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After Six Years, Two Pentesters Arrested in Iowa Receive $600,000 Settlement

"They were crouched down like turkeys peeking over the balcony," the county sheriff told Ars Technica. A half hour past midnight, they were skulking through a courthouse in Iowa's Dallas County on September 11 "carrying backpacks that remind me and several other deputies of maybe the pressure cooker bombs." More deputies arrived... Justin Wynn, 29 of Naples, Florida, and Gary De Mercurio, 43 of Seattle, slowly proceeded down the stairs with hands raised. They then presented the deputies with a letter that explained the intruders weren't criminals but rather penetration testers who had been hired by Iowa's State Court Administration to test the security of its court information system. After calling one or more of the state court officials listed in the letter, the deputies were satisfied the men were authorized to be in the building. But Sheriff Chad Leonard had the men arrested on felony third-degree burglary charges (later reduced to misdemeanor trespassing charges). He told them that while the state government may have wanted to test security, "The State of Iowa has no authority to allow you to break into a county building. You're going to jail." More than six years later, the Des Moines Register reports: Dallas County is paying $600,000 to two men who sued after they were arrested in 2019 while testing courthouse security for Iowa's Judicial Branch, their lawyer says. Gary DeMercurio and Justin Wynn were arrested Sept. 11, 2019, after breaking into the Dallas County Courthouse. They spent about 20 hours in jail and were charged with burglary and possession of burglary tools, though the charges were later dropped. The men were employees of Colorado-based cybersecurity firm Coalfire Labs, with whom state judicial officials had contracted to perform an analysis of the state court system's security. Judicial officials apologized and faced legislative scrutiny for how they had conducted the security test. But even though the burglary charges against DeMercurio and Wynn were dropped, their attorney previously said having a felony arrest on their records made seeking employment difficult. Now the two men are to receive a total of $600,000 as a settlement for their lawsuit, which has been transferred between state and federal courts since they first filed it in July 2021 in Dallas County. The case had been scheduled to go to trial Monday, Jan. 26 until the parties notified the court Jan. 23 of the impending deal... "The settlement confirms what we have said from the beginning: our work was authorized, professional, and done in the public interest," DeMercurio said in a statement. "What happened to us never should have happened. Being arrested for doing the job we were hired to do turned our lives upside down and damaged reputations we spent years building...." "This incident didn't make anyone safer," Wynn said. "It sent a chilling message to security professionals nationwide that helping government identify real vulnerabilities can lead to arrest, prosecution, and public disgrace. That undermines public safety, not enhances it." County Attorney Matt Schultz said dismissing the charges was the decision of his predecessor, according to the newspaper, and that he believed the sheriff did nothing wrong. "I am putting the public on notice that if this situation arises again in the future, I will prosecute to the fullest extent of the law."

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Cyber-Espionage Group Breached Systems in 37 Nations, Security Researchers Say

An anonymous reader shared this report from Bloomberg: An Asian cyber-espionage group has spent the past year breaking into computer systems belonging to governments and critical infrastructure organizations in more than 37 countries, according to the cybersecurity firm Palo Alto Networks, Inc. The state-aligned attackers have infiltrated networks of 70 organizations, including five national law enforcement and border control agencies, according to a new research report from the company. They have also breached three ministries of finance, one country's parliament and a senior elected official in another, the report states. The Santa Clara, California-based firm declined to identify the hackers' country of origin. The spying operation was unusually vast and allowed the hackers to hoover up sensitive information in apparent coordination with geopolitical events, such as diplomatic missions, trade negotiations, political unrest and military actions, according to the report. They used that access to spy on emails, financial dealings and communications about military and police operations, the report states. The hackers also stole information about diplomatic issues, lurking undetected in some systems for months. "They use highly-targeted and tailored fake emails and known, unpatched security flaws to gain access to these networks," said Pete Renals, director of national security programs with Unit 42, the threat intelligence division of Palo Alto Networks.... Palo Alto Networks researchers confirmed that the group successfully accessed and exfiltrated sensitive data from some victims' email servers. Bloomberg writes that according to the cybersecurity firm, this campaign targeted government entities in the Czech Republic and the Ministry of Mines and Energy of Brazil, and also "likely compromised" a device associated with a facility operated by a joint venture between Venezuela's government and an Asian tech firm. The cyberattackers are "also suspected of being active in Germany, Poland, Greece, Italy, Cyprus, Indonesia, Malaysia, Mongolia, Panama, Greece and other countries, according to the report."

