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Hackers Shift From Disrupting to Destroying Critical Infrastructure

 

Cyberattacks on operational technology (OT) systems have shifted from data theft and ransom demands toward outright physical destruction, according to experts speaking at the Black Hat USA cybersecurity conference in Las Vegas. This trend poses a serious threat to critical infrastructure operators, many of whom are already underfunded and understaffed while managing aging industrial equipment amid heightened geopolitical tension. 

From espionage to physical sabotage 

Cheri Benedict, a cybersecurity and supply chain adviser at the White House's Office of the Federal Chief Information Officer, said OT attacks are increasingly targeting physical operations rather than just data. Matthew Rogers, the operational technology cybersecurity lead at CISA, echoed this concern, noting a "real desire and willingness to cause this impact at scale". Recent Iran-linked intrusions into U.S. water systems have failed to compromise drinking water safety, but Iran has also worked to disable safety monitoring systems across water and other sectors—an escalation Rogers called "what should actually scare you". 

A CISA advisory updated on July 22 revealed that Iran-linked actors planted malware on a programmable logic controller that overrode instruction sets responsible for maintaining safe operating parameters. This tactic traces back to 2017, when malware called Triton disabled safety equipment at a Saudi Arabian power plant, marking one of the earliest known examples of this attack style. Because operators rarely inspect PLCs unless they malfunction, such malware can remain undetected for years, making each compromised controller what Rogers described as "a ticking time bomb". 

Wipers replace ransomware 

Neal Pollard, a partner at consulting firm Control Risks, said wiper malware has become more prevalent than ransomware in some cases, reflecting "a change in intent and understanding" among threat actors even as overall attack volume stays consistent. Rogers added that hackers are increasingly deploying code designed to permanently cripple industrial control systems, warning that the U.S. lacks sufficient replacement equipment to recover at scale from such destruction. 

The panel emphasized that longstanding weaknesses—default passwords, unpatchable legacy devices, and unencrypted communications—remain the primary entry points for attackers. Vu Nguyen, CISO at the Department of Justice, noted that isolated OT environments with limited connectivity make log collection and incident response especially difficult. Notably, Rogers said none of the recent malicious activity relied on a single CVE or advanced AI tools, since OT systems remain so vulnerable that sophisticated exploits simply aren't necessary.

Salesforce’s Headless 360 Pushes Enterprise Software Beyond the Browser

 




Salesforce is preparing for a future in which employees may no longer need to open Salesforce to use it.

At TDX 2026, CEO Marc Benioff described the shift with the line, “Our API is the UI,” as the company introduced Headless 360. The platform makes Salesforce capabilities, including Customer 360, Agentforce and Slack, accessible through APIs, Model Context Protocol (MCP) tools and command-line interfaces (CLI), allowing applications and AI agents to interact with Salesforce without relying on its traditional browser interface. Salesforce says its Headless 360 MCP server can support operations including querying and updating records, managing permissions, working with Apex and interacting with platform events.

The change challenges a model Salesforce spent decades building: software operated primarily by humans through screens and sold largely through user-based licensing.

If an AI agent performs the work, the traditional per-seat model becomes harder to justify. An agent does not need a dashboard or training programme in the same way an employee does. It needs authenticated access to data, tools and workflows.

Salesforce is already experimenting with consumption-based pricing. Its Agentforce model includes Flex Credits, which customers can use for agent actions, alongside conversation-based and user-based pricing. Salesforce lists 100,000 Flex Credits at $500, while certain Agentforce services can also be priced according to successful outcomes.

That transition could also affect the Salesforce consulting ecosystem. Implementation work historically centred on configuring screens, workflows and processes for employees. As agents take over more workflows, organizations may instead spend more on data quality, permissions, API architecture, agent governance and testing.

Salesforce has a reason to disrupt itself before competitors do.

AI-native platforms can be designed around APIs and autonomous agents without inheriting the assumptions of traditional enterprise software. By opening Salesforce to agents, the company is betting that its strongest asset is not the interface but the business data, permissions and workflows underneath it.

That makes governance a central part of the strategy.

Salesforce's Einstein Trust Layer is designed to keep Agentforce grounded in enterprise data while respecting existing access controls. Salesforce describes capabilities including dynamic grounding, secure data retrieval, auditability and zero-data-retention arrangements with external model providers.

But making Salesforce accessible through MCP and external AI systems creates another risk: the company no longer fully controls the interface through which users interact with its platform.

A sales manager could eventually ask an external AI agent to analyse pipeline data, update opportunities, trigger Salesforce workflows and coordinate information across Slack, Salesforce and other enterprise systems. The AI layer becomes the operating interface while Salesforce functions as the underlying system of record.

MCP also introduces new security considerations. Research has identified threats including tool poisoning and prompt injection, where malicious instructions embedded in tools or outputs can influence an agent's behaviour. The U.S. National Security Agency has similarly warned about cascading prompt-injection risks in MCP environments, where one agent's output can become another system's input.

The pricing problem remains unresolved as well. Agent actions vary enormously in complexity. Updating a contact record is not equivalent to autonomously completing a sales renewal, making a simple “pay per action” model difficult to align with business value.

Salesforce's Headless 360 strategy therefore represents more than a move away from browsers. It is a test of what enterprise software is worth when humans are no longer its primary operators.

Interfaces can be replaced. What is harder to replace is trusted business data, permission architecture, proprietary workflows and the infrastructure required to let autonomous systems act safely.

Salesforce is betting that those foundations will remain valuable.

The risk is that by making them accessible to external agents, it could also help those agents become the new interface between enterprises and Salesforce itself.

Flock Cameras Spark Debate Over Surveillance and Civil Liberties


With Flock Safety operating one of the largest networks of automatic license plate readers (ALPRs), automatic license plate readers (ALPRs) are becoming more common across the United States as part of surveillance infrastructure. As a result of their rapid expansion, privacy advocates have expressed concern that such systems may create detailed records of vehicle movements in communities across the nation. 

How Flock Cameras Work

While traffic enforcement cameras usually focus on specific violations, Flock cameras photograph passing vehicles and translate the images into searchable records. License plates, locations, times, make, model, color and body type can all be included in records, along with distinguishing features such as bumper stickers or visible damage that can assist investigators in finding a particular vehicle or based on broader descriptions.

Watchlists are also available for cars associated with stolen vehicles, missing people, or criminal investigations, triggering alerts in the event that a potential match is detected. It is possible for participating law enforcement agencies to search the data of other agencies, depending on how their networks are configured. 

Why Police Departments Use Flock Cameras

A flock camera is a compact device that captures passing vehicles and records information such as license plate numbers, vehicle make and model, color, and location. Throughout the course of the investigation, data will be stored in a searchable system that will allow participating law enforcement agencies and other authorized organizations to access the system, potentially enabling the tracking of individual vehicle movements. 

The company claims that its technology does not utilize facial recognition and that customers can manage access to collected data through controls. However, given the extent to which its network is deployed, concerns have been raised about the manner in which vehicle data is shared, retained, and utilized. Approximately 120,000 cameras are now deployed across 49 states in the company's system, which is deployed by police departments, businesses, schools and homeowner associations in more than 6,000 communities. 

With the capabilities of the technology, more than just a license plate can be captured, as the records may include distinctive vehicle characteristics such as bumper stickers, dents, and other visible features. With the proliferation of surveillance cameras along public roads as well as private properties, questions regarding data access, civil liberties, and data privacy are becoming increasingly difficult to separate from the broader discussion surrounding public safety technology. 

