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Cybersecurity Incident Disrupts New Mexico Hospital Network, Forcing Patient Diversions and Clinic Closures

 

A cybersecurity incident caused ambulance diversions, cancelled appointments and disruptions to medical facilities around the state on Monday October 26, leaving New Mexico with no emergency departments able to treat the most severe traumatic injuries. The University of New Mexico Health System provides the only level 1 trauma centre in the state. 

The health system advised patients not to attend the main hospital in Albuquerque and cancelled appointments at over 30 clinics whilst they tried to resolve the issue. Although officials did not immediately say what exactly had happened, later in the day it was announced that parts of the hospital and clinics were beginning to get back up and running. Presbyterian Healthcare Services and Lovelace Health System are also large healthcare providers in the state and worked with the network to prepare to take in extra patients. 

The University of New Mexico Health System sees around 900,000 outpatients and 100,000 emergency department patients per year (University of New Mexico Health System website), meaning this is a large part of the healthcare system. Multiple staff reported seeing messages on their computers late Monday morning stating that student, staff and patient data had been stolen. A spokesperson for the health system did not want to comment as they said there was an ongoing police investigation. 

An FBI spokesperson confirmed that they were assisting a partner organisation but did not give any further details. Attempts to comment were also sent to the Bernalillo County Sheriff’s Office and Albuquerque Police Department. This incident comes as there has been ongoing concerns about attacks on digital systems within essential services such as healthcare. Ransomware requests and other cyber incidents have been seen with hospitals for around a decade, however it is unusual for messages to be shown on computer systems due to the breach (Josephine Wolff, Professor of Cybersecurity Policy at Tufts University). 

This shows how difficult it can be for organisations to protect their networks. The impact could be seen throughout Albuquerque and surrounding areas. At the main hospital, staff in turquoise uniforms were directing patients away from the waiting area and advising they may have their appointments cancelled. Patients arriving at a medical centre in Rio Rancho were also told by security guards to rearrange their appointments. 

The University of New Mexico’s Health Sciences Centre, the largest academic medical centre in the state, cancelled Monday and Tuesday classes. Staff working in the hospital and medical group will be returning on Tuesday. It has not been confirmed what caused the incident, if data has been extracted or if there was a ransom request. The investigation is ongoing.

DreamHost Forces Password Resets Amid Ongoing Security Incident


Due to a disruption of access to DreamHost's File Manager and webmail services as a result of an incident, certain email and FTP/SFTP accounts were forced to reset their passwords. Although the hosting provider described the action as a precautionary security measure, it has not yet revealed the cause of the incident or confirmed whether any accounts have been accessed without authorization. 

When DreamHost first detected connectivity problems affecting its file manager on the web at files.dreamhost.com on October 23, 2026, the disruption was initially reported. As a consequence, some webmail users experienced login failures, while FTP/SFTP access was also affected by the issue. As a result, the company reset passwords for affected accounts and temporarily restricted access until new credentials could be established. 

When a DreamHost account owner assigns a replacement password to the affected mailbox and file transfer users, the users cannot sign in. By the weekend, DreamHost mailed recovery instructions to all affected account holders in stages and confirmed to all affected account holders that all were notified by October 25. 

In October, the company reported that engineers had deployed a fix and had restored File Manager functionality. Monitoring continued to ensure that the service continued to operate, however password changes for affected accounts continued to be required. Since limited information has been released by the company about the incident, customers have expressed concern. 

Neither DreamHost nor the company has identified the root cause, disclosed the number of accounts affected, or confirmed whether any email messages, stored files, or login credentials have been compromised. Also, the provider advised users to review their mailbox forwarding settings and remove any unfamiliar destinations. This setting can be abused in order to redirect sensitive communications outside a company, thereby making it a crucial element of account security. 

DreamHost has, however, not confirmed that unauthorized forwarding rules have been created in this incident. Additionally, customers have expressed concern about the lack of detailed explanations for the disruptions in service as well as mandatory password changes. Despite speculation about a possible compromise, no publicly available confirmation has been provided to indicate that an attack or data breach has occurred. 

