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Uncertain Economy Takes Toll on Cybersecurity Teams

By Kim S. Nash

 

Welcome back. From cyber chiefs to front-line workers, security pros are grappling with tighter budgets, slower wage growth and stalled hiring plans, reports WSJ Pro's Angus Loten. 

Corporate security budgets, which boomed after the Covid-19 pandemic, grew by an average 4% this year, a five-year low, according to a survey by Artico Search and cybersecurity firm IANS. CISOs saw their smallest raises in years. Read our full story.

More news:

  • U.S. nationals helped North Korean tech workers in employment scams
  • South Korea, U.S. cyber drills this week
  • Payments firm Checkout.com thumbs nose at hackers
  • Princeton University, Logitech disclose separate breaches
  • And more
 

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More Cyber News

PHOTO: SEONGJOON CHO/BLOOMBERG

U.S. and South Korea's joint cybersecurity exercises in Maryland this week aim to practice information sharing during simulated cyberattacks and overall readiness for hacking by adversaries the two nations have in common, officials said. Last year's inaugural drill was conducted at South Korea's Cyber Operation Command center. (Yonhap News Agency)

A hack at a data-storage provider exposed information that payments firm Checkout.com had retained about current and former customers. The incident affected less than 25% of current clients, said Checkout.com, which supplies tech to IKEA, Sony, Alibaba, Uber Eats and many other retailers and other companies. Checkout.com didn't name those affected or the storage provider.

  • No ransom; donation instead: Hacking group ShinyHunters demanded a ransom, which the company said it refused to pay and instead would donate the requested sum to Carnegie Mellon University and the University of Oxford Cyber Security Center for cybercrime research. (Bleeping Computer)
  • "The episode occurred when threat actors gained access to this third party legacy system which was not decommissioned properly. This was our mistake, and we take full responsibility," said Mariano Albera, Checkout.com's chief technology officer.

Big-time cost: Jaguar Land Rover said Friday it swung to a quarterly loss of almost $750 million after stopping its assembly lines in September to manage a debilitating hack. In the same period last year JLR made roughly $375 million in profit. The reversal reflects a dramatic decline in revenue as well as more than $250 million in one-time costs associated with the incident.

  • “It is honestly like nothing else I’ve experienced,” said Chief Financial Officer Richard Molyneux on a call with reporters. “We went through a really massive learning curve.” (WSJ)

Patch or disconnect: Federal agencies have one week to patch a flaw in certain Fortinet firewall technology, the Cybersecurity and Infrastructure Security Agency said Friday. If immediate fixes aren't possible, the agencies should disable internet connections for affected devices, CISA said.  

Mouse-maker Logitech International said a recent hack at a software company exposed "limited" information about employees and consumers, and data related to customers and suppliers. Logitech didn't name the software maker or say how many people were affected by the breach. It expects its cyber insurance policy to cover incident costs. 

Four U.S. nationals and one Ukrainian pleaded guilty to helping fraudster North Korean tech workers get jobs at dozens of American companies. Three of the U.S. people were paid to the North Koreans use their identities and ran laptops in their homes to facilitate the scheme, the Justice Department said. (TechCrunch)

  • Further reading: the Justice Department's announcement.

Princeton University said hackers accessed a database of information about students, families, alumni and faculty, among others, on Nov. 10, for less than 24 hours. The database mainly contains contact information and donation details, Princeton said in a notice on Saturday.

 
Alt text.

China-Backed Hackers Use Anthropic AI to Automate Cyberattacks

AI startup Anthropic said China’s state-sponsored hackers used its tools to automate cyberattacks against corporations and governments. WSJ’s Sam Schechner reports on the inflection point for hackers’ use of AI.

Listen Now
 

WSJ Pro Cyber Index

The Cyber Index sunk 4.2% for the past week, unable to overcome losses in stock price of more than 22% by Lumen Technologies and nearly 11% by Cloudflare. Cisco Systems, the largest cybersecurity provider by market cap, posted the biggest gain. Its share price grew 9%. 

—Jon Leckie

 

About Us

The WSJ Pro Cybersecurity team is Deputy Bureau Chief Kim S. Nash and reporters Angus Loten and James Rundle. Follow us on X @WSJCyber. Reach the team by replying to any newsletter you receive or by emailing Kim at kim.nash@wsj.com.

 
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