Cybersecurity

Surge in cyberattacks targets US utilities

Cyberattacks targeting US utilities surged nearly 70% this year, according to data from Check Point Research. The energy sector is particularly vulnerable, with outdated software systems making utilities easier targets. Despite the spike in incidents, none of the attacks have yet caused severe damage, but experts warn that a coordinated effort could be disastrous, affecting essential services and resulting in major financial losses.

Check Point data showed an average of 1,162 cyberattacks through August, compared to 689 in 2023. These figures highlight the increasing risks as the US power grid rapidly expands to meet higher energy demand, particularly from new sectors such as AI data centres. Experts say the grid’s rapid growth creates more potential entry points for attackers.

Outdated Internet of Things (IoT) and Incident Command Systems (ICS) used by many utilities are not as secure as other industries’ advanced software, putting critical infrastructure at heightened risk. Regulations like NERC’s Critical Infrastructure Protection provide only a basic level of security, which some experts argue is insufficient given the growing threats.

The financial impact of cyber breaches in the energy sector has been significant. In 2022, IBM reported the average cost of a data breach in the sector reached $4.72 million. With the 2024 US election approaching, cybersecurity experts expect an even greater surge in cyberattacks on essential infrastructure.

AI giant OpenAI pursues $150 billion valuation boost

OpenAI is reportedly in talks to secure $6.5 billion in funding, aiming for a $150 billion valuation. Such a move would significantly boost its position among the world’s top startups, following an earlier $86 billion valuation this year.

Led by CEO Sam Altman and backed by Microsoft, OpenAI’s success with the ChatGPT chatbot has driven its rapid rise. The firm has revived Silicon Valley’s interest in AI, further solidifying its position. A significant portion of the new funding may come in the form of a revolving credit facility, adding $5 billion in debt from banks.

The capital injection will help OpenAI remain a private company, avoiding the regulatory challenges and stock market volatility that often come with public listings. Many high-profile startups are choosing to stay private for longer, bolstered by private equity funding.

Some investors, however, may push for liquidity through a public offering or company sale. Meanwhile, OpenAI has been added to Forge Global’s prestigious list of “Private Magnificent Seven” startups, further highlighting its dominance in the AI sector.

Cyber threats soar: BT identifies 2,000 attacks per second

BT has reported detecting 2,000 potential cyberattacks on its network every second. The rise is attributed to criminals deploying disposable ‘bots’ to bypass existing security measures.

In July, digital surveillance activity by hackers using malicious scanning bots surged by 1,200% compared to the previous year. The telecom giant revealed that these attacks are targeting a wide range of sectors, including retail, education, hospitality, defence, and financial services.

Tris Morgan, BT’s managing director of security, stated that hackers are probing connected devices every 90 seconds in their attempts to breach systems. However, this reflects a significant escalation in cyber threats.

At its Secure Tomorrow cybersecurity event, BT showcased its advanced quantum secure communications and AI-driven cyber defence technologies.

DoT and TRAI to enhance telecom services with new measures

The Department of Telecommunications (DoT) and the Telecom Regulatory Authority of India (TRAI) are taking significant steps to enhance the security and quality of telecom services. To combat spam and cyber fraud, TRAI has implemented measures to disconnect and blacklist entities involved in bulk spam operations, resulting in the removal of over 3.5 lakh spam numbers and the blacklisting of 50 entities.

Additionally, the DoT’s Sanchar Saathi platform allows citizens of India to report suspicious activity, leading to the disconnection of over one crore fraudulent connections and the blocking of 2.27 lakh handsets involved in cybercrime. Concurrently, TRAI has updated its Quality of Service (QoS) regulations to enforce stricter benchmarks for network performance metrics such as call drop rates, packet drop rates, and latency. Effective 1 October 2024, these regulations will introduce monthly monitoring from April 2025, enhancing oversight and accountability to improve network quality.

DoT and TRAI are also implementing proactive measures to tackle the issue of unregistered telemarketers. For that, TRAI is considering immediate service suspensions for telemarketers not registered, based on a predefined threshold of complaints, and is working on proactive detection of suspected spammers.

These initiatives are part of a broader strategy to create a more secure and user-friendly telecom environment. Through these collaborative efforts, the DoT and TRAI ensure ongoing enhancements in telecom services, infrastructure, and quality assurance, aiming to provide users with a more reliable and customer-centric experience.

Data centres now deemed critical national infrastructure in the UK

Great Britain has recently designated its data centres as ‘critical national infrastructure,’ a move designed to bolster their protection against cyber threats. This new classification aligns data centres with other essential services, such as water and energy, highlighting their importance in maintaining the country’s communications and economy.

