Consumer protection

Australian kids overlook social media age checks

A recent report by Australia’s eSafety regulator reveals that children in the country are finding it easy to bypass age restrictions on social media platforms. The findings come ahead of a government ban, set to take effect at the end of 2025, that will prevent children under the age of 16 from using these platforms. The report highlights data from a national survey on social media use among 8 to 15-year-olds and feedback from eight major services, including YouTube, Facebook, and TikTok.

The report shows that 80% of Australian children aged 8 to 12 were using social media in 2024, with YouTube, TikTok, Instagram, and Snapchat being the most popular platforms. While most platforms, except Reddit, require users to enter their date of birth during sign-up, the report indicates that these systems rely on self-declaration, which can be easily manipulated. Despite these weaknesses, 95% of teens under 16 were found to be active on at least one of the platforms surveyed.

While some platforms, such as TikTok, Twitch, and YouTube, have introduced tools to proactively detect underage users, others have not fully implemented age verification technologies. YouTube remains exempt from the upcoming ban, allowing children under 13 to use the platform with parental supervision. However, eSafety Commissioner Julie Inman Grant stressed that there is still significant work needed to enforce the government’s minimum age legislation effectively.

The report also noted that most of the services surveyed had conducted research to improve their age verification processes. However, as the law approaches, there are increasing calls for app stores to take greater responsibility for enforcing age restrictions.

For more information on these topics, visit diplomacy.edu.

Stricter rules for WhatsApp after EU designation

WhatsApp has officially met the threshold set by the EU’s Digital Services Act (DSA), marking its designation as a Very Large Online Platform.

The messaging app, owned by Meta Platforms, reported an average of 46.8 million monthly users in the EU during the latter half of 2024, surpassing the 45-million-user threshold established by the DSA.

The new classification requires WhatsApp to strengthen efforts in tackling illegal and harmful online content.

The platform must assess system risks related to public security, fundamental rights, and protecting minors within four months to comply with the DSA. Violations could result in fines reaching up to 6% of global annual revenue.

Meta’s Instagram and Facebook are already subject to the same rules. While complying with the stricter regulations, Meta leadership, including Mark Zuckerberg, has expressed concerns about the growing impact of EU tech laws.

For more information on these topics, visit diplomacy.edu.

Multi-million crypto Ponzi scheme exposed by Norwegian investigators

Norwegian prosecutors have charged four individuals for their role in a massive fraud and money laundering operation that deceived thousands of victims worldwide. Authorities say the scheme collected over 900 million kroner ($86–87 million), with more than 700 million kroner laundered through a Norwegian law firm before being transferred to accounts in Asia.

The scam operated as a multi-level marketing structure, with victims recruited to buy “product packages” containing cryptocurrency and company shares. Investors were promised profits from gas fields, mining, and real estate, but investigators say no real investments were made. Instead, new deposits funded payouts to earlier investors, fitting the classic Ponzi scheme model.

Officials revealed that financial professionals, including lawyers and accountants, helped to conceal the money flow, making the fraud harder to detect. Europol has warned that financial crimes like these are a growing global threat, with fraud and money laundering acting as the driving force behind organised crime.

Despite the cross-border nature of the operation, Norwegian authorities stress that those responsible will be prosecuted, no matter where their victims are located. The case highlights the increasing use of professional services to facilitate fraud, a challenge that law enforcement agencies worldwide are struggling to tackle.

For more information on these topics, visit diplomacy.edu. 

Young people rely on social media for political news

A growing number of young Europeans are turning to social media platforms like TikTok, Instagram, and YouTube as their primary news source, surpassing traditional outlets such as TV and print media. According to the latest European Parliament Youth Survey, 42% of people aged 16 to 30 rely on social media for news about politics and social issues. This shift highlights changing preferences toward fast-paced, accessible content but also raises concerns about the growing risk of disinformation among younger generations.

Younger users, especially those aged 16 to 18, are more likely to trust platforms like TikTok and Instagram, while those aged 25 to 30 tend to rely more on Facebook, online press, and radio for their news. However, the rise of social media as a news source has also led to increased exposure to fake news. A report from the Reuters Institute revealed that 27% of TikTok users struggle to identify misleading content, while Instagram has faced criticism for relaxing its fact-checking systems.

Despite being aware of the risks, young Europeans continue to engage with social media for news. A significant 76% of respondents reported encountering fake news in the past week, yet platforms like Instagram remain the most popular news sources. This trend is impacting trust in political institutions, with many young people expressing scepticism toward the EU and skipping elections due to a lack of information.

The reliance on social media for news has shifted political discourse, as fake news and AI-generated content have been used to manipulate public opinion. The constant exposure to sensationalised false information is also having psychological effects, increasing anxiety and confusion among young people and pushing some to avoid news altogether.

For more information on these topics, visit diplomacy.edu.

Nigeria’s new proposal to tax crypto transactions

Nigeria is set to amend its digital asset regulations to introduce taxes on cryptocurrency transactions, a move the government believes could generate significant revenue. A bill currently before the National Assembly aims to provide a legal framework for taxing transactions on regulated exchanges, with expectations for its adoption this quarter.

The Nigerian Securities and Exchange Commission (SEC) is also working on expanding crypto licensing, allowing exchanges to be monitored for tax compliance. The SEC issued its first exchange licence in August 2024 and has since taken steps to regulate unlicensed platforms.

With Nigeria ranked second in global crypto adoption, many citizens have embraced cryptocurrencies, especially stablecoins like Tether and USD Coin, to protect their wealth against the country’s high inflation and depreciating currency. In the last year, Nigeria received $21.8 billion in stablecoin transactions, leading the Sub-Saharan region.

