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How hackers are exploiting Windows SmartScreen vulnerability to spread malware

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How hackers are exploiting Windows SmartScreen vulnerability to spread malware

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If you use a Windows computer, it’s time to update it yet again — before hackers get to you with the latest Windows malware threat. Phemedrone is an open-source malware that targets web browsers and data from cryptocurrency wallets and messaging apps such as Telegram and Discord. And, this time, it’s getting to ordinary Windows users simply by getting around antivirus via Windows SmartScreen.

If that sounded like a lot of jibber-jabber, let’s break down what this means exactly, how it works and what else you need to know so you don’t end up a victim of this clever malware scam.

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Hacker on Windows computer (Kurt “CyberGuy” Knutsson)

What is Windows SmartScreen?

Before we detail this specific threat, let’s talk about Windows SmartScreen. Windows SmartScreen is a cloud-based, anti-phishing and anti-malware component found in many Microsoft products, and it determines whether or not a website is potentially malicious to protect users from downloading harmful viruses to their devices. It does this by analyzing webpages and identifying suspicious behavior that could be indicative of malicious sites, apps and files that could be potentially downloaded.

It has several tactics that it uses to make this determination. Still, essentially, if and when it does, it will notify the user via Windows SmartScreen, showing you a warning on the page that lets you know whatever you’re about to do could be dangerous.

Windows pop-up screen (Microsoft Tech Community) (Kurt “CyberGuy” Knutsson)

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MORE: WATCH OUT FOR THIS NEW MALICIOUS RANSOMWARE DISGUISED AS WINDOWS UPDATES 

How hackers got past Windows SmartScreen

Unfortunately, a vulnerability in Windows Defender known as CVE-2023-36025 was discovered and exploited by hackers back in November 2023, allowing bad actors to sneak past Windows Defender SmartScreen. It did this by hosting the malicious URL — which was shortened to be less suspicious — on a trusted cloud provider, like Discord or Filetransfer.io, though didn’t mention exactly how users were tricked into doing it. After all, this is a sophisticated hack.

Windows recognized these to be safe, while hackers were able to turn off the prompt that would otherwise enable Windows SmartScreen to pop up. As long as someone clicked the URL, Windows SmartScreen didn’t see it as harmful and, therefore, did not give a warning to users.

What would happen after this is that the victim would unknowingly download a control panel item (.cpl) file from a command-and-control, which allows hackers to essentially communicate with and control the device that they’ve compromised. Once they’re in, they launch a PowerShell loader, which grabs a PDF ZIP file labeled “Secure.pdf.” But, that’s no secure PDF…that’s a sneaky file disguising the Phemedrone malware. Then, boom. It’s on your device. And this is what would happen next.

MORE: BEST DESKTOP COMPUTERS FOR 2024 | BEST LAPTOPS FOR 2024

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What is this malware capable of?

The type of malware in this particular threat is known as Phemedrone, and no, it’s not the name of medicine — it’s a new open-source malware that has the main goal of stealing data stored in web browsers, funds from your cryptocurrency wallets and other data, including password managers like LastPass. It can even steal cookies, autofill data and browser data, as well as any other files and folders on your computer that the hacker wants access to.

And that’s not all. This malware is also capable of:

  • Collecting system information (hardware, OS, geolocation) and making screenshots
  • Grabbing Discord authentication tokens and files related to Steam and Telegram authentication-related file
  • Capturing connection details and credentials for FileZilla (a free FTP solution)

Hacker at work (Kurt “CyberGuy” Knutsson)

MORE: WHY THAT FREE WINDOWS DOWNLOAD COULD COST YOU MORE THAN YOU BARGAINED FOR

Do software updates regularly to stay safe from threats

Now, the reason you’re here — to protect yourself. New threats are coming out every day as hackers become more savvy and find more loopholes to exploit. But, in the case of this specific threat, Windows patched it up already and introduced the protection in a software update. This means that all you need to do is keep up with your software updates on Windows to protect yourself, which you’d be surprised how many people forget to do or ignore altogether. These software updates are important in keeping you safe, not just from this threat, but any others that may come your way.

