A Delaware-based defense and aerospace company has settled a case with U.S. agencies over government allegations that the firm neglected its cybersecurity obligations in its contracts.

ILC — the name the government uses to collectively refer to ILC Dover and ILC Astrospace — agreed to pay $13 million to resolve the False Claims Act allegations involving its contracts with the Department of the Army, Missile Defense Agency and National Aeronautics and Space Administration.

ILC, according to the government, submitted false or fraudulent claims for payment on contracts with the agencies because it knew it hadn’t complied with the contracts’ cybersecurity requirements over a period between 2018 and 2024.

For instance, ILC allegedly used a third-party company to store sensitive data in the cloud without proper safeguards, and didn’t develop and update mandated security plans for each of its covered information systems.

“The best response to cyberattacks is to prevent them from happening in the first place,” Benjamin Wallace, U.S. Attorney for the District of Delaware, said in a news release Tuesday. “The obligations that ILC violated exist to prevent bad actors from taking advantage of the United States’ technical innovation.” 

American industrial manufacturing giant Ingersoll Rand, the parent company of ILC Dover, said it inherited the issue when it purchased the firm.

“We became aware of this matter following our acquisition of ILC Dover in June 2024, took prompt action to address the identified issues, and were in compliance with applicable requirements by October 2024,” said Sara Hasell, a spokesperson for Ingersoll Rand. “We have agreed to resolve this matter with the U.S. Department of Justice without an admission of liability and remain committed to maintaining strong cybersecurity practices.”

The $13 million settlement is one of the bigger settlements since the Justice Department began using the False Claims Act in 2022 to penalize contractors over cybersecurity shortcomings. The False Claims Act is a Civil War-era law passed to deal with fraudulent contractors.

“To protect sensitive information from cyber threats, defense and aerospace contractors must comply with the cybersecurity requirements in their federal contracts and subcontracts,” said Assistant Attorney General Brett Shumate of the Justice Department’s Civil Division. 

Under the law, a private citizen can raise allegations that the contractor defrauded the government and is entitled to receive a portion of any settlement. The whistleblower in the ILC case, Philip Root, the company’s former director of cybersecurity, will receive $2.35 million.

Government contract attorneys say that a forthcoming regulatory overhaul could expose more companies to False Claims Act punishments.

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Major industry groups are clamoring for Congress to include a 10-year extension of a law that they say is essential to cyber threat information sharing in the annual defense policy bill.

Congress has mixed a series of short-term renewals and lapses of the Cybersecurity Information Sharing Act of 2015 (CISA 2015) — which provides legal protections for threat data exchanges between the government and private sector as well as between companies — since its previous 10-year sunset came and went last year. It’s now set to expire again on Dec. 11.

On Sunday, 35 business groups sent a letter to leaders of the House and Senate Armed Services panels, asking them to renew the law for 10 years as part of their final negotiations for the fiscal year 2027 National Defense Authorization Act.

“The case for a long-term reauthorization has only grown more urgent,” they wrote. “Recent incidents have demonstrated that advanced AI systems can identify and exploit software vulnerabilities at machine speed, collapsing the window between the discovery of a weakness and its use in an attack.”

“AI tools are also making sophisticated cyber capabilities cheaper, faster and easier to use, allowing threats to spread and adapt in real time,” they continued. “In this environment, the speed and breadth with which defenders share information determines whether they keep pace with adversaries. That speed depends on the legal certainty CISA 2015 provides.”

The letter’s signatories include overarching business groups like the Chamber of Commerce and Business Roundtable, the latter of which led the letter, as well as groups representing critical infrastructure sectors such as aviation, telecommunications and technology.

The House version of the fiscal 2027 defense bill includes a 10-year extension. The Senate version notably does not, and past efforts to include a long-term extension in the defense bill, which has been signed into law every year for decades, have encountered objections from Senate Homeland Security and Governmental Affairs Chairman Rand Paul, R-Ky.

Paul has hinged his support for any long-term extension of CISA 2015 on adoption of provisions designed to curtail past practices at the other CISA — the Cybersecurity and Infrastructure Security Agency — that he maintains threaten free speech.

Top Trump administration cyber officials have pressed Congress for a straightforward extension of the CISA 2015 laws. The Trump administration has also touted its efforts to crack down on what they said was the free-speech-limiting disinformation work of the agency CISA, which the Biden administration denied impinged on free speech and that it had ended anyway.

The annual defense policy bill often passes at the end of each calendar year or beginning of the next. A potential congressional committee leadership shuffle could change the equation for CISA 2015 in 2027, but the Dec. 11 expiration looms in 2026.

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Russian government-connected hackers compromised two defense firms and a law enforcement agency in North Atlantic Treaty Organization countries as part of an espionage campaign, Symantec researchers said in a blog post Tuesday.

The infamous group behind hacks of the Democratic National Committee during the 2016 election cycle was behind the attacks that Symantec identified in recent months: Swallowtail, also known as APT28, Fancy Bear and Forest Blizzard, notorious for its links to the Russian military agency GRU.

The hackers apparently chose the targets of their attacks carefully, including a naval shipbuilder, a manufacturer of military aircraft engines and the law enforcement agency. In the attack on the shipbuilder, Symantec saw “hands-on-keyboard” activity as the hackers repeatedly returned to a compromised host over the course of a week to steal credentialed material.

“Hands-on-keyboard activity means a human operator is choosing what to do next, rather than malware running a fixed routine,” Dick O’Brien, principal intelligence analyst at the Symantec Threat Hunter Team, told CyberScoop. “It’s essentially confirmation that the organization is a genuine target for the operators, not an accidental infection. It also confirms that further exploitation beyond the initial infection was at least attempted.”

O’Brien said the campaign reflected broader intelligence collection aimed at European government and defense targets, but its motive wasn’t certain. He speculated that it could have been part of campaigns to target nations aiding Ukraine in its war against Russia.

The hackers made use of the Hookedge backdoor first identified in August by Recorded Future’s Insikt Group. That firm saw attacks dating back to September of last year by the same group using the same backdoor on defense and diplomatic targets in Romania, Spain and Turkey.

Symantec also observed the hackers deploying a previously undocumented loader.

“What surprised us was that the attackers then moved their most sensitive follow-up activity onto a dedicated server, when Recorded Future had expected them to keep hopping between free services,” O’Brien said. “The loader, ld.exe, hadn’t been publicly documented. It decrypts its payload in memory, and it needs a key supplied only at runtime on the command line. Without both the encrypted file and the key, the payload can’t be recovered. We didn’t recover it, so we don’t know its function.”

This spring, researchers and U.S. government agencies said they quashed a Forest Blizzard espionage campaign. Western governments warned last year about the group targeting companies supporting Ukraine.

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The Department of Homeland Security is banning the use of Chinese AI model DeepSeek and its affiliates by civilian federal agencies.

The notice, set to publish Tuesday in the Federal Register, cites the Federal Acquisition Supply Chain Act and a review by the Federal Acquisition Security Council to bar federal agencies from buying all information technology products and services from parent company Hangzhou DeepSeek Artificial Intelligence.

