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Special Edition
The Alaris Security Chronicle
San Francisco · March 31, 2026 · Breach Report

$10 Billion AI Startup Breached; 4 Terabytes of Data Stolen in Four Days

40,000+ individuals affectedVideo interviews and source code exfiltratedNo internal detection

Acompromised open-source package gave attackers access to a $10 billion AI recruiting startup. Over four days they exfiltrated 4TB of data: candidate databases with PII for 40,000+ individuals, video interviews, government-issued identity documents, source code, and internal Slack communications.

No internal system flagged the activity at any stage. The company learned about the breach when the extortion group Lapsus$ posted the data on their leak site. A class action was filed the next day.

The attack chain started with a compromised PyPI package and moved through stolen VPN credentials to full network access in under 24 hours.

The same week, the Axios npm package was compromised by a North Korean threat actor. The TeamPCP supply chain campaign hit five ecosystems and an estimated 500,000 machines.

The broader TeamPCP campaign compromised five ecosystems and an estimated 500,000 machines across more than 1,000 SaaS environments.

Every stage of the attack produced detectable signals. None were detected. Most startups have no security operations in place at all.

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1

VC-backed (Seed through Series C)

2

Fewer than 1,000 employees

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