Cybersecurity experts have disclosed info about a suspected AI-based malware named “Slopoly” used by threat actor Hive0163 for financial motives.
IBM X-Force researcher Golo Mühr said, “Although still relatively unspectacular, AI-generated malware such as Slopoly shows how easily threat actors can weaponize AI to develop new malware frameworks in a fraction of the time it used to take,” according to the Hacker News.
Hive0163's attacks are motivated by extortion via large-scale data theft and ransomware. The gang is linked with various malicious tools like Interlock RAT, NodeSnake, Interlock ransomware, and Junk fiction loader.
In a ransomware incident found in early 2026, the gang was found installing Slopoly during the post-exploit phase to build access to gain persistent access to the compromised server.
Slopoly’s detection can be tracked back to PowerShell script that may be installed in the “C:\ProgramData\Microsoft\Windows\Runtime” folder via a builder. Persistence is made via a scheduled task called “Runtime Broker”.
Experts believe that that malware was made with an LLM as it contains extensive comments, accurately named variables, error handling, and logging.
There are signs that the malware was developed with the help of an as-yet-undetermined large language model (LLM). This includes the presence of extensive comments, logging, error handling, and accurately named variables.
The comments also describe the script as a "Polymorphic C2 Persistence Client," indicating that it's part of a command-and-control (C2) framework.
According to Mühr, “The script does not possess any advanced techniques and can hardly be considered polymorphic, since it's unable to modify its own code during execution. The builder may, however, generate new clients with different randomized configuration values and function names, which is standard practice among malware builders.”
The PowerShell script works as a backdoor comprising system details to a C2 server. There has been a rise in AI-assisted malware in recent times. Slopoly, PromptSpy, and VoidLink show how hackers are using the tool to speed up malware creation and expand their operations.
IBM X-Force says the “introduction of AI-generated malware does not pose a new or sophisticated threat from a technical standpoint. It disproportionately enables threat actors by reducing the time an operator needs to develop and execute an attack.”
Meta announced that it has removed more than 150,000 accounts tied to organized scam centers operating in Southeast Asia, describing the move as part of a large international effort to disrupt coordinated online fraud networks.
The enforcement action was carried out with assistance from authorities in several countries. Law enforcement agencies and government partners involved in the operation included officials from Thailand, the United States, the United Kingdom, Canada, South Korea, Japan, Singapore, the Philippines, Australia, New Zealand, and Indonesia. According to Meta, the joint effort resulted in 21 individuals being arrested by the Royal Thai Police.
This latest crackdown builds on an earlier pilot initiative launched in December 2025. During that initial phase, Meta removed approximately 59,000 accounts, Pages, and Groups from its platforms that were connected to similar fraudulent activity. The earlier investigation also led to the issuance of six arrest warrants by authorities.
In a statement explaining the action, Meta said that online scams have grown increasingly complex and organized over recent years. Criminal networks, often operating from countries such as Cambodia, Myanmar, and Laos, have established large scam compounds that function in many ways like organized business operations. These groups typically use structured teams, scripted communication strategies, and digital tools designed to evade detection while targeting victims on a global scale. According to the company, the impact of such scams extends far beyond financial loss, as they can severely disrupt lives and weaken trust in digital communication platforms.
Alongside the enforcement action, Meta also announced several new safety features aimed at helping users identify and avoid scam attempts.
One of these tools introduces new warning messages on Facebook that notify users when they receive communication from accounts that display characteristics commonly linked to fraudulent activity. Another safeguard has been introduced on WhatsApp to address a tactic used by scammers who attempt to persuade users to scan a QR code. If successful, this method can link the attacker’s device to the victim’s WhatsApp account, allowing them to access messages and impersonate the account holder. Meta said its system will now notify users when suspicious device-linking requests are detected.
The company is also expanding scam detection on Messenger. When a conversation with a new contact begins to resemble known fraud patterns, such as questionable job opportunities or requests that appear unusual, the platform may prompt users to share recent messages so that an artificial intelligence system can evaluate whether the interaction matches known scam behavior.
Meta also disclosed broader enforcement statistics related to scams on its platforms. Throughout 2025, the company removed more than 159 million advertisements that violated its policies related to fraud and deception. In addition, it disabled approximately 10.9 million Facebook and Instagram accounts that investigators linked to organized scam centers.
To further address fraudulent activity, the company said it plans to expand its advertiser verification program. The goal of this measure is to increase transparency by confirming the identities of advertisers and reducing the ability of malicious actors to misrepresent themselves while running advertisements.
The announcement comes at a time when governments are intensifying efforts to address online fraud. The UK Government recently introduced a new Online Crime Centre designed to focus specifically on cybercrime, including scams connected to organized fraud operations operating in regions such as Southeast Asia, West Africa, Eastern Europe, India, and China.
The centre will bring together specialists from several sectors, including government agencies, law enforcement, intelligence services, financial institutions, mobile network providers, and major technology companies. The initiative is expected to begin operations next month.
