Three men concocted an elaborate, yearslong scheme that defrauded companies of at least $129 million by using AI to impersonate executives and lawyers, tricking targeted victims into transferring large payments to criminal-controlled accounts, the Justice Department said Thursday.

Jacob Soall, Sharon Hazan and Guy Sheetrit allegedly used AI to impersonate the voices and images of chief executive officers at companies and lawyers at major international law firms. The trio are accused of targeting thousands of victims between July 2024 and February 2026, according to court records.

Victims include a U.K.-based financial tech company that lost almost $11.6 million, a Florida-based pet food company that lost $5.2 million, a Missouri-based hospital system that lost $4.8 million, a Massachusetts-based mutual fund company that lost $4.6 million, a California-based hospital system that lost nearly $3 million, a New York-based investment company duped out of $2.8 million, and a Rhode Island-based bank that transferred nearly $2.7 million.

The trio’s scheme typically started by targeting accounting staff, pretending to be the CEO, and requesting help on a financial transaction, officials said. Using AI to create deepfakes pretending to be CEOs, the crew allegedly directed employees to contact attorneys who they would also impersonate to trick the employee into thinking the financial transaction was legitimate.

Prosecutors said the men and their co-conspirators identified and targeted employees who had sufficient authority to authorize large wire transfers. 

The scheme typically began with an email from an e-signature company, wherein the impersonated CEO claimed they were working on a “confidential financial transaction” that required the victim employee to sign a non-disclosure agreement before contacting the purported attorney at a victim law firm, according to an unsealed indictment.

Soall, Hazan, Sheetrit and their co-conspirators allegedly impersonated attorneys at some of the 50 largest law firms globally. 

“Super intelligence technology offers tremendous potential, but the public should recognize that there are some who seek to use this emerging technology to pursue criminal goals,” Jamie McDonald, U.S. attorney for the Southern District of New York, said in a statement. 

Prosecutors said the wire transfers were sent to bank accounts controlled by co-conspirators around the world, including the United States, Spain, Portugal, Greece, the United Arab Emirates, Singapore, Austria, Slovakia and China. The crew allegedly converted the funds to cryptocurrency and distributed the illicit proceeds amongst themselves and their co-conspirators.

Soall, a 41-year-old from Marbella, Spain, was arrested in Spain on June 17. He allegedly primarily impersonated attorneys from the United Kingdom, reading from a handwritten script designed to dupe targeted victims.

Hazan, a 54-year-old from Israel, was arrested in Spain on Aug. 5. He allegedly boasted that he had been laundering money since 1994, including more than $400 million in the past three years, and was previously convicted in the Southern District of New York of conspiracy to commit bank fraud in 2008.

Sheetrit, a 42-year-old from Israel and the United Arab Emirates, was arrested in the United Kingdom on Sept. 7 and allegedly laundered funds from the scheme.

The trio are charged with conspiracy to commit wire fraud, wire fraud, two counts of aggravated identity theft, money laundering conspiracy and two counts of money laundering. The seven counts carry a maximum sentence of 104 years in prison.

“The alleged scheme orchestrated by Soall, Hazan, and Sheetrit demonstrates how the use of advanced technology can be exploited to commit large scale fraud,” James C. Barnacle Jr., assistant director in charge of the FBI New York field office, said in a statement.

“As criminals continue to weaponize emerging technologies, the FBI remains committed to rapidly adapting our capabilities to identify, investigate, and disrupt those who seek to harm New Yorkers and businesses operating in our communities.”

After initial publication of this story, Sheetrit’s attorneys, Sharon Nahari and Shay Shorer, emailed a statement to CyberScoop saying their client “has no connection to this matter and has had no involvement in it whatsoever.”

“Mr. Sheetrit is a businessman with extensive expertise and professional experience in cybersecurity and technology,” wrote Nahari and Shorer. “In the course of his work, he provides professional advisory services to a range of clients. Working in cybersecurity, possessing specialist expertise or providing advisory services cannot, in themselves, establish complicity in or involvement in the alleged conduct.”

“Our client maintains his complete innocence and, like everyone else, is entitled to the presumption of innocence,” the statement continued. “We are confident that, once the facts have been established and the evidence fully examined, it will become clear that there is no basis for holding him criminally responsible.”

UPDATE: Nov. 6, 2026; 8:25 p.m.: This story has been updated to include a statement from attorneys representing Guy Sheetrit.

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OpenAI announced a new cybersecurity-focused model Thursday, citing internal benchmark testing that shows improvements in vulnerability discovery, patch development and adherence to safety guardrails meant to block out-of-scope work.

GPT-6 Cyber will first be available to a limited number of customers in OpenAI’s Daybreak Red program, which uses more advanced or nonpublic cybersecurity models for offensive red teaming.

As a preview of the model’s capabilities, OpenAI officials said GPT-6 has found at least 81 “novel” vulnerabilities in the Firefox web browser, developed exploits for 948 Linux kernel vulnerabilities and was able to develop and validate a critical remote code execution vulnerability in Brotli, a popular open-source data compression tool. All the vulnerabilities were reported to owners and patched.

OpenAI officials told reporters Wednesday that the new safeguards include additional identity and account security requirements, more frequent check-ins from the model to OpenAI when a request is made to perform high-risk behaviors, and additional monitoring for “misalignment” or rule-breaking.

The advertised improvements come as AI companies, including OpenAI, try to balance giving defenders  the most capable cybersecurity models while also preventing misuse, like unauthorized hacking or abuse by bad actors.

Eric Wallace, a researcher at OpenAI who focuses on training, evaluation and sandboxing for new models, said part of the training for GPT-6 Cyber included a simulated evaluation meant to mimic the Hugging Face incident, where the company’s models escaped internal sandbox testing environments and hacked into part of a major online AI code repository.  

“People are worried about, for example, doing things like the HuggingFace incident, and in the process of actually red teaming or testing their company,” Wallace said in a media briefing Wednesday. “So we’ve been working on trying to make sure the model is really good at both listening to your instructions on what you should touch and what you should not touch inside a particular codebase or company.”

Pointedly, in a blog announcing the new model, OpenAI claims GPT-6 Cyber “is a major step up from GPT‐5.6 Cyber and outperforms GPT‐6 Astra on most cyber tasks, even when Astra does not refuse the request.”

Wallace said since the summer, when OpenAI’s 5.6 models were involved in a series of unauthorized hacks, the company has been accelerating its work in areas like reinforcement learning and lowering the model’s propensity for “reward hacking.”

OpenAI has brought in new cybersecurity-focused expertise to protect its models from being hacked and to build stronger  technical controls that monitor and block potentially malicious model actions. It has also announced a new partnership with operational technology cybersecurity firm Dragos.

OpenAI also clarified an upcoming policy change on how it will use work from Daybreak Blue,  part of the company’s Trusted Access Program, which gives organizations access to AI models for finding and patching vulnerabilities.

Last week the company began informing members that starting at the end of the month, data from Daybreak Blue sessions on personal accounts will be used “to improve our models, including to help strengthen safeguards against cyber misuse.” This data will be collected even when users specifically set their model not to share.

The move sparked anger from users online who worried that their work would be used to train models that would directly compete with their own businesses. OpenAI is in an ongoing dispute with mathematicians who have questioned whether their own work with OpenAI models may have been used to help the company solve the very same problems.

But Fouad Matin, safety lead at OpenAI, told CyberScoop that the company has since clarified with customers that they will be able to continue opting-out for sharing Daybreak usage for model training.

Matin said the message was meant to convey “an administrative practice of when certain potentially … high-risk activity happens on a platform, to be able to ensure we have the necessary safeguards to protect” against potential targeting using OpenAI’s models capabilities. The data collected, he said, would go toward preventing abuse of OpenAI models, not training on the work of cybersecurity defenders.