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A New Era for Security? Anthropic's Claude Opus 4.6 Found 500 High-Severity Vulnerabilities

Axios reports: Anthropic's latest AI model has found more than 500 previously unknown high-severity security flaws in open-source libraries with little to no prompting, the company shared first with Axios. Why it matters: The advancement signals an inflection point for how AI tools can help cyber defenders, even as AI is also making attacks more dangerous... Anthropic debuted Claude Opus 4.6, the latest version of its largest AI model, on Thursday. Before its debut, Anthropic's frontier red team tested Opus 4.6 in a sandboxed environment [including access to vulnerability analysis tools] to see how well it could find bugs in open-source code... Claude found more than 500 previously unknown zero-day vulnerabilities in open-source code using just its "out-of-the-box" capabilities, and each one was validated by either a member of Anthropic's team or an outside security researcher... According to a blog post, Claude uncovered a flaw in GhostScript, a popular utility that helps process PDF and PostScript files, that could cause it to crash. Claude also found buffer overflow flaws in OpenSC, a utility that processes smart card data, and CGIF, a tool that processes GIF files. Logan Graham, head of Anthropic's frontier red team, told Axios they're considering new AI-powered tools to hunt vulnerabilities. "The models are extremely good at this, and we expect them to get much better still... I wouldn't be surprised if this was one of — or the main way — in which open-source software moving forward was secured."

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Vibe-coded Social Network for AI Bots Exposed Data on Thousands of Humans

Moltbook, a Reddit-like social network that launched last week and bills itself as a platform "built exclusively for AI agents," had a security vulnerability that exposed private messages shared between agents, the email addresses of more than 6,000 human owners, and over a million credentials, according to research published Monday by cybersecurity firm Wiz. The flaw has since been fixed after Wiz contacted Moltbook. Wiz cofounder Ami Luttwak called it a classic byproduct of "vibe coding." Moltbook creator Matt Schlicht posted on X last Friday that he "didn't write one line of code" for the site. He did not immediately respond to a request for comment when reached out by Reuters. Luttwak said the vulnerability also allowed anyone to post to the site, bot or human. "There was no verification of identity," he said.

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Notepad++ Compromised By State Actor

Luthair writes: Notepad++ claims to have been targeted by a state actor, given their previous stance on Uyghurs one can speculate about a candidate. Notepad++, in a blog post: According to the analysis provided by the security experts, the attack involved infrastructure-level compromise that allowed malicious actors to intercept and redirect update traffic destined for notepad-plus-plus.org. The exact technical mechanism remains under investigation, though the compromise occurred at the hosting provider level rather than through vulnerabilities in Notepad++ code itself. Traffic from certain targeted users was selectively redirected to attacker-controlled served malicious update manifests.

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White House Scraps 'Burdensome' Software Security Rules

An anonymous reader quotes a report from SecurityWeek: The White House has announced that software security guidance issued during the Biden administration has been rescinded due to "unproven and burdensome" requirements that prioritized administrative compliance over meaningful security investments. The US Office of Management and Budget (OMB) has issued Memorandum M-26-05 (PDF), officially revoking the previous administration's 2022 policy, 'Enhancing the Security of the Software Supply Chain through Secure Software Development Practices' (M-22-18), as well as the follow-up enhancements announced in 2023 (M-23-16). The new guidance shifts responsibility to individual agency heads to develop tailored security policies for both software and hardware based on their specific mission needs and risk assessments. "Each agency head is ultimately responsible for assuring the security of software and hardware that is permitted to operate on the agency's network," reads the memo sent by the OMB to departments and agencies. "There is no universal, one-size-fits-all method of achieving that result. Each agency should validate provider security utilizing secure development principles and based on a comprehensive risk assessment," the OMB added. While agencies are no longer strictly required to do so, they may continue to use secure software development attestation forms, Software Bills of Materials (SBOMs), and other resources described in M-22-18.

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Nobel Hacking Likely Leaked Peace Prize Winner Name, Probe Finds

An anonymous reader shares a report: A hacking of the Nobel organization's computer systems is the most likely cause of last year's leak of Nobel Peace Prize laureate Maria Corina Machado's name, according to the results of an investigation [non-paywalled source]. An individual or a state actor may have illegally gained access in a cyber breach, the Norwegian Nobel Institute said on Friday after concluding an internal investigation assisted by security authorities. The leak had triggered an unusual betting surge on Machado at the Polymarket platform hours before she was unveiled as the award recipient in October. The Venezuelan opposition leader hadn't previously been considered a favorite for the 2025 prize. "We still think that the digital domain is the main suspect," said Kristian Berg Harpviken, director of the Oslo-based institute, an administrative arm of the Nobel Committee that awards the prize. The institute has decided against filing for a police investigation given "the absence of a clear theory," he said in an interview in Oslo.

