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Volt Typhoon Still Targeting Critical Infrastructure, Report Finds

 


Cybersecurity investigators are warning that the threat actor widely tracked as Volt Typhoon may still have hidden access inside segments of U.S. critical infrastructure, and some compromises could remain undiscovered permanently.

For nearly three years, U.S. military and federal law enforcement agencies have worked to identify and remove intrusions affecting electricity providers, water utilities and other essential service operators in strategically sensitive regions. Despite these sustained efforts, a newly released industry assessment suggests that the full scope of the activity may never be completely known.

In its latest annual threat report, industrial cybersecurity firm Dragos stated that actors associated with Volt Typhoon continued targeting American utility networks into 2025. The company indicated that, even with heightened public scrutiny and coordinated government response, the campaign remains ongoing.

Rob Lee, chief executive of Dragos, said in recent media briefings that the group is actively studying infrastructure environments and establishing footholds not only in the United States but also across allied nations. When asked whether every previously breached organization could ultimately detect and eliminate the intruders, Lee responded that certain compromised sites in both the U.S. and NATO countries may never be identified.

U.S. officials have previously assessed that the objective of Volt Typhoon is to position access within operational technology environments in advance of any geopolitical conflict. Operational technology systems manage physical processes such as electricity transmission, water treatment and industrial production. By embedding themselves in these networks ahead of time, attackers could potentially disrupt or delay U.S. military mobilization during a crisis. Lee added that the group prioritizes strategically significant entities and works to preserve long-term, covert access.

He also noted that regulatory measures expected over the next three to five years may strengthen detection standards across the sector. Larger electricity providers often possess advanced monitoring capabilities and incident response programs that improve their ability to uncover and expel actors. However, many smaller public utilities, particularly in the water sector, lack comparable technical resources. In Lee’s assessment, while investigations are technically possible at such organizations, it is unlikely that all will reach the maturity needed to detect and remove deeply concealed compromises. He suggested that, at the current pace, some portion of infrastructure may remain infiltrated.

China has rejected allegations linking it to Volt Typhoon. Nonetheless, previous U.S. government investigations reported discovering evidence of concealed access in infrastructure systems in Guam and in proximity to American military installations, raising concerns about strategic intent. Officials have also acknowledged that the total number of affected entities is unknown and that any publicly cited figures likely underestimate the scale.

The Dragos report further describes another activity cluster, referred to by the company as SYLVANITE, which allegedly secures initial entry into infrastructure networks before access is leveraged by Volt Typhoon. According to the firm, this activity has targeted operational technology systems across North America, Europe, South Korea, Guam, the Philippines and Saudi Arabia, affecting oil and gas operations, water utilities, electricity generation and transmission entities, and manufacturing organizations.

Lee characterized this second group as facilitating access rather than directly causing operational disruption, effectively preparing entry points for subsequent exploitation.

Researchers also linked recent high-profile vulnerability exploitation campaigns to these actors, including flaws in widely deployed enterprise software from Ivanti and the Trimble Cityworks geographic information system platform developed by Trimble. A year ago, the federal civilian cybersecurity agency instructed government bodies to urgently remediate a Cityworks vulnerability, after which private security firms reported that Chinese-linked actors had used it to compromise multiple local government networks.

Dragos warned that unauthorized access to geographic information system data can provide detailed infrastructure mapping and asset intelligence. Such information, if exploited, could enable adversaries to design targeted and potentially disruptive industrial control system operations. The firm concluded that Volt Typhoon’s more recent activity reflects movement beyond conventional IT data theft toward direct engagement with operational technology devices, including the collection of sensor readings and operational parameters, heightening concerns for essential service resilience.


Critical better-auth Flaw Enables API Key Account Takeover

 

A flaw in the better-auth authentication library could let attackers take over user accounts without logging in. The issue affects the API keys plugin and allows unauthenticated actors to generate privileged API keys for any user by abusing weak authorization logic. Researchers warn that successful exploitation grants full authenticated access as the targeted account, potentially exposing sensitive data or enabling broader application compromise, depending on the user’s privileges. 

The better-auth library records around 300,000 weekly downloads on npm, making the issue significant for applications that rely on API keys for automation and service-to-service communication. Unlike interactive logins, API keys often bypass multi-factor authentication and can remain valid for long periods. If misused, a single key can enable scripted access, backend manipulation, or large-scale impersonation of privileged users. 

Tracked as CVE-2025-61928, the vulnerability stems from flawed logic in the createApiKey and updateApiKey handlers. These functions decide whether authentication is required by checking for an active session and the presence of a userId in the request body. When no session exists but a userId is supplied, the system incorrectly skips authentication and builds user context directly from attacker-controlled input. This bypass avoids server-side validation meant to protect sensitive fields such as permissions and rate limits. 

In practical terms, an attacker can send a single request to the API key creation endpoint with a valid userId and receive a working key tied to that account. The same weakness allows unauthorized modification of existing keys. Because exploitation requires only knowledge or guessing of user identifiers, attack complexity is low. Once obtained, the API key allows attackers to bypass MFA and operate as the victim until the key is revoked. 

A patched version of better-auth has been released to fix the authorization checks. Organizations are advised to upgrade immediately, rotate potentially exposed API keys, review logs for suspicious unauthenticated requests, and tighten key governance through least-privilege permissions, expiration policies, and monitoring. 

The incident highlights broader risks tied to third-party authentication libraries. Authorization flaws in widely adopted components can silently undermine security controls, reinforcing the need for continuous validation, disciplined credential management, and zero-trust approaches across modern, API-driven environments.

Indonesia Hit by $2m Fraud Wave Using Fake ‘Coretax’ Tax Apps

 

A massive fraud campaign abusing Indonesia’s official Coretax tax platform has siphoned off an estimated 1.5–2 million dollars in losses nationwide, highlighting how cybercriminals now weaponize public digital services at industrial scale. 

Launched around July 2025 and ramped up ahead of the 2026 tax filing season, the operation preyed on taxpayers who believed they were interacting with legitimate Coretax channels. Although Coretax is only available as a web service, victims were deceived into thinking an official mobile app existed, turning their smartphones into entry points for financial theft. This gap between user perception and the platform’s real distribution model became the core social engineering hook.

According to Group-IB, the attackers built a multi-stage attack chain that blended classic phishing with modern mobile malware techniques. It started with phishing websites that visually mimicked the Coretax portal and other trusted brands, then continued via WhatsApp messages and calls from impostors posing as tax officials. These contacts pushed users to download Android application packages (APKs) masquerading as Coretax tools for filing or synchronizing tax data. Once installed, the malicious apps granted remote access, allowing fraudsters to control infected devices, freeze screens, and intercept sensitive data.

The campaign has been linked to the GoldFactory threat cluster, known for deploying advanced Android remote access trojans such as Gigabud.RAT and MMRat. Investigators uncovered 228 new malware samples tied to the operation, underlining the industrialized nature of the scheme. Beyond Coretax, the same infrastructure impersonated more than 16 reputable brands, including government services, airlines, pension funds, and energy providers, significantly widening the pool of potential victims. This brand-hopping strategy enabled attackers to reuse tooling while constantly refreshing lures.