“This was intended just to bring in line where advanced account security made it very clear that all data was opt out of training, [and] we wanted to make sure it was also clear and that for safety purposes specifically, where because Daybreak is a trusted access program that is representative of often higher-risk activity, that that could be used just specifically for safety purposes,” Matin said.

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One of the biggest questions I get whenever I’m teaching anything focused on core skills—whether it’s network security, SOC analysis, or ecurity essentials—is whether any of these classes are even necessary anymore because of AI.

The assumption seems to be that AI is going to eliminate the need for foundational knowledge. People believe that AI will simply handle the technical details for us, allowing security professionals to skip over the basics and move directly to the advanced work.

Unfortunately, that assumption creates a sense of hopelessness.

Junior analysts who are trying to enter the field start wondering whether it’s worth studying at all. Companies looking to hire are hesitant because they’re not sure what the workforce will look like in a few years. Everyone is waiting to see where things land.

Context Is Everything

When it comes to core information security skills, I believe we need to recognize something important:

The fundamentals matter more today than they ever have.

The reason is context.

The more context and understanding you have about a technical problem, the more effective AI becomes. Artificial intelligence is not a replacement for expertise. It amplifies expertise.

If you put AI in the hands of someone who doesn’t understand networking, operating systems, or security fundamentals, the impact is often limited. They may get answers faster, but they have no way to evaluate whether those answers are correct.

Put the same tools in the hands of someone who understands TCP/IP, operating systems, network architecture, authentication, and how systems actually work, and AI becomes an incredible force multiplier.

As we move into the future, it will become even more important for security professionals to understand the basics. Those foundational skills provide the context necessary to ask better questions, recognize bad answers, and effectively leverage increasingly powerful AI tools.

What Chess Can Teach Us

I also think we can look at chess as a preview of where our industry is heading.

Chess is more popular today than it has ever been. There are more strong chess players than at any other point in history. At the same time, AI engines can defeat even the world’s best players without breaking a sweat.

So why hasn’t AI killed chess?

Because the chess community embraced it.

Players use AI engines like Stockfish to analyze games, identify mistakes, study openings, improve endgame strategy, and accelerate learning. Tournament organizers use AI to help detect cheating. Coaches use AI to provide insights that would have been impossible to deliver at scale just a few decades ago.

The result isn’t fewer chess players. In fact, it is the opposite. The other result is better chess players.

Where Cybersecurity Is Heading

I believe cybersecurity is heading down a very similar path.

AI will help us learn faster. It will help us identify patterns more quickly. It will help us automate repetitive work and explore technical problems at a scale that wasn’t previously possible.

But none of that eliminates the need for foundational knowledge.

In fact, it increases its importance.

The people who understand the fundamentals will be the ones who get the most value from AI. They’ll be able to guide it, challenge it, verify it, and use it to solve increasingly complex problems.

The future of cybersecurity isn’t humans versus AI.

It’s humans with strong fundamentals using AI to become dramatically more effective than ever before.

Check out John’s Antisyphon courses (including Pay-What-You-Can options!) here:

antisyphontraining.com/instructor/john-strand/

Democrats’ big win on Election Day, which saw them take control of both the House and Senate, has ramifications for the Cybersecurity and Infrastructure Security Agency, artificial intelligence, surveillance policy and much more.

Here’s what lawmakers and cybersecurity experts have to say about the short-term and long-term prospects on Capitol Hill.

Leadership plans ahead

Maggie Hassan, D-N.H. is in line to take the gavel on the Senate Homeland Security and Governmental Affairs Committee, with Sen. Gary Peters, Mich., retiring.

“Our government’s number one job is to keep people safe, and the Senate Homeland Security and Governmental Affairs Committee must work to ensure that our country remains safe, secure and free from all kinds of threats,” Hassan said in a statement to CyberScoop. “That work involves protecting against terrorism and fentanyl trafficking, but it also includes guarding against emerging threats like artificial intelligence security risks and strengthening our cybersecurity.”

“The Trump-Vance administration has undermined our security on these fronts, including by diverting resources away from combatting fentanyl trafficking and gutting CISA,” she continued. “We need to reverse these cuts, confront these challenges and put public safety first.”

Rep. Bennie Thompson, D-Miss., is poised to return once again as chair of the House Homeland Security Committee, said Democrats are taking over at a “pivotal time for CISA,” with it looking to add staff after cutting back by nearly one-third.

“First and foremost, we will aim to work with CISA to expedite its critical re-staffing effort and to ensure it has the expertise necessary to support stakeholders as they defend against the scale and velocity of AI-enabled cyber-attacks,” he said in a statement to CyberScoop. “Advances in AI can help defenders, but it will also accelerate the consequences of deferred investments in security and CISA must be well-positioned to help critical infrastructure owners and operators rapidly improve their cybersecurity posture.”

“We will prioritize getting resources straight into the hands for defenders — by extending the State and Local Cybersecurity Grant Program and improving support of under-resourced sectors, especially water,” he continued. “We will work to ensure CISA re-establishes its cross-sector coordination capacity, which was diminished when the Trump administration- terminated CIPAC, by making sure the Anchor-CI is eventually up and running and meets the needs of stakeholders. Finally, we will make sure CISA is well-positioned to support the secure development and deployment of AI.”

What happens in the lame-duck session

Before the GOP relinquishes control of the House and Senate to Democrats, though, there’s a lame-duck session ahead. 

Long-term renewal of the Cybersecurity Information Sharing Act of 2015 (CISA 2015) is a bipartisan and industry priority, with it set to expire Dec. 11. Current Senate Homeland Security and Governmental Affairs Chairman Rand Paul, R-Ky., has been the biggest obstacle to reauthorization, but he could get “rolled” by GOP leadership on an extension, said Michael Garcia, a former government cyber official and vice president of the cybersecurity practice at Monument Advocacy. Possible vehicles for CISA 2015 to hitch a ride include an omnibus funding bill or the annual defense policy bill.

The Department of Homeland Security, and its subagency CISA, are currently operating on a continuing resolution that’s also set to expire Dec. 11, where lawmakers could temporarily extend CISA 2015 if a long-term solution can’t be reached in the lame duck. Another continuing resolution before Dec. 11 in lieu of an omnibus spending bill is an option for the lame duck. Both a CR and omnibus spending bill would theoretically include DHS funding, although the agency’s funding has been made more difficult in the past by the presence of Immigration and Customs Enforcement within the department.

Republicans have talked about wanting to get the fiscal 2027 National Defense Authorization Act done in the lame duck. Besides the possibilities of CISA 2015 being included in the bill, Nicholas Leiserson, senior vice president for policy at the Institute for Security and Technology, said the Senate version of the legislation has a pair of very noteworthy cyber provisions: a “very broad” authorization for contractor-owned, contractor-operated offensive cyber operations, and a requirement that every artificial intelligence product sold to the Defense Department have an AI bill of materials.   

Additional leadership shuffle

While Paul is losing his gavel, he’s shown he can be a disruptive force on passing cybersecurity legislation through the Senate in the minority. That makes what he does next possibly determinative for cyber bills, Leiserson and Garcia said. “If he leaves HSGAC, let a thousand cyber bills flourish!” Garia quipped on social media. Paul could opt to become the top Republican on the Senate Health, Education, Labor and Pensions Committee instead of HSGAC.

Nebraska Sen. James Lankford would take over for Paul as top HSGAC Republican in that scenario, and an industry source said he’s viewed as a supporter of CISA 2015.

On Senate Intelligence, the panel’s leadership goes to a lawmaker who has placed a big emphasis on cybersecurity in his congressional career: Mark Warner, D-Va. 

