Brain Data Emerging As Target For Cybercriminals And State-Linked Actors As Neurotechnology Expands Beyond Clinical Use

Neurological and biometric data collected by a growing number of consumer and medical devices is becoming an increasingly attractive target for cybercriminals and state-sponsored threat actors, according to a report from threat intelligence research group, Insikt Group, part of Recorded Future.

The report, titled “Emerging Threats to Neurotechnology,” identifies four primary threat categories: state-sponsored espionage and intellectual property theft, cyber exploitation and disruption of devices, data theft and extortion, and legal and privacy risks. It warns that as neurotechnology moves beyond clinical settings into consumer wellness, gaming and workplace applications, the volume of sensitive brain activity, biometric and behavioural data being collected by commercial platforms is expanding the attack surface significantly.

The global neurotechnology market is projected to reach $53 billion by 2034.

A strategic competition between the US and China

The report frames neurotechnology as a focal point of strategic competition between the United States and China, similar to the dynamic playing out in artificial intelligence.

While the US and Europe lead in the number of neurotechnology firms, Chinese company, Neuracle, has produced the first brain-computer interface (BCI) approved for commercial use. Multiple other Chinese companies are moving toward clinical trials in both invasive and non-invasive BCI. In June 2026, China approved the world’s first commercial brain implant, which allows individuals with spinal cord injuries to regain motor control of their hands via a robotic glove.

China’s central government issued a guiding document in July 2025 for developing BCI technology through 2030. Multiple provinces have issued dedicated action plans to spur BCI development since at least late 2024. Chinese researchers are second only to the US in neuroscience research output.

The Chinese market for consumer wearable technology that collects biometric data is also expanding rapidly. The Chinese government has subsidised wearable technology companies including Xiaomi and Huawei, helping them become leading global vendors in smartwatches and smart glasses. The report notes this expanding market provides a potentially large source of biometric data that could be used to enhance commercial AI models and enable more accurate integration of biometric data into wearables.

IP theft risk

Because neurotechnology is costly to develop and strategically valuable, the report warns that companies in this sector are likely to become attractive targets for state-sponsored espionage, insider threats and cyber-enabled theft. Successful IP theft could erode the competitive advantage of companies that invest heavily in research and development. Military and higher education research laboratories are also likely to be targeted.

Senior Government Affairs Advisor at Recorded Future, Alexander Leslie, outlined the defensive measures organisations should consider.

“Organisations operating in the neurotechnology field should establish rigorous continuous monitoring, vetting and data access controls to counter industrial espionage and malicious insiders attempting to smuggle proprietary neurotech IP out of the organisation,” Leslie advised.

“Insikt Group recommends to audit external manufacturing partners, hardware vendors and subsidised software ecosystems, such as integrated wearable components, to prevent backdoor data access by foreign national security regimes.”

The report cites historical examples of mass data exfiltration by state-linked actors, including the 2015 Anthem hack affecting nearly 80 million customers, the 2017 Equifax breach and the Salt Typhoon campaign that breached dozens of US telecommunications companies. It suggests that as the ability to analyse and use biometric and neurological data advances, this data has the potential to become a strategic asset and an increasingly valuable target.

Device vulnerabilities and disruption

Neurotechnology devices are also potential targets for threat actors seeking to disrupt their functioning and cause harm to patients. Previous vulnerabilities in medical devices have led to safety recalls due to the risk that exploitation could prevent a device from functioning.

The report notes that at least one vulnerability has been discovered in a consumer brain-wave monitoring device that would allow attackers to remotely disrupt its output, leading to incorrect data about brain activity. As of June 2026, 31 vulnerabilities had been recorded for biometric trackers, primarily smartwatches, of which seven carried a “critical” severity rating requiring immediate remediation.

Beyond device-level vulnerabilities, threat actors can target remote monitoring systems, including mobile applications and cloud-based software that collect and interpret neurological data. This data could be tampered with to give inaccurate readings, obscuring potential health problems or triggering false alarms.

