Security researchers have discovered a malicious Visual Studio Code extension that impersonated Moltbot (formerly Clawdbot) and claimed to be a free AI coding assistant. The extension was published on the official VS Code Marketplace before being removed by Microsoft.

Named “ClawdBot Agent – AI Coding Assistant”, the fake extension abused Moltbot’s growing popularity to trick developers into installing it. Moltbot itself does not have an official VS Code extension, making this a clear case of brand impersonation.

Once installed, the extension executed automatically every time VS Code launched. It silently downloaded a payload that installed a remote access tool (ScreenConnect), giving attackers persistent control over the infected system. Multiple fallback methods were built in to ensure the malware could still be delivered even if one channel failed.

Researchers also warned about broader security risks around Moltbot deployments, including exposed instances caused by misconfigurations. These issues could allow attackers to access credentials, chat histories, API keys, or even impersonate users across messaging platforms.

Security experts recommend auditing Moltbot configurations, revoking exposed credentials, restricting network access, and avoiding unofficial extensions to reduce the risk of compromise.

Source: https://thehackernews.com/2026/01/fake-moltbot-ai-coding-assistant-on-vs.html