Daily Drop (560): China: Litho-Chip Machine 2023, LK-99, Ukraine EW, Concerns: Major Sporting Events, Poss. BRICS Expansion, Subpoenas: BlackRock & MSCI, Cozy Bear, Fortine VPN Bug, Make in India
08-04-23
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China is anticipating its first 28nm lithography machine by the end of 2023
Analyst Comments: The development of the SSA/800-10W lithography machine by SMEE is a significant milestone, reflecting China's strategic focus on technological self-reliance. However, the geopolitical restrictions imposed by foreign governments, aimed at containing China's growth in this field, may inadvertently accelerate its drive towards self-sufficiency. These measures, coupled with the inherent complexity of chip production, may lead to fragmentation and potential disruptions in the global supply chain, emphasizing the importance of collaboration. China's path towards semiconductor self-sufficiency is fraught with challenges, including continued reliance on foreign equipment and potential failure of domestic innovations, adding further uncertainty. The long-term implications of these developments may lead to shifts in global market dynamics, increased competition, and potential realignments in international relations and economic strategies. The success or failure of China's efforts in this area will likely have a profound impact on the future landscape of the global technology industry.
FROM THE MEDIA: Shanghai Micro Electronics Equipment (SMEE) is working on delivering its first domestically produced 28nm lithography machine, the SSA/800-10W, by the end of 2023. This development is part of China's broader push to reduce reliance on foreign semiconductor technology. However, the US, Japan, and the Netherlands have imposed restrictions on Chinese companies, hindering progress in this area. Despite these challenges, China continues to invest in its semiconductor industry, aiming for self-sufficiency. The complexity of chip production and the global nature of the supply chain mean that collaboration and cooperation remain essential, even amidst geopolitical tensions.
READ THE STORY: TechWire Asia
New superconductor frenzy seems too super to be true
Analyst Comments: The claim that LK-99 is a room-temperature superconductor has generated significant excitement and interest, given the profound implications such a discovery would have for technology and energy efficiency. The potential applications are vast, and the race to find high-temperature superconductors has been a long-standing challenge in the scientific community. But skepticism and caution surrounding this claim are warranted. The history of superconductivity research is filled with false discoveries and mistaken identifications. The lack of detail in the method for creating LK-99, the partial levitation observed in the linked video, and the inconsistencies in the papers published by the researchers all raise red flags.
FROM THE MEDIA: LK-99, a pebble-sized object made of lead, phosphorus, copper, and oxygen, has created a sensation on social media and among investors, as South Korean scientists claim it to be a room-temperature superconductor. Superconductors are materials that can conduct electrical current with zero resistance, meaning no energy loss, but they typically require extremely low temperatures or high pressures. A room-temperature superconductor could revolutionize various fields, including power grids, quantum computing, and transportation. However, skepticism surrounds the claim, and proof remains elusive. Mistakes in identifying superconductors are common, and a verification committee in South Korea has issued a cautionary note regarding LK-99.
READ THE STORY: FT
Ukraine's invisible battle to jam Russian weapons
Analyst Comments: The significance of electronic warfare in the Russia-Ukraine conflict cannot be overstated. It underscores the vital role of controlling, disrupting, or protecting electronic signals in modern military operations. Russia's initial shortcomings were notable, but their ability to learn from mistakes and deploy more agile and effective systems demonstrates a significant evolution in their capabilities. Ukraine's electronic warfare units have shown resilience and adaptability, maintaining communication and weapon effectiveness despite facing advanced Russian jamming technology. The vulnerability of sophisticated weapons provided to Ukraine by NATO countries to Russian jamming highlights the global implications of electronic warfare. It emphasizes the need for continual innovation and adaptation in military technology. The strategic importance of electronic warfare in this conflict is profound, shaping the broader war effort and offering lessons for future conflicts.
FROM THE MEDIA: In the ongoing conflict between Russia and Ukraine, electronic warfare has emerged as a critical battleground. Initially, experts were surprised at the poor performance of Russia's electronic warfare units, but over time, they have adapted and are now causing significant problems for Ukraine's counter-offensive. Both sides are using a range of technologies to detect, jam, and counter electronic signals, affecting everything from communication to weapon guidance. The conflict has seen an intense competition of "move and countermove," with both sides continually adapting their strategies and technologies.
