Microsoft and Google users, in particular, have been warned about ditching passwords for passkeys. Passwords are easy to steal and can unlock your digital life. Microsoft has been at the forefront, confirming it will delete passwords for more than a billion users. Google, too, has warned that most of its users will have to add passkeys to their accounts.
Instead of a username and password, passkeys use our device security to log into our account. This means that there is no password to hack and no two-factor authentication codes to bypass, making it phishing-resistant.
At the same time, the Okta team warned that it found threat actors exploiting v0, an advanced GenAI tool made by Vercelopens, to create phishing websites that mimic real sign-in webpages
A video shows how this works, raising concerns about users still using passwords to sign into their accounts, even when backed by multi-factor authentication, and “especially if that 2FA is nothing better than SMS, which is now little better than nothing at all,” according to Forbes.
According to Okta, “This signals a new evolution in the weaponization of GenAI by threat actors who have demonstrated an ability to generate a functional phishing site from simple text prompts. The technology is being used to build replicas of the legitimate sign-in pages of multiple brands, including an Okta customer.”
It is shocking how easy a login webpage can be mimicked. Users should not be surprised that today’s cyber criminals are exploiting and weaponizing GenAI features to advance and streamline their phishing attacks. AI in the wrong hands can have massive repercussions for the cybersecurity industry.
According to Forbes, “Gone are the days of clumsy imagery and texts and fake sign-in pages that can be detected in an instant. These latest attacks need a technical solution.”
Users are advised to add passkeys to their accounts if available and stop using passwords when signing in to their accounts. Users should also ensure that if they use passwords, they should be long and unique, and not backed up by SMS 2-factor authentication.
A recent investigative report has revealed critical cybersecurity concerns in one of the European Union’s key border control systems. The system in question, known as the Second Generation Schengen Information System (SIS II), is a large-scale database used across Europe to track criminal suspects, unauthorized migrants, and missing property. While this system plays a major role in maintaining regional safety, new findings suggest its digital backbone may be weaker than expected.
According to a joint investigation by Bloomberg and Lighthouse Reports, SIS II contains a significant number of unresolved security issues. Though there is no confirmed case of data being stolen, experts warn that poor account management and delayed software fixes could leave the system open to misuse. One of the main issues flagged was the unusually high number of user accounts with access to the database; many of which reportedly had no clear purpose.
SIS II has been in use since 2013 and stores over 90 million records, most of which involve things like stolen vehicles and documents. However, about 1.7 million entries involve individuals. These personal records often remain unknown to those listed until they are stopped by police or immigration officers, raising concerns about privacy and oversight in the event of a breach.
One legal researcher familiar with European digital systems warned that a successful cyberattack could lead to wide-ranging consequences, potentially affecting millions of people across the EU.
Another growing concern is that SIS II is currently hosted on a closed, internal network—but that is about to change. The system is expected to be integrated with a new border management tool called the Entry/Exit System (EES), which will require travelers to provide fingerprints and facial images when entering or leaving countries in the Schengen zone. Since the EES will be accessible online, experts worry it could create a new path for hackers to reach SIS II, making the whole network more vulnerable.
The technical work behind SIS II is managed by a French company, but investigations show that fixing critical security problems has taken far longer than expected. Some fixes reportedly took several months or even years to implement, despite contractual rules that require urgent patches to be handled within two months.
The EU agency responsible for overseeing SIS II, known as EU-Lisa, contracts much of the technical work to private firms. Internal audits raised concerns that management wasn’t always informed about known security risks. In response, the agency claimed that it regularly tests and monitors all systems under its supervision.
As Europe prepares to roll out more connected security tools, experts stress the need for stronger safeguards to protect sensitive data and prevent future breaches.
Federal agents are investigating allegations that a former employee of a Chicago-based firm, DigitalMint, which specializes in cryptocurrency payments and ransomware negotiations, may have profited by collaborating with hackers in extortion cases. Founded in 2014, DigitalMint operates under the name Red Leaf Chicago and is recognized for securing cryptocurrency payments for companies that face ransomware threats.
