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Cybersecurity

Qilin and INC exploit Palo Alto flaw

Palo Alto Networks said it had continued to see ransomware actors using a patched authentication-bypass flaw in PAN-OS and Prisma Access to gain access, bypass MFA and move through networks.

The Hacker News

Palo Alto Networks said it was still seeing exploitation of CVE-2026-0257 in PAN-OS and Prisma Access after fixing it in May 2026. The U.S. Cybersecurity and Infrastructure Security Agency added the flaw to its Known Exploited Vulnerabilities list on 13 May 2026.

Unit 42 said ransomware operators including Spikey Scorpius, also known as Qilin, and Tarnished Scorpius, also known as INC, had used the bug. The researchers said the access was used to enter corporate networks and then bypass multi-factor authentication to establish VPN sessions.

After that, the attackers were said to have carried out internal reconnaissance with remote monitoring tools, moved through RDP and SMB, and prepared tools for credential theft, data removal and ransomware deployment. Unit 42 said the activity had been seen across sectors including education, finance, healthcare, government, transport, utilities and retail.

The researchers said the most notable change was a move into the virtualisation layer. In one case, they said, attackers moved from the VPN gateway to vCenter, disabled ESXi protections and used a custom tool against a domain controller's virtual disk; Palo Alto Networks said the method could bypass in-guest security controls.

Palo Alto Networks said attackers had also tried to combine the access with other exploit tools, including attempts against Veeam backup infrastructure. It said organisations should search for compromise indicators and begin incident response if gateway-linked events were found.

Named in this story

Companies

Palo Alto Networks
disclosed continued exploitation and advised incident hunting
ReliaQuest
said it detected Qilin and Settra exploiting the flaw
Arctic Wolf
previously flagged Qilin's exploitation of the flaw
Veeam
backup infrastructure attackers also tried to target

Organisations

Unit 42
issued the update describing the attack activity
Spikey Scorpius (aka Qilin)
ransomware group named as exploiting the flaw
Tarnished Scorpius (aka INC)
ransomware group named as exploiting the flaw
Settra
ransomware group ReliaQuest said was exploiting the flaw

Governments and agencies

U.S. Cybersecurity and Infrastructure Security Agency
added the flaw to its Known Exploited Vulnerabilities catalog

Products and systems

PAN-OS
affected software platform
Prisma Access
affected cloud security service
vCenter management appliance
system attackers pivoted to after initial access
ESXi hypervisors
virtualisation systems whose protections attackers disabled

How the source tells it

The piece was mostly a straightforward technical update, but it used a cautious, urgent register when describing attacker tactics and urging immediate hunting for compromise.

  • urgency Recent-timing references and direct advice to act immediately created time pressure
  • alarm Superlative wording and worst-case damage descriptions elevated the perceived severity