Cybercrime

SEC sues Unicoin over alleged $100 million fraud

The US SEC has charged Unicoin and three executives for allegedly raising over $100 million through misleading investor claims. The SEC claims Unicoin falsely promised investors its crypto assets were backed by a multibillion-dollar global property portfolio.

Unicoin CEO Alex Konanykhin, board member Silvina Moschini, and former investment head Alex Dominguez are accused of exaggerating the company’s sales and falsely stating its tokens and certificates were SEC-registered.

The SEC said the real estate backing was worth far less than claimed and that most of the company’s sales were ‘illusory.’

The SEC said Unicoin falsely claimed decades of reserves while operating with less than a year of funding. Unicoin allegedly reported over $3 billion in certificate sales, though only $110 million was raised.

General counsel Richard Devlin was also charged but settled for a $37,500 penalty without admitting guilt. Unicoin and the named executives have yet to issue public statements, though Konanykhin previously said the company would fight the case in court.

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UK research body hit by 5 million cyber attacks

UK Research and Innovation (UKRI), the country’s national funding body for science and research, has reported a staggering 5.4 million cyber attacks this year — a sixfold increase compared to the previous year.

According to data obtained through freedom of information requests, the majority of these threats were phishing attempts, with 236,400 designed to trick employees into revealing sensitive data. A further 11,200 were malware-based attacks, while the rest were identified as spam or malicious emails.

The scale of these incidents highlights the growing threat faced by both public and private sector institutions. Experts believe the rise of AI has enabled cybercriminals to launch more frequent and sophisticated attacks.

Rick Boyce, chief for technology at AND Digital, warned that the emergence of AI has introduced threats ‘at a pace we’ve never seen before’, calling for a move beyond traditional defences to stay ahead of evolving risks.

UKRI, which is sponsored by the Department for Science, Innovation and Technology, manages an annual budget of £8 billion, much of it invested in cutting-edge research.

A budget like this makes it an attractive target for cybercriminals and state-sponsored actors alike, particularly those looking to steal intellectual property or sabotage infrastructure. Security experts suggest the scale and nature of the attacks point to involvement from hostile nation states, with Russia a likely culprit.

Though UKRI cautioned that differing reporting periods may affect the accuracy of year-on-year comparisons, there is little doubt about the severity of the threat.

The UK’s National Cyber Security Centre (NCSC) has previously warned of Russia’s Unit 29155 targeting British government bodies and infrastructure for espionage and disruption.

With other notorious groups such as Fancy Bear and Sandworm also active, the cybersecurity landscape is becoming increasingly fraught.

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Ascension faces fresh data breach fallout

A major cybersecurity breach has struck Ascension, one of the largest nonprofit healthcare systems in the US, exposing the sensitive information of over 430,000 patients.

The incident began in December 2024, when Ascension discovered that patient data had been compromised through a former business partner’s software flaw.

The indirect breach allowed cybercriminals to siphon off a wide range of personal, medical and financial details — including Social Security numbers, diagnosis codes, hospital admission records and insurance data.

The breach adds to growing concerns over the healthcare industry’s vulnerability to cyberattacks. In 2024 alone, 1,160 healthcare-related data breaches were reported, affecting 305 million records — a sharp rise from the previous year.

Many institutions still treat cybersecurity as an afterthought instead of a core responsibility, despite handling highly valuable and sensitive data.

Ascension itself has been targeted multiple times, including a ransomware attack in May 2024 that disrupted services at dozens of hospitals and affected nearly 5.6 million individuals.

Ascension has since filed notices with regulators and is offering two years of identity monitoring to those impacted. However, critics argue this response is inadequate and reflects a broader pattern of negligence across the sector.

The company has not named the third-party vendor responsible, but experts believe the incident may be tied to a larger ransomware campaign that exploited flaws in widely used file-transfer software.

Rather than treating such incidents as isolated, experts warn that these breaches highlight systemic flaws in healthcare’s digital infrastructure. As criminals grow more sophisticated and vendors remain vulnerable, patients bear the consequences.

