Latest cybersecurity reporting from selected sources.

Restrictions Highlight Growing U.S.-China AI Security TensionsJPMorgan Chase removed Anthropic's Claude models from its approved AI platform for employees in Hong Kong, following restrictions tied to Greater China access rules and underscoring how U.S. export controls and geopolitical concerns are reshaping enterprise AI adoption in global financial markets.

Complaint Says Service Generated More Than 1.5 Million Malicious URLsGoogle has sued a Chinese phishing-as-a-service provider accused of teaching customers to use Gemini to generate and customize scam websites, a campaign linked to more than 1.59 million phishing URLs, over 100,000 victims, and widespread credential and financial theft.

Mythos Found ‘Tens of Thousands’ of Unpatched Flaws With Months to Fix ThemAnthropic CEO Dario Amodei warned that Claude Mythos has found tens of thousands of unpatched software vulnerabilities, with a six-to-12 month window before Chinese AI models catch up. The disclosure came alongside a major financial services push including an investor-backed firm and 10 new AI agents.

Solar Energy Spurt Comes Freighted With Chinese Nation-State Hacking WorriesThe European Commission froze funding for solar energy projects that use crucial components from Chinese companies such as Huawei, due to cybersecurity fears. The decision affects projects being funded by the European Investment Bank and other partner banks.

Also: Chinese Firms Indicted in Crypto-Linked Fentanyl Supply CaseThis week, charges filed in Uranium Finance hack, indictment of Chinese firms in fentanyl supply case, a class action lawsuit against Nvidia, Drift Protocol exploit, KuCoin operational barriers in the United States and a U.K. sanction filed against Xinbi.

3 State-Sponsored Groups Spear-Phish Semiconductor EcosystemChinese state-aligned hackers have ramped up espionage efforts against Taiwan's semiconductor ecosystem through spear-phishing campaigns. Three distinct threat actors targeted chipmakers, packaging and testing firms, equipment suppliers and financial analysts.

China's Hack-For-Hire Scene Disgorges Another LeakThe Chinese nation-state threat actor tracked as Salt Typhoon is operated by a clutch of private firms whose clients include multiple Chinese government agencies, finds analysis of leaked data by Spy Cloud. Researchers found a spreadsheet listing buyers, sellers and financial transaction details.

Attack Combines Social Engineering and Card Emulation to Execute Real-Time TheftHackers are using Chinese-speaking Android malware-as-a-service SuperCard X to carry out near-field communication relay attacks, siphoning payment card data and executing live point of sale and ATM transactions. Victims receive spoofed SMS or WhatsApp alerts purporting to originate from their bank.

Also: Penalty on Illegal Cryptomining in SiberiaThis week's roundup includes Do Kwon's trial, penalty on a Siberian firm over illegal cryptomining, 2024 drainer attack statistics, U.S. bank regulator's crypto stance, Gemini's CFTC settlement, China's blockchain plans and Hong Kong's push for DLT in banks.

Integrity Technology Group Built Botnet for Chinese Hackers, US Treasury SaysThe Department of Treasury blacklisted Integrity Technology Group, declaring transactions with the company to be off-limits for U.S. financial institutions and persons. The effect will likely have more symbolic than actual disruptive effect.

Hackers Reportedly Target Treasury Department Offices Overseeing Economic SanctionsA Chinese hack of the U.S. Department of Treasury targeted offices tasked with overseeing economic sanctions and financial investigations, as experts warn Beijing is increasingly escalating attacks on American critical infrastructure while preparing for potential future conflict.

Also: Highlights from ISMG's Financial Services Summit and Key Insights on AI AdoptionOn the 200th episode of the ISMG Editors' Panel, the team discussed the major China-linked cyberespionage campaign targeting U.S. telecommunications, highlighted key insights from ISMG's Financial Services Summit in New York, and unpacked the top findings from ISMG’s annual Generative AI Survey.

Also: Ransomware Hackers Demand BaguettesThis week, Chinese spying, Italian hacking scandal, an FBI warning and Okta fixed a bug. Google mandated MFA, zero days in PTZOptics and a Mexican airport didn't pay ransom. Cybercriminals demanded baguettes, breach lettersin Ohio and Germany will shield white hats. The Italian DPA rebuked a bank.

Chinese Cybercrime Groups Ran Operations in Rented Hotels and Guest HousesSri Lankan authorities have arrested more than 200 Chinese nationals who they say overstayed their visitor visas and engaged in large-scale financial scam operations targeting victims across Asia. The Chinese Embassy in Colombo says it supports the law enforcement crackdown.

Also: UwU Lend's Hacks, Terraform Labs' Dissolution, Gemini's SettlementThis week, CertiK researchers allegedly stole money from Kraken, UwU Lend was hacked, Terraform Labs shut down, Gemini will pay defrauded investors, three entities claimed seized FTX assets, a Chinese bank suffered embezzlement and money laundering, and the SEC's crypto head is leaving.

Also: Crypto King Indicted in CanadaThis week, $25M in ethereum was stolen, Sonne Finance was hacked, a thief returned stolen crypto, Canada indicted its crypto king, the U.S. blocked a purchase by a Chinese crypto mining firm, Canada took regulatory action against Binance, and two senators were concerned about cryptomixer policy.

Hackers Used LLMs to Perform Tasks That Non-AI Tools Can PerformNation-state hackers including Russian military intelligence and hackers backed by China have used OpenAI large language models for research and to craft phishing emails, the artificial intelligence company disclosed Tuesday in conjunction with major financial backer Microsoft.

Also: Polish Prime Minister Says Previous Administration Deployed Pegasus SpywareThis week, the Zeus leader pleaded guilty, Prudential detected hackers, U.S. telecoms have to report breaches, Microsoft patched zero-days, researchers said Chinese threat intel is faulty, ransomware hit Romanian healthcare entities, Juniper was breached and Poland allegedly previously used Pegasus.

GoldPickaxe Malware Can Record User’s Face - Use Video to Commit Deepfake ScamsA Chinese-speaking cybercrime group with the codename GoldFactory has built a new Android and iOS banking Trojan, GoldPickaxe, that can harvest and steal personal details, including biometric face profiles, that attackers use to create AI-driven deepfakes to fool bank defenses, researchers warn.

Both iOS and Android Variants Can Record Face Videos, Used to Create AI DeepfakesA Chinese-speaking cybercrime group codenamed GoldFactory has built a new Android and iOS banking Trojan, GoldPickaxe, that can to harvest and steal personal details, including biometric face profiles, which attackers use to create AI-driven deepfakes to fool bank defenses, researchers warn.