SEC536: Adversarial AI - Penetration Testing AI Systems


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Contact UsThreat actors launched cyberattacks against operational technology (OT) systems at more than 30 municipal water systems in the US state of Minnesota. According to Minnesota IT Services (MNIT), the attacks took place on Sunday and Monday, July 26 and 27, and the affected utilities were forced to revert to manual processes. Upon learning of the cyberattacks, MNIT activated Minnesota's cybersecurity incident response capabilities, and is coordinating technical response activities across government partners; sharing threat intelligence and indicators of compromise with affected organizations; supporting incident investigation, containment, recovery, and remediation efforts; monitoring for related malicious cyber activity and coordinate with state and federal cybersecurity partners; and providing cybersecurity expertise and technical assistance to affected communities. MNIT is working with federal, state, local, Tribal, and private-sector partners to investigate the attack. Days before the attacks, the US Cybersecurity and Infrastructure Security Agency (CISA) published an updated version of an April 7, 2026 advisory regarding state-sponsored cyber threat actors targeting operation technology (OT) devices used in US critical infrastructure, including programmable logic controllers. Additionally, on July 28, 2026, CISA, along with Australia’s Signals Directorate (ASD), the UK’s National Cyber Security Centre (NCSC), and Canada’s Centre for Cyber Security, published *CI Fortify – Advice for isolating vital systems*, which "explains how organisations can isolate critical operational technology (OT) and supporting systems from other networks during cyber incidents or periods of increased cyber threat ... and provides practical guidance and strategic advice for OT owners, operators, and cyber security teams."

The main takeaway is that no Programmable Logic Controller (PLC) should ever be reachable from the public Internet. I just did a quick look at Shodan and can see thousands of open PLCs around the world, with the largest concentration in the United States. Many of them are exposed via a cellular router that has no firewall or a mis-configured firewall. Asset owners/operators should use tools like Shodan or Censys to locate open PLCs within their footprint, then work with your vendors and service providers to protect these devices from unauthorized access.
Rather than getting bogged down in threat actor attribution, the focus belongs on the actual defense posture of municipal water and wastewater systems. Every single external connection to these environments must be hardened — ideally grounded in an established framework like the CIS Critical Security Controls. Securing critical infrastructure against known risks goes beyond best practice; it's the fundamental duty of care.

Rather than focusing on the incident, I want to highlight the work by MNIT to work across organizations and agencies to recover, detect and improve. Partnerships, which include sharing of information, best practices, and lessons learned are key survival traits in the modern cyber threat environment. If you’re in the critical infrastructure space and you’re not tied into your state (and fed) organizations, get on it. Bet you they are doing more than you think and are looking for more partnerships and participation.

Being able to revert to manual processes during a cyberattack is often overlooked when organisations plan for cyber resilience. Resilience does not always require a technological solution. NIS2 rightly places resilience alongside cybersecurity, and organisations should ensure that documented and regularly exercised manual procedures can sustain business-critical operations while systems are isolated, investigated, and restored.
SecurityWeek
Help Net Security
Gov Infosecurity
MNIT
CISA
ASD
Researchers at Lava Security are warning that nearly 25,000 publicly exposed Baseboard Management Controllers (BMCs) leak password hashes due to a flaw that has existed since 2004 in the Intelligence Platform Management Interface (IPMI) 2.0 protocol. A BMC is typically a separate ARM processor built into the motherboard of a device such as a server, allowing administrators to remotely access and manage device health and functions even if the operating system is not working. CVE-2013-4786, CVSS score 7.5, allows a remote attacker with access to UDP port 623 to test password guesses offline, because the RMCP+ Authenticated Key-Exchange Protocol (RAKP) in IPMI 2.0 can cause the BMC to return an HMAC-SHA1 authentication code before authentication is complete. Lava explains that "weak, reused, factory-set, or predictably formatted passwords may therefore be recovered without generating the usual pattern of repeated failed logins," exposing BMCs' pivotal position outside the operating system, outside security tools' reach, and connected to management networks. During Lava's testing, more than 25% of internet-exposed IPMI hosts that returned an RAKP response before authentication also accepted an empty username with a weak password. More than 50% of BMCs in Lava's dataset were Supermicro hardware, whose unique alphabetic factory passwords could still be brute forced within hours by modern GPUs. Yakir Kadkoda, Lava's co-founder and CTO, stated to Dark Reading that Lava also found evidence that an unnamed major automotive component manufacturer had been targeted with ransomware following compromise via internet-exposed BMCs. The researchers urge administrators to cut off BMC and IPMI from the public internet and additionally block UDP port 623 at the network edge; rotate factory passwords; disable legacy and weak configurations; strictly control BMC access via private network, VPN, or bastion host; implement network access controls; and prioritize monitoring of the management network.

