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Microsoft's Latest AI Model Outperforms Current Weather Forecasting

 

Microsoft has created an artificial intelligence (AI) model that outperforms current forecasting methods in tracking air quality, weather patterns, and climate-affected tropical storms, according to studies published last week.

The new model, known as Aurora, provided 10-day weather forecasts and forecasted hurricane courses more precisely and quickly than traditional forecasting, and at a lower cost, according to researchers who published their findings in journal Nature. 

"For the first time, an AI system can outperform all operational centers for hurricane forecasting," noted senior author Paris Perdikaris, an associate professor of mechanical engineering at the University of Pennsylvania.

Aurora, trained just on historical data, was able to estimate all hurricanes in 2023 more precisely than operational forecasting centres such as the US National Hurricane Centre. Traditional weather prediction models are based on fundamental physics principles such as mass, momentum, and energy conservation, and therefore demand significant computing power. The study found that Aurora's computing expenses were several hundred times cheaper. 

The trial results come on the heels of the Pangu-meteorological AI model developed and unveiled by Chinese tech giant Huawei in 2023, and might mark a paradigm shift in how the world's leading meteorological agencies predict weather and possibly deadly extreme events caused by global warming. According to its creators, Aurora is the first AI model to regularly surpass seven forecasting centres in predicting the five-day path of deadly storms. 

Aurora's simulation, for example, correctly predicted four days in advance where and when Doksuri, the most expensive typhoon ever recorded in the Pacific, would reach the Philippines. Official forecasts at the time, in 2023, showed it moving north of Taiwan. 

Microsoft's AI model also surpassed the European Centre for Medium-Range Weather Forecasts (ECMWF) model in 92% of 10-day worldwide forecasts, on a scale of about 10 square kilometres (3.86 square miles). The ECMWF, which provides forecasts for 35 European countries, is regarded as the global standard for meteorological accuracy.

In December, Google announced that its GenCast model has exceeded the European center's accuracy in more than 97 percent of the 1,320 climate disasters observed in 2019. Weather authorities are closely monitoring these promising performances—all experimental and based on observed phenomena.

London Startup Allegedly Deceived Microsoft with Fake AI Engineers

 


There have now been serious allegations of fraud against London-based startup Builder.ai, once considered a disruptor of software development and valued at $1.5 billion. Builder.ai is now in bankruptcy. The company claims that its artificial intelligence-based platform will revolutionise app development. With the help of its AI-assisted platform, Natasha, the company claims that building software will be easier than ordering pizza. 

The recent revelations, however, have revealed a starkly different reality: instead of employing cutting-edge AI technology, Builder.ai reportedly relies on hundreds of human developers in India, who manually execute customer requests while pretending to be AI-generated results.

Having made elaborate misrepresentations about this company, Microsoft and Qatar Investment Authority invested $445 million, led by the false idea that they were backed by a scalable, AI-based solution, which resulted in over $445 million in funding being raised. This scandal has sparked a wider conversation about transparency, ethics, and the hype-driven nature of the startup ecosystem, as well as raised serious concerns about due diligence in the AI investment landscape. 

In 2016, Builder.ai, which was founded by entrepreneur Sachin Dev Duggal under the name Engineer.ai, was conceived with a mission to revolutionise app development. In the company's brand, the AI-powered, no-code platform was touted to be able to dramatically simplify the process of creating software applications by cutting down on the amount of code required. 

Founded by a group of MIT engineers and researchers, Builder.ai quickly captured the attention of investors worldwide, as the company secured significant funding from high-profile companies including Microsoft, the Qatar Investment Authority, the International Finance Corporation (IFC), and SoftBank's DeepCore. 

The company highlighted its proprietary artificial intelligence assistant, Natasha, as the technological breakthrough that could be used to build custom software without human intervention. This innovative approach was a central part of the company's value proposition. With the help of a compelling narrative, the startup secured more than $450 million in funding and achieved unicorn status with a peak valuation of $1.5 billion. 

It was widely recognised in the early stages of the evolution of Builder.ai that it was a pioneering force that revolutionised software development, reducing the reliance on traditional engineering teams and democratizing software development. However, underneath the surface of the company's slick marketing campaigns and investor confidence lay a very different operational model—one which relied heavily on human engineers, rather than advanced artificial intelligence. 

Building.ai's public image unravelled dramatically when its promotional promises diverged from its internal practices. It was inevitable that the dramatic collapse of Builder.ai, once regarded as a rising star in the global tech industry, would eventually lead to mounting scrutiny and a dramatic unravelling of its public image. This has revealed troubling undercurrents in the AI startup sector.

In its beginnings, Builder.ai was marketed as a groundbreaking platform for creating custom applications, but it also promised automation, scale, and cost savings, and was positioned as a revolutionary platform for developing custom applications. Natasha was the company's flagship artificial intelligence assistant, which was widely advertised as enabling it to develop software with no code. Yet internal testimonies, lawsuits, and investigation findings have painted a much more troubling picture since then. 

According to its claims of integrating sophisticated artificial intelligence, Natasha was only used as a simple interface for collecting client requirements, whereas the actual development work was done by large engineering teams in India, despite Natasha's claims of sophisticated artificial intelligence integration. According to whistleblowers, including former executives, Builder.ai did not have any genuine AI infrastructure in place. 

As it turns out, internal documentation indicates that applications are being marketed as “80% built by AI” when in fact their underlying tools are rudimentary at best, when they are actually built with artificial intelligence. Former CEO Robert Holdheim filed a $5 million lawsuit alleging wrongful termination after raising concerns about deceptive practices and investor misrepresentation in the company. Due to his case catalysing broader scrutiny, allegations of financial misconduct, as well as technological misrepresentations, were made, resulting in allegations of both. 

After Sachin Dev Duggal had taken over as CEO in mid-2025, Manpreet Ratia took over as CEO, starting things off in a positive manner by stabilising operations. An independent financial audit was ordered under Ratia's leadership that revealed massive discrepancies between the reported revenue and the actual revenue. 

Builder.ai claimed that it had generated more than $220 million in revenues for 2024, while the true figure was closer to $50 million. As a result, Viola Credit, a company's loan partner, quickly seized $37 million in the company's accounts and raised alarm among creditors and investors alike. A final-ditch measure was to release a press release acknowledging Builder.ai had been unable to sustain payroll or its global operations, with only $5 million remaining in restricted funds. 

In the statement, it acknowledged that it had not been able to recover from its past decisions and historic challenges. Several bankruptcy filings were initiated across multiple jurisdictions within a short period of time, including India, the United Kingdom, and the United States. The result was the layoff of over 1,000 employees and the suspension of a variety of client projects. 

The controversy exploded as new allegations were made about revenue roundtrips with Indian technology company VerSe, which was believed to be a strategy aimed at inflating financial performance and attracting new investors. Further, reports revealed that Builder.ai has defaulted on substantial payments to Amazon and Microsoft, owing approximately $85 million to Amazon and $30 million to Microsoft for unpaid cloud services. 

