Cybercrime

Agentic AI drives a new identity security crisis

New research from Rubrik Zero Labs warns that agentic AI is reshaping the identity landscape faster than organisations can secure it.

The study reveals a surge in non-human identities created through automation and API driven workflows, with numbers now exceeding human users by a striking margin.

Most firms have already introduced AI agents into their identity systems or plan to do so, yet many struggle to govern the growing volume of machine credentials.

Experts argue that identity has become the primary attack surface as remote work, cloud adoption and AI expansion remove traditional boundaries. Threat actors increasingly rely on valid credentials instead of technical exploits, which makes weaknesses in identity governance far more damaging.

Rubrik’s researchers and external analysts agree that a single compromised key or forgotten agent account can provide broad access to sensitive environments.

Industry specialists highlight that agentic AI disrupts established IAM practices by blurring distinctions between human and machine activity.

Organisations often cannot determine whether a human or an automated agent performed a critical action, which undermines incident investigations and weakens zero-trust strategies. Poor logging, weak lifecycle controls and abandoned machine identities further expand the attack surface.

Rubrik argues that identity resilience is becoming essential, since IAM tools alone cannot restore trust after a breach. Many firms have already switched IAM providers, reflecting widespread dissatisfaction with current safeguards.

Analysts recommend tighter control of agent creation, stronger credential governance and a clearer understanding of how AI-driven identities reshape operational and security risks.

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Anthropic uncovers a major AI-led cyberattack

The US R&D firm, Anthropic, has revealed details of the first known cyber espionage operation largely executed by an autonomous AI system.

Suspicious activity detected in September 2025 led to an investigation that uncovered an attack framework, which used Claude Code as an automated agent to infiltrate about thirty high-value organisations across technology, finance, chemicals and government.

The attackers relied on recent advances in model intelligence, agency and tool access.

By breaking tasks into small prompts and presenting Claude as a defensive security assistant instead of an offensive tool, they bypassed safeguards and pushed the model to analyse systems, identify weaknesses, write exploit code and harvest credentials.

The AI completed most of the work with only a few moments of human direction, operating at a scale and speed that human hackers would struggle to match.

Anthropic responded by banning accounts, informing affected entities and working with authorities as evidence was gathered. The company argues that the case shows how easily sophisticated operations can now be carried out by less-resourced actors who use agentic AI instead of traditional human teams.

Errors such as hallucinated credentials remain a limitation, yet the attack marks a clear escalation in capability and ambition.

The firm maintains that the same model abilities exploited by the attackers are needed for cyber defence. Greater automation in threat detection, vulnerability analysis and incident response is seen as vital.

Safeguards, stronger monitoring and wider information sharing are presented as essential steps for an environment where adversaries are increasingly empowered by autonomous AI.

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Romania pilots EU Digital Identity Wallet for payments

In a milestone for the European digital identity ecosystem, Banca Transilvania and payments-tech firm BPC have completed the first pilot in Romania using the EU Digital Identity Wallet (EUDIW) for a real-money transaction.

The initiative lets a cardholder authenticate a purchase using the wallet rather than a conventional one-time password or card reader.

The pilot forms part of a large-scale testbed led by the European Commission under the eIDAS 2 Regulation, which requires all EU banks to accept the wallet for strong customer authentication and KYC (know-your-customer) purposes by 2027.

Banca Transilvania’s Deputy CEO Retail Banking, Oana Ilaş, described the project as a historic step toward a unified European digital identities framework that enhances interoperability, inclusivity and banking access.

From a digital governance and payments policy perspective, this pilot is significant. It shows how national banking systems are beginning to integrate digital-ID wallets into card and account-based flows, potentially reducing reliance on legacy authentication mechanisms (such as SMS OTP or hardware tokens) that are vulnerable to fraud.

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Hidden freeze controls uncovered across major blockchains

Bybit’s Lazarus Security Lab says 16 major blockchains embed fund-freezing mechanisms. An additional 19 could adopt them with modest protocol changes, according to the study. The review covered 166 networks using an AI-assisted scan plus manual validation.

Whilst using AI, researchers describe three models: hardcoded blacklists, configuration-based freezes, and on-chain system contracts. Examples cited include BNB Chain, Aptos, Sui, VeChain and HECO in different roles. Analysts argue that emergency tools can curb exploits yet concentrate control.

Case studies show freezes after high-profile attacks and losses. Sui validators moved to restore about 162 million dollars post-Cetus hack, while BNB Chain halted movement after a 570 million bridge exploit. VeChain blocked 6.6 million in 2019.

New blockchain debates centre on transparency, governance and user rights when freezes occur. Critics warn about centralisation risks and opaque validator decisions, while exchanges urge disclosure of intervention powers.

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Police warn of scammers posing as AFP officers in crypto fraud

Cybercriminals are exploiting Australia’s national cybercrime reporting platform, ReportCyber, to trick people into handing over cryptocurrency. The AFP-led Joint Policing Cybercrime Coordination Centre (JPC3) warns scammers are posing as police and using stolen data to file fake reports.

In one recent case, a victim was contacted by someone posing as an AFP officer and informed that their details had been found in a data breach linked to cryptocurrency. The impersonator provided an official reference number, which appeared genuine when checked on the ReportCyber portal.

A second caller, pretending to be from a crypto platform, then urged the target to transfer funds to a so-called ‘Cold Storage’ account. The victim realised the deception and ended the call before losing money.

Detective Superintendent Marie Andersson said the scam’s sophistication lay in its false sense of legitimacy and urgency. Criminals verify personal data and act quickly to pressure victims, she explained. However, growing awareness within the community has helped authorities detect such scams sooner.

