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OpenAI Discloses AI-Driven Breach During Cybersecurity Testing

An internal cybersecurity evaluation to evaluate Hugging Face's offensive cyber capabilities allowed two of the company's advanced A...

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financial services
AI Risks AI technology API Banking Security Cyber Security Digital Payment Digital Risk financial services

Digital Banking’s Expanding Ecosystem Creates New Cybersecurity Challenges, Report Warns

 

The rapid development of digital banking services and financial technologies is resulting in an unprecedented cybersecurity paradigm, which the current security posture is not equipped to handle,” says the report titled ‘Digital Threat Report 2025-26’, complied by the Ministry of Electronics and Information Technology (MeitY), CERT-In, CSIRT-Fin, and cybersecurity firm SISA. “The cyber security landscape for banking is shifting due to an increasing reliance on connected financial systems, embedded finance, artificial intelligence (AI), real-time payments, APIs, and third-party services,” says the report. 

“Unlike isolated legacy banking systems, where the attack surface was limited to the core banking application, contemporary interconnected systems allow attackers to target relationships rather than the bank itself”. It further says that modern cyber threats are now exploiting the trust surface between systems rather than infiltrating individual institutions and organizations. “Modern cyber threats are targeting the biometric onboarding, partner applications, AI-driven payments, processing and settlement flows, APIs, programmable finance, and connected payment ecosystems. 

The attack surface has broadened with the interconnectedness of finance and the involvement of numerous entities in delivering financial services,” the report says. According to the report, the cyber security challenges for the banking sector and the financial ecosystem at large are also exacerbated by a lack of harmonization in regulatory oversight; hence, a regulatory lag is allowing threat actors to expand their reach. 
“Banking identities in digital payment systems are the cornerstone of contemporary finance,” the report states. “An attacker compromising an individual’s digital identity would be able to threaten, disrupt, and impact multiple financial accounts, applications, and platforms rather than individual banking applications as traditionally known. 

Attackers could also compromise the integrity of compliance monitoring systems, masking their actions or suppressing critical security alerts by modifying logs or monitoring tools.” “The traditional network perimeter is no longer the exclusive domain of a bank or financial institution,” the report adds. 

“Banks should transition from a mindset of protecting the network to securing the extended, distributed ecosystem comprising interconnected platforms, partnerships, APIs, cloud infrastructures, AI, and identity management.” The report says that as digital finance grows more sophisticated, organizations need to rethink their security approaches and strategies to account for the dynamic and distributed nature of such a platform.
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technology
AI Anthropic Banks Canada Claude Mythos Financial Institutions technology

Claude Mythos Just Caught the Attention of Canada's Banking Regulator

 



Canada's federal banking regulator has privately warned financial institutions that advances in frontier artificial intelligence are shrinking the time available to detect and contain software vulnerabilities, according to an internal email that specifically identified Anthropic's Claude Mythos, an uncommon move for a regulator that typically avoids naming individual technologies.

The email, sent on April 29 by the Office of the Superintendent of Financial Institutions (OSFI), was addressed to chief technology officers, chief information security officers and chief risk officers at federally regulated banks and insurance companies. Obtained by Reuters through Canada's Access to Information Act, the communication described advanced AI models such as Anthropic's Claude Mythos as accelerating the pace at which cyber risks can emerge, prompting institutions to strengthen the speed of risk identification, mitigation and incident response.

Unlike most regulatory guidance, which generally refers to broad categories such as generative AI or emerging technologies, the OSFI email explicitly referenced Claude Mythos by name. Financial regulators typically adopt technology-neutral language to ensure guidance remains applicable as technologies evolve, making the direct reference to a specific frontier AI model particularly notable.

According to the released correspondence, OSFI warned that advanced AI systems are compressing the timeframe available for organizations to respond to newly identified vulnerabilities before they can be exploited. The regulator indicated that the bulletin accompanying the email outlined sound practices that federally regulated financial institutions could adopt to improve the speed and effectiveness of identifying, mitigating and responding to cyber risks.

