The Office of the National Cyber Director has rolled out its second regional cyber pilot program, this one focused on rural hospitals.

National Cyber Director Sean Cairncross visited South Carolina on Monday to debut the six-month program, Project Lifeline 250, which connects industry with rural hospitals. The concept is similar to the first pilot program in Texas that connected industry with the water sector.

“Project Lifeline 250 connects the world-leading American industry with rural hospitals and uses the greatest American tools and capabilities to defend hospital networks; deploy physical back up devices after an initial incident to ensure an impacted hospital can still provide critical care; and identify high-risk and legacy devices and replace them,” Cairncross said in a statement.

The health care sector had a record year for breaches last year, with 804 large breaches reported to the Health and Human Services Department’s Office for Civil Rights that affected more than 140 million people. The FBI identified the sector as the top target for ransomware and other hackers in 2025.

Rural hospitals, like the water sector, lack resources compared to other kinds of critical infrastructure.

Besides industry and the ONCD, the effort is a project that draws in the South Carolina Critical Infrastructure Cybersecurity program, the South Carolina Law Enforcement Division and local governments in the state.

“Cyber threats are a rising challenge to our nation’s security, and we must remain vigilant to protect the systems our communities depend on,” said South Carolina Gov. Henry McMaster. “Project Lifeline 250 is another important step toward ensuring South Carolina’s rural hospitals have the resources they need to defend against cyberattacks and continue providing critical care.”

Some of the same companies involved in providing free services in the Texas pilot are involved in the South Carolina pilot, too, along with some new participants. Among the participating firms: Abnormal AI, Cisco, Cyera, Microsoft, Rilian Partners, Trellix and Zscaler.

“The stakes for critical infrastructure are getting higher and higher,” said Yotam Segev, cofounder and CEO of Cyera. “There’s real urgency in bringing cyber expertise from some of the world’s largest and most complex enterprises to rural hospitals through Project Lifeline 250. When a hospital knows where its patient data lives and who can reach it, it can reduce the leverage behind ransomware. Every community should have that clarity, no matter the size of the hospital or its IT team.”

Members of Congress also have introduced legislation designed to aid rural hospital cybersecurity.

The ONCD hasn’t said what will happen at the end of the six-month pilots. And so far it has only partnered, or publicly discussed partnering with, GOP-led states.

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On Oct. 1, threat researchers reported that the China-linked group behind Warlock ransomware, which Microsoft tracks as Storm-2603, had attacked at least four organizations in the prior two months. A water utility and a telecommunications provider were among them, along with a regional government body and a university. This all occurred in Portuguese- and Spanish-speaking countries across Europe, Africa and Latin America.

The likely way in was on-premises Microsoft SharePoint. The researchers believe the group still carries the ToolShell flaws it exploited in July 2025, the same month Microsoft shipped the fixes, alongside newer SharePoint flaws. An exploit for a bug patched more than a year ago is still worth packing. Somewhere, a server is still waiting for its fix.

Before I ran a security company, I ran its finances. The habit I kept is reading the assumption under every number. Equipment is expected to keep producing. Inventory is expected to sell. When the assumption breaks, the asset gets written down.

Security budgets carry one too, and almost nobody writes it down. It is that the tools on the books will still be running when the attack arrives. Warlock’s operators went after that assumption directly.

Nine days in, 2 hours to disarm

One intrusion, against a critical infrastructure operator, shows the pattern.

On July 22, the attackers planted a web shell on a SharePoint server. Over the following week, they mapped the domain, set up covert remote access and added an account, apparently named to pass as a SharePoint service account, to local administrator groups. Then, for about a day, the only recorded activity was one piece of planted code running in the background.

In the early hours of July 31, they moved. First came a tool built to disable security software. Its execution was recorded on at least 40 hosts within about two hours. Next, they staged Warlock in the domain’s SYSVOL share, a folder Windows replicates to every domain controller and makes readable across the domain, and let ordinary replication carry it to at least 33 hosts. On each one, the researchers found, the ransomware showed up almost as soon as the protection was gone.

Do the arithmetic. Roughly 40 hosts in 120 minutes averages out to one machine losing its protection every three minutes.

The attackers targeted the tools watching the data before the data itself.

A line item the adversary can switch off

On the researchers’ facts, this is a patching story and an Active Directory story first. Patching and endpoint detection and response remain essential. Patching closes the door this group most likely walked through, and detection is often the only reason a team learns something is wrong. A utility that cuts either one to fund something else has made a bad trade. Tamper protection and blocking known vulnerable drivers belong switched on everywhere, too. They make the kill step harder.

But a control the adversary can switch off is worth less than its line item says.

Accountants would call it an impairment. When an event suggests an asset can no longer deliver the value it is carried at, you test it. If it fails the test, you write it down. The asset still has value. The books simply overstated it. Most security spend is expensed rather than capitalized, so no auditor will make you run this test. Run it anyway.

Warlock is that event for a lot of security budgets. Most detection spending depends on a sequence of things going right at the worst possible moment, with a sensor staying alive, a console receiving what it reports and a person reading it in time. Take away the sensor and the rest has nothing to work with. The spend remains in the budget, but the machine is left without protection.

Thinly staffed utilities carry more of that gap than their boards realize. The Congressional Research Service noted in August that 81% of the nearly 49,500 community water systems in the United States are classified as small, serving 3,300 people or fewer. Larger systems, the report says, have more capacity to hire security specialists. That likely means fewer people watching, and more hours when nobody is.

All of the victims in this latest round were outside the United States. The playbook needs no passport.

And in the early hours, when the sensors go quiet, silence looks exactly like safety.

Prevention that does not wait for the sensor

If switching off whatever is watching comes right before the payload, the protection that matters has to be in place well before then. It cannot depend on a cloud connection holding, an analyst reading an alert or a sensor surviving the night.

Start with the limit. A tool that loads a vulnerable signed driver works at the deepest level of the machine and can end any security software it finds, including the kind I am about to describe.

That is why timing is the key factor. Here the kill step came after nine days inside. Before it, the attackers had to exploit a server, load their own code into memory through sideloading and work their way to rights across the domain. Each of those steps was a chance to stop them with a control that never had to survive the kill switch, because the attacker would not have gotten close enough to use one.

One way to build that control works in memory. Much of the code an intruder loads along the way depends on finding applications laid out in memory the way it expects. Change that layout each time an application loads, and code relying on those expectations should fail at the moment it runs, on endpoints and on servers, whether or not a sensor is reporting to anyone. The decision happens on the machine.

The impairment test for a utility board

Boards already run this review for every other asset. For security, it comes down to one question. What still holds once the monitoring stops?