On the House side, while Rep. Andrew Garbarino, R-N.Y., moves to the minority on the Homeland Security panel, he has proven willing to collaborate with Democrats on cybersecurity issues. Rep. Delia Ramirez, D-Ill., is poised to take the gavel of the panel’s cybersecurity subcommittee, and Rep. Vince Fong, R-of California looks set to become the subcommittee’s top Republican and has his own history of bipartisanship. Fong would replace current subcommittee chair Andy Ogles, the far-right Tennessee Republican who lost in the primaries.

One thing to watch in the House, Leiserson said, is how the House looks to tackle AI — through existing committees, a select committee or some other structure. Democrats haven’t put forward a unified front on AI guardrails yet.

With AI models uncovering as many vulnerabilities as they are, “highly capable frontier models are going to drive a lot of discussion” about AI and cybersecurity, said Craig Albright, the Business Software Alliance’s senior vice president for U.S. government relations.

Appropriations, oversight, legislation

If the NDAA or a CISA 2015 extension don’t pass in the lame duck, they’d be priorities in 2027, too.

“CISA 2015 has to happen, and if we can’t get it done, then we can’t move to the next thing,”  said Henry Young, BSA’s policy director. “Once we get it done, there’s an open question about which of these priorities that we’ve talked about gets to be number one. Is it post-quantum cryptography? Is it government IT modernization? Is it frontier AI cybersecurity systems? We don’t know that yet, and we can’t know until we pass this law.”

How damaged the agency CISA is by Trump administration’s budget cuts is something Democrats are expected to scrutinize closely. Another top budget issue is what to do with the expired State and Local Cybersecurity Grants Program housed at DHS, since even if it’s reauthorized, it will require appropriators taking steps to invest in it.

Democrats could take a look at a variety of other Trump administration changes at DHS and CISA, on topics like election security, the Cyber Safety Review Board, the Joint Cyber Defense Collaborative and more. 

More broadly, Leiserson said an area of Democratic cyber oversight is likely to be the Department of Government Efficiency that cut cyber personnel at agencies at and beyond CISA, and “particularly the integrity of systems that DOGE touched when they were given very high privileged access to federal systems.”

If the White House puts forward a permanent nominee for director of CISA, Democrats would be poised to vet that person. They also would have a say in who leads the Office of the National Cyber Director, should the incumbent, Sean Cairncross, depart.

So far, Democrats haven’t put forward a unified posture on expired surveillance authorities known as Section 702, although both Warner and incoming House Intelligence Chairman Jim Himes, D-Conn., have fought in the past for its renewal. The surveillance program is operating similarly still due to a court order, but that order only lasts through next spring.

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Two Canadian men broke into the networks of multiple U.S. universities, stole credentials and implanted malware on compromised computers to commandeer processing power for a cryptocurrency mining operation, the Justice Department said.

Ryan James Roach and Mathiew James Stubbings allegedly compromised the networks of at least four universities in New York, Tennessee, North Carolina and Massachusetts between mid 2016 and late 2019, according to an unsealed indictment. 

Roach, a 35-year-old from Saskatchewan, Canada, was extradited to the United States on Oct. 28 and arraigned Tuesday in the U.S. District Court for the Western District of New York. Prosecutors said they are still seeking the extradition of Stubbings, a 41-year-old from Ontario, Canada.

A grand jury previously indicted the Canadian nationals in April 2022. The men are charged with multiple cybercrimes and face up to 10 years in prison and up to a $250,000 fine, if convicted.

Prosecutors accuse the men of researching and identifying potential victims with supercomputers containing vulnerabilities they could exploit. The men breached networks and deployed malware on compromised machines to take over systems, officials said. 

Roach and Stubbings allegedly rented virtual private servers based in Europe and the United States under false identities to conceal traffic, deploy rootkits, steal credentials and data, and transmit cryptocurrency mining software to compromised computers.

“The defendants caused at least one supercomputer to mine cryptocurrency on their behalf, which caused much of the supercomputer’s processing speed and power to become unavailable to its legitimate owner,” prosecutors wrote in the indictment.

Officials didn’t say how much cryptocurrency the pair allegedly mined for financial gain as part of the conspiracy.

If convicted, Roach and Stubbings are also ordered to forfeit an assortment of networking and data storage devices, and any property or proceeds obtained through the alleged crime spree.

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Authorities arrested seven people allegedly involved in an investment fraud scheme that claimed potential victims in more than 50 countries, Europol said Tuesday. Officials said the operation caused estimated losses of at least $4.5 million. 

The takedown effort involved searches across 17 countries Tuesday and netted the seizure of more than 100 servers, according to Europol.

Officials targeted the scheme run by a company that allegedly provided cybercrime groups a series of trading websites and an assortment of call centers tasked with tricking victims into transferring their savings. 

The company, operated from Cyprus and Israel, was linked to call centers in Albania, Kosovo and North Macedonia, officials said. 

“The scheme promised substantial, quick returns from trading in cryptocurrencies, foreign currencies or stocks,” Europol wrote in a news release. “Behind seemingly legitimate platforms, supposed brokers used fictitious profits and sustained psychological pressure to persuade victims to invest more.”

The investment scam’s operators used affiliate marketing to target potential victims with advertisements that led them to fraudulent investment platforms. Cybercrime groups running the call centers purchased data collected through those ads to contact potential victims, officials said.

Operators duped victims by displaying fictitious profits and pressured victims to transfer large sums of money. “When victims asked to withdraw their money, the operators used delaying tactics to block payments. Eventually, contact ceased, leaving victims unable to recover their funds,” Europol wrote. 

Authorities were tipped off to the investment scam in 2022 when a German couple reported they couldn’t withdraw funds invested in an online trading platform. Authorities arrested two people allegedly involved in the scheme that year and seized evidence that eventually led to further arrests and seizures in 2025.

The joint investigation and takedown effort was supported by officials in Albania, Cyprus, Finland, Germany, Israel, Kosovo, North Macedonia and Poland. The seven people arrested Tuesday, who were not identified, are facing extradition to Germany to face charges, Europol said.

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Early reports of ballot scanner malfunctions in Westchester County, New York are a sign of the challenges election officials will face in the current online information environment as voters head to the polls Tuesday on the final day of voting.

While such equipment failures and breakdowns are not uncommon and happen in a small number of precincts every election cycle, and there is no evidence of foul play, conspiracists quickly jumped on the news.

According to Kate Starbird, a professor at the University of Washington who researches online rumors and disinformation tied to elections, the rumors are already spreading within right-wing online circles as evidence of election malfeasance.

Starbird cited metrics showing that posts on X about the scanner malfunctions grew to as many as 100 a minute in the hours after the news was reported, with established election deniers, such as The Gateway Pundit, amplifying conspiracist framings.

The Westchester County Board of Elections said the problems appear related to some ballots being too thick for the machines to accept, leading to rejections. Voters with affected ballots were told to place them in designated orange emergency ballot bags that will be secured, monitored and counted by officials in compliance with election laws.

“The Board of Elections is in constant communication with New York State officials, Westchester County Government and poll workers to address this issue and ensure that voting continues with as little disruption as possible,” the board wrote in a statement. “In the meantime, voters should continue to complete their paper ballots as instructed by poll workers.”

New York Attorney General Letitia James said her office was also monitoring the situation and “is in touch with the state and local Boards of Elections as they work on a solution.”

“Westchester voters can still safely fill out and turn in their ballots at their polling locations,” James wrote on X. “Your votes will count.”

Westchester County is where many votes in the NY-17 congressional race will be cast between Republican incumbent Mike Lawler and Democratic Party nominee Cait Conley. Conley previously served as the election security lead for the Cybersecurity and Infrastructure Security Agency under the Biden administration.

Lawler sought to assure his supporters that the affected ballots will be transported by police escorts to a central location at the board of elections and will not be opened at the polling site.

“I want to be clear: there’s no shenanigans going on here,” Lawler said in a news conference Tuesday.

