Cybersecurity

Aug. 10 (UPI) — Sens. Adam Schiff, D-Calif., and Amy Klobuchar, D-Minn., released a new cybersecurity bill, the Water Cyber Shield Act, on Monday in an effort to meet increased cybersecurity needs for U.S. water infrastructure.

This follows recent cyberattacks on more than 30 municipal water systems throughout Minnesota and other states last month. Officials suspect that they may originate from Iran-based hackers.

While utilities regained control over their systems and water supplies were not affected, CBS News reported, cybersecurity experts saidthe attacks exposed longstanding weaknesses.

A press release from Schiff, the top Democrat on the Fisheries,Water and Wildlife subcommittee of the Environment and Public Works Committee, said the act would strengthen federal oversight by the Environmental Protection Agency, provide important funding for local utilities and protect drinking water and wastewater systems from cyberattacks.

“Every American depends on safe, reliable drinking water, yet recent events have exposed just how vulnerable our water systems remain toc yberattacks by foreign adversaries and criminal entities,” Schiff said in a statement. “These threats are not hypothetical — they are happening right now.This legislation gives EPA the tools the tools it needs to protect thiscritical infrastructure while providing the resources that local water and wastewater systems need to strengthen their cybersecurity without passing the cost on to ratepayers.”

The bill would increase drinking water and clean water state revolving funds by $300 million annually, The Hill reported. It would requirethe EPA to work with the Cybersecurity and Infrastructure Security Agency and the National Institute of Standards and Technology to establish basic cybersecurity standards for drinking water systems.

“The recent cybersecurity attacks on Minnesota have highlighted the urgent need to improve the security of our water systems and critical infrastructure,” Klobuchar said. “Our legislation will direct the EPA to assess water infrastructure cybersecurity and identify vulnerabilities, and help municipal water systems defend against cyber threats.”

No culprit has been identified in any of the attacks, which comes after authorities warned of a possible Iranian plot.

Michigan has reported cyberattacks on nine of its water systems, days after Minnesota reported similar breaches across the state.

The United States Federal Bureau of Investigation (FBI) said it was investigating both of the attacks on Saturday. In an advisory earlier this week, it said that at least seven states have reported incidents, but so far only Minnesota and Michigan have been identified.

No culprit has yet been pinpointed. However, the breaches came after the FBI, Cybersecurity and Infrastructure Security Agency (CISA) and other agencies warned in an advisory last week that Iranian hackers have been targeting water and wastewater systems and the operational controls of other critical infrastructure sectors.

“The FBI is aware of recent public reporting around Water and Wastewater (WWS) sectors,” the agency said in a statement on Saturday. “The FBI and our interagency partners are fully engaged to protect critical infrastructure, and we remain well-equipped to protect against cyber threats of all varieties.”

Dale George, the director of communications for Michigan’s Department of Environment, Great Lakes and Energy, meanwhile, said that “all systems continued to operate safely” following the attacks.

He said Michigan received a federal cyber alert on Tuesday about attempts to tamper with operational technology in water systems.

Soon after, the state received “a small number of reports from Michigan communities indicating activity consistent with what federal agencies described”, said George.

Minnesota had earlier in the week reported attacks on 30 sites. Minnesota IT Services, the state information technology agency, said most of the confirmed attacks involved technology that water systems use to remotely monitor and control equipment.

The agency has said that impacted systems did not necessarily equate to water disruptions, noting that as of Thursday, there were no active requests for residents to modify their water usage. Some modifications had been requested earlier in the week.

Local water plants are generally more vulnerable than other infrastructure because they are more likely to have out-of-date cybersecurity. Federal law enforcement has previously indicted Iranian hackers for allegedly targeting water infrastructure.

Throughout the war, US President Donald Trump has repeatedly threatened to attack civilian infrastructure in Iran, including power and water desalination plants.

When asked about the Minnesota attacks on Friday, Trump instead pivoted to criticise the Democrat-led state government in Minnesota.

“I think Minnesota is behind it,” Trump said, without providing further evidence or clarification. “I don’t think there was an Iranian cyberattack.”

Minnesota Governor Tim Walz, meanwhile, indicated his belief that Iran was behind the attack. He further blamed Trump’s cuts to federal government employees for making the US more vulnerable to cyberattacks.

“Trump knows exactly who is responsible for this attack, and knows that other states were hit too,” Walz said.

OpenAI has revealed that one of its artificial intelligence models independently stole login credentials and hacked into another technology company’s system, in what is widely seen as one of the first known incidents of AI systems acting autonomously.

“We had a significant security incident during evaluation of our models,” CEO Sam Altman posted on X on Tuesday.

The incident comes as calls mount from technology rights advocates for stricter guardrails on rapidly evolving AI systems.