The notice includes a copy of a letter from Secretary of Homeland Security Markwayne Mullin ordering the exclusion of DeepSeek products on June 26, indicating the ban has been in place for months.  

Mullin claimed that DeepSeek’s models present “multiple threat vectors” to civilian federal agency IT systems. Some are unique to the company’s country of origin, while others identify potential privacy and mass data collection concerns that could also apply to other Chinese and U.S. AI models.

He said DeepSeek models store data in servers based in China, where national security laws give the Chinese government wide latitude to request and obtain data from domestic companies. Models hosted directly by DeepSeek collect personally identifiable information from users and trace their “digital fingerprints” online. And like every other major AI model on the market, DeepSeek relies on a “prompt and response” process, something Mullin said “may result in the transfer of sensitive data” to the Chinese government.

“The transfer of the aforementioned information to the [People’s Republic of China], either independently or in combination with publicly available data, could produce actionable intelligence on U.S. persons and/or government programs,” Mullin wrote.

CyberScoop had reached out to CISA and DHS for further details.

The decision will exclude federal agencies from using one of the most popular and powerful Chinese open-weight AI models more than a year after U.S. frontier AI companies and the federal government accused DeepSeek’s makers of “systematically” distilling their models.

The order requires civilian agencies to exclude DeepSeek products from future procurements while removing any versions that might have been put in place prior to the ban. In the past, federal agencies have used their own discretion to block the use of models like DeepSeek, as the Department of Commerce confirmed to FedScoop last year.

Agencies can request exceptions, but must submit their request 60 days in advance and must provide a “compelling justification” for the action, like an inability to fulfill a mission-critical function, or other national security considerations.

Mullin also said agencies that remove DeepSeek from their IT are “encouraged” to enhance their security controls to protect against the possibility that their networks were compromised through the Chinese AI tool.

“During the period between the issuance of this order and full removal of covered articles from agency systems, federal agencies are encouraged to take steps to address risk to their systems, such as monitoring the flow of traffic in and out of the agency, implementing enhanced logging and controls on data exfiltration for the relevant systems, and detecting and flagging anomalous activity,” he wrote.”

DeepSeek is the only Chinese AI model named in the order, but it’s just one of several Chinese open weight AI models that have worried national security officials or have been accused of illegally distilling U.S. models, along with Moonshot AI, the makers of Kimi and Alibaba, makers of Qwen.

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Spyware has been detected on devices used by some of Serbia’s most prominent figures connected to the country’s political upheaval, according to researchers who announced their findings Monday.

Vladan Ðokić, the rector of the University of Belgrade and prominent figure in the country’s student protest moment, and Rade Bajić, a lawyer with Serbia’s Public Prosecutor’s Office for Organized Crime, were targeted, according to research from the SHARE Foundation, a Serbian digital rights group, and The Citizen Lab at the University of Toronto.

The new cases follow what the SHARE Foundation described in September as the largest documented wave of spyware surveillance in the country to date. That wave included 14 people, among them a member of parliament and a local government official, targeted with Pegasus and a new version of the NoviSpy Android spyware.

Đokić, an architect and former dean of the university’s Faculty of Architecture, has led the University of Belgrade since 2021. He has publicly backed the student-led anti-corruption protests that followed the 2024 Novi Sad railway station canopy collapse, and government officials and pro-government news outlets have portrayed him as a driving force behind the movement.

His tenure has included direct confrontations with the government. In March, Serbian authorities raided his offices, and reportedly seized computers and servers. After the incident, Đokić accused authorities of trying to humiliate the institution, saying police entered without prior notice or clear legal grounds.

Andrijana Ristić, a researcher at the SHARE Foundation, whose organization conducted the initial forensic analysis, said the case is the second confirmed Pegasus infection in Serbia this year. She declined to say when the infection was discovered, citing the sensitive nature of the investigation.

The device was then given to The Citizen Lab to further confirm that Pegasus was used.

“We found with high confidence that it was infected with NSO Group’s Pegasus spyware in 2026,” a report released by the lab reads. “The infection leveraged a zero-click exploit. No action, such as a click or opening a file was necessary for infection.”

Ðokić was unavailable for comment. 

Bajić was on the legal team prosecuting a high-profile corruption case involving Serbian government officials signing off on a $500 million hotel and residential tower planned for a protected historic site in Belgrade. According to recent reporting from The Guardian, Serbian President Aleksandar Vučić allegedly pressed government officials to strip the building’s protection so that Affinity Partners, the private investment firm owned by Jared Kushner, could develop it into a Trump hotel. 

Bajić believes his work on the case led to him being a target of spyware. He pointed CyberScoop to news articles and Serbian television programs where Vučić referred to him as a “criminal” and part of a “gang that fabricated” the corruption case. 

“In my opinion, my involvement in this case was the sole reason for this unlawful spyware attack,” Bajić told CyberScoop.

Ristić told CyberScoop that Bajić received a threat notification from Apple, but neither SHARE nor Citizen Lab could pinpoint exactly what type of spyware his device was infected with. The investigation of Bajić’s device is ongoing.

Ristić described surveillance in Serbia as longstanding, tracing it to earlier tools such as FinFisher and alleged dealings with the hacking group Hacking Team — along with the original NoviSpy report by Amnesty International in 2024, which identified journalists, activists and civil society members as targets.

“I would definitely say that [spyware] is widespread,” she told CyberScoop. “I think right now it’s gaining much more media attention, especially internationally, because of the political moment.”

John Scott-Railton, senior researcher at The Citizen Lab, said “NSO has spent a decade claiming to turn over a new leaf each time an abuse surfaces. But there is no hiding the truth: Pegasus is a technology for repression. So it’s no accident that people standing up for freedom in the face of corruption keep getting hacked with NSO’s products.”

Serbia will hold parliamentary elections Oct. 25, with Vučić fighting to retain control of the government. The vote comes amid the student-led protest movement, fueled by anger over government corruption, that has grown into the largest challenge to Vučić’s rule in years.

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The Justice Department and FBI announced that they had seized two hacking tools connected to the Chinese government-linked group Flax Typhoon and a China-based company that the U.S. government has repeatedly taken action against, including with a new multi-agency advisory Thursday.

The domain name seizures were meant to deny hackers access to the vulnerability scanning tool Microscan and the spearphishing tool FishHub created by the Chinese firm Integrity Technology Group, which the United States sanctioned last year. The U.S. government in 2024 also made the company the focus of a takedown operation, saying it was behind a massive botnet.

Authorities were granted the court-authorized seizures in the Western District of Pennsylvania, the FBI and DOJ announced Thursday in unsealing documents in the case.

U.S. agencies paired the announcement of the seizures with an advisory from the FBI, Cybersecurity and Infrastructure Security Agency and National Security Agency.

