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Guardrails Bypassed on Azure OpenAI to Generate 'Thousands of Harmful Images'
Microsoft filed a lawsuit targeting a cybercrime service used to generate "thousands of harmful images" by subverting the guardrails built into its Azure generative artificial intelligence tools. The company said attackers built a tool that reverse-engineered the guardrails in its AI platform.

Experts Weigh the Pros and Cons of Work Culture and Merging AML and Fraud Teams
A recent report found that more than 57,000 Americans fall victim to scams every day. Financial fraud is rising globally. In response, the National Automated Clearinghouse Association is pushing for real-time fraud monitoring by 2026, requiring closer collaboration between fraud and AML teams.

HHS OCR Letter Also Reminds Entities That AI Tool Use Must Comply with HIPAA
Federal regulators are reminding healthcare providers, insurers and other regulated firms of their duty to ensure that AI and other emerging technologies for clinical decision making and patient support are not used in a discriminatory manner - and comply with HIPAA.

Mitigating Cybersecurity, Privacy Risks for New Class of Autonomous Agents
Many organizations are looking to artificial intelligence agents to autonomously perform tasks that surpass traditional automation. Tech firms are rolling out agentic AI tools that can handle customer-facing interactions, IT operations and a variety of other processes without human intervention, but experts are cautioning security teams to watch for cyber and privacy risks.

Cybercrime History Teaches That Paying a Ransom for Data Deletion Is Foolish
Data breach victim PowerSchool, maker of a widely used K-12 student information system platform, has been attempting to assure schools, and parents and guardians, by saying its attacker has promised to delete the stolen data. What's the old saying about those who fail to learn from history?

Many important efforts by the Cybersecurity Infrastructure and Security Agency to help the healthcare sector and other critical infrastructure sectors bolster their cybersecurity are likely to continue under the incoming Trump administration, predicted CISA Deputy Director Nitin Natarajan.

Days Are Dwindling, But Biden White House Unveils New AI Roadmap for HHS
With 10 days left in office, the Biden administration released an artificial intelligence strategic plan for the U.S. Department of Health and Human Service. HHS called the plan a "comprehensive roadmap" outlining the department’s "commitment to trustworthy, ethical and equitable AI use.

Nvidia, Semiconductor Trade Group Push Back Against Reported Chip Restrictions
The White House’s reported final push to impose tighter restrictions on global semiconductor exports, including artificial intelligence chips critical for data centers, has drawn strong criticism from Nvidia and the semiconductor industry in the last days of the administration.

Also: Cybersecurity Tech Leader Amit Yoran’s Life, Leadership and Legacy
In this week's update, ISMG editors discussed the escalating geopolitical cyberthreats expected in 2025, including advanced and persistent campaigns linked to Chinese actors. Panelists also paid tribute to Amit Yoran, one of the cybersecurity industry's most influential leaders.

Cyberespionage Campaign Reached Treasury Office that Reviews Foreign Investment
Chinese hackers reportedly breached a U.S. government office responsible for reviewing foreign investments for national security threats as part of a cyberespionage campaign targeting the Department of Treasury. Hackers gained access to the Committee on Foreign Investment in the U.S.

USR Holdings Lost Electronic PHI for Nearly 3,000 Patients in Breach
A Florida-based behavioral health holding company has paid federal regulators a $337,750 HIPAA settlement for a 2018 incident involving the deletion of electronic protected health information pertaining to nearly 3,000 patients. How should other entities avoid these data loss situations?

Cado Security Deal Brings Enhanced Forensics, Automation and AI-Powered Analytics
By acquiring Cado Security, Darktrace strengthens its ability to secure multi-cloud environments. The transaction brings together Cado's forensic capabilities with Darktrace's AI analytics to deliver comprehensive threat detection and response to organizations in regulated industries.

Officials Worry Trump's Cybersecurity Agenda Could Scrap Biden's Final Cyber Orders
An executive order set to be published by the Biden administration in its waning days could offer the next White House a blueprint to counter Chinese cyberattacks but experts fear its timing - so close to the transition of power - could make it practically dead on arrival.

Facebook Unveils Community Notes Program But Has Done Little to Curb Fraud
Meta has decided to end its fact-checking program. Meta CEO Mark Zuckerberg announced significant changes to the company's moderation policies and practices on Tuesday, attributing the shift to a renewed commitment to free speech. Some fear the move will embolden financial scammers.

Deputy Director Reflects on Term and Offers Advice to Successors
From application security to zero trust, it's been a busy four years for the current leaders of the U.S. Cybersecurity and Infrastructure Security Agency. Deputy Director Nitin Natarajan discusses the agency's accomplishments and the threats that await the next administration's cyber leaders.

Also: Penalty on Illegal Cryptomining in Siberia
This week's roundup includes Do Kwon's trial, penalty on a Siberian firm over illegal cryptomining, 2024 drainer attack statistics, U.S. bank regulator's crypto stance, Gemini's CFTC settlement, China's blockchain plans and Hong Kong's push for DLT in banks.

ActZero Purchase Adds Artificial Intelligence, Open Platform and Process Maturity
With its acquisition of ActZero, WatchGuard gains advanced machine learning capabilities and expertise to improve its MDR service. ActZero's mature processes and open platform enable seamless integration of WatchGuard products as well as third-party tools like Microsoft Defender.

Also, Alleged Gravy Analytics Breach Exposes Location Data
This week, a Russian tanker linked to cable sabotage detained in Finland, a claimed Gravy Analytics breach exposed location data, a Mirai-based botnet exploited zero-day flaws, Dell updated framework flaws and a court sentenced a Florida woman for laundering millions in romance scams.

Studying Backdoors in Web Shells, Researchers Find 4,000 Infected Systems
How many servers are infected by web shells designed to give attackers remote access to systems, but now "phone home" to malicious infrastructure that's now abandoned or expired? Security researchers who posed that question have counted 4,000 such systems, including in government and education.

Facebook Unveils Community Notes Program But Has Done Little to Curb Fraud
Meta has decided to end its fact-checking program. Meta CEO Mark Zuckerberg announced significant changes to the company's moderation policies and practices on Tuesday, attributing the shift to a renewed commitment to free speech. Some fear the move will embolden financial scammers.