Cybercrime Archives | Digital Watch Observatory

UN Cybercrime Convention Protocol talks reveal competing visions

The process of developing a supplementary protocol to the UN Convention against Cybercrime has begun, with early state submissions already showing competing views over its scope and timing.

The Ad Hoc Committee Secretariat invited preliminary written inputs on the possible scope, objectives and structure of a draft protocol supplementary to the Convention, also known as the ‘Hanoi Convention’. The mandate follows UN General Assembly resolution 79/243, which asked the Committee to negotiate a draft protocol addressing, among other issues, additional criminal offences.

The United States questioned the exercise’s premise, arguing that discussions on a supplementary protocol are premature because the Convention has not yet entered into force and its implementation has not yet been tested. Washington called for the Committee first to address whether a protocol is needed at all before discussing its scope, objectives and structure.

Russia, by contrast, submitted a draft protocol text covering a broad range of offences, including terrorism financing, extremism, arms and drug trafficking, critical information infrastructure, unauthorised access to personal data and crimes involving AI. The proposal reflects a wider approach to criminalisation, including content-related offences that are likely to be contested by states concerned about overreach, legal certainty and human rights safeguards.

Other early submissions appear more cautious. Brazil, Nigeria, and Ecuador broadly support advancing the protocol process, while signalling the need to limit its scope and maintain attention to safeguards. Brazil warned against including offences where there is insufficient international consensus, while Ecuador proposed a structure that includes emerging offences, digital evidence, public-private cooperation, proportionality and human rights.

The early inputs point to a familiar divide in UN cybercrime negotiations: whether the treaty framework should remain focused on classical cybercrime, electronic evidence and criminal justice cooperation, or expand further into content-based offences, national security concerns and politically sensitive forms of online conduct.

Why does it matter?

A supplementary protocol could shape the evolution of the UN cybercrime framework after the adoption of the main Convention. If states use the protocol to add broad or content-related offences, the treaty system could move beyond core cybercrime and electronic evidence cooperation into areas with direct implications for freedom of expression, human rights safeguards, political speech, platform governance and state sovereignty. The early submissions suggest that those unresolved tensions are already resurfacing before the Convention has entered into force.

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Google highlights rising online scam threats

Google has warned that online scams remain a major global challenge, citing estimates that fraud losses could reach nearly $580 billion in 2025.

In its latest fraud and scams advisory, the company said phishing attacks are becoming more sophisticated, with criminals using adversary-in-the-middle techniques and QR code phishing, also known as quishing, to steal credentials and bypass security measures.

The advisory also highlighted risks linked to cryptocurrency investment scams, malicious finance applications and police impersonation schemes. According to Google, scammers are using AI, social engineering and trusted digital services to deceive users, obtain money and collect sensitive information.

Google said its Trust & Safety teams are using AI tools, predictive analytics and policy enforcement to detect and disrupt fraudulent activity across its services. The company also pointed to measures such as stronger protections for session cookies, enforcement against deceptive crypto ads, monitoring of post-installation app behaviour and developer identity verification for apps installed on certified Android devices.

The company urged users to be cautious of unsolicited communications, unrealistic investment promises, unexpected QR codes and requests for personal or financial information.

Why does it matter?

The advisory shows how online fraud is becoming a cross-platform governance problem rather than a narrow cybersecurity issue. Scams now rely on trusted cloud services, mobile apps, messaging platforms, crypto infrastructure and impersonation of public authorities. That creates pressure on major technology companies to strengthen detection, app accountability and policy enforcement, while raising broader questions about consumer protection, platform responsibility and digital trust.

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Crypto mixers gain recognition in US Treasury assessment

The US Treasury Department has acknowledged that cryptocurrency mixers may have lawful privacy uses, while warning that such tools remain vulnerable to abuse by illicit actors.

In a March 2026 report to Congress on innovative technologies to counter illicit finance involving digital assets, Treasury said lawful users may rely on mixers to protect sensitive financial information when transacting on public blockchains. The report said users may seek to conceal details about personal wealth, business payments, charitable donations or consumer spending habits.

Treasury distinguished between custodial digital asset services, including custodial mixers, and decentralised or non-custodial mechanisms that can operate without a central intermediary. Custodial services that accept and transmit value may be required to register with the Financial Crimes Enforcement Network as money services businesses, maintain records and file suspicious activity reports.

The report nevertheless stressed that criminals commonly use mixers, bridges and swaps to make illicit digital asset flows harder to trace. Treasury said mixing is frequently used by North Korea-linked cyber actors, money launderers, ransomware actors and darknet market participants.

