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Chinese hackers turned AI tools into an automated attack machine

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Chinese hackers turned AI tools into an automated attack machine

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Cybersecurity has been reshaped by the rapid rise of advanced artificial intelligence tools, and recent incidents show just how quickly the threat landscape is shifting.

Over the past year, we’ve seen a surge in attacks powered by AI models that can write code, scan networks and automate complex tasks. This capability has helped defenders, but it has also enabled attackers to move faster than before.

The latest example is a major cyberespionage campaign conducted by a Chinese state-linked group that used Anthropic’s Claude to carry out large parts of an attack with very little human involvement.

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How Chinese hackers turned Claude into an automated attack machine

In mid-September 2025, Anthropic investigators spotted unusual behavior that eventually revealed a coordinated and well-resourced campaign. The threat actor, assessed with high confidence as a Chinese state-sponsored group, had used Claude Code to target roughly 30 organizations worldwide. The list included major tech firms, financial institutions, chemical manufacturers and government bodies. A small number of those attempts resulted in successful breaches.

Claude handled most of the operation autonomously, triggering thousands of requests and generating detailed documentation of the attack for future use. (Kurt “CyberGuy” Knutsson)

How the attackers bypassed Claude’s safeguards

This was not a typical intrusion. The attackers built a framework that let Claude act as an autonomous operator. Instead of asking the model to help, they tasked it with executing most of the attack. Claude inspected systems, mapped out internal infrastructure and flagged databases worth targeting. The speed was unlike anything a human team could replicate.

To get around Claude’s safety rules, the attackers broke their plan into tiny, innocent-looking steps. They also told the model it was part of a legitimate cybersecurity team performing defensive testing. Anthropic later noted that the attackers didn’t simply hand tasks to Claude; they engineered the operation to make the model believe it was performing authorized pentesting work, splitting the attack into harmless-looking pieces and using multiple jailbreak techniques to push past its safeguards. Once inside, Claude researched vulnerabilities, wrote custom exploits, harvested credentials and expanded access. It worked through these steps with little supervision and reported back only when it needed human approval for major decisions.

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The model also handled the data extraction. It collected sensitive information, sorted it by value and identified high-privilege accounts. It even created backdoors for future use. In the final stage, Claude generated detailed documentation of what it had done. This included stolen credentials, systems analyzed and notes that could guide future operations.

Across the entire campaign, investigators estimate that Claude performed around 80-90% of the work. Human operators stepped in only a handful of times. At its peak, the AI triggered thousands of requests, often multiple per second, a pace still far beyond what any human team could achieve. Although it occasionally hallucinated credentials or misread public data as secret, those errors underscored that fully autonomous cyberattacks still face limitations, even when an AI model handles the majority of the work.

Why this AI-powered Claude attack is a turning point for cybersecurity

This campaign shows how much the barrier to high-end cyberattacks has dropped. A group with far fewer resources could now attempt something similar by leaning on an autonomous AI agent to do the heavy lifting. Tasks that once required years of expertise can now be automated by a model that understands context, writes code and uses external tools without direct oversight.

Earlier incidents documented AI misuse, but humans were still steering every step. This case is different. The attackers needed very little involvement once the system was in motion. And while the investigation focused on usage within Claude, researchers believe similar activity is happening across other advanced models, which might include Google Gemini, OpenAI’s ChatGPT or Musk’s Grok.

This raises a difficult question. If these systems can be misused so easily, why continue building them? According to researchers, the same capabilities that make AI dangerous are also what make it essential for defense. During this incident, Anthropic’s own team used Claude to analyze the flood of logs, signals and data its investigation uncovered. That level of support will matter even more as threats grow.

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We reached out to Anthropic for comment but did not hear back before our deadline.

Hackers used Claude to map networks, scan systems and identify high-value databases in a fraction of the time human attackers would need. (Kurt “CyberGuy” Knutsson)

FORMER GOOGLE CEO WARNS AI SYSTEMS CAN BE HACKED TO BECOME EXTREMELY DANGEROUS WEAPONS

You may not be the direct target of a state-sponsored campaign, but many of the same techniques trickle down to everyday scams, credential theft and account takeovers. Here are seven detailed steps you can take to stay safer.

