A cyberespionage group known in security research circles as PlushDaemon has been carrying out a long-running operation in which they take advantage of software update systems to secretly install their own tools on targeted computers. According to new analysis by ESET, this group has been active for several years and has repeatedly improved its techniques. Their operations have reached both individuals and organizations across multiple regions, including areas in East Asia, the United States, and Oceania. Victims have included universities, companies that manufacture electronics, and even a major automotive facility located in Cambodia. ESET’s data suggests that this shift toward manipulating software updates has been a consistent part of PlushDaemon’s strategy since at least 2019, which indicates the group has found this method to be reliable and efficient.
The attackers begin by attempting to take control of the network equipment that people rely on for internet connectivity, such as routers or similar devices. They usually exploit security weaknesses that are already publicly known or take advantage of administrators who have left weak passwords unchanged. Once the attackers get access to these devices, they install a custom-built implant researchers call EdgeStepper. This implant is written in the Go programming language and compiled in a format that works comfortably on Linux-based router systems. After deployment, EdgeStepper operates quietly in the background, monitoring how the device handles internet traffic.
What makes this implant dangerous is its ability to interfere with DNS queries. DNS is the system that helps computers find the correct server whenever a user tries to reach a domain name. EdgeStepper watches these requests and checks whether a particular domain is involved in delivering software updates. If EdgeStepper recognizes an update-related domain, it interferes and redirects the request to a server controlled by PlushDaemon. The victim sees no warning sign because the update process appears completely normal. However, instead of downloading a legitimate update from the software provider, the victim unknowingly receives a malicious file from the attackers’ infrastructure.
This deceptive update carries the first stage of a layered malware chain. The initial file is a Windows component known as LittleDaemon. It is intentionally disguised as a DLL file to convince the system that it is a harmless library file. Once LittleDaemon runs, it connects to one of the attacker-controlled nodes and downloads the next stage, known as DaemonicLogistics. This second-stage tool is decrypted and executed directly in memory, which makes it more difficult for traditional security products to spot because it avoids writing visible files to disk. DaemonicLogistics is essentially the bridge that loads the final and most important payload.
The last payload is the group’s advanced backdoor, SlowStepper. This backdoor has been documented in earlier incidents, including a case in which users of a South Korean VPN service unknowingly received a trojanized installer from what appeared to be the vendor’s official site. SlowStepper gives the attackers broad access to a compromised machine. It can gather system information, execute various commands, browse and manipulate files, and activate additional spyware tools. Many of these tools are written in Python and are designed to steal browser data, capture keystrokes, and extract stored credentials, giving PlushDaemon a detailed picture of the victim’s activity.
ESET researchers also examined the group’s interference with update traffic for Sogou Pinyin, which is one of the most widely used Chinese input software products. While this example helps illustrate the group’s behavior, the researchers observed similar hijacking patterns affecting other software products as well. This means PlushDaemon is not focused on one specific application but is instead targeting any update system they can manipulate through the network devices they have compromised. Because their technique relies on controlling the network path rather than exploiting a flaw inside the software itself, the group’s approach could be applied to targets anywhere in the world.
The research report includes extensive technical information on every component uncovered in this campaign and offers indicators of compromise for defenders, including associated files, domains, and IP addresses. These findings suggest how imperative it is that a routine process like installing updates can become a highly effective attack vector when network infrastructure is tampered with. The case also reinforces the importance of securing routers and keeping administrator credentials strong, since a compromised device at the network level allows attackers to alter traffic without the user noticing any warning signs.
A coordinated review by several federal agencies in the United States has intensified scrutiny of TP-Link home routers, with officials considering whether the devices should continue to be available in the country. Recent reporting indicates that more than six departments and agencies have supported a proposal recommending restrictions because the routers may expose American data to security risks.
Public attention on the matter began in December 2024, when major U.S. outlets revealed that the Departments of Commerce, Defense and Justice had opened parallel investigations into TP-Link. The inquiries focused on whether the company’s corporate structure and overseas connections could create opportunities for foreign government influence. After those initial disclosures, little additional information surfaced until the Washington Post reported that the proposal had cleared interagency review.
