Agentic AI drives a new identity security crisis

New research from Rubrik Zero Labs warns that agentic AI is reshaping the identity landscape faster than organisations can secure it.

The study reveals a surge in non-human identities created through automation and API driven workflows, with numbers now exceeding human users by a striking margin.

Most firms have already introduced AI agents into their identity systems or plan to do so, yet many struggle to govern the growing volume of machine credentials.

Experts argue that identity has become the primary attack surface as remote work, cloud adoption and AI expansion remove traditional boundaries. Threat actors increasingly rely on valid credentials instead of technical exploits, which makes weaknesses in identity governance far more damaging.

Rubrik’s researchers and external analysts agree that a single compromised key or forgotten agent account can provide broad access to sensitive environments.

Industry specialists highlight that agentic AI disrupts established IAM practices by blurring distinctions between human and machine activity.

Organisations often cannot determine whether a human or an automated agent performed a critical action, which undermines incident investigations and weakens zero-trust strategies. Poor logging, weak lifecycle controls and abandoned machine identities further expand the attack surface.

Rubrik argues that identity resilience is becoming essential, since IAM tools alone cannot restore trust after a breach. Many firms have already switched IAM providers, reflecting widespread dissatisfaction with current safeguards.

Analysts recommend tighter control of agent creation, stronger credential governance and a clearer understanding of how AI-driven identities reshape operational and security risks.

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Anthropic uncovers a major AI-led cyberattack

The US R&D firm, Anthropic, has revealed details of the first known cyber espionage operation largely executed by an autonomous AI system.

Suspicious activity detected in September 2025 led to an investigation that uncovered an attack framework, which used Claude Code as an automated agent to infiltrate about thirty high-value organisations across technology, finance, chemicals and government.

The attackers relied on recent advances in model intelligence, agency and tool access.

By breaking tasks into small prompts and presenting Claude as a defensive security assistant instead of an offensive tool, they bypassed safeguards and pushed the model to analyse systems, identify weaknesses, write exploit code and harvest credentials.

The AI completed most of the work with only a few moments of human direction, operating at a scale and speed that human hackers would struggle to match.

Anthropic responded by banning accounts, informing affected entities and working with authorities as evidence was gathered. The company argues that the case shows how easily sophisticated operations can now be carried out by less-resourced actors who use agentic AI instead of traditional human teams.

Errors such as hallucinated credentials remain a limitation, yet the attack marks a clear escalation in capability and ambition.

The firm maintains that the same model abilities exploited by the attackers are needed for cyber defence. Greater automation in threat detection, vulnerability analysis and incident response is seen as vital.

Safeguards, stronger monitoring and wider information sharing are presented as essential steps for an environment where adversaries are increasingly empowered by autonomous AI.

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Digital ID arrives for Apple users

Apple has introduced Digital ID, a new feature that lets users create an identification card in Apple Wallet using information from a US passport.

The feature launches in beta at Transportation Security Administration checkpoints across more than two hundred and fifty airports for domestic travel, instead of relying solely on physical documentation.

It offers an alternative for users who lack a Real ID-compliant card while not replacing a physical passport for international journeys.

Users set up a Digital ID by scanning the passport’s photo page, reading the chip on the back of the document, and completing facial movements for verification.

Once added, the ID can be presented with an iPhone or Apple Watch by holding the device near an identity reader and confirming the request with Face ID or Touch ID. New verification options for in-person checks at selected businesses, apps and online platforms are planned.

The company highlights privacy protection by storing passport data only on the user’s device, instead of Apple’s servers. Digital ID information is encrypted and cannot be viewed by Apple, and biometric authentication ensures that only the owner can present the identity.

Only the required information is shared during each transaction, and the user must approve it before it is released.

The launch expands Apple Wallet’s existing support for driver’s licences and state IDs, which are already available in twelve states and Puerto Rico. Recent months have added Montana, North Dakota and West Virginia, and Japan adopted the feature with the My Number Card.

