RSnake Report 20241001

China's sunken nuclear sub, Hezbollah's HQ destroyed and Longshoreman strike.

Author

Robert "RSnake" Hansen
October 01, 2024

Table of Contents

Hello, and thanks for reading! I am back from Munich and raring to go. And by raring, I mean extremely tired, but thankfully, the world kept spinning, and the news kept flowing! Let’s get to it, shall we?

Life is not so great for the people at home in Russia. There is a fairly haunting thread of people losing loved ones and no one getting any answers over in Russia. I fear it will get much worse for them as the government tightens its noose on communication and more people are arrested for complaining. That didn’t work during the days of the USSR, and it won’t work now, other than to strangle their own people. Sad.

It’s not like they can’t tell. Attrition of all sorts of things is becoming more obvious to people in the surrounding areas, veterans who do manage to return home in whatever state they’re in, and the people who work in tangential supply/logistics. Tanks for instance are on a steady decline.

“attrition of the Russian artillery forces”

The news on the drone front continues to evolve. Two that are worth mentioning. The first is an example of a Vampire drone carrying a robot dog. This drone carrying drone stuff will get a lot more sophisticated. But another way to think of this is a drone carrying a drone soldier. That robot dog may be a kamikazee dog, but more than likely not. But put a gun on it or a rocket launcher, and it becomes a reusable fighting force, and now it’s a force multiplier.

The other is a drone light bomber. The interesting thing about this is unlike some of the smaller drones that drop one or two, or three munitions, this looks like it can handle around 12 munitions. This gives it the ability to do light carpet-bombing runs across a trench line.

It’s also worth mentioning a new Ukrainian range-finding grenade that has been found on the front. It’s a little confusing visually how this works, but basically, it’s using LIDAR and likely shoots a beam in multiple directions to guess proximity. How this makes it through trees, or over walls, or through rain is a bit beyond me, but maybe there is a meaningful delay or other tech designed to be smart about the size, shape, and proximity of the obstacles it is passing by integrated into it as well. I would be very wary of it without a long fuze. What if a bug flies by?

In southeast Asia it looks fairly well confirmed that the Chinese lost a sub, but not out at sea. They lost in at the dock. Once a sub has been fully submerged, there is likely no way to clean it enough to make it salvageable.

“China has lost a nuclear submarine”

In other news, China still increasing it’s coal usage. Although generally flat for the past few years it is growing once more. The performative demands they have made about making the world more green does not map to their own industrial need for energy. By the way, if you haven’t been over there, the air can be anywhere from LA-in-the-70’s bad to almost impossible to see when the winds carry the smoke through the air.

“China new at 56% of world consumption”

Onto the Middle East, where it is rumored that Prince Mohammed bin Salman has purported said that he doesn’t care about “the Palestinian issue.” Now, this news is strange because it comes from leaked meetings, presumably with Blinken, but there’s no first-hand account. The Saudi Prince seems to say that it’s not true - but in the same breath, it seems like he’s more or less banning all speaking of it because he doesn’t think holy sites should be discussing geopolitics. So either he does care and forbids talking about it, or he doesn’t care and is using holy sites as a cover for getting protesters to shut up by force of law. Either way, we have to be careful with this reporting.

There was interesting chatter about an IDF munition that didn’t blow up but made a perfect missile-sized hole through the window of a car in Beirut, looking like it went right through the crotch of the driver. It’s not clear if this munition was designed not to explode or just didn’t due to a variety of potential issues. Interesting if it was intentional.

“Israeli precision strike”

It hasn’t been a great week for Hezbollah on a number of fronts beyond just losing the crown jewels. In one case there was a Pro-Hezbollah parade broken up by the locals. This seems to be a more reoccurring theme, where the locals don’t want anything to do with Hezbollah and want them out of their town. Maybe it’s not wanting IDF bombs on their roofs, or maybe it’s simply not agreeing that they are bringing about Islamic ideals with their tactics.

Also, the Hezbollah HQ was destroyed, including IRGC officers and commanders along with it. This appears to have been the use of bunker-buster munitions mixed with intel failures that led to it. Thirty meters deep and knowing exactly where to drop them is a sophistication that has got to be making Iranian leadership really re-thinking their strategy. In another case in Syria, people were out on the streets celebrating an airstrike that went after Syrian dictator Bashar al-Assad’s brother. And no wonder when Christians are getting pushed out of their homes by Hezbollah. Either way, the message seems clear. Get out.

