Cyberconflict and warfare

Pro-Russian hackers arrested for cyberattacks in Spain

Spanish police have arrested three pro-Russian hackers suspected of carrying out cyberattacks against Spain and other NATO countries. These attacks, allegedly for terrorist purposes, targeted public institutions and critical infrastructures in nations supporting Ukraine in the ongoing conflict with Russia. The suspects, whose identities have not been disclosed, were detained in Manacor, Huelva, and Seville.

The arrests are linked to the hacktivist group NoName057(16), active since the Russian invasion of Ukraine. The Civil Guard reported that the group’s manifesto acknowledges their intent to retaliate against Western actions perceived as anti-Russian. Police released footage showing a Soviet-era flag in one suspect’s home.

Investigations continue, with the suspects accused of orchestrating distributed denial of service (DDoS) attacks on web pages of government sectors and essential services. A reference can be made to Russian hackers accused of similar attacks on targets in Lithuania and Norway in 2022.

AI-powered drones to boost Ukraine’s military capabilities

In Ukraine, several startups are advancing AI systems to enhance drone operations, aiming to gain a technological edge in the ongoing conflict. These AI-enabled drones are designed to tackle increasing signal jamming by Russian forces and operate in larger groups, revolutionising modern warfare. The development includes visual systems for target identification, terrain mapping for navigation, and complex programs enabling drones to work in interconnected swarms.

One notable company, Swarmer, is creating software that links drones into a network, allowing for instant decision implementation across the group, with human intervention limited to green-lighting automated strikes. CEO Serhiy Kupriienko explained that AI can manage hundreds of drones, whereas human pilots struggle with more than five. The system, called Styx, directs reconnaissance and strike drones, both aerial and ground-based, with each drone planning its own moves and predicting the behaviour of others in the swarm.

The need for AI drones is increasing as Electronic Warfare (EW) systems disrupt signals between pilots and drones. AI-operated drones could significantly improve hit rates, countering the current drop in strike success due to jamming. The goal is to develop affordable AI targeting systems that can be deployed en masse along the extensive front line, potentially using low-cost computers like the Raspberry Pi. Such advancements could significantly enhance Ukraine’s military capabilities in the ongoing conflict, as seen with their use of Clearview AI’s facial recognition services.

Indonesia begins data recovery after ransomware attack

Indonesia is starting to recover data encrypted in a significant ransomware attack last month, which impacted over 160 government agencies. The cybercriminals, identified as Brain Cipher, initially demanded $8 million in ransom but later apologised and released the decryption key for free, according to cybersecurity firm StealthMole.

The attack disrupted several government services, including immigration and primary airport operations. Officials acknowledged that much of the data had yet to be backed up. Chief Security Minister Hadi Tjahjanto stated that data for 30 public services across 12 ministries had been recovered using a ‘decryption strategy,’ though details were not provided.

The Communications Ministry is gradually restoring services and assets affected by the attack. It remains to be seen if the government used Brain Cipher’s decryption key directly. Neither Hadi nor Communications Minister Budi Arie Setiadi commented on the matter.

Ransomware attacks involve encrypting data and demanding a ransom to unlock it. In this case, the attackers used malicious software known as Lockbit 3.0.

NATO unveils new Cyber Defence Centre

NATO has announced the establishment of the NATO Integrated Cyber Defence Centre (NICC) at its headquarters in Belgium, aimed at bolstering the alliance’s cyber defence capabilities. The following move, unveiled during the 2024 NATO Summit in Washington, DC, comes as NATO marks its 75th anniversary. The NICC will serve to alert military commanders about potential cyber threats and vulnerabilities, enhancing the protection of NATO’s networks and operational use of cyberspace.

The decision to create the NICC is driven by the increasing frequency and sophistication of cyberattacks targeting NATO and its member nations, especially following the Russian invasion of Ukraine in 2022. Notable Russian cyber threat actors like APT 29 and APT 28, along with various hacktivist groups, have been responsible for major cyberattacks, including the 2020 SolarWinds hack and recent attacks on tech companies and the EU diplomatic entities.