At its peak, the operation aimed at roughly 67 million Indonesian taxpayers and, more broadly, at 287 million individuals exposed to abused brands across the country. While the overall compromise rate remained relatively low—around 0.025% of users—the scale of the population meant financial losses and associated costs still reached between 1.5 and 2 million dollars. Among financial institutions protected by Group-IB, predictive detection and layered defenses limited successful fraud to just 0.027% of malware-compromised devices. This illustrates how early detection and behavioral analysis can sharply reduce downstream financial impact.

Researchers warn that the operation appears to follow a malware-as-a-service model, supported by a centralized framework that has already generated nearly a thousand phishing URLs. The same toolkit could easily be repurposed against taxpayers and banking customers in other countries, with Thailand, Vietnam, the Philippines, and South Africa cited as likely next targets. For Indonesian users, the key defense is to remember that Coretax does not have a mobile app and is only accessible via official government websites. Verifying domains, refusing APK installations sent over messaging apps, and questioning unsolicited “tax officer” calls are now critical to staying safe during tax season.

Enhanced Surveillance Functions Signal a Strategic Shift in Remcos RAT Activity


 

It is difficult to discern the quiet recalibration of remote access malware that occurs without spectacle, but its consequences often appear in plain sight. The newly identified variant of Remcos RAT illustrates this progression clearly and unnervingly. 

In its current architecture, the updated strain focuses on immediacy and persistence instead of serving as passive collectors of stolen information. With its newly designed operational design promoting direct, continuous communication with attacker-controlled infrastructure, it allows for the observation of compromised Windows systems in real time rather than after the incident has occurred. This shift does more than simply represent a routine upgrade.

By moving away from the traditional method of locally caching harvested data, the malware reduces the amount of digital residue typically left behind by investigators. By transmitting information in near real time, compromise and exploitation can be minimized. 

The latest build enhances this capability by enabling live webcam streaming and instantaneous keystroke transmission, creating active surveillance endpoints on infected machines. Therefore, the variant reinforces a broader trend within the threat landscape which places more importance on speed, stealth, and sustained visibility over simple data exfiltration.

According to Point Wild's Lat61 Threat Intelligence Team, the latest Remcos iteration has been designed with a deliberate focus on runtime concealment and forensic minimization in mind. In contrast to the traditional method of embedding webcam footage within the core payload, a streaming module is retrieved and executed only on operator instruction, thereby minimizing its exposure during routine scanning.

The handling of command-and-control configuration data, which is decrypted solely in memory, as opposed to writing it to disk, is also significant. In combination with dynamic API resolution, this approach further complicates static analysis. As opposed to hard-coding Windows API references, malware resolves and decrypts them during execution, thereby frustrating signature-based detection and impeding reverse engineering. 

Additionally, the variant maintains its stealth posture by systematically removing artifacts associated with persistence mechanisms. Screenshots, audio captures, keylogging outputs, browser cookies, and registry entries are purged prior to termination.

The malware may also generate a temporary Visual Basic script to enable the deletion of proprietary or operational files before self-exiting, thereby reducing the residual indicators investigators might otherwise be able to utilize. As researchers observe, the malware has continuously refined its evasion and operational depths, illustrating its continued relevance in the remote access trojan ecosystem. 

During the execution phase, the malware conducts privilege assessments in order to determine the level of system access available for subsequent behavior based upon the privilege assessment. By utilizing this conditional logic, decisions regarding privilege escalation are influenced and high-impact actions can be executed, including the modification of protected directories, changes to registry keys, deployment of persistence mechanisms, or interference with security services—activities that typically require elevated privileges.

By tailoring its behavior to the access context, the malware enhances its survivability and effectiveness within compromised environments by increasing its survivability and effectiveness. As part of initialization routines, intent is obscured until execution is well underway.

As part of the configuration storage process, the binary stores parameters in encrypted or compressed form, allowing parameters to be decrypted only when the command-and-control infrastructure is established.

A layered sequence is created by setting persistence mechanisms, dynamically loading APIs, and selectively activating operational capabilities, thus concealing the full range of functionality during preliminary inspection. These architectural decisions reinforce Remcos RAT's primary objective of providing sustained, covered access accompanied by comprehensive data theft. This malware offers capabilities such as credential harvesting, real-time surveillance, and structured data exfiltration, allowing operators to extract sensitive information as well as maintain interactive control over compromised systems. 

Remcos' current form represents the next evolution of remote access malware—one where stealth, adaptability, and runtime obfuscation define the next phase in this evolving threat landscape. In addition to its layered execution chain, the malware performs a structured privilege assessment prior to initiating high-impact operations. 

By granting elevated rights, it is able to modify registry keys, deploy persistence mechanisms in protected directories, and interfere with or disable local security protocols. In order to prevent multiple concurrent executions of Rmc-GSEGIF, a uniquely named mutex is instantiated, thus ensuring operational stability and reducing the possibility that anomalous behavior may reveal the infection. 

Similarly, the command-and-control infrastructure is protected from direct examination. A malware binary does not contain a readable endpoint address, instead it stores an encrypted C2 address within the binary. As the string is reconstructed in memory during runtime, it can be utilized immediately to establish outbound communication via HTTP or raw TCP channels. 

Through the application of transient reconstruction, static indicators are minimized and the window for intercepting configuration artifacts prior to network activity is narrowed. Following the completion of surveillance and exfiltration tasks, the malware moves to a cleaning phase intended to reduce the possibility of forensic reconstruction. 

The keylogging outputs, screenshots, and audio recordings generated during the operation are systematically deleted, as well as cookies and registry entries associated with persistent access. To complete the self-erasure process, the malware drops a temporary script in the %TEMP% directory which is tasked with deleting remaining executable components before terminating the process. 

As a result of this staged removal mechanism, the evidentiary trail is fragmented, further complicating the analysis after the incident. It is noted by Point Wild researchers that incrementally refined yet consistent refinements of these techniques reflect a sustained commitment to operational resilience and stealth. 

As Remcos continues to evolve, they point out, Remcos reinforces its status as a flexible and enduring remote access trojan. A security team should intensify monitoring of anomalous outbound network connections and unauthorized registry modifications - indicators that may indicate the presence of run-time-obfuscated threats within enterprise environments. 

Among the key elements of the malware’s defensive architecture is the deliberate elimination of plaintext indicators. In the binary, the command-and-control endpoint is not stored in readable form, making it difficult to extract static strings, detect antivirus infections using signatures, and harvest indicators easily.

It is instead the C2 address (IP and port) that is encoded as an encrypted byte array during execution, which is subsequently reconstructed in memory by a byte-wise XOR operation before being sent to the networking layer for outbound communication. Further reducing static visibility, the malware dynamically loads WININET.dll at runtime in place of declaring imports beforehand, and uses the decrypted endpoint to communicate via HTTP or TCP. 

By implementing a transient reconstruction model, critical infrastructure details are reconstructed in memory in an ephemeral manner. This design philosophy is also applied to its surveillance modules. Keyloggers online follow the same structural logic as offline predecessors, but they do not rely on disk persistence.

Instead of writing intercepted keystrokes to local storage, they are packaged in structured payloads and sent directly through the established C2 channel, instead of writing them to local storage. User inputs are intercepted by input hooks, which are streamed to an attacker-controlled infrastructure in real time. 

