M&S CEO targeted by hackers in abusive ransom email

Marks & Spencer has been directly targeted by a ransomware group calling itself DragonForce, which sent a vulgar and abusive ransom email to CEO Stuart Machin using a compromised employee email address.

The message, laced with offensive language and racist terms, demanded that Machin engage via a darknet portal to negotiate payment. It also claimed that the hackers had encrypted the company’s servers and stolen customer data, a claim M&S eventually acknowledged weeks later.

The email, dated 23 April, appears to have been sent from the account of an Indian IT worker employed by Tata Consultancy Services (TCS), a long-standing M&S tech partner.

TCS has denied involvement and stated that its systems were not the source of the breach. M&S has remained silent publicly, neither confirming the full scope of the attack nor disclosing whether a ransom was paid.

The cyber attack has caused major disruption, costing M&S an estimated £300 million and halting online orders for over six weeks.

DragonForce has also claimed responsibility for a simultaneous attack on the Co-op, which left some shelves empty for days. While nothing has yet appeared on DragonForce’s leak site, the group claims it will publish stolen information soon.

Investigators believe DragonForce operates as a ransomware-as-a-service collective, offering tools and platforms to cybercriminals in exchange for a 20% share of any ransom.

Some experts suspect the real perpetrators may be young hackers from the West, linked to a loosely organised online community called Scattered Spider. The UK’s National Crime Agency has confirmed it is focusing on the group as part of its inquiry into the recent retail hacks.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Google warns users to switch to passkeys after new phishing attacks

Google is once again urging users to upgrade their account security by moving away from password-only access, as cyber scams grow increasingly sophisticated.

The warning follows an attempted phishing attack on Instagram boss Adam Mosseri, who revealed he had been targeted by a convincing scam involving a fake Google phone call and a seemingly legitimate email prompting him to change his password.

Though Google quickly traced and suspended the accounts involved, the incident highlights the evolving nature of online threats. The company has reiterated that it never contacts users by phone or email about password changes or account issues. Any such message should be considered a scam.

In response, Google is encouraging users to adopt stronger security methods, such as Passkeys—a login system that replaces passwords with biometric authentication via a trusted device like a smartphone. This can include fingerprint recognition, facial scan, or the phone’s screen lock.

The tech giant also recommends using two-factor authentication (2FA), but advises against relying on SMS codes or email-based verification, which can be intercepted. Instead, users should opt for an authentication app or use Passkeys for greater protection.

With scams becoming more difficult to detect, Google’s message is clear: take proactive steps to secure your account. Users who receive suspicious communication claiming to be from Google are advised to avoid engaging and verify concerns through Google’s official support channels.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Europe gets new cybersecurity support from Microsoft

Microsoft has launched a free cybersecurity initiative for European governments aimed at countering increasingly sophisticated cyber threats powered by AI. Company President Brad Smith said Europe would benefit from tools already developed and deployed in the US.

The programme is designed to identify and disrupt AI-driven threats, including deepfakes and disinformation campaigns, which have previously been used to target elections and undermine public trust.

Smith acknowledged that AI is a double-edged sword, with malicious actors exploiting it for attacks, while defenders increasingly use it to stay ahead. Microsoft continues to monitor how its AI products are used, blocking known cybercriminals and working to ensure AI serves as a stronger shield than weapon.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

China accuses Taiwan of cyber attacks and offers a bounty

Authorities in Guangzhou have placed a secret bounty on more than 20 individuals suspected of launching cyber attacks on Chinese targets, according to state news agency Xinhua.

One named suspect, Ning Enwei, is reportedly linked to Taiwan’s government. While the size of the reward remains undisclosed, officials claim the accused hackers targeted sectors including defence, aerospace, energy, and science—alongside agencies in Hong Kong and Macau.

Xinhua stated that Taiwan’s ‘information, communication and digital army’ has coordinated with US forces to carry out cyber and cognitive warfare against China.

