Digital identities

Microsoft disrupts global RedVDS cybercrime network

Microsoft has launched a joint legal action in the US and the UK to dismantle RedVDS, a subscription service supplying criminals with disposable virtual computers for large-scale fraud. The operation with German authorities and Europol seized key domains and shut down the RedVDS marketplace.

RedVDS enabled sophisticated attacks, including business email compromise and real estate payment diversion schemes. Since March 2025, it has caused about US $40 million in US losses, hitting organisations like H2-Pharma and Gatehouse Dock Condominium Association.

Globally, over 191,000 organisations have been impacted by RedVDS-enabled fraud, often combined with AI-generated emails and multimedia impersonation.

Microsoft emphasises that targeting the infrastructure, rather than individual attackers, is key. International cooperation disrupted servers and payment networks supporting RedVDS and helped identify those responsible.

Users are advised to verify payment requests, use multifactor authentication, and report suspicious activity to reduce risk.

The civil action marks the 35th case by Microsoft’s Digital Crimes Unit, reflecting a sustained commitment to dismantling online fraud networks. As cybercrime evolves, Microsoft and partners aim to block criminals and protect people and organisations globally.

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MIT tool combines AI and physics for 3D printing

MIT researchers have developed a generative AI system called MechStyle that allows users to personalise 3D-printed objects while ensuring they remain durable and functional.

The tool combines AI-driven design with physics simulations, allowing everyday items such as vases, hooks, and glasses to be customised without compromising structural integrity.

Users can upload their own 3D models or select presets and use text or image prompts to guide the design. MechStyle modifies the geometry and simulates stress points to maintain strength, enabling unique, tactile, and usable creations.

The system can personalise aesthetics while preserving functionality, even for assistive devices like finger splints and utensil grips.

To optimise performance, MechStyle employs an adaptive scheduling strategy that checks only the critical areas of a model, reducing computation time. Early tests of 30 objects, including designs resembling bricks, cacti, and stones, showed up to 100% structural viability.

The tool offers a freestyle mode for rapid experimentation and a careful mode for analysing the effects of modifications. Researchers plan to expand MechStyle to generate entirely new 3D models from scratch and improve faulty designs.

The project reflects collaboration with Google, Stability AI, and Northeastern University and was presented at the ACM Symposium on Computational Fabrication. Its potential extends to personal items, home and office décor, and even commercial prototypes for retail products.

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Why young people across South Asia turn to AI

Children and young adults across South Asia are increasingly turning to AI tools for emotional reassurance, schoolwork and everyday advice, even while acknowledging their shortcomings.

Easy access to smartphones, cheap data and social pressures have made chatbots a constant presence, often filling gaps left by limited human interaction.

Researchers and child safety experts warn that growing reliance on AI risks weakening critical thinking, reducing social trust and exposing young users to privacy and bias-related harms.

Studies show that many children understand AI can mislead or oversimplify, yet receive little guidance at school or home on how to question outputs or assess risks.

Rather than banning AI outright, experts argue for child-centred regulation, stronger safeguards and digital literacy that involves parents, educators and communities.

Without broader social support systems and clear accountability from technology companies, AI risks becoming a substitute for human connection instead of a tool that genuinely supports learning and wellbeing.

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AI-assisted money management adoption rises

Young adults in the UK are increasingly turning to AI for help with managing their finances, as many struggle to save and maintain control over spending.

A survey of 5,000 adults aged 28 to 40 found that impulse purchases and weak self-discipline frequently undermine savings, while most feel they could improve their financial knowledge.

AI-powered financial tools are gaining traction, particularly among those aged 28 to 34. Nearly two-thirds of respondents would trust AI to advise on disposable income, and over half would allow it to manage bills or prevent overdrafts.

However, nearly a quarter prefer to start with limited use, seeking proof of value before full engagement.

Regional differences highlight the uneven financial landscape in the UK. Londoners save significantly more than the national average, while cities such as Newcastle and Cardiff lag far behind.

Experts suggest fintech solutions must balance behavioural support with practical assistance and consider regional disparities to be effective.

Fintechs should prioritise tools that deliver immediate value over purely aspirational AI features. Modular tools and age- or region-specific solutions are likely to engage users, especially older millennials with rising financial responsibilities.

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Internet access suspended in Uganda before presidential vote

Uganda’s communications regulator has ordered a nationwide internet shutdown ahead of Thursday’s general election. The move is intended to prevent misinformation, electoral fraud, and incitement to violence.

The shutdown was due to begin at 18:00 local time on Tuesday, with no end date specified. Mobile data users in Uganda reported losing access, while some business networks, including hotels, remained connected. Voice calls and basic SMS services were expected to continue operating.