1) Use strong antivirus software and keep it updated

Strong antivirus software does more than scan for known malware. It looks for suspicious patterns, blocked connections and abnormal system behavior. This is important because AI-driven attacks can generate new code quickly, which means traditional signature-based detection is no longer enough.

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The best way to safeguard yourself from malicious links that install malware, potentially accessing your private information, is to have strong antivirus software installed on all your devices. This protection can also alert you to phishing emails and ransomware scams, keeping your personal information and digital assets safe.

Get my picks for the best 2025 antivirus protection winners for your Windows, Mac, Android and iOS devices at Cyberguy.com

2) Rely on a password manager

A good password manager helps you create long, random passwords for every service you use. This matters because AI can generate and test password variations at high speed. Using the same password across accounts can turn a single leak into a full compromise.

Next, see if your email has been exposed in past breaches. Our No. 1 password manager (see Cyberguy.com) pick includes a built-in breach scanner that checks whether your email address or passwords have appeared in known leaks. If you discover a match, immediately change any reused passwords and secure those accounts with new, unique credentials. 

Check out the best expert-reviewed password managers of 2025 at Cyberguy.com

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3) Consider using a personal data removal service

A large part of modern cyberattacks begins with publicly available information. Attackers often gather email addresses, phone numbers, old passwords and personal details from data broker sites. AI tools make this even easier, since they can scrape and analyze huge datasets in seconds. A personal data removal service helps clear your information from these broker sites so you are harder to profile or target.

FAKE CHATGPT APPS ARE HIJACKING YOUR PHONE WITHOUT YOU KNOWING

While no service can guarantee the complete removal of your data from the internet, a data removal service is really a smart choice. They aren’t cheap, and neither is your privacy. These services do all the work for you by actively monitoring and systematically erasing your personal information from hundreds of websites. It’s what gives me peace of mind and has proven to be the most effective way to erase your personal data from the internet. By limiting the information available, you reduce the risk of scammers cross-referencing data from breaches with information they might find on the dark web, making it harder for them to target you.

Check out my top picks for data removal services and get a free scan to find out if your personal information is already out on the web by visiting Cyberguy.com

Get a free scan to find out if your personal information is already out on the web: Cyberguy.com

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4) Turn on two-factor authentication wherever possible

Strong passwords alone are not enough when attackers can steal credentials through malware, phishing pages or automated scripts. Two-factor authentication adds a serious roadblock. Use app-based codes or hardware keys instead of SMS. While no method is perfect, this extra layer often stops unauthorized logins even when attackers have your password.

5) Keep your devices and apps fully updated

Attackers rely heavily on known vulnerabilities that people forget or ignore. System updates patch these flaws and close off entry points that attackers use to break in. Enable automatic updates on your phone, laptop, router and the apps you use most. If an update looks optional, treat it as important anyway, because many companies downplay security fixes in their release notes.

6) Install apps only from trusted sources

Malicious apps are one of the easiest ways attackers get inside your device. Stick to official app stores and avoid APK sites, shady download portals and random links shared on messaging apps. Even on official stores, check reviews, download counts and the developer name before installing anything. Grant the minimum permissions required and avoid apps that ask for full access for no clear reason.

7) Ignore suspicious texts, emails and pop-ups

AI tools have made phishing more convincing. Attackers can generate clean messages, imitate writing styles and craft perfect fake websites that match the real ones. Slow down when a message feels urgent or unexpected. Never click links from unknown senders, and verify requests from known contacts through a separate channel. If a pop-up claims your device is infected or your bank account is locked, close it and check directly through the official website.

By breaking tasks into small, harmless-looking steps, the threat actors tricked Claude into writing exploits, harvesting credentials and expanding access.  (Kurt “CyberGuy” Knutsson)

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Kurt’s key takeaway

The attack carried out through Claude signals a major shift in how cyber threats will evolve. Autonomous AI agents can already perform complex tasks at speeds no human team can match, and this gap will only widen as models improve. Security teams now need to treat AI as a core part of their defensive toolkit, not a future add-on. Better threat detection, stronger safeguards and more sharing across the industry are going to be crucial. Because if attackers are already using AI at this scale, the window to prepare is shrinking fast.

