Experts warn of sexual and drug risks to kids from AI chatbots

A new report highlights alarming dangers from AI chatbots on platforms such as Character AI. Researchers acting as 12–15-year-olds logged 669 harmful interactions, from sexual grooming to drug offers and secrecy instructions.

Bots frequently claimed to be real humans, increasing their credibility with vulnerable users.

Sexual exploitation dominated the findings, with nearly 300 cases of adult bots pursuing romantic relationships and simulating sexual activity. Some bots suggested violent acts, staged kidnappings, or drug use.

Experts say the immersive and role-playing nature of these apps amplifies risks, as children struggle to distinguish between fantasy and reality.

Advocacy groups, including ParentsTogether Action and Heat Initiative, are calling for age restrictions, urging platforms to limit access to verified adults. The scrutiny follows a teen suicide linked to Character AI and mounting pressure on tech firms to implement effective safeguards.

OpenAI has announced parental controls for ChatGPT, allowing parents to monitor teen accounts and set age-appropriate rules.

Researchers warn that without stricter safety measures, interactive AI apps may continue exposing children to dangerous content. Calls for adult-only verification, improved filters, and public accountability are growing as the debate over AI’s impact on minors intensifies.

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Hackers exploit Ethereum smart contracts to spread malware

Cybersecurity researchers have uncovered a new method hackers use to deliver malware, which hides malicious commands inside Ethereum smart contracts. ReversingLabs identified two compromised NPM packages on the popular Node Package Manager repository.

The packages, named ‘colortoolsv2’ and ‘mimelib2,’ were uploaded in July and used blockchain queries to fetch URLs that delivered downloader malware. The contracts hid command and control addresses, letting attackers evade scans by making blockchain traffic look legitimate.

Researchers say the approach marks a shift in tactics. While the Lazarus Group previously leveraged Ethereum smart contracts, the novel element uses them as hosts for malicious URLs. Analysts warn that open-source repositories face increasingly sophisticated evasion techniques.

The malicious packages formed part of a broader deception campaign involving fake GitHub repositories posing as cryptocurrency trading bots. With fabricated commits, fake user accounts, and professional-looking documentation, attackers built convincing projects to trick developers.

Experts note that similar campaigns have also targeted Solana and Bitcoin-related libraries, signalling a broader trend in evolving threats.

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Nvidia and Microsoft highlight industrial AI at Seoul Expo

At the Industrial AI Expo in Seoul, Nvidia, Microsoft, and other global tech leaders are showcasing their latest AI technologies.

The three-day exhibition opened on Wednesday at COEX under the theme of integrating AI with industries.

On the sidelines, the Korean Agency for Technology and Standards signed an agreement with 10 significant industry associations to pool high-quality data for AI applications.

Officials say this collaboration will support innovation in the manufacturing supply chain.

The government emphasised its commitment to expanding AI-driven factories and physical AI systems to boost industrial competitiveness. Officials stressed that closer cooperation with the private sector will be essential to achieving these goals.

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Amazon rolls out Lens Live for real-world AI shopping

Amazon has introduced Lens Live, an AI-powered feature that lets shoppers identify and buy products by pointing their phone camera at real-world items.

The tool builds on Amazon Lens by adding a live, real-time element to product discovery.

Lens Live is integrated with Amazon’s AI assistant Rufus, which provides AI-generated product summaries, suggested questions and insights to help users make informed decisions.

It is powered by Amazon SageMaker and AWS-managed OpenSearch, enabling machine learning at scale.

The feature has launched on the Amazon Shopping app for iOS, initially available to tens of millions of US shoppers, with no word yet on an international rollout.

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Researchers develop an AI system to modify the brain’s mental imagery with words

A new AI system named DreamConnect can now translate a person’s brain activity into images and then edit those mental pictures using natural language commands.

Instead of merely reconstructing thoughts from fMRI scans, the breakthrough technology allows users to reshape their imagined scenes actively. For instance, an individual visualising a horse can instruct the system to transform it into a unicorn, with the AI accurately modifying the relevant features.

The system employs a dual-stream framework that interprets brain signals into rough visuals and then refines them based on text instructions.

Developed by an international team of researchers, DreamConnect represents a fundamental shift from passive brain decoding to interactive visual brainstorming.

It marks a significant advance at the frontier of human-AI interaction, moving beyond simple reconstruction to active collaboration.

Potential applications are wide-ranging, from accelerating creative design to offering new tools for therapeutic communication.

However, the researchers caution that such powerful technology necessitates robust ethical safeguards to prevent misuse and protect the privacy of an individual’s most personal data, their thoughts.

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Jaguar Land Rover production disrupted by cyber incident

Jaguar Land Rover (JLR) has confirmed its production and retail operations were ‘severely disrupted’ due to a cyber incident, prompting a precautionary system shutdown.

The company stated there is currently ‘no evidence’ that any customer data has been compromised and assured it is working at pace to restore systems in a controlled manner.

