The UK government has announced the launch of a Laboratory for AI Security Research (LASR), an initiative to protect against emerging AI-driven threats and bolster Britain’s cyber resilience. The lab, backed by an initial £8.22 million in government funding, will bring together experts from academia, industry, and government to address AI’s evolving challenges to national security.
Speaking at the NATO Cyber Defence Conference in London, the Chancellor of the Duchy of Lancaster emphasised that AI is revolutionising national security and noted that ‘[…]as we develop this technology, there’s a danger it could be weaponised against us. Our adversaries are exploring how to use AI on the physical and cyber battlefield’.
LASR will collaborate with leading institutions, including the Alan Turing Institute, Oxford University, Queen’s University Belfast, and Plexal, alongside government agencies such as GCHQ, the National Cyber Security Centre, and the MOD’s Defence Science and Technology Laboratory. Partnerships will extend to NATO allies and Five Eyes countries, fostering an international approach to AI security.
In addition to LASR, the government announced a £1 million incident response project to help allies respond more effectively to cyberattacks. This initiative will further enhance international cooperation in managing cyber incidents.
The official communication highlights that this announcement aligns with the government’s broader agenda, including the forthcoming Cyber Security and Resilience Bill (to be introduced to Parliament in 2025) and the designation of data centres as critical national infrastructure (CNI) to secure the UK’s position as a global leader in cybersecurity and AI innovation.
The US government is expected to reduce Intel Corp‘s preliminary $8.5 billion federal chips grant to less than $8 billion, according to a report by The New York Times. The decision reflects Intel’s recent $3 billion contract to produce chips for the Pentagon, unnamed sources said.
Earlier this year, the Biden administration announced nearly $20 billion in grants and loans for Intel to expand its semiconductor manufacturing capabilities. The funding, part of the 2022 CHIPS and Science Act, supports building two new factories in Arizona and modernising an existing one.
The CHIPS Act allocated $52.7 billion to bolster US semiconductor production, including $39 billion for subsidies and $11 billion for research and development, as part of a national push to strengthen domestic chip manufacturing and reduce reliance on foreign supply chains.
French IT giant Atos has entered discussions with the government for a potential €500 million ($524 million) acquisition of its advanced computing division. Known for its crucial role in securing communications for the French military and manufacturing supercomputer servers, Atos is restructuring to address its mounting debt. The government has prioritised retaining control over the company’s strategic technology assets to safeguard national interests.
The proposed deal includes an initial payment of €150 million upon signing, expected before the exclusivity period ends on May 31. The offer could rise to €625 million with performance-based earn-outs. French Finance Minister Antoine Armand emphasised the state’s duty to ensure the survival and development of industries critical to national sovereignty. Atos’ advanced computing and cybersecurity unit, employing 4,000 people and generating €900 million annually, is seen as a vital asset.
As part of its restructuring, Atos announced plans to sell its cybersecurity unit’s Critical Systems and Cyber Products. With this deal factored in, the company forecasts its financial leverage for 2027 to be between 1.8 and 2.1 times core earnings. Meanwhile, France‘s parliament is considering an amendment that could pave the way for Atos’ nationalisation, underscoring the government’s commitment to protecting key technologies.
Italy is ramping up its fight against cybercrime with a draft decree aimed at tackling unauthorised access to sensitive computer systems. The move follows high-profile breaches, including incidents involving state and financial databases, prompting urgent government action. The legislation, which will be discussed by the cabinet on 25 November 2024, focuses on systems critical to military, public safety, health, and civil protection.
The draft gives Italy’s chief anti-mafia prosecutor expanded authority to oversee investigations into cases of extortion linked to data breaches. This comes on the heels of several arrests tied to illicit access to state systems, with dozens more under investigation, including individuals connected to prominent figures like Leonardo Maria Del Vecchio.
Separately, authorities in Bari are probing a potential breach at Italy‘s largest bank, Intesa Sanpaolo, which may have compromised Prime Minister Giorgia Meloni’s account. These incidents underscore the urgency of the proposed crackdown as Italy seeks to safeguard its digital infrastructure.
US authorities have revealed a massive cyberattack on American telecommunications networks, describing it as the ‘worst telecom hack in our nation’s history.’ Linked to Chinese hackers, the breach targeted multiple telecom companies and allowed the interception of surveillance data meant for US law enforcement. According to a joint FBI and CISA statement, the hackers accessed sensitive call records and communications, particularly involving individuals in government and political roles.
The attack also raised alarms after reports suggested telephones belonging to Donald Trump, JD Vance, and other high-profile political figures were compromised. Senator Mark Warner, chairman of the Senate Intelligence Committee, warned that China’s long-term efforts to infiltrate global telecom systems pose a grave security risk. Hackers reportedly managed to listen to phone calls and read text messages, going beyond what the Biden administration has publicly acknowledged.
China has consistently denied allegations of hacking foreign systems, and its embassy in Washington declined to comment on the latest claims. Warner criticised the lack of sufficient safeguards, stating, “The barn door is still wide open,” as concerns over US telecom infrastructure security intensify.
