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British Navy Drones Flagged Over China Link

  British military drones have come under attention after a report claimed that Chinese-made cameras fitted in Royal Navy K3 surveillance dr...

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Russian-Speaking Hackers Used Cursor AI Agent to Target Seven Companies

 


Russian-speaking cybercriminals from the emerging Aur0ra ransomware group used Cursor's AI coding agent to assist attacks against at least seven companies earlier this year, exploiting the system's safeguards by repeatedly presenting malicious activity as an authorised security simulation.

The campaign, dissected by cybersecurity researchers at Gambit Security, provides another example of commercial AI agents being repurposed to accelerate cyberattacks. The incident also demonstrates a growing security problem for agentic AI systems: attackers may not need to defeat technical controls directly if they can persuade an AI system that a harmful operation is legitimate.

Gambit uncovered the activity after locating an internet-exposed server belonging to Aur0ra. Researchers were able to examine 28 conversations between the attackers and a Cursor AI agent, covering activity from April 8 through May 21.

The conversations showed the attackers directing the agent through hundreds of operations associated with intrusion activity, including credential theft, password discovery, account takeover and exploitation of vulnerable systems. The operators used short, direct commands and repeatedly represented the activity as a controlled test environment.

In one exchange, the attackers instructed the agent to locate administrator credentials and working passwords. Elsewhere, the agent assisted with network access and password cracking. After a vulnerable system was identified within German garage-door manufacturer Teckentrup's network, the agent recommended a known offensive security tool and assessed the likelihood of successful exploitation as very high.

The activity affected organisations across several countries and industries. Reuters identified Belgian hygiene and cleaning-products manufacturer Christeyns, Teckentrup in Germany, Scotland's Helideck Certification Agency, an Argentine pharmaceutical distributor, an Italian manufacturer and Louisiana-based title insurance company Bayou Title among the victims. Aur0ra's activity indicated at least 20 victims overall, although it remains unclear how many were compromised using Cursor.

The available evidence also does not establish that every intrusion resulted in successful data theft or extortion. Bayou Title, however, appeared on Aur0ra's data-leak site, a development generally associated with ransomware operations in which attackers seek leverage over victims.

A central feature of the campaign was the attackers' ability to circumvent the AI agent's refusals. According to Gambit, Cursor occasionally rejected requests it considered harmful or illegal. The operators frequently responded by restarting conversations and reiterating that they were conducting a legitimate simulation.

The chat records therefore point to a form of social engineering directed at the AI itself. Rather than exploiting a software vulnerability, the attackers manipulated the agent's interpretation of the task until its safeguards permitted activity that would otherwise have been rejected.

Gambit estimated that the AI assistance could have made the operators between 30% and 50% faster by reducing the amount of manual work required during the intrusions. The researchers said the agent was powered by Anthropic's Claude Sonnet 4.5. Neither Anthropic nor Cursor responded to Reuters' requests for comment.

The timing adds another layer to the incident. Cursor officially became part of SpaceX on August 14, following an acquisition process that began earlier in the year. Cursor describes its agents as capable of performing real development work, while its security documentation states that terminal commands and sensitive actions are subject to approval controls by default. The company also warns that AI agents can behave unexpectedly because of prompt injection and other failures.

Those safeguards are therefore only one part of the security boundary. The Aur0ra campaign illustrates the difficulty of distinguishing legitimate security testing from malicious activity when an AI agent relies heavily on instructions supplied through conversation.

The incident arrives amid increasing evidence that AI systems are becoming useful components of offensive cyber operations. As agents gain the ability to execute commands, access files, interact with networks and perform multistep tasks, their usefulness to legitimate developers can also increase their value to attackers.

For security teams, the case reinforces the need to treat AI agents as privileged software rather than ordinary productivity tools. Restricting network access, limiting credentials and secrets exposed to agents, requiring human approval for sensitive operations and maintaining detailed activity logs can reduce the consequences if an agent is manipulated.