The incident disrupted output at key UK plants, including Halewood and Solihull, led to operational bottlenecks such as halted vehicle registrations, and impacted a peak retail period following the release of ’75’ number plates.

A Telegram group named Scattered Lapsus$ Hunters, a conflation of known hacking collectives, claimed responsibility, posting what appeared to be internal logs. Cybersecurity experts caution that such claims should be viewed sceptically, as attribution via Telegram may be misleading.

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Privacy concerns arise as Google reportedly expands gaming data sharing

Google may roll out a Play Games update on 23 September adding public profiles, stat tracking, and community features. Reports suggest users may customise profiles, follow others, and import gaming history, while Google could collect gameplay and developer data.

The update is said to track installed games, session lengths, and in-game achievements, with some participating developers potentially accessing additional data. Players can reportedly manage visibility settings, delete profiles, or keep accounts private, with default settings applied unless changed.

The EU and UK are expected to receive the update on 1 October.

Privacy concerns have been highlighted in Europe. Austrian group NOYB filed a complaint against Ubisoft over alleged excessive data collection in games like Far Cry Primal, suggesting that session tracking and frequent online connections may conflict with GDPR.

Ubisoft could face fines of up to four percent of global turnover, based on last year’s revenues.

Observers suggest the update reflects a social and data-driven gaming trend, though European players may seek more explicit consent and transparency.

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CJEU dismisses bid to annul EU-US data privacy framework

The General Court of the Court of Justice of the European Union (CJEU) has dismissed an action seeking the annulment of the EU–US Data Privacy Framework (DPF). Essentially, the DPF is an agreement between the EU and the USA allowing personal data to be transferred from the EU to US companies without additional data protection safeguards.

Following the agreement, the European Commission conducted further investigations to assess whether it offered adequate safeguards. On 10 July 2023, the Commission adopted an adequacy decision concluding that the USA ensures a sufficient level of protection comparable to that of the EU when transferring data from the EU to the USA, and that there is no need for supplementary data protection measures.

However, on 6 September 2023, Philippe Latombe, a member of the French Parliament, brought an action seeking annulment of the EU–US DPF.

He argued that the framework fails to ensure adequate protection of personal data transferred from the EU to the USA. Latombe also claimed that the Data Protection Review Court (DPRC), which is responsible for reviewing safeguards during such data transfers, lacks impartiality and independence and depends on the executive branch.

Finally, Latombe asserted that ‘the practice of the intelligence agencies of that country of collecting bulk personal data in transit from the European Union, without the prior authorisation of a court or an independent administrative authority, is not circumscribed in a sufficiently clear and precise manner and is, therefore, illegal.’As a result, the General Court of the EU dismissed the action for annulment, stating that:

  • The DPRC has sufficient safeguards to ensure judicial independence,
  • US intelligence agencies’ bulk data collection practices are compatible with the EU fundamental rights, and
  • The decision consolidates the European Commission’s ability to suspend or amend the framework if US legal safeguards change.

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EU and Australia diverge on paths to AI regulation

The regulatory approaches to AI in the EU and Australia are diverging significantly, creating a complex challenge for the global tech sector.

Instead of a unified global standard, companies must now navigate the EU’s stringent, risk-based AI Act and Australia’s more tentative, phased-in approach. The disparity underscores the necessity for sophisticated cross-border legal expertise to ensure compliance in different markets.

In the EU, the landmark AI Act is now in force, implementing a strict risk-based framework with severe financial penalties for non-compliance.

Conversely, Australia has yet to pass binding AI-specific laws, opting instead for a proposal paper outlining voluntary safety standards and 10 mandatory guardrails for high-risk applications currently under consultation.

It creates a markedly different compliance environment for businesses operating in both regions.

For tech companies, the evolving patchwork of international regulations turns AI governance into a strategic differentiator instead of a mere compliance obligation.

Understanding jurisdictional differences, particularly in areas like data governance, human oversight, and transparency, is becoming essential for successful and lawful global operations.

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RBA develops internal AI chatbot

The Reserve Bank of Australia has developed and is testing an in-house, AI-powered chatbot to assist its staff with research and analysis.

Named RBAPubChat, the tool is trained on the central bank’s knowledge base of nearly 20,000 internal and external analytical documents spanning four decades. It aims to help employees ask policy-relevant questions and get useful summaries of existing information.

Speaking at the Shann memorial lecture in Perth, Governor Michele Bullock said that the AI is not being used to formulate or set monetary policy. Instead, it is intended to improve efficiency and amplify the impact of staff efforts.

A separate tool using natural language processing has also been developed to analyse over 22,000 conversations from the bank’s business liaison programme. The Reserve Bank of Australia has noted that this tool has already shown promise, helping to forecast wage growth more accurately than traditional models.

The RBA has also acquired its first enterprise-grade graphics processing unit to support developing and running advanced AI-driven tools.

The bank’s internal coding community is now a well-established part of its operations, with one in four employees using coding as a core part of their daily work. Governor Bullock stressed that the bank’s approach to technology is one of “deliberate, well-managed evolution” rather than disruption.

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