Cybercrime

How digital twins are being weaponised in crypto scams

Digital twins are virtual models of real-world objects, systems, or processes. They enable real-time simulations, monitoring, and predictions, helping industries like healthcare and manufacturing optimise resources. In the crypto world, cybercriminals have found a way to exploit this technology for fraudulent activities.

Scammers create synthetic identities by gathering personal data from various sources. These digital twins are used to impersonate influencers or executives, promoting fake investment schemes or stealing funds. The unregulated nature of crypto platforms makes it easier for criminals to exploit users.

Real-world scams are already happening. Deepfake CEO videos have tricked executives into transferring funds under false pretences. Counterfeit crypto platforms have also stolen sensitive information from users. These scams highlight the risks of AI-powered digital twins in the crypto space.

Blockchain offers solutions to combat these frauds. Decentralised identities (DID) and NFT identity markers can verify interactions. Blockchain’s immutable audit trails and smart contracts can help secure transactions and protect users from digital twin scams.

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

Trump signals new extension for TikTok divestment deadline

President Donald Trump indicated he would extend the deadline set for the Chinese-owned company ByteDance to sell TikTok’s US operations if negotiations remain unfinished by 19 June.

The popular short-video app, used by around 170 million Americans, played a significant role in Trump’s appeal to younger voters during his 2024 election campaign. Trump described TikTok positively, hinting at protective measures rather than outright prohibition.

Originally mandated by Congress, the TikTok ban was supposed to be enforced starting on 19 January. Trump, however, has twice extended this deadline amid ongoing negotiations.

A potential agreement to spin off TikTok’s US operations into a new, US-majority-owned firm was suspended after China objected, a reaction spurred by Trump’s substantial tariffs on Chinese goods.

Democratic senators have challenged Trump’s authority to postpone the deadline further, arguing that the proposed spin-off arrangement does not satisfy legal conditions outlined in the original legislation.

Insiders indicate negotiations continue behind the scenes, though a resolution remains dependent on settling broader trade conflicts between the US and China.

Trump remains firm about maintaining high tariffs on China, now at 145%, which he insists significantly impacts the Chinese economy.

Yet, he has left the door open to eventually lowering these tariffs within a more comprehensive trade agreement, acknowledging China’s strong desire to resume business with the U.S.

Despite multiple extensions, the fate of TikTok’s US operations remains uncertain, as political and economic factors continue shaping negotiations. Trump’s willingness to extend deadlines reflects broader geopolitical dynamics between Washington and Beijing, linking digital platform regulation closely with international trade policy.

New Zealand central bank warns of AI risks

The Reserve Bank of New Zealand has warned that the swift uptake of AI in the financial sector could pose a threat to financial stability.

A report released on Monday highlighted how errors in AI systems, data privacy breaches and potential market distortions might magnify existing vulnerabilities instead of simply streamlining operations.

The central bank also expressed concern over the increasing dependence on a handful of third-party AI providers, which could lead to market concentration instead of healthy competition.

A reliance like this, it said, could create new avenues for systemic risk and make the financial system more susceptible to cyber-attacks.

Despite the caution, the report acknowledged that AI is bringing tangible advantages, such as greater modelling accuracy, improved risk management and increased productivity. It also noted that AI could help strengthen cyber resilience rather than weaken it.

The analysis was published just ahead of the central bank’s twice-yearly Financial Stability Report, scheduled for release on Wednesday.

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

Cyber incident disrupts services at Marks & Spencer

Marks & Spencer has confirmed that a cyberattack has disrupted food availability in some stores and forced the temporary shutdown of online services. The company has not officially confirmed the nature of the breach, but cybersecurity experts suspect a ransomware attack.

The retailer paused clothing and home orders on its website and app after issues arose over the Easter weekend, affecting contactless payments and click-and-collect systems. M&S said it took some systems offline as a precautionary measure.

Reports have linked the incident to the hacking group Scattered Spider, although M&S has declined to comment further or provide a timeline for the resumption of online orders. The disruption has already led to minor product shortages and analysts anticipate a short-term hit to profits.

Still, M&S’s food division had been performing strongly, with grocery spending rising 14.4% year-on-year, according to Kantar. The retailer, which operates around 1,000 UK stores, earns about one-third of its non-food sales online. Shares dropped earlier in the week but closed Tuesday slightly up.

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

France accuses Russia of cyberattacks on Olympic and election targets

France has publicly accused Russia’s military intelligence agency of launching cyberattacks against key French institutions, including the 2017 presidential campaign of Emmanuel Macron and organisations tied to the Paris 2024 Olympics.

The allegations were presented by Foreign Minister Jean-Noël Barrot at the UN Security Council, where he condemned the attacks as violations of international norms. French authorities linked the operations to APT28, a well-known Russian hacking group connected to the GRU.

The group also allegedly orchestrated the 2015 cyberattack on TV5 Monde and attempted to manipulate voters during the 2017 French election by leaking thousands of campaign documents. A rise in attacks has been noted ahead of major events like the Olympics and future elections.

France’s national cybersecurity agency recorded a 15% increase in Russia-linked attacks in 2024, targeting ministries, defence firms, and cultural venues. French officials warn the hacks aim to destabilise society and erode public trust.

France plans closer cooperation with Poland and pledged to counter Russia’s cyber operations with all available means.

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

4chan returns after major cyberattack

After suffering what it called a ‘catastrophic’ cyberattack earlier this month, controversial image board 4chan has returned online, admitting its systems were breached through outdated software.