Officials involved believe the potential risk comes from how TP-Link products collect and manage sensitive information, combined with the company’s operational ties to China. TP-Link strongly disputes the allegation that it is subject to any foreign authority and says its U.S. entity functions independently. The company maintains that it designs and manufactures its devices without any outside control.
TP-Link was founded in Shenzhen in 1996 and reorganized in 2024 into two entities: TP-Link Technologies and TP-Link Systems. The U.S. arm, TP-Link Systems, operates from Irvine, California, with roughly 500 domestic employees and thousands more across its global workforce. Lawmakers previously expressed concern that companies with overseas operations may be required to comply with foreign legal demands. They also cited past incidents in which compromised routers, including those from TP-Link, were used by threat actors during cyber operations targeting the United States.
The company has grown rapidly in the U.S. router market since 2019. Some reports place its share at a majority of consumer sales, although TP-Link disputes those figures and points to independent data that estimates a smaller share. One industry platform found that about 12 percent of active U.S. home routers are TP-Link devices. Previous reporting also noted that more than 300 internet providers distribute TP-Link equipment to customers.
In a separate line of inquiry, the Department of Justice is examining whether TP-Link set prices at levels intended to undercut competitors. The company denies this and says its pricing remains sustainable and profitable.
Cybersecurity researchers have found security flaws in routers from many manufacturers, not only TP-Link. Independent analysts identified firmware implants linked to state-sponsored groups, as well as widespread botnet activity involving small office and home routers. A Microsoft study reported that some TP-Link devices became part of password spray attacks when users did not change default administrator credentials. Experts emphasize that router vulnerabilities are widespread across the industry and not limited to one brand.
Consumers who use TP-Link routers can reduce risk by updating administrator passwords, applying firmware updates, enabling modern encryption such as WPA3, turning on built-in firewalls, and considering reputable VPN services. Devices that no longer receive updates should be replaced.
The Department of Commerce has not issued a final ruling. Reports suggest that ongoing U.S. diplomatic discussions with China could influence the timeline. TP-Link has said it is willing to improve transparency, strengthen cybersecurity practices and relocate certain functions if required.
China has approved major changes to its Cybersecurity Law, marking its first substantial update since the framework was introduced in 2017. The revised legislation, passed by the Standing Committee of the National People’s Congress in late October 2025, is scheduled to come into effect on January 1, 2026. The new version aims to respond to emerging technological risks, refine enforcement powers, and bring greater clarity to how cybersecurity incidents must be handled within the country.
A central addition to the law is a new provision focused on artificial intelligence. This is the first time China’s cybersecurity legislation directly acknowledges AI as an area requiring state guidance. The updated text calls for protective measures around AI development, emphasising the need for ethical guidelines, safety checks, and governance mechanisms for advanced systems. At the same time, the law encourages the use of AI and similar technologies to enhance cybersecurity management. Although the amendment outlines strategic expectations, the specific rules that organisations will need to follow are anticipated to be addressed through later regulations and detailed technical standards.
The revised law also introduces stronger enforcement capabilities. Penalties for serious violations have been raised, giving regulators wider authority to impose heavier fines on both companies and individuals who fail to meet their obligations. The scope of punishable conduct has been expanded, signalling an effort to tighten accountability across China’s digital environment. In addition, the law’s extraterritorial reach has been broadened. Previously, cross-border activities were only included when they targeted critical information infrastructure inside China. The new framework allows authorities to take action against foreign activities that pose any form of network security threat, even if the incident does not involve critical infrastructure. In cases deemed particularly severe, regulators may impose sanctions that include financial restrictions or other punitive actions.
Alongside these amendments, the Cyberspace Administration of China has issued a comprehensive nationwide reporting rule called the Administrative Measures for National Cybersecurity Incident Reporting. This separate regulation will become effective on November 1, 2025. The Measures bring together different reporting requirements that were previously scattered across multiple guidelines, creating a single, consistent system for organisations responsible for operating networks or providing services through Chinese networks. The Measures appear to focus solely on incidents that occur within China, including those that affect infrastructure inside the country.
The reporting rules introduce a clear structure for categorising incidents. Events are divided into four levels based on their impact. Under the new criteria, an incident qualifies as “relatively major” if it involves a data breach affecting more than one million individuals or if it results in economic losses of over RMB 5 million. When such incidents occur, organisations must file an initial report within four hours of discovery. A more complete submission is required within seventy-two hours, followed by a final review report within thirty days after the incident is resolved.
