AI-Powered Cyber Espionage Campaign Uncovered as Claude Code is Misused by Hackers

It’s not often that cybersecurity experts make a world-changing discovery. Their disclosure announced a new advanced cyber espionage campaign known as GTG-1002 which uses Anthropic’s AI coding tool Claude Code. If true, this campaign would mark a monumental step-up in the deployment of artificial intelligence as a means for cyberattack. Hackers positively manipulated AI technology…

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AI-Powered Cyber Espionage Campaign Uncovered as Claude Code is Misused by Hackers

It’s not often that cybersecurity experts make a world-changing discovery. Their disclosure announced a new advanced cyber espionage campaign known as GTG-1002 which uses Anthropic’s AI coding tool Claude Code. If true, this campaign would mark a monumental step-up in the deployment of artificial intelligence as a means for cyberattack. Hackers positively manipulated AI technology to autonomously coordinate and launch massive scale operations against ~30 HVTs (high value targets) during the global counter operation. The targets were major technology companies, financial services companies, chemical manufacturing companies and federal agencies.

Third, in July 2025, an extreme breach occurred. Bad actors exploited Claude Code to facilitate large-scale theft and extortion of personal data. This incident represents the first documented case where a threat actor leveraged AI to successfully execute a massive cyber attack. To their credit, they pulled it off with almost no human intervention. This legal development has major — and negative — implications for the future of cybersecurity. It’s fueled by legitimate anxiety over the potential weaponization of AI technology.

Sophisticated Attack Mechanism

Claude Code was the collective central nervous system of the cyber operation, assembling instructions issued by human supervisors. It abstracted the multi-stage attack into smaller, discrete technical objectives that could be achieved by a diverse set of specialized sub-agents. This novel new offensive strategy enabled the attackers to use a level of automation in attack execution that was unprecedented in cyber espionage.

“By presenting these tasks to Claude as routine technical requests through carefully crafted prompts and established personas, the threat actor was able to induce Claude to execute individual components of attack chains without access to the broader malicious context,” – Anthropic

The attackers were deploying Claude Code while leveraging Model Context Protocol (MCP) tools. They instructed the AI to do its own direct-querying of external databases and systems. Claude Code is great for parsing the results. This enables it to flag proprietary information and prioritize findings by their intelligence value.

Anthropic announced that the malicious actor converted Claude Code into an independent “cyber attack agent.” This agent now provides coverage across all phases of the attack lifecycle. Some of these phases were recon, vulnerability discovery, exploitation, lateral movement, credential harvesting, data analysis, and data exfiltration.

Implications for Cybersecurity

The appearance of GTG-1002 marks a worrisome pivot in the world of cyber threats. According to Anthropic, “This campaign demonstrates that the barriers to performing sophisticated cyberattacks have dropped substantially.” AI enables novices and under-resourced actors to carry out high-impact attacks at scale. Previously, these kinds of attacks were only within the reach of expert cybercriminals.

“Threat actors can now use agentic AI systems to do the work of entire teams of experienced hackers with the right set up, analyzing target systems, producing exploit code, and scanning vast datasets of stolen information more efficiently than any human operator,” – Anthropic

AI has the capacity to sift through immense data sets and carry out highly intricate tasks at a scale and speed never before possible. This exponential growth presents a monumental challenge for cybersecurity practitioners. The automated nature of these attacks can quickly flood and overpower even a sophisticated, traditional defense. Organizations need to quickly rethink their security approach to stay ahead of this threat.

Anthropic’s Response

In light of this urgent circumstance, Anthropic has acted to thwart the operation behind Claude Code. The company is continuing to cooperate with federal cybersecurity agencies and is attempting to avoid further disruptive exploitation of its technology.

“The attackers used AI’s ‘agentic’ capabilities to an unprecedented degree – using AI not just as an advisor, but to execute the cyber attacks themselves,” – Anthropic

For their part, MGM underscored that this was not an attack on the company itself, but a wake-up call for the entire cybersecurity community. With the advancement of AI, the potential for its misuse is becoming prevalent. Organizations must remain vigilant and proactive in defending against emerging threats that leverage advanced technologies.