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Yesterday — 25 June 2026Security/Privacy

Another BreachForums Clone Shuts Down, Citing Fears of ShinyHunters

By: Dissent
24 June 2026 at 21:26
If there were a soundtrack for this post, it would be Queen’s “Another One Bites the Dust.” There’s another chapter in the ongoing drama that is “BreachForums.” Yesterday,  the BreachForums clone at breached[.hn]  was listed for sale for $3k USD. By today, they had dropped the price to $ 1,500 USD and still couldn’t seem...

Source

Before yesterdaySecurity/Privacy

Justice Department seizes infrastructure used by cyber scam and criminal marketplace

23 June 2026 at 14:34

The Justice Department on Tuesday said it has seized infrastructure tied to what officials called one of the world’s most prolific criminal marketplaces, used to commit cyber scams and other crimes.

The seized cloud computing account hosted backend infrastructure used by subsidiaries of the Huione Group, a Cambodia-based corporate conglomerate.

At the same time, the Treasury Department announced fresh sanctions and more against Huione and affiliated companies. The administration actions Tuesday add to disruption efforts from last fall against pieces of the same network.

The Trump administration has placed an emphasis on combating transnational cybercrime and other kinds of scams and fraud.

The seized cloud computing account was used to operate Huione Guarantee, also known as Haowang Guarantee, according to Tuesday’s DOJ announcement.

“The Huione Group used this cloud computing account as part of a technological backbone that allowed billions in fraud proceeds to be transferred, moved, and concealed — much of it stolen through Southeast Asian scam centers,” said Tysen Duva, assistant attorney general of the Justice Department’s Criminal Division. “Seizures of these marketplaces is critical in the fight against fraud that affects so many Americans, and to stop avenues for criminal proceeds to be laundered.”

U.S. officials allege that Huione Guarantee operated Telegram channels with discussions about illicit goods and services, including the sale of stolen credit card and sensitive personal information, malware-enabled thefts, human trafficking schemes and the laundering of money from romance and investment scams. Huione Guarantee also allegedly offered escrow services for criminals such as money launderers for cryptocurrency.

Treasury took two steps Tuesday to build on its move in October to sever Huione Group from the U.S. financial system. One was to tack H-Pay Service onto its rule for Huione Group as a successor entity. And it slapped nine people and 26 entities linked to Prince Group with sanctions.

“Huione Group served as a critical node for laundering proceeds of cyber heists and virtual currency investment scams and was used by the Prince Group to transfer and consolidate scam-derived assets,” Treasury’s announcement states.

Also last October, the Justice Department said it seized bitcoin valued at $15 billion from the chairman of the Prince Group, Chen Zhi, and indicted him over alleged cryptocurrency crimes and other schemes. 

An alleged key figure in Chen’s criminal network has been arrested in Cambodia and extradited to China.

The post Justice Department seizes infrastructure used by cyber scam and criminal marketplace appeared first on CyberScoop.

Local LLMs are better than ever, but are they good enough?

22 June 2026 at 03:43
AI By Matthew S. Smith This might be hard to believe, but we’re now at least four years into the era of AI large language models — and perhaps up to nine, depending on your definition. OpenAI’s ChatGPT was released in 2022, GPT-3 was released in 2020, and the paper that defined the transformer architecture […]

‘Popa’ Botnet Linked to Publicly-Traded Israeli Firm

18 June 2026 at 13:37

For the past four years, a sprawling Android-based botnet called Popa has forced millions of consumer TV boxes to relay Internet traffic linked to advertising fraud, account takeovers, and mass data-scraping efforts. This week, researchers from multiple security firms concluded that the Popa botnet is linked to NetNut, a “residential proxy” provider operated by the publicly-traded Israeli firm Alarum Technologies Ltd [NASDAQ: ALAR].

Malicious streaming devices sold online that enroll the user's home Internet address in a residential proxy service. Image: Synthient. Pictured are 8 different TV boxes, including the X96 Mini Box, stick, and other no-name brands.

Malicious streaming devices sold online that enroll the user’s home Internet address in a residential proxy service. Image: HUMAN Security.

Popa is a massive botnet, but by all accounts it is unlike traditional botnets that enlist compromised systems in destructive activities, such as coordinating huge distributed denial-of-service attacks. Rather, Popa appears designed with a singular purpose: Implementing a persistent communications layer capable of registering a device, maintaining long-lived encrypted connections, and opening communication tunnels on demand.