To streamline compliance, the regulator has provided several reporting channels, including a hotline, an online portal, email, and the agency’s official WeChat account. Organisations that delay reporting, withhold information, or submit false details may face penalties. However, the Measures state that timely and transparent reporting can reduce or remove liability under the revised law.
The news first came in December last year. According to the WSJ, officials at the Departments of Justice, Commerce, and Defense had launched investigations into the company due to national security threats from China.
Currently, the proposal has gotten interagency approval. According to the Washington Post, "Commerce officials concluded TP-Link Systems products pose a risk because the US-based company's products handle sensitive American data and because the officials believe it remains subject to jurisdiction or influence by the Chinese government."
But TP-Link's connections to the Chinese government are not confirmed. The company has denied of any ties with being a Chinese company.
The company was founded in China in 1996. After the October 2024 investigation, the company split into two: TP-Link Systems and TP-Link Technologies. "TP-Link's unusual degree of vulnerabilities and required compliance with [Chinese] law are in and of themselves disconcerting. When combined with the [Chinese] government's common use of [home office] routers like TP-Link to perpetrate extensive cyberattacks in the United States, it becomes significantly alarming" the officials wrote in October 2024.
The company dominated the US router market since the COVID pandemic. It rose from 20% of total router sales to 65% between 2019 and 2025.
The US DoJ is investigating if TP-Link was involved in predatory pricing by artificially lowering its prices to kill the competition.
The potential ban is due to an interagency review and is being handled by the Department of Commerce. Experts say that the ban may be lifted in future due to Trump administration's ongoing negotiations with China.
The United Kingdom’s National Cyber Security Centre (NCSC) has cautioned that hacking groups connected to China are responsible for an increasing number of cyberattacks targeting British organisations. Officials say the country has become one of the most capable and persistent sources of digital threats worldwide, with operations extending across government systems, private firms, and global institutions.
Paul Chichester, the NCSC’s Director of Operations, explained that certain nations, including China, are now using cyber intrusions as part of their broader national strategy to gain intelligence and influence. According to the NCSC’s latest annual report, China remains a “highly sophisticated” threat actor capable of conducting complex and coordinated attacks.
This warning coincides with a government initiative urging major UK companies to take stronger measures to secure their digital infrastructure. Ministers have written to hundreds of business leaders, asking them to review their cyber readiness and adopt more proactive protection strategies against ransomware, data theft, and state-sponsored attacks.
Last year, security agencies from the Five Eyes alliance, comprising the UK, the United States, Canada, Australia, and New Zealand uncovered a large-scale operation by a Chinese company that controlled a botnet of over 260,000 compromised devices. In August, officials again warned that Chinese-backed hackers were targeting telecommunications providers by exploiting vulnerabilities in routers and using infected devices to infiltrate additional networks.
The NCSC also noted that other nations, including Russia, are believed to be “pre-positioning” their cyber capabilities in critical sectors such as energy and transportation. Chichester emphasized that the war in Ukraine has demonstrated how cyber operations are now used as instruments of power, enabling states to disrupt essential services and advance strategic goals.
Artificial Intelligence: A New Tool for Attackers
The report highlights that artificial intelligence is increasingly being used by hostile actors to improve the speed and efficiency of existing attack techniques. The NCSC clarified that, while AI is not currently enabling entirely new forms of attacks, it allows adversaries to automate certain stages of hacking, such as identifying security flaws or crafting convincing phishing emails.
Ollie Whitehouse, the NCSC’s Chief Technology Officer, described AI as a “productivity enhancer” for cybercriminals. He explained that it is helping less experienced hackers conduct sophisticated campaigns and enabling organized groups to expand operations more rapidly. However, he reassured that AI does not currently pose an existential threat to national security.
Ransomware Remains the Most Severe Risk
For UK businesses, ransomware continues to be the most pressing danger. Criminals behind these attacks are financially motivated, often targeting organisations with weak security controls regardless of size or industry. The NCSC reports seeing daily incidents affecting schools, charities, and small enterprises struggling to recover from system lockouts and data loss.
