Russian hackers target Mongolian government using spyware exploits | California AI Safety Bill advances amidst debates

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• Google said it found the hidden exploit code embedded on Mongolian government websites between November 2023 and July 2024. TechCrunch

• Groundbreaking California bill aims to reduce potential AI risks – requiring model testing and disclosure of safety protocol. The Guardian

• Unidentified “malfunction” at a datacenter used by the Netherlands Ministry of Defence is causing widespread disruption across the country. The Record by Recorded Future

Critical technology tracker: two-decade data shows rewards of long-term research investment
The Strategist
Jenny Wong-Leung, Stephan Robin and Danielle Cave
China and the United States have effectively switched places as the overwhelming leader in research in just two decades, ASPI’s latest. Critical Technology Tracker results reveal. The latest tracker findings, which can be found in a new report and on the website, show the stunning shift in research leadership over the past 21 years towards large economies in the Indo-Pacific, led by China’s exceptional gains. Critical technologies have been on the agenda for US National Security Adviser Jake Sullivan’s visit to Beijing this week—the first visit by a US NSA since 2016. Meanwhile, dozens of countries are coming together in Australia for the third Sydney Dialogue on Monday to discuss issues around technology, security, cyber and global strategic competition.

• China now global leader in 90% of critical tech research: think tank
  Nikkei Asia
  Nina Lakhani
  China is the top research nation in the vast majority of advanced technologies, according to a new study by an Australian think tank ASPI that calls on the U.S. and its Asian allies to work together to catch up.”In a range of technologies, such as advanced robotics and autonomous systems operation technology, combined AUKUS efforts still trail China’s high-impact research output,” according to the report. “Combining AUKUS efforts with those of closer partners Japan and South Korea in these areas, however, helps close the gap in research performance.”

• India edges past the UK in critical technologies research; IIT Bombay, Roorkee top performers
  WIO News
  Mukul Sharma
  India has edged past the United Kingdom by delivering more cutting-edge critical technology research during the period between 2019 and 2023, data published by the Australian Strategic Policy Institute showed..While more Indian research papers in critical technologies are being cited by researchers worldwide, overall, few India-based institutions appear in the top 20 rankings across any period between 2003-2023. But for the period between 2019 and 2023, two Indian institutions — Indian Institute of Technology Bombay (10) and Indian Institute of Technology Roorkee (14) — feature among the top 20 institutions for critical technology research.

• India among critical tech leaders, behind only US and China in AI
  Business Standard
  Surajeet Das Gupta
  India has emerged as a global research powerhouse, ranking among the top five countries in 45 out of 64 critical technologies in 2023, up from 37 a year before. According to the Critical Technology Tracker report by the Australian Strategic Policy Institute, the country has secured the second position in seven technologies. In 2023, India also overtook the US to claim the second spot in two emerging fields of technological research: biological manufacturing and distributed ledger technology.

ASPI calls for ‘realistic cost-benefit analysis’ of the government’s proposed digital ID platform
CyberDaily
David Hollingworth
While many criticise the government’s plan for a federated digital ID system, citing privacy concerns, ASPI released brief, “Australia’s new digital ID system: Finding the right way to implement it”, written by Rajiv Shah is generally supportive of the benefits it could bring, such as easier identity verification for various purposes. However, it also has policy concerns and recommendations. While the government’s aims are laudable, it still has much work to do to make a case for the system and make sure that all stakeholders trust it.

The politics of subsea cables in Indonesia: Navigating great power competition
PRIO brief
Fitriani, Habib Dzakwan and Ilaria Carrozza
The technological competition between the US and China has extended beyond more conventional sectors (e.g., microchips and manufacturing) into lesser known domains such as subsea communication cables. Indonesia faces challenges and risks from this competition. This policy brief outlines the politics of subsea cables in Indonesia and offers recommendations for how Indonesia may navigate these complexities when developing and utilising such critical infrastructure.

Why Australia is not yet a critical minerals powerhouse
The Economist
Australia should have a huge advance in the race for critical minerals. Its red centre holds large reserves of the minerals and rare earths that are vital for green and military technologies. But Australia is struggling to get its critical minerals out of the ground as China produces more than half the world’s rare earths and the government subsidises national companies. This lets China force down prices, says John Coyne of the Australian Strategic Policy Institute.