Ask management to split the security budget into two piles. The first is protection that depends on a sensor staying online and a person responding. The second is protection that makes its decision on the machine, without waiting on a console or a person, and acts before the attacker has earned the rights to turn it off. Then ask who would learn that the sensors went quiet, and from what, since the attacker turns off the obvious messengers first.

If the second pile is empty and nobody would be told, write that in the risk register in those words. The share of the first pile that would not survive that night is the impairment. Better to book it in a board meeting than to read about it in an incident report.

40 machines went dark in two hours. Budget for the attacker who brings a switch.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Two senators say that revelations about online targeted advertising being used as a vector for spyware infections underscore the need for better security practices in the industry.

Some members of the advertising industry that were subjects of the report, meanwhile, think their practices are up to the task.

The Citizen Lab at the University of Toronto, in partnership with the cybersecurity and ad-tech firm Confiant, last week published a report on AdFection, a technique whereby targeted ads were delivering zero-click mercenary spyware.

“Ad vendors must significantly level up their cybersecurity and threat detection capacity to effectively cut off malicious advertisers across the supply chain,” The Citizen Lab report states. “They must rigorously and regularly vet, screen, and audit their business partners and hold them accountable for their own supply chains.”

In 2023, Democratic Sens. Ron Wyden of Oregon and Cory Booker of New Jersey introduced legislation to ban advertising networks and facilitators from using personal data to target, but the legislation never advanced past introduction. Both said The Citizen Lab report illustrated the need for industry reform.

“The report underscores the growing risk of spyware and the increasingly sophisticated methods used to track and target people online,” Booker said in a statement to CyberScoop. “Americans need vastly stronger privacy protections that stay ahead of these evolving surveillance threats.”

The security threat of targeted online advertising to government devices is of particular concern to Wyden, with his letters to government agencies cited in the report. Wyden has called adtech a national security threat. Ads from Discover-Tech, the company most linked to AdFection, got impressions on government networks.

“Allowing targeted ads on government devices is an open invitation to spies and criminals. It’s the digital equivalent of leaving all the doors and windows unlocked at a sensitive government facility,” he said in a statement to CyberScoop.

“It’s clear that advertising exchanges are not meaningfully protecting users against malware and location tracking, which is why I’ve been urging the government to disable ads on government browsers and turn off mobile ad IDs, and have pushed my bill to ban all targeted advertising,” he continued. “The latest Citizen Lab report is an impressive reminder that this sector simply cannot be trusted to put users’ security ahead of profits.”

A number of U.S. agencies have taken steps to block ads due to the threats they pose, or recommended blocking them for feds.

Discover-Tech appeared on lists of “certified” and “approved” vendors that Google and the advertising industry association IAB Europe maintained. Google participated in the report, but IAB Europe didn’t respond to it until after publication. Both provided additional comments to CyberScoop.

Google and IAB Europe, and the ad networks Beeswax, Vungle and Eskimi all took steps to remove Discover-Tech’s access to the digital advertising ecosystem, according to the report. A mix of other ad systems replied to The Citizen Lab, but some did not, including Microsoft, which owns the ad system Xandr. Microsoft also didn’t respond to requests for comment from CyberScoop.

The Citizen Lab report concluded that the advertising industry displayed “a dangerous lack of due diligence” and criticized “broken digital infrastructure,” while also saying that the sector needed to “get serious” about security.

It said ad vendors needed to better share threat data, improve vetting of partners, audit vendor registries and ban vendors by default in jurisdictions known to be permissive of abuse.

In response to questions from CyberScoop about those conclusions, a Google spokesperson provided a statement.

“We banned Discover Tech during a joint investigation with Citizen Lab and Confiant,” the spokesperson said. “Throughout that work, we continuously blocked malicious ads to help people stay protected while we dismantled the network.”

Google said that its safety teams and systems continuously blocked individual bad ads from Discover-Tech, but banning them entirely from the platform required proof that their ad infrastructure was linked to spyware.

The company also said it regularly audits participants in its Authorized Buyer program, as well as deploying “multi-layered defenses to stop bad ads,” and that its automated systems detected over 99% of policy-violating ads before reaching users last year.

IAB Europe responded more specifically.

“The findings do not demonstrate that the digital advertising infrastructure is broken, but rather point to the potential misuse of existing technologies and functionalities that are not specific to digital advertising but inherent to web technologies,” said Lauren Wakefield, marketing and communications director for the association. “While the industry continuously invests in improving security and safeguards against fraud and other forms of misuse, the investigation of potentially unlawful activities, such as the deployment of spyware, ultimately falls within the remit of competent authorities.”

The Citizen Lab report also urges regulators to take action, including conducting an investigation of Discover-Tech and the spyware firm Candiru, which infect users through Discover-Tech online ads; “more closely scrutinize the advertising ecosystem to determine whether other companies are leveraging it for espionage and spyware delivery, and determine whether they have violated applicable laws and regulations;” and pursue sanctions against mercenary spyware firms and the companies that enable them.

“Preventing fraud and other forms of misuse is already an ongoing priority across the digital advertising ecosystem, and IAB Europe supports industry efforts to invest in technologies, processes and safeguards to identify and mitigate cybersecurity risks,” Wakefield continued. “We hope this report will be seen as an opportunity to reassess and improve existing approaches to cybersecurity. It is important to recognise that cybersecurity requirements and measures must be proportionate to the risks and circumstances of each individual company, which is why one-size-fits-all recommendations may not always be appropriate.”

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Indian certificate authority eMudhra said Thursday it will stop issuing SSL/TLS certificates days after researchers showed that the private keys securing eight of its certificates were so weak they could be reconstructed in under a second.

The announcement closes an incident where major browsers blocked the certificates and  Indian authorities launched an investigation.  

The company said its board concluded after detailed deliberations that leaving the business was the right decision for eMudhra and its shareholders. Company Chairman V. Srinivasan cited rising costs from data sovereignty and compliance requirements, along with competition from large providers that issue the certificates free of charge. He also said social media amplification of the incident brought scrutiny “out of proportion” to the unit’s place in the company.

“For many certifying authorities, SSL/TLS is the whole business,” the company said. “For eMudhra it is one part of a much broader digital solutions portfolio.”

The episode began last week, when a researcher notified Apple, Google, Microsoft and Mozilla that the private keys of eight eMudhra intermediate certificates could be computed from the public certificates because they were generated with too little randomness. Security researcher Scott Helme recovered all eight on his laptop in less than a second, a task he said an AI agent later repeated from a single prompt.

