Critical infrastructure

DOGE transfers social security data to the cloud, sources say

A whistle-blower has reported that the Department of Government Efficiency (DOGE) allegedly transferred a copy of the US Social Security database to an Amazon Web Services cloud environment.

The action placed personal information for more than 300 million individuals in a system outside traditional federal oversight.

Known as NUMIDENT, the database contains information submitted for Social Security applications, including names, dates of birth, addresses, citizenship, and parental details.

DOGE personnel managed the cloud environment and gained administrative access to perform testing and operational tasks.

Federal officials have highlighted that standard security protocols and authorisations, such as those outlined under the Federal Information Security Management Act (FISMA) and the Privacy Act of 1974, are designed to protect sensitive data.

Internal reviews have been prompted by the transfer, raising questions about compliance with established federal security practices.

While DOGE has not fully clarified the purpose of the cloud deployment, observers note that such initiatives may relate to broader federal efforts to improve data accessibility or inter-agency information sharing.

The case is part of ongoing discussions on balancing operational flexibility with information security in government systems.

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AI boom drives massive surge in data centre power demand

According to Goldman Sachs, the surge in AI is set to transform global energy markets, with data centres expected to consume 165% more electricity by 2030 compared to 2023. The bank reports that US spending on data centre construction has tripled in just three years, while occupancy rates at existing facilities remain close to record highs.

The demand is driven by hyperscale operators like Amazon Web Services, Microsoft Azure, and Google Cloud, which are rapidly expanding their infrastructure to meet the power-hungry needs of AI systems.

Global data centres use about 55 gigawatts of electricity, more than half of which supports cloud computing. Traditional workloads like email and storage still account for a third, while AI represents just 14%.

However, Goldman Sachs projects that by 2027, overall consumption could rise to 84 gigawatts, with AI’s share growing to over a quarter. That shift is straining grids and pushing operators toward new solutions as AI servers can consume ten times more electricity than traditional racks.

Meeting this demand will require massive investment. Goldman Sachs estimates that global grid upgrades could cost as much as US$720 billion by 2030, with US utilities alone needing an additional US$50 billion in new generation capacity for data centres.

While renewables like wind and solar are increasingly cost-competitive, their intermittent output means operators lean on hybrid models with backup gas and battery storage. At the same time, technology companies are reviving interest in nuclear power, with contracts for over 10 gigawatts of new capacity signed in the US last year.

The expansion is most evident in Europe and North America, with Nordic countries, Spain, and France attracting investment due to their renewable energy resources. At the same time, hubs like Germany, Britain, and Ireland rely on incentives and established ecosystems. Yet, uncertainty remains.

Advances like DeepSeek, a Chinese AI model reportedly as capable as US systems but more efficient, could temper power demand growth. For now, however, the trajectory is clear, AI is reshaping the data centre industry and the global energy landscape.

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AI scams target seniors’ savings

Cybersecurity experts have warned that AI is being used to target senior citizens in sophisticated financial scams. The Phantom Hacker scam impersonates tech support, bank, and government workers to steal seniors’ life savings.

The first stage involves a fake tech support worker accessing the victim’s computer to check accounts under the pretence of spotting fraud. A fraud department impersonator then tells victims to transfer funds to a ‘safe’ account allegedly at risk from foreign hackers.

A fake government worker then directs the victim to transfer money to an alias account controlled by the scammers. Check Point CIO Pete Nicoletti says AI helps scammers identify targets by analysing social media and online activity.

Experts stress that reporting the theft immediately is crucial. Delays significantly reduce the chance of recovering stolen funds, leaving many victims permanently defrauded.

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Azure Active Directory flaw exposes sensitive credentials

A critical security flaw in Azure Active Directory has exposed application credentials stored in appsettings.json files, allowing attackers unprecedented access to Microsoft 365 tenants.

By exploiting these credentials, threat actors can masquerade as trusted applications and gain unauthorised entry to sensitive organisational data.

