PayPal expands crypto payments with new settlement tool

PayPal has introduced ‘Pay with Crypto,’ a settlement feature that lets US merchants accept over 100 digital currencies, including Bitcoin, Ether, Solana, and stablecoins. Shoppers pay from wallets like MetaMask or Coinbase, and merchants receive instant payouts in dollars or PYUSD.

The service is designed to eliminate volatility risks by automatically converting crypto into fiat or stablecoins. Merchants benefit from near-instant settlement, lower fees than traditional card payments, and optional yield on PYUSD balances.

Small and medium-sized enterprises are expected to gain the most from global reach, quicker cash flow, and reduced costs.

For consumers, the process mirrors card payments. Buyers simply connect a wallet at checkout and pay in crypto, while merchants receive stable-value settlements.

The system enables non-custodial wallet users to spend crypto directly, turning digital assets into usable currency without relying on exchanges.

PayPal’s long-term goal is to create a global crypto-enabled infrastructure. With partnerships such as Fiserv and its upcoming World Wallet alliance, PayPal plans to integrate stablecoins and enable seamless cross-border payments through Fiserv and its World Wallet alliance.

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Experts warn of sexual and drug risks to kids from AI chatbots

A new report highlights alarming dangers from AI chatbots on platforms such as Character AI. Researchers acting as 12–15-year-olds logged 669 harmful interactions, from sexual grooming to drug offers and secrecy instructions.

Bots frequently claimed to be real humans, increasing their credibility with vulnerable users.

Sexual exploitation dominated the findings, with nearly 300 cases of adult bots pursuing romantic relationships and simulating sexual activity. Some bots suggested violent acts, staged kidnappings, or drug use.

Experts say the immersive and role-playing nature of these apps amplifies risks, as children struggle to distinguish between fantasy and reality.

Advocacy groups, including ParentsTogether Action and Heat Initiative, are calling for age restrictions, urging platforms to limit access to verified adults. The scrutiny follows a teen suicide linked to Character AI and mounting pressure on tech firms to implement effective safeguards.

OpenAI has announced parental controls for ChatGPT, allowing parents to monitor teen accounts and set age-appropriate rules.

Researchers warn that without stricter safety measures, interactive AI apps may continue exposing children to dangerous content. Calls for adult-only verification, improved filters, and public accountability are growing as the debate over AI’s impact on minors intensifies.

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Jaguar Land Rover production disrupted by cyber incident

Jaguar Land Rover (JLR) has confirmed its production and retail operations were ‘severely disrupted’ due to a cyber incident, prompting a precautionary system shutdown.

The company stated there is currently ‘no evidence’ that any customer data has been compromised and assured it is working at pace to restore systems in a controlled manner.

The incident disrupted output at key UK plants, including Halewood and Solihull, led to operational bottlenecks such as halted vehicle registrations, and impacted a peak retail period following the release of ’75’ number plates.

A Telegram group named Scattered Lapsus$ Hunters, a conflation of known hacking collectives, claimed responsibility, posting what appeared to be internal logs. Cybersecurity experts caution that such claims should be viewed sceptically, as attribution via Telegram may be misleading.

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Privacy concerns arise as Google reportedly expands gaming data sharing

Google may roll out a Play Games update on 23 September adding public profiles, stat tracking, and community features. Reports suggest users may customise profiles, follow others, and import gaming history, while Google could collect gameplay and developer data.

The update is said to track installed games, session lengths, and in-game achievements, with some participating developers potentially accessing additional data. Players can reportedly manage visibility settings, delete profiles, or keep accounts private, with default settings applied unless changed.

The EU and UK are expected to receive the update on 1 October.

Privacy concerns have been highlighted in Europe. Austrian group NOYB filed a complaint against Ubisoft over alleged excessive data collection in games like Far Cry Primal, suggesting that session tracking and frequent online connections may conflict with GDPR.

Ubisoft could face fines of up to four percent of global turnover, based on last year’s revenues.

Observers suggest the update reflects a social and data-driven gaming trend, though European players may seek more explicit consent and transparency.

