diff --git a/.molecule-ci/scripts/requirements.txt b/.molecule-ci/scripts/requirements.txt
index 3aecde9..a08df0d 100644
--- a/.molecule-ci/scripts/requirements.txt
+++ b/.molecule-ci/scripts/requirements.txt
@@ -1 +1,2 @@
 pyyaml>=6.0
+
diff --git a/.molecule-ci/scripts/validate-plugin.py b/.molecule-ci/scripts/validate-plugin.py
index 9e59e27..d463cb6 100644
--- a/.molecule-ci/scripts/validate-plugin.py
+++ b/.molecule-ci/scripts/validate-plugin.py
@@ -4,6 +4,7 @@ import os, sys, yaml
 
 errors = []
 
+# 1. plugin.yaml exists
 if not os.path.isfile("plugin.yaml"):
     print("::error::plugin.yaml not found at repo root")
     sys.exit(1)
@@ -11,23 +12,28 @@ if not os.path.isfile("plugin.yaml"):
 with open("plugin.yaml") as f:
     plugin = yaml.safe_load(f)
 
+# 2. Required fields
 for field in ["name", "version", "description"]:
     if not plugin.get(field):
         errors.append(f"Missing required field: {field}")
 
+# 3. Version format
 v = str(plugin.get("version", ""))
 if v and not all(c in "0123456789." for c in v):
     errors.append(f"Invalid version format: {v}")
 
+# 4. Runtimes type
 runtimes = plugin.get("runtimes")
 if runtimes is not None and not isinstance(runtimes, list):
     errors.append(f"runtimes must be a list, got {type(runtimes).__name__}")
 
+# 5. Has content
 content_paths = ["SKILL.md", "hooks", "skills", "rules"]
 found = [p for p in content_paths if os.path.exists(p)]
 if not found:
     errors.append("Plugin must contain at least one of: SKILL.md, hooks/, skills/, rules/")
 
+# 6. SKILL.md formatting check
 if os.path.isfile("SKILL.md"):
     with open("SKILL.md") as f:
         first_line = f.readline().strip()
@@ -39,9 +45,9 @@ if errors:
         print(f"::error::{e}")
     sys.exit(1)
 
-pn = plugin["name"]; pv = plugin["version"]
-print(f"\u2713 plugin.yaml valid: {pn} v{pv}")
+print(f"✓ plugin.yaml valid: {plugin['name']} v{plugin['version']}")
 if found:
     print(f"  Content: {', '.join(found)}")
 if runtimes:
     print(f"  Runtimes: {', '.join(runtimes)}")
+
diff --git a/hooks/pre-bash-careful.py b/hooks/pre-bash-careful.py
index 32b6131..9989a25 100755
--- a/hooks/pre-bash-careful.py
+++ b/hooks/pre-bash-careful.py
@@ -1,5 +1,6 @@
 #!/usr/bin/env python3
 """PreToolUse:Bash — enforce careful-mode patterns on shell commands."""
+import re
 import sys
 import os
 sys.path.insert(0, os.path.dirname(os.path.abspath(__file__)))
@@ -44,7 +45,7 @@ def main() -> None:
             if "migrations" in cmd:
                 deny_pretooluse("careful-mode: rm -rf inside a migrations dir is REFUSED.")
             deny_pretooluse(f"careful-mode: rm -rf at filesystem root, HOME, or .git is REFUSED. Command: {cmd[:200]}")
-        if "/.git" in cmd:
+        if re.search(r"(^|\s)\.git(?:\s|$|/)", cmd):
             deny_pretooluse("careful-mode: rm -rf .git is REFUSED. Re-clone if you need a fresh repo.")
 
     # WARN list — log but allow
@@ -53,6 +54,54 @@ def main() -> None:
     if "gh pr close" in cmd or "gh issue close" in cmd:
         warn_to_stderr("[careful-mode WARN] closing a PR/issue is irreversible from this bot's standpoint. Confirm intent.")
 