To strengthen national resilience, the upcoming Cyber Security and Resilience Bill will require critical service providers, including data centres and managed service firms, to report cyber incidents within 24 hours. By increasing transparency and response speed, the government hopes to limit the impact of future attacks.
The NCSC urges business leaders to treat cyber risk as a priority at the executive level. Understanding the urgency of action, maintaining up-to-date systems, and investing in employee awareness are essential steps to prevent further damage. As cyber activity grows “more intense, frequent, and intricate,” the agency stresses that a united effort between the government and private sector is crucial to protecting the UK’s digital ecosystem.
A Chinese court has handed down death sentences to 11 individuals involved in a vast, family-run criminal network that operated online scam and gambling schemes across the China-Myanmar border. The Wenzhou Intermediate People’s Court in Zhejiang Province announced the verdict on Monday, stating that the group was responsible for large-scale fraud, human trafficking, and the deaths of workers who attempted to flee the scam compounds.
According to official reports, the syndicate was managed by a family known locally as the Ming group, which had gained significant influence in the Kokang region of northern Myanmar — a semi-autonomous territory along China’s border. The group allegedly established multiple compounds, including a major base called “Crouching Tiger Villa,” where thousands of trafficked individuals were forced to participate in online scams and illegal gambling activities.
Investigations revealed that at the height of their operations, nearly 10,000 workers were involved in conducting cyber fraud schemes under the family’s control. The compounds were heavily guarded, and individuals who resisted orders or tried to escape faced violent punishment. The court cited several incidents of brutality, including a shooting in October 2023, where armed members opened fire on people attempting to flee one of the scam sites, resulting in four deaths.
The criminal organization’s activities reflected the broader challenge of cross-border cybercrime in Southeast Asia, where corruption and ongoing conflicts have allowed criminal groups to thrive. The Ming family and their associates reportedly leveraged their local political and military connections to protect their network and expand operations into drug trafficking, illegal casinos, and organized prostitution.
China intensified its crackdown on such scam networks in 2023 following mounting public pressure from families of trafficked victims and growing media attention. In November that year, Chinese authorities issued warrants for members of the Ming family, offering rewards ranging from $14,000 to $70,000 for information leading to their arrest. The group’s leader, who had reportedly served as a member of a regional parliament in Myanmar, took his own life while in custody, according to Chinese state media.
The court also sentenced five additional defendants to death with a two-year reprieve and imposed prison terms ranging from five to twenty-four years on twelve others. Chinese authorities stated that the group’s crimes led to at least ten deaths.
Beijing’s actions form part of a broader regional effort to dismantle cybercrime rings that target Chinese citizens. Authorities have reported that over 53,000 suspects and victims have been repatriated from scam compounds in northern Myanmar since the crackdown began.
Despite recent enforcement measures, experts note that Southeast Asia’s online scam networks remain highly adaptive. Many criminal groups are turning to cryptocurrencies and artificial intelligence to expand operations and conceal financial flows. Analysts warn that while the convictions mark a strong legal response, eradicating cross-border fraud will require deeper cooperation between governments, stricter financial monitoring, and ongoing protection for victims of trafficking.
Nvidia has strongly denied accusations from China that its computer chips include secret ways to track users or shut down devices remotely. The company also warned that proposals to add such features, known as backdoors or kill switches would create major security risks.
The dispute began when the Cyberspace Administration of China said it met with Nvidia over what it called “serious security issues” in the company’s products. Chinese officials claimed US experts had revealed that Nvidia’s H20 chip, made for the Chinese market under US export rules, could be tracked and remotely disabled.
Nvidia responded in a blog post from its Chief Security Officer, David Reber Jr., stating: “There are no back doors in NVIDIA chips. No kill switches. No spyware. That’s not how trustworthy systems are built and never will be.” The company has consistently denied that such controls exist.
Concerns Over Proposed US Law
While dismissing China’s claims, Nvidia also appeared to be addressing US lawmakers. A proposed “Chip Security Act” in the United States would require exported chips to have location verification and possibly a way to stop unauthorized use. Critics argue this could open the door to government-controlled kill switches, something Nvidia says is dangerous.
Senator Tom Cotton’s office says the bill is meant to keep advanced American chips out of the hands of “adversaries like Communist China.” The White House’s AI Action Plan also suggests exploring location tracking for high-end computing hardware.