“bunker-buster bombs”

But the big boom of the week has got to go to the Houthis, who got hit by Israeli airstrikes over the weekend, attacking their ports and power stations. Some of these explosions are pretty impressive, especially one of the oil fields (and more here), which was purportedly 2,000km away from Israeli borders. In another odd event, the Houthis attacked a Russian dark-feet tanker. I guess Russia isn’t coordinating with the Iranian proxies, and the Houthis are being indiscriminate. The Houthis are very confusing. They’ll destroy tankers but then let them get towed to safety. Then, hit another one days later. Which is it? 🙃 

“how that FAFO tastes”

Onto domestic news. A Pro-Palestinian protester mob broke out in NYC. This is the latest of what appears to be an ongoing low-rumble of terrorist supporters. How this doesn’t wind up in everyone getting arrested really comes down to political will right before the election. Hopefully, immediately afterward, whoever is in charge sweeps them all up before they cause any real damage.

There was a huge chemical fire in Georgia that seems to have possibly been caused by an errant sprinkler system reacting with water-reactive chemicals - or at least that’s what some people think. It is such a big fire it’s been visible on radar.

“Biolab chemical plant in Conyers, Georgia”

The Longshoreman strike begins today. Man, is this staged to be a bad one if they cannot come to terms? The union leader put out a video that is absolutely worth a watch if you want to see what they intend for us. CNBC more or less confirmed how bad this could be for us. It could cost us $3-4.5BN per day. That’s a lot of layoffs imminent. 👎️ 

Lastly, there has been a lot of hubbub about NotebookLLM going conscious. Did it? Nope. But this is one of the biggest problems with LLMs and appearing to be sentient when they are, in fact, simply very good at decoding a higher order of human speech, where things are related to other things in a way we aren’t conscious of, but are embedded in how we write. Don’t fall for it. But the real issue is that people will and do fall for this stuff all the time, and that makes it incredibly good clickbait.

Okay, onto the articles!

An Israeli airstrike targeted a Hezbollah compound in southern Beirut, resulting in the death of Hezbollah leader Hassan Nasrallah and extensive destruction in the area. The attack caused multiple high-rise buildings to collapse, leading to confirmed casualties and ongoing excavation efforts to find any remaining bodies.

  • Hassan Nasrallah, the leader of Hezbollah, was killed in an Israeli airstrike.

  • The airstrike resulted in the destruction of several residential buildings in southern Beirut.

[RSnake: So many high-precision strikes in such a narrow radius. Those bunker-busters are pretty accurate, to say the least. Even when I was a kid, I used to read about laser-guided munitions being able to hit a person from an airplane, but those designators were ground-based. It’s pretty impressive to get that many bombs on target without using a local laser designator. But that does bring up an interesting point about how small and disposable designators can get. Set it and forget it?]

A humanitarian crisis is unfolding in Gaza due to severe shortages of food, water, and medical supplies as a result of an Israeli blockade, leading to widespread malnutrition and dehydration among the population. Reports indicate that all Palestinians in Gaza are experiencing food insecurity, and many have died as a direct consequence of these conditions.

  • A Palestinian doctor is struggling to treat severely malnourished children amid a blockade.

  • Both Israel and the United States refute accusations of blocking humanitarian aid, despite allegations of civilian casualties linked to military actions targeting aid efforts.

[RSnake: Leave it to Aljazeera to miss the fact that we have given a lot of aid that has gone missing into tunnels almost immediately rather than being distributed to the Palestinians. Yes, this is real, and awful, and almost entirely Hamas’ own doing.]

Russia has reported significant military losses in the ongoing conflict with Ukraine, with over 1,170 soldiers killed and wounded, as well as the destruction of military equipment. The total estimated combat losses for Russia since February 2022 include around 651,810 military personnel and various types of military hardware, including tanks and artillery systems.

  • Russia has suffered heavy casualties and equipment losses in the war against Ukraine.

  • The ongoing conflict continues to impact military capabilities for both Russia and Ukraine.

[RSnake: At the beginning of the war you’d see a few hundred max casualties a day. These numbers are stratospheric. At a thousand a day, we should see them pass a million casualties by the fall of 2025. They need to completely change their strategy or get NATO to stop supplying weapons to Ukraine if they are going to change this situation. By mid-2025, they’d pass 1% of their population being wounded/dead at this rate.]

Hurricane Helene has caused significant destruction across several southeastern U.S. states, including Florida, Georgia, Tennessee, and North Carolina, prompting the mobilization of over 4,700 National Guard personnel for search and rescue operations. The storm, categorized as a category 4 hurricane, has resulted in widespread flooding, power outages, and damage to infrastructure, with local governments and military response teams actively working to assist affected communities.

  • Hurricane Helene made landfall as a category 4 storm, impacting numerous southeastern states.