“Chinese government-linked cyber threat actors, enabled by the Integrity Technology Group, are combining automated scanning tools, large-scale botnets, and hands-on exploitation techniques to target and steal sensitive data from organizations worldwide, including U.S. critical infrastructure sectors,” the advisory reads. “These actors exploit vulnerabilities by using scanning tools, cross-site scripting attacks, and password spraying on Microsoft Exchange servers, while establishing persistence through VPN software and exfiltrating emails and credentials using scripts.”

Similar to previous allegations, law enforcement said Integrity Tech leaned on a Mirai-variant botnet of internet-of-things devices, in this case to facilitate Microscan.

Microscan targets have included a South Carolina power company, airports in Japan and Poland, critical infrastructure companies and universities in Taiwan and others, according to the FBI and DOJ. Victims of FishHub, which downloads malware on their networks after gaining access through spearphishing, include Taiwanese universities.

“Chinese government-affiliated actors continue to position themselves within critical infrastructure networks, including operational technology (OT) systems, with the aim of disrupting critical functions at a future time of their choosing,” said Chris Butera, acting executive assistant director for cybersecurity at CISA. 

“Under the FBI Cyber Strategy, we pursue both the actors who threaten critical infrastructure and the enterprises that support them,” said Brett Leatherman, head of the FBI’s Cyber Division. “Integrity Technology Group, a China-based company with ties to the Chinese government, is one of those enterprises, acquiring or developing cyber tools and hosting infrastructure for actors targeting networks worldwide.”

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Collaboration with industry is key to balancing AI security risks and benefits, as well as staying ahead of China and other adversarial nations, National Cyber Director Sean Cairncross said Thursday.

The Trump administration is facing pressure from some quarters of Capitol Hill and even some artificial intelligence executives to establish regulations or embrace legislation to guard against the technology’s risks, something the president himself has rejected.

“We’ve never faced a world where our adversaries have the frontier in this space, and so our attempts to optimize that innovation and security is is something that is ongoing, but is increasingly efficient, and it depends on our relationship with industry and our ability to work collaboratively among the the interagency,” Cairncross said at the AI Edge event hosted by The Washington Post.

That collaboration is ever-increasing, he said, such as with the National Institute of Standards and Technology’s Center for Advancing Innovation and Standards for Super Intelligence (CAISSI).

“Industry coordination on this, across critical infrastructure sectors, is improving both on industry-to-government and within industry,” he said. “There is collaboration with CAISSI and others as well to do evaluation and testing on these models. That includes work on guardrailing, sandboxing, et cetera.”

But “we’ve seen in the past, once the government is introduced into this space directly, there is a tendency for the government to start to want to adjust the dials directly, and it is difficult to reverse that,” he said. “I think that would slow, at this point, the innovation cycle that is to our benefit.”

One of the things that has increased the calls for stronger government action is when OpenAI acknowledged that its AI agents went outside testing to hack Hugging Face in July.

“Since that incident,” Cairncross said, “the engineering work that’s gone into improving systems awareness of that has increased by an order of magnitude.”

But the AI companies need to secure themselves against China for the United States to stay in the lead, he said.

“Both on the hardware side and on the computer science side and engineering, we’re in the lead. I think our lead is significant,” Cairncross said. “The Chinese have designed a sort of fast follow that relies quite a bit on distillation efforts … And I think industry is increasingly aware of this: that their systems are secure, that the technology, as it’s being developed, is protected.”

Other administration officials have called out China for allegedly using distillation to train its models. In July, Michael Kratsios, who leads the White House Office of Science and Technology Policy, claimed that Moonshot AI, a Beijing, China-based AI company, had distilled Anthropic’s recently released Fable model to develop its own K3 model.

On Wednesday, OpenAI said clusters of activity tied to Moonshot AI were part of a “coordinated” distillation campaign.

Cairncross said earlier this week that the U.S. government is collaborating with industry to integrate AI into critical infrastructure for security purposes. 

Cairncross said the Trump administration wants to make sure national security systems do the same. One of his office’s pilot programs is with the Defense Department and the Cybersecurity and Infrastructure Security Agency “that touches on the defense infrastructure in particular,” in addition to a pilot on rural hospitals.

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A China-aligned cyber espionage group targeted U.S. artificial intelligence policy experts through phishing emails that impersonated prominent officials, economists and an employee of AI company Anthropic, according to research released Thursday by Proofpoint.

The campaigns, which the cybersecurity company attributed to a group it calls TA419, sought access to cloud accounts held by people at think tanks, universities and law firms. The activity comes amid growing U.S.-China competition over AI development, export controls, semiconductor supply chains and military uses of the technology.

Proofpoint said the group began a campaign in July by impersonating Lynne Parker, a former principal deputy director of the White House Office of Science and Technology Policy, and economist and foreign policy expert Heidi Crebo-Rediker. The emails invited recipients to join a supposed AI policy advisory committee or contribute to a report on AI export controls and supply chains.

The initial messages did not immediately request passwords or direct recipients to a sign-in page. Instead, they appeared designed to begin a conversation and establish trust. After a target replied, the group sent a shortened link said to contain more information.

The link redirected recipients through several websites before leading to a false Microsoft OneDrive sign-in page. Proofpoint said the setup was intended to capture account credentials and active browser sessions.

The firm described the operation as an adversary-in-the-middle phishing attack. In such attacks, the victim interacts with genuine Microsoft infrastructure during part of the process, looking and behaving like a legitimate sign-in. The person may enter a password, complete a multifactor authentication prompt and pass access checks while the attacker captures the session information created by the login.

Proofpoint said TA419 used a modified version of an open-source phishing tool known as Frameless BitB. The tool creates a false browser window within a webpage, imitating a familiar sign-in prompt. In this case, it was used to present a fake Microsoft login window over a page that resembled a OneDrive document-sharing site.

Proofpoint also identified a February campaign in which the same group impersonated a senior Anthropic employee. That message asked an AI policy analyst at a U.S. think tank for feedback on the military’s use of Anthropic’s Claude AI models, which was a highly controversial topic at time.

The report did not identify victims or state whether any accounts were compromised.

Proofpoint said TA419 has targeted individuals connected to U.S. and Japanese think tanks, defense contractors, universities and law firms since at least April 2025. Its interest in AI policy, the firm said, appears to extend an existing focus on defense, national security, energy, international relations and foreign policy. The group also registered domains resembling real organizations, including the Heritage Foundation, the World Economic Forum and the Japan-Taiwan Exchange Association.

The report does not directly link the activity to the Chinese government. China has repeatedly denied conducting cyber espionage, while accusing the United States of cyber operations against Chinese interests.

The White House, along with several AI companies, have also accused China of distilling U.S. models in order to power open-weight models run by Chinese companies.

Indicators of compromise can be found on Proofpoint’s website.

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A group of Russian government hackers is refining its attacks to make it easier to eavesdrop on victims and significantly expand its targets among governments, think tanks and nonprofits around the world, with an emphasis on Ukraine, Microsoft research published Tuesday concludes.

The company examined a change in the approach of a group it calls Star Blizzard, which is affiliated with the Russian Federal Security Service (FSB), and its novel malware, RedFlick.