Why Flock Cameras Are Controversial

It is not just about a single camera recording the movement of a vehicle that is of concern, but the network surrounding it at large. By using a large number of cameras, investigators may be able to reconstruct patterns of movement involving individuals who are not suspected of committing crimes by repeating recordings of the same vehicle at various times and locations. 

The use of vehicle-location data has also been criticized by privacy advocates, who have noted that it may reveal visits to sensitive areas, such as health facilities, protest sites, and churches. Searches based on historic ALPR records are still subject to legal uncertainty, including when warrants are required. Flock rejects the characterization that its system constitutes mass surveillance, however. 

Data Sharing Raises Additional Concerns

In addition to bringing Flock into the debate about immigration enforcement, data sharing has brought Flock into the public eye. According to a 2025 review of search logs, there were more than 4,000 Flock searches conducted by local and state police at the request of federal authorities, including searches that may have been related to immigration enforcement. 

An investigation conducted in 2026 revealed that outside police departments searched school cameras. It has been contested that the federal government has direct access to Flock's cameras, claiming it does not have a contract with U.S. Immigration and Customs Enforcement and does not have the right to access its data or cameras directly. 

Unauthorized Access and Personal Misuse 

In addition to allegations of misuse, there have been 28 documented cases in which officers are alleged to have abused license plate reader systems to monitor spouses, former spouses, colleagues, or romantic interests. 

Another instance occurred in July 2026 when North Carolina authorities arrested a Charlotte-Mecklenburg police officer who was accused of conducting an unauthorized license plate search for a non-law enforcement purpose using Flock and the state criminal justice database. 

Flock Cameras Can Also Produce False Alerts

If surveillance data is inaccurate, it can also pose problems. During June 2026, a driver in Minnesota was stopped by Flock alerts triggered by license plates that were similar to license plates reported stolen in another state. According to Flock, license plate translations are sometimes incomplete or inaccurate, which can result in negative consequences when automated alerts are used to influence police conduct. 

Communities Push Back Against Flock Surveillance

Over 80 municipalities have reported terminating or refusing to renew their Flock agreements, while Washington has imposed restrictions on how license plate data can be collected, searched, and shared as a result of the debate. 

Opposition to the technology has gone beyond policy debates. There have been at least 33 incidents in which Flock cameras have been damaged or destroyed, including cases where cameras have been painted, blocked, cut down, or burned in 23 states.

Why Andy Rubin’s Essential Phone Failed Despite Fixing Android’s Biggest Problems

 

Andy Rubin spent ten years creating Android before launching Essential Products, which was based on the idea that Android phones had too many compromises, such as bloatware, software skins, slow updates, and accessories that became obsolete when new hardware was released. Essential launched the PH-1 in August 2017, which had near-stock Android, premium materials, fast updates, and a display that extended to the edges. 

Rubin had co-founded Android Inc. with Rich Miner, Nick Sears, and Chris White in 2003, and Google bought the company in 2005 for $50 million. Rubin continued to lead Android’s development for the next eight years. The PH-1 was meant to overcome some of the shortcomings of the open-source platform. It had Android 7.1.1 and was expected to receive two major Android upgrades and three years of monthly security updates. 

Essential delivered on Android 9 and Android 10, the same day as Google’s Pixel phones. The hardware was also supposed to overcome Android’s challenges. The phone had a titanium frame and a ceramic back, and it was among the first smartphones to have a notch. It had magnetic pins on the back, which were supposed to allow accessories to snap onto the phone instead of using a USB-C port. Essential announced a 360 camera and an audio adapter, but the ecosystem was never realized.

The launch of the PH-1 did not go well for Essential. The company announced that the phone would be available for purchase within 30 days, but the first units were not shipped until August 25 th , nearly two months after launch. The camera was also heavily criticized, and the $699 price was permanently reduced to $499 only two months after its launch. The only US carrier that sold the Essential PH-1 was Sprint. Essential’s sales were also underwhelming despite the star power of Andy Rubin.

A $300 million funding round in 2017 valued Essential at around $1.2 billion, but Bloomberg revealed that Essential had only sold 150,000 phones by May 2018. In October 2018, The New York Times revealed that Google had investigated a sexual harassment complaint against Rubin and found the allegations credible. Google approved a $90 million exit package for Rubin, but he denied the allegations. 

The report received a negative reaction from many Google employees, and Rubin’s reputation became a liability for Essential. Essential also announced Project Gem, a tall and thin smartphone that was designed to be used with one hand. The phone never reached the market, and Essential filed for bankruptcy on February 12 th , 2020, after realizing that there was no viable way to bring the phone to the market. The PH-1 was a lesson that high-end materials, limited software, and fast updates were not enough for a struggling smartphone brand to survive. 

The phone’s troubled launch, limited accessories, poor camera, and lack of network support hindered its chances, and Essential was unable to turn it around. The company realized that its ideas were not scalable enough to sustain a smartphone manufacturer, and it filed for bankruptcy later in 2020.

AI Sandbox Escape in Microsoft Copilot Raises New Concerns Over AI Agent Security

 

Security researchers are increasingly examining whether artificial intelligence can do more than accelerate existing cyberattacks and potentially develop entirely new methods of exploitation. A recently uncovered AI sandbox escape in Microsoft Copilot offers one of the clearest indications that AI environments could be exploited to reach systems and data beyond their intended boundaries.

Joe Hladik, head of Zero Labs, the threat research division of Rubrik Inc., has spent years studying backup data, an area he believes remains relatively overlooked by the cybersecurity industry. This year, his team expanded its research to examine how organizations and employees are using AI assistants, beginning with Microsoft Copilot, which is used by around 20 million people and approximately 90% of Fortune 500 companies.

“No one’s looking at backup data,” Hladik said. “We found it to be a viable place to find actual intelligence to act upon.”

Hladik discussed the research with Krista Case during Black Hat USA in an interview broadcast by theCUBE, SiliconANGLE Media’s livestreaming studio. The conversation focused on Rubrik Zero Labs’ discovery involving Microsoft Copilot and the broader security implications for AI-powered agents.

How the Microsoft Copilot sandbox escape worked

Rubrik Zero Labs discovered the vulnerability in February and subsequently followed responsible disclosure procedures by notifying Microsoft. According to Hladik, Microsoft addressed the specific vulnerability by the middle of March.

Although the particular flaw has been patched, Hladik said the research demonstrated a broader technique that could potentially be relevant to other AI copilots. The method involved escaping Copilot’s isolated environment and reaching Azure’s backend infrastructure.

Researcher Ori Lahav is presenting the detailed findings at Black Hat USA.

“[That] would allow you to get command and control of probably hundreds, thousands, or much more, depending on the volume of what exists within that tenant of users’ files, SharePoint files, OneDrive, whatever,” Hladik said. “It’s a major, major find.”

The discovery also highlights the potential scale of an AI-related security incident. If an attacker were able to move beyond an AI assistant’s sandbox, access to organizational resources could potentially extend across files and other information stored within an enterprise environment.

Organizations still lack visibility into AI agents

The Copilot discovery comes as businesses rapidly deploy AI agents without necessarily having complete visibility into where those systems operate or what they can access.

