The US Federal Trade Commission has launched an inquiry into AI chatbots that act as digital companions, raising concerns about their impact on children and teenagers.
Seven firms, including Alphabet, Meta, OpenAI and Snap, have been asked to provide information about how they address risks linked to ΑΙ chatbots designed to mimic human relationships.
Chairman Andrew Ferguson said protecting children online was a top priority, stressing the need to balance safety with maintaining US leadership in AI. Regulators fear minors may be particularly vulnerable to forming emotional bonds with AI chatbots that simulate friendship and empathy.
An inquiry that will investigate how companies develop AI chatbot personalities, monetise user interactions and enforce age restrictions. It will also assess how personal information from conversations is handled and whether privacy laws are being respected.
Other companies receiving orders include Character.AI and Elon Musk’s xAI.
The probe follows growing public concern over the psychological effects of generative AI on young people.
Last month, the parents of a 16-year-old who died by suicide sued OpenAI, alleging ChatGPT provided harmful instructions. The company later pledged corrective measures, admitting its chatbot does not always recommend mental health support during prolonged conversations.
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Vietnam’s National Credit Information Centre (CIC), a key financial data hub under the State Bank of Vietnam, confirmed a cybersecurity attack, according to the Vietnam Cyber Emergency Response Centre (VNCERT). Initial investigations suggest the attack was a deliberate attempt by cybercriminals to steal personal data.
VNCERT reported signs of unauthorized data access and potential leaks of sensitive information. The Department of Cybersecurity and High-Tech Crime Prevention has tasked VNCERT with leading the incident response and coordinating with major cybersecurity firms, including Viettel, VNPT, and NCS.
Authorities have deployed technical measures to contain the breach, assess its scope, and preserve the integrity of the national financial system. Evidence is being gathered for possible legal proceedings, while the full extent of compromised data remains under investigation.
VNCERT has warned individuals and organisations not to download, share, or exploit any leaked data, citing Vietnam’s data protection laws. Government agencies and financial institutions have been urged to audit their systems and comply with national cybersecurity standards.
Cybersecurity expert Ngô Minh Hiếu noted that critical banking data, such as passwords and credit card numbers, is not stored in CIC, suggesting financial transactions remain unaffected.
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Marks & Spencer’s technology chief, Rachel Higham, has stepped down less than 18 months after joining the retailer from BT.
Her departure comes months after a cyberattack in April by Scattered Spider disrupted systems and cost the company around £300 million. Online operations, including click-and-collect, were temporarily halted before being gradually restored.
In a memo to staff, the company described Higham as a steady hand during a turbulent period and wished her well. M&S has said it does not intend to replace her role, leaving questions over succession directly.
The retailer expects part of the financial hit to be offset by insurance. It has declined to comment further on whether Higham will receive a payoff.
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The California State Assembly passed SB 243, advancing legislation making the state the first in the USA to regulate AI companion chatbots. The bill, which aims to safeguard minors and vulnerable users, passed with bipartisan support and now heads to the state Senate for a final vote on Friday.
If signed into law by Governor Gavin Newsom, SB 243 would take effect on 1 January 2026. It would require companies like OpenAI, Replika, and Character.AI to implement safety protocols for AI systems that simulate human companionship.
The law would prohibit such chatbots from engaging in conversations involving suicidal ideation, self-harm, or sexually explicit content. For minors, platforms must provide recurring alerts every three hours, reminding them they interact with AI and encouraging breaks.
The bill also introduces annual transparency and reporting requirements, effective 1 July 2027. Users harmed by violations could seek damages of up to $1,000 per incident, injunctive relief and attorney’s fees.
The legislation follows the suicide of teen Adam Raine after troubling conversations with ChatGPT, and amid mounting scrutiny of AI’s impact on children. Lawmakers nationwide and the Federal Trade Commission (FTC) are increasing pressure on AI companies to bolster safeguards in the USA.
Though earlier versions of the bill included stricter requirements, like banning addictive engagement tactics, those provisions were removed. Still, backers say the final bill strikes a necessary balance between innovation and public safety.
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The US House of Representatives has passed an $848 billion defence policy bill with new provisions for cybersecurity and AI. Lawmakers voted 231 to 196 to approve the chamber’s version of the National Defence Authorisation Act (NDAA).
The bill mandates that the National Security Agency brief Congress on plans for its Cybersecurity Coordination Centre and requires annual reports from combatant commands on the levels of support provided by US Cyber Command.
It also calls for a software bill of materials for AI-enabled technology that the Department of Defence uses. The Pentagon will be authorised to create up to 12 generative AI projects to improve cybersecurity and intelligence operations.
An adopted amendment allows the NSA to share threat intelligence with the private sector to protect US telecommunications networks. Another requirement is that the Pentagon study the National Guard’s role in cyber response at the federal and state levels.