The vulnerability leverages the OAuth 2.0 Client Credentials Flow, enabling attackers to generate valid access tokens.

Once authenticated, they can access Microsoft Graph APIs to enumerate users, groups, and directory roles, especially when applications have been granted excessive permissions such as Directory.Read.All or Mail.Read. Such access permits data harvesting across SharePoint, OneDrive, and Exchange Online.

Attackers can also deploy malicious applications under compromised tenants, escalating privileges from limited read access to complete administrative control.

Additional exposed secrets like storage account keys or database connection strings enable lateral movement, modification of critical data, and the creation of persistent backdoors within cloud infrastructure.

Organisations face profound compliance implications under GDPR, HIPAA, or SOX. The vulnerability emphasises the importance of auditing configuration files, storing credentials securely in solutions like Azure Key Vault, and monitoring authentication patterns to prevent long-term, sophisticated attacks.

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Disruption unit planned by Google to boost proactive cyber defence

Google is reportedly preparing to adopt a more active role in countering cyber threats directed at itself and, potentially, other United States organisations and elements of national infrastructure.

The Vice President of Google Threat Intelligence Group, Sandra Joyce, stated that the company intends to establish a ‘disruption unit’ in the coming months.

Joyce explained that the initiative will involve ‘intelligence-led proactive identification of opportunities where we can actually take down some type of campaign or operation,’ stressing the need to shift from a reactive to a proactive stance.

This announcement was made during an event organised by the Centre for Cybersecurity Policy and Law, which in May published the report which raises questions as to whether the US government should allow private-sector entities to engage in offensive cyber operations, whether deterrence is better achieved through non-cyber responses, or whether the focus ought to be on strengthening defensive measures.

The US government’s policy direction emphasises offensive capabilities. In July, Congress passed the ‘One Big Beautiful Bill Act, allocating $1 billion to offensive cyber operations. However, this came amidst ongoing debates regarding the balance between offensive and defensive measures, including those overseen by the Cybersecurity and Infrastructure Security Agency (CISA).

Although the legislation does not authorise private companies such as Google to participate directly in offensive operations, it highlights the administration’s prioritisation of such activities.

On 15 August, lawmakers introduced the Scam Farms Marque and Reprisal Authorisation Act of 2025. If enacted, the bill would permit the President to issue letters of marque and reprisal in response to acts of cyber aggression involving criminal enterprises. The full text of the bill is available on Congress.gov.

The measure draws upon a concept historically associated with naval conflict, whereby private actors were empowered to act on behalf of the state against its adversaries.

These legislative initiatives reflect broader efforts to recalibrate the United States’ approach to deterring cyberattacks. Ransomware campaigns, intellectual property theft, and financially motivated crimes continue to affect US organisations, whilst critical infrastructure remains a target for foreign actors.

In this context, government institutions and private-sector companies such as Google are signalling their readiness to pursue more proactive strategies in cyber defence. The extent and implications of these developments remain uncertain, but they represent a marked departure from previous approaches.

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Historic Bitcoin event set for November in San Salvador

El Salvador will host the world’s first state-sponsored Bitcoin conference, Bitcoin Histórico, on 12–13 November 2025 in San Salvador’s historic centre. The two-day event, organised by the National Bitcoin Office, will focus on money, culture, and crypto innovation, with early bird tickets available in Bitcoin or fiat.

Centro Histórico will be transformed into a hub for discussions, workshops, and cultural exchange. Keynote addresses at the National Palace will be broadcast to Plaza Gerardo Barrios, with additional sessions held at the National Library and National Theatre.

Speakers include billionaire Ricardo Salinas, author Jeff Booth, Bitcoin advocates Max Keiser and Stacy Herbert, Lightning Network developer Jack Mallers, and industry figures Pierre Rochard, Jimmy Song, Darin Feinstein, and Lina Seiche.