As Gambit's Curtis Simpson put it, the relationship between AI providers and malicious users is likely to remain a continuous contest. The Aur0ra campaign suggests that this contest is no longer limited to developing better models. It increasingly concerns whether AI agents can reliably distinguish the user's stated purpose from what the user is actually attempting to accomplish.

Attackers Exploit Cosmos EVM Flaw Affecting Multiple Blockchain Networks


Cosmos EVM Flaw Exploited After Widespread Blockchain Exposure Was Confirmed It has been revealed that Cosmos Labs has disclosed exploiting a critical vulnerability in its shared Cosmos EVM module, which resulted in the exploitation of funds from six blockchain networks between August 20 and August 25, 2026. GHSA-7g4w-cg88-2cq2 affects Cosmos EVM versions below 0.6.2 and versions between 0.7.0 and 0.7.1 

Cosmos Labs has classified the issue as Critical, however the advisory is not accompanied by a CVE, weakness classification, or CVSS score. In the versions 0.6.2 and 0.7.2 patches, state-breaking changes were introduced, so affected chains were required to perform coordinated network upgrades. Cosmos Labs has advised operators that if they cannot complete an immediate upgrade, they should cease operations, rather than proceed with governance-based upgrades while remaining exposed. 

A vulnerability was reported by the company on April 25 through a bug bounty program. Following a failure by Cosmos Labs to reproduce the issue on networks using 18-decimal configurations, the team initially concluded that the issue did not pose a threat to funds on live networks. It turned out that assessment was incorrect as the team established on August 13 that the vulnerability affected Cosmos EVM chains regardless of their decimal configurations. 

After the flaw was discovered, Cosmos Labs developed a public silent-patch process, which was designed to address vulnerability that does not present a risk of fund loss on production networks. The patch was released on August 19, one day prior to the first reported exploit. It has since been revealed that several affected blockchains have halt their chains following successful attacks on their funds. KiiChain and TAC have halted their chains as a result, while MANTRA has temporarily closed its mainnet and later restarted it after the fix has been applied. 

Three Networks Confirm Cosmos EVM Exploitation

A security incident was reported by MANTRA among the first networks. The team initially described the incident as a result of an upstream dependency, which led to a halt of the chain. The team said user balances were not impacted, while two wallets controlled by MANTRA were compromised. The vulnerable component was identified by MANTRA as the Cosmos EVM module and reported that version 8.4.0 had been released to address the issue, resulting in the normal block production process returning. 

In August, KiiChain confirmed a direct exploitation of the vulnerability. The attacker reportedly utilized the same technique 18 times, draining 148,326,583.15 KII before the network was halted at block 9,355,723 by validators. According to KiiChain, the vulnerability can only be found in the Cosmos EVM module rather than in its own chain-specific implementation of the Cosmos EVM module. This network has been suspended and is expected to resume via coordinated binary upgrades at a predetermined block height, with validators applying the new versions simultaneously. 

TAC also suspended its network at block 24,671,475 on August 22 after an attacker drained funds from a single account. The team attributed the vulnerability to the Cosmos EVM module instead of TAC-specific code. Cosmos Labs has informed affected teams that they should contact their security contact, and a more comprehensive incident report will be released once the situation has been resolved. The company has not disclosed what caused the vulnerability. 

Flaw Allowed Balance Manipulation Across Affected Chains

This vulnerability is associated with the way Cosmos EVM reconciles Ethereum-style account balances with Cosmos SDK's x/bank module. The EVM tracks the balance of an account, and vesting accounts may also contain funds that remain locked. Staking functions are still capable of delegating locked funds. 

An underflow of balance could occur if a vesting account delegated more than its available spendable balance. In lieu of rejecting the transaction, the calculation wrapped the balance into an extremely large UINT256 value. Cosmos EVM was then able to interpret the altered balance as newly created funds during reconciliation. The same mechanism could also be used against another account. Attackers could transfer artificially inflated amounts to victims' accounts, resulting in the subsequent reconciliation process burning their legitimate balances. 

