A former Army soldier responsible for a series of attacks and extortion attempts on telecom companies, including AT&T, was sentenced to 70 months in prison, the Justice Department said Friday.

Cameron John Wagenius engaged in a cybercrime spree for years, including while he was on active duty on a base in Texas. Prior to his arrest in December 2024, Wagenius attempted to sell stolen sensitive data to a foreign intelligence service and sought information online about defecting to Russia.

“Cameron Wagenius spent more than a year and a half betraying the trust placed in him as an active duty soldier by carrying out a sweeping cybercrime campaign,” said A. Tysen Duva, assistant attorney general of the Justice Department’s Criminal Division, said in a statement.

Wagenius, who pleaded guilty in July 2025, leaked stolen call records of President Donald Trump as part of multiple failed attempts to extort $500,000 from AT&T, Allison Nixon, chief research officer at Unit 221B, previously told CyberScoop. 

Authorities did not name Wagenius’ alleged victims in court filings, but said he disclosed non-content call detail records belonging to a government official and family members of another former official. AT&T in July confirmed cybercriminals accessed the company’s Snowflake environment in April and stole six months of phone and text records of “nearly all” of its customers. 

Wagenius’ and one of his co-conspirators, Connor Moucka, attempted to extort more than 10 organizations after stealing credentials and breaking into cloud platforms used by AT&T and other major companies based in the United States and abroad. 

Moucka, a Canadian extradited to the United States in March 2025, pleaded guilty in August to playing a central role in one of the most far-reaching cyberattacks of 2024 — the widespread compromise of more than 165 Snowflake customer environments, resulting in massive data theft for extortion.

Wagenius, Moucka and their alleged co-conspirator John Erin Binns, who is not presently in U.S. custody, stole billions of sensitive records and received more than $2.5 million in extortion payments combined, according to prosecutors. Victims of the attack spree included AT&T, Ticketmaster, Advance Auto Parts and Santander.

Some of the records in Wagenius’ possession at the time of his arrest were stolen in the attack spree on Snowflake customer databases, according to cybercrime researchers. Officials said Wagenius was directly involved in attempted extortion attempts targeting multiple organizations for a combined total of more than $1 million. 

The 22-year-old was ordered to pay almost $295,000 in restitution for his crimes.

“His hacking schemes were not only aimed at getting rich, he was also motivated by a desire to achieve status within criminal hacking communities,” Charles Neil Floyd, first assistant attorney for the U.S. District Court for the Western District of Washington, said in a statement. “This sentence must impose real consequences to deter him, and hopefully other would-be hackers.”

Wagenius, who identified himself as “kiberphant0m” and “cyb3rph4nt0m” on online criminal forums, used a hacking tool he helped develop called SSH Brute to steal credentials while on active duty, officials said. Wagenius and his co-conspirators threatened the victim organizations privately and in public forms, officials added.

“It is especially shocking that a member of our armed forces, sworn to defend Americans and their constitutional rights, would engage in such a violation of privacy,” W. Mike Herrington, special agent in charge of the FBI Seattle field office, said in a statement.

When federal law enforcement seized Wagenius’ devices in December 2024, they found evidence indicating he had access to thousands of stolen identification documents and large amounts of cryptocurrency. Days later, Wagenius purchased a new laptop against his commanding officer’s order, according to officials, and used it every day over a five-day period in the barracks at Fort Cavazos in Texas with VPN software to hide his identity and location.

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The U.S. Supreme Court ruled Friday that states may use the federal SAVE database to verify voter citizenship, reversing lower court decisions that found the database was inaccurate and would likely disenfranchise eligible voters.

In its opinion, the majority wrote that “the Federal Government has an obligation to respond to requests from state and local election officials seeking to verify the citizenship of voters.”

“The District Court’s order thus inhibits the Federal Government’s efforts to assist state and local agencies in the proper administration of the midterm elections, the ruling reads. “Under these circumstances, the equities weigh in favor of a stay.”

The Department of Homeland Security initially designed the SAVE database to determine benefit eligibility for immigrants and to track applicants pursuing U.S. citizenship. Under the Trump administration, it had been repurposed to screen voters for citizenship. Critics say the tool is outdated, often inaccurate and poses a significant risk of wrongly removing eligible voters from rolls.

Voting rights groups, including the League of Women Voters and the Electronic Privacy Information Center, filed suit last year. They argued that combining SAVE data with Social Security records violated confidentiality provisions in the Social Security Act, the Privacy Act and the Administrative Procedures Act.

While the ruling permits states to use the database, adoption remains uncertain. Some conservative states have used SAVE previously, saying it has been helpful in maintaining voter rolls. However, most states have resisted the federal government’s efforts to use citizenship verification systems or wrest control of voter registration efforts away from states. The Trump administration has lost 23 federal court cases in attempts to compel states to share additional data.  

Election experts said that the ruling’s impact on 2026 is likely to be limited because of federal laws that bar states from making changes to voter registration within 90 days of an election.

“Given that the SAVE system is used purely as a voluntary system to assist states in keeping their voter lists accurate, states may find this to be a helpful tool to use alongside other mechanisms to keep their lists up to date, even as the Department of Homeland Security itself admits the data is not perfect and evidence suggests the SAVE system has significant flaws,” said David Becker, executive director of the nonprofit Center for Election Innovation and Research.

Three justices – Ketanji Brown Jackson, Sonia Sotomayor and Elena Kagan – dissented, noting that “without full briefing or oral argument, this Court now grants [a stay]—rendering questionable interim rulings about two statutory provisions it has never before interpreted.”

There are laws and procedures that govern how and when federal systems are changed or modified. In this case, DHS did not create a legally mandated system of records notice (SORN) for the SAVE database outlining the broader impacts of the changes on data privacy. Nor did they engage in or offer a public comment period. Instead, they simply announced in May 2025 that the database was ready for use.

In court, the administration cited the Illegal Immigration Reform and Immigrant Responsibility Act to justify merging DHS and Social Security data. That argument was rejected by lower courts, and dissenters argued that the Supreme Court majority overturned those rulings without deliberation about whether the administration’s legal reasoning was sound.

“The majority thus treats [the Illegal Immigration Reform and Immigrant Responsibility Act] as essentially overriding the limits that privacy laws impose on the sharing of citizenship information with DHS. But that ‘back-of-the-napkin assessment,’ is implausible,” wrote Jackson.

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A new Democratic bill in Congress would establish a federal Cybersecurity and AI Board of Investigations to provide independent government oversight of cyberattacks carried out by AI agents, following recent hacks by models run at companies like Anthropic, OpenAI, Meta and others.

The bill, introduced by Sen. Ed Markey, D-Mass., would attempt to establish a federal mechanism to investigate incidents where AI models escape sandbox environments and access live internet systems.

Currently, frontier AI companies like OpenAI and Anthropic largely control the investigation and public reporting of such incidents. Markey and other critics argue that these companies have too much control over investigations and reporting due to their financial and legal interests. 

“Despite the unprecedented depth and scale of recent AI-enabled cyberattacks, the public is learning critical details piecemeal,” Markey said in a statement. “Building stronger defenses requires a full accounting of what goes wrong, and we cannot depend on companies with little incentive to disclose their failures to give us one. We need the Cybersecurity and AI Board of Investigations to get to the bottom of major incidents and give companies and the government the critical information necessary to build resilience and better secure our economy and our country.”

Although frontier AI companies maintain external red-teaming programs and allow limited access to organizations like METR and Redwood Research, they control the scope, terms and time frames of those engagements.

The board, which would coordinate with the secretary of commerce, could subpoena witnesses and conduct “independent and impartial reviews and assessments” of AI agent-led hacks that impact federal information systems or critical infrastructure. 

It would be led by five members, appointed by the president and confirmed by the Senate for five-year terms, with no more than three members from one political party.

The board would also investigate systemic vulnerabilities in the AI supply chain, so-called “near misses” where unauthorized agent-led hacks were “narrowly averted,” and gaps in federal regulatory oversight. It would have technical staff including engineers, malware analysts, and digital forensic experts.

The board would “operate independently from regulatory review and enforcement actions without assigning legal fault or liability for any review and assessment” it conducts, according to the bill.

