Chinese shoppers are increasingly using AI to create fake product photos to claim refunds, raising moral and legal concerns. The practice was highlighted during the Double 11 festival, with sellers receiving images of allegedly damaged goods.
Some buyers manipulated photos of fruit to appear mouldy or altered images of electric toothbrushes to look rusty. Clothing and ceramic product sellers also detected AI-generated inconsistencies, such as unnatural lighting, distorted edges, or visible signs of manipulation.
In some cases, requests were withdrawn after sellers asked for video evidence.
E-commerce platforms have historically favoured buyers, granting refunds even when claims seem unreasonable. In response, major platforms such as Taobao and Tmall removed the ‘refund only’ option and introduced buyer credit ratings based on purchase and refund histories.
Sellers are also increasingly turning to AI tools to verify images.
China’s AI content rules, effective from 1 September, require AI-generated material to be labelled, but detection remains difficult. Legal experts warn that using AI to claim refunds could constitute fraud, with calls for stricter enforcement to prevent abuse.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
The Second Cairo Forum brought together experts to assess how AI, global shifts, and economic pressures are shaping MENA. Speakers said the region faces a critical moment as new technologies accelerate. The discussion asked whether MENA will help shape AI or simply adopt it.
Participants highlighted global divides, warning that data misuse and concentrated control remain major risks. They argued that middle-income countries can collaborate to build shared standards. Several speakers urged innovation-friendly regulation supported by clear safety rules.
Officials from Egypt outlined national efforts to embed AI across health, agriculture, and justice. They described progress through applied projects and new governance structures. Limited data access and talent retention were identified as continuing obstacles.
Industry voices stressed that trust, transparency, and skills must underpin the use of AI. They emphasised co-creation that fits regional languages and contexts. Training and governance frameworks were seen as essential for responsible deployment.
Closing remarks warned that rapid advances demand urgent decisions. Speakers said safety investment lags behind development, and global competition is intensifying. They agreed that today’s choices will shape the region’s AI future.
Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our Diplo chatbot!
Meta has faced criticism after numerous consumers reported being misled by companies using AI-generated adverts on Facebook and Instagram. The firms posed as UK businesses while shipping cheap goods from Asia, prompting claims that scams were ‘running rampant’ on the platforms.
Victims were persuaded by realistic adverts and AI-generated images but received poorly made clothing and jewellery. Several companies, including C’est La Vie, Mabel & Daisy, Harrison & Hayes, and Chester & Clare, were removed after investigations revealed fabricated backstories and fake shopfronts.
Consumer guides recommend vigilance, advising shoppers to check company websites, reviews, and use Trustpilot to verify legitimacy. Experts warn that overly perfect images, including AI-generated shopfronts or models, may signal fraudulent adverts.
Platforms such as Facebook and Instagram are urged to enforce stricter measures to prevent scams.
Meta stated it works with Stop Scams UK and encourages users to report suspicious adverts, while the Advertising Standards Authority continues to crack down on misleading online promotions.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
South Korea is examining a significant data breach at Coupang after the retailer confirmed exposure of personal details linked to millions of users. Officials say the incident involves only domestic accounts. Regulators have opened a formal investigation.
Coupang first reported a small number of affected users, then revised its estimate to 33.7 million. The firm states that the leaked data includes names and contact details. It maintains that passwords and payment information remain secure.
Authorities believe the breach may date back several months and may involve an overseas server. Local media reports suspicion of a former employee in China. Investigators are assessing whether safety rules were breached.
The incident adds to a series of cyberattacks on major firms in South Korea this year. Commentators say repeated lapses point to structural weaknesses. Previous breaches at SK Telecom and Lotte Card remain fresh in public memory.
Coupang has apologised and warned customers to watch for scams using stolen information. Regulators pledge to enforce swiftly if violations are confirmed. The case has reignited debate over corporate safeguards and national cyber resilience.
Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our Diplo chatbot!
Spar Switzerland has advanced retail crypto adoption by adding Bitcoin and over 100 digital assets to its mobile app. On-chain QR payments now replace third-party processors, following earlier pilots with the Lightning Network and Binance Pay.
Supportive national regulations continue to make Switzerland one of the most active retail environments for crypto payments. Merchants across the country have increasingly embraced digital assets, encouraged by clear legal frameworks and a population already familiar with fintech services.
The update follows previous pilots involving the Lightning Network and Binance Pay that began in 2025. Lessons from those trials helped shape Spar’s shift towards a fully integrated on-chain payment system.
Industry analysts view the expansion as a strong signal of growing consumer demand for flexible payment options. Broader access in major retail chains often accelerates mainstream adoption and encourages users and businesses to engage more confidently with the crypto economy.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
FIDReC recorded 4,355 claims in FY2024/2025, marking its highest volume in twenty years and a sharp rise from the previous year. Scam activity and broader dispute growth across financial institutions contributed to the increase. Greater public awareness of the centre’s role also drove more filings.