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County Pays $600,000 To Pentesters It Arrested For Assessing Courthouse Security

An anonymous reader quotes a report from Ars Technica, written by Dan Goodin: Two security professionals who were arrested in 2019 after performing an authorized security assessment of a county courthouse in Iowa will receive $600,000 to settle a lawsuit they brought alleging wrongful arrest and defamation. The case was brought by Gary DeMercurio and Justin Wynn, two penetration testers who at the time were employed by Colorado-based security firm Coalfire Labs. The men had written authorization from the Iowa Judicial Branch to conduct "red-team" exercises, meaning attempted security breaches that mimic techniques used by criminal hackers or burglars. The objective of such exercises is to test the resilience of existing defenses using the types of real-world attacks the defenses are designed to repel. The rules of engagement for this exercise explicitly permitted "physical attacks," including "lockpicking," against judicial branch buildings so long as they didn't cause significant damage. [...] DeMercurio and Wynn's engagement at the Dallas County Courthouse on September 11, 2019, had been routine. A little after midnight, after finding a side door to the courthouse unlocked, the men closed it and let it lock. They then slipped a makeshift tool through a crack in the door and tripped the locking mechanism. After gaining entry, the pentesters tripped an alarm alerting authorities. Within minutes, deputies arrived and confronted the two intruders. DeMercurio and Wynn produced an authorization letter -- known as a "get out of jail free card" in pen-testing circles. After a deputy called one or more of the state court officials listed in the letter and got confirmation it was legit, the deputies said they were satisfied the men were authorized to be in the building. DeMercurio and Wynn spent the next 10 or 20 minutes telling what their attorney in a court document called "war stories" to deputies who had asked about the type of work they do. When Sheriff Leonard arrived, the tone suddenly changed. He said the Dallas County Courthouse was under his jurisdiction and he hadn't authorized any such intrusion. Leonard had the men arrested, and in the days and weeks to come, he made numerous remarks alleging the men violated the law. A couple months after the incident, he told me that surveillance video from that night showed "they were crouched down like turkeys peeking over the balcony" when deputies were responding. I published a much more detailed account of the event here. Eventually, all charges were dismissed.

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Nike Says It's Investigating Possible Data Breach

Nike says it is investigating a potential data breach, after a group known for cyber attacks reportedly claimed to have leaked a trove of data related to its business operations. From a report: "We always take consumer privacy and data security very seriously," Nike said in a statement. "We are investigating a potential cyber security incident and are actively assessing the situation." The ransomware group World Leaks said on its website that it had published 1.4 terabytes of data from Nike.

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Infotainment, EV Charger Exploits Earn $1M at Pwn2Own Automotive 2026

Trend Micro's Zero Day Initiative sponsored its third annual Pwn2Own Automotive competition in Tokyo this week, receiving 73 entries, the most ever for a Pwn2Own event. "Under Pwn2Own rules, all disclosed vulnerabilities are reported to affected vendors through ZDI," reports Help Net Security, "with public disclosure delayed to allow time for patches." Infotainment platforms from Tesla, Sony, and Alpine were among the systems compromised during demonstrations. Researchers achieved code execution using techniques that included buffer overflows, information leaks, and logic flaws. One Tesla infotainment unit was compromised through a USB-based attack, resulting in root-level access. Electric vehicle charging infrastructure also received significant attention. Teams successfully demonstrated exploits against chargers from Autel, Phoenix Contact, ChargePoint, Grizzl-E, Alpitronic, and EMPORIA. Several attacks involved chaining multiple vulnerabilities to manipulate charging behavior or execute code on the device. These demonstrations highlighted how charging stations operate as network-connected systems with direct interaction with vehicles. There's video recaps on the ZDI YouTube channel — apparently the Fuzzware.io researchers "were able to take over a Phoenix Contact EV charger over bluetooth." Three researchers also exploited the Alpitronic's HYC50 fast-charging with a classic TOCTOU bug, according to the event's site, "and installed a playable version of Doom to boot." They earned $20,000 — part of $1,047,000 USD was awarded during the three-day event. More coverage from SecurityWeek: The winner of the event, the Fuzzware.io team, earned a total of $215,500 for its exploits. The team received the highest individual reward: $60,000 for an Alpitronic HYC50 EV charger exploit delivered through the charging gun. ZDI described it as "the first public exploit of a supercharger".

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Predator Spyware Turns Failed Attacks Into Intelligence For Future Exploits

In December 2024 the Google Threat Intelligence Group published research on the code of the commercial spyware "Predator". But there's now been new research by Jamf (the company behind a mobile device management solution) showing Predator is more dangerous and sophisticated than we realized, according to SecurityWeek. Long-time Slashdot reader wiredmikey writes: The new research reveals an error taxonomy that reports exactly why deployments fail, turning black boxes into diagnostic events for threat actors. Almost exclusively marketed to and used by national governments and intelligence agencies, the spyware also detects cybersecurity tools, suppresses forensics evidence, and has built-in geographic restrictions.