For more information on these topics, visit diplomacy.edu.

Google settles tax dispute in Italy for 326 million euros

Milan prosecutors have announced plans to drop a case against Google’s European division after the company agreed to settle a tax dispute by paying 326 million euros (£277 million). The settlement covers the period from 2015 to 2019, including penalties, sanctions, and interest.

The tax dispute stemmed from allegations that Google had failed to file and pay taxes on revenue generated in Italy, based on the digital infrastructure it operates within the country. This comes after the company settled a previous tax case with Italian authorities in 2017 by paying 306 million euros, which acknowledged Google’s permanent presence in Italy.

In 2023, Italy had requested that Google pay 1 billion euros in unpaid taxes and penalties. However, with this latest settlement, the case against the tech giant appears to be resolved for now.

For more information on these topics, visit diplomacy.edu.

Pro-Russian hackers target Italian banks and airports in cyber attack

A wave of cyber attacks hit around 20 Italian websites, including those of banks and airports, in an incident linked to rising tensions between Rome and Moscow.

Italy‘s cybersecurity agency attributed the attacks to the pro-Russian hacker group Noname057(16), which targeted websites such as Intesa Sanpaolo, Banca Monte dei Paschi, Iccrea Banca, and Milan’s Linate and Malpensa airports. Authorities reported no major disruptions.

The attack followed recent remarks by Italian President Sergio Mattarella, who compared Russia‘s war on Ukraine to Nazi Germany‘s expansionism.

Moscow condemned the statement, while Italian Prime Minister Giorgia Meloni defended it. The hackers cited Mattarella’s comments as motivation for their actions, according to Italy’s cybersecurity agency.

Noname057(16) previously claimed responsibility for a cyber attack on Italy in December, which targeted around 10 institutional websites. Some of the affected organisations declined to comment on the latest breach, while others reported no operational impact. Italian authorities continue to monitor the situation.

For more information on these topics, visit diplomacy.edu.

Argentina’s President faces impeachment calls over cryptocurrency scandal

President of Argentina, Javier Milei, is facing impeachment calls from opposition lawmakers after promoting a little-known cryptocurrency that crashed shortly after his endorsement. Late on Friday, Milei posted on X recommending the crypto coin $LIBRA, causing its price to surge to nearly $5 before plummeting below $1 within hours.

Critics accused the president of irresponsibility, with some suggesting the incident could be a “rug pull” scam designed to manipulate investments.

Lawmaker Leandro Santoro, a member of the opposition coalition, called the incident an international embarrassment and announced plans to seek Milei’s impeachment.

Argentina’s fintech chamber acknowledged the possibility of fraudulent activity, adding to concerns about the president’s involvement. Local media reported that Milei’s post remained online for a few hours before being deleted.

Milei later distanced himself from the cryptocurrency, stating he had no connection to it and was unaware of its details before promoting it.

After learning more, he removed the post to avoid further publicity. Despite his explanation, the controversy has intensified political tensions, with opposition figures questioning his judgment and calling for accountability.

For more information on these topics, visit diplomacy.edu.

Study warns of AI’s role in fueling bank runs

A new study from the UK has raised concerns about the risks of bank runs fueled by AI-generated fake news spread on social media. The research, published by Say No to Disinfo and Fenimore Harper, highlights how generative AI can create false stories or memes suggesting that bank deposits are at risk, leading to panic withdrawals. The study found that a significant portion of UK bank customers would consider moving their money after seeing such disinformation, especially with the speed at which funds can be transferred through online banking.

The issue is gaining traction globally, with regulators and banks worried about the growing role of AI in spreading malicious content. Following the collapse of Silicon Valley Bank in 2023, which saw $42 billion in withdrawals within a day, financial institutions are increasingly focused on detecting disinformation that could trigger similar crises. The study estimates that a small investment in social media ads promoting fake content could cause millions in deposit withdrawals.

The report calls for banks to enhance their monitoring systems, integrating social media tracking with withdrawal monitoring to better identify when disinformation is impacting customer behaviour. Revolut, a UK fintech, has already implemented real-time monitoring for emerging threats, urging financial institutions to be prepared for potential risks. While banks remain optimistic about AI’s potential, the financial stability challenges it poses are still a growing concern for regulators.

As financial institutions work to mitigate AI-related risks, the broader industry is also grappling with how to balance the benefits of AI with the threats it may pose. UK Finance, the industry body, emphasised that banks are making efforts to manage these risks, while regulators continue to monitor the situation closely.

For more information on these topics, visit diplomacy.edu.

Anthropic’s Claude tested as UK explores AI chatbot for public services

The UK government has partnered with AI startup Anthropic to explore the use of its chatbot, Claude, in public services. The collaboration aims to improve access to public information and streamline interactions for citizens.

Anthropic, a competitor of ChatGPT creator OpenAI and supported by tech giants Google and Amazon, signed a memorandum of understanding with the government.

The initiative aligns with Prime Minister Keir Starmer’s ambition to establish the UK as a leader in AI and enhance public service efficiency through innovative technologies.

Technology minister Peter Kyle highlighted the importance of this partnership, emphasising its role in positioning the UK as a hub for advanced AI development.

Claude has already been employed by the European Parliament to simplify access to its archives, demonstrating its potential in reducing time for document retrieval and analysis.

This step underscores Britain’s commitment to leveraging cutting-edge AI for the benefit of individuals and businesses nationwide.

For more information on these topics, visit diplomacy.edu.