Cybersecurity

Hacktivists target Iran’s Bank Sepah in major cyberattack

A cyberattack has reportedly hit Iran’s Bank Sepah by the hacktivist group Predatory Sparrow. The group announced on Tuesday that it had ‘destroyed all data’ at the bank, which is closely linked to the Islamic Revolutionary Guard Corps (IRGC) and Iran’s military.

Several Bank Sepah branches were closed, and customers reported being unable to access their accounts.
The attack coincided with broader banking disruptions in Iran, affecting services at Kosar and Ansar banks, both associated with military entities and subject to US sanctions.

Authorities in Iran have yet to publicly acknowledge the attack, though the IRGC-linked Fars news agency claimed the issues would be resolved in a few hours.

Predatory Sparrow said it targeted Bank Sepah for its alleged role in financing Iran’s missile and nuclear programmes and in helping the country circumvent international sanctions.

The group has previously claimed responsibility for attacks on Iranian steel plants and fuel stations and is widely believed by Tehran to receive foreign support, particularly from Israel.

Bank Sepah, one of the country’s oldest financial institutions, operates around 1,800 branches within Iran and maintains offices across Europe. The United States sanctioned the bank in 2019 following Iran’s withdrawal from the 2015 nuclear deal.

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Indonesia’s cyber push faces capacity challenges in the provinces

Indonesia is decentralising its approach to cybersecurity, launching eight regional Cyber Crime Directorates within provincial police forces in September 2024.

These directorates, located in areas including Jakarta, East Java, Bali, and Papua, aim to boost local responses to increasingly complex cyber threats—from data breaches and financial fraud to hacktivism and disinformation.

The move marks a shift from Jakarta-led cybersecurity efforts toward a more distributed model, aligning with Indonesia’s broader decentralisation goals. It reflects the state’s recognition that digital threats are not only national in scope, but deeply rooted in local contexts.

However, experts warn that regionalising cyber governance comes with significant challenges. Provincial police commands often lack specialised personnel, digital forensics capabilities, and adaptive institutional structures.

Many still rely on rotations from central agencies or basic training programs—insufficient for dealing with fast-moving and technically advanced cyberattacks.

Moreover, the culture of rigid hierarchy and limited cross-agency collaboration may further hinder rapid response and innovation at the local level. Without reforms to increase flexibility, autonomy, and inter-agency cooperation, these new directorates risk becoming symbolic rather than operationally impactful.

The inclusion of provinces like Central Sulawesi and Papua also reveals a political dimension. These regions are historically security-sensitive, and the presence of cyber directorates could serve both policing and state surveillance functions, raising concerns over the balance between security and civil liberties.

To be effective, the initiative requires more than administrative expansion. It demands sustained investment in talent development, modern infrastructure, and trusted partnerships with local stakeholders—including the private sector and academia.

If these issues are not addressed, Indonesia’s push to regionalise cybersecurity may reinforce old hierarchies rather than build meaningful local capacity. Stronger, smarter institutions—not just new offices—will determine whether Indonesia can secure its digital future.

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Graphite spyware used against European reporters, experts warn

A new surveillance scandal has emerged in Europe as forensic evidence confirms that an Israeli spyware firm Paragon used its Graphite tool to target journalists through zero-click attacks on iOS devices. The attacks, requiring no user interaction, exposed sensitive communications and location data.

Citizen Lab and reports from Schneier on Security identified the spyware on multiple journalists’ devices on April 29, 2025. The findings mark the first confirmed use of Paragon’s spyware against members of the press, raising alarms over digital privacy and press freedom.

Backed by US investors, Paragon has operated outside of Israel under claims of aiding national security. But its spyware is now at the center of a widening controversy, particularly in Italy, where the government recently ended its contract with the company after two journalists were targeted.

Experts warn that such attacks undermine the confidentiality crucial to journalism and could erode democratic safeguards. Even Apple’s secure devices proved vulnerable, according to Bleeping Computer, highlighting the advanced nature of Graphite.

The incident has sparked calls for tighter international regulation of spyware firms. Without oversight, critics argue, tools meant for fighting crime risk being used to silence dissent and target civil society.

The Paragon case underscores the urgent need for transparency, accountability, and stronger protections in an age of powerful, invisible surveillance tools.

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Smart machines, dark intentions: UN urges global action on AI threats

The United Nations has warned that terrorists could seize control of AI-powered vehicles to launch devastating attacks in public spaces. A new report outlines how extremists might exploit autonomous cars and drones to bypass traditional defences.

