Python Supply-Chain Compromise

This is news:

A malicious supply chain compromise has been identified in the Python Package Index package litellm version 1.82.8. The published wheel contains a malicious .pth file (litellm_init.pth, 34,628 bytes) which is automatically executed by the Python interpreter on every startup, without requiring any explicit import of the litellm module.

There are a lot of really boring things we need to do to help secure all of these critical libraries: SBOMs, SLSA, SigStore. But we have to do them.

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Cybersecurity in the Age of Instant Software

AI is rapidly changing how software is written, deployed, and used. Trends point to a future where AIs can write custom software quickly and easily: “instant software.” Taken to an extreme, it might become easier for a user to have an AI write an application on demand—a spreadsheet, for example—and delete it when you’re done using it than to buy one commercially. Future systems could include a mix: both traditional long-term software and ephemeral instant software that is constantly being written, deployed, modified, and deleted.

AI is changing cybersecurity as well. In particular, AI systems are getting better at finding and patching vulnerabilities in code. This has implications for both attackers and defenders, depending on the ways this and related technologies improve.

In this essay, I want to take an optimistic view of AI’s progress, and to speculate what AI-dominated cybersecurity in an age of instant software might look like. There are a number of unknowns that will factor into how the arms race between attacker and defender might play out.

How flaw discovery might work

On the attacker side, the ability of AIs to automatically find and exploit vulnerabilities has increased dramatically over the past few months. We are already seeing both government and criminal hackers using AI to attack systems. The exploitation part is critical here, because it gives an unsophisticated attacker capabilities far beyond their understanding. As AIs get better, expect more attackers to automate their attacks using AI. And as individuals and organizations can increasingly run powerful AI models locally, AI companies monitoring and disrupting malicious AI use will become increasingly irrelevant.

Expect open-source software, including open-source libraries incorporated in proprietary software, to be the most targeted, because vulnerabilities are easier to find in source code. Unknown No. 1 is how well AI vulnerability discovery tools will work against closed-source commercial software packages. I believe they will soon be good enough to find vulnerabilities just by analyzing a copy of a shipped product, without access to the source code. If that’s true, commercial software will be vulnerable as well.

Particularly vulnerable will be software in IoT devices: things like internet-connected cars, refrigerators, and security cameras. Also industrial IoT software in our internet-connected power grid, oil refineries and pipelines, chemical plants, and so on. IoT software tends to be of much lower quality, and industrial IoT software tends to be legacy.

Instant software is differently vulnerable. It’s not mass market. It’s created for a particular person, organization, or network. The attacker generally won’t have access to any code to analyze, which makes it less likely to be exploited by external attackers. If it’s ephemeral, any vulnerabilities will have a short lifetime. But lots of instant software will live on networks for a long time. And if it gets uploaded to shared tool libraries, attackers will be able to download and analyze that code.

All of this points to a future where AIs will become powerful tools of cyberattack, able to automatically find and exploit vulnerabilities in systems worldwide.

Automating patch creation

But that’s just half of the arms race. Defenders get to use AI, too. These same AI vulnerability-finding technologies are even more valuable for defense. When the defensive side finds an exploitable vulnerability, it can patch the code and deny it to attackers forever.

How this works in practice depends on another related capability: the ability of AIs to patch vulnerable software, which is closely related to their ability to write secure code in the first place.

AIs are not very good at this today; the instant software that AIs create is generally filled with vulnerabilities, both because AIs write insecure code and because the people vibe coding don’t understand security. OpenClaw is a good example of this.

Unknown No. 2 is how much better AIs will get at writing secure code. The fact that they’re trained on massive corpuses of poorly written and insecure code is a handicap, but they are getting better. If they can reliably write vulnerability-free code, it would be an enormous advantage for the defender. And AI-based vulnerability-finding makes it easier for an AI to train on writing secure code.

We can envision a future where AI tools that find and patch vulnerabilities are part of the typical software development process. We can’t say that the code would be vulnerability-free—that’s an impossible goal—but it could be without any easily findable vulnerabilities. If the technology got really good, the code could become essentially vulnerability-free.