  • Over 4,700 National Guard troops are deployed for search and rescue missions following the storm.

Sudan is experiencing a civil war that has led to extreme violence, including murder, rape, and ethnic cleansing perpetrated by militias against Black African groups. One individual, Naima Adam, has reported multiple instances of assaults on her village by these militias, continuing a long history of targeted violence against her community.

  • A civil war in Sudan has reignited violence against Black African ethnic groups.

  • Militias are executing systematic attacks, including murder and rape, reflecting a severe humanitarian crisis.

A recent Russian drone attack on a hospital in Sumy, Ukraine, has resulted in the deaths of nine individuals, along with several injuries, including first responders. This incident is part of ongoing military operations where Russian forces have been targeting Ukrainian civilian infrastructure, which has drawn condemnation from Ukrainian authorities and international organizations as war crimes.

  • Nine people were killed in a double drone strike on a hospital in Sumy, Ukraine.

  • The attack also injured first responders and targeted civilian infrastructure.

Mark Cuban emphasized the critical importance of artificial intelligence (AI) for the United States' military dominance and global position, stating that winning the AI race is essential for maintaining national strength. He noted that current investments in AI by private companies and the Defense Department are insufficient, and urged for increased efforts to secure technological superiority against adversaries like Russia and China.

  • AI is critical for the U.S. military dominance and overall global competitiveness.

  • Increased investment and reforms are needed in military tactics and technology to address future warfare challenges.

  • The call for reform in military tactics and procurement processes was echoed by other officials, stressing the need for the U.S. to adapt to future warfare that will increasingly rely on autonomous systems and advanced algorithms.

[RSnake: He’s right, and unfortunately, this rhetoric, while a bit wild-eyed seeming, is probably not nearly enough. Every person in the US who isn’t otherwise involved in mission-critical tasks will be needed on this if we plan to keep up. However, that said, I spent a lot of time talking with people this week and censorship does tend to make AI worse. It reflects the values of authoritarianism, and those values make AI bad at decision-making because it partially lobotomizes it. More on US’s role in AGI here.]

Israel-Hamas war escalates, Middle East braces for multibillion-dollar insurance costs and US military involvement, as European economies suffer from stagnation

  • Israel launches airstrikes on Gaza Strip in response to rocket attacks

  • Hamas leader Nasrallah dies after health crisis, fueling fears of escalation

  • US prepares for potential military involvement and insurance costs

[RSnake: The insurance… that’s the thing that’ll kill shipping. No shipping company wants to go through the Red Sea without insurance now, so what happens when the insurance providers throw up their hands and say no more losses due to Houthi attacks?]

The U.S. is providing over $2.7 billion in military aid to Ukraine, including long-range weapons and enhancements to air defenses. This assistance raises the total U.S. military support to nearly $60 billion since the Russian invasion in February 2022.

  • The U.S. is sending a Patriot missile battery and Joint Standoff Weapons to strengthen Ukraine's military capabilities.

  • The aid package supports Ukraine's ability to increase its own weapons production and provides funding for additional military training.

[RSnake: And climbing. November is shaping up to be a decision about a lot of things, and one of them is the fate of the EU and Ukraine. Will they step up if we step down?]

Donald Trump met with Ukrainian President Volodymyr Zelensky at his New York base in Trump Tower, stating that it was time for Russia's war in Ukraine to be settled and expressing a common view that the war must end.

  • Trump has repeatedly criticized Ukrainian leader Joe Biden on the US campaign trail, while also claiming he can work with Zelensky to settle the conflict.

  • Zelensky accused Trump of not knowing how to stop the war and called him dangerous for suggesting that Ukraine should give up territory to end the conflict.

[RSnake: While Trump may be able to play the role of strong-man, more likely what this will be is a gentle capitulation with Russia to keep tensions lower and stop spending on the war.]

Israeli Prime Minister Netanyahu reaffirmed Israel's military operations in Gaza and Lebanon during his speech at the UN General Assembly, despite international efforts for a cease-fire. The ongoing conflict has resulted in significant casualties and widespread displacement, with over 42,000 deaths reported and extensive destruction of civilian infrastructure in Gaza and Lebanon.

  • Netanyahu committed to continuing military strikes against Hezbollah in Lebanon.

  • The conflict has resulted in over 42,000 casualties and massive displacement in Gaza.

A US school district is under investigation for allegedly engaging in racial discrimination with its hiring practices as part of its equity policy regime, with parents calling for a federal probe.

  • The Rochester City School District faces allegations of racial discrimination in its hiring process and is under investigation by the Equal Employment Opportunity Commission.

  • The district has implemented policies aimed at increasing diversity among staff, including a plan to hire teachers from historically black colleges and universities.