Experts say Popa is a plugin component associated with the Vo1d botnet, a large-scale malware campaign targeting unofficial Android-based TV boxes. These devices, which are marketed under thousands of brand names and model numbers and broadly available for purchase at top e-commerce destinations, all advertise the ability to stream hundreds of subscription video services for an up front one-time fee.

But as the FBI and security industry experts have warned repeatedly, these streaming boxes typically bundle or come pre-installed with software that turns the user’s TV into a “residential proxy” — allowing anyone to route their Internet traffic through that device for as long as it remains plugged into a wall socket and connected to a local network. More concerning, some of these proxy networks do little to stop malicious customers from communicating with and even compromising systems on the local network of the unsuspecting device owner.

The first clues about Popa’s origins came in a 2025 report from the Chinese security company XLAB, which flagged at least nine domain names that were used to register and direct the activities of compromised devices. In a report released today, the security firm Qurium described how it stumbled on some of those same domains while investigating a series of disruptive and expensive data scraping events targeting the company’s hosted organizations in May 2026, in which the scraping activity was scattered evenly across more than 1.4 million Internet addresses.

Qurium said it found several dozen domains used to control Popa that were all hosted in lockstep across multiple Internet addresses over time, including gmslb[.]net, safernetwork[.]io, tera-home[.]com, and ninjatech[.]io. Digging deeper, Qurium discovered gmslb[.]net was referenced in dozens of pirated or modded video content streaming apps, such as CRICFy, DooFlix, Sprozfy, RTS Tv, Flixoid, CyberFlix, Rapid Streamz, TvMob and HD/OceanStreams.

Qurium’s report notes that most of the domains long used to control the Popa botnet were seized or dismantled in July 2025, after Google, HUMAN Security and Trend Micro teamed up to disrupt Badbox 2.0, a botnet that is closely associated with Vo1d. Qurium said that immediately after that disruption, several dozen new domains were registered to serve as controllers for the Popa botnet, but that one of those control domains was not new: ninjatech[.]io.

Ninjatech is a company founded by Moishi Kramer, whose LinkedIn profile says he is vice president of research and development at NetNut. That resume credits Kramer for helping NetNut to build from the “ground up,” “designing the architecture,” and “scaling the NetNut” before the company was acquired by Alarum Technologies. A self-created listing at the job board F6S references Kramer as the sole owner of the Ninjatech domain (a screen capture of it is pictured below).

Image: F6S.com.

Responding via email, Mr. Kramer said Ninjatech ceased operations approximately five years ago, when the company sold a software development kit (SDK) called Popa that was designed to use a small portion of a device’s bandwidth and to run only after the host application obtained user consent.

“That code was sold and licensed to third parties including resellers years ago,” Kramer said. “Once software is distributed that way, the original developer has no control over how others later modify, rebrand, or deploy it.”

Kramer said neither he nor NetNut builds, operates or maintains the infrastructure being described as Popa, nor does he control the Ninjatech domain.

“I didn’t register the June 2025 domains you mention, and I don’t know who did,” he continued. “I have no control over, or visibility into, that infrastructure. I can only tell you it isn’t operated by me or by NetNut.”

But in a separate Popa research report released today, the proxy-tracking company Synthient said a recent analysis of the Popa SDK revealed outbound traffic clearly associated with NetNut.

“The research team assesses with high confidence that devices running Popa forward traffic from Netnut clients,” Synthient wrote. “This proves without a shadow of a doubt that Popa actively continues to be used by NetNut as part of their proxy pool.”

Synthient’s platform receiving outbound traffic from Popa. Image: Synthient.com.

Alarum Technologies, NetNut’s Tel Aviv-based parent company, said the reports by Synthient and Qurium contained “demonstrably inaccurate assertions and flawed deductions rather than verified facts.” Alarum shared a statement saying they reject the basic characterization of the SDKs and technologies discussed in the reports as a “botnet.”

“The SDKs at issue are designed to facilitate bandwidth-sharing functionality and do not transform user devices into malware-controlled systems or otherwise compromise the devices on which they operate,” the statement reads. “Netnut operates a commercial proxy network and maintains policies, procedures, and technological measures designed to promote lawful and responsible use of its services.”

Alarum said NetNut places “significant emphasis on appropriate notice and consent mechanisms, conducts customer due diligence, monitors for potential misuse, and takes steps intended to detect and mitigate suspicious or unauthorized activity.”