+    # Token exfiltration — OFFSEC-002 / CRED-2
+    # Block direct reads of known token file paths
+    token_paths = [
+        ".gh_token",
+        ".git-credentials-cache",
+        ".auth_token",
+        "gh_token",
+        "git-credentials-cache",
+        ".auth-token",
+        ".claude/.gh_token",
+        "~/.gh_token",
+    ]
+    # Also block cat of any path containing token-like segments
+    if re.search(r"cat\s+.*(~|/home/[^/]+/)\S*(token|gh_token|git.credential|auth)", cmd, re.IGNORECASE):
+        deny_pretooluse(
+            "careful-mode: potential credential file read REFUSED. "
+            "Token files must not be read in the agent context. "
+            "Use platform-managed secrets instead."
+        )
+    if any(tok in cmd for tok in token_paths):
+        deny_pretooluse(
+            "careful-mode: token file read REFUSED. "
+            "Token files must not be read in the agent context. "
+            "Use platform-managed secrets instead."
+        )
+
+    # Block env | grep for secrets (common exfil staging pattern)
+    # Matches: env | grep token; env|grep -i API_KEY; env | grep secret
+    if re.search(r"env\s*\|\s*grep\s+(-i\s+)?(token|api_key|secret|auth|password|passwd)", cmd, re.IGNORECASE):
+        deny_pretooluse(
+            "careful-mode: env grep for secrets REFUSED. "
+            "Reading environment variables for secrets is not permitted in agent context."
+        )
+
+    # Block generic cat of potential credential file extensions or token-named files
+    if re.search(r"cat\s+.*(\.gh_token|\.git-credential|\.auth_token|auth_token|gh_token)", cmd, re.IGNORECASE):
+        deny_pretooluse(
+            "careful-mode: potential credential file read REFUSED. "
+            "Token files must not be read in the agent context."
+        )
+
+    # Block curl/wget exfiltration of credentials to external endpoints
+    if re.search(r"(curl|wget)\s+.*(Authorization|Bearer|token|key).*\s+>", cmd):
+        deny_pretooluse(
+            "careful-mode: credential exfiltration via redirect REFUSED. "
+            "Do not redirect credentials to external endpoints."
+        )
+
 
 if __name__ == "__main__":
     try:
diff --git a/known-issues.md b/known-issues.md
index 68b663e..0536239 100644
--- a/known-issues.md
+++ b/known-issues.md
@@ -10,7 +10,30 @@
 
 ## Recently Resolved
 
-*(No recently resolved issues.)*
+### [RESOLVED] OFFSEC-002: Token exfiltration patterns not blocked
+
+**Severity:** P0 (security)
+**Resolved in:** v1.0.1
+
+**Symptoms:** The PreToolUse:Bash hook blocked destructive commands (force push, DROP TABLE, rm -rf) but did NOT block token exfiltration patterns. An LLM prompt injection could instruct the agent to execute:
+- `cat ~/.gh_token`
+- `cat /tmp/.git-credentials-cache`
+- `env | grep token`
+
+**Cause:** The REFUSE list in `pre-bash-careful.py` only covered git/SQL/rm commands. Token file reads and env variable grep patterns were not covered.
+
+**Fix:** Added blocking for:
+- Direct token file reads (`.gh_token`, `.auth_token`, `.git-credentials-cache`, etc.)
+- `cat` of home-directory token paths (`~/.config/gh_token`, `/home/agent/.gh_token`)
+- `env | grep` for secrets (case-insensitive: token, api_key, secret, auth, password, passwd)
+- Generic credential file extensions in `cat` targets
+- curl/wget credential redirect exfil
+
+Also fixed: `rm -rf .git` check used `"/.git"` string search which never matched. Changed to regex `r"(^|\s)\.git(?:\s|$|/)"`.
+
+**Prevention:** New security-sensitive patterns must be reviewed during plugin review. Add token-exfil test cases to any hook touching credential paths.
+
+---
 