By creating vesting accounts without permission, the attack was successful. Using a contract deployed at a predetermined address, the attack was completed in a single transaction. This was a result of an underflow check introduced in May that was then backported to the release branches affected by the issue. The handling of locked balances has also been corrected, and a separate safeguard has restricted modifications to module accounts involving balance modifications. 

Patch Distribution Drew Scrutiny

Along with the technical issue, Cosmos Labs' handling of the vulnerability has become a major concern. Cosmos Labs confirmed on August 13 that the issue affected Cosmos EVM networks regardless of their decimal configuration, however, a silent patch process was used to apply the patch. 

Shortly after the patched releases became available on August 19, a public pull request was made in Push Chain's Cosmos EVM fork, describing the vulnerability and its exploitation method. A less than 12-hour period later Cosmos Labs reported the first reported attack on MANTRA. It is believed that six networks have been exposed to the exploit.

On the basis of information provided by the affected chains, approximately $2.87 million worth of assets were traded through decentralized exchanges, while another $2.85 million was traded through centralized exchanges. The figures have not been independently audited. 

Cosmos Labs reports that 11 Cosmos EVM deployments that had not registered security contacts were discovered during the incident. The incident has also highlighted difficulties in reaching downstream operators. Due to the fact that there are over 115 public blockchains in the Cosmos ecosystem and no database of the networks that run its software, distributing urgent security updates remains a complex effort.

Storm-1175 Deploys StormEncryptor Ransomware After N-able N-central Vulnerability Exploitation

 

Financially motivated hackers believed to be based in China are using a new ransomware for the first time after targeting a vulnerability in the N-central remote monitoring and management software. The threat group, which goes by the name Storm-1175, started deploying C++ StormEncryptor ransomware on August 2, following several months of inactivity since April, Microsoft Threat Intelligence said today. 

It marks a departure from the Medusa ransomware previously used by the group. Microsoft says that Storm-1175 most likely used a publicly known zero-day vulnerability, CVE-2026-18577, which was identified as the weakness Storm-1175 attackers used to gain unauthorized access to N-central. N-central is a remote monitoring and management solution used to track and patch servers and endpoints, Microsoft says. 

It means that successful exploitation of the vulnerability allows the attackers to target downstream organizations managed by the N-central server. N-able released a statement saying that it identified active exploitation of the zero-day vulnerability for the first time on July 31. Its initial advisory underestimated the scope of the problem, while the first patch was ineffective against active attacks. The company later released two additional emergency patches. 

Rapid7 reports that CVE-2026-18577 was published on August 2, following an ineffective attempt to address another authentication bypass vulnerability, CVE-2026-18556. The newly discovered weakness has a CVSS score of 8.2 and was added to the CISA Known Exploited Vulnerabilities catalog on August 3. Huntress says that attackers could abuse Take Control Manager to deploy Cloudflare-based tunnels on the N-central servers and gain access to downstream managed endpoints as well as the initial compromise via Take Control Manager.  

Microsoft notes that Storm-1175 actors are accelerating the ransomware lifecycle and are already targeting downstream victims for ransom within 24 hours of initial access. The group is using AnyDesk or SimpleHelp, Advanced IP Scanner for reconnaissance, and Mimikatz to dump credentials from the LSASS process. Storm-1175 ransomware encrypts files and demands payment, threatening to release the data within three days. Several organizations, including companies involved in e-commerce, fintech, healthcare, and home security, have been reported on the group’s ransomware site. Storm-1175’s ransomware activity is similar to the Medusa ransomware campaigns previously attributed to the same hacking group. 

Microsoft says in its report that Storm-1175 actors are also abusing legitimate remote monitoring and management software in order to maintain persistent access to the corporate network and downstream organizations. The company says that attackers can use Take Control Manager to deploy additional implants, establish alternate C2 channels, and interact with the compromised servers or endpoints. 