Defence reveals roadmap for $11 billion tech overhaul
The Mandarin
Julian Bajkowski
The Department of Defence has unveiled a comprehensive roadmap for its most significant IT overhaul in over a decade, aiming to replace legacy systems with a cloud-powered, hyper-scaled single information environment within three years. The strategy emphasises rebuilding internal capabilities and reducing reliance on external consultancies, aiming to eliminate all legacy systems by 2027. It focuses on developing a skilled workforce, creating interoperable global and sovereign ICT platforms, and building a Top Secret-rated cloud for secure collaboration with allies.

Chat group offered AFP clues on doxxer
The Australian
Alexi Demetriadi
Jewish creatives, doxxed by pro-Palestine activists after a New York Times journalist shared their WhatsApp group content, filed a complaint with Australian Federal Police in April. They offered information to help identify “person X,” alleged to be central to the doxxing incident. The leak led to threats and abuse, prompting the Albanese government to propose anti-doxxing legislation. The AFP is under pressure to investigate, with the complainants believing they have circumstantial evidence showing a coordinated effort to harass Jewish group members.

DISR backs strict quantum computing export control amid backlash
The Mandarin
Tegan Jones
The Department of Industry, Science and Resources has backed the Department of Defence’s decision to impose stricter export controls on quantum computing technology, as part of the AUKUS alliance between Australia, the US, and the UK. These new controls, which include regulating quantum computers with 34 or more qubits, aim to enhance defence cooperation but also tighten restrictions on sensitive technologies. This aligns Australia with similar measures in the UK and France.

Authorities warn AI, deepfake technology in romance scams costing WA victims thousands
ABC News
Keane Bourke
Authorities are warning people to remain vigilant of scammers using AI to disguise themselves in video calls. A total of 26 West Australians have lost $2.9 million to romance scams this year. State Commerce Minister Sue Ellery has encouraged people to report suspicious online activity to authorities. Ms Ayres urged victims to be aware of red flags, like people only video calling at night and getting agitated when people refuse to send money.

Can China Tech Find a Home in Silicon Valley?
The New York Times
Li Yuan
Entrepreneurs and venture capitalists are setting up firms across the Pacific, only to find that any investment with Chinese ties is a hard sell. Chinese tech professionals are moving to Silicon Valley for opportunities they don’t believe are available in China anymore. They’re part of a wave of Chinese companies “going global,” as a growing number of businesses look outside their home country for growth. The problem for China’s displaced investors is that the US isn’t exactly a welcoming land.

China invests $6.1 billion in computing data center project, official says
Reuters
Beijing officially launched the initiative, dubbed “Eastern Data, Western Computing”, in early 2022 as part of President Xi Jinping’s push to build a “digital China”. China’s massive investment in computing comes as it faces increasing restrictions from the US, which has limited exports of some advanced computing products, including those from industry leader Nvidia.

California advances landmark legislation to regulate large AI models
The Guardian
A California bill that would establish first-in-the-nation safety measures for the largest AI systems cleared an important vote. The proposal, aiming to reduce potential risks created by AI, would require companies to test their models and publicly disclose their safety protocols to prevent the models from being manipulated to, for example, wipe out the state’s electric grid or help build chemical weapons – scenarios experts say could be possible in the future with such rapid advancements in the industry.

• California AI bill passes State Assembly, pushing AI fight to Newsom
  The Washington Post
  Gerrit De Vynck and Cat Zakrzewski
  The Safe and Secure Innovation for Frontier AI Models Act (bill “1047”) has divided the AI community. Some advocate for stricter limits to prevent risks like cyberattacks and autonomous weapons, while others argue that strict regulations could stifle innovation and allow other countries to outpace the US in tech. Google and Meta have written letters opposing the law.

• Contentious California AI bill passes legislature, awaits governor’s signature
  Reuters
  Anna Tong
  California lawmakers passed a hotly contested artificial-intelligence safety bill, after which it will need one more process vote before its fate is in the hands of Governor Gavin Newsom, who has until Sept. 30 to decide whether to sign it into law or veto it.

Intel officials say they anticipate more hacking attempts as US election nears
The Record by Recorded Future
Martin Matishak
Senior US intelligence officials on Wednesday expressed confidence that they are better poised to respond to foreign cyberattacks on the 2024 election than previous cycles — even after the breach of Donald Trump’s presidential campaign by Iranian hackers.