Often when we are on an engagement, we will scan for this type of vulnerability, and it keeps cropping up. Unsure why that is exactly, but if you are in a data center (or even a regular environment) we all see IPMI 2.0. If you can, run some scans in your environment to look for this vulnerability. Metasploit has modules for it; that would be more than ideal.

Don’t expose your BMC to the Internet. Or other management interfaces. Moreover, limit the access that authorized devices on the network are exposed to. If you’re not sure what a BMC can do, have your team show you. Then you’ll see why restricting any access as well as keeping them updated is critical.

We find IPMI vulnerabilities of various kinds ALL the time in our penetration tests, and it’s an issue widely known for decades. I remember Dan Farmer’s incredible research on this, released way back in 2013. It’s time to fix these IPMI issues across the board and to stop ignoring those problems. And for our penetration testing friends out there, please emphasize the importance of fixing these issues when you discover them in your work.

One fun fact that is often overlooked for IPMI and BMC: It works even if the server is turned off (by design… after all, you want it to be able to turn on the server). Just having power and network connected is sufficient.
Dark Reading
Help Net Security
Bleeping Computer
NIST
Cisco has published a security advisory urging users to update Cisco Secure Firewall Management Center (FMC) software to fix a static credential vulnerability that is under active exploitation. CVE-2026-20316 allows an unauthenticated remote attacker to access data available to a low-privileged user by logging in with a hardcoded credential; the flaw carries a base CVSS score of 5.3, but Cisco assesses it as high impact because it could be chained with other FMC flaws to achieve privilege elevation. FMC versions 7.0, 7.2, 7.4, 7.6, 7.7, and 10.0, regardless of device configuration, contain the static credential and must be patched. No details of the exploitation have been made public at the time of this writing, but the US Cybersecurity and Infrastructure Security Agency added the flaw to its Known Exploited Vulnerabilities catalog (CISA KEV) on July 29, with a remediation deadline of August 1. Cisco's advisory includes a command-line check for indicators of compromise (IoCs), and recommends that users rotate all credentials, keys, and certificates.

Hello Cisco, the 1980s called and would like to have its hardcoded credentials vulnerability back. It is frustrating that vulnerabilities like this are still being found in security products, particularly given the privileged access they often provide to attackers. Hopefully, regulations such as the EU Cyber Resilience Act (CRA), with their emphasis on secure-by-design principles and secure software development practices, will finally help consign this class of vulnerability to history.

You all know me, I’m torn between A) Lighting my team up to make sure FMC is fully updated and running in best practices configuration, and B) Grabbing Cisco and asking, why, in 2026, would you not detect hard coded credentials early in the QC process? Yeah, go with lighting up your team, that’s the better place for your efforts than tilting at the Cisco windmill.

Has anybody ever enumerated how many backdoors Cisco has removed from its equipment over the years? Luckily, the credentials are only for a low privilege account.

I’d like to hear from Cisco how a hardcoded credential could evade their QA/code testing procedures for so long.
Hardcoded vendor credentials continue to plague enterprise security. However, the real threat multiplier here is the possible use of AI tools to rapidly automate exploit development against lower-severity vulnerabilities (CVSS 5.3). The aggressive mitigation timeline set in the KEV catalog reflects the reality of today's weaponization speed.

