Critical infrastructure

IMF calls for stronger AI regulation in global securities markets

Regulators worldwide are being urged to adopt stronger oversight frameworks for AI in capital markets after an IMF technical note warned that rapid AI adoption could reshape securities trading while increasing systemic risk.

AI brings major efficiency gains in asset management and high-frequency trading instead of slower, human-led processes, yet opacity, market volatility, cyber threats and model concentration remain significant concerns.

The IMF warns that AI could create powerful data oligopolies where only a few firms can train the strongest models, while autonomous trading agents may unintentionally collude by widening spreads without explicit coordination.

Retail investors also face rising exposure to AI washing, where financial firms exaggerate or misrepresent AI capability, making transparency, accountability and human-in-the-loop review essential safeguards.

Supervisory authorities are encouraged to scale their own AI capacity through SupTech tools for automated surveillance and social-media sentiment monitoring.

The note highlights India as a key case study, given the dominance of algorithmic trading and SEBI’s early reporting requirements for AI and machine learning. The IMF also points to the National Stock Exchange’s use of AI in fraud detection as an emerging-market model for resilient monitoring infrastructure.

The report underlines the need for regulators to prepare for AI-driven market shocks, strengthen governance obligations on regulated entities and build specialist teams capable of understanding model risk instead of reacting only after misconduct or misinformation harms investors.

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Agentic AI, digital twins, and intelligent wearables reshape security operations in 2026

Operational success in security technology is increasingly being judged through measurable performance rather than early-stage novelty.

As 2026 approaches, Agentic AI, digital twins and intelligent wearables are moving from research concepts into everyday operational roles, reshaping how security functions are designed and delivered.

Agentic AI is no longer limited to demonstrations. Instead of simple automation, autonomous agents now analyse video feeds, access data and sensor logs to investigate incidents and propose mitigation steps for human approval.

Adoption is accelerating worldwide, particularly in Singapore, where most business leaders already view Agentic AI as essential for maintaining competitiveness. The technology is becoming embedded in workflows rather than used as an experimental add-on.

Digital twins are also reaching maturity. Instead of being static models, they now mirror complex environments such as ports, airports and high-rise estates, allowing organisations to simulate emergencies, plan resource deployment, and optimise systems in real time.

Wearables and AR tools are undergoing a similar shift, acting as intelligent companions that interpret the environment and provide timely guidance, rather than operating as passive recording devices.

The direction of travel is clear. Security work is becoming more predictive, interconnected and immersive.

Organisations most likely to benefit are those that prioritise integration, simulation and augmentation, while measuring outcomes through KPIs such as response speed, false-positive reduction and decision confidence instead of chasing technological novelty.

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Small businesses battle rising cyber attacks in the US

Many small businesses in the US are facing a sharp rise in cyber attacks, yet large numbers still try to manage the risk on their own.

A recent survey by Guardz found that more than four in ten SMBs have already experienced a cyber incident, while most owners believe the overall threat level is continuing to increase.

Rather than relying on specialist teams, over half of small businesses still leave critical cybersecurity tasks to untrained staff or the owner. Only a minority have a formal incident response plan created with a cybersecurity professional, and more than a quarter do not carry cyber insurance.

Phishing, ransomware and simple employee mistakes remain the most common dangers, with negligence seen as the biggest internal risk.

Recovery times are improving, with most affected firms able to return to normal operations quickly and very few suffering lasting damage.

However, many still fail to conduct routine security assessments, and outdated technology remains a widespread concern. Some SMBs are increasing cybersecurity budgets, yet a significant share still spend very little or do not know how much is being invested.

More small firms are now turning to managed service providers instead of trying to cope alone.

The findings suggest that preparation, professional support and clearly defined response plans can greatly improve resilience, helping organisations reduce disruption and maintain business continuity when an attack occurs.

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Nomani investment scam spreads across social media

Fraudulent investment platform Nomani has surged, spreading from Facebook to YouTube. ESET blocked tens of thousands of malicious links this year, mainly in Czech Republic, Japan, Slovakia, Spain, and Poland.

The scam utilises AI-generated videos, branded posts, and social media advertisements to lure victims into fake investments that promise high returns. Criminals then request extra fees or sensitive personal data, and often attempt a secondary scam posing as Europol or INTERPOL.

Recent improvements make Nomani’s AI videos more realistic, using trending news or public figures to appear credible. Campaigns run briefly and misuse social media forms and surveys to harvest information while avoiding detection.

Despite overall growth, detections fell 37% in the second half of 2025, suggesting that scammers are adapting to more stringent law enforcement measures. Meta’s ad platforms earned billions from scams, demonstrating the global reach of Nomani fraud.

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South Korea tightens ID checks with facial verification for phone accounts

Mandatory facial verification will be introduced in South Korea for anyone opening a new mobile phone account, as authorities try to limit identity fraud.

Officials said criminals have been using stolen personal details to set up phone numbers that later support scams such as voice phishing instead of legitimate services.

Major mobile carriers, including LG Uplus, Korea Telecom and SK Telecom, will validate users by matching their faces against biometric data stored in the PASS digital identity app.

Such a requirement expands the country’s identity checks rather than replacing them outright, and is intended to make it harder for fraud rings to exploit stolen data at scale.

