Cybercrime Archives | Digital Watch Observatory

EU and Mexico strengthen cooperation against crypto-related money laundering

Mexico and the European Union have agreed to expand cooperation on addressing money laundering involving cryptocurrencies and digital assets. The announcement was made during the 8th EU-Mexico summit, where both sides also advanced discussions on a modernised trade agreement.

Officials highlighted concerns regarding the use of digital assets in cross-border illicit financial activities linked to organised crime. The discussions focused on improving coordination related to identifying and disrupting suspected illicit financial flows.

The cooperation forms part of broader EU-Mexico engagement covering trade, investment, security, and digital policy. Both parties said they intend to continue dialogue and cooperation on evolving financial crime risks linked to the digital economy.

Why does it matter?

The agreement reflects a broader shift towards coordinated international enforcement against crypto-enabled financial crime, where illicit flows are increasingly moving across multiple jurisdictions with limited friction.

Strengthened cooperation between major regions like the EU and Mexico is intended to reduce enforcement gaps that criminal networks have been able to exploit.

It also signals how digital assets are becoming a central focus in global security and trade diplomacy, not just financial regulation. By linking anti-money laundering efforts with wider economic and strategic agreements, both sides are treating crypto-related crime as part of the broader challenge of safeguarding the integrity of the digital financial system.

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United Kingdom and Australia tighten alliance on AI security risks

The United Kingdom and Australia are deepening cooperation on AI security through a new partnership between the UK AI Security Institute and the Australian AI Safety Institute.

Under a Memorandum of Understanding, the two institutes will share information on frontier AI capabilities, collaborate on AI evaluation practices and exchange research findings. The UK government said the partnership will focus partly on how advanced AI systems could be used in cyberattacks, as well as how they can strengthen defensive capabilities.

The agreement will also support staff exchanges between the two institutes, strengthening day-to-day collaboration. UK officials said the partnership reflects the need for trusted international cooperation as AI systems evolve quickly and create new security and safety risks.

The UK’s AI Minister Kanishka Narayan is expected to sign the agreement with Australia’s Assistant Minister for Science, Technology and the Digital Economy, Andrew Charlton, during a meeting in Canberra. Narayan said no country can address fast-moving AI risks alone, particularly in cybersecurity.

The announcement follows research from the UK AI Security Institute showing that advanced AI systems are rapidly improving their ability to carry out complex cyberattacks, creating opportunities for both attackers and defenders. The UK said the institute’s frontier AI research continues to inform policymaking to protect businesses, critical infrastructure, and the public.

Why does it matter?

The partnership shows how AI security is becoming a matter of international coordination, especially as frontier models develop stronger cyber capabilities. By sharing research, evaluation methods and staff expertise, the UK and Australia are trying to reduce blind spots in oversight and develop more consistent approaches to testing fast-moving AI systems.

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Europol concludes major operation targeting criminal assets and crypto laundering

Europol has concluded the third operational phase of Project A.S.S.E.T., an international initiative focused on criminal asset tracing and money laundering investigations.

The operational phase took place between 19 and 22 May 2026 at Europol headquarters in The Hague and involved law enforcement agencies from 31 countries. More than 40 law enforcement agencies participated, including Asset Recovery Offices, Financial Intelligence Units, and specialised anti-money laundering teams from 31 countries.

The initiative also involved cooperation with Eurojust, INTERPOL, the European Public Prosecutor’s Office, and private-sector financial and cryptocurrency partners.

According to Europol, investigators identified bank accounts, cryptocurrency wallets, companies, vehicles, and real estate assets allegedly linked to criminal activities. Authorities additionally located two suspected criminals, with one arrested through the European Network of Fugitive Active Search Teams.

Europol said the operation generated intelligence related to emerging money laundering techniques and cross-border financial structures associated with organised crime networks. Investigators also reported identifying operational patterns involving cryptocurrencies and international asset concealment practices.

The operation followed an earlier cryptocurrency-focused enforcement phase conducted in October 2025.

European Commissioner for Internal Affairs and Migration Magnus Brunner said online fraud and crypto-related crime have become increasingly significant revenue sources for organised criminal groups. Europol officials additionally emphasised that international cooperation and financial intelligence increasingly play a central role in disrupting organised crime ecosystems and recovering illicit proceeds.

