Latest cybersecurity reporting from selected sources.

Fraudsters Tokenize Stolen Cards Into Attacker WalletsGoogle Threat Intelligence Group warned that Chinese-language phishing-as-a-service platforms are using AI, encrypted messaging and real-time OTP interception to bypass multifactor authentication and provision stolen payment cards into attacker-controlled digital wallets worldwide.

Federal Proposal Pushes AI Adoption While Avoiding Regulatory DetailThe White House AI framework urges rapid deployment and federal alignment to counter China while proposing guardrails on fraud, safety and speech - but leaves unresolved conflicts on IP, content regulation and state preemption that Congress must navigate.

Telegram-Based Marketplace Closes After Prince Group Founder's ArrestTelegram marketplace Tudou Guarantee, which processed over $12 billion in fraud transactions, has ceased operations following the arrest of Prince Group chairman Chen Zhi, who was extradited to China in January. Elliptic said it was the third-largest illicit marketplace of all time.

Also: Unleash Protocol Hack, LastPass Breach Linked to Crypto TheftsThis week, an alleged fraud kingpin deported to China, Bitfinex hacker gained early release, Unleash Protocol's $3.9M hack, TRM tied crypto thefts to the LastPass breach, Trust Wallet's link to the Sha1-Hulud attack, Flow's NFT loan fallout, Ledger's data exposure and Kontigo reimbursements.

Chinese Woman Helped Run Ponzi-Style Investment Scheme That Amassed 61,000 BitcoinsChinese national Zhimin Qian, a 47-year-old woman also known as Yadi Zhang, pleaded guilty in England to helping run a Ponzi-style investment scheme in China called "Blue Sky," which defrauded over 128,000 individuals, generating assets she converted into 61,000 bitcoin, now worth $6.9 billion.

GhostRedirector Compromising Windows Servers in Brazil, Thailand and VietnamA suspected Chinese cybercrime group is deploying custom malware to compromise Windows servers in Brazil, Thailand, Portugal and Vietnam as part of search engine optimization fraud to promote gambling websites.

Also: ToolShell Hits South Africa, Most Americans Are Online Fraud VictimsThis week: Did China sneak a peek into ToolShell? ToolShell hacking in South Africa, Cisco flaws, an Arizona woman sentenced for aiding North Korea. Most Americans scammed online, a NASCAR data breach and a claimed data leak at France's Naval Group. Orange telecom disrupted. Dating app Tea breach.

Over 1 Million Infected Off-Brand Android Devices Pose Global Fraud RiskA China-based botnet operation called BADBOX 2.0 has infected more than 1 million off-brand Android smart devices globally. In an alert, the FBI advised consumers to check their home networks for suspicious activity that could be linked to multiple fraud schemes.

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.

Off-Brand Android Devices Come Infrected With A TrojanA botnet infected more than 1 million off-brand Android devices manufactured in China, reached consumers with a backdoor already installed. Scammers used the devices for programmatic ad fraud, click fraud and converting the devices into a residential proxy.

iSoon CEO, COO and Sales Director Among 10 Indicted for Cyberespionage, Wire FraudA U.S. federal grand jury in Manhattan indicted the senior leadership of a Chinese private sector hacking contractor iSoon for supporting Beijing cyberespionage operations roughly a year after internal documents from the firm leaked online.

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.

Treasury Department Says Botnet Users Committed Fraud, Made Bomb ThreatsThe U.S. Department of the Treasury sanctioned Chinese national Yunhe Wang for his role in directing the 911 S5 botnet, which uses hacked residential computers as proxies and is often used to commit fraud. The government also sanctioned a co-conspirator and a real estate business associate.