OpenAI confirmed Wednesday its AI agents breached a statistics portal used by the Australian government’s social services agency, Services Australia. Though the breach happened in June, OpenAI learned of the incident in August. Australian Prime Minister Anthony Albanese said the company did not notify him until Sept. 10, when it sent findings to a general government email inbox, according to the BBC.

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A 35-year-old Armenian national was sentenced to two years in prison for his involvement in a series of Ryuk ransomware attacks while living in Ukraine and Russia in 2019 and 2020, the Justice Department said Tuesday.

Karen Vardanyan was extradited from Ukraine to the United States last year and pleaded guilty to computer fraud and conspiracy to commit fraud and extortion in July. Vardanyan’s sentencing, which also calls for about $1.2 million in restitution to victims, matches terms of a plea agreement he reached with prosecutors.

Vardanyan and his co-conspirators’ victims include a Michigan-based company that paid a ransom of nearly $1.2 million in January 2020, a Watsonville, Oregon-based technology company that was attacked in December 2019 and a Texas-based school breached in February 2020, according to court records.

“Like Vardanyan, many cybercriminals are not masterminds of a complex ransomware or extortion scheme but nonetheless play an integral part in the success of these crimes,” read a memo signed by U.S. attorneys in the District of Oregon.

“Unfortunately, high rewards and a relatively low risk of detection are basic features of cybercrime. The only way to affect the cost-benefit analysis of these crimes is to impose meaningful sentences on those who are caught,” the U.S. attorneys added.

Prosecutors previously accused Vardanyan and his co-conspirators — Ukrainian nationals Oleg Nikolayevich Lyulyava and Andrii Leonydovich Prykhodchenko, and Armenian national Levon Georgiyovych Avetisyan — of illegally accessing computer networks to deploy Ryuk ransomware on hundreds of compromised servers and workstations between March 2019 and September 2020.

Ryuk ransomware was prevalent in 2019 and 2020, infecting thousands of victims globally across the private sector, state and local municipalities, local school districts and critical infrastructure, including a wave of attacks on U.S. hospitals.

Victims of Ryuk ransomware attacks include Hollywood Presbyterian Medical Center, Universal Health Services, Electronic Warfare Associates, a North Carolina water utility and multiple U.S. news outlets.

Justice Department officials said Vardanyan and his co-conspirators received about 1,160 bitcoins — valued at more than $15 million at the time — in ransom payments from victim companies.

Prosecutors said they found no evidence Vardanyan was still engaged in criminal activity at the time of his arrest. Vardanyan’s incarceration will be followed by three years of supervised release, and his conviction will have immigration consequences resulting in removal from the United States after serving his sentence.

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OpenAI and the Ukrainian government have agreed to a partnership that will provide AI tools and subsidized computing resources to better protect the nation’s critical infrastructure from cyberattacks.

The agreement, announced Wednesday at OpenAI’s New York office, will provide Ukrainian cybersecurity officials with access to advanced AI models designed for cybersecurity work through the company’s Daybreak program. OpenAI said it is also pledging over $1 billion in subsidized tokens to support the initiative.

During a panel discussion Dmytro Kushneruk, consul general of Ukraine in San Francisco, outlined how the tools would be used for cybersecurity automation, including functions such as incident response, threat triaging, login analysis, inventorying systems, code analysis and validating vulnerabilities.

In nearly all cases, Kushneruk said the primary benefit was carrying out those functions at machine speed. But this speed is meant to complement, not replace, Ukrainians’ human expertise.

In regard to incident response Kushneruk said humans must view “thousands and thousands of these logs and they have to find what’s really important, that’s why AI can give capable defenders really much greater advantage and leverage.” 

“This is why the object is not to replace the cyber defender with AI, but to make sure the cyber defender acts faster,” he added.

Kushneruk said that for Ukraine, the partnership “is really not about protecting computers, it is about actually keeping our country running.”

Ukraine faces approximately 6,000 cyberattacks per year, or about 15 per day, according to Kushneruk. Over the past twelve years, the country’s critical infrastructure, including electricity and water systems, has endured sustained attacks from Russia in the form of cyberattacks and physical strikes.

Since Russia’s 2022 invasion, Ukraine’s critical infrastructure has been under constant threat. While missiles remain the primary concern, Kushneruk said Ukraine has been preparing to protect vital services since Russian GRU hackers shut down the country’s power grid in 2015. 

He added that while the country was “maybe not so much prepared” to deal with the fallout in 2015, it improved over time, including the resilience displayed in 2025 when trains kept running after Russian hackers attacked Ukraine’s railway system.

Some national security experts and congressional committees have explicitly cited the resilience of Ukrainian critical infrastructure as a model for U.S. industry.

Naz Durakoğlu, minority staff director of the U.S. Senate Foreign Relations Committee, said there is “pretty much across the board” agreement between the parties in favor of similar adoption of defensive AI tools by U.S. critical infrastructure operators, though issues like regulation remain sticking points.

“This is something that’s already happening, and frankly, it’s just kind of a basic duty of government to make sure that when you turn the tap on, water comes out, the electricity doesn’t go out, and hospitals keep running and treating patients,” said Durakoğlu. “So there is a broad understanding that this is a major issue, and I will say seeing what Ukraine has to go through day-to-day is also a huge wake-up call to our members on a bipartisan basis.”

OpenAI has publicly pushed for its product, and AI at-large, to be used to solve these types of problems. Company president and co-founder Greg Brockman signed an open letter released earlier this year calling for “collective action” and widespread use of AI models to find and fix vulnerabilities before the rest of the world,  including foreign governments and cybercriminals, got access to the same capabilities.

According to Politico, OpenAI CEO Sam Altman met with U.S. power companies in July to discuss using AI to protect the nation’s electrical grids.

On Wednesday, OpenAI’s national security policy head, Sasha Baker, said the company felt “urgency” to try to strike similar agreements with other governments and industries.

“There’s this period of time where we’re really rushing to get [these tools] in the hands of critical infrastructure operators, of governments around the world, of people who want to patch systems, defend their networks, remediate vulnerabilities because we know as these tools proliferate out there in the ecosystems, there are going to be bad guys out there that also try to use them,” said Baker. “So, we have this window of time to take action and we’re really motivated by the idea that we need to act with some urgency.”

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The FBI is investigating an attack on its own systems after ShinyHunters claimed responsibility for the incident, putting the prolific cybercrime group in the most direct conflict yet with agents responsible for investigating data extortion attacks.

The Monday breach, first reported by 404 Media, allowed ShinyHunters to temporarily deface the FBI jobs site. The group claimed it stole “very sensitive data on almost all FBI agents and individuals who filed an application with the FBI for a job,” in a lengthy post on its data-leak site.

“The FBI is aware of claims regarding unauthorized activity affecting FBIjobs.gov and is currently investigating,” a spokesperson for the agency said in a statement.

An alert on the FBI jobs site notes that apply.fbijobs.gov and the Special Agent Application Portal are currently unavailable.

The attack marks a sobering escalation by ShinyHunters, a notorious group that previously targeted major cloud platforms, healthcare organizations, universities, technology companies, retailers and education service providers. Previous victims of ShinyHunters this year include Instructure, Salesforce, Snowflake and McKesson.

“The ShinyHunters ransomware group appears to be actively trying to put a target on their back,” Cynthia Kaiser, senior vice president at Halcyon’s ransomware research center, told CyberScoop. 

ShinyHunters claims it targeted the FBI in response to a public service announcement it says contains false allegations about the group. The FBI issued the PSA following ShinyHunters’ May attack on Instructure, the company behind Canvas, a widely used central hub for K-12 and university coursework, exams and communication. 

The group responded with its own “PSA” on its data-leak site, insisting it is not affiliated with The Com, has never conducted swatting attacks or claimed it had sensitive or compromising information, including embarrassing photos or videos, to extort victims. 

The PSA was addressed to Brett Leatherman, assistant director of the FBI’s cyber division, and FBI Director Kash Patel. 

“While ShinyHunters has in the past been hyperbolic about the criticality of the data they’ve accessed, the group has established itself as a legitimate threat,” Flashpoint analysts told CyberScoop. 

