Consumer protection

SK Telecom begins SIM card replacement after data breach

South Korea’s largest carrier, SK Telecom, began replacing SIM cards for its 23 million customers on Monday following a serious data breach.

Instead of revealing the full extent of the damage or the perpetrators, the company has apologised and offered free USIM chip replacements at 2,600 stores nationwide, urging users to either change their chips or enrol in an information protection service.

The breach, caused by malicious code, compromised personal information and prompted a government-led review of South Korea’s data protection systems.

However, SK Telecom has secured less than five percent of the USIM chips required, planning to procure an additional five million by the end of May instead of having enough stock ready for immediate replacement.

Frustrated customers, like 30-year-old Jang waiting in line in Seoul, criticised the company for failing to be transparent about the amount of data leaked and the number of users affected.

Instead of providing clear answers, SK Telecom has focused on encouraging users to seek chip replacements or protective measures.

South Korea, often regarded as one of the most connected countries globally, has faced repeated cyberattacks, many attributed to North Korea.

Just last year, police confirmed that North Korean hackers had stolen over a gigabyte of sensitive financial data from a South Korean court system over a two-year span.

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Investors sue Nike for alleged NFT ‘soft rug pull’

Nike faces a proposed $5 million class action lawsuit accusing the sportswear giant of abandoning investors in its sneaker-themed NFTs. Filed on Friday, the complaint alleges that Nike promoted its digital assets through RTFKT. It then pulled back support, causing the NFTs to lose value.

The plaintiffs claim that Nike engaged in a ‘soft rug pull‘ by hyping the NFTs and later winding down RTFKT’s operations. They argue that the NFTs were unregistered securities and that Nike failed to provide key disclosures that registration would have required.

Investors allege they would not have purchased the NFTs if they had known about the risks or Nike’s plans to exit the project.

Even if the NFTs are not classified as securities, the lawsuit contends that Nike’s actions violated consumer protection laws across several US states. Plaintiffs further accuse Nike of unjust enrichment, profiting from NFT sales while leaving buyers with losses.

Nike has not yet responded publicly. Meanwhile, RTFKT’s NFTs briefly disappeared last week due to a hosting issue, compounding concerns among collectors.

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Anthropic aims to decode AI ‘black box’ within two years​

Anthropic CEO Dario Amodei has unveiled an ambitious plan to make AI systems more transparent by 2027. In a recent essay titled ‘The Urgency of Interpretability,’ Amodei highlighted the pressing need to understand the inner workings of AI models.

He expressed concern over deploying highly autonomous systems without a clear grasp of their decision-making processes, deeming it ‘basically unacceptable’ for humanity to remain ignorant of how these systems function.

Anthropic is at the forefront of mechanistic interpretability, a field dedicated to deciphering the decision-making pathways of AI models. Despite these advancements, Amodei emphasized that much more research is needed to fully decode these complex systems.​

Looking ahead, Amodei envisions conducting ‘brain scans’ or ‘MRIs’ of advanced AI models to detect potential issues like tendencies to deceive or seek power. He believes that achieving this level of interpretability could take five to ten years but is essential for the safe deployment of future AI systems.

Amodei also called on industry peers, including OpenAI and Google DeepMind, to intensify their research efforts in this area and urged governments to implement ‘light-touch’ regulations to promote transparency and safety in AI development.​

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YouTube is testing AI-generated video highlights

Google is expanding its AI Overviews feature to YouTube, bringing algorithmically generated video highlights and search suggestions to the platform. Initially rolled out to a limited number of YouTube Premium users in the US, the experimental tool uses AI to identify and surface the most relevant clips.

The AI-generated results are currently focused on shopping and travel content, offering viewers a new way to discover videos and related topics without watching entire clips.

Google says the feature is designed to streamline content discovery, though it arrives with some scepticism following the rocky debut of AI Overviews in Google Search last year. That version, introduced in May 2024, was widely criticised for factual errors and bizarre “hallucinations” in responses.

Despite its troubled track record, Google is pushing ahead with AI integration across its platforms. The company’s blog post emphasised that the YouTube trial remains limited in scope for now, while promising future refinements.

Whether the move improves user experience or adds confusion remains to be seen, as critics question the reliability of AI-generated summaries on such a massive and diverse video platform.

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Meta cuts jobs in Reality Labs

Meta has announced layoffs within its Reality Labs division, impacting Oculus Studios and hardware development teams. Among those affected is the team behind Supernatural, a popular VR fitness app that Meta acquired for over $400 million.

The company stated that these restructuring efforts aim to improve efficiency and focus on developing future mixed reality experiences, particularly in fitness and gaming. Despite reaffirming its commitment to VR and mixed reality, Meta’s moves reflect its Quest headset business challenges.

While its smart glasses partnership with Ray-Ban has exceeded sales expectations, Quest devices continue to underperform, with the latest Quest 3S already seeing discounts less than a year after release.

Why does it matter?

The layoffs signal Meta’s attempt to streamline operations as it navigates a shifting market for virtual and mixed reality. Although the company promises ongoing support for its VR communities, these changes highlight the pressures Meta faces in turning its ambitious metaverse and hardware ventures into sustainable success.