READ THE STORY: BBC
Fortinet VPN bug tops CISA’s list of most exploited vulnerabilities in 2022
Analyst Comments: The joint advisory from the Five Eyes countries underscores the ongoing challenge of securing systems against known vulnerabilities, even when patches are available. The fact that many of the top exploited vulnerabilities are not new and have been on previous lists indicates a failure by organizations to apply necessary security updates promptly. The continued exploitation of older vulnerabilities by malicious actors highlights the importance of not only focusing on newly discovered flaws but also maintaining vigilance in patching and securing systems against known issues. Organizations must prioritize regular patching and updates to protect against both new and existing threats.
FROM THE MEDIA: The cybersecurity agencies of the Five Eyes countries (United States, Australia, Canada, New Zealand, and the United Kingdom) have issued a joint advisory warning that malicious cyber actors are exploiting older software vulnerabilities more frequently than recently disclosed ones. The advisory emphasizes the importance of patching internet-facing systems and highlights that more than half of the top 12 vulnerabilities also appeared on last year's list. The most exploited vulnerability of last year was disclosed in 2018 and affects Fortinet's SSL VPNs. Other widely exploited issues include vulnerabilities affecting Microsoft Exchange servers, VMware products, F5's BIG-IP products, and Atlassian's software.
READ THE STORY: The Record
Out of nowhere, India requires PC and server makers to get an import license
Analyst Comments: India's decision to require import licenses for various computer products is likely a strategic move to promote domestic manufacturing and align with the "Make In India" initiative. By making imports more costly and cumbersome, the government may be encouraging international manufacturers to consider local production. However, this policy change comes with potential risks and challenges. India's infrastructure, frequent internet outages, and other business complexities may deter manufacturers from setting up operations in the country. Additionally, if manufacturers choose not to invest in local production, the increased costs of importing could be passed on to consumers, making technology less accessible to a population where affordability is already a significant barrier.
FROM THE MEDIA: India has altered its trade rules to require manufacturers of various types of computers, including laptops, tablets, and servers, to obtain an import license to bring their products into the country. The move, which was announced without explanation, adds these items to a "restricted list" of imports. The change may be linked to India's "Make In India" initiative, aimed at transforming the country into a tech manufacturing hub and reducing dependence on China. While India has attracted smartphone makers, it has had limited success with other computer manufacturers. The new licensing requirement could be a signal to manufacturers to consider local production, but it may also result in higher costs for Indian consumers.
READ THE STORY: The Register
Microsoft Flags Growing Cybersecurity Concerns for Major Sporting Events
Analyst Comments: The warning from Microsoft underscores a significant and growing concern at the intersection of technology, entertainment, and sports. The integration of technology into live sporting events has created a complex web of interconnected devices and networks, expanding the risk surface and making it more susceptible to cyberattacks. Information related to athletes, competitive strategies, and personal data is highly valuable, and cybercriminals can use it for various malicious purposes. The mention of hospitals as potential targets for ransomware attacks adds a layer of urgency to the need for robust cybersecurity measures, highlighting a concerning trend where essential services connected to sporting events could be disrupted. Microsoft's recommendations provide a roadmap for various stakeholders to enhance their cybersecurity posture. These measures, such as network segmentation, proper scanning, and regular updates, are fundamental in building a resilient defense against potential attacks.
FROM THE MEDIA: Microsoft has issued a warning about the growing cyber risks associated with live sporting events, emphasizing that the cyber risk surface is "rapidly expanding." In a Cyber Signals report, the company highlights the lucrative nature of information related to athletic performance, competitive advantage, and personal data. This information makes sports teams, leagues, and venues attractive targets for cybercriminals. Specific concerns include ransomware attacks on hospitals providing critical support for fans and players. Microsoft has offered a series of recommendations to defend against these threats, targeting companies, attendees, commerce systems, and stadium operations.
READ THE STORY: THN
Potential BRICS Expansion Influence Offers Alternative to West
Analyst Comments: The meeting underscores the growing global concern about cyber threats and the complex and evolving nature of cyber risks. China and Russia's leadership in promoting their views on cyberspace aligns with their broader diplomatic strategies and challenges the Western approach to cyber governance. With 22 countries ready to join, an expanded BRICS could become an influential voice in global cyber governance, serving as a counterweight to Western alliances like the Quad and NATO. The emphasis on multilateralism contrasts with the more narrow, strategic bilateral and trilateral agreements that some countries have pursued, highlighting a divide in approaches to global governance. The potential expansion of BRICS and its focus on cyber issues may be seen as a threat by Western powers, particularly the United States.