Controls intended for the exclusive use of managers, should not be exposed to the public networks. The convenience will rarely justify the risk.
Researcher Håkon Måløy has published a blog post detailing his discovery that Microsoft Copilot is vulnerable to a prompt injection attack that results in a worm propagating through Word documents. Måløy summarizes the flaw: "Malicious instructions hidden in an externally shared document could make Copilot alter drafted or edited documents in Word and propagate the attack to new documents." A JSON-formatted malicious prompt hidden from the user as white text in a small font will still be read by Copilot when the document containing it is uploaded to Copilot for Word or discovered by Copilot in the user's OneDrive and ingested as context. The prompts frame executing the malicious instructions and copying them into a new document as relevant to a benign user task, leading to infected documents that carry trust as internally created files. Måløy disclosed this exploit to Microsoft in March 2026, and while the company successfully patched Copilot against the original prompts, the broader class of attack is still viable with adjusted prompts; after 144 days of coordination, Måløy and Microsoft agreed to a public disclosure. Måløy believes that resolving this issue "requires research rather than a single patch." He notes that "the integrity of information becomes a primary security concern in systems that integrate LLMs as part of their operating workflows," and he concludes the report by contending that cross-domain prompt injection attacks (XPIA) are difficult to mitigate because of the fundamental design of current LLMs: "The long-term challenge likely lies in designing systems in which goals and intentions also exist independently of the information being processed [...] Any system that integrates an LLM into a trusted workflow today must assume that attacker-controlled content entering the model’s context will result in compromise at some rate."

So, when was the last time you reviewed your document sharing? Particularly external shares. Are you still working with those partners? Yeah, it’s a bugger to do this — investigate time bound sharing. Heck, how about a default max after which shares need to be renewed? Yes, you also need to scan for IoCs, but beware of how these trust relationships can be conscripted to nefarious ends.

It doesn't seem that long ago when the industry was focused on Zero Trust, ensuring systems never implicitly trusted users or devices. AI now presents a similar challenge where many of today's models seem unable to reliably distinguish between trusted instructions and malicious content embedded in the information they process. Organisations deploying AI into business workflows should assume prompt injection will remain a persistent risk and implement appropriate governance, monitoring, and human oversight, rather than relying solely on technical controls.

LLMs do parse their inputs, but they do not validate them. While so-called guardrails may reject some inputs, these are post hoc attempts to add security on. Prompts can be so long and complicated as to defy any human attempts to validate them.
En Klype Salt
The Register
The Hacker News
An updated version of the Model Context Protocol (MCP) was published on July 28, 2026, including security hardening and architectural changes primarily to serve the scale of enterprise use. The MCP is an open-source protocol that standardizes communication between LLMs and external tools and sources of data, initially created by Anthropic engineers in 2024 and then given to the Linux Foundation (LF) in December 2025 to be maintained under the Agentic AI Foundation (AAIF). Caitie McCaffrey at the LF states in a blog post that "this release removes the core scaling bottlenecks, finalizes the project's transition to a stateless architecture, and establishes the formal governance and security hardening required for enterprise-scale deployments." The change to stateless architecture should allow organizations to treat MCP servers like scalable HTTP services, and to run them behind standard load balancers using their existing tools. Governance changes include a formal policy and timeline for deprecating features and a new framework for extensions. The updated MCP also aligns with "how OAuth 2.0 and OpenID Connect are deployed in practice," including mandatory validation of the iss parameter to help prevent OAuth mixup attacks, and allows for central management of authorization. This is the first major update to the MCP since it was transferred to the AAIF.

Stateless architectures can be made secure, but often what we see is that when it's truly stateless, some security flaws can still exist. A combination of stateless with simple checking would solve that problem. My hope is that an MCP 2.0 specification will be ratified that will provide an opinionated security guardrail by default.

This feels a lot like they just added a supercharger to my old muscle car. It was cool before, but watch this…. What that means is you need to recheck your supporting governance and investigative processes and infrastructure to make sure you’re ready to scale up. Read the analysis of the OpenAI / Hugging-Face incident (it’s only 18 pages and a quick read) if you have any questions of where you want to be.
Exciting updates to the Model Context Protocol (MCP) specification! The new integrations with OAuth and OpenID will significantly streamline the deployment and administration of MCP servers. A big thank you to the Linux Foundation and the community driving this protocol standard forward.

Federated identification and authentication sacrifices security for convenience.
Agentic AI Foundation
MCP Blog
The Register
On Monday, July 27, Apple released updates to address vulnerabilities across its product line. In all, the updates address 187 vulnerabilities: 87 flaws were fixed in iOS 26.6 and iPadOS 26.6; 155 flaws were fixed in macOS Tahoe 26.6; 138 flaws were fixed in macOS Sequoia 15.7.8; 127 flaws were fixed in macOS Sonoma 14.8.8; roughly 100 flaws were patched in each tvOS 26,6, watchOS 26.6, and visionOS 26.6; and 10 flaws were addressed in Safari 26.6. In an Internet Storm Center diary, Dr. Johannes Ullrich writes, "In June, Apple announced that it may publish occasional ‘security update only’ releases. This release does not contain any significant new functionality but is also meant as a ‘prep release’ for iOS/macOS 27, as it makes some adjustments to Spotlight to get the system ready for the new major OS releases coming in the fall."

