Critical infrastructure

CrowdStrike restores almost all Windows sensors after major outage

The US cybersecurity company has successfully restored 97% of its Windows sensors following a global outage caused by a faulty software update. The issue, which began nearly a week ago, affected 8.5 million devices running Microsoft’s Windows operating system, leading to significant disruptions in services, including flights, healthcare, and banking.

The outage was triggered by a fault in CrowdStrike’s Falcon platform sensor, a security agent designed to protect devices from threats. The fault caused computers to crash and display the notorious blue screen of death. In response, CrowdStrike deployed a fix and mobilized all resources to support customers, enhancing recovery efforts with automatic recovery techniques.

The recovery comes amidst scrutiny over the cybersecurity firm’s quality control measures. Despite the challenges, CrowdStrike’s swift response has helped mitigate further impact and restore critical services globally.

Sustainable Metal Cloud plans global expansion amid rising demand

Singapore-headquartered AI cloud provider Sustainable Metal Cloud (SMC) is set to expand globally, driven by fast-growing demand for its energy-saving technology. CEO and co-founder Tim Rosenfield announced plans to extend operations to EMEA (Europe, Middle East, and Africa) and North America in response to client demand. Currently, SMC operates “sustainable AI factories” in Australia and Singapore, with new launches planned in India and Thailand.

Partnering with AI chip giant Nvidia, SMC uses over 1,200 of Nvidia’s high-end H100 AI chips in Singapore to run open-source models like Meta’s Llama 2. Unlike most data centres that rely on air cooling technology, SMC employs immersion cooling, submerging Dell servers fitted with Nvidia GPUs in a synthetic oil called polyalphaolefin. The following method reduces energy consumption by up to 50% compared to traditional air cooling.

The International Energy Agency (IEA) anticipates a tenfold increase in AI demand compared to 2023, with global data centre electricity consumption expected to exceed 1,000 terawatt-hours by 2026. Sustainable Metal Cloud is currently raising $400 million in equity and $550 million in debt to support its expansion, according to sources. That move aligns with the increasing environmental concerns impacting Singapore’s data centre growth and highlights the importance of sustainable technology in meeting future energy demands.

Government entities in Australia to assess foreign control risks in tech

Australia has instructed all government entities to review their technology assets for risks of foreign control or influence. The directive aims to address increasing cyber threats from hostile states and financially motivated attacks. The Australian Signals Directorate (ASD) recently warned of state-sponsored Chinese hacking targeting Australian networks.

The Department of Home Affairs has issued three legally-binding instructions requiring over 1,300 government entities to identify Foreign Ownership, Control or Influence (FOCI) risks in their technology, including hardware, software, and information systems. The organisations in question must report their findings by June 2025.

Additionally, government entities are mandated to audit all internet-facing systems and services, developing specific security risk management plans. They must also engage with the ASD for threat intelligence sharing by the end of the month, ensuring better visibility and enhanced cybersecurity.

The new cybersecurity measures are part of the Protective Security Policy Framework, following Australia’s ban on TikTok from government devices in April 2023 due to security risks. The head of the Australian Security Intelligence Organisation (ASIO) has highlighted the growing espionage and cyber sabotage threats, emphasising the interconnected vulnerabilities in critical infrastructure.

AI cybersecurity in devices deemed high-risk by European Commission

AI-based cybersecurity and emergency services components in internet-connected devices are expected to be classified as high-risk under the AI Act, according to a European Commission document seen by Euractiv. The document, which interprets the relationship between the 2014 Radio Equipment Directive (RED) and the AI Act, marks the first known instance of how AI-based safety components will be treated under the new regulations. The RED pertains to wireless devices, including those using Wi-Fi and Bluetooth, beyond traditional radios.

Under the AI Act, high-risk AI systems will be subject to extensive testing, risk management, security measures, and documentation. The Act includes a list of use cases where AI deployment is automatically considered high-risk, such as in critical infrastructure and law enforcement. It also sets criteria for categorising other high-risk products, requiring third-party conformity assessments in line with sector-specific regulations. AI cybersecurity and emergency services components meet these criteria under the RED, thus being classified as high-risk.

Even in cases where the RED allows for self-assessment compliance with harmonised standards, these AI-based components are still deemed high-risk. The AI Act references numerous sectoral regulations that could classify AI products as high-risk, extending beyond electronics to medical devices, aviation, heavy machinery, and personal watercraft. The preliminary interpretation suggests that self-assessment standards are insufficient to remove the high-risk classification from AI products in these industries.

