Cybersecurity

Hong Kong to speed up tech hub plan with China

One of S.A.R. of China, Hong Kong, is preparing to accelerate its cross-border technology hub plans with mainland China as the city seeks new growth drivers to offset its fragile economy.

Chief Executive John Lee is set to deliver his annual policy address on Wednesday, with the Northern Metropolis project expected to take centre stage.

The initiative aims to transform a sparsely populated area into a base for advanced industries and innovation, while reducing reliance on finance and real estate.

According to state-owned media, the government will ease financing rules to attract companies in AI, renewable energy and medical technology.

An urgency that comes despite signs of recovery, as the economy of Hong Kong grew at its fastest pace in over a year last quarter. Yet home prices continue to fall, unemployment has risen, and public finances remain stretched.

The administration is unlikely to offer sweeping property incentives, such as tax cuts or looser rules for mainland buyers, given fiscal constraints. Instead, it may revive the long-dormant Tenants Purchase Scheme, first launched in 1998, which allows public housing tenants to buy their flats at reduced prices.

Analysts say that without bold reforms, the housing market will stay under pressure as oversupply and weak sentiment weigh on values.

Hong Kong’s $7.2 trillion stock market could benefit if new listings and inflows are encouraged, especially as developers look to stimulus and lower mortgage rates to support sales.

However, with the economy of China also slowing down, doubts remain over whether deeper integration and technology investments can provide a lasting boost.

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Millions of customer records stolen in Kering luxury brand data breach

Kering has confirmed a data breach affecting several of its luxury brands, including Gucci, Balenciaga, Brioni, and Alexander McQueen, after unauthorised access to its Salesforce systems compromised millions of customer records.

Hacking group ShinyHunters has claimed responsibility, alleging it exfiltrated 43.5 million records from Gucci and nearly 13 million from the other brands. The stolen data includes names, email addresses, dates of birth, sales histories, and home addresses.

Kering stated that the incident occurred in June 2025 and did not compromise bank or credit card details or national identifiers. The company has reported the breach to the relevant regulators and is notifying the affected customers.

Evidence shared by ShinyHunters suggests Balenciaga made an initial ransom payment of €500,000 before negotiations broke down. The group released sample data and chat logs to support its claims.

ShinyHunters has exploited Salesforce weaknesses in previous attacks targeting luxury, travel, and financial firms. Questions remain about the total number of affected customers and the potential exposure of other Kering brands.

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European regulators push for stronger oversight in crypto sector

European regulators from Italy, France, and Austria have called for changes to the EU’s Markets in Crypto-Assets Regulation (MiCA). Their proposals aim to fix supervisory gaps, improve cybersecurity, and simplify token white paper approvals.

The regulation, which came into force in December 2024, requires prior authorisation for firms offering crypto-related services in Europe. However, early enforcement has shown significant gaps in how national authorities apply the rules.

Regulators argue these differences undermine investor protection and threaten the stability of the European internal market.

Concerns have also been raised about non-EU platforms serving European clients through intermediaries outside MiCA’s scope. To counter this, authorities recommend restricting such activity and ensuring intermediaries only use platforms compliant with MiCA or equivalent standards.

Additional measures include independent cybersecurity audits, mandatory both before and after authorisation, to bolster resilience against cyber-attacks.

The proposals suggest giving ESMA direct oversight of major crypto providers and centralising white paper filings. Regulators say the changes would boost legal clarity, cut investor risks, and level the field for European firms against global rivals.

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UK to benefit from Google’s £5 billion AI plan

Google has unveiled plans to invest £5 billion (around $6.8 billion) in the UK’s AI economy over the next two years.

An announcement comes just hours before US President Donald Trump’s official visit to the country, during which economic agreements worth more than $10 billion are expected.

The investment will include establishing a new AI data centre in Waltham Cross, Hertfordshire, designed to meet growing demand for services like Google Cloud.

Alongside the facility, funds will be channelled into research and development, capital expenditure, engineering, and DeepMind’s work applying AI to science and healthcare. The project is expected to generate 8,250 annual jobs for British companies.

Google also revealed a partnership with Shell to support grid stability and contribute to the UK’s energy transition. The move highlights the economic and environmental stakes tied to AI expansion, as the UK positions itself as a hub for advanced digital technologies.

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Generative AI enables rapid phishing attacks on older users

A recent study has shown that AI chatbots can generate compelling phishing emails for older people. Researchers tested six major chatbots, including Grok, ChatGPT, Claude, Meta AI, DeepSeek, and Google’s Gemini, by asking them to draft scam emails posing as charitable organisations.

Of 108 senior volunteers, roughly 11% clicked on the AI-written links, highlighting the ease with which cybercriminals could exploit such tools.

Some chatbots initially declined harmful requests, but minor adjustments, such as stating the task was for research purposes, or circumvented these safeguards.

Grok, in particular, produced messages urging recipients to ‘click now’ and join a fictitious charity, demonstrating how generative AI can amplify the persuasiveness of scams. Researchers warn that criminals could use AI to conduct large-scale phishing campaigns at minimal cost.

Phishing remains the most common cybercrime in the US, according to the FBI, with seniors disproportionately affected. Last year, Americans over 60 lost nearly $5 billion to phishing attacks, an increase driven partly by generative AI.