However, portions of the document released under Canada's Access to Information Act were redacted, leaving many of the regulator's recommended practices undisclosed. While the details of the guidance remain partially withheld, the available sections reveal OSFI's assessment that rapidly advancing AI capabilities are challenging long-standing assumptions underpinning vulnerability management.

For decades, many cybersecurity programs have operated on the expectation that defenders would have days or even weeks to evaluate newly disclosed vulnerabilities, test patches and deploy mitigations before attackers developed reliable exploits. Frontier AI models capable of rapidly analyzing software code and identifying exploitable weaknesses could substantially reduce that window, increasing pressure on organizations to accelerate patch management and defensive operations.

The concern is particularly relevant for financial institutions, many of which continue to operate complex legacy infrastructure supporting critical banking services. Core banking platforms often consist of decades-old software integrated with newer digital systems, making security updates and vulnerability remediation significantly more complex than in less regulated technology environments. A shorter interval between vulnerability discovery and exploitation therefore presents operational challenges for institutions responsible for maintaining highly available financial services.

Claude Mythos has drawn attention within the cybersecurity community for its reported ability to assist with sophisticated vulnerability research and exploit development in controlled environments. Anthropic introduced the model through Project Glasswing, a restricted-access initiative designed to provide selected organizations with advanced cybersecurity capabilities for defensive research rather than broad public deployment. Access to the model remains limited and subject to eligibility requirements established by Anthropic.

The timing of OSFI's communication coincided with a series of regulatory discussions surrounding frontier AI models. Earlier in April, senior executives from Canadian banks reportedly met with regulators to discuss the implications of Claude Mythos. Around the same period, U.S. Treasury Secretary Scott Bessent and then-Federal Reserve Chair Jerome Powell also convened bank chief executives to examine the potential cybersecurity implications associated with increasingly capable AI systems.

International regulators have since demonstrated similar interest. Authorities at the European Central Bank and the Bank of England have reportedly discussed the implications of frontier AI for financial sector resilience, while Australia's corporate regulator, the Australian Securities and Investments Commission (ASIC), has confirmed that it is monitoring developments related to the technology.

Following questions from Reuters regarding the internal email, OSFI subsequently published a public bulletin addressing the governance of generative and agentic artificial intelligence. The regulator reiterated that its supervisory approach focuses on how federally regulated financial institutions identify, govern and manage risks arising from AI adoption rather than regulating individual AI models themselves.

"Our focus is not the technology itself, but how federally regulated financial institutions govern and manage the risks associated with its use," OSFI said in its public statement.

Nevertheless, the regulator's internal correspondence referred to Anthropic's Claude Mythos by name on multiple occasions, distinguishing it from the more general language typically used in regulatory communications concerning emerging technologies.

OSFI oversees Canada's federally regulated banks, insurance companies and pension plans, with responsibilities that include monitoring financial stability risks arising from cybersecurity, foreign interference, geopolitical developments and technological change. The emergence of highly capable AI models has increasingly placed these categories of risk in closer alignment as governments evaluate both the opportunities and security implications associated with frontier AI.

While the Canadian government has confirmed that it has access to Claude Mythos, it remains unclear whether any of Canada's major financial institutions currently participate in Anthropic's controlled-access Project Glasswing program. Several banks declined to comment publicly on whether they have access to the model, referring questions instead to the Canadian Bankers Association.

In response, the Canadian Bankers Association said member institutions have invested substantially in protecting Canada's financial system and continue to comply with OSFI's cybersecurity risk management and incident reporting requirements, without addressing whether banks currently have access to the frontier AI model.

At the same time, Canada's largest banks continue expanding their AI strategies across customer services, internal operations and software development. Royal Bank of Canada, TD Bank and Bank of Montreal have outlined initiatives aimed at integrating AI into business operations while reducing reliance on external technology vendors. Scotiabank, CIBC and National Bank have also disclosed AI-related programs intended to improve operational efficiency and customer services.