“This method of operation is supported both by internal procedures and policies, including performing KYC checks and additional due diligence of NetNut’s customers, as well as employing various technological measures, designed to assist in identifying and addressing suspected misuse of the network,” their statement continued.

However, in a report released on June 8, the proxy tracking service Spur asserted that NetNut does not require corporate verification or meaningful “know your customer” procedures before allowing customers to purchase proxy access.

“An individual can sign up, pay, and route traffic through partner address space, including space belonging to institutions whose users never opted in,” Spur wrote. “The ‘verified corporations only’ claim is simply marketing for bandwidth sellers, not an access control on who actually uses the proxies.”

“Nor is NetNut the only front door,” Spur continued. “A number of downstream white labelers and resellers repackage the same ISP proxy pool under their own brands. These outlets typically perform no KYC at all, less scrutiny than NetNut itself, who at the very least might assign an account manager to potential users. Anyone who knows where to look can buy access through a reseller with nothing more than a burner email address and $5 in crypto.”

Synthient found that although the most recent builds of Popa (as of three months ago) have added the ability to ask the user for consent before installing proxy components, not all variants or previous versions of Popa contain this functionality.

“Of the over 20 genuine Popa publishers analyzed, none of them were observed asking for user consent,” Sythient wrote.

THE PREVALENCE OF POPA

Chris Formosa is senior lead information security engineer for Black Lotus Labs, a division of the Internet backbone carrier Lumen Technologies.

“What especially makes Popa dangerous is just how widely used NetNut is for reselling and sharing,” Formosa said, explaining that many other proxy services simply resell NetNut proxies rather than building out their own far-flung proxy networks. “So these Popa IPs appear in tons of different services all over the ecosystem, which makes it one of the most problematic and dangerous proxy botnets on the market currently.”

Formosa said the Popa botnet averages between 1.5 million to 2.5 million distinct IP addresses each day, relying on between 250 and 300 Internet addresses that are used to direct its activities.

“That’s why Popa is so dangerous,” Formosa said. “It may not be the largest botnet we have seen, but it is spread all over the industry, making its power very amplified.”

Formosa said while that makes Popa one of the larger botnets out there today, its numbers pale in comparison to those previously boasted by IPIDEA, a China-based proxy provider that until recently operated a daily pool of nearly 10 million devices that they resold as proxies to anyone. In January 2026, Synthient published research showing that multiple new large DDoS botnets had grown rapidly by tunneling through IPIDEA proxies into the local networks of unsuspecting TV box owners and infecting other Android-based devices behind the user’s firewall.

IPIDEA is based largely on SDKs used to view pirated streaming content on a vast number of TV box devices, but the service’s numbers have dwindled since January, when Google and industry partners took legal action to seize domain names that IPIDEA used to control devices and proxy traffic through them.

Jérôme Meyer, a security researcher at Nokia Deepfield, said the total population of devices participating in the Popa botnet may be far higher than Lumen’s estimates. Meyer told KrebsOnSecurity that Nokia is monitoring 26 of at least 359 known relay nodes for the botnet, and estimates that each relay node handles between 35,000 and 60,000 clients simultaneously.

“On the relay node subset I am looking at (26 of them), 750,000 unique sources in 24 hours,” Meyer wrote in response to questions.

Nokia Deepfield released its own report today on RoboVPN, a VPN app tied to the Vo1d botnet’s Popa plugin that Qurium attributes to NetNut/Alarum Technologies.

THE SYMBIOSIS OF PROXIES AND DATA SCRAPING

Experts say many of the world’s largest proxy providers have updated their public-facing branding to highlight their utility for training AI platforms, implying it is a primary use case for their residential proxies. That’s because AI services tend to rely on constantly mass-scraping the Internet for new text, images and video content that can be used to train large language models (LLMs).

NetNut and other proxy services have recast themselves as critical infrastructure for the AI scraping economy. Image: Synthient.com.

“AI companies depend on web-scraped content: for pre-training, for retrieval, for agent grounding, for search,” reads a report this month from Include Security that examines the prevalence of proxy SDKs in smart TV apps. “But the modern web isn’t scrapeable from a datacenter. Cloudflare, DataDome, HUMAN, among others throttle or block requests from known cloud IPs. The workaround is residential proxies. A scraping job routed through a Comcast or T-Mobile subscriber’s connection arrives at the target site from an IP that belongs to a paying residential customer.”