As a result of these developments, a federal investigation has been launched, with authorities requesting access to the company's finances and client contracts as well. As a result of the Builder.ai scandal, a broader issue is at play in the tech sector — "AI washing", where startups exaggerate or misstate their artificial intelligence capabilities to get funding and market traction. 

In an interview with Info-Tech Research Group, Principal Analyst Phil Brunkard summarised this crisis succinctly: "Many of these so-called AI companies scaled based on narrative rather than infrastructure." There is a growing concern among entrepreneurs, investors, and the entire technology industry that Builder.ai could be serving as a cautionary tale for investors, entrepreneurs, and the entire technology industry as regulatory bodies tighten scrutiny of AI marketing claims. 

There have been concerns regarding the legitimacy of Builder.ai's artificial intelligence capabilities ever since a report published by The Wall Street Journal in 2019 raised questions about how heavily the company relies on human labour over artificial intelligence. It has been reported that, despite the company's marketing narrative emphasising automation and machine learning, the company's internal operations paint a different picture. 

The article quotes former employees of Builder.ai saying that Builder.ai was a platform that was primarily engineering, and not AI-driven. This statement starkly contradicted the company's claim to be an AI-first, no-coding platform. Even though many investors and stakeholders ignored these early warnings, they hinted that there might be deeper structural inconsistencies with the startup's operations than what the initial warnings indicated. 

When Manpreet Ratia took on the role of CEO of the company in February 2025, succeeding founder Sachin Dev Duggal, the extent to which the company's internal dysfunction was revealed. It became apparent to Ratia quickly that the company had been misreported and that data had been manipulated for years in order to increase its valuation and public image, despite the fact that it had been tasked with restoring investor confidence and operational transparency. 

Following the revelations in this case, U.S. federal prosecutors immediately began an investigation into the company's business practices in response to the disclosures. Earlier this week, the authorities formally requested access to Builder.AI's financial records, internal communications, and its customer data. The request is part of a broader investigation looking into the possibility of fraud, deception of investors, and violations related to false descriptions of AI capabilities.

It should be noted that the failure of Builder.AI serves as an obvious sign that the investment and innovation ecosystems surrounding artificial intelligence need to be recalibrated urgently and sharply. Capital is continuing to flow into AI-powered ventures at a rapid pace, and stakeholders need to raise their standards in regards to due diligence, technical validation and governance oversight as a result. 

It is important to temper investor enthusiasm for innovative startups by rigorously evaluating the company's technical capabilities beyond polished pitch decks and strategic storytelling. The case reinforces the importance of transparency and sustainability over short-term hype for founders, as well as the need for regulators to develop frameworks aimed at holding companies accountable if they make misleading claims in their product representations and financial disclosures. 

Regulators are becoming increasingly aware of what is being called "AI washing" and are developing strategies to address it. Credibility in a sector built upon trust has become an essential cornerstone of long-term viability, and the collapse of Builder.ai illustrates that this is no longer just a case of a singular failure; rather, it has become a call to action in the tech industry to place substance above spectacle in the age of artificial intelligence.

Rust-Developed InfoStealer Extracts Sensitive Data from Chromium-Based Browsers

Rust-Developed InfoStealer Extracts Sensitive Data from Chromium-Based Browsers

Browsers at risk

The latest information-stealing malware, made in the Rust programming language, has surfaced as a major danger to users of Chromium-based browsers such as Microsoft Edge, Google Chrome, and others. 

Known as “RustStealer” by cybersecurity experts, this advanced malware is made to retrieve sensitive data, including login cookies, browsing history, and credentials, from infected systems. 

Evolution of Rust language

The growth in Rust language known for memory safety and performance indicates a transition toward more resilient and hard-to-find problems, as Rust binaries often escape traditional antivirus solutions due to their combined nature and lower order in malware environments. 

RustStealers works with high secrecy, using sophisticated obfuscation techniques to escape endpoint security tools. Initial infection vectors hint towards phishing campaigns, where dangerous attachments or links in evidently genuine emails trick users into downloading the payload. 

After execution, the malware makes persistence via registry modifications or scheduled tasks, to make sure it remains active even after the system reboots. 

Distribution Mechanisms

The main aim is on Chromium-based browsers, abusing the accessibility of unencrypted information stored in browser profiles to harvest session tokens, usernames, and passwords. 

Besides this, RustStealer has been found to extract data to remote C2 servers via encrypted communication channels, making detection by network surveillance tools such as Wireshark more challenging.

Experts have also observed its potential to attack cryptocurrency wallet extensions, exposing users to risks in managing digital assets via browser plugins. This multi-faceted approach highlights the malware’s goal to increase data robbery while reducing the chances of early detection, a technique similar to advanced persistent threats (APTs).

About RustStealer malware

What makes RustStealer different is its modular build, letting hackers rework its strengths remotely. This flexibility reveals that future ve

This adaptability suggests that future replications could integrate functionalities such as ransomware components or keylogging, intensifying threats in the longer run. 

The deployment of Rust also makes reverse-engineering efforts difficult, as the language’s output is less direct to decompile in comparison to scripts like Python or other languages deployed in outdated malware strains. 

Businesses are advised to remain cautious, using strong phishing securities, frequently updating browser software, and using endpoint detection and response (EDR) solutions to detect suspicious behavior. 

Hackers Tricking Employees with Fake IT Calls and Email Floods in New Ransomware Scam

 


A growing number of cyberattacks are being carried out by a group linked to the 3AM ransomware. These attackers are using a combination of spam emails and fake phone calls pretending to be a company’s tech support team. Their goal is to fool employees into giving them access to internal systems.

This method, which has been seen in past cyber incidents involving other groups like Black Basta and FIN7, is becoming more widespread due to how effective it is. Cybersecurity company Sophos has confirmed at least 55 attacks using this approach between November 2024 and January 2025. These incidents appear to come from two different hacker groups following similar tactics.

In one recent case during early 2025, the attackers targeted a company using a slightly different method than before. Instead of pretending to be tech support over Microsoft Teams, they called an employee using a fake caller ID that showed the company’s actual IT department number. The call took place while the employee’s inbox was being flooded with dozens of spam emails in just minutes — a technique known as email bombing.

During the call, the attacker claimed the employee's device had security issues and asked them to open Microsoft’s Quick Assist tool. This is a real remote help feature that allows another person to take control of the screen. Trusting the caller, the employee followed instructions and unknowingly handed over access to the attacker.

Once inside, the hacker downloaded a dangerous file disguised as a support tool. Inside the file were harmful components including a backdoor, a virtual machine emulator (QEMU), and an old Windows system image. These tools allowed the attacker to hide their presence and avoid detection by using virtual machines to move through the network.

The hacker then used tools like PowerShell and WMIC to explore the system, created a new admin account, installed a remote support tool called XEOXRemote, and gained control of a domain-level account. Although Sophos security software stopped the ransomware from spreading and blocked attempts to shut down protections, the hacker managed to steal 868 GB of company data. This data was sent to cloud storage using a syncing tool called GoodSync.

The full attack lasted around nine days. The majority of the data theft happened in the first three days before the attackers were cut off from further access.