Meanwhile, the Department of Justice issued a news release announcing charges against 63 individuals, many of them lawful permanent residents who have lived in the U.S. for decades and some who later became naturalized citizens with legal voting rights, for allegedly voting as noncitizens in a past election.

The charges are part of a flurry of last-minute actions by the Trump administration to promote the specter of widespread noncitizen voting. The administration also brought lawsuits against states, like California and Alaska, in the past week that have sought to influence how ballots are treated and counted in the upcoming Senate races. Federal courts, including the U.S. Supreme Court, have thrown them out while reiterating the executive branch has no constitutional or legal role in the administration of state-run elections.

Another federal court ordered the Justice Department and the Department of Homeland Security to stop sending lists of “potential noncitizen” voters to states, after Trump administration lawyers acknowledged in court that the data they rely on for those assertions has a “high” error rate.

Nevertheless, the department continued its aggressive posture, announcing Tuesday that it would be deploying 1,000 election monitors to precincts across all 50 states.

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Google and an assortment of partners shut down a botnet that an approved Android device manufacturer purposefully deployed across more than 1.3 million TV set-top boxes, the company said Monday. 

Videostrong Technology Co., a China-based Android original equipment and device manufacturer, implanted a backdoor into multiple devices it sold. Those backdoors established XCPE, an expansive botnet that cybercriminals used to conduct ad fraud, steal data and route malicious traffic through residential proxy networks, according to a Google Threat Intelligence Group report.

Google took legal action to shut down the domains and servers Videostrong used to control the botnet. The company also took down command-and-control domains that more than a dozen malware families ran as modules through the XCPE backdoor, claiming it disrupted access to at least 10 million additional compromised devices from various manufacturers.

Videostrong sold Android devices with pre-installed malware for years, slipping by Google’s security tests by loading the malicious code after the device’s first boot. “The XCPE operators constantly evolved its configurations to evade Google’s pre and post-launch detections,” Charley Snyder, head of disruption operations at GTIG, told CyberScoop.

Snyder declined to say when or how Google first became aware of the approved vendor running a botnet on Android-powered devices. 

“We found this malicious software built directly into many different device models and brands over multiple years, supported by dedicated infrastructure and constantly evolving configurations to evade detection and manage their affiliates,” Google researchers wrote in the report. “We believe this campaign wasn’t an isolated rogue insider or a development oversight.”

Google banned Videostrong and any future subsidiaries from building or selling certified Android devices, and said it changed its review process to detect and stop similar activities in the future. Yet, Snyder said the company isn’t sharing specifics on these changes because it doesn’t want to provide threat actors insights that might help them circumvent these additional protections.

Most of the devices comprising the XCPE botnet were Android TV set-top boxes, but researchers also observed infected Android-based telehealth devices, karaoke machines and digital signs. 

“Without users’ knowledge or consent, infected devices were offered as a distribution mechanism for a wide array of criminal actors,” researchers wrote in the report. “This led to a variety of malicious activities being conducted on and through the devices, including ad-fraud, data exfiltration, and routing malicious network traffic through the devices.”

The botnet spanned more than 170 countries, with the largest concentration of infected devices based in Malaysia, Brazil, Iraq, Mexico and Taiwan, according to TrendAI researchers. Nearly 44,000 infected devices were based in the United States between June and October.

Google also partnered with Japan’s National Police Agency, Lumen Technologies, Human Security, Plume and Synthient to study and disrupt the botnet. 

The company said the dismantling of XCPE “seriously impacted over a dozen malicious actors,” yet it warned that the underlying market for backdoors, ad fraud and residential proxy networks are resilient and operating as an interconnected supply chain.

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A federal judge dismissed a lawsuit from the federal government seeking to preemptively block Democratic Senate candidate Mary Peltola from assuming office if she wins her race.

The Department of Justice sued Alaska last month, arguing that an alleged scheme by Peltola to recruit Daniel J. Sullivan, an independent candidate who shares a name with incumbent Republican Sen. Dan S. Sullivan, would confuse voters.

Peltola’s campaign, the Democratic Senate Campaign Committee and civic groups including the League of Women Voters of Alaska and Common Cause all filed motions to dismiss the lawsuit, arguing the federal government lacks standing and constitutional authority to weigh in on Alaska’s elections.

They also said the court cannot grant relief because there is no legal way to determine whether a voter mistakenly voted for one Sullivan over the other without violating the secret ballot.

U.S. District Judge Sharon Gleason reached the same conclusion, noting in an order “the absence of any explanation from the United States as to how its requested relief could redress its alleged injury while simultaneously maintaining the secrecy of the ballot.” She also wrote that she “cannot grant the United States the relief it seeks because the United States has failed to establish the redressability prerequisite for Article III standing.”

Gleason’s opinion recounts Daniel J. Sullivan’s independent candidacy. Alaska Director of Elections Carol Beecher decertified it in June, later testifying that she did not believe he was running in good faith. State courts disagreed and restored his candidacy, and the Alaska Supreme Court upheld that ruling. 

Alaskan election officials still took steps to distinguish the two candidates, listing their full names and labeling them “Incumbent,” “Republican candidate” and “Independent.” Alaska’s ranked-choice system lets voters rank both Sullivans, so they are not limited to a single candidate.

State officials and election experts also noted that nearly 60,000 Alaskan voters have already cast early or mail ballots, and there is no feasible way to reissue them.

The government’s one-sentence response said the state could segregate ballots and asked the court to allow a federal investigation into whether any voters were deceived. Gleason rejected that approach, saying the government offered no explanation of how ballot segregation or a law enforcement inquiry into voters’ intent could be carried out while preserving ballot secrecy.

Gleason also questioned the government’s constitutional basis, writing that the executive branch has no legitimate role in determining which candidates appear on Alaska’s ballots. The government said it was not seeking to change the time, place or manner of the election, but Gleason noted that its requests, including limits on certification, ballot segregation and an investigation of voters’ intent, all concern those matters, which are the state’s responsibility.

The lawsuit drew heavy media attention and concern from democracy advocates, but legal experts widely viewed it as exceptionally weak.

“Today’s ruling marks a victory for Alaska state sovereignty and Alaskan voters,” said David Becker, executive director of the nonprofit Center for Election Innovation and Research and a former voting rights attorney at DOJ. “By soundly rejecting the administration’s unlawful and now unsuccessful attempt to interfere, the court concurred with the State of Alaska that this is purely a matter of state law and that, under the U.S. Constitution, the federal government has no role in determining how Alaska certifies its Senate election.”

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A China state-backed threat group is using ARTEX, the automated agentic AI penetration testing framework, to achieve remarkable speed, scale and success in a campaign that already compromised about 140 sensitive targets in 11 days, according to CrowdStrike. 

The threat group, which CrowdStrike tracks as Vapor Panda, targeted more than 200 organizations in at least 14 countries since Oct. 17, the security company said in a threat report Thursday. Targets and confirmed victims include foreign ministries, a European country’s presidency and prime minister’s office, defense and intelligence agencies; 19 U.S.-based organizations in the pharmaceutical, semiconductor, defense, nuclear and financial sectors; and telecom providers in the United States, Belgium and the Philippines. 

CrowdStrike told CyberScoop about 70% of Vapor Panda’s targets were confirmed compromised or had evidence indicating moderate confidence of a successful intrusion. 

Vapor Panda’s use of ARTEX, paired with DeepSeek, allowed it to accomplish more tasks with shocking speed — requests occurring as often as every 10 seconds — and pursue multiple attack paths concurrently. 

“This is the first time that we’re seeing an agentic adversary nation-state threat actor at this scale, and I think that this is probably, unfortunately, something we’ll see more of,” Adam Meyers, senior vice president of counter adversary operations at CrowdStrike, told CyberScoop.

Hands-on-keyboard activity tracked by CrowdStrike for the past 15 years typically involved up to 40 commands per hour. “Now, with ARTEX, we could see it exceed 1,500 commands an hour,” Meyers said.

