Ransomware 3.0 raises alarm over AI-generated cyber threats

Researchers at NYU’s Tandon School of Engineering have demonstrated how large language models can be utilised to execute ransomware campaigns autonomously. Their prototype, dubbed Ransomware 3.0, simulated every stage of an attack, from intrusion to the generation of a ransom note.

The system briefly raised an alarm after cybersecurity firm ESET discovered its files on VirusTotal, mistakenly identifying them as live malware. The proof-of-concept was designed only for controlled laboratory use and posed no risk outside testing environments.

Instead of pre-written code, the prototype embedded text instructions that triggered AI models to generate tailored attack scripts. Each execution created unique code, evading traditional detection methods and running across Windows, Linux, and Raspberry Pi systems.

The researchers found that the system identified up to 96% of sensitive files and could generate personalised extortion notes, raising psychological pressure on victims. With costs as low as $0.70 per attack using commercial AI services, such methods could lower barriers for criminals.

The team stressed that the work was conducted ethically and aims to help defenders prepare countermeasures. They recommend monitoring file access patterns, limiting outbound AI connections, and developing defences against AI-generated attack behaviours.

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Pressure mounts as Apple prepares AI search push with Google ties

Apple’s struggles in the AI race have been hard to miss. Its Apple Intelligence launch was disappointing, and its reliance on ChatGPT appeared to be a concession to rivals.

Bloomberg’s Mark Gurman now reports that Apple plans to introduce its AI-powered web search tool in spring 2026. The move would position it against OpenAI and Perplexity, while renewing pressure on Google.

The speculation comes after news that Google may integrate its Gemini AI into Apple devices. During an antitrust trial in April, Google CEO Sundar Pichai confirmed plans to roll out updates later this year.

According to Gurman, Apple and Google finalised an agreement for Apple to test a Google-developed AI model to boost its voice assistant. The partnership reflects Apple’s mixed strategy of dependence and rivalry with Google.

With a strong record for accurate Apple forecasts, Gurman suggests the company hopes the move will narrow its competitive gap. Whether it can outpace Google, especially given Pixel’s strong AI features, remains an open question.

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Altman questions if social media is dominated by bots

OpenAI CEO Sam Altman has sparked debate after admitting he increasingly struggles to distinguish between genuine online conversations and content generated by bots or AI models.

Altman described a ‘strangest experience’ while reading about OpenAI’s Codex model, saying comments instinctively felt fake even though he knew the growth trend was real. He said social media rewards, ‘LLM-speak,’ and astroturfing make communities feel less genuine.

His comments follow an earlier admission that he had never considered the so-called dead internet theory until now, when large language model accounts seemed to be running X. The theory claims bots and artificial content dominate online activity, though evidence of coordinated control is lacking.

Reactions were divided, with some users agreeing that online communities have become increasingly bot-like. Others argued the change reflects shifting dynamics in niche groups rather than fake accounts.

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Microsoft brings Anthropic AI into Office 365 as OpenAI tensions rise

The US tech giant Microsoft is expanding its AI strategy by integrating Anthropic’s Claude models into Office 365, adding them to apps like Word, Excel and Outlook instead of relying solely on OpenAI.

Internal tests reportedly showed Anthropic’s systems outperforming OpenAI in specific reasoning and data-processing tasks, prompting Microsoft to adopt a hybrid approach while maintaining OpenAI as a frontier partner.

The shift reflects growing strain between Microsoft and OpenAI, with disputes over intellectual property and cloud infrastructure as well as OpenAI’s plans for greater independence.

By diversifying suppliers, Microsoft reduces risks, lowers costs and positions itself to stay competitive while OpenAI prepares for a potential public offering and develops its own data centres.

Anthropic, backed by Amazon and Google, has built its reputation on safety-focused AI, appealing to Microsoft’s enterprise customers wary of regulatory pressures.

Analysts believe the move could accelerate innovation, spark a ‘multi-model era’ of AI integration, and pressure OpenAI to enhance its technology faster.

The decision comes amid Microsoft’s push to broaden its AI ecosystem, including its in-house MAI-1 model and partnerships with firms like DeepSeek.

Regulators are closely monitoring these developments, given Microsoft’s dominant role in AI investment and the potential antitrust implications of its expanding influence.

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Arm unveils Lumex mobile chips built for AI

UK-based chip designer Arm introduced Lumex, a next-generation chip design explicitly designed to power AI on smartphones, smartwatches, and next-generation PCs.

Arm, whose processor architecture underpins devices from Apple and Nvidia, described Lumex as its most advanced platform yet for real-time AI assistance, communication and on-device personalisation.

Arm’s senior vice-president Chris Bergey said consumers now expect instant, private, seamless AI features instead of gradual improvements.

The Lumex platform combines performance, privacy, and efficiency, allowing partners to use the design as delivered or configure it to their own requirements.

A brand that is part of a broader naming structure includes Neoverse for infrastructure, Niva for PCs, Zena for automotive, and Orbis for the internet of things.