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MTN confirms cybersecurity breach and data exposure

MTN Group has confirmed a cybersecurity breach that exposed personal data of some customers in certain markets. The telecom giant assured the public, however, that its core infrastructure remains secure and fully operational.

The breach involved an unknown third party gaining unauthorised access to parts of MTN’s systems, though the company emphasised that critical services, including mobile money and digital wallets, were unaffected.

In a statement released on Thursday, MTN clarified that investigations are ongoing, but no evidence suggests any compromise of its central infrastructure, such as its network, billing, or financial service platforms.

MTN has alerted the law enforcement of South Africa and is collaborating with regulatory bodies in the affected regions.

The company urged customers to take steps to safeguard their data, such as monitoring financial statements, using strong passwords, and being cautious with suspicious communications.

MTN also recommended enabling multi-factor authentication and avoiding sharing sensitive information like PINs or passwords through unsecured channels.

While investigations continue, MTN has committed to providing updates as more details emerge, reiterating its dedication to transparency and customer protection.

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Google stopped Motorola from using Perplexity as default assistant

A senior executive at Perplexity AI has testified that Google prevented Motorola from setting the AI startup’s assistant as the default on new smartphones, citing restrictive contracts.

The testimony came during a trial seeking remedies after Google was found to have unlawfully maintained a search monopoly.

Although Motorola will preload the app, it cannot make it the default due to binding agreements with Google. Perplexity’s Chief Business Officer, described the difficulty of replacing Google’s assistant on Android phones, saying Google’s terms create an environment where device makers fear losing revenue.

The CEO added that ongoing negotiations with other companies only became possible due to pressure from the US Department of Justice’s antitrust case.

The Justice Department is asking the court to ban Google from paying for default placements, which would also affect its AI products like Gemini.

Meanwhile, Perplexity is developing its own browser, Comet, and voiced concern about any Chrome sale undermining open-source access. The company does not support OpenAI’s interest in acquiring the browser, citing past inconsistencies in its open-source commitments.

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White House condemns EU fines on Apple and Meta

The White House has strongly criticised the EU after landmark fines were imposed on Apple and Meta Platforms, describing the penalties as a ‘novel form of economic extortion’ that the US would not tolerate.

The European Commission fined Apple €500 million and Meta €200 million under the Digital Markets Act (DMA), a new law designed to rein in the power of dominant tech giants.

Rather than viewing the DMA as a fair attempt to promote market competition, US officials called it ‘discriminatory’ and claimed it unfairly targets American firms, undermines innovation, and restricts civil liberties.

The White House warned that such extraterritorial measures would be treated as trade barriers and hinted at retaliation.

At the same time, tensions were mounting on another front, with US Treasury Secretary Scott Bessent acknowledging that tariffs between the US and China were unsustainable.

He said both sides must lower their tariffs, currently as high as 145 per cent, instead of expecting unilateral moves, suggesting a potential thaw in the ongoing trade war.

President Trump, while indicating openness to cutting Chinese import duties, also threatened to raise the existing 25 per cent tariff on Canadian car imports. He said the US should focus on building its own vehicles instead of relying on foreign manufacturers.

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Meta under scrutiny in France over digital Ad practices

Meta, the parent company of Facebook, is facing fresh legal backlash in France as 67 French media companies representing over 200 publications filed a lawsuit alleging unfair competition in the digital advertising market. 

The case, brought before the Paris business tribunal, accuses Meta of abusing its dominant position through massive personal data collection and targeted advertising without proper consent.

The case marks the latest legal dispute in a string of EU legal challenges for the tech giant this week. 

Media outlets such as TF1, France TV, BFM TV, and major newspaper groups like Le Figaro, Liberation, and Radio France are among the plaintiffs. 

They argue that Meta’s ad dominance is built on practices that undermine fair competition and jeopardise the sustainability of traditional media.

The French case adds to mounting pressure across the EU. In Spain, Meta is due to face trial over a €551 million complaint filed by over 80 media firms in October. 

Meanwhile, the EU regulators fined Meta and Apple earlier this year for breaching European digital market rules, while online privacy advocates have launched parallel complaints over Meta’s data handling.

Legal firms Scott+Scott and Darrois Villey Maillot Brochier represent the French media alliance.

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Microsoft expands rewards for reporting AI vulnerabilities

Microsoft has announced an expanded bug bounty initiative, offering up to $30,000 for researchers who uncover critical vulnerabilities in AI features within Dynamics 365 and the Power Platform.

The programme aims to strengthen security in enterprise software by encouraging ethical hackers to identify and report risks before cybercriminals can exploit them.

Rather than relying on general severity scales, Microsoft has introduced an AI-specific vulnerability classification system. It highlights prompt injection attacks, data poisoning during training, and techniques like model stealing and training data reconstruction that could expose sensitive information.

Highest payouts are reserved for flaws that allow attackers to access other users’ data or perform privileged actions without their consent.

The company urges researchers to use free trials of its services, such as PowerApps and AI Builder, to identify weaknesses. Detailed product documentation is provided to help participants understand the systems they are testing.

Even reports that don’t qualify for a financial reward can still lead to recognition if they result in improved defences.

The AI bounty initiative is part of Microsoft’s wider commitment to collaborative cybersecurity. With AI becoming more deeply integrated into enterprise software, the company says it is more important than ever to identify vulnerabilities early instead of waiting for security breaches to occur.

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