Cyberconflict and warfare Archives | Digital Watch Observatory

UK government seeks industry cooperation to strengthen AI-driven cyber resilience

The UK government has called on leading AI companies to collaborate on building advanced cyber defence capabilities, as threats grow in scale and sophistication.

Speaking ahead of CYBERUK, Security Minister Dan Jarvis emphasised that AI-driven security will become a defining challenge, requiring innovation at unprecedented speed and scale.

Government officials warn that AI is already reshaping the threat landscape, with hostile states and criminal groups increasingly deploying automated systems to identify vulnerabilities.

The number of nationally significant cyber incidents handled by authorities more than doubled in 2025, highlighting the urgency of strengthening national resilience.

To address these risks, businesses are being encouraged to sign a voluntary Cyber Resilience Pledge, committing to stronger governance, early warning systems, and supply chain security standards.

Alongside this initiative, the UK government will invest £90 million over the next three years to support cyber defences, particularly for small and medium-sized enterprises.

A strategy that forms part of a broader National Cyber Action Plan, reflecting a shift towards integrating AI into national security infrastructure.

Officials argue that effective cooperation between government and industry will be essential to protect critical systems and maintain economic stability in an increasingly automated threat environment.

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UK’s National Cyber Security Centre chief warns of ‘perfect storm’ for UK cybersecurity

Dr Richard Horne, chief executive of the UK’s National Cyber Security Centre, has described the country as facing a ‘perfect storm’ for cybersecurity.

Speaking at the CYBERUK conference in Glasgow, Horne described developments in AI and wider international tensions as creating a period of ‘tumultuous uncertainty’. He added that the definition of cybersecurity is expanding as technology becomes more deeply embedded in robotics, autonomous systems, and human-integrated technologies.

Horne called for what he described as a ‘cultural shift’ across organisations, adding: ‘cybersecurity is the responsibility of everyone, whether they sit on the Board or the IT help desk… cybersecurity is part of their mission.’

He also argued: ‘organisations that do not focus on their technology base…as core to their prosperity … are no longer just naïve but are failing to grasp the reality of today’s world.’

On the threat landscape, Horne noted that incident numbers remain ‘fairly steady’, but that the source of attacks has shifted, with ‘the majority of the nationally significant incidents that the NCSC is handling now originate directly or indirectly from nation states.’

He also described cyberspace as part of the contested space ‘between peace and war’ and warned that the UK is seeing Russia apply lessons learned during its invasion of Ukraine beyond the battlefield. In that context, he argued that recent conflicts show ‘cyber operations are now integral to conflict’ and that ‘cybersecurity is the home front’.

Addressing frontier AI, Horne said: ‘Frontier AI is rapidly enabling discovery and exploitation of existing vulnerabilities at scale, illustrating how quickly it will expose where fundamentals of cybersecurity are still to be addressed.’

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Europol-backed operation shuts down thousands of dark web fraud sites

A global law enforcement operation supported by Europol has led to the shutdown of more than 373,000 dark web websites linked to fraudulent activity and the advertisement of child sexual abuse material.

The operation, known as ‘Operation Alice’, was launched on 9 March 2026 under the leadership of German authorities, with participation from 23 countries. The investigation, which began in 2021, initially targeted a dark web platform referred to as ‘Alice with Violence CP’.

According to Europol, investigators identified a single operator responsible for managing a network of hundreds of thousands of onion domains. These websites advertised child sexual abuse material and cybercrime-as-a-service offerings, including access to stolen financial data and systems.

Authorities state that the services were fraudulent, designed to extract payments without delivering the advertised material.

The operation has so far resulted in the identification of 440 customers worldwide, with further investigations ongoing against more than 100 individuals. Law enforcement agencies also seized 105 servers and multiple electronic devices during the coordinated action.

Europol provided analytical support, facilitated information exchange, and assisted in tracing cryptocurrency transactions linked to the network.

Authorities also reported that measures were taken throughout the investigation to identify and protect children at risk. An international arrest warrant has been issued for the suspected operator, who is reported to have generated significant profits through the scheme.

