when reported.

Palo Alto Unit 42 · 27d agoExploit / PoC in the wildCVE-2020-25506CVE-2020-26919CVE-2019-19356+3 CVEs

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.

Palo Alto Unit 42 · 29d agoMalware in the wildCVE-2017-18368CVE-2017-17215CVE-2014-83611

Keys to the Kingdom: Erlang/OTP SSH Vulnerability Analysis and Exploits Observed in the Wild

Attackers actively exploit CVE-2025-32433, a CVSS 10.0 unauthenticated RCE in Erlang/OTP SSH, heavily targeting OT and critical infrastructure networks.

CVE-2025-32433 enables unauthenticated RCE in Erlang/OTP's SSH daemon via SSH connection protocol messages (codes >= 80) processed before authentication, affecting versions before OTP-27.3.3, OTP-26.2.5.11 and OTP-25.3.2.20. Unit 42 recorded a spike in exploitation between May 1-9, 2025, with 70% of detections on firewalls protecting OT networks, disproportionately affecting healthcare, agriculture, media and high technology. Observed payloads bind TCP-connected shells or launch Bash reverse shells to hosts like 146.103.40.203:6667, with randomized DNS lookups under dns.outbound.watchtowr.com indicating OAST-driven blind RCE validation.

Palo Alto Unit 42 · 29d agoExploit / PoC in the wildCVE-2025-32433

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 · 29d agoPhishing & fraud in the wild

Automatically Detecting DNS Hijacking in Passive DNS

Unit 42's machine learning pipeline detected 6,729 DNS hijacking events between March and September 2024, hitting political parties, ISPs, and universities.

Unit 42 processes roughly 167 million new DNS records daily and applies a machine learning model using 74 features over 169 TB of passive DNS and geolocation data to flag hijacked domains. From March to September 2024 the pipeline screened over 29 billion records and classified 6,729 as DNS hijacking, averaging 38 detections per day; a new model detects hijacks in customer traffic within about 10 minutes. Notable cases include a Hungarian political party's hijacked domain, defacement of a large utility company and ISP, and university and research center domains repurposed for illicit gambling. DNS hijacking typically relies on stolen registrar or DNS provider credentials or cache poisoning, enabling MitM attacks, phishing, drive-by downloads, and scams.

Palo Alto Unit 42 · 29d agoResearch in the wild

CVE-2022-22965: Spring Core Remote Code Execution Vulnerability Exploited In the Wild (SpringShell) (Updated)

Attackers actively exploit Spring Framework RCE CVE-2022-22965 (SpringShell, CVSS 9.8) to deploy webshells; patches 5.3.18/5.2.20 shipped March 31, 2022.

CVE-2022-22965 enables unauthenticated remote code execution in the widely used Spring Framework (CVSS 9.8), which Unit 42 has observed being exploited in the wild. The flaw stems from getCachedIntrospectionResults exposing the class object during parameter binding, letting attackers manipulate the class loader to modify Tomcat logging and upload a JSP webshell. Public PoCs require JDK 9+, Tomcat, WAR packaging, and spring-webmvc or spring-webflux dependencies on Spring 5.3.0-5.3.17, 5.2.0-5.2.19, or older. Fixes shipped in Spring Framework 5.3.18 and 5.2.20; the related Spring Cloud Function flaw CVE-2022-22963 was patched March 29, 2022.

Palo Alto Unit 42 · 29d agoExploit / PoC in the wildCVE-2022-22965CVE-2022-22963CVE-2010-16221

Threat Brief: OWASSRF Vulnerability Exploitation

Unit 42 details active exploitation of Exchange SSRF flaws CVE-2022-41080/CVE-2022-41082 via the OWASSRF method, deploying the SilverArrow PowerShell backdoor.

Unit 42 documents OWASSRF, an exploit chain combining CVE-2022-41080 and CVE-2022-41082 to achieve remote code execution on Microsoft Exchange via Outlook Web Access, bypassing Microsoft's ProxyNotShell mitigations. Active exploitation was observed in late November and early December 2022, affecting at least eight organizations. Attackers authenticated to Exchange, then executed a PowerShell backdoor tracked as SilverArrow to create admin accounts, install AnyDesk, tunnel RDP via PuTTY Link, and dump LSASS memory for credential theft. Exploitation is isolated rather than mass-scale because authentication is required.

Palo Alto Unit 42 · 29d agoExploit / PoC in the wildCVE-2022-41080CVE-2022-41082CVE-2022-410401

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