This week’s Cyber Pulse Mid-Week Briefings cover Australia’s new Cyber Security Bill, rising ransomware claims, Zscaler's AI-driven platform growth, and cyber threats from East Asia, including Chinese influence operations, North Korean tech theft, and costly global data breach claims.
Visa boosts AI fraud detection with Featurespace acquisition, lifting its stock; Experian expands Latin American security by acquiring ClearSale; Booz Allen shares cyber expertise at Singapore International Cyber Week; Torq secures $70M for global growth; SentinelOne and Okta shine in top awards.
With OpenAI’s shift to a $157 billion for-profit model, CEO Sam Altman maintains its mission to "benefit humanity." However, as investors seek high returns and Altman stands to gain equity, doubts arise over who truly benefits from OpenAI’s growth—society or its shareholders?
The Potential and Pitfalls of Expanding AUKUS with Japan
The Australian-American-UK trilateral defence strategy, known as AUKUS, is at a pivotal juncture, with discussions of potentially incorporating Japan as a fourth member.
The Strategic and Security Implications of Including Japan
The Australian-American-UK trilateral defence strategy, known as AUKUS, is at a pivotal juncture, with discussions of potentially incorporating Japan as a fourth member. This expansion aims to enhance critical technology defences and cyber capabilities across the Indo-Pacific region. However, several challenges loom over this ambitious proposal, especially with the political landscape in the United States and the inherent complexities of integrating new partners.
AUKUS was established in 2021 with a primary focus on countering China's growing influence in the Pacific. The initial "pillar" of the pact involves cooperation to provide Australia with nuclear-powered submarines, a significant strategic move. The possibility of other countries joining a second pillar to develop high-tech weaponry and cyber defences has been floated, but it faces substantial hurdles.
Diplomatic and Legislative Challenges
Paul Myler, deputy head of mission at Australia's embassy in Washington, highlighted the intricacies of expanding AUKUS. "Adding additional partners to that process is complicated," Myler remarked during an event hosted by the Atlantic Council think tank in Washington.
He emphasised that while Japan has shown political will and alignment in defence capabilities, integrating them into AUKUS is not straightforward. "AUKUS is reaching out to Japan, to find some collaboration that we can do out there," he clarified, indicating that a formal inclusion might not be imminent.
One significant barrier is the U.S. Congress's stance on expanding the pact. Myler pointed out the nearly inconceivable achievement of reforming U.S. export control restrictions over 40 years, stressing that adding new partners could complicate this delicate balance. "I don't think Congress would consider it (AUKUS) open for expansion, but AUKUS partners can certainly reach out and do collaboration out there," he said.
Japan's Potential Contributions and Risks
Japan's technological advancements and strategic positioning could be a boon for the AUKUS alliance. Their early warning systems across the shared China seas and insights into nuclear systems could significantly bolster the alliance's defensive and offensive capabilities. Moreover, Japan's involvement could accelerate the development of critical technology defences, benefiting not just Australia but the entire Indo-Pacific alliance.
However, concerns about Japan's cyber and information security vulnerabilities persist. Experts caution that integrating Japan without addressing these vulnerabilities could expose the alliance to significant risks. Additionally, strict U.S. restrictions on sharing technology pose another hurdle. Both Canberra and London worry that expanding membership too quickly could bog down the progress AUKUS has made.
Looking Ahead
The U.S. State Department's recent plan to reduce licensing requirements for transferring military gear and sensitive technology among AUKUS partners is a step forward. The expected finalisation of trade exemptions for AUKUS within the next 120 days marks a critical development. Yet, the broader question of Japan's formal inclusion remains unresolved.
In the backdrop of these discussions, the potential shift in the U.S. political landscape adds another layer of uncertainty. With upcoming elections and the possibility of a change from a Democratic to a Republican administration, the political will to expand AUKUS could wane.
The current perspective is that while the idea of Japan joining AUKUS holds strategic promise, it is fraught with diplomatic, legislative, and security challenges. The future of AUKUS expansion will depend on careful navigation of these complexities and the evolving political dynamics in the U.S. and beyond.
Governor Gavin Newsom vetoed Senate Bill 1047, which would have enforced strict safety measures for AI models with over $100M in funding. He argued the bill’s focus was too broad and advocated for more targeted AI regulations that address risks from smaller, less costly systems.
Europe faces a critical choice: embrace AI innovation or enforce restrictive regulations? Fragmented rules risk leaving Europe behind in AI advancements and economic growth. Clear, unified policies are key to keeping Europe competitive in the global AI race.
The UAE is stepping up its AI game, with Sheikh Mohamed bin Zayed al-Nahyan meeting US President Joe Biden to boost AI cooperation. As the UAE shifts from oil to tech, it's deepening ties with US firms and tackling hurdles like AI chip restrictions, aiming to lead the global AI race.
Telegram is tightening its policies, sharing user IPs and phone numbers of criminals with authorities. As hybrid warfare blends state-backed hacking with cybercrime, Telegram faces pressure to curb illegal activities exploiting its encryption features.