Cybersecurity researchers have discovered nearly 7,600 malicious GitHub repositories, out of which more than 800 pose as artificial intelligence (AI) skills or Model Context Protocol (MCP) servers to deliver a malware family known as SmartLoader as part of an ongoing campaign codenamed FakeGit.

"FakeGit uses copied projects, lookalike developer profiles, convincing READMEs, and malicious ZIP files to deliver SmartLoader malware," Oleg Zaytsev, lead security researcher at Island, said in a report shared with The Hacker News.

The end goal of these attacks is to leverage the access afforded by SmartLoader to establish persistence and push secondary payloads, such as StealC, an information stealer capable of harvesting a wide range of data from compromised systems.

It's worth mentioning here that the use of trojanized MCP servers to distribute SmartLoader and StealC was flagged earlier this year by Straiker AI and subsequently by Derp.ca. But a concerning aspect of FakeGit is an AI-powered evolution dubbed AgentBaiting.

This occurs when an AI agent searching for a skill or an MCP server ends up inadvertently discovering one of these bogus GitHub repositories, causing it to do the attacker's bidding on its own without any intervention from a human user.