The announcement comes amidst significant investment in the sector. This includes a £3.75 billion plan by DC01UK to build Europe’s largest data centre in Hertfordshire and an £8 billion commitment by Amazon Web Services for UK operations over the next five years. These investments underscore the increasing importance of securing digital infrastructure.

UK technology minister Peter Kyle emphasised that the new designation would improve collaboration between the government and data centre operators. This collaboration aims to prevent disruptions and protect against cybercriminals. This move follows recent incidents such as the CrowdStrike outage in July, which revealed vulnerabilities in digital infrastructure and underscored the need for increased security.

Global AI military blueprint receives support, but China declines

Around 60 nations, including the United States, endorsed a ‘blueprint for action’ on Tuesday to regulate the responsible use of AI in military settings. The blueprint was unveiled at the second Responsible AI in the Military Domain (REAIM) summit in Seoul. However, China was among the countries that declined to support the legally non-binding document.

The blueprint builds on discussions from last year’s summit in Amsterdam and outlines concrete steps, such as risk assessments and ensuring human involvement in decisions related to AI in military operations, including nuclear weapons. It also emphasises preventing AI from being used in weapons of mass destruction (WMD) by non-state actors, such as terrorist groups.

The summit, co-hosted by the Netherlands, Singapore, Kenya, and the United Kingdom, aims to foster global cooperation without being led by a single entity. Despite this, China and approximately 30 other countries refrained from endorsing the document, highlighting differing views among participants on AI’s military use.

As the international community moves forward, discussions on AI in military contexts are expected to continue at the United Nations General Assembly in October. Experts stress that while the blueprint is a step forward, progress must be made carefully to avoid alienating countries from engaging in future talks.

Russia to invest $660 million in modernising internet censorship

Russia is ramping up its efforts to control the internet by allocating nearly 60 billion roubles ($660 million) over the next five years to upgrade its web censorship system, known as TSPU. The system, developed by state regulator Roskomnadzor, is designed to filter and block content deemed harmful or illegal by the government. The funding, part of a broader ‘Cybersecurity Infrastructure’ project, will acquire new software and hardware and expand the system’s capabilities.

The initiative is seen as part of Moscow’s broader crackdown on online freedoms, which has intensified since Russia‘s invasion of Ukraine in 2022. The government has been targeting independent media and social media platforms, blocking websites, and cracking down on using Virtual Private Networks (VPNs), which many Russians use to bypass government restrictions. Roskomnadzor has been increasingly influential in blocking access to these tools, with officials planning to enhance the system’s efficiency further.

The TSPU system was introduced under a 2019 law that requires internet service providers to install government-controlled equipment to monitor and manage web traffic. As of late 2022, over 6,000 TSPU devices had been deployed across Russian networks. The new funding will modernise this infrastructure and improve the system’s ability to detect and block VPN services, making it harder for Russians to access uncensored content.

Why does this matter?

While the Kremlin continues to position these measures as necessary for national security, critics see them as a blatant attack on free speech. Digital rights activists, including those from Roskomsvoboda, warn that while new investments in censorship technology will tighten government control, it is unlikely to eliminate access to independent information. Developers of VPNs and other circumvention tools remain determined, stating that innovation and motivation are essential in the ongoing struggle between censorship and free access.

Russia’s battle with VPNs and independent media is part of a broader campaign against what it calls Western information warfare. Despite the government’s efforts to clamp down, demand for alternative ways to access the internet remains high. Developers are working on more resilient tools, even as the state pours resources into strengthening its censorship apparatus. This tug-of-war between government control and free access to information seems set to continue, with both sides ramping up their efforts.

UK National Crime Agency losing 20% of cyber experts annually, report warns

The National Crime Agency (NCA), once regarded as the UK’s frontline defense against serious and organized crime, including cybercrime, is now in a state of crisis, according to a new report from Spotlight on Corruption, a British nonprofit organisation which focuses on financial corruption.

The report highlights a severe ‘brain drain’ within the agency, with a significant number of experienced personnel leaving, leading to a concerning loss of nearly 20% of its cyber expertise annually. This exodus is primarily blamed on a dysfunctional pay system, which has not only resulted in a high number of vacancies but has also driven up costs. To fill the gaps, the NCA has increasingly relied on temporary workers and consultants, who account for over 10% of the agency’s budget.

The report calls for urgent reform and increased investment in the NCA, warning that the agency’s ability to protect the UK from serious threats, including fraud, corruption, and organized crime, is at a tipping point. Without major changes to pay and working conditions, the agency’s effectiveness is at risk of further deterioration.