Two Republicans want Pentagon to add Chinese battery maker CATL to restricted list
Reuters
David Shepardson
Senator Marco Rubio and Representative John Moolenaar asked the US Defense Department to add Chinese battery maker CATL to a restricted list of companies allegedly working with Beijing’s military. Companies added to the list cannot receive US military contracts and being added to the list carries significant reputational risks, experts say. The lawmakers said CATL has deep ties to the Chinese Communist Party, and they argued reliance on CATL batteries endangers US national security.

TikTok must face lawsuit over 10-year-old girl’s death, US court rules
Reuters
Nate Raymond
A US appeals court has revived a lawsuit against TikTok by the mother of a 10-year-old girl who died after taking part in a viral “blackout challenge” in which users of the social media platform were dared to choke themselves until they passed out. While a federal law typically shields internet companies from lawsuits over content posted by users, the Philadelphia-based 3rd US Circuit Court of Appeals on Tuesday ruled, the law does not bar Nylah Anderson’s mother from pursuing claims that TikTok’s algorithm recommended the challenge to her daughter.

‘My identity is stolen’: Photos of European influencers used to push pro-Trump propaganda on fake X accounts
CNN
Katie Polglase
The fake accounts are among 56 profiles on X identified by CNN and CIR, using a mixture of digital sleuthing and reverse image search tools, as appearing to be part of a coordinated campaign backing the Trump-Vance ticket ahead of the 2024 presidential election. There’s no indication that the Trump campaign is involved.

Brazil Threatens to Ban Elon Musk’s X
The New York Times
Kate Conger and Jack Nicas
Brazil’s Supreme Court on Wednesday gave Elon Musk 24 hours to name a legal representative for X in Brazil or face a ban of his social network across the nation of 200 million. If X refuses to comply, it could lose access to one of its largest markets outside the US. Justice Moraes has said Brazilian law requires tech companies to have a legal representative in the country in order to operate an online service there. When the messaging service Telegram failed to respond to Brazil’s Supreme Court in 2022, Justice Moraes began the process of banning the service in the country. After Telegram quickly responded, he reversed course.

Deepfakes explode in Japan, tearing down language barrier
Nikkei Asia
Rei Kobayashi
The number of deepfake cases in Japan jumped 28-fold last year, according to a tally by Sumsub, a British provider of identity verification services. The rise was the fifth largest among 224 economies tracked. This shows how the language barrier no longer provides a protection against global scammers. Until recently, Japan had enjoyed a low success rate of scams compared to the English-speaking world, partly because Japanese is regarded as one of the most difficult languages in the world to master, security experts say.

Google considering large data centre in Vietnam, source says, in nation’s first by US big tech
Reuters
Phuong Nguyen and Francesco Guarascio
Google is considering building a large data centre in Vietnam, a person briefed on the plans said, in what would be the first such investment by a big U.S. technology company in the Southeast Asian nation. Google is weighing setting up a “hyperscale” data centre close to Ho Chi Minh City, Vietnam’s southern economic hub, the source said, the data centre could be ready in 2027. Hyperscale centres are the largest in the industry, with power consumption usually similar to that of a big city.

Top movie piracy ring taken down
Hollywood Reporter
Katie Kilkenny
An anti-piracy coalition comprised of major studios in the US and across the globe is claiming victory against Fmovies, a significant streaming operation based in Vietnam. Alliance for Creativity and Entertainment revealed that it had worked with Hanoi police to shutter Fmovies and affiliated sites, which together made up “the largest pirate streaming operation in the world,” according to the organisation.

Pakistani businesses warn of internet disruptions amid fears of ‘firewall’ censorship
Financial Times
John Reed and Humza Jilan
Internet users in Pakistan have reported slower speeds and problems sending photos, videos and other content on WhatsApp over mobile networks since mid-August. Authorities were already blocking access to messaging platform Telegram and social media site X over national security concerns. Digital rights activists believe the disruption is due to the government installing “firewall” technology to filter content. “Our understanding is that the technology is being supplied by a foreign government company,” said Usama Khilji, director of Bolo Bhi, a digital rights organisation.

