Cybersecurity Archives | Page 5 of 358 | Digital Watch Observatory

Deepfakes scandal puts Elon Musk and X under scrutiny in France

French prosecutors have escalated concerns about deepfakes linked to Elon Musk’s platform X, alerting US authorities to suspicions that manipulated content may have been used to influence the company’s valuation.

According to the Paris prosecutor’s office, the controversy surrounding sexually explicit deepfakes generated by Grok, X’s AI tool, may have been deliberately amplified to artificially boost the value of X and its associated AI entity ahead of a planned stock market listing in June 2026.

Authorities in France confirmed they had contacted the US Department of Justice and legal representatives at the Securities and Exchange Commission to share findings related to the deepfakes investigation and potential financial implications.

The case builds on an ongoing French probe into X, which initially focused on alleged algorithmic interference in domestic politics. Investigations have since expanded to include the spread of Holocaust denial content and the dissemination of sexualised deepfakes through Grok.

French regulators have taken additional steps, including summoning Musk for a voluntary interview and conducting searches at X’s local offices, actions he has described as politically motivated. Parallel investigations have also been launched in the UK and across the European Union into the use of AI tools to generate harmful deepfakes involving women and minors.

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Social media ban in Ecuador targets youth crime recruitment

A proposal to restrict minors’ online activity is gaining momentum in Ecuador, where lawmakers are considering a social media ban for children under 15 as part of a broader response to rising organised crime.

Under discussion in the National Assembly, the initiative introduced by Assembly member Katherine Pacheco Machuca would amend the Code of Childhood and Adolescence to block access to platforms enabling public interaction, content sharing, and messaging. The proposal defines social networks broadly, covering services that allow users to create accounts, connect with others, and exchange content.

Unlike similar debates elsewhere, the justification for the social media ban is rooted less in mental health or privacy concerns and more in security. Ecuador has experienced a sharp deterioration in public safety, with rising homicide rates, expanding criminal networks, and increasing pressure on state institutions.

Recent findings from Ecuador’s Organised Crime Observatory indicate that around 27% of minors approached by criminal groups report initial contact through social media platforms. Surveys conducted by ChildFund Ecuador further suggest that vulnerable adolescents are increasingly exposed to recruitment tactics that combine economic incentives with normalised portrayals of violence.

In that context, the proposed social media ban is framed as a preventative measure against criminal recruitment rather than solely a child protection tool. The initiative forms part of a wider regulatory shift, including new cybersecurity legislation and draft laws targeting recruitment practices conducted through digital channels.

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Europe boosts AI, talent and investment to compete with US and China

Efforts to strengthen technological competitiveness in Europe focus on advancing AI capabilities, developing new forms of talent and improving access to investment.

Discussions at the CTx Tech Experience in Seville highlighted a growing consensus that innovation must scale more effectively if the region is to compete globally.

Participants emphasised that Europe continues to face structural challenges, including fragmented markets, regulatory complexity and limited capital for high-growth companies.

These constraints have made it more difficult for startups to expand, prompting calls for stronger coordination between public institutions and private investors.

AI is increasingly viewed as the foundation of the transformation. Industry leaders pointed to the emergence of new business opportunities driven by AI, alongside the need to translate innovation into scalable commercial outcomes.

At the same time, labour market dynamics are shifting towards hybrid skillsets that combine technical expertise with business understanding and critical thinking.

In such a context, strengthening Europe’s innovation capacity is seen as essential to competing with global powers such as the US and China.

As technological competition intensifies, the ability to align talent, capital and policy frameworks will play a decisive role in shaping the region’s position within the global digital economy.

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US releases national AI policy framework

The Trump Administration unveiled a national AI framework to boost competitiveness, security, and benefits for Americans. The plan seeks to ensure that AI innovation supports all citizens while maintaining public trust in the technology.

Six key objectives form the foundation of the policy. These include protecting children online, empowering parents with tools to manage digital safety, strengthening communities and small businesses, respecting intellectual property, defending free speech, and fostering innovation.

The framework also prioritises workforce development to prepare Americans for AI-driven job opportunities.

Federal uniformity is considered critical to the plan’s success. The Administration warns that a patchwork of state regulations could stifle innovation and reduce the United States’ ability to lead globally.

Congress is encouraged to collaborate closely to implement the framework nationwide.

The Administration emphasises that the United States must lead the AI race, ensuring the benefits of AI reach all Americans while addressing challenges such as privacy, security, and equitable access to opportunities.

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Social media linked to declining well-being among young people

The World Happiness Report 2026 has identified a growing decline in well-being among young people, with increased social media use emerging as a key contributing factor. These findings suggest that digital habits are increasingly shaping life satisfaction, particularly across Western societies.

The report notes that younger age groups now report significantly lower happiness levels compared to previous decades.

In regions such as North America and Western Europe, the decline coincides with a sharp rise in time spent on social media platforms. Researchers highlight that heavy usage is associated with measurable reductions in well-being, especially among younger users.

Alongside these trends, the report continues to rank Finland as the happiest country globally, reflecting broader stability in Nordic nations. However, such stability contrasts with emerging concerns about mental health and social outcomes in more industrialised regions, where digital environments are playing an increasingly influential role.

