AI Attacked and Abused While Perimeter Authentication Collapses The month's defining shift was the emergence of AI as a two-sided battlefield: organizations deployed AI tools faster than they secured them, while attackers weaponized the same technology against defenders. Critical flaws in LangGraph allowed SQL injection chained to remote code execution, M365 Copilot could be turned into a one-click data exfiltration weapon via SearchLeak, and Langflow was exploited to deploy cryptominers. Meanwhile, the ongoing Shai-Hulud campaign injected prompts to blind AI malware scanners, macOS.Gaslight turned prompt injection against human analysts, and Russia's APT28 began experimenting with LLM-integrated malware. At the same time, perimeter authentication collapsed at scale: FortiBleed exposed credentials for over 73,000 FortiGate firewalls, CVE-2026-50751 let attackers bypass Check Point VPN authentication entirely, and ShinyHunters exploited an Oracle PeopleSoft zero-day across over 100 organizations. Supply chain attackers followed developers to their new AI tools, compromising the ecosystems where code is written and built. The Shai-Hulud/Miasma worm expanded from npm into PyPI and injected persistent backdoors into AI coding assistant configurations, while North Korea's Sapphire Sleet compromised over 140 Mastra npm packages to steal cryptocurrency wallets, and the ongoing GlassWorm campaign pivoted to WebAssembly malware in VS Code extensions using the Solana blockchain as command-and-control. Social engineering also industrialized: the ErrTraffic framework turned ClickFix deception into a Malware-as-a-Service operation with blockchain dead drops, and EvilTokens hid phishing flows inside browser-side encryption to defeat network scanners while hijacking Microsoft device-code authentication. Organizations should treat AI deployments as untrusted perimeter assets—restrict their network access, audit third-party skills and extensions, and assume prompt-injection attacks will target both automated scanners and human analysts. Every internet-facing VPN, firewall, and edge appliance should be patched immediately, with credentials rotated and phishing-resistant MFA enforced, because perimeter authentication failures now cascade directly into internal network compromise.