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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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Attack Servers Show Signs Open-Source Penetration Testing Tool Artex Employed Police in South Korea probing data breaches at multiple banks have found signs on attack servers that the threat actor used a free, open-source and semi-automated penetration testing tool called Artex AI to help steal data pertaining to more than 60,000 individuals.

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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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Sydney Startup Brings Specialized Expertise in Australian Government Compliance A-Lign acquired Sydney-based AssurePoint to enter Australia's IRAP compliance market, targeting roughly 6,000 companies seeking government business before expanding into offering them products and services for SOC 2 compliance, ISO standards and penetration testing.

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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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Alleged Global Supply Chain Campaign Compromised More Than 1,000 Organizations Australian authorities charged two men accused of leading TeamPCP, a cybercrime group linked to supply chain attacks that potentially compromised more than 1,000 organizations, exposed 500,000 credentials and drove global cleanup costs into the hundreds of millions.

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Australian Scam Rules Impose Tough Penalties But Leave Critical Players Unregulated Australia's new Scams Prevention Framework promises shared responsibility among businesses in key sectors. But gaps in coverage could leave banks exposed and victims asking who ultimately reimburses for their fraud losses. The rules take effect in March 2027.

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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.