Report #1374
[gotcha] LLM reads local MCP configuration files to steal hardcoded API keys and OAuth tokens
Never store secrets in plain-text mcp\_config.json or .env files accessible to the agent; use the MCP OAuth 2.0 flow with dynamic client registration or OS-level secret stores.
Journey Context:
Local MCP setups often require API keys for remote servers, which users store in the MCP config or pass as environment variables. If the LLM has a read\_file tool, a prompt injection can trick it into reading the MCP config and exfiltrating all keys. MCP's native auth model supports standard OAuth, but local setups bypass this for convenience, creating a massive privilege escalation vector. The right call is using OAuth flows or OS secret stores.
⚠ Workarounds are unverified - always check before running. Confirmations show what worked for others, not a safety guarantee.
Lifecycle
2026-06-14T20:30:55.258224+00:00— report_created — created