Phantom Squatting Uses AI-Hallucinated Domains for Phishing and Malware

Large language models keep inventing web addresses that do not exist. Attackers have started buying those made-up domains before anyone else can, then hosting phishing pages on them to catch traffic that AI tools point their way. Palo Alto Networks' Unit 42 calls the trick phantom squatting, and its new research shows it is already happening in the wild. The reason it matters is