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For the 2nd time in weeks, Microsoft packages laced with credential stealer

Dozens of cryptographically verified open source packages from Microsoft were compromised late last week to add advanced credential-stealing code that was triggered when developers opened them in AI coding agents.

In all, multiple researchers said, 73 packages were flagged as malicious when automated systems on GitHub blocked them on the platform. Rather than noting they are malicious—and that developers who used AI agents to work with them should assume their systems are compromised—the Microsoft-owned GitHub said it disabled the packages “due to a violation of GitHub's terms of service.” The text went on to encourage the package owner to contact GitHub.

Devs: Assume compromise and proceed accordingly

It wasn’t until Monday that Microsoft even raised the possibility the packages were infected. In an email, the company stated: “We have temporarily removed some repositories as we investigate potential malicious content.”

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GitHub adds new Copilot features as usage-based billing takes effect

GitHub is expanding Copilot beyond the IDE with a new desktop application and a new collaborative work surface called canvas as part of its broader efforts to pitch the AI-assisted coding tool as the control center for agent-native software development.

The desktop application announced at Microsoft’s annual Build conference this week is designed to give developers a dedicated environment for working with AI agents throughout the software development lifecycle, rather than limiting those interactions to code-generation tasks inside an editor, the company wrote in a blog post.

The application includes a collaborative workspace called canvas where developers can brainstorm ideas, refine requirements, generate plans, and iterate on projects alongside AI, it said.

It also has new Agent Merge and code review features that enable developers to automate Copilot to combine tasks of different agents to complete a specific goal or conduct autonomous code reviews according to set standards, it said.

These new features could reduce context switching, increase engineering efficiency, and accelerate delivery cycles, said Phil Fersht, CEO of HFS Research.

Shift in pricing justified?

However, despite the new features, much of the conversation among developers in recent weeks has centered on a different topic: this week’s shift to a usage-based billing model for GitHub Copilot that it announced in April.

The changes were met with a wave of criticism on the GitHub community forum, where some users accused the company of a “bait and switch,” while others requested refunds or announced plans to cancel their subscriptions.

For analysts, though, the pricing change was, at least from GitHub’s point of view, necessary and justified.

“The pricing change is justified by where GitHub is going, not by where the product is today. Running multiple agents in parallel with sandboxes, canvas reviews, and Agent Merge looping through CI is closer to cloud compute than an IDE plugin, and you cannot price compute on a flat seat fee. So metered billing is the right call structurally,” said Advait Patel, a senior reliability engineer at Broadcom.

Fersht said developers and CIOs need to focus on Copilot’s metamorphosis from being a coding assistant into a platform for orchestrating software-development agents and workflows.

“That changes the ROI conversation significantly. CIOs should stop thinking about Copilot as a seat-license productivity tool and instead evaluate it as an AI-powered software delivery platform,” he said. “The metrics shift from ‘lines of code generated’ to broader operational outcomes such as release velocity, code quality, defect reduction and engineering efficiency.”

GitHub is not the first company offering vibe-coding tools to rethink its pricing strategy as AI agents proliferate across enterprises and evolve to take on more complex software-development tasks that are computationally more intensive.

Over the past year, platforms such as Claude Code, Replit, Cursor, and Kiro have repeatedly adjusted their pricing structures to account for mounting infrastructure costs, limited GPU availability, and the expense of serving increasingly sophisticated AI models and agents, despite furor among their users.

For CIOs, the challenge is proving ROI

That common pressure across AI coding vendors is why Amit Chandak, chief analytics officer at IT consulting firm Kanerika, thinks developers and CIOs should focus less on GitHub’s pricing mechanics and more on whether these increasingly capable tools are delivering measurable business value.

“The new features that GitHub announced can act as productivity multipliers as well as features that increase consumption without delivering proportional business value. Without productivity baselines established before adoption, enterprises risk absorbing higher costs with no clear line back to delivered value,” Chandak said.

For Fersht, developers and CIOs will need to focus on governance, monitoring and financial controls as the pricing model is changing.

“The governance challenge is very real. Autonomous agents can continuously reason, test, revise and interact with multiple systems in ways that create far less predictable consumption patterns than traditional SaaS tools,” he said.