Indian sites spreading harmful disinformation are earning money through Google’s Ads
Bellingcat
Pooja Chaudhuri
At least four websites carry stories about conspiracy theory and also profit from them through advertisements placed on those articles. Through Google’s Adsense programme, these online publishers are estimated to earn $10-$20 for every 1,000 views on these stories – even while Google has actively promoted its efforts to fight online disinformation and a policy against hateful conduct. Bellingcat searched on Google for articles published between 2022 and 2024 that repeated 17 falsehoods that had previously been debunked.

Ambani touts AI
Bloomberg
Sanjai P R and Satviki Sanjay
Billionaire Mukesh Ambani wants to “democratize” AI by offering models and services to ordinary Indians at affordable prices through his plans for Reliance Industries Ltd. to develop cutting-edge artificial intelligence tools. The energy-to-entertainment conglomerate also plans to set up “gigawattscale AI-ready data centers” powered by green energy in Jamnagar in Gujarat — home for all of the group’s big businesses from oil refining to green energy.

Russian government hackers found using exploits made by spyware companies NSO and Intellexa
TechCrunch
Zack Whittaker
Google says it has evidence that Russian government hackers are using exploits that are “identical or strikingly similar” to those previously made by spyware makers Intellexa and NSO Group. Google said both iterations of the watering hole campaign targeting the Mongolian government used code resembling or matching exploits from Intellexa and NSO Group. Google said it found the hidden exploit code embedded on Mongolian government websites between November 2023 and July 2024. During this time, anyone who visited these sites using an iPhone or Android device could have had their phone hacked and data stolen.

• Attacks developed by spyware vendors are being re-used by Russia
  The Register
  Iain Thomson
  Google’s Threat Analysis Group has spotted an interesting similarity in tactics used by commercial spyware makers and Russia-linked gangs. The Team spotted a watering-hole attack – in which crooks seek to infect victims via a legit website those targets commonly visit – that it’s attributed to the Russia-sponsored APT29 crew; specifically, that APT29 infected Mongolia’s Cabinet and its Ministry of Foreign Affairs websites to attack visitors.

3 unsolved mysteries in the case of Telegram CEO Pavel Durov
POLITICO
Victor Goury-Laffont, Océane Herrero and Eva Hartog
Telegram founder Durov was born in Russia, obtained French citizenship in 2021. Aside of being French and Russian, Durov is also a citizen of the United Arab Emirates and the Caribbean island state of Saint Kitts and Nevis. Moscow has sought to get involved since his arrest. Telegram is widely used by the Russian military for battlefield communications, by pro-war military bloggers and journalists and by millions of ordinary Russians and political officials, the app is also widely used for personal messages and blogs by Ukrainian soldiers and civilians.

• Telegram founder’s indictment thrusts encryption into the spotlight
  The New York Times
  Mike Isaac and Sheera Frenkel
  Unlike WhatsApp, Signal and Apple’s iMessage, Telegram requires users to manually opt into encryption through a hard-to-find setting within the app. That setting is offered only in one-to-one conversations on Telegram. The quality of Telegram’s encryption has also been debated by security experts. Signal has made its software code viewable to the public, so anyone can check the encryption for vulnerabilities. Telegram does not offer the same transparency and it is unclear how strong its encryption is.

• Telegram boss’s lawyer dismisses probe against Durov as absurd
  Reuters
  A lawyer for Telegram boss Pavel Durov, who is being investigated in France, said it was “totally absurd” to suggest the head of a social network was responsible for any criminal acts committed on the platform. Durov, who spent four days in police custody following his arrest on Saturday at an airport near Paris, was granted bail on condition he pays 5 million euros ($5.6 million) and does not leave French territory. French President Emmanuel Macron, who is known to be an avid user of Telegram, said that Durov’s arrest was “in no way a political decision”.

Malfunction’ at Dutch defense ministry datacenter causing mass disruption
The Record by Recorded Future
Alexander Martin
A currently unidentified “malfunction” at a datacenter used by the Ministry of Defence in the Netherlands is causing widespread disruption across the country. The incident, which began on Tuesday evening, has left civilian flights grounded due to the impact on air traffic control. It has also affected emergency-services communications, while civil servants at the MoD and other departments that share the same network are unable to access their government workstations.

• IT problems paralyze Dutch coast guard, military, airport
  Deutsche Welle
  In the Netherlands, an IT glitch affected operations at Eindhoven Airport and a number of government agencies, including the coast guard and military police. Sources at the National Cybersecurity Center told local media outlet AD that there is no evidence yet of a cyberattack, but added that one outage could be contributing to the other.

