Cybercrime Archives | Digital Watch Observatory

Calls grow to strengthen New Zealand privacy law

Pressure is growing in New Zealand to strengthen the Privacy Act following several high-profile data breaches. Debate in New Zealand intensified after a cyberattack exposed medical records from the Manage My Health patient portal.

The breach in New Zealand affected about 120,000 patients and involved threats to release documents on the dark web. Another incident forced the MediMap medication platform offline after unauthorised changes were detected in patient records.

Privacy specialists argue that current enforcement powers are too weak to deter serious failures. The Privacy Act allows only limited financial penalties, with fines generally capped at NZD10,000.

Officials are now considering reforms, including stronger penalties for privacy violations. Policymakers also warn that failure to strengthen the law could threaten the country’s EU data adequacy status.

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New Coruna exploit kit targets iPhones running older iOS versions

The Google Threat Intelligence Group (GTIG) has identified a powerful exploit toolkit, Coruna, that targets Apple iPhones running iOS versions 13.0 to 17.2.1.

The toolkit contains five complete exploit chains and 23 exploits designed to compromise devices using previously unseen techniques and mitigation bypasses.

Parts of the exploit chain were first detected in early 2025, when a client of a commercial surveillance vendor used them. Later investigations revealed the same framework in highly targeted attacks against Ukrainian users linked to a suspected Russian espionage group.

Toward the end of the year, the toolkit resurfaced in large-scale campaigns linked to financially motivated actors operating from China.

Coruna relies on a sophisticated JavaScript framework that identifies iPhone models and their iOS versions before delivering the appropriate WebKit remote code execution exploit and additional bypass techniques.

Several vulnerabilities exploited by the toolkit had previously been treated as zero-day flaws, highlighting the growing circulation of advanced cyber-attack tools among multiple threat actors.

Google warned that the payload can steal sensitive data, including financial and cryptocurrency wallet information, and allows attackers to deploy additional modules remotely.

The company has added related malicious domains to Safe Browsing and urged users to install the latest iOS updates, noting that the exploit kit does not affect the newest version of Apple’s operating system.

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Online privacy faces new pressures in the age of social media

Online privacy is eroding as digital services collect ever-growing personal data and surveillance becomes part of daily technology use. The debate has intensified as social media platforms, advertisers, and connected devices expand their ability to track behaviour, preferences, and habits.

Analysts say younger generations have adapted to this reality rather than resisting it. ‘In 2026, online privacy is a luxury, not a right,’ says Thomas Bunting, an analyst at the UK innovation think tank Nesta. He argues many people have grown up accepting data collection as a trade-off for access to online services, noting: ‘We’ve been taught how to deal with it.’

Advocates warn that the erosion of online privacy could have wider social consequences. Cybersecurity expert Prof Alan Woodward from the University of Surrey says the issue goes beyond personal privacy. ‘People should care about online privacy because it shapes who has power over their lives,’ he says, arguing that privacy is ‘about having something to protect: freedom of thought, experimentation, dissent and personal development without permanent surveillance.’

Despite a growing number of privacy tools and regulations, data exposure remains widespread. According to Statista, more than 1.35 billion people were affected by data breaches, hacks, or exposure in 2024 alone. At the same time, more than 160 countries now have privacy legislation, while users regularly encounter cookie consent prompts that govern how their data is collected online.

Experts say frustration with privacy controls reflects a broader ‘privacy paradox’, in which people express concern about data protection but rarely change their behaviour. Cisco’s Consumer Privacy Survey found that while 89% of respondents said they care about privacy, only 38% actively take steps to protect their data.

As philosopher Carissa Véliz notes, the challenge is not simply awareness but a sense of agency: ‘Mostly, people don’t feel like they have control.’ She argues that protecting privacy requires stronger regulation, responsible technology design, and cultural change, adding: ‘It’s about having [access to] the right tech, but also using it.’

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EU considers placing Roblox under strict Digital Services Act rules

European regulators are examining whether Roblox should fall under the Digital Services Act’s most stringent obligations rather than remain outside the bloc’s most demanding platform rules.

The European Commission began analysing the gaming platform’s reported user figures after the company disclosed roughly 48 million monthly users across the EU.

Numbers above the threshold could qualify Roblox as a Very Large Online Platform under the DSA. Such a designation would mark the first time a gaming platform enters the category alongside social media services already subject to heightened oversight.

Platforms receiving the label must conduct regular risk assessments, submit mitigation reports and demonstrate stronger safeguards for minors.

Regulatory pressure has already begun at the national level. The Dutch Authority for Consumers and Markets launched an investigation in January after concerns that children could encounter violent or sexually explicit content within Roblox games or interact with harmful actors through online features.

Designation at the EU level would transfer supervisory authority to the European Commission, enabling wider investigations and potential fines if violations occur. Officials are still verifying user data before making a formal decision, and no deadline has been announced for the process.

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Shared code, shared risk: How are security responsibilities allocated?

Cyber stability is increasingly tested by geopolitical fragmentation, rapid technological change, and tightly coupled digital supply chains. Open source software sits at the centre of these dynamics: widely embedded in critical digital infrastructure, globally developed, and governed through models that were not designed for today’s security, policy, and geopolitical pressures.