The report also contrasts the NCA with the FBI, noting that while the NCA is sometimes referred to as Britain’s equivalent, there are significant differences between the two agencies. The FBI is considered a desirable career path due to its competitive pay, benefits, and opportunities for professional development, resulting in a low staff turnover rate of just 1.7% in 2023. In comparison, British police officers would have to accept a pay cut to join the NCA, which lacks similar financial incentives.

It’s worth noting that the report doesn’t go into the details of the recent successful operations conducted with the participation of the NCA.

North Korean-linked threat actor intensifies cyberespionage operations targeting Russia and South Korea, report reveals

The cyber threat actor known as Konni, previously linked to the North Korean state-sponsored group Kimsuky, has been increasing its cyberespionage operations against targets in South Korea and Russia, according to a recent report by the South Korean cybersecurity firm Genians.

The report highlights that Konni employs consistent tactics, techniques, and procedures in its attacks on Moscow and Seoul, with cyberespionage as the primary objective. Since at least 2021, Konni has targeted entities such as the Russian Ministry of Foreign Affairs, the Russian Embassy in Indonesia, and various South Korean organisations, including a tax law firm.

One notable incident occurred in January 2022, when Konni targeted Russian embassy diplomats with phishing emails disguised as New Year greetings, aiming to deliver malware. According to Genians, Konni’s malicious activities have been ongoing since 2014. In Russian and South Korean attacks, Konni uses similar methods to connect infected devices to hacker-controlled command servers (C2). Malicious modules are deployed through executable files, and the connection to the C2 server is established via internal commands.

Genians researchers emphasised that while Konni’s attack patterns have remained consistent over the years, the group has been incorporating new, anomalous tactics to enhance the success of their operations. They also noted that understanding the similarities in the group’s attacks across different regions could help security professionals better defend against and attribute these threats.

Responsible AI in the Military Domain: REAIM Blueprint for Action

REAIM Blueprint for Action

Artificial Intelligence (AI), as an enabling technology, holds extraordinary potential to transform every aspect of military affairs, including military operations, command and control, intelligence, surveillance and reconnaissance (ISR) activities, training, information management and logistical support.

With the rapid advancement and progress in AI, there is a growing interest by states to leverage Al technology in the military domain. At the same time, AI applications in the military domain could be linked to a range of challenges and risks from humanitarian, legal, security, technological, societal or ethical perspectives that need to be identified, assessed and addressed.

To harness the benefits and opportunities of AI while adequately addressing the risks and challenges involved, AI capabilities in the military domain, including systems enabled by Al, should be applied in a responsible manner throughout their entire life cycle and in compliance with applicable international law, in particular, international humanitarian law.

Building on the Call to Action laid out at the REAIM Summit 2023, we invite all stakeholders including states, industry, academia, civil society, regional and international organizations to:

The impact of AI on international peace and security

1. Affirm that AI applications in the military domain should be developed, deployed and used in a way that maintains and does not undermine international peace, security and stability;

2. Recognize that AI applications in the military domain may bring benefits such as increased situational awareness and understanding, precision, accuracy and efficiency, which can enhance the implementation of international humanitarian law and assist in efforts to protect civilians as well as civilian objects in armed conflicts; and AI applications in the military domain may increase effectiveness of and support for peacebuilding and peacekeeping activities, and enhance verification and monitoring capabilities for arms control and other compliance regimes;

3. Recognize also that Al applications can present both foreseeable and unforeseeable risks across various facets of the military domain, which may, inter alia, originate from design flaws, unintended consequences, including from data, algorithmic and other biases, potential misuse or malicious use of the technology and the interaction of Al applications with the complex dynamics of global and regional conflicts and stability, including risks of an arms race, miscalculation, escalation and lowering threshold of conflict;

4. Further recognize that possible high impact applications in the military domain that deserve particular policy attention could include Al-enabled weapons, Al-enabled decision-support systems for combat operations, AI in cyber operations, AI in electronic warfare and AI in information operations;

5. Stress the need to prevent AI technologies from being used to contribute to the proliferation of weapons of mass destruction (WMDs) by state and non-state actors including terrorist groups, and emphasize that AI technologies support and do not hinder disarmament, arms control and non-proliferation efforts; and it is especially crucial to maintain human control and involvement for all actions critical to informing and executing sovereign decisions concerning nuclear weapons employment, without prejudice to the ultimate goal of a world free of nuclear weapons;

6. Underscore the importance of establishing robust control and security measures to prevent irresponsible actors from acquiring and misusing potentially harmful AI capabilities in the military domain, including systems enabled by AI, while bearing in mind that these measures should not undermine equitable access to the benefits of AI capabilities in other non-military domains;

Implementing responsible AI in the military domain

7. Affirm that AI applications must be developed, deployed and used in accordance with international law, including, as applicable, the UN Charter, international humanitarian law, international human rights law; and, as appropriate, other relevant legal frameworks, including regional instruments;

8. Stress the importance of establishing national strategies, principles, standards and norms, policies and frameworks and legislation as appropriate to ensure responsible AI applications in the military domain;

9. Acknowledge the following, which are not exhaustive, to ensure responsible AI in the military domain;

(a) Al applications should be ethical and human-centric.

