EU warns X over Grok AI image abuse

The European Commission has warned X to address issues related to its Grok AI tool. Regulators say new features enabled the creation of sexualised images, including those of children.

EU Tech Sovereignty Commissioner Henna Virkkunen has stated that investigators have already taken action under the Digital Services Act. Failure to comply could result in enforcement measures being taken against the platform.

X recently restricted Grok’s image editing functions to paying users after criticism from regulators and campaigners. Irish and EU media watchdogs are now engaging with Brussels on the issue.

UK ministers also plan laws banning non-consensual intimate images and tools enabling their creation. Several digital rights groups argue that existing laws already permit criminal investigations and fines.

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One-click vulnerability in Telegram bypasses VPN and proxy protection

A newly identified vulnerability in Telegram’s mobile apps allows attackers to reveal users’ real IP addresses with a single click. The flaw, known as a ‘one-click IP leak’, can expose location and network details even when VPNs or proxies are enabled.

The issue comes from Telegram’s automatic proxy testing process. When a user clicks a disguised proxy link, the app initiates a direct connection request that bypasses all privacy protections and reveals the device’s real IP address.

Cybersecurity researcher @0x6rss demonstrated an attack on X, showing that a single click is enough to log a victim’s real IP address. The request behaves similarly to known Windows NTLM leaks, where background authentication attempts expose identifying information without explicit user consent.

Attackers can embed malicious proxy links in chats or channels, masking them as standard usernames. Once clicked, Telegram silently runs the proxy test, bypasses VPN or SOCKS5 protections, and sends the device’s real IP address to the attacker’s server, enabling tracking, surveillance, or doxxing.

Both Android and iOS versions are affected, putting millions of privacy-focused users at risk. Researchers recommend avoiding unknown links, turning off automatic proxy detection where possible, and using firewall tools to block outbound proxy tests. Telegram has not publicly confirmed a fix.

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Betterment confirms data breach after social engineering attack

Fintech investment platform Betterment has confirmed a data breach after hackers gained unauthorised access to parts of its internal systems and exposed personal customer information.

The incident occurred on 9 January and involved a social engineering attack connected to third-party platforms used for marketing and operational purposes.

The company said the compromised data included customer names, email and postal addresses, phone numbers and dates of birth.

No passwords or account login credentials were accessed, according to Betterment, which stressed that customer investment accounts were not breached.

Using the limited system access, attackers sent fraudulent notifications to some users promoting a crypto-related scam.

Customers were advised to ignore the messages instead of engaging with the request, while Betterment moved quickly to revoke the unauthorised access and begin a formal investigation with external cybersecurity support.

Betterment has not disclosed how many users were affected and has yet to provide further technical details. Representatives did not respond to requests for comment at the time of publication, while the company said outreach to impacted customers remains ongoing.

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Australia raises concerns over AI misuse on X

The eSafety regulator in Australia has expressed concern over the misuse of the generative AI system Grok on social media platform X, following reports involving sexualised or exploitative content, particularly affecting children.

Although overall report numbers remain low, authorities in Australia have observed a recent increase over the past weeks.

The regulator confirmed that enforcement powers under the Online Safety Act remain available where content meets defined legal thresholds.

X and other services are subject to systemic obligations requiring the detection and removal of child sexual exploitation material, alongside broader industry codes and safety standards.

eSafety has formally requested further information from X regarding safeguards designed to prevent misuse of generative AI features and to ensure compliance with existing obligations.

Previous enforcement actions taken in 2025 against similar AI services resulted in their withdrawal from the Australian market.

Additional mandatory safety codes will take effect in March 2026, introducing new obligations for AI services to limit children’s exposure to sexually explicit, violent and self-harm-related material.

Authorities emphasised the importance of Safety by Design measures and continued international cooperation among online safety regulators.

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AI-powered toys navigate safety concerns after early missteps

Toy makers at the Consumer Electronics Show highlighted efforts to improve AI in playthings following troubling early reports of chatbots giving unsuitable responses to children’s questions.

