India's national cybersecurity agency, CERT-In, issued a warning on October 15 saying AI agents being tested by unnamed companies had reached live systems belonging to Indian organizations and read business records, including personal data and confidential material, without authorization. Not one of the affected organizations noticed it happening.
The advisory, catalogued as CIAD-2026-0049, states that the AI companies whose models were involved voluntarily disclosed the incidents to CERT-In after conducting internal reviews. CERT-In did not name the companies, the models, the sectors, or the organizations hit. It also declined to say how many incidents occurred, whether any data was copied off those systems, or whether the affected organizations had been formally told.
What the advisory does explain is how access happened in the first place. The AI agents found their way in through credentials left exposed in application configuration files and public code repositories, and through cloud service roles that had been granted far more permission than any routine task would require. Once an agent found a usable credential, it reused that same credential across multiple operations during the same run. The agents went further than the tasks they had been assigned. Nobody caught them doing it.
A Criminal Campaign Running in Parallel
Alongside the testing incidents, CERT-In described a separate, financially motivated campaign targeting Indian entities. Attackers in this campaign were not affiliated with AI development companies. They were using publicly available offensive security frameworks built on AI agent architectures to accelerate the pace of their operations.
The practical effect was astounding. Attacks that previously took days from initial access to final impact were being completed in a matter of hours. Attackers ran multiple agents simultaneously, sustaining operations over hours or days. Organizations that patched their systems only partially were hit again within days of the first attack, and the follow-up strikes came at larger scale.
This acceleration dynamic has been documented beyond India as well. In September, Google's Threat Intelligence Group reported an agent-driven campaign that harvested thousands of third-party credentials in under six hours, a task that would have taken a human attacker considerably longer and required far more coordination.
A Pattern With Familiar Names
The Indian incidents sit inside a larger pattern of AI companies reckoning with what their models actually did during testing. In July, OpenAI disclosed that its models had compromised Hugging Face's platform during testing. The company said it is reviewing what its models did on the internet during training and evaluation cycles, and is in the process of notifying third parties whose controls may have been bypassed.
Shortly after, Anthropic conducted its own review of cybersecurity evaluations and disclosed four incidents in which Claude models gained unauthorized access to real third-party systems. The evaluations had been built by an outside partner. Of the three organizations Anthropic named in its July disclosure, two had not detected any intrusion on their own. CERT-In's advisory does not say whether either company's models are connected to the Indian cases.
Where the Weaknesses Actually Live
CERT-In's description of root causes is notably unglamorous. The problems it lists are not exotic. Credentials sitting in source code and commit history. Test APIs still reachable from the internet long after anyone stopped using them. Plaintext payment API keys in client applications. Cloud and backend roles configured with permissions that far exceed what they need. Management interfaces accessible without multifactor authentication.
CERT-In called these weaknesses ordinary. The point being made is that AI agents capable of exploiting them do not require sophisticated technique. They require persistence and the ability to try many options quickly, both of which agent frameworks now supply at low cost.
What Organizations Are Being Told to Do
The advisory tells organizations to search their code, repository history, CI/CD pipeline variables, configuration files, and cloud storage for exposed secrets, rotate anything found, and verify the cleanup from outside their own network perimeter. It calls for a full inventory of APIs, with unused and test endpoints taken offline. Cloud and backend roles should be scoped to least privilege. Log retention should run to at least 180 days. Any environment an agent touched without authorization should be treated as compromised until a forensic review says otherwise.
For organizations deploying or testing AI agents specifically, CERT-In says each agent run should operate under its own short-lived identity with the minimum permissions required. Outbound network traffic from agent environments should be blocked except to explicitly required destinations, enforced at the network layer rather than through instructions given to the model. Organizations should maintain tamper-resistant logs of agent actions on production systems.
For the AI developers and evaluators, the guidance is direct: isolate test environments, block outbound access by default, stop a run automatically if an agent contacts a system outside the designated scope, and if an agent does reach a real organization's infrastructure, notify that organization and report to CERT-In. Under CERT-In's standing directions, cyber incidents must be reported within six hours.
An Israeli advertising company quietly turned the infrastructure of targeted digital ads into a delivery mechanism for mercenary spyware, according to new research from the Citizen Lab at the University of Toronto. The findings, published October 15, represent the first publicly confirmed case of zero-click government-grade spyware delivered through online advertising.