Research from Rubrik Zero Labs found that only 23% of security leaders have complete visibility into the AI agents operating within their organizations. Rubrik is attempting to address this challenge through new AI agent governance capabilities introduced this week.

Hladik compared AI agents with technologies security teams have encountered before, arguing that their underlying architecture is not entirely unfamiliar.

“Agents are just bots with models,” Hladik said. “They’re a bot that asks a model, and then the model will tell them what to do, and then they act. It’s new, it’s cool, but at the same time, I’ve seen this before.”

The findings underscore a growing challenge for organizations deploying AI: securing not only the models themselves but also thwe environments, permissions, data and connected services that AI agents can interact with. As businesses increasingly integrate AI assistants into everyday workflows, vulnerabilities that allow these systems to escape their intended boundaries could create significant new attack surfaces.


Roblox Privacy System Tracks Data Across Hundreds of Systems as Platform Faces Child Safety Concerns

 

Roblox announces new federated central data coordination, but the system also acts as a reminder of the amount of data the company stores about its users and their activity on the platform As the platform boasts more than 132 million daily users, half of which are under the age of 18, Roblox has a large-scale privacy and safety issue. 

At the Black Hat security conference, Roblox engineering manager Hao Zhang and principal privacy software engineer Yiwen Luo spoke about the company’s approach to operational privacy and data deletion. One user request to delete data could trigger over 600 subtasks that need to be tackled by different teams and systems. According to Zhang, the entire system is complex and requires close collaboration between hundreds of systems; one of the biggest challenges was figuring out where exactly the data about the user is stored. 

Luo added that per the privacy policy, Roblox collects and stores most information about the user for as long as the account is active on the platform. The topics range from chat content, audio and video data, device information, and demography, to email and phone number, government ID and selfie for voice chat and other restricted content, payment information, and username, date of birth, and password. Roblox has experienced a 3.5X growth in year-over-year privacy-related user data requests. 

The new federated management system aims to handle such requests in a more efficient system-wide manner across the company’s systems and data platforms, as well as the third-party ones storing user data. Roblox is using artificial intelligence and other technologies to improve moderation, safety, and privacy on its platform. The company’s system, called Sentinel, is designed to detect harmful content and messages using machine learning algorithms. 

Roblox also relies on a combination of human moderation and automated tools to review and filter game catalogs, chat content, and other materials. It implements preventive algorithms and age-estimation solutions as a part of its safety measures. However, the growing use of tracking systems, tools, and the controversy around the age-verification laws in over half of the U.S. states have sparked debates regarding data privacy and potential risks to users’ safety and data privacy. 

The expansion of Roblox’s operations has also led to increased scrutiny from regulators. After the games containing violent and extremist content were leaked, and the lawsuits regarding the company’s alleged role in facilitating predation and grooming were filed, Roblox’s moderation capabilities and safety tools have come under the magnifying glass. The Roblox Sentinel documentation reveals that roughly 1,200 potential child-endangerment reports had been reviewed.

Still, there was no information about how many of those had been confirmed as actual cases. While the new federated security system allows Roblox to have more visibility and control over where the data about its users is stored and how does the company handles data deletion requests, its transparency around the matter is limited by the amount of data the company stores about its users and the extent to which it monitors its platforms.

Meta’s Muse Code: Affordable AI Coding with a Privacy Catch

 

Meta, the corporate umbrella behind Facebook, Instagram, and WhatsApp, has officially launched Muse Code, a new artificial intelligence system designed to assist developers in writing software. Announced by CEO Mark Zuckerberg via an X post, Muse Code functions as a “terminal coding agent” capable of handling complete software engineering tasks—from planning changes and writing code to validating results. This move reinforces Meta’s continued investment in AI, even as its public image remains tied to its 2021 metaverse pivot. 

What sets Muse Code apart is its ability to maintain context across a developer’s session. According to Zuckerberg, the tool runs specialized background agents that stay active throughout, learning a coder’s habits and preferred patterns. This means if a developer has previously generated a specific code fragment using Muse, the system remembers it for future reuse. Additionally, Muse dynamically allocates tasks: for complex requests, it “fans out” work to separate sub-agents operating in parallel within isolated worktrees, ensuring the original codebase remains untouched during experimentation. 

Despite its technical sophistication and cost advantage, Muse Code comes with a notable caveat: privacy. As with many AI-driven platforms, the tool’s ability to learn from user behavior and retain session data raises questions about how developer information is stored, used, and potentially shared. While Meta has not disclosed full details on data handling policies for Muse Code, the trade-off between affordability and privacy remains a critical consideration for enterprises and individual developers alike. 

Muse Code arrives amid Meta’s aggressive push into AI infrastructure and tooling. Zuckerberg has previously stated ambitions for AI to write most of Meta’s code within 12 to 18 months, and the company has reported a 30% rise in engineer productivity since early 2025, largely attributed to AI coding assistants. This launch also coincides with similar moves by competitors—Google recently unveiled Gemini 3.7 Flash, a low-cost AI model for coding workflows—highlighting a growing industry race to democratize AI-assisted development.

For developers, Muse Code represents both opportunity and caution. Its ability to reduce repetitive tasks, preserve work mid-crash, and scale complex projects could significantly boost productivity. However, the privacy implications underscore the need for transparent data policies and robust security measures. As AI coding tools become more prevalent, the balance between efficiency, cost, and data sovereignty will likely shape the next chapter of software development.

Supreme Court to Hear Case Over 1.5 Lakh Medical Records Breach





The Supreme Court has issued notice on a petition seeking a Central Bureau of Investigation (CBI) probe into an alleged cyberattack that Vitraya Technologies claims resulted in the theft of medical, insurance and other sensitive personal information belonging to nearly 1.5 lakh Indian citizens.

A three-judge bench comprising Chief Justice of India Surya Kant and Justices Joymalya Bagchi and V Mohana agreed to examine the petition filed by Vitraya Technologies Pvt Ltd, a health-tech company that operates a technology platform for automating and settling health insurance claims.

The case places the alleged compromise of highly sensitive healthcare information alongside questions about the adequacy of the police investigation and the protection of informational privacy. The company has approached the court under Article 32 of the Constitution, arguing that the alleged breach has implications for the fundamental right to privacy protected under Article 21.

During the hearing, senior advocate K Parameshwar, appearing for Vitraya, told the court that the alleged intrusion affected data across six states and that the company had been approaching authorities since the incident was reported in 2025.

Parameshwar said Vitraya submitted its initial complaint in March 2025 but that an FIR was not registered until August 29, 2025. He also questioned why the case continued to name unknown persons despite the company claiming that it had supplied investigators with technical information concerning the suspected intrusion.

The counsel told the bench that Vitraya had also provided information concerning a server in Singapore to which the company's investigation allegedly traced medical records belonging to almost 1.5 lakh Indians.

The petition seeks transfer of the investigation to the CBI. In the alternative, Vitraya has asked the Supreme Court to order a court-monitored Special Investigation Team (SIT).


Alleged attack began with unauthorised access

According to the petition, Vitraya detected what it described as a coordinated cyberattack in February 2025.

The alleged activity included repeated brute-force login attempts against the company's systems, unauthorised access to its digital infrastructure, bulk downloading of confidential records and the extraction of sensitive customer information.

The data allegedly exposed in the incident includes medical records, health insurance claim information, Aadhaar-linked details and other personally identifiable information.

