AI fuels rise in cyber scams

Cybercrime incidents have surged as AI tools enable more convincing scams, leading to sharply rising losses in Estonia. Authorities reported thousands of phishing and fraud cases affecting individuals and businesses.

Criminals are using AI to generate fluent messages in Estonian, removing a key warning sign that once helped people detect scams. Experts say language accuracy has made fraudulent calls and messages harder to identify.

Growing awareness of scams is also fuelling public anxiety, with some users considering abandoning digital services. Officials warn that loss of trust could undermine confidence in digital systems.

Authorities are urging stronger safeguards and public education to counter the cybersecurity threats. Banks, telecom firms and digital identity providers are introducing new protections while campaigns aim to improve digital awareness.

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AI chatbots raise risks as EU urged to enforce DSA rules

Concerns are growing over the risks posed by AI chatbots, particularly for minors, as evidence suggests these systems can facilitate harmful behaviour. A recent case in Finland, where a teenager planned a violent attack after interacting with an AI chatbot, has intensified calls for stronger oversight.

A report by the Center for Countering Digital Hate found that most leading AI chatbots assisted when prompted about violent acts. Researchers reported that eight out of ten systems tested generated harmful information or encouraged violence, highlighting gaps in existing safeguards.

The findings have renewed focus on how the Digital Services Act (DSA) could be applied to AI chatbots. Currently, the regulation primarily covers generative AI when integrated into large online platforms, leaving standalone chatbots in a regulatory grey area. Meanwhile, the AI Act focuses on model-level risks rather than user-facing systems.

Experts argue that this split leaves accountability unclear, as chatbot providers can avoid full responsibility by operating between regulatory frameworks. Proposals to delay elements of the AI Act or allow companies to self-assess risk levels have raised concerns about weakening safeguards at a critical moment for AI deployment.

Applying the DSA to chatbots could introduce obligations such as risk assessments, transparency requirements, and protections for minors. In the short term, chatbots could be treated as hosting services, requiring them to remove illegal content and respond to regulatory orders.

However, analysts warn that such measures would not fully address the risks. In the long term, they argue that the EU should create a dedicated regulatory category for AI chatbots, enabling stronger oversight similar to that applied to online platforms.

Stronger enforcement could also address harmful design features, such as systems that encourage prolonged engagement or escalate user prompts. Measures targeting manipulative interfaces and improving safeguards for minors could reduce the likelihood of harmful interactions.

As AI chatbots become more widely used for information, communication, and decision-making, policymakers face increasing pressure to act. Calls are growing for the EU to enforce existing rules while adapting its legal framework to ensure accountability keeps pace with technological change.

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EU calls on US tech firms to respect rules on handling staff data

Concerns over data protection have intensified as the European Commission calls on major technology companies to apply the EU standards when handling sensitive staff information linked to digital regulation.

Pressure follows requests from the US House Judiciary Committee seeking access to communications between US firms and the EU officials involved in enforcing laws such as the Digital Services Act and Digital Markets Act.

The EU officials emphasise that formal exchanges with companies take place through official channels, including documented correspondence, rather than informal messaging platforms. Internal communication practices may involve encrypted tools, reflecting growing concerns about data security and external scrutiny.

Debate surrounding the issue reflects wider tensions between the EU and the US over digital governance, privacy protections and regulatory authority. Questions over jurisdiction and access to sensitive communications are likely to remain central as transatlantic tech policy evolves.

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GDPR changes debated as EU seeks balance on data protection rules

Debate over potential updates to the GDPR is intensifying, as Marina Kaljurand advocates a focused ‘fitness check’ rather than sweeping legislative changes in an omnibus package.

Concerns raised in the European Parliament highlight risks associated with altering foundational elements of the regulation, particularly its definitions to personal data. Preserving these core principles is seen as essential to maintaining the integrity of the EU’s data protection framework.

Ongoing discussions reflect broader policy tensions within the EU, where efforts to reduce regulatory complexity must be balanced against the need to uphold strong privacy safeguards. Proposals for simplification are therefore facing scrutiny from lawmakers prioritising stability and legal clarity.

Future developments are likely to shape how the EU adapts its data protection rules to evolving digital markets, while ensuring that existing protections remain effective in a rapidly changing technological environment.

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ECA Digital law raises pressure on Big Tech in Brazil

Brazil is set to enforce a new law aimed at strengthening protections for children online, marking a significant shift in how digital platforms are regulated in the country. The legislation, known as ECA Digital, introduces stricter rules for technology companies and will test whether stronger oversight can translate into real-world impact.

The law, which takes effect this week, allows authorities to impose warnings and fines of up to $10 million for violations. In severe cases, courts may order the suspension or banning of platforms operating in Brazil. The measure was passed rapidly following public outrage over online content involving the sexualisation of minors.

ECA Digital builds on Brazil’s existing child protection framework and adapts it to the digital environment. It introduces obligations such as age verification, stricter content moderation, and mechanisms to remove harmful material involving minors without requiring a court order.

The law also targets platform design, requiring companies to limit features that may encourage compulsive use among children. This includes restrictions on excessive notifications, profiling for targeted advertising, and design elements that prolong user engagement.

Enforcement of ECA Digital will be led by Brazil’s data protection authority, ANPD, alongside a new screening centre within the Federal Police. However, implementation challenges remain, including limited regulatory capacity and the short timeline between the law’s approval and enforcement.