Apple expects Digital ID to broaden secure personal identification across more services over time.

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EU investigates Google over potential Digital Markets Act breach

The European Commission has opened an investigation into whether Google may be breaching the Digital Markets Act by unfairly demoting news publishers in search results.

An inquiry that centres on Google’s ‘site reputation abuse policy’, which appears to lower rankings for publishers that host content from commercial partners, even when those partnerships support legitimate ways of monetising online journalism.

The Commission is examining whether Alphabet’s approach restricts publishers from conducting business, innovating, and cooperating with third-party content providers. Officials highlighted concerns that such demotions may undermine revenue at a difficult moment for the media sector.

These proceedings do not imply a final decision; instead, they allow the EU to gather evidence and assess Google’s practices in detail.

If the Commission finds evidence of non-compliance, it will present preliminary findings and request corrective measures. The investigation is expected to conclude within 12 months.

Under the DMA, infringements can lead to fines of up to ten percent of a company’s worldwide turnover, rising to twenty percent for repeated violations, alongside possible structural remedies.

Senior Commissioners stressed that gatekeepers must offer fair and non-discriminatory access to their platforms. They argued that protecting publishers’ ability to reach audiences supports media pluralism, innovation, and democratic resilience.

Google Search, designated as a core platform service under the DMA, has been required to comply fully with the regulation since March 2024.

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Romania pilots EU Digital Identity Wallet for payments

In a milestone for the European digital identity ecosystem, Banca Transilvania and payments-tech firm BPC have completed the first pilot in Romania using the EU Digital Identity Wallet (EUDIW) for a real-money transaction.

The initiative lets a cardholder authenticate a purchase using the wallet rather than a conventional one-time password or card reader.

The pilot forms part of a large-scale testbed led by the European Commission under the eIDAS 2 Regulation, which requires all EU banks to accept the wallet for strong customer authentication and KYC (know-your-customer) purposes by 2027.

Banca Transilvania’s Deputy CEO Retail Banking, Oana Ilaş, described the project as a historic step toward a unified European digital identities framework that enhances interoperability, inclusivity and banking access.

From a digital governance and payments policy perspective, this pilot is significant. It shows how national banking systems are beginning to integrate digital-ID wallets into card and account-based flows, potentially reducing reliance on legacy authentication mechanisms (such as SMS OTP or hardware tokens) that are vulnerable to fraud.

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Czech central bank invests in digital assets for the first time

The Czech National Bank (CNB) has acquired digital assets for the first time, creating a USD 1 million test portfolio outside its international reserves. The initiative includes Bitcoin, a USD stablecoin, and a tokenised deposit on the blockchain.

The portfolio aims to provide practical experience with digital assets and test related operational processes, without plans for further active investment.

Governor Aleš Michl explained that the idea originated in January 2025 to evaluate decentralised Bitcoin and explore its potential role in diversifying reserves. Discussions later included stablecoins, tokenised deposits, and future payment methods, with insights to be shared over the next two to three years.

The CNB emphasises that the koruna remains the country’s legal tender, while new digital payment and investment methods are increasingly emerging.

The test portfolio will examine the full chain of digital asset management, from technical administration and multi-level approvals to crisis scenarios, security measures, and AML compliance.

The CNB aims to maintain and develop internal expertise, ensuring staff gain practical knowledge transferable across teams. The investment is separated from the central bank’s international reserves and will not influence monetary policy or foreign exchange operations.

Alongside the portfolio, the CNB has launched CNB Lab, an innovation hub to test digital assets, blockchain solutions, AI tools, and payment innovations. The Lab will help the bank prepare for the future of finance while building practical experience and team expertise.

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New York Times lawsuit prompts OpenAI to strengthen privacy protections

OpenAI says a New York Times demand to hand over 20 million private ChatGPT conversations threatens user privacy and breaks with established security norms. The request forms part of the Times’ lawsuit over alleged misuse of its content.