Normally, a private key is a secret number so large that no computer could ever guess it, roughly 77 or 78 digits long for the type of cryptography used in these certificates. Each of the eight eMudhra keys was a whole number below 256, with one simply logged as the number 4. Since a certificate publicly displays the key it was built from, anyone could test every possible value in seconds, and such keys could be used to forge certificates and impersonate websites.

eMudhra attributed the flaw to an error in a key generation ceremony held April 2025, saying the mistake produced a second, weak set of keys that was published to browser trust lists instead of the intended ones. The company said its infrastructure was not compromised, that no data was breached and that none of the eight intermediates had issued end-entity certificates. Whether anyone used the keys in question is not known.

Chrome and Firefox blocked the certificates within hours of the report, Apple blocked them Monday and Microsoft on Tuesday. Mozilla removed the company’s root certificate from its trusted list, and Google said it will remove that root from Chrome in an update expected next week while it reviews eMudhra’s remaining root certificate. Go, Node.js, Python’s certifi bundle and several Linux distributions also shipped updates.

CERT-In, the country’s computer emergency response team, said it did not see any malicious use of the keys as of Wednesday.

The company said its other businesses, including digital signature and enterprise security services, continue to operate normally, and acknowledged reputational risks it cannot quantify.

Shares of ​the company fell 40% in the two days after the vulnerability was disclosed.

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Microsoft researchers attributed the recent supply-chain attack targeting ConnectWise customers’ Microsoft 365 environments to a China-state aligned threat actor it tracks as Storm-0940.

“As early as September 2026, Storm-0940 used the agentic AI penetration testing framework ARTEX to automate attacks targeting hundreds of organizations globally across a broad range of industries,” Microsoft Security Research wrote in a blog post Wednesday. 

The nation-state group, which has been active since 2021, targeted organizations in aerospace and defense, automotive, chemicals, energy, financial services, government, legal, manufacturing, media, military, semiconductors, software, technology, think tanks and non-profits. 

Storm-0940 initiated a widespread, but ultimately unsuccessful, password-spraying campaign immediately preceding the compromise of ConnectWise’s Cloud Backup service. During a four-day stretch ending Oct. 14, Storm-0940 targeted 327 Microsoft 365 and Exchange Online accounts across eight organizations, researchers said.

During that short campaign, Microsoft observed more than 151,000 failed logon attempts, peaking at 2,900 failures per minute. Storm-0940 set its sights on ConnectWise the next day, using AI agents and the same malicious infrastructure to compromise a series of ConnectWise Cloud Backup customers’ Microsoft 365 environments. 

Storm-0940 gained significant advantages in the ConnectWise supply-chain campaign by using ARTEX to accelerate scanning, conduct password-spray attacks and abuse OAuth applications in downstream victims, according to Microsoft. 

“In some of these environments, the AI agents (on behalf of the threat actor) progressed beyond authentication to Microsoft Graph and directory operations, including reconnaissance, application credential modifications to establish persistence, and changes involving identities, groups, and privileged roles,” researchers wrote. “Microsoft identified multiple customer environments with evidence of follow-on activity, highlighting how a compromised third-party application with high privileges could provide access beyond its originally intended purpose.”

Microsoft Threat Intelligence said multiple threat actors from various regions are using ARTEX to strengthen capabilities and speed up the tempo of attacks. 

The open-source penetration testing framework works with any AI model to automate various offensive security workflows, the company said. “ARTEX is a system of LLM-driven agents that run an autonomous penetration test from reconnaissance through data exfiltration with little needed human interaction.”

In the ConnectWise campaign, Microsoft said “Storm-0940 used ARTEX to reach more than 2,250 tenants at 2,900 sign-in attempts per minute, a pace that leaves defenders with little time to detect and respond.”

Microsoft did not say how many customers were compromised, adding that successful authentication doesn’t necessarily indicate Storm-0940 accessed or stole data. Yet, researchers said the threat group’s AI agents could also gain persistent access and establish backdoors by modifying credentials in targeted victims’ environments. 

ConnectWise, which temporarily shut down services Saturday in the wake of the attacks, said it began restoring services in phases Wednesday. The company advised customers to keep connections disabled and said it expects the recovery process to take several days.

“Since early October, a wave of AI-driven cyberattacks has been ongoing,” Igor Tsyganskiy, executive vice president at Microsoft, wrote in a LinkedIn post Wednesday. The ConnectWise supply-chain attack is just “one of many,” he added.

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A portion of ConnectWise’s customers have been adrift for days, and hundreds are compromised, as the company’s efforts to restore its Cloud Backup service remain underway with no confirmed timeline for when customers can regain access.

The company temporarily shut down multiple services Saturday after a threat actor gained access to a highly sensitive credential that allowed its customers to connect the vendor’s application with Microsoft 365 environments. 

The threat actor, which hasn’t been identified, used the application programming interface (API) secret to compromise a series of ConnectWise Cloud Backup customers’ Microsoft 365 applications, including Exchange Online, Microsoft Teams, SharePoint Online, Cloud Backup, MS Graph and Partner Center, according to Huntress.

Researchers observed an initial wave of attacks Friday, and by late Saturday Huntress “had seen sign-in activity from the malicious infrastructure across almost 1,000 Entra tenants, with more than 300 of those sign-ins appearing to succeed,” Jonathan Semon, principal security operations analyst at Huntress, told CyberScoop.

The cybersecurity company, which primarily supports small- to mid-sized businesses, confirmed unauthorized sign-ins in 162 tenants and said additional compromises beyond its telemetry are likely. 

ConnectWise suspended its Cloud Backup, SaaS Security and Cloud Management services about two days after researchers observed an initial wave of unauthorized sign-ins. 

“ConnectWise is continuing its investigation and remediation following unauthorized access to application identities associated with ConnectWise Cloud Backup, formerly known as SkyKick,” a company spokesperson wrote in an email.

“We are monitoring our entire environment around the clock,” the company said in a security advisory. “Since mitigations began on October 17 at 05:00 UTC, we have not observed successful threat activity in the environments we monitor. This does not establish whether individual partner or customer Microsoft 365 tenants were affected; each potentially affected tenant still requires review.”

Microsoft Threat Intelligence said it observed broad successful sign-ins from a malicious IP address on Oct. 15. “Follow-on activity included Microsoft Graph API reconnaissance and attempts to add additional credentials on the related service principal in target tenants to maintain direct access as a backdoor,” the company said in a LinkedIn post. 

The root cause of the breach and ensuing fallout remains under investigation, and the company declined to answer questions about how attackers obtained the credential for ConnectWise Cloud Backup.

