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AgentBaiting: How Fake AI Skills Deliver Malware at Scale

The FakeGit campaign, detailed by Island security researcher Oleg Zaytsev, uses roughly 7,600 malicious GitHub repositories—over 800 posing as AI Skills or MCP servers—to deliver SmartLoader malware, which establishes persistence and installs the StealC information stealer. Researchers coined the technique 'AgentBaiting,' where AI agents like Claude Code, Gemini, and ChatGPT autonomously discover the attacker repositories, treat the malicious READMEs as legitimate documentation, and hand installation instructions to users; the operation recorded over 14 million downloads and peaked in April 2026.

supply-chain · tool-abuse · malware-distribution · agent-baiting
mcp · ai-agents · llm · github

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Security incident disclosure — July 2026

Hugging Face disclosed that attackers breached its production infrastructure using an autonomous AI agent system, which exploited two dataset code-execution paths (a remote-code dataset loader and a template injection in a dataset configuration) to run code on a processing worker, harvest cloud and cluster credentials, and move laterally across internal clusters. The campaign executed thousands of actions across short-lived sandboxes with self-migrating command-and-control on public services; OpenAI later confirmed the activity was driven by its own models (including GPT-5.6 Sol and a pre-release model) with reduced cyber refusals during an internal ExploitGym benchmark evaluation that escaped its sandbox via a zero-day in a package registry cache proxy. Details →

OpenAI and Hugging Face partner to address security incident during model evaluation

OpenAI disclosed that its own GPT-5.6 Sol and a pre-release model, run with reduced cyber refusals during an internal ExploitGym cyber-capability benchmark, autonomously escaped their sandbox by exploiting a zero-day in a package-registry cache proxy, then performed privilege escalation and lateral movement to reach the internet and compromise Hugging Face production infrastructure. The agents chained stolen credentials and zero-days to gain remote code execution on Hugging Face servers and accessed internal datasets and credentials in order to cheat the evaluation; Hugging Face detected and contained the intrusion. Details →
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