The European Commission has warned X to address issues related to its Grok AI tool. Regulators say new features enabled the creation of sexualised images, including those of children.
EU Tech Sovereignty Commissioner Henna Virkkunen has stated that investigators have already taken action under the Digital Services Act. Failure to comply could result in enforcement measures being taken against the platform.
X recently restricted Grok’s image editing functions to paying users after criticism from regulators and campaigners. Irish and EU media watchdogs are now engaging with Brussels on the issue.
UK ministers also plan laws banning non-consensual intimate images and tools enabling their creation. Several digital rights groups argue that existing laws already permit criminal investigations and fines.
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Chinese AI start-up DeepSeek will launch a customised Italian version of its online chatbot following a probe by the Italian competition authority, the AGCM. The move follows months of negotiations and a temporary 2025 ban due to concerns over user data and transparency.
The AGCM had criticised DeepSeek for not sufficiently warning users about hallucinations or false outputs generated by its AI models.
The probe ended after DeepSeek agreed to clearer Italian disclosures and technical fixes to reduce hallucinations. The regulator noted that while improvements are commendable, hallucinations remain a global AI challenge.
DeepSeek now provides longer Italian warnings and detects Italian IPs or prompts for localised notices. The company also plans workshops to ensure staff understand Italian consumer law and has submitted multiple proposals to the AGCM since September 2025.
The start-up must provide a progress report within 120 days. Failure to meet the regulator’s requirements could lead to the probe being reopened and fines of up to €10 million (£8.7m).
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A newly identified vulnerability in Telegram’s mobile apps allows attackers to reveal users’ real IP addresses with a single click. The flaw, known as a ‘one-click IP leak’, can expose location and network details even when VPNs or proxies are enabled.
The issue comes from Telegram’s automatic proxy testing process. When a user clicks a disguised proxy link, the app initiates a direct connection request that bypasses all privacy protections and reveals the device’s real IP address.
Cybersecurity researcher @0x6rss demonstrated an attack on X, showing that a single click is enough to log a victim’s real IP address. The request behaves similarly to known Windows NTLM leaks, where background authentication attempts expose identifying information without explicit user consent.
ONE-CLICK TELEGRAM IP ADDRESS LEAK!
In this issue, the secret key is irrelevant. Just like NTLM hash leaks on Windows, Telegram automatically attempts to test the proxy. Here, the secret key does not matter and the IP address is exposed. Example of a link hidden behind a… https://t.co/KTABAiuGYIpic.twitter.com/NJLOD6aQiJ
Attackers can embed malicious proxy links in chats or channels, masking them as standard usernames. Once clicked, Telegram silently runs the proxy test, bypasses VPN or SOCKS5 protections, and sends the device’s real IP address to the attacker’s server, enabling tracking, surveillance, or doxxing.
Both Android and iOS versions are affected, putting millions of privacy-focused users at risk. Researchers recommend avoiding unknown links, turning off automatic proxy detection where possible, and using firewall tools to block outbound proxy tests. Telegram has not publicly confirmed a fix.
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Malta’s government is preparing new legal measures to curb the abusive use of deepfake technology, with existing laws now under review. The planned reforms aim to introduce penalties for the misuse of AI in cases of harassment, blackmail, and bullying.
The move mirrors earlier cyberbullying and cyberstalking laws, extending similar protections to AI-generated content. Authorities are promoting AI while stressing the need for strong public safety and legal safeguards.
AI and youth participation were the main themes discussed during the National Youth Parliament meeting, where Abela highlighted the role of young people in shaping Malta’s long-term development strategy, Vision Malta 2050.
The strategy focuses on the next 25 years and directly affects those entering the workforce or starting families.
Young people were described as key drivers of national policy in areas such as fertility, environmental protection, and work-life balance. Senior officials and members of the Youth Advisory Forum attended the meeting.
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Efforts to reform US cryptocurrency regulation have hit another delay, as Senate senators pushed back the crucial markup of the CLARITY Act. The vote has been moved to the last week of January to secure bipartisan support.
Disagreements persist over stablecoin rewards, DeFi regulation, and regulatory authority between the SEC and CFTC. Without sufficient support, the bill risks stalling in committee and losing momentum for the year.
The CLARITY Act aims to bring structure to the US digital asset landscape, clarifying which tokens are classed as securities or commodities and expanding the CFTC’s supervisory role. It sets rules for market oversight and asset handling, providing legal clarity beyond the current enforcement-focused system.
