Government IT vulnerabilities revealed by UK public sector cyberattack

A UK public sector cyberattack on Kensington and Chelsea Council has exposed the growing vulnerability of government organisations to data breaches. The council stated that personal details linked to hundreds of thousands of residents may have been compromised after attackers targeted the shared IT infrastructure.

Security experts warn that interconnected systems, while cost-efficient, create systemic risks. Dray Agha, senior manager of security operations at Huntress, said a single breach can quickly spread across partner organisations, disrupting essential services and exposing sensitive information.

Public sector bodies remain attractive targets due to ageing infrastructure and the volume of personal data they hold. Records such as names, addresses, national ID numbers, health information, and login credentials can be exploited for fraud, identity theft, and large-scale scams.

Gregg Hardie, public sector regional vice president at SailPoint, noted that attackers often employ simple, high-volume tactics rather than sophisticated techniques. Compromised credentials allow criminals to blend into regular activity and remain undetected for long periods before launching disruptive attacks.

Hardie said stronger identity security and continuous monitoring are essential to prevent minor intrusions from escalating. Investing in resilient, segmented systems could help reduce the impact of future UK public sector cyberattack incidents and protect critical operations.

Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our Diplo chatbot!

One-click vulnerability in Telegram bypasses VPN and proxy protection

A newly identified vulnerability in Telegram’s mobile apps allows attackers to reveal users’ real IP addresses with a single click. The flaw, known as a ‘one-click IP leak’, can expose location and network details even when VPNs or proxies are enabled.

The issue comes from Telegram’s automatic proxy testing process. When a user clicks a disguised proxy link, the app initiates a direct connection request that bypasses all privacy protections and reveals the device’s real IP address.

Cybersecurity researcher @0x6rss demonstrated an attack on X, showing that a single click is enough to log a victim’s real IP address. The request behaves similarly to known Windows NTLM leaks, where background authentication attempts expose identifying information without explicit user consent.

Attackers can embed malicious proxy links in chats or channels, masking them as standard usernames. Once clicked, Telegram silently runs the proxy test, bypasses VPN or SOCKS5 protections, and sends the device’s real IP address to the attacker’s server, enabling tracking, surveillance, or doxxing.

Both Android and iOS versions are affected, putting millions of privacy-focused users at risk. Researchers recommend avoiding unknown links, turning off automatic proxy detection where possible, and using firewall tools to block outbound proxy tests. Telegram has not publicly confirmed a fix.

Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our Diplo chatbot!

Betterment confirms data breach after social engineering attack

Fintech investment platform Betterment has confirmed a data breach after hackers gained unauthorised access to parts of its internal systems and exposed personal customer information.

The incident occurred on 9 January and involved a social engineering attack connected to third-party platforms used for marketing and operational purposes.

The company said the compromised data included customer names, email and postal addresses, phone numbers and dates of birth.

No passwords or account login credentials were accessed, according to Betterment, which stressed that customer investment accounts were not breached.

Using the limited system access, attackers sent fraudulent notifications to some users promoting a crypto-related scam.

Customers were advised to ignore the messages instead of engaging with the request, while Betterment moved quickly to revoke the unauthorised access and begin a formal investigation with external cybersecurity support.

Betterment has not disclosed how many users were affected and has yet to provide further technical details. Representatives did not respond to requests for comment at the time of publication, while the company said outreach to impacted customers remains ongoing.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Australia raises concerns over AI misuse on X

The eSafety regulator in Australia has expressed concern over the misuse of the generative AI system Grok on social media platform X, following reports involving sexualised or exploitative content, particularly affecting children.

Although overall report numbers remain low, authorities in Australia have observed a recent increase over the past weeks.

The regulator confirmed that enforcement powers under the Online Safety Act remain available where content meets defined legal thresholds.

X and other services are subject to systemic obligations requiring the detection and removal of child sexual exploitation material, alongside broader industry codes and safety standards.

eSafety has formally requested further information from X regarding safeguards designed to prevent misuse of generative AI features and to ensure compliance with existing obligations.

Previous enforcement actions taken in 2025 against similar AI services resulted in their withdrawal from the Australian market.

Additional mandatory safety codes will take effect in March 2026, introducing new obligations for AI services to limit children’s exposure to sexually explicit, violent and self-harm-related material.

Authorities emphasised the importance of Safety by Design measures and continued international cooperation among online safety regulators.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Patients notified months after Canopy Healthcare cyber incident

Canopy Healthcare, one of New Zealand’s largest private medical oncology providers, has disclosed a data breach affecting patient and staff information, six months after the incident occurred.

The company said an unauthorised party accessed part of its administration systems on 18 July 2025, copying a ‘small’ amount of data. Affected information may include patient records, passport details, and some bank account numbers.

Canopy said it remains unclear exactly which individuals were impacted and what data was taken, adding that no evidence has emerged of the information being shared or published online.

