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Britain's Tax Collector HMRC Lost $63 Million to Fraudsters Wielding Taxpayer Data
Police on Thursday arrested 13 individuals in Romania and one in England on suspicion of engaging in a massive tax fraud scheme against Britain. The arrests appear to be tied to a gang that used phishing attacks against British taxpayers to steal $63 million via fraudulent tax claims.

As healthcare providers and their vendors develop and implement agentic artificial intelligence and other AI tools, they need to throughly understand data privacy risks under HIPAA and other laws, said attorney Jordan Cohen of law firm Akerman LLP.

AI Models Mostly Fail in Full Track of Vulnerability Research to Exploit
The rise of code-illiterate but AI-enabled script kiddies able to wreak havoc by weaponizing software vulnerabilities into automated exploits, thanks to expert-level assistance from large language models, remains but a future possibility, based on exploit-writing tests of 50 LLMs.

Also, US Sanctions North Korean IT Worker Scammers and More Paraguay Hacks
This week, McDonald's password mishap, North Korean IT worker sanctions, a wormable Microsoft flaw, Qantas update. Monzo fined, Flutter data breach and CyberTeam again targeted Paraguay. Anatsa Trojan reappeared, DoNot targeted a European ministry. Academics sneaked prompt injections into papers.

Abnormal AI CEO Evan Reiser on Behavioral Anomalies, Personalized Phishing Training
Abnormal AI is rolling out behavior-driven AI tools that automate phishing awareness and data reporting. Co-founder and CEO Evan Reiser says the platform reflects a shift away from generic campaigns and manual dashboards toward contextual, real-time defense.

Also: Winkle Abduction Sentencing and Crypto Theft Rising
This week, uncovering 40 malicious crypto Firefox extensions, three sentenced in a Belgium court for crypto kidnapping, the rise of crypto theft. The U.S. Secret Service is a huge crypto custodian, and prosecutors claw back funds pilfered by a fake presidential inaugural committee.

Island CEO Mike Fey on Drivers for SASE, Identity Features in Enterprise Browser
Island co-founder and CEO Mike Fey outlines how the enterprise browser is evolving through AI, SASE and hyperscaler investments to enhance governance, reduce backhaul traffic and support secure access across diverse industries such as healthcare and finance.

Phishing Emails Disguise Malware as Contract Files
A Russian cybersecurity company is warning that hackers are targeting Russia's industrial sector using a previously undocumented spyware, reeling them in with contract-themed emails lures. Kaspersky dubbed the spyware "Batavia." but doesn't attribute the campaign to a threat actor.

Impersonation Hoax Leverages Top Officials' Known Use of Commercial Messaging App
Security analysts tell Information Security Media Group more impersonation scams fueled by artificial intelligence - like the recent one involving Secretary of State Marco Rubio - may increasingly target top U.S. officials if the government continues failing to enforce strict security protocols.

Cybercrime gang Scattered Spider is the top suspect in several recent cyberattacks in the U.S. insurance sector, and it's likely that threat actors could still be lurking in other insurers' IT environments, said Peter McMurtrie of consulting firm West Monroe.

Fortinet Report Says OT Defenses Are Maturing, Aided by AI Tools
Fortinet’s 2025 OT cybersecurity report reveals a shift in risk ownership to the CISO’s office, with increasing maturity, AI-driven defense and rising regulatory pressure shaping how organizations defend operational technology environments.

Ironscales Founder, CEO Eyal Benishti Pushes to Expand AI Protection Beyond Email
Deepfake phishing is escalating as cybercriminals deploy agentic AI to automate everything from data collection to social engineering. Ironscales founder and CEO Eyal Benishti outlines how phishing is targeting communication platforms beyond email, and how defenders can keep up.

Research Shows How Large Language Models Fake Conceptual Mastery
MIT, Harvard and University of Chicago researchers say models suffer from "potemkin understanding," referring to an illusion where models ace conceptual tests but fail real-world application. Their paper warns this undermines benchmarks and points to gaps in genuine AI comprehension.

Cybersecurity Compliance Vendor A-Lign Plans Global Expansion With Backing From Hg
Cybersecurity compliance firm A-LIGN has received a majority investment from Hg, a top tech-focused private equity firm. The deal supports A-LIGN's global ambitions to deliver SOC 2 and other compliance audits and leverages Hg’s expertise in scaling data and AI-driven services.

China's Hack-For-Hire Scene Disgorges Another Leak
The Chinese nation-state threat actor tracked as Salt Typhoon is operated by a clutch of private firms whose clients include multiple Chinese government agencies, finds analysis of leaked data by Spy Cloud. Researchers found a spreadsheet listing buyers, sellers and financial transaction details.

Crypto Defense, Data Centers, Monitoring Systems Strain Global Energy Use
As security monitoring, crypto mining protection and data centers fuel cybersecurity's energy demands, new regulations, such as Australia's National Greenhouse and Energy Reporting Act 2007, signal a global shift toward holding the industry accountable for its environmental impact.

Firms Adding Chief AI Officer to C-Suite to Lead Integration, Value Creation
Generative AI is now a top budget priority over security for many enterprises, but AI talent gap continues to hinder progress on AI projects. A recent AWS report recommends redefining AI leadership roles and strengthening third-party partnerships to unlock gen AI's full potential.

Shanghai Man Tied to Beijing-Backed Silk Typhoon Cyberespionage Attacks
Italian police arrested Chinese national Xu Zewei, 33, based on a U.S. arrest warrant charging the Shanghai resident with participating in "Silk Typhoon" cyberespionage attacks, including targeting novel coronavirus vaccine development information from the University of Texas.

Officials Look for Positive PR Stories as Putin's War Drags On
Russian authorities regularly trumpet the arrest and sentencing of citizens who offer hacking support to Ukrainian forces. Experts say the extent to which official crime reports can be trusted remains unclear, especially as officials need to look tough on the "Ukrainian threat."