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AI Dependency Attack Reportedly Exposes Data and Source Code
A LiteLLM supply-chain compromise enabled attackers to harvest credentials and access internal environments at scale at Mercor. The firm was the first to confirm a LiteLLM breach, and researchers are warning about growing AI system exposure and limited visibility.

Report Reveals Growing Trend of Fraudsters Intercepting SMS-Based Verification
Financial institutions have historically relied on one-time passcodes as a primary authentication control for their accountholders. But OTP verification is less reliable as fraudsters increasingly exploit SMS-based verification weaknesses to carry out account takeover and payment fraud schemes.

It's Time for CIOs to Rethink Business Continuity Plans and Cloud Resources
The targeting of commercial cloud data centers in the Middle East marks a turning point for CIOs and enterprise leaders. Geopolitics and military conflicts are definite threats to vital technology infrastructure. The question is: How well-prepared and resilient is your enterprise?

Panel Calls for Modernization of Recruiting Processes for About 225,000 Cyber Jobs
The Pentagon's years-long cyber workforce overhaul needs a Department of Defense-wide talent management system to ensure interoperability and consistency across the entire DoD enterprise, said the CIOs of four military services at a panel last week.

AI-Native Platform Targets Identity Governance Gaps and Automation
Linx Security secured $50 million to expand its artificial intelligence-driven identity platform as enterprises struggle with identity-based attacks. CEO Israel Duanis highlights real-time visibility automation and risk reduction as key to addressing growing threats from AI agents.

Also, Lloyds Data Leak, Dutch Treasury Breach, Citrix Bug Exploit, Pay2Key Activity
This week, Lloyds data leak hits 450K, Dutch treasury breach, Citrix flaw exploited, Iran-linked ransomware ops, TrueConf zero-day, Russian fraud ring sentenced, Romania targeted, patch gaps persist, and U.S. hospital breach affects 257K.

Also: Chinese Firms Indicted in Crypto-Linked Fentanyl Supply Case
This week, charges filed in Uranium Finance hack, indictment of Chinese firms in fentanyl supply case, a class action lawsuit against Nvidia, Drift Protocol exploit, KuCoin operational barriers in the United States and a U.K. sanction filed against Xinbi.

A Disorienting Future: Rapid Pace of Change and AI Agents in the Hands of Attackers
Reflecting the current state of cybersecurity, uncertainty dominated at this year's annual RSAC Conference in San Francisco, as advances in artificial intelligence, including agentic artificial intelligence, now pose risks experts never saw coming. It's a disorientating state of affairs for all involved.

Anthropic's Mythos Leak Points to Pattern of Failures, Sloppy Practices at AI Labs
Anthropic accidentally exposed its most powerful unreleased AI model to compromise, and days later shipped its flagship coding tool's full source code without meaning to. Meta, Microsoft and OpenAI have each had comparable moments. Questions linger about the integrity of third-party AI tools.

Expect Fallout After Remote Access Trojan Added to Popular JavaScript NPM Package
A supply-chain attack backdoored versions of Axios, a popular JavaScript library that's present in many different software packages, to distribute a cross-platform, remote access Trojan. Identifying the full fallout from the attack could take some time, experts warned.

Moves Reverse Biden-Era Changes; National Coordinator Returns to Health IT Policy
The 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.

Enterprises Seek Multi-Agent Systems to Govern LLM-Generated Code at Scale
As AI-generated code surges, New York-based startup Qodo has raised $70 million in Series B funding to address governance and quality challenges. The company is building multi-agent systems to review code, enforce standards and reduce risk in enterprise software development.

Fallout Continues Over Leaked Claude Source Code Incident
The tension between AI developers and cybersecurity vendors is becoming increasingly apparent as new models show sudden leaps in capability - and AI firm Anthropic, for better or for worse, finds itself at the center of the drama.

AI is accelerating cyberattacks faster than organizations can prioritize them, forcing security leaders to rethink how they define and defend against “emerging threats.” Most modern threats aren’t new, just amplified by AI, says Akamai's Brent Maynard.

Stan Duijf of Dutch National Police on Collaborative Law Enforcement
Global law enforcement agencies are shifting tactics to disrupt ransomware earlier in the attack chain. Stan Duijf of the Dutch National Police describes how collaboration, threat intelligence and cryptocurrency seizures are making cybercrime more costly and less effective for criminals.

UK NCSC's Richard Horne on Strengthening Cyber Defense and Incident Response
Cyber risk is rising as digital dependence grows and threat actors expand. NCSC CEO Richard Horne outlines why leaders must treat cybersecurity as mission-critical, strengthen their resilience, and align defense efforts to counter ransomware, AI-driven threats, and supply chain attacks.

CareCloud: Intruder Accessed Systems for 8 Hours, Still Assessing Extent of Breach
Electronic 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.

Officials Aim to Head Off Calls for New Cyber Force Using Existing CyberCom Powers
For the private sector, the cyber talent gap is an HR issue. But for the U.S. military, it's a looming strategic crisis, the Pentagon's top cyber official said this week. "We cannot afford to continue this way," said Assistant Secretary of War for Cyber Policy Katherine Sutton.

Experts Cite Prepositioning Risk in Iranian Cyber Operations Amid Escalating War
Warnings from Iranian-linked hacking groups targeting U.S. water systems highlight a growing risk of prepositioned cyber access and rapid attack activation, analysts told ISMG, as federal defenders confront rising geopolitical tensions and operational strain across critical infrastructure sectors.