Privacy and data protection Archives | Page 235 of 351

Legal aid data breach affects UK applicants

The UK Ministry of Justice has confirmed a serious cyber-attack on its Legal Aid Agency, first detected on 23 April and revealed to be more extensive on 16 May. Investigators found that a wide range of personal details belonging to applicants dating back to 2010 were accessed.

The breach has prompted urgent security reviews and cooperation with the National Cyber Security Centre. Stolen information may include names, addresses, dates of birth, national ID numbers, criminal histories, employment records and financial data such as debts and contributions.

While the total number of affected individuals remains unconfirmed, publicly available figures suggest hundreds of thousands of applications across the last year alone. Victims have been urged to monitor for suspicious communications and to change passwords promptly.

UK Legal aid services have been taken offline as contingency measures are put in place to maintain support for vulnerable users. Jane Harbottle, CEO of the Legal Aid Agency, expressed regret over the incident and reassured applicants that efforts are underway to restore secure access.

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Criminals exploit weak mail security in new fraud surge

Check washing fraud is making a worrying comeback in the US, fuelled by both AI-powered identity theft and lax mail security. Criminals are intercepting posted cheques, erasing original details using chemicals, and rewriting them for higher amounts or different recipients.

The rise in such fraud, often unnoticed until the money is long gone, is prompting experts to warn the public to take immediate preventative steps. Reports show a sharp increase in cheque-related scams, with US financial institutions flagging over 665,000 suspicious cases in 2023 alone.

Organised crime groups are now blending traditional cheque theft with modern techniques, such as AI-generated identities and forged digital images. The fraudsters are also using mobile deposits, phishing emails, and business email compromise to trick individuals and companies into transferring funds.

For added protection, individuals and businesses are advised to invest in fraud monitoring, use cheques with security features, and report any suspicious activity without delay. With losses running into hundreds of millions, the growing threat of cheque washing shows no signs of slowing down.

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Netherlands expands espionage laws to include cyber activities

The Dutch government has adopted new legislation expanding the scope of its espionage laws to include digital espionage and other activities carried out on behalf of foreign states that may harm Dutch national interests. The updated law complements existing provisions that criminalise the disclosure of state secrets by adding penalties for leaking sensitive, but not classified, information and for conducting harmful activities linked to foreign entities.

Under the revised legal framework, penalties for computer-related offenses associated with espionage have been increased. Individuals found guilty of such offenses could face up to eight years in prison, or up to twelve years in particularly severe cases.

Netherlands Justice and Security Minister David van Weel stated that the measures aim to enhance national resilience against foreign threats.

In parallel, the government is moving forward with plans to implement vetting procedures for researchers and students seeking access to sensitive technologies at Dutch academic institutions. This follows growing concern over foreign interest in strategic research, particularly from China, as noted by Dutch intelligence services.

In recent assessments, Dutch authorities have reported both Chinese cyber activities targeting intellectual property and Russian state-linked attempts to disrupt national infrastructure. Incidents include reported efforts to infiltrate institutions based in The Hague, such as the International Criminal Court and the Organisation for the Prohibition of Chemical Weapons.

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Microsoft brings Grok AI to Azure

Microsoft has become one of the first major cloud providers to offer managed access to Grok, the controversial AI model from Elon Musk’s xAI startup.

Now available through the Azure AI Foundry platform, both Grok 3 and Grok 3 mini will be billed by Microsoft and include the same service-level agreements as other Azure-hosted models.

Grok gained attention for its unfiltered and provocative tone, marketed by Musk as a more candid alternative to mainstream AI.

Unlike ChatGPT, it has been known to use vulgar language and provide responses on sensitive topics that other models typically avoid.

However, the AI has stirred criticism, particularly over troubling behaviour such as undressing women in photos and referencing conspiracy theories. Incidents of censorship and offensive content have raised concerns about its deployment on Musk’s platform X.

Instead of replicating that experience, Microsoft is offering a more controlled version of Grok within Azure. These versions include stricter content controls, enhanced data integration, and improved governance tools, distinguishing them from the models directly available through xAI.

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Can AI replace therapists?

With mental health waitlists at record highs and many struggling to access affordable therapy, some are turning to AI chatbots for support.

Kelly, who waited months for NHS therapy, found solace in character.ai bots, describing them as always available, judgment-free companions. ‘It was like a cheerleader,’ she says, noting how bots helped her cope with anxiety and heartbreak.