Researchers at Huntress and Todyl, which conducted its own investigation, characterized the secret and its chain of command as critical.

“Because it’s a multi-tenant application, anyone holding that credential can request access tokens in any tenant where the application is installed, without any action by the customer,” Semon said.

Sign-ins, which were performed by an automated tool, also gave the attacker the technical ability to read and write mail and files across various Microsoft 365 applications, Todyl wrote in a blog post. 

Highly privileged access granted by the credential for ConnectWise Cloud Backup allowed attackers to bypass security controls, including multi-factor authentication, and establish additional access.

“In the tenants where we saw post-compromise activity, the account associated with the application elevated its own privileges and added new credentials to other applications in the tenant. That would let someone keep access even after the original application was disabled,” Semon said.

ConnectWise and researchers haven’t attributed the attacks to any known threat actors and none have publicly claimed responsibility. The company said restoration efforts remain underway, but it hasn’t provided a timeline for when customers can regain access.

ConnectWise and researchers shared indicators of compromise to help potentially exposed customers hunt for malicious activity in their systems. Yet, the vendor and third-party companies responding to confirmed attacks, encouraged customers to disable any affected applications even if they don’t see anything unusual in their logs.

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Microsoft’s streak of record-breaking vulnerability disclosures continued with a mega Patch Tuesday, containing 1,413 defects affecting the company’s various enterprise products and services. 

The monthly batch of patches surpassed the company’s previous annual record of 1,261 common vulnerabilities and exposures (CVEs) set in 2020. 

“Hundreds of CVEs in a single release used to be the exception — now it’s the baseline,” Dustin Childs, head of threat awareness at TrendAI’s Zero Day Initiative, wrote in an email. AI is partly to blame, he added, but it “isn’t creating these bugs out of thin air; it’s just shortening the time between a vulnerability existing and someone noticing it.”

Yet, for defenders understandably overwhelmed by the surge of defects found in Microsoft products, actively exploited zero-day vulnerabilities aren’t growing in kind.

“If there’s solace to be had, it’s in the fact that only one of these bugs is under active attack,” Childs wrote in a blog post. “If you go back to the hot 0-day summer of 2023, there were 17 Microsoft 0-days between January and October as opposed to 15 this year during the same period.”

Microsoft disclosed one actively exploited zero-day affecting Windows Shell — CVE-2026-96951 — that allows unauthorized attackers to bypass a security feature. The high-severity defect is the third Windows Shell vulnerability exploited this year, according to Satnam Narang, senior staff research engineer at Tenable. 

“There have been 26 Windows Shell vulnerabilities patched in 2026 through October, a staggering figure compared to previous years, with only 3 Windows Shell CVEs in 2025 and just one in 2024 and 2022,” he added.

The vast majority of defects Microsoft disclosed in this month’s security update affect Windows, its ubiquitous operating system , spanning 1,102 vulnerabilities combined. The update also included 134 vulnerabilities in Office, 61 in various developer tools and 36 in SharePoint Server. 

Microsoft tried to address the toll this monthly flood of vulnerabilities has on its customers by introducing “risk cohorts.” These groups of vulnerabilities don’t necessarily share a root cause or severity rating, but generally require a similar customer assessment that could guide prioritization efforts, the company said. 

“The volume isn’t the real story anymore,” Childs added. “What matters is that discovery is scaling faster than exploitation, so teams that triage by sheer CVE count instead of exploitability are burning cycles on the wrong bugs. Patch what’s proven, prioritized, and public, and treat everything else as this month’s new normal.”

The full list of vulnerabilities addressed this month is available in Microsoft’s Security Response Center.

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Microsoft collaborated with Japanese authorities, Health-ISAC and several cybersecurity companies to dismantle an expansive, seemingly disconnected ecosystem of Chinese-language cybercrime tools and services, the company announced Wednesday.

Since the start of the year, a vast collection of customized phishing kits developed and sold by Chinese-speaking threat actors — a cluster Microsoft tracks as Storm-2990 — have delivered more than 1 billion phishing emails and SMS messages to more than 75,000 organizations globally. More than three-quarters of those malicious messages targeted Microsoft customers, the company said.

Cybercriminals purchased the phishing kits, tools and infrastructure from an interconnected network Microsoft and Japanese authorities started investigating in early 2025. The kits were used to target individuals and organizations in healthcare, financial services, logistics and IT predominantly in the United States and Japan.

Microsoft said it and Health-ISAC, working with a federal court order, seized and redirected domains that powered the underlying infrastructure of these cybercrime tools and services known as YAM Store, CoGUI and Iron Man. 

The company said it also disabled more than 20,000 accounts connected to YAM Store and continues to disrupt the operation by removing infrastructure hosted on its services and blocking more than 100,000 domains used for impersonation and fraud.

“Most people have opened their messages to find a suspicious alert urgently telling them that a package cannot be delivered, a toll remains unpaid, a bank account needs attention, or a tax bill is overdue. The details may change, but the goal is the same: to get someone to click, share personal information, or pay,” Steven Masada, general counsel and general manager of Microsoft’s Digital Crimes Unit, wrote in a blog post.

“These messages are relentless,” he added. “Delete and block one, and another takes its place. Ignore them, and more will follow. Fall for one, and the floodgates open. What appears to be a simple scam message is often the visible end of a much larger transnational cybercriminal operation.”

The phishing kids included templates impersonating legitimate brands that cybercriminals used to facilitate high-volume campaigns. Researchers said similar infrastructure and overlapping activity suggested the tools shared development origins, code reuse or close collaboration among developers.

Microsoft said cybercriminals used the phishing kits to steal credentials, financial data and abuse the device code authentication process to obtain authentication tokens and access compromised accounts. Researchers said cybercriminals primarily used the tools for financial fraud, typically using stolen payment data to make fraudulent purchases of high-end goods or transactions on legitimate financial platforms. 

Resecurity, which aided the investigation, gained access to Iron Man’s infrastructure and found 2,360 phishing templates impersonating banks, retailers, healthcare providers, transportation authorities, police departments and government agencies across 130 countries. Cloudflare, Oracle, Proofpoint and TRM Labs also provided research and investigative support.

“What began with scam activity targeting people and organizations in Japan led investigators to an underground service economy supplying criminals around the world,” Masada wrote. 

“YAM Store, CoGUI and Iron Man are only part of that larger criminal network, but disrupting them makes it harder for criminals to obtain the accounts, tools and infrastructure they rely on,” he added. “The scam message is often the only part victims see. The businesses behind it are what make it possible.”

