Cybersecurity Archives | Page 268 of 408 | Digital Watch Observatory

Uber is ready for driverless taxis in the UK

Uber says it is fully prepared to launch driverless taxis in the UK, but the government has pushed back its timeline for approving fully autonomous vehicles.

The previous 2026 target has been shifted to the second half of 2027, despite rapid developments in self-driving technology already being trialled on British roads.

Currently, limited self-driving systems are legal so long as a human remains behind the wheel and responsible for the car.

Uber, which already runs robotaxis in the US and parts of Asia, is working with 18 tech firms—including UK-based Wayve—to expand the service. Wayve’s AI-driven vehicles were recently tested in central London, managing traffic, pedestrians and roadworks with no driver intervention.

Uber’s Andrew Macdonald said the technology is ready now, but regulatory support is still catching up. The government insists legislation will come in 2027 and is exploring short-term trials in the meantime.

Macdonald acknowledged safety concerns, noting incidents abroad, but argued autonomous vehicles could eventually prove safer than human drivers, based on early US data.

Beyond technology, the shift raises big questions around insurance, liability and jobs. The government sees a £42 billion industry with tens of thousands of new roles, but unions warn of social impacts for professional drivers.

Still, Uber sees a future where fewer people even bother to learn how to drive, because AI will do it for them.

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Why ITU’s legacy still shapes our digital world

On 17 May 1865, 20 European countries came together to create the International Telecommunication Union (ITU), a response to the tedious and inefficient telegraph system that required messages to be rewritten at every border. This practical move—born not from idealism but necessity—paved the way for a global communications framework that continues to underpin today’s digital world.

From the first bilateral agreements to modern platforms like Instagram and AI tools like ChatGPT, the same core principle remains: international cooperation is essential to seamless communication. Despite revolutionary advances in technology, diplomacy has changed slowly.

Yet ITU’s mission—to balance national interests with shared global connectivity—has remained constant. For instance, debates over digital privacy and cybersecurity today echo those from the 19th century over telegraph regulation.

Even as US policies toward multilateralism shift, its consistent support for the ITU showcases how diplomacy can maintain continuity across centuries of change. As Jovan Kurbalija notes in his recent blog post, understanding this long arc of diplomatic history is essential for making sense of today’s tech governance debates.

Crises often trigger breakthroughs in multilateral governance. The Titanic disaster, for example, catalysed swift international regulation of radio communication after years of stagnation. In our interconnected AI-driven era, similar ‘Titanic moments’ could once again force urgent global agreements.

That is especially pressing as technology continues to reshape power structures, favouring innovators and standard-setters, and reviving the age-old race between digital ‘haves’ and ‘have-nots.’

Why does it matter?

ITU’s 160-year legacy is a testament to the endurance of diplomacy amid technological disruption. While tools evolve—from telegraphs to AI—the diplomatic mission to resolve conflicts and foster cooperation remains unchanged. The story of ITU, as Kurbalija reflects, is not just about commemorating the past, but recognising the urgent need for global cooperation in shaping our digital future.

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Hong Kong breaks up cross-border crypto laundering ring

Hong Kong authorities have busted a cross-border crypto laundering network that processed around HK$118 million (US$15 million) in illicit funds. The crackdown led to a dozen arrests amid efforts to stop people from monetising personal banking credentials.

Raids led by the Commercial Crime Bureau on Thursday detained nine men and three women aged between 20 and 40 across several districts. Officials seized HK$1.05 million in cash, over 560 bank cards, multiple devices, and financial documents.

Investigators found the network had recruited mainland Chinese citizens since mid-2023 to open fraudulent bank accounts in Hong Kong. These accounts were used to channel criminal proceeds from scams, with cash withdrawn and converted into cryptocurrency.

Two Hong Kong residents were arrested as primary organisers, alongside ten mainland Chinese nationals who served as account fronts. The operation reportedly used more than 550 domestic bank accounts to launder about HK$118 million.

So far, authorities have linked HK$10 million of the laundered money to 58 fraud cases. Victims reported losses totalling HK$43.2 million. The network operated from a Mong Kok apartment, where recruits stayed while processing fraudulent transfers.

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China launches first AI satellites in orbital supercomputer network

China has launched the first 12 satellites in a planned network of 2,800 that will function as an orbiting supercomputer, according to Space News.

