Great Britain has recently designated its data centres as ‘critical national infrastructure,’ a move designed to bolster their protection against cyber threats. This new classification aligns data centres with other essential services, such as water and energy, highlighting their importance in maintaining the country’s communications and economy.
The announcement comes amidst significant investment in the sector. This includes a £3.75 billion plan by DC01UK to build Europe’s largest data centre in Hertfordshire and an £8 billion commitment by Amazon Web Services for UK operations over the next five years. These investments underscore the increasing importance of securing digital infrastructure.
UK technology minister Peter Kyle emphasised that the new designation would improve collaboration between the government and data centre operators. This collaboration aims to prevent disruptions and protect against cybercriminals. This move follows recent incidents such as the CrowdStrike outage in July, which revealed vulnerabilities in digital infrastructure and underscored the need for increased security.
The National Crime Agency (NCA), once regarded as the UK’s frontline defense against serious and organized crime, including cybercrime, is now in a state of crisis, according to a new report from Spotlight on Corruption, a British nonprofit organisation which focuses on financial corruption.
The report highlights a severe ‘brain drain’ within the agency, with a significant number of experienced personnel leaving, leading to a concerning loss of nearly 20% of its cyber expertise annually. This exodus is primarily blamed on a dysfunctional pay system, which has not only resulted in a high number of vacancies but has also driven up costs. To fill the gaps, the NCA has increasingly relied on temporary workers and consultants, who account for over 10% of the agency’s budget.
The report calls for urgent reform and increased investment in the NCA, warning that the agency’s ability to protect the UK from serious threats, including fraud, corruption, and organized crime, is at a tipping point. Without major changes to pay and working conditions, the agency’s effectiveness is at risk of further deterioration.
The report also contrasts the NCA with the FBI, noting that while the NCA is sometimes referred to as Britain’s equivalent, there are significant differences between the two agencies. The FBI is considered a desirable career path due to its competitive pay, benefits, and opportunities for professional development, resulting in a low staff turnover rate of just 1.7% in 2023. In comparison, British police officers would have to accept a pay cut to join the NCA, which lacks similar financial incentives.
It’s worth noting that the report doesn’t go into the details of the recent successful operations conducted with the participation of the NCA.
In 2023, the Federal Bureau of Investigation’s (FBI) Internet Crime Complaint Center (IC3) reported a significant rise in financial fraud involving cryptocurrencies such as bitcoin, ether, and tether. The IC3 received over 69,000 public complaints about cryptocurrency fraud, resulting in estimated losses exceeding $5.6 billion.
The report highlights that investment scams are the most pervasive form of cryptocurrency exploitation, responsible for nearly 71% of all cryptocurrency-related losses. Call centre frauds, including tech support scams and government impersonation schemes, accounted for about 10% of these losses. The decentralised nature of cryptocurrencies, coupled with the speed and irreversibility of transactions, makes them particularly attractive to criminals and poses substantial challenges in recovering stolen funds.
IC3 plays a central role in aggregating and analysing these complaints to identify trends and develop strategies to combat fraud. Timely and accurate complaint reporting is crucial for aiding law enforcement in their investigations.
Germany’s domestic intelligence agency has warned about a Russian cyber group tied to the military intelligence agency, GRU. Known as Unit 29155 or UNC2589, the group has been accused of launching cyberattacks against NATO and the EU countries, escalating concerns about Russian interference. In a coordinated effort, Germany’s Bundesverfassungsschutz issued the alert in collaboration with the FBI, US cybersecurity agencies, and other international partners.
The warning follows a wave of suspicion across Europe regarding Russian cyber activities, particularly since the invasion of Ukraine in 2022. Earlier this year, Germany accused Russia of targeting the Social Democratic Party as well as industries like defence, aerospace, and logistics. These attacks have been attributed to UNC2589, also known by other names such as Cadet Blizzard or Ember Bear.
The cyber group is reportedly involved in espionage and sabotage, with tactics that include defacing websites and leaking stolen data. The GRU unit to which it belongs is notorious for its alleged role in the poisoning of former Russian double agent Sergei Skripal and his daughter Yulia in Britain in 2018, further cementing its reputation as a severe threat to international security.
New Mexico has filed a lawsuit against Snap Inc, alleging that Snapchat’s design facilitates the sharing of child sexual exploitation material. Attorney General Raul Torrez stated that a months-long investigation found Snapchat to be a key platform for sextortion, where predators coerce minors into sending explicit content.
Snap said it is reviewing the complaint and will respond in court. The company has invested significant funds into trust and safety measures and continues to work with law enforcement and safety experts to combat such issues.
Snapchat is widely used by teens due to its disappearing message feature, which has been criticised for misleading users. According to Torrez, predators can permanently capture the content, creating a virtual collection of child sexual images that are shared indefinitely.
Investigators opened a decoy Snapchat account as part of the investigation, discovering 10,000 records of child sexual abuse material on the dark web. Snapchat was identified as a major source for such content in these sites. New Mexico also sued Meta last December for similar reasons.
CrowdStrike is set to reveal the financial impact of a significant cyber outage that disrupted Microsoft’s Windows operating system last month. The incident, caused by a faulty software update, led to global disruptions, affecting various sectors, including aviation and healthcare.