AI is also feared to be a tool for facial recognition targeting and mass ‘swarm’ assaults using aerial devices. Experts suggest that key parts of modern infrastructure could be turned against the public if hacked.

Britain’s updated counter-terrorism strategy now reflects these growing concerns, including the risk of AI-generated propaganda and detailed attack planning. The UN has called for immediate global cooperation to limit how such technologies can be misused.

Security officials maintain that AI also offers valuable tools in the fight against extremism, enabling quicker intelligence processing and real-time threat identification. Nonetheless, authorities have been urged to prepare for worst-case scenarios involving AI-directed violence.

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New cyberattack method poses major threat to smart grids, study finds

A new study published in ‘Engineering’ highlights a growing cybersecurity threat to smart grids as they become more complex due to increased integration of distributed energy sources.

The research, conducted by Zengji Liu, Mengge Liu, Qi Wang, and Yi Tang, focuses on a sophisticated form of cyberattack known as a false data injection attack (FDIA) that targets data-driven algorithms used in smart grid operations.

As modern power systems adopt technologies like battery storage and solar panels, they rely more heavily on algorithms to manage energy distribution and grid stability. However, these algorithms can be exploited.

The study introduces a novel black-box FDIA method that injects false data directly at the measurement modules of distributed power supplies, using generative adversarial networks (GANs) to produce stealthy attack vectors.

What makes this method particularly dangerous is that it doesn’t require detailed knowledge of the grid’s internal workings, making it more practical and harder to detect in real-world scenarios.

The researchers also proposed an approach to estimate controller and filter parameters in distributed energy systems, making it easier to launch these attacks.

To test the method, the team simulated attacks on the New England 39-bus system, specifically targeting a deep learning model used for transient stability prediction. Results showed a dramatic drop in accuracy—from 98.75% to 56%—after the attack.

The attack also proved effective across multiple neural network models and on larger grid systems, such as IEEE’s 118-bus and 145-bus networks.

These findings underscore the urgent need for better cybersecurity defenses in the evolving smart grid landscape. As systems grow more complex and reliant on AI-driven management, developing robust protection against FDIA threats will be critical.

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Armenia plans major AI hub with NVIDIA and Firebird

Armenia has unveiled plans to develop a $500mn AI supercomputing hub in partnership with US tech leader NVIDIA, AI cloud firm Firebird, and local telecoms group Team.

Announced at the Viva Technology conference in Paris, the initiative marks the largest tech investment ever seen in the South Caucasus.

Due to open in 2026, the facility will house thousands of NVIDIA’s Blackwell GPUs and offer more than 100 megawatts of scalable computing power. Designed to advance AI research, training and entrepreneurship, the hub aims to position Armenia as a leading player in global AI development.

Prime Minister Nikol Pashinyan described the project as the ‘Stargate of Armenia’, underscoring its potential to transform the national tech sector.

Firebird CEO Razmig Hovaghimian said the hub would help develop local talent and attract international attention, while the Afeyan Foundation, led by Noubar Afeyan, is set to come on board as a founding investor.

Instead of limiting its role to funding, the Armenian government will also provide land, tax breaks and simplified regulation to support the project, strengthening its push toward a competitive digital economy.

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Amazon launches AU$ 20 bn investment in Australian solar-powered data centres

Amazon will invest AU$ 20 billion to expand its data centre infrastructure in Australia, using solar and wind power instead of traditional energy sources.

The plan includes power purchase agreements with three utility-scale solar plants developed by European Energy, one of which—Mokoan Solar Park in Victoria—is already operational. The other two projects, Winton North and Bullyard Solar Parks, are expected to lift total solar capacity to 333MW.

The investment supports Australia’s aim to enhance its cloud and AI capabilities. Amazon’s commitment includes purchasing over 170MW of power from these projects, contributing to both data centre growth and the country’s renewable energy transition.

According to the International Energy Agency, electricity demand from data centres is expected to more than double by 2030, driven by AI.

Amazon Web Services CEO Matt Garman said the move positions Australia to benefit from AI’s economic potential. The company, already active in solar projects across New South Wales, Queensland and Victoria, continues to prioritise renewables to decarbonise operations and meet surging energy needs.

Instead of pursuing growth through conventional means, Amazon’s focus on clean energy could set a precedent for other tech giants expanding in the region.

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Quantum computing threatens Bitcoin: Experts debate timeline

Recent breakthroughs in quantum computing have revived fears about the long-term security of Bitcoin (BTC).

With IBM aiming to release the first fault-tolerant quantum computer, the IBM Quantum Starling, by 2029, experts are increasingly concerned that such advancements could undermine Bitcoin’s cryptographic backbone.