The project forms part of the United Kingdom’s broader Fraud Strategy 2026–2029, a policy framework aimed at strengthening the country’s response to fraud and financial crime. As part of this strategy, authorities plan to use artificial intelligence to detect emerging scam patterns, identify suspicious bank transfers more quickly, and deploy “scam-baiting” chatbots designed to interact with fraudsters in order to gather intelligence.
Officials said the new centre, supported by more than £30 million in funding, will focus on identifying the digital infrastructure used by organized crime groups. This includes tracking fraudulent accounts, websites, and phone numbers used in scam operations. Authorities aim to shut down these resources at scale by blocking scam messages, freezing financial accounts linked to criminal activity, removing fraudulent social media profiles, and disrupting scam networks at their source.
Agentic web browsers that use AI tools to autonomously do tasks across various websites for a user could be trained and fooled into phishing attacks. Hackers exploit the AI browsers’ tendency to assert their actions and deploy them against the same model to remove security checks.
According to security expert Shaked Chen, “The AI now operates in real time, inside messy and dynamic pages, while continuously requesting information, making decisions, and narrating its actions along the way. Well, 'narrating' is quite an understatement - It blabbers, and way too much!,” the Hacker News reported. Agentic Blabbering is an AI browser that displays what it sees, thinks, and plans to do next, and what it deems safe or a threat.
By hacking the traffic between the AI services on the vendor’s servers and putting it as input to a Generative Adversarial Network (GAN), it made Perplexity’s Comet AI browser fall prey to a phishing attack within four minutes.
The research is based on established tactics such as Scamlexity and VibeScamming, which revealed that vibe-coding platforms and AI browsers can be coerced into generating scam pages and performing malicious tasks via prompt injection.
There is a change in the attack surface as a result of the AI agent managing the tasks without frequent human oversight, meaning that a scammer no longer has to trick a user. Instead, it seeks to deceive the AI model itself.
Chen said, “If you can observe what the agent flags as suspicious, hesitates on, and more importantly, what it thinks and blabbers about the page, you can use that as a training signal.” Chen added that the “scam evolves until the AI Browser reliably walks into the trap another AI set for it."
The aim is to make a “scamming machine” that improves and recreates a phishing page until the agentic browser accepts the commands and carries out the hacker’s command, like putting the victim’s passwords on a malicious web page built for refund scams.
Guardio is concerned about the development, saying that, “This reveals the unfortunate near future we are facing: scams will not just be launched and adjusted in the wild, they will be trained offline, against the exact model millions rely on, until they work flawlessly on first contact.”
Cybersecurity researchers have identified a previously undocumented malware strain called KadNap that is primarily infecting Asus routers and other internet-facing networking devices. The attackers are using these compromised systems to form a botnet that routes malicious traffic through residential connections, effectively turning infected hardware into anonymous proxy nodes.
The threat was first observed in real-world attacks in August 2025. Since that time, the number of affected devices has grown to more than 14,000, according to investigators at Black Lotus Labs. A large share of infections, exceeding 60 percent, has been detected within the United States. Smaller groups of compromised devices have also been identified across Taiwan, Hong Kong, Russia, the United Kingdom, Australia, Brazil, France, Italy, and Spain.
Researchers report that the malware uses a modified version of the Kademlia Distributed Hash Table (DHT) protocol. This peer-to-peer networking technology enables the attackers to conceal the true location of their infrastructure by distributing communication across multiple nodes. By embedding command traffic inside decentralized peer-to-peer activity, the operators can evade traditional network monitoring systems that rely on detecting centralized servers.
Within this architecture, infected devices communicate with one another using the DHT network to discover and establish connections with command-and-control servers. This design improves the botnet’s resilience, as it reduces the chances that defenders can disable operations by shutting down a single control point.
Once a router or other edge device has been compromised, the system can be sold or rented through a proxy platform known as Doppelgänger. Investigators believe this service is a rebranded version of another proxy operation called Faceless, which previously had links to TheMoon router malware. According to information published on the Doppelgänger website, the service launched around May or June 2025 and advertises access to residential proxy connections in more than 50 countries, promoting what it claims is complete anonymity for users.
Although many of the observed infections involve Asus routers, researchers found that the malware operators are also capable of targeting a wider range of edge networking equipment.
The attack chain begins with the download of a shell script named aic.sh, retrieved from a command server located at 212.104.141[.]140. This script initiates the infection process by connecting the compromised device to the botnet’s peer-to-peer network.
To ensure the malware remains active, the script establishes persistence by creating a cron task that downloads the same script again at the 55-minute mark of every hour. During this process, the file is renamed “.asusrouter” and executed automatically.
After persistence is secured, the script downloads an ELF executable, renames it “kad,” and runs it on the device. This program installs the KadNap malware itself. The malware is capable of operating on hardware that uses ARM and MIPS processor architectures, which are commonly found in routers and networking appliances.
