Latest cybersecurity reporting from selected sources.

Researchers Identified Two Undocumented Variants Used Since 2023Eset uncovered two previously undocumented Windows variants of the China-linked SprySocks backdoor tied to FishMonger and iSoon, revealing expanded espionage capabilities, rootkit-based stealth and continued targeting of government organizations across Asia and Central America.

Researchers Trace Linux and Windows Toolsets to Suspected PRC Espionage ActivityNewly discovered malware tied to China-linked actors breached telecom providers across Asia and the Middle East, highlighting growing efforts to gain persistent access into interconnected communications infrastructure.

Also, HexDex Arrest, Black Axe Crackdown, LeRobot RCE FlawThis week, election threats resurfaced. A prolific hacker arrested. Black Axe network disrupted. China-linked disinformation targets Tibet. Exploited ScreenConnect and Windows flaws raise alarms. Minecraft gamers hit with stealer malware. A critical AI framework bug enables remote code execution.

Also, Telus Breach, Microsoft Hotpatching, Interpol Malicious IP TakedownThis week, Russian hacker OpSec failure, Interpol helped disrupt 45,000 malicious IPs, the FBI is looking for an ATM jackpotting suspect and Telus disclosed a breach. Windows hotpatching, an FTP exploit, a foiled attack on a nuclear research center and China-linked espionage.

Also, More ClickFix Attacks and Teen Booters Arrested in PolandThis week, Russian hackers targeted Signal and WhatsApp users, permit-fee phishing hit U.S. applicants, ClickFix on WordPress sites, Microsoft patched 80 bugs, a 14K-router botnet, Polish teens held over DDoS tools and Finland warned of Russian, Chinese espionage. North Korean IT workers for hire.

Hacked Infrastructure Delivered Chinese Nation-State Group's Backdoor, Experts WarnThe widely used, open source text-editing software Notepad++ for Windows said attackers exploited a vulnerability to redirect some users to sites that pushed a backdoor onto their system. Security experts have tied the attack to a broader campaign perpetrated by Chinese nation-state actors.

Chinese Hackers Target European Diplomats with LNK File FlawChinese nation-state hackers are exploiting a Windows vulnerability to hack European diplomatic outposts, say security researchers - but operating system giant Microsoft says the flaw doesn't merit a patch. Hackers used a flaw already compromised by North Korea and Russia.

Threat Actor Shifts From Targeting Exchange to DatabasesA Chinese cyberespionage threat actor with a history of hacking Microsoft Exchange to spy on geopolitical events including summits in Africa, the Middle East and Asia, has shifted its attention to targeting databases, say researchers.

Also, Colt Services Outage Persists, Finland Charges Americans in Vastaamo HackThis week, Microsoft hit RaccoonO365, Colt Technology Services, Finland charged a U.S. citizen in Vastaamo hack. RevengeHotels hackers used AI, Meta can't overturn a privacy case verdict. Chinese hackers unleashed spear phishing emails. Prosper confirmed a data breach, as did Kering fashion houses.

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: Software Supply Chain Risks, Cato's AI Security BuyIn this week's update, four ISMG editors discussed the Pentagon's review of Microsoft's use of Chinese nationals on U.S. military cloud systems, renewed concerns over software supply chain risks and Cato Networks' first-ever acquisition to boost AI security.

Gap in Microsoft Blocklist Exploited, ValleyRAT Runs UndetectedA Chinese nation-state cyber group is exploiting a Microsoft-signed driver to shut down Windows security protections. The attackers deployed the driver through a custom loader. The core weakness that Silver Fox relied on remained exploitable even after patching.

Defense Department Suspends, Reviews Microsoft 'Digital Escorts' ProgramThe Pentagon is reviewing Microsoft's decade-long use of "digital escorts" - U.S.-based staff who review code from Chinese engineers - into military cloud systems, a workaround now deemed a "breach of trust" that may have exposed sensitive but unclassified government data.

But Hacking Groups of All Stripes Now Have Access to Exploit Code, Researchers WarnMicrosoft said an attack campaign targeting zero-day vulnerabilities in on-premises SharePoint servers appears to have begun by July 7, tied to three Chinese hack groups. With proof-of-concept exploit code now in the wild, security experts said hackers of all stripes have joined the fray.

Also, Stolen Cookies for Sale, LexisNexis Breach and an FBI WarningThis week, Alcasec back in a Spanish jail, billions of stolen cookies and Chinese hackers used Google Calendar. LexisNexis and Adidas had breaches, a vishing warning from the FBI. ClickFix scammers used fake Google Meet pages, Victoria's Secret went offline. Microsoft will update all your software.

CISA Advisory Says Threat Actors Stole App Secrets in Azure-Hosted Backup PlatformA suspected Chinese state hacking group linked to last year’s telecom intrusions breached Commvault’s Microsoft Azure environment, exposing sensitive Microsoft 365 credentials and reigniting fears over U.S. cloud infrastructure vulnerabilities and default security settings.

Threat Actors Deploy Obfuscation Tactics to Targets Windows MachinesLikely Chinese nation-state hackers are targeting European companies using previously unseen malware backdoor variants with advanced network tunneling and evasion capabilities for data theft. Brussels-based security firm Nviso links the campaign to a threat actor tracked as UNC5221.

Microsoft Sees Cyberespionage Group Lifting API Keys and Credentials for CustomersA prolific cyberespionage group tied to Beijing appears to have increased its targeting of widely used IT tools and service providers. Microsoft said the group's tactics now include stealing API keys and credentials from providers to gain access to providers' downstream customers' infrastructure.

Mustang Panda Uses MAVInject to Evade Antivirus DetectionA Chinese state-sponsored hacking group is abusing a legitimate Microsoft tool to evade security and install backdoors on government systems in the Asia-Pacific region. The threat actor uses MAVInject.exe to inject malware into waitfor.exe.

Researchers uncovered flaws in large language models developed by Chinese artificial intelligence company DeepSeek, including in its flagship R1 reasoning application. The security concerns come as Microsoft and OpenAI investigate whether DeepSeek developed used data scraped from an OpenAI API.