The attacker, reportedly using a UK-based IP address, gained entry by uploading a malicious PDF, allowing access to 4chan’s database and administrative dashboard. The intruder exfiltrated source code and sensitive data before vandalising the site, which led to its temporary shutdown on 14 April.

Although 4chan avoided directly naming the software vulnerability, it indirectly confirmed suspicions that a severely outdated backend—possibly an old version of PHP—was at fault. The site confessed that slow progress in updating its infrastructure resulted from a chronic lack of funds and technical support.

It blamed years of financial instability on advertisers, payment processors, and providers pulling away under external pressure, leaving it dependent on second-hand hardware and a stretched, largely volunteer development team.

Despite purchasing new servers in mid-2024, the transition was slow and incomplete, meaning key services still ran on legacy equipment when the breach occurred. Following the attack, 4chan replaced the compromised server and implemented necessary software updates.

PDF uploads have been suspended, and the Flash board permanently closed due to the difficulty in preventing similar exploits through .swf files.

Now relying on volunteer tech workers to support its recovery efforts, the site insists it won’t be shut down. ‘4chan is back,’ it declared, claiming no other site could replace its unique community, despite long-standing criticism over its content and lax moderation.

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

FBI warns users not to click on suspicious messages

Cybersecurity experts are raising fresh alarms following an FBI warning that clicking on a single link could lead to disaster.

With cyberattacks becoming more sophisticated, hackers now need just 60 seconds to compromise a victim’s device after launching an attack.

Techniques range from impersonating trusted brands like Google to deploying advanced malware and using AI tools to scale attacks even further.

The FBI has revealed that internet crimes caused $16 billion in losses during 2024 alone, with more than 850,000 complaints recorded.

Criminals exploit emotional triggers like fear and urgency in phishing emails, often sent from what appear to be genuine business accounts. A single click could expose sensitive data, install malware automatically, or hand attackers access to personal accounts by stealing browser session cookies.

To make matters worse, many attacks now originate from smartphone farms targeting both Android and iPhone users. Given the evolving threat landscape, the FBI has urged everyone to be extremely cautious.

Their key advice is clear: do not click on anything received via unsolicited emails or text messages, no matter how legitimate it might appear.

Remaining vigilant, avoiding interaction with suspicious messages, and reporting any potential threats are critical steps in combating the growing tide of cybercrime.

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

Cybercriminals target Gmail accounts in sophisticated new attack

Gmail users are facing a serious new threat that could lead to their accounts being hijacked by cybercriminals.

Experts at Malwarebytes have issued an urgent warning about a sophisticated scam that is bypassing Gmail’s usually reliable spam filters, putting billions of accounts at risk.

The scam was first noticed by Nick Johnson, a developer with the Ethereum Name Service, who received an official-looking email supposedly from Google.

Although it appeared genuine and even passed all verification checks, the link inside redirected users to a fraudulent site hosted via Google’s own website creation platform. Cybercriminals exploited the fact that anyone can create pages on sites.google.com to make the scam look credible.

Google has acknowledged the attack, linked to the Rockfoils threat group, and confirmed that new protections are being rolled out.

While measures are underway to address the vulnerability, security experts strongly advise Gmail users to remain cautious and follow essential safety practices to avoid falling victim.

Simple actions, such as avoiding links in unsolicited emails, double-checking email headers, and refusing to use Google credentials to sign into other services, can significantly reduce the risk. Staying vigilant is now more important than ever to protect personal data and online security.

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

SK Telecom begins SIM card replacement after data breach

South Korea’s largest carrier, SK Telecom, began replacing SIM cards for its 23 million customers on Monday following a serious data breach.

Instead of revealing the full extent of the damage or the perpetrators, the company has apologised and offered free USIM chip replacements at 2,600 stores nationwide, urging users to either change their chips or enrol in an information protection service.

The breach, caused by malicious code, compromised personal information and prompted a government-led review of South Korea’s data protection systems.

However, SK Telecom has secured less than five percent of the USIM chips required, planning to procure an additional five million by the end of May instead of having enough stock ready for immediate replacement.

Frustrated customers, like 30-year-old Jang waiting in line in Seoul, criticised the company for failing to be transparent about the amount of data leaked and the number of users affected.

Instead of providing clear answers, SK Telecom has focused on encouraging users to seek chip replacements or protective measures.

South Korea, often regarded as one of the most connected countries globally, has faced repeated cyberattacks, many attributed to North Korea.

Just last year, police confirmed that North Korean hackers had stolen over a gigabyte of sensitive financial data from a South Korean court system over a two-year span.

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

Lazarus Group uses fake firms to spread malware to the crypto industry

North Korean hackers, believed to be part of the Lazarus Group, have created fake US businesses to target cryptocurrency developers. According to cybersecurity firm Silent Push, two companies, Blocknovas LLC and Softglide LLC, were set up to infect victims with malicious software.

These companies were established using false information in New York and New Mexico, violating international sanctions.

The attacks involved job offers that led to ‘sophisticated malware deployments,’ aimed at compromising cryptocurrency wallets and stealing credentials. The FBI has since seized the Blocknovas website, which had been used to deceive individuals and distribute malware.

Silent Push noted that multiple victims had fallen victim to the scam, with Blocknovas being the most active front in the campaign.

The phishing operation is just one example of North Korea’s ongoing cyber activities. The Lazarus Group has previously been responsible for high-profile hacks, including the $1.4 billion attack on crypto exchange Bybit in February.

The FBI continues to focus on imposing risks and consequences for those facilitating these cyber operations.

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