Meanwhile, Arm is reportedly preparing to manufacture its chips, having recruited Amazon’s Rami Sinno, who helped build Trainium and Inferentia, to strengthen its in-house ambitions.

These moves mark a significant moment for Arm, as the company seeks to expand its influence in the AI hardware space and reduce reliance on licensing alone.

With the rise of generative AI, the push for high-performance chips designed around on-device intelligence is becoming central to the future of mobile technology.

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AI in weather forecasting takes centre stage in Abu Dhabi

Abu Dhabi hosted a Weather Summit that explored how AI could transform forecasting and support operations, such as cloud seeding. Experts emphasised that AI enhances analysis but must complement, rather than replace, human judgement.

Discussions focused on Earth-system forecasting using satellite datasets, IoT devices, and geospatial systems. Quality, interoperability, and equitable access to weather services were highlighted as pressing priorities.

Speakers raised questions about public and private sector incentives’ reliability, transparency, and influence on AI. Collaboration across sectors was crucial to strengthening trust and global cooperation in meteorology.

WMO President Dr Abdulla Al Mandous said forecasting has evolved from traditional observation to supercomputing and AI. He argued that integrating models with AI could deliver more precise local forecasts for agriculture, aviation, and disaster management.

The summit brought together leaders from UN bodies, research institutions, and tech firms, including Google, Microsoft, and NVIDIA. Attendees highlighted the need to bridge data gaps, particularly in developing regions, to confront rising climate challenges.

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International search widens for ransomware fugitive on EU Most Wanted

A Ukrainian cybercrime suspect has been added to the EU’s Most Wanted list for his role in the 2019 LockerGoga ransomware attack against a major Norwegian aluminium company and other global incidents.

The fugitive is considered a high-value target and is wanted by multiple countries. The US Department of Justice has offered up to USD 10 million for information leading to the arrest.

Europol stated that the identification of the suspect followed a lengthy, multinational investigation supported by Eurojust, with damages from the network estimated to be in the billions. Several members of the group have already been detained in Ukraine.

Investigators have mapped the network’s operations, tracing its hierarchy from malware developers and intrusion experts to money launderers who processed illicit proceeds. The wanted man is accused of directly deploying LockerGoga ransomware.

Europol has urged the public to visit the EU Most Wanted website and share information that could assist in locating the fugitive. The suspect’s profile is now live on the platform.

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Kazakhstan to create state digital asset fund

Kazakhstan President Kassym-Jomart Tokayev has announced plans to establish a State Digital Asset Fund to consolidate the country’s position in digital finance. The fund will accumulate a strategic crypto reserve through the National Bank’s Investment Corporation.

Crypto adoption in Kazakhstan has surged, doubling ownership from 4% in 2022 to 8% in 2024. Mining generated over $10 million in taxes, while licensed providers contributed $367,000 in the first eight months 2024.

Tokayev warned of rising online fraud, highlighting the need for anti-fraud centres, biometric ID systems, and enhanced legislation to protect citizens and state finances. He connected digital finance to urban development, unveiling Alatau City, a $7.2 billion fully digitalised smart city with crypto payments.

The initiative positions Kazakhstan as a regional leader in crypto strategy, combining economic growth, technological innovation, and digital infrastructure development.

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Japan and Taiwan deepen semiconductor collaboration beyond business

Experts from Japan and Taiwan have highlighted closer cooperation in semiconductors, stressing that ties extend beyond business into education and research.

At a forum in Taipei, SEMI’s Terry Tsao said Taiwan’s chip design and fabrication expertise complements Japan’s materials and manufacturing equipment strengths. He noted that TSMC’s Kumamoto expansion creates opportunities for talent development in partnership with local schools.

Tsao described Taiwanese growth as a golden semiconductor era, emphasising its success closely tied to Japanese collaboration. He argued that TSMC’s achievements in Japan also represent progress for Japan’s industry.

Kazuhito Hashimoto, head of the Japan Science and Technology Agency, said joint projects with Taiwan’s National Science and Technology Council are underway. He pledged support for expanded research exchanges between the two partners.

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Russian lawmaker pushes for creation of national crypto bank

A senior Russian policymaker has proposed the creation of a national crypto bank, arguing it would raise state revenues and help curb financial crime.

Yevgeny Masharov, a member of the Public Chamber of the Russian Federation, said a national crypto bank would bring vast sums of crypto into the legal economy. He added that lawmakers also aim to ban quasi-legal exchanges while exploring the launch of state-run trading platforms.

Masharov suggested that a crypto bank could be a tool against online fraud, particularly schemes involving ‘droppers’ who launder cash and crypto for criminals. He argued that by keeping transactions within an official system, authorities would have more control over illicit flows.

The initiative follows similar moves in Belarus, where President Alexander Lukashenko has instructed officials to accelerate work on a national crypto bank. Moscow also views such a project as a way to support miners, enable safer cross-border payments, and reduce reliance on Western-controlled financial networks.

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