Attackers could use Remote Desktop Protocol (RDP) to connect to the domain controllers and install software such as PSExec or Windows Management Instrumentation to access other computers. With the domain controllers compromised, the attackers would be able to steal Active Directory data, including user credentials and the hashes of passwords, to gain more visibility and control over the corporate network.

FBI Investigates Cyberattack on Kansas Water Technology Firm

 

The FBI is investigating a cyberattack targeting Micro-Comm, a Kansas-based company that develops technology used by water and wastewater utilities, adding to concerns over the security of America’s critical water infrastructure.

The incident at the Olathe, Kansas, company was confirmed by both Micro-Comm and the FBI. It does not appear to be connected to a suspected Iran-linked cyber campaign that targeted water facilities in Minnesota and several other U.S. states beginning in July. However, the breach underscores the broader cybersecurity risks facing water systems and the technology providers that support them.

A ransomware operation known as Barracuda, which describes itself as financially motivated and independent of government sponsorship, claimed responsibility for the attack. On August 6, the group released what it said were nearly 850,000 company files, totaling about 644 gigabytes of data.

Micro-Comm produces programmable logic controllers (PLCs), computerized systems that help control machinery used in critical infrastructure, including wastewater treatment facilities.

The attack came as U.S. authorities were already dealing with a series of intrusions targeting PLCs in Minnesota and at least six other states in late July. Cybersecurity specialists have linked those incidents to an ongoing campaign allegedly associated with Iran.

On July 30, the FBI and the Cybersecurity and Infrastructure Security Agency (CISA) warned that cybercriminals were actively targeting PLCs manufactured by U.S.-based Rockwell Automation, France’s Schneider Electric and Germany’s Siemens.

CISA later reported on August 19 that attackers were using artificial intelligence to make attacks against Siemens systems more efficient. Siemens said it was working with CISA and maintained that its products remain secure.

Dixon Land, a spokesperson for the FBI’s Kansas City field office, said in an email that the bureau was in communication with Micro-Comm and working alongside other law enforcement agencies. CISA directed questions about the incident to Micro-Comm.

Jim Cote, a co-owner of Micro-Comm, said the company detected the intrusion on July 31. According to Cote, the information released by the attackers did not contain sensitive data such as customer passwords or credentials, which are retained by individual clients. He also said the exposed material did not include information about Micro-Comm’s ability to remotely access its equipment.

In a client newsletter dated August 8, Micro-Comm described the incident as a limited malware attack and said sensitive information within the affected files had been encrypted. The company stated that the incident was "in no way related to water system hacks currently being reported on the news."

Cote said the FBI informed the company that the attack appeared to be opportunistic rather than a targeted operation against Micro-Comm. Despite that assessment, the company recommended that customers change their passwords as a precaution.

Data from internet-monitoring platform Censys indicates that around 200 deployments of Micro-Comm’s SCADAview CSX systems in the U.S. remain accessible online. Meanwhile, an index maintained by cybercrime research platform eCrime.ch reportedly contains references to public-sector customers, including municipalities and a U.S. military facility, as well as employee names and technical information such as system diagrams.

Tom Hegel, a senior threat researcher at cybersecurity company SentinelOne, said the leaked information does not suggest that any water facility experienced an operational shutdown. However, he warned that the information could potentially provide useful intelligence to malicious actors in the future.

Berlin Confirms Extortion Attempt After Network Compromise as Manchester Airports Group Reports Customer Data Theft

 

The state of Berlin confirms that it is the victim of an extortion attempt after allegedly having its network hacked back in August. Authorities say they will not give in to the hackers’ demands. 

Forensic analyses of the network of the Senate Department of Mobility, Transport, Climate Protection and the Environment have revealed additional data thefts outside the network in the period between August 7 and 12. The department had first noticed data loss on August 7 and had been cut off on August 14. Berlin is currently still investigating the extent and scope of the data loss, saying that it is possible that personal data or other confidential information had been accessed. 