[RSnake: Because it was/is illegal.]

A significant strike involving 85,000 members of the International Longshoremen’s Association is set to begin on October 1, 2024, due to stalled contract negotiations with the United States Maritime Alliance.

  • A strike by longshoremen is imminent, impacting significant U.S. ports and supply chains.

  • The Biden administration has opted not to intervene, despite the strike's potential economic implications.

China launches massive military drills in disputed South China Sea hours after Blinken tries to reduce regional tensions with US.

  • China conducts maneuvers in a disputed area of the South China Sea just hours after diplomatic talks with the US

  • The drills will include routine early warning and reconnaissance exercises as well as patrols around Scarborough Shoal

  • China's claims in the South China Sea are not supported by international law, according to a 2016 tribunal ruling

[RSnake: If that isn’t a middle finger, I don’t know what is.]

Finland and Estonia are enhancing the surveillance and resilience of their underwater gas and electricity infrastructure, particularly in light of a recent incident involving the Balticconnector gas line which has been linked to sabotage. Meanwhile, Taiwan's Defense Ministry has reported heightened alertness following missile launches within China, as tensions continue to rise in the region.

  • Finland and Estonia are cooperating to improve infrastructure security in response to a suspected sabotage incident.

  • Taiwan is on high alert due to missile firing detected deep within China.

US forces carried out airstrikes in Syria, killing over three dozen fighters from ISIS and Hurras al-Din, a group with ties to al-Qaeda.

  • 37 total fighters were killed in the airstrikes, including one top military commander for Hurras al-Din.

  • The strikes are part of a series of recent raids and airstrikes targeting high-level commanders of ISIS and other groups in Iraq and Syria.

A new space telescope called LISA is set to launch in about 11 years and aims to revolutionize our understanding of the universe by detecting gravitational waves, which are imperceptible ripples in spacetime caused by massive cosmic events.

  • LISA will detect gravitational waves, providing new insights into massive cosmic events.

  • The mission is a $1.6 billion project involving advanced technology and a long-term commitment to understanding the universe.

[RSnake: These can also be used to identify changing “voids” closer to home, like tunnels and floating masses that weigh more than the surrounding area. You can do the math. You typically need three of them to triangulate in 3D space like LIGO.]

AI-driven advancements in chip design have been accelerated by a new technology called AlphaChip, which uses reinforcement learning to optimize the layout of computer chips.

  • AlphaChip improves the efficiency of chip layout design, enabling faster and more optimized designs.

  • It is being applied in various hardware products and is influencing the broader chip design industry.

[RSnake: Great, even fewer engineers know what’s going on at the lowest level of chip design. I am not really a fan of this. We should have someone, somewhere, who understands what is in our chips. But I am not naïve. This will come fast.]

MIT engineers developed a method called Clio that enables robots to quickly map and identify task-relevant objects in real-time. This technology allows robots to interpret their environments based on specific tasks described in natural language, improving their efficiency in various applications, including search and rescue missions.

  • Clio allows robots to focus on task-relevant objects while ignoring irrelevant surroundings.

  • The technology has applications in search and rescue operations and potentially in domestic robots.

California Governor Gavin Newsom has vetoed a significant AI safety bill that would have implemented regulations for advanced AI models in the state. The decision comes in the context of ongoing stalled efforts in Congress to establish a regulatory framework for AI technology, raising questions about oversight and safety in a rapidly evolving sector.

  • Governor Newsom blocked a proposed AI safety bill aimed at regulating advanced AI models in California.

  • The veto possibly allows AI companies to operate without binding restrictions amid congressional stagnation on tech regulation.

[RSnake: I had to read this twice. Yep! For once, a policymaker gets it right. He said it would cause AI manufacturers to leave the state of California. You think?]

The conflict between WordPress and hosting provider WP Engine centers around trademark usage, customer access, and data protection features. WordPress founder Matt Mullenweg has accused WP Engine of detrimental practices that threaten the integrity of WordPress as an open-source platform, prompting legal disputes and community concerns about the future of WordPress and its ecosystem.

  • There is a significant dispute between WordPress and WP Engine regarding trademark rights and user data protection.

  • Matt Mullenweg's accusations against WP Engine raise issues about the impact of commercial entities on open-source projects.

[RSnake: And more people are considering if WordPress is safe to host on as a platform since he controls so much of the platform. So there will be migrations. Now, the question is… to what?]

NASA selected SpaceX and Boeing to develop commercial spacecraft for transporting astronauts to the ISS.

  • NASA previously nearly chose Boeing as the sole provider for crew transport to the ISS.