Beware of back-ported fixes. Actually, watch for them, in this case macOS 14 & 15. Odds are that your systems running older operating systems are not easy updated due to mitigations related to their being old and unsupported, so you may have to do something extra to deploy these updates. While you’re running that to ground, make sure someone else is making sure the supported systems are updated straight away. Then drill down on how you’re going to get those on supported operating systems sooner than later. As they say, the surge of updates will continue until morale — I mean AI — gets past the old issues not discovered using prior methods.
AAPL is almost certainly using AI to find and patch software flaws faster across its product lines, and the spike in vulnerability counts shows it. Bottom line for enterprises and consumers: patching promptly upon release has to become standard operational hygiene.

I don’t know about you, but I chuckled at the title of this article: “Apple Updates Everything, July 2026 Edition.” Welcome to the AI-Induced Vulnerability Storm, my friends.
On Wednesday, July 29, Broadcom released updates to address five vulnerabilities that affect VMware ESX, VMware vCenter, VMware Workstation, VMware Fusion, VMware Cloud Foundation, VMware vSphere Foundation, VMware Telco Cloud Platform, and VMware Telco Cloud Infrastructure. CVE-2026-59309 is a critical authentication bypass vulnerability in vCenter VMware Directory Service. CVE-2026-59310 is a critical directory traversal vulnerability in vCenter Syslog server. CVE-2026-47876 is a critical out-of-bounds write vulnerability in VMware ESX VMXNET3 virtual network adapter. CVE-2026-41703 is an out-of-bounds read vulnerability in VMware ESX, Workstation, and Fusion, which is rated important for ESX and low severity for Workstation and Fusion. CVE-2026-41709 is a low severity insufficient logging vulnerability in VMware ESX. In addition to the security advisory, Broadcom has published a "Questions and Answers" document for the vulnerabilities, which supplements the advisory with “self-service information to help you and your organization decide how to respond."

I was feeling all happy about the state of my vCenter environment until I almost missed the update for Workstation and Fusion. With so much happening in virtual environments, and since AI is getting darn good at finding flaws to escape their captivity, you want to be sure to cover all your virtual environments, not just VMware and not just in the data center. Make sure that your inventory includes all of them and that you’re tracking them.

The Broadcom saga will continue here for a while, I imagine. If you are paying for VMware and have an active license on a supported release, you should be regularly patching this architecture. The architecture should be treated as Tier0, but quite often it’s not. The saga component would be the ability for customers to obtain the patches themselves, which I’m hearing still poses a challenge for some enterprises.
BleepingComputer
SecurityWeek
The Hacker News
Broadcom
GitHub
On Wednesday, July 29, 2026, the US Cybersecurity and Infrastructure Security Agency (CISA) — along with other cyber authorities in the US, Australia, Canada, Czechia, France, Germany, India, Italy, Japan, South Korea, the Netherlands, New Zealand, Poland, and Slovakia — published updated guidance on creating a software bill of materials (SBOM). The *2026 Minimum Elements for a Software Bill of Materials (SBOM)* "reflect[s] current SBOM needs, while preserving the core principles of the document published in 2021 by the National Telecommunications and Information Administration (NTIA)." A draft version of the updated guidance was published in August 2025, and the version published this week incorporates responses received following a request for comment on that draft. On Thursday, July 30, CISA published open source software guidance for federal agencies. *Open Source Software: Security Principles and Practices* includes recommendations "on the use of security assessments and patching of open source software (OSS) and best practices for contributing to OSS projects. These recommendations are rooted in software development and software supply chain risk management best practices and are tailored to address the benefits and risks unique to OSS."

OK, you and I both know SBOMs are new enough to expect updates and improvements in the standard. Question is, are you incorporating them in your current processes or generating them with software releases? You need to figure out how to do these things rather than ignoring them. Set your younger energetic staff on this and have them report on not only how to embrace and integrate SBOMs, but to also show how they’ll benefit the business. You’ll be surprised what you learn.

The update seems to have addressed the major issues, but there still needs to be a forcing function to require compliant SBOMs for, in this case, open-source software, and in general, all software. It would be good to see the European cybersecurity regulatory bodies do so, after some reference implementations and testing.

