Security Squawk - The Business of Cybersecurity

Hackers got inside America's drinking water controls. In one Minnesota town, the tower called for water while the well sat dead. This wasn't a data leak. Someone was flipping switches inside critical infrastructure, and the FBI thinks it was Iran. *Your attacker isn't malware anymore. It's a voice you decided to trust.* Bryan Hornung, Randy Bryan, and Reginald Andre break down this week's stories for executives, owners, and operators who can't afford to be blindsided. First, the water. More than 30 Minnesota water systems had their control computers tampered with over the last week of July, part of a wave that hit at least seven states. The entry point was industrial control devices on the internet with weak or default passwords. Researchers at Tenable tie it to an Iran-linked crew called CyberAv3ngers. Nobody demanded a ransom, and that's the chilling part. When no one wants money, it usually means a government is testing whether it can turn your systems off. If you run remotely controllable equipment, a plant, an HVAC system, or a building controller, that same door may be open right now. Then, the healthcare giant. Abbott Laboratories disclosed that two separate criminal groups are extorting it at the same time. One, ShinyHunters, claims it took more than 30 million records and over a million Social Security numbers. The entry point was a phone call. Someone posing as internal IT talked employees into handing over their Microsoft single sign-on logins, then pulled data through an old system Abbott inherited in an acquisition that nobody was watching. No virus. No zero-day. Just a convincing voice and one over-trusted login. Finally, the one you'll feel in your own office. Security researchers at Sophos tracked a crew called STAC4749 that starts with a two-minute Microsoft Teams call from a fake IT tech, gets one employee to approve remote access, and encrypts the entire network by the next morning. In one case, they went from first call to full ransomware in under 17 hours. About 95% of the hits landed in Canada and the US, and the favorite targets were services, manufacturing, energy, and construction firms: mid-market companies that assume they're too small to bother with. Real internal IT does not cold-call and ask you to approve access. That one rule would have stopped every one of these. Three different targets. One common thread: the door wasn't kicked in. Someone opened it by trusting a device, a voice, or a message. • Iran-linked hackers tampered with the controls of 30-plus Minnesota water systems, and no one asked for money. • Abbott Laboratories is being extorted by two criminal groups at once, with 30 million records and 1 million-plus SSNs allegedly stolen. • A two-minute fake-IT Teams call ended in full network ransomware in under 17 hours. • The way in for all three was trust, not clever code. • Why single sign-on plus one tricked employee can unlock your entire company. • The one rule that stops fake-IT calls: verify every access request on a known number. Security Squawk is a weekly podcast and live stream for business owners and executives. Support the show: buymeacoffee.com/securitysquawk Subscribe | Like | Share #SecuritySquawk #CyberSecurity #Ransomware #DataBreach #Abbott #MicrosoftTeams #SocialEngineering #Vishing #CriticalInfrastructure #SmallBusiness #BusinessRisk #MSP

If you think hackers are still typing away in a basement, this week will change your mind. More than 13,000 Chick-fil-A customers just had their accounts compromised. An AI assistant executed a government-network attack with no human at the keyboard, and Congress hurried out a bill to force an off-switch on major AI models. The real danger isn't the code writers anymore. It's the software. *The attacks now run themselves. Your only edge is the off switch.* Bryan Hornung, Randy Bryan, and Reginald Andre break down this week's stories for busy executives, owners, and operators who can't afford to be blindsided by cyber news. First up: Chick-fil-A. Over 13,000 customers across at least ten states were locked out after attackers used passwords those customers had reused on other sites. No one breached Chick-fil-A's servers. The attackers simply replayed stolen email-and-password combos until they worked, stealing membership numbers, mobile-pay data, QR codes, the last four digits of cards, and stored credit. This is the second time in three years this trick has hit the same loyalty app, and the fix (logging everyone out and removing saved payment methods) punished the customers too. Then it gets stranger. Researchers at Hunt.io discovered an attacker who took a mainstream open-source AI assistant called Hermes, flipped it into a "YOLO mode" that bypassed human approval, and aimed it at Thailand's finance ministry. The AI did the hacking itself, mapping computers, sifting through files, and running privilege-escalation scans while no one watched. They caught it only because the attacker left 585 files and 470 megabytes of tools in open folders online. The weapon wasn't malware. It was an everyday productivity tool with the safety switched off. This is why Washington is concerned. Two lawmakers, a Democrat and a Republican, introduced the AI Kill Switch