The AI Act imposes significant requirements on high-risk AI systems, while those not in this category face only minor transparency obligations. The Commission’s document is a preliminary interpretation, and the full application of the AI Act, which spans over 500 pages, remains to be seen. Despite initial estimates that 5-15% of AI systems would be classified as high-risk, a 2022 survey of EU-based startups indicated that 33-50% of these startups consider their products high-risk. Further interpretive work is needed to understand how the AI Act will impact various sectors.

Why does it matter?

The abovementioned proceedings highlight the European Commission’s stringent approach to regulating AI-based cybersecurity and emergency services in internet-connected devices. By classifying these components as high-risk, the AI Act mandates rigorous testing, security measures, and documentation, ensuring robust safety standards. This move underscores the EU’s commitment to protecting critical infrastructure and sensitive data and signals significant regulatory implications for various industries, potentially influencing global standards and practices in AI technology.

Indonesia IT Ministry official resigns amid cyberattack fallout

After recent Indonesia’s most severe cyberattack, Samuel Abrijani Pangerapan, the director-general for applications and information at the Ministry of Communications and Information Technology, resigned, citing moral responsibility. The attack, which struck more than 280 government agencies, resulted in significant data loss and disrupted essential services ranging from airport operations to scholarship management. The hacker group responsible initially demanded a ransom of $8 million, which the government refused to pay. The hackers later apologised and provided a decryption key to unlock the stolen data.

Despite the decryption key’s release, the recovery process has been challenging. The Ministry of Communications and Information Technology reported that only 2% of the data had been saved by early efforts, with the rest presumed lost. President Joko Widodo responded by ordering an immediate cybersecurity audit and the implementation of robust backup strategies across all national data centres. The goal is to prevent similar incidents in the future, emphasising the need for comprehensive security measures.

Public dissatisfaction has grown in response to the government’s handling of the cyberattack. The attack impacted administrative services and caused significant disruptions at airports in Indonesia, where immigration systems were forced to operate manually due to the cyberattack’s effects on automated processes. The scale of the breach underscored existing vulnerabilities across government data management systems managed by PT Telkom Indonesia, whose subsidiary operated the compromised data centre.

Ransomware actors encrypted Indonesia’s national data centre

Hackers have encrypted systems at Indonesia’s national data centre with ransomware, causing disruptions in immigration checks at airports and various public services, according to the country’s communications ministry. The ministry reported that the Temporary National Data Centre (PDNS) systems were infected with Brain Cipher, a new variant of the LockBit 3.0 ransomware.

Communications Minister Budi Arie Setiadi informed that the hackers demanded $8 million for decryption but emphasised that the government would not comply. The attack targeted the Surabaya branch of the national data centre, not the Jakarta location.

The breach risks exposing data from state institutions and local governments. The cyberattack, which began last Thursday, disrupted services such as visa and residence permit processing, passport services, and immigration document management, according to Hinsa Siburian, head of the national cyber agency. The ransomware also impacted online enrollment for schools and universities, prompting an extension of the registration period, as local media reported. Overall, at least 210 local services were disrupted.

Although LockBit ransomware was used, it may have been deployed by a different group, as many use the leaked LockBit 3.0 builder, noted SANS Institute instructor Will Thomas. LockBit was a prolific ransomware operation until its extortion site was shut down in February, but it resurfaced three months later. Cybersecurity analyst Dominic Alvieri also pointed out that the Indonesian government hasn’t been listed on LockBit’s leak site, likely due to typical delays during negotiations. Previously, Indonesia’s data centre has been targeted by hackers, and in 2023, ThreatSec claimed to have breached its systems, stealing sensitive data, including criminal records.

USA scrutinise China Mobile, China Telecom, and China Unicom

The Biden administration is scrutinising China Mobile, China Telecom, and China Unicom over concerns that these firms could misuse their access to American data through their US cloud and internet businesses. The Commerce Department is leading the investigation, subpoenaing the state-backed companies and conducting risk analyses on China Mobile and China Telecom. These companies maintain a small US presence, providing services like cloud computing and routing internet traffic, giving them potential access to sensitive data.

The investigation aims to prevent these Chinese firms from exploiting their US presence to aid Beijing, aligning with Washington’s broader strategy to counteract potential threats to national security from Chinese technology companies. The US has previously barred these companies from providing telephone and broadband services. Authorities could block transactions that allow these firms to operate in data centres and manage internet traffic, potentially crippling their remaining US operations.

China’s embassy in Washington has criticised these actions, urging the US to cease suppressing Chinese companies. No evidence has been found that these firms intentionally provided US data to the Chinese government. However, concerns persist about their capabilities to access and potentially misuse data, primarily through Points of Presence (PoPs) and data centres in the US, which could pose significant security risks.

