Europol arrests four Russians in ransomware crackdown

Authorities have arrested four Russian nationals suspected of deploying Phobos ransomware to extort payments from victims across Europe and beyond. Europol announced that law enforcement agencies from 14 countries worked together to dismantle the network, taking down 27 servers linked to the cybercriminals. The individuals arrested were reportedly leaders of the 8Base ransomware group, a key player in distributing Phobos malware.

The operation follows a series of recent arrests targeting Phobos-related cybercrime. In June 2024, a key administrator of the ransomware was apprehended in South Korea and later extradited to the United States, while another major affiliate was arrested in Italy last year. Authorities have since issued warnings to over 400 companies worldwide about imminent cyberattacks.

Phobos ransomware has been particularly damaging to small and medium-sized businesses, which often lack strong cybersecurity protections. Europol’s latest Russian crackdown is a significant step in weakening the ransomware network and preventing further cyber extortion efforts.

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Greece to launch AI tool for personalised education

Greece‘s Ministry of Education is developing an AI-powered digital assistant aimed at helping students bridge learning gaps. Set to launch in the 2025-2026 school year, the tool will analyse student responses to exercises, identifying areas where they struggle and recommending targeted study materials. Initially focused on middle and senior high school students, it may eventually expand to lower elementary grades as well.

The AI assistant uses machine-learning algorithms to assess students’ strengths and weaknesses, tailoring study plans accordingly. Integrated with Greece’s Digital Tutoring platform, it will leverage over 15,000 interactive exercises and 7,500 educational videos. Teachers will also have access to the data, allowing them to better support their students.

Education Minister Kyriakos Pierrakakis highlighted that the project, part of the “Enhancing the Digital School” initiative, is designed to complement, not replace, traditional teaching methods. The initiative, which aims to modernise Greece’s education system, will be funded through the EU Recovery and Resilience Facility. Approval is expected in March, after which competitive bidding will begin for the project’s implementation.

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Microsoft offers price change to avoid EU antitrust fine

Microsoft has proposed increasing the price difference between its Office product with the Teams app and the version without it, to avoid a potential EU antitrust fine. This comes after complaints from rivals like Salesforce-owned Slack and German competitor alfaview regarding Microsoft’s practice of bundling Teams with Office. Since Teams became a part of Office 365 in 2017, it gained widespread use during the pandemic, largely due to its video conferencing capabilities.

To address concerns, Microsoft unbundled Teams from Office in 2023, offering Office without Teams for €2 less and a standalone Teams subscription for €5 per month. The European Commission is currently gathering feedback from companies, with a decision on whether to conduct a formal market test expected soon. As part of its offer, Microsoft has also proposed better interoperability terms to make it easier for competitors to challenge its products.

The EU has previously fined Microsoft €2.2 billion for similar antitrust issues in the past. If the Commission accepts Microsoft’s proposal without issuing a fine or finding wrongdoing, it would likely allow the EU to focus resources on ongoing investigations into other tech giants like Apple and Google.

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Italian government denies role in spyware targeting critics

The Italian government is under increasing pressure to explain its links to Israeli spyware firm Paragon, following reports that the company severed ties with Rome over allegations of misuse. The controversy erupted after WhatsApp revealed that Paragon spyware had been used to target multiple users, including a journalist and a human rights activist critical of Prime Minister Giorgia Meloni.

While the government has confirmed that seven people in Italy were affected, it denies any involvement in the hacking and has called for an investigation. However, reports from The Guardian and Haaretz claim Paragon cut ties with Italy due to doubts over the government’s denial. Opposition politicians have demanded clarity, with former Prime Minister Matteo Renzi insisting that those responsible be held accountable.

Deputy Prime Minister Matteo Salvini initially suggested that internal disputes within the intelligence services might be behind the scandal, though he later retracted his comment, claiming he was referring to unrelated cases. Meanwhile, critics argue that the government cannot ignore the growing concerns over the potential misuse of surveillance tools against political opponents.

With mounting calls for transparency, the affair has intensified debate over government accountability and digital surveillance, raising broader questions about the ethical use of spyware within democratic nations.

France secures billions for AI expansion

France is set to receive an unprecedented €83 billion in AI-related investments, with Canadian firm Brookfield committing €20 billion by 2030. The majority of this funding will be allocated to data centres, including a massive one in Cambrai with a capacity of up to one gigawatt. This surge in investment follows the announcement of a €50 billion AI campus project between France and the UAE.

A key factor behind France’s appeal is its energy infrastructure. With 65% of its electricity generated from nuclear power and another 25% from renewables, the country offers a sustainable solution for tech companies seeking to reduce their carbon footprint. This has positioned France as an attractive location for power-intensive AI data centres.

Alongside international funding, France’s public investment bank Bpifrance has pledged €10 billion to support AI startups, while telecom giant Iliad is investing €3 billion in AI-focused infrastructure. With the AI Action Summit set to take place in Paris, more investment announcements could be on the horizon.

EU lawmakers to negotiate next data protection supervisor

Lawmakers are set to negotiate with EU member states to determine the next European Data Protection Supervisor (EDPS), following the expiration of the current EDPS, Wojciech Wiewiórowski’s mandate in December. The decision on his successor is expected in March at the earliest, with both the European Parliament and member states backing different candidates. The Parliament’s Civil Liberties, Justice and Home Affairs Committee (LIBE) voted to appoint Bruno Gencarelli, an Italian Commission official, while member states are supporting Wiewiórowski for another term.