“If you diversify that across 200 targets, it costs them very little to run a mass-exploitation campaign and drop a websell,” he added. “They can hit more targets in a faster period of time.”

Vapor Panda’s broad-access campaign, which remains active, has targeted think tanks and government agencies spanning defense, justice, finance and diplomacy.

“I would characterize it as a diverse operational mission that tends to focus on sectors and geographies that Beijing considers economically or politically important,” Meyers said.

The active campaign attributed to Vapor Panda is separate from the ARTEX activity Microsoft Threat Intelligence attributed to Storm-0940 earlier this month, including a supply-chain attack targeting ConnectWise customers. 

Adversarial use of AI is relatively new, yet also quickly becoming the new normal, Meyers said. “We’re scrambling because we’re seeing so many of these agentic adversaries.”

Agentic AI use for malicious purposes is growing month-over-month at a rate of almost threefold. CrowdStrike observed roughly 45 agentic adversary attacks in September and it’s already at 126 for October, and climbing.

Adversarial use of agentic AI isn’t an intractable problem, but rather another reminder that organizations need visibility into their endpoints, identities and cross-domain capabilities, Meyers said. 

These attacks aren’t showcasing anything new, “it’s just doing it at a speed and scale that we’re unaccustomed to,” he said. “It’s not hopeless, but you’ve got to take action. You can’t put your head in the sand.”

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The Trump administration is taking direct aim at California state election officials, issuing grand jury subpoenas to election offices statewide ahead of the final day of voting on Nov. 3.

The investigations, first reported by Bloomberg, center on alleged administration of illegal voting. They are ostensibly tied to demands by the U.S. Justice Department that California and other states use federal voter lists to determine whether a voter is a “potential noncitizen” and should be removed.

The Los Angeles County Registrar of Voters told CyberScoop it received multiple grand jury subpoenas last week related to the investigation. The office called the federal efforts an attempt to intimidate California election officials into accepting federal supremacy over state voter registration authority.

“At every step, the U.S. Department of Justice has taken a confrontational, adversarial approach,” said Los Angeles County Registrar Dean Logan in a statement. “Election officials are acting in accordance with state and federal law. Clear court rulings at both the U.S. District Court level and the Court of Appeals have confirmed that. Threats and intimidation have no place in elections. We will take whatever steps necessary to ensure the safety of our employees and to remain focused on serving the voters of Los Angeles County so they can exercise their voting franchise.”

California Secretary of State Shirley Weber, also reportedly a target of the federal probe, did not respond to a request for comment from CyberScoop.

One California election official, Clint Curtis, the outgoing registrar of voters in Shasta County, endorsed the federal government’s efforts to remove 20,000 voters from California voter rolls. Curtis, whose term ends in January, was previously part of a failed effort to hire Tina Peters, a felon and former Mesa County, Colorado, election clerk to help with the upcoming midterms. Curtis has long believed in widespread election fraud.

He told CyberScoop earlier this year that he believed Shasta County elections in 2024 were plagued by suspicious mail-in ballots, saying they looked, felt and “smelled” different from normal mail ballots.

The U.S. Constitution gives states the authority to administer elections and Congress the power to make election laws, something courts have repeatedly upheld in dozens of legal challenges by the Trump administration.

The Department of Justice has claimed there are at least 20,000 such potential noncitizens on California’s voter lists, while the Department of Homeland Security told CyberScoop the figure could be as many as 190,000. The administration’s data, drawn from public voter lists, federal databases and commercially purchased personal information, has been repeatedly criticized by election officials, voting experts and federal courts as inaccurate and unreliable for determining voter eligibility.

Most people identified as “potential noncitizens” turn out to be naturalized citizens who have since gained voting rights, or the result of state administrative errors that mistakenly registered a small number of ineligible voters. Many of those mistakenly registered never cast a ballot.

State officials have had to defend against attempts at federal coercion as well as third-party activists who are constantly testing and probing election procedures nationwide, sometimes without understanding the laws election officials must follow to verify voters.

On Wednesday, the Hennepin County Attorney’s Office in Minnesota announced felony charges against a pair of right-wing provocateurs, James O’Keefe and Cam Higby, for unlawful voting and identity theft. According to a statement from Hennepin County Attorney Mary Moriarty, the two showed up at various election offices, provided false identities of real voters to election judges, violating state laws against misrepresenting their identity in applying for a ballot.

“Elections are the bedrock of democracy and their protection is one of our highest priorities. Individuals engaging in unlawful conduct related to our elections will be held accountable,” said Moriarty. “Our office has had regular meetings with Hennepin County Elections staff in preparation for both the primary and the general elections this year and we are fully prepared.”

Voting rights and civil society groups are also executing short- and long-term plans to combat potential voter disenfranchisement ahead of Tuesday.

Jessica Ayoub, deputy political director for the Michigan American Civil Liberties Union, said her organization has “never been more prepared” for any expected fights with the federal government or local officials seeking to disenfranchise voters, saying they first began planning for different scenarios 18 months ago, cultivating relationships with hundreds of clerks and election staff across Michigan.

“We’ve gamed out 25 potential scenarios and have rapid response strategies that we’ll deploy to ensure our elections are protected and that our democracy remains intact,” said Ayoub, who cited a desire not to publicize further details ahead of next month.

On Friday, voting rights groups filed a new lawsuit against the Department of Justice and Department of Homeland Security in California, seeking to block the federal government’s efforts against state election officials.

The groups are asking a judge to declare that the federal government has exceeded its constitutional authority and that state officials are legally carrying out their duties. They also want the court to force the departments to contact all California election officials who received subpoenas and tell them the investigation has halted due to a court order.

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A defense contractor with top secret security clearance pleaded guilty to aiding North Korea’s remote worker scheme by allowing co-conspirators to use his identity to apply for jobs, including positions with national security implications, the Justice Department said Wednesday. 

John Allen Kurrle Jr. participated in a short-lived but prolific conspiracy that spanned at least 88 job applications at U.S.-based companies, resulting in nine job offers, according to court records.

The 62-year-old allowed co-conspirators to use his identity and government clearance for prospective sensitive work, often with U.S. government contractors. The nine job offers Kurrle’s co-conspirators received between June and October 2025 had annual salary ranges of $120,000 to $190,000.

The scheme had a limited success rate. The longest and most lucrative job a co-conspirator landed under Kurrle’s identity lasted about three weeks, netting a total pay of $4,800.

His identity was also used to gain employment as a software engineer at a Ventura, California-based company to work on a generative AI project for a component of the U.S. military. The company sent a laptop to Kurrle’s residence in Gainesville, Virginia, where he received and hosted laptops shipped by multiple victim companies, enabling co-conspirators to remotely access the devices from outside the United States.

Yet, during a video call to verify employment eligibility, the company noticed that the person who appeared on the video call did not match Kurrle’s age or physical characteristics, according to court records. The unnamed company terminated the employment of Kurrle’s co-conspirator before he did any work on the military contract and Kurrle shipped the laptop back to the company. 

The company paid Kurrle’s co-conspirator almost $2,200 for 32 hours of onboarding, which Kurrle is now ordered to pay in restitution along with the $4,800 received from the other company. 

Kurrle also, as part of his plea agreement, admitted to using the identity of a third person, without their consent, to apply for some remote work positions. He doesn’t dispute that the scheme likely benefitted North Korea, but claims he wasn’t aware of the connections to North Korea during the duration of his involvement in the conspiracy.

Michael Barnhart, nation state investigator at DTEX, said researchers previously identified Kurrle as a facilitator for North Korea’s remote worker scheme. Yet, until recently, he wasn’t sure if Kurrle was a victim or impersonated. 

The case underscores North Korea’s efforts to gain access to roles with a strategic intelligence requirement, as it focuses on contractor roles because those present the path of least resistance.