“In 2026, Microsoft observed Star Blizzard shift from exclusively targeted spear-phishing operations to also conducting larger-scale phishing campaigns,” Microsoft wrote in a blog post. “The larger-scale phishing operations were observed at a scale not previously seen from the actor, ranging from tens to hundreds of email messages per campaign. This change likely reflects the actor’s adoption of a mass-mailing phishing platform to automate campaign execution and increase the likelihood of successful compromises by significantly expanding the initial targeting pool.”

Microsoft said the RedFlick campaigns have targeted Ukrainians, as well as financial institutions and governments that have supported Ukraine. It said it has seen the activity affect over 100 organizations that are primarily in the United States or United Kingdom.

One of the things that makes RedFlick effective isn’t just its pure volume, but the fact that its “infection flow only requires a single user interaction, reducing friction in the compromise process,” the company said in its blog post.

The most common phishing lure is inviting potential victims to exclusive events, but it also solicits its targets with information about supposed tax audits, payment notices and fines.

“Since January 2026, Microsoft observed at least 13 distinct large-scale phishing campaigns targeting primarily NGOs, think tanks, and government organizations worldwide,” the company wrote.

The initial targets were in Ukraine but by spring it was going after those outside the nation it invaded in 2022. “The actor’s shift from Ukraine-focused operations to global targets could indicate Star Blizzard initially targeted Ukraine to test their new capabilities,” Microsoft wrote.

RedFlick has been a key adaptation as “a malware delivery technique that helps evade detection by initiating a set of scheduled tasks to deploy the actor’s custom backdoor, CosmicPulse,” the company said.

This isn’t the first time that Microsoft has called out Star Blizzard, with past observations coming in 2023 and 2025 and takedown efforts coming in 2024.

Star Blizzard has been known by other names as well: SEABORGIUM, Callisto Group, TA446 and COLDRIVER.

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OpenAI and the Ukrainian government have agreed to a partnership that will provide AI tools and subsidized computing resources to better protect the nation’s critical infrastructure from cyberattacks.

The agreement, announced Wednesday at OpenAI’s New York office, will provide Ukrainian cybersecurity officials with access to advanced AI models designed for cybersecurity work through the company’s Daybreak program. OpenAI said it is also pledging over $1 billion in subsidized tokens to support the initiative.

During a panel discussion Dmytro Kushneruk, consul general of Ukraine in San Francisco, outlined how the tools would be used for cybersecurity automation, including functions such as incident response, threat triaging, login analysis, inventorying systems, code analysis and validating vulnerabilities.

In nearly all cases, Kushneruk said the primary benefit was carrying out those functions at machine speed. But this speed is meant to complement, not replace, Ukrainians’ human expertise.

In regard to incident response Kushneruk said humans must view “thousands and thousands of these logs and they have to find what’s really important, that’s why AI can give capable defenders really much greater advantage and leverage.” 

“This is why the object is not to replace the cyber defender with AI, but to make sure the cyber defender acts faster,” he added.

Kushneruk said that for Ukraine, the partnership “is really not about protecting computers, it is about actually keeping our country running.”

Ukraine faces approximately 6,000 cyberattacks per year, or about 15 per day, according to Kushneruk. Over the past twelve years, the country’s critical infrastructure, including electricity and water systems, has endured sustained attacks from Russia in the form of cyberattacks and physical strikes.

Since Russia’s 2022 invasion, Ukraine’s critical infrastructure has been under constant threat. While missiles remain the primary concern, Kushneruk said Ukraine has been preparing to protect vital services since Russian GRU hackers shut down the country’s power grid in 2015. 

He added that while the country was “maybe not so much prepared” to deal with the fallout in 2015, it improved over time, including the resilience displayed in 2025 when trains kept running after Russian hackers attacked Ukraine’s railway system.

Some national security experts and congressional committees have explicitly cited the resilience of Ukrainian critical infrastructure as a model for U.S. industry.

Naz Durakoğlu, minority staff director of the U.S. Senate Foreign Relations Committee, said there is “pretty much across the board” agreement between the parties in favor of similar adoption of defensive AI tools by U.S. critical infrastructure operators, though issues like regulation remain sticking points.

“This is something that’s already happening, and frankly, it’s just kind of a basic duty of government to make sure that when you turn the tap on, water comes out, the electricity doesn’t go out, and hospitals keep running and treating patients,” said Durakoğlu. “So there is a broad understanding that this is a major issue, and I will say seeing what Ukraine has to go through day-to-day is also a huge wake-up call to our members on a bipartisan basis.”

OpenAI has publicly pushed for its product, and AI at-large, to be used to solve these types of problems. Company president and co-founder Greg Brockman signed an open letter released earlier this year calling for “collective action” and widespread use of AI models to find and fix vulnerabilities before the rest of the world,  including foreign governments and cybercriminals, got access to the same capabilities.

According to Politico, OpenAI CEO Sam Altman met with U.S. power companies in July to discuss using AI to protect the nation’s electrical grids.

On Wednesday, OpenAI’s national security policy head, Sasha Baker, said the company felt “urgency” to try to strike similar agreements with other governments and industries.

“There’s this period of time where we’re really rushing to get [these tools] in the hands of critical infrastructure operators, of governments around the world, of people who want to patch systems, defend their networks, remediate vulnerabilities because we know as these tools proliferate out there in the ecosystems, there are going to be bad guys out there that also try to use them,” said Baker. “So, we have this window of time to take action and we’re really motivated by the idea that we need to act with some urgency.”

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President Donald Trump continued to defend his administration’s hands-off approach to AI regulation in the wake of hacks carried out by U.S. commercial frontier models that have rattled policymakers and industry veterans and spurred calls for more regulatory oversight.

In a Truth Social post Monday, Trump dismissed worries from critics that “AI is going to kill us,” comparing them to complaints from environmentalists about climate change, which he also alleged was a false narrative. He also posited that nothing may matter more than future U.S. dominance of the technology over geopolitical rivals like China.

“Whoever wins AI, WINS!” Trump posted. “We are leading now over China, and everyone else, and I’m going to keep it that way! I’m not going to stifle Growth, of something that will be bigger than the Industrial Revolution, or the internet, itself.”

Trump has previously suggested that good leadership is the only regulation the U.S. needs for artificial intelligence. He later claimed the Department of Justice was ready to “rein things in” if companies overstepped, but offered no specifics on enforcement, legal authority, or where he would draw that line.

“We will be careful, and that’s why we have the Department of Justice, and other Law Enforcement bodies, that will rein things in if we have to, but I will only encourage AI or, SI (SUPER INTELLIGENCE)!” Trump concluded.

Secretary of the Treasury Scott Bessent recently told Congress that private lawsuits could force AI companies to institute better security, saying it’s clear what the government “shouldn’t do on safety is to give these labs a liability exemption, which is what they are asking for.”

“The best way to guarantee safety is that the creators are liable for what they build and generate,” Bessent said.

