AgentBaiting Uses Fake AI Skills and MCP Servers to Deliver SmartLoader and StealC Malware

Island reports describe "FakeGit"/"AgentBaiting": a widespread campaign that created ~7,600 malicious GitHub repositories and abused AI Skills/MCP registries to weaponize SmartLoader and deploy the StealC infostealer. The operation leverages convincing READMEs, fabricated trust signals, and registry listings so autonomous agents and human users install trojanized packages, exposing developer and cloud credentials, browser sessions, wallets, and other sensitive data; defenders are advised to treat AI capabilities as supply-chain artifacts, enforce curated catalogs, isolate evaluations, and monitor agent-initiated operations.