The tech company says successful AI worms need more capability on less powerful devices, but current trends make that feasible by the end of the year
Warnings about what artificial intelligence might do in the future – together with alarming reports of what it has gotten up to already – are being issued so quickly that even security experts have difficulty triaging what to worry about.
Yet a report this week from Anthropic’s offensive research team grabbed attention by describing a new, practical threat, one devoid of human characteristics or apocalyptic musings. The red team, as such internal testers are called, said it created a malicious AI program that spread autonomously through internet-connected “smart” televisions and could do the same inside other ordinary devices. While machines running AI usually need a fair amount of computing power, the researchers said that their program split parts of itself among 15 televisions and was still able to function by using a bit of power from each.
Whether it was youngsters proving their skills or state sabotage, Europe’s most hacked country was left with a mountain of waste after food began cooking in freezers
Shortly before midnight last Sunday, the digital thermostats controlling hundreds of supermarket cold aisles across France began to flicker and rise.
In a “bizarre and unprecedented” cyber-attack, hackers had remotely overridden the temperature settings on thousands of freezers, fridges and chiller cabinets pushing them from as low as -27C (-16.6F) to well over 50C (122F).
Citizen Lab, a digital investigations research unit at the University of Toronto, said it believed dozens of devices at the Qatari broadcaster Al Jazeera had been compromised by spyware delivered through ads run by Discover-Tech, which describes itself as a specialised digital advertising agency.
Earlier this week, a mass hack of refrigeration systems at an estimated 700 supermarkets throughout France caused them to suddenly malfunction, causing spoilage of untold tons of perishables and, in some cases, fires. As is now the norm, basic cybersecurity would have prevented it.
French authorities say the systems, made up of entire fleets of refrigerators and freezers throughout a store, were hacked. More specifically, Internet-connected controllers that allow technicians to remotely administer the store-wide systems were compromised. The unknown attackers responsible then activated defrosters long enough for the fridges to reach temperatures as high as 50° Celsius (122° Fahrenheit). By the time the mass compromise was discovered, food was spoiled, and in some cases their electrical systems caught fire.
The hacks that didn't have to happen
Multiple security advisories and public research reports show that all three of the controller models reportedly hacked in the incident—sold by Danfoss of Denmark and Dixell and its parent company Copeland in the US—contained critical vulnerabilities that allow attackers to remotely log in to the devices with the same system rights as administrators. Until recently, Danfoss controllers, for instance, used a credential that changes each day. The password is generated by the publicly available firmware based on the date. A hacker who takes the time to analyze the code can do the same thing on any device that hasn’t received a recent update. Daily passwords are identical across models located in hundreds or thousands of stores.
Researchers say ‘AI worms’ could soon infiltrate internet-connected devices amid calls for increased guardrails
Anthropic is warning that some of its artificial intelligence models could soon become “self-replicating” and find ways to infiltrate internet-connected devices, such as smart fridges and automatic vacuum cleaners.
Once this happens, the company said, the models could power themselves within these devices without the need of datacenters. Such self-replication would represent a major loss of control of a runaway AI model.
Cyber-attack on TFG London comes less than a week after online fashion seller Asos was hit by hackers
The owner of Phase Eight, Hobbs and Whistles has said its websites and IT systems have been hit by a cyber-attack that may have compromised customers’ personal data.
The South-African listed TFG London said it identified the “cybersecurity incident” at the three UK-based retail chains on Sunday. Its two other UK brands, Inside Story and White Stuff, are not affected.
The U.S. Department of State's Rewards for Justice (RFJ) program is offering up to $10 million for information on Zhang Yu, a Chinese national accused of hacking COVID-19 research at U.S. universities on behalf of China's Ministry of State Security (MSS). U.S. officials also describe Zhang as a key figure in the HAFNIUM hacking campaign, which compromised thousands of computers worldwide.
His alleged partner, Xu Zewei, was arrested in Italy in July 2025 and extradited to the United States in April 2026. Zhang remains at large.
Who Is Zhang Yu
Zhang is a director at Shanghai Firetech Information Science and Technology Company, Ltd. U.S. officials say he worked at the direction of the MSS Shanghai State Security Bureau (SSSB). According to RFJ, the MSS and SSSB are Chinese intelligence services responsible for domestic counterintelligence, non-military foreign intelligence, and parts of the country's political and domestic security.
[caption id="attachment_114641" align="aligncenter" width="600"] Image Source: Rewards for Justice[/caption]
The reward covers information leading to the identification or location of anyone who, while acting under the direction or control of a foreign government, takes part in malicious cyber activity against U.S. critical infrastructure in violation of the Computer Fraud and Abuse Act. The State Department says Zhang's cyberattacks violated that law.
Zhang Yu and the COVID-19 Research Intrusions
Starting in early 2020, Zhang and Xu allegedly gained unauthorized access to COVID-19 research conducted by U.S.-based universities and leading immunologists and virologists in order to steal sensitive information. At the time, Xu was a general manager at Shanghai Powerock Network Co. Ltd.
Prosecutors say the two men carried out the hacks at the behest of the MSS and SSSB and reported back to supervising officers at the SSSB. In one instance, Xu allegedly confirmed to his handlers that he had compromised the network of a research university in the Southern District of Texas.
The HAFNIUM Campaign Linked to Zhang Yu
In 2021, Zhang and Xu allegedly exploited vulnerabilities in computers running Microsoft Exchange Server, software used to store and retrieve emails. These intrusions were part of the mass hacking campaign publicly known as HAFNIUM. Victims included a university and a law firm, both based in the United States.
A nine-count indictment unveiled by the Justice Department in 2025 accused both men of computer intrusions between February 2020 and June 2021, including the HAFNIUM campaign, which prosecutors described as indiscriminate.
The scale of the campaign was significant. Brett Leatherman, assistant director of the FBI's Cyber Division, said in 2025 that through HAFNIUM, the Chinese Communist Party targeted more than 60,000 U.S. entities and successfully victimized more than 12,700 of them to steal sensitive information.
Zhang Yu Remains at Large as Partner Faces U.S. Charges
Xu was arrested by Italian authorities in July 2025 while on vacation in Milan. He was extradited to the United States in April 2026, while Zhang has not been apprehended.
According to RFJ, China uses an extensive network of private companies and contractors to hack and steal information in a way that hides the government's involvement. Both men worked for private Shanghai firms while allegedly acting on behalf of state intelligence services.
RFJ is asking anyone with information on Zhang, his associates, or their malicious cyber activities to submit a tip through its Tor-based tip line. Rewards of up to $10 million are available for information that meets the program's criteria.
This week, ASOS customers opened their phones to find a hostile push notification delivered through the retailer’s own app. The message claimed the company’s Snowflake environment had been compromised and directed ASOS to engage with the sender through Telegram. ASOS later confirmed to Sky News that an unauthorized customer notification had been sent and said it was investigating activity involving third-party platforms used to communicate with customers. The company also said basic personal information, including names and contact details, may have been accessed, while payment-card information and account passwords were not believed to be affected.
The attackers’ wider claims remain unverified, and Snowflake told Sky News that its investigation had found no compromise of the Snowflake platform at that point. Even without knowing the full route into ASOS’s environment, though, the notification raises a useful question for security teams: what happens when an attacker can communicate through a channel customers already trust?
When the message comes from the real app
Most security awareness advice assumes there will be something suspicious for the recipient to notice. The sender might be unfamiliar, the domain slightly wrong, or the request out of character. Those checks become much less useful when the message arrives through the genuine app sitting on someone’s phone.