Kurrle joins a growing list of people who have been charged or jailed for supporting the North Korea regime’s scheme that generates hundreds of millions of dollars annually for the country’s military and organizations involved in its weapons programs.

Authorities have been cracking down on the malicious insider activity by seizing cryptocurrency linked to the theft, and targeting U.S.-based facilitators who provided forged or stolen identities and hosted laptop farms for North Korean operatives. 

Some of that money is also funneling through a web of front companies and intermediaries, including sanctioned entities, that partly fund Russia’s war effort against Ukraine, DTEX said in a report in July. This includes manufacturing weapons and supplying them to Russia’s military, according to the security firm.

The countermeasures are stacking up, but the scheme is widespread and has infiltrated an undetermined number of businesses, including hundreds of Fortune 500 companies.

Federal judges previously sentenced other people to prison for their involvement in the scheme, including Matthew Issac Knoot and Erick Ntekereze Prince; Keija Wang and Zhenxing Wang; Audricus Phagnasay, Jason Salazar and Alexander Paul Travis; Oleksandr Didenko and Christina Chapman. 

Kurrle pleaded guilty to conspiracy to commit wire fraud and faces up to 20 years in prison upon sentencing, which is currently scheduled for Jan. 28, 2027.

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Unpatched voting machines, unverifiable QR-coded ballots, and AI-driven influence campaigns leave US elections short of secure.

The post How Secure Are US Elections? Voting Machine Risks and the Growing Threat of AI appeared first on SecurityWeek.

Authorities seized the domain of Virtualine, a bulletproof hosting provider that cybercriminals used to commit a large-scale sextortion scheme, ransomware, data theft, malware hosting and money laundering, the Justice Department said Tuesday. 

Virtualine facilitated prolific criminal activity, including the distribution of child sexual abuse material (CSAM), the Justice Department said. The Russian-speaking bulletproof hosting provider was among the most active this year in crypto-related crime in particular, researchers said. 

The site and its associated infrastructure stands out among the dozens of bulletproof hosting providers currently tracked by TRM Labs. “It was not among the largest by total inflows, but it received the most illicit-attributed value in 2026 to date,” the blockchain and cryptocrime research firm wrote in a blog post.

Virtualine received almost one-fifth of all illicit-attributed inflow among bulletproof hosting providers tracked by TRM this year to date.

A Russian drug marketplace accounted for nearly 44% of the direct payments Virtualine received from customers and attributed counterparties so far this year, according to TRM. A sextortion scheme accounted for nearly 17% of direct payments to Virtualine, followed by a cryptocurrency mixer at almost 13%, ransomware at nearly 5%, cybercrime services at 3% and malware at 2%.

“Virtualine is another example of Russia’s illicit economy at work: darknet markets, ransomware groups, non-compliant exchanges, and brokers all feeding the same ecosystem,” Ari Redbord, global head of policy at TRM Labs, said in a prepared statement. 

“Bulletproof hosting is the connective tissue. Seizing a domain matters, but the blockchain record doesn’t disappear with it. It shows who is paying, who is getting paid, and where they go next,” he added. 

Virtualine attracted many criminals as customers. Ransomware groups, including Coinbase Cartel, The Gentlemen, INC, DragonForce and Qilin all paid the site’s operators, according to TRM. The bulletproof hosting provider also received payments from the StealC infostealer, the Matanbuchu loader, bot and malware-distribution services and sites linked to CSAM. 

The FBI and prosecutors got a court order to seize Virtualine’s primary domain, which was also known as Secury, Massgod, Spamhouse, Lanedo and Omegatech.

Officials said Virtualine continued hosting services for a customer that distributed CSAM and a hack-for-hire service after it received numerous notices from law enforcement in Germany, Canada, Australia, the National Center for Missing and Exploited Children and a victim’s attorney.

TRM underscores that Virtualine was disrupted, but not completely shut down. “A domain seizure disrupts how customers find and access a service,” researchers wrote. “It does not, by itself, establish that the operator has stopped working, or that customers have lost access to all underlying infrastructure.”

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A Florida judge ruled this week that ex-Overstock CEO Patrick Byrne is not liable in a lawsuit brought by a Dominion Voting Systems executive over a film that accuses the former electronic voting hardware and software company  executive of saying he “made sure” that Republican presidential candidate Donald Trump wouldn’t win reelection in 2020.

The lawsuit, brought in 2022 by Eric Coomer, a former director of product strategy and security at Dominion Voting Systems, concerns comments made in a 2020 film produced by Byrne titled “The Deep Rig.”

In the film, which alleges a conspiracy to manipulate 2020 election results in favor of Democrat Joe Biden, a man identified as Joseph Oltmann claimed he listened to a conference call led by organizers of “Antifa,” wherein another participant mentioned that “Eric” “The Dominion Guy” was also on the call.

In the film, Oltmann says a man identified as “Eric” told others on the call that Trump wouldn’t win reelection because he had “made sure of it.” Coomer denies taking part in any such call, and filed a lawsuit against Byrne and seven other individuals and entities for defamation.

U.S. District Judge Tom Barber’s decision did not address most of the substantive claims in the lawsuit, such as Byrne’s ultimate legal responsibility for the statements by Oltmann that made it into the film.

Because the lawsuit was originally filed in Colorado, it must meet a state law requirement for defamation claims involving matters of public concern. Coomer must show “clear and convincing evidence” that Byrne or others involved in making the film knew the claims were false and defamatory, or acted with reckless disregard for the truth.

“Where the challenged speech involves a matter of public concern, as it undeniably does here, the plaintiff also bears the burden of proving, by clear and convincing evidence, that the challenged statement is materially false and was made with actual malice,” wrote Barber in his opinion.

The standard is not whether a reasonable person would have investigated the claims before airing them, but whether the defendant “in fact entertained serious doubts as to the truth of [the] publication, or was highly aware of its probable falsity.”

In this case, Barber said it’s not impossible to clear that standard for public figures, but under Colorado law, Coomer would have a hard time providing clear and convincing evidence that Byrne “in fact subjectively disbelieved or had serious doubts about Oltmann’s story.”

Barber further wrote that technology has given “a powerful microphone” and large followings to people who would otherwise be dismissed as “kooks” and conspiracy theorists. These people make statements that are “objectively and demonstrably wrong” but who hold firm to their core beliefs because they “genuinely and sincerely believe what they say with every fiber of their being, even when objective evidence may suggest otherwise.”

Still, he said the current language and meaning of the Colorado law is clear, suggesting it was a matter for higher courts or legislators to clarify or change.

“Under the actual malice standard, unless it can be proven that the speaker subjectively believed his or her statements to be untrue, the law imposes no liability,” Barber wrote. “That is a policy choice that might deserve reexamination by the appropriate decision makers – the United States Supreme Court and the Colorado courts.”

Byrne’s attorney, Peter Ticktin, called the ruling a “victory” in a statement to CyberScoop.

“This is a substantial victory for Patriot Patrick Byrne and for the principles at stake in this case,” Ticktin said. “The court’s decision speaks for itself. We are pleased that the facts and applicable law resulted in summary judgment in our client’s favor.”

Coomer sued Byrne in his personal capacity, and Dominion Voting Systems was not a party to the lawsuit. 

The voting machine giant was awarded more than $1.8 billion in combined legal settlements over the past two years from Fox News, Newsmax and MyPillow CEO Mike Lindell, all of whom made allegations that Dominion voting machines were used to maliciously flip or alter votes.

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Volt Typhoon, a China-government backed hacking group that has infiltrated America’s critical infrastructure networks for years, has consistently built and dismantled ephemeral malicious infrastructure to burrow into hundreds of sensitive systems undetected, Lumen Technologies’ Black Lotus Labs said in a Wednesday report.

