Consumer protection Archives | Page 2 of 217

EU reviews X compliance proposal under Digital Services Act

X has submitted a compliance proposal to the European Commission outlining how it intends to modify its blue check verification system following regulatory concerns under the Digital Services Act.

The EU regulators concluded that the platform’s system allowed users to obtain verification simply by paying for a subscription without meaningful identity checks, potentially misleading users about the authenticity of accounts.

The Commission imposed a €120 million fine in December and gave the company 60 working days to propose corrective measures. Officials confirmed that X met the deadline for submitting a plan, which regulators will now assess.

The platform, owned by Elon Musk, must also pay the penalty while the Commission evaluates the proposed changes. The company has challenged the enforcement decision before the EU’s General Court.

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Major tech firms pledge to fight online fraud

Major technology and consumer-facing companies, including Google, Amazon, and OpenAI, have signed the ‘Industry Accord Against Online Scams and Fraud’ to share threat intelligence and strengthen defences against online fraud.

The voluntary pact brings together 11 signatories: Amazon, Adobe, Google, Levi Strauss & Co., LinkedIn, Match Group, Microsoft, Meta, OpenAI, Pinterest, and Target. It aims to improve coordination among companies and strengthen cooperation with governments, law enforcement, and NGOs.

The accord commits to sharing intelligence on criminal networks, using AI to detect fraud, and strengthening verification for financial transactions. Participating companies will also provide clearer reporting channels for users and encourage governments to prioritise scam prevention.

Executives emphasised that tackling scams requires collective effort. Meta’s Nathaniel Gleicher said the accord enables companies to share insights beyond individual cases, while Microsoft’s Steven Masada highlighted the need for faster collaboration to disrupt scams and track perpetrators globally.

The move comes as online scams grow in scale and sophistication, aided by AI-generated content and cross-platform operations. Consumers lost over $16 billion to online scams in 2024, prompting firms to boost safety features and push for stronger regulations and law enforcement.

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Europe aims to tighten AI rules and personal data standards

The European Council has proposed AI Act amendments, banning nudification tools and tightening rules for processing sensitive personal data. The move represents a key step in streamlining the continent’s digital legislation and improving safeguards for citizens.

Council officials highlighted the prohibition of AI systems that generate non-consensual sexual content or child sexual abuse material. The measure matches a European Parliament ban, showing strong support for tighter AI controls amid misuse concerns.

The proposal follows incidents such as the Grok chatbot producing millions of non-consensual intimate images, which sparked a global backlash and prompted an EU probe into the social media platform X and its AI features.

Other amendments reinstate strict rules for processing sensitive data to detect bias and require providers to register high-risk AI systems, even if claiming exemptions. Negotiations between the Council and Parliament will finalise the AI Act’s updated measures.

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OpenAI says ChatGPT advertisements remain limited to the US

Despite speculation that the feature was expanding internationally, OpenAI has clarified that advertisements in ChatGPT are currently available only to users in the US.

Questions about a broader rollout emerged after references to advertisements appeared in the platform’s updated privacy policy. Some users interpreted the language as evidence that advertising would soon be introduced globally.

OpenAI said the policy update does not signal an immediate expansion. According to the company, advertising features are still being tested within the US as part of a gradual deployment strategy.

ChatGPT advertisements were introduced in February 2026 and appear below responses generated by the chatbot. The ads are shown only to logged-in users on free subscription tiers and are not displayed to users under eighteen.

Company representatives stated that advertising systems operate independently from the AI model that generates responses. According to OpenAI, advertisers cannot influence or modify the content produced by ChatGPT.

The company also said it does not share user conversations or personal chat histories with advertisers. However, advertisements may still be personalised based on user queries, which has prompted discussions about how conversational interfaces could shape consumer decisions.

OpenAI indicated that it is adopting a cautious, phased approach before considering any wider rollout of ChatGPT advertising features in other markets.

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Young investors warned on crypto and AI advice

Australia’s financial regulator has warned young investors to be cautious with social media influencers and AI chatbots. A survey by the Australian Securities and Investments Commission found one in four Gen Z Australians invest in crypto, often guided by online content.

The survey of 1,127 participants aged 18 to 28 showed 63% use social media for financial information, 18% rely on AI platforms, and 30% consult YouTube. AI was the most trusted source at 64%, but over half still trust influencers and social media despite possible misinformation.

ASIC previously issued warnings to 18 influencers suspected of promoting high-risk products without a licence. Commissioner Alan Kirkland said some social media marketing promotes crypto scams or risky super switches that threaten young people’s key assets.

The regulator is also watching AI financial guidance. Personalised advice from unlicensed sources is illegal, and young investors should carefully check sources, especially as crypto exchanges increasingly use AI bots for trading guidance.

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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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