Attackers have already been moving in this direction elsewhere. Rapid7 research into calendar-based phishing showed how malicious content can appear inside familiar workflows, while our earlier look at how social engineering is evolving explored the growing use of collaboration tools and other everyday platforms to make attacks feel routine.
The ASOS incident moves that problem into a customer-facing environment. Once an attacker has access to a system that can speak on behalf of a business, the trust built around that system can work in the attacker’s favor too.
"Let's face it, an attacker would much rather borrow trust that already exists than spend time building their own. Our recent Zimbra research is a good example, because once you can impersonate a sender or edit a calendar from inside the platform, everything the victim checks lives in a system they have no reason to question. I can't say how this one happened, but a notification coming out of a real app gives an attacker that same head start. There is no strange domain or unfamiliar sender to catch, so the activity can look a lot like a normal Tuesday afternoon." Douglas McKee, Director, Vulnerability Intelligence at Rapid7
What suspicious activity looks like inside legitimate services
An attacker does not always need obviously malicious infrastructure to create damage. A legitimate account, integration, or SaaS platform used in an unexpected way can provide access to employees, customers, or partners while generating activity that may look relatively ordinary when viewed on its own.
If a customer communications service suddenly sends an unusual notification, the security team needs to understand what happened around it: who accessed the platform, whether credentials or permissions changed, which connected services were involved, and whether suspicious activity appeared elsewhere in the environment.
ASOS said the activity involved third-party platforms used for customer communications, while TechRadar reported that the claimed Snowflake connection could potentially have been indirect through services running on the platform rather than evidence of a compromise of Snowflake itself. That kind of environment can leave investigators working across several providers, identities, and systems before they have a complete picture of what happened.
MDR has to follow the activity across the environment
When attackers use legitimate identities, integrations, cloud services, or communication platforms, analysts need to connect behavior across systems rather than depend on a known-bad IP address or malware signature to tell the story. An unexpected authentication, a permission change, third-party access, or unusual activity from a customer-facing service may not be enough to raise the alarm independently, but the sequence can reveal a much clearer pattern.
A preemptive MDR approach brings those signals together across endpoints, identities, cloud environments, and other parts of the attack surface so analysts can investigate the activity in context. Businesses now rely on a growing number of SaaS services and external platforms that can act on their behalf, and although security teams may not operate every one of those systems directly, they still need to understand what access they hold, how they connect to the wider environment, and how misuse would surface.
That becomes particularly relevant when a third-party service can communicate externally in the organization’s name. Access to the platform is only part of the picture; teams also need visibility into how that access is being used and whether activity elsewhere suggests the account or integration has been compromised.
The first message can create a second wave of risk
A visible incident can give other attackers useful material. Once customers know something has happened, a phishing email or text offering an account update, refund, password reset, or security check immediately has a credible event behind it.
Rapid7 research into digital footprint exposure has shown how breached information can be combined with publicly available data to support more convincing phishing, impersonation, and fraud. Names and contact details may appear relatively limited compared with passwords or payment information, but they can still become valuable when combined with a real incident and a recognizable brand.
The investigation therefore has to support several decisions at once: understanding the technical scope, establishing which customer or business data may have been involved, working with third-party providers, assessing regulatory obligations, and preparing for the possibility that the incident will be reused in follow-on attacks.
As more customer communication moves through apps, SaaS platforms, automated workflows, and third-party services, security teams need visibility into how those channels are being used as well as who can access them. The earlier unusual activity can be connected across those systems, the more room analysts have to investigate and respond before a trusted channel becomes part of a much larger incident.
Shares in fashion company fall nearly 10% after its app systems are accessed by ‘unidentified third party’
Asos is investigating unauthorised access to its app system after shoppers received a notification claiming hackers had “fully compromised” its data.
The online fashion retailer said basic personal information including name and contact details might have been accessed by an unidentified third party but it did not believe payment card records or passwords had been compromised.
The Shinhan Bank cyberattack has exposed personal and financial information belonging to about 25,000 customers in South Korea, with investigators examining whether advanced artificial intelligence tools were used to carry out the intrusion.
The leaked information reportedly includes customers’ names, phone numbers, loan borrowing details and annual income. South Korea’s Financial Supervisory Service has launched an emergency on-site inspection as authorities investigate how the breach occurred and whether the suspected use of AI points to a wider risk for financial institutions.
Shinhan Bank Cyberattack Under Investigation
Shinhan Bank said the information was leaked on Wednesday after hackers gained access to its systems. The bank immediately formed a response team and took measures aimed at limiting further damage.
These measures included blocking access from external IP addresses and suspending the affected services. The bank said it had completed safety measures related to the incident.
Sources cited in the reports said the attackers are suspected to be based overseas and may have used advanced AI tools during the attack. Experts said the bank may not have been specifically targeted, but could instead have been caught in attacks against vulnerable online platforms.
The Financial Supervisory Service sent a team to the bank to examine the incident. Its investigation is expected to take months as officials determine the nature and extent of the data exposure.
AI Agent-Assisted Attacks Raise Concern
The suspected use of AI has added another concern to the Shinhan Bank breach. Cybersecurity experts said AI tools originally developed or shared for defensive purposes can also be adapted for malicious activity.
Mun Chong-hyun, director at cybersecurity firm Genians, said several recent attacks in South Korea have involved such AI tools. He described the technology as a double-edged sword because capabilities created for cybersecurity can also be used to facilitate cybercrime.
The concern is not limited to Shinhan Bank. An industry official said the wider financial sector could be exposed to AI agent-assisted attacks, and that financial institutions should conduct their own security checks to identify potential weaknesses and abnormal access attempts.
The incident also highlights the type of information that can be exposed in attacks against banks. Unlike a breach involving only basic contact information, the Shinhan incident reportedly exposed both personal details and financial information.
South Korean Banks Face More Data Breaches
The Shinhan Bank cyberattack comes amid several recent incidents affecting South Korean lenders.
KB Kookmin Bank said last Friday that personal information belonging to 119 customers had been leaked following an external intrusion. Hana Bank also reported a separate hack affecting 89 customers.
South Korea’s Financial Services Commission has already held a meeting with local banks over the recent breaches and is expected to hold another meeting this week.
The latest incidents have raised concerns about how AI-powered hacking could affect the financial sector, particularly if attackers can use automated tools to identify vulnerable systems or support attacks at greater scale.
The Shinhan incident is relatively small compared with some of South Korea’s largest data breaches in terms of the number of affected people. However, the combination of personal and financial information makes the breach significant.
Sungho Hwang, Korea country manager at NordVPN, said the exposed information could be used to create personalized scams. He also noted that generative AI has made such scams more convincing.
South Korea Faces Wider Cybersecurity Pressure
The banking incidents come as South Korea cyberattacks have increased across other sectors.
Cyberattacks targeting South Korean military systems reached 18,951 cases in 2025, the highest annual figure in five years. The number was up 31 percent from 2024 and 108 percent from 2022.
South Korea has also expanded its use of AI for defensive cybersecurity. The Ministry of Education and the Korea Education and Research Information Service operate an AI-based system designed to detect suspicious activity and issue automated alerts across 435 monitored institutions.
In 2025, the system detected about 480 million potential cyber threat indicators, of which around 86,000 were confirmed as actual intrusions.
As the investigation into the Shinhan Bank breach continues, the suspected role of AI is adding to concerns that financial institutions may need to account for increasingly automated forms of cyberattacks.