Why Nvidia Says Kill Switches Are a Bad Idea
Reber argued that adding kill switches or hidden access points would be a gift to hackers and foreign threats, creating weaknesses in global technology infrastructure. He compared it to buying a car where the dealer could apply the parking brake remotely without your consent.
“There is no such thing as a ‘good’ secret backdoor,” he said. “They only create dangerous vulnerabilities.” Instead, Nvidia says security should rely on rigorous testing, independent verification, and compliance with global cybersecurity standards.
Reber pointed to the 1990s “Clipper Chip” project, when the US government tried to create a form of encryption with a built-in backdoor for law enforcement. Researchers quickly found flaws, proving it was unsafe. That project was abandoned, and many experts now see it as a warning against similar ideas.
According to Reber, Nvidia’s chips are built with layered security to avoid any single point of failure. Adding a kill switch, he says, would break that design and harm both innovation and trust in US technology.
A major Chinese telecom company has launched what it claims is the first commercial security system that can protect digital communication from even the most powerful future hackers — including those using quantum computers.
China Telecom Quantum, a state-owned firm, recently introduced a new kind of encryption system that combines two advanced technologies to create strong protection for data, phone calls, and user identity. This system was successfully used to make a secure phone call between Beijing and Hefei a distance of more than 1,000 kilometers — without risking any data leaks or breaches.
The Problem: Quantum Computers Could Break Today’s Encryption
As quantum computing continues to develop, it is expected to pose a serious threat to current cybersecurity systems. These new types of computers are extremely fast and powerful, and experts believe they could one day crack the encryption used to protect sensitive information like passwords, bank data, and government records.
To stay ahead of these threats, China Telecom has built a new system that combines:
1. A quantum-based method that sends encryption keys using the principles of quantum physics, making them nearly impossible to steal or intercept.
2. A mathematics-based method that protects data using very difficult equations that even quantum computers would find hard to solve.
This two-layer approach forms a highly secure framework to protect digital communication.
Tested in Real Conditions and Ready to Use
China Telecom says the system has been tested successfully and is ready to be used on a large scale. The company has already created secure quantum networks in 16 cities, including Beijing, Shanghai, Guangzhou, and Hefei.
These networks now make up a nationwide secure communication system. Among them, Hefei’s network is the largest and most advanced in the world, with eight main hubs and over 150 connection points spread across 1,147 kilometers. It is already being used by around 500 government departments and nearly 400 publicly owned companies.
Extra Tools for Safe Messaging and Document Management
The company has also introduced two new secure tools:
• Quantum Secret — a messaging and teamwork app designed to keep communication safe from even advanced hackers.
• Quantum Cloud Seal — a platform made for secure digital approvals, auditing, and managing documents for businesses and government offices.
Both tools are already being used across different industries in China.
With this launch, China has taken a major step toward building a future-ready cybersecurity system — one that can stay strong even as quantum computing technology continues to grow.
A newly discovered security hole in SAP’s NetWeaver platform is now being misused by cybercriminals, including ransomware gangs. This flaw allows attackers to run harmful commands on vulnerable systems from a distance—without even needing to log in.
SAP issued urgent software updates on April 24 after learning about the flaw, found in NetWeaver’s Visual Composer tool. The weakness, labeled CVE-2025-31324, makes it possible for attackers to upload files containing malware. Once inside, they can take full control of the affected system.
ReliaQuest, a cybersecurity firm that tracked this issue, now says that two known ransomware groups, RansomEXX and BianLian have joined in. Although they haven’t yet successfully launched any ransomware in these cases, their involvement shows that multiple criminal groups are watching this flaw closely.
Investigators linked BianLian to at least one incident using an IP address tied to their past operations. In another case, RansomEXX attackers used a backdoor tool called PipeMagic and also took advantage of a previously known bug in Microsoft’s Windows system (CVE-2025-29824).
Even though their first effort didn’t succeed, the attackers made another attempt using a powerful hacking framework called Brute Ratel. They delivered it using a built-in Microsoft function called MSBuild, which helped them run the attack in a sneaky way.