In 2026, the Geneva Dialogue will focus on stress-testing cybersecurity practices and agreed cyber norms under real-world conditions. hrough a scenario-based engagement framework, the Dialogue brings together policymakers, private sector actors, technical communities, and civil society to examine how responsibilities, incentives, and governance arrangements hold up when systems are under strain, with insights from Costin G. Raiu, Mika Lauhde, and Roman Zhukov.

Cybercriminals shift to stolen credentials and AI-enabled attacks

Ransomware attacks are increasingly relying on stolen passwords rather than traditional malware, according to Cloudflare’s latest annual threat report. Attackers now exploit legitimate account credentials to blend into regular traffic, making breaches harder to detect and contain.

Manufacturing and critical infrastructure organisations account for over half of targeted attacks, reflecting their high operational stakes.

Cloudflare highlighted that AI is enabling attackers to prioritise speed and scale over technical sophistication. Generative AI lets criminals automate fraud, hijacking email threads and targeting a ~$49,000 sweet spot to maximise profit while avoiding scrutiny.

Nation-state actors also leverage legitimate platforms for command-and-control operations, with Russia, China, Iran, and North Korea each following distinct cyber strategies.

Researchers warned that modern ransomware is less a malware crisis and more an identity and access challenge. Attackers using authorised credentials can bypass defences and execute high-impact extortion, marking a significant shift in global threat vectors.

The report urges businesses to strengthen identity security, monitor access, and defend against AI-driven attacks that exploit impersonation and automation at scale.

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ClawJacked flaw let attackers hijack AI agents through the browser

A high-severity vulnerability dubbed ‘ClawJacked’ has been discovered in OpenClaw, an open-source AI agent framework that lets developers run autonomous AI assistants locally.

The flaw, uncovered by Oasis Security, allowed malicious websites to silently hijack a user’s local AI agent instance and steal sensitive data, all triggered by a single browser visit.

The attack exploited OpenClaw’s local WebSocket gateway, which assumed that traffic from localhost could be trusted. A malicious website could open a WebSocket connection to the gateway, brute-force the password at hundreds of guesses per second, with no rate limiting applied to local connections, and then silently register as a trusted device without any user prompt.

Once inside, attackers gained admin-level access to the AI agent, connected devices, logs, and configuration data. Oasis Security responsibly disclosed the flaw, and OpenClaw issued a patch within 24 hours, releasing version 2026.2.26.

Security experts are urging organisations to update immediately, audit the permissions held by their AI agents, and apply strict governance policies, treating AI agents as non-human identities that require the same oversight as human users or service accounts.

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Why detecting deepfakes is no longer enough to stay secure

Deepfakes and injection attacks are no longer just tools for misinformation; they are now being deployed to break the identity verification systems that underpin banking, hiring, and account access.

Bad actors are targeting the critical moments when a system determines whether someone is a real person, from customer onboarding at banks to remote hiring and account recovery workflows.

Attackers exploit verification systems in two main ways: by using increasingly convincing synthetic faces and voice clones to mimic real people, and by launching injection attacks that substitute fraudulent video into the capture pipeline before it ever reaches the detection system.

According to the Entrust 2026 Identity Fraud Report, deepfakes are now linked to one in five biometric fraud attempts, with injection attacks rising 40% year-on-year.

Experts warn that detecting deepfakes alone is no longer sufficient. Enterprises must validate the whole session, including device integrity and behavioural signals, in real time.

Gartner predicts that by 2026, 30% of enterprises will no longer consider face-based identity verification reliable in isolation, given the pace AI AI-generated deepfake attacks.

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Deepfake scams target Indian global executives

A deepfake video of Bombay Stock Exchange chief executive Sundararaman Ramamurthy circulated on social media in India, falsely offering stock advice to investors. The exchange moved quickly to report and remove the content, warning the public not to trust fake investment clips.

Cybersecurity experts say such cases are rising sharply, with one US firm estimating a 3,000 percent increase in deepfake incidents over two years. Executives in the US and the UK have also been impersonated using AI-generated audio and video.

In Hong Kong, police said a UK engineering firm lost $25m after an employee joined a video call featuring deepfake versions of senior colleagues. The transfer was made to multiple accounts before the fraud was discovered.

Security companies in the US and the UK are developing detection tools that analyse facial movement and blood flow patterns to identify AI-generated footage. Analysts warn that as costs fall and tools improve, businesses in India, Hong Kong and beyond face an escalating arms race against digital fraud.

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Chrome Gemini vulnerability allowed camera and file access

A high-severity vulnerability in Chrome’s integrated Gemini AI assistant exposed users to the potential activation of the camera and microphone, local file access, and phishing attacks. The issue, tracked as CVE-2026-0628, was disclosed by Palo Alto Networks’ Unit 42 and patched by Google in January 2026.

Gemini Live operates as a privileged AI panel embedded within the browser, capable of web page summarisation and task automation. To enable multimodal functionality, the panel is granted elevated permissions, including access to screenshots, local files, and device hardware.

Researchers identified inconsistent handling of the declarativeNetRequest API when gemini.google.com was loaded inside the AI side panel rather than a standard browser tab. While extensions could inject JavaScript in both cases, the panel context inherited browser-level privileges.

A malicious extension exploiting this distinction could hijack the trusted panel and execute arbitrary code with elevated access. Potential impacts included silent activation of a camera or microphone, screenshot capture, local file exfiltration, and high-credibility phishing attacks.

Google released a fix on 5 January 2026 following responsible disclosure. Users running the latest version of Chrome are protected, and organisations are advised to ensure updates are applied across all endpoints.

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