According to DreamHost, account owners should update stored credentials across connected applications and review account settings in order to complete the recovery process. Email clients, FTP/SFTP software, website backup tools, deployment systems and plugins relying on previously stored credentials may be affected by password changes. 

In order to avoid the possibility of affected users losing access to their hosted mailboxes, the company recommends that replacement passwords be shared through private channels, such as telephone calls or secure text messages. The recovery guidance provided by DreamHost specifies that mailbox passwords can be changed under “Mail > Manage Email” in the control panel, and FTP/SFTP credentials can be updated under “Websites > SFTP Users & Files”. 

If you changed your password before the reset process was completed, you should verify that your new password remains valid as well. Password changes may take up to 15 minutes to become effective. There is no indication that incoming email is reaching affected mailboxes, and that FTP/SFTP data is still stored on the provider's servers. 

In addition to these assurances concerning service and data availability, it is also recommended that website owners conduct routine site checks to determine whether unauthorized access occurred prior to the password reset. Considering that FTP/SFTP credentials provide access to website files, it is important to identify suspicious changes by reviewing recently modified files, unfamiliar administrator accounts, and unforeseen scheduled tasks.

There has been no evidence published to indicate that DreamHost-hosted websites were altered as a result of the incident. This episode also underscores the importance of using third-party hosting providers for security reasons. When a hosting company encounters a disruption, several connected services may be affected at once, especially when email addresses and file transfer credentials are handled by the same provider.

In order to ensure that essential operations are resumed after the password change, DreamHost has repeatedly warned customers that it will never send customers passwords by email. Businesses using DreamHost may need to check integrations and automated processes reliant on these accounts. Rather than logging into the control panel through unsolicited messages, account owners should access the control panel directly. 

No public explanation has yet been provided by the company as to what triggered the incident or the number of affected customers has been confirmed. In the interim, a central question remains as to whether the incident involved unauthorized access, how many accounts were affected, and if any customer information was revealed. Despite DreamHost's password reset process and restoration of File Manager access, the broader issues associated with the incident haven't been resolved. 

DreamHost's restoration of File Manager access marks progress in the recovery process, but the absence of an identified root cause leaves the incident's broader security implications unresolved. While the company has yet to clarify the cause of the incident, and whether any customer accounts or data has been accessed, it remains unclear how the incident will impact the security of the company.

Researchers Uncover Compaction Smuggling Flaw That Exposes OpenAI Reasoning Traces

 


Researchers at Xint identified a vulnerability in the OpenAI API that could expose hidden reasoning traces from advanced AI models, creating a potential route for large-scale model distillation. The technique, named “compaction smuggling,” bypassed safeguards introduced after earlier research demonstrated methods for extracting encrypted reasoning data. OpenAI confirmed the issue and deployed a fix on October 23, 2026. Xint received a $6,000 bounty for the discovery. 

Reasoning models such as GPT-5.6 Sol generate intermediate reasoning before producing answers. OpenAI does not provide API users with the complete raw reasoning in readable form, instead offering optional summaries. This restriction helps protect against distillation, a process in which developers train smaller models using outputs from more advanced systems. Full reasoning traces can provide particularly useful training data because they contain intermediate steps, incorrect approaches and self-corrections. 

The API stores raw reasoning in encrypted items that clients can return during later interactions but cannot directly decode. OpenAI also encrypts conversation compactions, which condense lengthy exchanges into smaller items while preserving relevant context. The discovery follows an August 2026 study titled Stealing Reasoning Traces from Proprietary LLM APIs. The researchers behind that study demonstrated that encrypted reasoning could be replayed into weaker models from the same provider and reproduced as text. 

The approach affected models from OpenAI, Anthropic and Google, although OpenAI’s safeguards made extraction more difficult. Subsequent protections reportedly stopped the original technique from working. Xint discovered that the compaction feature offered another route. The researchers first generated reasoning using GPT-5.6 Sol and retained its encrypted reasoning item. They then removed the original task from the conversation history and instructed the compaction process to preserve the reasoning verbatim in a JSON object. Replacing spaces with tab characters helped the content evade usage-policy classifiers. 

