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China-Backed Hackers Exploit Microsoft SharePoint Zero-Day Vulnerability Amid Global Cybersecurity Concerns

Emerging Cyber Threats Demand Immediate Attention

Security researchers from industry giants Google and Microsoft have uncovered compelling evidence linking China-backed hacking groups to the exploitation of a critical zero-day vulnerability in Microsoft SharePoint. This sophisticated breach, designated CVE-2025-53770, has prompted organizations worldwide to urgently address their cybersecurity protocols as attackers leverage the flaw to access sensitive information.

Exploiting the Zero-Day Vulnerability

The discovered vulnerability allows threat actors to extract private cryptographic keys from self-hosted SharePoint installations, thereby enabling remote installation of malware and extending the attack to other connected systems. Microsoft has identified at least three distinct China-backed hacking collectives involved in these intrusions: Linen Typhoon, known for intellectual property theft; Violet Typhoon, focused on gathering intelligence through private information theft; and Storm-2603, a group with a history of ransomware attacks. Evidence indicates that these actors have been active on vulnerable networks since early July.

Implications for Business and Government Sectors

The exploitation of this zero-day bug is not an isolated event. Multiple high-profile organizations, including government agencies, have been compromised, underscoring the critical nature of the threat. The immediacy of the attack leaves many companies that operate self-hosted versions of SharePoint facing the grim possibility of compromised data, even if patches have now been issued by Microsoft.

Corporate Defense and Strategic Response

Microsoft has promptly released security updates for all affected versions, yet the evolving tactics of these cyber adversaries require continuous vigilance. Incident response experts advocate for rigorous monitoring and a thorough security audit of all enterprise systems to mitigate further risk. This scenario vividly illustrates the broader challenge confronting global enterprises: the urgent need to balance rapid digital transformation with robust cybersecurity frameworks.

International Reactions and Future Outlook

Amid ongoing suspicions, the Chinese government has consistently refuted claims of state-sponsored cyber attacks. A spokesperson for the Chinese Embassy in Washington, D.C. reiterated China’s staunch opposition to all forms of cybercrime. Nevertheless, the recurrence of such high-profile incidents, including the notorious 2021 Exchange server breaches known as the Hafnium attacks, highlights a persistent pattern of sophisticated, nation-linked cyber operations.

In a landscape where digital vulnerabilities can have far-reaching business and geopolitical implications, organizations must remain proactive and informed to safeguard their critical infrastructures.

Cyprus Foreclosure Reform Debate Intensifies Amid Rising Non-Performing Loans

Political Stakes And Foreclosure Regulation

Cypriot political parties are engaging in a high-stakes debate in parliament as they deliberate changes to the legal framework governing foreclosures ahead of the May parliamentary elections. The proposed shifts are aimed at curbing the rapid escalation in the value of non-performing loans, a trend that has sparked significant public and legislative concern. Confidential data from the Central Bank of Cyprus indicates that the nation has not yet moved away from its longstanding issues related to so-called “red loans.”

Non-Performing Loans: A Mounting Financial Challenge

Recent figures show that the value of distressed loans has continued to rise, surpassing €20 billion following transfers involving banks and credit recovery companies. This level exceeds the approximately €15 billion recorded during the economic crisis period. Central Bank data indicates that after loan sales, credit recovery firms now manage portfolios totaling €19.7 billion, of which €18.5 billion are classified as non-performing. About 87% of these loans are considered terminated, while the firms acquired 141,478 loans for €3.2 billion, roughly 80% below their original value.

Credit Recovery Companies: Overshooting Investment Returns

By June, credit recovery companies had recovered €5.7 billion through a combination of cash repayments, judicial asset auctions and property-for-debt exchanges. Cash repayments accounted for €3.6 billion, judicial recoveries contributed €619 million, and property swaps added €1.5 billion. These recoveries exceeded the original purchase cost of many loan portfolios while overall balances continued to increase due to accrued interest, a development that remains a concern for policymakers.

Bank Portfolios And The Impact On Financial Stability

Data from the State Guarantee Fund for Deposits and Loans shows that 77,561 loans valued at €7.5 billion were transferred, leaving a remaining balance of €5.7 billion by June 2025, of which €5 billion are non-performing. Within the banking sector, non-performing loans totaled €1.45 billion across 24,736 accounts as of last June. Since December 2024, these figures have improved by approximately €86 million due to repayments and asset recoveries. The reduction in problematic loans has lowered bank exposure compared with levels recorded during the 2013 crisis.

Legislative Proposals And Government Considerations

Political leaders argue that adjustments to foreclosure procedures can be introduced without undermining banking stability. Parliament’s Economic Committee is scheduled to begin discussions on March 9, with an estimated 20 to 30 legislative proposals currently pending from multiple parties. While the Ministry of Finance has not announced immediate legislative action, officials are evaluating the potential reintroduction of elements of the Rent-Versus-Rate plan for vulnerable borrowers, subject to fiscal impact assessments.

Advocacy From AKEL And Environmental Groups

Proposals supported by the AKEL party and several civil organizations focus on strengthening legal protections for borrowers. Among the suggested measures is restoring the right to seek judicial relief to delay foreclosures in cases involving disputed charges or alleged abusive contract clauses. AKEL representative Aristos Damianou criticized the pace of foreclosure proceedings and warned of risks to primary residences and small businesses.

Proposals Targeting Guarantors And Foreclosure Processes

The Democratic Rally party has introduced a proposal aimed at limiting guarantor liability during foreclosure procedures. Under the draft measure, if a property is auctioned or repossessed, the guarantor’s responsibility would be capped at the original loan amount adjusted by recovered sums. The proposal also requires that enforcement actions against guarantors be suspended until a court ruling is issued if the borrower formally disputes the debt.

Revisions Proposed By The Democratic Party of Cyprus

The Democratic Party is also preparing new legislative measures to be introduced on Thursday. Party leader Mario Karogian outlined plans to suspend the foreclosures of primary residences valued up to €350,000 until the end of the year, allowing time to address legislative gaps. Additional proposals include broadening the powers of the Financial Ombudsperson to make binding decisions on disputes up to €50,000, enforcing the Central Bank’s code of conduct, and ensuring strict adherence to refinancing guidelines for first residences.

Outlook And Strategic Implications

The range of proposals reflects an ongoing effort to balance financial system stability with stronger consumer protections. Decisions made in the coming months are expected to shape the regulatory environment for foreclosures and influence broader confidence in Cyprus’ financial sector and economic outlook.

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