These accusations form part of a broader Chinese narrative suggesting Taiwan is seeking independence through foreign alliances, particularly with US intelligence agencies. State media also claimed the US has trained Taiwanese personnel and helped orchestrate cyber attacks on the mainland.

In response, a senior Taiwanese security official, speaking anonymously, dismissed the claims as fabricated. The official argued that Beijing is attempting to deflect criticism following allegations of Chinese cyber activities in Europe, especially in the Czech Republic.

‘It is typical of the Chinese Communist Party’s efforts to change the narrative,’ the official said, branding Beijing an international cyber threat instead of a victim.

Taiwan’s government has yet to issue an official statement.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Morocco detains suspect in France’s crypto abduction cases

Moroccan police arrested 24-year-old dual French-Moroccan Bajjou Badiss Mohamed AmiDe, wanted for kidnappings of cryptocurrency holders in France. An Interpol red notice issued by French authorities led to his identification and arrest.

Charges include organised crime, kidnapping, and extortion. Due to his dual nationality, he will face trial in Morocco, with French prosecutors sharing the case files.

The arrest follows a recent surge in violent attacks on crypto entrepreneurs in France. Interior Minister Bruno Retailleau has introduced emergency security measures, including private consultations and home risk assessments for those at risk.

France has seen 14 of the world’s 50 known attacks on crypto figures over the past year, according to Ledger co-founder Éric Larchevêque.

High-profile incidents include the attempted abduction of Paymium CEO Pierre Noizat’s daughter and the arrest of seven suspects linked to a victim found with a severed finger. Officials stress the urgency of judicial action to prevent further violence.

French authorities have thanked Morocco for its cooperation, while proceedings against Bajjou will continue under Moroccan jurisdiction.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot

Czech justice minister resigns over Bitcoin scandal

The Czech government faces a no-confidence vote after Justice Minister Pavel Blazek resigned amid controversy over a Bitcoin donation. The digital contribution, worth millions, came from Tomas Jirikovsky, a convicted drug trafficker linked to Sheep Marketplace.

The donation, made in March, was sold for over $45 million at a public auction, sparking political backlash.

Blazek denied any wrongdoing in accepting the donation but stepped down amid growing pressure. Opposition party ANO criticised the government’s handling of the affair, calling for immediate resignation.

The scandal adds to mounting concerns as the October elections approach, with polls showing the ruling coalition trailing behind ANO.

Jirikovsky was convicted in 2017 and released in 2021, after which he sought to reclaim seized Bitcoin. Investigations revealed a dark web trail tied to the donation, but no formal links to other marketplaces were confirmed.

Political analysts suggest Prime Minister Petr Fiala could also face scrutiny due to his close association with Blazek.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot

Salt Typhoon and Silk Typhoon reveal weaknesses

Recent revelations about Salt Typhoon and Silk Typhoon have exposed severe weaknesses in how organisations secure their networks.

These state-affiliated hacking groups have demonstrated that modern cyber threats come from well-resourced and coordinated actors instead of isolated individuals.

Salt Typhoon, responsible for one of the largest cyber intrusions into US infrastructure, exploited cloud network vulnerabilities targeting telecom giants like AT&T and Verizon, forcing companies to reassess their reliance on traditional private circuits.

Many firms continue to believe private circuits offer better protection simply because they are off the public internet. Some even add MACsec encryption for extra defence. However, MACsec’s ‘hop-by-hop’ design introduces new risks—data is repeatedly decrypted and re-encrypted at each routing point.

Every one of these hops becomes a possible target for attackers, who can intercept, manipulate, or exfiltrate data without detection, especially when third-party infrastructure is involved.

Beyond its security limitations, MACsec presents high operational complexity and cost, making it unsuitable for today’s cloud-first environments. In contrast, solutions like Internet Protocol Security (IPSec) offer simpler, end-to-end encryption.

