Cybersecurity Archives | Page 4 of 345 | Digital Watch Observatory

EU considers stronger child protection in Digital Fairness Act

Capitals across the EU are being asked to discuss how stronger child protection measures should be incorporated into the upcoming Digital Fairness Act (DFA).

The initiative comes as policymakers attempt to address growing concerns about how online platforms expose minors to harmful content, manipulative design practices, and unsafe digital environments.

According to a document circulated during Cyprus’s Council presidency of the European Union, member states are expected to debate which concrete safeguards should be introduced as part of the broader consumer protection framework.

Officials are exploring whether new rules should require platforms to adopt stricter safeguards when designing digital services used by children.

The discussions are part of the European Union’s broader effort to strengthen digital governance and consumer protection across online platforms. Policymakers are increasingly focusing on how platform design, recommendation algorithms, and monetisation models may affect younger users.

The proposals could complement existing EU regulations targeting large digital platforms, while expanding protections specifically focused on minors.

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Australia introduces strict online child safety rules covering AI chatbots

New Age-Restricted Material Codes have begun to be enforced in Australia, requiring online platforms to introduce stronger protections to prevent children from accessing harmful digital content.

The rules apply across a wide range of services, including social media, app stores, gaming platforms, search engines, pornography websites, and AI chatbots.

Under the framework, companies must implement age-assurance systems before allowing access to content involving pornography, high-impact violence, self-harm material, or other age-restricted topics.

These measures also extend to AI companions and chatbots, which must prevent sexually explicit or self-harm-related conversations with minors.

The rules form part of Australia’s broader online safety framework overseen by the eSafety Commissioner, which will monitor compliance and enforce the codes.

Companies that fail to comply may face penalties of up to $49.5 million per breach.

The policy aims to shift responsibility toward technology companies by requiring them to build protections directly into their platforms.

Officials in Australia argue the measures mirror long-standing offline safeguards designed to prevent children from accessing adult environments or harmful material.

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ChatGPT ‘adult mode’ launch delayed as OpenAI focuses on core improvements

OpenAI has postponed the launch of ChatGPT’s ‘adult mode’, a feature designed to let verified adult users access erotica and other mature content.

Teams are focusing on improving intelligence, personality and proactive behaviour instead of releasing the feature immediately.

A feature that was first announced by Sam Altman in October, with an initial December rollout, aiming to allow adults more freedom while maintaining safety for younger users.

The project faced an earlier delay as internal teams prioritised the core ChatGPT experience.

OpenAI stated it still supports the principle of treating adults like adults but warned that achieving the right experience will require more time. No new release date has been provided.

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Pentagon AI dispute raises concerns for startups

A dispute between Anthropic and the Pentagon in the US has raised questions about whether startups will hesitate to pursue defence contracts. Negotiations over the use of Anthropic’s Claude AI technology collapsed, prompting the US administration to label the company a supply chain risk.

The situation in the US escalated as OpenAI secured its own agreement with the Pentagon. The development sparked backlash online, with reports of a surge in ChatGPT uninstalls after the defence partnership announcement.

Technology analysts in the US say the controversy highlights the unusual scrutiny facing high-profile AI firms. Companies such as OpenAI and Anthropic attract intense public attention because widely used AI products place their defence partnerships in the spotlight.

Startup founders in the US are now debating the risks of government contracts, particularly with the Pentagon. Industry observers in the US warn that defence authorities’ contract changes could make government collaboration more uncertain.

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EU and Canada begin negotiations on a digital trade agreement

The European Commission and Canada have launched negotiations on a new Digital Trade Agreement to strengthen the rules governing cross-border digital commerce.

The initiative was announced in Toronto by the EU Trade Commissioner Maroš Šefčovič and Canadian International Trade Minister Maninder Sidhu.

An agreement that will expand the digital dimension of the existing Comprehensive Economic and Trade Agreement, which has already increased trade in goods and services between the two partners.

Officials say the new negotiations aim to create clearer rules for businesses and consumers engaging in cross-border digital transactions.

Proposals under discussion include promoting paperless trade systems, recognising electronic signatures and digital contracts, and prohibiting customs duties on electronic transmissions.

The agreement between the EU and Canada will also seek to prevent protectionist practices such as unjustified data localisation requirements or forced transfers of software source code.

European officials argue that the negotiations reflect a broader effort to develop international standards for digital trade governance while preserving governments’ ability to regulate emerging challenges in the digital economy.

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Human workers behind AI training raise new privacy concerns

AI systems rely heavily on human labour to train and improve algorithms. Images and videos collected by AI-powered devices are often reviewed and labelled by human annotators so that systems can better recognise objects, environments, and context.

This work is frequently outsourced to data annotation companies such as Sama, which provides training data services for large technology firms, including Meta Platforms. Many of these tasks are carried out by contract workers in Nairobi, Kenya, where employees review large volumes of visual data under strict confidentiality agreements.

Recent investigations have raised concerns about privacy and data governance linked to AI wearables such as the Ray-Ban Meta smart glasses, developed in partnership with EssilorLuxottica. Some device features rely on cloud processing, meaning that captured images and voice inputs may be transmitted and analysed remotely.

Workers involved in the annotation process report regularly encountering sensitive material. Footage can include scenes recorded inside private homes, bedrooms, or bathrooms, as well as images that unintentionally reveal personal or financial information.