Europol said investigations are ongoing and that the full value of identified assets remains under assessment. Follow-up investigations are continuing across participating jurisdictions.

Why does it matter?

The operation reflects growing international focus on financial intelligence, cryptocurrency tracing, and cross-border asset recovery as organised crime groups increasingly rely on digital financial infrastructures. Furthermore, it demonstrates how law enforcement agencies and private-sector financial actors are strengthening cooperation to combat money laundering, online fraud, and illicit cryptocurrency operations across multiple jurisdictions simultaneously.

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CNIL reports record complaints and data breaches

The French data protection authority CNIL reported a record year in 2025 for complaints, fines and data breach notifications, while preparing for new responsibilities under the EU AI Act.

CNIL received 20,150 complaints in 2025, up 10% from 2024. The complaints covered issues linked to work, commerce, real estate, social networks and data breaches, with around 1,900 complaints directly concerning breaches.

The authority also received 6,167 data breach notifications, an increase of 9.5% from 2024. Hacking accounted for one in two reported incidents, while cybersecurity failures represented one-third of investigations and nearly 30% of sanctions.

In total, CNIL carried out 323 investigations and issued 259 corrective measures, including 83 sanctions worth nearly €487 million. Two major sanctions accounted for a large share of the total, while the simplified procedure introduced in 2022 allowed faster action in less complex cases.

Cybersecurity will become an even bigger enforcement focus in 2026, with CNIL planning to devote 50% of its controls and enforcement actions to data security. Checks will focus on organisations affected by breaches, those subject to complaints and sectors processing large volumes of sensitive or highly personal data.

The report also highlights CNIL’s role in supporting professionals and public authorities. In 2025, it processed 539 health authorisation applications, handled 1,351 professional advice requests, delivered 90 opinions on draft laws or regulatory texts and launched seven public consultations.

On AI, CNIL is already designated to monitor prohibited uses under the EU AI Act and is expected to become the market surveillance authority for certain high-risk AI systems, including in biometrics, migration, law enforcement, employment and education.

The authority also published AI resources for designers and developers, developed a traceability tool for open-source AI models and joined the PANAME project with ANSSI, Inria and PEReN to test whether AI models process personal data.

Why does it matter?

CNIL’s annual report shows how data protection enforcement is increasingly shaped by cybersecurity and AI. Record breach notifications and complaints point to growing pressure on organisations to secure personal data, while CNIL’s future AI Act responsibilities place the authority at the centre of France’s oversight of prohibited and high-risk AI systems.

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Myanmar proposes Anti-Online Fraud Bill targeting digital currency scams

Myanmar’s military-backed authorities have proposed a new Anti-Online Fraud Bill to tackle digital currency scams and online fraud networks operating in the country.

The draft legislation would introduce severe penalties for offences linked to online fraud and ‘digital currency fraud’. Reports citing the text say those convicted could face prison sentences ranging from 10 years to life imprisonment.

The bill also proposes the death penalty in the most serious cases involving online scam centres, particularly where people are unlawfully detained, violently coerced or forced into scam operations. AFP, cited by Malay Mail, reported that the proposed penalty would apply to those who detain or violently coerce victims into working in online scam centres.

The proposal reflects growing pressure on Myanmar over large scam compounds where trafficked people have reportedly been forced into online fraud schemes, including romance and cryptocurrency scams. International scrutiny has intensified as cyber-fraud networks across Southeast Asia continue to target victims globally.

Myanmar’s authorities have presented online fraud and online gambling as national security concerns. State media has previously reported crackdowns, deportations and plans for a national anti-scam centre, while also describing telecom fraud and online gambling as threats requiring stronger enforcement.

The bill comes amid wider regional action against transnational scam networks. China has pursued criminal cases linked to Myanmar-based fraud syndicates, while international organisations and law enforcement agencies have warned that online scam compounds combine cybercrime, financial fraud and human trafficking.

Why does it matter?

The proposed bill shows how governments are escalating responses to transnational online fraud networks, particularly where crypto scams overlap with human trafficking and forced labour in scam compounds. Myanmar’s approach would mark a shift towards extreme punitive measures, raising both enforcement and human rights concerns, while highlighting how digital fraud has become a cross-border security issue involving organised crime, financial losses and exploitation of vulnerable people.