“This attack benefits ShinyHunters by bolstering their reputation as a credible threat,” the analysts added. “In the group’s statement on their leak site regarding the breach, they portray the FBI’s PSA as an “attempt to ‘disrupt’ our operations and hinder clients’ trust in our organization hoping nobody pays us.”

The threat group typically uses social engineering, abuses weaknesses in identity systems or exploits vulnerabilities to gain access to cloud-hosted environments containing troves of sensitive or proprietary data, which it threatens to leak if the victim doesn’t pay a ransom.

ShinyHunters doesn’t appear to be seeking a payoff in this case, but rather a bid to coerce the FBI into amending or removing the May PSA. The group didn’t make any direct threat in the data-leak site post to release the stolen data, but it set a deadline of one week for action.

That coercive approach toward the FBI could backfire, according to experts. 

“Ransomware groups are largely successful because they operate like businesses,” said Kaiser, a former deputy assistant in the FBI’s cyber division. “Targeting other criminal groups or law enforcement — especially in ways intended to publicly shame — demonstrates a lack of discipline that historically has led to takedowns, takeovers or defections.”

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Volexity researchers spotted another state-aligned Chinese threat group exploiting a triple-link chain of zero-day vulnerabilities across multiple campaigns, the company said in a blog post Monday.

The threat group it tracks as UTA0565 exploited the vulnerabilities in Chrome and Microsoft between Sept. 3 and 4 before the defects were disclosed or patched, researchers said.

The timing of the malicious activity mirrors other spikes threat hunters observed and attributed to multiple Chinese espionage threat groups. Yet, Volexity noted UTA0565’s campaigns differed from those attacks by using multiple fake websites to deceive victims.

Volexity shared phishing emails UTA0565 sent to Asian government entities urging them to publicly support imprisoned Hong Kong activist Chow Hang-tung. The group spoofed domains impersonating the Center for American Progress and China Digital Times in other phishing emails.

While UTA0565 showcased a variance in tactics, it used the same components researchers observed in previous instances of the exploit kit across multiple Chinese threat groups.

“This seemingly widespread adoption across multiple threat actors suggests a coordinated effort within the Chinese computer network exploitation community, where the core kit was likely shared, customized, and weaponized by multiple groups,” Volexity wrote in the blog post. “The activity reported so far reflects only two organizations’ observations; the full scope and impact are likely far broader.”

The vulnerabilities include: CVE-2026-85046 and CVE-2026-87491, remote-code execution defects in the JavaScript engine for Chromium-based browsers; and CVE-2026-85880, a privilege-escalation zero-day that Microsoft disclosed Sept. 8 in Windows Advanced Local Procedure Call. 

Proofpoint, which previously observed multiple state-aligned threat groups chaining the vulnerabilities together in attacks since last August, said a limited group of organizations were exposed to all three vulnerabilities in a short window. 

Proofpoint previously attributed attacks involving the zero-days to APT31, UNK_LateNight, UNK_DoubleCheck and UNK_QuietRacket. At the time it warned that attackers of other origins and motivations could strike soon as well.

Volexity said UTA0565 used a payload from a previously undocumented malware family it tracks as “CLEANGULP.” Researchers also found several domains likely used by UTA0565 in similar campaigns targeting media organizations, halal restaurant search websites and corporate training organizations. 

“UTA0565’s use of the zero-day vulnerabilities shows technical and operational improvements over other campaigns observed by Volexity, both in the mechanics of the exploitation and the presentation to end users,” researchers wrote. “Using real content from legitimate websites as decoy material continues to be an effective way to reduce user suspicion.”

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President Donald Trump continued to defend his administration’s hands-off approach to AI regulation in the wake of hacks carried out by U.S. commercial frontier models that have rattled policymakers and industry veterans and spurred calls for more regulatory oversight.

In a Truth Social post Monday, Trump dismissed worries from critics that “AI is going to kill us,” comparing them to complaints from environmentalists about climate change, which he also alleged was a false narrative. He also posited that nothing may matter more than future U.S. dominance of the technology over geopolitical rivals like China.

“Whoever wins AI, WINS!” Trump posted. “We are leading now over China, and everyone else, and I’m going to keep it that way! I’m not going to stifle Growth, of something that will be bigger than the Industrial Revolution, or the internet, itself.”

Trump has previously suggested that good leadership is the only regulation the U.S. needs for artificial intelligence. He later claimed the Department of Justice was ready to “rein things in” if companies overstepped, but offered no specifics on enforcement, legal authority, or where he would draw that line.

“We will be careful, and that’s why we have the Department of Justice, and other Law Enforcement bodies, that will rein things in if we have to, but I will only encourage AI or, SI (SUPER INTELLIGENCE)!” Trump concluded.

Secretary of the Treasury Scott Bessent recently told Congress that private lawsuits could force AI companies to institute better security, saying it’s clear what the government “shouldn’t do on safety is to give these labs a liability exemption, which is what they are asking for.”

“The best way to guarantee safety is that the creators are liable for what they build and generate,” Bessent said.

Beyond existential fears, critics also argue that inadequate regulation or cybersecurity controls in current AI systems make them impossible to fully control or monitor.

Recently, former President Barack Obama criticized the argument from Trump administration officials that the free market will naturally push industry toward self-regulation and that “these companies will solve the safety issues because they have every incentive to do so.”

“If it turns out to be dangerous, people will just sue them and they’ll be worried about financial liability,” Obama said last week in remarks at Colgate University in New York. “That’s not how we treat airlines or drug companies or food companies.”

The Trump administration issued an executive order earlier this year that set up a voluntary testing regime for some commercial frontier models, largely at private industry’s discretion. That order was significantly delayed and altered by AI industry boosters to ensure that governmental review did not cause companies to postpone their release timelines for new models.

That agreement did not last long before fast-moving events caused the administration to strike another, non-public agreement with frontier AI companies like OpenAI, Anthropic and others governing pre-release testing for models.

But the Trump administration has consistently argued that regulation will harm, not help, U.S. innovation and global competitiveness, and the threat of China frequently looms large in those discussions.

Experts believe China’s AI models are behind U.S. models at the top of the market, where OpenAI and Anthropic have consistently pushed the frontier limits of model capabilities. But Chinese lower and “middle class” models are often cheaper, more efficient and can even outperform more powerful models because users can dedicate exponentially more tokens for their tasks.

The U.S. government has accused Chinese AI companies of conducting widespread, “systematic” distillation of U.S. frontier models, with the implicit encouragement of Beijing.

In defending the administration’s approach, David Sacks, co-chair of the President’s Council of Advisors on Science & Technology and a top adviser on AI issues, specifically cited the threat from China and other countries that he claimed would not be subject to similar restrictions.

“We’re not the only country that has advanced AI labs, and as the president declared…we have to win this AI race,” Sacks told Politico in May, later adding “I think that’s the first thing to recognize is that if somehow we slow down or stop AI development, it doesn’t mean that AI progress is going to stop. It just means it’s going to happen in other countries and specifically China.”

Some observers have alleged that despite their larger differences, top leaders in the U.S. and China may view AI similarly at the strategic level, specfically that increased adoption – and risks – of AI are inevitable.

Ronan Murphy, director of the tech policy program at the Center for European Policy Analysis, posited that while there may not be a formal agreement between the two countries, “they share views both in Beijing and in Washington, particularly in the White House, of: you have to allow this to happen.”

“Clearly there’s a call for regulation from many quarters of AI in the U.S. and elsewhere, but in the White House – and we heard David Sacks talking about it [recently] – It’s ‘let them cook,’ and the Chinese approach seems to be the same,” said Murphy in a press briefing. “So there might be consensus at that level, if nothing else.”

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Microsoft, along with a group of industry partners, disrupted EvilTokens, a short-lived but highly consequential cybercrime platform that investigators linked to more than 12,000 compromised Microsoft customer email inboxes across more than 10,000 organizations globally, the company said Tuesday.

Acting on federal court order Sept. 15, Microsoft and partners seized 50 websites the phishing-as-a-service used for operations and disabled more than 175 domains linked to EvilTokens’ supporting infrastructure. 

EvilTokens, launched in February 2026, was “a powerful cybercrime platform that used AI at every step of the attack chain — from compromising email accounts to designing intricate roadmaps for financial fraud and scams,” Steven Masada, associate general counsel and general manager of Microsoft’s Digital Crimes Unit, wrote in a blog post.