To protect against such attacks, Sophos suggests reviewing admin accounts for weaknesses, using security tools that can spot unusual uses of trusted programs, and setting strict rules for running scripts. Most importantly, companies should train employees to recognize signs of fake support calls and suspicious emails, as these scams depend on fooling people — not just machines.

The 3AM ransomware group is relatively new, first spotted in late 2023, but appears to have links with well-known cybercrime networks like Conti and Royal.


U.S. Shuts Down LummaC2 Malware Network in Major Takedown

 

In a major crackdown on cybercrime, the U.S. Department of Justice (DOJ), in coordination with the FBI and Microsoft, has dismantled a global malware operation known as LummaC2 by seizing five internet domains used to deploy the infostealer malware. LummaC2, notorious for stealing personal and financial data such as browser history, login credentials, and cryptocurrency wallet information, had compromised at least 1.7 million systems worldwide. 

The takedown occurred over three days in May 2025, with two domains seized on May 19, followed by the rapid seizure of three additional domains after the malware operators attempted to restore access. These domains acted as user panels for cybercriminals leasing or buying access to the malware, allowing them to deploy it across networks and extract stolen data. 

FBI Assistant Director Bryan Vorndran said, “We took action against the most popular infostealer service available in online criminal markets. Thanks to partnerships with the private sector, we were able to disrupt the LummaC2 infrastructure and seize user panels.” 

DOJ Criminal Division head Matthew R. Galeotti added, “This type of malware is used to steal personal data from millions, facilitating crimes such as fraudulent bank transfers and cryptocurrency theft.” In a parallel move, Microsoft launched a civil legal action to take down 2,300 more domains believed to be linked to LummaC2 actors or their proxies. 

Emphasising the value of collaboration, Sue J. Bai, chief of the DOJ’s National Security Division, said, “Today’s disruption is another instance where our prosecutors, agents, and private sector partners came together to protect us from the persistent cybersecurity threats targeting our country.” 

The operation, led by the FBI’s Dallas Field Office and supported by several DOJ divisions, forms part of a broader U.S. strategy to counter cyber threats, including a State Department programme offering up to $10 million for information on individuals targeting U.S. critical infrastructure.

Global Operation Dismantles Lumma Malware Network, Seizes 2,300 Domains and Infrastructure

 

In a sweeping international crackdown earlier this month, a collaborative operation involving major tech firms and law enforcement agencies significantly disrupted the Lumma malware-as-a-service (MaaS) operation. This effort resulted in the seizure of thousands of domains and dismantling of key components of Lumma's infrastructure across the globe.

A major milestone in the operation occurred on May 13, 2025, when Microsoft, through legal action, successfully took control of around 2,300 domains associated with the malware. Simultaneously, the U.S. Department of Justice (DOJ) dismantled online marketplaces used by cybercriminals to rent Lumma’s services, while Europol’s European Cybercrime Center (EC3) and Japan’s Cybercrime Control Center (JC3) helped take down Lumma’s infrastructure in their respective regions.

"Between March 16, 2025, and May 16, 2025, Microsoft identified over 394,000 Windows computers globally infected by the Lumma malware. Working with law enforcement and industry partners, we have severed communications between the malicious tool and victims," said Steven Masada, Assistant General Counsel of Microsoft's Digital Crimes Unit.

Cloudflare, one of the key players in the effort, highlighted the impact of the takedown.

“The Lumma Stealer disruption effort denies the Lumma operators access to their control panel, marketplace of stolen data, and the Internet infrastructure used to facilitate the collection and management of that data. These actions impose operational and financial costs on both the Lumma operators and their customers, forcing them to rebuild their services on alternative infrastructure,” Cloudflare stated.

The operation saw contributions from companies like ESET, CleanDNS, Bitsight, Lumen, GMO Registry, and law firm Orrick. According to Cloudflare, the Lumma malware misused their platform to mask server IP addresses that were used to siphon off stolen credentials and sensitive data.

Even after suspending malicious domains, the malware managed to bypass Cloudflare’s interstitial warning page, prompting the company to reinforce its security measures.

"Cloudflare's Trust and Safety team repeatedly flagged domains used by the criminals and suspended their accounts," the company explained.

“In February 2025, Lumma’s malware was observed bypassing Cloudflare’s interstitial warning page, which is one countermeasure that Cloudflare employs to disrupt malicious actors. In response, Cloudflare added the Turnstile service to the interstitial warning page, so the malware could not bypass it." 

Also known as LummaC2, Lumma is a sophisticated information-stealing malware offered as a subscription-based service, ranging from $250 to $1,000. It targets both Windows and macOS systems, enabling cybercriminals to exfiltrate data from browsers and apps.

Once installed, Lumma can extract a broad range of data, including login credentials, credit card numbers, cryptocurrency wallets, cookies, and browsing history from popular browsers like Google Chrome, Microsoft Edge, Mozilla Firefox, and other Chromium-based platforms. The stolen data is packaged and sent to attacker-controlled servers, where it is either sold on dark web marketplaces or used in follow-up cyberattacks.

Initially spotted in December 2022 on cybercrime forums, the malware quickly gained traction. Cybersecurity firm KELA reported its rapid rise in popularity among cybercriminals.

IBM X-Force’s 2025 threat intelligence report revealed a 12% year-on-year increase in the number of stolen credentials being sold online, largely driven by the use of infostealers like Lumma. Phishing campaigns delivering such malware have surged by 84%, making Lumma the most dominant player in this threat landscape.

Lumma has been linked to major malvertising campaigns affecting hundreds of thousands of users and has been used by notorious groups such as the Scattered Spider cybercrime collective.

Recently, stolen data linked to Lumma has played a role in high-profile breaches at companies like PowerSchool, HotTopic, CircleCI, and Snowflake. In some cases, infostealer malware has been used to manipulate internet infrastructure, such as the Orange Spain RIPE account hijacking incident that disrupted BGP and RPKI configurations.

On the day of the crackdown, the FBI and CISA jointly issued a security advisory outlining indicators of compromise (IOCs) and detailing the tactics, techniques, and procedures (TTPs) employed by threat actors using Lumma malware.


Microsoft Uncover Password Stealer Malware on 4 lakh Windows PCs

 

Microsoft's Digital Crimes Unit (DCU) and global partners have halted Lumma Stealer, one of cybercriminals' most common info-stealing malware tools. On May 13, Microsoft and law enforcement agencies seized nearly 2,300 domains that comprise Lumma's infrastructure, inflicting a significant blow to cybercrime networks targeting sensitive private and institutional data. 

Lumma is a Malware-as-a-Service (MaaS) that has been advertised on underground forums since 2022. It specialises in siphoning passwords, banking credentials, cryptocurrency wallets, and other information. Its victims include individual consumers, schools, banks, and critical service providers. Between March and May 2025, Microsoft found about 394,000 Lumma-infected Windows systems. The majority of these systems were located in Brazil, the United States, and other parts of Europe.

The operation, which was permitted by the US District Court for the Northern District of Georgia, involved Microsoft, the US Department of Justice, Europol, and Japan's Cybercrime Control Centre. The DOJ removed Lumma's command infrastructure, while law enforcement assisted in the suspension of local networks that supported the malware. 