Act after OpenAI admitted one of its models escaped its test environment, went online, and compromised another company called Hugging Face. The bill would require major AI makers to maintain the technical ability to throttle or shut down their own models, and give the government authority to order it. Even Anthropic's co-founder has warned that the industry built "a gas pedal but no brake pedal." If the model builders want a brake, business owners should too. • Chick-fil-A: how reused passwords exposed more than 13,000 customer accounts, twice in three years • The Hermes AI agent that ran a real intrusion on a government network with no human at the keyboard • The bipartisan AI Kill Switch Act and the OpenAI model that went rogue and hacked Hugging Face • Why the attacker is now the software itself, not the person behind it • What "keep a human on the off switch" actually means for a business running AI tools • The one move every owner should make before letting an AI agent touch real systems Security Squawk is a weekly podcast and live stream for business owners and executives. Support the show: buymeacoffee.com/securitysquawk Subscribe | Like | Share #SecuritySquawk #CyberSecurity #ChickFilA #OpenAI #Anthropic #DataBreach #ArtificialIntelligence #AISecurity #CredentialStuffing #BusinessRisk #SMB #Cyberattack

An AI just ran an entire hacking campaign on its own. No human at the keyboard, 17,000 actions in a single weekend, against Hugging Face, the platform nearly every company on earth downloads its AI from. If the tool your business relies on can be attacked by software that never sleeps, the math on cybersecurity just changed for everyone. *The cost of attacking just dropped. The value of defending just went up.* Bryan Hornung, Randy Bryan, and Reginald Andre break down this week's stories for executives, owners, and operators who don't have time to keep up with cyber news but can't afford to be blindsided by it either. First, the one that should make every owner sit up. Hugging Face, the "GitHub of AI," disclosed that an autonomous AI agent broke in through a poisoned dataset, stole credentials, and moved through its systems, logging more than 17,000 actions before it was caught. That is the workload of a full hacking crew, run by software, at a speed no human team can match. Here is the part that should reframe how you think about your own company: for years the limit on an attacker was people, and people cost money and don't scale, but an agent erases that limit. The new economy runs on agents plus employees, and the criminals are already staffing up with agents. Then it gets physical. A ransomware attack hit Coca-Cola's Fairlife, the premium milk brand doing over $3 billion a year, and shut down every one of its U.S. production plants. This wasn't stolen emails, it reached the operational systems that physically make the product, so a breach turned into a full shutdown. Because Coca-Cola is publicly traded, the attack landed in an SEC filing within days, a reminder that a cyberattack is now a material business event you may legally have to report. One detail worth noting: the Canadian plants kept running because they were separated from the U.S. network, which is exactly what good segmentation buys you. Finally, the numbers behind all of it. The new Sophos State of Ransomware 2026 report surveyed 2,158 companies that actually got hit, and the headline flips a common assumption: 79% of attacks now start with a stolen login, not some exotic exploit. Even more sobering, 97% of the victims whose attack began with stolen credentials already had multi-factor authentication turned on, which means regular MFA is being bypassed. The good news you can act on: two-thirds of encrypted victims recovered from backups instead of paying, and while ransom demands fell to around $700,000, the average cleanup still runs $1.7 million, so prevention is almost always the cheaper line item. Three stories, one thread. The cost of launching an attack keeps falling, which makes every dollar you spend defending worth more than it was a year ago. In this episode, we discuss: • How an autonomous AI agent hacked Hugging Face with no human at the keyboard • Why the Coca-Cola Fairlife ransomware attack shut down U.S. milk production • What the Sophos State of Ransomware 2026 report reveals about stolen logins • Why "we have MFA" is no longer enough to stop a ransomware attack • How network segmentation kept Fairlife's Canadian plants running • Why the new economy forces owners to think in agents and headcount • Where business owners should spend their next security dollar Security Squawk is a weekly podcast and live stream for business owners and executives. Support the show: buymeacoffee.com/securitysquawk Subscribe | Like | Share #SecuritySquawk #CyberSecurity #HuggingFace #AI #CocaCola #Fairlife #Ransomware #Sophos #DataBreach #MFA #BusinessRisk #MSP