The Netherlands to put more curbs on ASML’s China chip business
Bloomberg
Cagan Koc and Jenny Leonard
The Netherlands plans to limit ASML Holding NV’s ability to repair and maintain its semiconductor equipment in China, a potentially painful blow to Beijing’s efforts to develop a world-class chip industry. The Dutch company’s chip-making equipment, the most advanced in the industry, is sold with maintenance agreements that are essential to keep them running. Withdrawing such support could render at least some of them inoperable as soon as next year.

UK reshapes its AI strategy under pressure to cut costs
Reuters
Martin Coulter
Britain’s Labour government is drawing up a new, cost-cutting AI strategy ahead of a crunch autumn budget – prioritising public sector adoption of the technology over direct investment into industry. It has already scrapped a planned 1.3 billion pounds’ ($1.72 billion) worth of investment in related technologies – drawn up by the previous Conservative government – including an investment promised to develop a supercomputer at the University of Edinburgh. The amount is considered small in the wider AI landscape and compared with France with 2.5 billion euros ($2.77 billion) invested in developing the technology domestically.

Iran cyber operations exposed in reports from Google, Microsoft
The Record by Recorded Future
Jonathan Greig
Iran’s military is using an array of cyber campaigns to root out people accused of helping the country’s adversaries, according to a new report from Google. Researchers at the company’s Mandiant unit uncovered a web of social media accounts, fake websites and more used by Iran’s military to gain information on “Iranians and domestic threats who may be collaborating with intelligence and security agencies abroad, particularly in Israel.” Mandiant found multiple fake social media accounts on Twitter, Telegram, YouTube and an Iranian social media site known as Virasty.

Google, Apple, and Discord let harmful AI ‘undress’ websites use their sign-on systems
WIRED
Matt Burgess
A WIRED analysis found 16 of the biggest so-called undress and “nudify” websites using the sign-in infrastructure from Google, Apple, Discord, Twitter, Patreon, and Line. This approach allows people to easily create accounts on the deepfake websites—offering them a veneer of credibility—before they pay for credits and generate images. The sign-in tools are deployed through APIs and common authentication methods, allow people to use existing accounts to join the deepfake websites.

Apple and Nvidia in Talks to Invest in OpenAI
The New York Times
Cade Metz, Michael J. de la Merced and Tripp Mickle
Apple and the chipmaker Nvidia are in talks to invest in OpenAI as part of a new deal that would value the San Francisco artificial intelligence start-up at $100 billion, according to three people familiar with the discussions. Since 2019, Microsoft and others have invested over $13 billion in the start-up, which needs billions of dollars in raw computing power to build its AI technologies. Nvidia, which supplies much of that computing power in the form of specialized computer chips suited to the development of AI, has experienced dramatic growth over the last 18 months.

Major sites are saying no to Apple’s AI scraping
WIRED
Kate Knibbs
Apple introduced a tool called Applebot-Extended that allows publishers to opt out of having their data used for AI training. This tool, an extension of Apple’s existing web crawler Applebot, enables website owners to prevent their content from being used to train Apple’s AI models while still allowing it to be indexed for search purposes. Prominent news outlets and social platforms, including Facebook and The New York Times have chosen to block Applebot-Extended, reflecting a growing tension over AI’s use of web data and intellectual property rights.

AI’s race for US energy butts up against bitcoin mining
Reuters
Laila Kearney and Mrinalika Roy
US technology companies are pursuing energy assets held by bitcoin miners as they race to secure a shrinking supply of electricity for their rapidly expanding artificial intelligence and cloud computing data centers. Those data centers are driving the fastest US power demand growth since the start of the millennium, outpacing grid expansions and leaving giant technology companies, like Amazon and Microsoft to scavenge for vast amounts of electricity.

ASPI Research Internship
ASPI
Have you recently completed your studies (undergraduate or postgraduate) and want to develop your expertise in defence, foreign and national security policy, including in areas such as strategic competition, defence, deterrence, foreign interference, technology, and security? Do you want to inform the public and government on the critical strategic choices facing Australia and learn what it takes to be a professional analyst? If so, apply for the ASPI Research Internship Program! Please note that this is a paid internship program. Applications will close at midnight Friday 27 September 2024.

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