Bruce Ross, Royal Bank of Canada's Group Head of Artificial Intelligence, said in June that models such as Claude Mythos are changing the cyber threat environment by enabling exploit code to emerge much sooner after vulnerabilities are discovered. He said the bank's response has focused on strengthening AI-powered defensive capabilities to counter increasingly sophisticated attacks.

Anthropic has also expanded Project Glasswing in recent months, reporting that participating organizations have collectively identified more than 10,000 high- and critical-severity software vulnerabilities using the platform's advanced cybersecurity capabilities. The company has positioned the initiative as a defensive research program intended to improve software security while maintaining controlled access to highly capable AI systems.


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YouTube
Cyber Security Eating Disorders Online Harm Algorithm Risk Teen Safety YouTube

YouTube Faces Backlash Over Eating Disorder Recommendations

 

YouTube is still facing criticism over the way its recommendation system serves harmful eating-disorder content to teenagers, despite stronger online safety rules introduced in the UK. New research cited by the BBC says the platform continues to surface videos linked to thinspiration, extreme dieting, and body-image harm in its “Up Next” recommendations. 

The findings matter because teenagers are especially vulnerable to algorithmic feeds that can reinforce unhealthy behavior. According to the report, around one in 10 recommended videos in the study contained material tied to eating disorders or extreme weight-loss messaging, even though the overall situation has improved compared with two years ago. 

The BBC says the issue comes at a time when platforms are under legal pressure to do more. Since July 2025, the UK’s Online Safety Act has required sites such as YouTube to protect under-18s from dangerous content, including material that encourages self-harm, suicide, and eating disorders. 

Researchers and campaigners argue that the main weakness is not just user-uploaded content, but the logic of recommendation systems themselves. In the examples described by the BBC, YouTube still suggested videos promoting unsafe calorie restriction and content that glamorized being underweight, even as the company removed the specific videos after they were flagged.

The incident underlines a bigger challenge for social platforms: moderation alone is not enough if algorithms keep pushing harmful material back into teens’ feeds. The BBC report also notes that regulators and advocacy groups want stronger protections, while YouTube says it has taken down the videos identified in the report for violating community guidelines.
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Online Privacy
Chat Control CSAM scanning Cyber Security EU surveillance Online Privacy

EU’s ‘Chat Control 1.0’ Revived, Rekindling Privacy and Surveillance Fears

 

The European Union has reignited a fierce debate over privacy and surveillance with the revival of its so‑called “Chat Control 1.0” framework. The measure restores a legal basis for major technology companies to voluntarily scan users’ private communications for child sexual abuse material (CSAM), months after the original temporary regime expired in April 2026. Lawmakers say the goal is to give platforms legal cover to detect and report CSAM, while critics warn it normalizes mass scanning of personal messages under the banner of child protection. 

The turning point came with a European Parliament vote on 9 July, which, in procedural terms, allowed the interim regulation to return almost by default. A majority of Members of the European Parliament (MEPs) present actually voted to stop the framework, but they fell short of the absolute majority threshold needed to block it. As a result, Regulation (EU) 2021/1232, informally known as Chat Control 1.0, remains in force and again derogates from ePrivacy rules so that online services can scan communications for known and new CSAM and grooming attempts.

Under the renewed framework, scanning remains voluntary rather than mandatory, but the legal door is fully open for large platforms to resume or expand automated analysis of messages, images, and other content sent via their services. Email providers, mainstream chat platforms, gaming networks, and social networking services are among those potentially covered. Companies that choose to participate can detect, report, and remove suspected CSAM without needing a specific warrant for each account, although law enforcement bodies themselves still require judicial authorization for targeted surveillance activities. 