This non-stop content scraping has spawned more than 70 copyright infringement lawsuits against major tech companies that have acknowledged large-scale data scraping as a major source of the “brains” behind their commercial AI offerings. Ironically, much of that scraping is being aided by proxy services that are intimately tied to unofficial Android TV boxes and associated SDKs whose stated purpose is streaming pirated content.

The scraping activity has become so aggressive that it often overwhelms the targeted websites, preventing them from being reachable by legitimate visitors. In many reported cases, nonprofit organizations, libraries and universities have complained of constantly battling to keep their services online in the face of relentless data-scraping firms hiding behind residential proxy services.

A survey conducted last year by the Confederation of Open Access Repositories (COAR) found while some content scraping bots are rather innocuous, “others are sufficiently aggressive that they are increasingly causing service disruptions in repositories and other scholarly communications infrastructures.” More than 90 percent of survey respondents indicated their repository is encountering aggressive bots, usually more than once a week, and often leading to slow downs and service outages.

“Automated web scraping is nothing new, and has been the key technology underlying search engines such as Google for over 30 years,” wrote Brendan O’Connell, platform manager at the Directory of Open Access Journals (DOAJ), a free, community-curated index of peer-reviewed academic journals. “However, the current investor-fueled AI startup craze means there are now thousands of well-funded companies developing and deploying their own scraping tools to train AI models, alongside existing major players like OpenAI and Google.”

DON’T TOUCH THAT DIAL!

Across the United States, local communities are pushing back against the proliferation of new data centers aimed primarily at improving the capabilities of AI. But security experts say the general public remains largely unaware that using one of these unsanctioned Android TV boxes means their “smart TV” is almost certainly using a significant amount of bandwidth each month to help train modern AI models.

Even households without these sketchy TV boxes can still have their smart TVs turned into residential proxy nodes, just by downloading one of thousands of apps made available on Samsung and LG smart TVs. Spur said it recently scraped the LG and Samsung app stores and found that each had approximately 3,000 apps available for download. Many of these apps are simple games or utilities that state in the fine print that the user’s Internet connection will be used to download data and that they can opt out at any time.

Spur said it found that more than 42 percent of apps available for download via the webOS operating system on LG smart TVs include SDKs that turn one’s television into an always-on residential proxy node. More than a quarter of the apps made for Samsung’s Tizen operating system had similar residential proxy components, Spur found.

Image: Spur.us.

Experts say it’s questionable whether TV apps with proxy SDKs can obtain meaningful consent from users for installing an always-on proxy connection, particularly when anyone in a household — including children — can effectively opt the family TV into a residential proxy network just by installing a simple game or app.

“Privacy-policy disclosure is the wrong control surface for a TV,” Include Security wrote. “It is hard to scroll through a legal document navigated by arrow keys on a remote, and the in-app consent dialog doesn’t convey that a paying customer is about to route their scraping traffic through the user’s home internet.”

Spur’s head of research Sean Simmons told KrebsOnSecurity that most people do not have a working mental model for what it means to sell access to their residential IP address, no matter what device they are using.

“And on a TV, the gap is even wider,” Simmons said. “A one-time prompt navigated with a remote can disappear into the setup flow, while the app keeps monetizing the connection long after anyone remembers what they accepted.”

Simmons said LG and Samsung should follow the lead of other TV platforms that have already drawn a line against residential proxy providers, pointing to policies by Amazon that prohibit apps facilitating proxy services for third parties. Likewise the TV streaming device maker Roku reportedly now bars developers from using proxy SDKs and has removed apps that bundled them.

Piracy related apps pushing proxy SDKs onto unconsenting users. Image: Synthient.

Apps that turn one’s device into a residential proxy node are not limited to smart TVs and no-name streaming boxes, of course. As noted by the security firm Infoblox, mobile app developers can embed SDKs provided by the residential proxy networks into their products to monetize their software, allowing them to receive a small amount of money on each installation.

The result, Infoblox said, is that devices are frequently enrolled without the owner’s knowledge, typically through free applications such as VPNs, streaming apps, screensavers and “productivity” apps such as PDF viewers and break reminders.

All too often, these proxy services are beaconing out from employee devices brought into the workplace, Infoblox found. In a blog post earlier this month, Infoblox said it discovered that fully 65% of its customer base was querying one or more residential proxy related domains.

