Critical infrastructure

Pakistan launches AI customs system to tackle tax evasion

Pakistan has launched its first AI-powered Customs Clearance and Risk Management System (RMS) to cut tax evasion, reduce corruption, and modernise port operations by automating inspections and declarations.

The initiative, part of broader digital reforms, is led by the Federal Board of Revenue (FBR) with support from the Intelligence Bureau.

By minimising human involvement in customs procedures, the system enables faster, fairer, and more transparent processing. It uses AI and automated bots to assess goods’ value and classification, improve risk profiling, and streamline green channel clearances.

Early trials showed a 92% boost in system performance and more than double the efficiency in identifying compliant cargo.

Prime Minister Shehbaz Sharif praised the collaboration between the FBR and IB, calling the initiative a key pillar of national economic reform. He urged full integration of the system into the country’s digital infrastructure and reaffirmed tax reform as a government priority.

The AI system is also expected to close loopholes in under-invoicing and misdeclaration, which have long been used to avoid duties.

Meanwhile, video analytics technology is trialled to detect factory tax fraud, with early tests showing 98% accuracy. In recent enforcement efforts, authorities recovered Rs178 billion, highlighting the potential of data-driven approaches in tackling fiscal losses.

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Survey reveals sharp rise in cyberattacks on Japan’s small businesses

A May 2025 survey by Teikoku Databank reveals that nearly one in three Japanese companies have experienced a cyberattack. The survey targeted over 26,000 businesses and received 10,645 valid responses.

Among respondents, 32% reported having been targeted by cyberattacks. Large firms in Japan were more likely to be affected at 41.9%, compared to 30.3% for small and medium-sized businesses and just 28.1% for small firms.

Interestingly, while larger firms showed a higher lifetime rate, cyber incidents over the past month were more common among smaller enterprises. Around 6.9% of SMEs and 7.9% of small firms were affected, compared to the overall rate of 6.7%.

Teikoku Databank warned of a sharp increase in risk for small businesses, which often lack the robust cybersecurity infrastructure of larger corporations.

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Regions seek role in EU hospital cyber strategy

The European Commission’s latest plan to strengthen hospital cybersecurity has drawn attention from regional authorities across the EU, who say they were excluded from key decisions.

Their absence, they argue, could weaken the strategy’s overall effectiveness.

With cyberattacks on healthcare systems growing, regional representatives insist they should have a seat at the table.

As those directly managing hospitals and public health, they warn that top-down decisions may overlook urgent local challenges and lead to poorly matched policies.

The Commission’s plan includes creating a dedicated health cybersecurity centre under the EU Agency for Cybersecurity (ENISA) and setting up an EU-wide threat alert system.

Yet doubts remain over how these goals will be met without extra funding or clear guidance on regional involvement.

The concerns point to the need for a more collaborative approach that values regional knowledge.

Without it, the EU risks designing cybersecurity protections that fail to reflect the realities inside Europe’s hospitals.

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FBI issues warning as airline cyberattacks rise, posing national security threat

Less than a year after the cyberattack that shut down Sea-Tac Airport, the FBI has issued a stark new warning: America’s airlines are now targets. The agency confirmed that the cybercrime gang Scattered Spider is actively attacking aviation systems.

This group, known for crippling MGM Resorts, uses social engineering to bypass security. By posing as airline staff, they access systems, steal data and deploy ransomware within hours of a breach.

WestJet, Hawaiian Airlines and Qantas have all been hit in the last two months alone. Qantas reported a data breach affecting more than six million passengers.

Today’s airlines depend on interconnected digital infrastructure. Disruption to crew scheduling, flight planning or maintenance can trigger chaos across entire networks.

The FBI says these attacks are shifting from isolated incidents to coordinated campaigns. Experts fear that state and non-state actors are watching closely, ready to exploit aviation vulnerabilities.

Aircraft are now flying data centres. Their connectivity brings both efficiency and risk. Flight safety could be at stake if attackers compromise weather feeds or ground systems.

Sea-Tac was a warning. What happens when multiple airports are targeted at once? Fictional scenarios are edging closer to reality.

Previous attacks — from Warsaw to London — exposed system weaknesses. The threat has only grown. It is no longer a question of if, but when.