More recently, security teams from Forescout and EclecticIQ connected this activity to hackers linked to China. These groups, tracked under various names, were also found to be exploiting the same SAP vulnerability. In fact, they managed to secretly install backdoors on at least 581 SAP systems, including some tied to national infrastructure in the US, UK, and Saudi Arabia. Their plans may also include targeting nearly 2,000 more systems soon.
Experts believe these hidden access points could help foreign state-sponsored hackers gather intelligence, interfere with operations, or even achieve military or economic goals. Since SAP systems are often connected to important internal networks, the damage could spread quickly within affected organizations.
SAP has also fixed another weakness (CVE-2025-42999), which had been silently misused since March. To stay safe, system administrators are advised to apply the patches immediately. If they can’t update right away, disabling the Visual Composer tool can help. They should also restrict access to certain features and monitor their systems closely for anything unusual.
The US government’s cyber agency CISA has officially listed this flaw as a known risk. Federal departments were told to patch their systems by May 20 to avoid falling victim.
TikTok’s lead regulator in Europe, Ireland’s Data Protection Commission (DPC) said that TikTok accepted during the probe about hosting European user data in China. DPC’s deputy commissioner Graham Doyle said that “TikTok failed to verify, guarantee, and demonstrate that the personal data of (European) users, remotely accessed by staff in China, was afforded a level of protection essentially equivalent to that guaranteed within the EU,”
Besides this, Doyle said that TikTok’s failure to address the dangers of possible access to Europeans’s private data by Chinese authorities under China’s anti-terrorism, counter-espionage, and other regulations, which TikTok itself found different than EU’s data protection standards.
TikTok has declared to contest the heavy EU fine, despite the findings. TikTok Europe’s Christine Grahn stressed that the company has “never received a request” from authorities in China for European users’ data and that “TikTok” has never given EU users’ data to Chinese authorities. “We disagree with this decision and intend to appeal it in full,” Christine said.
TikTok boasts a massive 1.5 billion users worldwide. In recent years, the social media platform has been under tough pressure from Western governments due to worries about the misuse of data by Chinese actors for surveillance and propaganda aims.
In 2023, the Ireland DPC fined TikTok 354 million euros for violating EU rules related to the processing of children’s information. The DPC’s recent judgment also revealed that TikTok violated requirements under the EU’s General Data Protection Regulation (GDPR) by sending user data to China. The decision includes a 530 million euro administrative penalty plus a mandate that TikTok aligns its data processing rules with EU practices within 6 months.
The latest "Qwen2.5-Omni-7B" is a multimodal model- it can process inputs like audio/video, text, and images- while also creating real-time text and natural speech responses, Alibaba’s cloud website reports. It also said that the model can be used on edge devices such as smartphones, providing higher efficiency without giving up on performance.
According to Alibaba, the “unique combination makes it the perfect foundation for developing agile, cost-effective AI agents that deliver tangible value, especially intelligent voice applications.” For instance, the AI can be used to assist visually impaired individuals to navigate their environment via real-time audio description.
The latest model is open-sourced on forums GitHub and Hugging Face, after a rising trend in China post DeepSeek breakthrough R1 model open-source. Open-source means a software in which the source code is created freely on web for potential modification and redistribution.
In recent years, Alibaba claims it has open-sourced more that 200 generative AI models. In the noise of China’s AI dominance intensified by DeepSeek due to its shoe string budget and capabilities, Alibaba and genAI competitors are also releasing new, cost-cutting models and services an exceptional case.
Last week, Chinese tech mammoth Baidu launched a new multimodal foundational model and its first reasoning-based model. Likewise, Alibaba introduced its updated Qwen 2.5 AI model in January and also launched a new variant of its AI assistant tool Quark this month.
Alibaba has also made strong commitments to its AI plan, recently, it announced a plan to put $53 billion in its cloud computing and AI infrastructure over the next three years, even surpassing its spending in the space over the past decade.
CNBC talked with Kai Wang, Asia Senior equity analyst at Morningstar, Mr Kai told CNBC that “large Chinese tech players such as Alibaba, which build data centers to meet the computing needs of AI in addition to building their own LLMs, are well positioned to benefit from China's post-DeepSeek AI boom.” According to CNBC, “Alibaba secured a major win for its AI business last month when it confirmed that the company was partnering with Apple to roll out AI integration for iPhones sold in China.”