Patching lags and legacy software

For new software—both commercial and instant—this future favors the defender. For commercial and conventional open-source software, it’s not that simple. Right now, the world is filled with legacy software. Much of it—like IoT device software—has no dedicated security team to update it. Sometimes it is incapable of being patched. Just as it’s harder for AIs to find vulnerabilities when they don’t have access to the source code, it’s harder for AIs to patch software when they are not embedded in the development process.

I’m not as confident that AI systems will be able to patch vulnerabilities as easily as they can find them, because patching often requires more holistic testing and understanding. That’s Unknown No. 3: how quickly AIs will be able to create reliable software updates for the vulnerabilities they find, and how quickly customers can update their systems.

Today, there is a time lag between when a vendor issues a patch and customers install that update. That time lag is even longer for large organizational software; the risk of an update breaking the underlying software system is just too great for organizations to roll out updates without testing them first. But if AI can help speed up that process, by writing patches faster and more reliably, and by testing them in some AI-generated twin environment, the advantage goes to the defender. If not, the attacker will still have a window to attack systems until a vulnerability is patched.

Toward self-healing

In a truly optimistic future, we can imagine a self-healing network. AI agents continuously scan the ever-evolving corpus of commercial and custom AI-generated software for vulnerabilities, and automatically patch them on discovery.

For that to work, software license agreements will need to change. Right now, software vendors control the cadence of security patches. Giving software purchasers this ability has implications about compatibility, the right to repair, and liability. Any solutions here are the realm of policy, not tech.

If the defense can find, but can’t reliably patch, flaws in legacy software, that’s where attackers will focus their efforts. If that’s the case, we can imagine a continuously evolving AI-powered intrusion detection, continuously scanning inputs and blocking malicious attacks before they get to vulnerable software. Not as transformative as automatically patching vulnerabilities in running code, but nevertheless valuable.

The power of these defensive AI systems increases if they are able to coordinate with each other, and share vulnerabilities and updates. A discovery by one AI can quickly spread to everyone using the affected software. Again: Advantage defender.

There are other variables to consider. The relative success of attackers and defenders also depends on how plentiful vulnerabilities are, how easy they are to find, whether AIs will be able to find the more subtle and obscure vulnerabilities, and how much coordination there is among different attackers. All this comprises Unknown No. 4.

Vulnerability economics

Presumably, AIs will clean up the obvious stuff first, which means that any remaining vulnerabilities will be subtle. Finding them will take AI computing resources. In the optimistic scenario, defenders pool resources through information sharing, effectively amortizing the cost of defense. If information sharing doesn’t work for some reason, defense becomes much more expensive, as individual defenders will need to do their own research. But instant software means much more diversity in code: an advantage to the defender.

This needs to be balanced with the relative cost of attackers finding vulnerabilities. Attackers already have an inherent way to amortize the costs of finding a new vulnerability and create a new exploit. They can vulnerability hunt cross-platform, cross-vendor, and cross-system, and can use what they find to attack multiple targets simultaneously. Fixing a common vulnerability often requires cooperation among all the relevant platforms, vendors, and systems. Again, instant software is an advantage to the defender.

But those hard-to-find vulnerabilities become more valuable. Attackers will attempt to do what the major intelligence agencies do today: find “nobody but us” zero-day exploits. They will either use them slowly and sparingly to minimize detection or quickly and broadly to maximize profit before they’re patched. Meanwhile, defenders will be both vulnerability hunting and intrusion detecting, with the goal of patching vulnerabilities before the attackers find them.

We can even imagine a market for vulnerability sharing, where the defender who finds a vulnerability and creates a patch is compensated by everyone else in the information-sharing/repair network. This might be a stretch, but maybe.

Up the stack

Even in the most optimistic future, attackers aren’t going to just give up. They will attack the non-software parts of the system, such as the users. Or they’re going to look for loopholes in the system: things that the system technically allows but were unintended and unanticipated by the designers—whether human or AI—and can be used by attackers to their advantage.

