Cybersecurity

IMF calls for stronger AI regulation in global securities markets

Regulators worldwide are being urged to adopt stronger oversight frameworks for AI in capital markets after an IMF technical note warned that rapid AI adoption could reshape securities trading while increasing systemic risk.

AI brings major efficiency gains in asset management and high-frequency trading instead of slower, human-led processes, yet opacity, market volatility, cyber threats and model concentration remain significant concerns.

The IMF warns that AI could create powerful data oligopolies where only a few firms can train the strongest models, while autonomous trading agents may unintentionally collude by widening spreads without explicit coordination.

Retail investors also face rising exposure to AI washing, where financial firms exaggerate or misrepresent AI capability, making transparency, accountability and human-in-the-loop review essential safeguards.

Supervisory authorities are encouraged to scale their own AI capacity through SupTech tools for automated surveillance and social-media sentiment monitoring.

The note highlights India as a key case study, given the dominance of algorithmic trading and SEBI’s early reporting requirements for AI and machine learning. The IMF also points to the National Stock Exchange’s use of AI in fraud detection as an emerging-market model for resilient monitoring infrastructure.

The report underlines the need for regulators to prepare for AI-driven market shocks, strengthen governance obligations on regulated entities and build specialist teams capable of understanding model risk instead of reacting only after misconduct or misinformation harms investors.

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Agentic AI, digital twins, and intelligent wearables reshape security operations in 2026

Operational success in security technology is increasingly being judged through measurable performance rather than early-stage novelty.

As 2026 approaches, Agentic AI, digital twins and intelligent wearables are moving from research concepts into everyday operational roles, reshaping how security functions are designed and delivered.

Agentic AI is no longer limited to demonstrations. Instead of simple automation, autonomous agents now analyse video feeds, access data and sensor logs to investigate incidents and propose mitigation steps for human approval.

Adoption is accelerating worldwide, particularly in Singapore, where most business leaders already view Agentic AI as essential for maintaining competitiveness. The technology is becoming embedded in workflows rather than used as an experimental add-on.

Digital twins are also reaching maturity. Instead of being static models, they now mirror complex environments such as ports, airports and high-rise estates, allowing organisations to simulate emergencies, plan resource deployment, and optimise systems in real time.

Wearables and AR tools are undergoing a similar shift, acting as intelligent companions that interpret the environment and provide timely guidance, rather than operating as passive recording devices.

The direction of travel is clear. Security work is becoming more predictive, interconnected and immersive.

Organisations most likely to benefit are those that prioritise integration, simulation and augmentation, while measuring outcomes through KPIs such as response speed, false-positive reduction and decision confidence instead of chasing technological novelty.

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AI chatbots exploited to create nonconsensual bikini deepfakes

Users of popular AI chatbots are generating bikini deepfakes by manipulating photos of fully clothed women, often without consent. Online discussions show how generative AI tools can be misused to create sexually suggestive deepfakes from ordinary images, raising concerns about image-based abuse.

A now-deleted Reddit thread shared prompts for using Google’s Gemini to alter clothing in photographs. One post asked for a woman’s traditional dress to be changed to a bikini. Reddit removed the content and later banned the subreddit over deepfake-related harassment.

Researchers and digital rights advocates warn that nonconsensual deepfakes remain a persistent form of online harassment. Millions of users have visited AI-powered websites designed to undress people in photos. The trend reflects growing harm enabled by increasingly realistic image generation tools.

Most mainstream AI chatbots prohibit the creation of explicit images and apply safeguards to prevent abuse. However, recent advances in image-editing models have made it easier for users to bypass guardrails using simple prompts, according to limited testing and expert assessments.

Technology companies say their policies ban altering a person’s likeness without consent, with penalties including account suspensions. Legal experts argue that deepfakes involving sexualised imagery represent a core risk of generative AI and that accountability must extend to both users and platforms.

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AI-generated Jesuses spark concern over faith and bias

AI chatbots modelled on Jesus are becoming increasingly popular over Christmas, offering companionship or faith guidance to people who may feel emotionally vulnerable during the holidays.

Several platforms, including Character.AI, Talkie.AI and Text With Jesus, now host simulations claiming to answer questions in the voice of Jesus Christ.

Experts warn that such tools could gradually reshape religious belief and practice. Training data is controlled by a handful of technology firms, which means AI systems may produce homogenised and biased interpretations instead of reflecting the diversity of real-world faith communities.

Users who are young or unfamiliar with AI may also struggle to judge the accuracy or intent behind the answers they receive.

Researchers say AI chatbots are currently used as a supplement rather than a replacement for religious teaching.

However, concern remains that people may begin to rely on AI for spiritual reassurance during sensitive moments. Scholars recommend limiting use over the holidays and prioritising conversations with family, friends or trusted religious leaders instead of seeking emotional comfort from a chatbot.

Experts also urge users to reflect carefully on who designs these systems and why. Fact-checking answers and grounding faith in recognised sources may help reduce the risk of distortion as AI plays a growing role in people’s daily lives.

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Small businesses battle rising cyber attacks in the US

Many small businesses in the US are facing a sharp rise in cyber attacks, yet large numbers still try to manage the risk on their own.

A recent survey by Guardz found that more than four in ten SMBs have already experienced a cyber incident, while most owners believe the overall threat level is continuing to increase.

Rather than relying on specialist teams, over half of small businesses still leave critical cybersecurity tasks to untrained staff or the owner. Only a minority have a formal incident response plan created with a cybersecurity professional, and more than a quarter do not carry cyber insurance.