The industry must act decisively. Stronger identity checks, hardened systems, and real-time intelligence sharing are no longer optional. Cybersecurity must become as essential as flight safety.

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SK Telecom unveils $700B cybersecurity upgrade

SK Telecom has announced a major cybersecurity initiative worth KRW 700 billion, designed to restore trust and enhance information security after a recent incident.

The company’s new programme, called the Accountability and Commitment Program, includes four elements to protect customers and reinforce transparency.

A central part of the initiative is the Information Protection Innovation Plan, which involves a five-year investment to build a world-class cybersecurity system.

The project will follow the US National Institute of Standards and Technology’s Cybersecurity Framework and aims to position SK Telecom as Korea’s leader in information security by 2028.

To further support affected customers, the company is upgrading its Customer Assurance Package and introducing a Customer Appreciation Package to thank users for their patience and loyalty.

A subscription cancellation fee waiver has also been included to reduce friction for those reconsidering their service.

SK Telecom says it will maintain its commitment to customer safety and service reliability, pledging to fully address all concerns and enhance security and service quality across the board.

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UK plans new laws to tackle undersea cable sabotage

The UK government’s evolving defence and security policies aim to close legal gaps exposed by modern threats such as cyberattacks and sabotage of undersea cables. As set out in the recent Strategic Defence Review, ministers plan to introduce a new defence readiness bill to protect critical subsea infrastructure better and prepare for hostile acts that fall outside traditional definitions of war.

The government is also considering revising the outdated Submarine Telegraph Act of 1885, whose penalties, last raised in 1982 to £1,000, are now recognised as inadequate. Instead of merely increasing fines, officials from the Ministry of Defence and the Department for Science, Innovation and Technology intend to draft comprehensive legislation that balances civil and military needs, clarifies how to prosecute sabotage, and updates the UK’s approach to national defence in the digital age.

These policy initiatives reflect growing concern about ‘grey zone’ threats—deliberate acts of sabotage or cyber aggression that stop short of open conflict yet pose serious national security risks. Recent suspected sabotage incidents, including damage to subsea cables connecting Sweden, Latvia, Finland, and Estonia, have highlighted how vulnerable undersea infrastructure remains.

Investigations have linked several of these operations to Russian and Chinese interests, emphasising the urgency of modernising UK law. By updating its legislative framework, the UK government aims to ensure it can respond effectively to attacks that blur the line between peace and conflict, safeguarding both national interests and critical international data flows.

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Chinese-linked hackers target French state in Ivanti exploit campaign

A sophisticated cyber campaign linked to Chinese threat actors has targeted French government, defence and media organisations by exploiting zero-day vulnerabilities in Ivanti’s server software, France’s national cyber agency has revealed.

The French National Agency for Information Systems Security (ANSSI) reported that attackers exploited flaws in an end-of-life version of Ivanti’s Cloud Services Appliance. Victims include public agencies, telecoms, finance firms and media outlets. ANSSI dubbed the threat ‘Houken.’

Hackers used tools developed by Chinese-speaking actors, operated during Chinese working hours and pursued both espionage and financial gain. In one case, they deployed a cryptominer—an unusual move for state-linked actors.

The campaign that targeted France relied on chaining Ivanti zero-days (CVE-2024-8190, CVE-2024-9380 and CVE-2024-8963) to deploy a novel rootkit. Attackers then used webshells, fileless backdoors, and anonymising services like NordVPN.

ANSSI noted similarities to activity by UNC5174, a Chinese initial access broker tracked by Mandiant. This actor, also known as ‘Uteus,’ reportedly works with the Ministry of State Security in China.

Evidence suggests that Houken not only sells access to compromised networks but also carries out direct data exfiltration. One victim included the foreign ministry of a South American country.

The Paris Prosecutor’s Office is investigating a possible botnet linked to Chinese state hackers, though it’s unclear if it’s connected to Houken.

ANSSI warns that both Houken and UNC5174 are still active and likely to continue exploiting exposed infrastructure worldwide.

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EU races to catch up in quantum tech amid cybersecurity fears

The European Union is ramping up efforts to lead in quantum computing, but cybersecurity experts warn that the technology could upend digital security as we know it.

In a new strategy published Wednesday, the European Commission admitted that Europe trails the United States and China in commercialising quantum technology, despite its strong academic presence. The bloc is now calling for more private investment to close the gap.