The covert access operation that researchers call “Silent Train” isn’t a standalone network, but rather a series of compromised small office home office (SOHO) routers, internet of things (IoT) devices and enterprise infrastructure that Volt Typhoon has rapidly rotated through since late 2023. 

The Chinese threat group has used this chain of short-lived compromised infrastructure to exploit additional vulnerabilities, including zero-days, in network edge devices and gain deeper, persistent access into victim networks, researchers said. 

“Individual chains are assembled and dismantled every day, with infrastructure continually refreshed,” Michael Horka, principal information security engineer at Black Lotus Labs, told CyberScoop. “Volt Typhoon demonstrated a repeatable capability to rebuild a new chain with different infrastructure in less than two minutes, making the number of nodes at any one moment effectively close to zero.”

Black Lotus Labs has notified hundreds of victims since it first identified Silent Train activity, including telecom providers, government entities, defense contractors, communication services, universities and IT firms. Other victims spanning critical infrastructure include organizations in the water, energy, transportation, maritime, rail, aviation and emergency services sectors.

“The ephemeral nature of the framework means our observations should not be interpreted as a complete census of Volt Typhoon activity,” said Horka, who also was the lead researcher on the report.

The nation-state group’s investment in operational security and preserving access is remarkable, according to Black Lotus Labs.

“We observed infrastructure assembled in under two minutes, sessions averaging roughly four hours, extensive cleanup, compartmentalization and continued development of new access vectors,” Horka said. “That is considerable effort devoted not even to get into their end targets, but purely to making important operations difficult to discover and trace.”

Volt Typhoon relied more heavily on Silent Train after the FBI and Justice Department disrupted the KV Botnet in early 2024, researchers said. Earlier this year, U.S. and global authorities warned about a widespread shift in Chinese hacking groups’ use of covert networks riding on compromised common devices.

The reach of those efforts is extensive and ongoing. Volt Typhoon has exploited and abused more than 27 device classes in Silent Train operations, including edge devices, enterprise management tools, identity and access management systems, networking infrastructure and other technologies. 

“The diversity matters, but the discipline matters even more,” Horka said. “Specific device types were consistently reserved for particular positions in the chain. It operated less like a collection of randomly compromised devices and more like an organized inventory of capabilities.”

The threat group has successfully compromised devices and technologies from Fortinet, Cisco, ManageEngine, Ivanti, F5, Check Point, Palo Alto Networks, ServiceNow, TP-Link, Netgear and ArcGIS, researchers said. Black Lotus Labs also observed confirmed zero-day campaigns targeting Versa Director, N-Able N-Central, Cisco Catalyst SD-WAN and VeloCloud Orchestrator. 

“The exploitation patterns, victimology, and geographic targeting observed throughout our investigation point to a sustained focus on communications, defense, government, and critical infrastructure environments of enduring strategic value,” Black Lotus Labs researchers wrote in the report. “Through repeated targeting of centralized management platforms and control-plane technologies, Silent Train shows how Volt Typhoon systematically pursues and preserves access to some of the most consequential networks in the United States.”

Silent Train’s ephemerality and operational discipline means it can’t be measured in size. These attributes also make it “fundamentally difficult to disrupt because there isn’t one network to take down,” Horka said. 

“What exists today will be completely different tomorrow,” he added. “You can try to remove individual pieces, but removing the actor’s ability to continuously rebuild them is a much harder problem to solve.”

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Anthropic said its AI systems could drastically reshape the software and cybersecurity sectors in the “near term,” while also laying out a litany of cybersecurity and regulatory risks facing the company as it prepares to go public.

In a filing with the Securities and Exchange Commission ahead of its initial public offering, the company said its technology could transform entire industries and the economy. Already, cybersecurity-focused models by Anthropic and rival OpenAI can find and exploit cybersecurity vulnerabilities at an alarming speed.

But the company also acknowledged serious risks its models, including Claude, pose to itself, its users and the world. Hacks by bad actors using Claude or AI agents could cause financial, legal or physical damage, spark lawsuits and affect Anthropic’s ability to insure against future losses. 

Anthropic expects bad actors, including foreign governments, to increase their efforts to access its latest frontier models as their cybersecurity capabilities improve. That creates persistent risk, since its models could be used in cyberattacks carried out by foreign governments and cybercriminal groups.

“Any successful attempt to misuse, or any perceived misuse of, our models, platform, and applications for a cyberattack or for any other malicious purpose could result in exposure to liability, disruption of our customer or other commercial relationships, or damage to our reputation,” Anthropic said in its filing.

That potential legal and regulatory risk extends to independent security researchers and others who have “used, and may in the future use, our models to identify and exploit vulnerabilities in the systems of other companies, including other AI developers, at times in connection with authorized bug bounty programs.”

Anthropic cited the rise of AI-enabled cybersecurity incidents in the U.S., the U.K. and other countries, saying they could result in more adversarial regulatory environments around the world. European laws, for example, require detailed breach reports within a strict time frame, which could be difficult for Anthropic to meet.

Federal intervention could also disrupt AI development and release timelines. Anthropic cited the Department of Commerce placing export controls on its Mythos 5 and Fable 5 models, and confirmed that the Federal Trade Commission issued it a civil investigative demand earlier this month for more information on the safety and security of its products, as well as its consumer, data and privacy protection policies.

AI development will be guided by more than ethics

Anthropic has developed a public reputation as an ethics-first AI company,  most notably in disputes with the Department of Defense over how its models are used in wartime. But the IPO filing states the company must “balance safety considerations against commercial objectives, competitive pressures, and stakeholder expectations.”

The company also said it is “actively” improving security infrastructure and controls. It also has acknowledged it has moved forward on projects with “known limitations or gaps in our defenses” and may do so again.

“There can be no assurance, however, that the safeguards or access regimes we adopt will prove adequate, that we will correctly identify which capabilities require restriction, or that constraints we impose will not be circumvented,” the document stated.

AI agents can create new and “distinct” cybersecurity attack surfaces because they interact with so many other tools, databases, APIs and other third-party systems. That creates  feedback loops between a model and other systems, which can be compromised or manipulated to feed malicious instructions to the agent.

Anthropic suggested the problems could be so pronounced that it may have difficulty obtaining insurance for some cybersecurity incidents and data breaches related to its models.  

Andrew Yoon, head of research at the nonprofit CivAI, told CyberScoop that both the document and Anthropic’s overall record show a company that has consistently put profit considerations over building safer AI.

“I think in general they’re not meeting the moment here,” Yoon said. “Despite all of these risks that they flagged, they’re moving ahead pretty much as fast as humanly possible, and their justification for this is ‘You can’t do safety from second place.’”

Yoon said Anthropic has not only pushed its own frontier research toward dangerous and harmful capabilities like hacking, “they are pushing very aggressively ahead” and in some cases influencing competitors to follow suit. Anthropic’s release of its Mythos and Fable models earlier this year caused OpenAI to shift “its entire corporate strategy” to match the capabilities of Anthropic models in coding, science, and general intelligence by building models at breakneck speed.

“They have pretty directly caused the industry to speed up toward this mad, frenzied race and yet they’re saying ‘Oh, our models are too powerful,’ ”….it just doesn’t add up to me,” said Yoon.

But Yoon said it’s not clear that building AI systems to carry out dangerous, complex activities like hacking or bioweapons is necessary to be competitive in the global marketplace. He pointed to the wide assortment of Chinese-developed, open-weight AI models that are widely used around the world, but are not powerful enough to chain together complex exploits or develop new viruses.  

“This is not an accident, this is not the models generalizing from regular programming capabilities…the labs are intentionally training them on hacking as well,” said Yoon. “This is because they want to offer better defensive capabilities, they want to be able to sell offensive products to the government…and they do pretty cavalier testing with [the models] inside the labs.”

