Cybercrime

M&S profits plunge after costly cyberattack

Marks & Spencer says a major cyberattack around Easter forced it to shut its website to orders for about six weeks, disrupting logistics, emptying shelves and sending customers to rivals. The breach also exposed personal data, including names, email and postal addresses, and dates of birth.

The incident was traced to ‘human error’, according to chief executive Stuart Machin. M&S estimated the attack cost around £324 million in lost sales, partly offset by a £100 million insurance payout, and expects a total profit impact of about £136 million for the year.

Home delivery restarted in June, while click and collect returned in August, but fashion, home and beauty recovered more slowly than food as the retailer rebuilt systems and worked through backlogs. M&S says online trading has steadily improved and it expects operations to be fully restored by year-end.

The company has pledged tighter security controls and processes following the attack, which highlighted the vulnerability of retail supply chains to cyber incidents. The attack comes amid a surge in cyber incidents targeting UK retailers, including recent campaigns where hackers posed as IT staff to breach corporate networks.

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UN treaty sparks debate over digital cybersecurity

A new UN cybercrime treaty opened for signature on 25 October, raising concerns about digital cybersecurity and privacy protections. The treaty allows broad cross-border cooperation on serious crimes, potentially requiring states to assist investigations that conflict with domestic laws.

Negotiations revealed disagreements over the treaty’s scope and human rights standards, primarily because it grants broad surveillance powers without clearly specifying safeguards for privacy and digital rights. Critics warn that these powers could be misused, putting digital cybersecurity and the rights of citizens at risk.

Governments supporting the treaty are advised to adopt safeguards, including limiting intrusive monitoring, conditioning cooperation on dual criminality, and reporting requests for assistance transparently. Even with these measures, experts caution that the treaty could pose challenges to global digital cybersecurity protection.

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Major crypto fraud network dismantled across Europe

European authorities have dismantled one of the continent’s largest cryptocurrency fraud and money laundering schemes, arresting nine suspects across Cyprus, Spain, and Germany. The network allegedly defrauded hundreds of investors through fake crypto platforms, stealing over €600 million.

The scammers reportedly created websites that mimicked legitimate trading platforms, luring victims through social media, cold calls, and fabricated celebrity endorsements. Once deposits were made, the funds were laundered through blockchain technology, making recovery nearly impossible.

During the operation, investigators seized €800,000 in bank accounts, €415,000 in cryptocurrencies, €300,000 in cash, and luxury watches worth over €100,000. Authorities stated that several properties linked to the network remain under evaluation as investigations continue.

French prosecutors said the suspects face fraud and money laundering charges, carrying sentences of up to ten years. The case underscores the growing cross-border nature of crypto-related crime, with Eurojust’s coordination proving key to dismantling the network.

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World Economic Forum President warns of potential AI and crypto bubbles 

World Economic Forum President Borge Brende has warned that massive investments in AI and cryptocurrencies may create financial bubbles. Speaking in Berlin, he noted that $500 billion has been invested in AI this year, raising concerns about speculative bubbles in AI and cryptocurrency.

Brende described frontier technologies as a ‘big paradigm shift’ that could drive global growth, with potential productivity gains of up to 10% over the next decade. He noted that breakthroughs in medicine, synthetic biology, space, and energy could transform economies, but stressed that the benefits must be widely shared.

Geopolitical uncertainty remains a significant concern, according to Brende. He pointed to rising tensions between the US and China, calling it a race for technological dominance that could shape global power.

He also urged multilateral cooperation to address global challenges, including pandemics, cybercrime, and investment uncertainty.

Despite the disorder in world politics, Brende highlighted the resilience of economies like those in the US, China, and India. He called for patient investment strategies and stronger international coordination to ensure that new technologies translate into sustainable prosperity.

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Mustafa Suleyman warns against building seemingly conscious AI

Mustafa Suleyman, CEO of Microsoft AI, argues that AI should be built for people, not to replace them. Growing belief in chatbot consciousness risks campaigns for AI rights and a needless struggle over personhood that distracts from human welfare.

Debates over true consciousness miss the urgent issue of convincing imitation. Seemingly conscious AI may speak fluently, recall interactions, claim experiences, and set goals that appear to exhibit agency. Capabilities are close, and the social effects will be real regardless of metaphysics.

People already form attachments to chatbots and seek meaning in conversations. Reports of dependency and talk of ‘AI psychosis‘ show persuasive systems can nudge vulnerable users. Extending moral status to uncertainty, Suleyman argues, would amplify delusions and dilute existing rights.

Norms and design principles are needed across the industry. Products should include engineered interruptions that break the illusion, clear statements of nonhuman status, and guardrails for responsible ‘personalities’. Microsoft AI is exploring approaches that promote offline connection and healthy use.

A positive vision keeps AI empowering without faking inner life. Companions should organise tasks, aid learning, and support collaboration while remaining transparently artificial. The focus remains on safeguarding humans, animals, and the natural world, not on granting rights to persuasive simulations.

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Live exploitation of CVE-2024-1086 across older Linux versions flagged by CISA

CISA’s warning serves as a reminder that ransomware is not confined to Windows. A Linux kernel flaw, CVE-2024-1086, is being exploited in real-world incidents, and federal networks face a November 20 patch-or-disable deadline. Businesses should read it as their cue, too.

Attackers who reach a vulnerable host can escalate privileges to root, bypass defences, and deploy malware. Many older kernels remain in circulation even though upstream fixes were shipped in January 2024, creating a soft target when paired with phishing and lateral movement.