Additionally, remember not to open or click on any links or files that you don’t know to be legit. Of course, hackers find sneaky ways to convince you that a link can be trusted even when it’s malicious. But stick to downloading files and apps from trusted browsers and app stores, and think twice before clicking on links in messaging apps.

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Always have strong antivirus software on all your devices

An effective antivirus software is a must-have. It’s the best to help stop and alert you of any malware in your system, warn you against clicking on any malicious links in phishing emails and ultimately protect you from being hacked. The best way to protect yourself from having your data breached is to have antivirus protection installed on all your devices. Having good antivirus software allows you to be resilient against growing attacks like Phemedrone malware by actively running on your devices. Get my picks for the best 2024 antivirus protection winners for your Windows, Mac, Android & iOS devices.

Kurt’s key takeaways

Well, the biggest takeaway from this is that you can never be 100% safe online. Even the tools that are meant to protect you — like Windows SmartScreen — can be exploited from time to time. So, stay vigilant and have good antivirus software running on all your devices.

When was the last time you did a software update? How do you decide when it’s time to perform an update? Let us know by writing us at Cyberguy.com/Contact.

For more of my tech tips & security alerts, subscribe to my free CyberGuy Report Newsletter by heading to Cyberguy.com/Newsletter.

Ask Kurt a question or let us know what stories you’d like us to cover.

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Copyright 2024 CyberGuy.com. All rights reserved.

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Here’s your first look at Kratos in Amazon’s God of War show

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Here’s your first look at Kratos in Amazon’s God of War show

Amazon has slowly been teasing out casting details for its live-action adaptation of God of War, and now we have our first look at the show. It’s a single image but a notable one showing protagonist Kratos and his son Atreus. The characters are played by Ryan Hurst and Callum Vinson, respectively, and they look relatively close to their video game counterparts.

There aren’t a lot of other details about the show just yet, but this is Amazon’s official description:

The God of War series storyline follows father and son Kratos and Atreus as they embark on a journey to spread the ashes of their wife and mother, Faye. Through their adventures, Kratos tries to teach his son to be a better god, while Atreus tries to teach his father how to be a better human.

That sounds a lot like the recent soft reboot of the franchise, which started with 2018’s God of War and continued through Ragnarök in 2022. For the Amazon series, Ronald D. Moore, best-known for his work on For All Mankind and Battlestar Galactica, will serve as showrunner. The rest of the cast includes: Mandy Patinkin (Odin), Ed Skrein (Baldur), Max Parker (Heimdall), Ólafur Darri Ólafsson (Thor), Teresa Palmer (Sif), Alastair Duncan (Mimir), Jeff Gulka (Sindri), and Danny Woodburn (Brok).

While production is underway on the God of War series, there’s no word on when it might start streaming.

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300,000 Chrome users hit by fake AI extensions

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300,000 Chrome users hit by fake AI extensions

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Your web browser may feel like a safe place, especially when you install helpful tools that promise to make your life easier. But security researchers have uncovered a dangerous campaign in which more than 300,000 people installed Chrome extensions pretending to be artificial intelligence (AI) assistants. Instead of helping, these fake tools secretly collect sensitive information like your emails, passwords and browsing activity.

They used familiar names like ChatGPT, Gemini and AI Assistant. If you use Chrome and have installed any AI-related extension, your personal information may already be exposed. Even worse, some of these malicious extensions are still available today, putting more people at risk without their knowing.

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More than 300,000 Chrome users installed fake AI extensions that secretly harvested sensitive data. (Kurt “CyberGuy” Knutsson)

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What you need to know about fake AI extensions

Security researchers at browser security company LayerX discovered a large campaign involving 30 malicious Chrome extensions disguised as AI-powered assistants (via BleepingComputer). Together, these extensions were installed more than 300,000 times by unsuspecting users.

Some of the most popular extensions included names like AI Sidebar with 70,000 users, AI Assistant with 60,000 users, ChatGPT Translate with 30,000 users, and Google Gemini with 10,000 users. Another extension called Gemini AI Sidebar had 80,000 users before it was removed.