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Claude Mythos AI model triggers global cyber risk review

Anthropic’s Claude Mythos Preview has drawn attention from financial regulators after the UK AI Security Institute found a notable increase in the model’s cybersecurity capabilities, including stronger performance on multi-step cyber-attack simulations.

AISI said earlier that its evaluation found continued improvement in capture-the-flag challenges and significant improvement in multi-step cyber-attack simulations. The institute said Mythos completed a previously unsolved 32-step simulated corporate network attack, marking the first time one of its tested models had completed that scenario.

Anthropic has also published its own technical assessment of Claude Mythos Preview, describing the model as a general-purpose system with advanced cybersecurity capabilities. The company has limited access to the model, reflecting concerns about the dual-use nature of systems that can support vulnerability discovery and cyber operations.

According to media reports, Anthropic is expected to brief the Financial Stability Board on the cybersecurity implications of Claude Mythos, as regulators examine whether frontier AI models could create new risks for banks and other financial institutions. The reports said the model has not been made publicly available because of concerns that its capabilities could be misused.

The scrutiny comes as financial authorities pay closer attention to the links between AI, cyber resilience and systemic risk. Advanced AI models support defenders by helping identify vulnerabilities and improve security testing, but similar capabilities could also lower the cost and complexity of offensive cyber activity.

Some experts have cautioned against treating Mythos as a wholly new category of threat, arguing that it amplifies existing cyber risks rather than replacing them. Weak authentication, unpatched systems and poor cyber hygiene remain central causes of breaches, making baseline resilience and governance critical as AI capabilities advance.

Why does it matter?

Claude Mythos shows how frontier AI models can become dual-use infrastructure: useful for strengthening cyber defence, but potentially risky if similar capabilities are misused. For financial institutions, the issue is systemic. If advanced models can accelerate vulnerability discovery or cyber operations across interconnected organisations, regulators may need to treat AI model oversight as part of financial stability and cyber resilience planning.

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Interpol warns AI is increasing scale and accessibility of cybercrime

Interpol said AI tools are changing cybercrime operations by lowering technical barriers and enabling broader use of online fraud techniques. Interpol Cybercrime Director Neal Jetton said AI tools, including chatbots and automated phishing services, can enable individuals with limited technical expertise to conduct online scams.

According to Interpol, phishing-as-a-service models and AI-generated content are contributing to more scalable fraud campaigns.

Interpol said organised criminal groups are increasingly using outsourced technical services and AI-supported tools in cyber-enabled fraud operations. Law enforcement officials said AI-enabled fraud may increase the scale and profitability of some cybercrime activities.

Interpol said international law enforcement cooperation is expanding in response to cross-border fraud networks and evolving cyber threats. Authorities are focusing on disrupting cross-border fraud infrastructure and strengthening national cyber capabilities as AI-driven threats continue to evolve.

Why does it matter?

AI is effectively industrialising cybercrime by reducing the skill threshold required to execute sophisticated fraud at scale. That shift expands the pool of potential attackers and increases the speed, volume, and personalisation of scams, placing sustained pressure on digital trust in financial, governmental, and communication systems.

At the same time, it forces law enforcement and cybersecurity frameworks to adapt from reactive investigation models to more proactive, intelligence-led, and cross-border coordination mechanisms to keep pace with rapidly evolving threat capabilities.

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ICO warns organisations about growing AI cyber threats

The UK Information Commissioner’s Office has warned that AI is enabling faster, more advanced and harder-to-detect cyberattacks, urging organisations to strengthen their defences against emerging threats.

In a blog post, the regulator highlighted risks such as AI-generated phishing emails, deepfake social engineering, automated vulnerability scanning, AI-powered malware, credential attacks, data poisoning and indirect prompt injection. The ICO said cybersecurity must be treated as a shared responsibility, with organisations expected to take proactive steps to protect the personal data they hold.

The ICO said strong foundational security measures remain essential, but should be reinforced with layered defences to counter AI-powered threats. It pointed to practical steps such as patching systems, restricting access through multi-factor authentication, applying least-privilege principles and managing supplier risks.