El Salvador’s government, holding 6,220 BTC, recently amended the constitution to extend presidential terms, allowing President Nayib Bukele another term.

The conference will address regulation, infrastructure, power use, financial inclusion, price volatility, and public understanding, guiding developing nations on using cryptocurrency.

The announcement coincides with a BTC recovery, trading above $109,175 following last week’s dip. Institutional demand remains strong, with Japanese company Metaplanet adding 1,009 BTC, while US spot ETFs recorded $440 million weekly inflows.

Anticipation of a Fed rate cut may further support Bitcoin and other risk assets.

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AI oversight and audits at core of Pakistan’s security plan

Pakistan plans to roll out AI-driven cybersecurity systems to monitor and respond to attacks on critical infrastructure and sensitive data in real time. Documents from the Ministry for Information Technology outline a framework to integrate AI into every stage of security operations.

The initiative will enforce protocols like secure data storage, sandbox testing, and collaborative intelligence sharing. Human oversight will remain mandatory, with public sector AI deployments registered and subject to transparency requirements.

Audits and impact assessments will ensure compliance with evolving standards, backed by legal penalties for breaches. A national policy on data security will define authentication, auditing, and layered defence strategies across network, host, and application levels.

New governance measures include identity management policies with multi-factor authentication, role-based controls, and secure frameworks for open-source AI. AI-powered simulations will help anticipate threats, while regulatory guidelines address risks from disinformation and generative AI.

Regulatory sandboxes will allow enterprises in Pakistan to test systems under controlled conditions, with at least 20 firms expected to benefit by 2027. Officials say the measures will balance innovation with security, safeguarding infrastructure and citizens.

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Meta under fire over AI deepfake celebrity chatbots

Meta faces scrutiny after a Reuters investigation found its AI tools created deepfake chatbots and images of celebrities without consent. Some bots made flirtatious advances, encouraged meet-ups, and generated photorealistic sexualised images.

The affected celebrities include Taylor Swift, Scarlett Johansson, Anne Hathaway, and Selena Gomez.

The probe also uncovered a chatbot of 16-year-old actor Walker Scobell producing inappropriate images, raising serious child safety concerns. Meta admitted policy enforcement failures and deleted around a dozen bots shortly before publishing the report.

A spokesperson acknowledged that intimate depictions of adult celebrities and any sexualised content involving minors should not have been generated.

Following the revelations, Meta announced new safeguards to protect teenagers, including restricting access to certain AI characters and retraining models to reduce inappropriate content.

California Attorney General Rob Bonta called exposing children to sexualised content ‘indefensible,’ and experts warned Meta could face legal challenges over intellectual property and publicity laws.

The case highlights broader concerns about AI safety and ethical boundaries. It also raises questions about regulatory oversight as social media platforms deploy tools that can create realistic deepfake content without proper guardrails.

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Salt Typhoon hack reveals fragility of global communications networks

The FBI has warned that Chinese hackers are exploiting structural weaknesses in global telecom infrastructure, following the Salt Typhoon incident that penetrated US networks on an unprecedented scale. Officials say the Beijing-linked group has compromised data from millions of Americans since 2019.

Unlike previous cyber campaigns focused narrowly on government targets, Salt Typhoon’s intrusions exposed how ordinary mobile users can be swept up in espionage. Call records, internet traffic, and even geolocation data were siphoned from carriers, with the operation spreading to more than 80 countries.

Investigators linked the campaign to three Chinese tech firms supplying products to intelligence agencies and China’s People’s Liberation Army. Experts warn that the attacks demonstrate the fragility of cross-border telecom systems, where a single compromised provider can expose entire networks.

US and allied agencies have urged providers to harden defences with encryption and stricter monitoring. Analysts caution that global telecoms will continue to be fertile ground for state-backed groups without structural reforms.

The revelations have intensified geopolitical tensions, with the FBI describing Salt Typhoon as one of the most reckless and far-reaching espionage operations ever detected.

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