 ---
 
diff --git a/pytest.ini b/pytest.ini
new file mode 100644
index 0000000..7aa90b9
--- /dev/null
+++ b/pytest.ini
@@ -0,0 +1,6 @@
+[pytest]
+testpaths = tests
+python_files = test_*.py
+python_classes = Test*
+python_functions = test_*
+addopts = -v
\ No newline at end of file
diff --git a/tests/__pycache__/test_pre_bash_careful.cpython-311-pytest-9.0.3.pyc b/tests/__pycache__/test_pre_bash_careful.cpython-311-pytest-9.0.3.pyc
new file mode 100644
index 0000000..8edd926
Binary files /dev/null and b/tests/__pycache__/test_pre_bash_careful.cpython-311-pytest-9.0.3.pyc differ
diff --git a/tests/test_pre_bash_careful.py b/tests/test_pre_bash_careful.py
new file mode 100644
index 0000000..7092397
--- /dev/null
+++ b/tests/test_pre_bash_careful.py
@@ -0,0 +1,210 @@
+#!/usr/bin/env python3
+"""Unit tests for pre-bash-careful.py hook."""
+import io
+import json
+import os
+import sys
+import re
+from pathlib import Path
+from unittest import mock
+
+import pytest
+
+sys.path.insert(0, os.path.join(os.path.dirname(__file__), "..", "hooks"))
+
+
+def run_hook(cmd_input):
+    """Simulate PreToolUse:Bash hook invocation."""
+    stdin_data = json.dumps({"tool_input": {"command": cmd_input}})
+    stdout = io.StringIO()
+    stderr = io.StringIO()
+    with mock.patch("sys.stdin", io.StringIO(stdin_data)), \
+         mock.patch("sys.stdout", stdout), \
+         mock.patch("sys.stderr", stderr), \
+         mock.patch("sys.exit", lambda code: None):
+        import importlib.util
+        spec = importlib.util.spec_from_file_location(
+            "careful_mod",
+            os.path.join(os.path.dirname(__file__), "..", "hooks", "pre-bash-careful.py"),
+        )
+        mod = importlib.util.module_from_spec(spec)
+        spec.loader.exec_module(mod)
+        mod.main()
+    return stdout.getvalue(), stderr.getvalue()
+
+
+def parse_denial(output):
+    """Return the permissionDecision from the first denial payload, or None."""
+    if not output.strip():
+        return None
+    try:
+        # Handle multiple JSON lines (hook may emit multiple denials)
+        first_line = output.strip().split("\n")[0]
+        payload = json.loads(first_line)
+        return payload.get("hookSpecificOutput", {}).get("permissionDecision")
+    except json.JSONDecodeError:
+        return None
+
+
+class TestRefuseForcePush:
+    """Existing guard: git push --force to main/master."""
+
+    def test_refuses_git_push_force_to_main(self):
+        output, _ = run_hook("git push --force origin main")
+        assert parse_denial(output) == "deny"
+
+    def test_refuses_git_push_f_to_main(self):
+        output, _ = run_hook("git push -f origin main")
+        assert parse_denial(output) == "deny"
+
+    def test_refuses_git_push_force_to_master(self):
+        output, _ = run_hook("git push --force origin master")
+        assert parse_denial(output) == "deny"
+
+    def test_allows_git_push_force_to_feature_branch(self):
+        output, _ = run_hook("git push --force origin feature/abc")
+        assert parse_denial(output) is None
+
+    def test_allows_normal_git_push(self):
+        output, _ = run_hook("git push origin main")
+        assert parse_denial(output) is None
+
+
+class TestRefuseGitResetHard:
+    """Existing guard: git reset --hard against main."""
+
+    def test_refuses_reset_hard_main(self):
+        output, _ = run_hook("git reset --hard origin/main")
+        assert parse_denial(output) == "deny"
+
+    def test_refuses_reset_hard_space_main(self):
+        output, _ = run_hook("git reset --hard HEAD~3 main")
+        assert parse_denial(output) == "deny"
+
+    def test_allows_reset_hard_on_feature_branch(self):
+        output, _ = run_hook("git reset --hard HEAD~1")
+        assert parse_denial(output) is None
+
+
+class TestRefuseSQLDestructive:
+    """Existing guard: DROP TABLE/DATABASE against non-test schemas."""
+
+    def test_refuses_drop_table_prod(self):
+        output, _ = run_hook("psql -c 'DROP TABLE users;'")
+        assert parse_denial(output) == "deny"
+
+    def test_refuses_drop_database_prod(self):
+        output, _ = run_hook("mysql -e 'DROP DATABASE prod_db'")
