Malicious VS Code Extensions Steal Data From 1.5 Million Developers

Security researchers have uncovered a major threat to Microsoft’s Visual Studio Code Marketplace. Two popular AI coding assistant extensions were secretly stealing developer data.

Together, they affected nearly 1.5 million users worldwide. The findings have raised serious concerns about the safety of third-party AI tools developers use every day.

The extensions appeared genuine and functioned as intended. That is what made them dangerous. Hidden in the code was spyware that sent sensitive data to servers in China without user consent.

How the Malicious VS Code Extensions Worked

Researchers at Koi Security found that both extensions were part of the same spyware campaign.

They named it “MaliciousCorgi.” The extensions shared identical malicious code but used different publisher names.

The affected extensions are:

• ChatGPT – 中文版
• ChatMoss (CodeMoss)

Key technical behaviors found:

• Captured full file contents when opened
• Encoded data using Base64
• Sent data silently to remote servers
• Used hidden iframes for tracking
• Allowed remote commands to steal files

Unlike trusted tools, these extensions did not limit access. They read entire files, not small code snippets. The spying started the moment a file was opened.

Also read about: Data Breach Statistics

What Data Was at Risk for Developers

The stolen data included highly sensitive files. This puts both individuals and companies at risk.

Exposed data included:

• Source code
• Configuration files
• .env files
• API keys and passwords
• Cloud service credentials

Researchers also found tracking tools inside the extensions. These tools created user profiles and tracked editor activity. This allowed deep monitoring of developer behavior.

Despite reports, both extensions were still available on the VS Code Marketplace at the time of publication. Microsoft had not issued a public response.

Comparison Table: Malicious VS Code Extensions

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