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AI safety push sees Anthropic and OpenAI recruit explosives specialists

Anthropic and OpenAI are recruiting chemical and explosives experts to strengthen safeguards for their AI systems, reflecting growing concern about the potential misuse of advanced models.

Anthropic is seeking a policy specialist to design and monitor guardrails governing how its systems respond to prompts involving chemical weapons and explosives. The role includes assessing high-risk scenarios and responding to potential escalation signals in real time.

OpenAI is expanding its Preparedness team, hiring researchers and a threat modeller to identify and forecast risks linked to frontier AI systems. The positions focus on evaluating catastrophic risks and aligning technical, policy, and governance responses.

The recruitment drive comes amid heightened scrutiny of AI safety and national security implications. Anthropic is currently challenging a US government designation that labels it a supply-chain risk, while tensions have emerged over restrictions on the military use of AI systems.

At the same time, OpenAI has secured agreements to deploy its technology in classified environments under defined constraints. The parallel developments highlight how AI firms are balancing commercial expansion with increasing pressure to implement robust safety controls.

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Anthropic dispute pushes Pentagon toward new AI providers

The Pentagon is accelerating efforts to replace Anthropic after the company was designated a supply-chain risk, marking a sharp shift in US defence AI strategy. The move follows a breakdown in talks over safeguards governing military use of AI, particularly around surveillance and autonomous weapons.

Cameron Stanley, the Pentagon’s chief digital and AI officer, said engineering work is underway to deploy alternative large language models in government-controlled environments. He indicated that while transitioning from Anthropic’s tools could take more than a month, new systems are expected to be operational soon.

The decision threatens a $200 million contract and could exclude Anthropic from future defence partnerships. The US administration has set a six-month timeline for federal agencies to shift away from the company, signalling a broader push to diversify AI suppliers and reduce dependency risks.

Rival providers are already stepping in. Op e nAI and xAI have been approved for classified work, while Google is introducing Gemini AI tools across the Pentagon workforce, initially on unclassified networks before expanding into sensitive environments.

Anthropic has challenged the designation in court, arguing it violates constitutional protections and could harm its business. Despite the legal dispute, defence officials have made clear they are moving forward with an ‘AI-first’ strategy to accelerate the adoption of advanced models across military operations.

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Stryker cyberattack wipes devices via Microsoft environment without malware

A major cyber incident has im p acted Stryker Corporation, where attackers targeted its internal Microsoft environment and remotely wiped tens of thousands of employee devices without deploying traditional malware.

Access to systems was reportedly achieved through a compromised administrator account, allowing attackers to issue remote wipe commands via Microsoft Intune.

As a result, large parts of the company’s internal infrastructure were disrupted, with some services remaining offline and business operations affected.

Responsibility has been claimed by Handala, a group often associated with broader geopolitical cyber activity. The incident reflects a growing trend of cyber operations blending disruption, data theft and strategic messaging.

Despite the scale of the attack, the company confirmed that its medical devices and patient-facing technologies were not impacted.

The case highlights increasing risks linked to identity compromise and cloud-based management tools, where attackers can cause significant damage without relying on conventional malware techniques.

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AI agents test limits of EU rules

AI agents are rapidly gaining traction, raising questions about whether existing EU rules can keep pace. Unlike chatbots, these systems can act autonomously and interact with digital tools on behalf of users.

Experts warn that AI agents require deeper access to personal data and online services to function effectively. Regulators in Europe are monitoring potential risks as the technology becomes more integrated into daily life.

Lawmakers are examining whether current legislation, such as the AI Act and GDPR, adequately covers agent-based systems. Legal experts highlight challenges around contracts, liability and accountability when AI acts independently.

Despite concerns, many governments remain reluctant to introduce new rules, citing regulatory fatigue. Policymakers may rely on existing frameworks unless major incidents force a reassessment of AI oversight.

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EU adopts cyber-related sanctions on companies based in China and Iran

The European Union imposed sanctions on two China-based companies and one Iranian company in connection with cyber operations targeting the EU member states. The Council’s official press release does not specify the underlying operations. The designated entities are Integrity Technology Group and Anxun Information Technology, both based in China, and Emennet Pasargad, based in Iran.

