Latest cybersecurity reporting from selected sources.

Also: Oracle Suit Points to AI Revenue Forecasting Risk; the AI Sovereignty PushIn this week's panel, four editors discussed the growing role of artificial intelligence in U.S. federal government cybersecurity, Oracle's investor lawsuit over its projected cloud sales to frontier AI lab OpenAI and what AI sovereignty means for enterprises.

Commission Proposes That Sensitive Public Data Should Be Kept LocalThe European Union's executive arm singled a strong dislike for U.S. cloud service provider participation in public-sector procurements in a long-delayed legislative package meant to bolster continental self-sufficiency. The proposal called for sensitive public data to be stored locally.

New York-Based Kyndryl Can't Buy Amsterdam-Based Solvinity GroupThe growing push for European technological sovereignty from the United States claimed a significant scalp in the Netherlands, where authorities blocked the American takeover of a crucial secure cloud company.

Moves Reverse Biden-Era Changes; National Coordinator Returns to Health IT PolicyThe U.S. Department of Health and Services is reversing Biden-era changes, returning the Office of the National Coordinator for Health IT's focused role on external health IT policy and standards, while shifting department-wide cybersecurity, cloud, AI and data operations back to the Office of CIO.

CareCloud: Intruder Accessed Systems for 8 Hours, Still Assessing Extent of BreachElectronic health records vendor CareCloud has notified the U.S. Securities and Exchange Commission of a cyber incident earlier this month that temporarily disrupted the software and accessed one of its EHR environments. The company is assessing whether patient data was accessed or stolen.

Nation-State Hackers Sheltering From Bombs or Cut Off From InternetIranian cyber proxies are girding for revenge while nation-state hackers in Tehran have gone quiet, whether to shelter from an onslaught of missile attacks or because the Middle Eastern country remains disconnected from the global internet on the third day of a U.S. and Israeli bombing campaign.

Acquisition of MSP MacSolution Boosts Global Services and Cloud Migration ExpertiseJumpCloud has acquired MacSolution, a longtime partner and its largest MSP in the Americas, to enhance global service delivery and deepen its IT modernization capabilities. The move positions Sao Paulo, Brazil, as a strategic hub and strengthens support for partners and customers in Latin America.

Europe Tries, Tries Again Amid Transatlantic UncertaintyEuropean cloud users love hyperscalers - but they’re all American. Microsoft, Google and Amazon Web Services together hold 70% of the European market, with local providers mustering a mere 15% collectively. That landscape could soon change in the face of geopolitical reality.

Forrester's Brent Ellis and Dario Maisto on Lessons Learned for Large EnterprisesThe cascading outage across the U.S. East Coast triggered this week by a domain name system failure in an AWS DynamoDB service demonstrates the risks of deep architectural dependencies and the challenges of building true multi-region cloud resilience, said Forrester's Brent Ellis and Dario Maisto.

Also: the UK's $7B Bitcoin Case, Implications of Vectra's NetographyIn this week's update, ISMG editors examine how the U.S. shutdown and the lapse of CISA 2015 liability shield are straining cyber operations, what Vectra’s move for Netography signals for multi-cloud visibility and NDR, and how British prosecutors unraveled a bitcoin hoard now worth $7 billion.

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.

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.

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.

New Pentagon CISO Appointed as Pentagon Budget Cuts LoomThe White House appointed a Trump ally and former Department of Defense cybersecurity official as DOD CISO, an unexpected return to the Pentagon for an official previously removed under a cloud of security concerns. Arrington returns to the Pentagon just as it faces budget cuts.

Cameron Wagenius Suspected of Extorting Snowflake Customers Over Stolen DataA serving member of the U.S. Army has been arrested on a two-count indictment tied to the theft and sale of "confidential phone records," reportedly tied to the theft of terabytes of data from AT&T, Verizon and other customers of cloud data warehousing platform Snowflake.

AI-Powered Cloud Remediation, Multi-Cloud Support at Core of Series B InvestmentWith a $30 million boost from Series B funding, Stream.Security will enhance its cloud security offerings. The company’s focus includes auto-remediation, faster, AI-driven threat responses, increased support for multi-cloud and hybrid environments, and boosted market presence in the U.S. and beyond.

First-Ever US National Cybersecurity Posture Report Highlights AI, Cloud MigrationsThe Office of the National Cyber Director released the United States' first-ever report on the nation's overall cybersecurity posture, revealing significant improvements despite an ever-changing threat landscape and emerging technologies such as artificial intelligence that pose new challenges.

Also: Hospitals Spend More on Cybersecurity; Critical Flaw in WordPressThis week, a cloud server error revealed sanction busting, Moody's said hospital cybersecurity spending is up, the U.S. restricted visas for commercial spyware operators, a ransomware attack hit a lab in Italy, hackers exploited a WordPress flaw, and Argentinian data is for sale on a criminal forum.

Rule Is a Bid to Deter Malicious Foreign Use of US IaaS ProvidersCloud providers told the government they aren't very happy about a proposed regulation requiring them to verify the identity of foreign customers, but their complaints are unlikely to stop the U.S. Department of Commerce from proceeding with the rule.