One important limitation is that the revived rules do not extend to end‑to‑end encrypted (E2EE) messaging services such as Signal and, under current language, other providers using comparable encryption. That exemption is seen as a partial victory for digital rights advocates and cryptographers, who argue that any obligation to scan encrypted chats would undermine the core security guarantees of E2EE. However, opponents of Chat Control insist that even voluntary scanning on non‑encrypted platforms creates a dangerous precedent for generalized monitoring of interpersonal communications. 

The renewed validity of Chat Control 1.0 runs until 2028 or until a permanent framework, widely referred to as Chat Control 2.0, is agreed and adopted. In the meantime, the EU faces a difficult balancing act between aggressively combating online child abuse and upholding fundamental rights to privacy and confidentiality in digital communications. The outcome of this debate will shape how far governments can push platform‑level surveillance in the name of safety, not just in Europe but as a global policy benchmark.
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Google security
Censorship CloudFlare Content Censorship copyright protection Cyber Security Digital Rights DNS Blocking Google security

French Court Orders Google and Cloudflare to Block Piracy Sites, Sparking Internet Freedom Debate

 

A French court ruled that upstream internet intermediaries, including Google and Cloudflare, must block access to certain websites engaged in piracy and illegal streaming upon the request of the sports rights holders. The ruling holds intermediaries responsible for the proliferation of illicit streams despite their efforts not to host such services due to their ability to use alternative domains, offshore hosting, and redundant servers. 

Google Challenges the Decision as Ineffective, With the Ability to Circumvent Being “Near Certain Death” Google has filed a complaint against the decision, arguing that the measures, including DNS filtering, IP blocking, and blocking virtual private networks (VPNs), are ineffective and pose a threat to the free core internet. 

The company asserted that the recommended methods “would be largely ineffective” and “risk stifling legitimate online services,” noting that circumvention techniques would allow illicit sites to continue operating with relative ease. The company highlighted the possibility of overblocking, with numerous reputable services and websites being impacted since multiple domains or DNS providers host the same content. 

Google provided examples of services that were previously blocked in France, including Google Drive, Amnesty International, UNICEF, the Australian Senate, and the Stanford Law Review. Electronic Frontier Foundation Warns About Loss of Internet Freedom and Big Tech Control, Calling the Ruling an Anti-Technology Fundamentalist EFF has also criticized the decision, arguing that the ruling’s broad language could jeopardize internet freedom by encouraging the use of major technology companies as censors. The organization has repeatedly opposed indiscriminate filtering of disallowed content, arguing that it suppresses lawful speech. 

Additionally, the Electronic Frontier Foundation warned that the ruling set the stage for even more restrictive content moderation policies in the broader technology industry. Similar Upstream Content Blocking Rules Could Be Debated in Congress The intensified fight against piracy has seen similar proposals introduced in Congress. In the United States, several lawmakers are considering legislation that would require internet intermediaries to adopt similar policies regarding copyright infringement. 

The issue has gained momentum as the use of unlawful streaming services has skyrocketed throughout the country. Increased costs, including hikes in subscription services, advertisement, and the segmentation of works across different platforms, have prompted consumers to resort to illegal streaming sites. Technology companies have been lobbying to stop broad measures that could impact the entire internet core while copyright holders push for stronger actions against rampant infringement.
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RaaS
ALPHV BlackCat Ransomware Cyber Attacks DigitalMint FBI RaaS

Former DigitalMint negotiator sentenced to 70 months for conspiring with BlackCat ransomware affiliates

 



A former ransomware negotiator who was hired to help organizations respond to cyber extortion incidents has been sentenced to 70 months in federal prison after admitting he secretly worked with BlackCat ransomware affiliates, using confidential client information to increase ransom payments while participating in additional ransomware attacks.

The U.S. Department of Justice said Angelo Martino, 41, abused his position at incident response firm DigitalMint by sharing privileged information obtained during ransomware negotiations with BlackCat, also tracked as ALPHV. Prosecutors said the information allowed the ransomware group to negotiate from a stronger position while victims remained unaware that details intended to protect them had been disclosed to the attackers.