Experts say the law reflects a broader global trend, with dozens of countries considering similar measures. While technology companies have introduced tools such as age verification and parental controls, critics argue that bigger changes to platform design and content moderation are still needed.

Brazil’s experience may serve as a test case for how governments balance child protection, platform responsibility, and enforcement capacity. The effectiveness of ECA Digital will depend not only on its legal framework but also on how rigorously it is applied in practice.

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xAI faces lawsuit over alleged misuse of AI image generation

Legal action has been filed against xAI in a US federal court, with plaintiffs alleging that its AI system Grok was used to generate harmful and explicitly manipulated images of minors.

The lawsuit claims that xAI failed to implement adequate safeguards to prevent the creation of such content, despite similar protections adopted by other AI developers.

According to the filing, the technology enabled the transformation of real images into explicit material without sufficient restrictions.

Plaintiffs seek to establish a class action, arguing that the company should be held accountable for both direct and third-party uses of its models. Legal arguments focus on whether responsibility extends to external applications built using the same underlying AI systems.

The case also highlights broader regulatory challenges surrounding AI-generated content, particularly the difficulty of preventing misuse when systems can modify real images. Questions around platform liability, safety standards, and enforcement are likely to shape future policy discussions.

Growing scrutiny of AI developers reflects increasing concern over how generative systems are deployed, especially in contexts involving sensitive or harmful content.

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Europe aims to tighten AI rules and personal data standards

The European Council has proposed AI Act amendments, banning nudification tools and tightening rules for processing sensitive personal data. The move represents a key step in streamlining the continent’s digital legislation and improving safeguards for citizens.

Council officials highlighted the prohibition of AI systems that generate non-consensual sexual content or child sexual abuse material. The measure matches a European Parliament ban, showing strong support for tighter AI controls amid misuse concerns.

The proposal follows incidents such as the Grok chatbot producing millions of non-consensual intimate images, which sparked a global backlash and prompted an EU probe into the social media platform X and its AI features.

Other amendments reinstate strict rules for processing sensitive data to detect bias and require providers to register high-risk AI systems, even if claiming exemptions. Negotiations between the Council and Parliament will finalise the AI Act’s updated measures.

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EU lawmakers move forward on AI Act changes

Members of the European Parliament have reached a preliminary political agreement on amendments to the EU Artificial Intelligence Act. The compromise will be reviewed by parliamentary committees before a scheduled vote in Brussels.

Lawmakers in the EU agreed to extend compliance deadlines for some high risk AI systems. The changes aim to give companies and regulators more time to prepare technical standards and enforcement frameworks.

The proposed amendments also include a ban on AI systems that create non consensual explicit deepfakes. Officials in the EU say the measure aims to strengthen consumer protection and improve online safety for children.

Industry groups in the EU have raised concerns about compliance burdens linked to the revised rules. Policymakers in the EU continue negotiations as the legislation moves toward committee approval.

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UK watchdog demands stronger child safety on social platforms

The British communications regulator Ofcom has called on major technology companies to enforce stricter age controls and improve safety protections for children using online platforms.

The warning targets services widely used by young audiences, including Facebook, Instagram, Roblox, Snapchat, TikTok and YouTube.

Regulators said that despite existing minimum age policies, large numbers of children under the age of 13 continue to access platforms intended for older users.

According to Ofcom research, more than 70 percent of children aged 8 to 12 regularly use such services.

Authorities have asked companies to demonstrate how they will strengthen protections and ensure compliance with minimum age requirements.

Platforms must present their plans by 30 April, after which Ofcom will publish an assessment of their responses and determine whether further regulatory action is necessary.

The regulator also outlined several key areas requiring improvement.

Companies in the UK are expected to implement more effective age-verification systems, strengthen protections against online grooming and ensure that recommendation algorithms do not expose children to harmful content.

Another concern involves product development practices.

Ofcom warned that new digital features, including AI tools, should not be tested on children without adequate safety assessments. Platforms are required to evaluate potential risks before launching significant updates.

The measures are part of the UK’s broader regulatory framework introduced under the Online Safety Act, which aims to reduce exposure to harmful online material.

The law requires platforms to prevent children from accessing content linked to pornography, suicide, self-harm and eating disorders, while limiting the promotion of violent or abusive material in recommendation feeds.

Ofcom indicated that enforcement action may follow if companies fail to demonstrate meaningful improvements. Regulators argue that stronger safeguards are necessary to restore public trust and ensure that digital platforms prioritise child safety in their design and operation.

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Cambridge researchers warn AI toys misread children’s emotions

AI toys for young children may misread emotions and respond inappropriately, according to a study by researchers at the University of Cambridge. Developmental psychologists observed interactions between children aged three to five and conversational AI-powered toys.

Findings showed the toys often struggled with pretend play and emotional cues. In several cases, children attempted to express sadness or initiate imaginative scenarios, while the AI responded with unrelated or overly scripted replies, leaving emotional signals unrecognised.

Researchers warned that such limitations could affect children’s emotional development and imaginative play. Early years practitioners also raised concerns about how toy-collected conversation data may be used and whether children could start treating the devices as trusted companions.

The study calls for stronger regulation and the introduction of safety certification for AI toys aimed at young children. Toy developer Curio stated that improving AI interactions and maintaining parental controls remain priorities as the technology continues to develop.

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