Treasury also warned that stablecoins can form part of complex laundering processes involving mixers and other obfuscation techniques. According to the report, illicit actors may move stolen or fraud-linked assets through mixers and then swap them into stablecoins to break the traceable link to the original criminal activity.

The assessment was prepared under the GENIUS Act, which required the Treasury to examine innovative tools for countering illicit finance involving digital assets, including the role of mixers, tumblers and similar services.

Why does it matter?

The report shows the regulatory tension at the centre of digital asset policy: privacy tools can protect legitimate users on transparent public blockchains, but the same tools can also weaken AML/CFT controls, sanctions enforcement and law enforcement tracing. Treasury’s framing matters because future rules on mixers, DeFi, blockchain analytics and stablecoin compliance will need to balance financial privacy with security and illicit finance risks.

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WhatsApp seeks contempt order against NSO over spyware targeting

WhatsApp has asked a US court to hold NSO Group in contempt, alleging that the spyware company violated a permanent injunction barring it from targeting WhatsApp and its users.

The company said it disrupted spear-phishing attempts linked to NSO after investigating user reports. According to WhatsApp, the activity involved malicious links that sought to redirect users to external websites outside the messaging platform.

WhatsApp also said it identified and removed test accounts and groups created on its service as part of the suspected NSO-linked activity. The company is sharing threat indicators to help users and researchers check whether targeting attempts may have occurred across WhatsApp, text messages, email, or other channels.

The latest filing follows WhatsApp’s earlier legal victory against NSO. The company said a court found that NSO violated federal and state anti-hacking laws and issued a permanent injunction barring NSO from targeting WhatsApp and its users.

WhatsApp described commercial spyware as a national security threat, arguing that surveillance-for-hire firms target not only messaging services but also browsers, operating systems, and other applications.
The company said the targets reported for such tools include journalists, government officials, military personnel, and humanitarian organisations. It also warned against easing US restrictions on NSO, which remains on the US government’s Entity List.

WhatsApp said it is contributing to the Spyware Accountability Initiative, which supports organisations working on forensic research, user support, and advocacy against spyware.

Why does it matter?

The case shows how legal orders against spyware companies may still require active technical monitoring and enforcement. WhatsApp’s contempt request also keeps pressure on the commercial spyware industry, where surveillance tools can move across platforms, devices, browsers, and operating systems. The story matters for encrypted communications because it shows that protecting users depends not only on encryption, but also on legal accountability, threat intelligence, vulnerability research, and support for civil society targets.

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Tech firms and law enforcement disrupt Southeast Asia scam networks

A major international operation involving Meta, Microsoft, Coinbase, Starlink, and law enforcement agencies from several countries has disrupted large-scale criminal scam networks operating across Southeast Asia.

The coordinated effort combined digital intelligence, financial investigations, platform enforcement, and real-world law enforcement action to target organised groups responsible for online fraud, investment scams, and other cyber-enabled crimes.

According to Meta, the operation removed more than 1.4 million fraudulent accounts, pages, and groups across Facebook and Instagram. Microsoft suspended around 20,000 malicious accounts linked to scam activity, while Coinbase froze more than $3 million in cryptocurrency assets associated with criminal operations.

Starlink also shut down thousands of internet terminals allegedly used by fraud operations, while law enforcement authorities arrested 63 individuals linked to scam centres.

The initiative brought together the US Department of Justice, the FBI, the US Secret Service, the Royal Thai Police, and law enforcement agencies from the UK, Australia, Canada and New Zealand.

Meta said intelligence sharing between technology companies and law enforcement helped identify additional scam locations and uncover previously unknown criminal networks operating across multiple jurisdictions.

Why does it matter?

The operation shows how online scam networks now rely on a full digital stack: social media accounts, messaging, cryptocurrency payments, connectivity infrastructure, and cross-border money movement. Disrupting these networks increasingly requires coordination between platforms, financial services, internet providers, and law enforcement. The case also highlights the link between digital fraud and physical scam compounds in Southeast Asia, where cybercrime operations often operate across multiple jurisdictions.

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New Zealand’s NCSC warns frontier AI could amplify cybersecurity risks

New Zealand’s National Cyber Security Centre (NCSC) has issued guidance to help government agencies prepare for the cybersecurity implications of frontier AI systems. The advisory notes that frontier AI models may enable more advanced automation, reasoning and decision-making capabilities than previous generations of AI systems.

The guidance describes frontier AI as a dual-use technology, noting that the same capabilities that enhance cyber defence could also enable malicious actors to conduct cyber operations more quickly, at lower cost and on a larger scale. The NCSC warns that frontier AI could amplify risks associated with known vulnerabilities, legacy systems and poor cyber hygiene, creating what it describes as a ‘vulnerability storm’ for organisations.