The European Parliament’s group leaders have recently backed the LIBE decision, but a joint committee with the Council of the EU needs to be set up to finalise the appointment. The configuration of the committee is still under discussion. Meanwhile, privacy experts have expressed concern over Gencarelli’s candidacy, arguing that the next EDPS should not come from within the Commission due to potential conflicts of interest, citing past decisions such as the EDPS ruling against Microsoft 365’s use by the EU executive.

The EDPS role, while unable to fine Big Tech companies directly, is significant in shaping EU privacy law, as it publishes opinions on legislative proposals. The new appointee will play a crucial role in overseeing the data protection practices of EU institutions and ensuring that privacy rights are upheld.

UK gambling websites breach data protection laws

Gambling companies are under investigation for covertly sharing visitors’ data with Facebook’s parent company, Meta, without proper consent, breaching data protection laws. A hidden tracking tool embedded in numerous UK gambling websites has been sending data, such as the web pages users visit and the buttons they click, to Meta, which then uses this information to profile individuals as gamblers. This data is then used to target users with gambling-related ads, violating the legal requirement for explicit consent before sharing such information.

Testing of 150 gambling websites revealed that 52 automatically transmitted user data to Meta, including large brands like Hollywoodbets, Sporting Index, and Bet442. This data sharing occurred without users having the opportunity to consent, resulting in targeted ads for gambling websites shortly after visiting these sites. Experts have raised concerns about the industry’s unlawful practices and called for immediate regulatory action.

The Information Commissioner’s Office (ICO) is reviewing the use of tracking tools like Meta Pixel and has warned that enforcement action could be taken, including significant fines. Some gambling companies have updated their websites to prevent automatic data sharing, while others have removed the tracking tool altogether in response to the findings. However, the Gambling Commission has yet to address the issue of third-party profiling used to recruit new customers.

The misuse of data in this way highlights the risks of unregulated marketing, particularly for vulnerable individuals. Data privacy experts have stressed that these practices not only breach privacy laws but could also exacerbate gambling problems by targeting individuals who may already be at risk.

German court orders X to share election misinformation data

A German court has ruled that Elon Musk’s social media platform X must provide researchers with data to track the spread of misinformation ahead of the country’s national election on 23 February. The Berlin district court’s decision follows a legal challenge by civil rights groups, who argued that the platform had a duty under European law to make election-related engagement data more accessible.

The German ruling obliges X to disclose information such as post reach, shares, and likes, allowing researchers to monitor how misleading narratives circulate online. The court emphasised that immediate access to the data was crucial, as delays could undermine efforts to track election-related disinformation in real time. The company, which had failed to respond to a previous request for information, was also ordered to cover the €6,000 legal costs.

The case was brought forward by the German Society for Civil Rights (GFF) and Democracy Reporting International, who hailed the verdict as a major win for democratic integrity. Concerns over misinformation on X have intensified, particularly following Musk’s public endorsement of the far-right Alternative for Germany (AfD), currently polling in second place. In January, Musk posted that ‘only the AfD can save Germany,’ sparking further scrutiny over the platform’s role in political discourse.

X has yet to respond to the ruling. The decision could set a precedent for how social media companies handle election-related transparency, particularly within the European Union’s regulatory framework.

Scottish poet calls for AI-free literature

Scotland’s Makar, Peter Mackay, has voiced concerns about the growing role of artificial intelligence in literature, warning that it could threaten the livelihoods of new writers. With AI tools capable of generating dialogue, plot ideas, and entire narratives, Mackay fears that competing with machine-created content may become increasingly difficult for human authors.

To address these challenges, he has proposed clearer distinctions between human and AI-generated work. Ideas discussed include a certification system similar to the Harris Tweed Orb, ensuring books are marked as ‘100% AI-free.’ Another suggestion is an ingredient-style label outlining an AI-generated book’s influences, listing percentages of various literary styles.

Mackay also believes literary prizes, such as the Highland Book Prize, can play a role in safeguarding human creativity by celebrating originality and unique writing styles and qualities that AI struggles to replicate. He warns of the day an AI-generated book wins a major award, questioning what it would mean for writers who spend years perfecting their craft.

South Korea accuses DeepSeek of excessive data collection

South Korea’s National Intelligence Service (NIS) has raised concerns about the Chinese AI app DeepSeek, accusing it of excessively collecting personal data and using it for training purposes. The agency warned government bodies last week to take security measures, highlighting that unlike other AI services, DeepSeek collects sensitive data such as keyboard input patterns and transfers it to Chinese servers. Some South Korean government ministries have already blocked access to the app due to these security concerns.

The NIS also pointed out that DeepSeek grants advertisers unrestricted access to user data and stores South Korean users’ data in China, where it could be accessed by the Chinese government under local laws. The agency also noted discrepancies in the app’s responses to sensitive questions, such as the origin of kimchi, which DeepSeek claimed was Chinese when asked in Chinese, but Korean when asked in Korean.

DeepSeek has also been accused of censoring political topics, such as the 1989 Tiananmen Square crackdown, prompting the app to suggest changing the subject. In response to these concerns, China’s foreign ministry stated that the country values data privacy and security and complies with relevant laws, denying that it pressures companies to violate privacy. DeepSeek has not yet commented on the allegations.