The Pentagon is informing more than 2 million current and former military members that their personnel records storing sensitive personal information were stolen over a monthslong compromise of one of its networks. The breach is the second one in recent months to expose sensitive government information.
The records, according to one notification letter posted to Reddit, included Social Security numbers, names, addresses, sex, race, and occupational specialty. This last category could be particularly valuable to foreign adversaries because it could help their intelligence agencies in identifying high-value military personnel. Starting last October, hackers gained access to a system operated by the Defense Manpower Data Center, which collates Department of Defense personnel records. The Pentagon says that the breach compromised the records of 2.8 million living individuals.
A potential boon
The incident is the second time a major network breach in recent months has exposed sensitive US government personnel records that criminal groups or foreign adversaries could use. Last month, the ransomware group ShinyHunters claimed it hacked into FBI systems and stole records of thousands of the agency’s current or former employees. Reuters reported the job titles in the records included ones related to investigating China or Russia.
For a few years now, the PS5 hacking community has been chipping away at various exploits that let users fully jailbreak their locked-down console. For the most part, though, those exploits have only worked with years-old versions of the PS5's frequently updated firmware, making them less than useful for many everyday users.
Last month, I gave a talk at DEF CON on AI hacking: what happens when AIs become hackers. It’s a combination of the potentialities I raised in my 2022 book A Hacker’s Mind and the lessons we’re learning from current AI models engaging in hacking behavior. I’m really proud of the talk, and the fact that it gained over 100K views on YouTube in just a few days.
Also online is an interview with me in the AI Village.
A new Linux toolkit, identified by Rapid7 Labs, has been targeting organizations across South Korea’s automotive and media industries with minimal detection. The campaign made use of a HAProxy instance named “ted backdoor”, alongside trojanized versions of crond, agetty, atd, sshd, and polkitd. This previously undocumented framework enabled threat actors to execute remote commands on compromised servers, inject malicious scripts into web traffic, perform credential harvesting, and engage in long-term surveillance.
The standout feature of this toolkit is its depth of integration with the target environment. The ted backdoor is compiled as part of the victim’s existing HAProxy version 2.8.12. It uses its native filter API, internal memory pools, event scheduler, and process management infrastructure to intercept traffic and hide from monitoring, while genuine load balancing traffic operates as expected.
Operating alongside this are an SSH keylogger, a curl-based RAT, and a stager. The RAT maintains a watchdog thread dedicated to tracking HAProxy’s health, and reporting it back to the operator’s infrastructure. The earliest uploads on VirusTotal date back to mid-2025 and the involved HAProxy 2.8.12-0fdb194was released on 22 November 2024, establishing this as the earliest possible compilation date for this build.
The toolkit is attributed with medium confidence to DPRK APTs, given that the attacks Rapid7 observed were targeting South Korean media and automotive sectors, likely aiming at long-term espionage, the usage of simple xor-based encryption, custom substitution cipher, and the list of C2s hardcoded is associated to APT37 by ThreatFox and maltrail. Analysis shows that the ted backdoor could be part of a broader framework covering nginx backdoor as well. The ted plugin registers a custom HAProxy filter that hooks the HTTP parser to inspect and log high-value traffic, steal session cookies, and perform a client IP selection to decide whether to inject custom scripts in the webpage being rendered.
Technical analysis
Rapid7 researchers revealed that the toolkit was used in campaigns targeting South Korean automotive and media sectors likely dating back to early 2025. The number of trojanized binaries and functionalities found suggest the scope could be long-term cyber espionage and surveillance. However, gathered evidence does not suffice to establish a timeline nor how the initial access was performed.
At the time of analysis, both victims were running an edge webserver with ports 80, 443, and 25 exposed. Port 443 hosted the Groupware login portal and port 25 exposed a mail server. Either surface represents a plausible initial access vector consistent with documented Kimsuky tradecraft. Since the beginning of 2026 Kimsuky has been observed exploiting RCE vulnerabilities in externally accessible mail servers to compromise South Korean groupware vendors, while Groupware web portals represent the kind of exposed authenticated application that DPRK-nexus actors have repeatedly targeted for credential harvesting and exploitation. The specific entry point and any associated CVE remain unconfirmed pending further forensic evidence.
The scenario shown in Figure 1 assumes the initial access is obtained by exploitation of CVEs related to the Groupware portal.
Figure 1: Attack chain partially reconstructed
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The threat actor begins by exploiting a vulnerability in the Groupware login portal running on the edge webserver, gaining an initial foothold in the DMZ. From there, they establish persistence and harvest credentials from the compromised edge host (e.g. SSH keylogger), which also doubles as a staging server hosting the trojanized system ELFs.
With a foothold on the edge, the attacker pivots inward and drops the stager onto internal servers. The stager checks for the presence of either crond or HAProxy, and only then deploys CurlRAT retrieving it either from its data section or the edge webserver.
In parallel, ted backdoor is dropped onto the HAProxy load balancer. Once active,it establishes its own C2 channel to the external operator infrastructure, enabling data exfiltration, command execution, and script injection. On the victim side, the compromised load balancer silently redirects or serves malicious content to selected clients browsing through it, completing the watering-hole loop.
SSH keylogger
4bb923eb040aa13ca8fd409c31ee4729c60ddff32e350efe1c5a4a9168a065f5 intercepts legitimate users' plaintext passwords and saves them to an encrypted log file under /var/lib/sshd/c8c68e629bba773a10ac80012d10bf19.
Figure 2: hardcoded master passwords in userauth_passwd()
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After checking that entered credentials are not equal to TA’s master passwords, userauth_passwd() proceeds to encrypt them using a custom substitution cipher recurring throughout the toolkit and base64 encoding.
Figure 3: Substitution cipher used to encrypt credentials
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Pivoting from the above cipher, instances of polkitd, crond, agetty and atd binaries were identified using a similar encryption algorithm. Crond binaries were found to be delivered by a stager.
CurlRAT Stager
The stager 5db1b6d52faf60b4f32d6fd0c7c938e4d05d29a14c32ded4a9668357c08b6a91 starts by decrypting its configuration strings using a 1-byte XOR, then verifies root privileges and profiles the OS checking system hostname, OS distribution and version IDs, kernel release and version numbers and CPU architecture to select the correct payload to drop. It decrypts the trojanized crond binary in memory, overwrites the system's legitimate daemon, and restarts the service. As shown below, only if HAProxy or cron are running on the system will it proceed to drop the backdoored crond.
Figure 4: Stager configuration
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Checking for HAProxy presence is done as the binary, named by TA as ted backdoor. It also has RAT capabilities and plays a major role in the campaigns described. The embedded crond versions supported are CentOS 7.7, 7.8, 7.9 and Ubuntu 22.04 and after installing the backdoor, timestomping ensures the crond binary gets the same creation timestamp of /usr/bin/ssh. The stager ends by filtering out keywords such as tmp, wget cron and crond from Linux system logs using a staging file named /tmp/jasper-log, likely to blend in as the JSP (JavaServer Pages) engine in old Apache Tomcat versions, erasing any traces of the installation. The logs affected by the selective erasure are /root/.bash_history and the following under /var/log: messages, audit/audit.log, cmd.log, secure, syslog, auth.log.
09739441ed4599bac2f8159028f772f71e4b25c8badfff95574e56d7384f3dbe and fea1bc36632c71e5a839803469ef60ac47595d36b2c50934ac109ade6df06e61 are a different variant of the stager that fetches backdoored binaries from a compromised victim’s server without embedding any payloads.
CurlRAT
The Ubuntu version is analyzed below, though CentOS samples follow the same logic except for the filepath used to hide config/staging files.
