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  • Defense Business Brief: Defense cyber champs?; HASC mark; Navy IW

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    Cyber threats are an increasingly persistent national security concern supercharged by AI—and so is the industry built to help hospitals, financial institutions, and the Pentagon secure their networks. But unlike the defense industrial base overall, there’s no clear prime. Could that change with venture capital?

    Joe Lin, co-founder and CEO of the VC-backed cyber firm Twenty, said private capital isn’t pouring into cybersecurity at the same rate as other defense tech areas in part because it’s unclear whether “true winners” will emerge. 

    ​​”This was an ecosystem [that was] very, very hard for outsiders to come in and join. So that barrier has gone down. That's the good news,” Lin said during Second Front’s Offset Symposium earlier this month. “I think the question is still out as to whether or not a company that is able to take a lot of money invested into private R&D is able to actually be successful in the space where, historically, there's been a lot of peanut-butter spreading in terms of awards—funding awards, contract awards—and whether or not there will actually be true winners that will come out of this.”

    Make it work, make it malleable

    The winners will make versatile technology that works as the customer needs, said Brian Carbaugh, ex-CIA turned co-founder and CEO of Andesite, a VC-backed defensive cyber data analytics startup. 

    “There is a tremendous amount of noise. There are a lot of marketing dollars being spent,” Carbaugh told Defense One. “From a customer, from a buyer standpoint, you can see some elements of fatigue because they're having to sift through just so many vendors and pitches that oftentimes don't materialize.” 

    Buyers’ expectations for cyber tools and services are extremely high, Carbaugh said, and  companies must deliver products that can “do all the things, all the time. Because, I think, what most of us in this space thought would be sort of innovative in terms of features and functionality—increasingly it's becoming table stakes.”

    That’s not a warning shot for nascent companies, it’s an opportunity, he said. 

    “The warning lights are blinking red in a lot of these [security] operations centers. The work that CISOs and their teams put in are, it's nothing short of heroic on a daily basis,” Carbaugh said. There’s technology now that can "optimize” and level up analysts “by wrapping this tech around them” and are auditable with a “very, very high security compliance.”

    But as cyber threats and industry grow, the Pentagon may need a more tightly coupled relationship with the cyber industrial base. 

    “There's an assortment of different companies that provide tools or services that are the ones that build and operate the domain on which we fight. They build our battlefield. We need to start partnering together so that they don't build the battlefield and we operate on it in a very disjointed way,” said Katie Sutton, the Pentagon’s cyber policy chief, during the symposium. 

    That relationship must also leave room for tweaks and changes to cyber tools, said Maria Barrett, former commanding general of U.S. Army Cyber Command.

    “It's also got to be about the vendor being willing to work with us, and right side the operator, or whoever the user is, to tweak it. Because, I think, that quality of adaptability by the industry partner and the willingness to be able to do that and deliver it quickly…that's the new normal,” she said on the panel.

    Welcome

    You’ve reached the Defense Business Brief, where we dig into what the Pentagon buys, who they’re buying from, and why. Send along your tips, feedback, and song recommendations to lwilliams@defenseone.com. Check out the Defense Business Brief archive here, and tell your friends to subscribe!

    HASC’s NDAA mark. The House Armed Services Committee dropped its draft of the annual defense policy bill this week. Two things that caught my eye are related to supply chains: 

    • One provision seeks to boost the solid rocket motor industrial base by creating a Pentagon working group that “would require that certain covered munitions have more than one solid rocket motor supplier.” 
    • Lawmakers urge the defense secretary to “obligate and expend funding that has been appropriated by Congress for this explicit effort” 
    • They also worry about the Pentagon’s use of direct equity investments in an established industry, such as solid rocket motors. “The committee also remains concerned with the sole use of equity investments with regards to expanding solid rocket motor industrial base when there are other tools that could be used in a more expeditious manner given the importance of increasing munition production," the draft said. 
    • Another provision would require the Pentagon's industrial policy shop create a “Defense Supply Chain Risk and Response Program” to “develop a common framework across the Department of Defense and with contractors to enable a holistic and coordinated approach for identifying managing risks,” including cyber vulnerabilities, foreign investments, financial distress, and supply chain disruptions. 

    Around the horn 

    • The Navy has created new leadership roles for information warfare: Jennifer Edgin has been appointed assistant deputy chief of naval operations for IW requirements and capabilities; and Rear Adm. Susan Bryer Joyner as IW director. 
    • Deloitte landed a $249 million contract to support implementation of the Army’s organic industrial base modernization plan. It was the only bidder. 
    • The Justice Department arrested two defense contractors for bribery and fraud related to Army Pacific Command’s innovation hub in Hawaii. 
    • Someone robbed the SEC.
    • SpaceX just landed a more-than-$2 billion satellite communications contract. 
    • One more cyber thing: The Pentagon is updating its three-year-old cybersecurity strategy and implementation plan, which cyber policy chief Sutton said will “set a very definitive vision of where we need to go” with “a very detailed action plan” for attacking persistent challenges, such as building a skilled workforce and making sure cyber operators have the most current tools. 
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  • House draft of defense policy bill leaves some of Trump admin’s top priorities unfunded

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    An initial draft of the annual defense policy bill shows the House is still banking on billions of yet-to-be-approved funds for the Trump administration’s top military priorities.

