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Qantas Hit by Cyberattack Days After FBI Warning on Airline 2FA Bypass Threat

 

Just days after the FBI warned airlines about a surge in 2FA bypass attacks by the hacker group Scattered Spider, Australian airline Qantas has confirmed a major cybersecurity incident. The breach, which targeted a third-party platform used for customer service, has potentially exposed personal data—including names, emails, birth dates, and frequent flyer details—of up to six million customers. 

The attack exploited social engineering tactics, a signature method of Scattered Spider, where attackers impersonate staff to deceive IT help desks into granting unauthorized access. Brett Winterford of Okta described the group as a loosely organized, profit-driven collective that thrives on peer recognition and repeated attacks across successful sectors. In a July 4 statement, Qantas Group CEO Vanessa Hudson assured that no credit card, passport, or financial data was compromised, and Qantas’ core systems remain secure. 

The airline said it contained the breach on July 1 and is working with cybersecurity experts to complete a forensic investigation. Affected customers began receiving email notifications from July 3, with further updates promised on the exact data exposed. Hudson emphasized the company’s commitment to transparency and robust response efforts, saying, “We are treating this incredibly seriously and have implemented additional security measures.” 

Cybersecurity professionals, including ex-FBI agent Adam Marrè and OPSWAT's James Neilson, stressed the need for heightened vigilance in the aviation sector, especially during peak travel periods. Marrè urged organizations to strengthen supply chain defenses and advised consumers to verify all communications from airlines. 

Graylog’s Ross Brewer, a Qantas customer himself, noted that clear and precise communication from the airline is critical to avoiding unnecessary panic and maintaining public trust. With airlines holding vast stores of sensitive data, experts warn the industry is an increasingly attractive target for cybercriminals. The Qantas breach reinforces the FBI’s call for all sectors to evaluate their cybersecurity hygiene and response strategies without delay.

Encryption Drops While Extortion-Only Attacks Surge

 

Ransomware remains a persistent threat to organisations worldwide, but new findings suggest cybercriminals are shifting their methods. According to the latest report by Sophos, only half of ransomware attacks involved data encryption this year, a sharp decline from 70 per cent in 2023.  
The report suggests that improved cybersecurity measures may be helping organisations stop attacks before ransomware payloads are deployed. However, larger organisations with 3,001 to 5,000 employees still reported encryption in 65 per cent of attacks, possibly due to the challenges of monitoring vast IT infrastructures. 

As encryption-based tactics decrease, attackers are increasingly relying on extortion-only methods. These attacks, which involve threats to release stolen data without encrypting systems, have doubled to 6 per cent this year. Smaller businesses were disproportionately affected 13 per cent of firms with 100 to 250 employees reported facing such attacks, compared to just 3 per cent among larger enterprises.  

While Sophos highlighted software vulnerabilities as the most common entry point for attackers, this finding contrasts with other industry data. Allan Liska, a ransomware expert at Recorded Future, said leaked or stolen credentials remain the most frequently reported initial attack vector. Sophos, however, reported a drop in attacks starting with credential compromise from 29 per cent last year to 23 per cent in 2024 suggesting variations in data visibility between firms. 

The report also underscored the human cost of cyberattacks. About 41 per cent of IT and security professionals said they experienced increased stress or anxiety after handling a ransomware incident. Liska noted that while emotional tolls are predictable, they are often overlooked in incident response planning.

Russian APT28 Targets Ukraine Using Signal to Deliver New Malware Families

 

The Russian state-sponsored threat group APT28, also known as UAC-0001, has been linked to a fresh wave of cyberattacks against Ukrainian government targets, using Signal messenger chats to distribute two previously undocumented malware strains—BeardShell and SlimAgent. 

While the Signal platform itself remains uncompromised, its rising adoption among government personnel has made it a popular delivery vector for phishing attacks. Ukraine’s Computer Emergency Response Team (CERT-UA) initially discovered these attacks in March 2024, though critical infection vector details only surfaced after ESET notified the agency in May 2025 of unauthorised access to a “gov.ua” email account. 

