The US considers chip tracking to prevent smuggling to China

The US is exploring how to build better location-tracking into advanced chips, as part of an effort to prevent American semiconductors from ending up in China.

Michael Kratsios, a senior official behind Donald Trump’s AI strategy, confirmed that software or physical updates to chips are being considered to support traceability.

Instead of relying on external enforcement, Washington aims to work directly with the tech industry to improve monitoring of chip movements. The strategy forms part of a broader national plan to counter smuggling and maintain US dominance in cutting-edge technologies.

Beijing recently summoned Nvidia representatives to address concerns over American proposals linked to tracking features and perceived security risks in the company’s H20 chips.

Although US officials have not directly talked with Nvidia or AMD on the matter, Kratsios clarified that chip tracking is now a formal objective.

The move comes even as Trump’s team signals readiness to lift certain export restrictions to China in return for trade benefits, such as rare-earth magnet sales to the US.

Kratsios criticised China’s push to lead global AI regulation, saying countries should define their paths instead of following a centralised model. He argued that the US innovation-first approach offers a more attractive alternative.

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AI tools like Grok 4 may make developers obsolete, Musk suggests

Elon Musk has predicted a major shift in software development, claiming that AI is turning coding from a job into a recreational activity. The xAI CEO believes AI has removed much of the ‘drudgery’ from writing software.

Replying to OpenAI President Greg Brockman, Musk compared the future of coding to painting. He suggested that software creation will be more creative and expressive, no longer requiring professional expertise for functional outcomes.

Musk, a co-founder of OpenAI, left the organisation after a public dispute with the current CEO, Sam Altman. He later launched xAI, which now operates the Grok chatbot as a rival to ChatGPT, Gemini and Claude.

Generative AI firms are accelerating efforts in automated coding. OpenAI recently launched Codex to create a cloud-based software engineering agent, while Microsoft released GitHub Spark AI to generate apps from natural language.

xAI’s latest offering, Grok 4, supports over 20 programming languages and integrates with code editors. It enables developers to write, debug, and understand code using commands.

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Hackers use steganography to evade Windows defences

North Korea-linked hacking group APT37 is using malicious JPEG image files to deploy advanced malware on Windows systems, according to Genians Security Centre. The new campaign showcases a more evasive version of RoKRAT malware, which hides payloads in image files through steganography.

These attacks rely on large Windows shortcut files embedded in email attachments or cloud storage links, enticing users with decoy documents while executing hidden code. Once activated, the malware launches scripts to decrypt shellcode and inject it into trusted apps like MS Paint and Notepad.

This fileless strategy makes detection difficult, avoiding traditional antivirus tools by leaving minimal traces. The malware also exfiltrates data through legitimate cloud services, complicating efforts to trace and block the threat.

Researchers stress the urgency for organisations to adopt cybersecurity measures, behavioural monitoring, robust end point management, and ongoing user education. Defenders must prioritise proactive strategies to protect critical systems as threat actors evolve.

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Eswatini advances digital vision with new laws, 5G and skills training

Eswatini is moving forward with a national digital transformation plan focused on infrastructure, legislation and skills development.

The country’s Minister of ICT, Savannah Maziya, outlined key milestones during the 2025 Eswatini Economic Update, co-hosted with the World Bank.

In her remarks, Maziya said that digital technology plays a central role in job creation, governance and economic development. She introduced several regulatory frameworks, including a Cybersecurity Bill, a Critical Infrastructure Bill and an E-Commerce Strategy.

Additional legislation is planned for emerging technologies such as AI, robotics and satellite systems.

Infrastructure improvements include the nationwide expansion of fibre optic networks and a rise in international connectivity capacity from 47 Gbps to 72 Gbps.

Mbabane, the capital, is being developed as a Smart City with 5G coverage, AI-enabled surveillance and public Wi-Fi access.

The Ministry of ICT has launched more than 11 digital public services and plans to add 90 more in the next three years.

A nationwide coding initiative will offer digital skills training to over 300,000 citizens, supporting wider efforts to increase access and participation in the digital economy.

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AI breaches push data leak costs to new heights despite global decline

IBM’s 2025 Cost of a Data Breach Report revealed a sharp gap between rapid AI adoption and the oversight needed to secure it.

Although the global average data breach cost fell slightly to $4.44 million, security incidents involving AI systems remain more severe and disruptive.

Around 13% of organisations reported breaches involving AI models or applications, while 8% were unsure whether they had been compromised.

Alarmingly, nearly all AI-related breaches occurred without access controls, leading to data leaks in 60% of cases and operational disruption in almost one-third. Shadow AI (unsanctioned or unmanaged systems) played a central role, with one in five breaches traced back to it.

Organisations without AI governance policies or detection systems faced significantly higher costs, especially when personally identifiable information or intellectual property was exposed.

Attackers increasingly used AI tools such as deepfakes and phishing, with 16% of studied breaches involving AI-assisted threats.

Healthcare remained the costliest sector, with an average breach price of $7.42 million and the most extended recovery timeline of 279 days.

Despite the risks, fewer organisations plan to invest in post-breach security. Only 49% intend to strengthen defences, down from 63% last year.

Even fewer will prioritise AI-driven security tools. With many organisations also passing costs on to consumers, recovery now often includes long-term financial and reputational fallout, not just restoring systems.