NATO spokesperson Farah Dakhlallah announced the creation of the NICC on social media, highlighting its role in leveraging advanced technologies to boost situational awareness in cyberspace and enhance collective resilience and defence. The new centre will integrate civilian and military personnel from NATO countries and involve experts from the cybersecurity industry. Additionally, it will incorporate privately owned civilian critical infrastructure to support NATO’s military activities.

The NICC will be based at NATO’s Supreme Headquarters Allied Powers Europe (SHAPE) in Belgium, home to NATO’s Allied Command Operations. Further details about the NICC and its operations are expected to be disclosed in the coming months.

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.

Macau government websites hit by cyberattack

Several Macau government websites were hacked, prompting a criminal investigation, Chinese state media reported on Wednesday. The hacked sites included those of the office of the secretary for security, the public security police, the fire services department, and the security forces services bureau, causing service disruptions.

Security officials in Macau’s Special Administrative Region believe the cyberattack originated from overseas. However, no further details have been disclosed at this time.

In response, authorities collaborated with telecommunications operators to restore the affected services as quickly as possible. The investigation into the source of the intrusion is ongoing.

US authorities disrupt Russian AI-powered disinformation campaign

Authorities from multiple countries have issued warnings about a sophisticated disinformation campaign backed by Russia that leverages AI-powered software to spread false information both in the US and internationally. The operation, known as Meliorator, is reportedly being carried out by affiliates of RT (formerly Russia Today), a Russian state-sponsored media outlet, to create fake online personas and disseminate misleading content. Since at least 2022, Meliorator has been employed to spread disinformation targeting the US, Poland, Germany, the Netherlands, Spain, Ukraine, and Israel, as detailed in a joint advisory released by US, Canadian, and Dutch security services.

Meliorator is designed to create fake social media profiles that appear to be real individuals, primarily from the US. These bots can generate original posts, follow users, like, comment, repost, and gain followers. They are capable of mirroring and amplifying existing Russian disinformation narratives. The identities of these bots are crafted based on specific parameters like location, political ideologies, and biographical data. Meliorator can also group bots with similar ideologies to enhance their personas.

Moreover, most bot accounts had over 100,000 followers to avoid detection and followed genuine accounts aligned with their fabricated political leanings. As of June 2024, Meliorator was only operational on X, but there are indications that its functionality might have expanded to other social media networks.

The US Justice Department (DOJ) announced the seizure of two domain names and the search of nearly a thousand social media accounts used by Russian actors to establish an AI-enhanced bot farm with Meliorator’s assistance. The bot farm operators registered fictitious social media accounts using private email servers linked to the seized domain names. The FBI took control of these domains, while social media platform X (formerly Twitter) voluntarily suspended the remaining identified bot accounts for violating terms of service.

FBI Director Christopher Wray emphasised that this marks a significant step in disrupting a Russian-sponsored AI-enhanced disinformation bot farm. The goal of the bot farm was to use AI to scale disinformation efforts, undermining partners in Ukraine and influencing geopolitical narratives favouring the Russian government. These accounts commonly posted pro-Kremlin content, including videos of President Vladimir Putin and criticism of the Ukrainian government.

US authorities have linked the development of Meliorator to a former deputy editor-in-chief at RT in early 2022. RT viewed this bot farm as an alternative means of distributing information beyond its television broadcasts, especially after going off the air in the US in early 2022. The Kremlin approved and financed the bot farm, with Russia’s Federal Security Service (FSB) having access to the software to advance its goals.

The DOJ highlighted that the use of US-based domain names by the FSB violates the International Emergency Economic Powers Act, and the associated payments breach US money laundering laws. Deputy Attorney General Lisa Monaco stated that the DOJ and its partners will not tolerate the use of AI by Russian government actors to spread disinformation and sow division among Americans.

Why does it matter?

The disruption of the Russian operation comes just four months before the US presidential election, a period during which security experts anticipate heightened hacking and covert social media influence attempts by foreign adversaries. Attorney General Merrick Garland noted that this is the first public accusation against a foreign government for using generative AI in a foreign influence operation.