Investigations revealed that APT28 used Signal to send a macro-laced Microsoft Word document titled "Акт.doc." Once opened, it initiates a macro that drops two payloads—a malicious DLL file (“ctec.dll”) and a disguised PNG file (“windows.png”)—while modifying the Windows Registry to enable persistence via COM-hijacking. 

These payloads execute a memory-resident malware framework named Covenant, which subsequently deploys BeardShell. BeardShell, written in C++, is capable of downloading and executing encrypted PowerShell scripts, with execution results exfiltrated via the Icedrive API. The malware maintains stealth by encrypting communications using the ChaCha20-Poly1305 algorithm. 

Alongside BeardShell, CERT-UA identified another tool dubbed SlimAgent. This lightweight screenshot grabber captures images using multiple Windows API calls, then encrypts them with a combination of AES and RSA before local storage. These are presumed to be extracted later by an auxiliary tool. 

APT28’s involvement was further corroborated through their exploitation of vulnerabilities in Roundcube and other webmail software, using phishing emails mimicking Ukrainian news publications to exploit flaws like CVE-2020-35730, CVE-2021-44026, and CVE-2020-12641. These emails injected malicious JavaScript files—q.js, e.js, and c.js—to hijack inboxes, redirect emails, and extract credentials from over 40 Ukrainian entities. CERT-UA recommends organisations monitor traffic linked to suspicious domains such as “app.koofr.net” and “api.icedrive.net” to detect any signs of compromise.

UK Retail Sector Hit by String of Cyberattacks, NCSC Warns of Wake-Up Call

 

The United Kingdom’s National Cyber Security Centre (NCSC) has issued a stark warning following a wave of cyberattacks targeting some of the country’s most prominent retail chains. Calling the incidents a “wake-up call,” the agency urged organisations to strengthen their cybersecurity posture amid growing threats. 

The NCSC, a division of GCHQ responsible for cybersecurity guidance across the UK’s public and private sectors, confirmed it is working closely with the impacted retailers to understand the scope and impact of the attacks. 

“The disruption caused by the recent incidents impacting the retail sector are naturally a cause for concern to those businesses affected, their customers and the public,” said NCSC CEO Dr Richard Horne. 

“These incidents should act as a wake-up call to all organisations. I urge leaders to follow the advice on the NCSC website to ensure they have appropriate measures in place to help prevent attacks and respond and recover effectively.” 

In the past two weeks, major British retailers Marks & Spencer, Co-op, and Harrods have all reported cybersecurity breaches. Harrods confirmed that threat actors attempted to infiltrate its systems on May 1st, prompting the luxury department store to restrict access to certain websites—a move that suggests defensive measures were enacted during an active threat. Around the same time, the Co-operative Group revealed it was also the target of a cyberattack. 

In an internal memo, Co-op’s Chief Digital and Information Officer Rob Elsey warned staff to exercise caution with email and Microsoft Teams usage, adding that VPN access had been shut down as part of containment efforts. Marks & Spencer, one of the UK’s most iconic retail brands, faced disruptions across its online ordering platform and in-store services such as contactless payments and Click & Collect. The incident has since been identified as a ransomware attack, with sources confirming the involvement of threat actors linked to the Scattered Spider group. 

The attackers reportedly used DragonForce ransomware—tactics that have also been deployed in previous high-profile breaches at companies like MGM Resorts, Coinbase, and Reddit. In light of these incidents, the UK Parliament’s Business and Trade Committee has sought clarification from the CEOs of Marks & Spencer and Co-op on the level of support received from government agencies such as the NCSC and the National Crime Agency.

Apple Sends Spyware Threat Alerts to Users in 100 Countries

 

Apple has issued threat notifications to users across 100 countries, warning them that their devices may have been targeted by sophisticated commercial spyware. The alerts, sent earlier this week, were confirmed by at least two recipients, including Italian journalist Cyrus Pellegrino and Dutch political commentator Eva Vlaardingerbroek.  

Pellegrino, a reporter with Fanpage, disclosed receiving the warning in a column published on Wednesday. He suggested that the attempted breach could be related to a wider wave of attacks involving Paragon spyware detected by WhatsApp earlier this year. 

His colleague, Fanpage editor Francesco Cancellato, had also previously been targeted with the same spyware after publishing investigations critical of Italy’s ruling far-right party, Brothers of Italy, led by Prime Minister Giorgia Meloni. 

