Consumer protection Archives | Digital Watch Observatory

Deepfake attacks push organisations to rethink cybersecurity strategies

Organisations are strengthening their cybersecurity strategies as deepfake attacks become more convincing and easier to produce using generative AI.

Security experts alert that enterprises must move beyond basic detection tools and adopt layered security strategies to defend against the growing threat of deepfake attacks targeting communications and digital identity.

Many existing tools for identifying manipulated media are still imperfect. Digital forensics expert Hany Farid estimates that some systems used to detect deepfake attacks are only about 80 percent effective and often fail to explain how they determine whether an image, video, or audio recording is authentic. The lack of explainability also raises challenges for legal investigations and public verification of suspicious media.

Cybersecurity companies are creating new technologies to improve the detection of deepfake attacks by analysing slight signals that are difficult for humans to notice. Firms such as GetReal Security, Reality Defender, Deep Media, and Sensity AI examine lighting consistency, shadow angles, voice patterns, and facial movements. Environmental indicators such as device location, metadata, and IP information can also help security teams spot potential deepfake attacks.

However, experts say detection alone cannot fully protect organisations from deepfake attacks. Companies are increasingly conducting internal red-team exercises that simulate impersonation scenarios to expose weaknesses in verification procedures. Multi-factor authentication techniques can reduce the risk of employees responding to fraudulent communications.

Another emerging defence involves digital provenance systems designed to track the origin and modification history of digital content. Initiatives such as the Coalition for Content Provenance and Authenticity (C2PA) embed cryptographically signed metadata into media files, allowing organisations to verify whether content linked to suspected deepfake attacks has been altered.

Recent experiments highlight how testing these threats can be. In February, cybersecurity company Reality Defender conducted an exercise with NATO by introducing deepfake media into a simulated military scenario. The findings showed how easily even experienced officials can struggle to identify manipulated communications, reinforcing calls for automated systems capable to detecting deepfake attacks across critical infrastructure.

As generative AI tools continue to advance, organisations are expected to combine detection technologies, stronger verification procedures, and provenance tracking to reduce the risks posed by deepfake attacks.

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Hackers target WhatsApp and Signal in global encrypted messaging attacks

Foreign state-backed hackers are targeting accounts on WhatsApp and Signal used by government officials, diplomats, military personnel, and other high-value individuals, according to a security alert issued by the Portuguese Security Intelligence Service (SIS).

Portuguese authorities described the activity as part of a global cyber-espionage campaign aimed at gaining access to sensitive communications and extracting privileged information from Portugal and allied countries. The advisory did not identify the origin of the suspected attackers.

The warning follows similar alerts from other European intelligence agencies. Earlier this week, Dutch authorities reported that hackers linked to Russia were conducting a global campaign targeting the messaging accounts of officials, military personnel, and journalists.

Security agencies say the attackers are not exploiting vulnerabilities in the messaging platforms themselves. Both WhatsApp and Signal rely on end-to-end encryption designed to protect the content of messages from interception.

Instead, the campaign focuses on social engineering tactics that trick users into granting access to their accounts. According to the SIS report, attackers use phishing messages, malicious links, fake technical support requests, QR-code lures, and impersonation of trusted contacts.

The agency also warned that AI tools are increasingly being used to make such attacks more convincing. AI can help impersonate support staff, mimic familiar voices or identities, and conduct more realistic conversations through messages, phone calls, or video.

Once attackers gain access to an account, they may be able to read private messages, group chats, and shared files via WhatsApp and Signal. They can also impersonate the compromised user to launch additional phishing attacks targeting the victim’s contacts.

The alert echoes a previous warning issued by the Cybersecurity and Infrastructure Security Agency (CISA), which reported that encrypted messaging apps are increasingly being used as entry points for spyware and phishing campaigns targeting high-value individuals.

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EU approves signature of global AI framework

The European Parliament has approved the Council of Europe Framework Convention on Artificial Intelligence, the first international legally binding treaty on AI governance.