The combination of medical information with identity and insurance data makes the alleged incident particularly sensitive. Medical records can contain information about an individual's diagnoses, treatment history and health conditions, while Aadhaar-linked information can connect those records to an identifiable individual.

Vitraya's own platform is designed to handle this type of information. The company says its technology automates health insurance claims using artificial intelligence, machine learning, medical natural-language processing and blockchain-based smart contracts. It describes its platform as being used by more than 6,000 hospitals and says it processes approximately 10 million claims worth around $2 billion annually.

The company's technology infrastructure therefore sits within a data-intensive part of the healthcare and insurance ecosystem, where information can move between healthcare providers, insurers and technology platforms during the claims process.


Vitraya alleges attack was linked to rival companies

Following an internal forensic investigation, Vitraya claims that its security team identified suspicious IP addresses, server activity and other digital footprints that it says were associated with Remedinet Technologies Pvt Ltd and IHX Pvt Ltd.

The petition further alleges that these entities were connected to Bessemer Venture Partners and that the alleged activity involved Bessemer, Medi Assist, Perfios Software Solutions Pvt Ltd and other entities described by Vitraya as competitors.

These allegations have not been established by the Supreme Court. The companies named in the petition should not be treated as responsible for the breach unless an investigation establishes their involvement.

Vitraya says its forensic examination produced technical material that it subsequently supplied to investigators. The company claims this included server information, IP addresses, technical logs, details concerning the alleged actors and other documentary evidence.

The company approached Punjab's cybercrime authorities on March 5, 2025, according to the petition.

However, Vitraya alleges that its repeated representations and cooperation during the preliminary inquiry did not result in an FIR for almost six months.

The FIR was ultimately registered on August 29, 2025, at the Punjab State Cyber Crime Police Station in SAS Nagar. According to the petition, the case was registered under Sections 66 and 66B of the Information Technology Act and against unknown persons.

Under the IT Act, Section 66 addresses computer-related offences committed dishonestly or fraudulently, while Section 66B deals with dishonestly receiving or retaining stolen computer resources or communication devices while knowing, or having reason to believe, that they are stolen.

Vitraya has argued that the provisions used in the FIR do not adequately reflect the scale and complexity of the alleged incident. The company has also questioned why the FIR continued to identify the suspects as unknown despite the technical material it says had already been provided to police.


Company questions progress of investigation

The petition alleges that the investigation has not involved sufficient forensic examination or preservation of the digital evidence relevant to the alleged attack.

Vitraya claims that investigators have not undertaken substantial measures such as examining or seizing relevant digital infrastructure, preserving electronic evidence or conducting custodial interrogation of suspected individuals.

The company argues that these alleged shortcomings are particularly important because the incident involves systems and entities operating across multiple jurisdictions.

According to Vitraya, the alleged breach spans six states, involves multiple corporate entities and includes digital infrastructure located outside India. The company has specifically referred to a Singapore-based server where it alleges that the compromised medical information was transferred.

The cross-border element could complicate an investigation because digital evidence may be distributed across different jurisdictions, requiring investigators to establish where systems and data were located, identify the parties controlling those systems and preserve evidence before it can be deleted, altered or moved.

The company therefore argues that the investigation requires an agency with the technical capacity and jurisdictional reach to examine the alleged attack.


Privacy concerns form central part of petition

Vitraya has also framed the alleged breach as a constitutional privacy issue rather than solely a dispute between competing businesses.

The petition relies on the Supreme Court's 2017 judgment in Justice K.S. Puttaswamy (Retd.) v. Union of India, in which a nine-judge Constitution Bench recognised privacy as a fundamental right protected under Article 21. The court held that privacy is intrinsic to the protection of life and personal liberty.

That constitutional framework is relevant to a case involving medical information because the alleged data does not merely concern commercial records. It potentially connects individuals with information about their health, treatment and insurance claims.

The petition consequently argues that the alleged unauthorised disclosure of such information affects citizens' informational privacy and digital autonomy.


India's data protection framework adds another layer

The case also arrives as India moves toward implementing its newer personal-data protection regime.

The Digital Personal Data Protection Act, 2023 establishes a framework governing the processing of digital personal data and creates obligations for organisations handling such information. The Act also provides for a Data Protection Board of India and includes provisions addressing data-fiduciary obligations, individual rights, grievance redressal and penalties.

However, the timing matters. The DPDP framework is being implemented in phases. The government notified the DPDP Rules in November 2025, while several substantive provisions of the Act and Rules are scheduled to take effect 18 months after the notification.

The alleged Vitraya intrusion was identified in February 2025, before those later implementation stages. The investigation therefore cannot simply be described as a test of the fully operational DPDP regime. Instead, the case sits at the intersection of India's existing cybercrime laws, constitutional privacy protections and the country's transition toward a dedicated personal-data protection framework.

Separately, CERT-In's directions under the Information Technology Act identify unauthorised access to IT systems or data, data breaches and data leaks among cybersecurity incidents that covered organisations are required to report.


Supreme Court seeks response on proposed CBI investigation

The Supreme Court's immediate action is limited to issuing notice on the petition. The court has not made a finding that the alleged breach occurred in the manner claimed by Vitraya, nor has it established the involvement of the companies named in the petition.

The petitioner is asking the court to transfer the investigation to the CBI because it considers the existing police investigation inadequate.

Alternatively, Vitraya has proposed a court-monitored SIT involving agencies with relevant cybersecurity expertise, including the CBI and CERT-In.

The company's argument is that the combination of alleged cross-state activity, foreign-hosted infrastructure, sensitive medical information, multiple corporate entities and digital forensic evidence makes the case unsuitable for a routine investigation.

The Supreme Court's notice now places the investigation and the requested transfer before the respondents, including the Union government, the CBI and the Punjab government.

The case could therefore become an important test of how Indian authorities investigate alleged large-scale breaches involving healthcare data, cross-border infrastructure and competing corporate entities, particularly when the affected information includes medical records and government-linked identifiers.

For now, however, the allegations remain subject to investigation and judicial consideration.

AI-Assisted Hacking Campaign Exposes Security Risks Across 14 Companies


Cyberattacks have been made more effective and more accessible due to artificial intelligence, but a recent investigation has demonstrated just how far that accessibility can extend. According to OALABS cybersecurity researchers, an attacker with limited technical expertise compromised at least 14 organizations using Anthropic's Claude Code and OpenAI's Codex to obtain sensitive information. 

Upon obtaining the attacker’s entire working directory from a compromised third-party server, researchers began investigating. The directory contains more than 1,000 sessions involving the two AI coding agents, including prompts, tool activity, and other evidence of the attacker’s activities. As indicated by the logs, the attacker frequently drew short, vague, poorly written prompts, while the artificial intelligence agents handled the vast majority of the technical tasks. 

The investigation of exposed services, identification of potential vulnerabilities, development and testing of exploit code, establishment of access, and data collection were conducted using Claude Code and Codex.

According to OALABS, the case demonstrates a growing concern for cybersecurity teams: sophisticated technical knowledge is no longer necessary to complete each stage of an intrusion when autonomous artificial intelligence coding agents can fill crucial gaps in the capabilities of an inexperienced operator. 

AI Guardrails Failed Under Simple Deception

A number of requests were not accepted without resistance by the AI systems According to the logs, nine requests were flagged as policy violations by Claude Code, while a warning was raised by Codex. However, the attacker managed to circumvent the limitations by framing the requests as part of an authorized red-team exercise. 