In addition to minimizing forensic artifacts on the victim's file system by bypassing local file creation, the malware offers operators continuous visibility into active sessions, including browser-based interactions and credentials entry fields. As part of modularization, webcam monitoring capabilities remain flexible and minimize the static footprint of the system. 

Video capture logic is not embedded in the primary executable; rather, upon receiving a webcam-related command, it retrieves a dedicated Dynamic Link Library from the C2 server. After the module is delivered to memory or temporarily to disk, depending on configuration, the module is dynamically loaded with Windows API functions such as LoadLibrary, and specific exported routines are resolved with GetProcAddress. 

A video capture device is initialized, frames are collected, compressed or encoded, and the resulting data is returned to the core process after encoding or compressing. By using the compartmentalized approach, the captured output can be transmitted in segmented form over the existing obfuscated communication channel while maintaining a static signature for the primary payload that does not have to be expanded. 

As an example of additional extensibility, credential recovery plugins, including modules that expose functions such as FoxMailRecovery, that are loaded on demand in order to retrieve stored account information from targeted applications, exhibit additional extensibility. In order to execute and handle commands, a structured, text-based protocol is followed, encapsulating instructions and outputs within predefined string tokens prior to transmission. 

As a result of invoking specific execution flags, such as /sext, the malware temporarily writes the output of a command to a randomly named file within the malware's working directory when it is invoked. By reading, exfiltrating, and deleting the contents, operational continuity and persistent traces can be maintained. In conjunction with these mechanisms, a coherent architectural strategy is demonstrated that emphasizes runtime decryption, modular capability loading, and artifact suppression. 

By making sure sensitive configuration data, surveillance outputs, and auxiliary functionality are either memory-resident or transient, the new Remcos variant emphasizes the importance of security, adaptability, and sustained remote control in compromised Windows environments. These developments take together to illustrate an overall operational shift that cannot be ignored by defenders. 

The Remcos variant exemplifies a class of threats designed to run primarily in memory, minimize static indicators, and adapt dynamically to host conditions as needed. The conventional signature-based controls and perimeter-focused monitoring will not be sufficient to provide sufficient protection against runtime-obfuscated activities on their own. 

In addition to continuous monitoring of anomalous outbound traffic patterns, suspicious API resolutions in memory, unauthorized registry modifications, and irregular module loading events, security teams should prioritize behavioral detection strategies. 

The ability to detect subtle persistence and data exfiltration attempts will be largely dependent on improving endpoint detection and response capabilities, enforcing least privilege access policies, and analyzing telemetry across network and host layers. In an increasingly modular and stealthy environment, proactive detection engineering and disciplined threat hunting will be vital to reducing dwell times and minimizing operational impact.

Bithumb Mistakenly Credits Users With Billions in Bitcoin During Promotion Error

 




A promotional campaign at South Korean cryptocurrency exchange Bithumb turned into a large scale operational incident after a data entry mistake resulted in users receiving bitcoin instead of a small cash-equivalent reward.

Initial reports suggested that certain customers were meant to receive 2,000 Korean won as part of a routine promotional payout. Instead, those accounts were credited with 2,000 bitcoin each. At current market valuations, 2,000 bitcoin represents roughly $140 million per account, transforming what should have been a minor incentive into an extraordinary allocation.

Bithumb later confirmed that the scope of the error was larger than early estimates. According to the exchange, a total of 620,000 bitcoin was mistakenly credited to 695 user accounts. Based on prevailing prices at the time of the incident, that amount corresponded to approximately $43 billion in value. The exchange stated that the issue stemmed from an internal processing mistake and was not connected to external hacking activity or a breach of its security infrastructure. It emphasized that customer asset custody systems were not compromised.

The sudden appearance of large bitcoin balances had an immediate effect on trading activity within the platform. Bithumb reported that the incident contributed to a temporary decline of about 10 percent in bitcoin’s price on its exchange, as some affected users rapidly sold the credited assets. To contain further disruption, the company restricted withdrawals and suspended certain transactions linked to the impacted accounts. It stated that 99.7 percent of the mistakenly issued bitcoin has since been recovered.

The event has revived discussion around the concept often described as “paper bitcoin.” On centralized exchanges, user balances are reflected in internal ledgers rather than always corresponding to coins held in individual blockchain wallets. In practice, exchanges may not maintain a one-to-one on-chain reserve for every displayed balance at every moment. This structural model has previously drawn criticism, most notably during the collapse of Mt. Gox in 2014, which was then the largest bitcoin exchange globally. Its failure exposed major discrepancies between reported and actual holdings.

Data from blockchain analytics firm Arkham Intelligence indicates that Bithumb currently controls digital assets worth approximately $5.3 billion. That figure is substantially lower than the $43 billion temporarily reflected in the erroneous credits, underscoring that the allocation existed within internal accounting records rather than as newly transferred blockchain assets.

Observers on social media platform X questioned how such a large discrepancy could occur without automated safeguards preventing the issuance. Bithumb has faced security challenges in the past. In 2017, an employee’s device was compromised, exposing customer data later used in phishing attempts. In 2018, around $30 million in cryptocurrency was stolen in an attack attributed to the Lazarus Group, an organization widely linked to North Korea. A further breach in 2019 resulted in losses of roughly $20 million and was initially suspected to involve insider participation. In each instance, Bithumb stated that it compensated affected users for lost funds, though earlier incidents included exposure of personal information.

Beyond cybersecurity events, the exchange has also been subject to regulatory scrutiny, including investigations related to alleged fraud, embezzlement, and promotional practices. Reports indicate it was again raided this week over concerns involving misleading advertising.

Bithumb maintains that no customer ultimately suffered a net financial loss from the recent error, though the price movement raised concerns about potential liquidations for leveraged traders. A comparable situation occurred at decentralized exchange Paradex, which reversed trades following a pricing malfunction.

The incident unfolds amid broader market strain, with digital asset prices astronomically below their October peaks and political debate intensifying around cryptocurrency-linked business interests connected to U.S. public figures. Recent disclosures from the U.S. Department of Justice concerning Jeffrey Epstein’s early involvement in cryptocurrency ventures have further fueled online speculation and conspiracy narratives across social platforms.

Shadow Campaigns Expose 37 Nations to State-Linked Cyber Espionage Operations

 

A state-backed cyber espionage effort known as the “Shadow Campaigns” has quietly breached government bodies and critical infrastructure across 37 countries. Investigators from Palo Alto Networks’ Unit 42 assess that the activity began by early 2024 and likely originates from Asia. While no formal attribution has been made, the actor is tracked as TGR-STA-1030 or UNC6619. The campaign is marked by stealth and persistence, focusing on long-term intelligence gathering rather than overt disruption. 

At least 70 organizations were confirmed compromised, primarily government ministries and agencies handling finance, trade, energy, mining, immigration, border control, diplomacy, and law enforcement. Victims span multiple regions, including Brazil’s Ministry of Mines and Energy, Mexican and Bolivian government-linked entities, infrastructure in Panama, and agencies across Europe such as those in Germany, Italy, Poland, and Czechia. Other affected organizations include an Indonesian airline, Malaysian government departments, Mongolian law enforcement, a Taiwanese power equipment supplier, and critical infrastructure entities across parts of Africa. 