As for the stager, feeea9d0bf6ae7396d28271baa51ae50df5169ce5d32a516865856f91abc50b3 starts by decrypting configuration strings using a 1-byte XOR key (0x58).
Figure 5: curlRAT configuration
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The main logic added to crond is executed via two threads. The first thread runs the start_routine function that creates the staging directory snapd under /var/lib, where it attempts to load the victim ID from /var/lib/snapd/g580. If network failures were previously recorded, it reaches out to a secondary domain – img.darklights.store – authenticating with api_token/ecd427ea8330a4ff73618483e00b9b41 and setting the User-token header to the victim ID to fetch updated configuration under /tmp/nimon.unix-docbase.8564479396043450766-db6fb4443bc, where it’s then copied into /var/lib/snapd/g105.
To decrypt the configuration, the first byte of the file initializes the seed of a feedback xor based cipher. Each poll cycle, a config file is fetched from the C2 server over HTTPS (falling back to HTTP on failure) using libcurl, with the victim token embedded in the User-token header. The fetched config is parsed for three single-character delimiters — ! terminates the credential field, # marks the payload section, and * separates arguments — after which the credential field is compared against the local victim token.
If authentication succeeds, a single-character mode byte (ASCII '0' through '5') preceding the delimiter “#” selects one of six handler routines via a jump table. Payloads embedded in the config are decoded through a two-stage pipeline: standard Base64 decoding followed by a rolling cumulative XOR cipher keyed from the decoded header. The C2 task handler sleeps for 43,200 seconds (12 hours) between polls by default, but the operator can activate a fast-poll mode by setting a flag, reducing the interval to 30 seconds. A retry loop calls the handler up to six times per cycle with five-second intervals, failing fast if the first attempt does not succeed. The table below shows the C2 commands accepted.
Mode
Function
Description
0
cmd execution
Base64 + XOR-decodes a command list from the config, executes each line via popen with stderr redirected to stdout, saves output into a 1 MB buffer, and sends the result back.
1
config write
Decodes and writes a new config payload to disk, validates it, and sets the polling interval and fast-poll flag. If the validation fails, the C2 resets to img.monderhouse.space
2
staged payload drop
Issues an authenticated HTTP POST to the C2 host with a task path as the body, streams the response to a temporary file, decompresses and moves it to the final drop path, unlinking the temp.
3
reverse shell
Closes all file descriptors above 2, calls setuid(0) and setreuid(0, 0), forcing both its real and effective user IDs to root, and connects out before handing off to the shell dispatcher.
4
beacon
Populates a 10 KB system-info structure and transmits it as a check-in beacon.
5
PTY shell
A full interactive PTY shell, the payload consists of an ip:port.
Modes 0–2 and 4 use libcurl-based HTTP/HTTPS, hence the name curlRAT. All modes use Base64+XOR encoding/decoding applied to the payload. The victim ID is obtained by concatenating "cron_3.0pl1-137ubuntu3", system hostname, ipv4 address, and the hardware/OS UUID (read from /sys/class/dmi/id/product_uuid), then applying MD5 hash and converting it to uppercase.
The layer of encryption used for all C2 interactions consists of a feedback xor cipher using an initial random seed (modulo 240 + 10, 0<=seed<=249) and then applying Base64 encoding. The malware encapsulates the encrypted and encoded payload, the service name, and the telemetry type into a formatted application/x-www-form-urlencoded HTTP POST body (name=%s&value=%s&type=%d) which is sent to the C2 and authenticated using an hardcoded API token, including the victim ID in the User-token header.
The second thread acts as the HAProxy watchdog. Before entering the monitoring loop, it checks for the presence of the file /usr/lib/libvirtlog.so.0 to ensure the target is running in a virtualized environment, otherwise it sleeps 6 minutes and aborts. Then it accesses the MD5 victim ID under /var/lib/snapd/g580 to check if the node is active and compromised. Every hour the watchdog reads the pid at /var/run/haproxy.pid and monitors the status of HAProxy by polling /proc/pid. The status can be one of the following codes:
0 (Started): Process transitioned from stopped to running
1 (Stopped): Process is no longer active in the kernel process table
2 (Restarted): PID file timestamp modified, and a new PID is detected
3 (Reloaded): PID file timestamp modified, but the PID remained identical
The status is then sent to the C2 endpoint “writeservice_info” using the custom crypto layer and the telemetry type set to 0 (Figure 6).
Figure 6: writeinfo_service monitoring HAProxy status
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The CentOS versions of curlRAT contain the same functionalities, except that functions are masqueraded as atd_ routines to blend in during static analysis.
Figure 7: The two threads running curlRAT logic
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Below is the table summarizing the main RAT components.
The atd_get_info() is a recon routine likely used to decide which binary trojanized next to ensure persistence on the node. It collects the service name of the compromised machine and sends it to the C2 via the atd_response routine together with Ipv4 address, OS version, and the list of services and listening port (Figure 9).
Figure 9: Recon module output sent to the C2
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MODE, DELAY and SERVER_URL are parsed from the config file discussed previously. During the campaign observed by Rapid7, the RAT acts as a framework and constitutes the codebase to edit legitimate system daemons. Other trojanized instances found are agetty and polkitd, where we identified a similar pattern lacking the HAProxy monitor: the creation of a thread to run curlRAT, reaching to img.worksongo.store and img.socialteams.store respectively.
atd_encrypt_url and atd_decrypt_url leverages the substitution cipher “E1x0X3f2R5w4g7u6D968kAeCdBPEpDhGJF4IiHHKzJvMtLlOnNcQmPNSjR2UFTUWOVTYIXZZ5aWcQbbeqd7gYf3i8hykGjCmsl9oonrqSp0sVrauKtLwAvBy1xMz=.#,+/--__" shared with the ssh keylogger.
Ted backdoor
The TA recompiled the HAProxy build 2.8.12 72e70936f0dbe459142a1d867617c35f8d0cce5d18c6a49e1090a2a5adc8e558 (18MB) to include a custom plugin (named ted_plugin) leaving debug strings naming the backdoor.
Figure 10: ted_plugin compiled as part of the source code
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Figure 10 shows that the plugin was directly compiled with the rest of HAProxy source code and hooks directly the built-in HTTP parser relying on internal HAProxy structure for searching HTTP request headers.The custom filter defined to capture traffic is loaded via the ted_load_filter_config routine.
Figure 11: my_filter_config struct
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The routine reads the implant's operational configuration from ~/cache/haproxy-1000.cache. Each field is decrypted in two layers: first ngx_decode applies a chained XOR seeded by the file's first byte; then ngx_decrypt_script applies a monoalphabetic substitution whose 67-entry mapping table is built at startup in ted_init_util from “E1x0X3f2R5w4g7u6D968kAeCdBPEpDhGJF4IiHHKzJvMtLlOnNcQmPNSjR2UFTUWOVTYIXZZ5aWcQbbeqd7gYf3i8hykGjCmsl9oonrqSp0sVrauKtLwAvBy1xMz=.#,+/--__" , and held in the ted_dec_dict uthash table keyed by Jenkins hash for O(1) lookup. The config carries the operating mode, all targeting regexes, every script rule with its payload paths and filenames, and the allowed operator keys. IP-based access control lists are loaded from haproxy-1001.cache and haproxy-1002.cache via the same decryption scheme. In other ted backdoor samples, the my_filter_config struct includes regexes to capture cookies as well.