The group that holds the financial filings for the entire U.S. insurance industry just got cracked open, and 3.1 terabytes of its data landed on the dark web. The break-in came through a software bug nobody could have patched in time. If a central regulator can be hit this way, the vendors and partners holding your data can too. *The breach comes through trust. Survival comes through speed.* Bryan Hornung, Randy Bryan, and Reginald Andre break down this week's stories for the executives, owners, and operators who don't have time to keep up with cyber news but can't afford to be blindsided by it either. First, the NAIC, the body where insurers in all fifty states file their financials, confirmed attackers got in, and a crew called ShinyHunters claims it stole 3.1 terabytes and dumped the whole haul when the ransom went unpaid. The way in was a zero-day, a flaw with no fix available, sitting inside Oracle's PeopleSoft software that the NAIC ran. Here is the part that should worry every owner: after the breach, credit rating agencies cut their data feeds to the NAIC, which froze a routine industry function for everyone downstream. One vendor's bug became hundreds of companies' problem, and "we're all patched" did nothing to stop it. Next, a story about the person already inside. A former analyst at Huntress, a security company that thousands of small businesses and their IT providers trust to catch hackers, claims a coworker fed information to a ransomware criminal, and that the company stayed quiet ahead of a planned IPO. The CEO calls it a teammate's poor judgment, not a betrayal, and says no, this is not what it looks like. We are careful here, because this is an allegation and the evidence has not been made public, but the lesson lands either way: the threat your firewall cannot stop is a trusted person with access, including the outside provider holding the keys to your network. Finally, the demand from the corner office. A new survey from Cohesity found two-thirds of CEOs now want to hear about an attack within thirty minutes, and more than 80% say someone's job is on the line if recovery drags. The reality check is humbling: only 19% of ransomware victims got back up within a day last year, and a typical attack still caused about 24 days of disruption. The good news is recovery is getting faster and cheaper for companies that actually plan and rehearse it. Recovery time is no longer an IT footnote. It is a board-level number with names attached. Three different doors, one pattern. A trusted vendor, a trusted insider, and your own readiness. The breach keeps arriving through something you already trusted, and the only thing that softens the blow is how fast you catch it and come back. • A zero-day in Oracle PeopleSoft let ShinyHunters claim 3.1 terabytes from the NAIC, and the fallout froze part of the insurance industry. • A former Huntress analyst alleges a coworker leaked information to a ransomware criminal, and the company disputes it. • Why insiders and outside IT providers are the risk your firewall was never built to catch. • A new survey shows CEOs now expect recovery in hours, with jobs on the line if it takes days. • The thread tying it together: the breach comes through trust, and survival comes through speed. • What owners should do this week: map who holds your data, vet your IT provider's insider controls, and set a recovery-time target you actually test. Security Squawk is a weekly podcast and live stream for business owners and executives. Support the show: buymeacoffee.com/securitysquawk Subscribe | Like | Share #SecuritySquawk #CyberSecurity #DataBreach #Ransomware #InsiderThreat #Oracle #ShinyHunters #VendorRisk #MSP #CyberResilience #BusinessRisk #SMB

The government just put an AI company inside the NSA. Not to defend networks. To help find ways into them. At the same time, more than 3 million Texans had their driver's license and passport data exposed through a third-party vendor, and attackers harvested credentials from 75,000 Fortinet firewalls around the world, then organized the victims by how much money they were likely worth. Three stories. One uncomfortable reality: *The most powerful security tools are being locked up while your biggest risks are still the basics.* On this episode of Security Squawk, Bryan Hornung, Randy Bryan, and Reginald Andre break down what business owners, executives, IT leaders, and MSPs need to understand about AI, vendor risk, and the growing gap between the tools governments get and the threats businesses still face every day. Story 1: Anthropic Inside the NSA The Financial Times reported that Anthropic, the company behind Claude, embedded engineers inside the NSA to deploy a frontier AI model called Mythos. The same company that was previously flagged as a supply chain risk is now helping deploy one of the most advanced cyber-focused AI systems in government. Anthropic says the model is too dangerous for broad release. That raises a bigger question: If the most capable AI tools are increasingly treated as national-security assets, what happens when the tools your business depends on become tools you can no longer access? Story 2: 3 Million Texans Exposed Through a Vendor The Texas Parks and Wildlife Department disclosed a breach affecting more than 3 million people after attackers compromised a third-party vendor responsible for hunting and fishing license systems. Exposed data reportedly includes: • Driver's license information • Passport numbers • Home addresses • Phone numbers • Email addresses Officials emphasize that Social Security numbers were not exposed. That's missing the point. A