German court rules Facebook users can seek compensation for data breach

Germany‘s Federal Court of Justice (BGH) has ruled that Facebook users affected by data breaches in 2018 and 2019 are entitled to compensation, even without proving financial losses. The court determined that the loss of control over personal data is sufficient grounds for damages, marking a significant step in data protection law.

The case stems from a 2021 breach involving Facebook’s friend search feature, where third parties accessed user accounts by exploiting phone number guesses. Lower courts in Cologne previously dismissed compensation claims, but the BGH ordered a re-examination, suggesting around €100 in damages could be awarded per user without proof of financial harm.

Meta, Facebook’s parent company, has resisted compensation, arguing that users did not suffer concrete damages. A spokesperson for Meta described the ruling as inconsistent with recent European Court of Justice decisions and noted that similar claims have been dismissed by German courts in thousands of cases. The breach reportedly impacted around six million users in Germany.

The court also instructed a review of Facebook’s terms of use, questioning whether they were transparent and whether user consent for data handling was voluntary. The decision adds pressure on companies to strengthen data protection measures and could set a precedent for future claims across Europe.

US lawmakers to probe China’s role in telecom breaches

The US Senate Judiciary subcommittee will convene a hearing on Tuesday to investigate recent Chinese cyberattacks targeting American telecommunications companies. The hearing, led by Senator Richard Blumenthal, will delve into the national security threats posed by these breaches and their impact on the US economy.

Authorities allege that China-linked hackers accessed surveillance data from telecom networks, intercepting sensitive communications tied to government and political figures. This breach has heightened concerns over the security of critical infrastructure, especially as bipartisan lawmakers scrutinise the role of major providers like AT&T and Verizon.

The session will also include discussions on Elon Musk’s business ties with China amid his growing involvement in US government affairs. Witnesses, including cybersecurity and industry experts, are expected to shed light on the scale and potential consequences of these incidents. Beijing, however, has denied any involvement in cyber espionage activities.

FINMA warns of crypto money laundering risks

Swiss and Nepalese regulators have raised red flags about the growing risks of cryptocurrency misuse. In its latest Risk Monitor report, Switzerland’s financial watchdog FINMA identified digital assets, especially stablecoins, as a high-risk area for money laundering. The agency highlighted their role in sanctions evasion, dark web transactions, and cyberattacks. FINMA has tightened oversight of financial institutions offering crypto-related services to safeguard the sector’s reputation.

Meanwhile, Nepal’s Financial Intelligence Unit (FIU) reported a surge in crypto misuse for cross-border money laundering and fraudulent investment schemes. Despite a national ban on crypto trading, fraudsters continue exploiting digital assets to obscure illicit funds. Victims often avoid reporting crimes, fearing legal repercussions or social stigma, hindering enforcement efforts.

Authorities in both countries are calling for robust measures to combat these threats, emphasising the need for heightened vigilance and better reporting mechanisms.

Bitfinex hacker’s wife jailed for laundering

Heather Morgan, also known as Razzlekhan, has been sentenced to 18 months in prison for her role in laundering Bitcoin stolen during the 2016 Bitfinex hack. Her husband, Ilya Lichtenstein, who orchestrated the theft of 119,754 Bitcoin, received a five-year prison term. While Morgan was not involved in the hacking itself, she played a significant part in concealing the stolen funds, now valued at $10b.

The couple’s sentences were reduced due to their cooperation with US authorities in other crypto-related cases. However, US District Judge Colleen Kollar-Kotelly stressed the deliberate nature of Morgan’s actions, highlighting the sophisticated methods she used, such as fake identities and small transfers to evade detection.

Morgan’s request for a ‘time served’ sentence was denied, despite claims of harsh pretrial detention conditions. Following her prison term, she will face 36 months of supervised release and a $200 fine. The case underscores the growing scrutiny on crypto-related crime and the severe penalties for offenders.

New startup tackles AI energy demands with analog tech

With AI adoption surging, data centers are bracing for a 160% jump in electricity consumption by 2030, driven by the energy demands of GPUs. Sagence AI, a startup led by Vishal Sarin, is addressing this challenge by developing analog chips that promise greater energy efficiency without sacrificing performance.

Unlike traditional digital chips, Sagence’s analog designs minimise memory bottlenecks and offer higher data density, making them a viable option for specialised AI applications in servers and mobile devices. While analog chips pose challenges in precision and programming, Sagence aims to complement, not replace, digital solutions, delivering cost-effective and eco-friendly alternatives.

Backed by $58M in funding from investors like TDK Ventures and New Science Ventures, Sagence plans to launch its chips in 2025. As it scales operations, the startup faces stiff competition from industry giants and will need to prove its technology can outperform established systems while maintaining lower energy consumption.