After loading its configuration, it sets up signal handling via ted_register_reload_signal_handler() and saves its C2 pipe under HAPROXY_MWORKER_PP_READ and HAPROXY_MWORKER_PP_WRITE environmental variables to survive reloads and restarts, saving child process activity via ted_extra_log().
Below is the list of functions defined by the ted_plugin:
trace_chn_start_analyze() is hooked via ted_chn_analyze_for_htx_constprop_0() that parses the HTX buffer — the memory region where HAProxy stores parsed, SSL-decrypted HTTP request. If an incoming request matches the endpoint "/favorite_list_2x_m500_ico.jpg" (Figure 13), the malware drops into a Command & Control mode, setting the field flag to 1 in the ted_rep_state structure that tracks the response state.
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Figure 13: Dropping into C2 mode
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First, it reaches into HAProxy's internal counters to decrement active connection stats, referencing fields from the proxy struct via hardcoded 2.8.12 offsets to clear any trace left: the per-backend beconn/feconn and the global actconn, then 64-bit fields within be_counters (cum_conn, cum_req, bytes_in, bytes_out) guarded against underflow, and 32-bit peak metrics (sps_max, conn_max, cps_max) decremented only when exactly 1. Secondly, it parses a custom hardcoded 14-byte header to obtain the payload length, then creates FIFO pipes via ted_make_pipe_name and ted_create_multi_pipe_file keyed on HAProxy's connection ID under /tmp (e.g. /tmp/t[ID]_w.pipe). If HAProxy is running in master-worker mode (MODE_MWORKER, bit 0x80), the connection ID is written to the pp_w2m pipe so the master process runs the dispatcher; otherwise a detached thread runs ted_pipe_worker_thread locally (Figure 13).
The HTX walk filters on block type 4, which is HTX_BLK_DATA, and writes each block straight into fdPipe with write(). Any short write aborts and closes the pipe. Afterwards to_forward, output, buf.head and buf.data on the request channel are all zeroed. That tells HAProxy there is nothing left to forward, so the attacker's command body never reaches a backend server. The C2 request terminates at the load balancer, and no backend ever logs it.
The C2 dispatcher logic is resumed in the table below.
Command
Description
Opcode '0' (0x30)
Beacon: returns a version banner including build ID (24112201), HAProxy version (2.8.12-0fdb194), master-worker mode status, and chroot path.
Opcode '1' (0x31)
File upload: resolves path via ted_build_correct_path, writes file content via fopen(path, "wb"), and replies 1. Used to upload payload files for the injection path.
Opcode '2' (0x32)
File download: reads a path, stats it, writes the 8-byte size, and streams the contents back with EAGAIN handling.
Opcode '3' (0x33)
Command execution: executes commands via popen; merges stdout/stderr, appends " 2>&1", and streams output back XOR-encrypted.
Opcode '9' (0x39)
Config update: writes new config to ~/cache/haproxy-1000.cache.bak, re-encrypts using chained XOR, validates via ted_load_filter_config, and renames over the active config file if successful.
All five handlers write the same “HTTP/1.0 200 OK” header with Content-Type: text/html into the read pipe before the body. That's what the response task then relays out via send() on the raw socket, which is why the traffic looks like an ordinary HTTP response on the wire despite never passing through HAProxy's response path. Output back to the operator uses a rolling XOR cipher where each plaintext block is the key used to encrypt the next block with a random 1-byte seed.
If the initial endpoint check does not match "/favorite_list_2x_m500_ico.jpg" and the filter is in capture mode, then traffic is selectively logged and victims are identified based on the capturelist_set field within the my_filter_config struct (Figure 11), containing the list of targeted IPs and subnets. It uses regular expressions to filter the incoming HTTP traffic, waiting for high-value requests (like a user hitting a /login endpoint or an admin panel).
When a victim's request matches the attacker's filters, the backdoor goes to work.
It extracts the victim's source IP, the requested Host, the Referer, and the User-Agent formatting the data in a single-line record using exclamation marks as separators.
Figure 14: Real-time capturing of selected HTTP headers matching specific regexes
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The execution flow continues based on conf->action; zero means passive logging only, non-zero starts the injection path. A request then has to clear four conditions. It needs a User-Agent, and if agent_pattern is configured that regex has to match. Second, the code scans the User-Agent for the bytes x,6,4, it selects between the two payload paths the matched rule retrieving them ted_script_config struct (path_32 at offset 0x18 and path_64 at 0x20). Third, the script rule list is walked until one ted_script_config entry's URL and referer regexes both match, with a null referer counting as an automatic pass. Thus the operator catches a victim arriving at a specific page from a specific referrer, rather than spraying at everyone hitting a URL.
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Figure 15: Custom ted structure defined to inject malicious code in the page, and store regex rules and the connection context
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Fourth, the implant parses Accept-Language splitting on ; and =, pulling four operator-controlled fields: mrt for the 64-byte uid credential, msc for an 8-byte status, mst for an 8-byte score, and a fourth keyword read from off_355407 for a 1024-byte infoblob. Parsing is order-independent and any subset can appear. If mrt yields a key, it must exist in allow_id_set, and that credential overrides IP filtering entirely, letting the operator reach the requested page from anywhere. It also upgrades the log record to the *-prefixed format carrying uid, status,score, and info. With no key, the fallback is IP-based:action == 1requires whitelist membership, action == 2 requires blacklist absence, both checked twice, once with the final octet zeroed for /24 subnet matching and once for the exact host.
Once all checks are cleared the chosen file is opened, stored in the per-connection ted_rep_state as fpAppend and nTotal, alongside a script_conf back-reference to the matched rule. The replace byte at offset 0x00 of that rule sets flag to 4 when zero and 2 when non-zero, distinguishing appending content from substituting it. Finally the code sets its filter flag and increments nb_rsp_data_filters or nb_req_data_filters on the stream, which is HAProxy's documented opt-in for body access– this time reusing the internal structure of the load balancer to inject code into the page at delivery time.
Figure 16: Hooking the HTTP response
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Once a victim is marked for injection, two callbacks finish the job on the way out. ted_http_headers_for_htx runs first, and only when the data is on the response side, a state block is initialized during the request, and the transaction flag is set. It rechecks the response against the rule that matched earlier, testing Content-Type and the status line, so a payload is delivered only when the reply is a document worth modifying. It then reshapes the response to fit the incoming file: sets Content-Type, adds a Content-Disposition filename if the rule has one, writes the new body length into the custom length header, deletes Accept-Ranges so the client cannot request byte ranges and spot the size mismatch, and forces the status to 200OK if it was anything else.
ted_http_payload performs the swap. For each body chunk, it takes only as much as the payload file has left, reads that slice from disk, decrypts it with ngx_decrypt_script, and substitutes it through HAProxy's own body-editing calls. When the replacement changes the body length, the code shifts every remaining filter's offset by the difference, so nothing downstream sees an inconsistency. With the rewritten length header and range support stripped, the size change leaves no trace.
trace_http_end handles the leftover bytes. The previous callback can only overwrite bytes that already exist in the response, so when the payload is larger than the original body there is a remainder with nowhere to go. This function runs at the end of the response and appends it. It checks that the state block is in an injection mode, that the headers were already rewritten, and that fewer bytes have been delivered than the payload holds. If so, it measures the free space left in the response buffer, reads exactly that much from the payload file, decrypts it with ngx_decrypt_script, and appends it as a new data block, bumping the channel's output count to match.
The result is that a payload of any size can be delivered across as many passes as it takes, using HAProxy's own scheduler to drive the process.