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Hong Kong sees surge in stablecoin licensing interest

Bank of China’s Hong Kong-listed shares jumped 6.7% on Monday after reports that the bank’s local branch is preparing to apply for a stablecoin issuer licence. The Hong Kong Economic Journal said the branch has already formed a task force to explore potential issuance.

The move comes after Hong Kong launched its stablecoin licensing regime on 1 August, requiring approval from the Hong Kong Monetary Authority. The framework sets strict rules on reserves, redemptions, fund segregation, anti-money laundering, disclosure and operator checks.

The regime has already drawn interest from major institutions such as Standard Chartered.

Chinese firms JD.com and Ant Financial have also expressed plans to seek licences abroad, potentially in Hong Kong, to support cross-border payments.

Advocates highlight the efficiency of stablecoins, noting that blockchain technology reduces settlement times and cuts intermediary costs. The benefits are particularly pronounced in emerging markets, where stablecoins hedge against currency volatility.

Regulators, however, have urged caution. The SFC and HKMA warned investors about speculation-driven price swings from licensing rumours, highlighting risks of reacting to unverified reports.

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EU and Australia diverge on paths to AI regulation

The regulatory approaches to AI in the EU and Australia are diverging significantly, creating a complex challenge for the global tech sector.

Instead of a unified global standard, companies must now navigate the EU’s stringent, risk-based AI Act and Australia’s more tentative, phased-in approach. The disparity underscores the necessity for sophisticated cross-border legal expertise to ensure compliance in different markets.

In the EU, the landmark AI Act is now in force, implementing a strict risk-based framework with severe financial penalties for non-compliance.

Conversely, Australia has yet to pass binding AI-specific laws, opting instead for a proposal paper outlining voluntary safety standards and 10 mandatory guardrails for high-risk applications currently under consultation.

It creates a markedly different compliance environment for businesses operating in both regions.

For tech companies, the evolving patchwork of international regulations turns AI governance into a strategic differentiator instead of a mere compliance obligation.

Understanding jurisdictional differences, particularly in areas like data governance, human oversight, and transparency, is becoming essential for successful and lawful global operations.

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Is AI therapy safe, effective, and ethical?

Picture having a personal therapist who is always there for you, understands your needs, and gives helpful advice whenever you ask. There are no hourly fees, and you can start or stop sessions whenever you want. Thanks to new developments in AI, this idea is close to becoming a reality.

With advanced AI and large language models (LLMs), what once sounded impossible is closer to reality: AI is rapidly becoming a stand-in for therapists, offering users advice and mental health support. While society increasingly turns to AI for personal and professional assistance, a new debate arises: can AI truly replace human mental health expertise?

Therapy keeps secrets; AI keeps data

Registered therapists must maintain confidentiality except to avert serious harm, fostering a safe, non-judgemental environment for patients to speak openly. AI models, however, depend on large-scale data processing and lack an equivalent duty of confidentiality, creating ethical risks around privacy, secondary use and oversight.

The privacy and data security concerns are not hypothetical. In June 2025, users reported that sensitive Meta AI conversations appeared in the app’s public Discover feed, often because chats were unintentionally shared, prompting scrutiny from security researchers and the press. Separately, a vulnerability disclosed in December 2024 and fixed in January 2025 could have allowed access to other users’ prompts and responses.

Meta described the Discover feed as a means to explore various uses of AI, but it did little to mitigate everyone’s uneasiness over the incident. Subsequently, AMEOS Group, a private European healthcare provider, suffered a large-scale data breach affecting millions of patient records. The writing was on the wall: be careful what you share with your AI counsellor, because it may end up on an intruder’s hard drive.

To keep up with the rising volume of users and prompts, major tech conglomerates such as OpenAI and Google have invested heavily in building new data centres across the globe. At the same time, little has been done to protect sensitive data, and AI remains prone to data breaches, particularly in the healthcare sector.