These extensions were distributed through the official Chrome Web Store, which made them appear legitimate and trustworthy. Even more concerning, researchers found that many of these extensions were connected to the same malicious server, showing they were part of a coordinated effort.

While some extensions have since been removed, others remain available. This means new users could still unknowingly install them and expose their personal data. Here’s the list of the affected extensions:

  • AI Assistant
  • Llama
  • Gemini AI Sidebar
  • AI Sidebar
  • ChatGPT Sidebar
  • Grok
  • Asking ChatGPT
  • ChatGBT
  • Chat Bot GPT
  • Grok Chatbot
  • Chat With Gemini
  • XAI
  • Google Gemini
  • Ask Gemini
  • AI Letter Generator
  • AI Message Generator
  • AI Translator
  • AI For Translation
  • AI Cover Letter Generator
  • AI Image Generator ChatGPT
  • Ai Wallpaper Generator
  • Ai Picture Generator
  • DeepSeek Download
  • AI Email Writer
  • Email Generator AI
  • DeepSeek Chat
  • ChatGPT Picture Generator
  • ChatGPT Translate
  • AI GPT
  • ChatGPT Translation
  • ChatGPT for Gmail

FAKE AI CHAT RESULTS ARE SPREADING DANGEROUS MAC MALWARE

These malicious tools were listed in the official Chrome Web Store, making them appear legitimate and trustworthy. (LayerX)

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How the fake AI Chrome extension attack works

These fake extensions pretend to offer helpful AI features, such as translating text, summarizing emails, or acting as an AI assistant. But behind the scenes, they quietly monitor what you are doing online.

Once installed, the extension gains permission to view and interact with the websites you visit. This allows it to read the contents of web pages, including login screens where you enter your username and password.

In some cases, the extensions specifically targeted Gmail. They could read your email messages directly from your browser, including emails you received and even drafts you were still writing. This means attackers could access private conversations, financial information and sensitive personal details.

The extensions then sent this information to servers controlled by the attackers. Because they loaded content remotely, the attackers could change their behavior at any time without needing to update the extension.

Some versions could also activate voice features through your browser. This could potentially capture spoken conversations near your device and send transcripts back to the attackers.

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If you installed one of these extensions, attackers may already have access to extremely sensitive information. This includes your email content, login credentials, browsing habits and possibly even voice recordings.

We reached out to Google for comment, and a spokesperson told CyberGuy that the company “can confirm that the extensions from this report have all been removed from the Google Web Store.”

BROWSER EXTENSION MALWARE INFECTED 8.8M USERS IN DARKSPECTRE ATTACK

Once installed, the extensions could read emails, capture passwords, monitor browsing activity and send the data to attacker-controlled servers. (Bildquelle/ullstein bild via Getty Images)

7 ways you can protect yourself from malicious Chrome extensions

If you have ever installed an AI-related Chrome extension, taking a few simple precautions now can help protect your accounts and prevent further damage.

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1) Remove any suspicious or unused browser extensions

On a Windows PC or Mac, open Chrome and type chrome://extensions into the address bar. Review every extension listed. If you see anything unfamiliar, especially AI assistants you don’t remember installing, click “Remove” immediately. Malicious extensions depend on going unnoticed. Removing them stops further data collection and cuts off the attacker’s access to your information.

2) Change your passwords

If you installed any suspicious extension, assume your passwords may be compromised. Start by changing your email password first, since email controls access to most other accounts. Then update passwords for banking, shopping and social media accounts. This prevents attackers from using stolen credentials to break into your accounts.

3) Use a password manager to create and protect strong passwords

A password manager generates unique, complex passwords for each account and stores them securely. This prevents attackers from accessing multiple accounts if one password is stolen. Password managers also alert you if your login credentials appear in known data breaches, helping you respond quickly and protect your identity. Check out the best expert-reviewed password managers of 2026 at Cyberguy.com.

4) Install strong antivirus software and keep it active

Good antivirus software can detect malicious browser extensions, spyware, and other hidden threats. It scans your system for suspicious activity and blocks harmful programs before they can steal your information. This adds an important layer of protection that works continuously in the background to keep your device safe. Get my picks for the best 2026 antivirus protection winners for your Windows, Mac, Android & iOS devices at Cyberguy.com.