Quantum computing offers revolutionary potential, from drug discovery to defence applications. But its power poses a serious risk: it could break today’s internet encryption.

Current digital security relies on public key cryptography — complex maths that conventional computers can’t solve. But quantum machines could one day easily break these codes, making sensitive data readable to malicious actors.

Experts fear a ‘store now, decrypt later’ scenario, where adversaries collect encrypted data now and crack it once quantum capabilities mature. That could expose government secrets and critical infrastructure.

The EU is also concerned about losing control over homegrown tech companies to foreign investors. While Europe leads in quantum research output, it only receives 5% of global private funding. In contrast, the US and China attract over 90% combined.

European cybersecurity agencies published a roadmap for transitioning to post-quantum cryptography to address the threat. The aim is to secure critical infrastructure by 2030 — a deadline shared by the US, UK, and Australia.

IBM recently said it could release a workable quantum computer by 2029, highlighting the urgency of the challenge. Experts stress that replacing encryption is only part of the task. The broader transition will affect billions of systems, requiring enormous technical and logistical effort.

Governments are already reacting. Some EU states have imposed export restrictions on quantum tech, fearing their communications could be exposed. Despite the risks, European officials say the worst-case scenarios are not inevitable, but doing nothing is not an option.

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DeepSeek gains business traction despite security risks

Chinese AI company DeepSeek is gaining traction in global markets despite growing concerns about national security.

While government bans remain in place across several countries, businesses are turning to DeepSeek’s models for low cost and firm performance, often ranking just behind OpenAI’s ChatGPT and Google’s Gemini in traffic and market share.

DeepSeek’s appeal lies in its efficiency. With advanced engineering techniques like its ‘mixture-of-experts’ system, the company has reduced computing costs by activating fewer parameters without a noticeable drop in performance.

Training costs have reportedly been as low as $5.6 million — a fraction of what rivals like Anthropic spend. As a result, DeepSeek’s models are now available across major platforms, including AWS, Azure, Google Cloud, and even open-source repositories like GitHub and Hugging Face.

However, the way DeepSeek is accessed matters. While companies can safely self-host the models in private environments, using the mobile app or website means sending data to Chinese servers, a key reason for widespread bans on public-sector use.

Individual consumers often lack the technical control enterprises enjoy, making their data more vulnerable to foreign access.

Despite the political tension, demand continues to grow. US firms are exploring DeepSeek as a cost-saving alternative, and its models are being deployed in industries from telecoms to finance.

Even Perplexity, an American AI firm, has used DeepSeek R1 to power a research tool hosted entirely on Western servers. DeepSeek’s open-source edge and rapid technical progress are helping it close the gap with much larger AI competitors — quietly but significantly.

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M&S eyes full online recovery by august after cyberattack

Marks & Spencer (M&S) expects its full online operations to be restored within four weeks, following a cyber attack that struck in April. Speaking at the retailer’s annual general meeting, CEO Stuart Machin said the company aims to resolve the majority of the incident’s impact by August.

The cyberattack, attributed to human error, forced M&S to suspend online sales and disrupted supply chain operations, including its Castle Donington distribution centre. The breach also compromised customer personal data and is expected to result in a £300 million hit to the company’s profit.

April marked the beginning of a multi-month recovery process, with M&S confirming by May that the breach involved a supply chain partner. By June, the financial and operational damage became clear, with limited online services restored and key features like click-and-collect still unavailable.

The e-commerce platform in Great Britain is now partially operational, but services such as next-day delivery remain offline. Machin stated that recovery is progressing steadily, with the goal of full functionality within weeks.

Julius Cerniauskas, CEO of web intelligence firm Oxylabs, highlighted the growing risks of social engineering in cyber incidents. He noted that while technical defences are improving, attackers continue to exploit human vulnerabilities to gain access.

Cerniauskas described the planned recovery timeline as a ‘solid achievement’ but warned that long-term reputational effects could persist. ‘It’s not a question of if you’ll be targeted – but when,’ he said, urging firms to bolster both human and technical resilience.

Executive pay may also be impacted by the incident. According to the Evening Standard, chairman Archie Norman said incentive compensation would reflect any related performance shortfalls. Norman added that systems are gradually returning online and progress is being made each week.

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