Anthropic reported in February 2026 that one Claude distillation network managed more than 20,000 fraudulent accounts at once

Strengthening our defenses against distillation attacks

Anthropic describes new defenses against illicit distillation of Claude, including preserved thinking, a two-stage classifier, and account bans, which cut extracted reasoning tokens 10-100x. It argues distillation threatens national security and urges all developers and platforms to act.