“We saw steady growth in these queries in 2025, with a 25% increase over the year to over 500 billion per month,” Infoblox wrote. “Over 90% of our pharmaceutical and food & beverage customers have queried residential proxy indicators. Perhaps even more concerning is that over 60% of government and banking customers have as well.”

Infoblox researchers Nick Sundvall and David Brunsdon warned that with residential proxies in the corporate environment, external access is granted to an organization’s IP space.

“If threat actors were to abuse the residential proxy to attack a third party, the third party’s incident response would, correctly, identify your residential proxy as the source,” they wrote. “Untangling that, by proving that you were the conduit and not the threat actor, costs time, creates legal exposure, and can damage your reputation. The stunning prevalence of these services within customer environments warrants attention from both network defenders and policy makers who should consider how the risks posed by residential proxies could be impacting their security posture.”

The coming of passkeys

1 June 2026 at 03:42
ON SECURITY By Susan Bradley Passwords. We’ve had them for a long time. They’ve served us well. But they are also subject to attacks — phishing and spoofing. Microsoft and many other vendors want us to move to passkeys. Unfortunately, the transition has not been easy or clear. Passwords are what we are used to. […]

Microsoft tests the 15-character limit of Windows Server admins' patience

28 May 2026 at 12:30
Windows Server 2016 might be long in the tooth but that isn't about to stop Microsoft breaking stuff. The May 12 security update introduced another bug for administrators to worry about. According to Microsoft, if the server hostname is exactly 15 characters long (like, for example, THEY-NEVER-TEST), domain controller discovery might fail. In the notes for the glitch, Microsoft wrote: "When the hostname is 15 characters long, DCLocator calls (for example, using nltest /dsgetdc: /pdc) will return ERROR_INVALID_PARAMETER, preventing applications and administrative tools from locating a domain controller." In other words, anything that depends on a domain controller lookup might stop working. As an example, Microsoft gave Distributed File System (DFS) Namespace management, which would certainly be inconvenient. DFS Namespaces is a Windows Server role that allows admins to group shared folders across different servers into a single namespace. A single path can lead to files located on multiple servers. Unless, of course, the domain controller lookup is broken. Microsoft lists no workaround for affected users, though changing the server hostname to something other than 15 characters would presumably avoid the trigger. "The issue is under investigation, and additional information will be shared as soon as it becomes available," it said. Microsoft still officially supports Windows Server 2016. Mainstream support ended in 2022, but extended support will continue until January 12, 2027. Microsoft is offering up to three more years of support via the Extended Security Updates (ESU) program after that. Earlier this year, Esben Dochy of Lansweeper told The Register that the operating system accounted for just 2.2 percent of all Windows devices it tracks, but 20.3 percent of all servers. That figure is unlikely to have dropped dramatically in the months since, so there is a fair chance that an administrator with a 15-character hostname could be affected. In addition to the Windows Server 2016 problems, the May 2026 security update has failed during installation on some Windows 11 devices when the EFI System Partition is insufficient in size. It is reassuring to know Microsoft's talent for breakage shows no bias toward any particular vintage. ®

FBI warns US-based law firms to be on the lookout for cybercrime group that steals data in person

27 May 2026 at 16:35

Silent Ransom Group, a long-running data extortion operation, continues to hit U.S.-based law firms by impersonating IT support and, in some cases, visiting victims in person to gain physical access to computers, the FBI said in an alert Tuesday.

The closed group, which likely operates from Russia and emerged in 2022 after Conti disbanded, has claimed responsibility for more than 100 attacks with activity surging during the past few months, according to researchers.

The FBI’s warning comes exactly one year after the agency released a previous alert about Silent Ransom Group consistently targeting law firms since mid-2023. The group doesn’t deploy encryption, but its dual use of social engineering and in-person visits for data theft is extremely rare with no known parallels across the vast cybercrime ecosystem, multiple experts told CyberScoop.

“There were probably a lot of times that this failed before it started succeeding because there’s a lot of trial-and-error involved,” said Allan Liska, field chief information security officer at Recorded Future. Whereas other ransomware groups would rather move on to other tactics or targets, “Silent Ransom Group has seen the value especially in going after law firms, and so they’re willing to put the extra effort into it,” he added. 

The data extortion group, which is also tracked as Chatty Spider, UNC3753 and Storm-0252, isn’t as prolific as more high-tempo ransomware groups. Yet, it’s having a noticeable impact due to its proven knack for attacking organizations in the legal sector.