These practices raise broader questions about transparency and cross-border data transfers, particularly when data originating in Europe or the United States is processed in other countries. They also highlight the often-hidden human role behind AI systems that are frequently presented as fully automated technologies.

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Data breach hits fintech lender Figure exposing nearly 1 million accounts

Fintech lender Figure Technology Solutions has disclosed a data breach after hackers exposed personal information from nearly one million accounts. Details from 967,200 accounts, including names, email addresses, phone numbers, home addresses, and dates of birth, were compromised.

Figure Technology Solutions, founded in 2018, operates a blockchain-based lending platform built on the Provenance blockchain. The company says it has facilitated more than $22 billion in home equity transactions through partnerships with banks, credit unions, and fintech firms. Despite blockchain security claims, attackers reportedly gained access by manipulating a staff member rather than breaking the underlying technology.

‘We recently identified that an employee was socially engineered, and that allowed an actor to download a limited number of files through their account,’ a company spokesperson said. ‘We acted quickly to block the activity and retained a forensic firm to investigate what files were affected. We understand the importance of these matters and are communicating with partners and those impacted as appropriate.’

Security researchers say the data breach follows a pattern used by groups such as ShinyHunters, who impersonate IT support staff and pressure employees into revealing login credentials through convincing phishing portals.

Once access to corporate single sign-on systems, which allow users to log in to multiple internal applications with a single set of credentials, is obtained, attackers can move across multiple internal platforms, often including services linked to major providers such as Microsoft and Google.

Experts warn that the data breach highlights a wider cybersecurity problem: even advanced technologies such as blockchain cannot prevent attacks that target human behaviour. Criminals can use exposed personal information to launch convincing phishing campaigns or financial scams, reinforcing the need for stronger employee training and security awareness.

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New AI feature keeps Roblox chat respectful and flowing

Roblox Corporation has unveiled an AI-powered real-time chat rephrasing feature designed to maintain civility while keeping in-game conversations fluid. Previously, messages containing profanity were blocked with hashmarks, disrupting gameplay.

The new system automatically rephrases inappropriate language into more respectful alternatives while preserving the original meaning. Users in the chat are notified when their messages are rephrased, ensuring transparency.

The feature supports in-game chat between age-verified users and all languages via Roblox’s automatic translation. The company consulted its TEEN COUNCIL to design the system, ensuring it reflects how teens naturally communicate.

Earlier experiments with real-time warnings and notifications reduced filtered messages and abuse reports by 5–6%, indicating the approach’s effectiveness.

Roblox is also enhancing its text filters to detect complex attempts to bypass Community Standards, such as leet-speak or symbols. Testing shows a 20-fold reduction in missed cases involving the sharing of personal information, such as social handles or phone numbers.

These upgrades represent a significant step toward safer, more natural in-game chat.

The company plans to continue refining these tools, aiming to minimise disruptions further while promoting civil communication. Users can expect iterative improvements and additional controls in the future to enhance chat safety and overall user experience.

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Oracle launches AI system designed to predict construction safety risks

The US tech company Oracle has introduced a new AI platform to predict safety risks across construction projects.

A system called Advisor for Safety that aims to shift industry practices from reactive incident response to predictive risk prevention.

The AI model was trained using safety information equivalent to more than 10,000 project-years across multiple project types and locations.

By analysing historical patterns, the platform generates weekly forecasts that identify projects statistically most likely to experience safety incidents.

The solution also integrates structured safety observation tools through systems such as Oracle Aconex and Oracle Primavera Unifier, allowing field teams to collect consistent data on mobile devices or web platforms.

These inputs improve predictive accuracy while enabling organisations to track potential hazards earlier in the project lifecycle.

According to Oracle, the system combines data streams ranging from incident reports and payroll records to project schedules and operational metrics.

Early adopters reportedly reduced workplace incidents by up to 50 percent and workers’ compensation costs by as much as 75 percent during the first year of use.

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AI chips exports face tighter US oversight under new proposal

Washington is considering rules that would require US government approval for overseas purchases of AI chips, tightening control over the global semiconductor supply chain. Draft proposals would make foreign buyers seek Department of Commerce authorisation before acquiring AI chips from US suppliers.

Furthermore, scrutiny will vary by order size, giving US authorities more oversight of international demand for advanced processors. The proposed rules could significantly expand oversight of leading semiconductor manufacturers such as NVIDIA and AMD, whose AI chips underpin many advanced AI systems.

The new approach to regulating exports of AI chips marks a shift toward a more interventionist strategy. Previously, during the Biden administration, an AI diffusion regulation was finalised to control the global spread of AI technology. Yet, before this rule could take effect, the current administration scrapped it. Building on these developments, the current proposed rules represent a new chapter in US AI export policy.

A US Department of Commerce spokesperson said the agency remains committed to ‘promoting secure exports of the American tech stack,’ but rejected claims that the government is reviving the earlier diffusion framework, calling it ‘burdensome, overreaching, and disastrous.’

Meanwhile, critics warn that tighter controls could have unintended effects. Restrictions on AI chip exports may drive international buyers to non-US suppliers, potentially weakening US leadership in advanced semiconductor technology as global AI hardware competition intensifies.

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