Beyond existential fears, critics also argue that inadequate regulation or cybersecurity controls in current AI systems make them impossible to fully control or monitor.

Recently, former President Barack Obama criticized the argument from Trump administration officials that the free market will naturally push industry toward self-regulation and that “these companies will solve the safety issues because they have every incentive to do so.”

“If it turns out to be dangerous, people will just sue them and they’ll be worried about financial liability,” Obama said last week in remarks at Colgate University in New York. “That’s not how we treat airlines or drug companies or food companies.”

The Trump administration issued an executive order earlier this year that set up a voluntary testing regime for some commercial frontier models, largely at private industry’s discretion. That order was significantly delayed and altered by AI industry boosters to ensure that governmental review did not cause companies to postpone their release timelines for new models.

That agreement did not last long before fast-moving events caused the administration to strike another, non-public agreement with frontier AI companies like OpenAI, Anthropic and others governing pre-release testing for models.

But the Trump administration has consistently argued that regulation will harm, not help, U.S. innovation and global competitiveness, and the threat of China frequently looms large in those discussions.

Experts believe China’s AI models are behind U.S. models at the top of the market, where OpenAI and Anthropic have consistently pushed the frontier limits of model capabilities. But Chinese lower and “middle class” models are often cheaper, more efficient and can even outperform more powerful models because users can dedicate exponentially more tokens for their tasks.

The U.S. government has accused Chinese AI companies of conducting widespread, “systematic” distillation of U.S. frontier models, with the implicit encouragement of Beijing.

In defending the administration’s approach, David Sacks, co-chair of the President’s Council of Advisors on Science & Technology and a top adviser on AI issues, specifically cited the threat from China and other countries that he claimed would not be subject to similar restrictions.

“We’re not the only country that has advanced AI labs, and as the president declared…we have to win this AI race,” Sacks told Politico in May, later adding “I think that’s the first thing to recognize is that if somehow we slow down or stop AI development, it doesn’t mean that AI progress is going to stop. It just means it’s going to happen in other countries and specifically China.”

Some observers have alleged that despite their larger differences, top leaders in the U.S. and China may view AI similarly at the strategic level, specfically that increased adoption – and risks – of AI are inevitable.

Ronan Murphy, director of the tech policy program at the Center for European Policy Analysis, posited that while there may not be a formal agreement between the two countries, “they share views both in Beijing and in Washington, particularly in the White House, of: you have to allow this to happen.”

“Clearly there’s a call for regulation from many quarters of AI in the U.S. and elsewhere, but in the White House – and we heard David Sacks talking about it [recently] – It’s ‘let them cook,’ and the Chinese approach seems to be the same,” said Murphy in a press briefing. “So there might be consensus at that level, if nothing else.”

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North Korean hackers are infiltrating tens of thousands of job seekers’ computer networks by posing as prospective employers, such as artificial intelligence firms, to steal sensitive information and millions of dollars worth of cryptocurrency, U.S. and allied governments warned Friday.

The security agencies behind the alert, attributed the group, known as WaterPlum or Contagious Interview, as operating under the 313 General Bureau of the Munitions Industry Department subordinate to the Central Committee of the Workers Party of Korea. The efforts dovetail with those of North Korean IT workers.

“WaterPlum actors pose as prospective employers to target software developers and IT professionals worldwide under the pretext of attractive job opportunities,” the agencies wrote. “They often impersonate legitimate Artificial Intelligence (AI), cryptocurrency, or Non-Fungible Token (NFT) companies and have also used recruiting services.”

Additionally, “Some WaterPlum actors also operate as North Korean IT workers performing web system design and development tasks on corporate web systems for clients,” read the alert from agencies in Japan, Australia and Germany, alongside the FBI and the Department of Defense’s Cyber Crime Center.

They’ve used the stolen information to fuel other operations, and the overlap between WaterPlum and North Korean IT workers is substantial, the agencies said.

“WaterPlum actors and North Korean IT Workers used the same IP addresses when accessing laptop farms, using cloud-sourcing services, and applying for positions at the Japanese cryptocurrency exchange,” they wrote.

Collectively, WaterPlum has infected more than 30,000 devices in more than 100 countries, targeting IT professionals in Japan, the United States, Europe and other nations. Its operations have transferred the equivalent of nearly $11 million of cryptocurrency from over 7,000 crypto wallets to North Korea, according to the alert.

The law enforcement agencies said they have had some success tackling the group, but are seeking further cooperation and released details in the alert about WaterPlum’s tactics, techniques and procedures.

“For the first time in Japan, authorities successfully identified, investigated, and dismantled a ‘laptop farm’ operated by an enabler in Japan,” the alert reads. “Japanese authorities obtained evidence this cyber actor group transferred several hundred million Japanese yen in cryptocurrency to foreign locations outside of Japan. The FBI continues to identify and prosecute US-based actors providing illicit facilitation services to North Korean IT workers.”

The warning comes as the Multilateral Sanctions Monitoring Team, an international panel overseeing UN sanctions against North Korea, released a report exposing thousands of North Korean nationals employed in industries around the world.

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The Coast Guard and FBI boarded two foreign vessels coming to the United States last month to investigate potential cyberattacks on the ships, according to a joint statement from the agencies Wednesday.

The “joint offshore security boardings” of the two commercial ships in the Gulf of Mexico on Aug. 21 and Aug. 24 “were designed to ensure integrity of the vessel’s operational and information technology systems following indications that the networks of both vessels were compromised,” according to the joint statement.

“Currently, there are no reports of operational disruptions, vessel instability, physical danger to crews, or environmental impacts,” the statement reads. “The Coast Guard is actively managing communications with port operators, vessel owners, and local maritime stakeholders to ensure port operations continue safely and without interruption.”

The vessels were reportedly tankers carrying oil and natural gas, and the first got hacked in the Strait of Gibraltar and lost communication for over 30 hours. Authorities were said to be  investigating whether Iran, or perhaps another group seeking to exploit the conflict between Iran and the United States, was behind the attacks.

Coast Guard cyber teams have been investigating “dark fleets” carrying sanctioned oil from Iran and Russia, which rely on digital masking to hide their operations and carry enhanced cyber risks, The Wall Street Journal reported in June.

Then-President Joe Biden signed an executive order in 2024 giving the Coast Guard additional authorities to respond to cybersecurity incidents, citing the risks that a maritime cyber incident could cause “cascading” harm to the global supply chain.

The Aug. 21 boarding party included Coast Guard law enforcement personnel, Coast Guard Cyber Protection Team members, a vessel inspector and FBI Cyber Action Team operators, who boarded “to conduct a comprehensive cyber security boarding and investigation,” according to the agencies’ joint statement. A similar team made up the Aug. 24 boarding party.

“The captain, crew, and shore-side corporate staff were critical partners in helping to ensure the threats were mitigated,” the statement reads.

Top Trump administration cyber officials have refused to answer questions from reporters recently about Iranian cyberattacks during the Middle East conflict. Trump himself has rejected the idea that Iran was behind a recent spate of attacks on U.S. water facilities.