With 455 votes in favour, 101 against, and 74 abstentions, Parliament endorsed the EU’s signature to embed existing AI legislation in a global framework. The move reinforces the safe and rights-respecting deployment of AI across the EU and worldwide.

The convention sets standards for transparency, documentation, risk management, and oversight, applying to both public authorities and private actors acting on their behalf.

It establishes a global baseline for AI governance while allowing the EU to maintain higher protections under the AI Act, GDPR, and other EU legislation covering product safety, liability, and non-discrimination.

The EU co-rapporteurs highlighted that the agreement demonstrates the EU’s commitment to human-centric AI. By prioritising democracy, accountability, and fundamental rights, the framework aims to ensure AI strengthens open societies while supporting stable economic growth.

Negotiations on the convention began in 2022 with participation from the EU member states, international partners, civil society, academia, and industry. Current signatories include the EU, the UK, Ukraine, Canada, Israel, and the United States, with the convention open to additional global partners.

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EU lawmakers move forward on AI Act changes

Members of the European Parliament have reached a preliminary political agreement on amendments to the EU Artificial Intelligence Act. The compromise will be reviewed by parliamentary committees before a scheduled vote in Brussels.

Lawmakers in the EU agreed to extend compliance deadlines for some high risk AI systems. The changes aim to give companies and regulators more time to prepare technical standards and enforcement frameworks.

The proposed amendments also include a ban on AI systems that create non consensual explicit deepfakes. Officials in the EU say the measure aims to strengthen consumer protection and improve online safety for children.

Industry groups in the EU have raised concerns about compliance burdens linked to the revised rules. Policymakers in the EU continue negotiations as the legislation moves toward committee approval.

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Civil society urges stronger EU digital fairness rules

More than 200 civil society organisations have urged the European Commission to deliver strong consumer protections through the upcoming Digital Fairness Act. Advocacy groups in the EU say the proposal must address risks created by modern online platforms.

Campaigners argue that many existing EU consumer laws were designed decades ago and no longer reflect the realities of the digital market. The coalition warned policymakers in the EU not to treat regulatory simplification as a path toward deregulation.

Advocates are pushing for binding rules targeting deceptive design practices and addictive digital features. Survey responses across the EU show broad public support for stronger protections against dark patterns and unfair personalisation.

The European Commission is expected to present the Digital Fairness Act later this year. Officials in the EU are also considering expanding enforcement powers to strengthen consumer safeguards online.

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Telegram faces global outages as Russia slows service

Users of the messaging app Telegram have experienced outages in multiple regions over the past 24 hours, with the largest volume of complaints coming from Russia. Reports from the US, UK, Germany, the Netherlands, and Norway suggest the issues could be global.

Difficulties primarily affected the mobile app, with users reporting login issues, messaging delays, and limited access to features. In Russia, outages result from traffic slowdowns by Roskomnadzor, with similar restrictions affecting WhatsApp.

Telegram’s founder, Pavel Durov, has criticised the Russian government’s actions, arguing that authorities aim to push citizens towards a state-controlled alternative, the ‘Max’ messenger.

Despite Telegram overtaking WhatsApp in Russia with over 95 million active users, Max has now surpassed 100 million users, showing the Kremlin’s growing influence over digital communications.

Russian authorities have stated that Telegram must comply with local laws, moderate content, and consider data localisation to avoid further restrictions. Durov has reaffirmed the platform’s commitment to protecting user privacy and upholding freedom of speech.

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EU charts roadmap for tokenised financial markets

The European Central Bank (ECB) has unveiled Appia, a strategic roadmap for developing Europe’s tokenised financial ecosystem anchored in central bank money. The initiative aims to guide the shift from traditional finance to tokenised markets while ensuring stability and interoperability.

A key component of Appia is Pontes, the Eurosystem’s distributed ledger technology (DLT) settlement solution. Pontes, set for Q3 2026 pilots, will enable central bank money transactions and connect DLT infrastructures with the Eurosystem’s TARGET2, T2S, and TIPS services.

