Latest cybersecurity reporting from selected sources.

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.

Also: Updates in KelpDAO, Drift, Hyperbridge HacksThis week, Grinex was exploited, a hacker laundered KelpDAO funds, Circle was sued over $280M Drift hack, Rhea Finance and Volo Protocol were exploited, update in Hyperbridge hack, sentencing in art scam case, a French home invasion for crypto theft and eth.limo hijack thwarted.

Fraud Expert Ken Palla on Why Detection Controls Still Lag BehindFraud continues to climb even as banks invest heavily in detection tools and analytics. The gap between technology spending and fraud losses reflects a deeper issue in how financial institutions approach scam prevention, says Ken Palla, retired director at MUFG Bank.

Top European Court Advisor Says Policy Should Be 'Refund Now, Sue Later'Banks must promptly refund phishing victims when the scams lead to unauthorized transactions, an advisor to the European Union’s top court has said. The case in question involves an unnamed Polish woman who got duped on an online auction platform.

Also: IoTex Bridge Exploit Linked to Private Key BreachThis week, Step Finance shuts down, IoTeX bridge exploit, Russia-linked exchanges help evade sanctions, Australian charged in $3.5 million scam, a hacker returned $21 million in seized bitcoin to South Korean prosecutors and Malaysia arrested 12 police officers in an extortion case.

Little Progress Made to Mandate Customer Reimbursement for Financial ScamsFinancial scams and synthetic identity fraud showed no signs of slowing in 2025, as regulators focused on fraud prevention over reimbursement for victims. But some countries joined the United Kingdom in advancing new anti-scam measures that focus on prevention and industry accountability.

Also: npm Packages Infiltrated, FBI Issues Fraud Alert, Campbell's Soup Cans CISOThis week, a recently fixed Oracle flaw is being actively exploited, Shelly tackled Pro 4PM DoS bug, "Shai-Hulud 2.0" hit npm, the FBI warned of rising bank account takeover scams, regulators fined Comcast over a vendor breach, Iberia reported a supplier incident and Campbell's canned its CISO.

Ping Identity and Ameris Bank on Stopping Fraud Without Alienating Legitimate UsersIn the latest "Proof of Concept," Rich Keith, director of product and solutions marketing at Ping Identity, and Todd Smith, senior vice president of customer IAM at Bank Ameris, joined ISMG editors to discuss how AI-based fraud is breaking trust models faster than many systems can adapt.

XML-Based Messaging Tech Extends Fraud Detection Into Wider Bank Use CasesACI's signals network intelligence harnesses neural networks and federated machine learning to spot fraud in real time without banks sharing data. Beyond fraud detection, its insights can drive business growth from other business units, and ACI aims to accelerate adoption by making it open source.

ACI Worldwide's Signals Network Intelligence Technology Promises to Fight APP ScamsReal-time payments are set to boost global GDP by $285.8 billion and bring 167 million people into the financial system by 2028. ACI Worldwide says real-time fraud prevention is key to protecting these gains.

Also: Coinbase's Misconfigured Smart Contract, GMX Repayment PlansThis week, a Ponzi scammer must pay $228 million, Google clarified Play Store non-custodial wallet rules, Coinbase misconfiguration, GMX repayment, BtcTurk halted transfers, bank groups wrote lawmakers. Prosecutors seized funds. The Federal Reserve ended a special oversight program. Hong Kong published new rules.

Also: Scammer Gets 12-Year Sentence for Dodging RestitutionAbacus Market's suspected exit scam, crypto scammer gets 12 years for dodging restitution, GMX exploiter returns funds, BigOne's $27M hack, Arcadia Finance's $3.5M theft, NZ woman's trial for alleged murder and a DOJ crypto fraud filing's potential unmasking of MoonPay victims.

FIs Must Invest in AI-Fueled Behavioral Biometrics to Go Beyond Static CredentialsScammers are increasingly turning to account takeover fraud, as financial institutions ramp up their defenses. Instead of luring victims into making authorized transactions, cybercriminals are bypassing them altogether, hijacking their digital identities and draining accounts from within.

Also, Nike Sued Over Shutdown of NFT SubsidiaryThis week, KiloEX compensation after Oracle exploit, Nike sued over NFT shutdown, SEC dropped probe into PayPal PYUSD, Long Island man sentenced for crypto fraud, Americans lost billions to crypto scams, Loopscale exploiter agreed to return stolen funds and bank regulators softened stance on crypto.

At-Bay Cyber Insurance Claims Report Finds 83% of Financial Fraud Starts With EmailFinancial fraud remains the leading driver of cyberinsurance claims, with 83% of cases traced back to email-based attacks. Common tactics used to deceive employees include wiring funds to fraudulent accounts, generative AI-crafted emails, executive and vendor impersonation and BEC scams.

Jason Costain on Ways Traditional and Digital Banks Could Learn from Each OtherDigital-only banks promise speed and sleek digital experiences but are not the best places to handle scam victims. Without branches to visit, victims find themselves stuck in a loop of chatbots, said Jason Costain, former head of fraud analytics and threat management at NatWest Group.

Jason Costain on Ways Traditional and Digital Banks Could Learn from Each OtherDigital-only banks promise speed and sleek digital experiences but are not the best places to handle scam victims. Without branches to visit, victims find themselves stuck in a loop of chatbots, said Jason Costain, former head of fraud analytics and threat management at NatWest Group.

M&T Bank's Karen Boyer on Need for Shared Responsibility with Telecoms, Tech FirmsTechnology solutions can help banks fight fraud, but privacy constraints are preventing them from doing an effective job to ferret out scammers, said Karen Boyer, senior vice president at M&T Bank. She supports a new Australian law that also places responsibility on telecom and internet providers.

Emerging Vendors, Consolidation Drive Innovation in Fraud, AML, Scam PreventionAs cybercriminals exploit AI-generated deepfake scams and synthetic identity fraud, financial institutions are investing heavily in fraud detection, anti-money laundering solutions and identity verification to stay ahead. This demand is driving consolidation in the market.

Officials Hope to Curb Global Fraud by Targeting Border Operations in MyanmarIn a drastic move to curb fraud along the Myanmar border, Thailand announced plans to cut power and telecommunications in border areas of Myanmar linked to scam operations. The move is aimed at crippling criminal syndicates running notorious call centers that orchestrate scams, financial fraud and human trafficking.