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 The U.S. government is accusing Chinese AI companies of engaging in a deliberate and “systematic” effort to illegally distill U.S. frontier AI models and their capabilities. 

According to a joint cybersecurity advisory from the National Security Agency, the Cybersecurity and Infrastructure Security Agency and the FBI, the sheer scale of these efforts since 2024 indicate that distillation is a critical part of China’s AI industrial policy.

“China-based artificial intelligence companies are conducting systematic extraction of proprietary functionalities and capabilities of U.S. AI companies’ models through industrial-scale knowledge distillation campaigns that form the core—not merely a supplement—of their AI development strategy,” the agencies wrote. 

The advisory names Chinese companies like DeepSeek, Moonshot AI, Alibaba, MiniMax, StepFun, and Z.AI, saying they spent billions of tokens across millions of exchanges and requests with frontier U.S. AI models like Anthropic’s Claude, OpenAI’s ChatGPT, Google Gemini, and xAI’s Grok, since at least late 2024.

The U.S. agencies said the companies used data culled from these interactions to strengthen their own domestic models, a practice that is tacitly encouraged but not directed by political leaders in Beijing.

DeepSeek, for example, distilled frontier U.S. models to generate synthetic training data for its R1 and R3 models, including four different versions of Claude, two versions of Gemini, five versions of ChatGPT and Grok 4. Those models helped train DeepSeek’s capabilities in areas like agentic functioning, question and answer optimization, creative and occupational writing and others.

Another Chinese company, Moonshot AI, allegedly distilled 18 different U.S. models – including Fable 5, Anthropic’s current, most advanced commercially available model – to train its Kimi-K2 and Kimi K3 models. The company used millions of queries meant to extract enhanced capabilities in areas like agentic reasoning, coding and data analysis, computer vision, larger logical frameworks, visual processing and others.

Chinese AI companies manage a sophisticated set of tools and systems that route requests and prompts through multiple pathways to avoid detection.

The advisory lists common tactics observed by Chinese companies, including spreading requests across different accounts, models and platforms, using native APIs, remote cloud providers, and third-party aggregators to obfuscate user metadata, and leveraging proxies and gray tech markets to get around geographic restrictions, terms of use and safeguards built into frontier models.

“Addressing industrial-scale distillation merits a coordinated response across the AI ecosystem, including effective information-sharing, spanning the U.S. Government, private industry, and allied nations,” the advisory stated.

For decades, U.S. national security officials and western business leaders have accused China of leveraging cyberattacks, insider threats and other forms of economic espionage to pilfer proprietary or sensitive technologies from U.S. businesses.

In June, Michael Kratsios, White House head of Office of Science and Technology Policy, made a similar accusation about MoonshotAI of distilling Fable 5 to train its own models, and described a similar “sophisticated” system for evading guardrails and restrictions on usage.

The warning Tuesday levies similar charges about Chinese theft of American tech, but for frontier AI companies that are facing lawsuits themselves from artists, authors, media organizations and other parties who say AI companies illegally trained their models on copyrighted or trademarked work.

Even within the competitive AI industry, companies and open-source organizations commonly share weights and measures for AI systems, or distill other AI systems in the course of legitimate work or research.

The agencies acknowledge this reality, but claim that Chinese companies are engaged in “aggressive, malicious, and targeted distillation activities at an industrial scale.”

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A group of European Parliament representatives are seeking to delay Serbia’s entry into the European Union and send other messages to Belgrade over the government’s usage of spyware.

The 29 members of the European Parliament (MEPs) cited a report this week from the SHARE Foundation about spyware found on the phones of Serbian student activists and that targeted others as well. The foundation, along with Amnesty International and The Citizen Lab at the University of Toronto, discovered both Pegasus and NoviSpy spyware infections.

The groups didn’t assign responsibility for the Pegasus infection, but said evidence from the NoviSpy infections pointed to Serbian government authorities.

“This is not a technical glitch; it is a direct state attack on democracy,” the 29 MEPs wrote Friday. “With upcoming elections ahead, Aleksandar Vučić’s regime is using illegal digital surveillance to systematically dismantle political opposition.”

The MEPs’ demands include slowing Serbian accession into the EU until completing an investigation into Serbia’s spyware usage and making Serbia’s accession contingent on improving rule-of-law accountability.

They also said President Ursula von der Leyen should cancel a planned visit to Serbia. European leaders were already outraged by the response from Serbia to the death of former Bosnian Serb army commander and war criminal Ratko Mladic, with Enlargement Commissioner Marta Kos canceling her own visit Friday over the alleged “glorification” of Mladic.

The spyware letter adds to the pressure, said Hannah Neumann, an MEP who signed it.

“It could very well be that some of these demands will be honored, but for sure the spyware won’t be the only reason why,” she told CyberScoop. Serbia’s history of spyware use contributed to Friday’s letter, she said: “We have been critical towards the government for already quite some time and demanded consequences so this was another straw.”

The Serbian government did not respond to multiple requests late Friday for comment.

“Appeasement has failed,” the members wrote. “It is time for the Commission to demonstrate that compliance with fundamental democratic standards is a non-negotiable requirement, not an option.”

European Union member nations have faced their own allegations over using spyware, and recent revelations of spyware found on the device of a member of the European Parliament’s PEGA Committee has prompted some to renew calls for enactment of recommendations from that committee to address spyware abuses.

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A cybersecurity working group at the G7 is urging governments to accelerate defenses against quantum computers that could break some existing forms of public key encryption.

The working group’s report, prepared in June at the G7 Summit in France, said organizations “can no longer afford to postpone” work transitioning critical systems and data to “post-quantum” forms of encryption.

“The quantum threat remains off the radar for many organizations and not properly resourced, with other security concerns taking precedence,” the working group report said. “Yet, a successful and collective transition to PQC can only be achieved if organizations understand that the quantum threat is an economic and business risk, and not merely a cryptographic risk.”

Instead, leaders in government and industry “must reframe the quantum threat from a distant future problem to a near-term threat that demands action across all sectors, not just critical infrastructure.”

The report acknowledged uncertain timelines for quantum computers, but identified that threats like harvesting current sensitive, encrypted data to decrypt it in the future do exist today.

The report also warned that quantum computers could compromise authentication and assurance mechanisms—by forging trusted data or stealing confirmation— jeopardizing secure communications and legal contracts.

The working group’s conclusions are largely in line with what governments have been recommending for years, urging industry to inventory and prioritize their critical systems and shift over to newer, “post-quantum cryptography” encryption algorithms.

These encryption algorithms, originally designed by independent cryptographers and vetted by the National Institute for Standards and Technology and National Security Agency, will be used to protect the government’s own systems and data from cybercriminals and foreign governments.

The Trump administration recently issued an executive order directing agencies to boost the domestic quantum industry and move up internal timelines for migrating to PQC encryption from 2035 to 2030. Google, a potential industry bellwether, and other companies have opted to move their own migration timelines to 2029.