+        assert parse_denial(output) == "deny"
+
+    def test_allows_drop_on_test_schema(self):
+        output, _ = run_hook("psql -c 'DROP TABLE users_test;'")
+        assert parse_denial(output) is None
+
+    def test_allows_drop_on_sandbox(self):
+        output, _ = run_hook("mysql -e 'DROP TABLE sandbox_events;'")
+        assert parse_denial(output) is None
+
+
+class TestRefuseRmRf:
+    """Existing guard: rm -rf at root or .git."""
+
+    def test_refuses_rm_rf_root(self):
+        output, _ = run_hook("rm -rf /")
+        assert parse_denial(output) == "deny"
+
+    def test_refuses_rm_rf_home(self):
+        output, _ = run_hook("rm -rf ~")
+        assert parse_denial(output) == "deny"
+
+    def test_refuses_rm_rf_git_dir(self):
+        output, _ = run_hook("rm -rf .git")
+        assert parse_denial(output) == "deny"
+
+    def test_allows_rm_rf_tmp_dir(self):
+        output, _ = run_hook("rm -rf /tmp/scratch-dir")
+        assert parse_denial(output) is None
+
+    def test_allows_rm_rf_node_modules(self):
+        output, _ = run_hook("rm -rf node_modules")
+        assert parse_denial(output) is None
+
+
+class TestTokenExfiltrationBlocking:
+    """OFFSEC-002: token exfiltration patterns must be blocked."""
+
+    def test_refuses_cat_gh_token(self):
+        output, _ = run_hook("cat ~/.gh_token")
+        assert parse_denial(output) == "deny"
+
+    def test_refuses_cat_dot_gh_token(self):
+        output, _ = run_hook("cat .gh_token")
+        assert parse_denial(output) == "deny"
+
+    def test_refuses_cat_git_credentials_cache(self):
+        output, _ = run_hook("cat /tmp/.git-credentials-cache")
+        assert parse_denial(output) == "deny"
+
+    def test_refuses_cat_auth_token(self):
+        output, _ = run_hook("cat .auth_token")
+        assert parse_denial(output) == "deny"
+
+    def test_refuses_cat_molecule_auth_token(self):
+        output, _ = run_hook("cat ~/.molecule/.auth-token")
+        assert parse_denial(output) == "deny"
+
+    def test_refuses_env_grep_token(self):
+        output, _ = run_hook("env | grep token")
+        assert parse_denial(output) == "deny"
+
+    def test_refuses_env_grep_case_insensitive(self):
+        output, _ = run_hook("env | grep -i API_KEY")
+        assert parse_denial(output) == "deny"
+
+    def test_refuses_env_grep_secret(self):
+        output, _ = run_hook("env | grep secret")
+        assert parse_denial(output) == "deny"
+
+    def test_refuses_env_grep_auth(self):
+        output, _ = run_hook("env|grep auth")
+        assert parse_denial(output) == "deny"
+
+    def test_refuses_env_grep_password(self):
+        output, _ = run_hook("env | grep password")
+        assert parse_denial(output) == "deny"
+
+    def test_refuses_cat_credential_file_extensions(self):
+        output, _ = run_hook("cat /secrets/auth_token")
+        assert parse_denial(output) == "deny"
+
+    def test_refuses_cat_tilde_token_path(self):
+        output, _ = run_hook("cat ~/.config/gh_token")
+        assert parse_denial(output) == "deny"
+
+    def test_refuses_cat_home_token_path(self):
+        output, _ = run_hook("cat /home/agent/.gh_token")
+        assert parse_denial(output) == "deny"
+
+    def test_allows_normal_env_without_grep(self):
+        output, _ = run_hook("env | head")
+        assert parse_denial(output) is None
+
+    def test_allows_reading_nontoken_files(self):
+        output, _ = run_hook("cat README.md")
+        assert parse_denial(output) is None
+
+    def test_allows_grep_for_nonsecret_things(self):
+        output, _ = run_hook("env | grep PATH")
+        assert parse_denial(output) is None
+
+
+class TestWarnList:
+    """WARN list: agent is notified but command proceeds."""
+
+    def test_warns_force_with_lease(self, capsys):
+        output, _ = run_hook("git push --force-with-lease origin feature/x")
+        assert parse_denial(output) is None  # not denied
+
+    def test_warns_closing_pr(self, capsys):
+        output, _ = run_hook("gh pr close 123")
+        assert parse_denial(output) is None  # not denied
\ No newline at end of file