IBM’s 2025 Cost of a Data Breach Report revealed a sharp gap between rapid AI adoption and the oversight needed to secure it.
Although the global average data breach cost fell slightly to $4.44 million, security incidents involving AI systems remain more severe and disruptive.
Around 13% of organisations reported breaches involving AI models or applications, while 8% were unsure whether they had been compromised.
Alarmingly, nearly all AI-related breaches occurred without access controls, leading to data leaks in 60% of cases and operational disruption in almost one-third. Shadow AI (unsanctioned or unmanaged systems) played a central role, with one in five breaches traced back to it.
Organisations without AI governance policies or detection systems faced significantly higher costs, especially when personally identifiable information or intellectual property was exposed.
Attackers increasingly used AI tools such as deepfakes and phishing, with 16% of studied breaches involving AI-assisted threats.
Healthcare remained the costliest sector, with an average breach price of $7.42 million and the most extended recovery timeline of 279 days.
Despite the risks, fewer organisations plan to invest in post-breach security. Only 49% intend to strengthen defences, down from 63% last year.
Even fewer will prioritise AI-driven security tools. With many organisations also passing costs on to consumers, recovery now often includes long-term financial and reputational fallout, not just restoring systems.
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Nvidia has firmly denied claims that its AI chips contain backdoors allowing remote control or tracking, following questioning by China’s top cybersecurity agency.
The investigation, which focuses on the H20 chip explicitly designed for the Chinese market, comes as Beijing intensifies scrutiny over foreign tech used in sensitive systems.
The H20 was initially blocked from export in April under US restrictions, but is now expected to return to Chinese shelves.
China’s Cyberspace Administration (CAC) summoned Nvidia officials to explain whether the chip enables unauthorised access or surveillance. The agency cited demands from US lawmakers for mandatory tracking features in advanced AI hardware as grounds for its concern.
In a statement, Nvidia insisted it does not include remote access capabilities in its products, reaffirming its commitment to cybersecurity.
Meanwhile, China’s state-backed People’s Daily questioned the company’s trustworthiness, stating that ‘network security is as vital as national territory’ and warning against reliance on what it described as ‘sick chips’.
The situation highlights Nvidia’s delicate position as it attempts to maintain dominance in China’s AI chip market while complying with mounting US export rules.
Tensions have escalated since similar actions were taken against other US firms, including a 2022 ban on Micron’s chips and recent antitrust scrutiny over Nvidia’s Mellanox acquisition.
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Apple is quietly developing its own AI-powered ‘answer engine‘ as part of a push to compete in the growing intelligent search field. The initiative is led by a new team called ‘Answers, Knowledge, and Information’.
The project aims to create a system that can respond to user questions by pulling from web-based content.
The tool may be launched as a standalone app or integrated into existing Apple platforms such as Siri and Safari. Although Apple has added ChatGPT support to Siri, plans for a more advanced, personalised AI assistant have faced repeated delays.
Apple is hiring engineers with search expertise, signalling a long-term plan to reshape how users access information across its products.
The company may also need to revise its longstanding search partnership with Google following the tech giant’s antitrust defeat, further pushing Apple towards building its solution.
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The FBI has issued a public warning about a rising scam involving QR codes placed on packages delivered to people who never ordered them.
According to the agency, these codes can lead recipients to malicious websites or prompt them to install harmful software, potentially exposing sensitive personal and financial data.
The scheme is a variation of the so-called brushing scam, in which online sellers send unordered items and use recipients’ names to post fake product reviews. In the new version, QR codes are added to the packaging, increasing the risk of fraud by directing users to deceptive websites.
While not as widespread as other fraud attempts, the FBI urges caution. The agency recommends avoiding QR codes from unknown sources, especially those attached to unrequested deliveries.
It also advised consumers to pay close attention to the web address that appears before tapping on any QR code link.
Authorities have noted broader misuse of QR codes, including cases where criminals place fake codes over legitimate ones in public spaces.
In one recent incident, scammers used QR stickers on parking meters in New York to redirect people to third-party payment pages requesting card details.
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Mark Zuckerberg is boldly pushing to replace the smartphone with smartglasses powered by superintelligent AI. The Meta CEO described a future where wearable devices replace phones, using sight and sound to assist users throughout the day.
Meta is heavily investing, offering up to $100 million to attract top AI talent. Zuckerberg’s idea of ‘personal superintelligence’ merges AI and hardware to offer personalised help and build an Apple-style ecosystem under Meta’s control.
The company’s smartglasses already feature cameras, microphones and speakers, and future models could include built-in screens and AI-generated interfaces.
Other major players are also chasing the next computing shift. Amazon is acquiring a startup that builds AI wearables, while OpenAI’s Sam Altman and former Apple designer Jony Ive are working on a new physical AI device.
