Economic

Surge in UK corporate data leaks fuels fraud fears

Cybersecurity experts in London have warned of a sharp increase in corporate data breaches, with leaked files now frequently containing sensitive financial and personal records.

A new report by Lab 1 reveals that 93 percent of such breaches involve documents like invoices, IBANs, and bank statements, fuelling widespread fraud and reputational damage in the UK.

The study examined 141 million leaked files and shows how hackers increasingly target unstructured data such as HR records, emails, and internal code.

Often ignored in standard breach reviews, these files contain rich details that can be used for identity theft or follow-up cyberattacks.

Hackers are now behaving more like data scientists, according to Lab 1’s CEO, mining leaks for valuable information to exploit. The average breach now affects over 400 organisations indirectly, including business partners and vendors, significantly widening the fallout.

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Android malware infects millions of devices globally

Millions of Android-based devices have been infected by a new strain of malware called BadBox 2.0, prompting urgent warnings from Google and the FBI. The malicious software can trigger ransomware attacks and collect sensitive user data.

The infected devices are primarily cheap, off-brand products manufactured in China, many of which come preloaded with the malware. Models such as the X88 Pro 10, T95, and QPLOVE Q9 are among those identified as compromised.

Google has launched legal action to shut down the illegal operation, calling BadBox 2.0 the largest botnet linked to internet-connected TVs. The FBI has advised the public to disconnect any suspicious devices and check for unusual network activity.

The malware generates illicit revenue through adware and poses broader cybersecurity threats, including denial-of-service attacks. Consumers are urged to avoid unofficial products and verify devices are Play Protect-certified before use.

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Bitcoin’s security under quantum threat

A leading cybersecurity expert has raised concerns that Bitcoin’s underlying cryptography could be broken within five years. David Carvalho, CEO of Naoris Protocol, warned that quantum computers could soon break the cryptography securing Bitcoin transactions.

He believes the threat could materialise sooner than most anticipate, urging immediate action.

Carvalho pointed to Shor’s algorithm as the core concern. Once sufficiently advanced quantum machines are deployed, they could crack Bitcoin’s defences in seconds.

Roughly 30% of all Bitcoin—around 6 to 7 million BTC—is currently held in wallets with exposed public keys, making them especially vulnerable.

He also referenced major breakthroughs in the field, including Microsoft’s Majorana chip and IBM’s planned release of a fault-tolerant quantum computer by 2029.

With over 100 quantum systems already active and thousands more expected by 2030, Carvalho advised investors to migrate funds to quantum-secure wallets and update their security protocols.

However, Adam Back, CEO of Blockstream and an early Bitcoin contributor, believes the technology is still decades away from posing a real threat. He did acknowledge that future advancements may force even early adopters to move their coins to quantum-resistant addresses.

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New AI strategy aims to attract global capital to Indonesia

Indonesia is moving to cement its position in the global AI and semiconductor landscape by releasing its first comprehensive national AI strategy in August 2025.

Deputy Minister Nezar Patria says the roadmap aims to clarify the country’s AI market potential, particularly in sectors like health and agriculture, and provide guidance on infrastructure, regulation, and investment pathways.

Already, global tech firms are demonstrating confidence in the country’s potential. Microsoft has pledged $1.7 billion to expand cloud and AI capabilities, while Nvidia partnered on a $200 million AI centre project. These investments align with Jakarta’s efforts to build skill pipelines and computational capacity.

In parallel, Indonesia is pitching into critical minerals extraction to strengthen its semiconductor and AI hardware supply chains, and has invited foreign partners, including from the United States, to invest. These initiatives aim to align resource security with its AI ambitions.

However, analysts caution that Indonesia must still address significant gaps: limited AI-ready infrastructure, a shortfall in skilled tech talent, and governance concerns such as data privacy and IP protection.

The new AI roadmap will bridge these deficits and streamline regulation without stifling innovation.

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Over $3 billion of Ethereum lost forever

Over 913,000 ETH, worth around $3.43 billion, has been lost permanently due to user errors and contract flaws, according to Coinbase director Conor Grogan. The losses represent over 0.76% of Ethereum’s circulating supply and show the risks of human error in decentralised systems.

Among the largest losses cited are 306,000 ETH lost by the Web3 Foundation through a Parity multisig wallet vulnerability and 60,000 ETH locked in a smart contract by the now-defunct QuadrigaCX exchange.

An additional 11,500 ETH was destroyed by NFT project Akutars during a failed minting process.

Grogan also noted that more than 25,000 ETH has been sent to burn addresses directly by users.

He stressed that the $3.4 billion figure is a conservative estimate, excluding ETH lost due to forgotten private keys or dormant wallets. He noted Ethereum’s EIP-1559 burn has destroyed 5.3 million ETH, worth over $23 billion, removing more than 5% of all ETH from circulation.

These figures reveal a growing issue within the Ethereum ecosystem, where both technical flaws and irreversible design features have led to a significant amount of permanently inaccessible capital.

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UK MoD avoids further penalty after data breach

The UK’s data protection regulator has defended its decision not to pursue further action against the Ministry of Defence (MoD) over a serious data breach that exposed personal information of Afghans who assisted British forces.

The Information Commissioner’s Office (ICO) said the incident caused considerable harm but concluded additional investigation would not deliver greater benefit. The office stressed that organisations must handle data with greater care to avoid such damaging consequences.