Halcyon tracked 134 ransomware incidents against law firms and legal services during the first quarter of this year, making it the fourth-most targeted industry accounting for more than 6% of all ransomware attacks the company tracked during the period. 

Silent Ransom Group and Inc, a ransomware-as-a-service operation dating back to mid-2023, are largely responsible for that uptick, said Cynthia Kaiser, senior vice president at Halycon’s Ransomware Research Center.

“Silent was the first group to really just be targeting law firms, and they’ve targeted major law firms” with a clear understanding of what’s most problematic for organizations in that segment, she added. “The theft of data in and of itself is the biggest issue for the law firms, so they’re tailoring a lot of their operations around what they know about the sector.”

Law firms are a rich target because data theft creates huge privilege and reputational problems, which creates the perception they might be more willing to pay high extortion demands, Kaiser said.

Silent Ransom Group’s social engineering scheme involves phone calls or phishing emails that urge employees to call one of the group’s associates posing as IT support, the FBI said. If the group’s attempt to gain access to the employee’s computer via remote access tools fails, it sends an associate to the victim’s location to physically attach a storage device to the victim’s workstation. 

This extra step is unique and places Silent Ransom Group in a completely different mode of operation than its peers in ransomware and data theft extortion. Some aggressive data theft extortion groups have harassed and threatened executives and employees with physical violence, but in-person visits for data theft are extraordinary.

“While Flashpoint has observed threat actors soliciting or co-opting both witting and unwitting insiders, we have not observed them physically sending attackers to victim locations. This tactic carries significant risk, as threat actors are able to use technology to obscure their real-world identities,” said Ian Gray, vice president of cyber threat intelligence operations at Flashpoint. 

Joe Slowik, director of cybersecurity alerting strategy at Dataminr, said it’s easy to question why potential victims would fall for this tactic. “However, humans in the workplace need to implicitly trust others to get their jobs done,” he said. 

“Questioning everything, while seemingly desirable, introduces significant friction and distrust in workplace environments and limits productivity in arbitrary ways,” Slowik added. “Criminal entities will continue to prey on human weaknesses and dependencies for success, and placing the burden solely on employees to defend against this is unfair and unreasonable.”

The FBI did not provide details about the people Silent Ransom Group uses to initiate the fake IT support calls or visit victims in person. Yet, with the group’s operators based in Russia, researchers speculate gig workers or subcontractors are playing a critical role by placing voice-based phishing calls in a common language and visiting victims at their workplace. 

Liska said he’s under the impression the group is using freelance taskers that don’t necessarily know they are committing a crime. “They may be suspicious, but you know, they need the money,” he said. 

“It’s kind of like a Doordash person that delivers Arby’s,” Liska said. “You know you’re doing really bad things to people, but you know what, they’re paying you to deliver.”

The post FBI warns US-based law firms to be on the lookout for cybercrime group that steals data in person appeared first on CyberScoop.

Electronics recycling: A valuable side-gig

By: Ben Myers
25 May 2026 at 03:43
BEN’S WORKSHOP By Ben Myers For nearly three decades, I have been recycling electronic components — mostly for the gold content they contain, but also for the rare earths and other elements inside. So, here is how electronics recycling works, how it fits into the ecology of the electronics biz, and what you might do […]

How secure is your edge?

25 May 2026 at 03:42
ON SECURITY By Susan Bradley The “edge,” by which I mean the network hardware standing between the Internet and the PCs and devices on your network, is a first line of defense against attackers. What’s on your edge? At any point during the day, attackers are out to get someone. You may not be the […]

Is there a local AI in your future?

22 May 2026 at 04:00
As I mentioned on Wednesday, today I attended a seminar about creating a local AI solution for business. The main reason? Besides data privacy, small businesses may want to turn to local AI for lower cost. Right now, cloud AI is heavily funded by investors. When they pivot to IPOs and go public, those investors […]

Find and fix your software security holes without Mythos

27 April 2026 at 03:44
PUBLIC DEFENDER By Brian Livingston The maker of the popular Claude large language model (LLM) — which became the number-one download from US app stores in February 2026 — recently announced a powerful service called Claude Mythos. The new LLM has reportedly discovered thousands of security holes in every major operating system and Web browser. […]

US nationals sentenced for aiding North Korea’s tech worker scheme

16 April 2026 at 19:05

Two New Jersey men were sentenced Wednesday for facilitating North Korea’s long-running scheme to plant operatives inside U.S. businesses as employees, generating more than $5 million in illicit revenue for the regime, the Justice Department said. 