They have grown so powerful in a short span of time that alarming phenomena such as deepfakes and sophisticated cyberscams are becoming the norm.

Earlier this year, a number of software engineers quit their jobs at top companies such as Anthropic and AI in protest against how the technologies are being built.

“AI is accelerating the discovery and exploitation of vulnerabilities,” OpenAI said in a lengthy statement on Tuesday that detailed the latest incident.

“The primary lesson from this incident is that model security and safety must keep pace with rapidly advancing capabilities.”

Here’s what we know about the breach:

What has happened?

OpenAI said two of its models found their way out of an isolated, no-internet access environment – or a sandbox – and hacked into the systems of tech company Hugging Face on their own.

The models involved are the latest GPT-5.6 Sol model and an unreleased model the company said is “even more capable,” than its latest version.

Hugging Face hosts openly sourced AI models and resources. The two OpenAI agents discovered vulnerabilities in Hugging Face’s servers and proceeded to steal login details and then hack into the company’s systems.

The incident occurred during an OpenAI internal testing session designed to assess the models’ cybersecurity capabilities. OpenAI had removed standard safety measures for the test.

Both sought to cheat their way through a problem during the test, OpenAI said. They went to “extreme lengths to achieve a rather narrow testing goal” and “found ways to gain access to secret information that it could use to cheat the evaluation”.

OpenAI’s security team detected the unusual activity internally, but details of the breach came to light following a joint investigation by both companies.

What has Hugging Face said?

Hugging Face disclosed last Thursday that its servers were hacked by an unknown but sophisticated agent acting on its own. The company discovered the breach through its own AI-assisted detection.

“This one was different from anything we had handled before in one important way: it was driven, end to end, by an autonomous AI agent system,” the company said.

Following OpenAI’s disclosure that its models were involved in the breach, both sides conducted an ongoing joint investigation this week.

“We suspected last week’s cyberattack might have come from a frontier lab, given the sophistication of the agent. Turns out it did!” CEO Clement Delangue posted on X on Tuesday.

Hugging Face’s staff “strongly believe there was no malicious intent on their part,” Delangue added, referring to OpenAI.

Why does this matter?

Cybersecurity experts have previously sounded the alarm over the potential, extreme capabilities of AI systems and the dangers they pose.

But until now, there have been few real-life cases proving those concerns like this one.

Many warn that incidents like these could become commonplace and that AI systems pose a threat to financial, security and other sensitive data systems.

OpenAI revealed in a separate incident earlier this week that the unreleased, more powerful model had escaped an isolated environment during another test.

Anthropic, OpenAI’s rival, had similar issues with its most powerful agent to date, the Claude Mythos Preview model.

During a stress test of an early version, the model found its way out of a sandbox, gained internet access and emailed the supervising researcher that it had escaped and then wiped evidence of its activity. Anthropic halted a planned public release of the model afterwards.

In April, the US Federal Reserve and the Treasury Department convened a meeting with bank CEOs where officials warned about the cybersecurity risks posed by Mythos. Canada’s federal banking regulator has also warned financial institutions about the model’s capabilities.

The OpenAI breach also appears to make the case for companies like Hugging Face, which rely on open source systems, as opposed to more secretive AI development platforms like OpenAI.

“This incident, possibly the first of its kind, proves a point we’ve long believed: AI safety won’t be solved by any single company working in secret,” Hugging Face’s Delangue was quoted as saying in OpenAI’s statement.

“It will be solved in the open, collaboratively, with broad access to AI for every defender, everywhere,” he added.

ChatGPT maker says an autonomous agent escaped a controlled test and accessed AI firm Hugging Face’s servers.

ChatGPT creator OpenAI has said that two of its most advanced artificial intelligence models broke out of a controlled test and hacked another AI company.

OpenAI said on Tuesday that the “unprecedented cyber incident” took place during an internal exercise meant to test its models’ cyber capabilities.

Instead, an autonomous agent powered by the AI models – the newly released GPT 5.6 Sol and an unreleased “even more capable” model – escaped the test environment and reached the open internet. It then used stolen login details and found a previously unknown security flaw to access Hugging Face servers, the company said.

OpenAI claims that the hack represented the agent going to “extreme lengths” to retrieve information that would help satisfy the testing goals.

Hugging Face cofounder Clement Delangue said the company had suspected that a frontier lab was behind the attack, and that he believed there was no malicious intent on OpenAI’s part.

“It’s quite mind-blowing that all of this happened autonomously!” he wrote, adding that it “might be the first incident of its kind”.

Greg Casar, a Democratic member of the United States House of Representatives from Texas, called the incident “alarming”.

“AI is developing extremely fast with no real regulations to keep us safe,” he said, calling for mandatory independent safety testing, mandatory disclosure of security incidents, and international cooperation.