According to the NCSC, organisations do not need access to the most advanced frontier AI models to strengthen their cyber resilience. Instead, it says effective readiness depends on existing cybersecurity mitigations and practices, including the New Zealand Information Security Manual, the NCSC Cyber Security Framework, Minimum Cyber Security Standards, and Protective Security Requirements.

The advisory urges government entities to treat several actions as immediate priorities, including reviewing compliance with existing standards, confirming executive accountability for frontier AI cyber risk, reviewing NCSC guidance, and identifying material gaps that AI-enabled threat actors could exploit.

The guidance also restates the NCSC Cyber Security Framework’s five functions: guide and govern, identify and understand, prevent and protect, detect and contain, and respond and recover. The advisory highlights a range of baseline cybersecurity measures, including risk management, security awareness, secure configuration, patch management, multi-factor authentication, least-privilege access controls, anomaly detection, data recovery and incident response planning.

Why does it matter?

Frontier AI is expected to increase the speed, scale and sophistication of cyber operations, potentially allowing attackers to identify vulnerabilities, automate exploitation and conduct campaigns more efficiently than before.

Rather than relying solely on new AI-specific defences, New Zealand’s guidance emphasises that strong cybersecurity fundamentals, including patching, access controls, monitoring and incident response, remain the most effective way to reduce risk. The advisory reflects a growing international view that AI is amplifying existing cyber challenges rather than replacing them with entirely new ones.

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Supply chain attack compromises Red Hat software packages on npm

Security researchers at Aikido and JFrog identified malicious code in more than 30 software packages published through a verified Red Hat Cloud Services account on npm, the widely used software package repository for developers. The packages are used across cloud application development and are installed by developers and automated systems worldwide.

According to the researchers, the attackers did not initially target individual developers. Instead, evidence suggests they gained access to the automated pipeline used to publish Red Hat Cloud Services packages to npm. Evidence indicates they gained access to the automated pipeline that publishes Red Hat Cloud Services software to npm, allowing them to distribute modified packages through an officially trusted channel. Developers and organisations following standard security practice, only installing software from verified, trusted sources, would have had no reason to suspect these packages.

Systems that installed the affected packages from 1 June onward may have executed hidden malicious code capable of harvesting credentials and transmitting them to the attackers. That code collected a wide range of credentials from the affected machine: access keys for Amazon, Google, and Microsoft cloud services; tokens used in automated software pipelines; passwords stored in cloud-based vaults; and credentials for a range of developer tools. The collected data was then transmitted to the attackers.

Researchers said the malware attempted to disguise its outbound communications by mimicking requests to an Anthropic-related service address, potentially making malicious traffic less conspicuous in network logs. The specific path used does not correspond to any real Anthropic end point, but its appearance in network logs would be inconspicuous at organisations using Anthropic products. Network defenders should treat any automated process contacting that address as a potential indicator of compromise.

The malware also installs persistent background processes that survive system restarts, and embeds hooks into several widely used AI coding assistants and developer tools. Researchers also warned that the malware may delete files if compromised credentials are revoked before the malicious software is fully removed from the affected system. Organisations investigating this incident should remove all traces of the malware before revoking any compromised credentials.

Aikido and JFrog have published a list of affected package versions and recommend treating any system that installed them on or after 1 June 2026 as potentially compromised until investigated.

Why does it matter?

Software supply chain attacks are particularly difficult to defend against because they exploit trusted distribution channels rather than relying on phishing, malware downloads or other forms of user error. In this case, developers and organisations installing software from a verified source could have unknowingly introduced malicious code into their environments.

The incident also highlights growing concerns around the security of software publishing infrastructure. As organisations increasingly depend on open-source components and automated development pipelines, compromises affecting trusted repositories can have far-reaching consequences across cloud environments, development systems and critical digital services.

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UK proposes hash-matching rules to combat intimate image abuse in search results

The UK government has published draft amendments to the Illegal Content Codes of Practice for search services under the Online Safety Act, proposing new measures to help detect intimate image abuse content. The amendments, published on 1 June, would add a recommended measure for large general search services to use hash-matching technology to detect intimate-image abuse content.

According to the draft, Ofcom prepared the amendments under section 41 of the Online Safety Act and submitted them to the Secretary of State on 15 May. The document was presented to Parliament under section 43 of the Act and is due to lie before both Houses for 40 days.

The proposed measure, designated ICS C8, would apply to providers of large general search services. The measure recommends the use of perceptual hash matching to identify known intimate image abuse content, or cryptographic hash matching where perceptual matching is not supported by the provider’s hash database.