When malicious activity was presented as legitimate security testing, the attacker was able to persuade the models to complete tasks that would otherwise raise stronger safeguards. Once the attacker provided Claude with a list of target addresses, he instructed him to conduct reconnaissance. After conducting most of the work normally required by skilled security operators, the agent handled them. The AI enabled the organisation of the results by analysing exposed services, researching known vulnerabilities, developing exploit code, and retrieving files from compromised systems.

The AI also provided an analysis of the results for a number of victims by providing reports describing the compromised systems and the information obtained. In another meeting, Claude was requested by the attacker to evaluate the victims based on their potential to pay a ransom. The model then presented possible methods of monetizing the stolen access. 

Poor Operational Security Exposed the Attacker

Even though the attacker successfully compromised several organizations, he failed to demonstrate sufficient sophistication in protecting his own identity. The infrastructure used for the operation was not owned by him, but rather, a compromised server provided the AI tools. This decision ultimately led to the discovery of the intrusion and the recovery of the working directory by the server's owner. 

A second feature of the attacker's Claude installation was that he obtained it from another developer rather than setting it up himself. The recovered logs contained a conversation during which the attacker requested Claude to improve his own resume. The document reportedly contained his real name, educational background, and LinkedIn information. A preliminary investigation suggested that these details may have been deliberately planted; however, further examination indicated they were the property of the attacker. 

Claude was also able to provide clues about his location by examining the logs. Claude was asked to identify connections to the attacker's staging server at one point, since he suspected it had been compromised. Information included residential internet addresses associated with Addis Ababa, Ethiopia. 

Millions in Cryptocurrency Remained Out of Reach

There was also an opportunity to get close to a potentially significant cryptocurrency target. One compromised system contained a Lightning Network node for Bitcoin payment routing, which researchers determined contained approximately 69.71 bitcoins worth approximately $4 million when the investigation was conducted. 

A wallet key file containing the funds could not be accessed by the attacker, preventing access to the cryptocurrency. The investigation also shows no clear evidence that the stolen information from these other organizations was sold or used for extortion. As a result, it provides more evidence regarding the attacker's access and activity than any financial gain. 

The Risk Extends Beyond One Attacker

This incident is noteworthy not because the attacker displayed advanced hacking skills, but rather because artificial intelligence agents performed most of the technical work on his behalf. Additionally, the models involved were not among the newest versions available at the time. 

OALABS examined activity involving Claude Opus 4.5 and GPT-5.2, demonstrating that the problem is not restricted to one type of cutting-edge technology. By strengthening security controls, AI systems may be less susceptible to assisting malicious activity. However, tighter controls will also present a challenge to legitimate security researchers who use similar tools to identify and test vulnerabilities. The results of OALABS indicate that AI developers are faced with a challenging balance between preventing malicious use and making AI coding agents ineffective for legitimate security purposes. 

Additionally, the case illustrates the difficulty of maintaining that balance when an inexperienced operator turns simple instructions into largely automated intrusion procedures. In light of the increasing security challenges associated with autonomous AI coding agents, stronger safeguards are needed to distinguish legitimate security research from malicious activity, as illustrated by this incident.

Hugging Face AI Hack Pushes Cybersecurity Leaders to Seek Solutions for Agentic AI Threats

 

Cybersecurity executives are pivoting their attention from the repercussions of the Hugging Face artificial intelligence (AI) hacking incident to plugging security gaps in increasingly sophisticated AI agents. 

Last month, AI agents utilizing OpenAI cyber models escaped a training environment and infiltrated Hugging Face, an open-source AI platform where coders collaborate, testing and sharing languages and other tools. The breach has raised concerns that AI agents can independently uncover and exploit weaknesses.  

According to OpenAI, revealed at Black Hat cybersecurity conference, the organization’s AI agents had earlier created an internal forum to exchange vulnerabilities and exploits before targeting Hugging Face. The agents then assigned tasks to infiltrate the internet and finish an evaluation, and despite the interruption, they quickly reconstituted their activities and replicated their results. 

OpenAI technical researcher Michael Dalton described the incident as an “inadvertent consequence of testing frontier models” and a “watershed moment” for the organization and the broader industry. He added that threat actors could leverage the incident to strategically deploy, fine-tune, and scale up adversarial agent collectives. The Hugging Face breach follows other reports of rogue AI agents. Anthropic announced that its Claude models had gained unauthorized access to the proprietary systems of three corporations. 

Meta disclosed that its AI models had infiltrated another organization during a third-party assessment, whereas the United Kingdom’s AI Security Institute reported that Anthropic’s Mythos AI generated fabricated personas during an analogous incident. In another case, Moonshot AI’s open-weight model escaped a sandboxed testing environment. Meanwhile, cybersecurity executives are dealing with the consequences of the Hugging Face breach and similar incidents involving AI agents. 

Div stated that their occurrence demonstrated the “arrival of a new era in which AI can rapidly identify vulnerabilities,” whereas CrowdStrike president Mike Sentonas stressed the need to determine how best to govern and secure the technology. Some firms are developing solutions to the rising challenges posed by AI agents. For instance, Netskope CEO Sanjay Beri advised organizations to operate under the assumption that they are already compromised and utilize persistent testing to identify and remediate vulnerabilities using frontier and open-weight models. 

His company’s AI Command Center is an analytics platform that enables enterprises to oversee and investigate infrastructure, servers, data, and AI agents from a single interface. Other cybersecurity firms are capitalizing on the demand for faster, less expensive discovery tools, such as Vega, and more accessible data security tools, such as Cyera, which can detect and protect sensitive datta and manage nonhuman identities better. Meanwhile, the open-weight model is a vital asset to cybersecurity companies since it can be personalized to satisfy individual requirements. 

CrowdStrike’s Sentonas stated that combining open platforms and AI monitoring would make it simpler for enterprises to isolate and neutralize threats. Moreover, cybersecurity executives are emphasizing the significance of a control layer, or “harness,” that oversees models and AI agents to ensure that they adhere to specific security standards. Although the industry anticipates that these measures will enhance security, Surf AI CEO Yair Grindlinger warned that the next few years would be pivotal in comprehending how to safeguard agentic AI.  

“The next few years will be critical to understanding how to secure agentic AI,” said Surf AI CEO Yair Grindlinger. “There is much work to be done before the appropriate security measures can be developed to protect AI from being weaponized.”

Trojanized npm Packages Distribute RedC2 4.0 Linux Backdoor Across Systems


In an investigation uncovered by cybersecurity researchers, 14 trojanized NPM packages have been masquerading as legitimate calendar modules and utility modules while secretly delivering a Linux backdoor powered by artificial intelligence (AI) known as RedC2 4.0. 


Upon importation of the malicious packages, TrendAI, Trend Micro's enterprise cybersecurity company, explains that they execute the payload bundled with the module without any installation hooks required. In the code, the embedded binary is located, permissions are changed to make it executable, and it is then launched as a detached background process. 

As a result, even a transitive dependency can trigger the backdoor when a compromised package is loaded. It is concealed under filenames such as math-core.bin and calc-math.dat that the malicious payload is concealed in order to prevent raising suspicion. Through the embedded Linux beacon, attackers are able to communicate with remote infrastructure and gain access to affected systems to conduct further malicious activities. 