The measure follows a difficult year for data security in South Korea, marked by cyber incidents affecting more than half the population.

SK Telecom reported a breach involving all 23 million of its customers and now faces more than $1.5 billion in penalties and compensation.

Regulators also revealed that mobile virtual network operators were linked to 92% of counterfeit phones uncovered in 2024, strengthening the government’s case for tougher identity controls.

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Romania investigates large scale cyber attack on national water body

Authorities in Romania have confirmed a severe ransomware attack on the national water administration ‘Apele Române’, which encrypted around 1,000 IT systems across most regional water basin offices.

Attackers used Microsoft’s BitLocker tool to lock files and then issued a ransom note demanding contact within seven days, although cybersecurity officials continue to reject any negotiation with criminals.

The disruption affected email systems, databases, servers and workstations instead of operational technology, meaning hydrotechnical structures and critical water management systems continued to function safely.

Staff coordinated activity by radio and telephone, and flood defence operations remained in normal working order while investigations and recovery progressed.

National cyber agencies, including the National Directorate of Cyber Security and the Romanian Intelligence Service’s cyber centre, are now restoring systems and moving to include water infrastructure within the state cyber protection framework.

The case underlines how ransomware groups increasingly target essential utilities rather than only private companies, making resilience and identity controls a strategic priority.

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South Korea plans huge fines for major data breaches

Prime Minister Kim Min-seok has called for punitive fines of up to 10 percent of company sales for repeated and serious data breaches, as public anger grows over large-scale leaks.

The government is seeking swift legislation to impose stronger sanctions on firms that fail to safeguard personal data, reflecting President Lee Jae Myung’s stance that violations require firm penalties instead of lenient warnings.

Kim said corporate responses to recent breaches had fallen far short of public expectations and stressed that companies must take full responsibility for protecting customer information.

Under the proposed framework, affected individuals would receive clearer notifications that include guidance on their rights to seek damages.

The government of South Korea also plans to strengthen investigative powers through coercive fines for noncompliance, while pursuing rapid reforms aimed at preventing further harm.

The tougher line follows a series of major incidents, including a leak at Shinhan Card that affected around 190,000 merchant records and a large-scale breach at Coupang that exposed the data of 33.7 million users.

Officials have described the Coupang breach as a serious social crisis that has eroded public trust.

Authorities have launched an interagency task force to identify responsibility and ensure tighter data protection across South Korea’s digital economy instead of relying on voluntary company action.

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AI growth changes the cycle for memory chip manufacturers

The growing demand for AI is reshaping the fortunes of the memory chip industry, according to leading manufacturers, who argue that the scale of AI investment is altering the sector’s typical boom-and-bust pattern.

The technology is creating more structural demand, rather than the sharp cyclical spikes that previously defined the market.

AI workloads depend heavily on robust memory systems, particularly as companies expand data centre capacity worldwide. Major chipmakers now expect steadier growth because AI models require vast data handling rather than one-off hardware surges.

Analysts suggest it could reduce the volatility that has often led to painful downturns for the industry.

Additionally, some reports claim that Japanese technology group Rakuten is prioritising low-cost AI development to improve profitability across its businesses.

Its AI leadership stresses the need to deploy systems that maximise margins instead of simply chasing capability for its own sake.

The developments underscore how AI is not only transforming software and services but also reshaping the economics of the hardware required to power them, from memory chips to cloud infrastructure on a global scale.

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5G network slicing strengthens Madrid emergency communications

Madrid has strengthened emergency response capabilities through a new collaboration between Orange and Ericsson, integrating a dedicated slice within Orange’s 5G Standalone network.

Advanced radio access and core technologies allow emergency teams to operate on prioritised connectivity during high network demand.

Police, fire and medical services benefit from guaranteed bandwidth and low-latency communications, ensuring uninterrupted coordination during incidents.

The infrastructure by Ericsson enables dynamic switching between public 5G and emergency spectrum, supporting rapid deployment when physical networks are compromised.

Resilience remains central to the design, with autonomous power systems and redundancy maintaining operations during outages. Live video transmission from firefighters’ helmets illustrates how real time data improves risk assessment and decision making on the ground.

By combining telecom innovation with public safety needs, the initiative reinforces Madrid’s role in the emergency communications leadership of the EU and demonstrates how 5G can support critical services at scale.

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University of Phoenix breach exposes millions in major Oracle attack

Almost 3.5 million students, staff and suppliers linked to the University of Phoenix have been affected by a data breach tied to a sophisticated cyber extortion campaign. The incident followed unauthorised access to internal systems, exposing highly sensitive personal and financial information.

Investigations indicate attackers exploited a zero-day vulnerability in Oracle E-Business Suite, a widely used enterprise financial application. The breach surfaced publicly after the Clop ransomware group listed the university on its leak site, prompting internal reviews and regulatory disclosures.

Compromised data includes names, contact details, dates of birth, social security numbers and banking information. University officials have confirmed that affected individuals are being notified, while filings with US regulators outline the scale and nature of the incident.

The attack forms part of a broader wave of intrusions targeting American universities and organisations using Oracle platforms. As authorities offer rewards for intelligence on Clop’s operations, the breach highlights growing risks facing educational institutions operating complex digital infrastructures.

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