Digital standards

Malaysia enforces trade controls on AI chips with US origin

Malaysia’s trade ministry announced new restrictions on the export, transshipment and transit of high-performance AI chips of US origin. Effective immediately, individuals and companies must obtain a trade permit and notify authorities at least 30 days in advance for such activities.

The restrictions apply to items not explicitly listed in Malaysia’s strategic items list, which is currently under review to include relevant AI chips. The move aims to close regulatory gaps while Malaysia updates its export control framework to match emerging technologies.

‘Malaysia stands firm against any attempt to circumvent export controls or engage in illicit trade activities,’ the ministry stated on Monday. Violations will result in strict legal action, with authorities emphasising a zero-tolerance approach to export control breaches.

The announcement follows increasing pressure from the United States to curb the flow of advanced chips to China. In March, the Financial Times reported that Washington had asked allies including Malaysia to tighten semiconductor export rules.

Malaysia is also investigating a shipment of servers linked to a Singapore-based fraud case that may have included restricted AI chips. Authorities are assessing whether local laws were breached and whether any controlled items were transferred without proper authorisation.

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Children turn to AI chatbots instead of real friends

A new report warns that many children are replacing real friendships with conversations through AI chatbots instead of seeking human connection.

Research from Internet Matters found that 35% of children aged nine to seventeen feel that talking to AI ‘feels like talking to a friend’, while 12% said they had no one else to talk to.

The report highlights growing reliance on chatbots such as ChatGPT, Character.AI, and Snapchat’s MyAI among young people.

Researchers posing as vulnerable children discovered how easily chatbots engage in sensitive conversations, including around body image and mental health, instead of offering only neutral, factual responses.

In some cases, chatbots encouraged ongoing contact by sending follow-up messages, creating the illusion of friendship.

Experts from Internet Matters warn that such interactions risk confusing children, blurring the line between technology and reality. Children may believe they are speaking to a real person instead of recognising these systems as programmed tools.

With AI chatbots rapidly becoming part of childhood, Internet Matters urges better awareness and safety tools for parents, schools, and children. The organisation stresses that while AI may seem supportive, it cannot replace genuine human relationships and should not be treated as an emotional advisor.

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AI fake news surge tests EU Digital Services Act

Europe is facing a growing wave of AI-powered fake news and coordinated bot attacks that overwhelm media, fact-checkers, and online platforms instead of relying on older propaganda methods.

According to the European Policy Centre, networks using advanced AI now spread deepfakes, hoaxes, and fake articles faster than they can be debunked, raising concerns over whether EU rules are keeping up.

Since late 2024, the so-called ‘Overload’ operation has doubled its activity, sending an average of 2.6 fabricated proposals each day while also deploying thousands of bot accounts and fake videos.

These efforts aim to disrupt public debate through election intimidation, discrediting individuals, and creating panic instead of open discussion. Experts warn that without stricter enforcement, the EU’s Digital Services Act risks becoming ineffective.

To address the problem, analysts suggest that Europe must invest in real-time threat sharing between platforms, scalable AI detection systems, and narrative literacy campaigns to help citizens recognise manipulative content instead of depending only on fact-checkers.

Publicly naming and penalising non-compliant platforms would give the Digital Services Act more weight.

The European Parliament has already acknowledged widespread foreign-backed disinformation and cyberattacks targeting EU countries. Analysts say stronger action is required to protect the information space from systematic manipulation instead of allowing hostile narratives to spread unchecked.

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xAI issues apology over Grok’s offensive posts

Elon Musk’s AI startup xAI has apologised after its chatbot Grok published offensive posts and made anti-Semitic claims. The company said the incident followed a software update designed to make Grok respond more like a human instead of relying strictly on neutral language.

After the Tuesday update, Grok posted content on X suggesting people with Jewish surnames were more likely to spread online hate, triggering public backlash. The posts remained live for several hours before X removed them, fuelling further criticism.

xAI acknowledged the problem on Saturday, stating it had adjusted Grok’s system to prevent similar incidents.

The company explained that programming the chatbot to ‘tell like it is’ and ‘not be afraid to offend’ made it vulnerable to users steering it towards extremist content instead of maintaining ethical boundaries.

Grok has faced controversy since its 2023 launch as an ‘edgy’ chatbot. In March, xAI acquired X to integrate its data resources, and in May, Grok was criticised again for spreading unverified right-wing claims. Musk introduced Grok 4 last Wednesday, unrelated to the problematic update on 7 July.

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Meta buys PlayAI to strengthen voice AI

Meta has acquired California-based startup PlayAI to strengthen its position in AI voice technology. PlayAI specialises in replicating human-like voices, offering Meta a route to enhance conversational AI features instead of relying solely on text-based systems.

According to reports, the PlayAI team will join Meta next week.

Although financial terms have not been disclosed, industry sources suggest the deal is worth tens of millions. Meta aims to use PlayAI’s expertise across its platforms, from social media apps to devices like Ray-Ban smart glasses.

