Digital identities

Korean Air employee data breach exposes 30,000 records after cyberattack

Investigators are examining a major data breach involving Korean Air after personal records for around 30,000 employees were exposed in a cyberattack on a former subsidiary.

An incident that affected KC&D Service, which previously handled in-flight catering before being sold to private equity firm Hahn and Company in 2020.

The leaked information is understood to include employee names and bank account numbers. Korean Air said customer records were not impacted, and emergency security checks were completed instead of waiting for confirmation of the intrusion.

Korean Air also reported the breach to the relevant authorities.

Executives said the company is focusing on identifying the full scope of the breach and who has been affected, while urging KC&D to strengthen controls and prevent any recurrence. Korean Air also plans to upgrade internal data protection measures.

The attack follows a similar case at Asiana Airlines last week, where details of about 10,000 employees were compromised, raising wider concerns over cybersecurity resilience across the aviation sector of South Korea.

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New York orders warning labels on social media features

Authorities in New York State have approved a new law requiring social media platforms to display warning labels when users engage with features that encourage prolonged use.

Labels will appear when people interact with elements such as infinite scrolling, auto-play, like counters or algorithm-driven feeds. The rule applies whenever these services are accessed from within New York.

Governor Kathy Hochul said the move is intended to safeguard young people against potential mental health harms linked to excessive social media use. Warnings will show the first time a user activates one of the targeted features and will then reappear at intervals.

Concerns about the impact on children and teenagers have prompted wider government action. California is considering similar steps, while Australia has already banned social media for under-16s and Denmark plans to follow. The US surgeon general has also called for clearer health warnings.

Researchers continue to examine how social media use relates to anxiety and depression among young users. Platforms now face growing pressure to balance engagement features with stronger protections instead of relying purely on self-regulation.

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SK Telecom introduces South Korea’s first hyperscale AI model

The telecommunications firm, SK Telecom, is preparing to unveil A.X K1, Korea’s first hyperscale language model built with 519 billion parameters.

Around 33 billion parameters are activated during inference, so the AI model can keep strong performance instead of demanding excessive computing power. The project is part of a national initiative involving universities and industry partners.

The company expects A.X K1 to outperform smaller systems in complex reasoning, mathematics and multilingual understanding, while also supporting code generation and autonomous AI agents.

At such a scale, the model can operate as a teacher system that transfers knowledge to smaller, domain-specific tools that might directly improve daily services and industrial processes.

Unlike many global models trained mainly in English, A.X K1 has been trained in Korean from the outset so it naturally understands local language, culture and context.

SK Telecom plans to deploy the model through its AI service Adot, which already has more than 10 million subscribers, allowing access via calls, messages, the web and mobile apps.

The company foresees applications in workplace productivity, manufacturing optimisation, gaming dialogue, robotics and semiconductor performance testing.

Research will continue so the model can support the wider AI ecosystem of South Korea, and SK Telecom plans to open-source A.X K1 along with an API to help local developers create new AI agents.

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Trust Wallet urges update after $7 million hack

Trust Wallet has urged users to update its Google Chrome extension after a security breach affecting version 2.68 resulted in the theft of roughly $7 million. The company confirmed it will refund all impacted users and advised downloading version 2.69 immediately.

Mobile users and other browser extension versions were unaffected.

Blockchain security firms revealed that malicious code in version 2.68 harvested wallet mnemonic phrases, sending decrypted credentials to an attacker‑controlled server.

Around $3 million in Bitcoin, $431 in Solana, and more than $3 million in Ethereum were stolen and moved through centralised exchanges and cross‑chain bridges for laundering. Hundreds of users were affected.

Analysts suggest the incident may involve an insider or a nation-state actor, exploiting leaked Chrome Web Store API keys.

Trust Wallet has launched a support process for victims and warned against impersonation scams. CEO Eowyn Chen said the malicious extension bypassed the standard release checks and that investigation and remediation are ongoing.

The incident highlights ongoing security risks for browser-based cryptocurrency wallets and the importance of user vigilance, including avoiding unofficial links and never sharing recovery phrases.

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The AI terms that shaped debate and disruption in 2025

AI continued to dominate public debate in 2025, not only through new products and investment rounds, but also through a rapidly evolving vocabulary that captured both promise and unease.

From ambitious visions of superintelligence to cultural shorthand like ‘slop’, language became a lens through which society processed another turbulent year for AI.

Several terms reflected the industry’s technical ambitions. Concepts such as superintelligence, reasoning models, world models and physical intelligence pointed to efforts to push AI beyond text generation towards deeper problem-solving and real-world interaction.

Developments by companies including Meta, OpenAI, DeepSeek and Google DeepMind reinforced the sense that scale, efficiency and new training approaches are now competing pathways to progress, rather than sheer computing power alone.