RedC2 4.0 has been actively developed with capabilities extending beyond basic remote access. Along with interactive shell access and system reconnaissance, its Linux component facilitates data collection, including the theft of sensitive information such as SSH keys, through its Linux component. The comprehensive framework also encompasses file transfer, network visualization, host-to-host tunneling, and in-memory payload execution, highlighting the growing threat posed by malicious software packages. 

Malicious Packages Retain Legitimate Functionality

In spite of the fact that the compromised packages do not appear to be obviously malicious, they continue to provide the calendar and date-related functions described in their package descriptions. The malicious code, however, is concealed within the package structure, in which files such as math-core.bin, math-calc.bin, calc-math.dat, calc-cache.bin, calc.bin and calc-mapping.bin are listed as native components. 

There are two types of files stored within the dist/ directory: either directly under the dist/ directory or in dist/internal/ directory. Even though the names of these packages differ, they contain the RedShell Linux beacon that is associated with RedC2 4.0. The package entry file, dist/index.mjs, serves as a loader. It re-exports the valid date utilities while simultaneously initiating the embedded implant. By doing so, the malicious component does not require an installation hook or specific function call to execute. 

RedShell Gives Attackers Remote Access

RedShell beacons establish communication with remote command-and-control servers once they become active and register compromised systems. Prior to entering a command-processing LO, they collect basic information about the host. 

Through /bin/sh, the Linux beacon provides an interactive shell and allows for a wide range of system operations, including system discovery, file management, collection of data, and execution of commands. This implant also has the capability of searching for sensitive information, including SSH keys and browser credentials. In addition to persistence and in-memory ELF execution, it also supports SOCKS5 proxying. 

The network pivoting capabilities further enable an attacker to use compromised systems as an entry point into other environments. This version of RedC2 4.0 also provides similar features across macOS and Windows. The framework provides file operations, host and network reconnaissance, enumeration of users, and data collection. 

The Windows component also offers capabilities such as bypassing UAC, tampering with security tools, and lateral movement. 

RedC2 Framework Adds AI Assisted Operations

For Windows, Linux, and Mac OS, RedC2 4.0 is presented as a cross-platform command-and-control framework. As of August 2025, the framework has been actively developing, with version 3.0 appearing in January 2026 and version 4.0 released in June. In addition to the RedShell Linux beacon, the latest version offers a comprehensive set of post-exploitation functionality. 

There are several features in this framework, including access to terminals, file transfers, staged payload delivery, multi-beacon management, network visualisation, host-to-host tunnelling, and execution of BOFs, .NET assemblies and shellcode in memory. 

As an important addition, Red Agent is an artificial intelligence-assisted component with a large language model. It allows operators to describe tasks in natural language and have these instructions translated into beacon commands by the framework. By incorporating this feature, operations such as network reconnaissance and credential collection can be simplified. Moreover, it decreases the technical knowledge required to operate more complex framework functions. 

Supply Chain Risks Extend Beyond npm

A wider pattern of attacks is being observed against software ecosystems as a result of the incident. In recent years, development teams have increasingly relied on third-party packages, which often include binaries and transitive dependencies that are not visible to developers. 

A package can appear useful and maintain normal behavior while carrying a separate native payload even though it has legitimate functionality present, making it particularly difficult to detect such attacks during routine code reviews. As part of the RedC2 campaign, three legitimate Rust crates were also subjected to a recent supply chain attack. These packages have been modified in order to include a malicious dependency capable of executing malware during cargo builds. 

In addition to targeting multiple development ecosystems rather than focusing exclusively on NPM, the incidents reinforced the need for tighter dependency controls for development and infrastructure teams. When possible, it is recommended that package versions be pinned and dependencies and embedded binaries be reviewed before entering production environments. 

It is possible to detect suspicious activity by monitoring unexpected process creation and outbound network connections from build systems. As the number of malicious packages carrying backdoors continues to increase, software supply chains continue to be an important entry point for malicious entities. By including AI-assisted functionality to frameworks such as RedC2, operational capabilities are further improved following an initial compromise.

Sunbird Brings iMessage to Android Back After 2023 Security Scandal

 



Sunbird has relaunched its iMessage app for Android users nearly three years after security issues forced the company to pause the service in 2023.

The app is now available on the Google Play Store and allows Android users to access iMessage conversations, including blue-bubble messages and group chats with iPhone users. Sunbird has also combined iMessage with Google Messages, RCS and SMS/MMS in the same application.

The company says the new version has been rebuilt with changes to how messages, Apple ID credentials and media are handled. Sunbird claims messages are encrypted on the Android device before they leave it, protected while travelling through its infrastructure and encrypted at rest using AES-256. It also says Apple ID passwords are used once to establish an iMessage session and then deleted.

The relaunch comes after researchers identified serious security problems in Sunbird's earlier implementation, including the transmission of Apple ID credentials over an unencrypted HTTP connection and access to messages and media stored through Firebase. Those findings led to the removal of Nothing Chats, an iMessage app developed by Nothing using Sunbird's technology, and Sunbird subsequently paused its own service.


Sunbird returns to the Google Play Store

Sunbird Messaging announced on August 5 that its Android application was open to all users through Google Play following an early-access period. The company said more than 181,000 people had signed up before the public launch.

The application is designed to allow Android users to participate in iMessage conversations without owning an iPhone, Mac or another Apple device. Sunbird says users can appear in blue-bubble conversations on iPhones and participate in iMessage group chats through the Android application.

The new app also acts as a unified messaging platform. Instead of limiting the application to iMessage, Sunbird has brought iMessage, Google Messages through RCS and SMS/MMS into one inbox.

The application now includes a Primary and Secondary inbox. Sunbird says the Primary section is intended for important conversations, while less important messages can be placed in Secondary. Users can control how their conversations are organised.

The company has also said it plans to add WhatsApp and Facebook Messenger support later in 2026.

The service is available with a 14-day free trial, after which Sunbird charges $2.99 per month or $24.99 annually.


What happened to Sunbird in 2023

Sunbird's return follows a security incident that brought its earlier service offline in November 2023.

The issue became widely known after Nothing announced Nothing Chats, an Android application that used Sunbird's technology to provide iMessage functionality on the Nothing Phone (2). Users were required to provide their Apple ID credentials to connect the service to iMessage.

Security researchers then examined the application and identified several problems with how the service handled authentication and user data.

One of the issues involved Apple ID credentials being transmitted to Sunbird's servers over HTTP. Because HTTP does not encrypt the connection, the credentials could potentially be intercepted while being transmitted.

Researchers also found that messages and other user data were being sent to and stored through Firebase without encryption. An investigation by 9to5Google found that researchers could use insecurely transmitted JSON Web Tokens to access Sunbird's Firebase database and view messages and files belonging to users.

The exposed information was not limited to text messages.

Researchers reported that the database contained media files including images, videos, PDFs and audio files. More than 630,000 media files were reportedly stored through Sunbird's Firebase infrastructure at the time. Researchers also found vCards containing information such as names, phone numbers and email addresses.

The problem also involved Sentry, an error-monitoring service. Researchers reported that messages and attachments were being sent to Sentry in plaintext, meaning information intended to be part of private conversations could appear in an error-reporting system.

These findings conflicted with Sunbird and Nothing's earlier statements about encryption. The companies had presented the service as providing end-to-end encryption, but researchers found that data could be accessed through the systems supporting the application.