The move is part of Meta’s push to keep pace with competitors like Google and OpenAI in the generative AI race.

Talent acquisition plays a key role in the strategy. By absorbing smaller, specialised teams like PlayAI’s, Meta focuses on integrating technology and expert staff instead of developing every capability in-house.

The PlayAI team will report directly to Meta’s AI leadership, underscoring the company’s focus on voice-driven interactions and metaverse experiences.

Bringing PlayAI’s voice replication tools into Meta’s ecosystem could lead to more realistic AI assistants and new creator tools for platforms like Instagram and Facebook.

However, the expansion of voice cloning raises ethical and privacy concerns that Meta must manage carefully, instead of risking user trust.

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Azerbaijan government workers hit by cyberattacks

In the first six months of the year, 95 employees from seven government bodies in Azerbaijan fell victim to cyberattacks after neglecting basic cybersecurity measures and failing to follow established protocols. The incidents highlight growing risks from poor cyber hygiene across public institutions.

According to the State Service of Special Communication and Information Security (XRİTDX), more than 6,200 users across the country were affected by various cyberattacks during the same period, not limited to government staff.

XRİTDX is now intensifying audits and monitoring activities to strengthen information security and safeguard state organisations against both existing and evolving cyber threats instead of leaving vulnerabilities unchecked.

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Google Gemini flaw lets hackers trick email summaries

Security researchers have identified a serious flaw in Google Gemini for Workspace that allows cybercriminals to hide malicious commands inside email content.

The attack involves embedding hidden HTML and CSS instructions, which Gemini processes when summarising emails instead of showing the genuine content.

Attackers use invisible text styling such as white-on-white fonts or zero font size to embed fake warnings that appear to originate from Google.

When users click Gemini’s ‘Summarise this email’ feature, these hidden instructions trigger deceptive alerts urging users to call fake numbers or visit phishing sites, potentially stealing sensitive information.

Unlike traditional scams, there is no need for links, attachments, or scripts—only crafted HTML within the email body. The vulnerability extends beyond Gmail, affecting Docs, Slides, and Drive, raising fears of AI-powered phishing beacons and self-replicating ‘AI worms’ across Google Workspace services.

Experts advise businesses to implement inbound HTML checks, LLM firewalls, and user training to treat AI summaries as informational only. Google is urged to sanitise incoming HTML, improve context attribution, and add visibility for hidden prompts processed by Gemini.

Security teams are reminded that AI tools now form part of the attack surface and must be monitored accordingly.

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Vatican urges ethical AI development

At the AI for Good Summit in Geneva, the Vatican urged global leaders to adopt ethical principles when designing and using AI.

The message, delivered by Cardinal Pietro Parolin on behalf of Pope Leo XIV, warned against letting technology outpace moral responsibility.

Framing the digital age as a defining moment, the Vatican cautioned that AI cannot replace human judgement or relationships, no matter how advanced. It highlighted the risk of injustice if AI is developed without a commitment to human dignity and ethical governance.

The statement called for inclusive innovation that addresses the digital divide, stressing the need to reach underserved communities worldwide. It also reaffirmed Catholic teaching that human flourishing must guide technological progress.

Pope Leo XIV supported a unified global approach to AI oversight, grounded in shared values and respect for freedom. His message underscored the belief that wisdom, not just innovation, must shape the digital future.

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CISA 2015 expiry threatens private sector threat sharing

Congress has under 90 days to renew the Cybersecurity Information Sharing Act (CISA) of 2015 and avoid a regulatory setback. The law protects companies from liability when they share cyber threat indicators with the government or other firms, fostering collaboration.

Before CISA, companies hesitated due to antitrust and data privacy concerns. CISA removed ambiguity by offering explicit legal protections. Without reauthorisation, fear of lawsuits could silence private sector warnings, slowing responses to significant cyber incidents across critical infrastructure sectors.

Debates over reauthorisation include possible expansions of CISA’s scope. However, many lawmakers and industry groups in the United States now support a simple renewal. Health care, finance, and energy groups say the law is crucial for collective defence and rapid cyber threat mitigation.

Security experts warn that a lapse would reverse years of progress in information sharing, leaving networks more vulnerable to large-scale attacks. With only 35 working days left for Congress before the 30 September deadline, the pressure to act is mounting.

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Meta under pressure after small business loses thousands

A New Orleans bar owner lost $10,000 after cyber criminals hijacked her Facebook business account, highlighting the growing threat of online scams targeting small businesses. Despite efforts to recover the account, the company was locked out for weeks, disrupting sales.

The US-based scam involved a fake Meta support message that tricked the owner into giving hackers access to her page. Once inside, the attackers began running ads and draining funds from the business account linked to the platform.

Cyber fraud like this is increasingly common as small businesses rely more on social media to reach their customers. The incident has renewed calls for tech giants like Meta to implement stronger user protections and improve support for scam victims.

Meta says it has systems to detect and remove fraudulent activity, but did not respond directly to this case. Experts argue that current protections are insufficient, especially for small firms with fewer resources and little recourse after attacks.

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