What’s left in this world are attacks that don’t depend on finding and exploiting software vulnerabilities, like social engineering and credential stealing attacks. And we have already seen how AI-generated deepfakes make social engineering easier. But here, too, we can imagine defensive AI agents that monitor users’ behaviors, watching for signs of attack. This is another AI use case, and one that I’m not even sure how to think about in terms of the attacker/defender arms race. But at least we’re pushing attacks up the stack.

Also, attackers will attempt to infiltrate and influence defensive AIs and the networks they use to communicate, poisoning their output and degrading their capabilities. AI systems are vulnerable to all sorts of manipulations, such as prompt injection, and it’s unclear whether we will ever be able to solve that. This is Unknown No. 5, and it’s a biggie. There might always be a “trusting trust problem.”

No future is guaranteed. We truly don’t know whether these technologies will continue to improve and when they will plateau. But given the pace at which AI software development has improved in just the past few months, we need to start thinking about how cybersecurity works in this instant software world.

This essay originally appeared in CSO.

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Russia Hacked Routers to Steal Microsoft Office Tokens

Hackers linked to Russia’s military intelligence units are using known flaws in older Internet routers to mass harvest authentication tokens from Microsoft Office users, security experts warned today. The spying campaign allowed state-backed Russian hackers to quietly siphon authentication tokens from users on more than 18,000 networks without deploying any malicious software or code.

Microsoft said in a blog post today it identified more than 200 organizations and 5,000 consumer devices that were caught up in a stealthy but remarkably simple spying network built by a Russia-backed threat actor known as “Forest Blizzard.”

How targeted DNS requests were redirected at the router. Image: Black Lotus Labs.

Also known as APT28 and Fancy Bear, Forest Blizzard is attributed to the military intelligence units within Russia’s General Staff Main Intelligence Directorate (GRU). APT 28 famously compromised the Hillary Clinton campaign, the Democratic National Committee, and the Democratic Congressional Campaign Committee in 2016 in an attempt to interfere with the U.S. presidential election.

Researchers at Black Lotus Labs, a security division of the Internet backbone provider Lumen, found that at the peak of its activity in December 2025, Forest Blizzard’s surveillance dragnet ensnared more than 18,000 Internet routers that were mostly unsupported, end-of-life routers, or else far behind on security updates. A new report from Lumen says the hackers primarily targeted government agencies—including ministries of foreign affairs, law enforcement, and third-party email providers.

Black Lotus Security Engineer Ryan English said the GRU hackers did not need to install malware on the targeted routers, which were mainly older Mikrotik and TP-Link devices marketed to the Small Office/Home Office (SOHO) market. Instead, they used known vulnerabilities to modify the Domain Name System (DNS) settings of the routers to include DNS servers controlled by the hackers.

As the U.K.’s National Cyber Security Centre (NCSC) notes in a new advisory detailing how Russian cyber actors have been compromising routers, DNS is what allows individuals to reach websites by typing familiar addresses, instead of associated IP addresses. In a DNS hijacking attack, bad actors interfere with this process to covertly send users to malicious websites designed to steal login details or other sensitive information.

English said the routers attacked by Forest Blizzard were reconfigured to use DNS servers that pointed to a handful of virtual private servers controlled by the attackers. Importantly, the attackers could then propagate their malicious DNS settings to all users on the local network, and from that point forward intercept any OAuth authentication tokens transmitted by those users.

DNS hijacking through router compromise. Image: Microsoft.

Because those tokens are typically transmitted only after the user has successfully logged in and gone through multi-factor authentication, the attackers could gain direct access to victim accounts without ever having to phish each user’s credentials and/or one-time codes.

“Everyone is looking for some sophisticated malware to drop something on your mobile devices or something,” English said. “These guys didn’t use malware. They did this in an old-school, graybeard way that isn’t really sexy but it gets the job done.”