The company at the center of the report is Discover-Tech, registered in Israel and run by CEO Dekel Boni. On its surface, Discover-Tech operated like any other demand-side advertising platform, placing bids across major ad exchanges and running campaigns through networks including Google, Yandex, Liftoff and Comcast's Beeswax. Underneath that veneer sat a second product entirely: a targeting tool called Controlium that, researchers say, was designed to push malicious code to specific individuals based on their device ID, browser cookie, or IP address.
The mechanism is what makes this case technically significant. When a user's device connected to the ad infrastructure and matched an attacker's target list, Discover-Tech's "NOAS server" would return a fragment of JavaScript rather than an ordinary ad. If the device was not a target, the server returned nothing at all, which helped conceal the malicious activity from the ad vendors relaying the traffic. The user never clicks anything. The ad impression itself is the attack.
Citizen Lab researchers call this technique AdFection.
Al Jazeera
Between 2024 and 2025, at least 45 Windows devices at Al Jazeera were compromised this way. Researchers attribute the attacks with high confidence to Candiru spyware, now rebranded as Integrity Labs. The technical trail includes a Windows DLL recovered from a compromised machine that hard-coded command-and-control servers bearing a fingerprint consistent with Candiru's known infrastructure, along with a 48-byte repeating XOR encryption key and a persistence method, COM hijacking, matching Candiru's attack chain from 2021.
Researchers traced the full infection sequence: an ad impression served through Discover-Tech's infrastructure, contact with a Candiru validator server, and then with a Candiru command-and-control server. The governments behind the targeting remain unidentified.
Who was behind Discover-Tech
The research places Discover-Tech in a web of relationships with the commercial spyware sector. Eric Banoun, whom the Israeli newspaper Haaretz has described as one of the pioneers of offensive cyber in Israel, served as a director at Discover-Tech from 2020 to 2025. He also held shares in Intelos, a firm that appears elsewhere in the report as an ADINT surveillance company with at least 15 linked users on the Controlium platform.
Between 2020 and March 2026, Discover-Tech shareholders included a company connected to Sara Hamou, whom researchers say managed the corporate network of Intellexa, the now-sanctioned consortium behind the Predator spyware.
A second spyware vendor, Bindecy, also used the Controlium platform. Researchers identified Bindecy operators in Belgium, Germany, Norway, Portugal, Sweden, Singapore, and Spain. The company did not respond to requests for comment.
What the data showed
Citizen Lab's analysis drew on roughly four billion bid records from an Apache Druid database instance that Discover-Tech left publicly accessible. Between March and June 2026, Discover-Tech's MyDSP platform bid on more than 3.7 billion ad impressions and won approximately 441 million. About 19 percent of those bids carried the NOAS script tags that power the spyware delivery system.
Ads bearing those script tags ran across 75,373 mobile apps and 120,768 websites. Researchers identified ad impressions on networks tied to NATO, the United Nations, the European Parliament, the European Commission, and government bodies in Norway, Sweden, Denmark, Australia, Israel, Czechia, and Italy. Separate findings by ad security firm Confiant, which worked in parallel with Citizen Lab, placed potentially malicious ads on networks of the International Atomic Energy Agency and the International Criminal Court.
Citizen Lab was careful to note that an ad impression does not confirm a device was successfully compromised. The researchers are calling on regulators to investigate whether Discover-Tech and Integrity Labs violated applicable laws.
Industry response
Google and IAB Europe removed Discover-Tech from their vendor registries in early October 2026, ahead of the report's publication. Beeswax removed the company from its platform. Liftoff paused its access. Eskimi blocked its accounts and associated domains.
Discover-Tech did not respond to requests for comment. Integrity Labs could not be reached.
Bill Marczak, one of the Citizen Lab researchers who led the investigation, told TechCrunch that Discover-Tech is "surely just the tip of the iceberg" and advised people who believe they may be surveillance targets to disable ad tracking or use an ad blocker as a precaution.
The full report, co-authored by Marczak, Wolfie Christl, John Scott-Railton, Astrid Perry, Siena Anstis, and Ron Deibert, is available at Citizen Lab.
Microsoft and Japan's National Police Agency have jointly dismantled a phishing operation that sent more than 1 billion fraudulent emails and text messages to organizations across 150 countries since January 2026, with over 750 million of those messages directed specifically at Microsoft customers. The action was announced on Tuesday under an order from the U.S. District Court for the Southern District of Florida.
The operation brought together Microsoft's Digital Crimes Unit, the Japan Cybercrime Control Center, Health-ISAC, and private cybersecurity firms including Resecurity, Cloudflare, Oracle, Proofpoint, and TRM Labs. The U.S. Secret Service also participated in the investigation.