Although the exact spyware used in these latest incidents remains unconfirmed, Pellegrino noted similarities with the Paragon-linked attacks. The WhatsApp security team had identified around 90 such cases in January, many involving individuals known for criticising Meloni’s government. Meloni has denied any association with the surveillance activity. 

In a post on X (formerly Twitter), Vlaardingerbroek confirmed receiving Apple’s notification but said she had no information about who might be behind the intrusion attempt. “Someone is trying to intimidate me,” she wrote, adding, “It won’t work.” Apple’s notification to victims warned that the attackers were likely targeting them because of “who you are or what you do.” 

The company said it had “high confidence” in its findings, though it did not attribute the attacks to any specific actor or region. Apple has issued similar warnings periodically since 2021 as part of its broader threat detection program. According to a recent blog post by the company, users in over 150 countries have been notified of such threats to date. The blog post described these spyware attacks as some of the most advanced digital threats currently in existence due to their global reach, high cost, and technical complexity. Apple did not respond to media queries regarding the latest round of notifications. 

In his article, Pellegrino described the chilling moment he received the alert. Concerned about being monitored, he immediately signalled his wife to stay silent and placed his phone in a microwave—a commonly cited makeshift method for blocking signals—before discussing the alert. He warned about the intrusive nature of such surveillance software, which can operate without any interaction from the target.  
“From the moment the phone is infected, the spyware operator has full access to the device, can read, see, and download everything,” he wrote. “Phones are the black boxes of our existence.” 

The revelations come amid growing concerns over the use of commercial spyware by state and non-state actors, with journalists, activists, and political opponents often among the primary targets.

ToddyCat Hackers Exploit ESET Vulnerability to Deploy Stealth Malware TCESB

 

A cyber-espionage group known as ToddyCat, believed to have ties to China, has been observed exploiting a security flaw in ESET’s software to deliver a new and previously undocumented malware strain called TCESB, according to fresh findings by cybersecurity firm Kaspersky. The flaw, tracked as CVE-2024-11859, existed in ESET’s Command Line Scanner. 

It improperly prioritized the current working directory when searching for the Windows system file “version.dll,” making it possible for attackers to substitute a malicious version of the file and gain control of the software’s behavior through a method known as DLL Search Order Hijacking. 

ESET has since released security updates in January 2025 to correct the issue, noting that attackers would still require administrative privileges to take advantage of the bug.  
Kaspersky’s research linked this technique to ToddyCat activity discovered in early 2024, where the suspicious “version.dll” file was planted in temporary directories on compromised systems. TCESB, the malware delivered via this method, had not been linked to the group before. It is engineered to evade monitoring tools and security defenses by executing payloads discreetly. 

TCESB is based on a modified version of the open-source tool EDRSandBlast, designed to tamper with low-level Windows kernel structures. It specifically targets mechanisms used by security solutions to track system events, effectively blinding them to malicious activity. To perform these actions, TCESB employs a Bring Your Own Vulnerable Driver (BYOVD) tactic, installing an outdated Dell driver (DBUtilDrv2.sys) that contains a known vulnerability (CVE-2021-36276). 

This method grants the malware elevated access to the system, enabling it to bypass protections and alter kernel processes. Similar drivers have been misused in the past, notably by other threat actors like the North Korea-linked Lazarus Group. Once the vulnerable driver is active, TCESB runs a loop that monitors for a payload file with a specific name. 

When the file appears, it is decrypted using AES-128 encryption and executed immediately. However, the payloads themselves were not recovered during analysis. Security analysts recommend that organizations remain vigilant by tracking the installation of drivers with known weaknesses and watching for kernel-level activity that shouldn’t typically occur, especially in environments not configured for debugging. The discovery further highlights ToddyCat’s ability to adapt and refine its tools. 

The group has been active since at least 2020, frequently targeting entities in the Asia-Pacific region with long-term, data-driven attacks.

Zacks Investment Research Faces Another Data Breach Impacting 12 Million Accounts

 

Zacks Investment Research reportedly suffered a data breach in 2024, exposing sensitive information from approximately 12 million accounts.