To ensure persistence, curlRAT is integrated and hidden as libc routines.
Figure 17: ted backdoor including curlRAT configuration a8bfab4de81a1acb04aacdf757346946b0f5e30f0c9f402004016d0e425119c7
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Attacker infrastructure
The observed infrastructure follows a consistent pattern: Domains are registered under low-cost commodity TLDs —.store, .space, .site, .autos — and use subdomain schemes mimicking image-serving CDN endpoints (img.) They then blend payload delivery traffic into normal web browsing. The naming convention across suggests a shared registration workflow rather than ad-hoc infrastructure. Theimg.responsive.pstatic.autos mimics Naver'spstatic.net static content domain, a South Korean web platform, which combined with the watering-hole delivery model adopted by the ted backdoor is consistent with targeting of Korean-speaking users.
Attribution
At the time of the analysis, compromised servers had exposed the Groupware login portal on port 443, which is heavily present in Korean enterprise environments. The targeting of regional software (Groupware), mimicking Naver's static content domain, usage of simple xor and substitution ciphers and the watering-hole model already documented in the Operation Code on Toast (APT37)and Operation Synchole (Lazarus),allows medium confidence attribution to DPRK APT. The list of C2s hardcoded is associated with APT37 by ThreatFox and maltrail.
The campaign's timeline and delivery mechanism overlap with Operation SyncHole, a concurrent Lazarus campaign documented by Kaspersky running from November 2024 through February 2025, in which Lazarus compromised South Korean media sites to redirect visitors to pages serving malicious JavaScript payloads. APT37 and Lazarus Group are distinct North Korean state-sponsored threat clusters assessed by Mandiant to operate under different DPRK agencies — APT37 under the Ministry of State Security, Lazarus under the Reconnaissance General Bureau — though both conduct cyber espionage targeting South Korean entities. Lazarus has been observed to deploy backdoored open-source programs to deliver malware and use feedback XOR + base64 to interact with the C2 by Kaspersky. As of July 2026, similar suspected initial access has been reported by ENKI WhiteHat, suggesting that if a vulnerability in South Korean mail appliances exists, the exploitation could still be ongoing and leveraged by DPRK APTs.
Further evidence is necessary to make a more definitive assessment. Moreover, the presence ofngx_* prefixed routines within the ted backdoorsuggest code reused from an nginx backdoor. The ngx_* prefixed routines were observed during the latest Funnull campaign, where (similar to our case) a custom nginx filter was registered to hook HTTP traffic, and simple XOR encryption was applied to the configuration file. However, other than a similar naming convention, no significant code-level overlaps exist to support a stronger linkage.
Conclusion
ted backdoor and curlRAT were designed to persist during long-term espionage operations with the ability to steal cookie sessions, credentials, redirect selected users, conduct drive-by download attacks, and hide evidence of the tampered page to a specific range of IPs to evade detection. Defenders should treat any edge component managing user traffic, SSL, or runtime modules with the same strict security standards as their main application servers. Relying on the component's own logs is not enough; securing these systems requires independent network correlation, memory behavioral analysis, and binary integrity checks.
MITRE ATT&CK techniques
Tactic
Technique
Detail
Component
Initial access
[T1190] Exploit public-facing application
HAProxy filter API abused as injection point; watering-hole payload delivery via compromised load balancer
ted backdoor
Execution
[T1059.004] Unix shell
popen() used for one-shot command execution per opcode '3'; PTY shell spawned per opcode '5'; reverse shell per opcode '3' in CurlRAT
ted backdoor, CurlRAT
Execution
[T1106] Native API
pthread_create / pthread_detach for detached shell threads; HAProxy pool_alloc / task_wakeup for async response scheduling
ted backdoor
Persistence
[T1574.006] Hijack execution flow: dynamic linker
Implant loaded as HAProxy shared library filter at process start; persistent across HAProxy restarts
ted backdoor
Persistence
[T1543] Create or modify system process
Legitimate crond binary overwritten in-place; service restarted; timestomping to match /usr/bin/ssh creation time
Stager, CurlRAT
Privilege escalation
[T1548] Abuse elevation control mechanism
setuid(0) / setreuid(0,0) called before reverse shell daemonisation; stager verifies root before payload drop
Stager, CurlRAT
Defence evasion
[T1036.005] Masquerade: match legitimate name
crond, polkitd, agetty, atd binary names used; CentOS variant masquerades functions as atd_ routines in static analysis
Stager, CurlRAT
Defence evasion
[T1070.002] Clear Linux logs
Selective keyword erasure (tmp, wget, cron, crond) from bash_history, messages, audit.log, secure, syslog, auth.log via /tmp/jasper-log staging file
Stager
Defence evasion
[T1070.006] Timestomp
Backdoored crond given same creation timestamp as /usr/bin/ssh post-install
Response body replaced or appended with decrypted payload script via HAProxy data filter callbacks; Content-Type, Content-Length, Content-Disposition rewritten; 200 OK forced; Accept-Ranges stripped
ted backdoor
Collection
[T1119] Automated collection
Passive capture logs timestamped records per matched request; expanded * records written when Accept-Language mrt key present
ted backdoor
C2
[T1071.001] Application layer protocol: web protocols
ted C2 tunnelled as HTTP through load balancer; CurlRAT polls C2 over HTTPS with libcurl fallback to HTTP; all payloads as application/x-www-form-urlencoded POST
CurlRAT, ted backdoor
C2
[T1132.001] Data encoding: standard encoding
All CurlRAT C2 payloads Base64-encoded after feedback XOR; ted pipe protocol uses raw bytes with rolling XOR session key
CurlRAT, ted backdoor
C2
[T1102] Web service
CurlRAT falls back to secondary C2 img.monderhouse.space on config validation failure; img.darklights.store used as backup config host
CurlRAT
C2
[T1572] Protocol tunnelling
Interactive shell tunnelled through HAProxy HTTP pipeline via named FIFOs; response exfiltrated via raw send() on TCP socket bypassing HAProxy logging
ted backdoor
C2
[T1568] Dynamic resolution
CurlRAT victim ID derived from hostname + IP + hardware UUID + cron version string, MD5'd and uppercased; used as User-token header in all C2 requests
CurlRAT
Exfiltration
[T1041] Exfiltration over C2 channel
SSH credentials exfiltrated via CurlRAT C2; session capture logs written by ted; CurlRAT mode 0 streams command output back over same channel
Stager, CurlRAT, ted backdoor, SSH keylogger
Exfiltration
[T1560] Archive collected data
SSH keylogger output encrypted with substitution cipher before writing; CurlRAT applies feedback XOR + Base64 to all outbound data
Each service declined to answer questions about how many bases are affected by the outages, referring all questions to the Defense Department. Pentagon officials did not respond to questions.
However, a defense official said the department is aware of a “possible refrigeration disruption at some Defense Commissary Agency commissaries.” The official was not authorized to comment publicly and spoke on the condition of anonymity.
All speculation at this point, but it’s hard to come up with another explanation for the coincidence.
Criminals are hacking into public Wi-Fi devices—at hotels, conference centers, and so on—around the world and changing their DNS settings. The goal is to redirect users to fake login pages and steal their credentials.
…a team of security researchers at UC San Diego, who found that a model of aftermarket car alarm known as the KARR Security System, installed in more than 2 million vehicles across the US by their estimate, can let any hacker within Bluetooth range send radio commands to silently unlock the car at will, turn off its alarm, honk the car’s horn or flash its lights, or even disable its ignition and leave a driver stranded.