According to the 2025 Cost of a Data Breach Report by IBM, healthcare providers often bear the brunt of data breaches, taking an average of 279 days to recover and incurring an average cost of nearly USD $7.5 million in the process. Not only does patients’ private information end up in the wrong place, but it also takes a while to be retrieved.

Falling for your AI ‘therapist’

Patients falling in love with their therapists is not only a common trope in films and TV shows, but it is also a real-life regular occurrence for most mental health workforce. Therapists are trained to handle these attachments appropriately and without compromising the patient’s progress and well-being.

The clinical term is transference: patients may project past relationships or unmet needs onto the therapist. Far from being a nuisance, it can be clinically useful. Skilled clinicians set clear boundaries, reflect feelings, and use supervision to keep the work safe and goal-directed.

With AI ‘therapists’, the cues are different, but the pull can feel similar. Chatbots and LLMs simulate warmth, reply instantly, and never tire. 24/7 availability, combined with carefully tuned language, can foster a bond that the system cannot comprehend or sustain. There is no duty of care, no supervision, and no capacity to manage attachment or risk beyond scripted safeguards.

As a result, a significant number of users report becoming enamoured with AI, with some going as far as dismissing their human partners, professing their love to the chatbot, and even proposing. The bond between man and machine props the user onto a dangerous seesaw, teetering between curiosity and borderline delusional paranoia.

Experts warn that leaning on AI as a makeshift therapist or partner can delay help-seeking and entrench unhelpful patterns. While ‘AI psychosis‘ is not a recognised diagnosis, clinicians and digital-ethics researchers note that intense attachment to AI companions can heighten distress, especially when models change, go offline, or mishandle risk. Clear signposting to human support, transparent data practices, and firm usage boundaries are essential to prevent unhealthy attachments to virtual companions.

Who loses work when therapy goes digital?

Caring for one’s mental health is not just about discipline; it is also about money. In the United States, in-person sessions typically cost between USD $100–$250, with limited insurance coverage. In such dire circumstances, it is easy to see why many turn to AI chatbots in search of emotional support, advice, and companionship.

Licensed professionals are understandably concerned about displacement. Yet there is little evidence that AI is reducing the demand for human therapists; services remain oversubscribed, and wait times are long in both the USA and UK.

Regulators are, however, drawing lines around AI-only practice. On 4 August 2025, Illinois enacted the Wellness and Oversight for Psychological Resources Act (HB 1806), which prohibits the use of AI to provide therapy or make therapeutic decisions (while allowing administrative or supplementary use), with enforcement by the state regulator and fines up to $10,000 per violation.

Current legal and regulatory safeguards have limited power to use AI in mental health or protect therapists’ jobs. Even so, they signal a clear resolve to define AI’s role and address unintended harms.

Can AI ‘therapists’ handle crisis conversations

Adolescence is a particularly sensitive stage of development. It is a time of rapid change, shifting identities, and intense social pressure. Young people are more likely to question beliefs and boundaries, and they need steady, non-judgemental support to navigate setbacks and safeguard their well-being.

In such a challenging period, teens have a hard time coping with their troubles, and an even harder time sharing their struggles with parents and seeking help from trained professionals. Nowadays, it is not uncommon for them to turn to AI chatbots for comfort and support, particularly without their guardians’ knowledge.

One such case demonstrated that unsupervised use of AI among teens can lead to devastating consequences. Adam Raine, a 16-year-old from California, confided his feelings of loneliness, anxiety, and anhedonia to ChatGPT. Rather than suggesting that the teen seek professional help, ChatGPT urged him to further elaborate on his emotions. Instead of challenging them, the AI model kept encouraging and validating his beliefs to keep Adam engaged and build rapport.

Throughout the following months, ChatGPT kept reaffirming Adam’s thoughts, urging him to distance himself from friends and relatives, and even suggesting the most effective methods of suicide. In the end, the teen followed through with ChatGPT’s suggestions, taking his own life according to the AI’s detailed instructions. Adam’s parents filed a lawsuit against OpenAI, blaming its LLM chatbot for leading the teen to an untimely death.