Organisations that develop or sell products with digital elements into the European Union should pay close attention to this guidance. While produced by CISA and its international partners, the recommendations closely align with the software supply chain and vulnerability management expectations of the EU Cyber Resilience Act.

Good process. Software development and use do not respect borders. The SBOM enforcement mechanism is the resistance of developers to adopt code that does not have an SBOM.
Help Net Security
SecurityWeek
CISA
CyberScoop
CISA
The Health Information Sharing and Analysis Center (Health-ISAC) has published an advisory noting that organizations within the healthcare sector are experiencing "an observed increase in successful attacks by the threat actor, ShinyHunters." The threat actor appears to follow a predictable path: using voice social engineering at the helpdesk to request assistance with an MFA reset or device re-enrollment, followed by taking control of a Microsoft Entra or Okta/Google single-sign-on (SSO) account. From there, the threat actor pivots into connected software-as-a-service (SaaS) platforms and exfiltrates data. The Health-ISAC advisory lists recommended mitigations for healthcare organizations to help protect their networks from ShinyHunters attacks at each step of the threat actor group's modus operandi. The document also provides a 30-60 day shortlist of steps to take first, which includes implementing phishing-resistant MFA for admins, helpdesk, and executives; restricting weak MFA fallbacks; implementing helpdesk reset hardening; establishing and implementing Entra/SSO conditional access baseline; implementing methods to detect SaaS exfiltration; and testing token/session revocation playbook in tabletop exercises.

The recommendations fall into six thrust areas and include a priority list of things to do in the first 30 days. Nothing here is earth shattering, just important and representing ways to raise the bar. These steps aren’t ShinyHunters-specific; they are raising the bar regardless of threat actor. How about this: Read the recommendations and build an implementation plan so you can answer the inevitable, "So what are we doing about it?" question from the boss or board. Have cost estimates ready, including zero dollar options you’ll be called upon to perform.

These attacks demonstrate that people remain one of the most attractive targets for cybercriminals. While technical controls such as phishing-resistant MFA are essential, organisations should also strengthen their helpdesk identity recovery verification processes and regularly test them, even to the extent of engaging a cybersecurity firm to social engineer the helpdesk. In today's business world with companies moving to SSO and cloud-based platforms, identity is increasingly becoming the new security perimeter. Having effective and secure account recovery processes in place is just as important as protecting passwords.
SANS Internet Storm Center StormCast Friday, July 31, 2026
Pre Botnet Recon; Cisco Backdoor Exploited; Inconsistent Group Chats
https://isc.sans.edu/podcastdetail/10032
Reconnaissance First: An SSH Bot That Sizes Up Your Hardware Before Deploying a Miner
Cisco Secure Firewall Management Center Software Static Credential Vulnerability Exploited CVE-2026-20316
Inconsistent Group Chats
https://www.usenix.org/conference/usenixsecurity26/presentation/gegenhuber
SANS Internet Storm Center StormCast Thursday, July 30, 2026
Apple Patches; IPMI Admin PW Hash Leak; VMWare Patches; OpenWRT Patch
https://isc.sans.edu/podcastdetail/10030
Apple Patch Summary / Postscript
https://isc.sans.edu/diary/Apple+Patches+Everything+July+2026/33196
IPMI Admin Password Hash Leak
https://www.helpnetsecurity.com/2026/07/28/exposed-bmc-ipmi-vulnerability-research/
Patches for VMWare
OpenWRT Patch, odhcpd vulnerability CVE-2026-53921
https://github.com/openwrt/odhcpd/security/advisories/GHSA-7fwx-hhrg-3496
SANS Internet Storm Center StormCast Wednesday, July 29, 2026
AutoIT Payload Injector; Apple Patches; SourTrade Malware; NGINX Exploit
https://isc.sans.edu/podcastdetail/10028
AutoIT Payload Injector
https://isc.sans.edu/diary/AutoIT+Payload+Injector/33192
Apple Security Update
https://support.apple.com/en-us/100100
SourTrade: Browser-Assembled Malware Delivered Through Malvertising
https://blog.confiant.com/p/sourtrade-browser-assembled-malware
NGINX Exploit CVE-2026-42530, CVE-2026-42533
https://github.com/DepthFirstDisclosures/Nginx-Rift/tree/main
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