Researchers at the University of California, Davis, have revealed that generative AI browser assistants may be harvesting sensitive data from users without their knowledge or consent.
The study, led by the UC Davis Data Privacy Lab, tested popular browser extensions powered by AI and discovered that many collect personal details ranging from search history and email contents to financial records.
The findings highlight a significant gap in transparency. While these tools often market themselves as productivity boosters or safe alternatives to traditional assistants, many lack clear disclosures about the data they extract.
Researchers sometimes observed personal information being transmitted to third-party servers without encryption.
Privacy advocates argue that the lack of accountability puts users at significant risk, particularly given the rising adoption of AI assistants for work, education and healthcare. They warn that sensitive data could be exploited for targeted advertising, profiling, or cybercrime.
The UC Davis team has called for stricter regulatory oversight, improved data governance, and mandatory safeguards to protect users from hidden surveillance.
They argue that stronger frameworks are needed to balance innovation with fundamental rights as generative AI tools continue to integrate into everyday digital infrastructure.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
Bitcoin and Ether fell on Tuesday as traders took profits following a recent market rally and positioned themselves ahead of upcoming macroeconomic events. Bitcoin dropped 2.78% to $113,234, briefly trading as low as $112,709, while Ether fell 5.44% to $4,108.
Analysts attribute the declines to profit-taking and leveraged liquidations after Bitcoin reached an all-time high earlier this month. Market participants take a wait-and-see approach, with ether key levels at $4,200 support and $3,900 downside risk.
Spot Bitcoin and Ether ETFs are also being closely monitored. ETFs have recently seen net outflows after strong inflows in July and early August, signalling cautious investor sentiment.
Traders are now focused on July’s Federal Open Market Committee meeting minutes. Federal Reserve Chair Jerome Powell’s Jackson Hole speech on Friday could trigger sharp market movements depending on policy signals.
Investors remain cautious, positioning for Powell’s remarks while weighing the potential impact of expected rate cuts in September. Analysts suggest the market may consolidate until greater clarity emerges on monetary policy.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
TeraWulf has secured a $3.2 billion financial backstop from Google to develop a 160-megawatt data centre at its Lake Mariner site in New York. Google will receive warrants for 32.5 million shares, lifting its stake in TeraWulf to about 14%.
Unlike its existing Bitcoin mining activities, the new deal focuses exclusively on AI and high-performance computing (HPC) workloads. TeraWulf confirmed it will maintain its Bitcoin mining operations but has no plans for expansion in that area.
The pivot reflects a broader trend in the mining industry, where companies increasingly shift capacity toward AI following the April 2024 halving that cut block rewards.
Executives highlighted that while Bitcoin mining offers immediate cash flow and grid flexibility, the long-term growth lies in powering AI and HPC demand. Research from VanEck suggests that if miners redirected just 20% of their power toward AI hosting, the industry could see $13.9 billion in additional annual revenue.
TeraWulf’s leadership said the partnership with Google positions the company as a key player in building next-generation digital infrastructure.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
Weymouth and Kingston Maurward College in Dorset is investigating a recent phishing attack that compromised several email accounts. The breach occurred on Friday, 15 August, during the summer holidays.
Spam emails were sent from affected accounts, though the college confirmed that personal data exposure was minimal.
The compromised accounts may have contained contact information from anyone who previously communicated with the college. Early detection allowed the college to lock down affected accounts promptly, limiting the impact.
A full investigation is ongoing, with additional security measures now in place to prevent similar incidents. The matter has been reported to the Information Commissioner’s Office (ICO).
Phishing attacks involve criminals impersonating trusted entities to trick individuals into revealing sensitive information such as passwords or personal data. The college reassured students, staff, and partners that swift action and robust systems limited the disruption.
The colleges, which merged just over a year ago, recently received a ‘Good’ rating across all areas in an Ofsted inspection, reflecting strong governance and oversight amid the cybersecurity incident.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
Wyoming has launched the Frontier Stable Token (FRNT), becoming the first US state to issue a government-backed stablecoin. The initiative aims to modernise payments for citizens and businesses, offering a secure and efficient way to transact.
The token is fully reserved, backed by dollars and short-term treasuries held in trust, and structured to be 2% over-collateralised. State officials emphasised that this design strengthens confidence and avoids the risks often linked to privately issued stablecoins.
The launch was announced during the Wyoming Blockchain Symposium and coincided with new federal legislation, the GENIUS Act, which sets more explicit rules for stablecoin issuers.
Ahead of the rollout, Wyoming tested a blockchain-based payment to a government contractor, proving the token’s ability to reduce costs and streamline transactions.
By introducing FRNT, Wyoming has positioned itself as a digital asset pioneer within the US. The move reflects growing confidence in stablecoins, which have already reached a $260 billion market and could expand to $1 trillion within years.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
South Korea is advancing plans for a won-denominated stablecoin as the Financial Services Commission (FSC) drafts a regulatory framework. The proposal will set rules for issuance, collateral, and controls, marking South Korea’s first unified approach to stablecoins.
