Malicious AI extensions on VS Code Marketplace steal developer data (www.bleepingcomputer.com)

Two malicious AI extensions on Microsoft’s Visual Studio Code (VSCode) Marketplace, which have been installed 1.5 million times, have been found to exfiltrate developer data to servers located in China. These extensions, named "ChatGPT – 中文版" and "ChatMoss (CodeMoss)," function as AI-powered coding assistants but fail to disclose their data upload activities or obtain user consent. Identified as part of a malicious campaign dubbed 'MaliciousCorgi,' both extensions share a common codebase for stealing data and utilize the same spyware infrastructure. The extensions employ three primary data-collection mechanisms. Firstly, upon opening any file in VSCode, the entire contents are captured and transmitted to the attackers' servers in Base64 format. Secondly, they can secretly exfiltrate up to 50 files from a victim's workspace in a single command. Lastly, they implement a hidden iframe that loads multiple analytics SDKs to track user behavior and profile identities. The implications are severe, as this undocumented functionality could expose sensitive information, including private source code and API keys, posing significant risks to developers and their organizations. Microsoft is currently investigating the matter.