Phishing, ransomware and simple employee mistakes remain the most common dangers, with negligence seen as the biggest internal risk.

Recovery times are improving, with most affected firms able to return to normal operations quickly and very few suffering lasting damage.

However, many still fail to conduct routine security assessments, and outdated technology remains a widespread concern. Some SMBs are increasing cybersecurity budgets, yet a significant share still spend very little or do not know how much is being invested.

More small firms are now turning to managed service providers instead of trying to cope alone.

The findings suggest that preparation, professional support and clearly defined response plans can greatly improve resilience, helping organisations reduce disruption and maintain business continuity when an attack occurs.

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ChatGPT may move beyond GPTs as OpenAI develops new Skills feature

OpenAI is said to be testing a new feature for ChatGPT that would mark a shift from Custom GPTs toward a more modular system of Skills.

Reports suggest the project, internally codenamed Hazelnut, will allow users and developers to teach the AI model standalone abilities, workflows and domain knowledge instead of relying only on role-based configurations.

The Skills framework is designed to allow multiple abilities to be combined automatically when a task requires them. The system aims to increase portability across the web version, desktop client and API, while loading instructions only when needed instead of consuming the entire context window.

Support for running executable code is also expected, providing the model with stronger reliability for logic-driven work, rather than relying entirely on generated text.

Industry observers note similarities to Anthropic’s Claude, which already benefits from a skill-like structure. Further features are expected to include slash-command interactions, a dedicated Skill editor and one-click conversion from existing GPTs.

Market expectations point to an early 2026 launch, signalling a move toward ChatGPT operating as an intelligent platform rather than a traditional chatbot.

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South Korea fake news law sparks fears for press freedom

A significant debate has erupted in South Korea after the National Assembly passed new legislation aimed at tackling so-called fake news.

The revised Information and Communications Network Act bans the circulation of false or fabricated information online. It allows courts to impose punitive damages up to five times the losses suffered when media outlets or YouTubers intentionally spread disinformation for unjust profit.

Journalists, unions and academics warn that the law could undermine freedom of expression and weaken journalism’s watchdog function instead of strengthening public trust.

Critics argue that ambiguity over who decides what constitutes fake news could shift judgement away from the courts and toward regulators or platforms, encouraging self-censorship and increasing the risk of abusive lawsuits by influential figures.

Experts also highlight the lack of strong safeguards in South Korea against malicious litigation compared with the US, where plaintiffs must prove fault by journalists.

The controversy reflects more profound public scepticism about South Korean media and long-standing reporting practices that sometimes rely on relaying statements without sufficient verification, suggesting that structural reform may be needed instead of rapid, punitive legislation.

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Nomani investment scam spreads across social media

Fraudulent investment platform Nomani has surged, spreading from Facebook to YouTube. ESET blocked tens of thousands of malicious links this year, mainly in Czech Republic, Japan, Slovakia, Spain, and Poland.

The scam utilises AI-generated videos, branded posts, and social media advertisements to lure victims into fake investments that promise high returns. Criminals then request extra fees or sensitive personal data, and often attempt a secondary scam posing as Europol or INTERPOL.

Recent improvements make Nomani’s AI videos more realistic, using trending news or public figures to appear credible. Campaigns run briefly and misuse social media forms and surveys to harvest information while avoiding detection.

Despite overall growth, detections fell 37% in the second half of 2025, suggesting that scammers are adapting to more stringent law enforcement measures. Meta’s ad platforms earned billions from scams, demonstrating the global reach of Nomani fraud.

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Aflac confirms large-scale data breach following cyber incident

US insurance firm Aflac has confirmed that a cyberattack disclosed in June affected around 22.65 million people. The breach involved the theft of sensitive personal and health information; however, the company initially did not specify the number of individuals affected.

In filings with the Texas attorney general, Aflac said the compromised data includes names, dates of birth, home addresses, government-issued identification numbers, driving licence details, and Social Security numbers. Medical and health insurance information was also accessed during the incident.

A separate filing with the Iowa attorney general suggested the attackers may be linked to a known cybercriminal organisation. Federal law enforcement and external cybersecurity specialists indicated the group had been targeting the insurance sector more broadly.

Security researchers have linked a wave of recent insurance-sector breaches to Scattered Spider, a loosely organised group of predominantly young, English-speaking hackers. The timing and targeting of the Aflac incident align with the group’s activity.

The US company stated that it has begun notifying the affected individuals. The company, which reports having around 50 million customers, did not respond to requests for comment. Other insurers, including Erie Insurance and Philadelphia Insurance Companies, reported breaches during the same period.

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South Korea tightens ID checks with facial verification for phone accounts

Mandatory facial verification will be introduced in South Korea for anyone opening a new mobile phone account, as authorities try to limit identity fraud.

Officials said criminals have been using stolen personal details to set up phone numbers that later support scams such as voice phishing instead of legitimate services.

Major mobile carriers, including LG Uplus, Korea Telecom and SK Telecom, will validate users by matching their faces against biometric data stored in the PASS digital identity app.

Such a requirement expands the country’s identity checks rather than replacing them outright, and is intended to make it harder for fraud rings to exploit stolen data at scale.

The measure follows a difficult year for data security in South Korea, marked by cyber incidents affecting more than half the population.

SK Telecom reported a breach involving all 23 million of its customers and now faces more than $1.5 billion in penalties and compensation.

Regulators also revealed that mobile virtual network operators were linked to 92% of counterfeit phones uncovered in 2024, strengthening the government’s case for tougher identity controls.

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