UnitedHealth discloses potential theft of data from one-third of Americans

The Centres for Medicare and Medicaid Services have announced the discontinuation of a program designed to assist Medicare providers and suppliers impacted by disruptions at UnitedHealth’s technology division, Change Healthcare. 

Initiated in response to a hack at Change Healthcare on February 21st by threat actor ‘BlackCat’, the program will now cease accepting new applications as of July 12. It has distributed over $2.55 billion in expedited payments to 4,200 providers such as hospitals and $717.18 million to suppliers including doctors, non-physician practitioners and durable medical equipment suppliers, with a significant portion of these funds already recovered. Providers are now able to effectively submit claims to Medicare.

The cyber incident in February affected a key player in processing medical claims. The US Change Healthcare handles approximately half of all medical claims in the United States, serving about 900,000 physicians, 33,000 pharmacies, 5,500 hospitals, and 600 laboratories, adding to the growing cyber threat posed to the healthcare industry.

Mediabank faces legal action in Australia over massive data breach

Following the 2022 Mediabank’s cyber incident, the Office of the Australian Information Commissioner has initiated legal proceedings against the company, alleging the significant data breach impacted a vast number of customers, including 5.1 million Medibank customers, 2.8 million ahm customers, and 1.8 million international customers, totalling 9.7 million individuals. 

While Mediabank initially blamed a third party contractor and a ‘misconfigured firewall’ for the incident, a federal court case in Australia has revealed that the breach originated from an IT service desk operator at Medibank who stored multiple account credentials on his work computer which provided a gateway for a hacker to illicitly access Medibank’s systems. The hacker exploited this access for nearly two months and managed to extract a substantial amount of personal data, estimated at around 520GB.

The breach was aggravated by the absence of multi-factor authentication on Medibank’s Global Protect VPN, a security loophole that had been previously flagged in reports by KPMG and Datacom in 2020 and 2021. The Office of the Australian Information Commissioner has criticised Medibank for failing to promptly address these known security vulnerabilities. Legal action has been taken against Medibank in response to the breach. Moreover, the government has identified the alleged perpetrator as a Russian citizen named Aleksandr Gennadievich Ermakov and will be imposing sanctions against him under the new autonomous sanctions law. The incident stresses the critical importance of proactive risk mitigation strategies to safeguard sensitive customer information from malicious cyber threats.

Report uncovers hackers now use emojis to command malware

Researchers from the cybersecurity firm Volexity have uncovered a sophisticated cyber threat that uses the popular Discord messaging service for command and control (C2) purposes. That was discovered during a targeted cyber attack on the Indian government this year, where a malicious software named Disgomoji was deployed. The attack was attributed to a suspected Pakistani threat actor known as UTA0137. The group uses emojis for C2 communication on the Discord platform, showcasing a new covert approach to conduct espionage campaigns against Indian government entities.

The Disgomoji malware, tailored to target Linux systems, specifically the custom BOSS distribution used by the Indian government is highly sophisticated in its design and execution. Initial access to the targeted systems was believed to have been gained through phishing attacks, leveraging decoy documents as bait. Once infiltrated, the malware established dedicated channels within Discord servers, with each channel representing an individual victim. That setup allowed the threat actor to interact with each victim separately, enhancing the precision and effectiveness of the attack.

Upon activation, Disgomoji initiated a check-in process, transmitting crucial system information such as IP address, username, hostname, operating system details, and current working directory to the attacker. The malware exhibited persistence mechanisms which ensured its survival through system reboots and allowed it to maintain a covert presence within the compromised systems. Communication between the attacker and the malware was facilitated through an emoji-based protocol or in other words, with commands issued via emojis. For instance, as Disgomoji executes the command, it responds with a “⏰” emoji, and upon completion, it shows the “✅.”

Why does it matter?

The malware’s capabilities extended beyond basic communication, including advanced functionalities such as network scanning using tools like Nmap, network tunnelling through Chisel and Ligolo, and data exfiltration via file sharing services. Disgomoji also employed deceptive tactics, masquerading as a Firefox update to deceive victims into sharing sensitive information like passwords. 

Volexity’s attribution to a Pakistan-based threat actor was supported by various indicators, including Pakistani time zones in the malware sample, infrastructure links to known threat actors in Pakistan, the use of the Punjabi language, and the selection of targets aligned with Pakistan’s strategic interests. The detailed analysis stresses the evolving sophistication of cyber threats and the critical importance of robust cybersecurity measures to safeguard against such malicious activities.

