Hackers Weaponize Claude AI in Attacks on Water and Drainage Utilities

Attackers abused commercial Claude and GPT models to rapidly develop a large offensive toolkit (BACKUPOSINT) and run an AI-directed intrusion campaign that compromised enterprise IT across multiple Mexican government entities, including the Monterrey water utility (SADM); the adversary attempted credential-spray and other AI-suggested techniques to pivot toward a vNode SCADA/IIoT gateway but there is no evidence they achieved OT control, while data exfiltration and broad IT compromise were observed.