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An undercover Google analyst infiltrated a notorious supply-chain hacking gang

Before two of its alleged members were arrested and charged in Australia last month, the hacker group known as TeamPCP carried out a hacking spree unlike any other in history. It tainted hundreds of open-source programs with its malware, stole developer accounts to perpetuate that software supply-chain hacking, and even released a Dune-themed self-spreading worm to automate the process, ultimately breaching more than a thousand companies.

Now Google’s threat intelligence group has revealed that during a key moment of TeamPCP’s rampage, the company’s own undercover researcher had infiltrated the group—allowing Google to monitor the hacking spree from the inside, warn breach targets, and even help disrupt the group’s attempts to exploit those victims.

In a talk at security firm SentinelOne's LABScon research conference today, Google Threat Intelligence Group researcher Austin Larsen will present details on the company’s investigation—and infiltration—of TeamPCP amidst the group’s unprecedented, chaotic supply-chain hacking campaign. According to Larsen, Google eventually followed a trail of operational security mistakes allegedly made by one of the two Australians now accused of being leading members of the hacker group and passed on key identifying details to law enforcement. The company also received intelligence from ShinyHunters, another infamous cybercriminal group that TeamPCP partnered with, but which later turned on the supply-chain hackers. And perhaps most surprisingly, Larsen says that Google’s security subsidiary Mandiant had an undercover analyst—not himself—within the group’s inner circle from almost the beginning of TeamPCP’s time in the spotlight.

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AI scammers outperform humans when it comes to building trust

The notion that scammers can use AI to sharpen their deceptions, polish their language, and lubricate their banter with victims is now a reality for anyone fighting the fraud operations that steal tens of billions of dollars a year worldwide. But can AI fully replace a human scammer, autonomously building the web of deception leading up to the fake investment that defrauds the mark? One study's experiment suggests that it can—and may even be able to carry out the majority of that long con more effectively than humans.

Researchers from four universities—Amrita Vishwa Vidyapeetham in India, Foscari University of Venice, the University of Melbourne, and Ben Gurion University of the Negev—carried out a broad study on the use and potential of generative AI chatbots in the growing scam industry centered around a form of fraud known as “pig butchering,” text-based romance scams that eventually shift to fake crypto investments that steal as much as six-figure sums from victims. In their study, the researchers pitted AI chatbots directly against humans in a simulation of the scamming process—or more specifically, the long, trust-building conversations that eventually lead up to soliciting a fake investment from the scam’s target.

They found that for the relationship-establishing stages of the scam—the stage that in real-world scams typically represents the longest part of the interactions with the victim, often stretching to months—an AI chatbot performed remarkably effectively, successfully impersonating a human and by some measures outperforming the real human “scammers” in their experiment.

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