  • SpaceX has successfully transported astronauts, while Boeing's Starliner faced multiple issues.

[RSnake: It is very lucky they didn’t put all their chips on one vendor. This is the power of capitalism right here. The best product at the lowest price wins.]

Recent advancements in AI have focused on improving negotiation strategies, specifically integrating fairness into the learning process. The new framework proposed addresses the shortcomings of traditional game theoretic approaches by using a novel method that combines reinforcement learning with human-compatible strategies.

  • A new framework called FDHC incorporates fairness into negotiation strategies.

  • The method leverages a pre-trained language model for more egalitarian negotiation outcomes.

Meta announced new advancements in AI and the metaverse, including the Orion smart glasses, while OpenAI experienced notable executive departures amid a lawsuit alleging wrongful termination and discrimination. Major tech events also took place, including Y Combinator's Demo Day, as Amazon plans to enforce a return-to-office mandate impacting employee sentiment.

  • Meta unveiled advanced smart glasses and updates to its AI models.

  • OpenAI faces legal challenges and significant executive turnover as it prepares for its developer conference.

[RSnake: Meta gave me a pair of the Wayfarer glasses last week to play with/test. I can definitely see how AI will become more intertwined with it, as without it, it’s really only slightly better than having your phone out to take pictures and an audio player. It is combined with AI that it gets exciting. So if you live in the EU where AI is all but forbidden, they’re not of much utility.]

Silvergate Bank has filed for Chapter 11 bankruptcy following significant losses and a rapid decline in deposits linked to regulatory pressures and its association with the collapse of crypto exchange FTX. The bank's downfall has been tied to a broader regional banking crisis in 2023 that affected several prominent banks, including Signature Bank and Silicon Valley Bank, raising questions about the regulatory environment for institutions involved in the cryptocurrency sector.

  • Silvergate's bankruptcy highlights the challenges faced by banks dealing with cryptocurrency amid increasing regulatory scrutiny.

  • The regulatory actions against Silvergate are seen as a contributor to a larger banking crisis that impacted major financial institutions.

OpenAI is growing rapidly and burning through large amounts of money, with estimated annual sales of $3.7 billion and revenue expected to balloon to $11.6 billion next year. The company is seeking $7 billion in investment for a potential valuation of $150 billion. OpenAI's expenses are growing rapidly, and the company expects to lose roughly $5 billion this year.

  • OpenAI is expecting to make a lot more money from its chatbot in the coming years

  • The company is seeking $7 billion in investment for a potential valuation of $150 billion

[RSnake: It is expensive to map out all the info in the world.]

Northvolt, a major European battery manufacturer, is under investigation following multiple worker fatalities at its production facility in Sweden and is facing significant operational and financial challenges. The company has reduced its workforce and stalled expansion plans, while its future hangs in the balance as lenders consider their support amidst liquidity issues and increasing competition from the Chinese market.

  • Northvolt is facing a formal investigation due to worker fatalities at its factory.

  • The company is experiencing severe financial difficulties and is seeking support from lenders.

Microsoft is increasingly controlling the software development ecosystem, particularly through Visual Studio Code, which is open-source but uses a proprietary distribution that limits its integration with alternative tools. As a result, many developers relying on Visual Studio Code may face legal and technical challenges if they attempt to use non-Microsoft versions or extensions, potentially leading to a fractured ecosystem in software development. Enterprises that exceed certain sizes are now subject to new subscription agreements for tools like Docker, showing a broader trend towards monetizing software development resources.

  • Microsoft's proprietary licensing for Visual Studio Code may legally jeopardize users of alternative distributions.

  • New subscription requirements for tools like Docker reflect a shift in the software industry towards monetization.

Active Directory (AD) is a critical component for enterprise networks, managing user authentication and resource access, making it a significant target for cyber attacks. A joint report from multiple cybersecurity agencies outlines various techniques attackers use to compromise AD and provides mitigation strategies to reduce these risks, emphasizing the need for robust security measures to protect networks from persistent threats.

  • Active Directory is frequently targeted by malicious actors due to its role in authentication and permissions.

  • The report details various attack methods and recommended defenses to secure Active Directory against potential compromises.

A growing trend of AI-related crimes, including deepfake fraud, is becoming increasingly prevalent globally, with 49% of businesses now hit by audio and video scams. This is a rise from the previous year where every second business reported incidents of deepfake fraud. The survey also reveals that identity fraud involving fake or modified documents is on the rise.

  • The prevalence of video deepfakes has surged to 49%, with a 20% increase compared to 2022, and audio deepfakes have also seen a significant rise.

  • Identity fraud involving fake or modified documents is the top identity fraud method for certain countries, including Mexico, the UAE, the US, and Germany.