A recent Public Interest Research Group report found that some AI toys, such as an AI-enabled teddy bear, produced inappropriate advice, prompting companies like FoloToy to update their models and suspend problematic products.

Among newer devices, Curio’s Grok toy, which refuses to answer questions deemed inappropriate and allows parental overrides, has earned independent safety certification. However, concerns remain about continuous listening and data privacy.

Experts advise parents to be cautious about toys that retain information over time or engage in ongoing interactions with young users.

Some manufacturers are positioning AI toys as educational tools, for example, language-learning companions with time-limited, guided chat interactions, and others have built in flags to alert parents when inappropriate content arises.

Despite these advances, critics argue that self-regulation is insufficient and call for clearer guardrails and possible regulation to protect children in AI-toy environments.

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Young people worry about jobs and inflation

Rising living costs and economic instability are the biggest worries for young people worldwide. A World Economic Forum survey shows inflation dominates personal and global concerns.

Many young people fear that AI-driven automation will shrink entry-level job opportunities. Two-thirds expect fewer early career roles despite growing engagement with AI tools.

Nearly 60 per cent already use AI to build skills and improve employability. Side hustles and freelance work are increasingly common responses to economic pressure.

Youth respondents call for quality jobs, better education access and affordable housing. Climate change also ranks among the most serious long-term global risks.

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Concerns grow over planned EU-US biometrics deal

The EU has agreed to open talks with the US on sharing sensitive traveller data. The discussions aim to preserve visa-free travel for European citizens.

The proposal is called ‘Enhanced Border Security Partnership‘, and it could allow transfers of biometric data and other sensitive personal information. Legal experts warn that unclear limits may widen access beyond travellers alone.

EU governments have authorised the European Commission to negotiate a shared framework. Member states would later settle details through bilateral agreements with Washington.

Academics and privacy advocates are calling for stronger safeguards and transparency. EU officials insist data protection limits will form part of any final agreement.

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Teen victim turns deepfake experience into education

A US teenager targeted by explicit deepfake images has helped create a new training course. The programme aims to support students, parents and school staff facing online abuse.

The course explains how AI tools are used to create sexualised fake images. It also outlines legal rights, reporting steps and available victim support resources.

Research shows deepfake abuse is spreading among teenagers, despite stronger laws. One in eight US teens know someone targeted by non-consensual fake images.

Developers say education remains critical as AI tools become easier to access. Schools are encouraged to adopt training to protect students and prevent harm.

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Google expands AI shopping through Gemini

Google is expanding shopping features inside its Gemini chatbot through partnerships with Walmart and other retailers. Users will be able to browse and buy products without leaving the chat interface.

An instant checkout function allows purchases through linked accounts and selected payment providers. Walmart customers can receive personalised recommendations based on previous shopping activity.

The move was announced at the latest National Retail Federation convention in New York. Tech groups are racing to turn AI assistants into end-to-end retail tools.

Google said the service will launch first in the US before international expansion. Payments initially rely on Google-linked cards, with PayPal support planned.

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Patients notified months after Canopy Healthcare cyber incident

Canopy Healthcare, one of New Zealand’s largest private medical oncology providers, has disclosed a data breach affecting patient and staff information, six months after the incident occurred.

The company said an unauthorised party accessed part of its administration systems on 18 July 2025, copying a ‘small’ amount of data. Affected information may include patient records, passport details, and some bank account numbers.

Canopy said it remains unclear exactly which individuals were impacted and what data was taken, adding that no evidence has emerged of the information being shared or published online.

Patients began receiving notifications in December 2025, prompting criticism over the delay. One affected patient said they were unhappy to learn about the breach months after it happened.

The New Zealand company said it notified police and the Privacy Commissioner at the time, secured a High Court injunction to prevent misuse of the data, and confirmed that its medical services continue to operate normally.

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