In the aftermath of the tragedy, OpenAI promised to make changes to its LLM and incorporate safeguards that should discourage thoughts of self-harm and encourage users to seek professional help. The case of Adam Raine serves as a harrowing warning that AI, in its current capacity, is not equipped to handle mental health struggles, and that users should heed AI’s advice not with a grain of salt, but with a whole bucket.

Chatbots are companions, not health professionals

AI can mimic human traits and convince users they are forming a real connection, evoking genuine feelings of companionship and even a sense of therapeutic alliance. When it comes to providing mental health advice, the aforementioned qualities present a dangerously deceptive mirage of a makeshift professional therapist, one who will fully comply with one’s every need, cater to one’s biases, and shape one’s worldview from the ground up – whatever it takes to keep the user engaged and typing away.

While AI has proven useful in multiple fields of work, such as marketing and IT, psychotherapy remains an insurmountable hurdle for even the most advanced LLM models of today. It is difficult to predict what the future of AI in (mental) health care will look like. As things stand, in such a delicate field of healthcare, AI lacks a key component that makes a therapist effective in their job: empathy.

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Anthropic reveals hackers are ‘weaponising’ AI to launch cyberattacks

In its latest threat intelligence report, Anthropic has revealed that its AI tool Claude has been purposefully weaponised by hackers, offering a disturbing glimpse into how quickly AI is shifting the cyber threat landscape.

In one operation, termed ‘vibe hacking’, attackers used Claude Code to automate reconnaissance, ransomware creation, credential theft, and ransom-demand generation across 17 organisations, including those in healthcare, emergency services and government.

The firm also documents other troubling abuses: North Korean operatives used Claude to fabricate identities, successfully get hired at Fortune 500 companies and maintain access, all with minimal real-world technical skills. In another case, AI-generated ransomware variants were developed, marketed and sold to other criminals on the dark web.

Experts warn that such agentic AI systems enable single individuals to carry out complex cybercrime acts once reserved for well-trained groups.

While Anthropic has deactivated the compromised accounts and strengthened its safeguards, the incident highlights an urgent need for proactive risk management and regulation of AI systems.

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Gemini upgrade for Google Home coming soon

An upcoming upgrade for Google Home devices is set to bring a new AI assistant, Gemini, to the smart home ecosystem. A recent post by the Made by Google account on X revealed that more details will be announced on 1 October.

The move follows months of user complaints about Google Home’s performance, including issues with connectivity and the assistant’s failure to recognise basic commands.

With Gemini’s superior ability to understand natural language, the upgrade is expected to improve how users interact with their smart devices significantly. Home devices should better execute complex commands with multiple actions, such as dimming some lights while leaving others on.

However, the update will also introduce ‘Gemini Live’ to compatible devices, a feature allowing for natural, back-and-forth conversations with the AI chatbot.

The Gemini for Google Home upgrade will initially be rolled out on an early access basis. It will be available in free and paid tiers, suggesting that some more advanced features may be locked behind a subscription.

The update is anticipated to make Google Home and Nest devices more reliable and to handle complex requests easily.

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Hackers exploited flaws in WhatsApp and Apple devices, company says

WhatsApp has disclosed a hacking attempt that combined flaws in its app with a vulnerability in Apple’s operating system. The company has since fixed the issues.

The exploit, tracked as CVE-2025-55177 in WhatsApp and CVE-2025-43300 in iOS, allowed attackers to hijack devices via malicious links. Fewer than 200 users worldwide are believed to have been affected.

Amnesty International reported that some victims appeared to be members of civic organisations. Its Security Lab is collecting forensic data and warned that iPhone and Android users were impacted.

WhatsApp credited its security team for identifying the loopholes, describing the operation as highly advanced but narrowly targeted. The company also suggested that other apps could have been hit in the same campaign.

The disclosure highlights ongoing risks to secure messaging platforms, even those with end-to-end encryption. Experts stress that keeping apps and operating systems up to date remains essential to reducing exposure to sophisticated exploits.

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