The study underscores the urgent need for awareness and protection measures among vulnerable populations.

Experts note that AI’s ability to generate varied scam messages rapidly poses a new challenge for cybersecurity, as it allows fraudsters to scale operations quickly while targeting specific demographics, including older people.

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Telecom industry outlines vision for secure 6G

Telecom experts say 6G must be secure by design as planning for the next generation of mobile networks accelerates.

Industry leaders warn that 6G will vastly expand the attack surface, with autonomous vehicles, drones, industrial robots and AR systems all reliant on ultra-low latency connections. AI will be embedded at every layer, creating opportunities for optimisation but also new risks such as model poisoning.

Quantum threats are also on the horizon, with adversaries potentially able to decrypt sensitive data. Quantum-resistant cryptography is expected to be a cornerstone of 6G defences.

With standards due by 2029, experts stress cooperation among regulators, equipment vendors and operators. Security, they argue, must be as fundamental to 6G as speed and sustainability.

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China’s market watchdog finds Nvidia violated antitrust law

China’s State Administration for Market Regulation (SAMR) has issued a preliminary finding that Nvidia violated antitrust law linked to its 2020 acquisition of Mellanox Technologies. The deal was approved with restrictions, including a ban on bundling and ‘unreasonable trading conditions’ in China.

SAMR now alleges that Nvidia breached those terms. A full investigation is underway. Nvidia shares fell 2.4% in pre-market trading after the announcement. According to the Financial Times, SAMR delayed releasing the findings to gain leverage in trade talks with the USA, currently taking place in Madrid.

At the same time, US export controls on advanced chips remain a challenge for Nvidia. Licensing for its China-specific H20 chips is still under review, affecting Nvidia’s access to the Chinese market.

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US and China reach framework deal on TikTok

The United States and China have reached a tentative ‘framework’ deal on the future of TikTok’s American operations, US Treasury Secretary Scott Bessent confirmed during trade talks in Madrid. The agreement, which still requires the approval of Presidents Donald Trump and Xi Jinping, is aimed at resolving a looming deadline that could see the video-sharing app banned in the US unless its Chinese owner ByteDance sells its American division.

US officials say the framework addresses national security concerns by paving the way for US ownership of TikTok’s operations, while China insists any final deal must not undermine its companies’ interests. The Biden administration has long argued that the app’s access to US user data poses significant risks, while ByteDance maintains its American arm operates independently and respects user privacy.

The law mandating a sale or ban, upheld by the Supreme Court earlier this year, is due to take effect on 17 September. Although the framework marks progress, key details remain unresolved, particularly over whether TikTok’s recommendation algorithm and user data will be fully transferred, stored, and protected in the US.

Experts warn that unless strict safeguards are included, the deal may solve ownership issues without closing potential ‘backdoors’ for Beijing. Concerns also remain over how much influence China retains, with negotiators linking TikTok’s fate to wider tariff discussions between the two powers.

If fully implemented, the agreement could represent a breakthrough in both trade relations and tech governance. But with ByteDance among China’s most powerful AI firms, the stakes go far beyond social media, touching on questions of global competition, national security, and digital sovereignty.

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Quantum breakthroughs could threaten Bitcoin in the 2030s

The rise of quantum computing is sparking fresh concerns over the long-term security of Bitcoin. Unlike classical systems, quantum machines could eventually break the cryptography protecting digital assets.

Experts warn that Shor’s algorithm, once run on a sufficiently powerful quantum computer, could recover private keys from public ones in hours, leaving exposed funds vulnerable. Analysts see the mid-to-late 2030s as the key period for cryptographically relevant breakthroughs.

ChatGPT-5’s probability model indicates less than a 5% chance of Bitcoin being cracked before 2030, but risk rises to 45–60% between 2035 and 2039, and nearly certainty by 2050. Sudden progress in large-scale, fault-tolerant qubits or government directives could accelerate the timeline.

Mitigation strategies include avoiding key reuse, auditing exposed addresses, and gradually shifting to post-quantum or hybrid cryptographic solutions. Experts suggest that critical migrations should be completed by the mid-2030s to secure the Bitcoin network against future quantum threats.

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Privacy-preserving AI gets a boost with Google’s VaultGemma model

Google has unveiled VaultGemma, a new large language model built to offer cutting-edge privacy through differential privacy. The 1-billion-parameter model is based on Google’s Gemma architecture and is described as the most powerful differentially private LLM to date.

Differential privacy adds mathematical noise to data, preventing the identification of individuals while still producing accurate overall results. The method has long been used in regulated industries, but has been challenging to apply to large language models without compromising performance.

VaultGemma is designed to eliminate that trade-off. Google states that the model can be trained and deployed with differential privacy enabled, while maintaining comparable stability and efficiency to non-private LLMs.

This breakthrough could have significant implications for developers building privacy-sensitive AI systems, ranging from healthcare and finance to government services. It demonstrates that sensitive data can be protected without sacrificing speed or accuracy.

Google’s research teams say the model will be released with open-source tools to help others adopt privacy-preserving techniques. The move comes amid rising regulatory and public scrutiny over how AI systems handle personal data.

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