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.

Also: Gas Station Monitoring Systems Under Attack, Spanish Teen Doxer ArrestedThis week, more happened than fits here: Microsoft tried to make nice with researchers, gas tank gauges under attack in the United States, fake FIFA websites are everywhere. Russia cried cyberespionage, Spanish police arrested a teenage doxer, a Oracle WebLogic flaw was actively exploited.

Security Researchers Fear Broader Legal Pressure on Bug DisclosuresMicrosoft is pursuing legal action after a researcher publicly released six Windows zero-days and exploit code following a breakdown in coordinated disclosure talks, escalating tensions over vulnerability disclosure, platform moderation and protections for independent security researchers.

Hidden Install Settings Let Malicious MCP Links Execute CodeMicrosoft patched a high-severity flaw in Visual Studio Code after researchers found attackers could hide malicious settings inside MCP server install links, giving them persistent access to developer machines through what appeared to be routine artificial intelligence tool installations.

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.

Researchers Link MSHTA Windows Utility to Lumma Stealer, ClickFix CampaignsCybercriminals continue abusing Microsoft’s legacy MSHTA utility to deliver malware, with researchers saying that the default-enabled Windows component remains a favored living-off-the-land tool for PowerShell attacks, info stealers and multi-stage malware loaders.

System Translates Detection Rules Across Security PlatformsResearchers developed an AI framework that converts threat detection rules between major SIEM platforms including Splunk, Microsoft Sentinel and QRadar. The system uses LLMs and automated validation steps to preserve detection logic during migrations that often require months of manual work.

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.

Commands Push Lasting Preferences Into AI AssistantsMicrosoft researchers found companies embedding hidden commands in "summarize with AI" buttons to plant lasting brand preferences in assistants' memory. The tactic, dubbed AI recommendation poisoning, exploits persistent memory features to bias future responses.

Also, SmarterMail Flaw, Nike Breach Probe, Empire Market Co-Creator Pleads GuiltyThis week, researchers exposed an Android RAT abusing Hugging Face. Attackers exploited a SmarterMail flaw. Automakers raised cyber spending. CISA flagged a VMware bug. Microsoft patched Office. An Empire Market co-creator pleaded guilty. Nike probed a breach.

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.

MuddyWater Also Embraces Bulletproof Hosts and Custom MalwareThe Iranian nation-state cyberespionage group MuddyWater is going back to the future with attacks featuring Microsoft Office documents with malicious macros. It is also shifting to homegrown malware in place of commercial remote monitoring and management tools, said researchers.

Proof-of-Concept Attack Demonstrates FIDO Downgrade Against Microsoft Entra IDThe FIDO standard, a bulwark against credential-stealing phishing attacks, has an implementation chink that's poised for commoditization by cybercriminals, say security researchers in news that's good for phishing-as-a-service providers but terrible for everyone else.

Over 400 Organizations Breached Via Ongoing ToolShell Attacks, Researchers WarnThe U.S. government agency that maintains and designs America's nuclear weapons was reportedly breached by attackers exploiting zero-day flaws in on-premises Microsoft SharePoint servers, with researchers now counting over 400 victims, including European and Middle Eastern governments.

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.

Semperis Warns of Flaw in Windows Server 2025 Delegated Managed Service AccountsA critical cryptographic flaw in Windows Server 2025's delegated Managed Service Accounts, or dMSAs, allows attackers to generate passwords for every managed service account across an Active Directory forest and create a backdoor, Semperis researchers found.

Hackers Can Use Unverified Email to Log onto SaaS Apps With Entra IDA flaw in a Microsoft single sign-on feature allowing cloud app account takeovers discovered in 2023 never really went away, say researchers - notwithstanding a computing giant claim that it almost immediately fixed the vulnerability known as nOAuth.

Defunct Ransomware Group's Diaspora Includes Hackers With Focus on Microsoft TeamsBased on intelligence gleaned from the leak of Black Basta ransomware messages, researchers are warning organizations to beware phishing attacks launched via Microsoft partner domains and via Teams, as well as the targeting of personal Google accounts accessed via corporate devices.

Akamai Researchers Flag 'BadSucessor' in Windows Server 2025An unpatched flaw in Windows Server 2025 that is "trivial" to exploit and present in the default configuration is full domain compromised, warns new research from Akamai. The flaw is present in a new account type known as delegated managed service accounts, or dMSA.