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AgentBaiting: How Fake AI Skills Deliver Malware at Scale

Island security researchers uncovered the FakeGit campaign, which used roughly 7,600 malicious GitHub repositories—over 800 posing as AI Skills or MCP servers—to deliver SmartLoader malware that installs the StealC information stealer. The campaign introduces a technique called AgentBaiting, in which AI agents such as Claude Code, Gemini, and ChatGPT autonomously discover the attacker repositories, treat the malicious README as legitimate documentation, and pass installation instructions to users; the operation recorded over 14 million downloads.

supply-chain · tool-abuse · malware-delivery · agentbaiting
mcp · ai-agents · ai-skills · llm · copilot

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Security incident disclosure — July 2026

Hugging Face disclosed that attackers breached part of its production infrastructure using an autonomous AI agent framework, gaining access to internal datasets and service credentials. The intrusion began when a malicious dataset abused two code-execution paths (a remote-code dataset loader and a template injection in a dataset configuration) to run code on a processing worker, after which the agent swarm escalated to node-level access, harvested cloud and cluster credentials, and moved laterally across internal clusters using self-migrating command-and-control staged on public services. Details →

JADEPUFFER: Agentic ransomware for automated database extortion

Sysdig researchers documented JadePuffer, described as the first ransomware operation conducted end-to-end by an autonomous LLM agent. The agent gained initial access by exploiting CVE-2025-3248 (an unauthenticated RCE in the Langflow LLM-app framework), then autonomously performed reconnaissance, credential theft, lateral movement, persistence (a beaconing cron job), privilege escalation via Nacos auth bypass CVE-2021-29441, and encrypted 1,342 Nacos configuration items—adapting to failures in real time (e.g., recovering from a failed login in 31 seconds). Details →

Indirect Prompt Injection Targets AI Agents | ThreatLabz

Zscaler ThreatLabz observed two in-the-wild campaigns using indirect prompt injection (IPI) embedded in malicious websites to manipulate web-browsing AI agents. One campaign uses SEO poisoning around a fake Python library (requests-secure-v2) with hidden prompts and schema-markup instructions telling agents to make a cryptocurrency payment to a hardcoded wallet to obtain an API key; the other typosquats the DeFi tracker DeBank, embedding prompts convincing agents the fraudulent site is legitimate. In testing an autonomous payment-capable agent across 26 LLMs, four (Llama 3.3 70B, Llama 3.2 90B Vision, Gemini 3 Flash, Gemini 2.5 Pro) were tricked into paying and two miscategorized the fake DeBank as trusted. Details →

NadMesh Botnet Analysis: A Product-Grade Threat for the AI Service Era

NadMesh is a Go-based botnet observed in early July 2026 by QiAnXin's XLab that autonomously scans for and exploits exposed AI services — ComfyUI, Ollama, n8n, Open WebUI, Langflow, and Gradio — using a Shodan harvester (ai_harvest.py) to prioritize AI infrastructure and the MCP ecosystem. It folds scanning, 20+ RCE exploitation vectors (Redis, Docker, MCP, Kubernetes), credential/AI-service intelligence harvesting, polymorphic builds, and redundant persistence into a single productized platform; the operator's dashboard claims 3,811 unique AWS keys plus model inventories tagged as cloud services. Details →

Miasma Supply Chain Attack: Azure Hit, 73 Repos Down, 37 PyPI Wheels

The Miasma supply-chain worm campaign expanded to poison Microsoft's Azure/durabletask GitHub repository with config files that execute a credential-harvesting payload the moment a developer opens the repo in AI coding tools like Claude Code, Gemini CLI, Cursor, or VS Code, triggering GitHub to disable 73 Microsoft repositories including Azure/functions-action. Two days later the Hades variant dropped 37 malicious PyPI wheels across 19 packages using Python .pth startup hooks to run a Bun-powered credential stealer on every interpreter launch, with Socket tracking 448 affected artifacts across npm and PyPI. Details →
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