Bitcoin currently relies on elliptic curve cryptography (ECC) and the SHA-256 hashing algorithm to secure wallets and transactions. However, both are potentially vulnerable to Shor’s algorithm, which a sufficiently powerful quantum computer could exploit.

Google quantum researcher Craig Gidney warned in May 2025 that quantum resources required to break RSA encryption had been significantly overestimated. Although Bitcoin uses ECC, not RSA, Gidney’s research hinted at a threat window between 2030 and 2035 for crypto systems.

Opinions on the timeline vary. Adam Back, Blockstream CEO and early Bitcoin advocate, believes a quantum threat is still at least two decades away. However, he admitted that future progress could force users to migrate coins to quantum-safe wallets—potentially even Satoshi Nakamoto’s dormant holdings.

Others are more alarmed. David Carvalho, CEO of Naoris Protocol, claimed in a June 2025 op-ed that Bitcoin could be cracked within five years, pointing to emerging technologies like Microsoft’s Majorana chip. He estimated that nearly 30% of BTC is stored in quantum-vulnerable addresses.

‘Just one breach could destroy trust in the entire ecosystem,’ Carvalho warned, noting that BlackRock has already acknowledged the quantum risk in its Bitcoin ETF filings.

Echoing this urgency, billionaire investor Chamath Palihapitiya said in late 2024 that SHA-256 could be broken within two to five years if companies scale quantum chips like Google’s 105-qubit Willow. He urged the crypto industry to start updating encryption protocols before it’s too late.

While truly fault-tolerant quantum machines capable of breaking Bitcoin are not yet available, the accelerating pace of research suggests that preparing for a quantum future is no longer optional—it’s a necessity.

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Cyberattack on Nova Scotia Power exposes sensitive data of 280,000 customers

Canada’s top cyber-defence official has spoken out following the ransomware attack that compromised the personal data of 280,000 Nova Scotia Power customers.

The breach, which occurred on 19 March but went undetected until 25 April, affected over half of the utility’s customer base. Stolen data included names, addresses, birthdates, driver’s licences, social insurance numbers, and banking details.

Rajiv Gupta, head of the Canadian Centre for Cyber Security, confirmed that Nova Scotia Power had contacted the agency following the incident.

While he refrained from discussing operational details or attributing blame, he highlighted the rising frequency of ransomware attacks against critical infrastructure across Canada.

He explained how criminal groups use double extortion tactics — stealing data and locking systems — to pressure organisations into paying ransoms, often without guaranteeing system restoration or data confidentiality.

Although the utility declined to pay the ransom, the fallout has led to a wave of scrutiny. Gupta warned that interconnectivity and integrating legacy systems with internet-facing platforms have increased vulnerability.

He urged utilities and other infrastructure operators to build defences based on worst-case scenarios and to adopt recommended cyber hygiene practices and the Centre’s ransomware playbook.

In response to the breach, the Nova Scotia Energy Board has approved a $1.8 million investment in cybersecurity upgrades.

The Canadian cyber agency, although lacking regulatory authority, continues to provide support and share lessons from such incidents with other organisations to raise national resilience.

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Taiwan tightens rules on chip shipments to China

Taiwan has officially banned the export of chips and chiplets to China’s Huawei and SMIC, joining the US in tightening restrictions on advanced semiconductor transfers.

The decision follows reports that TSMC, the world’s largest contract chipmaker, was unknowingly misled into supplying chiplets used in Huawei’s Ascend 910B AI accelerator. The US Commerce Department had reportedly considered a fine of over $1 billion against TSMC for that incident.

Taiwan’s new rules aim to prevent further breaches by requiring export permits for any transactions with Huawei or SMIC.

The distinction between chips and chiplets is key to the case. Traditional chips are built as single-die monoliths using the same process node, while chiplets are modular and can combine various specialised components, such as CPU or AI cores.

Huawei allegedly used shell companies to acquire chiplets from TSMC, bypassing existing US restrictions. If TSMC had known the true customer, it likely would have withheld the order. Taiwan’s new export controls are designed to ensure stricter oversight of future transactions and prevent repeat deceptions.

The broader geopolitical stakes are clear. Taiwan views the transfer of advanced chips to China as a national security threat, given Beijing’s ambitions to reunify with Taiwan and the potential militarisation of high-end semiconductors.

With Huawei claiming its processors are nearly on par with Western chips—though analysts argue they lag two to three generations behind—the export ban could further isolate China’s chipmakers.

Speculation persists that Taiwan’s move was partly influenced by negotiations with the US to avoid the proposed fine on TSMC, bringing both countries into closer alignment on chip sanctions.

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