Developed by ADA Space in partnership with Zhijiang Laboratory and Neijang High-Tech Zone, the satellites can process their own data instead of relying on Earth-based stations, thanks to onboard AI models.

Each satellite runs an 8-billion parameter AI model capable of 744 tera operations per second, with the group already achieving 5 peta operations per second in total. The long-term goal is a constellation that can reach 1,000 POPS.

The network uses high-speed laser links to communicate and shares 30 terabytes of data between satellites. The current batch also carries scientific tools, such as an X-ray detector for studying gamma-ray bursts, and can generate 3D digital twin data for uses like disaster response or virtual tourism.

The space-based computing approach is designed to overcome Earth-based limitations like bandwidth and ground station availability, which means less than 10% of satellite data typically reaches the surface.

Experts say space supercomputers could reduce energy use by relying on solar power and dissipating heat into space. The EU and the US may follow China’s lead, as interest in orbital data centres grows.

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Coinbase hit by multiple data breach lawsuits

Coinbase faces multiple lawsuits after revealing a data breach involving bribed support agents leaking user information. At least six lawsuits were filed between 15 and 16 May, accusing the exchange of poor security and mishandling the breach.

One lawsuit filed in New York claims Coinbase failed to protect sensitive data of millions, including names, addresses, phone numbers, and partial Social Security numbers.

The complaint says the exchange’s response was slow and inadequate, putting users at risk of identity theft and fraud.

Other lawsuits allege Coinbase did not spend enough on security and demand compensation and stronger protections. One case asks the court to order Coinbase to delete sensitive data and hire third-party auditors.

Coinbase declined to comment on the lawsuits but confirmed it refused a $20 million ransom. It plans to reimburse users who lost crypto to phishing scams related to the breach. The company also fired involved customer support agents.

Following the breach announcement, Coinbase shares fell 7% but rebounded quickly, closing higher on 16 May.

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Coinbase hit by breach and SEC probe ahead of S&P 500 entry

Cryptocurrency exchange Coinbase has disclosed a potential financial impact of $180 million to $400 million following a cyberattack that compromised customer data, according to a regulatory filing on Thursday.

The company said it received an email from an unidentified threat actor on Sunday, claiming to possess internal documents and account data for a limited number of customers.

Although hackers gained access to personal information such as names, addresses, and email addresses, Coinbase confirmed that no login credentials or passwords were compromised.

Coinbase stated it would reimburse users who were deceived into transferring funds to the attackers. It also revealed that multiple contractors and support staff outside the US had provided information to the hackers. Those involved have been terminated, the company said.

In parallel, the US Securities and Exchange Commission (SEC) is reportedly investigating whether Coinbase previously misrepresented its verified user figures.

Two sources familiar with the matter told Reuters that the SEC inquiry is ongoing, though it does not focus on know-your-customer (KYC) compliance or Bank Secrecy Act obligations. Coinbase has denied any such investigation into its compliance practices.

The SEC declined to comment. Coinbase’s chief legal officer, Paul Grewal, characterised the probe as a continuation of a past investigation into a user metric the company stopped reporting over two years ago. He said Coinbase is cooperating with the SEC but believes the inquiry should be closed.

The news comes ahead of Coinbase’s upcoming addition to the S&P 500 index, potentially overshadowing what had been viewed as a major milestone for the industry. Shares fell 7.2% following the disclosure.

Coinbase has rejected a $20 million ransom demand from the attackers and is cooperating with law enforcement. It has also offered a $20 million reward for information leading to the identification of the hackers.

The firm is opening a new US-based support hub and taking further measures to strengthen its cybersecurity framework.

The cyberattack adds to broader concerns about digital asset platform vulnerabilities. In 2024, hacks have resulted in over $2.2 billion in stolen funds, according to Chainalysis. Bybit alone reported a $1.5 billion theft in February, the largest on record.

Coinbase is also facing a lawsuit filed in the Southern District of New York, alleging the company failed to protect personal data belonging to millions of current and former customers.

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Deepfake voice scams target US officials in phishing surge

Hackers are using deepfake voice and video technology to impersonate senior US government officials and high-profile tech figures in sophisticated phishing campaigns designed to steal sensitive data, the FBI has warned.

Since April, cybercriminals have been contacting current and former federal and state officials through fake voice messages and text messages claiming to be from trusted sources.