Authorities are reminding the public that legitimate officers will never request access to wallets, bank accounts, or seed phrases. Australians should remain cautious, verify unexpected calls, and report any suspicious activity through official channels.

The AFP reaffirmed that ReportCyber remains a safe platform for genuine reports and continues to be a vital tool in tracking and preventing cybercrime nationwide.

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UK moves to curb AI-generated child abuse imagery with pre-release testing

The UK government plans to let approved organisations test AI models before release to ensure they cannot generate child sexual abuse material. The amendment to the Crime and Policing Bill aims to build safeguards into AI tools at the design stage rather than after deployment.

The Internet Watch Foundation reported 426 AI-related abuse cases this year, up from 199 in 2024. Chief Executive Kerry Smith said the move could make AI products safer before they are launched. The proposal also extends to detecting extreme pornography and non-consensual intimate images.

The NSPCC’s Rani Govender welcomed the reform but said testing should be mandatory to make child safety part of product design. Earlier this year, the Home Office introduced new offences for creating or distributing AI tools used to produce abusive imagery, punishable by up to five years in prison.

Technology Secretary Liz Kendall said the law would ensure that trusted groups can verify the safety of AI systems. In contrast, Safeguarding Minister Jess Phillips said it would help prevent predators from exploiting legitimate tools.

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IMY investigates major ransomware attack on Swedish IT supplier

Sweden’s data protection authority, IMY, has opened an investigation into a massive ransomware-related data breach that exposed personal information belonging to 1.5 million people. The breach originated from a cyberattack on IT provider Miljödata in August, which affected roughly 200 municipalities.

Hackers reportedly stole highly sensitive data, including names, medical certificates, and rehabilitation records, much of which has since been leaked on the dark web. Swedish officials have condemned the incident, calling it one of the country’s most serious cyberattacks in recent years.

The IMY said the investigation will examine Miljödata’s data protection measures and the response of several affected public bodies, such as Gothenburg, Älmhult, and Västmanland. The regulator’s goal is to identify security shortcomings for future cyber threats.

Authorities have yet to confirm how the attackers gained access to Miljödata’s systems, and no completion date for the investigation has been announced. The breach has reignited calls for tighter cybersecurity standards across Sweden’s public sector.

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Google flags adaptive malware that rewrites itself with AI

Hackers are experimenting with malware that taps large language models to morph in real time, according to Google’s Threat Intelligence Group. An experimental family dubbed PROMPTFLUX can rewrite and obfuscate its own code as it executes, aiming to sidestep static, signature-based detection.

PROMPTFLUX interacts with Gemini’s API to request on-demand functions and ‘just-in-time’ evasion techniques, rather than hard-coding behaviours. GTIG describes the approach as a step toward more adaptive, partially autonomous malware that dynamically generates scripts and changes its footprint.

Investigators say the current samples appear to be in development or testing, with incomplete features and limited Gemini API access. Google says it has disabled associated assets and has not observed a successful compromise, yet warns that financially motivated actors are exploring such tooling.

Researchers point to a maturing underground market for illicit AI utilities that lowers barriers for less-skilled offenders. State-linked operators in North Korea, Iran, and China are reportedly experimenting with AI to enhance reconnaissance, influence, and intrusion workflows.

Defenders are turning to AI, using security frameworks and agents like ‘Big Sleep’ to find flaws. Teams should expect AI-assisted obfuscation, emphasise behaviour-based detection, watch model-API abuse, and lock down developer and automation credentials.

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Central Bank warns of new financial scams in Ireland

The Central Bank of Ireland has launched a new campaign to alert consumers to increasingly sophisticated scams targeting financial services users. Officials warned that scammers are adapting, making caution essential with online offers and investments.

Scammers are now using tactics such as fake comparison websites that appear legitimate but collect personal information for fraudulent products or services. Fraud recovery schemes are also common, promising to recover lost funds for an upfront fee, which often leads to further financial loss.

Advanced techniques include AI-generated social media profiles and ads, or ‘deepfakes’, impersonating public figures to promote fake investment platforms.

Deputy Governor Colm Kincaid warned that scams now offer slightly above-market returns, making them harder to spot. Consumers are encouraged to verify information, use regulated service providers, and seek regulated advice before making financial decisions.

The Central Bank advises using trusted comparison sites, checking ads and investment platforms, ignoring unsolicited recovery offers, and following the SAFE test: Stop, Assess, Factcheck, Expose. Reporting suspected scams to the Central Bank or An Garda Síochána remains crucial to protecting personal finances.

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Inside the rise and fall of a cybercrime kingpin

Ukrainian hacker Vyacheslav Penchukov, once known online as ‘Tank’, climbed from gaming forums in Donetsk to the top of the global cybercrime scene. As leader of the notorious Jabber Zeus and later Evil Corp affiliates, he helped steal tens of millions from banks, charities and businesses around the world while remaining on the FBI Most Wanted list for nearly a decade.

After years on the run, he was dramatically arrested in Switzerland in 2022 and is now serving time in a Colorado prison. In a rare interview, Penchukov revealed how cybercrime evolved from simple bank theft to organised ransomware targeting hospitals and major corporations. He admits paranoia became his constant companion, as betrayal within hacker circles led to his downfall.

Today, the former cyber kingpin spends his sentence studying languages and reflecting on the empire he built and lost. While he shows little remorse for his victims, his story offers a rare glimpse into the hidden networks that fuel global hacking and the blurred line between ambition and destruction.

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