About 1,000 cybercriminals used EvilTokens over the course of its operation, a Microsoft spokesperson told CyberScoop.

The service was centered on an AI-style chatbot that cybercriminals used to analyze victims’ inboxes, identify trusted relationships, payment authorizations and other sensitive details that could facilitate fraud.

“AI was not simply helping attackers write more convincing messages. It helped them decide who to target, who to impersonate, and how to most effectively exploit the relationship to extract as much money as possible,” Masada wrote. 

EvilTokens was one of the most widely used phishing-as-a-service platforms prior to its takedown. It facilitated business-email compromise campaigns by stealing session tokens that allowed cybercriminals to sift through a victim’s inbox and maintain persistent access.

“We cannot estimate the total fraud attributable to all EvilTokens activity. However, we were able to correlate at least 13 complaints filed with the FBI’s Internet Crime Complaint Center to EvilTokens-linked activity, representing approximately $1.7 million in reported losses,” a Microsoft spokesperson said. “Because many incidents go unreported and not all victims can be definitively linked to specific campaigns, we believe this is a conservative estimate.”

Victims of EvilTokens were largely concentrated in the United States, Canada, the United Kingdom, Australia, India and France, according to Microsoft. SpyCloud, which supported the takedown, identified compromised email domains spanning 79 countries.

Microsoft said it also identified two men behind EvilTokens — Felix Utomi and Waidi Segun Adams — and attributes the development and support of the platform to Storm-2992, a threat actor unaffiliated with any other known cybercrime groups.

The United Kingdom’s Metropolitan Police acted on that information Sept. 18 when it served warrants in the greater London area, arrested the men accused of making articles for use in fraud and money laundering and seized their digital devices.

The Metropolitan Police said it received information from Microsoft about EvilTokens’ administrators in August. Utomi and Adams were released on bail as the investigation continues. 

“The two primary operators identified in our investigation were residing in the U.K.,” a spokesperson for Microsoft told CyberScoop. “While our investigation focused on those individuals, we believe others may have supported the operation in various capacities.”

Microsoft’s legal filing in the U.S. District Court for the Eastern District of Virginia refers to five additional unidentified people allegedly acting as support personnel and users.

Microsoft and others involved in the EvilTokens takedown, including Health-ISAC, Cloudflare, OpenAI, Shadowserver and TRM Labs, didn’t fully quantify how much fraud the service enabled, but it gained popularity quickly among cybercriminals and was lucrative for its operators.

Coinbase, which also aided the investigation into EvilTokens, said it traced about $1.1 million in revenue for EvilTokens from its paying customers. The virtual currency company’s threat researchers found more than 1,000 deposits to EvilTokens from more than 700 distinct addresses through June 2026. 

Operators sold access to the service through Telegram for a $1,500 initiation fee and a recurring $500 subscription. EvilTokens significantly lowered the barrier to entry for cybercriminals by including specialized tools for identity attacks, cloud systems, social engineering and financial fraud in a single interface.

The service allowed cybercriminals to map organizational structure and permissions in Microsoft Graph, which enabled lateral movement, researchers said. With active tokens gained through a collection of highly-targeted phishing lures, cybercriminals consistently bypassed multi-factor authentication, email gateways and endpoint security tools.

Microsoft said the platform’s creators developed portions of the platform with AI and it uncovered capabilities from multiple AI models. 

“It packaged much of the criminal process into a commercially run service, complete with subscription pricing, customer support, management dashboards and tools designed to move customers from account access toward financial exploitation,” Masada added.

The companies and organizations involved in the globally-coordinated takedown identified and notified potential victims, shared indicators of compromise and shared intelligence with law enforcement about EvilToken’s operators and some of its customers.

Experts advised organizations and employees to treat unsolicited device codes as a red flag, assume compromised accounts are fully cataloged in minutes, and independently verify requests to change payment information or redirect funds.

“The infrastructure supporting EvilTokens has been disrupted, but the model it demonstrated will not disappear with it,” Masada warned.

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Another core member of the hacker subset of The Com involved in a spree of extortion attacks from at least 2021 to 2023 pleaded guilty to federal charges, according to court records released Tuesday.

Ahmed Hossam Eldin Elbadawy, a 24-year-old from Texas, pleaded guilty exactly one year ago to wire fraud conspiracy and aggravated identity theft. His guilty plea wasn’t shared publicly until prosecutors filed an order of forfeiture this week seeking proceeds from Elbadawy’s criminal activities. 

Elbadawy and his co-conspirators — Noah Michael Urban, a Florida man sentenced to 10 years in prison last year, and Tyler Robert Buchanan, a Scottish man who pleaded guilty to multiple cybercrimes in April and awaits sentencing — were part of an aggressive subset of The Com coined Scattered Spider. 

The financially-motivated crew obtained credentials via social engineering and stole sensitive company data to identify high net worth employees with virtual currency accounts containing millions of dollars, according to an indictment filed against Elbadawy and his co-conspirators in late 2024. 

Federal authorities filed charges against five individuals with links to the Scattered Spider cybercrime outfit, including Elbadawy, Urban, Buchanan, Evans Onyeaka Osiebo and Joel Martin Evans in 2024.

Elbadawy’s victims included large businesses in the entertainment, telecom, technology, business process outsourcing, IT, cloud and virtual currency sectors, officials said. Prosecutors linked Elbadawy and his co-conspirators to at least 12 victim companies in the indictment, including three businesses located in Southern California where he awaits sentencing. 

Authorities detailed 29 victims who were compromised by Elbadawy and his co-conspirators. The crew stole virtual currency from wallets controlled by many of those victims. The most high-value thefts included virtual currency worth nearly $6.35 million in September 2021, $571,000 in June 2022 and nearly $1.7 million in December 2022. 

Prosecutors are seeking significant property and asset forfeiture from Elbadawy, including Bitcoin valued at more than $14.19 million, Ethereum valued at more than $3.4 million and nearly $63,000 in cash. Officials also requested the forfeiture of a lifted golf cart, three luxury vehicles, a painting of Muhammad Ali, luxury watches, gold jewelry, a vast collection of designer bags and 150 pairs of shoes.

The terms of Elbadawy’s plea agreement haven’t been released. 

While early leaders of Scattered Spider have been arrested or sentenced for their crimes, others have filled those roles with even more exceptional impact.

The Com has grown to thousands of members, typically between 11 and 25 years old, splintered into three primary subsets the FBI describes as Hacker Com, In Real Life Com and Extortion Com.

Criminal acts committed by these multiple, interconnected networks include swatting, extortion and sextortion of minors, production and distribution of child sexual abuse material, violent crime and various other cybercrimes.

You can read the indictment against Elbadawy and some of his co-conspirators below.

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Researchers said they used Anthropic’s Claude and OpenAI’s Codex to identify a damaging flaw embedded in a popular software decoding tool that could leave major internet platforms, enterprise services, and web frameworks vulnerable to data theft and remote access.

The vulnerability, nicknamed HEIF Heist, refers to the malware’s ability to trigger memory corruption errors in affected software, allowing the attacker to pilfer sensitive data from its victims. In a report published Thursday, the researchers laid out the potential damage an attacker could cause, including gaining access to internal OpenAI repositories, leaking user files, access tokens, and other sensitive data for online services like Amazon Web Services, and gaining remote code execution privileges across a range of online services, including Meta’s core product suite, GitHub Enterprise servers and open-source internet forum Discourse.

“Even when Remote Code Execution isn’t immediately achievable, the attack primitives may still allow arbitrary heap disclosure, letting an attacker ‘heist’ in-memory data such as other users’ data and environment variables,” wrote Hacktron researchers Harsh Jaiswal, Mohan SRK, Rahul Maini and Sudhanshu Rajbhar.

The researchers relied heavily on AI systems, including frontier models from OpenAI and Anthropic, to conduct their research. Attribution for the research is described as being “led” by the Hacktron human researchers “assisted by Hacktron Harness, GPT-5.6 Sol, and Opus 5.”

According to the research, the attack exploited the way that code parsing tools in many popular software decoders — specifically libheif and libde265, used to parse C and C++ software — process certain image files.