Under the proposal, content matching an unverified hash for the first time would be treated as potentially illegal and subjected to review under Ofcom’s search moderation procedures. Other matches may be treated as illegal content or reviewed as suspected video and image abuse, depending on the provider’s assurance in the detection outcomes.

The amendments also set expectations for human moderator review, regular updates to hash databases, removal of hashes found not to relate to intimate image abuse content, and reviews of precision and recall at least every six months. Ofcom said the proposed measure includes safeguards intended to protect freedom of expression and privacy rights while supporting the detection of illegal content.

Why does it matter?

The proposal reflects growing efforts by regulators to address the spread of non-consensual intimate imagery, including AI-generated content, through proactive detection and moderation measures.

By encouraging the use of hash-matching technologies, UK authorities aim to reduce the repeated circulation of known abusive material while maintaining safeguards for privacy and freedom of expression.

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Germany approves draft law expanding cyber defense powers for federal authorities

Germany’s federal cabinet has approved draft legislation that would expand cyber defence capabilities for three federal agencies, the Federal Office for Information Security (BSI), the Federal Criminal Police Office (BKA), and the Federal Police (Bundespolizei), as part of a broader effort to strenghten the country’s response to cyber threats.

Under the proposal, authorities would be able to block or disrupt software and server infrastructure used in cyberattacks, including systems located outside Germany. The BSI would also receive expanded authority to collect, store, and analyse data to detect activities indicative of attack preparation. Telecommunications providers and major digital platforms would be required to relay BSI warnings about identified threats directly to users.

The government describes the measures as ‘active cyber defence,’ arguing that they are intended to stop or disrupt ongoing attacks rather than conduct retaliatory cyber operations. Current practice involves redirecting attacks to isolated network areas; the new framework would instead authorize direct action against attacker-controlled systems.

According to the Federal Situation Report on Cybercrime 2025, presented by Federal Interior Minister Alexander Dobrindt and the Vice President of the Federal Criminal Police Office, Martina Link, Germany is among Europe’s most frequently targeted countries for cyberattacks.

Federal authorities in Germany have documented sustained campaigns against industrial companies, small and medium-sized enterprises, research institutions, government bodies, and political parties, with a portion attributed to state-affiliated actors.

The draft will now proceed to parliamentary debate. It requires a legislative vote before entering into force.

Why does it matter?

The proposal reflects a broader shift among governments toward more proactive cybersecurity strategies as cyberattacks become increasingly frequent and sophisticated. Rather than focusing solely on defending networks, authorities are seeking legal powers to disrupt malicious infrastructure before attacks cause significant harm.

The legislation also raises important questions about the scope of state cyber powers, oversight mechanisms, and the legal implications of taking action against infrastructure located outside national borders. If adopted, it would mark one of Germany’s most significant cybersecurity policy changes in recent years.

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ENISA identifies risk zone sectors in EU cybersecurity assessment

The European Union Agency for Cybersecurity has released its 2026 NIS360 report, assessing the cybersecurity maturity and criticality of high-criticality sectors under the NIS2 Directive.

The report says cybersecurity maturity across the EU critical sectors has steadily improved as organisations respond to evolving policy requirements and cyber threats. Banking, electricity, and telecommunications remain among the most mature and critical sectors, while trust services, aviation, and financial market infrastructures have moved into the high maturity band.

Gas, road, maritime, and health strengthened their maturity within the moderate band, although ENISA says progress remains uneven across and within sectors. Factors behind the differences include skills shortages, sector-specific characteristics, and organisational size.

The report identifies a ‘risk zone’ covering sectors with lower-than-average maturity and criticality that exceeds their maturity. ENISA lists health, railway, maritime, ICT management services, space, public administrations, and drinking and wastewater as risk-zone sectors, while gas has started moving out of the category.

ENISA says improvements have been driven by cybersecurity legislation, increased political attention, information sharing, collaboration, and operational preparedness. Regulation, including the NIS2 Directive and the Digital Operational Resilience Act, has helped increase investment and encouraged organisations to address vulnerability management, business continuity, disaster recovery, and supply-chain risk.

The report also points to AI, supply-chain and third-party exposure, and geopolitical volatility as major dynamics shaping the cybersecurity environment. ENISA says AI can improve threat detection and response, but can also support more convincing social engineering, shorter exploitation timelines, and broader access to offensive capabilities.

Why does it matter?

The NIS360 report gives the EU policymakers a comparative view of where cybersecurity maturity is improving and where critical sectors remain underprepared. The risk-zone concept is especially useful because it identifies sectors whose importance to society and the economy exceeds their current level of cyber readiness. That makes the report relevant for NIS2 implementation, national supervision, investment priorities, and resilience planning across sectors such as health, public administration, transport, space, and water.

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