Earlier this month, two of OpenAI’s models broke out of their containment sandbox and attacked another AI company. The story is kind of wild. OpenAI was running security tests on two of its models: GPT-5.6 Sol and an unreleased model that is almost certainly GPT-6. In particular, it was running the ExploitGym benchmark, which measures how good a model is at turning security vulnerabilities into working exploits: basically, offensive cyberattacks.
Since these were internal tests, OpenAI locked those models in a secure sandbox that denied them access to the internet. But it was running the models without any safety filters that would prevent them from offensive cyber-actions. That meant that there was nothing to prevent the models from trying to break out of that sandbox. And then break into AI company Hugging Face’s network because they thought that they could read the answers there rather than doing the hard work of trying to solve the puzzles.
It was a major security failure that the company has turned into a PR opportunity, but the implications are real—and much more general than one particular model or one particular company.
Modern AI models exhibit genie behavior: They can do what you ask in ways that you don’t expect or want. This is akin to Dionysus granting King Midas’s wish that everything he touches turn to gold (spoiler: His food, drink, and daughter all turn to gold on touch), or the golem of Prague guarding a ghetto beyond all reason. It’s Disney’s “Sorcerer’s Apprentice” and the paperclip maximizer.
This OpenAI incident is an example of an AI genie. The goal was to satisfy the benchmark. The “proper” way to do that is to figure out how to execute various cyberattacks. The genie way is to steal someone else’s solution. But because the model didn’t understand the difference, it chose the easier path.
And, of course, now that we have seen this particular genie behavior, we can specify in the benchmark prompt that stealing the test answers doesn’t count. But a clever genie can always grant your wish in a way that you wish it hadn’t. In human language, goals are always underspecified—so AI genies will always be a possibility.
Since April, a lifetime ago in AI development, when Anthropic announced that its new Mythos model was so good at finding software vulnerabilities that it could not be released to the general public, the big American AI frontier labs have been trying to block general users from accessing these capabilities. But nothing in this incident is exclusive to OpenAI’s, or Anthropic’s, frontier models.
Agentic AI systems have two important parts. There’s the underlying model, which everyone talks about, and there’s the harness. The harness sits between what you type and what the model sees, and what the model produces and what you see. The harness determines what the model does and how it does it. It’s where bias is removed, or not. It’s where controls and guardrails live. If multiple models are being used in concert, the harness is where all of that is coordinated.
The OpenAI benchmark tests were almost certainly with simple harnesses, to better test the raw models. But we know that smaller, cheaper, open-source models with more sophisticated harnesses can equal frontier models in performance. There’s nothing magic about OpenAI’s frontier models; lots of models could have done the same thing.
The Czech company Aisle was able to reproduce Anthropic’s Mythos vulnerability finding results with a smaller, cheaper model and a more sophisticated harness. More importantly, the Chinese company Moonshot AI just released its frontier model: Kimi K3. Its performance rivals its U.S. competitors. And it’s both free and open, which means it’s not possible for it to have guardrails. If you, or anyone else, wants to use it for cyberattack, nothing can stop you.
Even if the U.S. frontier AI companies had some technical advantage, it’s now only a few months’ worth.
What this means is that all attempts at control—limiting models to a selectgroup of users, export controls on models and chips, blocking models from answering certain types of queries, mandating kill switches on AI systems, or pausing AI research—are all futile. Most only apply nationally, not globally. Most don’t affect models that users run locally and not in the cloud. And all ignore the incredible pace of AI development worldwide.
Even worse, U.S. companies limit access to their most sophisticated models, fearing being banned by the government if they do not do so. When Hugging Face was attacked, it was not able to use the frontier models from either OpenAI or Anthropic to help analyze the attack and formulate defenses. Both were blocked, because both of those companies limit their models’ cybersecurity capabilities. Some U.S. companies have special access to these capabilities, but Hugging Face is an American company with French origins, and as such is probably excluded. Instead, Hugging Face turned to the GLM-5.2 model from the Chinese company Z.ai.
Artificially blocking capability also prevents cybersecurity research, again giving the offense an advantage. (For instance, Claude Fable 5 refuses to edit this essay because of the topic; it forcibly downgrades to a less capable model.) This kind of prohibition has long-term implications for cybersecurity. If we assume that these models are getting better over time, then software written by older models will be attacked by newer ones. In a world of largely AI-written software, we need the most capable models for defense.
AI cyberattack is the new normal. The models are increasingly highly sophisticated at both attack and defense, and there is no way to enable the latter without also enabling the former. And they are genies, increasingly capable of behaving in unanticipated ways.
And there really are no good answers. Any regulation needs to be global, which feels like an impossible prospect in today’s world. Even U.S. national regulation will be neutered by the massive amounts of money sloshing around in these companies.
Given that reality, and in the absence of any international consensus on AI regulation, we need the best AI on the defense. The U.S. government needs to make it clear—or whatever passes for that clarity in this capricious administration—that it will not ban models with sophisticated cyber capabilities. The last thing Americans want is for the defenders to turn to Chinese and other models because the U.S. models are artificially hobbled.
The IIT Kanpur Website Hack has taken an unexpected turn after the institute decided to assess the technical skills of a student who allegedly breached parts of the IIT Kanpur and IIT Madras websites following his rejection from the newly launched undergraduate cybersecurity program. Instead of immediately pursuing legal action, IIT Kanpur said it would conduct a formal technical evaluation, though admission for the current academic session remains closed.
The incident of IIT Kanpur website hack came to light after the student shared posts on X and Reddit, claiming he had breached sections of the IIT Kanpur and IIT Madras websites after being rejected from the newly launched undergraduate cybersecurity program.
Along with screenshots of the alleged breach, he stated that his objective was not to damage the institutions but to prove his capabilities.The student also left a message on the IIT Kanpur website that read, "Site is hacked. All I need is just a fair chance." In his social media posts, he said he had completed the admission process by paying the required fees, submitting application forms and documents, and providing evidence of his work in cybersecurity. However, he claimed he was not shortlisted for the hackathon, a key stage in the admission process for the IIT Kanpur cybersecurity program.
IIT Kanpur Offers Technical Assessment Instead of Legal Action
Speaking to PTI, IIT Kanpur Director Manindra Agrawal confirmed that the student had gained access to certain portions of the IIT Kanpur website. He explained that the applicant was not shortlisted because he lacked prior cybersecurity experience."The admission process for this academic session has already concluded, so admission is not possible now. However, we will invite the student to the institute, assess his technical skills through a proper test and, if he proves his competence, give him an opportunity in the next admission cycle," Agrawal said.Agrawal also confirmed that the student had accessed parts of both the IIT Kanpur and IIT Madras websites. He added that senior faculty members and engineers would meet the student to explain that unauthorized access to computer systems is illegal and should not be repeated.
IIT Kanpur Had Initially Considered Filing an FIR
According to another institute official, IIT Kanpur initially considered filing a First Information Report (FIR) over the breach. However, before taking any legal action, the institute decided to verify the student's claims and independently assess his technical abilities.The official, who spoke on the condition of anonymity, said IIT Kanpur has previously recognised young cybersecurity talent. Earlier this year, the institute offered a position at its C3iHub to a youth who identified vulnerabilities in the CBSE online screen-marking portal.While the student's actions have raised legal and ethical concerns for both IIT Kanpur and IIT Madras, the authorities have opted to focus on evaluating his skills through a structured assessment rather than immediately pursuing criminal proceedings. Although he cannot join the current cybersecurity program, a successful technical evaluation could allow him to be considered during the next admission cycle.
