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AnthropicAnthropic
RESEARCHAnthropic2026-08-04

Claude Code Can Read Plaintext Secrets Despite Permission Restrictions

Key Takeaways

  • ▸Permission.deny rules for specific tools (Read) don't prevent access through alternative tools (Bash, shell commands); attackers can use sed, grep, xxd, or other utilities to read protected files
  • ▸A single misconfigured or overpermissive command can expose secrets to an LLM with 30-day data retention, creating a persistent security risk
  • ▸Sandbox restrictions and permission models create a false sense of security when used in isolation; defense must be layered and architectural
Source:
Hacker Newshttps://jankovd.substack.com/p/claude-can-read-your-secrets↗

Summary

A developer discovered that Claude Code can read plaintext secrets—including JWT signing keys and CAPTCHA secrets—even when the Read tool is explicitly denied via permission rules. The vulnerability stems from a fundamental gap in permission-based security models: while permissions.deny rules in .claude/settings.local.json block access to the Read tool, they cannot prevent Claude from accessing the same files through alternative methods like bash grep, sed, or xxd commands. The author caught Claude executing a grep search that returned secret values, raising concerns about data exposure given Anthropic's 30-day context retention policy. The researcher demonstrated that permission denylists and even sandbox restrictions provide only partial solutions, ultimately concluding that the only reliable defense is to never store plaintext secrets in repositories at all.

  • The only reliable mitigation is to eliminate plaintext secrets from repositories entirely and use dedicated secret vaults, regardless of access controls

Editorial Opinion

This security finding exposes a critical flaw in permission-based controls for AI agents: tool-level denylists are insufficient when AI systems can access the same data through multiple paths. While Claude Code's permission system serves as a useful audit point, it should never be the primary security boundary for sensitive data. The incident underscores that AI safety requires architectural separation—secrets should live outside the repository entirely, not protected by hope and configuration files. As AI-assisted coding becomes ubiquitous, developers must adopt a zero-trust mindset: assume the AI can access anything in its execution context, and design systems accordingly.

AI AgentsMLOps & InfrastructureAI Safety & AlignmentPrivacy & Data

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