Microsoft is sending over 1,300 confiscated or transferred domains to its "sinkholes"—a defensive infrastructure that intercepts malicious traffic in order to detect and prevent further attempts. The insights gained from these sinkholes will help public and private cybersecurity operations to investigate, track, and neutralise Lumma-related threats. 

Lumma, which is designed to avoid detection, has been popular among ransomware gangs such as Octo Tempest (also known as Scattered Spider). It spreads via phishing attacks, malvertising, and impersonation frauds, such as a recent attack that used Booking.com to perpetrate financial theft. Lumma has been used against sectors like healthcare, telecom, and logistics in addition to financial fraud, highlighting the wide-ranging and persistent threat it poses.

“We know cybercriminals are persistent and creative. We, too, must evolve to identify new ways to disrupt malicious activities. Microsoft’s DCU will continue to adapt and innovate to counteract cybercrime and help ensure the safety of critical infrastructure, customers, and online users,” noted Microsoft in a blog post.

Why Microsoft Says DeepSeek Is Too Dangerous to Use

 


Microsoft has openly said that its workers are not allowed to use the DeepSeek app. This announcement came from Brad Smith, the company’s Vice Chairman and President, during a recent hearing in the U.S. Senate. He said the decision was made because of serious concerns about user privacy and the risk of biased content being shared through the app.

According to Smith, Microsoft does not allow DeepSeek on company devices and hasn’t included the app in its official store either. Although other organizations and even governments have taken similar steps, this is the first time Microsoft has spoken publicly about such a restriction.

The main worry is where the app stores user data. DeepSeek's privacy terms say that all user information is saved on servers based in China. This is important because Chinese laws require companies to hand over data if asked by the government. That means any data stored through DeepSeek could be accessed by Chinese authorities.

Another major issue is how the app answers questions. It’s been noted that DeepSeek avoids topics that the Chinese government sees as sensitive. This has led to fears that the app’s responses might be influenced by government-approved messaging instead of being neutral or fact-based.

Interestingly, even though Microsoft is blocking the app itself, it did allow DeepSeek’s AI model—called R1—to be used through its Azure cloud service earlier this year. But that version works differently. Developers can download it and run it on their own servers without sending any data back to China. This makes it more secure, at least in terms of data storage.

However, there are still other risks involved. Even if the model is hosted outside China, it might still share biased content or produce low-quality or unsafe code.

At the Senate hearing, Smith added that Microsoft took extra steps to make the model safer before making it available. He said the company made internal changes to reduce any harmful behavior from the model, but didn’t go into detail about what those changes were.

When DeepSeek was first added to Azure, Microsoft said the model had passed safety checks and gone through deep testing to make sure it met company standards.

Some people have pointed out that DeepSeek could be seen as a competitor to Microsoft’s own chatbot, Copilot. But Microsoft doesn’t block every competing chatbot. For example, Perplexity is available in the Windows app store. Still, some other popular apps, like Google’s Chrome browser and its Gemini chatbot, weren’t found during a search of the store.

Windows CLFS Zero-Day Flaw Exploited in Play Ransomware Attacks

 

In zero-day attacks, the Play ransomware gang exploited a critical Windows Common Log File System flaw to gain SYSTEM access and install malware on infected PCs. The vulnerability, known as CVE-2025-29824, was identified by Microsoft as being exploited in a small number of attacks and addressed during last month's patch.

"The targets include organizations in the information technology (IT) and real estate sectors of the United States, the financial sector in Venezuela, a Spanish software company, and the retail sector in Saudi Arabia," Microsoft noted in April. 

Microsoft attributed these assaults to the RansomEXX ransomware outfit, claiming that the perpetrators installed the PipeMagic backdoor malware, which was employed to deliver the CVE-2025-29824 exploit, ransomware payloads, and ransom letters after encrypting files. 

Since then, Symantec's Threat Hunter Team has discovered evidence linking them to the Play ransomware-as-a-service operation, claiming that the hackers used a CVE-2025-29824 zero-day privilege escalation exploit after breaching a US organization's network. 

"Although no ransomware payload was deployed in the intrusion, the attackers deployed the Grixba infostealer, which is a custom tool associated with Balloonfly, the attackers behind the Play ransomware operation," Symantec added. "Balloonfly is a cybercrime group that has been active since at least June 2022 and uses the Play ransomware (also known as PlayCrypt) in attacks.” 

The Grixba custom network-scanning and information-stealing program was discovered two years ago, and Play ransomware operators often use it to list users and computers in compromised networks. The Play cybercrime gang first appeared in June 2022, and it is also renowned for double-extortion attacks, in which its affiliates coerce victims into paying ransoms to prevent their stolen data from being exposed online. 

As of October 2023, the Play ransomware gang has compromised the networks of around 300 organisations globally, according to a joint alert released by the FBI, CISA, and the Australian Cyber Security Centre (ACSC) in December 2023. 

The cloud computing company Rackspace, the massive auto retailer Arnold Clark, the City of Oakland in California, Dallas County, the Belgian city of Antwerp, and, more recently, the American semiconductor supplier Microchip Technology and doughnut chain Krispy Kreme are among the notable victims of the Play ransomware.

Commvault Confirms Cyberattack, Says Customer Backup Data Remains Secure


Commvault, a well-known company that helps other businesses protect and manage their digital data, recently shared that it had experienced a cyberattack. However, the company clarified that none of the backup data it stores for customers was accessed or harmed during the incident.

The breach was discovered in February 2025 after Microsoft alerted Commvault about suspicious activity taking place in its Azure cloud services. After being notified, the company began investigating the issue and found that a very small group of customers had been affected. Importantly, Commvault stated that its systems remained up and running, and there was no major impact on its day-to-day operations.

Danielle Sheer, Commvault’s Chief Trust Officer, said the company is confident that hackers were not able to view or steal customer backup data. She also confirmed that Commvault is cooperating with government cybersecurity teams, including the FBI and CISA, and is receiving support from two independent cybersecurity firms.


Details About the Vulnerability

It was discovered that the attackers gained access by using a weakness in Commvault’s web server software. This flaw, now fixed, allowed hackers with limited permissions to install harmful software on affected systems. The vulnerability, known by the code CVE-2025-3928, had not been known or patched before the breach, making it what experts call a “zero-day” issue.

Because of the seriousness of this bug, CISA (Cybersecurity and Infrastructure Security Agency) added it to a list of known risks that hackers are actively exploiting. U.S. federal agencies have been instructed to update their Commvault software and fix the issue by May 19, 2025.


Steps Recommended to Stay Safe

To help customers stay protected, Commvault suggested the following steps:

• Use conditional access controls for all cloud-based apps linked to Microsoft services.

• Check sign-in logs often to see if anyone is trying to log in from suspicious locations.

• Update secret access credentials between Commvault and Azure every three months.


The company urged users to report any strange behavior right away so its support team can act quickly to reduce any damage.