Microsoft refers to the Forest Blizzard activity as using DNS hijacking “to support post-compromise adversary-in-the-middle (AiTM) attacks on Transport Layer Security (TLS) connections against Microsoft Outlook on the web domains.” The software giant said while targeting SOHO devices isn’t a new tactic, this is the first time Microsoft has seen Forest Blizzard using “DNS hijacking at scale to support AiTM of TLS connections after exploiting edge devices.”

Black Lotus Labs engineer Danny Adamitis said it will be interesting to see how Forest Blizzard reacts to today’s flurry of attention to their espionage operation, noting that the group immediately switched up its tactics in response to a similar NCSC report (PDF) in August 2025. At the time, Forest Blizzard was using malware to control a far more targeted and smaller group of compromised routers. But Adamitis said the day after the NCSC report, the group quickly ditched the malware approach in favor of mass-altering the DNS settings on thousands of vulnerable routers.

“Before the last NCSC report came out they used this capability in very limited instances,” Adamitis told KrebsOnSecurity. “After the report was released they implemented the capability in a more systemic fashion and used it to target everything that was vulnerable.”

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Hong Kong Police Can Force You to Reveal Your Encryption Keys

According to a new law, the Hong Kong police can demand that you reveal the encryption keys protecting your computer, phone, hard drives, etc.—even if you are just transiting the airport.

In a security alert dated March 26, the U.S. Consulate General said that, on March 23, 2026, Hong Kong authorities changed the rules governing enforcement of the National Security Law. Under the revised framework, police can require individuals to provide passwords or other assistance to access personal electronic devices, including cellphones and laptops.

The consulate warned that refusal to comply is now a criminal offense. It also said authorities have expanded powers to take and keep personal electronic devices as evidence if they claim the devices are linked to national security offenses.

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New Mexico’s Meta Ruling and Encryption

Mike Masnick points out that the recent New Mexico court ruling against Meta has some bad implications for end-to-end encryption, and security in general:

If the “design choices create liability” framework seems worrying in the abstract, the New Mexico case provides a concrete example of where it leads in practice.

One of the key pieces of evidence the New Mexico attorney general used against Meta was the company’s 2023 decision to add end-to-end encryption to Facebook Messenger. The argument went like this: predators used Messenger to groom minors and exchange child sexual abuse material. By encrypting those messages, Meta made it harder for law enforcement to access evidence of those crimes. Therefore, the encryption was a design choice that enabled harm.

The state is now seeking court-mandated changes including “protecting minors from encrypted communications that shield bad actors.”

Yes, the end result of the New Mexico ruling might be that Meta is ordered to make everyone’s communications less secure. That should be terrifying to everyone. Even those cheering on the verdict.

End-to-end encryption protects billions of people from surveillance, data breaches, authoritarian governments, stalkers, and domestic abusers. It’s one of the most important privacy and security tools ordinary people have. Every major security expert and civil liberties organization in the world has argued for stronger encryption, not weaker.

But under the “design liability” theory, implementing encryption becomes evidence of negligence, because a small number of bad actors also use encrypted communications. The logic applies to literally every communication tool ever invented. Predators also use the postal service, telephones, and in-person conversation. The encryption itself harms no one. Like infinite scroll and autoplay, it is inert without the choices of bad actors ­- choices made by people, not by the platform’s design.

The incentive this creates goes far beyond encryption, and it’s bad. If any product improvement that protects the majority of users can be held against you because a tiny fraction of bad actors exploit it, companies will simply stop making those improvements. Why add encryption if it becomes Exhibit A in a future lawsuit? Why implement any privacy-protective feature if a plaintiff’s lawyer will characterize it as “shielding bad actors”?

And it gets worse. Some of the most damaging evidence in both trials came from internal company documents where employees raised concerns about safety risks and discussed tradeoffs. These were played up in the media (and the courtroom) as “smoking guns.” But that means no company is going to allow anyone to raise concerns ever again. That’s very, very bad.

In a sane legal environment, you want companies to have these internal debates. You want engineers and safety teams to flag potential risks, wrestle with difficult tradeoffs, and document their reasoning. But when those good-faith deliberations become plaintiff’s exhibits presented to a jury as proof that “they knew and did it anyway,” the rational corporate response is to stop putting anything in writing. Stop doing risk assessments. Stop asking hard questions internally.

