cybersecurity

Big companies grapple with AI’s legal, security, and reputational threats

A recent Quartz investigation reveals that concerns over AI are increasingly overshadowing corporate enthusiasm, especially among Fortune 500 companies.

More than 69% now reference generative AI in their annual reports as a risk factor, while only about 30% highlight its benefits, a dramatic shift toward caution in corporate discourse.

These risks range from cybersecurity threats, such as AI-generated phishing, model poisoning, and adversarial attacks, to operational and reputational dangers stemming from opaque AI decision-making, including hallucinations and biassed outputs.

Privacy exposure, legal liability, task misalignment, and overpromising AI capabilities, so-called ‘AI washing’, compound corporate exposure, particularly for boards and senior leadership facing directors’ and officers’ liability risks.

Other structural risks include vendor lock-in, disproportionate market influence by dominant AI providers, and supply chain dependencies that constrain flexibility and resilience.

Notably, even cybersecurity experts warn of emerging threats from AI agents, autonomous systems capable of executing actions that complicate legal accountability and oversight.

Companies are advised to adopt comprehensive AI risk-management strategies to navigate this evolving landscape.

Essential elements include establishing formal governance frameworks, conducting bias and privacy audits, documenting risk assessments, ensuring human-in-the-loop oversight, revising vendor contracts, and embedding AI ethics into policy and training, particularly at the board level.

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US lawmaker proposes to train young Americans in AI for cyberwarfare

In a Washington Post opinion piece, Rep. Elise Stefanik and Stephen Prince, CEO of TFG Asset Management, argue that the United States is already engaged in a new form of warfare — cyberwarfare — waged by adversaries like China, Russia, and Iran using tools such as malware, phishing, and zero-day exploits. They assert that the US is not adequately prepared to defend against these threats due to a significant shortage of cyber talent, especially within the military and government.

To address this gap, the authors propose the creation of the United States Advanced Technology Academy (USATA) — a tuition-free, government-supported institution that would train a new generation of Americans in cybersecurity, AI, and quantum computing. Modelled after military academies, USATA would be located in upstate New York and require a five-year public service commitment from graduates.

The goal is to rapidly develop a pipeline of skilled cyber defenders, close the Pentagon’s estimated 30,000-person cyber personnel shortfall, and maintain US leadership in strategic technologies. Stefanik and Prince argue that while investing in AI tools and infrastructure is essential, equally critical is the cultivation of human expertise to operate, secure, and ethically deploy these tools. They position USATA not just as an educational institution but as a national security imperative.

The article places the academy within a broader effort to outpace rivals like China, which is also actively investing in STEM education and tech capacity. The authors call on the President to establish USATA via executive order or bipartisan congressional support, framing it as a decisive and forward-looking response to 21st-century threats.

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EU and Japan deepen AI cooperation under new digital pact

In May 2025, the European Union and Japan formally reaffirmed their long-standing EU‑Japan Digital Partnership during the third Digital Partnership Council in Tokyo. Delegations agreed to deepen collaboration in pivotal digital technologies, most notably artificial intelligence, quantum computing, 5G/6G networks, semiconductors, cloud, and cybersecurity.

A joint statement committed to signing an administrative agreement on AI, aligned with principles from the Hiroshima AI Process. Shared initiatives include a €4 million EU-supported quantum R&D project named Q‑NEKO and the 6G MIRAI‑HARMONY research effort.

Both parties pledge to enhance data governance, digital identity interoperability, regulatory coordination across platforms, and secure connectivity via submarine cables and Arctic routes. The accord builds on the Strategic Partnership Agreement activated in January 2025, reinforcing their mutual platform for rules-based, value-driven digital and innovation cooperation.

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FBI alert: Fake Chrome updates used to spread malware

The FBI has warned Windows users about the rising threat of fake Chrome update installers quietly distributing malware when downloaded from unverified sites.

Windows PCs remain especially vulnerable when users sideload these installers based on aggressive prompts or misleading advice.

These counterfeit Chrome updates often bypass security defences, installing malicious software that can steal data, turn off protections, or give attackers persistent access to infected machines.

In contrast, genuine Chrome updates, distributed through the browser’s built‑in update mechanism, remain secure and advisable.

To reduce risk, the FBI recommends that users remove any Chrome software that is not sourced directly from Google’s official site or the browser’s automatic updater.

They further advise enabling auto‑updates and dismissing pop-ups urging urgent manual downloads. This caution aligns with previous security guidance targeting fake installers masquerading as browser or system updates.

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Bitcoin’s security under quantum threat

A leading cybersecurity expert has raised concerns that Bitcoin’s underlying cryptography could be broken within five years. David Carvalho, CEO of Naoris Protocol, warned that quantum computers could soon break the cryptography securing Bitcoin transactions.

He believes the threat could materialise sooner than most anticipate, urging immediate action.

Carvalho pointed to Shor’s algorithm as the core concern. Once sufficiently advanced quantum machines are deployed, they could crack Bitcoin’s defences in seconds.

Roughly 30% of all Bitcoin—around 6 to 7 million BTC—is currently held in wallets with exposed public keys, making them especially vulnerable.

He also referenced major breakthroughs in the field, including Microsoft’s Majorana chip and IBM’s planned release of a fault-tolerant quantum computer by 2029.

