Network security Archives | Digital Watch Observatory

FBI warns of fake tokens targeting Tron wallets

The FBI’s New York Field Office has warned that fraudulent tokens impersonating the agency are being airdropped to Tron wallets, with recipients threatened with ‘total block’ of assets unless they submit personal information via phishing sites.

At least 728 wallets were affected, some holding over US$1 million in USDT, when the warning was issued on 19 March.

The scam warns users that their wallets are ‘under investigation’ and instructs them to complete an online anti-money-laundering form. The FBI urged crypto holders to ignore these messages and avoid entering any personal data on linked websites.

Attackers exploit Tron for its fast and low-cost transactions, using bots to distribute tokens widely and generate spoofed addresses.

Impersonation scams have surged dramatically in 2025, with Chainalysis reporting a 1,400% year-over-year increase. Total crypto fraud losses are estimated at US$17 billion, with AI-assisted scams proving far more profitable than traditional schemes.

The FBI previously ran a blockchain sting using Ethereum tokens, resulting in indictments and the seizure of millions in assets.

The bureau encourages anyone who receives the fake FBI tokens to report the incident to the Internet Crime Complaint Centre to help combat ongoing crypto fraud.

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EU digital wallet nears rollout

Interoperability tests for the European Digital Identity Wallet have marked a significant step towards deployment, following a major industry-wide exercise. Systems were tested under real conditions to ensure compatibility across providers.

The initiative forms part of the EU’s plan to provide citizens with a secure digital wallet for identification and online services. The system will allow users to store identity data and access services, including electronic signatures.

Results showed that most test scenarios were successfully completed, confirming that independent systems can work together effectively. The exercise also highlighted areas requiring further refinement ahead of wider implementation.

EU officials and industry leaders said the progress supports the development of a unified digital ecosystem. The wallet is expected to simplify everyday services while strengthening security and trust in digital identity solutions.

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AI agent causes internal data leak at Meta

Meta recently confirmed that an AI agent inadvertently exposed sensitive company and user data to some employees. The leak happened when an engineer followed the AI agent’s forum suggestion, exposing data for about two hours.

Meta stated that no user data was mishandled and emphasised that human errors could cause similar issues.

The incident reflects broader challenges in deploying agentic AI tools within major tech companies. Amazon faced similar issues, with internal AI tools causing outages and operational errors, showing risks of quickly integrating AI into critical workflows.

Experts describe these deployments as experimental, with companies testing AI at scale without fully assessing potential risks.

Security specialists note that AI agents lack the contextual awareness that human engineers accumulate over years of experience. Lacking long-term operational knowledge, AI can make decisions that compromise security, a factor in the Meta breach.

Analysts warn that such errors are likely to recur as AI adoption accelerates.

The episode comes amid growing attention on agentic AI’s potential to disrupt workflows, affect productivity, and introduce new vulnerabilities. Industry observers caution that AI tools must be carefully monitored and accompanied by robust safeguards to prevent future incidents.

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UNESCO promotes safe AI use and gender equality in Caribbean workshop

A regional workshop in Kingston has been organised by UNESCO to explore the relationship between AI, gender equality and online safety, reflecting wider efforts to support inclusive digital governance across the Caribbean.

Discussions examined the impact of technology-facilitated gender-based violence, including harassment, impersonation and image-based abuse, which continue to affect women and girls disproportionately.

Generative AI was presented as both an opportunity and a risk, with concerns linked to bias, deepfakes, misinformation and non-consensual content.

More than 50 participants from government, civil society and youth organisations engaged in practical sessions aimed at strengthening awareness and digital skills. A participatory approach encouraged peer learning and critical thinking, aligning with UNESCO’s ethical AI principles.

‘Technology reflects the hands that build it and the society that feeds it data. If we are not careful, AI will not just mirror our existing inequalities; it will magnify them.‘

The Honourable Olivia Grange, Minister of Culture, Gender, Entertainment and Sport of Jamaica.

‘The pursuit of equality must extend into every space where women live, work, and where they connect and express themselves – including the digital world,‘

For Eric Falt, Regional Director and Representative of UNESCO.

The initiative forms part of broader efforts to ensure that digital transformation supports inclusion rather than reinforcing existing disparities, while equipping stakeholders with tools for safe and responsible AI use.

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New iPhone vulnerability raises concerns over advanced mobile cyber threats

A newly identified cyberattack known as ‘DarkSword’ is raising concerns about the security of iPhone devices, following reports that millions of users could be exposed to rapid data extraction techniques.

Cybersecurity researchers indicate that the attack targets specific iOS versions, exploiting vulnerabilities in the Safari browser and a graphics processing feature known as WebGPU.

Once access is gained, attackers can retrieve sensitive information, including messages, emails and location data, within minutes, while removing traces of the intrusion almost immediately.

Estimates suggest that a significant share of global iPhone users may be affected, with hundreds of millions of devices running vulnerable software versions.

The scale of exposure remains uncertain, particularly as experts continue to assess whether additional versions of iOS may also be impacted.

Researchers have associated the campaign with a threat actor previously identified by Google, with observed activity across multiple regions.