Researchers have discovered vulnerabilities in compiled code using natural language processing embedding techniques, with word2vec models achieving high validation accuracy in detecting vulnerabilities.

  • Word2vec Skip-Gram models achieved 92% validation accuracy in detecting vulnerabilities, outperforming other models such as BERT and RoBERTa.

  • The study suggests that complex contextual embeddings may not provide advantages over simpler word2vec models for this task when a limited number of data samples are used to train the bidirectional transformer-based models.

A TikTok trend called chroming, which involves inhaling nitrous oxide from whipped cream chargers and other household items, has led to a surge in inhalant use among children and teens, with over 25 million views on the platform. The misuse of inhalants can cause brain damage or death, and the covert nature of these substances makes it harder for parents and teachers to detect the behavior. Social media companies like TikTok need to do more to prevent the spread of such content.

  • Chroming trend on TikTok involves inhaling nitrous oxide from whipped cream chargers and other household items

  • The misuse of inhalants can cause brain damage or death

There has been a significant increase of 53% in the number of unique malware samples observed globally between April and June, with approximately 11,500 samples detected daily. The U.S. is facing the highest number of attacks, particularly targeting critical infrastructure, while the financial and healthcare sectors are also experiencing numerous cyber threats, including sophisticated phishing schemes and potential use of generative AI by cybercriminals to create new malware.

  • Unique malware samples targeted critical infrastructure organizations significantly during the observed period.

  • The highest volume of cyberattacks is reported in the U.S., with a rising trend in macro-level targeted attacks through phishing.

New methods have been developed to create artificial lane-like patterns using strategically blocked sunlight, which can deceive autonomous vehicle perception systems and cause accidents. These attacks can be performed with varying distances and speeds, making them a significant concern for the safety of drivers. The attacks also maintain an average stealthiness of 83.6% as measured through human subject experiments.

  • Developing new methods to create artificial lane-like patterns using blocked sunlight to deceive autonomous vehicle perception systems.

  • These attacks can cause accidents and maintain an average stealthiness of 83.6% as measured through human subject experiments.

Social media platforms have significant vulnerabilities in their security measures, allowing malicious actors to exploit weaknesses and disseminate misinformation.

  • The emergence of Multimodal Foundation Models (MFMs) holds promise for transforming social media platforms but introduces substantial security concerns.

  • Eight popular social media platforms failed to detect and prevent the operation of MFM bots, revealing a critical gap in their security measures.

North Korea has targeted German defense company Diehl Defence with a phishing campaign, leveraging fake job offers to distribute malware and gather intelligence. This attack illustrates the increasing sophistication and precision of North Korean cyber operations, particularly by the hacker group Kimsuky, which aims to disrupt defense-related organizations and further its strategic goals.

  • North Korea's Kimsuky group employs sophisticated phishing tactics targeting defense contractors like Diehl Defence.

  • The German Federal Office for Information Security has observed a wider campaign affecting multiple organizations beyond Diehl Defence.

The U.S. Department of Justice has charged three Iranian hackers with conducting a 'hack-and-leak' campaign aimed at influencing the 2024 U.S. presidential election. The hackers, allegedly linked to Iran's Islamic Revolutionary Guard Corps, targeted individuals associated with various U.S. political campaigns, gaining unauthorized access to sensitive information to potentially disrupt the electoral process.

  • Three Iranian hackers were indicted for attempting to interfere with the U.S. 2024 presidential election.

  • The hackers targeted current and former U.S. officials and campaign members, stealing sensitive information.

Storm-0501, a ransomware threat actor, has evolved its tactics to target hybrid cloud environments, compromising sensitive data in sectors such as healthcare and government. Recent attacks utilize stolen credentials and focus on exploiting known vulnerabilities to gain access, followed by the deployment of ransomware like Embargo. These operations pose significant risks to organizations lacking proper security measures.

  • Storm-0501 targets hybrid cloud environments and has shifted tactics to exploit weak credentials.

  • The group has been using various ransomware strains, with a focus on deploying Embargo ransomware after gaining control.

Multiple critical vulnerabilities have been found in Progress Software's WhatsUp Gold network monitoring tool, requiring immediate upgrades to mitigate risks. Attackers have exploited previous vulnerabilities, successfully executing remote code via SQL injection, resulting in heightened security concerns for users operating outdated versions.

  • Multiple critical vulnerabilities require users to upgrade to a more secure version immediately to avoid exploitation.

  • Recent attacks have demonstrated the successful exploitation of previously patched vulnerabilities.