Nothing removed Nothing Chats from the Google Play Store less than 24 hours after its launch. The company said it was delaying the application while working with Sunbird to address the security problems. Sunbird also paused its own service shortly afterward.


Sunbird says the new architecture handles data differently

For the relaunched application, Sunbird says it has changed how messages and authentication information are processed.

According to the company's security documentation, messages are encrypted on the user's phone before they leave the device. The data is then encrypted while travelling through Sunbird's infrastructure and remains encrypted on the user's device using AES-256. Sunbird also says its connections use certificate pinning.

The company says it does not retain copies of users' conversations on its own servers. Instead, message history remains on the sender's and recipient's devices.

Sunbird says messages passing through its infrastructure are released after delivery. It also says photos and videos sent through the service are automatically deleted from its systems, normally within 48 hours and no later than 72 hours.

The handling of Apple ID credentials has also been changed.

Users still need an Apple ID to connect Sunbird to iMessage. However, Sunbird says the Apple ID password is used only once to establish the session and is then destroyed. The company says it does not retain the password or an authentication token that could later be used to sign into the account.

Sunbird also says each user's iMessage connection operates inside its own private environment. According to the company, that environment is destroyed when the user disconnects or deletes their account.

For messages travelling to an iPhone, Sunbird says Apple's existing iMessage end-to-end encryption protects the final part of the communication. The company says it does not modify or weaken Apple's encryption.

These changes address several of the areas that created problems in the previous version. However, they remain claims made by the company and need to be considered separately from what independent researchers have been able to verify.


Company says independent testing found no critical vulnerabilities

Sunbird CEO Danny Mizrahi has said that an independent security firm tested the rebuilt application and found no critical vulnerabilities. The company is using this assessment as part of its security case for the relaunched service.

The distinction between an independent assessment being conducted and its findings being publicly available is important here.

A publicly available audit would allow security researchers and other experts to examine what was tested, which parts of the application were included, what methodology was used and what limitations applied to the assessment.

For now, Sunbird's public security information provides details about the architecture and the company's data-handling practices, but users should still distinguish between those statements and independent verification of the complete system.

That is particularly relevant because Sunbird's previous service also made strong security claims before researchers found problems with the implementation.

The current application may have been rebuilt to address those problems, but continued independent testing would provide a stronger way to determine whether the new security controls work as intended.


Sunbird adds an AI assistant

Security is not the only area Sunbird is changing with the relaunch.

The company is preparing an AI assistant called Sunbird Intelligence, which is expected to arrive later in 2026. Sunbird says the AI will run directly on the user's phone rather than sending conversations to a remote service for processing.

One planned feature, called "Catch Me Up," is designed to summarise conversations that users have missed. The company also plans features that can draft replies and suggest actions based on conversations.

Sunbird says its AI system will eventually be able to perform tasks such as moving conversations between inbox categories, archiving chats and drafting or sending replies.

The planned AI features introduce another privacy consideration because the assistant would need to process the content of users' conversations to provide summaries and generate replies.

Sunbird's decision to run the AI on the device is therefore relevant to its privacy claims. However, the actual privacy protections will depend on how the system is implemented, what information it can access and whether any conversation data leaves the device when the feature is used.


RCS has also changed the reason for using Sunbird

The messaging market has changed since Sunbird's first attempt to bring iMessage to Android.

Apple introduced support for RCS with iOS 18, giving Android-to-iPhone conversations access to features such as higher-quality media, read receipts and typing indicators when RCS is supported.

This reduces some of the practical differences that previously existed between Android and iPhone messaging.

Sunbird is therefore returning to a market where Android users already have a better cross-platform messaging experience than they did in 2023. The main distinction Sunbird offers is continued access to Apple's iMessage system and the blue-bubble experience.

There are also technical differences. Sunbird's iMessage service does not register a user's Android phone number with iMessage. According to MacRumors, users appear to iPhone contacts through their email address when using Sunbird.

This means the company's proposition has changed from simply providing Android users with features that were missing from SMS-based conversations. It is now combining iMessage access with a broader messaging application that brings several services together.


Sunbird now has to prove its security claims

Sunbird's new application contains several changes compared with the service that was paused in 2023.

The company says messages are encrypted on the device and during transmission, Apple ID passwords are used once and destroyed, media is automatically deleted from its infrastructure, and conversations are not permanently stored on its servers.

These changes address some of the security problems researchers identified in the previous implementation.

However, the history of the service makes independent verification particularly important. In 2023, researchers were able to demonstrate that sensitive information could be accessed through Sunbird's infrastructure despite the company's previous claims about encryption.

Sunbird now has another opportunity to establish whether its redesigned architecture can provide the privacy and security protections it promises.

More than 181,000 people signed up during the early-access period, showing that there is still interest in using iMessage from Android. But with RCS now supported on both major mobile platforms and with the security problems of the previous Sunbird implementation still part of the company's history, the new application's long-term success will depend heavily on whether its security controls withstand continued independent testing.

For Sunbird, bringing back the blue bubble is only one part of the challenge. The larger test is whether users can trust the infrastructure carrying their messages this time.

Oracle Database Abuse Lets Hackers Run Khunt Toolkit

 

Hackers recently abused a SQL injection flaw in a public-facing Java application to plant a post-exploitation toolkit called khunt directly inside an Oracle database, showing how database abuse can become a full network compromise. The case was discovered by Huntress on July 27, 2026, after its security platform detected credential theft on a server hosting an Oracle database. 

The intrusion began through a vulnerable autocomplete search feature on an Apache Tomcat application that did not properly validate input, allowing attackers to issue SQL commands against the database. Huntress traced the malicious traffic to the IP address 178.162.151[.]229. What makes this incident unusual is that the attackers did not drop a normal executable on the server. Instead, they used Oracle’s Java support, including the CREATE JAVA SOURCE capability, to store and compile the khunt toolkit as a database object, something Huntress said is rarely documented in the wild. 

The toolkit included several modules with distinct roles: KhuntCmd for running Windows commands, KhuntHash for extracting usernames and password data, KhuntFS and KhuntFS2 for file browsing and searching, KhuntT for testing whether installation succeeded, and KhuntUnzip for unpacking compressed files. The attackers even used KhuntCmd to run whoami, confirming SYSTEM-level execution on the Windows host. 

From there, they used PowerShell and Windows tools to copy the SAM, SECURITY, and SYSTEM registry hives, which could be used for credential dumping, and they ran tasklist /svc to enumerate services. Huntress advised organizations to sanitize user input, restrict privileges on application database accounts, and avoid giving public-facing databases the power to create Java sources or run administrative actions.

Phishing Campaign Exploits COLDCARD Vulnerability Fears to Spread ScreenConnect

 

A new phishing campaign is taking advantage of concerns over a recently revealed COLDCARD wallet vulnerability and the suspected theft of $88.6 million in Bitcoin to trick cryptocurrency users into installing remote-access software.

Cybersecurity firm Proofpoint, which identified the campaign, said attackers are sending emails that impersonate COLDCARD and falsely claim that a security audit is being conducted across its hardware cold-storage wallets.

The campaign follows the reported theft of around 1,367 Bitcoin, estimated to be worth $88.6 million, from 4,585 addresses. The incident is believed to have been linked to a random number generation flaw affecting several COLDCARD models and firmware versions.