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VPN use surges in UK as age checks go live

The way UK internet users access adult content has undergone a significant change, with new age-verification rules now in force. Under Ofcom’s directive, anyone attempting to visit adult websites must now prove they are over 18, typically by providing credit card or personal ID details.

The move aims to prevent children from encountering harmful content online, but it has raised serious privacy and cybersecurity concerns.

Experts have warned that entering personal and financial information could expose users to cyber threats. Jake Moore from cybersecurity firm ESET pointed out that the lack of clear implementation standards leaves users vulnerable to data misuse and fraud.

There’s growing unease that ID verification systems might inadvertently offer a goldmine to scammers.
In response, many have started using VPNs to bypass the restrictions, with providers reporting a surge in UK downloads.

VPNs mask user locations, allowing access to blocked content, but free versions often lack the security features of paid services. As demand rises, cybersecurity specialists are urging users to be cautious.

Free VPNs can compromise user data through weak encryption or selling browsing histories to advertisers. Mozilla and EC-Council have stressed the importance of avoiding no-cost VPNs unless users know the risks.

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Nvidia refutes chip backdoor allegations as China launches probe

Nvidia has firmly denied claims that its AI chips contain backdoors allowing remote control or tracking, following questioning by China’s top cybersecurity agency.

The investigation, which focuses on the H20 chip explicitly designed for the Chinese market, comes as Beijing intensifies scrutiny over foreign tech used in sensitive systems.

The H20 was initially blocked from export in April under US restrictions, but is now expected to return to Chinese shelves.

China’s Cyberspace Administration (CAC) summoned Nvidia officials to explain whether the chip enables unauthorised access or surveillance. The agency cited demands from US lawmakers for mandatory tracking features in advanced AI hardware as grounds for its concern.

In a statement, Nvidia insisted it does not include remote access capabilities in its products, reaffirming its commitment to cybersecurity.

Meanwhile, China’s state-backed People’s Daily questioned the company’s trustworthiness, stating that ‘network security is as vital as national territory’ and warning against reliance on what it described as ‘sick chips’.

The situation highlights Nvidia’s delicate position as it attempts to maintain dominance in China’s AI chip market while complying with mounting US export rules.

Tensions have escalated since similar actions were taken against other US firms, including a 2022 ban on Micron’s chips and recent antitrust scrutiny over Nvidia’s Mellanox acquisition.

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FBI warns public to avoid scanning QR codes on unsolicited packages

The FBI has issued a public warning about a rising scam involving QR codes placed on packages delivered to people who never ordered them.

According to the agency, these codes can lead recipients to malicious websites or prompt them to install harmful software, potentially exposing sensitive personal and financial data.

The scheme is a variation of the so-called brushing scam, in which online sellers send unordered items and use recipients’ names to post fake product reviews. In the new version, QR codes are added to the packaging, increasing the risk of fraud by directing users to deceptive websites.

While not as widespread as other fraud attempts, the FBI urges caution. The agency recommends avoiding QR codes from unknown sources, especially those attached to unrequested deliveries.

It also advised consumers to pay close attention to the web address that appears before tapping on any QR code link.

Authorities have noted broader misuse of QR codes, including cases where criminals place fake codes over legitimate ones in public spaces.

In one recent incident, scammers used QR stickers on parking meters in New York to redirect people to third-party payment pages requesting card details.

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Prisons trial AI to forecast conflict and self‑harm risk

UK Justice Secretary Shabana Mahmood has rolled out an AI-driven violence prediction tool across prisons and probation services. One system evaluates inmates’ profiles, factoring in age, past behaviour, and gang ties, to flag those likely to become violent. Matching prisoners to tighter supervision or relocation aims to reduce attacks on staff and fellow inmates.

Another feature actively scans content from seized mobile phones. AI algorithms sift through over 33,000 devices and 8.6 million messages, detecting coded language tied to contraband, violence, or escape plans. When suspicious content is flagged, staff receive alerts for preventive action.

Rising prison violence and self-harm underscore the urgency of such interventions. Assaults on staff recently reached over 10,500 a year, the highest on record, while self-harm incidents reached nearly 78,000. Overcrowding and drug infiltration have intensified operational challenges.

Analysts compare the approach to ‘pre‑crime’ models, drawing parallels with sci-fi narratives, raising concerns around civil liberties. Without robust governance, predictive tools may replicate biases or punish potential rather than actual behaviour. Transparency, independent audit, and appeals processes are essential to uphold inmate rights.

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US court mandates Android app competition, loosens billing rules

Long-standing dominance over Android app distribution has been declared illegal by the Ninth Circuit Court of Appeals, reinforcing a prior jury verdict in favour of Epic Games. Google now faces an injunction that compels it to allow rival app stores and alternative billing systems inside the Google Play Store ecosystem for a three-year period ending November 2027.

A technical committee jointly selected by Epic and Google will oversee sensitive implementation tasks, including granting competitors approved access to Google’s expansive app catalogue while ensuring minimal security risk. The order also requires that developers not be tied to Google’s billing system for in-app purchases.

Market analysts warn that reduced dependency on Play Store exclusivity and the option to use alternative payment processors could cut Google’s app revenue by as much as $1 to $1.5 billion annually. Despite brand recognition, developers and consumers may shift toward lower-cost alternatives competing on platform flexibility.

While the ruling aims to restore competition, Google maintains it is appealing and has requested additional delays to avoid rapid structural changes. Proponents, including Microsoft, regulators, and Epic Games, hail the decision as a landmark step toward fairer mobile market access.

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