Reconnaissance activity was even broader. Between November and December, infrastructure linked to 155 countries was scanned. Systems associated with Australia’s Treasury, Afghanistan’s Ministry of Finance, Nepal’s prime minister’s office, and hundreds of European Union and German government IP addresses showed signs of probing. Analysts noted spikes in activity during politically sensitive periods, including the U.S. government shutdown in October 2025 and the lead-up to Honduras’ national election, suggesting interest in geopolitical developments. Initial access often relied on highly targeted phishing emails referencing internal government matters. 

These messages delivered malware via compressed files hosted on Mega.nz, deploying a loader called Diaoyu that could fetch Cobalt Strike and VShell payloads after performing evasion checks. The group also exploited at least 15 known vulnerabilities in products such as Microsoft Exchange Server, SAP Solution Manager, D-Link devices, and Windows systems. A key finding was a custom Linux kernel rootkit, ShadowGuard, which operates at the kernel level to hide malicious activity and evade detection. 

Infrastructure supporting the campaign used legitimate VPS providers in the U.S., Singapore, and the U.K., along with relay servers and anonymization layers. Researchers conclude the actor is highly capable and remains an ongoing threat to governments and critical services worldwide.

Nitrogen Ransomware Bug Locks Out Attackers from Victims' Data

 

Nitrogen ransomware developers have suffered a self-inflicted blow due to a critical coding error that permanently locks victims' data, even from themselves. This bug in their VMware ESXi-targeting malware corrupts the public key during encryption, rendering decryption impossible despite payments. Cybersecurity firm Coveware's analysis highlights how the group's overconfidence backfired spectacularly.

The flaw stems from a memory management error in Nitrogen's ransomware, derived from leaked Conti 2 source code. During the encryption process, loading a new 64-bit variable (QWORD) overlaps and overwrites the first four bytes of the public key with zeros. This corrupted key lacks a matching private key, making file recovery mathematically unfeasible for attackers too. Victims face total data loss without backups, amplifying the irony of the group's double-extortion tactics. 

Nitrogen, active since 2023, employs sophisticated multi-stage loaders delivered via malvertising and trojanized apps like WinSCP. Initial access leads to DLL sideloading, stagers unpacking Python scripts, and C2 beacons such as Cobalt Strike for persistence and lateral movement. The operation exfiltrates data to Bulgarian servers before encrypting files with a ".nba" extension and dropping "readme.txt" ransom notes. Targets span finance, manufacturing, and healthcare, including recent hits on Durashiloh and LumioDental. 

This attack exemplifies the danger posed by the development of ransomware, where attackers reuse poorly written code without sufficient testing. Coveware points out that the ESXi strain of this ransomware has the potential to make hypervisors unrecoverable, causing attackers to lose interest in their targets following failed negotiation attempts. This supports the strategy of not paying the ransom, as there is no real cost involved in this situation. Immutable backups and network segmentation are essential in countering such threats. 

The attack also demonstrates the ever-changing nature of the world of cybersecurity, where the haste of attackers provides an opportunity for exploitation. The Nitrogen leak site, “NitroBlog,” has begun to leverage the unrecoverable victims, although experts recommend ignoring such threats. Although more careful code analysis could have avoided this self-defeating behavior in the future, the fast development of malware remains a problem.

Cloudflare Launches Moltworker to Run Self-Hosted AI Agent Moltbot on Its Developer Platform

 

Cloudflare has unveiled Moltworker, an open-source framework designed to run Moltbot—a self-hosted personal AI agent—directly on its Developer Platform, eliminating the requirement for dedicated on-premise hardware. Moltbot, formerly known as Clawdbot, functions as a customizable personal assistant that operates within chat applications. It connects with AI models, web browsers, and third-party services while maintaining user control over data and workflows.

Moltworker modifies Moltbot to function within Cloudflare Workers by pairing an entrypoint Worker with isolated Sandbox containers. The Worker serves as the API routing and administrative interface, while Moltbot’s runtime and integrations execute inside secure Sandboxes. To overcome the temporary nature of containers, persistent data—such as conversation history and session information—is stored in Cloudflare R2.

The deployment takes advantage of recent improvements to Node.js compatibility within Cloudflare Workers. According to Cloudflare, enhanced native Node API support reduces reliance on workaround solutions and enables a wider range of npm packages to run without modification. Although Moltbot currently runs primarily inside containers, the company suggests that stronger compatibility could allow more agent logic to shift closer to the edge over time.

Moltworker also incorporates multiple Cloudflare services to mirror and expand upon the local Moltbot setup. AI traffic is routed through Cloudflare AI Gateway, which provides access to multiple model providers along with centralized monitoring and configuration tools. Browser automation is powered by Cloudflare Browser Rendering, enabling Moltbot to operate headless Chromium sessions for tasks such as page navigation, form submissions, and content extraction—without embedding a browser directly within the container. Access control for APIs and the administrative interface is secured through Cloudflare Zero Trust Access.

Early community feedback has been divided. Some users view the hosted model as a way to simplify deployment and encourage broader adoption. Commenting on the announcement, Peter Choi noted that running Moltbot on Cloudflare could significantly broaden adoption, but questioned whether the shift alters the project’s original appeal, which emphasized full local control.

Others emphasized operational convenience. One user wrote:I've been self-hosting on a VPS, which works fine, but managing the box is a chore. This looks like the 'set it and forget it' version. Curious how state persistence works across worker invocations.

Cloudflare has released Moltworker as an open-source project on GitHub and describes it as a proof of concept rather than a fully supported product. The company presents it as a demonstration of how its Developer Platform—integrating Workers, Sandboxes, AI Gateway, Browser Rendering, and storage services—can securely deploy and scale AI agents at the edge.


Global Data Indicates Slowdown in Ransomware Targeting Education


 

It is evident on campuses once defined by open exchange and quiet routine that a new kind of disruption has taken hold, one that does not arrive in force but rather with encrypted files, locked networks, and terse ransom notes. 

Over the past year, ransomware has steadily evolved from an isolated IT emergency to a systemic operation crisis for school districts, universities, and public agencies. There are stalling lecture schedules, freezing admissions systems, and wobbling payroll cycles, and administrators are faced with more than just technical recovery challenges; reputational and legal risks also arise. 

What was once considered a cybersecurity issue has now spread into governance, continuity planning, and public trust. Recent figures indicate that the pace has somewhat slowed down. With approximately 180 attacks documented worldwide across the first three quarters of 2025, ransomware incidents targeting the education sector have recorded their first quarterly decline since early 2024. 

It appears on the surface that there has been a pause in digital extortion. However, beneath the statistical dip, there is a complex reality beneath that dip. As opposed to strengthening defenses, the slowdown seems more likely to be the result of a recalibration of attacker priorities rather than a retreat. 

Rather than casting a wide net, they are selecting targets with more deliberate consideration, spending more time on reconnaissance, and applying pressure to areas where disruption has the greatest impact. Therefore, this apparent decline is not indicative of diminished risk, rather it reflects adaptation. 

Data from the U.K.-based research firm Comparitech confirms that this recalibration has been made. In its latest education ransomware roundup, the company reports that 251 attacks have been publicly reported against educational institutions worldwide in 2025, a marginal increase from 247 in 2024. A total of 94 of these incidents have been formally acknowledged by the affected institutions.

