Security Risks in VS Code Extensions: Ransomware, Cryptomining, and Supply Chain Threats

Cybersecurity researchers discovered a vibe-coded malicious VS Code extension with built-in ransomware capabilities, which exfiltrates and encrypts files, and uses GitHub as a command-and-control server. Additionally, 17 npm packages disguised as SDKs were found to stealthily deploy Vidar Stealer, highlighting ongoing supply chain threats in open-source ecosystems. Microsoft has removed the malicious extension from the marketplace, emphasizing the importance of vigilance in software development.