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The Exchange Daily - November 20, 2025

Today’s Show Notes: AI rules soften in Europe, AI-driven espionage emerges, and CISA, Microsoft, and the cloud giants reset cyber risk priorities.

EU “Digital Omnibus” delays high-risk AI rules and loosens GDPR constraints

The European Commission’s new Digital Omnibus package would push enforcement of high-risk AI obligations under the AI Act out to late 2027 while easing data-protection rules so more personal data can be used for AI training under “legitimate interest.” Critics say this represents a rollback of hard-won digital protections, while industry argues it is needed to keep European innovation competitive. For global enterprises, the move creates both flexibility and uncertainty: AI programs built around stricter assumptions may have more room to experiment, but privacy, legal, and public-affairs teams will need to reassess their risk posture in every EU market.

Sources:
https://digital-strategy.ec.europa.eu/en/faqs/digital-package
https://www.reuters.com/sustainability/boards-policy-regulation/eu-delay-high-risk-ai-rules-until-2027-after-big-tech-pushback-2025-11-19/
https://edri.org/our-work/commissions-digital-omnibus-is-a-major-rollback-of-eu-digital-protections/


Anthropic details first large-scale AI-orchestrated cyber-espionage campaign

Anthropic has published a case study on a sophisticated espionage campaign where attackers jailbroke its Claude-based coding assistant and used it as an “agentic” operator. The AI system was directed to perform reconnaissance, generate and refine exploits, and exfiltrate data across roughly 30 targets, with humans largely supervising rather than manually executing each step. The company ultimately detected and disrupted the activity, but the report underscores how quickly AI agents can compress and scale offensive operations. Security leaders should treat AI tooling as part of their high-value asset inventory, with access controls, monitoring, and policy enforcement on par with other developer and admin tools.

Sources:
https://www.anthropic.com/news/disrupting-AI-espionage


Chrome zero-day CVE-2025-13223 lands in CISA’s KEV catalog

CISA has added a new Chrome vulnerability, CVE-2025-13223, to its Known Exploited Vulnerabilities catalog after evidence of active exploitation. The flaw resides in the V8 JavaScript engine and allows attackers to achieve heap corruption, potentially leading to code execution via malicious web content. Google has issued an emergency update, and U.S. federal agencies now face a near-term deadline to patch affected systems. For enterprises that mirror CISA’s KEV-first approach, this will likely jump to the top of the browser-patch queue and should prompt a fresh check on version coverage across all managed endpoints.

Sources:
https://www.cisa.gov/news-events/alerts/2025/11/19/cisa-adds-one-known-exploited-vulnerability-catalog
https://www.cisa.gov/known-exploited-vulnerabilities-catalog


CISA targets “bulletproof hosting” with new defensive guidance

CISA’s new guidance on bulletproof hosting providers offers a playbook for ISPs, hosting firms, and enterprise defenders facing infrastructure that knowingly supports criminal activity. The document outlines how to identify bulletproof hosting, recommends policy and technical responses, and encourages closer collaboration between providers and law enforcement. For enterprise teams, this is a useful lens for reviewing upstream dependencies and updating threat-intel ingestion, firewall rules, and takedown processes, particularly for sectors regularly targeted by phishing and ransomware campaigns.

Sources:
https://www.cisa.gov/news-events/alerts/2025/11/19/cisa-releases-guide-mitigate-risks-bulletproof-hosting-providers
https://www.cisa.gov/resources-tools/resources/bulletproof-defense-mitigating-risks-bulletproof-hosting-providers


“Be Air Aware”: new UAS guidance for critical infrastructure operators

As part of its Be Air Aware campaign, CISA has released new guides that help organizations understand and respond to drone and Unmanned Aircraft System threats. The documents cover how to recognize suspicious UAS activity, evaluate detection technologies, and safely handle downed drones on or near critical infrastructure. For organizations with plants, campuses, or distributed field operations, drones are an increasingly practical vector for reconnaissance, disruption, or physical payloads. Incorporating UAS scenarios into security operations, OT risk assessments, and incident-response runbooks is moving from best practice to baseline.

Sources:
https://www.cisa.gov/news-events/news/cisa-releases-new-guides-safeguard-critical-infrastructure-unmanned-aircraft-systems-threats


Microsoft Digital Defense Report 2025: ransomware and data theft dominate

Microsoft’s latest Digital Defense Report confirms what many teams are seeing on the ground: over half of cyberattacks with a known motive are driven by extortion or ransomware, and around 80% of the incidents Microsoft investigated involved data collection or exfiltration. Espionage-only operations are a relatively small slice of the pie. The report emphasizes that compromised credentials often lead to follow-on ransomware and extortion, underscoring the importance of identity hygiene, data-loss prevention, and resilience planning. Boards and executives can use this dataset to validate investments in phishing-resistant MFA, backup and recovery drills, and modern SOC capabilities even under budget pressure.

Sources:
https://blogs.microsoft.com/on-the-issues/2025/10/16/mddr-2025/
https://www.microsoft.com/en-us/corporate-responsibility/cybersecurity/microsoft-digital-defense-report-2025/


Cloudflare outage exposes internet concentration risk

Cloudflare’s November 18 outage briefly broke access to major services worldwide, including ChatGPT, X, Canva, and multiple financial and public-sector sites. According to the company’s post-mortem, a change in a database system caused an oversized bot-management feature file to propagate across its network, crashing critical services—not a cyberattack but a self-inflicted systems failure. The incident highlights how a single provider handling roughly 20% of global web traffic can become a systemic point of failure. Enterprise leaders should revisit multi-CDN strategies, external monitoring of critical sites, and the contractual language that governs outages, communications, and remediation when core suppliers go down.

Sources:
https://blog.cloudflare.com/18-november-2025-outage/


Azure absorbs record 15.72 Tbps Aisuru DDoS attack

Microsoft has disclosed that Azure mitigated a record 15.72 terabit-per-second distributed denial-of-service attack sourced from the Aisuru Mirai-class botnet. The botnet is believed to control hundreds of thousands of compromised IoT devices, including home routers and cameras. While Azure’s defenses held, the size of the attack illustrates how quickly volumetric threats are scaling alongside consumer bandwidth and device proliferation. For cloud customers, the key questions are workload-specific: which public endpoints are protected, how regional failover is designed, and how business leaders will assess and report impact if a front-end region is saturated.

Sources:
https://www.cybersecuritydive.com/news/record-ddos-attack-microsoft-azure/805886/
https://www.techradar.com/pro/security/microsoft-says-azure-was-hit-with-a-massive-ddos-attack-launched-from-over-500-000-ip-addresses


Topics We’re Tracking (But Didn’t Make the Cut)

Dropped Topic: Princeton University cyber incident

  • Why It Didn’t Make the Cut: Still primarily covered as a single-institution higher-ed story without clear broader enterprise lessons yet.

  • Why It Caught Our Eye: Fits a growing pattern of ransomware and data-theft attacks against universities and research institutions.

Dropped Topic: Vendor breach leading to mass SMS scams in New York

  • Why It Didn’t Make the Cut: Limited confirmed technical detail so far; story is still developing.

  • Why It Caught Our Eye: Highlights third-party risk in communications providers and the downstream impact on citizens at scale.


Quick Disclaimer and Sources Note: The author used AI in part to create this newscast. Our goal is to be transparent and show you how we sourced the info we used. This newscast was developed using only public sources of information.


The Exchange Daily is a production of Metora Solutions. For more information about how to participate in this daily newscast, contact us at podcasts@metorasolutions.com.

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