The recommendations also include monitoring systems for unusual activity, carrying out vulnerability scanning and penetration testing, and maintaining regularly tested incident response plans. The ICO said AI can also support cyber defence, but should operate within a clear framework of human oversight and accountability.

Organisations are further advised to minimise data collection, conduct regular data audits and train staff to recognise AI-powered social engineering attacks. The ICO said AI tools processing high-risk personal data should be supported by data protection impact assessments and appropriate safeguards.

Why does it matter?

The ICO’s warning links AI-powered cyber threats directly to data protection obligations. As attackers use AI to scale phishing, exploit vulnerabilities and impersonate trusted contacts, organisations are expected not only to improve technical security, but also to limit the personal data they hold, strengthen governance and prepare for faster-moving incidents.

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Google outlines AI-driven measures against online scams and fraud

Google has outlined new and existing measures to tackle online scams and fraud ahead of the second EMEA Anti-Scams and Fraud Summit, hosted by the Google Safety Engineering Centre in Zurich.

The company said the summit brings together representatives from governments, technology companies, consumer groups and academia to discuss collective responses to increasingly sophisticated scams. Google said its approach combines AI-driven protections across its products with wider cooperation involving industry and public authorities.

Google highlighted the use of AI-powered systems in services including Gmail, Chrome, Search, Ads and Phone by Google. The company said Gmail blocks more than 99.9% of spam, phishing and malware, while Search filters out hundreds of millions of spam-related pages daily. It also said its systems caught more than 99% of policy-violating ads before they reached users in 2025.

User-facing tools are also part of the company’s anti-scam strategy. Google pointed to Security Checkup, Passkeys, 2-Step Verification, Circle to Search and Google Lens as tools that can help users strengthen account protection and verify suspicious messages or content.

The company also highlighted public awareness and education initiatives, including Be Scam Ready, a game-based programme that uses simulated scam scenarios to help users recognise common tactics. Google said a previous Google.org commitment of $5 million is supporting anti-scam initiatives in Europe and the Middle East, including work by the Internet Society and Oxford Information Labs.

Google also referred to cooperation through the Global Signal Exchange, a threat-intelligence sharing platform for scams and fraud. As a founding partner, Google said it both contributes to and draws from the platform, which now stores more than 1.2 billion signals used to identify and disrupt criminal activity.

The company said it also works with law enforcement agencies, including the UK’s National Crime Agency, and participates in the Industry Accord Against Online Scams and Fraud. Google also pointed to legal actions against scam operations and botnets, including cases involving Lighthouse and BadBox.

Why does it matter?

Online scams are increasingly industrialised, cross-platform and supported by AI-enabled tactics, making them difficult to address through product-level security alone. Google’s approach shows how major technology companies are combining automated detection, user education, threat-intelligence sharing and law enforcement cooperation to respond to fraud. The wider policy issue is how much responsibility large platforms should bear for detecting and disrupting scams before they reach users.

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Poland launches campaign to boost business cybersecurity awareness

Poland’s Ministry of Digital Affairs has launched a campaign to encourage entrepreneurs and management teams to take a more active role in protecting their companies from cyber threats.

The campaign, titled ‘Build your company’s digital security click by click’, is aimed at businesses and senior decision-makers. The ministry says its main goal is to encourage firms to address cybersecurity at both organisational and operational levels.

The campaign stresses that cybersecurity is no longer solely the responsibility of IT departments but is a key part of responsible business management. The ministry points to growing risks such as phishing and ransomware as digital technology becomes central to company operations.

According to the ministry, effective cybersecurity depends on three pillars: knowledge, processes and people. The campaign encourages firms to analyse risks, develop incident response procedures, train employees regularly and use official guidance available through cyber.gov.pl.

A separate focus is placed on medium-sized and large companies subject to requirements under Poland’s national cybersecurity system. The ministry says firms in key sectors should understand obligations related to risk management, incident reporting and the protection of information systems.

The campaign also calls on company leaders to integrate cybersecurity into business strategy, including through security policies, investment in skills and the development of a culture of responsibility across organisations.

Why does it matter?

The campaign reflects a broader shift in cybersecurity policy from technical protection towards organisational responsibility. By targeting business leaders, Poland is emphasising that cyber resilience depends not only on tools, but also on governance, staff training, incident response and compliance with national cybersecurity obligations.

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