Critical infrastructure

FBI says China’s Salt Typhoon breached millions of Americans’ data

China’s Salt Typhoon cyberspies have stolen data from millions of Americans through a years-long intrusion into telecommunications networks, according to senior FBI officials. The campaign represents one of the most significant espionage breaches uncovered in the United States.

The Beijing-backed operation began in 2019 and remained hidden until last year. Authorities say at least 80 countries were affected, far beyond the nine American telcos initially identified, with around 200 US organisations compromised.

Targets included Verizon, AT&T, and over 100 current and former administration officials. Officials say the intrusions enabled Chinese operatives to geolocate mobile users, monitor internet traffic, and sometimes record phone calls.

Three Chinese firms, Sichuan Juxinhe, Beijing Huanyu Tianqiong, and Sichuan Zhixin Ruijie, have been tied to Salt Typhoon. US officials say they support China’s security services and military.

The FBI warns that the scale of indiscriminate targeting falls outside traditional espionage norms. Officials stress the need for stronger cybersecurity measures as China, Russia, Iran, and North Korea continue to advance their cyber operations against critical infrastructure and private networks.

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Anthropic reports misuse of its AI tools in cyber incidents

AI company Anthropic has reported that its chatbot Claude was misused in cyber incidents, including attempts to carry out hacking operations and employment-related fraud.

The firm said its technology had been used to help write malicious code and assist threat actors in planning attacks. However, it also stated that it could disrupt the activity and notify authorities. Anthropic said it is continuing to improve its monitoring and detection systems.

In one case, the company reported that AI-supported attacks targeted at least 17 organisations, including government entities. The attackers allegedly relied on the tool to support decision-making, from choosing which data to target to drafting ransom demands.

Experts note that the rise of so-called agentic AI, which can operate with greater autonomy, has increased concerns about potential misuse.

Anthropic also identified attempts to use AI models to support fraudulent applications for remote jobs at major companies. The AI was reportedly used to create convincing profiles, generate applications, and assist in work-related tasks once jobs had been secured.

Analysts suggest that AI can strengthen such schemes, but most cyber incidents still involve long-established techniques like phishing and exploiting software vulnerabilities.

Cybersecurity specialists emphasise the importance of proactive defence as AI tools evolve. They caution that organisations should treat AI platforms as sensitive systems requiring strong safeguards to prevent their exploitation.

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Law enforcement embraces AI for efficiency amid rising privacy concerns

Law enforcement agencies increasingly leverage AI across critical functions, from predictive policing, surveillance and facial recognition to automated report writing and forensic analysis, to expand their capacity and improve case outcomes.

In predictive policing, AI models analyse historical crime patterns, demographics and environmental factors to forecast crime hotspots. However, this enables pre-emptive deployment of officers and more efficient resource allocation.

Facial recognition technology matches images from CCTV, body cameras or telescopic data against criminal databases. Meanwhile, NLP supports faster incident reporting, body-cam transcriptions and keyword scanning of digital evidence.

Despite clear benefits, risks persist. Algorithmic bias may unfairly target specific groups. Privacy concerns grow where systems flag individuals without oversight.

Automated decisions also raise questions on accountability, the integrity of evidence, and the preservation of human judgement in justice.

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Storm-0501 wipes Azure data after ransomware attack

A ransomware group has destroyed data and backups in a Microsoft Azure environment after exfiltrating sensitive information, which experts describe as a significant escalation in cloud-based attacks.

The threat actor, tracked as Storm-0501, gained complete control over a victim’s Azure domain by exploiting privileged accounts.

Microsoft researchers said the group used native Azure tools to copy data before systematically deleting resources to block recovery efforts.

After exfiltration, Storm-0501 used AzCopy to steal storage account contents and erase cloud assets. Immutable resources were encrypted instead.

The group later contacted the victim via Microsoft Teams using a compromised account to issue ransom demands.

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Cyberattack on IT supplier affects hundreds of Swedish municipalities and regions

The Region of Gotland in Sweden was notified that Miljödata, a Swedish software provider used for managing sick leave and other HR-related records, had been hit by a cyberattack. Later that day, it was confirmed that sensitive personal data may have been leaked, although it remains unclear whether Region Gotland’s data was affected.

Miljödata, which provides systems handling medical certificates, rehabilitation plans, and work-related injuries, immediately isolated its systems and reported the incident to the police. The region of Gotland is one of several regions affected. Investigations are ongoing, and the region is closely monitoring the situation while following standard data protection procedures, according to HR Director Lotta Israelsson.

Swedish Minister for Civil Defence, Carl-Oskar Bohlin, confirmed that the full scope and consequences of the cyberattack remain unclear. Around 200 of Sweden’s 290 municipalities and 21 regions were reportedly affected, many of which use Miljödata systems to manage employee data such as medical certificates and rehabilitation plans.

Miljödata is working with external experts to investigate the breach and restore services. The government is closely monitoring the situation, with CERT-SE and the National Cybersecurity Centre providing support. A police investigation is underway. Bohlin emphasised the need for stronger cybersecurity and announced a forthcoming bill to tighten national cyber regulations.

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AI chatbot Claude misused for high-value ransomware

Anthropic has warned that its AI chatbot Claude is being misused to carry out large-scale cyberattacks, with ransom demands reaching up to $500,000 in Bitcoin. Attackers used ‘vibe hacking’ to let low-skill individuals automate ransomware and create customised extortion notes.