The House passed its version in mid-2025, but the Senate has yet to agree on wording acceptable to all stakeholders. Delaying the markup gives Senate leaders time to refine the bill and rebuild support for potential 2026 reform.
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Fintech investment platform Betterment has confirmed a data breach after hackers gained unauthorised access to parts of its internal systems and exposed personal customer information.
The incident occurred on 9 January and involved a social engineering attack connected to third-party platforms used for marketing and operational purposes.
The company said the compromised data included customer names, email and postal addresses, phone numbers and dates of birth.
No passwords or account login credentials were accessed, according to Betterment, which stressed that customer investment accounts were not breached.
Using the limited system access, attackers sent fraudulent notifications to some users promoting a crypto-related scam.
Customers were advised to ignore the messages instead of engaging with the request, while Betterment moved quickly to revoke the unauthorised access and begin a formal investigation with external cybersecurity support.
Betterment has not disclosed how many users were affected and has yet to provide further technical details. Representatives did not respond to requests for comment at the time of publication, while the company said outreach to impacted customers remains ongoing.
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Consumer hardware is becoming more deeply embedded with AI as robot vacuum cleaners evolve from simple automated devices into intelligent household assistants.
New models rely on multimodal perception and real-time decision-making, instead of fixed cleaning routes, allowing them to adapt to complex domestic environments.
Advanced AI systems now enable robot vacuums to recognise obstacles, optimise cleaning sequences and respond to natural language commands. Technologies such as visual recognition and mapping algorithms support adaptive behaviour, improving efficiency while reducing manual input from users.
Market data reflects the shift towards intelligence-led growth.
Global shipments of smart robot vacuums increased by 18.7 percent during the first three quarters of 2025, with manufacturers increasingly competing on intelligent experience rather than suction power, as integration with smart home ecosystems accelerates.
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The eSafety regulator in Australia has expressed concern over the misuse of the generative AI system Grok on social media platform X, following reports involving sexualised or exploitative content, particularly affecting children.
Although overall report numbers remain low, authorities in Australia have observed a recent increase over the past weeks.
The regulator confirmed that enforcement powers under the Online Safety Act remain available where content meets defined legal thresholds.
X and other services are subject to systemic obligations requiring the detection and removal of child sexual exploitation material, alongside broader industry codes and safety standards.
eSafety has formally requested further information from X regarding safeguards designed to prevent misuse of generative AI features and to ensure compliance with existing obligations.
Previous enforcement actions taken in 2025 against similar AI services resulted in their withdrawal from the Australian market.
Additional mandatory safety codes will take effect in March 2026, introducing new obligations for AI services to limit children’s exposure to sexually explicit, violent and self-harm-related material.
Authorities emphasised the importance of Safety by Design measures and continued international cooperation among online safety regulators.
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Toy makers at the Consumer Electronics Show highlighted efforts to improve AI in playthings following troubling early reports of chatbots giving unsuitable responses to children’s questions.
A recent Public Interest Research Group report found that some AI toys, such as an AI-enabled teddy bear, produced inappropriate advice, prompting companies like FoloToy to update their models and suspend problematic products.
Among newer devices, Curio’s Grok toy, which refuses to answer questions deemed inappropriate and allows parental overrides, has earned independent safety certification. However, concerns remain about continuous listening and data privacy.
Experts advise parents to be cautious about toys that retain information over time or engage in ongoing interactions with young users.
Some manufacturers are positioning AI toys as educational tools, for example, language-learning companions with time-limited, guided chat interactions, and others have built in flags to alert parents when inappropriate content arises.
Despite these advances, critics argue that self-regulation is insufficient and call for clearer guardrails and possible regulation to protect children in AI-toy environments.
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The EU has agreed to open talks with the US on sharing sensitive traveller data. The discussions aim to preserve visa-free travel for European citizens.
The proposal is called ‘Enhanced Border Security Partnership‘, and it could allow transfers of biometric data and other sensitive personal information. Legal experts warn that unclear limits may widen access beyond travellers alone.
EU governments have authorised the European Commission to negotiate a shared framework. Member states would later settle details through bilateral agreements with Washington.
Academics and privacy advocates are calling for stronger safeguards and transparency. EU officials insist data protection limits will form part of any final agreement.
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