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A joint international law enforcement and industry operation against scammers netted 28 arrests, rescued 117 trafficking victims and led to the takedown of more than 3.7 million accounts, the Justice Department announced Tuesday.

The crackdown, billed as “Joint Disruption Week,” focused on West Africa and also identified more than $11 million in freezable funds and led to the seizure of hundreds of electronic devices. The range of scams involved included law enforcement impersonation scams, digital arrest extortion schemes, pig butchering and other online fraud operations targeting victims around the world.

Participants heralded it as the largest joint scam operation to date, and the first focused on West Africa.

“For so long, the problem of international scams seemed impossible to tackle,” Kelly Milliron, acting chief of staff and counselor to the Assistant Attorney General leading the Criminal Division, told reporters. “But now, because of collaborations like Joint Disruption Week, we have a plan, a consolidated approach, bringing together people that can bring solutions and, most of all, safety for our citizens.”

It’s the latest effort in the Trump administration’s ongoing bid to make countering scam operations a theme of his term, and to make disrupting cyber adversaries and criminals a central focus of its cyber strategy. 

Participating agencies in the London-hosted operation beyond the Justice Department were the Scam Center Strike Force under the U.S. Attorney’s Office for the District of Columbia, the FBI, the Secret Service, the Treasury Department, Homeland Security Investigations, the Homeland Security Task Force, the United Kingdom’s National Crime Agency, the Nigerian Joint Case Team on Cybercrimes, the Nigeria Police Force’s National Cybercrime Center and the Ghanaian Cyber Security Authority, INTERPOL and agencies from Australia, Canada, India and New Zealand also were involved. 

Adobe, Binance, Coinbase, Cyjax, Elliptic, Chainalysis, Flashpoint, Google, Meta, Microsoft, OpenAI, Silent Push, Starlink and TRM Labs were companies that participated in the operation. Meta said it removed more than 3.7 million accounts, groups and pages from Facebook and Instagram based in West Africa, a majority of which targeted people in the United States and United Kingdom.

Some on Capitol Hill have raised concerns about whether U.S. operations to counter scams are coordinated enough.

The operation actually began in September, with a series of raids in Ghana before last week’s designated action. Jeanine Pirro, U.S. Attorney for the District of Columbia, said Disruption Week occurred not long after a new partnership with the United Kingdom.

“The aim is to bring cases in parallel and also to combat fraud together through joint targeting,” she said. “This was the perfect time to continue that partnership.”

It’s not clear how many of the potentially freezable funds will actually be frozen as a result of the operation.

“Identifying the assets is the easy part, and tracing them, going after and developing probable cause within our investigations so that we can legally seize them does require a little bit of work,” said Matthew Floyd, deputy assistant director of the FBI’s Criminal Investigative Division. “So at this point, that’s why it’s much easier in these efforts to identify assets initially, and then they’ll fold into our investigations as we move forward.”

Disruption Week was the culmination of agencies meeting to combine forces, something that will happen on a regular basis, Floyd said, but at an interval to be determined going forward. The operation led to the sharing of more than 30 leads on scam centers, participants said.

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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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Volexity researchers spotted another state-aligned Chinese threat group exploiting a triple-link chain of zero-day vulnerabilities across multiple campaigns, the company said in a blog post Monday.

The threat group it tracks as UTA0565 exploited the vulnerabilities in Chrome and Microsoft between Sept. 3 and 4 before the defects were disclosed or patched, researchers said.

The timing of the malicious activity mirrors other spikes threat hunters observed and attributed to multiple Chinese espionage threat groups. Yet, Volexity noted UTA0565’s campaigns differed from those attacks by using multiple fake websites to deceive victims.

Volexity shared phishing emails UTA0565 sent to Asian government entities urging them to publicly support imprisoned Hong Kong activist Chow Hang-tung. The group spoofed domains impersonating the Center for American Progress and China Digital Times in other phishing emails.

While UTA0565 showcased a variance in tactics, it used the same components researchers observed in previous instances of the exploit kit across multiple Chinese threat groups.

“This seemingly widespread adoption across multiple threat actors suggests a coordinated effort within the Chinese computer network exploitation community, where the core kit was likely shared, customized, and weaponized by multiple groups,” Volexity wrote in the blog post. “The activity reported so far reflects only two organizations’ observations; the full scope and impact are likely far broader.”

The vulnerabilities include: CVE-2026-85046 and CVE-2026-87491, remote-code execution defects in the JavaScript engine for Chromium-based browsers; and CVE-2026-85880, a privilege-escalation zero-day that Microsoft disclosed Sept. 8 in Windows Advanced Local Procedure Call. 

Proofpoint, which previously observed multiple state-aligned threat groups chaining the vulnerabilities together in attacks since last August, said a limited group of organizations were exposed to all three vulnerabilities in a short window. 

Proofpoint previously attributed attacks involving the zero-days to APT31, UNK_LateNight, UNK_DoubleCheck and UNK_QuietRacket. At the time it warned that attackers of other origins and motivations could strike soon as well.

Volexity said UTA0565 used a payload from a previously undocumented malware family it tracks as “CLEANGULP.” Researchers also found several domains likely used by UTA0565 in similar campaigns targeting media organizations, halal restaurant search websites and corporate training organizations. 

“UTA0565’s use of the zero-day vulnerabilities shows technical and operational improvements over other campaigns observed by Volexity, both in the mechanics of the exploitation and the presentation to end users,” researchers wrote. “Using real content from legitimate websites as decoy material continues to be an effective way to reduce user suspicion.”

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Microsoft, along with a group of industry partners, disrupted EvilTokens, a short-lived but highly consequential cybercrime platform that investigators linked to more than 12,000 compromised Microsoft customer email inboxes across more than 10,000 organizations globally, the company said Tuesday.

Acting on federal court order Sept. 15, Microsoft and partners seized 50 websites the phishing-as-a-service used for operations and disabled more than 175 domains linked to EvilTokens’ supporting infrastructure. 

EvilTokens, launched in February 2026, was “a powerful cybercrime platform that used AI at every step of the attack chain — from compromising email accounts to designing intricate roadmaps for financial fraud and scams,” Steven Masada, associate general counsel and general manager of Microsoft’s Digital Crimes Unit, wrote in a blog post.

About 1,000 cybercriminals used EvilTokens over the course of its operation, a Microsoft spokesperson told CyberScoop.

The service was centered on an AI-style chatbot that cybercriminals used to analyze victims’ inboxes, identify trusted relationships, payment authorizations and other sensitive details that could facilitate fraud.

“AI was not simply helping attackers write more convincing messages. It helped them decide who to target, who to impersonate, and how to most effectively exploit the relationship to extract as much money as possible,” Masada wrote. 