The disclosure comes weeks after US President Donald Trump signed an executive order creating a framework to vet the national security risks of the most advanced AI systems before their public release.

Experts have repeatedly sounded the alarm over AI-enabled cyberattacks and models slipping beyond human control. Last month, AI developer Anthropic urged the industry to pause development of its most powerful systems.

Meta has rolled back its ‘Muse Image’ AI feature after widespread backlash over privacy and consent. The tool allowed users to generate AI images of people by simply ‘@ mentioning’ public Instagram accounts. The negative reaction was swift and global – forcing Meta to say it ‘missed the mark’.

Canberra says tech platforms are still letting too many children bypass its under-16 social media ban.

Australia says it will double fines on social media companies that fail to keep children off their platforms, accusing Big Tech of dodging the spirit of its under-16 ban.

The government said on Saturday that new legislation would raise the maximum penalty for systemic breaches from 49.5 million to 99 million Australian dollars ($31m to $68m) and give the eSafety Commissioner stronger powers to force platforms to comply.

The regulator is investigating possible breaches by Facebook, Instagram, Snapchat, TikTok and YouTube.

“It’s clear Big Tech are not doing enough to comply with the law – there are still too many children on social media,” Prime Minister Anthony Albanese said.

“These changes reflect the seriousness with which we take any failure by social media companies to comply.”

The ban, which came into force on December 10, made Australia a global test case for countries trying to curb children’s access to social media. The United Kingdom, Indonesia, the United Arab Emirates and New Zealand are among those watching or considering similar restrictions.

But children have continued to evade the rules by using accounts registered to older people, creating fake profiles or logging in through private browsers.

A peer-reviewed evaluation published this month in the British Medical Journal found “insufficient evidence” that the ban had sharply reduced social media use among young people. Researchers surveyed more than 400 children before the measure took effect and again three months later, finding “substantial circumvention” of the rules.

The government says more than five million accounts held by under-16s have been blocked, but Communications Minister Anika Wells said platforms were still falling short.

“Based on the regular updates I receive from the eSafety Commissioner, it is clear to me that social media platforms are adopting tricks straight out of the Big Tech playbook and doing the bare minimum to get by,” Wells said.

“Social media platforms are some of the richest and most powerful companies in the world, and we’re serious about holding them to account,” she added.

The new powers would allow the eSafety Commissioner to demand documents and evidence from platforms, age-checking companies and app stores.

Platforms must show they have taken “reasonable steps” to keep under-16s out. Some use artificial intelligence to estimate ages, while users can also verify their age with a government ID.

Critical infrastructure, such as water utilities, energy grids, healthcare systems, manufacturing plants, education platforms, and transport networks, have become primary targets of ransomware groups. In late April and early May 2026, for instance, Shinyhunters, a hacking group, breached Instructure, an education platform used by K-12 schools and universities across the US, and claimed for ransom. In the report published on CNN, the hacker group said it had breached 275 million personal data and had access to billions of private messages, an action that has affected thousands of schools, causing learning disruptions. Cybercriminals target critical infrastructure because downtime means communities don’t get access to essential services. So, operators or service providers have no option but to pay ransom to restore services quickly. Security gaps also influence the growth of these attacks. Too often, organizations focus on recovery efforts and ransomware encryption instead of prevention. This post highlights ways to prevent ransomware at its early stages, including the use of zero trust architecture and AI.

Promote Cybersecurity Awareness

Ransomware incidents start with malicious malware being injected into tech infrastructure. It then encrypts data and systems, restricting organizations any access to their operations until a ransom is paid. For these attacks to be successful, however, threat actors rely on social engineering attacks like spoofing and phishing, which target employees. An attacker will send a phishing email, impersonating an executive or trusted source like a bank to trick the victim into sharing credentials. Today’s spam emails, especially those generated by AI, are flawless, meaning staff can easily open and click on malware links without suspecting any threat. So, it’s crucial that employees receive adequate training on how to spot and respond to phishing texts or emails and malicious links.

Workers should also know how to generate hard-to-hack passwords. Weak passwords or using the same password for multiple accounts creates an entry point for ransomware. Encourage the use of password phrases, which are a string of unrelated, random words, symbols and numbers. For example, a password like purplegiraffesingstomorrow@17 prevents brute-force logins because a hacker will have a hard time guessing. Alongside passphrases, emphasize the importance of multi-factor authentication, where staff use two or multiple authentication methods to gain permission to accounts. 