KadNap also contacts a Network Time Protocol (NTP) server to retrieve the current system time and store it along with the device’s uptime. These values are combined to produce a hash that allows the malware to identify and connect with other peers within the decentralized network, enabling it to receive commands or download additional components.
Two additional files used during the infection process, fwr.sh and /tmp/.sose, contain instructions that close port 22, which is the default port used by Secure Shell (SSH). These files also extract lists of command server addresses in IP-address-and-port format, which the malware uses to establish communication with control infrastructure.
According to researchers, the use of the DHT protocol provides the botnet with durable communication channels that are difficult to shut down because its traffic blends with legitimate peer-to-peer network activity.
Further examination revealed that not every infected device communicates with every command server. This suggests the attackers are segmenting their infrastructure, possibly grouping devices based on hardware type or model.
Investigators also noted that routers infected with KadNap may sometimes contain multiple malware infections simultaneously. Because of this overlap, it can be challenging to determine which threat actor is responsible for particular malicious activity originating from those systems.
Security experts recommend that individuals and organizations operating small-office or home-office (SOHO) routers take several precautions. These include installing firmware updates, restarting devices periodically, replacing default administrator credentials, restricting management access, and replacing routers that have reached end-of-life status and no longer receive security patches.
Researchers concluded that KadNap’s reliance on a peer-to-peer command structure distinguishes it from many other proxy-based botnets designed to provide anonymity services. The decentralized approach allows operators to remain hidden while making it significantly harder for defenders to detect and block the network.
In a separate report, security analysts at Cyble disclosed a new Linux malware threat named ClipXDaemon.
The malware targets cryptocurrency users by intercepting wallet addresses that victims copy to their clipboard and secretly replacing them with addresses controlled by attackers. This type of threat is commonly known as clipper malware.
ClipXDaemon is distributed through a Linux post-exploitation framework called ShadowHS and has been described as an automated clipboard-hijacking tool designed specifically for systems running Linux X11 graphical environments.
The malware operates entirely in memory, which reduces traces on disk and improves its ability to remain undetected. It also employs several stealth techniques, including disguising its process names and deliberately avoiding execution in Wayland sessions.
This design choice is intentional because Wayland’s security architecture introduces stricter restrictions on clipboard access. Applications must usually involve explicit user interaction before they can read clipboard contents. By disabling itself when Wayland is detected, the malware avoids triggering errors or suspicious behavior.
Once active in an X11 session, ClipXDaemon continuously checks the system clipboard every 200 milliseconds. If it detects a copied cryptocurrency wallet address, it immediately substitutes it with an attacker-controlled address before the victim pastes the information.
The malware currently targets a wide range of digital currencies, including Bitcoin, Ethereum, Litecoin, Monero, Tron, Dogecoin, Ripple, and TON.
Researchers noted that ClipXDaemon differs significantly from traditional Linux malware families. It does not include command-and-control communication, does not send beaconing signals to remote servers, and does not rely on external instructions to operate.
Instead, the malware generates profits directly by manipulating cryptocurrency transactions in real time, silently redirecting funds when victims paste compromised wallet addresses during transfers.
Cybersecurity experts have warned about a new campaign where hackers are exploiting FortiGate Next-Gen Firewall (NGFW) devices as entry points to hack target networks.
The campaign involves abusing the recently revealed security flaws or weak password to take out configuration files. The activity has singled out class linked to government, healthcare, and managed service providers.
According to experts, “FortiGate network appliances have considerable access to the environments they were installed to protect. In many configurations, this includes service accounts which are connected to the authentication infrastructure, such as Active Directory (AD) and Lightweight Directory Access Protocol (LDAP).”
"This setup can enable the appliance to map roles to specific users by fetching attributes about the connection that’s being analyzed and correlating with the Directory information, which is useful in cases where role-based policies are set or for increasing response speed for network security alerts detected by the device,” the experts added.
But the experts noticed that this access could be compromised by hackers who hack into FortiGate devices via flaws or misconfigurations.
In one attack, the hackers breached a FortiGate appliance last year in November to make a new local admin account “support” and built four new firewall policies that let the account to travel across all zones without any limitations.
The hacker then routinely checked device access. “Evidence demonstrates the attacker authenticated to the AD using clear text credentials from the fortidcagent service account, suggesting the attacker decrypted the configuration file and extracted the service account credentials,” SentinelOne reported.
After this, hacker leveraged the service account to verify the target's environment and put rogue workstations in the AD for further access. Following this, network scanning started and the breach was found, and lateral movement was stopped.
The contents of the NTDS.dit file and SYSTEM registry hive were exfiltrated to an external server ("172.67.196[.]232") over port 443 by the Java malware, which was triggered via DLL side-loading.
SentinelOne said that “While the actor may have attempted to crack passwords from the data, no such credential usage was identified between the time of credential harvesting and incident containment.”