Researchers say suspected Chinese cyber operators used publicly available AI tools to infiltrate Taiwanese government networks and expand the breach to a nuclear safety agency, supply‑chain vendors, and at least seven energy companies between July 1 and July 4.
An Israeli cybersecurity firm named Dream published research on Wednesday describing the intrusion, which it said involved eight sub‑agents operating across twelve attack waves. The framework was built on open‑source Hermes and OpenClaw AI agents.
In the first four days, the agents accessed 85 government user accounts and exfiltrated more than 2,500 personnel records from a 160 MB archive containing 1,395 files. The breach gave the attackers access to internal dashboards, equipment management interfaces, and personnel statistics pages.
The agents mapped the target environment, extracting URLs, API endpoints, OAuth client IDs and Keycloak configurations from a single government portal that linked to 21 government systems. They identified more than 36 unauthenticated API endpoints and a system that exposed an entire user database without authentication.
Using harvested usernames, the agents bypassed CAPTCHA verification, cracked passwords based on employee IDs, and authenticated to the department’s internal information system. The intrusion also extended to government IT supply‑chain vendors, the nuclear safety agency, a government email system and multiple energy sector companies, where the AI framework performed parallel scans for misconfigurations and exploitable vulnerabilities.
The framework implemented “learning cycles,” autonomous sessions that searched vulnerability databases, GitHub repositories and other sources for techniques, CVEs and common weaknesses, and corrected its own errors during verification.
Dream noted that the operational documentation indicated a Chinese‑language operator, though it did not attribute the attack to the Chinese government or any specific hacking group. The Financial Times reported the findings and identified Taiwan as the target. The Register cited a person familiar with the attack confirming Taiwan as the target. OpenAI technical staffer Michael Dalton said at a Black Hat briefing that AI‑orchestrated, fully automated offensive attacks are now real, and that threat actors are likely to deploy and weaponize autonomous agent collectives.
The incident highlights the emergence of autonomous AI tools capable of conducting multi‑vector cyber operations against critical infrastructure.