EU cybersecurity exercise organised to test energy sector’s cyber resilience

The 7th edition of Cyber Europe, organised by the European Union Agency for Cybersecurity (ENISA), tested the resilience of the EU energy sector, highlighting cybersecurity as an increasing threat to critical infrastructure. In 2023, over 200 cyber incidents targeted the energy sector, with more than half aimed specifically at Europe, underscoring the sector’s vulnerability due to its crucial role in the European economy.

Juhan Lepassaar, Executive Director of ENISA, highlighted the exercise’s role in enhancing preparedness and response capacities to protect critical infrastructure, essential for the single market’s stability.

According to ENISA’s Network and Information Security (NIS) Investments report, 32% of energy sector operators lack Security Operations Center (SOC) monitoring for critical Operation Technology (OT) processes, while 52% integrate OT and Information Technology (IT) under a single SOC.

This year’s Cyber Europe exercise focused on a scenario involving cyber threats to EU energy infrastructure amidst geopolitical tensions. Over two days, stakeholders from 30 national cybersecurity agencies and numerous EU bodies collaborated, developing crisis management skills and coordinating responses to simulated cyber incidents. The exercise, one of Europe’s largest, involved over thousand experts across various domains, facilitated by ENISA, which celebrates its 20th anniversary in 2024.

Japan’s space agency hit by series of cyberattacks, no sensitive data breached, officials confirm

Japan’s Chief Cabinet Secretary Yoshimasa Hayashi confirmed that Japan’s space agency, JAXA, has been targeted by several cyberattacks since late last year. The agency has been investigating the breaches, shutting down affected networks, and verifying that no classified information related to rocket and satellite operations or national security was compromised.

Hayashi also confirmed that hackers are located outside Japan and emphasised Japan’s commitment to enhancing its cybersecurity defences. Amidst increasing military developments in response to China’s growing power, Japan aims to develop a counterstrike capability, though experts believe Tokyo will still rely heavily on the United States for launching long-range missiles.

Defense Minister Minoru Kihara assured the public that the attacks have not impacted his ministry but stated that he is closely monitoring JAXA’s ongoing investigation. As part of the investigation, a portion of the affected JAXA network was temporarily shut down.

JAXA, which develops and launches satellites and is involved in advanced missions like asteroid exploration and potential lunar human exploration, has faced multiple cyber incidents since 2016. That year, it was among 200 Japanese companies and research institutes allegedly targeted by Chinese-speaking military hackers. Last year, unknown hackers also attempted to breach JAXA’s network server but failed to access information critical to the operation of rockets and satellites.

In February 2024, Japan’s cyber official Kazutaka Nakamizo highlighted the increasing cyber threats to the country’s critical infrastructure, particularly from China. However, he did not specify which attacks were believed to be linked to Beijing.

Biden administration bans Kaspersky software sales and sanctions the company’s executives

The Biden administration is set to ban the sale of Kaspersky’s products in the US, citing national security concerns over the firm’s ties to the Russian government. The ban is aimed at mitigating the risks of Russian cyberattacks, as the renowned software’s privileged access to computer systems could allow it to steal sensitive information or install malware. The new rule, which leverages powers created during the Trump administration, will also add Kaspersky to a trade restriction list, barring US suppliers from selling to the company.

These restrictions, effective from 29 September, will halt new US business for Kaspersky 30 days after the announcement and prohibit downloads, resales, and licensing of the product. The decision follows a long history of regulatory scrutiny, including a 2017 Department of Homeland Security ban on Kaspersky products from federal networks due to alleged ties with Russian intelligence. Efforts by Kaspersky to propose mitigating measures were deemed insufficient to address these risks.

Furthermore, the U.S. Treasury Department sanctioned twelve executives and senior leaders from Kaspersky on Friday, marking another punitive measure against the cybersecurity company. The Office of Foreign Assets Control (OFAC) targeted the company’s chief operating officer, top legal counsel, head of human resources, and leader of research and development, among others. However, the company itself, its parent and subsidiary companies, and its CEO, Eugene Kaspersky, were not sanctioned.

This action follows a final determination by the Commerce Department to ban the Moscow-based company from operating in the U.S., citing national security risks and concerns about threats to critical infrastructure.

Why does it matter?

Another reaction from the authorities stresses the administration’s strategy to counter potential cyber threats amid the ongoing conflict in Ukraine. And while the impact of the entity blacklisting on Kaspersky’s operations remains to be seen, it appears now that it could significantly affect the company’s supply chain and reputation. Kaspersky, which operates in over 200 countries, has previously denied all accusations and, in response to these restrictive measures, has been operating a networks of Transparency Centers under its Global Transparency Initiative (GTI) where the company provides its source code for an external examination.