Although not perfect in cloud settings, IPSec can be enhanced through parallel connections or expert guidance. The Cybersecurity and Infrastructure Security Agency (CISA) urges organisations to prioritise complete encryption of all data in transit, regardless of the underlying network.

Silk Typhoon has further amplified concerns by exploiting privileged credentials and cloud APIs to infiltrate both on-premise and cloud systems. These actors use covert networks to maintain long-term access while remaining hidden.

As threats evolve, companies must adopt Zero Trust principles, strengthen identity controls, and closely monitor their cloud environments instead of relying on outdated security models.

Collaborating with cloud security experts can help shut down exposure risks and protect sensitive data from sophisticated and persistent threats.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

HMRC got targeted in a £47 million UK fraud

A phishing scheme run by organised crime groups cost the UK government £47 million, according to officials from His Majesty’s Revenue and Customs.

Criminals posed as taxpayers to claim payments using fake or hijacked credentials. Rather than a cyberattack, the operation relied on impersonation and did not involve the theft of taxpayer data.

Angela MacDonald, HMRC’s deputy chief executive, confirmed to Parliament’s Treasury Committee that the fraud took place in 2024. The stolen funds were taken through three separate payments, though HMRC managed to block an additional £1.9 million attempt.

Officials began a cross-border criminal investigation soon after discovering the scam, which has led to arrests.

Around 100,000 PAYE accounts — typically used by employers for employee tax and national insurance payments — were either created fraudulently or accessed illegally.

Banks were also targeted through the use of HMRC-linked identity information. Customers first flagged the issue when they noticed unusual activity.

HMRC has shut down the fake accounts and removed false data as part of its response. John-Paul Marks, HMRC’s chief executive, assured the committee that the incident is now under control and contained. ‘That is a lot of money and unacceptable,’ MacDonald told MPs.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Coinbase security breach linked to India contractor

Coinbase is under scrutiny after revealing a data breach tied to its contractor TaskUs. The incident reportedly involved insider misconduct at a support centre in India.

Though the breach was disclosed in May, insiders say Coinbase had knowledge of the issue as early as January.

The incident was traced to a TaskUs agent who allegedly photographed customer data and sold it to hackers. TaskUs fired two staff, saying the breach seemed part of a broader campaign targeting several Coinbase service providers.

Operations in Indore were suspended, impacting 226 staff, most of whom received severance.

Hackers accessed names, addresses, masked banking data, and ID documents, but no funds or passwords were compromised. On 11 May, Coinbase received a $20 million ransom demand.

CEO Brian Armstrong rejected the threat and instead offered a $20 million reward for information leading to the attackers’ arrest.

The breach, which affected under 1% of users, has triggered a shareholder lawsuit accusing Coinbase of failing to disclose the incident promptly.

Although its stock dipped 7% after the news, it has since recovered, supported by the company’s recent inclusion in the S&P 500 index.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot

Cyber attack hits Lee Enterprises staff data

Thousands of current and former employees at Lee Enterprises have had their data exposed following a cyberattack earlier this year.

Hackers accessed to the company’s systems in early February, compromising sensitive information such as names and Social Security numbers before the breach was contained the same day.

Although the media firm, which operates over 70 newspapers across 26 US states, swiftly secured its networks, a three-month investigation involving external cybersecurity experts revealed that attackers accessed databases containing employee details.

The breach potentially affects around 40,000 individuals — far more than the company’s 4,500 current staff — indicating that past employees were also impacted.

The stolen data could be used for identity theft, fraud or phishing attempts. Criminals may even impersonate affected employees to infiltrate deeper into company systems and extract more valuable information.

Lee Enterprises has notified those impacted and filed relevant disclosures with authorities, including the Maine Attorney General’s Office.

Headquartered in Iowa, Lee Enterprises draws over 200 million monthly online page views and generated over $611 million in revenue in 2024. The incident underscores the ongoing vulnerability of media organisations to cyber threats, especially when personal employee data is involved.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!