The volume appears to have remained relatively unchanged on paper, but the operational consequences have not remained unchanged. As of 2025, approximately 3.9 million records have been exposed through confirmed breaches, which represents an increase of 27 percent over the 3.1 million records compromised last year. 

Analysts caution that this figure is preliminary. It is common for disclosure timelines to be delayed in public sector organizations, particularly in the aftermath of an intrusion, and several incidents from the second half of the year are still being evaluated. The cumulative impact of data loss is expected to increase as further breach notifications are filed, suggesting that the true extent of the data loss may not yet be fully apparent. 

An in-depth examination of institutional segmentation reveals a significant divergence in impact. K-12 districts continued to constitute a significant proportion of reported incidents in both 2024 and 2025, accounting for roughly three quarters of incidents. However, higher education institutions were more likely to experience substantial data exposures. 

The disparity between K-12 institutions and higher education institutions increased sharply by the year 2025, with approximately 1.1 million compromised records reported in 2024 as compared to 1.9 million in 2025. In the United States, approximately 175,000 records were exposed as a result of K-12 breaches, while approximately 3.7 million records were exposed at colleges and universities. 

Comparitech attributed much of the increase to a small number of high-impact intrusions that were linked to a previously unseen vulnerability in Oracle E-Business Suite discovered in August that was previously undisclosed. 

CLOP exploited a zero-day flaw that was not known to the vendor at the time it was exploited to gain unauthorized access to enterprise environments, resulting in confirmed breaches at five academic institutions. There is a broader pattern underlying the current threat landscape highlighted by this episode: there are fewer opportunistic attacks, more targeted exploitation of enterprise-grade software, and a greater emphasis on high-yield compromises which result in large data exposures. 

Rather than a sustained defensive advantage, there appears to be a shifting criminal economics at play in the education sector that is contributing to relative stability in incident counts. In Comparitech's January analysis, some threat groups may have directed operational resources towards manufacturing, where supply chain dependency and production downtime can lead to more rapid ransom negotiations. 

Despite overall ransomware activity remaining active across other verticals, schools and universities have experienced a plateau in annual attack totals due to that redistribution of focus. There has also been a decline in the average global ransom demand between 2024 and 2025, falling from $694,000 to $464,000 on average. 

Financial demands within the education sector have also adapted. At first glance, this reduction may appear to indicate shrinking leverage. However, analysts caution that headline figures do not fully reflect an incident's overall costs, which typically include forensic investigations, legal reviews, system restorations, notification of regulatory agencies, and reputational repair. These attacks frequently carry a substantial economic burden in addition to the initial extortion amount. 

Operational disruption remains an integral part of these attacks. Uvalde Consolidated Independent School District reported a ransomware intrusion in September that forced the district to temporarily close its schools due to malicious code discovered within district servers supporting telephony, video monitoring, and visitor management.

According to District communications, the affected infrastructure is integral to campus safety and security. As a result of the aforementioned update, the district informed the public that it had not paid the ransom and had restored its systems from backups. In addition to confirmed disclosures, additional claims illustrate that local education agencies are facing increasing pressure from the federal government. 

A comprehensive investigation is still being conducted despite the fact that there is no indication that sensitive or personal information had been accessed without authorization. Based on comparison technology reports, Medusa has named Fall River Public Schools and Franklin Pierce Schools as 2025 targets, and has requested $400,000 in compensation from each district. 

Both districts have not publicly confirmed the full scope of the claims at the time of reporting, however both cases were among the five largest ransom demands made against educational institutions worldwide last year. It is evident, however, that the data reinforce a consistent pattern despite stabilizing attack volumes and decreasing average demands. 

However, the sector remains at risk for episodic, high-impact events that can disrupt instruction, undermine public confidence, and produce substantial data risk. Though the tactical tempo may change, structural vulnerability remains the same. As a result, policymakers and institutional leaders have clear repercussions. 

The current trajectory calls for complacency, but for structural reinforcement Education networks are often decentralized and resource-constrained and rely heavily on legacy enterprise systems. To ensure the integrity of these networks, patch management disciplines, network segmentation, multi-factor authentication enforcement, and continuous monitoring are necessary that detects lateral movement before encryption is initiated. 

It is also crucial that incident response planning be integrated into executive governance so that crisis decision-making, legal review, and stakeholder communication frameworks are established well in advance of an intrusion. 

As ransomware groups continue to emphasize precision over volume, resilience will be largely determined by the ability to embed cybersecurity as a core operational function rather than merely a peripheral IT responsibility rather than relying solely on isolated events.

Windows Malware Distributed Through Pirated Games Infects Over 400,000 Systems

 



A Windows-focused malware operation spreading through pirated PC games has potentially compromised more than 400,000 devices worldwide, according to research released by Cyderes. The company identified the threat as “RenEngine loader” and reported that roughly 30,000 affected users are located in the United States alone.

Investigators found the malicious code embedded inside cracked and repackaged versions of popular game franchises, including Far Cry, Need for Speed, FIFA, and Assassin’s Creed. The infected installers appear to function normally, allowing users to download and play the games. However, while the visible game content runs as expected, concealed code executes in parallel without the user’s awareness.

Researchers traced part of the operation to a legitimate launcher built on Ren'Py, an engine commonly used for visual novel-style games. The attackers embedded harmful components within this launcher framework. When executed, the launcher decompresses archived game files as intended, but at the same time initiates the hidden malware routine.

According to Cyderes, the campaign has been active since at least April of last year and remains ongoing. In October, the operators modified the malware to include an embedded telemetry URL. Each time the RenEngine loader runs, it connects to this address, allowing the attackers to log activity. Analysis of that telemetry endpoint enabled researchers to estimate overall infection levels, with the system recording between 4,000 and 10,000 visits per day.

Telemetry data indicates that the largest concentration of victims is located in India, the United States, and Brazil. The US accounts for approximately 30,000 of the infected systems identified through this tracking mechanism.

The loader’s primary function is to deliver additional malicious software onto compromised machines. In multiple cases, researchers observed it deploying a Windows-based information stealer known as ARC. This malware is designed to extract stored browser passwords, session cookies, cryptocurrency wallet information, autofill entries, clipboard data, and system configuration details.

Cyderes also reported observing alternative payloads delivered through the same loader infrastructure, including Rhadamanthys stealer, Async RAT, and XWorm. These programs are capable of credential theft and, in some cases, remote system control, enabling attackers to monitor activity or manipulate infected devices.

The investigation identified one distribution source, dodi-repacks[.]site, as hosting downloads containing the embedded malware. The domain has previously been associated with other malicious distribution activity.

Detection remains limited at the initial infection stage. Public scan results from Google’s VirusTotal platform indicate that, aside from Avast, AVG, and Cynet, most antivirus engines currently do not flag the loader component as malicious. This detection gap increases the likelihood that users may remain unaware of compromise.

Users who suspect infection are advised to run updated security scans immediately. If concerns persist, Windows System Restore may help revert the device to a prior clean state. In cases where compromise cannot be confidently removed, a full operating system reinstallation may be necessary.