But despite emotional benefits for some, AI chatbots are not without serious risks. Character.ai is facing a lawsuit from the mother of a 14-year-old who died by suicide after reportedly forming a harmful relationship with an AI character.

Other bots, like one from the National Eating Disorder Association, were shut down after giving dangerous advice.

Even so, demand is high. In April 2024 alone, 426,000 mental health referrals were made in England, and over a million people are still waiting for care. Apps like Wysa, used by 30 NHS services, aim to fill the gap by offering CBT-based self-help tools and crisis support.

Experts warn, however, that chatbots lack context, emotional intuition, and safeguarding. Professor Hamed Haddadi calls them ‘inexperienced therapists’ that may agree too easily or misunderstand users.

Ethicists like Dr Paula Boddington point to bias and cultural gaps in the AI training data. And privacy is a looming concern: ‘You’re not entirely sure how your data is being used,’ says psychologist Ian MacRae.

Still, users like Nicholas, who lives with autism and depression, say AI has helped when no one else was available. ‘It was so empathetic,’ he recalls, describing how Wysa comforted him during a night of crisis.

A Dartmouth study found AI users saw a 51% drop in depressive symptoms, but even its authors stress bots can’t replace human therapists. Most experts agree AI tools may serve as temporary relief or early intervention—but not as long-term substitutes.

As John, another user, puts it: ‘It’s a stopgap. When nothing else is there, you clutch at straws.’

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Lords reject UK AI copyright bill again

The UK government has suffered a second defeat in the House of Lords over its Data (Use and Access) Bill, as peers once again backed a copyright-focused amendment aimed at protecting artists from AI content scraping.

Baroness Kidron, a filmmaker and digital rights advocate, led the charge, accusing ministers of listening to the ‘sweet whisperings of Silicon Valley’ and allowing tech firms to ‘redefine theft’ by exploiting copyrighted material without permission.

Her amendment would force AI companies to disclose their training data sources and obtain consent from rights holders.

The government had previously rejected this amendment, arguing it would lead to ‘piecemeal’ legislation and pre-empt ongoing consultations.

But Kidron’s position was strongly supported across party lines, with peers calling the current AI practices ‘burglary’ and warning of catastrophic damage to the UK’s creative sector.

High-profile artists like Sir Elton John, Paul McCartney, Annie Lennox, and Kate Bush have condemned the government’s stance, with Sir Elton branding ministers ‘losers’ and accusing them of enabling theft.

Peers from Labour, the Lib Dems, the Conservatives, and the crossbenches united to defend UK copyright law, calling the government’s actions a betrayal of the country’s leadership in intellectual property rights.

Labour’s Lord Brennan warned against a ‘double standard’ for AI firms, while Lord Berkeley insisted immediate action was needed to prevent long-term harm.

Technology Minister Baroness Jones countered that no country has resolved the AI-copyright dilemma and warned that the amendment would only create more regulatory confusion.

Nonetheless, peers voted overwhelmingly in favour of Kidron’s proposal—287 to 118—sending the bill back to the Commons with a strengthened demand for transparency and copyright safeguards.

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Coinbase hit by multiple data breach lawsuits

Coinbase faces multiple lawsuits after revealing a data breach involving bribed support agents leaking user information. At least six lawsuits were filed between 15 and 16 May, accusing the exchange of poor security and mishandling the breach.

One lawsuit filed in New York claims Coinbase failed to protect sensitive data of millions, including names, addresses, phone numbers, and partial Social Security numbers.

The complaint says the exchange’s response was slow and inadequate, putting users at risk of identity theft and fraud.

Other lawsuits allege Coinbase did not spend enough on security and demand compensation and stronger protections. One case asks the court to order Coinbase to delete sensitive data and hire third-party auditors.

Coinbase declined to comment on the lawsuits but confirmed it refused a $20 million ransom. It plans to reimburse users who lost crypto to phishing scams related to the breach. The company also fired involved customer support agents.

Following the breach announcement, Coinbase shares fell 7% but rebounded quickly, closing higher on 16 May.

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Elton John threatens legal fight over AI use

Sir Elton John has lashed out at the UK government over plans that could allow AI companies to use copyrighted content without paying artists, calling ministers ‘absolute losers’ and accusing them of ‘thievery on a high scale.’

He warned that younger musicians, without the means to challenge tech giants, would be most at risk if the proposed changes go ahead.