The lesson every general counsel in Silicon Valley is learning right now: ignorance is safer than inquiry. That makes everyone less safe, not more.

The essay has a lot more: about Section 230, about competition in this space, about the myopic nature of the ruling. Go read it.

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Germany Doxes “UNKN,” Head of RU Ransomware Gangs REvil, GandCrab

An elusive hacker who went by the handle “UNKN” and ran the early Russian ransomware groups GandCrab and REvil now has a name and a face. Authorities in Germany say 31-year-old Russian Daniil Maksimovich Shchukin headed both cybercrime gangs and helped carry out at least 130 acts of computer sabotage and extortion against victims across the country between 2019 and 2021.

Shchukin was named as UNKN (a.k.a. UNKNOWN) in an advisory published by the German Federal Criminal Police (the “Bundeskriminalamt” or BKA for short). The BKA said Shchukin and another Russian — 43-year-old Anatoly Sergeevitsch Kravchuk — extorted nearly $2 million euros across two dozen cyberattacks that caused more than 35 million euros in total economic damage.

Daniil Maksimovich SHCHUKIN, a.k.a. UNKN, and Anatoly Sergeevitsch Karvchuk, alleged leaders of the GandCrab and REvil ransomware groups.

Germany’s BKA said Shchukin acted as the head of one of the largest worldwide operating ransomware groups GandCrab and REvil, which pioneered the practice of double extortion — charging victims once for a key needed to unlock hacked systems, and a separate payment in exchange for a promise not to publish stolen data.

Shchukin’s name appeared in a Feb. 2023 filing (PDF) from the U.S. Justice Department seeking the seizure of various cryptocurrency accounts associated with proceeds from the REvil ransomware gang’s activities. The government said the digital wallet tied to Shchukin contained more than $317,000 in ill-gotten cryptocurrency.

The Gandcrab ransomware affiliate program first surfaced in January 2018, and paid enterprising hackers huge shares of the profits just for hacking into user accounts at major corporations. The Gandcrab team would then try to expand that access, often siphoning vast amounts of sensitive and internal documents in the process. The malware’s curators shipped five major revisions to the GandCrab code, each corresponding with sneaky new features and bug fixes aimed at thwarting the efforts of computer security firms to stymie the spread of the malware.

On May 31, 2019, the GandCrab team announced the group was shutting down after extorting more than $2 billion from victims. “We are a living proof that you can do evil and get off scot-free,” GandCrab’s farewell address famously quipped. “We have proved that one can make a lifetime of money in one year. We have proved that you can become number one by general admission, not in your own conceit.”

The REvil ransomware affiliate program materialized around the same as GandCrab’s demise, fronted by a user named UNKNOWN who announced on a Russian cybercrime forum that he’d deposited $1 million in the forum’s escrow to show he meant business. By this time, many cybersecurity experts had concluded REvil was little more than a reorganization of GandCrab.

UNKNOWN also gave an interview to Dmitry Smilyanets, a former malicious hacker hired by Recorded Future, wherein UNKNOWN described a rags-to-riches tale unencumbered by ethics and morals.

“As a child, I scrounged through the trash heaps and smoked cigarette butts,” UNKNOWN told Recorded Future. “I walked 10 km one way to the school. I wore the same clothes for six months. In my youth, in a communal apartment, I didn’t eat for two or even three days. Now I am a millionaire.”

As described in The Ransomware Hunting Team by Renee Dudley and Daniel Golden, UNKNOWN and REvil reinvested significant earnings into improving their success and mirroring practices of legitimate businesses. The authors wrote:

“Just as a real-world manufacturer might hire other companies to handle logistics or web design, ransomware developers increasingly outsourced tasks beyond their purview, focusing instead on improving the quality of their ransomware. The higher quality ransomware—which, in many cases, the Hunting Team could not break—resulted in more and higher pay-outs from victims. The monumental payments enabled gangs to reinvest in their enterprises. They hired more specialists, and their success accelerated.”

