Cybersecurity

Generative AI fuels surge in online fraud risks in 2026

Online scams are expected to surge in 2026, overtaking ransomware as the top cyber-risk, the World Economic Forum warned, driven by the growing use of generative AI.

Executives are increasingly concerned about AI-driven scams that are easier to launch and harder to detect than traditional cybercrime. WEF managing director Jeremy Jurgens said leaders now face the challenge of acting collectively to protect trust and stability in an AI-driven digital environment.

Consumers are also feeling the impact. An Experian report found 68% of people now see identity theft as their main concern, while US Federal Trade Commission data shows consumer fraud losses reached $12.5 billion in 2024, up 25% year on year.

Generative AI is enabling more convincing phishing, voice cloning, and impersonation attempts. The WEF reported that 62% of executives experienced phishing attacks, 37% encountered invoice fraud, and 32% reported identity theft, with vulnerable groups increasingly targeted through synthetic content abuse.

Experts warn that many organisations still lack the skills and resources to defend against evolving threats. Consumer groups advise slowing down, questioning urgent messages, avoiding unsolicited requests for information, and verifying contacts independently to reduce the risk of generative AI-powered scams.

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Advanced Linux malware framework VoidLink likely built with AI

Security researchers from Check Point have uncovered VoidLink. This advanced and modular Linux malware framework has been developed predominantly with AI assistance, likely by a single individual rather than a well-resourced threat group.

VoidLink’s development process, exposed due to the developer’s operational security (OPSEC) failures, indicates that AI models were used not just for parts of the code but to orchestrate the entire project plan, documentation and implementation.

According to analysts, the malware framework reached a functional state in under a week with more than 88,000 lines of code, compressing what would traditionally take weeks or months into days.

While no confirmed in-the-wild attacks have yet been reported, researchers caution that the advent of AI-assisted malware represents a significant cybersecurity shift, lowering the barrier to creating sophisticated threats and potentially enabling widespread future misuse.

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UK launches software security ambassadors scheme

The UK government has launched the Software Security Ambassadors Scheme to promote stronger software security practices nationwide. The initiative is led by the Department for Science, Innovation and Technology and the National Cyber Security Centre.

In the UK, participating organisations commit to championing the new Software Security Code of Practice within their industries. Signatories agree to lead by example through secure development, procurement and advisory practices, while sharing lessons learned to strengthen national cyber resilience.

The scheme aims to improve transparency and risk management across UK digital supply chains. Software developers are encouraged to embed security throughout the whole lifecycle, while buyers are expected to incorporate security standards into procurement processes.

Officials say the approach supports the UK’s broader economic and security goals by reducing cyber risks and increasing trust in digital technologies. The government believes that better security practices will help UK businesses innovate safely and withstand cyber incidents.

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Davos roundtable calls for responsible AI growth

Leaders from the tech industry, academia, and policy circles met at a TIME100 roundtable in Davos, Switzerland, on 21 January to discuss how to pursue rapid AI progress without sacrificing safety and accountability. The conversation, hosted by TIME CEO Jessica Sibley, focused on how AI should be built, governed, and used as it becomes more embedded in everyday life.

A major theme was the impact of AI-enabled technology on children. Jonathan Haidt, an NYU Stern professor and author of The Anxious Generation, argued that the key issue is not total avoidance but the timing and habits of exposure. He suggested children do not need smartphones until at least high school, emphasising that delaying access can help protect brain development and executive function.

Yoshua Bengio, a professor at the Université de Montréal and founder of LawZero, said responsible innovation depends on a deeper scientific understanding of AI risks and stronger safeguards built into systems from the start. He pointed to two routes, consumer and societal demand for ‘built-in’ protections, and government involvement that could include indirect regulation through liability frameworks, such as requiring insurance for AI developers and deployers.

Participants also challenged the idea that geopolitical competition should justify weaker guardrails. Bengio argued that even rivals share incentives to prevent harmful outcomes, such as AI being used for cyberattacks or the development of biological weapons, and said coordination between major powers is possible, drawing a comparison to Cold War-era cooperation on nuclear risk reduction.

The roundtable linked AI risks to lessons from social media, particularly around attention-driven business models. Bill Ready, CEO of Pinterest, said engagement optimisation can amplify divisions and ‘prey’ on negative human impulses, and described Pinterest’s shift away from maximising view time toward maximising user outcomes, even if it hurts short-term metrics.

Several speakers argued that today’s alignment approach is too reactive. Stanford computer scientist Yejin Choi warned that models trained on the full internet absorb harmful patterns and then require patchwork fixes, urging exploration of systems that learn moral reasoning and human values more directly from the outset.

Kay Firth-Butterfield, CEO of Good Tech Advisory, added that wider AI literacy, shaped by input from workers, parents, and other everyday users, should underpin future certification and trust in AI tools.

Diplo is live reporting on all sessions from the World Economic Forum 2026 in Davos.

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Microsoft restores Exchange and Teams after Microsoft 365 disruption

The US tech giant, Microsoft, investigated a service disruption affecting Exchange Online, Teams and other Microsoft 365 services after users reported access and performance problems.

An incident that began late on Wednesday affected core communication tools used by enterprises for daily operations.

Engineers initially focused on diagnosing the fault, with Microsoft indicating that a potential third-party networking issue may have interfered with access to Outlook and Teams.

During the disruption, users experienced intermittent connectivity failures, latency and difficulties signing in across parts of the Microsoft 365 ecosystem.

Microsoft later confirmed that service access had been restored, although no detailed breakdown of the outage scope was provided.

The incident underlined the operational risks associated with cloud productivity platforms and the importance of transparency and resilience in enterprise digital infrastructure.