EvilTokens was one of the most widely used phishing-as-a-service platforms prior to its takedown. It facilitated business-email compromise campaigns by stealing session tokens that allowed cybercriminals to sift through a victim’s inbox and maintain persistent access.

“We cannot estimate the total fraud attributable to all EvilTokens activity. However, we were able to correlate at least 13 complaints filed with the FBI’s Internet Crime Complaint Center to EvilTokens-linked activity, representing approximately $1.7 million in reported losses,” a Microsoft spokesperson said. “Because many incidents go unreported and not all victims can be definitively linked to specific campaigns, we believe this is a conservative estimate.”

Victims of EvilTokens were largely concentrated in the United States, Canada, the United Kingdom, Australia, India and France, according to Microsoft. SpyCloud, which supported the takedown, identified compromised email domains spanning 79 countries.

Microsoft said it also identified two men behind EvilTokens — Felix Utomi and Waidi Segun Adams — and attributes the development and support of the platform to Storm-2992, a threat actor unaffiliated with any other known cybercrime groups.

The United Kingdom’s Metropolitan Police acted on that information Sept. 18 when it served warrants in the greater London area, arrested the men accused of making articles for use in fraud and money laundering and seized their digital devices.

The Metropolitan Police said it received information from Microsoft about EvilTokens’ administrators in August. Utomi and Adams were released on bail as the investigation continues. 

“The two primary operators identified in our investigation were residing in the U.K.,” a spokesperson for Microsoft told CyberScoop. “While our investigation focused on those individuals, we believe others may have supported the operation in various capacities.”

Microsoft’s legal filing in the U.S. District Court for the Eastern District of Virginia refers to five additional unidentified people allegedly acting as support personnel and users.

Microsoft and others involved in the EvilTokens takedown, including Health-ISAC, Cloudflare, OpenAI, Shadowserver and TRM Labs, didn’t fully quantify how much fraud the service enabled, but it gained popularity quickly among cybercriminals and was lucrative for its operators.

Coinbase, which also aided the investigation into EvilTokens, said it traced about $1.1 million in revenue for EvilTokens from its paying customers. The virtual currency company’s threat researchers found more than 1,000 deposits to EvilTokens from more than 700 distinct addresses through June 2026. 

Operators sold access to the service through Telegram for a $1,500 initiation fee and a recurring $500 subscription. EvilTokens significantly lowered the barrier to entry for cybercriminals by including specialized tools for identity attacks, cloud systems, social engineering and financial fraud in a single interface.

The service allowed cybercriminals to map organizational structure and permissions in Microsoft Graph, which enabled lateral movement, researchers said. With active tokens gained through a collection of highly-targeted phishing lures, cybercriminals consistently bypassed multi-factor authentication, email gateways and endpoint security tools.

Microsoft said the platform’s creators developed portions of the platform with AI and it uncovered capabilities from multiple AI models. 

“It packaged much of the criminal process into a commercially run service, complete with subscription pricing, customer support, management dashboards and tools designed to move customers from account access toward financial exploitation,” Masada added.

The companies and organizations involved in the globally-coordinated takedown identified and notified potential victims, shared indicators of compromise and shared intelligence with law enforcement about EvilToken’s operators and some of its customers.

Experts advised organizations and employees to treat unsolicited device codes as a red flag, assume compromised accounts are fully cataloged in minutes, and independently verify requests to change payment information or redirect funds.

“The infrastructure supporting EvilTokens has been disrupted, but the model it demonstrated will not disappear with it,” Masada warned.

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Proofpoint researchers have spotted at least four state-aligned threat groups chain a trio of zero-day vulnerabilities to conduct espionage on various targets of interest to China’s government since late August. 

The Chinese espionage group that Proofpoint tracks as TA412, also known as Violet Typhoon and APT31, struck first, exploiting the chain of vulnerabilities Aug. 28. At least three additional espionage threat groups followed suit, exploiting the same vulnerabilities in subsequent waves of attacks days later, researchers said.

The exploit chain Proofpoint calls BlueMoon targets Chrome, Chromium-based browsers and Microsoft Windows. It allows attackers to run code in the browser’s sandbox, escape the sandbox and gain system privileges to access a targeted machine, said Mark Kelly, staff threat researcher at Proofpoint.

“All three vulnerabilities were exploited before patches were available to the public,” he said.

The vulnerabilities include: CVE-2026-85046 and CVE-2026-87491, remote-code execution defects in the JavaScript engine for Chromium-based browsers; and CVE-2026-85880, a privilege-escalation zero-day that Microsoft disclosed Tuesday in Windows Advanced Local Procedure Call. 

“While the V8 vulnerabilities were known and fixed in Chromium source code, they were not yet patched in the latest publicly available browsers at the time of the activity, meaning they effectively functioned as zero-days in those products,” Kelly said.

Proofpoint said the exploit kit developer likely reverse engineered the publicly available Chromium patches to weaponize the browser exploit chain during that gap.

With a limited group of organizations exposed to all three vulnerabilities, attackers moved quickly and likely rushed development to target a narrow pool of potential targets. “In all observed cases, the infrastructure used for exploit delivery was created on the same day as — or in the days immediately preceding — the associated campaigns,” Proofpoint wrote in a threat intelligence report.

APT31, a group that’s committed espionage on behalf of China’s Ministry of State Security, including seven Chinese nationals indicted by the Justice Department in 2024, dropped various lures containing the exploit chain loader in phishing emails targeting non-governmental organizations, mining companies and commodity trading firms in the United States. 

The phishing link installed a malicious browser extension disguised as Google Gemini on targeted machines, enabling attackers to surveil browser activity, steal credentials and execute commands, according to Proofpoint. 

Other distinct threat groups have also used the BlueMoon exploit chain with some slight technical changes and variances in targeting. 

“Proofpoint observed BlueMoon usage as recently as Sept. 8,” Kelly said. “The activity peaked Sept. 2-3 immediately prior to the Chrome patch being released and has continued intermittently since then.”

A China-aligned espionage threat group Proofpoint tracks as UNK_LateNight targeted multiple U.S. aerospace companies Sept. 2. Researchers also that day observed UNK_DoubleCheck, a suspected espionage-motivated threat group targeting Vietnamese manufacturing organizations with emails from a compromised Southeast Asian government account. 

Researchers said UNK_QuietRacket, another espionage group aligned with China, targeted government, consulting and financial sector organizations in Indonesia and Singapore Sept. 3.

Proofpoint has directly observed fewer than 20 organizations targeted globally thus far, but Kelly said the true number of impacted organizations is likely much higher. 