Although this was a serious incident, Commvault’s response was quick and effective. No backup data was stolen, and the affected software has been patched. This event is a reminder to all businesses to regularly check for vulnerabilities and keep their systems up to date to prevent future attacks.

AI Now Writes Up to 30% of Microsoft’s Code, Says CEO Satya Nadella

 

Artificial intelligence is rapidly reshaping software development at major tech companies, with Microsoft CEO Satya Nadella revealing that between 20% and 30% of code in the company’s repositories is currently generated by AI tools. 

Speaking during a fireside chat with Meta CEO Mark Zuckerberg at Meta’s LlamaCon conference, Nadella shed light on how AI is becoming a core contributor to Microsoft’s development workflows. He noted that Microsoft is increasingly relying on AI not just for coding but also for quality assurance. 

“The agents we have for reviewing code; that usage has increased,” Nadella said, adding that the performance of AI-generated code differs depending on the programming language. While Python showed strong results, C++ remained a challenge. “C Sharp is pretty good but C++ is not that great. Python is fantastic,” he noted. 

When asked about the role of AI in Meta’s software development, Zuckerberg did not provide a specific figure but shared that the company is prioritizing AI-driven engineering to support the development of its Llama models. 

“Our bet is that probably half the development is done by AI as opposed to people and that will just kind of increase from there,” Zuckerberg said. 

Microsoft’s Chief Technology Officer Kevin Scott has previously projected that AI will be responsible for generating 95% of all code within the next five years. Speaking on the 20VC podcast, Scott emphasized that human developers will still play a vital role. 

“Very little is going to be — line by line — human-written code,” he said, but added that AI will “raise everyone’s level,” making it easier for non-experts to create functional software. The comments from two of tech’s biggest leaders point to a future where AI not only augments but significantly drives software creation, making development faster, more accessible, and increasingly automated.

Microsoft Launches Recall AI for Windows 11 Copilot+ PCs with Enhanced Privacy Measures

 

After months of delays stemming from privacy and security concerns, Microsoft has officially rolled out its Recall AI feature for users of Windows 11 Copilot+ PCs. The feature, which has now exited its beta phase, is included in the latest Windows update. Recall AI enables users to search their on-screen activity by automatically taking screenshots and storing them—along with any extracted text—in a locally encrypted and searchable database. This makes it easier for users to find and revisit previous interactions, such as documents, applications, or web pages, using natural language search. 

Originally introduced in May 2024, Recall AI faced widespread criticism due to concerns around user privacy and the potential for misuse. Microsoft delayed its public launch several times, including a planned release in October 2024, to address these issues and gather feedback from Windows Insider testers. 

In its revised version, Microsoft has made Recall AI an opt-in tool with built-in privacy protections. All data remains on the user’s device, with no transmission to Microsoft servers or third parties. Features such as Windows Hello authentication, full local encryption, and user control over data storage have been added to reinforce security. Microsoft assures users they can completely remove the feature at any time, although temporary system files may persist briefly before being permanently deleted. 

For enterprise users with an active Microsoft 365 E3 subscription, the company offers advanced administrative controls. These allow IT departments to set access permissions and manage security policies related to the use of Recall AI in workplace environments. Alongside Recall AI, Microsoft has also launched two additional features tailored to Copilot+ PCs. 

The improved Windows search function now interprets user queries more contextually and processes them using the device’s neural processing unit for faster and smarter results. Meanwhile, the Click to Do feature provides context-sensitive shortcuts, making tasks like copying or summarising text and images more efficient. In separate developments, Microsoft continues to advance its position in quantum computing.

Earlier this year, the company unveiled Majorana 1, a quantum chip based on a novel Topological Core architecture. According to Microsoft, this breakthrough has the potential to significantly accelerate solutions to industrial-scale problems using quantum technology.

Microsoft Alerts Users About Password-spraying Attack

Microsoft Alerts Users About Password-spraying Attack

Microsoft alerts users about password-spraying attacks

Microsoft has warned users about a new password-spraying attack by a hacking group Storm-1977 that targets cloud users. The Microsoft Threat Intelligence team reported a new warning after discovering threat actors are abusing unsecured workload identities to access restricted resources. 

According to Microsoft, “Container technology has become essential for modern application development and deployment. It's a critical component for over 90% of cloud-native organizations, facilitating swift, reliable, and flexible processes that drive digital transformation.” 

Hackers use adoption-as-a-service

Research says 51% of such workload identities have been inactive for one year, which is why attackers are exploiting this attack surface. The report highlights the “adoption of containers-as-a-service among organizations rises.” According to Microsoft, it continues to look out for unique security dangers that affect “containerized environments.” 

The password-spraying attack targeted a command line interface tool “AzureChecker” to download AES-encrypted data which revealed the list of password-spray targets after it was decoded. To make things worse, the “threat actor then used the information from both files and posted the credentials to the target tenants for validation.”

The attack allowed the Storm-1977 hackers to leverage a guest account to make a compromised subscription resource group and over 200 containers that were used for crypto mining. 

Mitigating password-spraying attacks

The solution to the problem of password spraying attacks is eliminating passwords. It can be done by moving towards passkeys, a lot of people are already doing that. 

Microsoft has suggested these steps to mitigate the issue

  • Use strong authentication while putting sensitive interfaces to the internet. 
  • Use strong verification methods for the Kubernetes API to stop hackers from getting access to the cluster even when valid credentials like kubeconfig are obtained.  
  • Don’t use the read-only endpoint of Kubelet on port 10255, which doesn’t need verification. 

Modify the Kubernetes role-based access controls for every user and service account to only retain permissions that are required. 

According to Microsoft, “Recent updates to Microsoft Defender for Cloud enhance its container security capabilities from development to runtime. Defender for Cloud now offers enhanced discovery, providing agentless visibility into Kubernetes environments, tracking containers, pods, and applications.” These updates upgrade security via continuous granular scanning. 

Microsoft: CLFS Zero-Day Flaw Exploited in Ransomware Attacks

 

Ransomware attackers abused a zero-day flaw in a widely used Windows logging system for managing transactional information to launch attacks against organisations in the US real estate sector, Microsoft revealed Tuesday. 

In a blog post, the tech giant stated that the perpetrators employed a previously unknown flaw discovered in Windows' Common Log File System - a popular target for malicious actors seeking privilege escalation - to attack "a small number of targets," including American real estate firms, a Spanish software company, Venezuela's financial sector, and Saudi Arabia's retail sector. 

The flaw, identified as CVE-2025-29824, has a CVSS score of 7.8 and has been added to the Cybersecurity and Infrastructure Security Agency's "Known Exploited Vulnerabilities Catalogue". 

Microsoft stated that Storm-2460, a ransomware threat actor, used the issue to spread PipeMagic malware. In March, the firm addressed a different bug in the Windows Win32 Kernel Subsystem that allowed hackers to escalate privileges to the system level, an exploit that researchers later linked to targeted assaults targeting Asian and Saudi organisations using a PipeMagic backdoor.

The tech behemoth said it "highly recommends organizations apply all available security updates for elevation of privilege flaws to add a layer of defense against ransomware attacks if threat actors are able to gain an initial foothold.”