    The HASC chairman’s mark of the 2027 National Defense Authorization Act released on Tuesday detailed $1.15 trillion in baseline defense spending. But the Pentagon has asked for $1.5 trillion. To fully fund administration efforts like Golden Dome, shipbuilding, and a crucial munitions build-up, Congress would have to approve an additional $350 billion. But one senior committee staffer said HASC Chairman Mike Rogers, R-Ala., is confident Congress will approve those reconciliation funds.

    “I think you know the chairman is, as I said before, relatively confident that we'll be able to achieve reconciliation this year,” the staffer told reporters Tuesday. “But in the event we're not, we will have those discussions with our appropriators and with the administration later in the year about how we cover those priority items, and munitions is at the very top of that list.”

    The Pentagon’s $350 billion reconciliation funding request includes $47 billion to “accelerate the delivery and drive” of munitions investment, roughly $17 billion for Golden Dome, and $7 billion for shipbuilding efforts. 

    Rogers told attendees at Space Symposium last month that the House would “try” to fund those priorities through reconciliation—a funding process for “mandatory” spending that only requires a simple majority to pass, unlike annual discretionary budget appropriations.

    Despite last year’s reconciliation squabbles and the large amount of defense priorities tied to yet-to-be-approved funding, the committee did not reconfigure the discretionary budget to account for the possibility of the additional measure failing.

    “We did not secret squirrel money away, we did not pad lines in the discretionary to account for those things that are in the mandatory column,” the senior staffer said.

    The chairman’s mark of the House NDAA has 646 total items in it, 362 bill language amendments, and 284 reporting requirements, the staffer said. It’s the initial agreement between Rogers and Rep. Adam Smith, D-Wash. HASC members plan to markup and add more amendments to the bill on June 4, according to the committee’s website.

    “The chairman would obviously like to see us pursue a reconciliation bill that addresses that mandatory column, and so we are going to move ahead with the assumption that at some point the House and the Senate will attempt to do that,” one senior staffer said. “We will make a later determination about how successful that attempt is and address a reconciliation between those two columns at a later time.”

    White House budget projections predict that baseline defense spending will increase from $1.15 trillion to $1.36 trillion through 2036. They do not anticipate asking for reconciliation funding past fiscal year 2027.

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  • Can Big Data Predict Market Movements Accurately?

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    Can Big Data predict markets? Learn how AI, investor behavior, and digital signals shape modern forecasting across stocks and crypto trends.

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  • Iran’s hackers are coordinating more closely: Israeli cyber leader

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    Iran’s state-backed hackers are sharing more cyber tools and using AI to polish disinformation and recruitment messages since the U.S. and Israel launched their war on the country, Israel’s top cyberdefense official said in an interview with Nextgov.

    Yossi Karadi, who leads Israel’s National Cyber Directorate, also said on Tuesday that he is pressing major AI labs for controlled access to powerful models like Anthropic’s Mythos, arguing that governments need the same tools attackers are seeking to adopt.

    In the last year, Tehran's hacking units have increasingly “begun to talk to each other, and then collaborate with each other, and then even sometimes exchange information” among themselves, he said. “Of course, when they work together, they can work more efficiently and better.”

    Since the war began in February, Iran has sent hundreds of thousands of text messages to Israelis as part of a deception and influence campaign, he said. 

    “In some cases, they’d send messages like, ‘Don’t go to the bomb shelters because they are closed,’” Karadi said. Other messages sought to recruit Israelis for intelligence-sharing.

    For a while, those messaging campaigns were in “very bad Hebrew, so you understand, ‘okay, it’s nonsense,’” Karadi said. But more recently, AI has helped Tehran improve their messages. 

    In March, Israel said it bombed a key Iranian cyberwarfare operation center. Asked how that attack and similar ones affected Iran's hacking, Karadi replied that cyberactivity largely fluctuated according to the intensity of the conflict. 

    When bombing campaigns against Iran intensified, hacking activity tended to decrease because it was harder for state operatives to access physical assets like computers and other equipment needed for cyberattacks, he said. When strikes slowed, state hacking groups would have more room to reorganize and collaborate again.

    Karadi said there is little expectation that cyber activity from either side will stop even if a peace agreement is agreed, because parties can deny involvement in a cyberattack, unlike a physical strike with missiles or bombs. 

    “There is no ceasefire in cyber,” he said. “You cannot force any agreement on cyber.” 