Such a development highlights growing concerns about the evolution of mobile cyber threats, where increasingly sophisticated techniques are being deployed beyond traditional state-level operations.

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TikTok disinformation study raises concerns over AI content and EU regulation

A new study by Science Feedback indicates that TikTok has a higher proportion of misleading content than other major platforms operating in the EU.

The analysis covered France, Poland, Slovakia and Spain, assessing content across multiple thematic areas including health, politics and climate.

Findings suggest that approximately one in four posts on TikTok contained misleading elements, placing the platform ahead of competitors such as Facebook, YouTube and X. Health-related narratives were the most prominent category, reflecting broader patterns observed across digital ecosystems.

Researchers describe disinformation as a persistent feature embedded within platform structures instead of an isolated occurrence.

The study also highlights a growing presence of AI-generated content, particularly in video formats, where synthetic material accounted for a significant share of misleading posts. Despite existing platform policies, most identified content lacked clear labelling.

The regulatory context remains under development.

While the Digital Services Act integrates voluntary commitments from the EU disinformation code, it does not impose mandatory requirements for identifying AI-generated material.

Ongoing debates therefore focus on transparency, accountability and the evolving responsibilities of digital platforms within the European information environment.

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Bitcoin moves closer to quantum resistance with BIP-360

BTQ Technologies has deployed Bitcoin Improvement Proposal BIP-360 on its Bitcoin Quantum Testnet v0.3.0, marking the first live test of the proposal. The upgrade introduces a quantum-resistant transaction model, Pay-to-Merkle-Root, designed to strengthen Bitcoin’s long-term security.

BIP-360 focuses on mitigating a vulnerability linked to Taproot’s key-path spending mechanism, which can expose public keys on-chain. Such exposure may become a risk if future quantum computers are capable of exploiting cryptographic weaknesses using advanced algorithms.

The testnet adds new consensus rules, post-quantum signatures, and full transaction lifecycle testing. Faster one-minute block times and adjusted fee structures have been introduced to accommodate larger and more complex signatures.

Growing global attention on quantum threats adds urgency to the development. US, EU, and Canadian authorities are setting timelines for post-quantum cryptography to protect future system security.

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EU scrutiny intensifies over Broadcom VMware licensing dispute

Broadcom is facing increased regulatory pressure in the EU following a formal antitrust complaint concerning changes to VMware licensing practices.

The complaint highlights growing tensions between large technology providers and European cloud infrastructure firms.

The filing, submitted by Cloud Infrastructure Services Providers in Europe, raises concerns that revised licensing models could significantly alter market dynamics.

European providers argue that the changes may limit flexibility, increase costs, and affect their ability to compete effectively in the cloud services sector.

At the centre of the dispute lies the broader issue of market concentration and control over critical digital infrastructure.

Industry stakeholders suggest that restrictive licensing conditions could reshape access to essential virtualisation technologies, which underpin a wide range of cloud and enterprise services across the EU.

Regulatory attention is expected to focus on whether such practices align with the EU competition rules, particularly regarding fair access and market neutrality.

The case emerges at a time when European policymakers are intensifying oversight of dominant technology firms and seeking to strengthen digital sovereignty across strategic sectors.

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UK drops AI copyright opt-out plan amid growing industry divide

The UK Government has abandoned its previous preference for an AI copyright opt-out model, signalling a shift in policy following strong opposition from creative industries.

Ministers now acknowledge that there is no clear consensus on how AI developers should access copyrighted material.

Concerns from writers, artists and rights holders focused on the use of their work in training AI systems without permission.

Liz Kendall confirmed that extensive consultation exposed significant disagreement, prompting the government to step back from its earlier position that would have allowed the use of copyrighted content unless creators opted out.

A joint report from the Department for Science, Innovation and Technology and the Department for Culture, Media and Sport states that further evidence is required before any legislative change.

Policymakers in the UK will assess how copyright frameworks influence AI development, while also examining international regulation, licensing models and ongoing legal disputes.

Government strategy now centres on balancing innovation with fair compensation.

Officials emphasise that creators must retain control over how their work is used, while AI developers require access to high-quality data to remain competitive. Potential measures include labelling AI-generated content to reduce risks linked to disinformation and deepfakes.

No timeline has been set for reform, reflecting the complexity of aligning economic growth with intellectual property protection.

The debate unfolds alongside broader ambitions outlined by Rachel Reeves, who has identified AI as a central driver of future economic expansion, with the UK aiming to lead adoption across the G7.

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Amazon upgrades Alexa with AI features

Amazon is rolling out an AI upgrade to its Alexa assistant, aiming to make interactions more conversational and responsive. The new version is designed to follow the context and respond more naturally.

The update comes as Amazon seeks to compete with advanced AI chatbots that have gained popularity in recent years. Critics have argued that smart speakers have fallen behind newer AI tools.

Users in the UK are expected to notice more personalised and proactive responses from the upgraded assistant. This will be based on user and customer personal data. The service will be included with Prime subscriptions or offered as a standalone monthly option.

Analysts say the update could help Amazon gather even more user data and improve engagement by picking up on customers’ habits through conversations. However, questions remain about whether the changes will drive revenue or revive interest in smart speakers.

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