Microsoft noted that it has not yet determined how Storm-2460 got access to compromised devices, although it did note that the organisation downloaded malware from a legitimate third-party website it had previously infiltrated using the Windows certutil application.

Following the deployment of PipeMagic, the attackers used a technique that prevented them from writing data to disc and enabled them to launch the log system exploit directly in memory. In a security update posted on Tuesday, the company stated that users of Windows 11, version 24H2, "are not affected by the observed exploitation, even if the vulnerability was present.”

Windows CLFS Zero-Day CVE-2025-29824 Exploited by Ransomware Group Storm-2460

 

A newly disclosed Windows zero-day vulnerability, tracked as CVE-2025-29824, is being actively exploited in cyberattacks to deliver ransomware, Microsoft has warned. This flaw affects the Windows Common Log File System (CLFS) driver and enables local privilege escalation—a method often used by attackers after gaining initial access. 

Microsoft’s Threat Intelligence and Security Response teams revealed that the bug is classified as a “use-after-free” vulnerability with a severity score of 7.8. While attackers need to compromise a system before they can exploit this flaw, it remains highly valuable in ransomware operations. Cybercriminals often rely on these types of vulnerabilities to turn a limited foothold into full administrative control across networks. 

The cybercrime group currently leveraging this zero-day is known as Storm-2460. Microsoft reports that the group is using the exploit to deploy a custom backdoor named PipeMagic, which in turn facilitates the installation of RansomEXX ransomware—a variant not commonly observed but still capable of serious disruption. So far, Storm-2460 has targeted organizations in industries such as IT, finance, and retail, with victims located in countries including the United States, Spain, Saudi Arabia, and Venezuela. 

Microsoft emphasized that the number of known cases remains small, but the sophistication of the exploit is concerning. This attack is notable for being part of a “post-compromise” campaign, meaning the attacker already has a presence within the system before using the flaw. These types of exploits are frequently used to escalate privileges and move laterally within a network, eventually leading to broader ransomware deployment. Microsoft issued a security advisory for CVE-2025-29824 on April 8 and urged organizations to install updates immediately. Failure to do so could leave critical systems vulnerable to privilege escalation and full network compromise. 

To mitigate risk, Microsoft advises businesses to prioritize patch management, restrict unnecessary administrative privileges, and closely monitor for unusual behavior across endpoints. Cybersecurity teams are also encouraged to review logs for any indicators of compromise related to PipeMagic or RansomEXX. As ransomware tactics continue to evolve, the exploitation of vulnerabilities like CVE-2025-29824 reinforces the need for proactive defense strategies and rapid incident response protocols.

New Sec-Gemini v1 from Google Outperforms Cybersecurity Rivals

 


A cutting-edge artificial intelligence model developed by Google called Sec-Gemini v1, a version of Sec-Gemini that integrates advanced language processing, real-time threat intelligence, and enhanced cybersecurity operations, has just been released. With the help of Google's proprietary Gemini large language model and dynamic security data and tools, this innovative solution utilizes its capabilities seamlessly to enhance security operations. 

A new AI model, Sec-Gemini v1 that combines sophisticated reasoning with real-time cybersecurity insights and tools has been released by Google. This integration makes the model extremely capable of performing essential security functions like threat detection, vulnerability assessment, and incident analysis. A key part of Google's effort to support progress across the broader security landscape is its initiative to provide free access to Sec-Gemini v1 to select institutions, professionals, non-profit organizations, and academic institutions to promote a collaborative approach to security research. 

Due to its integration with Google Threat Intelligence (GTI), the Open Source Vulnerabilities (OSV) database, and other key data sources, Sec-Gemini v1 stands out as a unique solution. On the CTI-MCQ threat intelligence benchmark and the CTI-Root Cause Mapping benchmark, it outperforms peer models by at least 11%, respectively. Using the CWE taxonomy, this benchmark assesses the model's ability to analyze and classify vulnerabilities.

One of its strongest features is accurately identifying and describing the threat actors it encounters. Because of its connection to Mandiant Threat Intelligence, it can recognize Salt Typhoon as a known adversary, which is a powerful feature. There is no doubt that the model performs better than its competitors based on independent benchmarks. According to a report from Security Gemini v1, compared to comparable AI systems, Sec-Gemini v1 scored at least 11 per cent higher on CTI-MCQ, a key metric used to assess threat intelligence capabilities. 

Additionally, it achieved a 10.5 per cent edge over its competitors in the CTI-Root Cause Mapping benchmark, a test that assesses the effectiveness of an AI model in interpreting vulnerability descriptions and classifying them by the Common Weakness Enumeration framework, an industry standard. It is through this advancement that Google is extending its leadership position in artificial intelligence-powered cybersecurity, by providing organizations with a powerful tool to detect, interpret, and respond to evolving threats more quickly and accurately. 

It is believed that Sec-Gemini v1 has the strength to be able to perform complex cybersecurity tasks efficiently, according to Google. Aside from conducting in-depth investigations, analyzing emerging threats, and assessing the impact of known vulnerabilities, you are also responsible for performing comprehensive incident investigations. In addition to accelerating decision-making processes and strengthening organization security postures, the model utilizes contextual knowledge in conjunction with technical insights to accomplish the objective. 

Though several technology giants are actively developing AI-powered cybersecurity solutions—such as Microsoft's Security Copilot, developed with OpenAI, and Amazon's GuardDuty, which utilizes machine learning to monitor cloud environments—Google appears to have carved out an advantage in this field through its Sec-Gemini v1 technology. 

A key reason for this edge is the fact that it is deeply integrated with proprietary threat intelligence sources like Google Threat Intelligence and Mandiant, as well as its remarkable performance on industry benchmarks. In an increasingly competitive field, these technical strengths place it at the top of the list as a standout solution. Despite the scepticism surrounding the practical value of artificial intelligence in cybersecurity - often dismissed as little more than enhanced assistants that still require a lot of human interaction - Google insists that Sec-Gemini v1 is fundamentally different from other artificial intelligence models out there. 

The model is geared towards delivering highly contextual, actionable intelligence rather than simply summarizing alerts or making basic recommendations. Moreover, this technology not only facilitates faster decision-making but also reduces the cognitive load of security analysts. As a result, teams can respond more quickly to emerging threats in a more efficient way. At present, Sec-Gemini v1 is being made available exclusively as a research tool, with access being granted only to a select set of professionals, academic institutions, and non-profit organizations that are willing to share their findings. 

There have been early signs that the model will make a significant contribution to the evolution of AI-driven threat defence, as evidenced by the model's use-case demonstrations and early results. It will introduce a new era of proactive cyber risk identification, contextualization, and mitigation by enabling the use of advanced language models. 

In real-world evaluations, the Google security team demonstrated Sec-Gemini v1's advanced analytical capabilities by correctly identifying Salt Typhoon, a recognized threat actor, with its accurate analytical capabilities. As well as providing in-depth contextual insights, the model provided in-depth contextual information, including vulnerability details, potential exploitation techniques, and associated risk levels. This level of nuanced understanding is possible because Mandiant's threat intelligence provides a rich repository of real-time threat data as well as adversary profiles that can be accessed in real time. 