FCC names Royal Tiger as first official AI robocall scammer gang

The US Federal Communications Commission (FCC) has identified Royal Tiger as the first official AI robocall scammer gang, marking a milestone in efforts to combat sophisticated cyber fraud. Royal Tiger has used advanced techniques like AI voice cloning to impersonate government agencies and financial institutions, deceiving millions of Americans through robocall scams.

These scams involve automated systems that mimic legitimate entities to trick individuals into divulging sensitive information or making fraudulent payments. Despite the FCC’s actions, experts warn that AI-driven scams will likely increase, posing significant challenges in protecting consumers from evolving tactics such as caller ID spoofing and persuasive social engineering.

While the FCC’s move aims to raise awareness and disrupt criminal operations, individuals are urged to remain vigilant. Tips include scepticism towards unsolicited calls, utilisation of call-blocking services, and verification of caller identities by contacting official numbers directly. Avoiding sharing personal information over the phone without confirmation of legitimacy is crucial to mitigating the risks posed by these scams.

Why does it matter?

As technology continues to evolve, coordinated efforts between regulators, companies, and the public are essential in staying ahead of AI-enabled fraud and ensuring robust consumer protection measures are in place. Vigilance and proactive reporting of suspicious activities remain key in safeguarding against the growing threat of AI-driven scams.

X bans over 230,000 accounts in India for violations

Between April 26 and May 25, Elon Musk’s X Corp banned 229,925 accounts in India, primarily for promoting child sexual exploitation and non-consensual nudity. Additionally, 967 accounts were removed for promoting terrorism, bringing the total to 230,892 banned accounts during this period. In compliance with the new IT Rules, 2021, X Corp’s monthly report noted receiving 17,580 user complaints in India. The company processed 76 grievances appealing account suspensions but upheld all suspensions after review.

The report also mentioned 31 general account-related inquiries. Most user complaints involved ban evasion (6,881), hateful conduct (3,763), sensitive adult content (3,205), and abuse/harassment (2,815). Previously, between March 26 and April 25, X banned 184,241 accounts in India and removed 1,303 for promoting terrorism.

Why does it matter?

India, with nearly 700 million internet users, has introduced new regulations for social media, streaming services, and digital news outlets. These rules mandate firms to enable traceability of encrypted messages, establish local offices with senior officials, comply with takedown requests within 24 hours, resolve grievances within 15 days, and publish a monthly compliance report detailing received requests and actions taken.

International Criminal Court investigates cyberattacks on Ukraine as possible war crimes

The International Criminal Court (ICC) is examining alleged Russian cyberattacks on Ukrainian civilian infrastructure as potential war crimes, marking the first instance of such an investigation by international prosecutors. According to sources, this could lead to arrest warrants if sufficient evidence is collected. The investigation focuses on cyberattacks that have endangered lives by disrupting power and water supplies, hindering emergency response communications, and disabling mobile data services used for air raid warnings.

Ukraine is actively gathering evidence to support the ICC investigation. Although the ICC prosecutor’s office has declined to comment on specific details, it has previously stated its jurisdiction over cybercrimes and its policy of not discussing ongoing cases. It should also be noted that since the invasion began, the ICC has issued four arrest warrants against senior Russian officials, including President Vladimir Putin, for war crimes related to the deportation of Ukrainian children to Russia. Russia, which is not a member of the ICC, has rejected these warrants as illegitimate. Despite not being a member state, Ukraine has granted the ICC jurisdiction over crimes committed within its borders.

In April, the ICC issued arrest warrants for two Russian commanders accused of crimes against humanity for their roles in attacks on civilian infrastructure. The Russian defense ministry did not respond to requests for comment. Sources indicated that at least four major attacks on energy infrastructure are being investigated.

Why does it matter?

The ICC case could set a significant precedent in international law. The Geneva Conventions prohibit attacks on civilian objects, but there is no universally accepted definition of cyber war crimes. The Tallinn Manual, a 2017 handbook on the application of international law to cyberwarfare, addresses this issue, but experts remain divided on whether data can be considered an ‘object’ under international humanitarian law and whether its destruction can be classified as a war crime. Professor Michael Schmitt of the University of Reading, who leads the Tallinn Manual initiative, emphasised the importance of the ICC’s potential ruling on this issue. He argued that the cyberattack on Kyivstar could be considered a war crime due to its foreseeable consequences for human safety.

Cisco to open cybersecurity centre in Taiwan

Cisco announced plans on Monday to establish a cybersecurity centre in Taiwan, collaborating with the government to bolster the workforce in this critical sector. The initiative comes as part of Cisco’s Taiwan Digital Acceleration Plan 3.0, aimed at addressing the global talent shortage in cybersecurity and enhancing the island’s digital infrastructure.