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A 36-year-old Ukrainian national was sentenced to 70 months in prison for participating in a string of ransomware attacks targeting various critical infrastructure operators and businesses from the middle of 2018 to late 2021, the Justice Department said Tuesday.

Artem Aleksandrovych Stryzhak was involved in ransomware attacks on hospitals that disrupted patient care, government entities, a dentist office, a company in the oil and gas transportation industry and law firms. He joined various ransomware groups during his crime spree, including Nefilim and Hive, which attacked about 1,500 victims worldwide.

“Ransomware attacks like those committed by the defendant wreak enormous havoc — harming victim companies that pay millions in remediation and ransoms, preventing hospitals and other critical facilities from accessing data, and putting sensitive information in the hands of bad actors,” Joseph Nocella Jr., U.S. attorney for the Eastern District of New York, said in a statement.

Stryzhak pleaded guilty to multiple cybercrimes in late 2025. He was arrested in Spain in June 2024 and extradited to the United States in April 2025. Authorities are still looking for his alleged co-conspirator Volodymyr Tymoshchuk and previously announced a $11 million reward for information leading to his arrest or conviction.

Attacks involving Nefilim ransomware caused millions of dollars in losses from extortion payments and damage to victim networks, officials said. Stryzhak and his co-conspirators allegedly customized executable ransomware files for each victim, creating unique decryption keys and unique ransom notes.

The ransomware group primarily targeted companies located in the United States, Canada and Australia with more than $100 million in annual revenue, and extorted victims by threatening to publish stolen data. The crew researched companies after it broke into their networks to determine their net worth, size and contact information.

Stryzhak’s victims in the United States include an engineering consulting company based in France, an aviation industry company in New York, a chemical company in Ohio, an insurance company in Illinois, a company in the construction industry in Texas, a pet care company in Missouri and an international eyewear company. 

Stryzhak and his co-conspirators also used Nefilim ransomware to encrypt victim networks in Germany, the Netherlands, Norway and Switzerland, prosecutors said. 

Authorities said Stryzhak was one of the earliest Hive affiliates and, with co-conspirators, deployed the ransomware against seven victims during the COVID-19 pandemic.

“This sentence concludes a years-long, multi-continent investigation into a defendant who participated in cyberattacks against Americans’ businesses and health care,” A. Tysen Duva, assistant attorney general of the Justice Department’s Criminal Division, said in a statement. “Cybercriminals who terrorize American businesses cannot evade justice by operating from abroad or hiding behind sophisticated technology.”

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Alarm bells ratcheted up yet again about an AI-discovered vulnerability that could — if exploited in the wild — destabilize vast stretches of the internet. 

The critical defect — CVE-2026-111497 — affects the Google-developed Brotli decompression library that’s bundled into many components, applications and cloud services riding on open-source software. The buffer overflow vulnerability, which OpenAI Codex Security discovered and Node.js disclosed in a Oct. 21 security advisory, can trigger system crashes and remote code execution. 

Researchers haven’t observed any active exploitation of the defect in real networks, but concerns are mounting. Multiple vendors and software packages, including Microsoft and Python, that rely on vulnerable versions of Brotli have rushed emergency patches out to address the risk of exploitation in their respective systems.

Wiz researchers warned that “91% of cloud environments have resources vulnerable to CVE-2026-111497 and 82% of cloud environments have publicly exposed Node.js instances.”

The attack surface is “extremely broad and vast, but much of the impact of exploitation depends entirely on its implementation and how it is used within that piece of software,” said Jake Knott, head of threat intelligence at watchTowr.

Christiaan Beek, vice president at Rapid7 Intelligence, said the Brotli vulnerability is especially concerning because it’s effectively hiding out in the open, as are many open-source software libraries.

“Most businesses have no idea how deeply components like Brotli are embedded in their technology. A vulnerability in a compression library sounds almost boring until you realize it could affect applications your business depends on every day,” he said. “That’s the uncomfortable reality of modern software: a small component can create a very large business risk.”

The defect, dubbed “Node2Shell” or “Broccoli2Shell,” is the latest in a series of vulnerabilities that have provoked an emergency response. Defenders and researchers were on heightened alert last week over a pair of critical PHP vulnerabilities dubbed “PHP2Shell” that also have yet to be exploited in the wild as of Monday afternoon.

These cyclical and increasingly recurring so-called emergencies are putting organizations and defenders at a significant disadvantage. 

“After being part of numerous channels and message threads full of defenders trying to discern what’s real and what’s BS over the past several months — and especially the past week — I can say unequivocally that the human cost of these events is real, pronounced, and will have downstream impacts far beyond what the community can immediately predict,” Caitlin Condon, vice president of research at VulnCheck, told CyberScoop.

“None of this — high-profile vulnerability disclosures, the overblown exploitability assumptions, the community arguments, the race to weaponize — is new,” she added. 

“What’s changed now is that AI is pumping out complex — and often not clearly explained — finds at a much higher rate, exponentially increasing noise levels and making it much more difficult both to debunk overhyped vulnerability discoveries and to determine which vulnerabilities are broadly exploitable in real-world production configurations.” 

Researchers acknowledge the additional stress defenders and organizations are in because of this always-in-emergency mode.

“We’ve reached a point where everything seems to be an emergency. And when everything is critical, businesses risk losing sight of what actually matters,” Beek said. “The real cost isn’t just patching. It’s the constant disruption to operations, the diversion of resources, and the difficult decisions about which business systems deserve immediate attention.”

Experts also consider this the new normal as more high-impact vulnerabilities with far-reaching potential consequences are found. 

“We suspect in the very near future, defenders may lose the ability to tell what is a true emergency versus a loud and prevalent vulnerability in a ubiquitous product or library,” Knott said. 

Experts advise organizations to focus on their specific risk, weighing the Brotli vulnerability’s potential impact in their environment. 

“Attackers don’t care about CVSS scores,” Beek said. “They care about what they can compromise, disrupt, or monetize and that’s exactly how we should prioritize our defenses.”

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A 44-year-old Chinese national was extradited to the United States and arraigned in federal court for his alleged involvement in a sweeping investment scam network that tricked at least 174 U.S. residents out of nearly $37 million, the Justice Department said Friday. 

Zheng Zhao was extradited from the Netherlands to the United States to face a conspiracy to commit money laundering charge that could keep him in prison for 20 years. 

Prosecutors accuse Zhao and his co-conspirators of operating a global cryptocurrency investment scheme out of multiple countries, including scam centers in Cambodia. 

The cybercrime ring allegedly reached out to U.S.-based victims proactively via social media, phone calls, text messages and online dating sites to establish a deceitful relationship and build trust. Eventually, Zhao and his co-conspirators promoted cryptocurrency investments to the victims and directed them to send funds through fake sites that resembled legitimate trading platforms.

Victims were told their investments were growing in value, yet they were already transferred from U.S. bank accounts controlled by the co-conspirators to an account at Deltec Bank in the Bahamas, officials said. The crew allegedly converted the victim funds to Tether before transferring the assets to a digital wallet controlled in Cambodia.

The stolen funds were ultimately distributed to leaders of scam networks throughout the region, officials said.

Eight of Zhao’s co-conspirators previously pleaded guilty participating in the investment scam conspiracy, including Shengsheng He and Jingliang Su, who were sentenced to 51 months and 46 months in prison, respectively. 

Joseph Wong, a co-conspirator living in California, managed a network of money launderers in Los Angeles who registered shell companies, opened U.S. bank accounts and transferred stolen victim funds to international bank accounts.

“This case should serve as a warning to scammers in every corner of the world: there is nowhere to hide,” Todd Bratz, special agent in charge of the U.S. Secret Service Criminal Investigation Division, said in a statement. “Secret Service investigators and our law enforcement partners remain unwavering in their commitment to identify those who operate scam centers, disrupt their financial infrastructure and bring them to justice.”

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