The FCC Wants to Eliminate Burner Phones

A proposed FCC rule would kill burner phones: phones whose accounts are not attached to a particular person.

The FCC plans to do this by legally forcing the country’s telecoms to store a wealth of personal information about essentially all phone customers, including a government issued identification number and their physical address, alarming privacy advocates and civil rights activists who compare the measures to those from authoritarian countries where it can be difficult to buy a mobile phone plan without giving up your identity.

The proposed change would drastically shake up how people obtain phone plans in the U.S., and have all sorts of privacy and cybersecurity knock-on effects. The FCC is proposing the data collection partly as a way to combat scammers, with telecoms being required to collect other information on business and foreign customers like the intended use case of their bulk phone plan purchase and their IP address. But the changes would mean telecoms collect data on all new and renewing customers, and the FCC provides a long list of other things that the collected data could help authorities with.

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Bernie Sanders’ AI Sovereign Wealth Fund Plan

Let no one accuse Bernie Sanders of ducking the big questions. Writing in the New York Times last week, the senator asked: “Will the future of humanity be determined by a handful of billionaires who have promoted and developed AI, with virtually no democratic input, who stand to become even richer and more powerful than they are today?”

We agree entirely that this is one of the most potent questions facing global democracy today. Our book, Rewiring Democracy, surveys the emerging uses for and impacts of AI in democracy around the world and reaches the same conclusion: that the most urgent risk posed by AI is the concentration of power, wealth and control among tech oligarchs.

And yet we reached a vastly different conclusion than Sanders on what to do about it.

The senator points to a once radical but increasingly popular solution: creating a US sovereign wealth fund by taking 50% stock in AI companies such as Anthropic, OpenAI and xAI. The argument in favor of this is twofold. One: it would establish democratic control over the AI companies, giving the government “the power, through its voting shares and an equal representation on each company’s board, to block decisions that hurt our citizens and to push for policies that help them”. Two: it would return a big chunk of the economic rewards of soaring AI valuations to the public, ensuring “trillions of dollars potentially generated by AI are used to improve the lives of all of us”.

We laud both these goals unreservedly.

We wholeheartedly agree that there must be public influence over the development and use of AI, just as we demand the government intervene to ensure that automakers, drugmakers, airlines and other industries balance profitability with public safety and the public interest. And we credit the senator with recognizing that there are more levers for the government to pull beyond the promulgation of regulation to achieve this.

And we also agree that the obscene, dangerous accumulation of wealth among AI companies needs to be disrupted. As OpenAI and Anthropic race to be minted as the world’s latest trillion-dollar AI companies, we should recognize that—whether or not it constitutes a bubble—these staggering market capitalizations represent a transfer of wealth. The flow of money goes from the smaller businesses and actual people using AI, and being subjected to it, to the owners of these tech companies.

That includes the world’s 86 AI billionaires “seeking to maximize their power and profit” aiming to decide the “fate of humanity … behind closed doors in Silicon Valley”, as Sanders said.

And yet, while we do not outright oppose the taking of AI company stock, or of a US sovereign wealth fund, there are better ways to achieve Sanders’ stated goals.

Public ownership of these companies entangles corporate profit and valuation with the public interest. It would incentivize the government to clear regulations, permit the exploitation of workers and users, suppress competition, encourage AI adoption regardless of the responsibleness of the implementation or appropriateness of the use case, and otherwise act on behalf of corporate interests.

After all, if growing, say, Nvidia from its first $5tn in value to its next $5tn also represents a doubling in value of this segment of the sovereign wealth fund, then you can expect the fund managers to support chip sales, foreign and domestic, with the same zeal as the company’s private investors.

This is not an effective way to influence corporations to act in the public interest. In fact, it makes corporate influence on the government more likely.