Italy’s data protection authority, Garante, has ordered Chinese AI chatbot DeepSeek to halt its operations in the country. The decision comes after the company failed to provide clear answers about how it collects and handles user data. Authorities fear that the chatbot’s data practices could pose security risks, leading to its removal from Italian app stores.
Why Did Italy Ban DeepSeek?
The main reason behind the ban is DeepSeek’s lack of transparency regarding its data collection policies. Italian regulators reached out to the company with concerns over whether it was handling user information in a way that aligns with European privacy laws. However, DeepSeek’s response was deemed “totally insufficient,” raising even more doubts about its operations.
Garante stated that DeepSeek denied having a presence in Italy and claimed that European regulations did not apply to it. Despite this, authorities believe that the company’s AI assistant has been accessible to Italian users, making it subject to the region’s data protection rules. To address these concerns, Italy has launched an official investigation into DeepSeek’s activities.
Growing Concerns Over AI and Data Security
DeepSeek is an advanced AI chatbot developed by a Chinese startup, positioned as a competitor to OpenAI’s ChatGPT and Google’s Gemini. With over 10 million downloads worldwide, it is considered a strong contender in the AI market. However, its expansion into Western countries has sparked concerns about how user data might be used.
Italy is not the only country scrutinizing DeepSeek’s data practices. Authorities in France, South Korea, and Ireland have also launched investigations, highlighting global concerns about AI-driven data collection. Many governments fear that personal data gathered by AI chatbots could be misused for surveillance or other security threats.
This is not the first time Italy has taken action against an AI company. In 2023, Garante temporarily blocked OpenAI’s ChatGPT over privacy issues. OpenAI was later fined €15 million after being accused of using personal data to train its AI without proper consent.
Impact on the AI and Tech Industry
The crackdown on DeepSeek comes at a time when AI technology is shaping global markets. Just this week, concerns over China’s growing influence in AI led to a significant drop in the U.S. stock market. The NASDAQ 100 index lost $1 trillion in value, with AI chipmaker Nvidia alone suffering a $600 million loss.
While DeepSeek has been removed from Italian app stores, users who downloaded it before the ban can still access the chatbot. Additionally, its web-based version remains functional, raising questions about how regulators will enforce the restriction effectively.
As AI continues to make new advancements, countries are becoming more cautious about companies that fail to meet privacy and security standards. With multiple nations now investigating DeepSeek, its future in Western markets remains uncertain.
Experts found that the devices had a hidden backdoor with a hard-coded IP address, enabling transmission of patient data. This is doable as the devices will start a link to a central monitoring system through a wireless or wired network, as per the product description.
The agency disclosed the codes that send data to a select IP address. The decoded data includes detailed information- patients, hospital department, doctor’s name, date of birth, admission date, and other details about the device users.
The flaw is filed under “CVE-2025-0626 with a CVSS v4 score of 7.7 out of 10” says Tom’s Hardware, while also talking about two other vulnerabilities “filed under CVE-2024- 12248, which indicates that it could allow an attacker to write data remotely to execute a code” and “CVE-2025-0683, which relates to privacy vulnerability.”
The three cybersecurity flaws can allow threat actors to dodge cybersecurity checks, get access, and also manipulate the device, the FDA says, not being “aware of any cybersecurity incidents, injuries, or deaths related to these cybersecurity vulnerabilities at this time."
FDA said that Contec Medical Systems is a device manufacturer in China, its products are used in the healthcare industry- clinics, hospitals, etc., in the US and European Union. However, experts found that these can also be bought from eBay for $599.
These devices are also rebranded as Epsimed MN-120, the FDA believes. Contec products are FDA-approved and sold in more than 130 countries. As part of its vulnerability disclosure process, the CISA research team discovered uncovered this flaw.
The agency has also mentioned that the IP address is not linked with any medical device manufacturer, “Still, it is a third-party university, though it doesn't mention the university, the IP address, or the country it is sending data to,” reports Tom Hardware.
The CISA has also assessed that the coding was meant to be a substitute update system because it doesn’t include standard update techniques like doing integrity checks or tracking updated versions. Instead, it offers a remote file sent to the IP address. To solve this, the FDA suggests removing the monitoring device from its network and tracking the patient’s physical condition and vital stats.