While the report identifies risks including cyberbullying, depression and online exploitation, it does not advocate for complete restrictions. Instead, it emphasises the need for carefully designed regulatory approaches that balance protection with the potential benefits of digital connectivity.

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Deepfake abuse crisis escalates worldwide

AI-generated deepfake abuse is emerging as a serious global threat, with women and girls disproportionately affected by non-consensual and harmful digital content. Advances in AI make it easy to create manipulated content that can spread across platforms within minutes and reach millions.

Data highlights the scale of the issue. The vast majority of deepfake content online consists of explicit material, overwhelmingly targeting women.

Accessible and often free tools have lowered the barrier to entry, enabling widespread misuse. At the same time, the ability to endlessly replicate and share such content makes removal nearly impossible once it is published.

Legal responses remain fragmented, with many pre-existing laws leaving gaps in addressing AI-generated deepfake abuse. Enforcement issues, such as cross-border challenges and limited digital forensics capabilities, make it unlikely that perpetrators will face consequences.

Pressure is mounting on governments and technology platforms to act. Calls for reform include clearer legislation, faster obligations to remove content, improved law enforcement capabilities, and stronger support systems for victims.

Without coordinated global action, deepfake abuse is set to expand alongside the technologies enabling it.

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Telefónica Tech moves to combine AI and quantum computing

Telefónica Tech has partnered with three European firms to bring AI and quantum computing closer together. The collaboration aims to improve how advanced models are developed and deployed across different environments.

The initiative brings together Qilimanjaro Quantum Tech, Multiverse Computing and Qcentroid. Their combined expertise is expected to support more efficient, compact and locally deployable AI systems.

Quantum computing is seen as a way to reduce the heavy processing demands of large AI models. Faster computation could yield more accurate results while reducing the time required to solve complex problems.

Each partner contributes specialised capabilities, from quantum hardware and algorithms to software platforms and orchestration tools. These technologies could support applications such as simulations, edge AI and rapid prototyping.

Telefónica Tech is also strengthening its role in integrating AI and quantum solutions for enterprise clients. The move reflects a broader push to build scalable, sovereign and next-generation digital infrastructure in Europe.

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AI-generated songs used in $10 million streaming fraud

A large-scale fraud scheme using AI-generated music has exposed vulnerabilities in streaming platforms and royalty systems. Billions of fake streams were used to divert payments away from legitimate artists and rights holders.

The scheme ran from 2017 to 2024 and involved uploading hundreds of thousands of AI-generated tracks. Automated programs were then used to stream the songs at scale, inflating play counts and generating revenue.

The operation relied on thousands of bot accounts, bulk email registrations and cloud-based systems. Streaming activity was spread across many tracks to reduce detection and maintain consistent earnings over time.

Michael Smith, a 54-year-old from North Carolina, has pleaded guilty to conspiracy to commit wire fraud in federal court. Prosecutors say he obtained more than $10 million and agreed to forfeit over $8 million in proceeds.

Authorities say the case highlights how AI and automation can be used to manipulate digital platforms. The court will determine the final sentence as concerns grow over similar schemes.

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Human data demand fuels new global digital economy

A growing number of individuals worldwide are participating in a new digital economy built around supplying data for AI systems.

Through platforms such as Kled AI and Silencio, users upload videos, audio recordings and personal interactions in exchange for payment, contributing to the development of increasingly sophisticated AI models.

Such a trend reflects a broader shift in the AI industry, where demand for high-quality human-generated data is rising as traditional web-based sources become more limited.

Researchers suggest that human data remains essential for improving system performance and modelling behaviour beyond existing datasets. As a result, data marketplaces have emerged as an alternative supply mechanism.

Economic considerations often shape participation. In regions facing limited employment opportunities or currency instability, earning income in global currencies can provide a meaningful financial incentive.

At the same time, similar practices are expanding in higher-income countries, where individuals seek supplementary income streams amid rising living costs.

However, the model introduces complex trade-offs.

Contributors may grant extensive usage rights over their data, sometimes on a long-term or irreversible basis. Experts note that such arrangements can reduce control over how personal information is reused, including in contexts not initially anticipated.

Concerns also extend to issues such as data security, transparency and the potential for misuse in areas including synthetic media and identity replication.

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EU faces pressure to strengthen digital safeguards ahead of elections

Emmanuel Macron has called for stronger enforcement of the EU digital rules, urging Ursula von der Leyen to act against risks linked to foreign interference in elections. The request comes amid growing concern over attempts to influence democratic processes across Europe.

In a letter addressed to the Commission, Macron stressed the importance of safeguarding electoral integrity in a challenging geopolitical environment.

He wrote:

‘In a geopolitical context marked by a multiplication of hostile stances against the European model and its democratic values, it is crucial that the Union… ensure the integrity of civic discourse and electoral processes’.

The proposal focuses on stricter enforcement instead of new legislation, particularly regarding the Digital Services Act. European authorities are encouraged to ensure that online platforms properly assess and mitigate systemic risks, including the spread of manipulated content and coordinated disinformation.

Attention is also directed toward algorithmic amplification, AI-generated content labelling and the removal of fake accounts.

As multiple elections approach across the EU, policymakers are considering how to apply existing regulatory tools more effectively to protect democratic systems.

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