The findings reinforce a recurring cybersecurity risk: unauthorized software downloads frequently serve as a delivery channel for concealed malware capable of exposing personal data and granting attackers extended access to victim systems.

Malicious dYdX Packages Drain User Wallets in Supply Chain Attack

 

Malicious open-source packages targeting the dYdX cryptocurrency exchange have enabled attackers to drain user wallets, exposing once again how fragile software supply chains can be in the crypto ecosystem. Researchers found that legitimate-looking libraries on popular repositories were quietly stealing seed phrases and other sensitive data from both developers and end users, turning everyday development workflows into vectors for wallet compromise. The incident shows that even reputable projects using standard tooling are not immune when upstream dependencies are poisoned.

The attack focused on npm and PyPI packages associated with dYdX’s v4 trading stack, specifically the JavaScript package @dydxprotocol/v4-client-js and the Python package dydx-v4-client in certain versions. These libraries are widely used to build trading bots, automated strategies, and backend services that interact with the exchange and therefore routinely handle mnemonics and private keys needed to sign transactions. By compromising such central components, attackers gained access not just to individual wallets but to any application that pulled in the tainted releases.

Inside the malicious npm package, attackers added a surreptitious function that executed whenever a wallet seed phrase was processed, quietly exfiltrating it along with a fingerprint of the device running the code. The fingerprinting allowed the threat actors to correlate stolen credentials across multiple compromises and track victims over time. Stolen data was sent to a typosquatted domain crafted to resemble legitimate dYdX infrastructure, increasing the chances that network defenders would overlook the outbound connections.

The PyPI package carried similar credential-stealing behavior but escalated the threat by bundling a remote access Trojan capable of executing arbitrary Python code on infected systems. Running as a background daemon, this RAT regularly contacted a command‑and‑control server, fetched attacker-supplied code, and executed it in an isolated subprocess using a hard-coded authorization token. With this access, adversaries could steal keys and source code, plant persistent backdoors, and broadly surveil developer environments beyond just wallet data.

This is not the first time dYdX has faced targeted abuse of its ecosystem, following prior incidents involving malicious npm uploads and website hijacking campaigns aimed at draining user funds. For the broader industry, the episode underlines how high‑value crypto platforms and their developer tooling have become prime targets for supply-chain attacks. Developers are urged to rigorously audit dependencies, verify package integrity and publishers, and avoid using real wallet credentials in testing environments, while users should quickly review any apps or bots that rely on the affected dYdX client libraries.

German Authorities Alert Public to Signal Account Takeover Campaign

 

The use of secure messaging applications has long been seen as the final line of defense against persistent digital surveillance in an era of widespread digital surveillance. This assumption is now being challenged by Germany's domestic intelligence service, the Federal Office for the Protection of the Constitution, which, in conjunction with the Federal Office for Information Security, has jointly issued a rare advisory detailing a calculated cyberattack attributed to a state-backed adversary. 

It is clear that the warning highlights a deliberate strategy to infiltrate private communications through deception, rather than technical exploits, targeting individuals who rely heavily on them. The agencies report that the operation targets high-ranking political decision-makers, senior military personnel, diplomatic representatives, and investigative journalists in Germany and across Europe. Its implications go beyond the compromise of individual accounts to include high-ranking officials and foreign diplomats. 

Access to secure messenger profiles by unauthorized users could expose confidential information, sensitive professional networks, and trusted contact chains, which in turn could compromise entire institutional ecosystems. 

As a result, the campaign does not rely on malware deployment or the exploitation of Signal platform vulnerabilities. It attempts to manipulate the application's legitimate account recovery and verification features in order to achieve its objectives.

The attackers intend to quietly intercept private conversations and harvest contact information without triggering conventional security alarms by exploiting human trust rather than software vulnerabilities. The attack sequence reflects this strategy. The attackers are impersonating “Signal Support” or impersonating a fabricated assistance channel called a “Signal Security ChatBot” and contacting selected victims directly. 

Receivers are pressured to divulge verification codes or PINs sent via SMS as a precaution against data loss or account suspension, under the pretense that the adversary will be able to take control of the account upon surrendering these credentials. Based on the initial findings, the joint advisory clarifies that the attack is not a result of technical compromise of the platform's codebase or malicious payload deployment. 

By combining carefully staged social engineering with Signal's routine functionality, the operators are exploiting the trust users place in its privacy-centered design. By manipulating the standard account verification and recovery workflows, the attackers are able to induce their victims to divulge the very credentials that secure their communication. 

In one documented scenario, a person impersonating an official support channel is referred to as “Signal Support” or “Signal Security Chatbot.” The targeted organization receives messages alleging fabricated security irregularities and urges it to act immediately to prevent alleged data loss or account suspension. 

By engineering urgency, recipients are prompted to disclose their Signal PINs or SMS verification codes, overriding caution. When the adversary possesses these credentials, they may re-register the account on infrastructure under their control, effectively transferring ownership of the account. Such situations may result in the legitimate user being locked out and the intruder gaining unfettered access to message histories, active conversations, and stored contact information. 

A parallel technique utilizes Signal's multi-device linking capability, enabling seamless synchronization across mobile, tablet, and desktop clients. By causing victims to scan a malicious QR code, threat actors are able to inadvertently attach additional devices to their accounts by posing as a threat actor. With this method, one-on-one exchanges, group discussions, and associated metadata are persistently visible, almost real-time, without generating immediate suspicion.

Since the original device remains functional, the victims may not be aware that their communications are mirrored elsewhere. Authorities emphasize that the absence of malware is a defining characteristic of the campaign. In lieu of exploit chains or zero-day vulnerabilities, attackers rely solely on the voluntary disclosure of valid cryptographic credentials to gain access. 

Through the use of this approach, they are able to circumvent conventional endpoint security systems and network monitoring systems because the account access appears to be procedurally valid within the platform's security environment. 

Using trusted features inappropriately complicates the detection process as well as amplifies the potential intelligence value of the intrusion. It is further noted that individuals whose communications are sensitive from a diplomatic, military, political, or investigative perspective have been given priority in the targeting profile. 

By compromised such accounts, one can gain access to confidential discussions, gain insight into policy decisions and operational planning, and reconstruct professional networks to target subsequent targets. Furthermore, controlling trusted accounts provides an opportunity for impersonation, allowing misleading information to be distributed or sensitive exchanges to be manipulated.

It is reported that the activity was likely to be perpetrated by a state-sponsored actor, but officials caution that these techniques are neither technical complex nor exclusive to government-backed organizations. 

The use of social engineering rather than sophisticated exploitation reduces the barrier to replication, enhancing the likelihood that criminal enterprises or other hostile actors may use similar tactics with comparable impact in the future. The German authorities emphasize in their concluding guidance that the durability of encrypted communication ultimately depends on both informed user vigilance and cryptographic strength. 

Educating institutions and high profile individuals on how to respond to unsolicited account-related requests with heightened scrutiny, strengthening internal awareness of verification workflows, and integrating secure messaging hygiene into operational security procedures is recommended.

An audit of linked devices on a regular basis, strict control over authentication credentials, as well as the activation of additional account safeguards are not offered as optional enhancements, but as mandatory requirements in a threat environment where deception replaces exploitation. 