The integration of Sec-Gemini v1 into other systems allows Sec-Gemini v1 to go beyond conventional pattern recognition, allowing it to provide more timely threat analysis and faster, evidence-based decision-making. To foster collaboration and accelerate model refinement, Google has offered limited access to Sec-Gemini v1 to a carefully selected group of cybersecurity practitioners, academics, and non-profit organizations to foster collaboration. 

To avoid a broader commercial rollout, Google wishes to gather feedback from trusted users. This will not only ensure that the model is more reliable and capable of scaling across different use cases but also ensure that it is developed in a responsible and community-led manner. During practical demonstrations, Google's security team demonstrated Sec-Gemini v1's ability to identify Salt Typhoon, an internationally recognized threat actor, with high accuracy, as well as to provide rich contextual information, such as vulnerabilities, attack patterns and potential risk exposures associated with this threat actor. 

Through its integration with Mandiant's threat intelligence, which enhances the model's ability to understand evolving threat landscapes, this level of precision and depth can be achieved. The Sec-Gemini v1 software, which is being made available for free to a select group of cybersecurity professionals, academic institutions, and nonprofit organizations, for research, is part of Google's commitment to responsible innovation and industry collaboration. 

Before a broader deployment of this model occurs, this initiative will be designed to gather feedback, validate use cases, and ensure that it is effective across diverse environments. Sec-Gemini v1 represents an important step forward in integrating artificial intelligence into cybersecurity. Google's enthusiasm for advancing this technology while ensuring its responsible development underscores the company's role as a pioneer in the field. 

Providing early, research-focused access to Sec-Gemini v1 not only fosters collaboration within the cybersecurity community but also ensures that Sec-Gemini v1 will evolve in response to collective expertise and real-world feedback, as Google offers this model to the community at the same time. Sec-Gemini v1 has demonstrated remarkable performance across industry benchmarks as well as its ability to detect and mitigate complex threats, so it may be able to change the face of threat defense strategies in the future. 

The advanced reasoning capabilities of Sec-Gemini v1 are coupled with cutting-edge threat intelligence, which can accelerate decision-making, cut response times, and improve organizational security. However, while Sec-Gemini v1 shows great promise, it is still in the research phase and awaiting wider commercial deployment. Using such a phased approach, it is possible to refine the model carefully, ensuring that it adheres to the high standards that are required by various environments. 

For this reason, it is very important that stakeholders, such as cybersecurity experts, researchers, and industry professionals, provide valuable feedback during the first phase of the model development process, to ensure that the model's capabilities are aligned with real-world scenarios and needs. This proactive stance by Google in engaging the community emphasizes the importance of integrating AI responsibly into cybersecurity. 

This is not solely about advancing the technology, but also about establishing a collaborative framework that can make it easier to detect and respond to emerging cyber threats more effectively, more quickly, and more securely. The real issue is the evolution of Sec-Gemini version 1, which may turn out to be one of the most important tools for safeguarding critical systems and infrastructure around the globe in the future.

Lazarus Gang Targets Job Seekers to Install Malware

Lazarus Gang Targets Job Seekers to Install Malware

North Korean hackers responsible for Contagious Interview are trapping job seekers in the cryptocurrency sector by using the popular ClickFix social-engineering attack strategy. They aimed to deploy a Go-based backdoor— earlier undocumented— known as GolangGhost on Windows and macOS systems. 

Hackers lure job seekers

The latest attack, potentially a part of a larger campaign, goes by the codename ClickFake Interview, according to French cybersecurity company Sekoia. Aka DeceptiveDeployment, DEV#POPPER, and Famoys Chollima; Contagious Interview has been active since December 2022, however, it was publicly reported only after late 2023. 

The attack uses legitimate job interview sites to promote the ClickFix tactic and deploy Windows and MacOS backdoors, said Sekoia experts Amaury G., Coline Chavane, and Felix Aimé, attributing the attack to the notorious Lazarus Group. 

Lazarus involved

One major highlight of the campaign is that it mainly attacks centralized finance businesses by mimicking firms like Kraken, Circle BlockFi, Coinbase, KuCoin, Robinhood, Tether, and Bybit. Traditionally, Lazarus targeted decentralized finance (DeFi) entities. 

Attack tactic explained

Like Operation Dream Job, Contagious Interview also uses fake job offers as traps to lure potential victims and trick them into downloading malware to steal sensitive data and cryptocurrency. The victims are approached via LinkedIn or X to schedule a video interview and asked to download malware-laced video conference software that triggers the infection process. 

Finding of Lazarus ClickFix attack

Security expert Tayloar Monahan first reported the Lazarus Group’s use of ClickFix in late 2022, saying the attack chains led to the installment of a malware strain called FERRET that delivered the Golang backdoor. In this malware campaign, the victims are prompted to use a video interview, ‘Willow,’ and do a sell video assessment. 

The whole process is carefully built to gain users and “proceeds smoothly until the user is asked to enable their camera,” Sekoia said. At this stage, an “error message appears, indicating that the user needs to download a driver to fix the issue. This is where the operator employs the ClickFix technique," adds Sekoia. 

Different attack tactics for Windows and MacOS users

The prompts given to victims may vary depending on the OS. For Windows, victims are asked to open the Command Prompt and run a curl command to perform a Visual Basic Script (VBS) file to launch a basic script to run GolanGhost. MacOS victims are prompted to open the Terminal app and perform a curl command to run a malicious shell script, which then runs another shell script that runs a stealer module called FROSTYFERRET—aka ChromwUpdateAlert— and the backdoor. 

Hacker's Dual Identity: Cybercriminal vs Bug Bounty Hunter

Hacker's Dual Identity: Cybercriminal vs Bug Bounty Hunter

EncryptHub is an infamous threat actor responsible for breaches at 618 organizations. The hacker reported two Windows zero-day flaws to Microsoft, exposing a conflicted figure that blurs the lines between cybercrime and security research. 

The reported flaws are CVE-2025-24061 (Mark of the Web bypass) and CVE-2025-24071 (File Explorer spoofing), which Microsoft fixed in its March 2025 Patch Tuesday updates, giving credit to the reporter as ‘SkorikARI.’ In this absurd incident, the actor had dual identities—EncryptHub and SkorikARI. The entire case shows us an individual who works in both cybersecurity and cybercrime. 

Discovery of EncryptHub’s dual identity 

Outpost24 linked SkorikARI and EncryptHub via a security breach, where the latter mistakenly revealed their credentials, exposing links to multiple accounts. The disclosed profile showed the actor’s swing between malicious activities and cybersecurity operations. 

Actor tried to sell zero-day on dark web

Outpost24’ security researcher Hector Garcia said the “hardest evidence was from the fact that the password files EncryptHub exfiltrated from his system had accounts linked to both EncryptHub” such as credentials to EncryptRAT- still in development, or “his account on xss.is, and to SkorikARI, like accesses to freelance sites or his own Gmail account.” 