The ECB has opened a public consultation inviting feedback and proposals from both public and private sector stakeholders. Respondents’ input will help refine the roadmap and shape the long-term blueprint for Europe’s tokenised financial system.

Appia also complements ongoing efforts on the digital €, with payment service provider selection planned for 2026 and a 12-month pilot trial in the second half of 2027.

The initiative highlights the ECB’s commitment to integrating emerging technologies while preserving financial stability.

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UK watchdog demands stronger child safety on social platforms

The British communications regulator Ofcom has called on major technology companies to enforce stricter age controls and improve safety protections for children using online platforms.

The warning targets services widely used by young audiences, including Facebook, Instagram, Roblox, Snapchat, TikTok and YouTube.

Regulators said that despite existing minimum age policies, large numbers of children under the age of 13 continue to access platforms intended for older users.

According to Ofcom research, more than 70 percent of children aged 8 to 12 regularly use such services.

Authorities have asked companies to demonstrate how they will strengthen protections and ensure compliance with minimum age requirements.

Platforms must present their plans by 30 April, after which Ofcom will publish an assessment of their responses and determine whether further regulatory action is necessary.

The regulator also outlined several key areas requiring improvement.

Companies in the UK are expected to implement more effective age-verification systems, strengthen protections against online grooming and ensure that recommendation algorithms do not expose children to harmful content.

Another concern involves product development practices.

Ofcom warned that new digital features, including AI tools, should not be tested on children without adequate safety assessments. Platforms are required to evaluate potential risks before launching significant updates.

The measures are part of the UK’s broader regulatory framework introduced under the Online Safety Act, which aims to reduce exposure to harmful online material.

The law requires platforms to prevent children from accessing content linked to pornography, suicide, self-harm and eating disorders, while limiting the promotion of violent or abusive material in recommendation feeds.

Ofcom indicated that enforcement action may follow if companies fail to demonstrate meaningful improvements. Regulators argue that stronger safeguards are necessary to restore public trust and ensure that digital platforms prioritise child safety in their design and operation.

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EU competition regulators expand scrutiny across the entire AI ecosystem

Competition authorities in the EU are broadening their oversight of the AI sector, examining every layer of the technology’s value chain.

Speaking at a conference in Berlin, Teresa Ribera explained that regulators are analysing the full ‘AI stack’ instead of focusing solely on consumer applications.

According to the competition chief, scrutiny extends beyond visible AI tools to the systems that support them. Investigations are assessing underlying models, the data used to train those models, as well as cloud infrastructure and energy resources that power AI systems.

Regulatory attention has already reached the application layer.

The European Commission opened an investigation in 2025 involving Meta after concerns emerged that the company could restrict competing AI assistants on its messaging platform WhatsApp.

Following regulatory pressure, Meta proposed allowing rival AI chatbots on the platform in exchange for a fee. European regulators are now assessing the proposal to determine whether additional intervention is necessary to preserve fair competition in rapidly evolving digital markets.

Authorities have also examined concentration risks across other parts of the AI ecosystem, including the infrastructure layer dominated by companies such as Nvidia.

Regulators argue that effective competition oversight must address the entire technology stack as AI markets expand quickly.

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Cambridge researchers warn AI toys misread children’s emotions

AI toys for young children may misread emotions and respond inappropriately, according to a study by researchers at the University of Cambridge. Developmental psychologists observed interactions between children aged three to five and conversational AI-powered toys.

Findings showed the toys often struggled with pretend play and emotional cues. In several cases, children attempted to express sadness or initiate imaginative scenarios, while the AI responded with unrelated or overly scripted replies, leaving emotional signals unrecognised.

Researchers warned that such limitations could affect children’s emotional development and imaginative play. Early years practitioners also raised concerns about how toy-collected conversation data may be used and whether children could start treating the devices as trusted companions.

The study calls for stronger regulation and the introduction of safety certification for AI toys aimed at young children. Toy developer Curio stated that improving AI interactions and maintaining parental controls remain priorities as the technology continues to develop.

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