Fraud and scam disputes climbed to 1,285 cases, up more than 50% and accounting for nearly half of all claims. FIDReC accepted 2,646 claims for handling, with early resolution procedures reducing formal caseload growth. The phased approach encourages direct negotiation between consumers and providers.
Chief Executive Eunice Chua said rising claim volumes reflect fast-evolving financial risks and increasingly complex products. National indicators show similar pressures, with Singapore ranked second globally for payment card scams. Insurance fraud reports also continued to grow during the year.
Compromised credentials accounted for most scam-related cases, often involving unauthorised withdrawals or card charges. Consumers reported incidents without knowing how their details were obtained. The share of such complaints rose markedly compared with the previous year.
Banks added safeguards on large digital withdrawals as part of wider anti-scam measures. Regulators introduced cooling-off periods, stronger information sharing and closer monitoring of suspicious activity. Authorities say the goal is to limit exposure to scams and reinforce public confidence.
Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our Diplo chatbot!
The UK government has confirmed that cryptocurrency traders will be required to report personal details to trading platforms from 1 January 2026. The move forms part of the Cryptoasset Reporting Framework (CAFR), aligned with an OECD agreement, and aims to improve compliance with existing tax rules.
Under the framework, exchanges must provide HM Revenue & Customs (HMRC) with customer information, including cryptocurrency transactions and tax reference numbers.
Traders who fail to supply required details could face fines of up to £300, while platforms may be fined the same amount per unreported customer. HMRC expects to raise up to £315 million by 2030 from the new reporting rules.
Experts warn exchanges may face challenges collecting accurate information, potentially passing compliance costs onto users. Some investors may initially turn to noncompliant platforms, but international standards are expected to drive global alignment over time.
The 2025 Budget also addressed the taxation of DeFi activities such as lending and staking. HMRC appears to favour taxing gains only when they are realised, although no final decision has been made and consultations with stakeholders will continue.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
Chinese AI firm DeepSeek has released the first open AI model capable of achieving gold-medal results at the International Mathematical Olympiad. Math-V2 is now freely available on Hugging Face and GitHub, allowing developers to repurpose it and run it locally.
Gold-level performance at the IMO is remarkably rare, with only a small share of human participants reaching the top tier. DeepSeek aims to make such advanced mathematical capabilities accessible to researchers and developers who previously lacked access to comparable systems.
The company said its model achieved gold-level scores in both this year’s Olympiad and the Chinese Mathematical Olympiad. The results relied on strong theorem-proving skills and a new ‘self-verification’ method for reasoning without known solutions.
Observers said the open release could lower barriers to advanced maths AI, while US firms keep their Olympiad-level systems restricted. Supporters of open-source development welcomed the move as a significant step toward democratising advanced scientific tools.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
An intervention that followed previous debates at the ministerial level, where governments signalled reluctance to introduce new interconnection measures and stressed the need to consider the specific roles of different actors across the value chain instead of applying a single regulatory model to all.
Consumer groups and business organisations voiced further doubts as plans for network fees resurfaced in recent discussions. They argued that earlier consultations had already shown major risks for competition, innovation, and net neutrality, making renewed consideration unnecessary.
The US–EU trade agreement added another layer by including a clause that commits the EU to avoid such fees, leaving open how the Commission will balance domestic expectations with international obligations.
The Digital Networks Act faced an additional setback when the EU’s Regulatory Scrutiny Board delivered a negative opinion about its preparedness. That view disrupted earlier hopes of releasing a draft before the end of the year.
Even so, the Commission is expected to present an updated proposal in January 2026, setting the stage for one of the most difficult legislative debates of the coming year.
Would you like to learn more aboutAI, tech and digital diplomacy? If so, ask our Diplo chatbot!
Italy’s competition authority has launched an investigation into Meta over potential dominance in AI chatbots. Regulators are reviewing the new WhatsApp Business terms and upcoming Meta AI features. They say the changes could restrict rivals’ access to the platform.
Officials in Italy warn that the revised conditions may limit innovation and reduce consumer choice in emerging AI services. The concerns fall under Article 102 TFEU. The authority states that early action may be necessary to prevent distortions.
The case expands an existing Italian investigation into Meta and its regional subsidiaries. Regulators say technical integration of Meta AI could strengthen exclusionary effects. They argue that WhatsApp’s scale gives Meta significant structural advantages.
Low switching rates among users may entrench Meta’s market position further in Italy and beyond. Officials say rival chatbot providers would struggle to compete if access is constrained. They warn that competition could be permanently harmed.
Meta has announced significant new AI investments in the United States. Italian regulators say this reflects the sector’s growing influence. They argue that strong oversight is needed to ensure fair access to key platforms.
Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our Diplo chatbot!