(b) AI capabilities in the military domain must be applied in accordance with applicable national and international law.

(c) Humans remain responsible and accountable for their use and effects of Al applications in the military domain, and responsibility and accountability can never be transferred to machines.

(d) The reliability and trustworthiness of AI applications need to be ensured by establishing appropriate safeguards to reduce the risks of malfunctions or unintended consequences, including from data, algorithmic and other biases.

(e) Appropriate human involvement needs to be maintained in the development, deployment and use of AI in the military domain, including appropriate measures that relate to human judgement and control over the use of force.

(f) Relevant personnel should be able to adequately understand, explain, trace and trust the outputs produced by Al capabilities in the military domain, including systems enabled by Al. Efforts to improve the explainability and traceability of AI in the military domain need to continue.

10. Commit to engaging in further discussions and to promoting dialogue on developing measures to ensure responsible AI in the military domain at the national, regional and international level, including through international normative frameworks, rigorous testing and evaluation (T&E) protocols, comprehensive verification, validation and accreditation (VV&A) processes, robust national oversight mechanisms, continuous monitoring processes, comprehensive training programs, exercises, enhanced cyber security and clear accountability frameworks;

11. Encourage the development of effective legal review procedures, trust and confidence building measures and appropriate risk reduction measures, as well as the exchange of information and consultations on good practices and lessons learned among states; and invite other stakeholders, including industry, academia, civil society and regional and international organizations to actively engage in these efforts, as appropriate, including through regular multi-stakeholder exchanges, dissemination of case studies and other relevant documentation and active participation in collaborative initiatives;

12. Stress that efforts on responsible AI in the military domain can be taken in parallel and do not hamper the efforts on research, development, experimentation and innovation with AI technology;

Envisaging future governance of AI in the military domain

13. Recognize that the discussion on the governance of Al in the military domain should include fostering a common understanding of Al technology and its capabilities and limitations, and a shared understanding on the possible applications of AI in the military domain and their potential impacts, including both benefits and risks;

14. Emphasize that such a discussion should take place in an open and inclusive manner to fully reflect wide- ranging views, bearing in mind that different states and regions are at varying stages of integrating AI capabilities in the military domain, come from different security environments and have varying security concerns;

15. Stress the importance of capacity-building, especially in developing countries, to promote full participation of those countries in the discussions on the governance of AI in the military domain, and to facilitate the responsible approach in the development, deployment and use of military AI capabilities;

16. Commit to strengthening international cooperation on capacity-building aimed at reducing the knowledge gap on responsible development, deployment and use of AI in the military domain;

17. Note that data plays a crucial part in AI applications in the military domain, and acknowledge that states and other relevant stakeholders need to engage in further discussions on adequate data governance mechanisms, including clear policies and procedures for data collection, storage, processing, exchange and deletion as well as data protection;

18. Recognize the need for a flexible, balanced, and realistic approach to the governance of Al in the military domain to keep pace with the rapid development and advancement of technologies;

19. Acknowledge developments across multiple initiatives related to the AI applications in the military domain, including the REAIM Summit with its relevant regional events and the establishment of the REAIM Global Commission, the Political Declaration on Responsible Military Use of Artificial Intelligence and Autonomy, as well as the Group of Governmental Experts on Emerging Technologies in the Area of Lethal Autonomous Weapons Systems (LAWS GGE) established under the Convention on Certain Conventional Weapons (CCW), and the discussions in the UN Disarmament Commission and the Conference on Disarmament; take note also of the UN General Assembly Resolution 78/241 on Lethal autonomous weapons systems and relevant regional and international conferences; and stress that these initiatives should be synergistic and complementary, without prejudice to ongoing discussions on related subjects in other fora;

20. Commit to continuing global and regional dialogue on responsible AI in the military domain in an open and inclusive manner with active involvement from and exchange among stakeholders, as appropriate, acknowledging that efforts on responsible AI in the military domain is a task of generations requiring meaningful engagement with the youth.

We invite states to join this Blueprint for Action and also welcome other relevant stakeholders including industry, academia, civil society, regional and international organizations to support and associate with the Blueprint for Action as we continue our efforts to establish responsible Al for the future of humanity.

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