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A company has fallen victim to a cyber attack after inadvertently hiring a North Korean hacker as a remote IT contractor. The unidentified firm, which operates in the UK, US, or Australia, was targeted after the technician falsified his employment history and personal details to secure the position.

The incident highlights growing concerns over the infiltration of Western companies by North Korean cybercriminals, with experts noting a rise in such cases in recent years. The company allowed cybersecurity responders from Secureworks to disclose the breach in a bid to raise awareness among other organizations.

The technician, believed to be a man, was contracted during the summer and quickly gained access to the company’s computer network using remote working tools. Once inside, he downloaded sensitive data before issuing a ransom demand to the firm. After working for four months and receiving a salary, the contractor was terminated due to poor performance. It is suspected that his earnings were funneled back to North Korea through complex laundering schemes designed to evade Western sanctions.

Following his dismissal, the firm received ransom emails containing some of the stolen data along with a demand for a six-figure payment in cryptocurrency. The hacker threatened to publish or sell the stolen information online if the ransom was not paid. The company has not disclosed whether it complied with the ransom demand.

This incident is part of a disturbing trend, as authorities and cybersecurity experts have warned of an increasing number of covert North Korean workers infiltrating Western firms. The US and South Korea allege that North Korea has tasked thousands of individuals to take on high-paying remote jobs to generate revenue for the regime and circumvent international sanctions.

In September, cybersecurity firm Mandiant reported that dozens of Fortune 100 companies had unknowingly hired North Koreans. Rafe Pilling, Director of Threat Intelligence at Secureworks, described this incident as a “serious escalation of the risk” posed by fraudulent North Korean IT workers. “No longer are they just after a steady paycheck; they are looking for higher sums, more quickly, through data theft and extortion from inside the company defenses,” he noted.

This incident follows another case in July when a North Korean IT worker attempted to hack their employer, cybersecurity firm KnowBe4. The company quickly disabled the worker’s access after detecting suspicious behavior, highlighting the importance of vigilance in hiring practices.

Authorities are urging employers to exercise caution when onboarding new hires, especially those in fully remote positions, to safeguard against potential cyber threats. The incident serves as a stark reminder of the risks associated with remote work and the need for thorough vetting processes.

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Apple Removes Advanced Data Protection in UK After Government Demand

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Apple has announced it will no longer offer its highest level of data security, Advanced Data Protection (ADP), to users in the United Kingdom. The decision follows a request from the UK government for access to encrypted user data.

ADP provides end-to-end encryption, ensuring that only account holders can access their online photos, documents, and other data. Not even Apple can decrypt this information. However, the UK government, citing the Investigatory Powers Act (IPA), requested the ability to access this data, leading Apple to withdraw the service.

Apple expressed disappointment in a statement, reaffirming its stance against creating a “backdoor” into its systems, as it could potentially be exploited by malicious actors. “We have never built a backdoor or master key to any of our products, and we never will,” the company stated.

As of Friday at 15:00 GMT, UK users attempting to activate ADP receive an error message. Those already using the feature will lose access at a later date. The number of users who opted into ADP since its UK launch in December 2022 remains unknown.

Masterton Mayor Gary Caffell called the situation “shocking” and “unexpected,” emphasizing the impact on the local community. Cybersecurity expert Prof. Alan Woodward from Surrey University criticized the UK government’s move as “an act of self-harm,” arguing that it weakens online security and privacy. Online privacy expert Caro Robson noted that Apple’s decision to withdraw a product instead of complying with government demands is “unprecedented.”

Criticism has also come from the United States. Senator Ron Wyden warned that Apple’s withdrawal “creates a dangerous precedent which authoritarian countries will surely follow.” WhatsApp head Will Cathcart echoed concerns on social media, stating that a global backdoor would compromise security for users worldwide.

Apple acknowledged the privacy and security risks associated with this decision but stated its commitment to offering robust data protection in the future. The company hopes to reintroduce ADP in the UK if circumstances change.

Meanwhile, child safety organizations such as the NSPCC have voiced concerns that end-to-end encryption could hinder efforts to detect and prevent child sexual abuse material (CSAM). However, Emily Taylor of Global Signal Exchange argued that encryption is essential for safeguarding consumer privacy, emphasizing its everyday use in banking and secure communication.