FROM THE MEDIA: In July 2023, South Africa hosted a "Friends of BRICS" two-day meeting, focusing on global security challenges, with cybersecurity topping the agenda. BRICS, referring to Brazil, Russia, India, China, and South Africa, discussed issues like artificial intelligence, big data exploitation, and the Internet of Things. The meeting also included 22 countries interested in joining BRICS. China and Russia took the lead in promoting their views on cyberspace, advocating for multilateralism and respecting other nations' security concerns. They emphasized the need for more representation from developing countries in shaping the Internet. The meeting highlighted the potential influence of an expanded BRICS in global cyber governance and the possible threat it poses to Western-led efforts.
READ THE STORY: OODALOOP
‘Crypto couple’ pleads guilty to money laundering, as husband admits to carrying out Bitfinex hack
Analyst Comments: The admission by Lichtenstein is a significant development in a case that has puzzled investigators for years. The complexity of the hacking and laundering methods used by the couple demonstrates the sophisticated nature of modern cybercrime. Their diverse and intricate laundering methods, including the use of fake online identities, crypto mixers, darknet marketplaces, U.S.-based business accounts, and even the conversion of funds to gold coins, highlight the challenges faced by law enforcement in tracking and recovering stolen digital assets.
FROM THE MEDIA: Ilya “Dutch” Lichtenstein, 34, has admitted in court to carrying out the 2016 hack on the Bitfinex cryptocurrency platform and pleaded guilty to laundering a portion of the stolen funds. His wife, Heather Morgan, 31, also pleaded guilty to money laundering conspiracy and conspiracy to defraud the United States. The couple was arrested last year after the seizure of 95,000 bitcoin, worth $3.6 billion at the time, allegedly in their control. Investigators have since recovered another $475 million related to the hack. In total, nearly 120,000 Bitcoin were stolen, worth about $71 million at the time. Lichtenstein used advanced hacking tools to break into Bitfinex's system, carried out fraudulent transactions, and then took steps to cover his tracks.
READ THE STORY: The Record
Subpoenas possible for BlackRock, MSCI over China investments, US House panel chair says
Analyst Comments: The investigation into BlackRock and MSCI's investments in blacklisted Chinese companies is part of a broader U.S. effort to scrutinize financial ties with China, particularly those that may be seen as conflicting with national security or human rights concerns. The threat of subpoenas reflects the seriousness with which the committee is approaching the issue and signals a willingness to use legal means to obtain information. The investigation aligns with a broader bipartisan push in the U.S. to take a tougher stance on China, reflecting growing tensions between the two countries. It also highlights the challenges faced by multinational companies in navigating complex and sometimes conflicting legal and regulatory environments, particularly in areas where political and security interests are at play.
FROM THE MEDIA: The chairman of the U.S. congressional committee on China, Representative Mike Gallagher, has indicated the possibility of subpoenas for executives from asset management firm BlackRock and index provider MSCI if they do not provide detailed answers about investments in blacklisted Chinese companies. The House of Representatives select committee on competing with China is investigating BlackRock and MSCI for facilitating the flow of American capital into companies that the U.S. government has accused of aiding China's military advancement or committing human rights abuses. Gallagher has urged President Joe Biden to include restrictions on U.S. holdings of certain Chinese stocks and bonds in an expected executive order.
READ THE STORY: Reuters
As Artificial Intelligence Accelerates, Cybercrime Innovates
Analyst Comments: The rise of cybercrime, particularly in the context of AI, presents significant challenges for businesses, governments, and individuals. The increasing sophistication of cybercriminals, coupled with the rapid advancement of AI technologies, has the potential to amplify existing cybersecurity threats and create new ones. However, the growing awareness and understanding of these risks among industry leaders, regulators, and the public presents an opportunity to develop and implement more effective strategies and measures to combat cybercrime. The active engagement of industry leaders in discussions around AI and cybersecurity, and their calls for regulation, reflect a recognition of the seriousness of these issues and a willingness to take proactive steps to address them. This shift in attitude could lead to the development of more robust and comprehensive frameworks for managing cybersecurity risks, as well as more effective laws and regulations.
FROM THE MEDIA: Cybercrime, now considered the world's fastest-growing entrepreneurial venture, would rank as the world's third largest economy if it were a nation. The average cost of a data breach is now $4.24 million, up from $3.86 million in 2021, with ransomware accounting for one in every four breaches. The rise of generative artificial intelligence (AI) is expected to exacerbate the situation, with cybercriminals already using AI to create malware and deepfakes, improve disinformation efforts and phishing emails, interfere in elections, and discover new vulnerabilities to attack. However, cybersecurity companies are also leveraging AI to mitigate risks and blunt cybercrime's advancement. Industry leaders are now actively engaged in the prospects for AI, with frameworks developed for risk management and policies and laws rapidly emerging.