These efforts all point to a changing landscape in which mobile screens might no longer dominate.
Apple CEO Tim Cook responded by defending the iPhone’s central role in modern life, though he acknowledged complementary technologies may emerge. While Apple remains dominant, Meta’s advances signal that the competition to define the next computing platform is wide open.
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Long-standing dominance over Android app distribution has been declared illegal by the Ninth Circuit Court of Appeals, reinforcing a prior jury verdict in favour of Epic Games. Google now faces an injunction that compels it to allow rival app stores and alternative billing systems inside the Google Play Store ecosystem for a three-year period ending November 2027.
A technical committee jointly selected by Epic and Google will oversee sensitive implementation tasks, including granting competitors approved access to Google’s expansive app catalogue while ensuring minimal security risk. The order also requires that developers not be tied to Google’s billing system for in-app purchases.
Market analysts warn that reduced dependency on Play Store exclusivity and the option to use alternative payment processors could cut Google’s app revenue by as much as $1 to $1.5 billion annually. Despite brand recognition, developers and consumers may shift toward lower-cost alternatives competing on platform flexibility.
While the ruling aims to restore competition, Google maintains it is appealing and has requested additional delays to avoid rapid structural changes. Proponents, including Microsoft, regulators, and Epic Games, hail the decision as a landmark step toward fairer mobile market access.
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The US Securities and Exchange Commission has introduced ‘Project Crypto,’ a Commission-wide effort to update securities regulations and establish America as the world’s leading crypto market.
The announcement was made by SEC Chair Paul Atkins at the America First Policy Institute in Washington D.C. on 31 July. Atkins highlighted the rapid evolution of financial markets and stressed the need for the US to take a proactive role in the crypto revolution.
Project Crypto builds on recommendations from the President’s Working Group on Digital Asset Markets, focusing on clear rules for crypto custody, trading, and distribution.
The initiative marks a significant change in SEC policy, moving away from the strict enforcement tactics of the previous administration under Gary Gensler. Recent months saw the SEC drop lawsuits and ease probes, signalling support for innovation and urging crypto firms back to the US.
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July witnessed a significant surge in cybersecurity mergers and acquisitions (M&A), spearheaded by Palo Alto Networks’ announcement of its definitive agreement to acquire identity security firm CyberArk for an estimated $25 billion.
The transaction, set to be the second-largest cybersecurity acquisition on record, signals Palo Alto’s strategic entry into identity security.
Beyond this significant deal, Palo Alto Networks also completed its purchase of AI security specialist Protect AI. The month saw widespread activity across the sector, including LevelBlue’s acquisition of Trustwave to create the industry’s largest pureplay managed security services provider.
Zurich Insurance Group, Signicat, Limerston Capital, Darktrace, Orange Cyberdefense, SecurityBridge, Commvault, and Axonius all announced or finalised strategic cybersecurity acquisitions.
The deals highlight a strong market focus on AI security, identity management, and expanding service capabilities across various regions.
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Amazon is exploring ways to insert ads into conversations with its AI assistant Alexa+, according to CEO Andy Jassy. Speaking during the company’s latest earnings call, he described the feature as a potential tool for product discovery and future revenue.
Alexa+ is Amazon’s upgraded digital assistant designed to support more natural, multi-step conversations using generative AI. It is already available to millions of users through Prime subscriptions or as a standalone service.
Jassy said longer interactions open the door for embedded advertising, although the approach has not yet been fully developed. Industry observers see this as part of a wider trend, with companies like Google and OpenAI also weighing ad-based business models.
Alexa+ has received mixed reviews so far, with delays in feature delivery and technical challenges like hallucinations raising concerns. Privacy advocates have warned that ad targeting within personal conversations may worry users, given the data involved.
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A new euro-denominated stablecoin, EURAU, has launched on the Ethereum blockchain, backed by Deutsche Bank’s DWS, Flow Traders, and Mike Novogratz’s Galaxy. The regulated token is issued by AllUnity and complies with Germany’s BaFin and the EU’s MiCA rules.
Bullish Europe, a BaFin-regulated crypto exchange based in Frankfurt, will be the first to list EURAU. The exchange has secured four BaFin licences and is preparing for expansion across the EU under MiCA’s framework.
Key partners supporting EURAU’s launch include crypto custodian BitGo, Metzler Bank, and Fireblocks.
Euro stablecoins currently make up just 0.2% of the $273 billion global stablecoin market but have seen strong growth, increasing by nearly 60% since December 2024. Despite growth, European regulators stay cautious because US dollar stablecoins like Tether’s USDt dominate.
European Central Bank adviser Jürgen Schaaf has emphasised the need for international regulatory coordination to balance stablecoin markets and reduce reliance on the dollar.
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