Taiwan, a democratically governed territory claimed by China, has faced numerous cyberattacks attributed to Beijing, targeting government officials and tech firms. Although China denies these accusations, the frequency and sophistication of such attacks have prompted significant concern. Cisco’s initiative includes partnering with tech associations to develop a security centre in Taiwan, focusing on improving threat intelligence and cyber readiness.

Guy Diedrich, Cisco’s global innovation officer, emphasised the company’s commitment to Taiwan, highlighting the flexible nature of the digital acceleration program, which encompasses areas such as AI in transport and sustainability operations at Kaohsiung port. While Diedrich did not disclose specific investment amounts, he affirmed that the program allows ongoing investment opportunities.

The launch event, attended by Taiwan’s Vice President Hsiao Bi-khim, underscored the strong partnership between Cisco and Taiwan. Vice President Hsiao expressed gratitude for Cisco’s sustained support and looked forward to potential future investments under the program.

European groups urge fairness in EU cybersecurity label for Big Tech

A proposed cybersecurity certification scheme (EUCS) for cloud services has raised concerns among 26 industry groups across Europe, who caution against potential discrimination towards major US tech firms like Amazon, Alphabet’s Google, and Microsoft. The European Commission, EU cybersecurity agency ENISA, and EU countries are set to discuss the scheme, which has seen multiple revisions since its draft release in 2020. The EUCS aims to help governments and businesses select secure and reliable cloud vendors, a critical consideration in the rapidly growing global cloud computing industry.

The latest version of the scheme, updated in March, removed stringent sovereignty requirements that would have forced US tech giants to form joint ventures or collaborate with EU-based companies to handle data within the bloc, a criterion for earning the highest EU cybersecurity label. In a joint letter, the industry groups argued for a non-discriminatory EUCS that fosters the free movement of cloud services across Europe, aligning with industry best practices and supporting Europe’s digital goals and security resilience.

The signatories, which include various chambers of commerce and industry associations from several European countries, emphasised the importance of diverse and resilient cloud technologies for their members to compete globally. They welcomed the removal of ownership controls and specific data protection requirements, arguing that these changes would ensure cloud security improvements without discriminating against non-EU companies.

EU cloud vendors like Deutsche Telekom, Orange, and Airbus have advocated for sovereignty requirements, fearing non-EU government access to European data under foreign laws. However, the industry groups contend that the inclusive approach of the revised EUCS will better serve Europe’s digital and security needs while promoting a competitive market environment.

IOC implements AI for athlete safety at Paris Olympics

The International Olympic Committee (IOC) will deploy AI to combat social media abuse directed at 15,000 athletes and officials during the Paris Olympics next month, IOC President Thomas Bach announced on Friday. With the Games set to begin on 26 July, more than 10,500 athletes will compete across 32 sports, generating over half a billion social media engagements.

The AI system aims to safeguard athletes by monitoring and automatically erasing abusive posts to provide extensive protection against cyber abuse. That initiative comes amid ongoing global conflicts, including the wars in Ukraine and Gaza, which have already led to social media abuse cases.
Russian and Belarusian athletes, who will compete as neutral athletes without their national flags, are included in the protective measures. The IOC did not specify the level of access athletes would need to grant for the AI monitoring.

Despite recent political developments in France, including a snap parliamentary election called by President Emmanuel Macron, Bach assured that preparations for the Olympics remain on track. He emphasised that both the government and opposition are determined to ensure that France presents itself well during the Games.

Microsoft delays AI ‘Recall’ feature amid privacy concerns

Microsoft has decided to delay the rollout of its AI-powered ‘Recall’ feature, which tracks and stores computer usage histories, citing privacy concerns. Initially planned for launch with new computers next week, Recall will now undergo a preview phase within its Windows Insider Program (WIP) in the coming weeks rather than being widely available to Copilot+ PC users starting 18 June.

The Recall feature, designed to record everything from web browsing to voice chats for later retrieval, aims to help users remember past activities even months later. Microsoft emphasised that the delay is part of their commitment to ensuring a trusted and secure customer experience, seeking additional feedback before a broader release.

Copilot+ PCs, introduced in May, integrate AI capabilities and were set to include Recall as a key feature. The WIP, which allows enthusiastic users to test upcoming Windows features, will play a crucial role in gathering feedback on Recall before its eventual wider availability.

Privacy concerns surfaced swiftly after Recall’s announcement, with critics suggesting potential misuse for surveillance purposes. Elon Musk likened the feature to a scenario from the dystopian TV series ‘Black Mirror’, reflecting broader anxieties about the implications of pervasive technology on personal privacy and security.