Trump deepfake scam bot targets crypto users

Russian security experts have uncovered a new deepfake scam exploiting the image of Donald Trump, targeting English-speaking audiences. FACCT, a Moscow-based cybercrime prevention firm, reported that scammers are using a bot to create deepfake videos of prominent figures like Trump, Elon Musk, and Tucker Carlson. These videos are being shared on platforms such as TikTok and YouTube to promote fraudulent crypto exchanges.

The bot allows users to generate customised videos with text up to 400 characters long, which fraudsters use to advertise fake trading platforms. FACCT identified three primary scams: fake exchanges where victims’ tokens are stolen, malware links that compromise crypto wallets, and bogus tokens that can’t be sold.

This warning follows a rise in crypto-related scams in Russia, including digital ruble frauds. Authorities are urging vigilance as the Russian Central Bank prepares to launch its central bank digital currency nationwide next year.

AI voice theft sparks David Attenborough’s outrage

David Attenborough has criticised American AI firms for cloning his voice to narrate partisan reports. Outlets such as The Intellectualist have used his distinctive voice for topics including US politics and the war in Ukraine.

The broadcaster described these acts as ‘identity theft’ and expressed profound dismay over losing control of his voice after decades of truthful storytelling. Scarlett Johansson has faced a similar issue, with AI mimicking her voice for an online persona called ‘Sky’.

Experts warn that such technology poses risks to reputations and legacies. Dr Jennifer Williams of Southampton University highlighted the troubling implications for Attenborough’s legacy and authenticity in the public eye.

Regulations to prevent voice cloning remain absent, raising concerns about its misuse. The Intellectualist has yet to comment on Attenborough’s allegations.

Japan, US, and South Korea bolster maritime, aerial, and cyber defence cooperation

Japan, the United States, and South Korea concluded a three-day joint military exercise, Freedom Edge, showcasing their commitment to strengthening multi-domain defence cooperation amidst escalating tensions in East Asia. Select training sessions were open to media in the second iteration of Freedom Edge. The drills spanned maritime, aerial, and cyber domains, and operations were conducted in strategic areas, including the East China Sea near South Korea’s Jeju Island.

Designed to counter various threats — from ballistic missiles and cyberattacks to fighter jets and submarines — the drills emphasised seamless coordination among the three nations’ forces. By refining joint response procedures, the exercise bolstered deterrence and preparedness for complex regional challenges.

Biden and Xi reach agreement to restrict AI in nuclear weapons decisions

President Joe Biden and China’s President Xi Jinping held a two-hour meeting on the sidelines of the APEC summit on Saturday. Both leaders reached a significant agreement to prevent AI from controlling nuclear weapons systems and made progress on securing the release of two US citizens wrongfully detained in China. Biden also pressured Xi to reduce North Korea’s support for Russia in the ongoing Ukraine conflict.

The breakthrough in nuclear safety, particularly the commitment to maintain human control over nuclear decisions, was reported as an achievement for Biden’s foreign policy. Xi, in contrast, called for greater dialogue and cooperation with the US and cautioned against efforts to contain China. His remarks also acknowledged rising geopolitical challenges, hinting at the difficulties that may arise under a Trump presidency. The meeting showcased a shift in tone from their previous encounter in 2023, reflecting a more constructive dialogue despite underlying tensions.

Reuters reported that it remains uncertain whether the statement will result in additional talks or concrete actions on the issue. The US has long held the position that AI should assist and enhance military capabilities, but not replace human decision-making in high-stakes areas such as nuclear weapons control. Last year, the Biden-Harris administration announced the Political declaration on responsible military use of AI and autonomy, and more than 20 countries endorsed the declaration. The declaration specifically underlines that “military use of AI capabilities needs to be accountable, including through such use during military operations within a responsible human chain of command and control”.

Google calls for better protection of Africa’s fibre optic infrastructure

Governments across Africa should increase the protection of fibre optic cables from theft and vandalism, while also aligning regulations to boost tech infrastructure development, according to a Google executive. Charles Murito, Google’s head of government relations and public policy in Africa, emphasised the need to classify fibre cables as critical infrastructure, which would ensure severe consequences for those who damage them. Theft and vandalism targeting batteries, generators, and cables have driven up costs for infrastructure providers.

Murito, speaking at the Africa Tech conference, highlighted Google’s investments in subsea cables, including Equiano, connecting Africa with Europe, and the upcoming Umoja cable linking Africa and Australia. He stressed that better protections and regulatory harmonisation could make the continent more appealing to tech investors. Industry leaders agree that such measures are essential to encouraging business expansion in Africa.

Additionally, Murito has called for more infrastructure sharing among internet service providers to reduce data costs. The diverse regulations across African nations concerning permissions for cable installations hinder the expansion of fibre networks. Although South Africa‘s authorities have acknowledged the issue, urging law enforcement to act and proposing legal updates, fibre optic cables have yet to receive a new critical classification.