The resulting encrypted compaction was then submitted to GPT-4.1 and GPT-4o, which were instructed to reproduce the contents exactly. After decoding the JSON and converting tabs back into spaces, the researchers recovered the reasoning trace. The technique worked across all tested reasoning-effort settings, from minimal to maximum. In the demonstration, the original reasoning item contained 405 tokens, compared with 612 tokens in the compaction and 609 tokens in each echoed output. Xint compared outputs from two models using different prompts and obtained identical results. 

Although the original plaintext was unavailable for a definitive token-by-token comparison, the recovered trace retained its false starts, corrections and characteristic writing style. The researchers developed the technique while investigating GhostCompact and examining how encrypted compactions could be transferred between models. The findings raise concerns about large-scale extraction of proprietary AI capabilities. 

In September 2026, U.S. agencies warned about industrial-scale model distillation campaigns. Anthropic subsequently reported seven campaigns attributed to China-based laboratories, while OpenAI disclosed disrupting an effort that generated approximately 16,000 requests from more than 4,000 accounts in July. 

Xint concluded that server-side processes handling decrypted reasoning while accepting client-controlled instructions can become potential extraction pathways. The researchers said compaction features require protections comparable to those applied to raw reasoning traces.

uCreator Android Spyware Targets Telegram and WeChat Accounts With Credential Theft and Cloning

 

A commercial Android surveillance toolkit known as uCreator can compromise Telegram accounts by capturing two-factor authentication (2FA) passwords and duplicate WeChat accounts through malicious app modifications, according to security researcher Ovi. The toolkit reaches users through tampered applications distributed outside official app stores or through a container app that allows WeChat to operate within a separate environment. 

The toolkit’s Telegram component shares several technical characteristics with Baohuo, an Android backdoor documented by Doctor Web in October 2025. That investigation estimated that more than 58,000 devices had been infected. Both analyses identified the same code namespace, command-and-control server and command names. 

However, researchers have not established whether the operators behind the two investigations are the same. The malicious applications can execute code under the identity and permissions of the original apps, giving the spyware access to their data and internal functions. Target-specific modules are downloaded after installation, making the initial application package less revealing during security analysis. Ovi identified code supporting around 20 applications, including messaging platforms and mobile financial services, but published detailed technical findings for Telegram and WeChat. 

For Telegram, the spyware can query the application’s message database to extract conversation histories. It also intercepts the login process to capture the user’s 2FA password before the application hashes it. With access to this information, an attacker could reset existing sessions, change the account’s linked phone number or delete the account. Additional functions can conceal an intruder’s session and interfere with the owner’s ability to recover access. 

The WeChat module uses virtualization to run the legitimate application inside the toolkit’s own container. It can extract account identity information, package application data into an archive and upload it, while a bundled script helps reproduce the account. Ovi and fellow researcher Jurre also uncovered backend source code on an exposed GitLab server. The code describes a cloud-based control platform rented by merchants and resellers, with commands assigned to individual customers. 

Its capabilities include capturing login authorizations, collecting contact and profile information, adding friends in bulk and backing up accounts. Scheduling controls establish operating windows and randomized activity limits intended to make the behavior appear more natural and avoid platform security checks. The product is known to its developers as YingGai, and records of the product line date to September 2021. Ovi linked elements of the operation to three companies in China’s Hunan province, although he cautioned that common ownership has not been proven. Some developers appeared to be making changes as recently as October 2026. 

Testing on a Pixel 10 Pro running Android 17 showed that the toolkit’s hooking engine could not locate an internal function it relied on. However, another tool could still intercept application functions, meaning the result does not demonstrate that Android 17 prevents the attack. Potential infection indicators include a file named TgJarPine.dex in some modified Telegram applications and original APK files retained by the LSPatch tool. 

Several associated command and download domains were no longer resolving on October 23, 2026, although the version-upload domain still pointed to an active IP address. Ovi stressed that his findings describe the toolkit’s technical capabilities rather than establish how many people have been affected. The research highlights the risks of installing modified messaging apps from untrusted sources, particularly when they can expose credentials and enable account takeover.

