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Trump Targets Foreign Technology in New U.S. Power Grid Security Order
Trump's Executive Order 14420 declares a national emergency to restrict foreign-made bulk-power grid equipment over cyber, sabotage and supply-chain risks.
Executive Order 14420, signed August 26, declares a national emergency regarding the foreign supply of bulk-power system electric equipment to the United States. It empowers the Energy Secretary to restrict transactions with designated Covered Foreign Entities involving equipment, software, firmware, digital services, maintenance services, and remote-access capabilities. Covered equipment includes transformers, generators, inverters, RTUs, PLCs, intelligent electronic devices, and protective relays, with transmission rated 69 kV or higher in scope while local distribution is excluded. Already-installed foreign equipment may be subject to identification, isolation, monitoring, or replacement requirements, with phased compliance and pre-qualified vendor exemptions permitted.
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US Authorizes Private Cyber Firms to Hack Transnational Criminal Networks
Trump signed a national security memorandum letting vetted private US cybersecurity firms run government-approved offensive cyber operations against transnational criminal organizations.
The August 13 memorandum creates a program managed by the National Coordination Center covering Cyber Surveillance Operations and Cyber Effects Operations against Cyber-Enabled Transnational Criminal Organizations, explicitly excluding entities that are parts of foreign governments. DOJ and DHS executive directors must co-approve every operation in writing, with extra authorization for operations raising laws-of-armed-conflict questions. Participating firms must pass vetting, annual evaluations and hold a $1 million bond or escrow. Operating procedures are due within 60 days, and the unresolved CFAA exemption question is addressed by requiring direct government control.
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U.S. Sanctions Iran-Linked Hackers Behind Critical Infrastructure Breaches
U.S. Treasury sanctioned nearly 60 Iran-linked entities, including MOIS-affiliated Mabna Institute hackers behind breaches of U.S. critical infrastructure and millions in crypto theft.
The U.S. Treasury launched Operation Economic Outcast, designating nearly 60 Iran-linked entities, individuals, and vessels across nuclear, missile, oil, cyber, and digital asset networks. Five sanctioned individuals are members of the Tehran-based Mabna Institute indicted last week; three allegedly breached and exfiltrated data from U.S. energy, defense, healthcare, IT, and financial organizations since late 2023. TRM Labs traced roughly $16.8 million across 30 wallets tied to the members, and the State Department announced a reward of up to $10 million. The action follows Iranian hacking of FBI Director Kash Patel's email and attacks on over 30 U.S. water and wastewater utilities.
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Risky Bulletin: Russia tells data centers to deploy drone defenses
Russia ordered data center operators to deploy drone strike defenses under a Putin decree allowing temporary state takeover of unprotected critical infrastructure.
The Russian government instructed data center operators to deploy protections against drone strikes under a presidential decree signed by Putin that allows temporary state administration of critical infrastructure operators failing to defend against Ukrainian hacks and drone strikes. Although data centers are not formally critical infrastructure in Russia, the decree applies to them because other sectors depend heavily on cloud services; Russia has more than 180 data centers, over 80% in the European region within range of Ukrainian strikes. The digest also reports a Dropbox breach affecting nearly 5,000 accounts via the Lenovo ID integration, spyware attacks on at least 14 Serbians using NoviSpy or Pegasus, and a password recovery attack targeting hundreds of thousands of X accounts tied to the new X Money service. Other items include a 14-hour compromise of Coder's Cloudflare infrastructure delivering malicious Terraform modules, donor data breaches at Davayte and You Are Not Alone via the Stripe/WooCommerce integration, a $2.5M Aquifer crypto heist, and a TVING breach exposing data of almost 40 million accounts.
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Risky Bulletin: Two TeamPCP members arrested in Australia
Australian Federal Police arrested two alleged TeamPCP members behind supply-chain worm attacks that stole over 500,000 credentials from compromised open-source libraries.
The AFP arrested alleged TeamPCP leader Ruben Thomson, 21, and Louis Gaebler, 23, near Perth; both were charged and remain in custody. The group inserted a self-spreading credential-stealing worm into open-source projects including Trivy, KICS, LiteLLM, and Telnyx, harvesting more than 500,000 credentials used for network access, ransomware, extortion, and sales. About 78,000 tokens and secrets from nearly 2,200 organizations leaked online last month, and the FBI supported the investigation that began in April.
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White House authorizes private US companies to hack foreign criminal networks
Trump memorandum authorizes vetted private US companies to conduct government-supervised offensive cyber operations against foreign criminal networks.
The National Security Presidential Memorandum signed August 12 lets vetted private companies run offensive cyber operations against transnational criminal organizations behind ransomware, phishing and sextortion, under US government oversight. The Homeland Security Task Force's National Coordination Center, led by DOJ and DHS executive directors, must give written approval for both Cyber Surveillance Operations and Cyber Effects Operations. Participating companies must post a $1 million bond or escrow, undergo annual review, and notify authorities if they unintentionally target US persons or systems.
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