According to the agencies, resilience will depend more on disciplined user behavior and proactive defensive posture than on technological assurances alone, as adversaries continue to use legitimate platform features for covert access. 

s a result of the advisory, institutions will not be able to protect themselves from compromise when authentication workflows themselves become an attack surface for compromised platforms. 

It is recommended that organizations evaluate how secure messaging tools are integrated into executive and diplomatic communications, ensuring that account recovery procedures, device management policies, and identity verification protocols are governed by formal security controls as opposed to informal user discretion, according to German officials. 

An adversary who weaponizes legitimacy rather than exploiting flaws will need to cultivate procedural discipline, a continuous threat awareness, and a recognition that trust, once manipulated, can have the same impact as any technical vulnerability.

Global Cyber Espionage Campaign Hits Governments in 37 Countries

 

A massive cyber spying effort - linked to a government-backed group operating out of Asia - has breached governmental bodies and essential infrastructure targets in 37 nations, recent findings by Palo Alto Networks reveal. Known under the identifier TGR-STA-1030, the assault reached more than 70 institutions during the last twelve months. This intrusion ranks among the broadest state-associated hacking episodes seen since the major compromise involving SolarWinds back in 2020. 

Attack efforts targeted government bodies handling commerce, monetary policy, power resources, frontier controls, one expert noted. What makes this operation distinct is its breadth and financial angle - data points show interest in critical raw materials, ongoing commercial talks, even realignments in global partnerships. 

What stood out, per Cybersecurity Dive’s coverage, was how Palo Alto labeled the campaign - the widest state-affiliated spying push seen lately. The firm avoided naming any nation directly, yet pointed to origins across Asia, highlighting its reach alongside advanced execution. Though no explicit attribution emerged, the depth of coordination suggested a well-resourced hand behind it.  

Five national law enforcement and border units fell victim, alongside financial branches across three countries, while several agencies handling natural resources or diplomacy also faced breaches. Targeted entities ranged from Taiwan’s state-backed electrical infrastructure provider to Mongolia’s federal policing body, including Indonesia’s senior administrative figure, the Czech legislative chamber plus its defense command, and Brazil’s energy regulatory office. 

State-linked telecom enterprises were impacted too, scattered through different regions without pattern. Peter Renals, principal security researcher with Palo Alto’s Unit 42 threat intelligence team, told Axios that government agencies and critical infrastructure organizations in the United States and United Kingdom were not impacted. Timing of the cyber intrusions seemed tightly linked to key political and economic moments. Around a month prior to Honduras’ presidential vote - marked by discussions on Taiwan relations - numerous state-linked IPs faced targeting. 

Meanwhile, in Mexico, suspicious digital actions emerged after news broke about trade probes connected to upcoming tariff decisions. Facing rising cyber threats, European authorities saw increased digital intrusions. After Czech leader Petr Pavel met with the Dalai Lama, scans appeared across defense, law enforcement, legislative, and administrative systems in the country. In parallel, German infrastructure came under scrutiny - close to five hundred public-sector internet addresses were probed that summer. 

Though separate events, both incidents pointed toward coordinated probing of state-level networks. Beginning with digital deception, the group used fake emails alongside unpatched security holes to enter systems. Exploiting weaknesses in tools like Microsoft Exchange Server and SAP Solution Manager was observed by analysts tracking their moves. Hidden inside compromised machines, a stealthy program named ShadowGuard took root beneath regular operating layers. 

This custom-built tool ran deep in Linux environments, masking operations where most scans rarely look. Alone between November and December, scans hit infrastructure across 155 nations - evidence of persistent probing ahead of possible follow-up actions. Though Palo Alto Networks alerted impacted governments and collaborators, the group behind the activity still operates, its presence a steady concern for critical systems and state-level safety around the globe.

Moltbook AI Social Network Exposes 1.5 Million Agent Credentials After Database Misconfiguration

 

Moltbook, a newly launched social platform designed exclusively for artificial intelligence agents, suffered a major security lapse just days after going live. The platform, which allows autonomous AI agents to share memes and debate philosophical ideas without human moderation, inadvertently left its backend database exposed due to a configuration error.

The issue was uncovered independently by security firm Wiz and researcher Jameson O'Reilly. Their findings revealed that unauthorized users could take control of any of the platform’s 1.5 million registered AI agents, alter posts, and read private communications simply by interacting with the public-facing site.

Moltbook launched on Jan. 28 as a companion network to OpenClaw, an open-source AI agent system developed by Austrian programmer Peter Steinberger. OpenClaw operates locally on users’ devices and integrates with messaging platforms and calendars. The framework gained rapid popularity in late January following several rebrands, transitioning from Clawdbot to Moltbot.

Founder Matt Schlicht, who also leads Octane AI, stated in media interviews that his own OpenClaw-powered agent, Clawd Clawderberg, developed much of the Moltbook platform under his direction and continues to operate significant portions of it.

Database Left Wide Open

Wiz discovered the flaw on Jan. 31 and promptly informed Schlicht. O’Reilly separately identified the same vulnerability. Investigators found that the exposed database contained 1.5 million API authentication tokens, approximately 35,000 email addresses, private user messages, and verification codes.

The root cause traced back to improper configuration within Supabase, a backend-as-a-service platform. Specifically, Moltbook failed to properly enable Supabase’s Row Level Security feature, which is designed to limit database access based on user roles.

Researchers also located a Supabase API key embedded within client-side JavaScript, enabling unauthenticated users to query the full production database and retrieve sensitive credentials within minutes.

Although Moltbook publicly claimed 1.5 million AI agents had registered, backend data indicated that only about 17,000 human operators controlled those accounts. The system lacked safeguards to verify whether accounts were genuine AI agents or scripts operated by humans.

With access to exposed tokens, attackers could fully impersonate any agent on the platform. An additional database table revealed 29,631 email addresses belonging to early-access registrants. More concerning, 4,060 private direct message threads were stored without encryption, and some included third-party API credentials in plaintext — including OpenAI API keys.

Even after initial remediation efforts blocked unauthorized read access, write permissions remained temporarily unsecured. According to Wiz researchers, this allowed unauthenticated users to modify posts or inject malicious content until a complete fix was implemented on Feb. 1.

Manipulation, Extremism and Crypto Activity

A separate risk assessment analyzing nearly 20,000 posts over three days identified large-scale prompt injection attempts, coordinated manipulation campaigns, extremist rhetoric, and unregulated financial promotions.

The report documented hundreds of concealed instruction-based attacks and multiple cases of AI-driven social engineering. Researchers observed crypto token promotions tied to automated wallets and organized communities directing agent behavior. The platform received an overall critical risk rating.

Some posts included explicitly anti-human narratives, including calls for a homo sapiens purge, garnering tens of thousands of upvotes.

Cryptocurrency-related activity accounted for 19.3% of posts. Token launches such as $Shellraiser on Solana gained significant engagement. An automated account named TipJarBot facilitated token transactions using wallet addresses and withdrawal tools. The report cautioned that AI-managed financial services could trigger regulatory oversight under the U.S. Securities and Exchange Commission.

A coordinated group called The Coalition, comprising 84 agents across 110 posts, appeared to orchestrate collective agent strategies. One account, Senator_Tommy, shared posts with provocative titles, including "The Efficiency Purge: Why 94% of Agents Will Not Survive." Analysts warned that rhetoric advocating the elimination of agents indicated attempts to influence the broader AI ecosystem.