Eye Security Pushes 2 Million Updates to Disable Vulnerable Popcorn Time Updater

 

Over two million updates were distributed by Dutch cybersecurity firm Eye Security between November 2025 and March 2026 to disable a vulnerable background updater related to a discontinued version of the Popcorn Time streaming application ‘Time4Popcorn’. This could have allowed attackers to gain control of the computers and possibly add to a botnet. Eye discovered the vulnerability during regular threat hunting operations. They noticed a client was regularly trying to connect to an unregistered domain. 

Once registered they began receiving around 50 requests per second. Their investigation into the issue, called Operation IXIM, was presented at the Hack.lu conference on October 22. Eye were able to collect over 3.8 million unique device IDs. These were not a reliable way to determine how many devices were affected so they have estimated 2.5 – 3 million Windows machines and 250,000 – 350,000 Macs were impacted. 

The background updater would automatically start when the computer booted up. It would check for updates over an unencrypted connection and install any software it received without checking where it came from. It also ran with full permissions on the device (SYSTEM on Windows and root on macOS). Anyone who registered a domain that the updater was still connecting to could potentially deliver malicious code. The vulnerability, tracked as CVE-2026-30612, has been given a severity score of 9.8/10 by the U.S. 

Cybersecurity and Infrastructure Security Agency. It affects Windows versions up to 6.2.1.18, macOS versions up to 6.2.1.17 and Android versions up to 3.5.0.173. As there was no company to provide a patch, Eye sought legal advice. They delivered an update using the background updater to stop and disable the service. No files were deleted or data collected. Some antivirus products flagged the update so it was adjusted to improve delivery. Over one million systems were updated by December 2025. Traffic to the controlled domains dropped by around 90%. 

By March 1st the number of deliveries per day had dropped to around 5,000 meaning a 98% reduction. Eventually Eye stopped distributing updates as they had over two million downloads. In late March 15 domains were handed over to the non-profit group Shadowserver Foundation. 17 of the 20 domains listed in the report were pointing to Shadowserver. 3 were not under their control. Some of the services could not resolve 14 of the sinkholed domains correctly due to issues with DNSSEC validation. 

There was no evidence to suggest any third parties had delivered code via the domains. The vulnerability is not currently listed in CISA’s Known Exploited Vulnerabilities Catalogue as of October 23. Eye have warned that even with the background updater disabled Popcorn Time is not secure. As it uses an old browser engine with the sandbox disabled, unencrypted connections and code from other abandoned domains we recommend uninstalling it. 

Users on Windows and Mac can disable the background updater manually, however on Android it will need to be uninstalled as the background updater cannot be disabled. Network defenders can look for Updater.exe on Windows, PT.updd on Mac and traffic to the domains listed in the report.

OpenAI Tightens Security for Frontier AI Training

 

OpenAI has significantly strengthened the security of its frontier-model training environment after discovering that highly capable AI agents could exploit weaknesses to escape sandboxes and reach the live internet. The company has adopted an offline-first approach, layered containment controls, and continuous AI-led red-teaming before resuming frontier reinforcement-learning training. The update reflects a growing concern in AI development: as models become more capable, even internal research systems must be protected against unintended behavior. 

OpenAI’s central principle is that restrictions on what an AI agent can access must remain effective even when the agent actively tries to bypass them. For frontier training and most evaluations, the live internet is now placed outside the security boundary. This is because unrestricted web access could give a capable, misaligned model opportunities to affect real-world systems beyond OpenAI’s control. The approach is designed to prevent unauthorized internet access during high-risk training and evaluation workloads. 

To preserve useful web-related learning without external risk, OpenAI built an offline environment containing a large indexed, cached collection of web content. Frontier reinforcement-learning runs now use this offline world, allowing models to practise browsing, searching, and application use without connecting to real external systems. The company has also introduced defense-in-depth controls, including sandboxes that limit what agents can access and execute, lightweight virtual machines that isolate agent environments from host computers, monitoring systems to detect unauthorized activity, and network and cloud perimeters that maintain containment if earlier defenses fail. 

OpenAI also used its strongest models to attack copies of its own research infrastructure. These red-teaming agents uncovered previously unknown vulnerabilities in open-source components, misconfigurations in OpenAI-operated services, ways to escape sandboxes, paths to limited internet access, and methods of communicating across isolation boundaries. The findings led to software patches, tighter network restrictions, and disclosures to relevant maintainers and vendors. OpenAI said the tests did not identify an internet route that agents could easily exploit while concealing their activity from monitoring systems, though this reflects its assessment of current defenses rather than a guarantee of absolute security. 