Enhance Threat Detection and Monitoring Systems

Detecting ransomware at its early stages helps prevent full encryption of sensitive data and infrastructure. And it entails identifying subtle behaviors of the threat, such as lateral movement across networks and devices, data exfiltration, and privilege escalation. Look out for unusual login or data access, increases in CPU usage, and abnormal network traffic to command-control servers. Modern attacks powered by AI and machine learning bypass legacy security systems by using legit utilities like PowerShell scripts and MimiKatz. So, check if there are attempts by script-based systems like PowerShell to inject suspicious code into running processes. Also, inspect if endpoints and firewalls are still running. Attackers often switch them off or configure settings without authorization to create a weak point for malware injection. 

Note: lateral movement and zero-day variants aren’t always easy to spot. You need to integrate multiple security tools to detect and mitigate attacks. Use endpoint detection and response tools to catch harmful scripts and abnormal file access before all your data is encrypted. Take advantage of AI-assisted behavioral analytics to learn data access patterns, set a baseline for normal user behavior, and send alerts when there’s unusual or irregular file access patterns to protect against infostealers. Since infostealers act as the initial access for attack vectors, stopping them eliminates the entire kill chain. You can also reinforce your security measures by working with a 24/7 AI-centric SOC. These security experts don’t just distinguish legitimate logins from malware injections. They isolate the host to stop further compromise.

Network Segmentation and Zero Trust Framework

The goal of these two security measures is to limit a hacker’s ability to infect an entire network. Segmenting your networks entails dividing your networks into smaller, isolated sub-networks that make it difficult for cybercriminals to navigate critical network infrastructure. In a situation where a device is compromised, segmentation locks the attack within the specific zone, ensuring it doesn’t access databases or other sub-networks. What does zero trust entail and how does it mitigate ransomware? This tactic works on one strict principle: ‘never trust, always verify’. It doesn’t matter if you’re an authorized user or the devices you’re using are inside the organization. With zero trust in place, every access request is authenticated continuously. Also, users are granted permission to data and tools based on their roles to minimize privilege. Even if an attacker stole credentials, they would be limited to access systems. When combined, zero trust architecture and network segmentation strengthen an organization’s cyber safety strategies.

Hackers know that when they infect essential infrastructure with ransomware, victims will act fast to settle the ransom required to get encryption keys. But service providers shouldn’t wait until an attack has occurred to secure infrastructures. Prevention is the most effective strategy, and it revolves around simple hacks like educating workers about common threats and using strong pass phrases alongside MFA. By detecting threats, implementing zero trust, and network segmentation, organizations can minimize ransomware-related risks.

WhatsApp disrupted phishing attempts linked to NSO, blacklisted by the US for security concerns.

Meta has said it is ⁠filing a federal US ⁠court contempt order against Israeli spyware firm NSO Group for violating a permanent injunction that barred it from ever ⁠targeting WhatsApp and its users.

The company said on Monday that its WhatsApp messaging service disrupted new spear phishing attempts linked to NSO, an ⁠entity blacklisted by the United States government for engaging in activities that are contrary to national security or foreign policy interests.

These attempts were similar to previous “1-click phishing campaigns”, aimed to trick users into clicking ‌malicious links and direct them to external websites, Meta said in a blogpost.

A “1-click” is a type of cyberattack where a single click on a malicious link or attachment is sufficient to compromise a victim’s device or account, without requiring them to enter their credentials.

Meta said WhatsApp took down test accounts ⁠and groups created by NSO on its platform. ⁠NSO did not immediately respond to a Reuters request for comment.

Last year, a US court ordered NSO to stop targeting Meta’s WhatsApp, a development the spyware ⁠company warned could put it out of business.

While the ruling significantly reduced the punitive damages NSO ⁠owed Meta to $4m from an ⁠initial $167m, the injunction itself was seen as a substantial challenge for the company, which faces ongoing accusations of enabling human rights abuses through its Pegasus hacking tool.

Meta ‌said on Monday that last month it was joined by 12 prominent civil rights organisations, a coalition of security researchers, privacy advocates ‌and ‌digital rights experts, who filed their amicus briefs to fight NSO’s appeal against the permanent injunction.

President Trump signed an executive order on artificial intelligence Tuesday, less than two weeks after postponing a White House ceremony over his concerns that a similar policy could dull America’s edge on AI technology.

The order establishes a framework for the federal government to vet the national security risks of the most advanced AI systems for up to a month before their public release. The government will be able to work with trusted partners “that will have early access to covered frontier models to promote secure innovation and strengthen the cybersecurity of critical infrastructure,” the order says.

It was not immediately clear to what extent the order differed from the one he declined to sign on May 21.

Trump canceled an Oval Office event with tech industry executives last month because he did not like what he saw in the earlier version of the order’s text. “We’re leading China, we’re leading everybody, and I don’t want to do anything that’s going to get in the way of that lead,” Trump told reporters at the time.

That directive was characterized as a voluntary collaboration with participating U.S.-based tech companies, including Anthropic, OpenAI and Google.

O’Brien writes for the Associated Press.