Political and industry momentum has been growing under pro-crypto President Lee Jae-myung. Surveys show strong public interest, while USD-backed stablecoins dominate local trading and remittances.
Eight major banks are collaborating on a joint won-based token, seeking regulatory approval to maintain competitiveness and reduce reliance on foreign-issued coins.
The private sector has already launched South Korea’s first won-pegged stablecoin. On 5 August, entertainment platform fanC and software firm Initech unveiled KRWIN, pegged 1:1 to the Korean won.
The pilot tests transferability and real-world use in payments, remittances, and tourism, with plans for a broader rollout hinted at by a trademark application.
Regional interest in stablecoins is rising across Asia, with Japan and Hong Kong also exploring initiatives. Dollar-backed stablecoins like USDT and USDC still dominate, keeping competition and adoption timelines uncertain despite won-pegged token launches.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
India’s tax authority has formally engaged cryptocurrency platforms to gather feedback on how the country should regulate virtual digital assets (VDAs). The Central Board of Direct Taxes (CBDT) has issued a questionnaire, signalling plans to review current rules and explore a new law.
The consultation focuses on contentious issues such as the flat 30% tax on crypto gains, the 1% tax deducted at source (TDS) on every transaction, and the inability to offset losses. Industry players say the measures have drained liquidity and driven traders to more favourable markets like Dubai.
Banks’ reluctance to support crypto-linked accounts has further complicated matters.
Platforms have been asked to suggest whether a dedicated VDA law should be established, and which regulator-SEBI, the RBI, MeitY, or the FIU-IND-should oversee it. The CBDT seeks feedback on the OECD’s Crypto-Asset Reporting Framework, supported by India for coordinated global regulation.
Legal experts believe India is preparing for a comprehensive framework in the coming year, following its G20 advocacy for global cooperation on digital asset regulation. Industry voices suggest the government is moving towards regulatory clarity rather than continued uncertainty.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
A fake Telegram Premium website infects users with Lumma Stealer malware through a drive-by download, requiring no user interaction.
The domain, telegrampremium[.]app, hosts a malicious executable named start.exe, which begins stealing sensitive data as soon as it runs.
The malware targets browser-stored credentials, crypto wallets, clipboard data and system files, using advanced evasion techniques to bypass antivirus tools.
Obfuscated with cryptors and hidden behind real services like Telegram, the malware also communicates with temporary domains to avoid takedown.
Analysts warn that it manipulates Windows systems, evades detection, and leaves little trace by disguising its payloads as real image files.
To defend against such threats, organisations are urged to implement better cybersecurity controls, such as behaviour-based detection and enforce stronger download controls.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
Parag Agrawal, the former Twitter chief executive removed after Elon Musk’s takeover in 2022, has re-entered the technology sector with a new venture.
His company, Parallel Web Systems, is developing AI tools designed to help AI agents gather and analyse information online without human input.
The company’s first product, Deep Research API, outperforms human researchers and advanced models such as OpenAI’s GPT-5 on specific benchmarks.
Agrawal revealed that the system already supports millions of tasks daily and is used by coding agents to locate documents and fix errors. Parallel has secured 30 million dollars in funding and employs around 25 staff.
Agrawal had been Twitter’s chief technology officer before succeeding Jack Dorsey as chief executive in late 2021. After leaving the company, he returned to academic research and coding instead of joining other struggling firms.
He has argued that the internet will eventually be dominated by AI agents rather than human users, predicting that individuals may soon rely on dozens of agents to act on their behalf.
His views echo predictions from Coinbase developers, who recently suggested that AI agents could become the most significant users of Ethereum.
They propose that autonomous systems can handle stablecoin transfers and e-commerce transactions, enabling services from self-driving taxis to AI-powered content platforms.
Would you like to learn more aboutAI, tech and digital diplomacy? If so, ask our Diplo chatbot!
Iran’s energy shortage has sparked public anger, with residents blaming crypto mining and government mismanagement for blackouts and water scarcity. Demonstrations have broken out across several towns, with protesters demanding accountability.
The crisis has been exacerbated by record drought, soaring summer heat, and the drying of Lake Urmia. Tehran government buildings have shut down to save electricity, and hospitals face power cuts affecting patient care.
Videos shared on social media show protesters chanting ‘water, electricity, life – these are our indisputable rights’ as outages hit homes and businesses. Small traders say they cannot keep shops open, while medics in darkened wards have used handheld fans.
Critics say energy is diverted to IRGC-linked crypto mining, while experts warn of long-term mismanagement. President Masoud Pezeshkian has described the situation as ‘serious and unimaginable’, urging action as public resentment grows ahead of a volatile political season.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!