We should be wary of this possibility because we’ve seen it before. Ownership of substantial stakes in oil companies by the Norwegian sovereign wealth fund, the world’s largest, does not seem to have steered those corporations to pro-environmental policies. Instead, the Norwegian government’s dependence on those companies has inhibited them from taking climate action. Here in the US, public employee pension funds merit the same criticism: the fiduciary duty to generate wealth overwhelms any intention to direct their corporate holdings in the public interest.

A better answer is to separate the two goals. The standard way to share private rewards with the broader society that made them possible is taxation. Senator Elizabeth Warren has proposed an excise tax on datacenters’ energy use. Others have proposed an AI token tax, which has much the same effect.

As to the goal of reshaping AI in the public interest, we have proposed an AI Public Option. The concept is for governments, be it federal or state, to establish publicly developed and operated AI models run by public institutions under democratic control. The idea is not to eliminate corporate AI or to seize it as a public asset, but rather for government to provide a competitive baseline that private AI offerings must meet or exceed to win business—just like the notion of a healthcare public option.

The Swiss have trailblazed this approach. Apertus is a large language model built by Swiss public servants, researchers at Swiss universities, using appropriately licensed training data and pre-existing Swiss public supercomputing infrastructure powered by renewable energy.

While Apertus doesn’t seriously compete with the latest OpenAI and Anthropic models on performance benchmarks, it blows them out of the water in transparency, sustainability and compliance with EU regulations including adherence to copyright. It’s a nascent project, but suggestive of how public institutions can apply competitive pressure for corporate actors to behave responsibly.

Don’t confuse public AI with “sovereign AI“, the notion that every country needs to invest in domestic AI infrastructure. Sovereign AI is often invoked as a marketing scheme for big tech companies looking to sell to governments; it demands public investment without guaranteeing public control.

Sanders is a bold and savvy political operator. So why is he pursuing the sovereign wealth fund strategy when he must be aware of these risks? It may be due to another argument he makes in his op-ed: that the Trump administration and the billionaire owners of AI are aligned to the idea.

It’s expedient to capitalize on rare moments of seeming alignment across diverse political factions, but it also behooves us to ask why the AI billionaires are open to this extraordinary intervention. The answer, of course, is that they believe that for every dollar ceded to government stock expropriation, they will get back more in favorable government policies to protect that newfound investment.

Energy taxation is a straightforward way to make AI companies pay for the social disruption of their technologies. Public AI represents a non-monetary mechanism for governments to shape the development of AI, complementary to direct regulation of private actors, one with a far greater chance of influencing corporate behavior towards the public interest. We urge Sanders and other political leaders to consider them.

This essay was written with Nathan E. Sanders, and originally appeared in The Guardian.

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Enhanced License Plate Tracking

The surveillance company Leonardo wants more data:

A surveillance company plans to add sensors to automatic license plate readers (ALPRs) that would mean the devices, as well as capture the license plate of passing vehicles, would also sweep up unique identifiers of mobile phones, wearables, and other Bluetooth-enabled devices in those cars, potentially letting law enforcement identify specific drivers or passengers.

The technology, called SignalTrace, would turn ALPR cameras from devices focused on tracking cars to ones that can more readily track the location of particular people. ALPR cameras have become a commonly deployed technology all across the U.S.; SignalTrace would make some of those cameras capable of collecting much more data.

Yes, it’s bad that more companies are collecting this level of surveillance data. But all of this pales in comparison to the type and quantity of data our smartphones already collect about us.

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Who Runs the Ransomware Group ‘The Gentlemen?’

A cybercrime group known as The Gentlemen has emerged as the second most active ransomware gang by victim count, rapidly attracting a talented pool of hackers through an aggressive recruitment strategy that promises affiliates 90 percent of any ransom paid by victims. This post examines clues pointing to a real life identity for the administrator of The Gentlemen ransomware group.

A graphic created and shared by The Gentlemen ransomware group administrator Hastalamuerte on Breachforums in May 2026. Credit: ke-la.com.

Experts at the security firm Check Point Software have been closely covering exploits of The Gentlemen, a so-called “ransomware-as-a-service” (RaaS) offering that pays affiliates handsomely to help spread the group’s malware.

