Welcome to CipherTalk

S2E10 | Insecure infrastructure and rising global tensions

Welcome to CipherTalk!

After a brief hiatus to make some big moves—literally—I’m back! In the last few months, I’ve relocated to a new city, a new country, and made some exciting shifts in my career. Along with these changes, I’ve transferred platforms (hello, Beehiiv!) and am beyond thrilled to announce the rebrand of the [our digital disco] newsletter to CipherTalk.

CipherTalk, a play on the term "ciphertext" (an encrypted, unreadable message), doubles-down on my focus: deciphering the increasingly complex trends in geopolitics and innovation. With so much changing so quickly, it’s hard to keep up—let alone understand—how these shifts impact business, markets, and even daily life. CipherTalk aims to give you the insights to navigate and respond to our rapidly evolving world.

I’m also excited to announce the launch of the CipherTalk Podcast! The pilot episode will be released on Friday, November 1st, where we’ll dive deeper into key trends with expert guests—who will unpack how they’re shaping our future. Stay tuned for more announcements!

Let’s jump into this week’s newsletter.

The focus is on infrastructure security—why it’s crucial, why it’s under threat, and what it means for our daily lives. We’ll explore two major breaches: one targeting U.S. water systems and another involving hacked telecom networks and highly sensitive data. Both events reveal the growing risks to our essential services.

Hacked wiretapping systems & global power tensions

Hackers tied to the Chinese government have been accused of spearheading a major cyberattack, infiltrating U.S. telecom giants like AT&T and Verizon. The hackers have had access to broadband providers—think internet usage, text messages, and phone calls—for months. And didn’t just tap into everyday data. U.S. official s believe the hackers likely accessed systems used for wiretapping, where the government monitors private communications for criminal and national security investigations.

This is potentially catastrophic... This sort of level of panic [from officials] is extremely unusual.

Dustin Volz, Cybersecurity and Intelligence Reporter, in WSJ’s The Journal

This is more than just another hack; it’s a direct hit to U.S. infrastructure, raising big concerns about national security and heightening tensions between global powers.

  • Why Should I Care?

    If hackers can get their hands on wiretapping data, they access a goldmine of sensitive information. They could learn about secret investigations or even gain insights into U.S. intelligence operations. The concerns are not just about privacy, but control over security at the highest levels.

    This goes beyond espionage, however. The latest breach has inflamed already-high tensions between the U.S. and China, with each side quick to point fingers. China denies involvement, accusing the U.S. of crafting a “false narrative” to frame them. And on the other side, the U.S. has a long-standing history of counter-allegations over cyber espionage. These exchanges aren’t just diplomatic jabs—they reveal the fragile state of relations between two global superpowers increasingly at odds in cyberspace. And let’s be honest, the stakes go beyond who’s spying on whom—it’s about control over global security, data, and the infrastructure that keeps modern society ticking.

  • The Upside:

    This attack might finally push telecom companies and the government to lock down their networks. It could also drive tougher regulations on how companies handle sensitive data, creating a more secure environment for both businesses and the public.

  • The Downside:

    What’s more, tensions between the U.S. and China have been simmering for years; access to something as sensitive as wiretapping is no small matter. If foreign actors can snoop on criminal investigations or intercept national security information, they can exploit those weaknesses at critical moments. This isn’t just a high-level game of political chess—it’s about real vulnerabilities that could affect everyone, from national security to the safety of daily life. As these cyber skirmishes escalate, the risk of significant disruption to our daily lives only grows.

A glimpse into our vulnerable infrastructure

Last week, hackers broke into the systems of American Water, the largest U.S. water utility serving over 14 million people. While the company reassured customers that water services weren't affected, American Water had to shut down their billing system and call in law enforcement. This isn’t the first time utilities have been hit, and it probably won’t be the last. As cyberattacks increase, this breach is a wake-up call about just how vulnerable our basic services are.

  • Why Should I Care?

    Cyberattacks like this are happening more often—and it’s not just about some data getting stolen. Hackers are targeting systems that control things like water, electricity, and transportation. Imagine if those systems were shut down or worse, manipulated. This could quickly scale to disrupt entire cities. We rely on these services daily, and the more these attacks happen, the more risk we all face, from personal data being exposed to critical services being compromised.

  • The Upside:

    This attack didn’t impact water supply or quality, and American Water acted fast. Events like this could force utilities to step up their game and invest more in cybersecurity. With the right focus, we might see stronger systems across the board that can better defend against these threats, protecting both businesses and the public.

  • The Downside:

    But let’s not sugarcoat it—this is a troubling trend. Just like the telecom hack, this shows how fragile our infrastructure really is. Cyberattacks on infrastructure are becoming more frequent. American Water dodged a bullet this time, but what happens when hackers aim at more vulnerable or interconnected systems? It’s a chilling thought, especially when foreign actors are increasingly seen behind these attacks. Public trust in the security of critical services is already fragile, and each new breach only deepens the cracks.

These breaches are a warning shot. Whether it's your phone, your water, or your power, cyberattacks on critical infrastructure are becoming more frequent and more dangerous. This isn’t just an IT problem—it’s something that affects all of us. Your personal data, your privacy, even the services you depend on daily could be at risk. Stay informed, and keep an eye on how governments and companies are responding. The stakes are getting higher.

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That’s all for now. Keep an eye out for more announcements, and in the meantime, subscribe to CipherTalk to stay up-to-date on all things tech & geopolitics. -MM

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