With over 100 quantum systems already active and thousands more expected by 2030, Carvalho advised investors to migrate funds to quantum-secure wallets and update their security protocols.

However, Adam Back, CEO of Blockstream and an early Bitcoin contributor, believes the technology is still decades away from posing a real threat. He did acknowledge that future advancements may force even early adopters to move their coins to quantum-resistant addresses.

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Historic UK KNP transport firm collapses after ransomware attack

A 158‑year‑old UK transport firm, KNP Logistics, has collapsed after falling victim to a crippling ransomware attack. Hackers exploited a single weak password to infiltrate its systems and encrypted critical data, rendering the company inoperable.

Cybercriminals linked to the Akira gang locked out staff and demanded what experts believe could have been around £5 million, an amount KNP could not afford. The company ceased all operations, leaving approximately 700 employees without work.

The incident highlights how even historic companies with insurance and standard safeguards can be undone by basic cybersecurity failings. National Cyber Security Centre chief Richard Horne urged businesses to bolster defences, warning that attackers exploit the simplest vulnerabilities.

This case follows a string of high‑profile UK data breaches at firms like M&S, Harrods and Co‑op, signalling a growing wave of ransomware threats across industries. National Crime Agency data shows these attacks have nearly doubled recently.

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M&S Sparks scheme returns after cyber attack

Marks & Spencer has fully reinstated its Sparks loyalty programme following a damaging cyberattack that disrupted operations earlier this year. The retailer confirmed that online services are back and customers can access offers, discounts, and rewards again.

In April, a cyber breach forced M&S to suspend parts of its IT system and halt Sparks communications. Customers had raised concerns about missing benefits, prompting the company to promise a full recovery of its loyalty platform.

M&S has introduced new Sparks perks to thank users for their patience, including enhanced birthday rewards and complimentary coffees. Staff will also receive a temporary discount boost to 30 percent on selected items this weekend.

Marketing director Sharry Cramond praised staff efforts and customer support during the disruption, calling the recovery a team effort. Meanwhile, according to the UK National Crime Agency, four individuals suspected of involvement in cyber attacks against M&S and other retailers have been released on bail.

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Singapore probes cyberattacks on critical infrastructure linked to UNC3886

Singapore is addressing cyberattacks on its critical information infrastructure attributed to the state-sponsored cyberespionage group UNC3886. On 18 July, Coordinating Minister for National Security K. Shanmugam identified the group as an advanced persistent threat (APT) actor capable of long-term network infiltration to gather intelligence or disrupt essential services. He noted that UNC3886 is currently targeting high-value strategic assets in Singapore but did not name any state sponsor.

Cybersecurity firm Mandiant, which first reported on UNC3886 in 2022, has characterised it as a ‘China-nexus espionage group‘ that has previously targeted organisations in the defence, technology, and telecommunications sectors across the United States and Asia.

In response, the Chinese embassy in Singapore denied any connection to UNC3886. In a statement published over the weekend, it described the allegations as ‘groundless smears and accusations’ and reiterated that China opposes all forms of cyberattacks under its laws. The embassy stated that China does not encourage, support, or condone hacking activities.

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South Korea joins US-led multinational cyber exercise

South Korea’s Cyber Operations Command is participating in a US-led multinational cyber exercise this week, the Ministry of National Defence in Seoul announced on Monday.

Seven personnel from the command are taking part in the five-day Cyber Flag exercise, which began in Virginia, United States. This marks South Korea’s fourth participation in the exercise since first joining in 2022.

Launched in 2011, Cyber Flag is an annual exercise designed to enhance cooperation between the United States and its allies, particularly the Five Eyes intelligence alliance, which includes Australia, Canada, New Zealand, the United Kingdom, and the United States. The exercise provides a platform for partner nations to strengthen their collective ability to detect, respond to, and mitigate cyber threats through practical, scenario-based training.

According to the Ministry, Cyber Flag, together with bilateral exercises between South Korean and US cyber commands and the exchange of personnel and technologies, is expected to further advance cooperation between the two countries in the cyber domain.

The Cyber Flag exercise involves the Five Eyes intelligence alliance—comprising the United States, United Kingdom, Australia, Canada, and New Zealand—alongside other partner countries. The program focuses on enhancing collective capabilities to counter cyber threats through practical training.

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Drug‑testing firm exposes 748,000 records in breach

In a massive data breach revealed in July 2025, the Texas Alcohol & Drug Testing Service (TADTS) admitted hackers gained access to sensitive information belonging to approximately 748,763 individuals.

Attackers remained inside the network for five days in July 2024 before detection, later leaking hundreds of gigabytes of data via the BianLian ransomware group.

Exposed records include a dangerous mix of personal and financial data—names, Social Security and passport numbers, driver’s licence and bank account details, biometric information, health‑insurance files and login credentials.

The breadth of this data presents a significant risk of identity theft and financial fraud.

Despite identifying the breach shortly after, TADTS delayed notifying those affected until July 2025 and provided no credit monitoring or identity theft services.

The company is now under classic action scrutiny, with law firms investigating its response and breach notification delays.

Security experts warn that the extended timeline and broad data exposure could lead to scams, account takeovers and sustained damage to victims.

Affected individuals are urged to monitor statements, access free credit reports, and remain alert for suspicious activity.

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