Generative AI fuels surge in online fraud risks in 2026

Online scams are expected to surge in 2026, overtaking ransomware as the top cyber-risk, the World Economic Forum warned, driven by the growing use of generative AI.

Executives are increasingly concerned about AI-driven scams that are easier to launch and harder to detect than traditional cybercrime. WEF managing director Jeremy Jurgens said leaders now face the challenge of acting collectively to protect trust and stability in an AI-driven digital environment.

Consumers are also feeling the impact. An Experian report found 68% of people now see identity theft as their main concern, while US Federal Trade Commission data shows consumer fraud losses reached $12.5 billion in 2024, up 25% year on year.

Generative AI is enabling more convincing phishing, voice cloning, and impersonation attempts. The WEF reported that 62% of executives experienced phishing attacks, 37% encountered invoice fraud, and 32% reported identity theft, with vulnerable groups increasingly targeted through synthetic content abuse.

Experts warn that many organisations still lack the skills and resources to defend against evolving threats. Consumer groups advise slowing down, questioning urgent messages, avoiding unsolicited requests for information, and verifying contacts independently to reduce the risk of generative AI-powered scams.

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UK launches software security ambassadors scheme

The UK government has launched the Software Security Ambassadors Scheme to promote stronger software security practices nationwide. The initiative is led by the Department for Science, Innovation and Technology and the National Cyber Security Centre.

In the UK, participating organisations commit to championing the new Software Security Code of Practice within their industries. Signatories agree to lead by example through secure development, procurement and advisory practices, while sharing lessons learned to strengthen national cyber resilience.

The scheme aims to improve transparency and risk management across UK digital supply chains. Software developers are encouraged to embed security throughout the whole lifecycle, while buyers are expected to incorporate security standards into procurement processes.

Officials say the approach supports the UK’s broader economic and security goals by reducing cyber risks and increasing trust in digital technologies. The government believes that better security practices will help UK businesses innovate safely and withstand cyber incidents.

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Microsoft restores Exchange and Teams after Microsoft 365 disruption

The US tech giant, Microsoft, investigated a service disruption affecting Exchange Online, Teams and other Microsoft 365 services after users reported access and performance problems.

An incident that began late on Wednesday affected core communication tools used by enterprises for daily operations.

Engineers initially focused on diagnosing the fault, with Microsoft indicating that a potential third-party networking issue may have interfered with access to Outlook and Teams.

During the disruption, users experienced intermittent connectivity failures, latency and difficulties signing in across parts of the Microsoft 365 ecosystem.

Microsoft later confirmed that service access had been restored, although no detailed breakdown of the outage scope was provided.

The incident underlined the operational risks associated with cloud productivity platforms and the importance of transparency and resilience in enterprise digital infrastructure.

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YouTube’s 2026 strategy places AI at the heart of moderation and monetisation

As announced yesterday, YouTube is expanding its response to synthetic media by introducing experimental likeness detection tools that allow creators to identify videos where their face appears altered or generated by AI.

The system, modelled conceptually on Content ID, scans newly uploaded videos for visual matches linked to enrolled creators, enabling them to review content and pursue privacy or copyright complaints when misuse is detected.

Participation requires identity verification through government-issued identification and a biometric reference video, positioning facial data as both a protective and governance mechanism.

While the platform stresses consent and limited scope, the approach reflects a broader shift towards biometric enforcement as platforms attempt to manage deepfakes, impersonation, and unauthorised synthetic content at scale.

Alongside likeness detection, YouTube’s 2026 strategy places AI at the centre of content moderation, creator monetisation, and audience experience.

AI tools already shape recommendation systems, content labelling, and automated enforcement, while new features aim to give creators greater control over how their image, voice, and output are reused in synthetic formats.

The move highlights growing tensions between creative empowerment and platform authority, as safeguards against AI misuse increasingly rely on surveillance, verification, and centralised decision-making.

As regulators debate digital identity, biometric data, and synthetic media governance, YouTube’s model signals how private platforms may effectively set standards ahead of formal legislation.

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Snapchat settles social media addiction lawsuit as landmark trial proceeds

Snapchat’s parent company has settled a social media addiction lawsuit in California just days before the first major trial examining platform harms was set to begin.

The agreement removes Snapchat from one of the three bellwether cases consolidating thousands of claims, while Meta, TikTok and YouTube remain defendants.

These lawsuits mark a legal shift away from debates over user content and towards scrutiny of platform design choices, including recommendation systems and engagement mechanics.

A US judge has already ruled that such features may be responsible for harm, opening the door to liability that section 230 protections may not cover.

Legal observers compare the proceedings to historic litigation against tobacco and opioid companies, warning of substantial damages and regulatory consequences.

A ruling against the remaining platforms could force changes in how social media products are designed, particularly in relation to minors and mental health risks.

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Why AI systems privilege Western perspectives: ‘The Silicon Gaze’

A new study from the University of Oxford argues that large language models reproduce a distinctly Western hierarchy when asked to evaluate countries, reinforcing long-standing global inequalities through automated judgment.

Analysing more than 20 million English-language responses from ChatGPT’s 4o-mini model, researchers found consistent favouring of wealthy Western nations across subjective comparisons such as intelligence, happiness, creativity, and innovation.

Low-income countries, particularly across Africa, were systematically placed at the bottom of rankings, while Western Europe, the US, and parts of East Asia dominated positive assessments.

According to the study, generative models rely heavily on data availability and dominant narratives, leading to flattened representations that recycle familiar stereotypes instead of reflecting social complexity or cultural diversity.