“Criminals raced to join the booming ransomware economy. Underworld ancillary service providers sprouted or pivoted from other criminal work to meet developers’ demand for customized support. Partnering with gangs like GandCrab, ‘cryptor’ providers ensured ransomware could not be detected by standard anti-malware scanners. ‘Initial access brokerages’ specialized in stealing credentials and finding vulnerabilities in target networks, selling that access to ransomware operators and affiliates. Bitcoin “tumblers” offered discounts to gangs that used them as a preferred vendor for laundering ransom payments. Some contractors were open to working with any gang, while others entered exclusive partnerships.”

REvil would evolve into a feared “big-game-hunting” machine capable of extracting hefty extortion payments from victims, largely going after organizations with more than $100 million in annual revenues and fat new cyber insurance policies that were known to pay out.

Over the July 4, 2021 weekend in the United States, REvil hacked into and extorted Kaseya, a company that handled IT operations for more than 1,500 businesses, nonprofits and government agencies. The FBI would later announce they’d infiltrated the ransomware group’s servers prior to the Kaseya hack but couldn’t tip their hand at the time. REvil never recovered from that core compromise, or from the FBI’s release of a free decryption key for REvil victims who couldn’t or didn’t pay.

Shchukin is from Krasnodar, Russia and is thought to reside there, the BKA said.

“Based on the investigations so far, it is assumed that the wanted person is abroad, presumably in Russia,” the BKA advised. “Travel behaviour cannot be ruled out.”

There is little that connects Shchukin to UNKNOWN’s various accounts on the Russian crime forums. But a review of the Russian crime forums indexed by the cyber intelligence firm Intel 471 shows there is plenty connecting Shchukin to a hacker identity called “Ger0in” who operated large botnets and sold “installs” — allowing other cybercriminals to rapidly deploy malware of their choice to thousands of PCs in one go. However, Ger0in was only active between 2010 and 2011, well before UNKNOWN’s appearance as the REvil front man.

A review of the mugshots released by the BKA at the image comparison site Pimeyes found a match on this birthday celebration from 2023, which features a young man named Daniel wearing the same fancy watch as in the BKA photos.

Images from Daniil Shchukin’s birthday party celebration in Krasnodar in 2023.

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US Bans All Foreign-Made Consumer Routers

This is for new routers; you don’t have to throw away your existing ones:

The Executive Branch determination noted that foreign-produced routers (1) introduce “a supply chain vulnerability that could disrupt the U.S. economy, critical infrastructure, and national defense” and (2) pose “a severe cybersecurity risk that could be leveraged to immediately and severely disrupt U.S. critical infrastructure and directly harm U.S. persons.”

More information:

Any new router made outside the US will now need to be approved by the FCC before it can be imported, marketed, or sold in the country.

In order to get that approval, companies manufacturing routers outside the US must apply for conditional approval in a process that will require the disclosure of the firm’s foreign investors or influence, as well as a plan to bring the manufacturing of the routers to the US.

Certain routers may be exempted from the list if they are deemed acceptable by the Department of Defense or the Department of Homeland Security, the FCC said. Neither agency has yet added any specific routers to its list of equipment exceptions.

[…]

Popular brands of router in the US include Netgear, a US company, which manufactures all of its products abroad.

One exception to the general absence of US-made routers is the newer Starlink WiFi router. Starlink is part of Elon Musk’s company SpaceX.

Presumably US companies will start making home routers, if they think this policy is stable enough to plan around. But they will be more expensive than routers made in China or Taiwan. Security is never free, but policy determines who pays for it.

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Friday Squid Blogging: Jurassic Fish Chokes on Squid

Here’s a fossil of a 150-million year old fish that choked to death on a belemnite rostrum: the hard, internal shell of an extinct, squid-like animal.

Original paper.

As usual, you can also use this squid post to talk about the security stories in the news that I haven’t covered.

Blog moderation policy.

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