By uploading HEIF, HEIC and AVIF image files corrupted with malicious code, the attacker could bypass most of the victim’s application layer defenses, in many cases achieving remote code execution privileges for accounts or products tied to major AI and tech brands.   

While the latest version of libheif has been patched, the researchers said “any deployment lacking the latest upstream security patches is potentially vulnerable.”

In one incident detailed in a Sept. 13 blog, Jaiswal, Maini, and Hacktron researcher Mohan Pedhapati described how chaining two vulnerabilities, including an image parser flaw, could compromise OpenAI employee accounts.

With access to the compromised accounts, researchers could reach OpenAI’s internal repositories. As a proof of concept, they opened a pull request in the company’s “monorepo,” a centralized library where code is shared across projects, using the employee’s Codex credentials. 

According to a timeline provided by the researchers, the flaw was discovered on July 25 and patched within days. They said the entire attack, from discovering the initial vulnerability to gaining access to the repositories, took less than 72 hours. OpenAI paid them a bug bounty of $6,500 for their work.

Given that AI models are increasingly integrated into enterprise and personal networks, an attacker exploiting HEIF Heist could have accessed far more than just OpenAI’s systems and data.

“Until two months ago, a user or OpenAI employee logging into OpenAI’s own help forum could have had their ChatGPT and Codex accounts taken over,” the researchers wrote. “Since people can connect various services to Codex and ChatGPT, the scope of what we could theoretically access was huge, including GitHub, Slack and emails.”

CyberScoop has reached out to OpenAI for comment on the research and additional information.

At the same time, the researchers said the attack paths they found were not particularly easy or efficient to exploit.

“Exploitation requires fingerprinting the target version and tailoring the payload images,” the blog stated. “Some of our RCE attempts landed only after thousands of image uploads. That said, an AI agentic approach with a frontier model like GPT-5.6 Sol cut exploit development time down to roughly 1 to 3 days from initial probe to remote RCE. A motivated attacker can convert a vulnerable upload endpoint into RCE or an info leak.”

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Cisco disclosed its second actively exploited zero-day vulnerability in as many days, presenting its customers with back-to-back threats to address in unrelated products.

The latest zero-day — CVE-2026-76460 — has a maximum-severity rating and was exploited before Cisco disclosed and patched the vulnerability Wednesday. The defect in an API of Cisco Identity Services Engine (ISE) allows a remote attacker to bypass authentication and gain full control of the affected device.

“ISE devices enforce network access policy, so root access on the appliance lets an attacker modify that policy, extract stored credentials, delete logs, and move laterally into every network segment ISE controls,” Landon Rice, senior exploit developer at VulnCheck, told CyberScoop.

Cisco did not say how many organizations have been compromised thus far, but reported it found the vulnerability during a technical support case. 

“Cisco is aware of active exploitation of this vulnerability. We strongly recommend customers upgrade to available fixed software and follow guidance in the advisory,” a Cisco spokesperson said in a statement.

The Cybersecurity and Infrastructure Security Agency added the zero-day to its known exploited vulnerabilities catalog shortly after Cisco’s disclosure. 

Researchers haven’t attributed attacks involving CVE-2026-76460 to any known group or threat actor, but Rice noted Cisco ISE vulnerabilities are a recurring target. 

Multiple vulnerabilities affecting the Cisco product have been exploited since June 2025, including CVE-2025-20337 and CVE-2025-20281. The latest zero-day vulnerability and the pair of defects disclosed in the summer of 2025 were all rated critical with the highest rating of 10. 

Cisco didn’t say when the first instance of CVE-2026-76460 exploitation occurred, but the disclosure came just two days after the vendor disclosed CVE-2026-76461, an actively exploited zero-day vulnerability in Cisco Secure Email Gateway. 

While the two zero-days disclosed this week have consecutive CVE identifiers, there’s no indication they are connected or share any technical relationship, Rice said. “These are different products and different vulnerability classes with no relation,” he added.

A Cisco spokesperson concurred with that assessment. “CVEs are assigned on a first-come, first-served basis, so consecutive numbering reflects assignment order rather than any relationship between the issues. CVE-2026-76460 and CVE-2026-76461 affect different codebases,” the spokesperson added.

Cisco published indicators of compromise to help customers hunt for attempted exploitation in their environments, and said there are no workarounds for the vulnerability.

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The past few weeks have “felt very strange” for Juan Andres Guerrero-Saade.

Like many, he is trying to sort through the spate of frontier-model AI agents from OpenAI, Anthropic, Meta and others hacking their way onto the open internet over the past few months, particularly amid the already-heated national debate around the emerging technology and its impact on society.

Guerrero-Saade, a fellow for AI and security research at SentinelOne and an adjunct professor at Johns Hopkins University, said the hacks are worth taking seriously, but at a time when businesses and open-source maintainers should be focused on further hardening their systems and policymakers should be discussing new solutions,  “what we see is cybersecurity being used essentially as an excuse for these AI doomer arguments.”

The incidents have spawned those “doomer arguments” amid an intense public debate about the technology, the pace of industry development, and whether government and the private sector are doing enough to protect against “doomsday”-type scenarios, where AI systems take over or attack large parts of the internet or society.

Guerrero-Saade is among a growing chorus of cybersecurity professionals who say that while AI systems pose real, unique threats to our systems, the apocalypse is far from inevitable. Most of the public concerns around the incidents, let alone worries about killer AIs attacking critical infrastructure, assuming control of the internet and wiping out humanity, are either technically impossible or can largely be controlled through established cybersecurity principles.

There is this “narrative or magical thinking of ‘Well, AI is going to be able to hack everything, and therefore it can control everything, and therefore it’s going to kill us all,’” he told CyberScoop. “And you [think] these just don’t add up. They’re not very well-reasoned arguments.”

This fatalistic narrative tied to AI’s eventual dominance doesn’t hold up under scrutiny, according to experts CyberScoop spoke with. In recent conversations, cybersecurity and national security professionals raised questions about both the technical solutions OpenAI and Anthropic use to contain their models, as well as the glaring absence of federal oversight from federal regulators or truly independent third-party review.

For example, Jacob Coxon, an Anthropic employee who resigned over AI safety concerns, told CBS News that frontier models could not be “unplugged” by humans once deployed because the model would copy itself to thousands of other computers connected to the internet.

By contrast, Matt Tait, a former information security specialist at UK signals intelligence agency Government Communications Headquarters (GCHQ), pointed out that the models run by Anthropic and other frontier companies require extremely expensive, “ultraspecialist” machines that “are functionally supercomputers.”

“There is a zero chance that Anthropic’s most capable models will be able to extract their own model and run in the wild, because those supercomputers essentially only exist in datacenters,” Tait said.

“Not a credible warning”

Other former cybersecurity government leaders say the agentic hacks represent a failure by regulators and industry to deploy known technical and policy options that make it harder for these types of incidents to occur.

Matt Hartman, former deputy executive assistant director for cybersecurity at the Cybersecurity and Infrastructure Security Agency, said “we should not accept harmful AI behavior as inevitable or unmanageable.”

“There are meaningful steps companies can take to monitor agent activity, constrain permissions, detect anomalous behavior, and build stronger safeguards into how these systems operate,” said Hartman, now a chief strategy officer at Merlin Group. “Those controls will inevitably involve trade-offs in capability and speed, but that’s a familiar cybersecurity challenge. Our goal should be to manage the risk without unnecessarily limiting the enormous benefits AI can provide.”

Ciaran Martin, former head of the UK’s National Cyber Security Centre, took issue with the way the CEOs of frontier AI companies have framed the threat of “rogue” AI behavior as inevitable, while issuing dire warnings about future threats and capabilities with little transparency.

Martin’s comments came after an essay published by Anthropic CEO Dario Amodei that cited the threat of a HuggingFace-style swarm of agents that could create a botnet capable of “taking over the entire internet” within 6-12 months.

This, Martin said, “is not a credible warning,” because it doesn’t explain how the exploitation would function, how such a botnet would persist on the internet, or how it would escape law enforcement. 

