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Also, Healthcare's Resilience Test, Extortionists Struggle to Be Heard In this week’s update, ISMG editors discussed a think tank war game showing how China could cripple Taiwan’s communications short of invasion, why healthcare cyber resilience is now measured by patient care and how attackers hit Asos customers with an in-app extortion message.

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US Authorities Say Infrastructure Supported Scanning, Phishing and Data Theft The FBI seized seven domains allegedly used by China-linked hackers to scan critical infrastructure, deliver malware and steal files. A joint advisory urges organizations to hunt for lingering access.

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War Game Pits Taiwan's Telecom Sector Against China A concerted Chinese attempt to take over neighboring Taiwan is more likely to involve "cyber-enabled economic warfare" rather than outright invasion, warns a Washington, D.C. national security think tank. Beijing has long asserted sovereignty over Taiwan.

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Researchers Find GLM-5.3 Safeguards Easy to Bypass Anthropic conducted its own security assessment of GLM-5.3 from Chinese lab Zhipu AI, also known as Z.ai, and found that the model "has strong capabilities for autonomously building end-to-end cyber exploits" but lacks "meaningful safeguards" to limit its misuse.

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ESET Says FamousSparrow Shifted Nearly All Targeting to Latin America A Chinese espionage group has deployed a previously undocumented backdoor against government entities in eight Latin American countries and territories, including Puerto Rico, in a campaign researchers say tracks with U.S. pressure on Chinese investments across the region.

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Trump Executive Order Declares National Emergency, Citing Potential Backdoors A broad Trump administration plan to shut adversary nations, including China, out of the equipment supply chain for the U.S. bulk electric power market has left the industry in regulatory uncertainty, just as demand for electricity is spiking nationwide due the ballooning power demands of data centers and severe weather caused by climate change.

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SilkParasite Deployed Against Central Asian Governments Bitdefender said the China-linked SilkParasite espionage campaign deployed seven modular RATs against Central Asian governments, with coding artifacts indicating AI assisted expert developers rather than generating the stealth-focused malware itself.

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Draft Covered List Expansion Would Reach Components Inside AI Data Center Switches The U.S. FCC reportedly may restrict imports of new-model optical transceivers made in China, a move that would reach AI data center interconnects for the first time and leaves open how regulators would define origin, what counts as a new model and whether switches keep authorization.