The outage has sparked lawsuits, including one from Delta Air Lines, and has raised concerns about potential market share losses to rivals.
Following the outage, many customers have reconsidered their cybersecurity options. Competitors like Palo Alto Networks have seized the opportunity, offering discounts to attract customers, which analysts believe may have chipped away at CrowdStrike’s market share. Over half of the company’s brokerages have reduced their annual revenue estimates, anticipating that CrowdStrike may lower its forecast.
Despite the challenges, CrowdStrike remains a dominant player in the cybersecurity industry. Some analysts believe the financial hit from the outage will be short-lived, given the high costs associated with switching providers and the company’s efforts to assist customers in restoring their systems. Shares of CrowdStrike have declined by about 20% since the outage, yet the stock is still up over 5% for the year.
As CrowdStrike prepares to report a 31% revenue increase for the quarter ending in July, its focus is on regaining trust and solidifying its position in the market. The company will also participate in a Microsoft summit in September aimed at enhancing cybersecurity measures, which could be crucial in repairing its reputation.
According to Lumen Technologies, a Chinese hacking group has exploited a software flaw, compromising several internet companies in the US and abroad. Researchers at Lumen revealed that the hackers targeted a previously unknown vulnerability in Versa Director, a software platform used by Santa Clara-based Versa Networks. The attack began early in June and affected four US firms and one in India.
Versa Networks acknowledged the flaw and urged customers to update their software. Lumen’s researchers believe the hacking campaign was conducted by the Chinese government-backed group, ‘Volt Typhoon.’
Allegedly, the attackers aimed to surveil the customers of the compromised internet companies. Cybersecurity experts warn that such access could enable broad, undetected surveillance.
The US Cybersecurity and Infrastructure Security Agency added the Versa vulnerability to its list of known exploited weaknesses. Concerns over China’s cyber activities have grown, with US officials noting an increase in the intensity of these efforts. In April, the FBI warned that China was developing the capability to disrupt critical infrastructure.
Meta recently announced that it had detected attempts to hack WhatsApp accounts belonging to US officials from both the Biden and Trump administrations. The company linked these efforts to an Iranian hacker group, APT42, which has previously been connected to breaches in the Trump campaign. Meta described the attempts as a small-scale operation using social engineering tactics, where hackers posed as technical support from major companies like AOL, Google, Yahoo, and Microsoft.
After users flagged these suspicious activities, Meta blocked the accounts and confirmed that none of the targeted WhatsApp accounts had been compromised. The company explained that APT42 is known for deploying surveillance software on victims’ mobile devices, enabling them to access calls and text messages and even activate cameras and microphones without detection.
These hacking attempts are reportedly part of a broader campaign targeting US presidential campaigns earlier this month, just ahead of the upcoming presidential election. While Meta did not disclose the identities of those targeted, it indicated that the hackers focused on political and diplomatic figures, as well as business leaders from several countries, including the US, UK, Israel, the Palestinian territories, and Iran.
Meta’s findings underscore the ongoing risks of cyber-attacks targeting political figures and highlight the need for increased vigilance as the US heads into a critical election period.
Google and Australia’s national science agency, CSIRO, are teaming up to develop digital tools to detect and fix software vulnerabilities for critical infrastructure operators automatically. The initiative comes in response to a substantial increase in cyberattacks that have targeted essential sectors such as hospitals, defence bodies, and energy suppliers.
The collaboration will focus on creating software tailored to Australia’s regulatory environment. Google will contribute its existing open-source vulnerability database and AI services, while CSIRO will apply its research expertise to enhance the project’s outcomes. The goal is to provide customised cybersecurity solutions that align with local laws and promote greater compliance and trust.
The partnership is part of Google’s commitment to invest A$1 billion in Australia over five years, a pledge made in 2021 amidst Australia’s efforts to enforce stricter regulations on global tech companies. The collaboration is seen as a critical step in bolstering the country’s defences against cyber threats.
Why does this matter?
The Australian government has recently imposed stricter requirements on critical infrastructure operators to report and prevent cyberattacks following a series of breaches that compromised the personal data of millions of Australians. The tools developed through this partnership aim to mitigate such risks and ensure the security of essential services.
The findings from this research will be made publicly available, ensuring that critical infrastructure operators can easily access the information and improve their cybersecurity measures.
Halliburton, a major US oilfield services company, experienced a cyberattack on Wednesday, affecting certain systems and disrupting business operations at its north Houston campus and global networks. The company is working with external experts to resolve the issue and has advised some staff not to connect to internal networks as they investigate the cause and impact of the attack.
Cyberattacks have become a significant concern for the energy sector following high-profile incidents like the 2021 Colonial Pipeline ransomware attack that led to fuel shortages and price spikes. Although details about the Halliburton attack remain unclear, ransomware attacks typically involve hackers encrypting data and demanding payment for its release, with threats to leak confidential information if their demands are not met.
Halliburton, one of the largest oilfield services firms globally, is now the latest in a series of major US companies targeted by cybercriminals, raising further alarm in an industry already on high alert for such threats.