Other expressions highlighted growing social and economic tensions. Words like hyperscalers, bubble and distillation entered mainstream debate as data centres expanded, valuations rose, and cheaper model-building methods disrupted established players.

At the same time, legal and ethical debates intensified around fair use, chatbot behaviour and the psychological impact of prolonged AI interaction, underscoring the gap between innovation speed and regulatory clarity.

Cultural reactions also influenced the development of the AI lexicon. Terms such as vibe coding, agentic and sycophancy revealed how generative systems are reshaping work, creativity and user trust, while ‘slop’ emerged as a blunt critique of low-quality, AI-generated content flooding online spaces.

Together, these phrases chart a year in which AI moved further into everyday life, leaving society to wrestle with what should be encouraged, controlled or questioned.

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EU targets addictive gaming features

Video gaming has become one of Europe’s most prominent entertainment industries, surpassing a niche hobby, with over half the population regularly engaging in it.

As the sector grows, the EU lawmakers are increasingly worried about addictive game design and manipulative features that push players to spend more time and money online.

Much of the concern focuses on loot boxes, where players pay for random digital rewards that resemble gambling mechanics. Studies and parliamentary reports warn that children may be particularly vulnerable, with some lawmakers calling for outright bans on paid loot boxes and premium in-game currencies.

The European Commission is examining how far design choices contribute to digital addiction and whether games are exploiting behavioural weaknesses rather than offering fair entertainment.

Officials say the risk is higher for minors, who may not fully understand how engagement-driven systems are engineered.

The upcoming Digital Fairness Act aims to strengthen consumer protection across online services, rather than leaving families to navigate the risks alone. However, as negotiations continue, the debate over how tightly gaming should be regulated is only just beginning.

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MIT-IBM researchers improve large language models with PaTH Attention

Researchers at MIT and the MIT-IBM Watson AI Lab have introduced a new attention mechanism designed to enhance the capabilities of large language models (LLMs) in tracking state and reasoning across long texts.

Unlike traditional positional encoding methods, the PaTH Attention system adapts to the content of words, enabling models to follow complex sequences more effectively.

PaTH Attention models sequences through data-dependent transformations, allowing LLMs to track how meaning changes between words instead of relying solely on relative distance.

The approach improves performance on long-context reasoning, multi-step recall, and language modelling benchmarks, all while remaining computationally efficient and compatible with GPUs.

Tests demonstrated consistent gains in perplexity and content-awareness compared with conventional methods. The team combined PaTH Attention with FoX to down-weight less relevant information, improving reasoning and long-sequence understanding.

According to senior author Yoon Kim, these advances represent the next step in developing general-purpose building blocks for AI, combining expressivity, scalability, and efficiency for broader applications in structured domains such as biology.

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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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Groq partners with Nvidia to expand inference technology

Groq has signed a non-exclusive licensing agreement with Nvidia to share its inference technology, aiming to make high-performance, cost-efficient AI processing more widely accessible.

Groq’s founder, Jonathan Ross, president Sunny Madra, and other team members will join Nvidia to help develop and scale the licensed technology. Despite the collaboration, Groq will remain an independent company, with Simon Edwards taking over as Chief Executive Officer.

Operations of GroqCloud will continue without interruption, ensuring ongoing services for existing customers. The agreement highlights a growing trend of partnerships in the AI sector, combining innovation with broader access to advanced processing capabilities.

The partnership could speed up AI inference adoption, offering companies more scalable and cost-effective options for deploying AI workloads. Analysts suggest such collaborations are likely to drive competition and innovation in the rapidly evolving AI hardware and software market.

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Visa ban imposed by US on ex-EU commissioner over digital platform rules

The US State Department has imposed a visa ban on former EU Commissioner Thierry Breton and four other individuals, citing opposition to European regulation of social media platforms. The US visa ban reflects growing tensions between Washington and Brussels over digital governance and free expression.

US officials said the visa ban targets figures linked to organisations involved in content moderation and disinformation research. Those named include representatives from HateAid, the Center for Countering Digital Hate, and the Global Disinformation Index, alongside Breton.

Secretary of State Marco Rubio accused the individuals of pressuring US-based platforms to restrict certain viewpoints. A senior State Department official described Breton as a central figure behind the EU’s Digital Services Act, a law that sets obligations for large online platforms operating in Europe.

Breton rejected the US visa ban, calling it a witch hunt and denying allegations of censorship. European organisations affected by the decision criticised the move as unlawful and authoritarian, while the European Commission said it had sought clarification from US authorities.

France and the European Commission condemned the visa ban and warned of a possible response. EU officials said European digital rules are applied uniformly and are intended to support a safe, competitive online environment.

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