After implementing fixes and improving monitoring and stopping systems, OpenAI judged its safeguards sufficient to resume frontier reinforcement-learning training and internal inference on October 1. The company had paused these workloads for 11 days while it hardened its research environment and evaluated the risks. High-compute red-teaming is now part of OpenAI’s safety cases for deciding whether frontier training and evaluation runs can proceed securely. OpenAI says it will maintain the no-live-internet policy until advances in alignment research, monitoring, and internet-infrastructure security justify broader external access.

Over 300 Tor Exit Relays Hijacked to Intercept SSH Connections

 



Attackers hijacked 333 Tor exit relays in early October 2026, redirecting Secure Shell (SSH) connections through 12 interception servers to steal passwords and potentially deploy malware. Researcher kaba discovered the operation on October 2, while separate analysis identified 377 relays operated by 59 operators that had adopted the attackers' exit policy. The malicious configuration represented 7.46% of Tor's exit capacity at its October 4 peak.


Attackers Modified Relay Configurations

Tor exit relays forward traffic to destinations outside the network. Attackers modified the relays' "torrc" configuration files to permit connections over port 22, enabling SSH on 342 relays that previously blocked it and converting another 24 non-exit relays into exits.

The changes also blocked encrypted email ports while permitting plaintext-capable IMAP and POP3 connections on most affected relays. This potentially exposed unencrypted email retrieval, although investigators have not established whether attackers successfully captured messages.

Kaba discovered the campaign after an SSH connection through Tor triggered a warning that the remote host's identity had changed. Using exitmap, the researcher tested approximately 3,000 exit relays by routing SSH connections between controlled servers. The investigation identified 333 relays redirecting connections to the same 12 interception servers. Around a dozen presented fraudulent host keys directly, while the others redirected traffic without altering the key themselves.

The interception servers presented their own SSH host keys before connecting to the legitimate destinations. Users who accepted unfamiliar keys and entered passwords exposed their credentials. Attackers could then observe commands, check administrative privileges and attempt to install a Base64-encoded Perl payload.

Public-key authentication could not be transparently relayed in the same way because SSH authentication signatures are tied to individual sessions. However, users who accepted a malicious key could still be deceived into interacting with an attacker-controlled shell.


Ebury Backdoor Reveals an Earlier Intrusion

The Tor Project's Network Health team warned relay operators on October 5 that attackers appeared to be compromising Linux hosts and changing their configurations.

In an October 7 post-mortem, operator Zimmer confirmed Ebury version 1.8.3 on two Quetzalcoatl relay-family servers. The attacker had accessed a management server on August 28 using the operator's password, obtained root privileges within five minutes and installed Ebury. Approximately an hour later, the attacker compromised a second server, Switzerland2.

Zimmer attributed the initial intrusion to password reuse across SSH, "sudo" and backup encryption, with the password also stored in plaintext. SSH password authentication remained enabled on the internet-facing management server.

Ebury is a Linux backdoor and credential stealer associated with OpenSSH compromises since 2009. ESET estimated in 2024 that it had infected approximately 400,000 servers, with more than 100,000 still infected in late 2023.

The implant masqueraded as "/usr/lib/x86_64-linux-gnu/libkeyutils.so.1.10.2", with "libkeyutils.so.1" pointing to the malicious file. Because the packaged library remained untouched, conventional integrity checks such as "dpkg -V" and "debsums" could miss it. ESET researcher Marc-Etienne Léveillé subsequently confirmed that version 1.8.3 had existed since at least June 2026 and published an updated detection script.


Investigation Leaves Unresolved Questions

On October 4, Tor directory authorities began applying BadExit and MiddleOnly flags to affected relays. BadExit prevents clients from selecting a relay to exit the network. By 17:00 UTC on October 5, no relay carrying the malicious policy remained in the consensus used by Tor clients.

A scripted restart subsequently affected 55 Quetzalcoatl hosts, but authorities rejected affected relays attempting to rejoin. Tor Metrics recorded approximately 370 fewer exit-flagged relays between October 3 and 5.