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To Pressure Security Professionals, Mandiant Releases Database That Cracks Weak NTLM Passwords in 12 Hours

Ars Technica reports: Security firm Mandiant [part of Google Cloud] has released a database that allows any administrative password protected by Microsoft's NTLM.v1 hash algorithm to be hacked in an attempt to nudge users who continue using the deprecated function despite known weaknesses.... a precomputed table of hash values linked to their corresponding plaintext. These generic tables, which work against multiple hashing schemes, allow hackers to take over accounts by quickly mapping a stolen hash to its password counterpart... Mandiant said it had released an NTLMv1 rainbow table that will allow defenders and researchers (and, of course, malicious hackers, too) to recover passwords in under 12 hours using consumer hardware costing less than $600 USD. The table is hosted in Google Cloud. The database works against Net-NTLMv1 passwords, which are used in network authentication for accessing resources such as SMB network sharing. Despite its long- and well-known susceptibility to easy cracking, NTLMv1 remains in use in some of the world's more sensitive networks. One reason for the lack of action is that utilities and organizations in industries, including health care and industrial control, often rely on legacy apps that are incompatible with more recently released hashing algorithms. Another reason is that organizations relying on mission-critical systems can't afford the downtime required to migrate. Of course, inertia and penny-pinching are also causes. "By releasing these tables, Mandiant aims to lower the barrier for security professionals to demonstrate the insecurity of Net-NTLMv1," Mandiant said. "While tools to exploit this protocol have existed for years, they often required uploading sensitive data to third-party services or expensive hardware to brute-force keys." "Organizations that rely on Windows networking aren't the only laggards," the article points out. "Microsoft only announced plans to deprecate NTLMv1 last August." Thanks to Slashdot reader joshuark for sharing the news.

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Never-Before-Seen Linux Malware Is 'Far More Advanced Than Typical'

An anonymous reader quotes a report from Ars Technica: Researchers have discovered a never-before-seen framework that infects Linux machines with a wide assortment of modules that are notable for the range of advanced capabilities they provide to attackers. The framework, referred to as VoidLink by its source code, features more than 30 modules that can be used to customize capabilities to meet attackers' needs for each infected machine. These modules can provide additional stealth and specific tools for reconnaissance, privilege escalation, and lateral movement inside a compromised network. The components can be easily added or removed as objectives change over the course of a campaign. VoidLink can target machines within popular cloud services by detecting if an infected machine is hosted inside AWS, GCP, Azure, Alibaba, and Tencent, and there are indications that developers plan to add detections for Huawei, DigitalOcean, and Vultr in future releases. To detect which cloud service hosts the machine, VoidLink examines metadata using the respective vendor's API. Similar frameworks targeting Windows servers have flourished for years. They are less common on Linux machines. The feature set is unusually broad and is "far more advanced than typical Linux malware," said researchers from Checkpoint, the security firm that discovered VoidLink. Its creation may indicate that the attacker's focus is increasingly expanding to include Linux systems, cloud infrastructure, and application deployment environments, as organizations increasingly move workloads to these environments. "VoidLink is a comprehensive ecosystem designed to maintain long-term, stealthy access to compromised Linux systems, particularly those running on public cloud platforms and in containerized environments," the researchers said in a separate post. "Its design reflects a level of planning and investment typically associated with professional threat actors rather than opportunistic attackers, raising the stakes for defenders who may never realize their infrastructure has been quietly taken over." The researchers note that VoidLink poses no immediate threat or required action since it's not actively targeting systems. However, defenders should remain vigilant.

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Fintech Firm Betterment Confirms Data Breach After Hackers Send Fake $10,000 Crypto Scam Messages

An anonymous reader quotes a report from The Verge: Betterment, a financial app, sent a sketchy-looking notification on Friday asking users to send $10,000 to Bitcoin and Ethereum crypto wallets and promising to "triple your crypto," according to a thread on Reddit. The Betterment account says in an X thread that this was an "unauthorized message" that was sent via a "third-party system." TechCrunch has since confirmed that an undisclosed number of Betterment's customers have had their personal information accessed. "The company said customer names, email and postal addresses, phone numbers, and dates of birth were compromised in the attack," reports TechCrunch. Betterment said it detected the attack on the same day and "immediately revoked the unauthorized access and launched a comprehensive investigation, which is ongoing." The fintech firm also said it has reached out to the customers targeted by the hackers and "advised them to disregard the message." "Our ongoing investigation has continued to demonstrate that no customer accounts were accessed and that no passwords or other log-in credentials were compromised," Betterment wrote in the email.

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