US warns of huge cyber-espionage campaign, and other cybersecurity news to know this month

One of the largest known cyber-espionage campaigns has hit companies running critical US infrastructure, according to Western intelligence agencies and Microsoft.

Microsoft analysts say the group, which it is calling Volt Typhoon, appears to be developing capabilities to allow it to disrupt critical US-Asia communications infrastructure that would be used in the event of a crisis. The group could also trigger cyberattacks against oil and gas pipelines and rail systems, the US State Department has been warned.

The group has carried out its work by exploiting vulnerabilities in cybersecurity platform FortiGuard, the Financial Times reports.

The US and numerous international cybersecurity authorities have issued a joint Cybersecurity Advisory notice highlighting the "cluster of activity". They say that one of Volt Typhoon's primary tactics is Living off the Land (LOTL) attacks, which use software and functions already available in the target system – such as Windows – to evade detection.

The BBC, British Airways (BA) and some of Britain's other biggest companies have been hit by cyberattacks as a result of data hacks at outsourcing suppliers.

The BBC and BA had staff data compromised by an attack on software used by a firm that provides payroll services for nearly half of FTSE 100 companies. A Russian-speaking criminal gang was behind the cybersecurity breach of Zellis software, the Financial Times reports.

The hack targeted a weakness in MOVEit file-transfer software, underscoring how companies are vulnerable to attacks on flaws in various areas of their software supply chain.

The MOVEit security flaw has also allowed hackers to steal data from US users, security researchers say. Organizations that use MOVEit should ready themselves for potential extortion and publication of the stolen data, a figure in the sector says.

Two-thirds of companies have faced ransomware attacks in the past year, with the exploitation of security vulnerabilities the biggest cause, according to a survey by security firm Sophos covering 14 countries. Moreover, the US-led Joint Ransomware Task Force notes that "malicious actors have adjusted their ransomware tactics to be more destructive and impactful."

UK pension schemes run by major retailer Marks and Spencer, drinks company Diageo and consumer goods manufacturer Unilever have also fallen victim to cyberattacks on outsourcing firm Capita this year. And local government bodies say their files have been put at risk by an "unsecured cloud-based data storage system" controlled by Capita, according to the Financial Times.

Capita says it is facing costs of $19 million to $25 million from its efforts to deal with the incident, including specialist professional fees, recovery and remediation costs and investment to reinforce its cybersecurity system.

The biggest cyberthreat stemming from AI will come from deep fakes, according to Microsoft President Brad Smith. He believes realistic-looking but false content could drive government-led "cyber-influence operations". Smith says there is a need for AI licensing, with "obligations to protect security, physical security, cybersecurity, national security," Reuters reports.

US cloud service providers looking to operate in the European Union (EU) could need to set up a joint venture with an EU-based company to obtain an EU cybersecurity label. A draft proposal from EU cybersecurity agency ENISA says the cloud service must be run and maintained in the EU, and all customer data must be stored and processed there.

Portugal may ban telecom operators from using Chinese equipment in 5G networks. Security risks arise when suppliers are based in countries that do not have agreements on cybersecurity, data and intellectual property protection with Portugal or the EU, the Portuguese cybersecurity council says.

A "heavy cyberattack" hit the Italian Industry Ministry in late May. The attack took out its web portal and applications. Italian institutions have recently been targeted by several cyberattacks, raising questions over their network safety, according to Bloomberg.

Indonesia's biggest Islamic lender is working to boost its cybersecurity after 15 million of its customers had their details published online. The data breach at Bank Syariah Indonesia was the biggest ever at an Indonesian financial institution, a cybersecurity expert said.

The world's biggest privately-owned cybersecurity lab has opened in the UK. It will help check how safe vehicles, planes and industrial systems are from cyberattack. The site is run by private company IOActive and is located near the base of UK intelligence agency GCHQ.

Former US President Donald Trump's decision to fire a top cybersecurity official after he lost the 2020 election is to be probed by a US special counsel. Christopher Krebs was fired days after the Cybersecurity and Infrastructure Security Agency he headed up described the election as "the most secure in American history".

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