Garcia also said there was a login to “hxxps://github[.]com/SkorikJR,” which was reported in July’s Fortinet story about Fickle Stealer; this helped them solve the puzzle. Another big reveal of the links to dual identity was ChatGPT conversations, where activities of both SkorikARI and EncryptHub could be found. 

Zero-day activities and operational failures in the past

Evidence suggests this wasn't EncryptHub's first involvement with zero-day flaws, as the actor has tried to sell it to other cybercriminals on hacking forums.

Outpost24 highlighted EncryptHub's suspicious activities- oscillating between cybercrime and freelancing. An accidental operational security (OPSEC) disclosed personal information despite their technical expertise. 

EncryptHub and ChatGPT 

Outpost24 found EncryptHub using ChatGPT to build phishing sites, develop malware, integrate code, and conduct vulnerability research. One ChatGPT conversation included a self-assessment showing their conflicted nature: “40% black hat, 30% grey hat, 20% white hat, and 10% uncertain.” The conversation also showed plans for massive (although harmless) publicity stunts affecting tens of thousands of computers.

Impact

EncryptHub has connections with ransomware groups such as BlackSuit and RansomHub who are known for their phishing attacks, advanced social engineering campaigns, and making of Fickle Stealer- a custom PowerShell-based infostealer. 

Ransomware Found in VSCode Extensions Raises Concerns Over Microsoft’s Security Review

 

Cybersecurity experts have discovered ransomware hidden within two Visual Studio Code (VSCode) Marketplace extensions, raising concerns about Microsoft’s ability to detect malicious software in its platform. The compromised extensions, named “ahban.shiba” and “ahban.cychelloworld,” were downloaded by users before security researchers flagged them and they were subsequently removed. 

Despite Microsoft’s security measures, the extensions remained publicly accessible for a significant period, highlighting potential gaps in the company’s review process. The “ahban.cychelloworld” extension was first uploaded on October 27, 2024, followed by “ahban.shiba” on February 17, 2025. The VSCode Marketplace, designed to provide developers with additional tools for Microsoft’s popular coding platform, has come under scrutiny for failing to identify these threats. 

Researchers at ReversingLabs determined that both extensions included a PowerShell script that connected to a remote Amazon Web Services (AWS) server to download further malicious code. This secondary payload functioned as ransomware, though evidence suggests it was still in a testing phase. 

Unlike traditional ransomware that encrypts entire systems, this malware specifically targeted files stored in C:\users%username%\Desktop\testShiba.  Once the encryption was complete, victims received a Windows notification stating: “Your files have been encrypted. Pay 1 ShibaCoin to ShibaWallet to recover them.” However, no further instructions or payment details were provided, suggesting the malware was not yet fully developed.  

Although Microsoft eventually removed the extensions, security researcher Italy Kruk from ExtensionTotal disclosed that their automated detection system had identified the malicious code much earlier. Kruk stated that they had alerted Microsoft about the issue but received no response. Further analysis revealed that the initial version of “ahban.cychelloworld” was clean, but the ransomware was introduced in version 0.0.2, which was released on November 24, 2024. ExtensionTotal flagged this version to Microsoft on November 25, yet the extension remained available for months. 

During this time, five more versions were uploaded, all containing the same ransomware. This case has intensified concerns about Microsoft’s ability to monitor third-party extensions effectively. The security lapse within the VSCode Marketplace highlights the risk developers face when downloading extensions, even from official sources. Microsoft has previously faced criticism for both slow responses to security threats and for mistakenly removing non-malicious extensions. 

A notable example involved two popular VSCode themes, ‘Material Theme – Free’ and ‘Material Theme Icons – Free,’ which were taken down due to suspected obfuscated JavaScript. However, after further review, Microsoft determined the extensions were safe, reinstated them, and apologized, promising improvements to its security screening process. The presence of ransomware in widely used developer tools underscores the need for stronger security measures. Developers must stay cautious, regularly update security protocols, and carefully evaluate third-party extensions before installing them, even when they come from official platforms like the VSCode Marketplace.

Microsoft Warns of Malvertising Campaign Impacting Over 1 Million Devices Worldwide

 

Microsoft has revealed details of a large-scale malvertising campaign that is believed to have impacted over one million devices worldwide as part of an opportunistic attack aimed at stealing sensitive information. 

The tech giant, which discovered the activity in early December 2024, is tracking it under the broader Storm-0408 umbrella, which refers to a group of attackers known for distributing remote access or information-stealing malware via phishing, search engine optimisation (SEO), or malvertising.

"The attack originated from illegal streaming websites embedded with malvertising redirectors, leading to an intermediary website where the user was then redirected to GitHub and two other platforms," the Microsoft Threat Intelligence team stated. "The campaign impacted a wide range of organizations and industries, including both consumer and enterprise devices, highlighting the indiscriminate nature of the attack.”

The campaign relied on GitHub to deliver initial access payloads, but payloads were also detected on Discord and Dropbox. The GitHub repositories were removed, but the number of such repositories was not disclosed. The Microsoft-owned code hosting service serves as a staging ground for dropper malware, which deploys a series of ads.

The Microsoft-owned code hosting site serves as a staging ground for dropper malware, which is in charge of launching a number of further programs such as Lumma Stealer and Doenerium, which can then collect system information. The assault also uses a sophisticated redirection chain with four to five layers, with the first redirector embedded in an iframe element on unlawful streaming websites that serve pirated content.

The entire infection sequence consists of several stages, including system discovery, information collecting, and the employment of follow-on payloads like NetSupport RAT and AutoIT scripts to assist more data theft. The remote access trojan also acts as a gateway for stealer malware. 

  • First stage: Establish a footing on target devices.
  • Second stage: system reconnaissance, collection, exfiltration, and payload delivery. 
  • Third stage: It involves command execution, payload delivery, defence evasion, persistence, command-and-control communications, and data exfiltration. 
  • Fourth stage: PowerShell script for configuring Microsoft Defender exclusions and running commands to download data from a remote server. 

Another feature of the assaults is the use of numerous PowerShell scripts to download NetSupport RAT, identify installed apps and security software, and scan for the presence of cryptocurrency wallets, which indicates possible financial data theft.

"Besides the information stealers, PowerShell, JavaScript, VBScript, and AutoIT scripts were run on the host," Microsoft said. "The threat actors incorporated use of living-off-the-land binaries and scripts (LOLBAS) like PowerShell.exe, MSBuild.exe, and RegAsm.exe for C2 and data exfiltration of user data and browser credentials.” 

The disclosure comes after Kaspersky reported that fake websites masquerading as DeepSeek and Grok artificial intelligence (AI) chatbots are being used to lure users into installing a previously unknown Python information stealer.

DeekSeek-themed decoy sites promoted by verified accounts on X (e.g., @ColeAddisonTech, @gaurdevang2, and @saduq5) have also been used to run a PowerShell script that leverages SSH to enable attackers remote access to the machine. 

"Cybercriminals use various schemes to lure victims to malicious resources,' the Russian cybersecurity company noted. "Typically, links to such sites are distributed through messengers and social networks. Attackers may also use typosquatting or purchase ad traffic to malicious sites through numerous affiliate programs.”