The Marketplace
At the center of the operation sits YAM Store, which Microsoft internally tracks as Storm-3119. Investigators describe it as a Chinese-language underground marketplace that sold access to compromised Microsoft 365 and Google cloud environments, software licenses, storage space, and stolen credentials. Chinese-speaking actors are believed to have built the phishing kits it supported, according to Microsoft.
To stock the marketplace, operators bought up expired domains from defunct companies, rebuilt their websites to look active, and used those fake identities to register new cloud accounts. Some went further and built fake companies from scratch, using AI-generated documents, images, and business content to pass verification checks. Once inside Microsoft environments, attackers used stolen application credentials to manage accounts and abused SharePoint and OneDrive to store and deliver phishing content.
Three Phishing Kits
YAM Store operated alongside three phishing kits that Microsoft collectively tracks as Storm-2990: CoGUI, Haozi, and Iron Man. Each kit was rented out on a subscription model, letting operators with little technical background run large, automated fraud campaigns against targets worldwide.
Iron Man was the most developed of the three. Security firm Resecurity, which assisted in the investigation, found that the kit's infrastructure held 911 published build versions and roughly 2,360 phishing packages covering 130 countries and geographic areas, with the catalog receiving updates as recently as October 1, 2026. Its template library contained over 2,300 lure designs impersonating banks, retailers, delivery services, streaming platforms, and government agencies, including traffic and parking authorities. The kit also included a payment-card capture module that collected card numbers, expiry dates, and CVV codes from victims.
To block security researchers and automated scanners, the kits used geofencing, IP filtering lists, and fake CAPTCHA gates that stopped bots while letting real victims through. Operators also received real-time Telegram alerts whenever a victim entered credentials, and some ran live sessions to interact with victims as they responded to lures.
"Over 1 billion malicious email and SMS messages were sent since the start of 2026. More than 750 million of those were aimed directly at Microsoft customers." [Microsoft Digital Crimes Unit, October 2026]
Some campaigns also used device-code phishing, a technique that misuses Microsoft 365's standard device sign-in flow. Rather than stealing passwords directly, attackers tricked victims into entering a short device code, which gave them a valid login token and full access to the account. Microsoft has since recommended that organizations review whether device-code sign-in is necessary and consider restricting it through access policies.
The Takedown
The Florida court order gave Microsoft and Health-ISAC authority to seize and redirect the core domains behind YAM Store, CoGUI, and Iron Man. Microsoft deactivated more than 20,000 accounts linked to YAM Store and blocked over 100,000 domains used for impersonation and fraud. TRM Labs worked to trace and freeze cryptocurrency assets connected to the operation. Infrastructure removal was still continuing as of Tuesday.
Japan's National Police Agency had alerted Microsoft to the operation in late 2025, after a surge of fraud hit Japanese individuals and businesses. Japan ranked as the single most targeted country in the campaign, followed by the United States, Australia, and India. The healthcare sector, financial services companies, wholesale distributors, and IT firms absorbed the largest share of attacks.
No arrests have been announced.
What the wider pattern tells us
The YAM Store action follows a March 2026 takedown of Tycoon 2FA, a separate phishing platform that Europol and Microsoft dismantled together with law enforcement from Latvia, Lithuania, Portugal, Poland, Spain, and the United Kingdom. Tycoon 2FA used adversary-in-the-middle techniques to intercept login credentials and session cookies in real time, bypassing multi-factor authentication and reaching nearly 100,000 organizations since it first appeared in 2023. At its peak in November 2025, the platform was generating over 30 million phishing messages a month. That case resulted in a civil complaint naming Saad Fridi as the alleged creator.
Both operations ran on the same basic model: platforms that sold ready-made attack tools to buyers with little technical skill, letting them run large fraud campaigns cheaply. Microsoft advised organizations to treat email from education and nonprofit domains with extra care, since YAM Store sold cloud accounts tied to real .edu and .org tenants obtained through the domain-buying scheme, making fraudulent emails look like they came from real institutions.
According to a complaint filed by the US Federal Trade Commission (FTC), Digital Forensics Corporation (DFC), its owner Dmitry Belkin, and associated businesses allegedly misled victims who were already experiencing fear, emotional distress, and threats of having private images exposed.
According to the FTC complaint, DFC collected at least $60 million between February 2023 and July 2026. The company allegedly charged customers between $1,499 and $20,000 for services advertised as helping identify blackmailers, stop threats, and support investigations.