The researchers describe the phenomenon as the ‘silicon gaze’, a worldview shaped by the priorities of platform owners, developers, and historically uneven training data.

Because large language models are trained on material produced within centuries of structural exclusion, bias emerges not as a malfunction but as an embedded feature of contemporary AI systems.

The findings intensify global debates around AI governance, accountability, and cultural representation, particularly as such systems increasingly influence healthcare, employment screening, education, and public decision-making.

While models are continuously updated, the study underlines the limits of technical mitigation without broader political, regulatory, and epistemic interventions.

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Davos 2026 reveals competing visions for AI

AI has dominated debates at Davos 2026, matching traditional concerns such as geopolitics and global trade while prompting deeper reflection on how the technology is reshaping work, governance, and society.

Political leaders, executives, and researchers agreed that AI development has moved beyond experimentation towards widespread implementation.

Microsoft chief executive Satya Nadella argued that AI should deliver tangible benefits for communities and economies, while warning that adoption will remain uneven due to disparities in infrastructure and investment.

Access to energy networks, telecommunications, and capital was identified as a decisive factor in determining which regions can fully deploy advanced systems.

Other voices at Davos 2026 struck a more cautious tone. AI researcher Yoshua Bengio warned against designing systems that appear too human-like, stressing that people may overestimate machine understanding.

Philosopher Yuval Noah Harari echoed those concerns, arguing that societies lack experience in managing human and AI coexistence and should prepare mechanisms to correct failures.

The debate also centred on labour and global competition.

Anthropic’s Dario Amodei highlighted geopolitical risks and predicted disruption to entry-level white-collar jobs. At the same time, Google DeepMind chief Demis Hassabis forecast new forms of employment alongside calls for shared international safety standards.

Together, the discussions underscored growing recognition that AI governance will shape economic and social outcomes for years ahead.

Diplo is live reporting on all sessions from the World Economic Forum 2026 in Davos.

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UNESCO raises alarm over government use of internet shutdowns

Yesterday, UNESCO expressed growing concern over the expanding use of internet shutdowns by governments seeking to manage political crises, protests, and electoral periods.

Recent data indicate that more than 300 shutdowns have occurred across over 54 countries during the past two years, with 2024 recorded as the most severe year since 2016.

According to UNESCO, restricting online access undermines the universal right to freedom of expression and weakens citizens’ ability to participate in social, cultural, and political life.

Access to information remains essential not only for democratic engagement but also for rights linked to education, assembly, and association, particularly during moments of instability.

Internet disruptions also place significant strain on journalists, media organisations, and public information systems that distribute verified news.

Instead of improving public order, shutdowns fracture information flows and contribute to the spread of unverified or harmful content, increasing confusion and mistrust among affected populations.

UNESCO continues to call on governments to adopt policies that strengthen connectivity and digital access rather than imposing barriers.

The organisation argues that maintaining open and reliable internet access during crises remains central to protecting democratic rights and safeguarding the integrity of information ecosystems.

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UK study tests social media restrictions on children’s mental health

A major UK research project will examine how restricting social media use affects children’s mental health, sleep, and social lives, as governments debate tougher rules for under-16s.

The trial involves around 4,000 pupils from 30 secondary schools in Bradford and represents one of the first large-scale experimental studies of its kind.

Participants aged 12 to 15 will either have their social media use monitored or restricted through a research app limiting access to major platforms to one hour per day and imposing a night-time curfew.

Messaging services such as WhatsApp will remain available instead of being restricted, reflecting their role in family communication.

Researchers from the University of Cambridge and the Bradford Centre for Health Data Science will assess changes in anxiety, depression, sleep patterns, bullying, and time spent with friends and family.

Entire year groups within each school will experience the same conditions to capture social effects across peer networks rather than isolated individuals.

The findings, expected in summer 2027, arrive as UK lawmakers consider proposals for a nationwide ban on social media use by under-16s.

Although independent from government policy debates, the study aims to provide evidence to inform decisions in the UK and other countries weighing similar restrictions.

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New EU cybersecurity package strengthens resilience and ENISA powers

The European Commission has unveiled a broad cybersecurity package that moves the EU beyond certification reform towards systemic resilience across critical digital infrastructure.

Building on plans to expand EU cybersecurity certification beyond products and services, the revised Cybersecurity Act introduces a risk-based framework for securing ICT supply chains, with particular focus on dependencies, foreign interference, and high-risk third-country suppliers.

A central shift concerns supply-chain security as a geopolitical issue. The proposal enables mandatory derisking of mobile telecommunications networks, reinforcing earlier efforts under the 5G security toolbox.

Certification reform continues through a redesigned European Cybersecurity Certification Framework, promising clearer governance, faster scheme development, and voluntary certification that can cover organisational cyber posture alongside technical compliance.

The package also tackles regulatory complexity. Targeted amendments to the NIS2 Directive aim to ease compliance for tens of thousands of companies by clarifying jurisdictional rules, introducing a new ‘small mid-cap’ category, and streamlining incident reporting through a single EU entry point.

Enhanced ransomware data collection and cross-border supervision are intended to reduce fragmentation while strengthening enforcement consistency.

ENISA’s role is further expanded from coordination towards operational support. The agency would issue early threat alerts, assist in ransomware recovery with national authorities and Europol, and develop EU-wide vulnerability management and skills attestation schemes.

Together, the measures signal a shift from fragmented safeguards towards a more integrated model of European cyber sovereignty.

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