Australia accuses China-backed APT40 of cyberattacks on national networks

Australia’s government cybersecurity agency has pointed fingers at a China-backed hacker group, APT40, for pilfering passwords and usernames from two undisclosed Australian networks back in 2022. The Australian Cyber Security Centre, in collaboration with leading cybersecurity agencies from the US, Britain, Canada, New Zealand, Japan, South Korea, and Germany, released a joint report attributing these malicious cyber operations to China’s Ministry of State Security, the primary agency overseeing foreign intelligence. Despite these claims, China’s embassy in Australia refrained from immediate comments on the matter, dismissing the hacking allegations as ‘political manoeuvring’.

The accusations against APT40 come in the wake of previous allegations by US and British officials in March, implicating Beijing in a large-scale cyberespionage campaign that targeted a wide range of individuals and entities, including lawmakers, academics, journalists, and defence contractors.  Moreover, New Zealand also reported on APT40’s targeting of its parliamentary services and parliamentary counsel office in 2021, which resulted in unauthorised access to critical information.

In response to these cyber threats, Defence Minister Richard Marles emphasised the commitment of the Australian government to safeguard its organisations and citizens in the cyber sphere. The attribution of cyber attacks marks a significant step for Australia, signalling its proactive stance in addressing cybersecurity challenges. The timing of this report is noteworthy as Australia and China are in the process of repairing strained relations following tensions that peaked in 2020 over the origins of COVID-19, leading to retaliatory tariffs imposed by Beijing on Australian exports, most of which have now been lifted.

The identification of APT40’s cyber activities stresses the persistent threat posed by state-sponsored hacker groups and the critical importance of robust cybersecurity measures to protect sensitive information and national security. The incident serves as a reminder of the importance of joint attribution networks and international cooperation in combating cyber threats.

French study uncovers Russian disinformation tactics amid legislative campaign

Russian disinformation campaigns are targeting social media to destabilise France’s political scene during its legislative campaign, according to a study by the French National Centre for Scientific Research (CNRS). The study highlights Kremlin strategies such as normalising far-right ideologies and weakening the ‘Republican front’ that opposes the far-right Rassemblement National (RN).

Researchers noted that Russia’s influence tactics, including astroturfing and meme wars, have been used previously during the 2016 US presidential elections and the 2022 French presidential elections to support RN figurehead Marine Le Pen. The Kremlin’s current efforts aim to exploit ongoing global conflicts, such as the Israeli-Palestinian conflict, to influence French political dynamics.

Despite these findings, the actual impact of these disinformation campaigns remains uncertain. Some experts argue that while such interference may sway voter behaviour or amplify tensions, the overall effect is limited. The CNRS study focused on activity on X (formerly Twitter) and acknowledged that further research is needed to understand the broader implications of these digital disruptions.

Crypto thefts surge in 2024

The first half of 2024 saw a significant surge in cryptocurrency thefts, with over $1.38 billion stolen by 24 June, compared to $657 million during the same period in 2023, according to blockchain researchers TRM Labs. The increase in stolen crypto, driven by a few large-scale attacks and rising crypto prices, highlights the growing motivation among cybercriminals. Ari Redbord, global head of policy at TRM Labs, noted that while the security of the crypto ecosystem hasn’t fundamentally changed, the higher value of various tokens has made crypto services more attractive targets.

One of the year’s largest thefts involved $308 million worth of bitcoin stolen from Japanese exchange DMM Bitcoin. Large-scale losses remain relatively rare, although cryptocurrency companies face hacks and cyberattacks frequently. The theft increase comes as crypto prices rebound from the lows following the 2022 collapse of FTX, with bitcoin reaching an all-time high of $73,803.25 in March.

In 2022, around $900 million in cryptocurrency was stolen, partly due to a major $600 million theft from a blockchain network linked to the game Axie Infinity. The US has attributed that theft to North Korean hackers, who the UN has accused of using cyberattacks to fund its nuclear and missile programs. However, North Korea has denied involvement in hacking activities.