5) Use an identity theft protection service

Identity theft protection services monitor your personal data, including email addresses, financial accounts, and Social Security numbers, for signs of misuse. If criminals try to open accounts or commit fraud using your information, you receive alerts quickly. Early detection allows you to act fast and limit financial and personal damage. See my tips and best picks on how to protect yourself from identity theft at Cyberguy.com.

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6) Keep your browser and computer fully updated

Software updates fix security vulnerabilities that attackers exploit. Enable automatic updates for Chrome and your operating system so you always have the latest protections. These updates strengthen your defenses against malicious extensions and prevent attackers from taking advantage of known weaknesses.

7) Use a personal data removal service

Personal data removal services scan data broker websites that collect and sell your personal information. They help remove your data from these sites, reducing what attackers can find and use against you. Less exposed information means fewer opportunities for criminals to target you with scams, identity theft or phishing attacks.

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.

Kurt’s key takeaway

Even tools designed to make your life easier can become tools for cybercriminals. Malicious extensions often hide behind trusted names and convincing features, making them difficult to spot. You can significantly reduce your risk by reviewing your browser extensions regularly, removing anything suspicious and using protective tools like password managers and strong antivirus software.

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Have you checked your browser extensions recently? Let us know your thoughts by writing to us at Cyberguy.com.

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Copyright 2026 CyberGuy.com. All rights reserved.

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Anthropic refuses Pentagon’s new terms, standing firm on lethal autonomous weapons and mass surveillance

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Anthropic refuses Pentagon’s new terms, standing firm on lethal autonomous weapons and mass surveillance

Less than 24 hours before the deadline in an ultimatum issued by the Pentagon, Anthropic has refused the Department of Defense’s demands for unrestricted access to its AI.

It’s the culmination of a dramatic exchange of public statements, social media posts, and behind-the-scenes negotiations, coming down to Defense Secretary Pete Hegseth’s desire to renegotiate all AI labs’ current contracts with the military. But Anthropic, so far, has refused to back down from its two current red lines: no mass surveillance of Americans, and no lethal autonomous weapons (or weapons with license to kill targets with no human oversight whatsoever). OpenAI and xAI had reportedly already agreed to the new terms, while Anthropic’s refusal had led to CEO Dario Amodei being summoned to the White House this week for a meeting with Hegseth himself, in which the Secretary reportedly issued an ultimatum to the CEO to back down by the end of business day on Friday or else.

In a statement late Thursday, Amodei wrote, “I believe deeply in the existential importance of using AI to defend the United States and other democracies, and to defeat our autocratic adversaries. Anthropic has therefore worked proactively to deploy our models to the Department of War and the intelligence community.”

He added that the company has “never raised objections to particular military operations nor attempted to limit use of our technology in an ad hoc manner” but that in a “narrow set of cases, we believe AI can undermine, rather than defend, democratic values” — going on to specifically mention mass domestic surveillance and fully autonomous weapons. (Amodei mentioned that “partial autonomous weapons … are vital to the defense of democracy” and that fully autonomous weapons may eventually “prove critical for our national defense,” but that “today, frontier AI systems are simply not reliable enough to power fully autonomous weapons.” He did not rule out Anthropic acquiescing to the military’s use of fully autonomous weapons in the future but mentioned that they were not ready now.)

The Pentagon had already reportedly asked major defense contractors to assess their dependence on Anthropic’s Claude, which could be seen as the first step to designating the company a “supply chain risk” – a public threat that the Pentagon had made recently (and a classification usually reserved for threats to national security). The Pentagon was also reportedly considering invoking the Defense Production Act to make Anthropic comply.

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Amodei wrote in his statement that the Pentagon’s “threats do not change our position: we cannot in good conscience accede to their request.” He also wrote that “should the Department choose to offboard Anthropic, we will work to enable a smooth transition to another provider, avoiding any disruption to ongoing military planning, operations, or other critical missions. Our models will be available on the expansive terms we have proposed for as long as required.”

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