Patients began receiving notifications in December 2025, prompting criticism over the delay. One affected patient said they were unhappy to learn about the breach months after it happened.

The New Zealand company said it notified police and the Privacy Commissioner at the time, secured a High Court injunction to prevent misuse of the data, and confirmed that its medical services continue to operate normally.

Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our Diplo chatbot!

India mandates live identity checks for crypto users

India’s Financial Intelligence Unit has tightened crypto compliance, requiring live identity checks, location verification, and stronger Client Due Diligence. The measures aim to prevent money laundering, terrorist financing, and misuse of digital asset services.

Crypto platforms must now collect multiple identifiers from users, including IP addresses, device IDs, wallet addresses, transaction hashes, and timestamps.

Verification also requires users to provide a Permanent Account Number and a secondary ID, such as a passport, Aadhaar, or voter ID, alongside OTP confirmation for email and phone numbers.

Bank accounts must be validated via a penny-drop mechanism to confirm ownership and operational status.

Enhanced due diligence will apply to high-risk transactions and relationships, particularly those involving users from designated high-risk jurisdictions and tax havens. Platforms must monitor red flags and apply extra scrutiny to comply with the new guidelines.

Industry experts have welcomed the updated rules, describing them as a positive step for India’s crypto ecosystem. The measures are viewed as enhancing transparency, protecting users, and aligning the sector with global anti-money laundering standards.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot

Indonesia and Malaysia restrict access to Grok AI over content safeguards

Malaysia and Indonesia have restricted access to Grok, the AI chatbot available through the X platform, following concerns about its image generation capabilities.

Authorities said the tool had been used to create manipulated images depicting real individuals in sexually explicit contexts.

Regulatory bodies in Malaysia and Indonesia stated that the decision was based on the absence of sufficient safeguards to prevent misuse.

Requests for additional risk mitigation measures were communicated to the platform operator, with access expected to remain limited until further protections are introduced.

The move has drawn attention from regulators in other regions, where online safety frameworks allow intervention when digital services fail to address harmful content. Discussions have focused on platform responsibility, content moderation standards, and compliance with existing legal obligations.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Instagram responds to claims of user data exposure

Reports published by cybersecurity researchers indicated that data linked to approximately 17.5 million Instagram accounts has been offered for sale on underground forums.

The dataset reportedly includes usernames, contact details and physical address information, raising broader concerns around digital privacy and data aggregation.

A few hours later, Instagram responded by stating that no breach of internal systems occurred. According to the company, some users received password reset emails after an external party abused a feature that has since been addressed.

The platform said affected accounts remained secure, with no unauthorised access recorded.

Security analysts have noted that risks arise when online identifiers are combined with external datasets, rather than originating from a single platform.

Such aggregation can increase exposure to targeted fraud, impersonation and harassment, reinforcing the importance of cautious digital security practices across social media ecosystems.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Tether and UN join to boost digital security in Africa

Tether has joined the UN Office on Drugs and Crime to enhance cybersecurity and digital asset education across Africa. The collaboration aims to reduce vulnerabilities to cybercrime and safeguard communities against online scams and fraud.

Africa, emerging as the third-fastest-growing crypto region, faces increasing threats from digital asset fraud. A recent Interpol operation uncovered $260 million in illicit crypto and fiat across Africa, highlighting the urgent need for stronger digital security.

The partnership includes several key initiatives. In Senegal, youth will participate in a multi-phase cybersecurity education programme featuring boot camps, mentorship, and micro-grants to support innovative projects.

Civil society organisations across Africa will receive funding to support human trafficking victims in Nigeria, DRC, Malawi, Ethiopia, and Uganda. In Papua New Guinea, universities will host competitions to promote financial inclusion and prevent digital asset fraud using blockchain solutions.

Tether and UNODC aim to create secure digital ecosystems, boost economic opportunities, and equip communities to prevent organised crime. Coordinated action across sectors is considered vital to creating safer and more inclusive environments for vulnerable populations.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot

EU instructs X to keep all Grok chatbot records

The European Commission has ordered X to retain all internal documents and data on its AI chatbot Grok until the end of 2026. The order falls under the Digital Services Act after concerns Grok’s ‘spicy’ mode enabled sexualised deepfakes of minors.

The move continues EU oversight, recalling a January 2025 order to preserve X’s recommender system documents amid claims it amplified far-right content during German elections. EU regulators emphasised that platforms must manage the content generated by their AI responsibly.

Earlier this week, X submitted responses to the Commission regarding Grok’s outputs following concerns over Holocaust denial content. While the deepfake scandal has prompted calls for further action, the Commission has not launched a formal investigation into Grok.

Regulators reiterated that it remains X’s responsibility to ensure the chatbot’s outputs meet European standards, and retention of all internal records is crucial for ongoing monitoring and accountability.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot