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In a severe blow to investor confidence, Fortinet's stock plunged nearly 18% after the company issued a bleak revenue forecast, triggering a wider selloff in the cybersecurity sector. The dire outlook reflects growing concerns over reduced spending by clients amidst economic uncertainties. Fortinet's revised annual revenue expectations and lower-than-anticipated sales projections for the current quarter significantly lagged behind analysts' estimates, suggesting a potential $8 billion market value loss. Competitors such as Palo Alto, ZScaler, and CrowdStrike also experienced declines—although these were contained between 0.6 and 2.6%.

The scale of the downturn caused some concern among analysts, who broadly attributed it to increased competition, elongated sales cycles, and a normalization of the demand surge seen during the pandemic. The sector's landscape is shifting as customers favor comprehensive cybersecurity solutions, putting pressure on smaller firms. Fortinet's unexpectedly weak performance prompted numerous brokerages to downgrade the company, with analysts slashing price targets, casting a shadow over its previously robust year-to-date stock rise.

A sophisticated malware known as StripedFly has covertly infected over one million devices worldwide while posing as a cryptocurrency miner for over five years, Kaspersky experts reveal. The malware, which targets both Linux and Windows systems, utilizes an advanced version of the EternalBlue SMBv1 exploit, originally linked to the Equation Group, to breach devices. It employs a shellcode that can fetch additional malicious files and execute commands remotely. StripedFly's stealth tactics include a custom-built TOR client for C2 server communication and the use of encrypted files on code hosting platforms like Bitbucket to evade detection. Additionally, it can capture credentials, take screenshots, and even record audio without users' awareness.

Despite being equipped with a Monero miner, the malware's complex architecture and obfuscation methods suggest it may be a front for more sinister activities, potentially tied to advanced persistent threat (APT) actors. The origins of StripedFly are unclear.

Google has introduced a new "Independent security review" badge in the Play Store to enhance user trust in-app safety, specifically starting with VPN applications. The badge indicates that an app has passed a Mobile Application Security Assessment (MASA), aligning with security standards like the Mobile Application Security Verification Standard (MASVS). This initiative is part of Google's commitment to offer a comprehensive overview of app safety within the data safety section, clarifying data collection, usage, and sharing practices.

Developers seeking the badge must undergo testing from Authorized Labs, with the process expected to take about 2 to 30 weeks. While the badge signals security best practices, Google cautions that it does not guarantee the app is free from vulnerabilities.

Interesting Read

Unpack the seismic shift in AI governance with President Biden's new executive order. Industry giants and experts weigh in on the groundbreaking policy shaping the future of AI. Don't miss Dan Lohrmann's comprehensive analysis of what this means for tech, cybersecurity, and the world at large in his latest post for Government Technology.

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The CybersecurityHQ Team