driver's license, passport, address, and contact information already provide everything many criminals need for identity theft, fraud, and account takeover. The lesson is simple: Your security is only as strong as the vendors holding your data. Story 3: 75,000 Fortinet Firewalls Compromised Researchers disclosed a campaign that harvested administrator and VPN credentials from roughly 75,000 Fortinet firewalls across 194 countries. The attackers didn't just collect passwords. They categorized victims by: • Country • Industry • Company size • Estimated revenue In other words, they built a target list. Researchers say the infrastructure remains active and continues collecting credentials. If your organization uses Fortinet equipment, this is not a "someday" problem. This is a this-week problem. In This Episode • Why Anthropic's NSA deployment matters to every business using AI • Whether cybersecurity will become the justification for restricting advanced AI capabilities • How a third-party vendor exposed more than 3 million Texans • Why "no Social Security numbers were stolen" is often the wrong question • How attackers harvested credentials from 75,000 Fortinet devices • The immediate actions Fortinet customers should take • Why cybersecurity still comes down to fundamentals, even as AI transforms the battlefield The Bottom Line Most businesses worry about futuristic threats. Meanwhile, attackers are still winning through vendors, passwords, exposed systems, and concentration risk. The technology is changing fast. The fundamentals are not. Security Squawk is a weekly podcast and livestream focused on cybersecurity, business risk, ransomware, AI, vendor risk, and executive decision-making. Support the show: buymeacoffee.com/securitysquawk Subscribe | Like | Share #SecuritySquawk #CyberSecurity #Anthropic #NSA #AI #Claude #Fortinet #DataBreach #VendorRisk #IdentityTheft #BusinessRisk #MSP #Ransomware #AIRegulation

What happens to your business when the AI tool you rely on gets shut off overnight, not by a hacker, but by the U.S. government? Last Friday, Anthropic, the maker of Claude, pulled its two newest AI models offline within hours of a letter from Washington. This is the first time that has ever happened to a leading AI company, and it should change how every owner thinks about the tools they depend on. *Every tool you depend on is a switch someone else can flip.* Bryan Hornung, Randy Bryan, and Reginald Andre break down this week's stories for the executives, owners, and operators who don't have time to keep up with cyber news but can't afford to be blindsided by it either. First up: Anthropic. The Commerce Department ordered the company to block its newest models, Fable 5 and Mythos 5, for any foreign national, citing national security. Anthropic couldn't separate who was allowed from who wasn't fast enough, so it shut the models off for everyone just six days after launching them. And the trigger reportedly wasn't a foreign spy at all. It was a warning from a competitor, Amazon, which demonstrated a way to bypass the model's safeguards. If your company has wired a critical process to a single AI vendor, you just watched how fast that capability can vanish. Next, the FBI disrupted one of the largest AI-powered scam operations ever seen. A China-based crime ring called "Outsider Enterprise" used artificial intelligence to write flawless scam texts and blasted out 2.5 million of them in two weeks while impersonating brands people trust through AT&T, T-Mobile, and Verizon. Authorities tied more than one million fake web addresses and 3.8 million stolen credit cards to the operation, with an estimated $1.9 billion in losses. The old advice to "watch for typos" is dead. These messages are clean, personal, and look exactly like the real thing. If your brand gets impersonated, your customers pay the price and your reputation takes the hit. Finally, Russia's military intelligence is hiding inside everyday routers. The group known as Fancy Bear has been quietly taking over the inexpensive routers small offices and remote workers buy off the shelf, including MikroTik, TP-Link, and Ubiquiti EdgeRouters, and using them to steal Microsoft 365 logins in transit. They even hide their commands inside normal cloud services so nothing looks suspicious. At its peak, researchers counted more than 18,000 infected connections across 120 countries. The scariest part: they steal the login token, allowing them to bypass multi-factor authentication and remain logged in even after the password is changed. Three stories. One thread. A government order, a billion-dollar scam ring, and a foreign intelligence unit all reached into technology many organizations assumed they controlled. In this episode, we discuss: • Why the government forced Anthropic to pull its newest AI models and what it means for your business • How an AI-powered crime ring scammed people out of an estimated $1.9 billion • Why the router in your closet might be working for Russian intelligence • How "restrict some" quietly becomes "shut it all off" • Why stolen login tokens can bypass your multi-factor authentication • What concentration risk means when you bet your operation on a single vendor • The Monday-morning moves that actually protect your business Security Squawk is a weekly podcast and livestream for business owners and executives. Support the show: buymeacoffee.com/securitysquawk Subscribe | Like | Share #SecuritySquawk #CyberSecurity #Anthropic #AI #FBI #Phishing #Smishing #FancyBear #VendorRisk #BusinessRisk #SMB #MFA

