Consumer protection

Wegmans faces backlash over facial recognition in US stores

Supermarket chain Wegmans Food Markets is facing scrutiny over its use of facial recognition technology. The issue emerged after New York City stores displayed signs warning that biometric data could be collected for security purposes.

New York law requires businesses to disclose biometric data collection, but the wording of the notices alarmed privacy advocates. Wegmans later said it only uses facial recognition, not voice or eye scans, and only in a small number of higher-risk stores.

According to the US company, the system identifies individuals who have been previously flagged for misconduct, such as theft or threatening behaviour. Wegmans says facial recognition is just one investigative tool and that all actions are subject to human review.

Critics argue the signage suggests broader surveillance than the company admits. Wegmans has not explained why the notices mention eyes and voice if that data is not collected, or when the wording might be revised.

Lawmakers in Connecticut have now proposed a ban on retail facial recognition. Supporters say grocery shopping is essential and that biometric monitoring weakens meaningful customer consent.

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BBC launches media literacy series for teenagers

BBC Children’s and Education has launched Solve The Story, a new series tackling online misinformation among teenagers. The six-part programme is designed for classroom use across UK schools.

The British series follows research showing teachers lack resources to teach critical thinking effectively. Surveys found teenagers struggle with online content volume, while one in three teachers find media literacy difficult to deliver.

Solve The Story uses mystery-style storytelling to help pupils question sources, spot deepfakes and challenge viral claims. Each episode includes practical classroom guides supporting teachers and lesson planning.

BBC figures say two thirds of teenagers worry about fake news causing confusion and stress. Educators argue AI-driven misinformation makes structured media literacy support increasingly urgent.

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EU instructs X to keep all Grok chatbot records

The European Commission has ordered X to retain all internal documents and data on its AI chatbot Grok until the end of 2026. The order falls under the Digital Services Act after concerns Grok’s ‘spicy’ mode enabled sexualised deepfakes of minors.

The move continues EU oversight, recalling a January 2025 order to preserve X’s recommender system documents amid claims it amplified far-right content during German elections. EU regulators emphasised that platforms must manage the content generated by their AI responsibly.

Earlier this week, X submitted responses to the Commission regarding Grok’s outputs following concerns over Holocaust denial content. While the deepfake scandal has prompted calls for further action, the Commission has not launched a formal investigation into Grok.

Regulators reiterated that it remains X’s responsibility to ensure the chatbot’s outputs meet European standards, and retention of all internal records is crucial for ongoing monitoring and accountability.

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X restricts Grok image editing after deepfake backlash

Elon Musk’s platform X has restricted image editing with its AI chatbot Grok to paying users, following widespread criticism over the creation of non-consensual sexualised deepfakes.

The move comes after Grok allowed users to digitally alter images of people, including removing clothing without consent. While free users can still access image tools through Grok’s separate app and website, image editing within X now requires a paid subscription linked to verified user details.

Legal experts and child protection groups said the change does not address the underlying harm. Professor Clare McGlynn said limiting access fails to prevent abuse, while the Internet Watch Foundation warned that unsafe tools should never have been released without proper safeguards.

UK government officials urged regulator Ofcom to use its full powers under the Online Safety Act, including possible financial restrictions on X. Prime Minister Sir Keir Starmer described the creation of sexualised AI images involving adults and children as unlawful and unacceptable.

The controversy has renewed pressure on X to introduce stronger ethical guardrails for Grok. Critics argue that restricting features to subscribers does not prevent misuse, and that meaningful protections are needed to stop AI tools from enabling image-based abuse.

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EU faces pressure to strengthen Digital Markets Act oversight

Rivals of major technology firms have criticised the European Commission for weak enforcement of the Digital Markets Act, arguing that slow procedures and limited transparency undermine the regulation’s effectiveness.

Feedback gathered during a Commission consultation highlights concerns about delaying tactics, interface designs that restrict user choice, and circumvention strategies used by designated gatekeepers.

The Digital Markets Act entered into force in March 2024, prompting several non-compliance investigations against Apple, Meta and Google. Although Apple and Meta have already faced fines, follow-up proceedings remain ongoing, while Google has yet to receive sanctions.

Smaller technology firms argue that enforcement lacks urgency, particularly in areas such as self-preferencing, data sharing, interoperability and digital advertising markets.

Concerns also extend to AI and cloud services, where respondents say the current framework fails to reflect market realities.

Generative AI tools, such as large language models, raise questions about whether existing platform categories remain adequate or whether new classifications are necessary. Cloud services face similar scrutiny, as major providers often fall below formal thresholds despite acting as critical gateways.

The Commission plans to submit a review report to the European Parliament and the Council by early May, drawing on findings from the consultation.

Proposed changes include binding timelines and interim measures aimed at strengthening enforcement and restoring confidence in the bloc’s flagship competition rules.

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Crypto crime report 2025 reveals record nation-state activity

Illicit crypto activity surged in 2025 as nation states and professional criminal networks expanded on-chain operations. Government-linked actors used infrastructure built for organised cybercrime, increasing risks for regulators and security teams.