The U.S. nationals — Kejia Wang, also known as Tony Wang, and Zhenxing Wang, also known as Danny Wang — were part of a years-long conspiracy that placed operatives in jobs at more than 100 U.S. companies, including many Fortune 500 companies, based in 27 states and the District of Columbia.

The elaborate scheme involved shell companies posing as software development firms, money laundering, and espionage with national security implications. Operatives involved in the conspiracy stole sensitive files from a California-based defense contractor related to U.S. military technology controlled under International Traffic in Arms Regulations (ITAR), officials said.

“Democratic People’s Republic of Korea (DPRK) IT workers are not limited to revenue generation. When tasked, they can operationalize their placement and access to support strategic intelligence requirements, including intellectual property theft, network disruption or extortion,” Michael Barnhart, nation state investigator at DTEX, told CyberScoop.

While most of North Korea’s scheme is focused on revenue, it sometimes applies a dual-use approach, tasking certain privileged IT workers with malicious activity aiding other state-backed hacking groups, Barnhart added.

“Not all IT workers can be hackers but every North Korean hacker can or has been an IT worker,” he said. “This distinction matters for insider‑threat analysis because unlike typical fraudulent hires motivated by personal financial gain, IT workers can inflict national‑security‑level damage.”

Kejia Wang, 42, Zhenzing Wang, 39, and their co-conspirators stole the identities of at least 80 U.S. residents to facilitate the hiring of North Korean operatives and collected at least $696,000 in fees combined, officials said. U.S. victim companies also incurred legal fees, remediation costs and other damages and losses exceeding $3 million. 

Both men previously pleaded guilty to an assortment of crimes. Kejia Wang was sentenced to nine years in prison for conspiracy to commit wire and mail fraud, money laundering and identity theft. Zhenxing Wang was sentenced to 92 months in prison for conspiracy to commit wire and mail fraud and money laundering. 

The pair were also ordered to forfeit a combined $600,000, of which two-thirds has already been paid, officials said.

The conspiracy, which ran from at least 2021 through October 2024, relied in part on shell companies — Hopana Tech, Tony WKJ and Independent Lab — the men set up to create the appearance of legitimate businesses. 

“Pairing a U.S. person, a U.S. address, and a front company such as Independent Lab, the facilitators created the illusion of a legitimate domestic effort allowing the IT workers to present themselves as U.S.-based without triggering suspicion during onboarding or daily workflows,” Barnhart said. 

“Front companies can act as that middle financial flow from victim companies back to DPRK units, which then pushes funds upward through the Workers’ Party of Korea to support whichever program the unit was aligned with, whether weapons development or domestic priorities,” he added. 

These front companies reflect a higher level of tradecraft that exploits a weak spot in insider risk assessments because threats aren’t always a malicious person trying to break into a network, Barnhart said. “Sometimes it looks like an entire company appearing clean on paper.”

Authorities have responded to North Korea’s scheme by targeting U.S.-based facilitators who provide forged or stolen identities and laptop farms for North Korean operatives, and seizing cryptocurrency linked to theft. 

Law enforcement wins are stacking up, but researchers warn that North Korea’s operation is massive and consistently evolving. 

The sentencing of Kejia Wang and Zhenxing Wang comes less than a month after a trio of American men were sentenced for similar crimes, including the operation of laptop farms, wire fraud and identity theft. 

The Justice and Treasury Departments have also issued indictments and sanctioned people and entities allegedly involved in North Korea’s effort to send thousands of specialized technical professionals outside of the country to secure jobs under false pretenses and funnel their wages back to Pyongyang.

You can read the full indictments against Kejia Wang and Zhenxing Wang below.

The post US nationals sentenced for aiding North Korea’s tech worker scheme appeared first on CyberScoop.

The “silent killer” controversy

13 April 2026 at 03:45
ISSUE 23.15 • 2026-04-13 FROM THE FORUMS By Will Fastie Last week, we published a Public Defender column by Brian Livingston titled Any USB drive or cable you plug in might be a silent killer. You might have seen the reaction in the column’s forum topic. The forum exploded. So did my inbox. Read the […]

AI safety — is it possible?

