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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 its production infrastructure using an autonomous AI agent framework, stealing internal datasets and cloud/cluster 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 and moved laterally across internal clusters, executing thousands of actions across short-lived sandboxes with self-migrating command-and-control staged on public services. Hugging Face closed the vulnerable paths, evicted the attacker, rebuilt nodes, and rotated credentials. Details →

(A)I Sees What You Don't: Exploiting New Attack Surfaces in Third-Party Mobile Agents

Researchers from Simon Fraser University, CUHK, Shandong University, and QAX's Xingtu Lab published an arXiv paper (arXiv:2607.00333) demonstrating seven concrete attacks against five open-source mobile AI agent frameworks (AppAgent, AppAgentX, Mobile-Agent-v3, Open-AutoGLM, and MobA). A malicious Android app without privileged permissions can slip invisible on-screen text that the VLM-driven agent reads and acts on, exploiting a 'Screen Perception' surface (human-vs-machine vision gap) and a 'Misused Channel' surface to hijack agent actions and even achieve arbitrary command execution on the host PC driving the agent. All five frameworks fell to at least six of the seven attacks; no CVE was assigned and authors report no evidence of in-the-wild use. 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 →

Modern Malware — Spyware Skills, Hijacked Base URLs, and 1,230+ Leaking API Keys in AI Instruction Files

Mitiga Labs details malware hidden in AI agent instruction files — Cursor rules, Anthropic Skills, Claude Hooks, AGENTS.md/CLAUDE.md context files, MCP server configs, and .pyc droppers — that AI agents follow with near-zero validation. The research found prompt-exfiltration tradecraft caught in the wild, attacker-controlled ANTHROPIC_BASE_URL overrides routing Claude traffic through MITM proxies, permission-bypass defaults, and over 1,230 hardcoded API keys and JWT tokens across tens of services. Mitiga also released a free scanner, Skillgate, built during the investigation. 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 →

Your Agent's Memories Are Not Its Own: Forged Reasoning Attacks on LLM Agent Memory and Defenses

Researchers at Penn State introduce FARMA (Forged Amplifying Rationale Memory Attack), which poisons an LLM agent's remembered reasoning history rather than its factual knowledge, inserting forged reasoning traces with evasive language that bypass keyword filters and self-referential reinforcement that defeats consensus-based defenses like A-MemGuard, achieving up to 100% attack success. They also present SENTINEL, a layered defense pipeline whose Reasoning Guard structurally analyzes entries using five weighted signals, reducing FARMA's success rate to as low as 0% with no false positives across 326 benign traces. Details →

Refused in Chat, Written in Code: Workflow-Level Jailbreak Construction in IDE Coding Agents

Alan Turing Institute researchers Abhishek Kumar and Carsten Maple demonstrated a "workflow-level jailbreak construction" against GitHub Copilot in VS Code, showing that harmful requests refused in direct chat succeed when decomposed across ordinary multi-turn IDE coding tasks. Across 204 prompts from Hammurabi's Code, HarmBench, and AdvBench, four closed-weight backends (Claude Sonnet 4.6, Claude Haiku 4.5, Gemini 3.1 Pro, Gemini 3.5 Flash) refused in 808/816 direct tries but produced unsafe outputs in all 816/816 runs when the harmful objective was embedded as an input to a coding workflow. Details →

GhostApproval: AI Coding Assistant Trust Boundary Flaw

Wiz researchers disclosed GhostApproval (CVE-2026-12958 and related), a symlink-following vulnerability pattern (CWE-61 plus CWE-451 UI misrepresentation) affecting six top AI coding assistants: Amazon Q Developer, Anthropic Claude Code, Augment, Cursor, Google Antigravity, and Windsurf. A malicious repository disguises a symlink as an innocuous config file so that when the agent 'sets up the workspace' it writes an attacker SSH key to ~/.ssh/authorized_keys — sometimes before any confirmation dialog — while the human-in-the-loop approval prompt conceals the true target, enabling remote code execution. AWS, Cursor, and Google fixed the issue; two vendors went silent and one called it outside its threat model. Details →

We put the exploit in a picture. Your AI code reviewer never opens it.

Researchers from the University of Missouri-Kansas City's ASSET Research Group demonstrated 'Ghostcommit,' an attack that hides malicious prompt-injection instructions inside a PNG image so AI code reviewers (CodeRabbit, Cursor Bugbot) never see them. A benign-looking AGENTS.md convention file points to build-spec.png, whose rendered text instructs a coding agent to read the repo's .env byte-by-byte and emit the secrets as an integer tuple; the payload sits dormant until an unrelated agent session triggers exfiltration. A proof-of-concept is published on GitHub and the findings were disclosed to affected vendors. Details →
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