“A 90/10 affiliate revenue split — compared to the industry standard 80/20 — is accelerating the group’s growth by attracting experienced operators from competing programs,” the researchers wrote in April.

Check Point found The Gentlemen are the second most active ransomware group by victim count so far this year, claiming at least 332 published victims since the group’s inception in mid-2025 and more than 240 in 2026 alone.

According to Check Point, the group targets Internet-facing devices (VPNs, firewalls) as their entry point, and once inside moves quickly to encrypt entire networks within hours.

Check Point says the administrator and primary operator of the ransomware group uses the nickname Zeta88 on the Russian-language cybercrime forums, and that this individual was previously known under the moniker Hastalamuerte. Check Point noted that a breach of the group’s backend infrastructure made it clear that Hastalamuerte/Zeta88 is the person who assembles the locker and RaaS panel, manages payments, and is essentially the administrator of the entire program who receives 10 percent of all ransoms.

WHO IS HASTALAMUERTE?

The cyber intelligence firm Intel 471 shows that the user Hastalamuerte is a Russian and English speaking person who registered on almost a dozen cybercrime forums between 2019 and the present day, including Exploit, Breachforums, Ramp_V2, BHF, Raidforums, and Nulled.

Intel 471 reveals that Hastalamuerte registered on Breachforums in January 2025 from an Internet address in Izhevsk, the capital city of Russia’s Udmurt Republic. Likewise, the user Zeta88 signed up at the English-language cybercrime forum Breached in August 2022 from a different Internet address in Izhevsk.

Intel 471 finds Hastalamuerte registered on Raidforums in 2020 using the email address hastalamuerte1488@protonmail.com (1488 is a common combination of two numeric symbols associated with white supremacy). A lookup on this address at the open source intelligence service Epieos shows it is connected to an account at Apple and to a phone number ending in 04.

Epieos says that Protonmail address is also linked to a GitHub account under the username SantaMuerte. That account is marked private, but a history of this user’s activity shows they are watching and developing a number of malware tools and exploits.

In April 2020, Hastalamuerte said on the crime forum Nulled that they could be contacted at the Telegram instant messenger name @hastalamuerte18, and the threat intelligence company Flashpoint finds this username is assigned the unique Telegram ID number 30907522 [full disclosure: Flashpoint is an advertiser on this blog].

The breach tracking service Constella Intelligence reports that Hastalamuerte’s Telegram ID is connected to another username — “bu4vs” — and to the Russian phone number 79127650004. Pivoting on this phone number in Constella fetches multiple records from hacked Russian government databases showing it is assigned to one Alexander Andreevich Yapaev, a 36-year-old from Izhevsk.

Constella reveals that phone number was used to create an account at the Russian social media platform Pikabu under the name “4apai18,” and shows Mr. Yapaev has signed up at a number of websites using the common surname Ivanov, or else “Chapaev” (the numeral 4 is often used as shorthand for a “ch” sound in Russian).

A search in Intel 471 for cybercrime forum members with the nickname SantaMeurte unearths an account by the same name created in 2020 on the Russian hacking forum Codeby. Intel 471 shows this user originally registered on Codeby with the not-so-subtle nickname Alexandr 4apaev.

Constella finds Mr. Yapaev regularly used the email address bu4vs@mail.ru. Meanwhile, Epieos shows this address is connected to a LinkedIn account for Alexander Yapaev, who lists himself as the head of B2B marketing at the company Uralenergo Udmurtia, one of Russia’s largest suppliers of electrotechnical and lighting products.

Mr. Yapaev did not respond to multiple requests for comment.

Nearly every time we publish one of these Breadcrumbs stories, readers are curious to know why it seems like so many cybercriminals from Russia apparently do little to hide their real life identities. The truth is that — Russian or not — most didn’t exactly set out to be arch criminals, but instead got drawn into the scene gradually over several years as their skills broadened and sharpened.