The report also points to the recent cyberattack against medical technology company, Stryker, which delayed some surgical procedures because the company was unable to deliver patient-specific products, as an example of how attacks on IT systems at neurotechnology companies can cause downstream disruption for device users.

Extortion using brain data

Criminal theft of brain or other biometric data could pose a significant extortion risk due to the data’s sensitivity. The report highlights a June 2026 data breach at neuroscience company, Glucobit, involving its Reframe app, a digital resource that applies research on how the brain responds to alcohol to help manage alcohol use. The app collects data on users’ daily habits, alcohol consumption and emotional well-being.

The company’s data breach notification letter warned about unsolicited communications referencing users’ “health, wellness or personal habits,” suggesting that sensitive personal data may have been exposed.

The report warns that criminals could weaponise such data in highly targeted scams, using the information to build trust in romance scams, advertise fraudulent treatment programs or threaten to expose sensitive information about a victim’s mental state, alcohol use or brain activity to friends, family or coworkers.

As the number of neurotechnology users grows, the report assesses that criminals will seek ways to exploit this data, including probing neurotechnology companies for security vulnerabilities to expose mass customer datasets.

Consumer wellness as a protection gap

The report identifies an emerging regulatory gap around consumer wellness products that collect brain data or other biometrics to help improve focus, reduce stress or manage habits. Because many of these products are not offered by entities covered by health data regulations such as HIPAA in the US, sensitive health-adjacent data may be governed mainly by general consumer privacy protections.

The EU extends a special category of protection for brain data under the General Data Protection Regulation, while multiple US states have added protections for neurological data under their privacy regulations. However, the report warns that rapid advances in neurotechnology may outpace consumer protection laws and raise new legal questions, such as whether employers have the right to collect employees’ brain data.

The dual-use nature of neurotechnology devices also poses risks related to export controls and national security regulations. In 2023, a Harvard scientist was found guilty of lying to US officials about payments received from China’s Thousand Talents recruiting program, in a case where the research had been funded in part by the US Department of Defense.

The consumer market is growing fast

The consumer neurotechnology market is expanding rapidly. According to a market study published by the Centre for Future Generations in mid-2025, 45 consumer neurotechnology brands focused on wellness and fitness emerged over the last decade, making it the largest consumer sector in neurotechnology devices. In 2025, the consumer market outpaced the medical market in terms of the number of new companies.

Consumer applications include products that monitor brain activity to improve focus, glasses that use neurofeedback to darken when the user is distracted and lighten when they are focused, brain training exercises and hands-free gaming devices. Shipments of wearable products increased by 9.1 per cent in 2025 from the previous year.

Established technology companies including Meta and Google are also investing in neurotechnology research. Meta has announced progress in using an AI model to interpret magnetic scans of brain activity to predict what participants were typing and has suggested incorporating the technology into consumer wearables.

Military applications

Both the US and China have invested significantly in research into human-machine augmentation for military purposes. Military researchers in multiple countries are exploring BCI to support knowledge transmission, improve decision-making, mitigate the cognitive impacts of stress or fatigue and enable control over drones or other military platforms through thought.

The dual-use nature of the technology increases the risk of exploitation, cyber theft and regulatory exposure through export controls.

Outlook

The report assesses that the expansion of consumer and enterprise use cases will increase the attack surface for neurotechnology. On the enterprise side, applications may include professional development tools such as focus-improvement devices, as well as safety monitors for roles requiring sustained attention such as pilots or heavy-machinery operators.

China is likely to gain market share through affordable technology, potentially resulting in a larger global user base for Chinese neurotechnology products and a competitive edge through greater data volumes. Criminal theft and extortion of brain data is expected to increase. Existing data and privacy protection laws will almost certainly need to be revised to address the emerging risks.

The United Nations, the EU and the International Committee of the Red Cross have already begun to consider the technology’s impacts on human rights. Certain applications, such as use in weapons systems, mass surveillance or criminal justice, may be banned outright in some jurisdictions.

Last Updated on September 4, 2026 by Nick Ross