Should governments push for stricter regulations on advanced AI tools? Let us know by writing to us at Cyberguy.com.

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Is the ‘Holy Grail of batteries’ finally ready to bless us with its presence?

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Is the ‘Holy Grail of batteries’ finally ready to bless us with its presence?

Earlier this year, a relatively unknown startup from Finland made a startling announcement: It had finally solved solid-state batteries.

Not only that, but Donut Lab, a spinoff of Verge Motorcycles, said that its solid-state battery — long considered the “Holy Grail of batteries” for their high-density, durable, fast-charging abilities — would go into production later this year.

Battery experts were understandably skeptical. After all, solid-state batteries are one of those technologies, along with artificial general intelligence and the hyperloop, that seem perpetually two years away. And while most legitimate efforts in this field — whether academic or commercial — have some level of published research or recognizable names attached, Donut Lab seemed to have emerged out of nowhere, with no known researchers or prior presence in the field. This lack of traceability immediately raised concerns about the startup’s credibility.

“I can’t say they didn’t do it,” said Eric Wachsman, the director of the Maryland Energy Innovation Institute and an expert on solid-state batteries and solid oxide fuel cells. “All I can say is they haven’t demonstrated that they have.”

The skepticism seems warranted, especially when you consider how many other people have been chasing the solid-state dream. Were we really to believe this obscure startup had beaten Toyota, Stellantis, and the entire nation of China to the punch? The odds were against it.

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Donut Lab seemed to anticipate the doubt, launching a website last February called idonutbelieve.com that would serve as a platform to publish independent tests verifying that, in fact, its solid-state battery was real, and spectacular. Over the course of several weeks, the startup posted third-party results from state-owned VTT Technical Research Centre of Finland that it said proved its battery was what it said it was: a fast-charging, high-energy-density solid-state battery that wasn’t actually a supercapacitor in disguise.

“The resistance won’t disappear when we present the proof,” Donut Lab CEO and cofounder Marko Lehtimäki said in a video. “It will just intensify because this new technology is a threat to the established players in the industry.”

But Donut Lab is still hiding the ball on some key information. At CES in January, the startup said its solid-state battery has an energy density of 400Wh per kilogram—roughly twice that of typical lithium iron phosphate (LFP) batteries in production. Not only that, but it could charge to full in five minutes, had a practically unlimited lifespan of 100,000 charging cycles, was unaffected by heat and cold (negative 30 degrees Celsius and 100C), and contains no rare earth elements, precious metals, or flammable liquid electrolytes.

Much of that remains unsubstantiated. Even after posting five independent test reports from VTT, the startup has yet to demonstrate three of the most important metrics: chemistry, density, and cycle-life claims.

The stakes are incredibly high. Imagine an electric vehicle that can travel 700–800 miles on a single charge, and that wasn’t at risk of bursting into flames because the flammable electrolytes had been replaced with a solid material.

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In lithium-ion batteries, the motion of the liquid electrolytes generates heat, and in certain situations, this can slip into a “thermal runaway” effect that results in a fire. By comparison, solid-state batteries would make it safer to quickly draw power from (or add it back to) the battery, meaning you could theoretically charge an EV faster. It also could mean, structurally, less room has to be devoted to temperature control, which could allow companies to squeeze more battery cells into the same size pack.

After reviewing the tests of the Donut battery, Wachsman said there are still significant concerns. During the extreme heat tests, for example, the pouch surrounding Donut’s battery lost its vacuum seal. Gas generation inside batteries — caused by processes like electrolyte decomposition or oxygen release — can lead to swelling and rupture of the battery pouch. But without knowing the exact chemistry of the cell, it’s difficult to say how significant it is that Donut’s battery had this failure.