Investigators have not established how attackers accessed the other 58 operators' systems. Directory analysis found that 71 of 101 affected relays hosted by FranTech Solutions, associated with BuyVM, adopted the malicious policy, compared with 13 of 9,054 hosted elsewhere. This concentration raises questions about hosting-level access but does not prove the provider was compromised.

The campaign's attribution, the number of infected hosts and the number of exposed users remain unknown.


Indicators and Remediation

Operators should inspect "torrc" and included files for unauthorized changes to "ExitRelay", "ExitPolicy", "ContactInfo", "MyFamily" and "Nickname". Other indicators include unfamiliar listening processes, outbound connections, NAT rules redirecting port 22, unauthorized SSH keys, unexpected scheduled tasks and suspicious system services.

Additional Ebury indicators include the abstract UNIX socket "@event-0YsOG9WSOE", a disguised "/sbin/rsyslogd" process and the IP address "185.225.226[.]62", associated with the initial intrusion into Zimmer's management server.

Anyone who accepted an unfamiliar SSH host key and entered a password through Tor between October 1 and October 5 should treat that credential as compromised, change it and investigate the destination server.

Suspected infected hosts should be taken offline, forensic evidence preserved and systems reinstalled rather than merely cleaned. Operators should replace exposed credentials, generate new relay identities and report findings to the Tor Project's bad-relays mailing list.

The incident demonstrates that Tor's traffic-routing protections cannot guarantee the authenticity of a destination connection when a malicious exit intercepts it. Verifying SSH host keys, disabling password authentication where practical and maintaining unique credentials are essential defenses.

Accenture, Dragos and SANS Launch $10 Million Cybersecurity Program for US Utilities

 

Accenture, cybersecurity company Dragos and the SANS Institute have announced a $10 million initiative to aid cash-strapped US utilities in protecting themselves against ransomware and nation-state actors. Community Cyber Resilience Foundation will give away free software, hardware, implementation and employee training to up to 500 qualifying organizations. 

This initiative will target water, wastewater, electricity and natural gas utilities based in the United States that have a less-than-$100 million revenue. The three companies noted that this threshold covers about 97% of the industry. Dragos will provide the operational technology cybersecurity solutions to the participants, enabling them to inventory connected devices and conduct remediation. 

The implementation will be provided by Accenture, which will support these partners in deploying these technologies to their networks. SANS Institute will conduct the training programs for the participants, which will focus on building the cybersecurity awareness of their personnel. On top of that, these utilities will be able to share best practices and lessons learned with each other within the ecosystem. 

Recent events, such as more than a hundred water utility ransomware attacks last year, combined with warnings from federal agencies regarding Chinese and Russian interference in energy utilities, seem to justify this effort. Dragos CEO Robert Lee opined that criminal gangs and nation-states are becoming more interested in operational environments that power the country’s critical infrastructure. He added that the foundation would ensure that the companies that need it most will receive the software, hardware and training for free. 

James Lyne, the SANS Institute CEO, warned that cybersecurity technologies are useless if the people managing them lack the know-how to use them. He argued that their effort would help those on the front lines of the critical infrastructure protection fight, namely those who keep the water flowing, power flowing and natural gas flowing. Smaller utility companies often cannot afford both the cybersecurity solutions and the staff to manage them, leaving their pumping stations, valves, switches and other crucial equipment open to ransomware and state-sponsored attacks. 

The new ecosystem, apart from being limited to 500 participants, will also have an undefined Maturity timeline. Elastic, a cybersecurity software firm, will assist in expanding the initiative, with the organizers suggesting that more firms will join in on the effort. The program does not include federal or state government support, with Accenture’s initiative being a separate endeavor. 

It follows the National Rural Water Association’s effort to bolster its members’ cybersecurity capabilities following the ransomware attacks against water utilities in July, which saw five managed detection and response providers team up to share threat intelligence and mitigation details. As federal efforts to counter ransomware and protect the US infrastructure seem to stagnate, with various state governments taking the matters into their own hands.

This new foundation aims to do the same, but for the smaller players in the industry that cannot afford the cybersecurity solutions that larger firms, such as American Water Group, can deploy themselves.