The company argues the demand would expose highly personal chats from people with no link to the case. It previously resisted broader requests, including one seeking more than a billion conversations, and says the latest move raises similar concerns about proportionality.

OpenAI says it offered privacy-preserving alternatives, such as targeted searches and high-level usage data, but these were rejected. It adds that chats covered by the order are being de-identified and stored in a secure, legally restricted environment.

The dispute arises as OpenAI accelerates its security roadmap, which includes plans for client-side encryption and automated systems that detect serious safety risks without requiring broad human access. These measures aim to ensure private conversations remain inaccessible to external parties.

OpenAI maintains that strong privacy protections are essential as AI tools handle increasingly sensitive tasks. It says it will challenge any attempt to make private conversations public and will continue to update users as the legal process unfolds.

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European Commission launches Culture Compass to strengthen the EU identity

The European Commission unveiled the Culture Compass for Europe, a framework designed to place culture at the heart of the EU policies.

An initiative that aims to foster the identity ot the EU, celebrate diversity, and support excellence across the continent’s cultural and creative sectors.

The Compass addresses the challenges facing cultural industries, including restrictions on artistic expression, precarious working conditions for artists, unequal access to culture, and the transformative impact of AI.

It provides guidance along four key directions: upholding European values and cultural rights, empowering artists and professionals, enhancing competitiveness and social cohesion, and strengthening international cultural partnerships.

Several initiatives will support the Compass, including the EU Artists Charter for fair working conditions, a European Prize for Performing Arts, a Youth Cultural Ambassadors Network, a cultural data hub, and an AI strategy for the cultural sector.

The Commission will track progress through a new report on the State of Culture in the EU and seeks a Joint Declaration with the European Parliament and Council to reinforce political commitment.

Commission officials emphasised that the Culture Compass connects culture to Europe’s future, placing artists and creativity at the centre of policy and ensuring the sector contributes to social, economic, and international engagement.

Culture is portrayed not as a side story, but as the story of the EU itself.

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EU regulators, UK and eSafety lead the global push to protect children in the digital world

Children today spend a significant amount of their time online, from learning and playing to communicating.

To protect them in an increasingly digital world, Australia’s eSafety Commissioner, the European Commission’s DG CNECT, and the UK’s Ofcom have joined forces to strengthen global cooperation on child online safety.

The partnership aims to ensure that online platforms take greater responsibility for protecting and empowering children, recognising their rights under the UN Convention on the Rights of the Child.

The three regulators will continue to enforce their online safety laws to ensure platforms properly assess and mitigate risks to children. They will promote privacy-preserving age verification technologies and collaborate with civil society and academics to ensure that regulations reflect real-world challenges.

By supporting digital literacy and critical thinking, they aim to provide children and families with safer and more confident online experiences.

To advance the work, a new trilateral technical group will be established to deepen collaboration on age assurance. It will study the interoperability and reliability of such systems, explore the latest technologies, and strengthen the evidence base for regulatory action.

Through closer cooperation, the regulators hope to create a more secure and empowering digital environment for young people worldwide.

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TikTok faces scrutiny over AI moderation and UK staff cuts

TikTok has responded to the Science, Innovation and Technology Committee regarding proposed cuts to its UK Trust and Safety teams. The company claimed that reducing staff while expanding AI, third-party specialists, and more localised teams would improve moderation effectiveness.

The social media platform, however, did not provide any supporting data or risk assessment to justify these changes. MPs previously called for more transparency on content moderation data during an inquiry into social media, misinformation, and harmful algorithms.

TikTok’s increasing reliance on AI comes amid broader concerns over AI safety, following reports of chatbots encouraging harmful behaviours.

Committee Chair Dame Chi Onwurah expressed concern that AI cannot reliably replace human moderators. She warned AI could cause harm and criticised TikTok for not providing evidence that staff cuts would protect users.

The Committee urges the Government and Ofcom to take action to ensure user safety before implementing staffing reductions. Dame Onwurah emphasised that without credible data, it is impossible to determine whether the changes will effectively protect users.

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