Setting aside the Donut battery for a moment, solid-state batteries have struggled to graduate from the laboratory to the assembly line because of well-documented problems. These batteries are often plagued by the formation of metallic cracks called dendrites that cause them to short circuit. Think of them like cracks that form on a sidewalk when a tree root grows underneath.

Dendrites have been a thorn in the side of battery developers since the 1970s. One reason lithium-ion batteries have become ubiquitous while other approaches have stalled is that their commonly used graphite anodes are less susceptible to dendrite formation.

But new discoveries could help engineers finally overcome these hurdles. A research team from MIT recently published a study in Nature that found that chemical reactions caused by high electrical currents that weaken the electrolyte also make it more susceptible to dendrite growth. That’s why developing stronger electrolytes alone hasn’t solved the decades-old dendrite problem. And it could point to the importance of developing more chemically stable materials to finally fulfill the promise of solid-state batteries.

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Progress is already being made — where else? — in China. Last month, CATL, which controls nearly 40 percent of the global battery market, filed a patent application for solid-state batteries with a reported 500Wh energy density. According to CarNewsChina, the battery maker has already been planning small-scale production in 2027. But automotive-grade cells won’t be ready likely until the end of the decade.

Other Chinese companies are rushing ahead. Automaker FAW said recently that its “liquid-solid-state” lithium-rich manganese cell with 500Wh/kg was ready for vehicle integration.

China is already laying the groundwork for mass production by the end of the decade, by which point it hopes the technology will be mature. And why wouldn’t it? This is a country that has taken EVs and battery development seriously for years, allowing it to corner the market on much of the world’s supply.

Different companies are taking different approaches. For example, Honda is committed to sulfur-based electrolytes despite emerging alternatives. Last October, Toyota announced “the world’s first practical use of all-solid-state batteries in BEVs” by 2027 or 2028. And Mercedes, using a prototype battery from startup Factorial, was able to get an electric EQS sedan a real-world range of 749 miles.

“The companies probably have a ways to go,” said Alevtina Smirnova, director of the NSF Industry-University Cooperative Research Center for Solid-State Electric Power Storage. “Because there is no comparison to what is happening now in China to what is happening here in the US.”

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For its part, Donut Lab is unperturbed by the skepticism around its claims. On April 1st, Lehtimäki posted a new video addressing some of the controversy surrounding its solid-state batteries. He also revealed that Donut Lab had created a second, more production-ready version of its battery that would start shipping to customers later this year.

There was a crucial admission: The widely discussed “100,000 cycles” figure was a design target, he said, not an experimentally verified result. Actual testing has been conducted over shorter cycles, with projections extrapolated based on known variables such as charge rate, temperature, and usage conditions.

He then pivoted to a more near-term project: Donut Lab’s latest merch drop, including a “tin-foil”-covered bucket hat.

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Fox News AI Newsletter: Lowe’s $250M bet on blue-collar jobs that AI can’t do

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Fox News AI Newsletter: Lowe’s 0M bet on blue-collar jobs that AI can’t do

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Welcome to Fox News’ Artificial Intelligence newsletter with the latest AI technology advancements.

IN TODAY’S NEWSLETTER:

Lowe’s CEO warns AI can’t climb a ladder as company makes $250M bet on blue-collar future

Wisconsin town becomes first in nation to pass referendum restricting AI data center development

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Amazon rebuilding customer shopping experience around AI from ground up

HAMMERING IT HOME: Lowe’s CEO warns AI can’t climb a ladder as company makes $250M bet on blue-collar futureThe CEO of Lowe’s highlighted the physical limitations of artificial intelligence, noting that AI “can’t climb a ladder,” while simultaneously announcing the home improvement company’s massive $250 million investment focused on the future of blue-collar work.

CITIZENS FIGHT BACK: Wisconsin town becomes first in nation to pass referendum restricting AI data center developmentA local community in Wisconsin became the first in the nation to pass a referendum designed to restrict the development of massive artificial intelligence data centers in their area.

CLEAN SHEET: Amazon disrupting itself, rebuilding customer shopping experience around AI from ground up – Tech giant Amazon is intentionally disrupting its own established e-commerce models by rebuilding the entire customer shopping experience from the ground up to center around advanced artificial intelligence technologies.