The regulator said it was acting on recommendations from security agencies, including the army and police. In a letter to operators, it described the suspension as a precautionary measure to protect national stability during what it called a sensitive national exercise.

Uganda imposed a similar internet blackout during the 2021 election, which was followed by protests in which dozens of people were killed. Earlier this month, the commission had dismissed reports of another shutdown as rumours, saying it aimed to guarantee uninterrupted connectivity.

President Yoweri Museveni, 81, is seeking a seventh term against opposition challenger Bobi Wine, 43, whose real name is Robert Kyagulanyi. Wine criticised the internet suspension and urged supporters to use Bluetooth-based messaging apps, though authorities warned those could also be restricted.

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X restricts Grok image editing after global backlash

Elon Musk’s X has limited the image editing functions of its Grok AI tool after criticism over the creation of sexualised images of real people.

The platform said technological safeguards have been introduced to block such content in regions where it is illegal, following growing concern from governments and regulators.

UK officials described the move as a positive step, although regulatory scrutiny remains ongoing.

Authorities are examining whether X complied with existing laws, while similar investigations have been launched in the US amid broader concerns over the misuse of AI-generated imagery.

International pressure has continued to build, with some countries banning Grok entirely instead of waiting for platform-led restrictions.

Policy experts have welcomed stronger controls but questioned how effectively X can identify real individuals and enforce its updated rules across different jurisdictions.

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IBM launches software focused on digital sovereignty and AI

The tech giant, IBM, has announced IBM Sovereign Core, a new software offering designed to help organisations deploy and manage AI-ready environments under sovereign control.

The product addresses growing regulatory and governance requirements as enterprises and governments seek greater authority over data, infrastructure and AI operations.

Digital sovereignty, according to IBM, extends beyond where data is stored and includes who controls systems, how access is governed and under which jurisdiction AI workloads operate.

IBM Sovereign Core is positioned as a foundational software layer that embeds sovereignty into operations instead of applying controls after deployment.

Built on Red Hat’s open-source technologies, the software enables customer-operated control planes, in-jurisdiction identity management and continuous compliance reporting. AI workloads, including inference and model hosting, can be governed locally without exporting data to external providers.

IBM plans to offer the software across on-premises environments, in-region cloud infrastructure and through selected service providers.

A technology preview is expected to begin in February, with full general availability planned for mid-2026.

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SEC chair looking ahead to the next phase of crypto regulation

SEC Chair Paul Atkins says US crypto market structure legislation is close to becoming law, with President Donald Trump expected to sign it soon. The move aims to end regulatory uncertainty and provide clear legal foundations for digital asset markets.

Atkins has openly backed Congress in defining the jurisdictional split between the Securities and Exchange Commission and the Commodity Futures Trading Commission, arguing that statutory clarity is essential for protecting investors and supporting institutional growth.

Supporters believe clear rules will replace enforcement-led interpretation and allow the sector to mature within established financial frameworks.

Progress is moving through Congress, with the Senate Banking Committee advancing the CLARITY Act while the Agriculture Committee continues negotiations. Despite disagreements and amendments, bipartisan support suggests the bill could reach the White House by the end of the first quarter.

Looking ahead, Atkins has linked the bill to long-term US competitiveness, stating that clear and principled regulation will encourage innovation and attract capital. Coordination between the SEC, CFTC and the White House is expected to be central to implementation.

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France weighs social media ban for under 15s

France’s health watchdog has warned that social media harms adolescent mental health, particularly among younger girls. The assessment is based on a five-year scientific review of existing research.

ANSES said online platforms amplify harmful pressures, cyberbullying and unrealistic beauty standards. Experts found that girls, LGBT youths and vulnerable teens face higher psychological risks.

France is debating legislation to ban social media access for children under 15. President Emmanuel Macron supports stronger age restrictions and platform accountability.

The watchdog urged changes to algorithms and default settings to prioritise child well-being. Similar debates have emerged globally following Australia’s introduction of a teenage platform ban.

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UK drops mandatory digital ID plan for workers

The UK government has dropped plans for mandatory digital ID for workers. Ministers say existing right-to-work checks will be digitised instead.

Labour had argued compulsory digital ID would curb illegal working and fraud in the UK. Under the revised plan, checks will become fully online by 2029, without the need for a new standalone ID system.

The reversal follows a political backlash, collapsing public support and concern among Labour MPs. Keir Starmer faced criticism over unclear messaging and repeated recent policy U-turns.

Ministers say platforms like Gov.uk One Login remain central to reform. Regulators, including Ofcom, continue to oversee digital compliance and worker protections.

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