Venice Film Festival hit by data breach

The Venice Film Festival has confirmed that a cyberattack compromised the personal data of accredited attendees, including journalists and industry members. The breach affected names, contact details, and tax information.

The cybersecurity attackers accessed the festival’s servers on 7 July and copied and stored documents. Festival organisers responded by isolating systems and informing authorities.

Those affected received a formal notification and are encouraged to contact the event’s data protection officer for support or updates.

Despite the breach, the 82nd edition of the festival will proceed as scheduled from 27 August to 9 September in Italy.

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Android spyware posing as antivirus

LunaSpy is a new Android spyware campaign disguised as an antivirus or banking protection app. It spreads via messenger links and fake channels, tricking users into installing what appears to be a helpful security tool.

Once installed, the app mimics a real scanner, shows fake threat detections and operates unnoticed. In reality, it monitors everything on the device and sends sensitive data to attackers.

Active since at least February 2025, LunaSpy spreads through hijacked contact accounts and emerging Telegram channels. It poses as legitimate software to build trust before beginning surveillance.

Android users must avoid apps from unofficial links, scrutinise messenger invites, and only install from trusted stores. Reliable antivirus software and cautious permission granting provide essential defence.

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Malaysia tackles online scams with AI and new cyber guidelines

Cybercrime involving financial scams continues to rise in Malaysia, with 35,368 cases reported in 2024, a 2.53 per cent increase from the previous year, resulting in losses of RM1.58 billion.

The situation remains severe in 2025, with over 12,000 online scam cases recorded in the first quarter alone, involving fake e-commerce offers, bogus loans, and non-existent investment platforms. Losses during this period reached RM573.7 million.

Instead of waiting for the situation to worsen, the Digital Ministry is rolling out proactive safeguards. These include new AI-related guidelines under development by the Department of Personal Data Protection, scheduled for release by March 2026.

The documents will cover data protection impact assessments, automated decision-making, and privacy-by-design principles.

The ministry has also introduced an official framework for responsible AI use in the public sector, called GPAISA, to ensure ethical compliance and support across government agencies.

Additionally, training initiatives such as AI Untuk Rakyat and MD Workforce aim to equip civil servants and enforcement teams with skills to handle AI and cyber threats.

In partnership with CyberSecurity Malaysia and Universiti Kebangsaan Malaysia, the ministry is also creating an AI-powered application to verify digital images and videos.

Instead of relying solely on manual analysis, the tool will help investigators detect online fraud, identity forgery, and synthetic media more effectively.

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Law curbs AI use in mental health services across US state

A new law in a US state has banned the use of AI for delivering mental health care, drawing a firm line between digital tools and licensed professionals. The legislation limits AI systems to administrative tasks such as note-taking and scheduling, explicitly prohibiting them from offering therapy or clinical advice.

The move comes as concerns grow over the use of AI chatbots in sensitive care roles. Lawmakers in the midwestern state of Illinois approved the measure, citing the need to protect residents from potentially harmful or misleading AI-generated responses.

Fines of up to $10,000 may be imposed on companies or individuals who violate the ban. Officials stressed that AI lacks the empathy, accountability and clinical oversight necessary to ensure safe and ethical mental health treatment.

One infamous case saw an AI-powered chatbot suggest drug use to a fictional recovering addict, a warning signal, experts say, of what can go wrong without strict safeguards. The law is named the Wellness and Oversight for Psychological Resources Act.

Other parts of the United States are considering similar steps. Florida’s governor recently described AI as ‘the biggest issue’ facing modern society and pledged new state-level regulations within months.

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ChatGPT checkout could sideline major platforms

OpenAI is preparing to add a payment system into ChatGPT, allowing users to complete purchases without ever leaving the chatbot. Retail leaders are calling it a turning point in e-commerce, as it may significantly simplify how people shop online.

The company is expected to take a cut of transactions and work with platforms such as Shopify to streamline operations. With over 77 million users, ChatGPT has the reach to become a dominant shopping tool, potentially bypassing platforms like Amazon.

Executives worry visibility could depend on revenue-sharing, forcing brands to pay for prominence in the chatbot. Some fear this pay-to-play model could leave smaller retailers behind and limit consumer choice.

At the same time, personalised AI-driven recommendations may enhance user experiences while raising questions about data use and bias. Entrepreneurs on X are already predicting widespread AI-led shopping within a year.

Retailers are now adjusting strategies to remain visible in this new market. While some early adopters show success using AI to complete purchases, others highlight technical challenges in integration and website compatibility.

Observers say search engines could lose relevance as shoppers turn to AI instead. Regulators remain cautious, particularly in markets like Australia, where many consumers are open to AI-led transactions.

The industry faces a shift where chatbots may evolve into full-scale digital marketplaces. Brands are urged to act quickly, or risk losing out as AI commerce becomes the norm.

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New malware steals 200,000 passwords and credit card details through fake software

Hackers are now using fake versions of familiar software and documents to spread a new info-stealing malware known as PXA Stealer.

First discovered by Cisco Talos, the malware campaign is believed to be operated by Vietnamese-speaking cybercriminals and has already compromised more than 4,000 unique IP addresses across 62 countries.

Instead of targeting businesses alone, the attackers are now focusing on ordinary users in countries including the US, South Korea, and the Netherlands.

PXA Stealer is written in Python and designed to collect passwords, credit card data, cookies, autofill information, and even crypto wallet details from infected systems.

