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Also: ZachXBT Uncovers DPRK Worker Scam, Hyperbridge Hack, Coinone Fine
This week, Operation Atlantic disrupts $45M phishing fraud, ZachXBT uncovers DPRK crypto worker scheme, Hyperbridge exploit, South Korea fines Coinone $3.5M, Kraken faces extortion attempt over insider data leak and American musician loses $420K in fake Ledger app.

Ising Model Family Targets Calibration, Error Correction at Scale
Nvidia released what it calls the world's first family of open AI models built to reduce errors in quantum computers in a bid to tackle problems blocking the technology's path to practical use. Nvidia is focusing on software, AI models and tools that work alongside quantum hardware.

SANS Institute and Cloud Security Alliance Leaders on the Coming Vulnerability Storm
In the latest Proof of Concept, SANS and Cloud Security Alliance leaders join ISMG editors to discuss how the storm clouds of Claude Mythos could upend cyber defenses by compressing time to exploit, and why vulnerability management, risk models and security operations must change.

Tech Companies Offer 'Fully Sovereign Disaster Recovery Pack'
Four European tech companies have banded together to provide a "fully sovereign disaster recovery pack" for companies in the region that want to hedge against the much-discussed possibility of the U.S. flipping the kill switch on its tech. This stack can be immediately deployed on-premises.

Playbook Aims to Help Healthcare, Public Sector Manage AI Vendor Security Gaps
The Health Sector Coordinating Council released guidance to help the healthcare and public health sector better manage the explosion of third-party AI vendor cyber risk concerns they face, especially as the technology is embedded in all sorts of products.

Critics Call Foreign-Made Router Ban 'Industrial Policy Disguised As Cybersecurity'
Netgear obtained a temporary waiver from the Federal Communications Commission allowing it to continue importing consumer routers through most of 2027, making the networking hardware giant the first consumer brand to circumvent a ban on foreign-made hardware.

Felicis-Led Series A Backs Telemetry Correlation Across Cloud, Identity, Endpoints
Artemis, a New York startup led by former Amazon GuardDuty product leader Shachar Hirshberg, emerged from stealth with $70 million to build an AI-driven SIEM alternative that correlates telemetry across enterprise environments, tailors detections and speeds investigations.

Agencies Prioritizing Tracking Use Over Enforcing Immediate Cutoffs
Federal agency staffers tell ISMG they are still using Anthropic's AI tools weeks after U.S. President Donald Trump ordered an immediate halt, as officials prioritize mapping dependencies and evaluating alternatives over enforcing a rapid shutdown.

Bridging Observability Gaps With AI, OTel and Scalable Data Models
As AI-driven development and cloud adoption accelerate system complexity, traditional observability tools are struggling to keep pace. This analysis outlines four foundational pillars to close visibility gaps and enable faster, AI-powered root cause analysis.

CISO Insights Reveal Gaps Between AI Adoption Speed and Data Security Maturity
A survey of 124 CISOs reveals most enterprises have scaled AI but lack confidence in data security controls. With only one in five initiatives meeting KPIs, gaps in enforcement, data trust and visibility are emerging as critical barriers to AI success.

Real-Time Payments, AI-Led Exploits Are Exposing Flaws Fraud Detection Can't Catch
For years, fraud prevention has followed a familiar script. A transaction is initiated. A model evaluates it. Fraud still gets detected as it happens or after it occurs. But this model is breaking down with the rise of instant payments and artificial intelligence tools.

Slumping Stock and Slower Growth Than Rival Rubrik Pave Way for Take-Private Deal
Reuters reported that Commvault is working with Goldman Sachs to explore a sale after receiving takeover interest from both private equity firms and strategic buyers. Thoma Bravo is among the buyers that have expressed interest in Commvault, sources told Reuters.

Chatbots Getting Better Making Final Diagnoses, But Clinical Reasoning Still Weak
General purpose large language model chatbots are getting better at coming up with patients' final diagnoses but are still weak in clinical reasoning, including generating differential diagnoses to identify and rule out other potential conditions and causes of symptoms.

Congressional Funding Standoff Still Unresolved
The Cybersecurity and Infrastructure Security Agency has told furloughed workers to report to work despite an ongoing funding lapse. U.S. DHS officials in recent days directed all furloughed personnel to return to work on their next scheduled shift, amid increasing concerns from cybersecurity analysts.

Malware-as-a-Service Operations Favors Russian-Speaking Customers
An emerging remote access Trojan targeting Android devices in Spanish-speaking nations is propagating fraudulent advertisements as an initial access point on Meta-owned applications.