According to an EU statement, Integrity Technology is assessed to have facilitated the compromise of over 65,000 devices across six member states. Anxun is assessed to have provided offensive cyber capabilities targeting critical infrastructure, and two of the company’s co-founders have been individually designated for their roles in these operations.

Emennet is assessed to have a compromised digital advertising infrastructure to disseminate disinformation during the 2024 Paris Olympics.

The sanctions entail an asset freeze and a travel ban for the listed individuals. The EU citizens and entities are additionally prohibited from making funds available to the designated companies.

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Hackers target WhatsApp and Signal in global encrypted messaging attacks

Foreign state-backed hackers are targeting accounts on WhatsApp and Signal used by government officials, diplomats, military personnel, and other high-value individuals, according to a security alert issued by the Portuguese Security Intelligence Service (SIS).

Portuguese authorities described the activity as part of a global cyber-espionage campaign aimed at gaining access to sensitive communications and extracting privileged information from Portugal and allied countries. The advisory did not identify the origin of the suspected attackers.

The warning follows similar alerts from other European intelligence agencies. Earlier this week, Dutch authorities reported that hackers linked to Russia were conducting a global campaign targeting the messaging accounts of officials, military personnel, and journalists.

Security agencies say the attackers are not exploiting vulnerabilities in the messaging platforms themselves. Both WhatsApp and Signal rely on end-to-end encryption designed to protect the content of messages from interception.

Instead, the campaign focuses on social engineering tactics that trick users into granting access to their accounts. According to the SIS report, attackers use phishing messages, malicious links, fake technical support requests, QR-code lures, and impersonation of trusted contacts.

The agency also warned that AI tools are increasingly being used to make such attacks more convincing. AI can help impersonate support staff, mimic familiar voices or identities, and conduct more realistic conversations through messages, phone calls, or video.

Once attackers gain access to an account, they may be able to read private messages, group chats, and shared files via WhatsApp and Signal. They can also impersonate the compromised user to launch additional phishing attacks targeting the victim’s contacts.

The alert echoes a previous warning issued by the Cybersecurity and Infrastructure Security Agency (CISA), which reported that encrypted messaging apps are increasingly being used as entry points for spyware and phishing campaigns targeting high-value individuals.

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Anthropic lawsuit gains Big Tech support in AI dispute

Several major US technology companies have backed Anthropic in its lawsuit challenging the US Department of Defence’s decision to label the AI company a national security ‘supply chain risk’.

Google, Amazon, Apple, and Microsoft have filed legal briefs supporting Anthropic’s attempt to overturn the designation issued by Defence Secretary Pete Hegseth. Anthropic argues the decision was retaliation after the company declined to allow its AI systems to be used for mass surveillance or autonomous weapons.

In court filings, the companies warned that the government’s action could have wider consequences for the technology sector. Microsoft said the decision could have ‘broad negative ramifications for the entire technology sector’.

Microsoft, which works closely with the US government and the Department of Defence, said it agreed with Anthropic’s position that AI systems should not be used to conduct domestic mass surveillance or enable autonomous machines to initiate warfare.

A joint amicus brief supporting Anthropic was also submitted by the Chamber of Progress, a technology policy organisation funded by companies including Google, Apple, Amazon and Nvidia. The group said it was concerned about the government penalising a company for its public statements.

The brief described the designation as ‘a potentially ruinous sanction’ for businesses and warned it could create a climate in which companies fear government retaliation for expressing views.

Anthropic’s lawsuit claims the government violated its free speech rights by retaliating against the company for comments made by its leadership. The dispute escalated after Anthropic declined to remove contractual restrictions preventing its AI models from being used for mass surveillance or autonomous weapons.

The company had previously introduced safeguards in government contracts to limit certain uses of its technology. Negotiations over revised contract language continued for several weeks before the disagreement became public.

Former military officials and technology policy advocates have also filed supporting briefs, warning that the decision could discourage companies from participating in national security projects if they fear retaliation for voicing concerns. The case is currently being heard in federal court in San Francisco.

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