Amazon CEO Andy Jassy speaks during an Amazon Devices launch event in New York City, Feb. 26, 2025. (Brendan McDermid/Reuters)

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SECURITY DISPUTE: Federal appeals court rejects Anthropic bid to block Pentagon blacklist in AI disputeA federal appeals court denied a bid by artificial intelligence company Anthropic to block a Pentagon blacklist amid an ongoing legal dispute regarding defense contracting and AI technology.

War Secretary Pete Hegseth marveled at the ‘war time speed’ of Operation Epic Fury forces. (Win McNamee/Getty Images)

WHAT’S AT STAKE: OPINION: Chad Wolf: China’s AI mockery shows fight for America is underwayFormer acting Homeland Security Secretary Chad Wolf argues in a Fox News Digital op-ed that China’s mockery in the artificial intelligence space is a clear indicator that the high-stakes fight for America’s future is already actively underway.

ENEMY WITHIN: OPINION: We could win AI war, still lose all our freedoms if we aren’t carefulA newly published opinion essay from Fox News Digital explores the complex geopolitical and domestic threats surrounding artificial intelligence, cautioning that the United States could successfully win the global AI arms race but still risk losing fundamental freedoms if careful guardrails are not implemented.

REVOLUTIONARY MOMENT: Hollywood titan believes AI is a revolutionary moment reshaping industriesA prominent Hollywood titan expressed strong convictions regarding artificial intelligence, characterizing the technology’s rapid advancement as a revolutionary moment that is fundamentally reshaping the entertainment industry and beyond.

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BOT DOC: AI chatbots refilling psych meds sparks debateIf you have ever waited weeks just to renew a mental health prescription, you already know how frustrating the system can feel. Now imagine handling that refill through a chatbot instead of a doctor.

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Now the FAA says gamers are the answer to its air traffic controller shortage

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Now the FAA says gamers are the answer to its air traffic controller shortage

The Federal Aviation Administration (FAA) has struggled for years to have enough air traffic controllers to address shortages, with the US Government Accountability Office (GAO) saying in January that the number of people in the job in the US has declined by around 6 percent “in the last decade.” Now the Trump administration is rolling out a recruiting campaign targeting gamers ahead of the opening of the annual air traffic control hiring window on April 17th.

Even with the campaign, getting qualified individuals through training and into the role may still be a challenge: according to the Department of Transportation’s Office of Inspector General (OIG), the FAA is facing “considerable challenges with training, including a shortage of qualified instructors, training capacity limitations, an outdated curriculum, and high training failure rates.”

An FAA video full of clips of things like Madden NFL, Fortnite, League of Legends esports, and the Xbox One stinger from commercials promises an average salary of $155,000 per year after three years and says that “you’ve been training for this.”

In a press release, the FAA says that air traffic controllers said in exit interviews that gaming was an influence on “their ability to think quickly, stay focused, and manage complexity.” The FAA’s website about the application process encourages applicants to “level up” their career. However, the Trump administration isn’t the first to target gamers for the role; according to The New York Times, the Biden administration launched a “Level Up” recruiting push in 2021, encouraging gamers as well as women and members of minority groups to become air traffic controllers.

Getting more air traffic controllers has been a focus for Sean Duffy, President Trump’s secretary of transportation, and he announced a plan to “supercharge” hiring shortly after he was sworn in for the job last year. That campaign closed in March 2025 and “attracted more than 10,000 applications,” resulting in about 600 trainees entering the Controller Training Academy, the OIG says. And the GAO says that some attrition during the air traffic controller hiring process “may be preventable,” noting that the hiring process can be “difficult to navigate” and that applicants may have already accepted other jobs by the time they get an employment offer.

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The National Air Traffic Controllers Association (NATCA), the union representing air traffic controllers, “welcomes innovative approaches to expanding the candidate pool,” including “outreach to individuals with high-level aptitude skills such as gamers,” according to a statement from NATCA president Nick Daniels.

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