The debate highlights the ongoing tension between privacy, government surveillance, and online safety, with global implications for technology companies and their users.

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Apple Halts Advanced Data Protection in UK After Government Demand for Access

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Apple is removing its top-tier data encryption feature, Advanced Data Protection (ADP), from UK users following a government request for access to user data. The decision means that Apple customers in the UK will no longer be able to activate ADP, which ensures that only account holders can access their iCloud-stored content through end-to-end encryption.

The UK government made the request earlier this month, seeking the ability to access encrypted data under the Investigatory Powers Act (IPA), which mandates that companies must provide information to law enforcement agencies upon request. While Apple has consistently resisted creating encryption backdoors, citing potential misuse by cybercriminals, the company confirmed it would disable ADP activation in the UK starting Friday at 3 p.m. GMT. Existing users will also lose access at a future date.

“We are gravely disappointed that UK customers will no longer have access to this security feature,” Apple said in a statement. “We have never built a backdoor or master key into our products and never will.”

The Home Office declined to comment on the specific order, stating, “We do not comment on operational matters.”

Cybersecurity experts have criticized the government’s move, arguing that it undermines online privacy. Professor Alan Woodward of Surrey University called the decision “an act of self-harm” that weakens security for UK users. “It was naïve of the UK government to think they could dictate terms to a US technology company on a global scale,” he added.

The development has sparked backlash from privacy advocates, who describe the order as an “unprecedented attack” on individual privacy. Concerns have also emerged in the United States, where two senior politicians warned that the UK’s demands could jeopardize intelligence-sharing agreements between the two countries.

Despite the removal of ADP in the UK, the feature will remain available to users in other countries, raising questions about the global impact of the UK’s IPA order. In its statement, Apple emphasized its commitment to user privacy and expressed hope that it could restore ADP in the UK in the future. “Enhancing the security of cloud storage with end-to-end encryption is more urgent than ever before,” the company stated.

This latest dispute highlights growing tensions between governments seeking access to encrypted data and technology companies prioritizing user privacy, with potential implications for international regulatory frameworks and cross-border data security.

 

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European PMI Data Reveals Mixed Economic Signals

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February economic data across Europe showcased divergent trends, with the UK’s services sector seeing growth, Germany’s manufacturing hitting a two-year high, and France continuing to face challenges.

The flash estimate for France’s HCOB Manufacturing PMI rose to 45.5 in February from 45 in January, according to S&P Global. While still indicating contraction, this was the mildest decline since May 2024. The services sector, however, fell more sharply, with its PMI dropping to 44.5 from 48.2, driving the composite PMI to 44.5—the steepest contraction since September 2023. Economist Dr. Tariq Kamal Chaudhry of Hamburg Commercial Bank noted that shrinking order intakes and subdued future activity expectations remain key concerns.

In contrast, the UK’s services sector expanded, with its PMI rising to 51.1 from 50.8, surpassing analyst expectations. Despite this growth, new work fell at the fastest rate since November 2022 due to weakened business investment and budget cuts. The UK manufacturing sector continued to contract, with its PMI falling to 46.4 from 48.3, missing market forecasts.

Germany’s manufacturing PMI climbed to 46.1, its highest in two years, supported by slower declines in factory output. Meanwhile, the services sector experienced a slight dip, with its PMI at 52.2 compared to 52.5 in January. Overall, Germany’s private sector remains affected by manufacturing challenges, though the pace of contraction has slowed.

Across the eurozone, the composite PMI held steady at 50.2, signaling marginal growth but falling short of expectations. The manufacturing PMI rose to 47.3 from 46.6, while the services PMI dropped to 50.7 from 51.3. Kyle Chapman, FX markets analyst at Ballinger Group, noted that while modest growth is preferable to contraction, consumer caution due to political and economic uncertainty continues to limit recovery.

In the UK, Chapman pointed to the impact of rising payroll taxes on employment, with one-third of surveyed companies linking lower staffing levels to the October budget. Weak demand and stagnant productivity levels are further hindering the country’s economic performance.

The latest PMI data highlight the complex economic landscape in Europe, with some sectors showing signs of resilience while others grapple with ongoing challenges, influenced by both domestic policies and broader global conditions.

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