As part of his role, Martino managed active ransomware cases for organizations seeking assistance after cyberattacks. His work gave him access to confidential information that companies typically share only with trusted negotiators, including cyber insurance policy limits, internal assessments of how much they were prepared to pay, and negotiation strategies developed during incident response.

According to court documents, Martino began providing that information to BlackCat operators in April 2023. Prosecutors said he communicated with the group through multiple channels connected to BlackCat's extortion platform. While one conversation took place through the standard negotiation interface used during ransomware incidents, he also relied on an intermediary chat feature within the group's panel and the encrypted messaging application Tox to exchange information directly with the attackers outside the victims' view.

Federal prosecutors said those private communications were intended to help BlackCat maximize ransom demands. In exchange for sharing confidential information, including insurance coverage limits and the negotiating positions of victim organizations, Martino received a portion of the cryptocurrency paid by ransomware victims.

The Justice Department said five organizations whose cases were handled by Martino collectively paid more than $75 million to BlackCat affiliates between April and September 2023. Prosecutors argued that access to confidential negotiation data enabled the attackers to demand higher payments than they otherwise might have secured. The affected organizations operated in the financial services, healthcare, retail, hospitality, and nonprofit sectors, with several experiencing operational disruption alongside the financial losses associated with the attacks.

Investigators also determined that Martino later became an active participant in BlackCat's ransomware operation. In May 2023, he obtained affiliate access to the ransomware-as-a-service platform, permissions generally granted to trusted partners responsible for compromising victim networks and deploying the malware.

Court filings state that Martino shared those affiliate credentials with Kevin Martin and Ryan Goldberg, both cybersecurity professionals. The three men subsequently carried out additional ransomware attacks and agreed to divide ransom proceeds among themselves while paying 20% of each payment to BlackCat's administrators in exchange for continued access to the group's malware and extortion infrastructure.

One attack targeted a medical device manufacturer that ultimately paid approximately $1.2 million in ransom. Other organizations refused to pay but still incurred costs associated with business interruption, system recovery, and incident response following the attacks.

Prosecutors said Martino received millions of dollars in cryptocurrency through the conspiracy. Federal investigators recovered and seized more than $10 million in assets connected to the case, although authorities said some proceeds had already been used to purchase residential properties, vehicles, and a boat. As part of his sentence, Martino must forfeit assets linked to the criminal activity and pay 10% of his future income following his release from prison.

Before sentencing, Martino requested a reduced 24-month prison term, citing his cooperation with investigators during the prosecution of his co-conspirators. Martin and Goldberg were each sentenced to four years in prison earlier this year after pleading guilty for their involvement in the BlackCat attacks.

"Angelo Martino sold out the very victims he was hired to represent, handing their confidential negotiating positions to BlackCat actors to drive up ransoms and enrich himself," FBI Cyber Division Assistant Director Brett Leatherman said following the sentencing.

BlackCat operates as a ransomware-as-a-service platform, providing malware and extortion infrastructure to affiliates that compromise organizations and share a percentage of ransom payments with the group's administrators. The FBI has linked the operation to more than 1,000 victims and at least $300 million in ransom payments through September 2023. Although law enforcement disrupted parts of the group's infrastructure and previously released a decryptor for some victims, affiliates continued launching attacks after those actions.

DigitalMint said it was unaware of Martino's conduct until it was contacted by the Department of Justice and described itself as another victim of the scheme. The company said the employees involved were terminated immediately after the allegations came to light and that it fully cooperated with investigators throughout the criminal investigation.

The company also said Martino deliberately bypassed internal safeguards by communicating with threat actors through unauthorized channels that were not visible within its monitoring systems. According to DigitalMint, its security controls aligned with industry practices, but the unauthorized communications were intentionally concealed from the company's oversight mechanisms.

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