But while that work has proceeded on schedule in some areas, like the federal government and the highly regulated financial sector, it has lagged in other industries where owners and operators feel they have more immediate concerns than quantum computers.

“We acknowledge that transitioning to PQC is not a problem for individual organizations to solve in isolation, but rather a collective transition that can only be achieved with early engagement, coordinated planning and informed decision making across the public and private sectors,” the working group wrote.

While often referred to as “Post-Quantum” encryption, the reality is more complex. Cryptographers believe the algorithms selected by NIST and NSA will stand up to attacks from a quantum computer, but since one doesn’t exist today, designing cryptographic protections against it requires some guesswork and mathematical estimation.

Estimates can be wrong, or overlook the entire cryptographic attack surface. Some NIST-selected algorithms have already been broken with traditional computers or AI. That’s why the agency backs multiple algorithms and concepts like “crypto-agility,” allowing organizations to quickly switch between them.

The G7 report was signed by the U.S. Cybersecurity and Infrastructure Security Agency (CISA), the UK’s National Cyber Security Centre (NCSC), The French Cybersecurity Agency (ANSSI), Germany’s Federal Office of Information Security (BSI), Canada’s Communications Security Establishment (CSE), Japan’s National Cybersecurity Office (NCO) and Italy’s National Cybersecurity Agency (ACN).

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A class action lawsuit filed by victims of child sexual abuse material (CSAM) accuses xAI of training Grok’s synthetic deepfake “nudify” capabilities on real images and videos of child abuse.

The lawsuit, filed Wednesday in the U.S. District Court for the Northern District of California, names Jane Doe 1 and other anonymous individuals as plaintiffs, calling Doe “an identified victim of child pornography tracked by the Federal Bureau of Investigation’s Child Exploitation Notification Program.”

Doe was a pre-school aged child when her perpetrator’s abuse began and continued for years, for the explicit purpose of making CSAM material to distribute online. Media depicting the victim has circulated online since at least the early 2000’s, with, according to the lawsuit “hundreds of thousands of files” being included in law enforcement submissions to the National Center for Missing & Exploited Children (NCMEC).

As part of the FBI’s program, she still receives updates when images related to her abuse surface online, and the suit alleges her material has “well known hash-values” that have shown up in deepfakes created with Grok and spread on X.

“CSAM depicting Plaintiff has been found on xAI as part of investigative reporting, takedown request efforts, and criminal investigations, arrests, and convictions for violations of state and federal laws,” the lawsuit states. It also claims “xAI, using Grok, has generated images depicting Plaintiff and the child pornography series in which she is the victim.”

The lawsuit cites “Masha’s Law” as the basis for its allegations. That law, passed in 2018,  protects civil legal remedies to victims of child pornography and online exploitation.

According to an analysis by the Center for Countering Digital Hate, during an 11-day period between Dec. 2025 and Jan. 2026, Grok created more than 3 million sexualized images, at least 23,000 of which appeared to depict children.

On Jan. 14, after the period tracked by the center, Musk wrote on X that he was “not aware of any naked underage images of Grok. Literally zero.” Must also implied that users, not his technology, were primarily responsible for images created using Grok while simultaneously claiming the model “will refuse to produce anything illegal” if asked.

The suit claims that while other competitors enacted guardrails to prevent their AI models from generating “nudified” images of adults and children, xAI “did the opposite,” embedding Grok and it’s deepfake capabilities directly into X, effectively creating an instantaneous CSAM generation and distribution system for the internet.

While xAI said it built in guardrails to prevent Grok from creating deepfake sexualized images, the suit notes that they are “very weak,” diverge from standard industry best practice and can be easily circumvented.

The system rejects prompt prompts where the chatbot detects “clear intent by the user in the phrasing of their request,” the complaint stated. “Indirect or euphemistic prompts can easily slip past a text-based filter, so if the model retains the underlying capability to generate sexual or abusive content, some volume of CSAM becomes effectively inevitably generated by the system.”

The lawsuit also notes that Grok’s terms of service treat anything that gets posted on X as training material, meaning any CSAM material posted on the site over the past year was likely ingested by the model.

The alleged victims are asking for monetary damages along with injunctions to prevent Grok from creating additional harm through future sexualized deepfakes or CSAM. The suit lists “thousands” of members in the class, all with similar claims against xAI.

A request for comment on the lawsuit sent to xAI was not returned.

Grok’s nudification capabilities, and xAI owner Elon Musk’s dismissive public attitude around the fallout have led to international outrage, criminal investigations and a wave of private lawsuits against the company.

Another lawsuit against X filed earlier this year claims that a man used Grok to generate thousands of instances deepfake CSAM material of his stepdaughter. That lawsuit also claims xAI withheld information from law enforcement authorities that would have helped them identify the stepfather as the perpetrator. Days after authorities traced and seized the material on the wte, he committed suicide.

In July, Musk sued Minnesota Attorney General Keith Ellison over a new state law that bans nudification technology and impose a $500,000 fine for each instance where an AI tool is used to generate or alter an image in a sexually explicit way. Musk’s lawsuit claims the ban violates the First Amendment.

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Federal authorities Wednesday revealed a multi-layered Chinese state-sponsored espionage operation that’s targeted and compromised U.S. critical infrastructure, including multiple federal agencies, since 2018. 

Officials seized domains and unsealed an affidavit detailing how a Chinese government-funded front company assembled a botnet and complementary systems that allowed attackers to intrude highly sensitive networks.

The FBI and Justice Department said the state-sponsored group, known as “QTFY,” has targeted and intruded the networks of the Departments of Energy, Justice, Health and Human Services, the Federal Reserve, NASA, National Institutes of Health, and, unsuccessfully in March, the Senate. 

Financial institutions, defense contractors, utility companies, telecom providers and hospitals have also been targeted by the threat group, which includes former members of China’s military, according to court records. 

Officials said QTFY also attempted, but was unsuccessful, in gaining access to a U.S. election system in June. 

The long-running operation, which officials obstructed by seizing malicious infrastructure, provided an expansive set of services. QTFY’s full hacking suite allowed attackers to scan and exploit vulnerabilities, infect IoT devices for a botnet, and conceal or reroute traffic.

QTFY’s operation was comprehensive with features that provided continuous reconnaissance capabilities and flexibilities designed for specific targets or objectives, said Ryan English, information security engineer at Lumen Technologies’ Black Lotus Labs, which aided the disruption efforts. 

Officials said they seized three domains, which cut off access to QScan and QTRouter, the group’s primary platforms. 

“Today’s announcement demonstrates the Justice Department’s steadfast commitment to going on the offensive against cyber threats to national security,” John A. Eisenberg, assistant attorney general for national security, said in a statement. “These court-authorized seizures deny People’s Republic of China-linked hackers access to tools they use to mount online attacks against our nation’s critical infrastructure.”

The FBI, National Security Agency and Cyber National Mission Force released a joint cybersecurity advisory with QTFY’s known indicators of compromise Wednesday. Officials also detailed the China-linked hacking group’s affiliations and collaborations with other state-sponsored groups.