The American investment research firm provides data-driven insights through its proprietary stock assessment tool, ‘Zacks Rank,’ assisting investors in making informed financial decisions.

In late January, a threat actor posted data samples on a hacker forum, claiming the breach occurred in June 2024. The exposed data, available for purchase using cryptocurrency, includes full names, usernames, email addresses, physical addresses, and phone numbers. Despite multiple inquiries from BleepingComputer, Zacks has not responded to confirm the authenticity of the leaked data.

The hacker further claimed to have accessed the company’s active directory as a domain administrator and stolen the source code for Zacks.com and 16 other websites, including internal portals. Samples of the stolen source code were shared as proof of the breach.

The leaked database has now been listed on Have I Been Pwned (HIBP), a platform that allows users to check if their personal information has been compromised. HIBP verified that the database contained 12 million unique email addresses, IP addresses, usernames, physical addresses, phone numbers, and passwords stored as unsalted SHA-256 hashes.

However, approximately 93% of the email addresses found in the breach had already been exposed in previous leaks associated with Zacks or other platforms.

Zacks has not officially confirmed this latest breach. If verified, it would mark the company's third major data breach in four years.

  • January 2023: Zacks disclosed that hackers had infiltrated its networks between November 2021 and August 2022, compromising the personal data of 820,000 customers.
  • June 2023: HIBP verified another leaked database originating from Zacks. The breach affected 8.8 million users, exposing email addresses, usernames, unsalted SHA-256 passwords, physical addresses, phone numbers, and full names.
  • May 2020: Data from Zacks reportedly surfaced online, indicating an earlier security incident.

While no official confirmation has been issued, HIBP has verified the recent leak with a high degree of confidence, suggesting that the compromised data stems from a new security incident.

DeepSeek-R1 AI Under Fire for Severe Security Risks

 

DeepSeek-R1, an AI model developed in China, is facing intense scrutiny following a study by cybersecurity firm Enkrypt AI, which found it to be 11 times more vulnerable to cybercriminal exploitation compared to other AI models. The research highlights significant security risks, including the AI’s susceptibility to generating harmful content and being manipulated for illicit activities. 

This concern is further amplified by a recent data breach that exposed over a million records, raising alarms about the model’s safety. Since its launch on January 20, DeepSeek has gained immense popularity, attracting 12 million users in just two days—surpassing ChatGPT’s early adoption rate. However, its rapid rise has also triggered widespread privacy and security concerns, leading multiple governments to launch investigations or impose restrictions on its usage.  
Enkrypt AI’s security assessment revealed that DeepSeek-R1 is highly prone to manipulation, with 45% of safety tests bypassing its security mechanisms. The study found that the model could generate instructions for criminal activities, illegal weapon creation, and extremist propaganda. 

Even more concerning, cybersecurity evaluations showed that DeepSeek-R1 failed in 78% of security tests, successfully generating malicious code, including malware and trojans. Compared to OpenAI’s models, DeepSeek-R1 was 4.5 times more likely to be exploited for hacking and cybercrime. 

Sahil Agarwal, CEO of Enkrypt AI, emphasized the urgent need for stronger safety measures and continuous monitoring to mitigate these threats. Due to these security concerns, several countries have initiated regulatory actions. 

Italy was the first to launch an investigation into DeepSeek’s privacy and security risks, followed by France, Germany, the Netherlands, Luxembourg, and Portugal. Taiwan has prohibited government agencies from using the AI, while South Korea has opened a formal inquiry into its data security practices. 

The United States is also responding aggressively, with NASA banning DeepSeek from federal devices. Additionally, lawmakers are considering legislation that could impose severe fines and even jail time for those using the platform in the country. The growing concerns surrounding DeepSeek-R1 come amid increasing competition between the US and China in AI development. 

Both nations are pushing the boundaries of AI for military, economic, and technological dominance. However, Enkrypt AI’s findings suggest that DeepSeek-R1’s vulnerabilities could make it a dangerous tool for cybercriminals, disinformation campaigns, and even biochemical warfare threats. With regulatory scrutiny intensifying worldwide, the AI’s future remains uncertain as authorities weigh the risks associated with its use.