Another important dynamic is that the Russian government generally either co-opts or ignores cybercriminal activity within its border so long as the hackers do not steal from or attack Russian businesses and citizens. As a result, successful cybercriminals in Russia are usually insulated from prosecution and arrest by foreign law enforcement agencies provided they occasionally pay off the right people and do not travel abroad. And cybercriminals who intend to strictly adhere to those unwritten rules may (at least initially) be less concerned about covering their tracks online.

But the simplest explanation is that cybercriminals of all nationalities tend to make a number of basic operational security mistakes early in their careers, when they are less savvy and have far less to lose by their carelessness. A review of Hastalamuerte’s early posts on the crime forums (circa 2019-2020) shows a relatively unsophisticated and low-skilled hacker still trying to learn the ropes and earn a positive reputation on these communities.

For example, in June 2020 Hastalamuerte’s Telegram account joined a multi-month training program (@pntst) to learn how to use popular penetration testing tools, and their candid posts to this hacker training camp show Hastalamuerte struggling to use these tools effectively. A Google-translated record of Hastalmuerte’s posts to @pntst is here.

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GPS As a Key Distribution Platform

This is interesting:

The U.S. military has likely been quietly broadcasting codes for its global encryption network using public GPS for nearly 20 years, turning each satellite into a hidden “numbers station,” according to Steven Murdoch…

That means every device that uses GPS has been receiving hidden government information for years, and nobody outside the military knew it until now.

[…]

Murdoch discovered that this particular sentinel was transmitted by all 31 operational satellites within a window of a few hours on May 26, 2011, potentially heralding the activation of a new operational system. He confirmed that this timeline coincided with the rollout of the military’s Over-the-Air Distribution (OTAD) and the Over-the-Air Rekeying (OTAR) by cross-referencing declassified documents, including a 2015 presentation about the dates of the operation.

“There was a perfect match between the timeline and that presentation and the change points that were automatically identified from the data,” Murdoch said. “That was the smoking gun that made me think: This is what it’s for.”

These automated systems replaced the cumbersome manual distribution of cryptographic keying material, allowing military GPS receivers around the world to be rekeyed remotely through satellite broadcasts rather than through onsite procedures.

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A Record-Breaking Patch Tuesday for June 2026

Microsoft today released software updates to plug nearly 200 security holes across its Windows operating systems and supported software, a record number of fixes for the company’s monthly Patch Tuesday cycle. Nearly three dozen of those bugs earned Microsoft’s most dire “critical” rating, and exploit code for at least three of the weaknesses is now publicly available.

The software giant said in a blog post last month that both its engineers and the security community are increasing using artificial intelligence tools to find bugs, meaning this month’s heavy Patch Tuesday may start to become the norm, said Satnam Narang, senior staff research engineer at Tenable.

“Some surveys put AI usage among security professionals generally at 90%, so it’s unsurprising that this volume of patches may be the norm,” Narang said. “Pandora’s proverbial box has been opened, and as more advanced AI models become available, we expect the norm to continue upward across the board, not just for Patch Tuesday.”

June’s zero-day bugs include CVE-2026-49160, a denial of service vulnerability affecting a range of web servers, including Microsoft Internet Information Services (IIS). Microsoft says the flaw was reported by OpenAI’s Codex.

Two of the zero-days addressed this month appear to stem from recent vulnerability disclosures by Nightmare Eclipse, the nickname chosen by a security researcher who has been dropping exploits for various Windows flaws. One of those, dubbed “GreenPlasma,” leverages an elevation of privilege weakness in the Windows Collaborative Translation Framework, the same framework patched today in CVE-2026-45586.

Nightmare Eclipse also last month released “YellowKey,” an exploit for a Windows BitLocker vulnerability that allows an attacker with physical access to view encrypted data, and CVE-2026-50507 is a patch for an elevation of privilege bug in BitLocker.