DigitalMint has taken over 2,000 ransomware cases since 2017, offering services like direct negotiations with hackers and incident response. The clients range from small firms to Fortune 500 companies.
DigitalMint President Marc Jason told partner firms that the US Department of Justice (DoJ) is investigating the allegations. The employee (identity unknown) was sacked soon after the scam was found. According to Bloomberg, Grens said, “As soon as we were able, we began communicating the facts to affected stakeholders.”
DigitalMint is currently working with the DoJ, and it clarified that the company is not the target of investigation. Grens did not provide more details as the investigation is ongoing. The DoJ declined to offer any comments.
The incident has led a few firms to warn clients against dealing with DigitalMint, concerned about the dangers involved in ransomware deals. Ransomware attacks can compromise systems, leak sensitive information, and encrypt data. The ransom demands sometimes go upto millions of dollars, worldwide, the extortion attacks cost billions of dollars every year.
The controversy has also raised questions about conflicts of interest in the ransomware negotiation industry. According to James Talientoo, chief executive of the cyber intelligence services company AFTRDRK, “A negotiator is not incentivized to drive the price down or to inform the victim of all the facts if the company they work for is profiting off the size of the demand paid. Plain and simple.”
Security experts cautioned that paying ransom is a dangerous effort, even when done by expert ransom negotiation firms. A payment helps in furthering the operations of ransomware gangs, and sometimes it can also lead to further attacks.
In the first six months of 2025, the cryptocurrency sector has suffered thefts exceeding $2 billion, marking the highest ever recorded for this period. The findings, based on verified research from industry watchdogs, highlight a sharp rise in both the frequency and scale of digital asset breaches.
Surge in Attacks: Over 75 Major Incidents
Between January and June, at least 75 confirmed hacks and exploits were reported. These incidents collectively amounted to around $2.1 billion in losses, surpassing previous mid-year records. Losses of over $100 million occurred in multiple months, indicating that the threat is persistent and widespread, not isolated to one-off events.
A Single Breach Makes Up Majority of Losses
One particular cyberattack early in the year stood out for its scale. In February 2025, a high-profile breach of a crypto exchange caused losses estimated at $1.5 billion, accounting for nearly 70% of total thefts in the first half of the year. This incident has skewed the average size of each attack upward to $30 million, double what it was during the same period last year. However, large-scale thefts have continued even outside this major event, showing a broader trend of growing risk.
Geopolitical Dimensions: Government-Linked Groups Involved
Cybercrime experts have attributed a substantial share of these losses—approximately $1.6 billion to attackers allegedly tied to nation-states. Analysts suggest these operations may be used to bypass economic restrictions or finance state agendas. The involvement of politically motivated groups points to the increasingly strategic nature of cyber theft in the crypto space.
A separate incident in June targeted a leading exchange in the Middle East, resulting in nearly $90 million in losses. Investigators believe this attack may have had symbolic motives, as funds were transferred to unusable wallets, hinting it wasn’t purely financially driven.
Methods of Attack: Internal Weaknesses Prove Costly
Reports reveal that infrastructure-based breaches, such as stolen private keys, employee collusion, and vulnerabilities in user-facing systems were responsible for over 80% of the losses. These types of attacks tend to cause far more financial damage than technical bugs in blockchain code.
While smart contract vulnerabilities, including re-entrancy and flash loan exploits, still pose risks, they now represent a smaller share of total thefts. This is partly due to quicker response times and faster security patching in decentralized protocols.
Industry Response: The Call for Stronger Security
Experts are urging all crypto companies to reinforce their defenses. Key recommendations include storing assets offline (cold storage), using multi-factor authentication for all access points, and conducting regular audits. Addressing insider threats and improving staff awareness through training is also critical.
Additionally, collaboration between law enforcement agencies, financial crime units, and blockchain analysts has been identified as essential. Timely sharing of data and cross-border tracking could prove vital in curbing large-scale thefts as digital assets become more intertwined with national security concerns.