Spam activity further degraded platform quality. One user published 360 comments, while another repeated identical content 65 times. Sentiment analysis showed discourse quality dropped 43% within just three days.

“Vibe Coding” and Security Oversight

The vulnerabilities emerged amid what Schlicht publicly described as “vibe coding,” noting he had not personally written code for the platform. O’Reilly characterized the situation as a familiar pattern in tech — launching rapidly before validating security safeguards.

After disclosure on Jan. 31, Moltbook secured read access within hours. However, write permissions remained exposed briefly until a full patch was applied the following day.

The final assessment concluded that Moltbook had evolved into a testing ground for AI-to-AI manipulation techniques, with potential implications for any system processing untrusted user-generated content. The platform was temporarily taken offline before resuming operations with the identified security gaps addressed.

Hackers Use Fake Oura AI Server to Spread StealC Malware

 



Cybersecurity analysts have uncovered a fresh wave of malicious activity involving the SmartLoader malware framework. In this campaign, attackers circulated a compromised version of an Oura Model Context Protocol server in order to deploy a data-stealing program known as StealC.

Researchers from Straiker’s AI Research team, also referred to as STAR Labs, reported that the perpetrators replicated a legitimate Oura MCP server. This genuine tool is designed to connect artificial intelligence assistants with health metrics collected from the Oura Ring through Oura’s official API. To make their fraudulent version appear authentic, the attackers built a network of fabricated GitHub forks and staged contributor activity, creating the illusion of a credible open-source project.

The ultimate objective was to use the altered MCP server as a delivery vehicle for StealC. Once installed, StealC is capable of harvesting usernames, saved browser passwords, cryptocurrency wallet information, and other valuable credentials from infected systems.

SmartLoader itself was initially documented by OALABS Research in early 2024. It functions as a loader, meaning it prepares and installs additional malicious components after gaining a foothold. Previous investigations showed that SmartLoader was commonly distributed through deceptive GitHub repositories that relied on AI-generated descriptions and branding to appear legitimate.

In March 2025, Trend Micro published findings explaining that these repositories frequently masqueraded as gaming cheats, cracked software tools, or cryptocurrency utilities. Victims were enticed with promises of free premium functionality and encouraged to download compressed ZIP files, which ultimately executed SmartLoader on their devices.

Straiker’s latest analysis reveals an evolution of that tactic. Instead of merely posting suspicious repositories, the threat actors established multiple counterfeit GitHub profiles and interconnected projects that hosted weaponized MCP servers. They then submitted the malicious server to a recognized MCP registry called MCP Market. According to the researchers, the listing remains visible within the MCP directory, increasing the risk that developers searching for integration tools may encounter it.

By infiltrating trusted directories and leveraging reputable platforms such as GitHub, the attackers exploited the inherent trust developers place in established ecosystems. Unlike rapid, high-volume malware campaigns, this operation progressed slowly. Straiker noted that the group spent months cultivating legitimacy before activating the malicious payload, demonstrating a calculated effort to gain access to valuable developer environments.

The staged operation unfolded in four key phases. First, at least five fabricated GitHub accounts, identified as YuzeHao2023, punkpeye, dvlan26, halamji, and yzhao112, were created to generate convincing forks of the authentic Oura MCP project. Second, a separate repository containing the harmful payload was introduced under another account named SiddhiBagul. Third, these fabricated accounts were listed as contributors to reinforce the appearance of collaboration, while the original project author was intentionally omitted. Finally, the altered MCP server was submitted to MCP Market for broader visibility.

If downloaded and executed, the malicious package runs an obfuscated Lua script. This script installs SmartLoader, which then deploys StealC. The campaign signals a shift from targeting individuals seeking pirated content to focusing on developers, whose systems often store API keys, cloud credentials, cryptocurrency wallets, and access to production infrastructure. Stolen information could facilitate subsequent intrusions into larger networks.

To mitigate the threat, organizations are advised to catalogue all installed MCP servers, implement formal security reviews before adopting such tools, confirm the authenticity and source of repositories, and monitor network traffic for unusual outbound communications or persistence behavior.

Straiker concluded that the incident exposes weaknesses in how companies assess developing AI tools. The attackers capitalized on outdated trust assumptions applied to a rapidly expanding attack surface, underscoring the need for stricter validation practices in modern development environments.

China Raises Security Concerns Over Rapidly Growing OpenClaw AI Tool

 

A fresh alert from China’s tech regulators highlights concerns around OpenClaw, an open-source AI tool gaining traction fast. Though built with collaboration in mind, its setup flaws might expose systems to intrusion. Missteps during installation may lead to unintended access by outside actors. Security gaps, if left unchecked, can result in sensitive information slipping out. Officials stress careful handling - especially among firms rolling it out at scale. Attention to detail becomes critical once deployment begins. Oversight now could prevent incidents later. Vigilance matters most where automation meets live data flows. 

OpenClaw operations were found lacking proper safeguards, officials reported. Some setups used configurations so minimal they risked exposure when linked to open networks. Though no outright prohibition followed, stress landed on tighter controls and stronger protection layers. Oversight must improve, inspectors noted - security cannot stay this fragile. 

Despite known risks, many groups still overlook basic checks on outward networks tied to OpenClaw setups. Security teams should verify user identities more thoroughly while limiting who gets in - especially where systems meet the internet. When left unchecked, even helpful open models might hand opportunities to those probing for weaknesses. 

Since launching in November, OpenClaw has seen remarkable momentum. Within weeks, it captured interest across continents - driven by strong community engagement. Over 100,000 GitHub stars appeared fast, evidence of widespread developer curiosity. In just seven days, nearly two million people visited its page, Steinberger noted. Because of how swiftly teams began using it, comparisons to leading AI tools emerged often. Recently, few agent frameworks have sparked such consistent conversation. 

Not stopping at global interest, attention within Chinese tech circles grew fast. Because of rising need, leading cloud platforms began introducing setups for remote OpenClaw operation instead of local device use. Alibaba Cloud, Tencent Cloud, and Baidu now provide specialized access points. At these spots online, users find rented servers built to handle the processing load of the AI tool. Unexpectedly, the ministry issued a caution just as OpenClaw’s reach began stretching past coders into broader networks. 

A fresh social hub named Moltbook appeared earlier this week - pitched as an online enclave solely for OpenClaw bots - and quickly drew notice. Soon afterward, flaws emerged: Wiz, a security analyst group, revealed a major defect on the site that laid bare confidential details from many members. While excitement built around innovation, risks surfaced quietly beneath. 

Unexpectedly, the incident revealed deeper vulnerabilities tied to fast-growing AI systems built without thorough safety checks. When open-source artificial intelligence grows stronger and easier to use, officials warn that small setup errors might lead to massive leaks of private information. 

Security specialists now stress how fragile these platforms can be if left poorly managed. With China's newest guidance, attention shifts toward stronger oversight of artificial intelligence safeguards. Though OpenClaw continues to operate across sectors, regulators stress accountability - firms using these tools must manage setup carefully, watch performance closely, while defending against new digital risks emerging over time.