China has demanded that Canada release Huawei CFO Meng from custody (Telegraph), but in custody she seems likely to remain. The US is investigating not only violation of sanctions imposed on Iran, but financial crimes as well (CRN). Huawei remains under suspicion in all Five Eyes of posing a security risk (CNBC). The Australian Signals Directorate warns that Huawei’s devices could pose a threat to water and power infrastructure were they to be used in 5G networks (Wall Street Journal). Nor is such suspicion confined to the Five Eyes: Japan has decided to exclude both Huawei and ZTE from government contracts (Reuters).
The arrest is taken as a strong signal of US determination to enforce sanctions (Wall Street Journal). It’s also believed likely to sharpen the ongoing Sino-American trade war, with IT market leadership at stake (Bloomberg). Observers wonder whether China will retaliate for US measures against Huawei and ZTE, and Russia for Kaspersky’s exclusion from US Government systems, with their own legal or extralegal action against US companies (Washington Post). A large Chinese information operations campaign seems already to form part of a response (Guardian).
Proofpoint warns of an emerging threat to US retailers. "TA505," the criminal group behind Locky and Dridex, uses highly "personalized" attachments in a phishing campaign that spreads Remote Manipulator System and FlawedAmmyy malware.
Kaspersky describes a crime wave that's cost Eastern European bank millions. ZDNet calls it a "Hollywood hack:" the criminals attach small, cheap hardware to a bank's networks then remotely drain funds.