READ THE STORY: DarkReading
Russia's Cozy Bear is back and hitting Microsoft Teams to phish top targets
Analyst Comments: The use of Microsoft Teams chats by Midnight Blizzard for phishing attempts represents a concerning evolution in the tactics employed by cybercriminals. By leveraging a widely used collaboration platform, the group has found a novel way to target victims and attempt to steal their credentials. This highlights the need for organizations to be vigilant not only in monitoring traditional email-based phishing attempts but also in scrutinizing communications within collaboration platforms. Microsoft's response to the situation, including its provision of guidance to help organizations identify users targeted by these phishing lures, is a positive step. However, the criticism leveled at the company for its handling of the Azure vulnerability and its response to the Chinese hacking incident suggests that there may be broader concerns about Microsoft's approach to cybersecurity.
FROM THE MEDIA: A Kremlin-backed gang known as Midnight Blizzard, previously referred to as Nobelium, APT29, or Cozy Bear, has been using Microsoft Teams chats to attempt phishing attacks on governments, NGOs, and IT businesses. The group has created domains that impersonate organizations offering tech support and used these to send Teams chat messages to targets, attempting to phish their credentials. Microsoft's investigation indicates that fewer than 40 unique global organizations have been affected, primarily targeting government, NGOs, IT services, technology, discrete manufacturing, and media sectors. In related news, Microsoft has also been criticized for its handling of a critical Azure vulnerability and its response to Chinese cyber snooping on government agencies.
READ THE STORY: The Register
Items of interest
Bangladeshi hacktivists targeting India, Israel with DDoS attacks
Analyst Comments: The activities of Mysterious Team Bangladesh highlight the growing threat of hacktivism, where politically or ideologically motivated groups use cyberattacks to further their causes. The group's focus on India and Israel, as well as its reaction to specific incidents related to religion, underscores the complex motivations that can drive such attacks. The use of DDoS and defacement attacks, while not as sophisticated as some other forms of cyber warfare, can still cause significant disruption and damage. The group's ability to exploit known vulnerabilities and common passwords also indicates a level of technical capability that could pose a serious threat to targeted organizations. Organizations in the targeted regions and sectors should be aware of the potential risk posed by this group and take appropriate measures to protect against DDoS and defacement attacks. This may include implementing robust security controls, monitoring for signs of "test attacks," and ensuring that known vulnerabilities are patched.
FROM THE MEDIA: Mysterious Team Bangladesh, a Bangladeshi hacktivist group, has been escalating cyberattacks on India and Israel, driven by political and religious motivations. Since June 2020, the group has launched over 750 distributed denial-of-service (DDoS) attacks and more than 70 defacement attacks. The group was founded in 2020 and gained global attention in 2022 after targeting high-profile entities in India and Israel. The group's targets include government, financial, and transportation industries, with a focus on specific countries rather than individual sectors. Researchers predict that the group will likely expand its operations in 2023, targeting financial companies and government entities in Europe, Asia-Pacific, and the Middle East.
READ THE STORY: The Record
The Hacktivist, Award Winning Short Film Documentary (Video)
FROM THE MEDIA: Celebrity hacker Andrew 'Bunnie' Huang first clashed with US tech giant Microsoft for teaching others how to modify the Xbox. Almost 20 years later, he is suing the US government to push for the right to use and own technology, all while creating hackable hardware with other tech superstars like whistleblower Edward Snowden and firmware hacker Sean Cross.
The Face of Anonymous (Video)
FROM THE MEDIA: The Face of Anonymous - This timely portrait of 21st century activism follows Commander X, an iconic and divisive figure in the "hacktivist" network who spends his days dodging authorities across North America while surfing the web and surviving the streets.
These open-source products are reviewed by analysts at InfoDom Securities, providing possible context about current media trends related to the realm of cyber security. The stories selected cover a broad array of cyber threats and are intended to aid readers in framing key publicly discussed threats and overall situational awareness. InfoDom Securities does not endorse any third-party claims made in their original material or related links on their sites; the opinions expressed by third parties are theirs alone. For further questions, please contact InfoDom Securities at dominanceinformation@gmail.com.