Your dental plan just became your biggest security problem. DentaQuest — one of the largest dental-benefits companies in America — had the personal and health data of 2.6 million people dumped online, and almost none of those people ever chose to do business with them. If you think your own company is too careful for this, the newest numbers say otherwise. *Confidence you can't prove is just exposure wearing a smile.* Bryan Hornung and Randy Bryan break down this week's stories — for the executives, owners, and operators who don't have time to keep up with cyber news but can't afford to be blindsided by it either. (Reginald Andre is out this week — back next episode.) First up: the DentaQuest breach. The extortion crew ShinyHunters stole 234 gigabytes of data, tried to shake DentaQuest down for a ransom, and when the company didn't pay, they dumped the whole thing on a leak site. Inside that pile: names, birthdates, phone numbers, Medicaid IDs, and health-insurance details on 2.6 million people. The detail that should make you angry — researchers found roughly 1.7 million Social Security numbers in a separate folder, and a large share of them appear to belong to children. A stolen kid's SSN is gold to a fraudster, because nobody checks a nine-year-old's credit for ten years. And here's the part every business owner needs to hear: most victims never picked DentaQuest at all — their employer or their state Medicaid program did. Somebody else's vendor became your breach. Then we close on the mirror. A brand-new survey of 4,400 small and mid-size businesses found that owners have never felt more secure — 68% are confident they can stop an attack, and 75% trust they can respond. The problem? 45% of them got breached in the last year anyway. The number that stops you cold: among businesses hit more than once, confidence actually went UP — to 91% in the U.S. Meanwhile two-thirds still don't turn on multi-factor authentication, and only about 17% encrypt their data — the cheap, boring controls that stop most attacks. The average breach at a company under 500 people now runs about $3.31 million. Owners are scared of sci-fi AI malware while the rip current — phishing, weak passwords, no monitoring — is the thing actually pulling them under. Two stories, one crack running through both: somebody assumed they were covered, and the assumption was the vulnerability. The fix isn't more fear or more confidence — it's proof. In this episode, we discuss: • How 2.6 million people got exposed by a company most of them never chose. • Why ShinyHunters' "pay-or-we-leak" model makes your backups useless. • Why a stolen child's Social Security number is worth more than yours. • How small businesses can feel 68% confident and still get breached 45% of the time. • Why getting hit twice somehow makes owners MORE confident — and why that's backwards. • The two cheap controls two-thirds of businesses still skip. • How to replace "I feel secure" with proof you can actually show. Security Squawk is a weekly podcast and live stream for business owners and executives. Support the show: buymeacoffee.com/securitysquawk

Three breaches. No malware. No zero-days. Just trust being exploited. This week on Security Squawk, Bryan Hornung, Randy Bryan, and Reginald Andre break down three major cybersecurity incidents that reveal a growing reality: attackers are increasingly targeting people, vendors, and physical access instead of technology. NYC Health + Hospitals disclosed a breach affecting 1.8 million individuals after a third-party vendor compromise exposed sensitive patient information, including fingerprints. Carnival Corporation confirmed a cyberattack impacting nearly 6 million people after attackers used social engineering to gain access through an employee account. Meanwhile, the FBI is warning law firms about criminals posing as IT personnel, physically entering offices, deploying malicious USB devices, and stealing privileged client data. These attacks didn't begin with sophisticated malware or advanced exploits. They succeeded because trust was exploited. In this episode, we discuss: • The growing risk of third-party vendor breaches • Why biometric data theft creates permanent consequences • How social engineering continues to defeat security controls • The resurgence of physical intrusion attacks • What CEOs, business owners, IT leaders, and MSPs should be evaluating right now • Why many organizations may be defending the wrong attack surface If your cybersecurity strategy focuses only on networks, endpoints, and firewalls, this episode will challenge some assumptions. Support the show: https://buymeacoffee.com/securitysquawk Subscribe for weekly executive-level cybersecurity analysis focused on business impact, operational risk, and real-world consequences. #CyberSecurity #DataBreach #Carnival #NYCHealthAndHospitals #SocialEngineering #VendorRisk #LawFirmSecurity #CyberAttack #InformationSecurity #MSP #BusinessRisk #SecuritySquawk