It spreads by sideloading malware into files like Microsoft Word executables or ZIP archives that also contain legitimate-looking programs such as Haihaisoft PDF Reader.

The malware uses malicious DLL files to gain persistence through the Windows Registry and downloads additional harmful files via Dropbox. After infection, it uses Telegram to exfiltrate stolen data, which is then sold on the dark web.

Once activated, the malware even attempts to open a fake PDF in Microsoft Edge, though the file fails to launch and shows an error message — by that point, it has already done the damage.

To avoid infection, users should avoid clicking unknown email links and should not open attachments from unfamiliar senders. Instead of saving passwords and card details in browsers, a trusted password manager is a safer choice.

Although antivirus software remains helpful, hackers in the campaign have used sophisticated methods to bypass detection, making careful online behaviour more important than ever.

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The risky rise of all-in-one AI companions

A concerning new trend is emerging: AI companions are merging with mental health tools, blurring ethical lines. Human therapists are required to maintain a professional distance. Yet AI doesn’t follow such rules; it can be both confidant and counsellor.

AI chatbots are increasingly marketed as friendly companions. At the same time, they can offer mental health advice. Combined, you get an AI friend who also becomes your emotional guide. The mix might feel comforting, but it’s not without risks.

Unlike a human therapist, AI has no ethical compass. It mimics caring responses based on patterns, not understanding. One prompt might trigger empathetic advice and best-friend energy, a murky interaction without safeguards.

The deeper issue? There’s little incentive for AI makers to stop this. Blending companionship and therapy boosts user engagement and profits. Unless laws intervene, these all-in-one bots will keep evolving.

There’s also a massive privacy cost. People confide personal feelings to these bots, often daily, for months. The data may be reviewed, stored, and reused to train future models. Your digital friend and therapist might also be your data collector.

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Google signs groundbreaking deal to cut data centre energy use

Google has become the first major tech firm to sign formal agreements with US electric utilities to ease grid pressure. The deals come as data centres drive unprecedented energy demand, straining power infrastructure in several regions.

The company will work with Indiana Michigan Power and Tennessee Valley Authority to reduce electricity usage during peak demand. These arrangements will help divert power to general utilities when needed.

Under the agreements, Google will temporarily scale down its data centre operations, particularly those linked to energy-intensive AI and machine learning workloads.

Google described the initiative as a way to speed up data centre integration with local grids while avoiding costly infrastructure expansion. The move reflects growing concern over AI’s rising energy footprint.

Demand-response programmes, once used mainly in heavy manufacturing and crypto mining, are now being adopted by tech firms to stabilise grids in return for lower energy costs.

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The US launches $100 million cybersecurity grant for states

The US government has unveiled more than $100 million in funding to help local and tribal communities strengthen their cybersecurity defences.

The announcement came jointly from the Cybersecurity and Infrastructure Security Agency (CISA) and the Federal Emergency Management Agency (FEMA), both part of the Department of Homeland Security.

Instead of a single pool, the funding is split into two distinct grants. The State and Local Cybersecurity Grant Program (SLCGP) will provide $91.7 million to 56 states and territories, while the Tribal Cybersecurity Grant Program (TCGP) allocates $12.1 million specifically for tribal governments.

These funds aim to support cybersecurity planning, exercises and service improvements.

CISA’s acting director, Madhu Gottumukkala, said the grants ensure communities have the tools needed to defend digital infrastructure and reduce cyber risks. The effort follows a significant cyberattack on St. Paul, Minnesota, which prompted a state of emergency and deployment of the National Guard.

Officials say the funding reflects a national commitment to proactive digital resilience instead of reactive crisis management. Homeland Security leaders describe the grant as both a strategic investment in critical infrastructure and a responsible use of taxpayer funds.

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Hackers infiltrate Southeast Asian telecom networks

A cyber group breached telecoms across Southeast Asia, deploying advanced tracking tools instead of stealing data. Palo Alto Networks’ Unit 42 assesses the activity as ‘associated with a nation-state nexus’.

A hacking group gained covert access to telecom networks across Southeast Asia, most likely to track users’ locations, according to cybersecurity analysts at Palo Alto Networks’ Unit 42.

The campaign lasted from February to November 2024.

Instead of stealing data or directly communicating with mobile devices, the hackers deployed custom tools such as CordScan, designed to intercept mobile network protocols like SGSN. These methods suggest the attackers focused on tracking rather than data theft.

Unite42 assessed the activity ‘with high confidence’ as ‘associated with a nation state nexus’. The Unit notes that ‘this cluster heavily overlaps with activity attributed to Liminal Panda, a nation state adversary tracked by CrowdStrike’; according to CrowdStrike, Liminal Panda is considered to be a ‘likely China-nexus adversary’. It further states that ‘while this cluster significantly overlaps with Liminal Panda, we have also observed overlaps in attacker tooling with other reported groups and activity clusters, including Light Basin, UNC3886, UNC2891 and UNC1945.’

The attackers initially gained access by brute-forcing SSH credentials using login details specific to telecom equipment.

Once inside, they installed new malware, including a backdoor named NoDepDNS, which tunnels malicious data through port 53 — typically used for DNS traffic — in order to avoid detection.

To maintain stealth, the group disguised malware, altered file timestamps, disabled system security features and wiped authentication logs.

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