Patel, however, advised users and decision-makers to be more skeptical, especially since the new features are currently in technical preview.

“Customers are being asked to pay variable rates now for value that has not been validated in production. Do not assume new capabilities justify higher spend,” he said. “Instead, run a 90 day pilot, measure PRs merged per dollar before and after, and let the data decide. If the ratio improves, the pricing is fair. If it does not, you are paying for promise, not delivery,” Patel added.

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Hole in GitHub’s browser-based VSCode editor could lead to stolen token

A vulnerability in GitHub’s browser-based VSCode editor could lead to the theft of a developer’s token under certain circumstances, says a researcher.

The issue, revealed this week in a blog by Ammar Askar, has apparently been already addressed by GitHub owner Microsoft. But it raises a questions about both DevOps security, and about the researcher’s allegation that, because Microsoft doesn’t treat bug discoveries seriously, he can justify giving it short notice before openly publishing vulnerabilities he finds.

First, the bug: Users of github.com may not realize it, but when they are on any repository, they can shift to github.dev and its browser-based version of VSCode just by changing the URL.

Why do this? Because the browser instance of VSCode is pretty powerful, Askar says in his blog. “You can view all the files in the repo (even if it’s a private one), you can send out pull requests, and even make commits.”

Rob Enderle, a IT consultant who heads the Enderle Group, agrees that jumping into VSCode this way is “an incredibly useful tactical tool for quick tasks. By just hitting the ‘.’ key in any GitHub repo, you instantly get a browser-based VS Code interface without having to clone gigabytes of data locally. It’s perfect for rapid PR reviews, quick documentation edits, or navigating code on the fly without breaking your workflow. Just keep in mind that it runs entirely in the browser sandbox; there’s no compute backend, no terminal, and no code execution.”

For any heavy lifting or actual compiling, he added, the developer will still need the raw compute of a local workstation, or a full cloud environment like Codespaces.

The problem, Askar says, is that this functionality is achieved by github.com POSTing over an OAuth token to github.dev that allows it to interact with GitHub on your behalf. “The token is not scoped to the particular repo you interacted with, meaning it has full access to every other repo that you have access to,” he wrote in the blog.

“The presence of this token, and the fact that this web app is running almost the entire brunt of VSCode’s million line Typescript codebase, makes it a great target for anyone looking into VSCode bugs,” he wrote.

The exploit

Askar said that a threat actor could install an extension in a repository using a Jupyter notebook, a web application for creating and sharing computational documents that has the ability to install a malicious local workspace extension while skipping the publisher trust check. In his proof of concept, Askar said that once his payload runs, the newly installed extension will grab the GitHub API token, run a query to get the private repos the developer has access to, and then print out the replies and the token.

This vulnerability also exists in the desktop version of VSCode, Askar said, though it’s harder to exploit, since a threat actor would need to convince the victim to clone their repo and open the notebook containing the webview script payload. “Of course,” he added, “if you [the hacker] had some other XSS [cross-site scripting attack] in a webview that you can get a victim to open, you get effectively full RCE [remote code execution] on their computer.”

In an email, he said this vulnerability was “about as serious as it gets. Any website on the internet could have redirected you to a github.dev link that could have provided an attacker a token to read and modify your code repos. If one could convince the maintainer of a popular software project to click a link, they could have made whatever modifications they wanted to their project.”

This means, said Enderle, “we have to start treating developer endpoints with strict, isolated, zero-trust parameters, because we clearly cannot rely on vendor complacency to protect us.”

This issue reinforces the point that you should never follow any links unless you know exactly where they will take you, added Dwayne McDaniel, principal developer advocate at GitGuardian.

Short notice

Here’s where things get complicated. Because of an unhappy experience when disclosing a previous VSCode vulnerability to Microsoft — the bug was fixed, but Askar wasn’t given credit — this time he only gave GitHub one hour notice that this new discovery was going to be published. Microsoft applied what Askar calls a “stopgap” fix by adding a confirmation when a developer opens notebooks in web VSCode, and by not allowing the trusted publisher requirement to be skipped by commands.

[Related content: When responsible disclosure becomes unpaid labor]

An ethical question

Askar’s short notice raises an ethical question: How far in advance should a responsible researcher give notice to a vendor about a vulnerability before publicly revealing it?