Practical steps matter more than labels. Patch affected kernels where possible, isolate any components that cannot be updated, and verify the running versions against vendor advisories and the NIST catalogue. Treat emergency changes as production work, with change logs and checks.

Resilience buys time when updates lag. Enforce least privilege, require MFA for admin entry points, and segment crown-jewel services. Tune EDR to spot privilege-escalation behaviour and suspicious modules, then rehearse restores from offline, immutable backups.

Security habits shape outcomes as much as CVEs. Teams that patch quickly, validate fixes, and document closure shrink the blast radius. Teams that defer kernel maintenance invite repeat visits, turning a known bug into an avoidable outage.

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Cyber and energy leaders meet to harden EU power grid resilience

Europe’s 8th Cybersecurity Forum in Brussels brought together more than 200 officials and operators from energy, cybersecurity and technology to discuss how to protect the bloc’s increasingly digital, decentralised grids. ENISA said strengthening energy infrastructure security is urgent as geopolitics and digitalisation raise risk.

Discussions focused on turning new EU frameworks into real-world protection: the Cyber Resilience Act placing board-level responsibility for security, the NIS2 Directive updating obligations across critical sectors, and the Network Code on Cybersecurity setting common rules for cross-border electricity flows. Speakers pressed for faster implementation, better public-private cooperation and stronger supply-chain security.

Case studies highlighted live threats. Ukraine’s National Cybersecurity Coordination Center warned of the growing threat of hybrid warfare, citing repeated Russian cyberattacks on its power grid dating back to 2015. ENCS demonstrated how insecure consumer-energy devices like EV chargers, PV inverters, and home batteries can be easily exploited when security-by-design measures are absent.

Organisers closed with a call to standardise best practice, improve information sharing and coordinate operators, regulators and suppliers. As DG Energy’s Michaela Kollau noted, the resilience of Europe’s grids depends on a shared commitment to implementing current legislation and sector cybersecurity measures.

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Australian police create AI tool to decode predators’ slang

Australian police are developing an AI tool with Microsoft to decode slang and emojis used by online predators. The technology is designed to interpret coded messages in digital conversations to help investigators detect harmful intent more quickly.

Federal Police Commissioner Krissy Barrett said social media has become a breeding ground for exploitation, bullying, and radicalisation. The AI based prototype, she explained, could allow officers to identify threats earlier and rescue children before abuse occurs.

Barrett also warned about the rise of so-called ‘crimefluencers’, offenders using social media trends to lure young victims, many of whom are pre-teen or teenage girls. Australian authorities believe understanding modern online language is key to disrupting their methods.

The initiative follows Australia’s new under-16 social media ban, due to take effect in December. Regulators worldwide are monitoring the country’s approach as governments struggle to balance online safety with privacy and digital rights.

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AUSTRAC cracks down on crypto ATM money laundering risks

Australia’s financial crime regulator, AUSTRAC, has fined crypto ATM operator Cryptolink $56,340 for failing to report large cash transactions on time. The regulator also ordered the company to improve its anti-money laundering (AML) and counterterrorism financing (CTF) controls.

AUSTRAC’s Crypto Taskforce identified weaknesses in Cryptolink’s risk assessments and reporting controls, raising concerns about the misuse of crypto ATMs by criminals.

According to AUSTRAC CEO Brendan Thomas, crypto ATMs remain one of the highest-risk channels for money laundering in Australia, often used to launder scam proceeds. He emphasised that operators must take stronger action to prevent criminal exploitation of the sector.

As part of the undertaking, Cryptolink must appoint independent reviewers to assess its compliance systems and validate all large cash transaction reports. Cryptolink must report its remedial progress to AUSTRAC by March 2026, having paid the fine without admitting liability.

Findings from AUSTRAC’s taskforce revealed that 85% of transactions made by the 90 most frequent ATM users were linked to scams or money mule schemes. Authorities will keep monitoring high-risk operators to improve oversight and protect consumers from crypto-related crimes.

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AI-driven cybercrime rises across Asia

Cybersecurity experts met in Dubai for the World Economic Forum’s Annual Global Future Councils and Cybersecurity meetings. More than 500 participants, including 150 top cybersecurity leaders, discussed how emerging technologies such as AI are reshaping digital security.

UAE officials highlighted the importance of resilience, trust and secure infrastructure as fundamental to future prosperity. Sessions examined how geopolitical shifts and technological advances are changing the cyber landscape and stressed the need for coordinated global action.

AI-driven cybercrime is rising sharply in Japan, with criminals exploiting advanced technology to scale attacks and target data. Recent incidents include a cyber attack on Asahi Breweries, which temporarily halted production at its domestic factories.

Authorities are calling for stronger cross-border collaboration and improved cybersecurity measures, while Japan’s new Prime Minister, Sanae Takaichi, pledged to enhance cooperation on AI and cybersecurity with regional partners.

Significant global developments include the signing of the first UN cybercrime treaty by 65 nations in Viet Nam, establishing a framework for international cooperation, rapid-response networks and stronger legal protections.

High-profile cyber incidents in the UK, including attacks on Jaguar Land Rover and a nursery chain, have highlighted the growing economic and social costs of cybercrime. These events are prompting calls for businesses to prioritise cyber resilience.

Experts warn that technology is evolving faster than cyber defences, leaving small businesses and less developed regions highly vulnerable. Integrating AI, automation and proactive security strategies is seen as essential to protect organizations and ensure global digital stability.

Cyber resilience is increasingly recognised not just as an IT issue but as a strategic imperative for economic and national security.

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