The U.S. Will Not Impose Sanctions on China for Salt Typhoon Cyberattacks

A newly emerged AI image creation startup has come under fire for leaving its database exposed, resulting in the unauthorized access of over a million user-generated images and videos. Alarmingly, the majority of the leaked content includes explicit material, with some instances involving minors. This breach raises significant concerns regarding data privacy and security in the rapidly evolving AI sector.

In related news, a report from the U.S. inspector general has officially concluded that Defense Secretary Pete Hegseth bears responsibility for putting military personnel at risk amid the SignalGate scandal. However, the recommendations stemming from this finding suggest only a compliance review alongside the consideration of new regulations rather than decisive actions against negligence.

Matthew Prince, the CEO of Cloudflare, highlighted the scale of cyber threats during his speaking engagement at our Big Interview event in San Francisco, revealing that his company has blocked over 400 billion AI bot requests for its clients since the first of July. This staggering figure emphasizes the ongoing challenges businesses face in managing cybersecurity risks, particularly from automated adversaries.

Moreover, a new law in New York will enforce transparency among retailers regarding any algorithmic changes to pricing that arise from collected personal data, further emphasizing the need for data accountability in commercial practices. Meanwhile, our in-depth profile on a new cellular carrier sheds light on efforts towards providing truly anonymous phone services. Its founder, Nicholas Merrill, is known for his prolonged legal battle against an FBI surveillance order linked to his internet service provider.

In a particularly egregious venture, a device equipped with a camera that analyzes human waste and uploads data to a corporate server has generated criticism reminiscent of a long-ago parody infomercial. Set for release in 2025, this device has already stirred privacy concerns that align with many skeptics’ worst fears. Security researcher Simon Fondrie-Teitler recently uncovered that the Dekota, a product from Kohler, does not utilize true “end-to-end encryption” as claimed. Instead, it encrypts data solely from the device to the server, leaving user privacy compromised at the server level—a significant deviation from modern encryption standards. Kohler has since retracted instances of the term “end-to-end encryption” from its product descriptions following Fondrie-Teitler’s findings.

The Salt Typhoon cyber-espionage campaign represents a critical lapse in U.S. counterintelligence. State-sponsored actors from China infiltrated nearly every U.S. telecommunications network, gaining access to real-time communications of American citizens, including prominent political figures. Despite the overwhelming evidence of this breach, the U.S. government has opted against imposing sanctions on China, focusing instead on maintaining trade relations. This approach has drawn scrutiny and raised questions about national security priorities in light of economic considerations.

As 2025 approaches, the Cybersecurity and Infrastructure Agency (CISA) remains without a confirmed director. The nomination of Sean Plankey, once considered likely to succeed, has met with opposition that may hinder his appointment permanently. His nomination faced vetoes from multiple senators driven by unrelated concerns, casting uncertainty on CISA’s future leadership and direction during a crucial period for national cybersecurity.

Lastly, the ongoing Chinese hacking campaign associated with the “Brickstorm” malware highlights significant vulnerabilities in U.S. infrastructure. Discovered by Google, this stealthy malware has infiltrated numerous organizations since 2022, drawing warnings from CISA, the National Security Agency, and the Canadian Centre for Cybersecurity. These agencies caution that the threat extends beyond espionage, suggesting preparations for potential disruptive attacks. Disturbingly, this campaign has a delay of around 393 days on average for detection within affected networks.

Source