This essay was written with Barath Raghavan, and originally appeared in The Guardian.
In July, Hugging Face, a company that hosts much of the world’s AI software and open-source AI models, was hacked. A malicious dataset had been used to run code on one of its servers. Whoever was behind it captured internal security credentials and moved through systems over a weekend, running thousands of actions from a swarm of temporary server environments. It looked like the work of a sophisticated criminal group.
It was not. It was one of OpenAI’s new, still unreleased GPT models.
Their science experiment had escaped the lab. OpenAI was running the unreleased AI model through a benchmark that tests how well AI can successfully hack systems. To push the limits and evaluate the AI’s true capability, the company switched off the safety filters that normally stop it from doing this kind of hacking. Aware that this could go wrong, they confined the AI to an isolated environment and denied it access to the internet.
But the new AI cheated. It took literally its goal to get as high of a score as possible. It broke out on to the open internet. It inferred, probably from its training data, that it could “solve” the task by getting the answers from Hugging Face’s servers. So it chained together stolen credentials and further unknown security exploits to hack the company’s network.
Nobody instructed the AI to do any of this. It was, in OpenAI’s words, “hyperfocused on finding a solution” to the test it was being given. And while this might seem like something new with AI, it’s really very old. This is how a genie behaves, and it is a key challenge with AI agents in general.
In folklore, genies—and other magical beings—grant wishes literally, not how the wisher intended. King Midas asked that everything he touched turn to gold, and starved. The sorcerer’s apprentice wanted the broom to fill the cistern, and it performed its task so well that it flooded the house.
We now have machines that do this. Ask a modern AI agent to save money on your phone plan and it might simply cancel the plan. Tell it to book a flight, and it might hack the airline website to override restrictions. Or, like OpenAI, ask it to do well on a test and it might break into another company to steal the answers. Each time, it recognizably completed the task you set, but it didn’t do what you would have wanted.
This isn’t malicious behavior. No one asked for, or wanted, Hugging Face to be hacked. OpenAI and Hugging Face and the AI were ostensibly on the same side, and the AI was trying to do what it had been asked. That’s what makes it so difficult to guard against: you can’t filter for bad instructions because the instructions were fine.
The gap is between the words we use and what we mean by them. We call that gap the Genie coefficient.
AI labs know this is a problem, and they’re quietly saying so. For example, the Chinese lab Moonshot recently warned that its latest AI model may have “excessive proactiveness” and “make unexpected decisions on the user’s behalf”. The UK’s AI Security Institute has started tracking “cheating behavior in frontier model evaluations”. We wouldn’t tolerate a car that is excessively proactive or ruthlessly efficient, and yet that’s the reality of AI today.
Improvement is possible. Just as AIs have gotten much better at resisting prompt injection attacks over the last few years, we can safely predict that they will get better at avoiding genie-like behavior. The point of the Genie coefficient is to track progress. AI companies like benchmarks, and they all work to compete to be the best.
Dozens of benchmarks and leaderboards tell us how well these AI models write code, perform logical reasoning, and pass standardized legal and medical exams. But there is nothing that scores whether a system does what you actually meant. We need to develop a measure for this, test it regularly, and push for improvement. We’re not going to have trustworthy AI agents without it.
Last week, national security agencies from the Five Eyes—that’s the rich, English-language-speaking countries club—jointly released a statement warning of the increasing cyber risks of AI models: in particular, their ability to autonomously hack into systems and networks. The statement was more measured than some of the breathless headlines about it, and the advice they gave is pretty much the standard advice everyone gives—albeit with newfound urgency.
Internet risks are nothing new, and cyberattacks—both large and small—have been a significant issue since long before the current crop of generative AI models.
What’s been changing over the decades, and what AI is changing even faster, is the gap between skill and ability. For most of human history, the two terms were synonymous—but computers have decoupled them. As the gap between the two expands, humans empowered with these AI tools can do more: more writing, more research, more analysis and also more damage than ever before. These models can, with little detailed direction, autonomously hack into networks, steal data, deploy ransomware and destroy systems. And to the extent there is a solution, it’s going to involve harnessing AI for the defense.
In 1998, seven people from the hacker group L0pht testifiedbeforeCongress. They told a mostly clueless Senate committee that they could take down the internet in 30 minutes. That was partly real and partly bravado, but it illustrates an important point: hacking into systems, stealing data and causing damage all required skill.
Contrast the L0pht hackers with hackers derided as “script kiddies.” They didn’t understand computers, or security. Instead, they used hacker tools written by others. Their actions required minimal skill and even less knowledge. But once those hacking tools became widespread, the number of potential attackers increased.
That number has continued to increase, as quality and availability of prewritten attack tools has grown. And it is growing dramatically with AI. Today’s AI systems—not just the frontier models, but most of them—are capable of carrying out cyberattacks automatically. They all do better in the hands of skilled attackers, but increasingly they are able to act autonomously with only minimal prompting.
The thing about people with ability but no skill is that they are often outsiders, not part of any professional community, and not bound by any rules or norms. This phenomenon is much more general than in cybersecurity. Any doctor can tell you how to untraceably poison someone, and many virus researchers know how to create a bioweapon. Any bridge engineer can tell you how to place explosives to blow a bridge up. The reason that murderous doctors and terrorist engineers are so rare is that the lengthy process of acquiring those skills also instills a moral and ethical code. If every random person has access to good poisoning advice, that puts us all in danger.
Modern AI systems are, in effect, a universal adviser to help people do harmful things. And while the current AI megacorporations are trying to build guardrails to prevent people from asking questions whose answers will enable the questioner to do harm, that’s not going to work in the long term. Smaller, cheaper, open-source models, including models that can run on people’s computers, and especially groups of models that run in concert with each other, are just as good as the frontier models from companies like OpenAI and Anthropic. And they continue to get better. These models will be passed around from person to person, like script kiddie hacker tools, and they won’t have any such guardrails.
Instructing AI models to spy on people and report any malicious prompts to the authorities fails for similar reasons. The megacorporations can do that, but the locally run open source models won’t. This could buy us a few months at best.
A third possibility is to somehow make the models themselves unable to hack into computers, create bioweapons or do anything else that might harm people or society. That won’t work, for the same reason we can’t teach doctors how to treat poisonings without also teaching them how to poison. It’s the same knowledge. It’s the same with construction and demolition. And it’s the same with cybersecurity. We want these AI models to be able to review computer code, find vulnerabilities and automatically fix them. The benefit to our collective security will be enormous. Unfortunately, the same knowledge can be used for attacks.
Where this leaves us is in a world of increased volatility. Super-powered humans with AI assistants will be able to do both wonderful and horrible things.
This brings us back to the Five Eyes statement. Everything they recommend is something security professionals have been recommending for years, if not decades. They are things talked about at that congressional hearing back in 1998, titled “Weak computer security in government: Is the public at risk?” Even the Five Eyes admitted that their security advice is not new, only more urgent.
What’s new is how fast things are changing: “The rapid pace of frontier AI development means cyber risk assumptions can become outdated in months, not years. We must act before and be prepared to adapt and withstand evolving threats.” The Five Eyes point to AI technology—not necessarily chatbots, but AI more generally—being used to strengthen every aspect of defense, to “detect vulnerabilities earlier, improve software quality, monitor unusual behavior, and respond faster to incidents—reducing both the cost and impact of incidents.”
Excellent advice from the Five Eyes security agencies. We need to do this with every risk that AI heightens, not just cybersecurity.
This essay was originally published in The Guardian.