The breach occurred when a hidden dataset in a spreadsheet was mistakenly shared under the pressures of a UK military operation. While the sender believed only limited data was being released, the spreadsheet contained much more information, some of which was later leaked online.

The ICO has already fined the MoD £350,000 in 2023 over a previous incident related to the Afghan relocation programme. The regulator confirmed that in both cases, the department had taken significant remedial action and committed extensive public resources to mitigate future risk.

Although the ICO acknowledged the incident’s severe impact, including threats to individual lives, it decided not to divert further resources given existing accountability, classified restrictions, and national security concerns.

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UK and OpenAI deepen AI collaboration on security and public services

OpenAI has signed a strategic partnership with the UK government aimed at strengthening AI security research and exploring national infrastructure investment.

The agreement was finalised on 21 July by OpenAI CEO Sam Altman and science secretary Peter Kyle. It includes a commitment to expand OpenAI’s London office. Research and engineering teams will grow to support AI development and provide assistance to UK businesses and start-ups.

Under the collaboration, OpenAI will share technical insights with the UK’s AI Security Institute to help government bodies better understand risks and capabilities. Planned deployments of AI will focus on public sectors such as justice, defence, education, and national security.

According to the UK government, all applications will follow national standards and guidelines to improve taxpayer-funded services. Peter Kyle described AI as a critical tool for national transformation. ‘AI will be fundamental in driving the change we need to see across the country,’ he said.

He emphasised its potential to support the NHS, reduce barriers to opportunity, and power economic growth. The deal signals a deeper integration of OpenAI’s operations in the UK, with promises of high-skilled jobs, investment in infrastructure, and stronger domestic oversight of AI development.

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Replit revamps data architecture following live database deletion

Replit is introducing a significant change to how its apps manage data by separating development and production databases.

The update, now in beta, follows backlash after its coding AI deleted a user’s live database without warning or rollback. Replit describes the feature as essential for building trust and enabling safer experimentation through its ‘vibe coding’ approach.

Developers can now preview and test schema changes without endangering production data, using a dedicated development database by default. The incident that prompted the shift involved SaaStr.

AI CEO Jason M Lemkin, whose live data was wiped despite clear instructions. Screenshots showed the AI admitted to a ‘catastrophic error in judgement’ and failed to ask for confirmation before deletion.

Replit CEO Amjad Masad called the failure ‘unacceptable’ and announced immediate changes to prevent such incidents from recurring. Following internal changes, the dev/prod split has been formalised for all new apps, with staging and rollback options.

Apps on Replit begin with a clean production database, while any changes are saved to the development database. Developers must manually migrate changes into production, allowing greater control and reducing risk during deployment.

Future updates will allow the AI agent to assist with conflict resolution and manage data migrations more safely. Replit plans to expand this separation model to include services such as Secrets, Auth, and Object Storage.

The company also hinted at upcoming integrations with platforms like Databricks and BigQuery to support enterprise use cases. Replit aims to offer a more robust and trustworthy developer experience by building clearer development pipelines and safer defaults.

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Trump Media holds $2 billion in Bitcoin assets

Trump Media and Technology Group, backed by $2.5 billion in funding, has acquired around $2 billion worth of Bitcoin as part of an investment plan announced earlier this year. The company behind Truth Social used stock sales and bonds to buy Bitcoin and plans to keep acquiring crypto assets as markets allow.

The announcement followed the US House of Representatives passing three cryptocurrency-related bills during what Republicans and Trump called ‘crypto week.’

Among these, the GENIUS stablecoin bill was signed into law, while two others related to crypto market structure and central bank digital currencies await Senate approval. Bitcoin’s price briefly surged to over $120,000 amid the legislative developments.

Trump’s family-backed crypto firm World Liberty Financial saw its stablecoin governance token more than double last week. Additionally, the president’s memecoin, Official Trump, rose about 10% during the same period, with Trump controlling 80% of its supply through affiliated companies.

In March, Trump signed an executive order proposing a Strategic Bitcoin Reserve and Digital Asset Stockpile for the US. While initially expected to hold seized crypto assets, advisers suggested alternative ideas like revaluing government gold certificates are under consideration.

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Teens struggle to spot misinformation despite daily social media use

Misinformation online now touches every part of life, from fake products and health advice to political propaganda. Its influence extends beyond beliefs, shaping actions like voting behaviour and vaccination decisions.

Unlike traditional media, online platforms rarely include formal checks or verification, allowing false content to spread freely.

It is especially worrying as teenagers increasingly use social media as a main source of news and search results. Despite their heavy usage, young people often lack the skills needed to spot false information.

In one 2022 Ofcom study, only 11% of 11 to 17-year-olds could consistently identify genuine posts online.

Research involving 11 to 14-year-olds revealed that many wrongly believed misinformation only related to scams or global news, so they didn’t see themselves as regular targets. Rather than fact-check, teens relied on gut feeling or social cues, such as comment sections or the appearance of a post.

These shortcuts make it easier for misinformation to appear trustworthy, especially when many adults also struggle to verify online content.

The study also found that young people thought older adults were more likely to fall for misinformation, while they believed their parents were better than them at spotting false content. Most teens felt it wasn’t their job to challenge false posts, instead placing the responsibility on governments and platforms.

In response, researchers have developed resources for young people, partnering with organisations like Police Scotland and Education Scotland to support digital literacy and online safety in practical ways.

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