The scammers attempt to establish rapport and then direct victims to malicious websites to extract passwords and other private information.

The FBI cautions that if hackers compromise one official’s account, they may use that access to impersonate them further and target others in their network.

The agency urges individuals to verify identities, avoid unsolicited links, and enable multifactor authentication to protect sensitive accounts.

Separately, Polygon co-founder Sandeep Nailwal reported a deepfake scam in which bad actors impersonated him and colleagues via Zoom, urging crypto users to install malicious scripts. He described the attack as ‘horrifying’ and noted the difficulty of reporting such incidents to platforms like Telegram.

The FBI and cybersecurity experts recommend examining media for visual inconsistencies, avoiding software downloads during unverified calls, and never sharing credentials or wallet access unless certain of the source’s legitimacy.

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EU to propose new rules and app to protect children online

The European Commission is taking significant steps to create a safer online environment for children by introducing draft guidelines under the Digital Services Act. These guidelines aim to ensure that online platforms accessible to minors maintain a high level of privacy, safety, and security.

The draft guidelines propose several key measures to safeguard minors online. These include verifying users’ ages to restrict access where appropriate, improving content recommendation systems to reduce children’s exposure to harmful or inappropriate material, and setting children’s accounts to private by default.

Additionally, the guidelines recommend best practices for child-safe content moderation, as well as providing child-friendly reporting channels and user support. They also offer guidance on how platforms should govern themselves internally to maintain a child-safe environment.

These guidelines will apply to all online platforms that minors can access, except for very small enterprises, and will also cover very large platforms with over 45 million monthly users in the EU. The European Commission has involved a wide range of stakeholders in developing the guidelines, including Better Internet for Kids (BIK+) Youth ambassadors, children, parents, guardians, national authorities, online platform providers, and experts.

The inclusive consultation process helps ensure the guidelines are practical and comprehensive. The guidelines are open for feedback until June 10, 2025, with adoption expected by summer.

Meanwhile, the Commission is creating an open-source age-verification app to confirm users’ age without risking privacy, as a temporary measure before the EU Digital Identity Wallet launches in 2026.

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Japan approves preemptive cyberdefence law

Japan’s parliament has passed a new law enabling active cyberdefence measures, allowing authorities to legally monitor communications data during peacetime and neutralise foreign servers if cyberattacks occur.

Instead of reacting only after incidents, this law lets the government take preventive steps to counter threats before they escalate.

Operators of vital infrastructure, such as electricity and railway companies, must now report cyber breaches directly to the government. The shift follows recent cyber incidents targeting banks and an airline, prompting Japan to put a full framework in place by 2027.

Although the law permits monitoring of IP addresses in communications crossing Japanese borders, it explicitly bans surveillance of domestic messages and their contents.

A new independent panel will authorise all monitoring and response actions beforehand, instead of leaving decisions solely to security agencies.

Police will handle initial countermeasures, while the Self-Defense Forces will act only when attacks are highly complex or planned. The law, revised to address opposition concerns, includes safeguards to ensure personal rights are protected and that government surveillance remains accountable.

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du and Microsoft launch $544M AI data centre in UAE

Emirates Integrated Telecommunications Company PJSC (du) has partnered with Microsoft to build a 2 billion dirham (US$544.5 million) hyperscale data centre in the UAE, unveiled during Dubai AI Week.

Microsoft will be the facility’s primary tenant, and the project will be delivered in phases. This marks du’s sixth data centre, reinforcing the UAE’s growing status as a regional AI and data infrastructure hub.

The partnership aligns with the UAE’s National Strategy for AI 2031, which aims to generate US$96 billion in economic value by 2030.

Hyperscale data centres like this one are expected to form the backbone of the country’s AI ecosystem, which is projected to reach a value of US$46.33 billion by the same year.

The GCC data centre market is booming, with expected growth from US$3.48 billion in 2024 to US$9.49 billion by 2030. du’s move comes amid a regional race between cloud giants like Google, AWS, and Oracle, as well as local providers including Khazna, Equinix, and Gulf Data Hub.

Sustainability is also a growing focus, with new builds like Khazna’s Ajman facility incorporating energy-efficient cooling for high-performance AI workloads.

As AI-driven transformation accelerates across logistics, finance, and smart cities, the UAE is using these strategic partnerships and infrastructure investments to move from a resource-based economy to a data-driven one.

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