As the US prepares for Donald Trump’s second term, China is significantly increasing its semiconductor imports from the US, anticipating potential sanctions. In October, China imported $1.11 billion worth of microchips, a 60% rise from the previous year, and has already imported $9.61 billion in the first ten months of 2024, marking a 42.5% year-on-year increase. This surge reflects China’s growing demand for US semiconductors, particularly CPU-based processors and chips for storage and signal amplification, which align with its AI ambitions.
Despite these imports, China faces hurdles in advancing its chip technology. US sanctions have crippled Huawei’s ability to develop competitive AI chips, with the company’s upcoming processors lagging years behind NVIDIA’s offerings. This setback is largely due to restrictions on access to advanced lithography equipment, such as ASML’s EUV tools, essential for creating cutting-edge chips.
Meanwhile, China has been ramping up its chip manufacturing efforts, investing $25 billion in equipment in the first half of 2024, surpassing spending by Korea, Taiwan, and the US. However, as one-third of global semiconductor demand, China’s position remains critical for the industry. The impact of Trump’s potential tech restrictions, whether broad or selective, will likely influence the global semiconductor market, requiring careful balancing of US production and Chinese demand.
US federal authorities have broken up a significant cryptocurrency-based money laundering operation tied to international drug cartels. Nine individuals have been indicted in Florida for conspiring to launder money and running an unlicensed money-transmitting business, following a multi-agency investigation.
The network, active between 2020 and 2023, reportedly moved illicit funds from the US to drug cartels in Mexico and Colombia. Participants allegedly used cryptocurrencies, including mixers and black-market exchanges, to obscure transactions. Some acted as couriers, transporting cash across US cities before converting it into crypto.
Cryptocurrencies have increasingly been exploited for laundering cartel funds, leveraging their global reach and transaction anonymity. Authorities noted a rise in such schemes using crypto exchanges and shell companies to disguise illegal activities.
This case adds to a growing list of crypto-related laundering incidents, including a 2021 case involving $4 million in cartel funds and other operations tied to major crypto platforms. Regulators worldwide are intensifying efforts to tackle these abuses, emphasising the need for stricter oversight.
South Korean police have confirmed that hackers linked to North Korea’s military intelligence agency were behind a 2019 Ethereum cryptocurrency theft valued at 58 billion won ($41.5 million at the time). Hackers infiltrated a crypto exchange and stole 342,000 Ethereum tokens, which are now worth over 1.4 trillion won ($1 billion).
The stolen funds were laundered through three hacker-controlled crypto exchanges and 51 other platforms, according to South Korea’s National Police Agency. While the exchange targeted was not officially named, South Korea-based Upbit had reported a similar transfer to an unidentified wallet during the incident. The investigation, conducted with the FBI, used IP address analysis and asset tracking to trace the theft to groups reportedly tied to North Korea’s Reconnaissance General Bureau.
This marks the first confirmed instance of North Korean hackers targeting a South Korean crypto exchange. Previously, a UN report linked North Korea to nearly $3.6 billion in crypto heists from 2017 to 2024. South Korean investigators recovered a small fraction of the stolen assets, equivalent to 600 million won, which were returned to the exchange. North Korea denies involvement in such activities despite mounting evidence to the contrary.
Snap Inc., the parent company of Snapchat, has filed a motion to dismiss a New Mexico lawsuit accusing it of enabling child sexual exploitation on its platform. The lawsuit, brought by Attorney General Raul Torrez in September, claims Snapchat exposed minors to abuse and failed to warn parents about sextortion risks. Snap refuted the allegations, calling them ‘patently false,’ and argued that the state’s decoy investigation misrepresented key facts.
The lawsuit stems from a broader push by US lawmakers to hold tech firms accountable for harm to minors. Investigators claimed a decoy account for a 14-year-old girl received explicit friend suggestions despite no user activity. Snap countered that the account actively sent friend requests, disputing the state’s findings.
Snap further argued that the lawsuit violates Section 230 of the 1996 Communications Decency Act, which shields platforms from liability for user-generated content. It also invoked the First Amendment, stating the company cannot be forced to provide warnings about subjective risks without clear guidelines.
Defending its safety efforts, Snap highlighted its increased investment in trust and safety teams and collaboration with law enforcement. The company said it remains committed to protecting users while contesting what it views as an unjustified legal challenge.
Former Binance CEO Changpeng Zhao has alerted the crypto community about a new exploit targeting Intel-based Mac users, which could expose their digital assets. Zhao urged users to immediately patch their systems to protect sensitive data, following the discovery of zero-day vulnerabilities on 19 November. These vulnerabilities also affect iPhones and iPads, prompting Apple to release emergency fixes.
The flaws, tracked as CVE-2024-44308 and CVE-2024-44309, allow hackers to exploit JavaScriptCore and WebKit components on macOS Sequoia. This could lead to cross-site scripting attacks, where attackers inject malicious code into trusted websites, enabling them to steal sensitive information and hijack user sessions.
Despite Apple’s strong security reputation, users have been at risk from several high-profile exploits this year. Previous attacks have included crypto-focused malware and vulnerabilities in Apple’s iMessage framework. With hackers exploiting these flaws, crypto users must stay vigilant and update their systems to safeguard their digital assets.
