Attackers chain two PaperCut flaws to lift LDAP and SAM credentials from school print servers
Arctic Wolf reports the two newly disclosed PaperCut bugs being used together against K-12 and university print servers in the US and Europe, with collection aimed at the directory credentials the server stores to do its job.
The Watch · Security desk

What happened
- Arctic Wolf observed attackers chaining CVE-2026-81578, an authentication bypass, with CVE-2026-82078, a remote code execution flaw, to run commands, perform reconnaissance and create privileged accounts.
- The company told The Hacker News the activity has hit vulnerable PaperCut servers across the education sector, from K-12 schools to major universities in the U.S. and Europe.
- Arctic Wolf's mitigation guidance is to keep PaperCut servers off the internet and to monitor for interpreters and discovery commands spawned with pc-app.exe as the parent process.
Why it matters
- Who's exposed exposure A print server holding a directory bind account and local SAM hashes puts the incident boundary at the domain rather than the print queue, which is the pathway Arctic Wolf says the stolen logins open.
- Who has to decide decision With attacker addresses, staged file paths and an account name now public, the live question for PaperCut operators is retrospective log review across the exposure window, not scheduling of a maintenance change.
- What it limits constraint The only remediation that can be verified from this reporting is reachability, because no fixed build number is given to compare an estate against.
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The credential path is the part worth mapping. Arctic Wolf says it saw `findstr` run against PaperCut `*.config` files for the strings password, secret, ldap, bind and token [6]. A print server that authenticates users against a directory has to keep a bind account somewhere the application can read it, and that is the file being searched. In a sandbox, the same team watched lsa_collect.exe pull the registry keys needed to rebuild the system BootKey, which is what unlocks the SAM database [7]. Service credentials out of configuration, local account hashes out of the registry.
Three of the binaries staged onto victims do that one job: lsa_collect.exe, lsa_collect_small.exe and save_hives.exe, all fetched with certutil.exe from 45.142.193.132 [5][13]. That same address then sent inbound GET requests for `/custom/pcp_*.txt` and `/custom/web/pcp_*.txt`, files sitting on the compromised host and holding harvested system and user data [4]. Collection leaves by the print server's own web path, with the operator writing results into a directory PaperCut already serves and then retrieving them the way a client would [16]. Meterpreter Java payloads came from a second host, 194.180.48.134, which also took the sessions [9]. Discovery was ordinary: uname, whoami, ver and tasklist, plus creation of a privileged account named "Administrator17" [10].
Chain order decides who is in scope. The authentication bypass, CVE-2026-81578, fronts the remote code execution, CVE-2026-82078 [3], so an attempt needs no valid PaperCut login and reachability is the whole prerequisite [15].
This is one vendor's telemetry, and it names no patched build number and no victim count [14]. Arctic Wolf's guidance is accordingly about reachability rather than a version: keep PaperCut servers off the internet, and alert on cmd.exe, powershell.exe or other interpreters running with pc-app.exe as the parent process, along with commands containing whoami, tasklist, ver or uname -a [8]. That parent-child pair is the most useful detection in the writeup, because it fires on the mechanism instead of on any one tool name.
For a PaperCut host that faced the internet during the exposure window, the bind account in its config should be treated as read by someone else until logs say otherwise. Arctic Wolf's stated concern is exactly that: the stolen logins give a pathway into other critical systems across the environment [12].
What to watch
- A named patched PaperCut build or vendor advisory; the current reporting cites neither, so remediation rests on exposure reduction.
- Whether the same tooling and the two named IPs turn up against non-education PaperCut estates.
- Whether credentials taken from these print servers surface in follow-on intrusions at the same schools and universities.
Clarity's read
What the record supports and how the coverage leans. The claims behind it follow.
Reality
- Evidence58
- Adoption
- Not scored
- Hype gap+5
- Incentives30
- Confidence62
Perspective Coverage
3 publishers- Builder
- Builder 32%
- Operator
- Operator 63%
- Investor
- Investor 5%
Claim ledger
Ranked by verification strength, evidence, and original report placement.
- [1]
Arctic Wolf's Adversary Research Team says threat actors are exploiting newly disclosed PaperCut flaws to facilitate credential theft in attacks on the education sector in the U.S. and Europe.
- [2]
Arctic Wolf told The Hacker News the activity has targeted vulnerable PaperCut servers across the education sector, impacting organizations ranging from K-12 schools to major universities in the U.S. and Europe.
- [3]
Arctic Wolf observed attackers exploiting CVE-2026-81578 and CVE-2026-82078, an authentication bypass and remote code execution chain, to conduct command execution and reconnaissance and to create privileged accounts.
- [4]
Observed activity included inbound GET requests from 45.142.193[.]132 requesting /custom/pcp_*.txt and /custom/web/pcp_*.txt files on compromised hosts, containing harvested system and user data.
- [5]
Attackers delivered credential-harvesting tools lsa_collect.exe, lsa_collect_small.exe and save_hives.exe via certutil.exe from 45.142.193[.]132.
- [6]
Attackers used findstr to search PaperCut *.config files for the terms password, secret, ldap, bind and token.
- [7]
Arctic Wolf detected lsa_collect.exe in a sandbox extracting specific registry keys to reconstruct the system BootKey, which can then grant the attacker access to the SAM database.
- [8]
Arctic Wolf advises restricting PaperCut servers from internet exposure and monitoring for execution of cmd.exe, powershell.exe or other scripting and command interpreters, and commands containing whoami, tasklist, ver or uname -a with pc-app.exe as the parent process.
- [9]
Attackers retrieved Meterpreter Java payloads from, and established sessions to, 194.180.48[.]134.
- [10]
Identified malicious activity included discovery commands such as uname, whoami, ver and tasklist, and creation of a privileged account named "Administrator17".
- [11]
Arctic Wolf said observed post-exploitation activity included delivery of Windows registry hive collection tools, Metasploit/Meterpreter-related Java payloads, and commands used to identify hosts, users, processes and sensitive configuration data.
- [12]
Arctic Wolf said the concern is that stolen logins could give attackers a pathway into other critical systems across the environment.
- [13]
Three named credential-harvesting binaries were delivered from a single staging host, 45.142.193[.]132.
- [14]
The reporting supplies no patched PaperCut build number and no count of affected organizations.
- [15]
Because the authentication bypass precedes the remote code execution in the chain, exploitation requires no valid PaperCut credentials and network reachability of the server is the operative prerequisite.
- [16]
Exfiltration in this activity is attacker-initiated over HTTP against the PaperCut server's own web-served /custom path rather than an outbound push from the host.
Sources
3 independent publishers whose own reporting we read for this story.
- bleepingcomputer.comHackers exploit critical JFrog Artifactory flaw to forge admin tokens
1 article · September 7, 2026
- securityaffairs.comPaperCut Flaws Exploited in Attacks on U.S. and European Schools
1 article · September 5, 2026
- thehackernews.comAttackers Exploit PaperCut Flaws to Steal Credentials From Schools and Universities
2 articles · September 5, 2026
Topics and entities
Topics
- Vulnerability Exploitation
- Credential Theft and Stealer Logs
- Education Sector Security