In the fourth quarter of 2025, the Google Threat Intelligence Group (GTIG) reported a significant uptick in the misuse of artificial intelligence by threat actors. According to GTIG’s AI threat tracker, what initially appeared as experimental probing has evolved into systematic, repeatable exploitation of large language models (LLMs) to enhance reconnaissance, phishing, malware development, and post-compromise activity.A notable trend identified by GTIG is the rise of model extraction attempts, or “distillation attacks.” In these operations, threat actors systematically query production models to replicate proprietary AI capabilities without directly compromising internal networks. Using legitimate API access, attackers can gather outputs sufficient to train secondary “student” models. While knowledge distillation is a valid machine learning method, unauthorized replication constitutes intellectual property theft and a direct threat to developers of proprietary AI.Throughout 2025, GTIG observed sustained campaigns involving more than 100,000 prompts aimed at uncovering internal reasoning and chain-of-thought logic. Attackers attempted to coerce Gemini into revealing hidden decision-making processes. GTIG’s monitoring systems detected these patterns and mitigated exposure, protecting the internal logic of proprietary AI.
AI Threat Tracker, a Force Multiplier
Beyond intellectual property theft, GTIG’s AI threat tracker reports that state-backed and sophisticated actors are leveraging LLMs to accelerate reconnaissance and social engineering. Threat actors use AI to synthesize open-source intelligence (OSINT), profile high-value individuals, map organizational hierarchies, and identify decision-makers, dramatically reducing the manual effort required for research.For instance, UNC6418 employed Gemini to gather account credentials and email addresses prior to launching phishing campaigns targeting Ukrainian and defense-sector entities. Temp.HEX, a China-linked actor, used AI to collect intelligence on individuals in Pakistan and analyze separatist groups. While immediate operational targeting was not always observed, Google mitigated these risks by disabling associated assets.Phishing tactics have similarly evolved. Generative AI enables actors to produce highly polished, culturally accurate messaging. APT42, linked to Iran, used Gemini to enumerate official email addresses, research business connections, and create personas tailored to targets, while translation capabilities allowed multilingual operations. North Korea’s UNC2970 leveraged AI to profile cybersecurity and defense professionals, refining phishing narratives with salary and role information. All identified assets were disabled, preventing further compromise.
AI-Enhanced Malware Development
GTIG also documented AI-assisted malware development. APT31 prompted Gemini with expert cybersecurity personas to automate vulnerability analysis, including remote code execution, firewall bypass, and SQL injection testing. UNC795 engaged Gemini regularly to troubleshoot code and explore AI-integrated auditing, suggesting early experimentation with agentic AI, systems capable of autonomous multi-step reasoning. While fully autonomous AI attacks have not yet been observed, GTIG anticipates growing underground interest in such capabilities.Generative AI is also supporting information operations. Threat actors from China, Iran, Russia, and Saudi Arabia used Gemini to draft political content, generate propaganda, and localize messaging. According to GTIG’s AI threat tracker, these efforts improved efficiency and scale but did not produce transformative influence capabilities. AI is enhancing productivity rather than creating fundamentally new tactics in the information operations space.
AI-Powered Malware Frameworks: HONESTCUE and COINBAIT
In September 2025, GTIG identified HONESTCUE, a malware framework outsourcing code generation via Gemini’s API. HONESTCUE queries the AI for C# code to perform “stage two” functionality, which is compiled and executed in memory without writing artifacts to disk, complicating detection. Similarly, COINBAIT, a phishing kit detected in November 2025, leveraged AI-generated code via Lovable AI to impersonate a cryptocurrency exchange. COINBAIT incorporated complex React single-page applications, verbose developer logs, and cloud-based hosting to evade traditional network defenses.GTIG also reported that underground markets are exploiting AI services and API keys to scale attacks. One example, “Xanthorox,” marketed itself as a self-contained AI for autonomous malware generation but relied on commercial AI APIs, including Gemini.
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