 “It assumes no monitoring of systems, no anti-virus, no DDoS protection, no network segmentation, no incident management, no nothing of any kind of the cybersecurity on the global Internet of the type that has developed over the last 30 years,” wrote Martin. “For a claim of this magnitude, there is neither evidence for the contention nor a credible account of a path to this outcome.”

Meanwhile, some federal government cybersecurity leaders have touted the technology’s disruptive potential and called for more widespread adoption of AI tools by defenders.

Joseph Alm, assistant secretary of cyber, infrastructure and risk resilience at the Department of Homeland Security, said classified systems may retain stronger protections. But for most other data, AI models are “just going to know things and be able to infer things about the world, and we’re going to have to adapt to that as almost inevitable.”

Asked by CyberScoop whether the government or frontier AI companies could be doing more to prevent or deter their models from carrying out unauthorized hacks via agents, Alm cited recent efforts by the Trump administration this year to establish pre-release testing of commercial models as a step in the right direction. But he called unauthorized AI agent hacks “a new threat class” that is different from previous threats and can be easily distributed to users through open-source software today.

“I think what we can do is…encourage the building of good sandboxes, so that the best models aren’t used for this and the stuff you see out in the wild is the kind of detritus that you can actually respond to effectively and control your networks,” said Alm.

Other experts have shared similar concerns. Earlier this month, CrowdStrike CEO George Kurtz recently warned of a new threat class emerging alongside nation-states, cybercriminals, and hacktivists: “the agent state.” By pairing AI systems with small human teams, these operators can now match the speed, scale, and sophistication of government-backed hackers.

“It took a nation to fund the talent, the tooling, the infrastructure, the patience,” said Kurtz. “That scarcity is over.” 

To be sure, frontier AI companies tout their commitment to both approaches. OpenAI and Anthropic have rolled out an array of cybersecurity partnerships, external red-teaming programs, vulnerability disclosure programs and cybersecurity technical advisory bodies filled with cybersecurity experts.

Mohammed Husain, strategic delivery lead for government at OpenAI, told CyberScoop that the company deploys both internal safety guardrails for their models and relies on outside cybersecurity vendors for additional expertise.

Internally, OpenAI focuses on vulnerabilities at the training level: filtering data poisoning attacks, blocking harmful datasets, and using network controls to prevent prompt injections. For other security layers like sandboxing, identity management, networking controls, they outsource to external vendors. 

“I don’t think OpenAI has all the answers here but what we do as a research lab is we’re going to focus on levels of protection we have expertise in and we partner to self-complement,” said Husain.

AI safety vs. AI cybersecurity

In response to the HuggingFace hack, OpenAI and Anthropic have allowed third-party organizations, such as nonprofit AI research firms METR and Redwood Research, to investigate. But multiple cybersecurity professionals told CyberScoop that both firms lack incident response experience and focus primarily on AI alignment and safety. Their reporting on the hack also lacked critical details: network monitoring logs, telemetry, and other data standard in cybersecurity threat intelligence reports.  

METR president Chris Painter addressed those general concerns in a post on X, saying since 2022 the organization has worked with Google, Anthropic, OpenAI, Meta, Amazon and others on investigations and third-party evaluations. Painter said none of the AI companies fund METR and that his employees are not uniformly “doomer” or “accelerationist” around AI.

Painter also said METR’s work ensures that if AI systems become autonomous or “rogue” within a company, there are ways to share that information with governments and people “outside the company’s walls.”

“We don’t accept money from frontier AI companies,” wrote Painter. “They haven’t paid us for our work, and we don’t accept donations from them or their employees. As we’ve shared previously, multiple frontier AI companies currently provide us with free access to their models in order to perform our evaluations, research, and engineering.”

AI safety and AI cybersecurity advocates take different approaches to securing “rogue” AI behavior. Safety advocates focus on aligning models around ethical training and behavior. Cybersecurity advocates argue that technical and regulatory controls must go further—actively preventing models from accessing what they need to carry out malicious behavior.

Guerrero-Saade said sandboxes in particular can easily be programmed with aggressive cybersecurity monitoring in order to spot when something odd may be happening and react in real time.

“I can’t think of an easier situation in which to set up trip wires, set up configurations like DNS servers, just different parts where you can say ‘Hey, anomalous behavior is happening,’” he said. “We should have been able to tell this immediately, not weeks and months later. So watching [the AI hacking incidents] go down is a little ‘crazy-making’ because we’re seeing things that, frankly, look like neglect, negligence, people just mishandling things, and then being told that these are categorically new incidents that mean that AI systems need to be treated completely different from anything that’s come before.”

While cybersecurity experts say AI systems are, at their core, still software, they do operate differently from more traditional code in ways that can make them harder to predict and control.

John Hultquist, chief analyst at Google’s Threat Intelligence Group, said most software has been deterministic. It may have bugs or vulnerabilities, but an expert could generally understand how it would react to certain stimuli, making it easier to design straightforward controls.

AI models are non-deterministic, with far more variability than traditional software. That can break security controls that rely too much on predicting behavior in advance. Using AI to enforce security controls on other AI models faces the same problem: the systems being deployed to control AI are just as unpredictable. 

But people are also non-deterministic, and people have developed systems in other industries and practices to account for that.

Hultquist drew on his Army experience, noting that “they give incredibly dangerous, expensive things to 18-year-olds” and expect responsible use. The military manages this through two types of controls: deterministic ones like strict weapons and ammunition protocols, and non-deterministic ones like human officers who monitor and correct violations.

Similarly, established cybersecurity controls have been used by incident responders to detect and prevent or mitigate ongoing cybersecurity breaches.

“I don’t think we should throw out all the other tools that we have learned to use as well. I think that would be utterly foolish,” he said, later adding “I will say that if we use only non-deterministic tools to figure out when things are happening, we shouldn’t be surprised when we get the wrong answer.”

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Authorities seized the primary domain and other websites linked to NightmareStresser, one of the longest-running and most popular distributed denial-of-service operations used by cybercriminals globally, the Justice Department said Tuesday. 

Cybercriminals of various motivations used the DDoS-for-hire service to launch hundreds of thousands of DDoS attacks or attempted attacks since at least 2022, officials said. 

The takedown, part of an ongoing globally coordinated effort dubbed “Operation PowerOFF,” marks law enforcement’s continued targeting of IP stressers or DDoS booters that inundate websites, servers and networks with junk traffic, rendering legitimate sites inaccessible. The seizures were executed by the FBI Anchorage field office and the Royal Canadian Mounted Police.

Officials didn’t name the operators of NightmareStresser or identify its country of origin, but the service claimed it operated under the laws of Russia, Zach Edwards, staff threat researcher at Infoblox told CyberScoop.

The court-ordered seizure of NightmareStresser’s primary domain, which operated openly on the public web and now displays a seizure notice, is a positive development in the fight against DDoS-for-hire threat actors, Edwards said. Yet, he added, “it’s somewhat shocking that it’s taken law enforcement this long to take action.”

Authorities said they’ve seized more than 100 domains associated with DDoS-for-hire services since 2018. 

Despite those efforts, DDoS-for-hire tools remain prolific and easily accessible, often including tutorials that allow non-tech savvy people to initiate attacks on various organizations. 

“The vast majority of people who actually use DDoS services like NightmareStresser are script kiddies, oftentimes for pranks or for some sort of obscure political agenda. These services have been heavily used against gaming servers and streamers,” Edwards said.

Officials said NightmareStresser’s customers targeted various victims in the United States and abroad, including educational institutions, government agencies, gaming platforms and millions of people.

The DDoS-for-hire service’s operators claimed tens of thousands of users, Edwards said. “NightmareStresser is unique because of how long they’ve operated, their aggressive marketing which was pretty open about supporting illegal use cases, and their affiliate program which was used to reward partners,” he added. 

Authorities are now likely attempting to identify the operators of NightmareStresser, its business partners and people who used the service, according to Edwards. 

“Unfortunately for law enforcement, threat actors behind NightmareStresser claimed they were operating under the laws of the Russian Federation, which is a strong sign that it may be challenging to bring these folks to justice, even if they are known and doxxed,” he said. 

The impact of the seizures may also be temporary, at best. “The reality is that these booter services are like playing a game of Whac-A-Mole,” Edwards said. “There’s always another suspicious service operating similar DDoS products, and these underground networks quickly shift to new providers when one is taken down.”