Until healthcare providers prioritise cybersecurity instead of cutting corners, breaches like this are likely to become even more common — and more damaging.

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President Milei ends investigation into Libra memecoin

Argentina’s government has disbanded the task force investigating the controversial Libra memecoin scandal, just three months after its creation. The unit, created by President Milei, investigated the memecoin that soared to $4.5 billion before crashing to $14 million.

The decree stated the task force had ‘fulfilled its purpose.’

Local lawmakers sharply criticised the decision, accusing the government of shielding those involved. Opposition figures labelled the task force a ‘front’ and suggested the closure was a move to protect suspects.

Meanwhile, the scandal continues to shake Argentina’s crypto scene.

Judge María Servini ordered banks to release financial records from 2023 for key suspects, including President Milei and his sister Karina. The investigation centres on allegations of bribery and illicit profit, involving several individuals connected to the Libra project.

Milei denies any wrongdoing amid mounting scrutiny.

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Legal aid data breach affects UK applicants

The UK Ministry of Justice has confirmed a serious cyber-attack on its Legal Aid Agency, first detected on 23 April and revealed to be more extensive on 16 May. Investigators found that a wide range of personal details belonging to applicants dating back to 2010 were accessed.

The breach has prompted urgent security reviews and cooperation with the National Cyber Security Centre. Stolen information may include names, addresses, dates of birth, national ID numbers, criminal histories, employment records and financial data such as debts and contributions.

While the total number of affected individuals remains unconfirmed, publicly available figures suggest hundreds of thousands of applications across the last year alone. Victims have been urged to monitor for suspicious communications and to change passwords promptly.

UK Legal aid services have been taken offline as contingency measures are put in place to maintain support for vulnerable users. Jane Harbottle, CEO of the Legal Aid Agency, expressed regret over the incident and reassured applicants that efforts are underway to restore secure access.

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Criminals exploit weak mail security in new fraud surge

Check washing fraud is making a worrying comeback in the US, fuelled by both AI-powered identity theft and lax mail security. Criminals are intercepting posted cheques, erasing original details using chemicals, and rewriting them for higher amounts or different recipients.

The rise in such fraud, often unnoticed until the money is long gone, is prompting experts to warn the public to take immediate preventative steps. Reports show a sharp increase in cheque-related scams, with US financial institutions flagging over 665,000 suspicious cases in 2023 alone.

Organised crime groups are now blending traditional cheque theft with modern techniques, such as AI-generated identities and forged digital images. The fraudsters are also using mobile deposits, phishing emails, and business email compromise to trick individuals and companies into transferring funds.

For added protection, individuals and businesses are advised to invest in fraud monitoring, use cheques with security features, and report any suspicious activity without delay. With losses running into hundreds of millions, the growing threat of cheque washing shows no signs of slowing down.

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Hong Kong breaks up cross-border crypto laundering ring

Hong Kong authorities have busted a cross-border crypto laundering network that processed around HK$118 million (US$15 million) in illicit funds. The crackdown led to a dozen arrests amid efforts to stop people from monetising personal banking credentials.

Raids led by the Commercial Crime Bureau on Thursday detained nine men and three women aged between 20 and 40 across several districts. Officials seized HK$1.05 million in cash, over 560 bank cards, multiple devices, and financial documents.

Investigators found the network had recruited mainland Chinese citizens since mid-2023 to open fraudulent bank accounts in Hong Kong. These accounts were used to channel criminal proceeds from scams, with cash withdrawn and converted into cryptocurrency.

Two Hong Kong residents were arrested as primary organisers, alongside ten mainland Chinese nationals who served as account fronts. The operation reportedly used more than 550 domestic bank accounts to launder about HK$118 million.

So far, authorities have linked HK$10 million of the laundered money to 58 fraud cases. Victims reported losses totalling HK$43.2 million. The network operated from a Mong Kok apartment, where recruits stayed while processing fraudulent transfers.

