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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.

Ransomware Payments Drop 35% in 2024 Amid Increased Resistance and Law Enforcement Crackdowns

 

Ransomware payments saw a significant decline in 2024, dropping 35% year-over-year to $813.55 million from the $1.25 billion recorded in 2023. Additionally, only about 30% of victims engaged in ransom negotiations proceeded with payments.

These insights, reported by blockchain intelligence firm Chainalysis, highlight a downward trend despite 2024 being a record-breaking year for ransomware attacks. A notable incident involved a Fortune 50 company paying $75 million to the Dark Angels ransomware group—the largest known payout of the year. Meanwhile, cybersecurity firm NCC Group recorded 5,263 successful ransomware breaches in 2024, marking the highest-ever attack volume.

Despite the increase in attacks, ransomware actors are facing difficulties in extorting payments. Chainalysis noted a surge in disclosures on data leak sites, indicating that cybercriminals are resorting to increased exposure tactics to pressure victims. However, a growing number of organizations are resisting ransom demands.

This shift is driven by heightened cybersecurity awareness, improved protective measures, and a realization that attackers’ promises to delete stolen data are often unreliable. Legal scrutiny has also played a role, pushing companies to forgo negotiations, instead opting to restore systems from backups while mitigating reputational risks.

Another critical factor behind the payment decline is the impact of law enforcement operations. In 2024, global agencies targeted ransomware groups, with ‘Operation Cronos’ taking down LockBit, one of the most prolific gangs. Additionally, the collapse of ALPHV/BlackCat created instability, leaving smaller groups unable to dominate the space, despite RansomHub’s attempts.

Chainalysis data indicates that even when ransoms were paid, they were often significantly reduced through negotiations. Cybercriminals are also facing increasing difficulties laundering their illicit earnings. Crackdowns on cryptocurrency mixers and non-compliant exchanges have forced ransomware actors to shift to alternative methods, such as cross-chain bridges, to obscure transactions.

Centralized exchanges remained the primary cash-out method in 2024, handling 39% of all ransomware proceeds. However, an increasing number of affiliates are now opting to hold funds in personal wallets, wary of law enforcement tracking and potential arrests.

Despite the surge in ransomware activity, victims are becoming more resistant, and law enforcement is tightening its grip, signaling a potential long-term shift in the cybersecurity landscape.

Chinese Hackers Exploit SSH Daemon to Maintain Persistent Access in Cyber-Espionage Operations

 

A sophisticated cyber-espionage campaign attributed to the Chinese hacking group Evasive Panda, also known as DaggerFly, has been uncovered, targeting network appliances through a newly identified attack suite. According to cybersecurity researchers at Fortinet’s FortiGuard Labs, the attackers are leveraging a malicious toolkit named ELF/Sshdinjector.A!tr, injecting malware into the SSH daemon (SSHD) to establish long-term access and execute covert operations. 

Active since at least mid-November 2024, this attack method enables unauthorized control over compromised systems. While the initial entry point remains unclear, once infiltrated, a dropper module determines whether the device is already infected and assesses its privilege level. If running under root permissions, the malware deploys multiple binaries, including libssdh.so, which serves as the primary backdoor responsible for command-and-control (C2) communication and data exfiltration. 

Additional components such as “mainpasteheader” and “selfrecoverheader” are used to maintain persistence. The injected SSH library covertly monitors and executes commands received from a remote C2 server, allowing the attackers to conduct system reconnaissance, steal credentials, manipulate files, and execute arbitrary commands. 

The malware supports fifteen different functions, ranging from collecting system details and listing active processes to reading sensitive user data and gaining remote shell access. It can also upload and download files, delete specific records, rename files, and notify the attacker when the malware is active. 

Despite previous detections of similar threats, FortiGuard’s research is the first to provide a detailed analysis of how ELF/Sshdinjector.A!tr operates. The group behind this attack, Evasive Panda, has been active since 2012 and has previously conducted cyber-espionage campaigns, including supply chain attacks via ISPs in Asia and targeted intelligence collection from U.S. organizations. 

The group was also recently linked to deploying a novel macOS backdoor. Notably, Fortinet researchers leveraged AI-assisted tools to aid in the malware’s reverse engineering process. While challenges such as hallucinations, extrapolation errors, and omissions were encountered, the experiment demonstrated AI’s growing potential in cybersecurity research. 

Fortinet assures that its customers are already protected against this threat through its FortiGuard AntiVirus service, which detects the malware as ELF/Sshdinjector.A!tr and Linux/Agent.ACQ!tr. The company has also provided hashes of identified samples on VirusTotal for further investigation by the security community.

Mandiant Uncovers QR Code Exploit to Bypass Browser Isolation

 


Mandiant researchers have discovered an innovative method to circumvent browser isolation technology by leveraging QR codes to establish command-and-control (C2) operations. This finding highlights potential vulnerabilities in existing web browser security measures.

Understanding Browser Isolation

Browser isolation is a widely adopted security strategy where local browser requests are routed through remote browsers hosted in cloud environments or virtual machines. By executing web scripts and content remotely, this approach ensures that malicious code does not impact local devices. Only the visual representation of the web page is transmitted back to the local browser, offering strong protection.

Traditionally, C2 servers use HTTP for communication. However, browser isolation filters out malicious traffic, rendering such methods ineffective. Mandiant's new technique showcases a way to bypass these restrictions, emphasizing the need for enhanced security protocols.

The Role of QR Codes in the Exploit

Command-and-control channels enable attackers to communicate with compromised systems for remote access and data exfiltration. Browser isolation serves as a defense mechanism, executing browser activity in a secure sandboxed environment, preventing malicious scripts embedded in HTTP responses from reaching the local system.

The innovative method discovered by Mandiant involves encoding commands within QR codes displayed on webpages. Since browser isolation preserves visual elements, the encoded QR codes can successfully return to the originating client. Malware on the compromised device then decodes the QR codes to execute instructions.

Proof-of-Concept and Limitations

Mandiant demonstrated this exploit on Google Chrome using Cobalt Strike's External C2 feature. Although functional, the attack has several limitations:

  • Data Size Restrictions: QR codes can transmit a maximum of 2,189 bytes per stream, further reduced by interpretation issues.
  • Latency: The data transfer rate is approximately 438 bytes per second, making it unsuitable for large payloads or high-speed communication.
  • Bandwidth Constraints: These factors limit the efficiency of the exploit for large-scale operations.

Additional Defenses and Mitigation

Mandiant's study did not account for additional security measures such as domain reputation checks, URL scanning, and data loss prevention, which could mitigate this attack. The real-world feasibility of the exploit depends on bypassing these defenses.

Despite its limitations, the QR code method poses a risk, particularly in security-critical environments. Administrators should take proactive measures, including:

  • Monitoring for unusual traffic patterns.
  • Detecting headless browsers operating in automation mode.

Conclusion

While the QR code exploit demonstrates the ingenuity of attackers, it also underscores the importance of continuous improvement in browser isolation technologies. Organizations must remain vigilant and adopt comprehensive security strategies to mitigate emerging threats.