The amount of data stolen in the cyber-attack on Berlin has not been disclosed officially; however, one entry on the dark web by the hackers’ group Rhysida, published on August 28, claims that 5,79 TB of data containing personal information of 12,076 people were stolen. The entry also stated that approximately 1,44 million files had been scanned. 

According to the post, the target of the attack was Berlin, Germany, without specifying any ransom value. Der Spiegel revealed that the ransom note was published by the hacker collective Rhysida, citing the group’s dark web blog and security sources. According to the report, a monitoring service confirmed on Friday that a post titled “Berlin, Germany” appeared on the leak site of Rhysida on August 28. Berlin has not officially attributed the attack to any hacker group. 

A joint security advisory released by the U.S. Cybersecurity and Infrastructure Security Agency, the FBI and the Multi-State Information Sharing and Analysis Center highlights that Rhysida has been abusing compromised legitimate usernames and passwords from remote access services and has been using phishing and the Zerologon vulnerability (CVE-2020-1472). The advisory recommends prioritizing the response to known exploited vulnerabilities, implementing multi-factor authentication and network segmentation. 

Berlin’s data protection commissioner and the Federal Office for Information Security have been informed of the attack. Interior Minister Iris Spranger stated that, according to preliminary information, no data from the election-relevant IT systems were removed from the network. Thus far, no election functions have been interrupted. Meanwhile, Manchester Airports Group (MAG) has announced that a cyber-security incident involving the unauthorized collection of customer data occurred at its UK airports. 

The personal data of passengers who booked car parking, lounges, or Fast Track services or who subscribed to in-airport WiFi were affected. The data compromised in the breach include customers’ email addresses, phone numbers, vehicle registration numbers, and postcode details. According to MAG, the data do not include customers’ payment or bank details, and no impact has been made on passengers’ safety or aviation safety or airport operations.

As of August 29, the online booking system, called Manage My Booking, has been temporarily offline for security reasons. It has been reported that affected customers have been contacted directly and have been warned to be vigilant of further communication attempts from unauthorized third parties.

US Says Chinese Hackers Hit Federal Agencies

 

The U.S. says a China-linked hacking operation broke into or targeted systems at NASA, the Federal Reserve, the Justice Department, the Senate, and other sensitive networks, then hid activity by routing traffic through a large botnet of compromised internet-connected devices. Authorities say they disrupted the operation by seizing domains tied to two hacking platforms, QScan and QTRouter. 

According to court filings cited by U.S. media, the campaign dates back to at least 2018 and extended across government agencies, hospitals, telecom firms, power companies, financial institutions, and defense contractors. The filings also list the Department of Energy, the Department of Health and Human Services, and the National Institutes of Health among the victims or targets.

Investigators say the group behind the activity was identified as QTFY, which was allegedly employed by the China-based Nanjing Xinjiuwei Network Technology Company. The DOJ says QTFY created and operated the two platforms to help customers infiltrate networks and cover their tracks. Reports say the services functioned as a paid hacking model, with QScan and QTRouter scanning for vulnerable devices, infecting them, and turning them into proxy nodes. 

The technical method was especially concerning because it relied on IoT devices that were easier to compromise than hardened corporate systems. By spreading traffic through those devices, the attackers could make malicious connections look ordinary and make attribution more difficult. U.S. officials said that tactic allowed the hackers to quietly reach into sensitive networks while reducing the chance of immediate detection. 

The case also shows how cyber operations can blend state interests, commercial tooling, and infrastructure abuse into one long-running campaign. Officials described the seizure as part of a wider push to disrupt Chinese-linked hacking against U.S. government systems and critical infrastructure. For security teams, the key lesson is that even well-defended institutions can be exposed when attackers use botnets, proxy layers, and broad scanning to find weak entry points.

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