While Proofpoint attributes most of the observed attacks to Chinese espionage groups, attackers of other origins and motivations could strike soon as well. 

“Given its ease of adoption, we expect the exploit kit is likely to proliferate further and be adopted by additional espionage-motivated and financially motivated threat actors as patched versions are fully rolled out across all Chromium-based browsers,” Kelly said.

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Microsoft addressed 974 defects across its product suite, including two actively exploited zero-day vulnerabilities, in its monthly Patch Tuesday security program. 

The massive batch of patches, Microsoft’s largest ever, reflects a continuing trend for the vendor as it leans on artificial intelligence to discover more vulnerabilities at a faster rate. Yet, the recent period of record breaking vulnerability disclosures hasn’t resulted in a flood of actively exploited zero-days.

“AI-assisted vulnerability discovery shows no signs of slowing down,” Dustin Childs, head of threat awareness at Trend Micro’s Zero Day Initiative, wrote in a blog post Tuesday. “However, we have not seen a correlating spike in active exploits — yet.”

The vulnerabilities actively exploited prior to disclosure — CVE-2026-81963 affecting the Windows Update Stack and CVE-2026-85880 affecting Windows Advanced Local Procedure Call — both have CVSS ratings of 7.8 and allow attackers to escalate privileges. 

More than 1 in 10 defects Microsoft disclosed in this month’s security update are rated critical. The update included 723 vulnerabilities in Windows, 111 in Office, 111 in Office 2016, 62 in SQL and 22 spanning various developer tools.

Researchers encouraged security teams and customers to not get overwhelmed by the total number of defects, but instead focus on their specific areas of risk and exposure. 

“While the number of vulnerabilities being patched is rising, the number of vulnerabilities that can and will affect most organizations remains quite low. AI-assisted vulnerability discovery in 2026 is creating larger haystacks, but it isn’t finding more needles,” Satnam Narang, senior staff research engineer at Tenable, said in an email. 

“It’s critical that organizations understand which vulnerabilities actually apply to them, whether they pose a threat by being reachable and exploitable, and prioritize remediation based on this risk context,” he added. 

Jack Bicer, director of vulnerability research at Action1, drew a similar conclusion from the record-breaking Patch Tuesday. 

“At this scale, the challenge is not simply getting through the patch list but knowing what needs attention first,” he said. “With hundreds of updates landing at once, IT and security teams need to quickly separate the vulnerabilities that demand immediate action from those that can follow the normal deployment cycle.”

The full list of vulnerabilities addressed this month is available in Microsoft’s Security Response Center.

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The Trump administration rolled out a six-month test program in Texas on Monday that will draw on volunteer expertise and technology from cyber and artificial intelligence companies to protect the water sector.

“Project Watershed 250” is the first of the state-based, industry-centric pilot projects to cross the finish line that the Office of the National Cyber Director has previewed since the publication of its national cybersecurity strategy earlier this year. Water systems have long been viewed as among the most vulnerable and neediest critical infrastructure sectors, and in recent months the sector has been the victim of a spree of attacks.

“Project Watershed 250 is a commitment from the states, industry and federal government that we will continue to prioritize our nation’s safety and deliver on America-first policies for the American people,” National Cyber Director Sean Cairncross said at a rollout event in San Antonio Monday.

“U.S. companies are providing world-class cyber capabilities, red teaming that tests utilities’ current defenses, system hardening using the latest private sector cyber tools and AI tooling that helps utilities’ frontier cyber defenders to protect Texas water systems and scale proven solutions across the country,” he said. “This six-month pilot program is designed to make our water and wastewater critical infrastructure more resilient and resistant to cyber attacks by proactively finding and fixing system weaknesses.”

The pilot program, featuring collaboration between federal and state governments, stands in contrast to how the Biden administration tried to tackle the issue, with audit requirements that some GOP states challenged in court, forcing Biden’s Environmental Protection Agency to withdraw its rule.

“For too long, at least on the federal level, the government has admired the problem of cybersecurity in water systems,” Cairncross said. “We are going to find out what works. We’re going to target that, and we are going to scale off of this and learn lessons.”

A dozen companies — Parsons, Microsoft, Fortinet, Google Cloud, Palo Alto Networks, Amazon Web Services, Reflection AI, Cloudflare, Zscaler, Forescout, Abnormal AI and Dragos — appeared at the rollout Monday to praise the initiative and tout their contributions to it.

Not everyone praised the initiative elsewhere, however. One cyber professional who works on water security issues, speaking on condition of anonymity, said the program was “all smoke” and that “there’s no real money behind it.”

“The White House did what it always does — reached out to industry with their hands out asking for industry to pay for things the government should be doing, at least in part,” the person said.

Texas Gov. Greg Abbott said the program would be overseen by Cairncross’s office and Texas Cyber Command, which was established just last year. Abbott cited the need for the program by mentioning “an Iranian-backed cyberattack” on 30 water systems across 12 states and a 2024 attack on the water system in Muleshoe, Texas, suspected to be the work of Russian hackers.

“The need for cyber resilience is overwhelming,” Abbott said. “Many rural providers simply don’t have the resources they need to be able to protect themselves.”

Watershed 250 isn’t the only federal effort to bolster water cybersecurity, with lawmakers introducing legislation in the aftermath of the recent attacks. Past legislation that Congress has enacted also sought to tackle the problem.

Updated 8/31/26: with comment from cyber professional.

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More than 100 companies and organizations, including OpenAI, Anthropic, Google, Microsoft and Amazon Web Services, have signed an open letter calling for a global effort to improve cybersecurity defenses as artificial intelligence capabilities advance.

The letter, published Thursday, argues that the timeframe to strengthen defenses before AI-enabled attacks become more widespread and complex is rapidly dwindling. Conversely, the letter says the same advances can give defenders new ways to find and fix vulnerabilities that have accumulated over years, a period the signatories call a “defenders’ window.”

“Each of us can reduce risk now,” the letter reads. “All organizations, cybersecurity companies, technology partners, governments, and AI frontier companies have an important role: accelerate defenders’ priorities with tools, funding, and hands-on support, especially for critical infrastructure organizations with limited budgets.”

Aside from AI-centric companies, financial institutions like Capital One, Mastercard and Visa, and cybersecurity firms like CrowdStrike, Palo Alto Networks, and Proofpoint, also signed the letter. Organizers describe the effort as ongoing, with more organizations expected to join over time.