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From chips to jobs: Huang’s vision for AI at Davos 2026

AI is evolving into a foundational economic system rather than a standalone technology, according to NVIDIA chief executive Jensen Huang, who described AI as a five-layer infrastructure spanning energy, hardware, data centres, models and applications.

Speaking at the World Economic Forum in Davos, Huang argued that building and operating each layer is triggering what he called the most significant infrastructure expansion in human history, with job creation stretching from power generation and construction to cloud operations and software development.

Investment patterns suggest a structural shift instead of a speculative cycle. Venture capital funding in 2025 reached record levels, largely flowing into AI-native firms across healthcare, manufacturing, robotics and financial services.

Huang stressed that the application layer will deliver the most significant economic return as AI moves from experimentation to core operational use across industries.

Concerns around job displacement were framed as misplaced. AI automates tasks rather than replacing professional judgement, enabling workers to focus on higher-value activities.

In healthcare, productivity gains from AI-assisted diagnostics and documentation are already increasing demand for radiologists and nurses rather than reducing headcount, as improved efficiency enables institutions to treat more patients.

Huang positioned AI as critical national infrastructure, urging governments to develop domestic capabilities aligned with local language, culture and industrial strengths.

He described AI literacy as an essential skill, comparable to leadership or management, while arguing that accessible AI tools could narrow global technology divides rather than widen them.

Diplo is live reporting on all sessions from the World Economic Forum 2026 in Davos.

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South Korea sets the global standard for frontier AI regulation

South Korea will begin enforcing its Artificial Intelligence Act on Thursday, becoming the first country to introduce formal safety requirements for high-performance, or frontier, AI systems, reshaping the global regulatory landscape.

The law establishes a national AI governance framework, led by the Presidential Council on National Artificial Intelligence Strategy, and creates an AI Safety Institute to oversee safety and trust assessments.

Alongside regulatory measures, the government is rolling out broad support for research, data infrastructure, talent development, startups, and overseas expansion, signalling a growth-oriented policy stance.

To minimise early disruption, authorities will introduce a minimum one-year grace period centred on guidance, consultation, and education rather than enforcement.

Obligations cover three areas: high-impact AI in critical sectors, safety rules for frontier models, and transparency requirements for generative AI, including disclosure of realistic synthetic content.

Enforcement remains light-touch, prioritising corrective orders over penalties, with fines capped at 30 million won for persistent noncompliance. Officials said the framework aims to build public trust while supporting innovation, serving as a foundation for ongoing policy development.

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GPT-5.2 shows how AI can generate real-world cyber exploits

Advanced language models have demonstrated the ability to generate working exploits for previously unknown software vulnerabilities. Security researcher Sean Heelan tested two systems built on GPT-5.2 and Opus 4.5 by challenging them to exploit a zero-day flaw in the QuickJS JavaScript interpreter.

Across multiple scenarios with varying security protections, GPT-5.2 completed every task, while Opus 4.5 failed only 2. The systems produced more than 40 functional exploits, ranging from basic shell access to complex file-writing operations that bypassed modern defences.

Most challenges were solved in under an hour, with standard attempts costing around $30. Even the most complex exploit, which bypassed protections such as address space layout randomisation, non-executable memory, and seccomp sandboxing, was completed in just over three hours for roughly $50.

The most advanced task required GPT-5.2 to write a specific string to a protected file path without access to operating system functions. The model achieved this by chaining seven function calls through the glibc exit handler mechanism, bypassing shadow stack protections.

The findings suggest exploit development may increasingly depend on computational resources rather than human expertise. While QuickJS is less complex than browsers such as Chrome or Firefox, the approach demonstrated could scale to larger and more secure software environments.

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YouTube’s 2026 strategy places AI at the heart of moderation and monetisation

As announced yesterday, YouTube is expanding its response to synthetic media by introducing experimental likeness detection tools that allow creators to identify videos where their face appears altered or generated by AI.

The system, modelled conceptually on Content ID, scans newly uploaded videos for visual matches linked to enrolled creators, enabling them to review content and pursue privacy or copyright complaints when misuse is detected.

Participation requires identity verification through government-issued identification and a biometric reference video, positioning facial data as both a protective and governance mechanism.

While the platform stresses consent and limited scope, the approach reflects a broader shift towards biometric enforcement as platforms attempt to manage deepfakes, impersonation, and unauthorised synthetic content at scale.

Alongside likeness detection, YouTube’s 2026 strategy places AI at the centre of content moderation, creator monetisation, and audience experience.

AI tools already shape recommendation systems, content labelling, and automated enforcement, while new features aim to give creators greater control over how their image, voice, and output are reused in synthetic formats.

The move highlights growing tensions between creative empowerment and platform authority, as safeguards against AI misuse increasingly rely on surveillance, verification, and centralised decision-making.

As regulators debate digital identity, biometric data, and synthetic media governance, YouTube’s model signals how private platforms may effectively set standards ahead of formal legislation.

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Snapchat settles social media addiction lawsuit as landmark trial proceeds

Snapchat’s parent company has settled a social media addiction lawsuit in California just days before the first major trial examining platform harms was set to begin.

The agreement removes Snapchat from one of the three bellwether cases consolidating thousands of claims, while Meta, TikTok and YouTube remain defendants.

These lawsuits mark a legal shift away from debates over user content and towards scrutiny of platform design choices, including recommendation systems and engagement mechanics.

A US judge has already ruled that such features may be responsible for harm, opening the door to liability that section 230 protections may not cover.

Legal observers compare the proceedings to historic litigation against tobacco and opioid companies, warning of substantial damages and regulatory consequences.

A ruling against the remaining platforms could force changes in how social media products are designed, particularly in relation to minors and mental health risks.

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