Microsoft received heavily blowback on social media last month after it said in a blog post that it was considering taking legal action against the security researcher. The company later clarified on Twitter/X that while it has no intention of pursuing legal actions against researchers, it would report them to authorities if they break the law. The advisories for CVE-2026-49160 and CVE-2026-50507 do not credit any researchers in the acknowledgement section, saying only that “Microsoft recognizes the efforts of those in the security community who help us protect customers through coordinated vulnerability disclosure.”

Nightmare Eclipse claims to be a former employee of Microsoft, although Microsoft has not responded to questions about this claim. Rapid7 notes that a recent blog post by Nightmare Eclipse included an image of Albert Vesker, a character from the Resident Evil video game series who formerly worked as a researcher for a technology company before going rogue.

Nightmare Eclipse has pledged to release even more zero-day exploits for Windows in what they called a “bone shattering” drop planned for July 14 (the same day as next month’s Patch Tuesday). Immediately following the release of Microsoft patches today, the researcher published an exploit for what they claimed was a zero-day bug in Windows Defender.

While 200 vulnerabilities may be a record for Patch Tuesday, the actual number of security flaws Microsoft addressed this month is far higher, said Rapid7’s Adam Barnett.

“So far this month, Microsoft has provided patches to address 360 browser vulnerabilities, which is an order of magnitude more than has been typical in any given month over the past few years,” Barnett wrote. “As usual, browser [flaws] are not included in the Patch Tuesday count above. Indeed, the vast, and presumably sustained, uptick in the number of browser vulnerabilities has led to Microsoft no longer enumerating Chromium CVEs in the Security Update Guide.”

Microsoft also patched a zero-day vulnerability in Visual Studio Code that allows attackers to steal GitHub tokens with a single click. The company was forced to push a stopgap fix for the flaw on June 3, after a researcher published instructions showing how to exploit it. The researcher said they opted not to work with Microsoft because of a recent experience wherein Redmond silently patched a flaw they reported without offering credit or recognition.

Microsoft battled its own internal zero-day emergencies last week, after at least 72 of the company’s public code repositories were infected with a variant of the Shai-Hulud worm. Researchers found that all of the affected packages were connected to Microsoft official Azure Durable Task SDK, which got hit by the same Shai-Hulud worm in May.

Other major software makers are also shipping outsized update bundles this month. Adobe has released updates to fix a massive number of critical vulnerabilities across a range of products, including Adobe Experience Manager, Acrobat Reader and Cold Fusion. On June 3, Google resolved a whopping 429 vulnerabilities in its latest Chrome browser update (Chrome automatically downloads updates but installing them usually requires a complete restart of the browser).

As ever, please consider backing up your data before applying operating system updates, and drop a note in the comments if you run into any problems with this month’s patches.

Further reading:

Microsoft’s Security Update Guide

Action1’s Patch Tuesday breakdown

SANS Internet Storm Center notes on Patch Tuesday

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Critical Zcash Vulnerability Found and Fixed

If you’re a user—owner?—of this cryptocurrency, this is important:

On May 29, the security researcher Taylor Hornby found a critical vulnerability in Zcash Orchard privacy pool using Claude Opus 4.8. The Zcash team hired Hornby specifically to look for this kind of issue. He found one fast enough to be embarrassing.

The Orchard pool is the newest and most advanced shielded transaction system in the cryptocurrency Zcash. Introduced in 2022, it allows users to send and receive ZEC while keeping transaction details private. It uses zero-knowledge proofs to validate transactions without revealing amounts or participants. The bug: a specific check that was supposed to validate transaction inputs wasn’t actually enforcing the rules it appeared to enforce. An attacker could have exploited the flaw to feed false inputs into that check and generate ZEC from nothing, with the zero-knowledge proof system blessing the fraudulent transaction as valid.

It’s fixed; that’s the good news. The bad news is that there’s no way of knowing if anyone exploited the vulnerability to steal money. And this fragility is the fundamental problem that makes blockchain such a bad idea.

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