The US Justice Department has charged three Iranians over alleged involvement in a hack of former President Donald Trump's campaign emails, accusing them of targeting accounts associated with the Trump campaign and attempting to send hacked information to individuals associated with the Biden campaign.

  • The hackers allegedly accessed data and files from the accounts of Trump advisers, including internal documents used to vet Trump's potential running mate.

  • The indictment accuses the men of engaging in a 'wide-ranging hacking campaign' that targeted current and former US government officials, members of the media, NGOs, and individuals associated with US political campaigns.

Recent research reveals that fine-tuning models using harmful data can compromise their safety and alignment. This emergent risk, termed harmful fine-tuning, has garnered significant interest in the research community as it poses challenges to the development and deployment of large language models.

  • Harmful fine-tuning attacks can deeply affect the safety and reliability of AI models.

  • There is a call for further research in understanding and mitigating these risks associated with model fine-tuning.

The US is moving to eliminate mandatory password changes and complex password composition rules, aiming to enhance user security. Separately, three Iranian individuals have been indicted for hacking into Donald Trump’s presidential campaign, with US officials citing ongoing Iranian efforts to interfere in the upcoming 2024 elections. Additionally, Meta faced a significant fine for a data breach involving the mishandling of user passwords.

  • US to ban mandatory password changes and complex password requirements.

  • Three Iranian individuals indicted for hacking Trump campaign amid election interference concerns.

  • Meta fined over a data breach involving user passwords.

Teenagers are increasingly forming relationships with strangers online, which exposes them to significant risks of grooming and sexual exploitation. Reports of online exploitation of children have surged, with the National Center for Missing and Exploited Children recording over 186,000 incidents in 2023 alone. Despite some social media platforms implementing new safety measures, many teens continue to perceive online interactions as safe and normal.

  • The online relationships teens engage in are often with adult predators who exploit their vulnerabilities.

  • The increase in reported cases of online exploitation indicates a growing issue that requires urgent attention and protective measures.

Companies are required to comply with the SEC's cybersecurity rules which mandate the disclosure of significant incidents and the reporting of cybersecurity strategies in 8-K and 10-K filings. Organizations need to determine the materiality of incidents to ensure proper compliance with filing requirements and are encouraged to maintain transparency about their cybersecurity practices and governance.

  • The SEC's cybersecurity rules require timely disclosure of significant incidents.

  • Companies must develop clear strategies for reporting to comply with new SEC regulations.

SAML (Security Assertion Markup Language) is a protocol that enables Single Sign-On (SSO) for users across various applications, allowing them to log in with a single set of credentials. This technology enhances security for companies by enabling IT admins to manage access and user authentication from a centralized identity provider, streamlining user experiences while ensuring data protection. Despite its advantages, SAML can be complex to configure and may present security challenges if not implemented correctly.

  • SAML simplifies user authentication by allowing single sign-on across multiple applications.

  • It enhances security by enabling centralized access management, reducing the risk of password-related breaches.

  • Although beneficial, SAML configuration can be complicated and requires careful implementation to avoid security vulnerabilities.

U.S. ports are preparing for a potential shutdown as contract negotiations between dockworkers and the shipping industry break down, with a strike possible after the deadline for talks passes. The Biden administration is attempting to facilitate negotiations but will not intervene directly if a strike occurs, which could significantly impact the U.S. economy and supply chains, particularly as companies approach the busy fourth quarter. Shipping costs are expected to rise due to disruptions, while alternative routes may become congested quickly as the situation unfolds.

  • A strike by dockworkers could lead to a shutdown of major U.S. ports, significantly affecting the supply chain.

  • Economic estimates suggest a potential cost of $4.5 billion to $7.5 billion per week to the U.S. economy due to a strike.

[RSnake: More on this here. Woof. I hope you bought your Halloween, Thanksgiving and Christmas stuff from Amazon early this year. No, but seriously, we won’t really notice how bad this is for a while, and hopefully, it ends quickly. We do have stocks of a lot of common items warehoused locally. But not a long-term supply, especially from overseas. If there is one, the only upside is that it will encourage building more industry here at home.]

Stocks in Japan declined significantly following the election of Shigeru Ishiba as the new leader of the ruling party, who is a proponent of raising interest rates to fight inflation. This 'Ishiba Shock' reflects market reactions to potential shifts in economic policy after years of ultralow interest rates. The Bank of Japan is considering increasing rates further, contributing to uncertainty in the Japanese economy.

  • Japanese stocks fell sharply after the election of a new prime minister favoring higher interest rates.

  • The market reaction indicates significant uncertainty about future monetary policy amidst rising inflation.

