A previously unknown threat actor used advanced AI tools from Anthropic and OpenAI in an attempted takeover of a local water utility in Mexico, a new report released by cybersecurity firm Dragos says.
The incident was part of a broader cyber campaign targeting nine federal, state and municipal government agencies across Mexico between December 2025 and February 2026, Dragos said. Researchers at Gambit Security found that attackers used AI platforms including Claude Code and GPT-4.1 AP to automate tasks, including reconnaissance, exploit customization, credential harvesting and privilege escalation.
According to Dragos, the attackers breached the water utility’s IT network in January before attempting to pivot into the operational technology (OT) environment that manages industrial systems. Although the hackers ultimately failed to compromise the OT network, researchers warned the case demonstrates how quickly generative AI can adapt to unfamiliar industrial control environments with little prior training.
Researchers said Claude was used to identify a vNode industrial gateway within the utility’s infrastructure, analyze vendor documentation and generate likely credential combinations using both default and organization-specific passwords. The threat actor then launched a password-spraying attack against the system’s authentication interface.
Gambit Security estimated the wider campaign resulted in the theft of hundreds of millions of citizen records and the compromise of thousands of servers across multiple agencies. Researchers noted that while AI handled much of the technical work, some intrusions still involved traditional manual hacking techniques.
Meanwhile, Poland’s domestic intelligence agency (ABW) has warned of a wave of cyberattacks targeting water treatment facilities across the country in 2025.
According to a new public report, attackers breached systems in several towns, including Jabłonna Lacka, Szczytno, Małdyty, Tolkmicko, and Sierakowo, in some cases gaining access to industrial control systems that manage water operations. The agency said the intrusions could have allowed hackers to alter technical settings and disrupt water supplies.
While no specific actor was officially named, the ABW pointed to a broader rise in hostile cyber activity against Poland, with particular concern focused on Russian intelligence-linked operations. Polish officials also reported that separate Russian cyberattacks in December 2025 targeted the country’s energy infrastructure and nearly caused a nationwide blackout.