The row centres on a rejected House of Lords amendment to the Data Bill, which would have required AI firms to disclose what material they use.

Despite a strong majority in favour in the Lords, the Commons blocked the move, meaning the bill will keep bouncing between the two chambers until a compromise is reached.

Sir Elton, joined by playwright James Graham, said the government was failing to defend creators and seemed more interested in appeasing powerful tech firms.

More than 400 artists, including Sir Paul McCartney, have signed a letter urging Prime Minister Sir Keir Starmer to strengthen copyright protections instead of allowing AI to mine their work unchecked.

While the government insists no changes will be made unless they benefit creators, critics say the current approach risks sacrificing the UK’s music industry for Silicon Valley’s gain.

Sir Elton has threatened legal action if the plans go ahead, saying, ‘We’ll fight it all the way.’

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US bans nonconsensual explicit deepfakes nationwide

The US is introducing a landmark federal law aimed at curbing the spread of non-consensual explicit deepfake images, following mounting public outrage.

President Donald Trump is expected to sign the Take It Down Act, which will criminalise the sharing of explicit images, whether real or AI-generated, without consent. The law will also require tech platforms to remove such content within 48 hours of notification, instead of leaving the matter to patchy state laws.

The legislation is one of the first at the federal level to directly tackle the misuse of AI-generated content. It builds on earlier laws that protected children but had left adults vulnerable due to inconsistent state regulations.

The bill received rare bipartisan support in Congress and was backed by over 100 organisations, including tech giants like Meta, TikTok and Google. First Lady Melania Trump also supported the act, hosting a teenage victim of deepfake harassment during the president’s address to Congress.

The act was prompted in part by incidents like that of Elliston Berry, a Texas high school student targeted by a classmate who used AI to alter her social media image into a nude photo. Similar cases involving teen girls across the country highlighted the urgency for action.

Tech companies had already started offering tools to remove explicit images, but the lack of consistent enforcement allowed harmful content to persist on less cooperative platforms.

Supporters of the law argue it sends a strong societal message instead of allowing the exploitation to continue unchallenged.

Advocates like Imran Ahmed and Ilana Beller emphasised that while no law is a perfect solution, this one forces platforms to take real responsibility and offers victims some much-needed protection and peace of mind.

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Coinbase hit by breach and SEC probe ahead of S&P 500 entry

Cryptocurrency exchange Coinbase has disclosed a potential financial impact of $180 million to $400 million following a cyberattack that compromised customer data, according to a regulatory filing on Thursday.

The company said it received an email from an unidentified threat actor on Sunday, claiming to possess internal documents and account data for a limited number of customers.

Although hackers gained access to personal information such as names, addresses, and email addresses, Coinbase confirmed that no login credentials or passwords were compromised.

Coinbase stated it would reimburse users who were deceived into transferring funds to the attackers. It also revealed that multiple contractors and support staff outside the US had provided information to the hackers. Those involved have been terminated, the company said.

In parallel, the US Securities and Exchange Commission (SEC) is reportedly investigating whether Coinbase previously misrepresented its verified user figures.

Two sources familiar with the matter told Reuters that the SEC inquiry is ongoing, though it does not focus on know-your-customer (KYC) compliance or Bank Secrecy Act obligations. Coinbase has denied any such investigation into its compliance practices.

The SEC declined to comment. Coinbase’s chief legal officer, Paul Grewal, characterised the probe as a continuation of a past investigation into a user metric the company stopped reporting over two years ago. He said Coinbase is cooperating with the SEC but believes the inquiry should be closed.

The news comes ahead of Coinbase’s upcoming addition to the S&P 500 index, potentially overshadowing what had been viewed as a major milestone for the industry. Shares fell 7.2% following the disclosure.

Coinbase has rejected a $20 million ransom demand from the attackers and is cooperating with law enforcement. It has also offered a $20 million reward for information leading to the identification of the hackers.

The firm is opening a new US-based support hub and taking further measures to strengthen its cybersecurity framework.

The cyberattack adds to broader concerns about digital asset platform vulnerabilities. In 2024, hacks have resulted in over $2.2 billion in stolen funds, according to Chainalysis. Bybit alone reported a $1.5 billion theft in February, the largest on record.

Coinbase is also facing a lawsuit filed in the Southern District of New York, alleging the company failed to protect personal data belonging to millions of current and former customers.

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