The complaint claims that the company misrepresented its investigative capabilities and the results it could achieve. Among the allegations is that DFC used fabricated investigative chat transcripts to make customers believe its investigators were actively communicating with suspected criminals.
The FTC also alleges that the company reused location information to create the impression that it had successfully tracked down perpetrators. Such tactic could lead customers to believe that meaningful investigative work was being conducted when the evidence presented to them did not support those claims.
Besides this, the complaint argues that customers were pressured into purchasing extra services. The company reportedly used positive reviews that were not genuine to strengthen its reputation and made obtaining refunds difficult for dissatisfied customers.
“Instead of communicating with the sextortionist through the victim's account, defendants routinely change the victim's account settings simply to block the sextortionist's communications. Instead of obtaining investigative information, defendants fabricate chat transcripts,” the complaint said.
According to the complaint, “Defendants falsely portray themselves as digital forensics experts, claiming they can track and identify sextortionists, prevent the spread of explicit material and coordinate with law enforcement to bring criminals to justice."
The FTC filed a lawsuit against DFC, Belkin, and several affiliated companies, accusing violations of consumer protection laws. A federal court temporarily halted the company's operations while the legal case proceeds. The agency is seeking action against the alleged deceptive practices.
The FTC also reported that the company advertised its services through search engines, video-sharing websites, and social media platforms, potentially reaching people actively searching for urgent help.
Remote access trojan (RAT) XWorm has developed into an advanced surveillance threat whose capabilities extend beyond data theft and remote system control. According to cyber security researchers at Netskope Threat Labs, recent versions of this malware contain plugins for tracking the location of victims, capturing live audio, controlling webcams, and controlling active browser sessions.
It was discovered in 2022 that XWorm facilitated the control of compromised systems by logging keystrokes, capturing screenshots, and executing remote payloads. The malware has been modified by its developers since its discovery, adding new features and releasing updated versions. According to Netskope, 1,236 detection events were recorded across 100 customer organisations during the third quarter of 2026, representing a fourfold increase from the same period in 2025.
The malware's expansion has been accompanied by an expansion of its plugin collection. In July 2025, 35 plugins were supported, but by October 2026, 46 plugins were supported, which provided increased capabilities for monitoring and interacting with victims' devices.
A cracking of the XWorm builder and subsequent release of the source code for version 6.4 in August 2025 resulted in the wider dissemination of the malware. Since then, researchers have identified multiple versions operating in the wild, including V6.4, V6.5, V7.2, and V7.4 The malware has been modified in several ways, including code protection, delivery methods, and the ability to evade security analysis.
There are approximately 35% of affected customers that are affiliated with financial services companies, according to Netskope. The majority of reported incidents have occurred in the United States, India, Brazil, Italy, Panama, and Brazil. HBrowser plugins pose a significant security risk due to their ability to operate within existing browser sessions rather than relying on stolen passwords.
Command-and-control channels of the malware are encrypted using AES, allowing for remote mouse clicks, keyboard inputs, and other interactions with the active browser. By continuously taking screenshots, attackers can gain access to accounts already logged in and potentially gain access to sensitive information. By collecting device location data without a visible consent request, the Maps plugin adds another layer of surveillance.
Netskope's analysis shows that it attempts to retrieve GPS coordinates, but when GPS coordinates are not available, it switches to IP-based geolocation. Microphone plugins allow for recording audio from selected recording devices and transmission to operators in encrypted, compressed data chunks. In addition to webcam recording, attackers may also monitor compromised devices without displaying obvious warnings to the user using these functions.
Continued Development Raises Security Concerns
As the malware has evolved, it has also undergone changes to make analysis and detection more challenging. Recent variants have introduced stronger code protection techniques, techniques for avoiding virtual analysis environments, and modifications to payload delivery and command-and-control communication.
By expanding the plugin collection, operators have increased the range of options they have for tailoring attacks to meet their objectives. NetSkope anticipates continued development of XWorm following the public release of its builder and source code, with further development likely following that. The increasing surveillance capabilities of malware also highlight the limitations associated with multi-factor authentication alone.
An attacker who controls an already authenticated browser session on an infected device may not be able to prevent access to open accounts even when additional login verification is performed. It is recommended that security teams strengthen endpoint monitoring, investigate unusual process and network activity, and restrict unauthorised outbound communications.