Proposals to renew the Cybersecurity Information Sharing Act and the State and Local Cybersecurity Grant Program were excluded from the final text. The Senate is expected to approve its version of the NDAA next week.
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South Korea’s Personal Information Protection Commission has fined Moncler Korea 88 million won ($63,200) over a large-scale customer data breach.
The regulator said a cyberattack in December 2021 exposed the personal details of about 230,000 customers. Hackers gained access by compromising an administrator account and installing malware on the company’s servers.
The stolen information of the South Korean customers included purchase-related data, though names, dates of birth, emails and card numbers were not part of the leak.
According to officials, Moncler Korea only became aware of the breach a month later and delayed reporting it to both customers and the regulator.
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During her annual State of the Union address, von der Leyen said the Commission is closely monitoring Australia’s approach, where individuals under 16 are banned from using platforms like TikTok, Instagram, and Snapchat.
‘I am watching the implementation of their policy closely,’ von der Leyen said, adding that a panel of experts will advise her on the best path forward for Europe by the end of 2025.
Currently, social media age limits are handled at the national level across the EU, with platforms generally setting a minimum age of 13. France, however, is moving toward a national ban for those under 15 unless an EU-wide measure is introduced.
Several EU countries, including the Netherlands, have already warned against children under 15 using social media, citing health risks.
In June, the European Commission issued child protection guidelines under the Digital Services Act, and began working with five member states on age verification tools, highlighting growing concern over digital safety for minors.
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The contact details of rail passengers have been stolen in a cyberattack affecting London North Eastern Railway (LNER). The company stated that it had been notified of unauthorised access to files managed by a third-party supplier and advised customers to be vigilant against phishing attempts.
LNER stressed that no bank details, card numbers, or passwords had been compromised. The York-based operator stated that it was collaborating with cybersecurity experts and the supplier to investigate the breach and ensure necessary safeguards.
The company did not confirm the number of passengers affected. The incident comes as LNER reported revenues exceeding £1 billion, yet it continues to rely on government support since its nationalisation in 2018.
Passenger complaints rose 12.2 percent in 2025, reaching 24,015, and competition from private operators is driving losses—online ticket platforms such as Trainline direct passengers to cheaper rivals, costing LNER significant revenue.
The breach follows other attacks on UK transport services, including a 2024 incident in which the bank details of 5,000 Transport for London customers were exposed, resulting in weeks of disrupted online services.
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Jaguar Land Rover (JLR) has confirmed that data was affected in a cyberattack that has kept its UK factories idle for more than a week. The company stated that it is contacting anyone whose data was involved, although it did not clarify whether the breach affected customers, suppliers, or internal systems.
JLR reported the incident to the Information Commissioner’s Office and immediately shut down IT systems to limit damage. Production at Midlands and Merseyside sites has been halted until at least Thursday, with staff instructed not to return before next week.
The disruption has also hit suppliers and retailers, with garages struggling to order spare parts and dealers facing delays registering vehicles. JLR said it is working around the clock to restore operations in a safe and controlled way, though the process is complex.
Responsibility for the hack has been claimed by Scattered Lapsus$ Hunters, a group linked to previous attacks on Marks & Spencer, the Co-op, and Las Vegas casinos in the UK and the US. The hackers posted alleged screenshots from JLR’s internal systems on Telegram last week.
Cybersecurity experts say the group’s claim that ransomware was deployed raises questions, as it appears to have severed ties with Russian ransomware gangs. Analysts suggest the hackers may have only stolen data or are building their own ransomware infrastructure.
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OpenAI has finalised a record $300 billion deal with Oracle to secure vast computing infrastructure over five years, marking one of the most significant cloud contracts in history. The agreement is part of Project Stargate, OpenAI’s plan to build massive data centre capacity in the US and abroad.
The two companies will develop 4.5 gigawatts of computing power, equivalent to the energy consumed by millions of homes.
Backed by SoftBank and other partners, the Stargate initiative aims to surpass $500 billion in investment, with construction already underway in Texas. Additional plans include a large-scale data centre project in the United Arab Emirates, supported by Emirati firm G42.
The scale of the deal highlights the fierce race among tech giants to dominate AI infrastructure. Amazon, Microsoft, Google and Meta are also pledging hundreds of billions of dollars towards data centres, while OpenAI faces mounting financial pressure.
The company currently generates around $10 billion in revenue but is expected to spend far more than that annually to support its expansion.
Oracle is betting heavily on OpenAI as a future growth driver, although the risk is high given OpenAI’s lack of profitability and Oracle’s growing debt burden.
A gamble that rests on the assumption that ChatGPT and related AI technologies will continue to grow at an unprecedented pace, despite intense competition from Google, Anthropic and others.
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