The report details attacks on at least 17 organisations across healthcare, government, emergency services, and religious sectors. Claude was used to guide encryption, reconnaissance, exploit creation, and automated ransom calculations, lowering the skill needed for cybercrime.

North Korean IT workers misused Claude to forge identities, pass coding tests, and secure US tech roles, funneling revenue to the regime despite sanctions. Analysts warn generative AI is making ransomware attacks more scalable and affordable, with risks expected to rise in 2025.

Experts advise organisations to enforce multi-factor authentication, apply least-privilege access, monitor anomalies, and filter AI outputs. Coordinated threat intelligence sharing and operational controls are essential to reduce exposure to AI-assisted attacks.

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Could quantum computing reshape Bitcoin’s future

Quantum technology, rooted in quantum mechanics from the early 1900s, is rapidly advancing and may reshape the future of computing. Quantum computers handle data far faster than classical systems, with Google’s Willow chip marking a key advance.

However, their potential also raises concerns for digital assets such as Bitcoin.

Bitcoin’s cryptographic security relies on the Elliptic Curve Digital Signature Algorithm (ECDSA), which is considered unbreakable with today’s computers. Yet quantum computers, using algorithms like Peter Shor’s, could theoretically expose private keys and compromise wallets.

Experts caution that such risks remain distant, as current quantum hardware is still decades away from posing a real threat.

Beyond security risks, quantum computing could also revive millions of long-lost Bitcoins locked in early wallets. If those coins return to circulation, it could shake Bitcoin’s scarcity and market value.

The debate continues whether these coins should be burned or redistributed to preserve Bitcoin’s economic integrity.

For now, Bitcoin remains safe. Developers are creating quantum-resistant tools like QRAMP and new cryptography to strengthen the network. Users can boost safety by avoiding address reuse and using wallets like Taproot and SegWit.

While quantum risks loom, the network’s adaptability and ongoing research suggest that Bitcoin is well placed to withstand future challenges.

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Global agencies and the FBI issue a warning on Salt Typhoon operations

The FBI, US agencies, and international partners have issued a joint advisory on a cyber campaign called ‘Salt Typhoon.’

The operation is said to have affected more than 200 US companies across 80 countries.

The advisory, co-released by the FBI, the National Security Agency, the Cybersecurity and Infrastructure Security Agency, and the Department of Defence Cyber Crime Centre, was also supported by agencies in the UK, Canada, Australia, Germany, Italy and Japan.

According to the statement, Salt Typhoon has focused on exploiting network infrastructure such as routers, virtual private networks and other edge devices.

The group has been previously linked to campaigns targeting US telecommunications networks in 2024. It has also been connected with activity involving a US National Guard network, the advisory names three Chinese companies allegedly providing products and services used in their operations.

Telecommunications, defence, transportation and hospitality organisations are advised to strengthen cybersecurity measures. Recommended actions include patching vulnerabilities, adopting zero-trust approaches and using the technical details included in the advisory.

Salt Typhoon, also known as Earth Estrie and Ghost Emperor, has been observed since at least 2019 and is reported to maintain long-term access to compromised devices.

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NVIDIA’s sales grow as the market questions AI momentum

Sales of AI chips by Nvidia rose strongly in its latest quarter, though the growth was less intense than in previous periods, raising questions about the sustainability of demand.

The company’s data centre division reported revenue of 41.1 billion USD between May and July, a 56% rise from last year but slightly below analyst forecasts.

Overall revenue reached 46.7 billion USD, while profit climbed to 26.4 billion USD, both higher than expected.

Nvidia forecasts sales of $54 billion USD for the current quarter.

CEO Jensen Huang said the company remains at the ‘beginning of the buildout’, with trillions expected to be spent on AI by the decade’s end.

However, investors pushed shares down 3% in extended trading, reflecting concerns that rapid growth is becoming harder to maintain as annual sales expand.

Nvidia’s performance was also affected by earlier restrictions on chip sales to China, although the removal of limits in exchange for a sales levy is expected to support future revenue.

Analysts noted that while AI continues to fuel stock market optimism, the pace of growth is slowing compared with the company’s earlier surge.

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Google boosts Virginia with $9 billion AI and cloud projects

Alphabet’s Google has confirmed plans to invest $9 billion in Virginia by 2026, strengthening the state’s role as a hub for data infrastructure in the US.

The focus will be on AI and cloud computing, positioning Virginia at the forefront of global technological competition.

The plan includes a new Chesterfield County facility and expansion at existing campuses in Loudoun and Prince William counties. These centres are part of the digital backbone that supports cloud services and AI workloads.

Dominion Energy will supply power for the new Chesterfield project, which may take up to seven years before it is fully operational.

The rapid growth of data centres in Virginia has increased concerns about energy demand. Google said it is working with partners on efficiency and power management solutions and funding community development.

Earlier in August, the company announced a $1 billion initiative to provide every college student in Virginia with one year of free access to its AI Pro plan and training opportunities.

Google’s move follows a broader trend in the technology sector. Microsoft, Amazon, Alphabet, and Meta are expected to spend hundreds of billions of dollars on AI-related projects, with much dedicated to new data centres.

Northern Virginia remains the boom’s epicentre, with Loudoun County earning the name’ Data Centre Alley’ because it has concentrated facilities.

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