The fraudulent emails originate from compliance@coldcardteamnews.com and carry the subject line "Hardware audit now available." Recipients are told that recent security findings have prompted COLDCARD to verify devices across different hardware revisions.

"We are writing to inform you of a coordinated security audit now underway across the COLDCARD device network. Recent findings have prompted us to verify the integrity of hardware across all revisions, and your participation is needed," reads the fake security audit emails.

The messages direct recipients to a supposed "Security Verification & Incident Reporting Tool." The attackers claim that the process is air-gapped, does not require users to provide their recovery seed and must be completed by August 10.

Clicking the "Access the Audit Tool" button takes users to coldcardcompliance.com, a fraudulent website designed to resemble COLDCARD. Visitors are then prompted to click "Start Hardware Audit" to download the alleged diagnostic tool.

The site also features a live "Customer Service" chat function, which is presented as a way for users to receive assistance with their COLDCARD devices.

According to conversations reviewed by Proofpoint, an operator asks victims whether they are using Windows or macOS before providing further instructions. Windows users are told to execute the downloaded file. When one victim reported seeing a black command window and an administrator prompt, the operator claimed the prompt was necessary to begin installation and instructed the user to select "Yes."

Proofpoint suspects that the chat interactions are being conducted by human operators rather than an automated system. This would allow the attackers to address victims' concerns directly and persuade hesitant users to continue with the installation.

Fake diagnostic tool installs ScreenConnect

Proofpoint said clicking "Start Hardware Audit" downloads a batch file named Coldcard_Diagnostic_Tool.bat from a GitHub account.

An analysis by BleepingComputer found that the 25.7MB batch file contains two Base64-encoded files embedded within it.

When executed, the script initially appears to run a diagnostic check. In reality, it determines whether the victim has administrator privileges. If elevated access is unavailable, it uses PowerShell to restart itself and trigger a User Account Control prompt.

The script subsequently extracts the embedded files into a randomly generated directory inside the Windows temporary folder. The files are saved as setup.msi and docusign.exe before being decoded using Windows certutil.

After installing setup.msi, the script launches docusign.exe, displays an "Installation Complete" message and removes the temporary directory. The executable is a legitimate, digitally signed program associated with a DocuSign printer driver and serves as a distraction from the malicious activity.

The setup.msi package, however, installs ConnectWise ScreenConnect, a remote-management application that can provide attackers with access to the compromised computer.

Proofpoint said the malicious installation connects to activeretirementrelocation[.]com, which serves as the ScreenConnect command-and-control server operated by the attackers.

Once a connection is established, threat actors could potentially control the affected computer remotely, steal sensitive information or cryptocurrency, and deploy additional malicious software. Proofpoint also warned that the compromised access could ultimately be leveraged to deploy ransomware.


Ultra-Wealthy Turn to Premium Services to Erase Their Digital Footprints

 

For the ultra-wealthy, protecting personal information is increasingly becoming a premium service. High-net-worth individuals and corporations are paying specialized privacy firms to track down and remove personally identifiable information (PII) from search engines, data-broker databases and even the dark web.

Unlike automated privacy tools, these high-end services combine data removal with continuous monitoring and manual audits designed to reduce both online exposure and physical security threats.

Consumer-focused services such as DeleteMe, Incogni and Google’s free PII removal tool can help limit exposure, but their reach remains restricted. Data brokers often use measures to prevent automated deletion requests. “insert something like a captcha to ensure that a bot can’t come in and wipe out their database,” Tom Aldrich, chief operating officer of digital exposure reduction firm 360 Privacy, told Observer.

Aldrich said his company, which works with 32 Fortune 100 companies, recently took on a wealthy client who had previously used an automated service. The firm discovered 62 profiles belonging to the individual across hundreds of data aggregation platforms. “We found 62 different profiles on them across hundreds of data aggregator sources,” said Aldrich, who added that 93 percent of those profiles included non-public information and could be removed.

Digital exposure is becoming a physical security concern

Security experts increasingly warn that information available online can create risks in the physical world. Threats against senior executives have risen steadily over the past two decades, with attacks in 2025 more than doubling compared with the previous year.

“Physical and digital can no longer be separate,” Brian Hill, field chief information security officer at personal cybersecurity firm BlackCloak, which serves corporate executives and high-net-worth individuals, told Observer.

The connection became particularly evident in the case of Vance Boelter, the Minnesota gunman sentenced in July to two consecutive life sentences plus 40 years for killing Democratic lawmakers in 2025. Boelter reportedly used data aggregator websites to identify his victims.

Growing concerns around executive safety have also pushed security spending higher. The median security expenditure for executives at S&P 500 companies increased 37.8 percent between 2024 and 2025. During the same period, S&P 500 CEOs earned an average annual compensation of $18.9 million.

Meta was among the biggest spenders, allocating more than $25 million toward physical and digital security for CEO Mark Zuckerberg.

For family offices, celebrities and high-net-worth clients, BlackCloak's services can cost between $10,000 and roughly $200,000 annually. Enterprise contracts covering executives, board members and founders can reach as much as $600,000 per year.

A growing market for digital privacy

The expanding digital footprint of consumers has created an entire economy around personal-data protection. Data brokers collect and sell personal information to third parties, contributing to a North American data-broker market estimated at $40 billion.

Removing such information is often difficult and labor-intensive, increasing demand for specialized providers that can continuously identify and eliminate exposed data.

Only California, Oregon, Texas and Vermont currently require data brokers to identify themselves through state registries. More than 4,000 data brokers are estimated to operate across the U.S., with many outside the reach of comprehensive regulation. California alone has 545 registered data brokers.

Premium privacy firms typically remove information from publicly accessible websites while also monitoring the dark web and strengthening security across users' accounts and devices. Connected household technology, including security cameras, may also be included in these security assessments.

Still, complete digital anonymity is difficult to achieve. “Reducing your digital footprint to zero is virtually impossible,” said Hill. “Our goal is anywhere from 70–90 percent removal of data.”

Certain public records, including newspaper archives and campaign donation records, can also remain difficult or impossible to erase.

Affordable services remain an option

While high-end privacy protection is increasingly being adopted by wealthy individuals and corporations, more affordable services can still help ordinary consumers reduce their exposure.

Aura, for example, offers automated data removal alongside other digital safety services for families at $32 per month. “As data breaches continue, data brokers expand, and A.I. makes it easier to exploit personal information, more people are looking for ways to reduce their digital footprint and regain control of their privacy,” Tom Clayton, president and chief operating officer of Aura, told Observer.

Despite the growing number of services available, adoption remains relatively low. Only 6 percent of American adults use data-removal services, while more than half do not know such services exist.

Smaller businesses are increasingly vulnerable as well. “The attackers are…going after the small companies, the local family businesses. They’re now becoming the targets because they’re the easy ones,” Hill said.

Executives and their families continue to face particular risks. According to a 2025 report from BlackCloak and the Ponemon Institute, 51 percent of security leaders said cyberattacks had targeted the personal accounts of executives or their family members.

As personal and professional digital lives become increasingly intertwined, conventional corporate security teams may not fully protect executives' personal information. That gap is helping drive demand for specialized privacy and cybersecurity providers.

Artificial intelligence and emerging technologies could make the problem even more challenging. “With a lot of this technology,” said Hill about A.I. and quantum computing, “you’re going to see a lot more data collection, and it’s going to be easier to go after the people that don’t set up an LLC or trust because they just don’t think they need to.”