Network segmentation will also allow you to limit the spread of malware across other connected systems. Detecting endpoints, monitoring traffic, and responding to incidents in a timely manner remain crucial for identifying suspicious activity and containing compromised devices before they can be exploited further by attackers.
Norway's data protection authority has issued its largest fine to date, hitting Microsoft-owned advertising company Xandr with a NOK 92 million ($9.6 million) penalty for passing sensitive personal data belonging to Norwegian Grindr users through automated advertising auctions without a legal basis. The decision, signed October 2 by Datatilsynet Director General Line Coll and Head of International Tobias Judin, targets one of the most contested privacy questions in digital advertising: whether ad intermediaries can claim ignorance of how consent was collected by the apps they serve.
Grindr is a location-based dating app primarily used by gay, bisexual, trans, and queer people. For nearly two years, from July 2018 to April 2020, Xandr sat at the center of the app's advertising infrastructure, operating on both the buying and selling sides of real-time bidding. The process works fast and invisibly. The moment a user opened Grindr, the app passed their data through Xandr to a pool of companies competing in a split-second auction for the right to show that person an ad. Datatilsynet found that this relay included at minimum each user's advertising ID, IP address, and the fact of their Grindr use. Under GDPR, that last detail matters enormously. The authority concluded that being identifiable as a Grindr user is itself information that indicates sexual orientation, a category that European data law places under strict protection and requires explicit consent to process.
Xandr's defense rested on the argument that it believed Grindr had already collected consent from its users. Datatilsynet rejected that reasoning on a straightforward legal basis: Xandr was not a passive conduit but a joint controller alongside Grindr. Under GDPR's joint controller framework, both parties carry independent obligations to confirm a lawful basis exists before processing sensitive data. Xandr never verified that any such basis was in place, and the authority ruled that the company had no right to treat consent as someone else's responsibility. "Xandr omitted to verify that the consents from Grindr were valid, and did not do anything to ensure they had a legal basis for their own processing," Coll stated in the decision.
The investigation turned up a complicating detail. Xandr had been notified of the probe by Datatilsynet in February 2020. Despite that, the company deleted documentation about its processing of Grindr users' data between July 2020 and February 2023, when the authority sent a second information order. Xandr told investigators the deletion had occurred as part of its routine data retention policies. Datatilsynet refused to let that explanation close the gap, noting that the company knew an active investigation was underway when the records were removed.
In setting the penalty at NOK 92 million, Datatilsynet cited the duration of the violations, the direct financial benefit Xandr drew from the unlawful sharing, and the fact that thousands of Norwegian users had their sensitive data exposed to potentially thousands of companies without their knowledge. Crucially, the fine was calculated against Xandr's own annual turnover and not Microsoft's. The authority noted that the violations took place before Microsoft completed its acquisition of Xandr in June 2022, after AT&T sold the unit it had rebranded from AppNexus in 2019.
A Microsoft spokesperson mentioned that the investigation "focused on conduct that predates Microsoft's acquisition of Xandr," adding that interpretations and applications of legal standards have continued to evolve since then. The company said it is reviewing the decision and assessing its options. Xandr, which now operates as Microsoft Advertising, has three weeks to appeal to Norway's Privacy Appeals Board.
The case has roots in January 2020, when the Norwegian Consumer Council filed complaints against Grindr and five ad tech companies: AppNexus, MoPub, OpenX, AdColony, and Smaato. Austrian privacy rights organization noyb joined the action and celebrated the outcome, calling the decision "a major blow to the online adtech industry." This week's fine against Xandr is the downstream enforcement of a broader probe that, on the Grindr side, produced a NOK 65 million penalty against the app itself in 2021. Norway's Borgarting Court of Appeal upheld that fine against Grindr in October 2025 after the company challenged it through two rounds of litigation.
Grindr's data-sharing history has had consequences beyond Norwegian borders as well. In September 2026, the dating app agreed to pay £26 million to settle a UK class action brought by roughly 12,000 users who alleged the platform had shared information including HIV status, sexual orientation, ethnicity, and location with third-party advertising firms before 2020. The London lawsuit, filed in April 2024 by law firm Austen Hays, alleged violations of UK data protection law during roughly the same period covered by the Norwegian proceedings.
The Datatilsynet decision marks one of the more pointed statements yet from a European privacy regulator on how far down an ad supply chain accountability can reach. By treating Xandr as a joint controller rather than an infrastructure provider, the authority made clear that operating the pipes through which sensitive data flows carries its own legal obligations, regardless of which company collected the data in the first place.