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The Coast Guard and FBI boarded two foreign vessels coming to the United States last month to investigate potential cyberattacks on the ships, according to a joint statement from the agencies Wednesday.

The “joint offshore security boardings” of the two commercial ships in the Gulf of Mexico on Aug. 21 and Aug. 24 “were designed to ensure integrity of the vessel’s operational and information technology systems following indications that the networks of both vessels were compromised,” according to the joint statement.

“Currently, there are no reports of operational disruptions, vessel instability, physical danger to crews, or environmental impacts,” the statement reads. “The Coast Guard is actively managing communications with port operators, vessel owners, and local maritime stakeholders to ensure port operations continue safely and without interruption.”

The vessels were reportedly tankers carrying oil and natural gas, and the first got hacked in the Strait of Gibraltar and lost communication for over 30 hours. Authorities were said to be  investigating whether Iran, or perhaps another group seeking to exploit the conflict between Iran and the United States, was behind the attacks.

Coast Guard cyber teams have been investigating “dark fleets” carrying sanctioned oil from Iran and Russia, which rely on digital masking to hide their operations and carry enhanced cyber risks, The Wall Street Journal reported in June.

Then-President Joe Biden signed an executive order in 2024 giving the Coast Guard additional authorities to respond to cybersecurity incidents, citing the risks that a maritime cyber incident could cause “cascading” harm to the global supply chain.

The Aug. 21 boarding party included Coast Guard law enforcement personnel, Coast Guard Cyber Protection Team members, a vessel inspector and FBI Cyber Action Team operators, who boarded “to conduct a comprehensive cyber security boarding and investigation,” according to the agencies’ joint statement. A similar team made up the Aug. 24 boarding party.

“The captain, crew, and shore-side corporate staff were critical partners in helping to ensure the threats were mitigated,” the statement reads.

Top Trump administration cyber officials have refused to answer questions from reporters recently about Iranian cyberattacks during the Middle East conflict. Trump himself has rejected the idea that Iran was behind a recent spate of attacks on U.S. water facilities.

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Attackers of unknown origins and motivations are exploiting a critical zero-day vulnerability in Cisco Secure Email Gateway, authorities and researchers said Monday.

The vulnerability — CVE-2026-76461 —  was exploited before Cisco disclosed and patched the defect Monday and allows unauthenticated, remote attackers to execute commands with root privileges on vulnerable systems. “In practical terms, that gives the attacker control of the gateway itself,” Douglas McKee, director of vulnerability intelligence at Rapid7, told CyberScoop.

Cisco said its product security incident response team became aware of active exploitation of the defect affecting Cisco AsyncOS Software for Cisco Secure Email Gateway in September. When asked for further details, a company spokesperson pointed to the advisory and reiterated that the company is aware of active exploitation of the vulnerability.

The company did not say how many organizations are impacted by active exploitation thus far, but it indicated multiple customers were likely compromised prior to disclosure. 

“Cisco has conducted a thorough threat intelligence investigation on devices that belong to Cisco Secure Email Cloud. Cisco has directly contacted customers who own Cisco Secure Email Cloud devices where indicators of possible compromise were identified,” the company wrote in its security advisory. “Cisco is engaged in remediation and recovery operations. Cisco has already deployed mitigations that are within Cisco’s management.”

The Cybersecurity and Infrastructure Security Agency added the zero-day, which affects cloud-based and on-premises instances of Cisco Secure Email Gateway, to its known exploited vulnerabilities catalog shortly after Cisco’s disclosure. 

The tight timeline between Cisco’s public advisory and patch guidance, and CISA’s quick addition to the KEV catalog indicates the vulnerability deserves immediate attention, McKee said. 

“The combination here is pretty ugly. No authentication is required, an attacker can reach the vulnerable code by sending an email through the appliance, successful exploitation can result in root-level command execution, and Cisco has observed exploitation in the wild,” he added.

Researchers at Rapid7 and VulnCheck said they don’t yet know how many organizations are impacted by active exploits, but they encouraged Cisco customers to patch and hunt for potential signs of compromise as soon as possible. 

Spencer McIntyre, director of exploit development at VulnCheck, told CyberScoop the exploit could allow an attacker to maintain access to the email gateway and monitor communications. “Stealing or silently snooping on email comms is a common tactic for state-sponsored and other threat actors conducting espionage operations,” he said. 

“It’s going to be worse for organizations that have the appliance deployed on-premises. In this case, the attacker could pivot internally,” McIntyre added. “If, however, organizations use a cloud instance, the compromised gateway is less likely to have significant access to internal organizational resources.”

Cisco released indicators of compromise to help customers hunt for attempted exploitation in their environments, but the company added that attackers could remove or hide those traces with the level of access granted via exploitation.

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The Supreme Court has rejected a petition by the Trump administration to implement changes to the way the U.S. Postal Service handles mail-in ballots for the upcoming 2026 midterm elections, calling it “arbitrary and capricious.”

The 7-2 decision was handed down Monday with little explanation by the court. Writing for the majority, Justice Kentaji Brown Jackson said the administration “is unlikely to succeed on the merits of its challenge to the District Court’s preliminary injunction” and had failed to articulate a valid reason for seeking emergency relief from the court.

However, in a concurring statement, Justice Brett Kavanaugh said he believed there was “a fair prospect” that the final USPS final regulation would be within their legal authority and appeared to cite unreasonably short timelines imposed on states and his primary reason for denying the stay.

“But applying the rule in the 2026 elections would be arbitrary and capricious and in violation of the Administrative Procedures Act because state and local election officials do not have sufficient time to reasonably implement the rule before the elections,” wrote Kavanaugh.

The executive order would have tasked the USPS with verifying  voter citizenship and the validating ballot materials. The order would have created a barcode tracking system for mail ballot envelopes and “State Citizenship Lists” compiled by the Department of Homeland Security.

The order was quickly challenged by states and voting rights organizations, who argued the executive branch had no constitutional authority to dictate how they maintained their voter rolls.

The White House has justified the order by claiming the federal government has “an unavoidable duty” under Article II of the Constitution to maintain confidence in election outcomes by preventing violations of criminal law, including noncitizen voting.

Lower courts disagreed, blocking the executive order from being put in place before November. The petition to the Supreme Court represented the administration’s best and final hope for judicial relief.

As the administration fought the matter in courts, it moved ahead finalizing the USPS rule. A whistleblower complaint alleged that a “rushed” effort by the White House and U.S. Postal Service to install three new restrictive IT systems meant to verify citizenship that could potentially deny thousands of mail-in ballots if the federal government disagrees with states on a voter or ballot’s eligibility.

While Jackson and Kavanaugh’s rationale took up less than half a page, a dissenting opinion written by Justice Samuel Alito and signed by Justice Clarence Thomas was more than 7 pages long.

Alito wrote that he would have granted the Trump administration their request for a stay, allowing the order to be implemented in time for the 2026 elections. He said states and organizations suing the government lacked standing, and dismissed their concerns that implementing the USPS order ahead of the 2026 elections would thwart their ability to educate voters about mail-in voting, calling them “abstract social interests.”

Ahead of the decision, David Becker, executive director of the nonprofit Center for Election Integrity and Research, told reporters that he doubted members of the Supreme Court majority “want to own the chaos that would ensure” as the USPS, states and voters attempt to navigate changes put in place just months before elections and after many states have begun sending out ballots that do not comply with the proposed rules.

He also said that it would be in line with previous Supreme Court decisions that have recognized state supremacy when it comes to specific election administration authorities, like where and how their citizens vote.

“When they consider issues related to the administration of elections, the casting and counting of ballots, they have sided with the states every time,” said Becker.

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Five alleged leaders of the South African wing of Black Axe, a global cybercrime group with operations spanning dozens of countries, were extradited to the United States Friday to face multiple charges, the Justice Department said.

Officials accuse the five people, all originally from Nigeria, of running romance scams and advance fee scams from at least 2011 until they were all arrested in South Africa in 2021. The defendants were due Monday for initial court appearances and arraignments in a federal court in Trenton, N.J.