    Over the last few months, pro-Iran hackers have compromised a swath of smaller Israeli organizations and a handful of American targets. They have targeted U.S. industrial control systems, federal officials said early last month. One group, likely state-affiliated, also claimed to have compromised medical-technology giant Stryker. And just last week, researchers said Iran-linked hackers had deployed a slew of cyberespionage techniques against the U.S. and Middle East nations including Israel and the UAE.

    Asked if the cybersecurity community underestimated the strength of Iran’s hacking ecosystem, Karadi said he would only speak for Israel, and asserted they “obviously did not underestimate” Tehran. Since the 12-Day War last year, “we were in an 100%-alert situation, and we have been preparing ourselves for high-scale cyber war,” he said. 

    The remarks provide a window into how Israeli officials believe Iran’s cyber apparatus has adapted under wartime pressure and amid negotiations now underway between the U.S. and Tehran that could end the war, which began in late February.

    Karadi conducted the interview as part of a visit to Washington this week, where he said he has planned meetings with the FBI, the Cybersecurity and Infrastructure Security Agency, U.S. Cyber Command and representatives from industry.

    In those meetings, he said, officials have been discussing advanced cyber-focused AI models like Anthropic’s Mythos, which have quickly become central to global cyber policy talks. Asked whether Israeli institutions have been given access to those systems, he said the effort is a work in progress.

    “I haven’t succeeded in it now, but hopefully I will,” he said, adding that he is trying to access such models to scan Israeli government organizations for vulnerabilities. He declined to name specific AI companies he is engaging with.

    In early April, Anthropic launched Project Glasswing, an initiative with major companies designed to secure critical software across the globe using its Mythos model. It’s been withheld from public release amid concerns over its highly skilled hacking capabilities. About a month later, OpenAI unveiled GPT-5.5-Cyber, a similarly advanced model that was also reserved for verified organizations to prevent the acceleration of offensive cyber tools.

    The White House and the federal government swiftly responded and worked to craft an executive order focused on AI and cybersecurity, but its signing was postponed last week amid overregulation concerns from industry.

    Representing a government cyberdefense organization, Karadi said such models worry him.

     “When you give [an attacker] a new tool, he needs to only use it at one time and one place. But I need to implement this tool at all the places and all the time,” he said. 

    He expects more of these models to proliferate in the coming months, and he considers them to now be the “main threat” in the cybersecurity world.

    “I think that our world is getting more and more digital, AI-based and cloud-based,” he said. “It will take us to a permanent state of cyber warfare, some of the time against enemies that you know. But most of the time — against ghosts.”

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  • Iran’s Nimbus Manticore Used Trojanized Zoom Installers Against US Firms

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    Iran’s Nimbus Manticore hackers used trojanized Zoom installers to deploy malware against US firms during a wider IRGC linked cyber campaign.

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  • Grandoreiro Malware and BTMOB RAT Campaigns Target Windows and Android Users

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    Latin America and Europe become the target of two banking trojan campaigns that are designed to infect Windows and Android devices with Grandoreiro and BTMOB malware, respectively. That’s according to new findings from WatchGuard and ESET, which have observed the two malware families being used to single out companies in Spain, Portugal, and Mexico, as well as mobile users in Brazil. The

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  • Malicious npm Package Stole Files From Claude AI User Directory via GitHub

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    Cybersecurity researchers have discovered a new malicious package on the npm registry that comes with information stealing capabilities. According to OX Security, the package, named “mouse5212-super-formatter,” is designed to upload files from “/mnt/user-data,” a dedicated directory used by Anthropic’s Claude artificial intelligence (AI) tool to handle uploads and outputs in the background. The

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  • How Can MSSPs Scale Threat Detection Without Burning Out Their Analysts?

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    Disclosure: This article was provided by ANY.RUN. The information and analysis presented are based on their research and findings.

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  • Link11 is fully committed to Europe and is opening a Customer Excellence Hub in Lisbon

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    Frankfurt am Main, Germany, May 27th, 2026, CyberNewswire Link11, a European provider of cloud-based IT security solutions specializing in network and web application security, is strengthening its commitment to digital sovereignty by opening a ‘Technical Customer Excellence Hub’ in Lisbon. This move sees the company relocating its technical customer service operations to the European Union. […]

    The post Link11 is fully committed to Europe and is opening a Customer Excellence Hub in Lisbon appeared first on GBHackers Security | #1 Globally Trusted Cyber Security News Platform.

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  • BadHost Vulnerability Exposes Sensitive AI Agent Server Endpoints to Attackers

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    A critical vulnerability, “BadHost” (CVE-2026-48710), has been identified in the Starlette web framework, exposing thousands of AI-powered applications and API services to potential attacks. The flaw, discovered by X41 D-Sec during an OSTIF-sponsored security audit, allows attackers to manipulate how servers process incoming requests, potentially bypassing authentication controls and gaining unauthorized access to sensitive endpoints. […]

    The post BadHost Vulnerability Exposes Sensitive AI Agent Server Endpoints to Attackers appeared first on GBHackers Security | #1 Globally Trusted Cyber Security News Platform.

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