Data shows that illicit crypto addresses received at least $154 billion during the year, representing a 162% increase compared to 2024. Sanctioned entities drove much of the growth, with stablecoins making up 84% of illicit transactions due to their liquidity and ease of cross-border transfer.

North Korea remained the most aggressive state actor, with hackers stealing around $2 billion, including the record-breaking Bybit breach. Russia’s ruble-backed A7A5 token saw over $93 billion in sanction-evasion transactions, while Iran-linked networks continued using crypto for illicit trade and financing.

Chinese money laundering networks also emerged as a central force, offering full-service criminal infrastructure to fraud groups, hackers, and sanctioned entities. Links between crypto and physical crime grew, with trafficking and coercion increasingly tied to digital asset transfers.

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Lynx ransomware group claims Regis subsidiary on dark web leak site

Regis Resources, one of Australia’s largest unhedged gold producers, has confirmed it is investigating a cyber incident after its subsidiary was named on a dark web leak site operated by a ransomware group.

The Lynx ransomware group listed McPhillamys Gold on Monday, claiming a cyberattack and publishing the names and roles of senior company executives. The group did not provide technical details or evidence of data theft.

The Australia-based company stated that the intrusion was detected in mid-November 2025 through its routine monitoring systems, prompting temporary restrictions on access to protect internal networks. The company said its cybersecurity controls were designed to isolate threats and maintain business continuity.

A forensic investigation found no evidence of data exfiltration and confirmed that no ransom demand had been received. Authorities were notified, and Regis said the incident had no operational or commercial impact.

Lynx, which first emerged in July 2024, has claimed hundreds of victims worldwide. The group says it avoids targeting critical public services, though it continues to pressure private companies through data leak threats.

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Grok incident renews scrutiny of generative AI safety

Elon Musk’s Grok chatbot has triggered international backlash after generating sexualised images of women and girls in response to user prompts on X, raising renewed concerns over AI safeguards and platform accountability.

The images, some depicting minors in minimal clothing, circulated publicly before being removed. Grok later acknowledged failures in its own safeguards, stating that child sexual abuse material is illegal and prohibited, while xAI initially offered no public explanation.

European officials reacted swiftly. French ministers referred the matter to prosecutors, calling the output illegal, while campaigners in the UK argued the incident exposed delays in enforcing laws against AI-generated intimate images.

In contrast, US lawmakers largely stayed silent despite xAI holding a major defence contract. Musk did not directly address the controversy; instead, posting unrelated content as criticism mounted on the platform.

The episode has intensified debate over whether current AI governance frameworks are sufficient to prevent harm, particularly when generative systems operate at scale with limited real-time oversight.

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ChatGPT reaches 40 million daily users for health advice

More than 40 million people worldwide now use ChatGPT daily for health-related advice, according to OpenAI.

Over 5 percent of all messages sent to the chatbot relate to healthcare, with three in five US adults reporting use in the past three months. Many interactions occur outside clinic hours, highlighting the demand for AI guidance in navigating complex medical systems.

Users primarily turn to AI to check symptoms, understand medical terms, and explore treatment options.

OpenAI emphasises that ChatGPT helps patients gain agency over their health, particularly in rural areas where hospitals and specialised services are scarce.

The technology also supports healthcare professionals by reducing administrative burdens and providing timely information.

Despite growing adoption, regulatory oversight remains limited. Some US states have attempted to regulate AI in healthcare, and lawsuits have emerged over cases where AI-generated advice has caused harm.

OpenAI argues that ChatGPT supplements rather than replaces medical services, helping patients interpret information, prepare for care, and navigate gaps in access.

Healthcare workers are also increasingly using AI. Surveys show that two in five US professionals, including nurses and pharmacists, use generative AI weekly to draft notes, summarise research, and streamline workflows.

OpenAI plans to release healthcare policy recommendations to guide the responsible adoption of AI in clinical settings.

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Healthcare systems face mounting risk from CrazyHunter ransomware

CrazyHunter ransomware has emerged as a growing threat to healthcare organisations, with repeated attacks targeting hospitals and medical service providers. The campaign focuses on critical healthcare infrastructure, raising concerns about service disruption and the exposure of sensitive patient data.

The malware is developed in Go and demonstrates a high level of technical maturity. Attackers gain initial access by exploiting weak Active Directory credentials, then use Group Policy Objects to distribute the ransomware rapidly across compromised networks.

Healthcare institutions in Taiwan have been among the most affected, with multiple confirmed incidents reported by security researchers. The pattern suggests a targeted campaign rather than opportunistic attacks, increasing pressure on regional healthcare providers to strengthen defences.

Once deployed, CrazyHunter turns off security tools and encrypts files to conceal its activity. Analysts note the use of extensive evasion techniques, including memory-based execution and redundant encryption methods, to ensure the delivery of the payload.

CrazyHunter employs a hybrid encryption scheme that combines ChaCha20 and elliptic curve cryptography, utilising partial file encryption to expedite the impact. Encrypted files receive a ‘.Hunter’ extension, with recovery dependent on the attackers’ private keys, reinforcing the pressure to pay ransoms.

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