LulzSec reappears, post-Sabu, to deface Peruvian government sites in protest against Peru's use of Level 3 hosting services (in LulzSec's mind an NSA cat's paw). Israel's Knesset successfully defends itself from cyber attack (possibly one inspired by Iran).
Spam-distributed malware, attacks on game makers, and spoof Twitter accounts highlight current threats. Researchers demonstrate a vulnerability in Verizon network extenders (Verizon says it's closed this particular hole). TrendMicro reports finding an unusual attack in the wild: a file infector with an unusual information theft routine.
InformationWeek wonders at the patch cycle, and asks why software vendors can't be as quick as Pwn2Own.
BAE sees coming consolidation in the cyber sector driven by increasingly stringent and sophisticated customer requirements—less capable firms will disappear; niche companies will be acquired.
The PRISM affair continues to give US businesses headaches. LulzSecPeru's animus against Level 3 is a minor but telling episode. Silicon Valley generally is worried about perceptions that it's too close to NSA. There are signs of a shifting labor market as well—US cyber talent may be shying away from Government employment. (Contrast Europe, where security services see an apparently PRISM-driven upswing in job applicants.)
The leaks continue to have diplomatic ramifications. Observers see them as a shot-in-the-arm for (US-opposed) efforts at national Internet controls. Germany's government receives criticism as Bild reports on its alleged cooperation with NSA.
None of this has softened the US line toward Chinese cyber operations, as the House considers extending security-motivated restrictions on acquisition of Chinese hardware.