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Coinbase hit by breach and SEC probe ahead of S&P 500 entry

Cryptocurrency exchange Coinbase has disclosed a potential financial impact of $180 million to $400 million following a cyberattack that compromised customer data, according to a regulatory filing on Thursday.

The company said it received an email from an unidentified threat actor on Sunday, claiming to possess internal documents and account data for a limited number of customers.

Although hackers gained access to personal information such as names, addresses, and email addresses, Coinbase confirmed that no login credentials or passwords were compromised.

Coinbase stated it would reimburse users who were deceived into transferring funds to the attackers. It also revealed that multiple contractors and support staff outside the US had provided information to the hackers. Those involved have been terminated, the company said.

In parallel, the US Securities and Exchange Commission (SEC) is reportedly investigating whether Coinbase previously misrepresented its verified user figures.

Two sources familiar with the matter told Reuters that the SEC inquiry is ongoing, though it does not focus on know-your-customer (KYC) compliance or Bank Secrecy Act obligations. Coinbase has denied any such investigation into its compliance practices.

The SEC declined to comment. Coinbase’s chief legal officer, Paul Grewal, characterised the probe as a continuation of a past investigation into a user metric the company stopped reporting over two years ago. He said Coinbase is cooperating with the SEC but believes the inquiry should be closed.

The news comes ahead of Coinbase’s upcoming addition to the S&P 500 index, potentially overshadowing what had been viewed as a major milestone for the industry. Shares fell 7.2% following the disclosure.

Coinbase has rejected a $20 million ransom demand from the attackers and is cooperating with law enforcement. It has also offered a $20 million reward for information leading to the identification of the hackers.

The firm is opening a new US-based support hub and taking further measures to strengthen its cybersecurity framework.

The cyberattack adds to broader concerns about digital asset platform vulnerabilities. In 2024, hacks have resulted in over $2.2 billion in stolen funds, according to Chainalysis. Bybit alone reported a $1.5 billion theft in February, the largest on record.

Coinbase is also facing a lawsuit filed in the Southern District of New York, alleging the company failed to protect personal data belonging to millions of current and former customers.

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Deepfake voice scams target US officials in phishing surge

Hackers are using deepfake voice and video technology to impersonate senior US government officials and high-profile tech figures in sophisticated phishing campaigns designed to steal sensitive data, the FBI has warned.

Since April, cybercriminals have been contacting current and former federal and state officials through fake voice messages and text messages claiming to be from trusted sources.

The scammers attempt to establish rapport and then direct victims to malicious websites to extract passwords and other private information.

The FBI cautions that if hackers compromise one official’s account, they may use that access to impersonate them further and target others in their network.

The agency urges individuals to verify identities, avoid unsolicited links, and enable multifactor authentication to protect sensitive accounts.

Separately, Polygon co-founder Sandeep Nailwal reported a deepfake scam in which bad actors impersonated him and colleagues via Zoom, urging crypto users to install malicious scripts. He described the attack as ‘horrifying’ and noted the difficulty of reporting such incidents to platforms like Telegram.

The FBI and cybersecurity experts recommend examining media for visual inconsistencies, avoiding software downloads during unverified calls, and never sharing credentials or wallet access unless certain of the source’s legitimacy.

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FBI warns against AI-powered text scams

The FBI has issued a fresh warning urging the public not to trust unsolicited texts or voice messages, even if they appear to come from senior officials. A new wave of AI-powered attacks is reportedly so convincing that traditional signs of fraud are almost impossible to spot.

These campaigns involve voice and text messages crafted with AI, mimicking the voices of known individuals and spoofing phone numbers of trusted contacts or organisations. US victims are lured into clicking malicious links, often under the impression that the messages are urgent or official.

The FBI advises users to verify all communications independently, avoid clicking links or downloading attachments from unknown sources, and listen for unnatural speech patterns or visual anomalies in videos and images.

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