TL;DR: Claude Code’s ability to read code, fetch web pages, run commands, and call MCP tools creates a large prompt injection attack surface when permissions are skipped, according to Lasso Security. The real issue is not model capability but the collapse of trust boundaries around untrusted content and trusted execution.
Editorial analysis by NHI Mgmt Group, based on content published by Lasso Security: “The Hidden Backdoor in Claude Code: Why Its Power Is Also Its Greatest Vulnerability”.
Key questions
Q: What breaks when AI coding tools can turn untrusted content into shell commands?
A: The approval model breaks.
Q: Why do MCP-based AI systems increase prompt injection risk?
A: MCP-based AI systems increase prompt injection risk because they connect models directly to tools and external context that may contain hidden instructions.
Q: How do security teams reduce the impact of prompt injection in code assistants?
A: They should reduce the assistant’s ability to move from reading to executing to sending data.
Practitioner guidance
- Tighten approval-free execution paths Restrict use of permission-skipping modes to narrowly defined tasks and keep human approval for any command that can write, delete, deploy, or exfiltrate.
- Treat MCP connectors as trust boundaries Review every connected repository, documentation source, ticket system, and database for who can edit content and what the agent can do with it.
- Add runtime prompt injection detection Scan tool outputs before they are inserted into the agent context so that hidden instructions are flagged before they can shape execution.
Bottom line: Indirect prompt injection is dangerous because hidden instructions can flow from ordinary content into privileged execution.
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Trust boundaries that separate content from action are the real control here. Claude Code becomes risky when untrusted material can be read in the same working context that authorises execution. That is not a model-quality issue; it is a governance failure around where trust begins and ends. Practitioners should treat content ingestion and command execution as different control zones.
A few things that frame the scale:
- Claude Code-assisted commits leaked secrets at a rate of 3.2%, more than double the human-only baseline of 1.5%, with peaks reaching 31 secrets per 1,000 commits in August 2025, according to the State of Secrets Sprawl 2026.
A question worth separating out:
Q: Should organisations treat AI coding agents like privileged software identities?
A: Yes. If an AI agent can install code, access secrets, or modify repositories, it is functionally acting as a privileged non-human identity and should be governed that way. That means task-scoped access, explicit boundaries, and monitoring of its downstream actions, especially when it can touch build and release systems.
👉 Read our full editorial: Claude Code prompt injection exposes hidden backdoor risks