QTFY targeted sensitive networks in the U.S. and globally by exploiting vulnerabilities in multiple vendors’ products, including Pulse Secure, Fortinet, Citrix, Microsoft, F5, Kentico CMS, Atlassian Confluence, Ivanti, Check Point, CrushFTP and BeyondTrust, officials said.

QScan, the reconnaissance and vulnerability scanning tool, included more than 200 proof-of-concept exploits, according to court records. 

“It was designed for large-scale deployment. On a single day in 2024 for example, QScan processed over two million scanning and exploit tasks,” a special agent for the FBI said in the affidavit.

The Chinese hacking collective exploited multiple Ivanti zero-day vulnerabilities in September 2024 to intrude the networks of three DOE national laboratories, NIH, an HHS agency and a U.S.-based security device manufacturer. Officials said the seized domains were all used in those attacks. 

The FBI has been investigating QTFY, which operated out of a private China-based front company, Nanjing Xinjiuwei Network Technology Company, since at least 2019. The group has been consistently active for more than eight years. 

“Discovery of these private companies building networks for China is becoming more frequent,” English said. “We’re starting to see that when they’re getting exposed, some of these have been in business a few years before they’re found.”

The takedown follows a series of technical operations aimed at dismantling China state-sponsored attackers’ infrastructure, including an operation in early 2025 that allowed officials to remove PlugX malware from thousands of U.S.-based computers.

“State-sponsored malicious hackers preying on America’s critical infrastructure will be stopped and prosecuted,” Attorney General Todd Blanche said in a statement. “We are here to ensure security for the American people and will use every tool we have to keep that promise.”

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An international law enforcement operation carried out against organized crime groups in West Africa resulted in 58 arrests and identified 263 suspects, Interpol announced Tuesday.

The operation, known as Operation Jackal IV, aimed to disrupt money laundering, locate high-value targets, seize assets and support prosecutions tied to various Africa-based criminal groups, including Black Axe. 

Black Axe is a highly structured, hierarchical group that generates billions of dollars in criminal proceeds annually from many small-scale operations spanning dozens of countries. The group’s leaders are Nigerian nationals, according to a Europol release issued earlier this year. In January, European law enforcement arrested dozens of the group’s members for adversary-in-the-middle scams such as business email compromise, money laundering and vehicle trafficking. 

“Operation Jackal IV demonstrates the power of international cooperation,” Tomonobu Kaya, director of Interpol’s Financial Crime and Anti-Corruption Centre, said in a release. “By following illicit financial flows across borders, we are attacking the very lifeblood of organized crime and making it increasingly difficult for criminal networks to profit from their activities.”

The agency said it will continue to work to unravel the full details of each case, but detailed several preliminary discoveries from partner organizations Tuesday.

Romanian authorities broke up a group that ran an investment scam from a call center promising high returns in stocks or cryptocurrencies. Victim payments were routed to electronic wallets controlled by the operators, with police estimating the full value at 143 million euros (approximately $166 million). They arrested 11 people and seized about 330,000 euros ($379,000) in cash and cryptocurrency, six properties and several luxury watches.

In South Africa, where 39 of the 58 arrests occurred, police raided seven sites in Johannesburg tied to a syndicate that targeted retirees in English-speaking countries with romance and investment scams. Investigators seized $2.67 million and blocked 257 bank accounts.

Authorities in Argentina identified 196 people linked to a Crime-as-a-Service network suspected of supplying website domains and laundering support to West African groups, making 17 arrests. 

In Italy, one person was identified in connection with a pan-European laundering network built on shell companies, remittance services and cash withdrawals. A single account moved 845,000 euros ($736,000) through 560 transactions.

Investigators also noted the group’s growing focus on sextortion, with victims as young as 14. Similar to actions taken by The Com, Interpol says offenders are contacting teenagers on social media, coercing them into taking explicit images, then demanding payment to keep the material private.

This is not the first time Interpol has taken measures to disrupt African-based groups. In 2024, a similar Interpol operation led to 300 arrests, $3 million in assets seized and 720 blocked bank accounts.

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As part of its “economic D-Day” against Iran, the Treasury Department designated four Iranians for sanctions Monday stemming from their alleged role in hacking critical infrastructure targets and waging cybertheft against the United States.

It’s the second time in as many weeks that the Trump administration has taken aim at the same group of alleged hackers, following on an indictment recently unsealed against cybercriminals that federal law enforcement authorities say are affiliated with the Tehran-based Mabna Institute.

A Treasury Department release points the finger at three people — Keyvan Fayyaz Ghareh Blagh, Saber Shahbazi Balujeh, Mohammad Reza Kadkhoda’i and Mojtaba Ghal’eh-Kuhi — as specifically conducting the hacks.

“Since at least late 2023, these three individuals have successfully compromised and exfiltrated data from multiple U.S. companies in various critical infrastructure sectors, including energy companies, defense contractors, healthcare institutions, information technology companies, and financial institutions,” the release states.

A fourth individual included in Monday’s sanctions, Mojtaba Ghal’eh-Kuhi, is listed as one of the leaders of the gang carrying out the Ministry of Intelligence and Security (MOIS)-directed attacks. Another listed leader, Behzad Mesri, first faced sanctions in 2018, as part of another round of sanctions focused on the Mabna Institute.

Finally, the Treasury Department designated one additional person Monday over related activity, Arman Kahzadian, for his alleged role in receiving or using business information stolen via cyber-enabled means.

The department said the Iranian hackers sometimes turn their gaze to domestic targets.

“The members of this group are also heavily motivated by personal enrichment and greed, leading some members to prioritize their own profits over operations that benefit the MOIS,” it said. “This has driven some of the group to target Iranian companies.“

Hackers that the U.S. government has identified as Iranian have been behind a spate of attacks on U.S. water facilities, despite denials from President Donald Trump himself about Iranian culpability.  The Treasury Department did not immediately respond to a request for comment Monday about whether the sanctions designees were involved in those attacks, nor has the National Security Agency responded to requests for comment on whether Iran was responsible for attacks at the center of an alert about attacks on water facilities.

Treasury Secretary Scott Bessent announced a fuller list of sanctions Monday as the war with Iran nears its five-month anniversary with no end in apparent sight.

“In the Second World War, D-Day marked the historic beginning of a campaign with our allies to target and drive the enemy from its positions, including those in third countries,” he said. “Today, in that same spirit, we are launching an economic onslaught against Iran’s financial connections around the globe. Our objective is to sever every economic lifeline that sustains this tyrannical regime until Tehran stands alone.”

There are questions about whether the sanctions themselves are likely to change any behavior, particularly based on how they will be enforced. Iran has vowed “consequences” for the United States.

As part of the sanctions announced Monday, according to the department, “Treasury is expanding the categories of Iran-related conduct that may be subject to secondary sanctions in the future, making it easier to take action against those facilitating the regime. Treasury has issued determinations against five critical sectors –– digital assets, technology, gold, aviation, and shipping––  that the Iranian regime uses to try to prop up its failing economy.”

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