The global warehouse automation market is projected to grow significantly due to the surge in e-commerce, expected to reach a compound annual growth rate of 15% between 2024 and 2030. Major players in the U.S., China, and Germany are increasingly adopting automation technologies to meet demand, especially in grocery distribution, which is becoming more labor-intensive.

  • The warehouse automation market is transforming due to the rise in e-commerce.

  • Companies like Kroger and Walmart are implementing robotic systems in fulfillment centers to improve efficiency.

[RSnake: What alternative do they have when employees keep asking for more and the cost of goods keeps going up at the same rate? Something has to give, because they cannot keep raising costs for the end users without going out of business.]

Iran has increased dairy prices by 20%, raising challenges for the public amid ongoing inflation and economic difficulties.

  • Iran has increased the price of raw milk, contributing to economic challenges for the public.

  • Many families are further strained by rising costs of essential goods, leading to increased poverty levels.

  • The price of raw milk has risen from 15,000 tomans to 18,000 tomans per kilogram, and reports indicate that overall dairy product prices could rise by about 25%.

[RSnake: Iran is in for a lot higher inflation than that if they keep shooting rockets at Israel.]

A significant wealth transfer estimated at $90 trillion is occurring as Baby Boomers and the Silent Generation pass on their fortunes to Millennials and Gen Z. Many entrepreneurs express concern over their heirs' preparedness to manage the family businesses and wealth, with some investing in curated events to facilitate discussions and education on inheritance and succession planning.

  • A $90 trillion wealth transfer is on the horizon as older generations pass assets to younger ones.

  • Entrepreneurs are concerned about their heirs' readiness to manage businesses and wealth.

[RSnake: They’re not fiscally aware of the upsides or downsides. They’ll spend whatever the state doesn’t take in inheritance taxes. It’ll be a windfall for the government, and they’ll blow it on random things we don’t want, let alone need. It feels like the 80s all over again. Here’s your reminder that inheritance tax is a tax on you, not your parents.]

China's leadership is implementing aggressive economic measures, aiming to stabilize an economy burdened with unsold homes and incomplete projects amounting to $4.1 trillion. These measures include significant rate cuts, loans for unsold homes, and a commitment to gradual increases in capital requirements to encourage investment and economic activity.

  • China is adopting a series of coordinated economic policy measures to regain control over its faltering economy.

  • The country's economic strategy emphasizes financial repression and domestic control to maneuver through increased complexities and economic challenges.

[RSnake: Good luck, China! I see one possible future: Start a war, default on debts, seize/nationalize whatever is left, and become like North Korea where your main income source is theft and war. There is a better way, but I don’t know if they are prepared for that, because it means a lot of throwing themselves on the sword to save the country from that fate.]

Nearly 33,000 unionized Boeing workers are on strike due to stalled negotiations over pay and pension issues, with the union rejecting Boeing's latest contract offer. The conflict has raised concerns about potential disruptions in Boeing's supply chain and credit rating, as the company seeks to address significant financial challenges while facing a large drop in its stock price this year.

  • 33,000 unionized workers at Boeing are in the third week of a strike.

  • Negotiations over pay increases and pension plan changes have broken down, with the union rejecting Boeing's latest proposal.

[RSnake: It would be funny if it weren’t sad. This company is on a ballistic path to zero. The worse it gets the more some PE firm will eyeball it. Reminds me of the target of acquisition in the movie “Wall Street” and not in a good way.]

Volkswagen AG has reduced its profitability forecast amid declining demand for passenger vehicles and a struggling German economy, with the company facing significant challenges in the transition to electric vehicles. Additionally, the slowdown in China's economy is affecting luxury vehicle sales for German automakers, as they grapple with increased competition and stringent EU emissions regulations.

  • Volkswagen AG has lowered its operating return on sales forecast from 7% to 5.6% due to poor market conditions.

  • The economic downturn in Europe, particularly in Germany, is impacting the automotive sector and could lead to job cuts in major companies.

The Biden administration has announced negotiated prices for certain drugs under the Inflation Reduction Act, which has led to legal challenges from pharmaceutical companies claiming the program imposes illegal price controls.

  • The administration's drug pricing negotiations are being legally challenged by pharmaceutical companies.

  • Estimates suggest a decline in new drug development due to the pressure from the pricing program.

  • The government is attempting to stabilize insurance premiums in response to the financial impact of new drug pricing rules.

[RSnake: This is a good political win, even though it’s a waste of time and likely illegal. Politics trumps legality, though. So… enjoy that nothing-burger you paid for with your taxes.]

Thanks so much for reading, and once again, please forward this newsletter to anyone you think should be reading it. It’s how the newsletter grows, how I know you love it, and encourages me to keep going. I’d really appreciate it!