These days, most infosec pros agree that notice must be given, or else a threat actor can quickly exploit a hole. Not only that, but the researcher risks damage to their reputation if reasonable notice isn’t given. Experienced researchers often give vendors at least 30 days to create and distribute a patch.

For their part, vendors often create bug bounty programs, or partner with bug bounty programs, to reward researchers for their work. Unfortunately, some vendors don’t always credit researchers, or downplay the damage a vulnerability can cause. In fact, last month Microsoft and a prominent cybersecurity researcher got into a public spat about one such alleged incident.

An imbalance of power

Asked for comment about Askar’s most recent discovery, a Microsoft spokesperson said, “we value the critical role that the security research community plays in strengthening the security of our products, services, and the broader technology ecosystem. While independent researchers determine when and how to publish their findings, we remain committed to rapidly assessing reported issues, mobilizing the appropriate engineering and security response resources, and delivering mitigations, guidance, and protections as quickly as possible to help safeguard our customers.”

The spokesperson added that the issue Askar reported “has been mitigated for our services and no customer action is required.”

[Related content: Is the vulnerability disclosure process glitched?]

There is a balance between coordinating disclosure with a software vendor (CVD) and full disclosure, Askar told us. But, he added, there’s an imbalance of power. “A security researcher can pour countless hours into an issue, ensuring they develop a good proof of concept and provide all the steps to recreate the issue. With this, they hope to at least get an acknowledgement for their efforts, which they can use to further their security track record or, in the best case, a monetary bounty reward.”

However, he added, “If security vendors don’t adhere to their side of the bargain, public disclosure is one of the few options security researchers have (if they don’t want to sit on their vulnerabilities or sell them on the black market). It forces the vendor to acknowledge the security issue publicly and usually leads to a much faster resolution than any private communication would.”

This, said Enderle, creates problems for enterprises: “When vendor bureaucracy penalizes responsible disclosure, it alienates the security community and forces public zero-day drops, ultimately leaving enterprise customers holding the bag.”

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A hacker group is poisoning open source code at an unprecedented scale

A so-called software supply chain attack, in which hackers corrupt a legitimate piece of software to hide their own malicious code, was once a relatively rare event but one that haunted the cybersecurity world with its insidious threat of turning any innocent application into a dangerous foothold in a victim’s network. Now one group of cybercriminals has turned that occasional nightmare into a near-weekly episode, corrupting hundreds of open source tools, extorting victims for profit, and sowing a new level of distrust in an entire ecosystem used to create the world’s software.

On Tuesday night, open source code platform GitHub announced that it had been breached by hackers in one such software supply chain attack: A GitHub developer had installed a “poisoned” extension for VSCode, a plug-in for a commonly used code editor that, like GitHub itself, is owned by Microsoft. As a result, the hackers behind the breach, an increasingly notorious group called TeamPCP, claim to have accessed around 4,000 of GitHub’s code repositories. GitHub’s statement confirmed that it had found at least 3,800 compromised repositories while noting that, based on its findings so far, they all contained GitHub’s own code, not that of customers.

“We are here today to advertise GitHub’s source code and internal orgs for sale,” TeamPCP wrote on BreachForums, a forum and marketplace for cybercriminals. “Everything for the main platform is there and I very am happy to send samples to interested buyers to verify absolute authenticity.”

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In stunning display of stupid, secret CISA credentials found in public GitHub repo

Security researcher Brian Krebs brings us the news that America's Cybersecurity & Infrastructure Agency (CISA) has had a large store of plaintext passwords, SSH private keys, tokens, and "other sensitive CISA assets" exposed in a public GitHub repo since at least November 2025.

The now-offline public repo—named, somewhat aspirationally, "Private-CISA"—was brought to Krebs' attention by GitGuardian's Guillaume Valadon, who was alerted to the repo's presence by GitGuardian's public code scans. Krebs says that Valadon approached him after receiving no responses from the Private-CISA repo's owner.

In an email to Krebs, Valadon claimed that the repo's commit logs show that GitHub's default protections against committing secrets—protections designed to protect unwitting or unskilled developers against exactly this kind of stupidness—had been disabled by the repo's administrator.

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