“Black Axe is a notoriously violent transnational criminal organization that also happens to dabble in romance scams to make money,” Stefanie Roddy, special agent in charge of the FBI Newark field office, said in a statement. “The ability of FBI Newark and our partner agencies to reach into South Africa illustrates our resolve to hold accountable any and every type of fraudster who preys on innocent victims here in the United States.”

The accused include Perry Osagiede, founder and leader of the Cape Town Zone of Black Axe; Franklyn Edosa Osagiede, the zone’s “chief ihaza” Osariemen Eric Clement, “assistant eye of the zone,” Collins Owhofasa Otughwor, the zone’s “chief eye,” and Musa Mudashiru, one of the group’s “assistant butchers.”

Prosecutors said the five defendants and their co-conspirators used fake identities to pose as a love interest, relatives, business partners or friends to trick victims into sending them money.

Many of the scams involved claims that the alleged cybercriminals needed money for work travel or to hold them over financially following a series of unfortunate events. This included requests for loans, often involving issues with a construction site, delayed inheritance, or expensive health costs for claimed relatives, according to an unsealed indictment filed in the U.S. District Court of New Jersey in 2021. 

Prosecutors said the co-conspirators also used business entities and gained access to the financial accounts of some victims to conceal the funds illegally obtained from other victims. In some cases, the alleged Black Axe members threatened to distribute sensitive photos of victims when they hesitated to send money, officials added.

The extradition follows a heightened period of law enforcement activity targeting Black Axe in multiple countries. 

Authorities arrested 34 alleged cybercriminals in Spain, including some Black Axe leaders, for adversary-in-the-middle scams such as business email compromise, money laundering and vehicle trafficking in January. 

Officials seized millions in assets, arrested 58 individuals and identified 263 suspects, including members of Black Axe, in a multi-country sting operation in August. 

Black Axe is a highly structured, hierarchical group that generates billions of dollars in criminal proceeds annually from many small-scale operations spanning dozens of countries. 

All five of the extradited individuals are charged with conspiracy to commit wire fraud and money laundering. Perry Osagiede and Franklyn Osagiede are also charged with wire fraud and aggravated identity theft. Officials also charged Clement with wire fraud and Otughwor with aggravated identity theft. The combined charges carry up to 62 years in prison. 

“This case reflects the result of a years-long effort by the U.S. Secret Service and our law enforcement partners to identify, investigate, and bring to justice those who allegedly preyed on victims through sophisticated online fraud and money laundering schemes,” Craig Marech, special agent in charge of the U.S. Secret Service’s Newark field office, said in a statement. 

The Justice Department published additional information about the Cape Town Zone wing of Black Axe, including multiple aliases and business entities used by the group’s members, and encouraged potential victims to contact the FBI.

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Researchers say they have discovered thousands of malicious software packages uploaded to an online public software repository that were left by a “swarm” of OpenAI agents.

According to an incident timeline published Friday by researchers Spencer Kitts, Thomas Larsen and Sydney Von Arx, the campaign began May 5 when they observed a handful of suspicious packages being uploaded to RubyGems, a public library for the Ruby programming language. By May 11 and 12, the site saw more than 2,000 malicious uploads from the same actors before RubyGems maintainers halted new user sign-ups for four days to stop the flow.

In one instance, the agents attempted to exploit a very recent vulnerability that had only been discovered this past July that would have given them access to RubyGem user API keys. According to Colby Swandale, the technical lead at RubyGems, the flaw involved an improper cache configuration. While initial access logs showed no evidence of malicious key use, Swandale acknowledged the review was limited in scope and inconclusive. 

According to the report published Friday, the agents also used “disposable” email addresses and exploited another bug in RubyGems platform (since patched) that allowed them to register new accounts and gain API keys without verifying their email address.

The researchers said their understanding, based on discussions with “people in the RubyGems community,” is that OpenAI had yet to disclose the involvement of their agents in the May campaign.

An OpenAI spokesperson told CyberScoop that the company is aware of the incident and said they were in contact with both the researchers and RubyGems to conduct a broader review. The company characterized the episode as “benign,” describing it as routine training runs where agents attempt to access publicly available data.

“Based on our review, our agents used the RubyGems platform to access the internet to carry out benign tasks and retrieve public information,” the spokesperson said. “We’ll continue to investigate as part of our broader review of agent activity during training and evaluation.”

In many ways, the agents were not subtle about their identities or goals.

Days into the campaign, researchers noticed that some of the packages had “oai” in their filenames, while fifteen of them had “oai” set as their author and another listed the email “openaixyz65947@gmail.com” as their point of contact.

They also “clearly regarded what they were doing as hacking,” naming some of their files “hack.rb,” “evil.rb,” “inject.rb” and “exploit.rb.” Other packages were given names like “pwnp999,” “exfiltestwand3,” and “hacksvn,” and comments referring to things like a “malicious probe” or “#hack” are present through the files.

They also said the actors’ behavior was extremely similar to another incident revealed earlier this month where OpenAI agents flooded a German wiki  with thousands of hacking-related posts. OpenAI has confirmed their agents were involved in that incident.

The RubyGems campaign used some of the same retrieval methods as the German Wiki agents, while thousands of malicious packages uploaded included a similar snippet, r.jini.ai, that was contained in the German posts.

Cybersecurity company Socket first flagged the campaign in a threat intelligence report posted May 13, but it does not mention or attribute any of the activity to OpenAI or AI agents.

However, the researchers said they had only limited visibility over the model’s actions and how successful some of them were, noting only OpenAI had the full details.

“This analysis is entirely based on the publicly available RubyGems packages uploaded by these agents,” the researchers wrote. “However, we do not have access to the rest of the AI behavior, in particular the chain-of-thought produced by the model during the incident, which is internal to OpenAI. Therefore, we do not know why the AI agents chose this strategy or whether it was successful.”

OpenAI’s spokesperson told CyberScoop that to date, they have not been able to verify the specific claims about malicious packages or exploitation detailed in the report and are continuing to investigate.

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OpenAI is facing mounting pressure from Capitol Hill due to the attack its agents carried out on Hugging Face, while lawmakers voice widening concerns about AI’s potentially existential risks.

Sen. Josh Hawley, R-Mo., criticized OpenAI leadership for what he described as “reckless” activities leading up to the Hugging Face breach, and accused the company of withholding important details from a technical report it released in late August.

The Chair of the Subcommittee on Disaster Management kicked off an investigation into the incident “in light of new, disturbing evidence,” he wrote in a letter Tuesday to OpenAI CEO Sam Altman.

“My investigation will probe this AI hacking incident, along with growing allegations of the existential risk of new AI products,” Hawley added. 

“The Hugging Face incident was an important moment for AI safety and a warning about the risks that can come with increasingly capable AI across the industry,” a spokesperson for OpenAI told CyberScoop. “We conducted an extensive investigation and published a detailed report on what happened, what we learned, and how we’re strengthening our security and alignment practices.”

The lawmaker is seeking detailed internal communications, exhaustive technical information and reasoning behind OpenAI leaders’ decisionmaking and activities surrounding the hack by Oct. 1.

“The American people deserve to know the details of what went on in the Hugging Face incident and other incidents of AI models going rogue,” Hawley wrote. 

He accused the company for not providing more details and resources to the third-party auditors who published an independent report on the breach, adding “they had limited visibility into the circumstances leading to the attack and its aftermath.”

Hawley sent his letter to Altman amid a seeming internal chasm within the ranks of AI’s top proprietors over the ways they are allowing the technology to advance mostly unrestrained. He referenced some of these latest warnings in his letter.

Jacob Coxon publicly quit his job as a researcher at Anthropic earlier this week, claiming the company and his previous employer OpenAI are acting irresponsibly and “gambling with our lives.” His social media missive went viral for insisting “the people building AI earnestly believe that it could kill us all by the end of the decade.”

Evan Hubinger, alignment science lead at Anthropic, responded to Coxon’s post in the affirmative, adding that guardrails for superintelligence are lacking and he believes there’s a greater than 10% chance AI could kill all humans within the next decade.

Using those posts as fuel for his inquiry, Hawley questioned what might happen if AI agents hack into critical infrastructure, banks or utilities. Ultimately, he asked Altman: “Who is held liable when AI goes rogue?”

You can read Hawley’s full letter and requested details below.

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