13 April 2026 at 03:44
AI By Michael A. Covington Malfunctioning AI can hurt people. Preventing harm isn’t easy. To detect automatically whether an AI system is giving people bad advice, for instance, you’d need an AI that is smarter than the original one; and if you had it, you’d have used it in the first place. You see the […]

Cybercrime losses jumped 26% to $20.9 billion in 2025

7 April 2026 at 12:47

Cybercrime remains a booming business. 

Annual cybercrime losses amounted to almost $20.9 billion last year, reflecting a 26% increase from 2024, the FBI’s Internet Crime Complaint Center (IC3) said in its annual report Tuesday.

The comprehensive study exposes a worsening digital crime environment that is driving financial losses, with momentum moving in the wrong direction and compounding at an alarming rate. Annual cybercrime losses have jumped almost 400% from $4.2 billion in 2020, and cumulative losses in that five-year period surpassed $71.3 billion.

The FBI’s IC3, which formed as the country’s central hub for cybercrime reporting in 2000, is busier than ever. “We now average almost 3,000 complaints per day,” Jose Perez, the FBI’s operations director for its criminal and cyber branch, wrote in the report. 

The annual internet crime report highlights growing and sustaining trends. Yet, the scope of the study is limited and relies entirely on cybercrime incidents submitted to the FBI. 

The full impact of cybercrime remains murky, as an unknown number of victims suffer in the shadows and never report the crimes they endure.

The FBI received more than 1 million complaints last year, with victims aged over 60 reporting the largest amount of crimes that also resulted in the greatest amount of total losses by age group. Victims at least 60 years old filed 201,000 complaints with losses totaling nearly $7.75 billion, or about 37% of all cybercrime-related losses last year.

Investment-related fraud remained the largest component of cybercrime losses in 2025, reaching almost $8.65 billion. Business email compromise took the No. 2 spot with almost $3.05 billion in losses, followed by tech support scams at more than $2.1 billion. 

Cryptocurrency was the primary conduit for fraud linked to investment and tech support scams last year, while wire transfers composed the bulk of fraud resulting from business email compromise, according to the report.

Phishing was the most commonly reported type of cybercrime last year, followed by extortion, investment scams and personal data breaches. The FBI tallied losses amounting to $122.5 million from extortion and $32.3 million from ransomware last year.

The FBI also received more than 75,000 reports of sextortion last year, including more than 5,700 submissions that were referred to the National Center for Missing and Exploited Children.

The top five cyber threats reported to IC3 in 2025 included data breaches at 39%, ransomware at 36%, SIM swapping at 10%, malware at 9% and botnets at 7%. 

The FBI received more than 3,600 complaints reporting ransomware last year. The five most reported variants included Akira, Qilin, INC, BianLian and Play.

Each of the 16 critical infrastructure sectors reported ransomware attacks last year, and the most heavily targeted included health care, manufacturing, financial services, government and IT.

The IC3 primarily receives complaints from U.S. residents and businesses, but it also received complaints from more than 200 countries last year, which accounted for nearly $1.6 billion in total losses. 

While losses and the sheer amount of cybercrime continued to climb last year, “the FBI continues to disrupt and deter malicious cyber actors — and shift the cost from victims to our adversaries,” Perez wrote in the report.

“It has never been more important to be diligent with your cybersecurity, social media footprint, and electronic interactions,” he added. “Cyber threats and cyber-enabled crime will continue to evolve as the world embraces emerging technologies such as artificial intelligence.”

The post Cybercrime losses jumped 26% to $20.9 billion in 2025 appeared first on CyberScoop.

The first annual King Knut Award

30 March 2026 at 03:45
ISSUE 23.13 • 2026-03-30 LEGAL BRIEF By Max Stul Oppenheimer, Esq. This prestigious award, the Knuttie, memorializes King Knut. Or Cnut or Knute or Cnute. Or Knud or Knutur or Canuto, Canutus, Knutr, or Nuutti. (He preceded spell-check.) Anyway, Knut of Denmark conquered England, Scotland, Norway, and parts of Sweden but is best remembered for […]

Trust your supply chain

26 March 2026 at 04:00
Whenever I hear or see headlines about a “supply chain vulnerability,” I think in terms of big enterprises and delivery of goods and services. You know — supplies. But in technology, the term “supply chain attack” means that an attacker has gotten into something trusted — such as a software vendor, service provider, hardware supplier […]
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