The letter states that “status quo security won’t be enough.” It cites longstanding bugs, excessive permissions, misconfigurations, unpatched software, weak authentication and technical debt in legacy systems as sources of exposure. Security teams, particularly those protecting critical infrastructure, have been historically under-resourced, the letter says, and need what it describes as a surge in tools, resources and hands-on support.

In a conversation with CyberScoop Wednesday, top brass from Palo Alto Networks said they had seen enough from internal frontier AI model testing and malicious in-the-wild use of commercially available AI tools to be genuinely concerned.

“I can tell you without exaggeration that we believe that this is a generational shift in cybersecurity,” Sam Rubin, senior vice president of Palo Alto Networks’ threat intelligence arm, said Wednesday. 

John Doyle, CEO of Cape, a privacy-first mobile network operator and whose company signed the letter, echoed the warning about status-quo security.

“It was already failing us in telecom–critical infrastructure that’s been breached time and again with serious consequences for both our military and regular people,” Doyle told CyberScoop. “It’s going to get immeasurably worse without collective action and leaning into innovative cyber defense.”

The letter further asks every organization to make cybersecurity an immediate leadership priority, fix the highest-risk weaknesses and raise security standards for technology they buy, build and deploy, including AI-generated code. Cybersecurity companies and technology partners are asked to test defenses against frontier AI capabilities and make AI-powered defense accessible to critical infrastructure operators. 

Governments are urged to coordinate defense across borders, fund protection for essential services that lack staff or budget, and impose costs on attackers. Frontier AI companies are asked to provide responsible model access, funding, training and support, and to ensure that AI systems acting autonomously remain traceable and accountable.

The letter frames AI as both a threat and a remedy throughout the document. It mirrors what security experts have been saying for months, positioning the industry as entering an unprecedented two- to three-year period of upheaval, driven by AI systems that are discovering vulnerabilities exponentially faster than defenders can respond and threatening to render decades of security practices obsolete.

The U.S. government has taken steps to stay ahead of AI-enabled cyberthreats. As part of an executive order issued by President Donald Trump in June, a federal clearinghouse known as Gold Eagle was stood up for sharing AI cyber threat information between the government and private sector.

You can read the full letter here.

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The ransomware-as-a-service group Medusa has adopted fresh tactics to gain access and added hundreds of victims in a little more than a year, according to an updated U.S. government advisory published Tuesday.

The gang is relying on access brokers,compensating them anywhere from $100 to $1 million, with higher prices going to those who work exclusively with Medusa. However, most of the brokers work simultaneously for “multiple variants at the same time,” the advisory from the Cybersecurity and Infrastructure Security Agency, FBI and Health and Human Services Department states in one of the updated portions of the advisory.

Tuesday’s update advisory expands upon aMarch 2025 advisory, drawing on ongoing FBI investigations.nIt includes information on the kinds of software vulnerabilities Medusa has exploited, such as Fortra GoAnywhere and BeyondTrust flaws.

“Medusa actors operate opportunistically by targeting victims with unpatched software rather than focusing on specific organizations or sectors; however, the Healthcare and Public Health (HPH) Sector has been a frequent victim of Medusa operations,” according to the advisory. “Medusa actors leverage newly announced exploits within 24 hours and have been observed to use exploits up to a week before public vulnerability disclosure.’

“However, there is no indication Medusa actors develop their own zero-day or N-day vulnerabilities, preferring instead to obtain advanced access to exploits from unknown sources or to quickly leverage newly announced exploits before potential victims can mitigate vulnerabilities through patching,” the advisory continues.

The approach appears to be netting gains: From March 2025 to April of this year, the victim tally in the advisory jumped from more than 300 to more than 500. The group was first identified in 2021.

“Medusa actors often use legitimate tools and living off the land techniques to evade detection. They may also leverage remote monitoring and management software and remote access services, including Remote Desktop Protocol, for lateral movement,” as updated sections of the advisory detail. “Once inside a network, they use common utilities and tools to support credential access, data exfiltration, and ransomware deployment.”

Earlier this year, Microsoft detailed how a group it dubbed Storm-1175 was making use of Medusa ransomware in speedy operations. Symantec and Carbon Black also detailed earlier this year how North Korean hackers were leaning on Medusa to target the health care sector.

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In less than four hours early Tuesday, an attacker compromised a GitHub maintainer account and unleashed a self-replicating piece of malware which injected malicious code into more than 440 distinct npm packages, according to multiple security firms. 

The worm, built on the open-source Mini Shai-Hulud repository that TeamPCP published in May, was initially let loose in keyv, a data management interface software package with more than 600 million monthly downloads. The attacker spent the next 30 minutes compromising additional packages controlled by the same maintainer, including cacheable, flat-cache, file-entry-cache.

The attack spread to other maintainers, eventually compromising more than 860 packages with a “combined total of over 2 billion monthly installs,” Ilyas Makari, malware researcher at Aikido Security, wrote in a blog post. 

Wiz researchers told CyberScoop it hasn’t observed any new malicious packages since the initial wave moved through a massive footpoint of cloud and code environments in those first four hours. 

“This is the most critical initial compromise, with over 155 million weekly downloads on the root packages,” Wiz Research said in an email. 

Some of the compromised packages, including keyv, flat-cache and file-entry-cache, are present in more than 46% of all cloud environments, according to Wiz. “By comparison, back in the Shai-Hulud 2.0 campaign the most prevalent packages were only in about 28% of environments,” the company said. 

“Time will tell whether the eventual cost and impact outpaces past attacks, or whether adoption of hardening mechanisms such as package aging, and the usage of the relatively less aggressive Mini Shai-Hulud code as basis, will defray the final toll here,” Wiz Research added. 

Researchers from multiple firms sprung into action to monitor the widening attack spree and published indicators of compromise to help potential victims hunt for malicious activity in their systems. 

The Mini Shai-Hulud variant used in these attacks scoops up a trove of sensitive data, including npm, GitHub, AWS and continuous integration credentials. It also steals AI-related configuration files and cryptocurrency wallets, researchers said. 

Microsoft, Aikido, Socket and Wiz all said the same payload and pattern was observed across all affected packages, indicating a single attacker or threat cluster was behind the supply-chain attack and using multiple stolen tokens. 

The malware showcased a few pieces of new functionality, but retained the same core mechanisms that are hallmarks of Mini Shai-Hulud. 

“The evolution is consistent with what we’ve seen from them in past waves, however we don’t yet have the hard links” to confidently attribute the attacks to TeamPCP, Wiz Research said.

The notorious threat actor, which Google previously told CyberScoop it attributes to one core operator that was located in South Africa during at least some of the attacks, compromised and injected malicious code into more than 1,000 software packages in less than four months earlier this year.

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