During a freelancer meetup at Café Oz in Paris on 3 December, Scott Horlacher, a software engineer, found himself caught in a crypto scam. While discussing with two individuals who claimed to represent a new crypto exchange called Lainchain, Horlacher grew suspicious. The platform’s design and its request for users to input wallet seed phrases instead of standard security measures made Horlacher realise he was dealing with a scam.
After confronting the duo, they swiftly left the event. Horlacher, along with others, began to warn fellow attendees. A subsequent investigation by AMLBot, a blockchain forensics firm, revealed that Lainchain was a sophisticated phishing scam designed to steal personal and wallet information from users. The scam relied on fake identities and social engineering tactics to deceive victims.
Lainchain’s website appeared professional but was full of red flags, including the manipulation of wallet access and demands for seed phrases. The platform’s hosts were found to be connected to other fraudulent websites, and investigations showed their use of stolen identities to create false legitimacy. The scammers also exploited Telegram and other social media platforms to lure victims.
This case serves as a reminder of the growing threat of phishing scams in the crypto space. Users are urged to be cautious of any platform requesting private keys or seed phrases and to verify the legitimacy of any crypto-related website or service before engaging with it.
It has been a busy week as the Internet Governance Forum (IGF) 2024 has been at the centre of Diplo’s attention and that of the entire digital governance realm, addressing the most pressing digital issues of our time: the rapid evolution of AI, the digital divide, and the delicate balance of governance framework processes revolutionising the world. On 15 – 19 December, Diplo was closely involved in IGF 2024, this time in Riyadh, Saudi Arabia, reporting and contributing its knowledge to shape a human-centred digital future.
The forum brought together experts, policymakers, and stakeholders from around the globe, and discussions highlighted three dominant themes: AI governance, bridging the digital divide, and enhancing cybersecurity, underscoring the need for inclusive solutions and forward-thinking strategies.
AI governance
AI took centre stage, as expected, with debates on governance, ethics, and its societal impact. Discussions explored a multifaceted approach, combining international regulatory frameworks, voluntary industry commitments, and bottom-up governance models sensitive to local contexts. The Council of Europe’s Framework Convention on AI and the G7 Hiroshima AI Process were spotlighted as global initiatives striving to balance innovation and the protection of human rights.
The potential of AI to deepen inequalities was another focal point, with calls to address AI divides between developed and developing nations. Discussions stressed the importance of building local AI ecosystems, promoting capacity development in the Global South, and ensuring equitable access to AI infrastructure. As concerns about AI transparency and accountability grew, frameworks like the ethical principles of the Digital Cooperation Organisation (DCO) offered pathways to mitigate AI’s societal risks.
Diplo’s contribution to IGF 2024
Dr Jovan Kurbalija, Director of Diplo, approached the IGF in Riyadh with a historical perspective on AI’s roots in the Islamic Golden Age. He underscored the contribution of the Islamic mathematicians and the Islamic culture, which is at the foundation of the digital world.
In the ‘Intelligent machines and society: An open-ended conversation’ session led by Diplo experts, attendees had the opportunity to explore AI’s profound philosophical, ethical, and practical implications, focusing on its impact on human identity, agency, and communication. Kurbalija introduced the concept of the ‘right to human imperfection’, urging the preservation of human flaws and agency amid AI-driven optimisation.
Another leading expert and Director of Knowledge at Diplo, Sorina Teleanu, warned against the anthropomorphisation of AI and highlighted the risks surrounding brain data processing and questions of AI personhood, particularly with the emergence of artificial general intelligence (AGI).
Diplo ‘Unpacking the Global Digital Compact’
Sorina’s recent publication, Unpacking the Global Digital Compact: Actors, Issues and Processes, presented at the IGF, provides a detailed account of the GDC negotiations over an 18-month process, tracking and analysing changes across different versions of GDC drafts. The publication presents a unique interplay between zooming in on specific provisions, sometimes on the edge of linguistic pedantry, and zooming out to provide a broader perspective on digital governance and cooperation. The publication also places the GDC in the broader context of global digital governance and cooperation mechanisms. It offers a set of questions to reflect on as stakeholders explore the interplay between the processes, implementation, and follow-up of the GDC, WSIS, and Agenda 2030.
The panel also addressed AI governance, with Kurbalija advocating for decentralised development to prevent power centralisation, while Henri-Jean Pollet from ISPA Belgium stressed open-source models to ensure reliability. The evolving human-AI dynamic was discussed, including changes in communication and the need for AI ethics education, as raised by Mohammad Abdul Haque Anu. Kurbalija underscored Diplo’s focus on AI tools that augment human knowledge without replacing decision-making, ending the session with a call for continued exploration of the role of AI’ in shaping the future of humanity.
Digital divides: meaningful connectivity and inclusion
The persistent digital divide remained a complex challenge, with one-third of the global population still offline. IGF discussions moved beyond simple access, championing the concept of ‘meaningful connectivity’, which ensures a safe, productive, and enriching online experience. Targeted investments in rural infrastructure, unlicensed spectrum use, and satellite technology like low Earth orbit (LEO) satellites were proposed as solutions to connect underserved communities.
Gender disparities also took the spotlight. Statistics revealed stark inequalities, with women representing just 10% of executive roles in tech. Speakers called for mentorship programmes, cultural sensitivity, and capacity development to increase women’s participation in digital spaces. Examples like India’s Unified Payments Interface and Brazil’s PIX system showcased how the digital public infrastructure (DPI) can bridge economic gaps, provided they include robust consumer protections and digital literacy programmes.
Cybersecurity: resilience in a complex landscape
Cybersecurity sessions underscored the growing sophistication of cyber threats and the need for resilient digital infrastructure. Discussions called for universal cybersecurity standards flexible enough to adapt to diverse local contexts, while AI was recognised as both a solution and a risk for cybersecurity. AI enhances threat detection and automates responses, yet its vulnerabilities—like adversarial attacks and data poisoning—pose significant challenges.
Developing countries’ struggles to build cyber resilience were a recurring concern. Panellists emphasised capacity development, existing framework implementation, and tailored strategies. Cyber diplomacy emerged as a crucial tool, particularly in regions like Africa and the Middle East, where greater participation in global negotiations is needed to shape cyber norms and ensure equitable protections.
Content governance and environmental sustainability
The complexities of content moderation in diverse cultural contexts raised critical questions. While AI offers potential solutions for content moderation, its ethical implications and biases remain unresolved. Disinformation was another urgent issue, with experts advocating for digital literacy, fact-checking initiatives, and multistakeholder collaborations to preserve democratic integrity.
Sustainability intertwined with digital policy discussions, as the environmental impact of AI, e-waste, and data infrastructure came into focus. The digital sector’s 4% contribution to global emissions sparked calls for sustainable IT procurement, circular economy strategies, and greener AI standards. Harnessing AI to achieve sustainable development goals (SDGs) was also discussed, with its potential to accelerate progress through real-time data analysis and climate prediction.
Looking ahead: local realities and global cooperation
IGF expertise offered some advice for the future with discussions that stressed the importance of multistakeholder cooperation in translating global frameworks like the WSIS+20 and the Global Digital Compact into actionable local policies. In Riyadh, IGF 2024 reinforced that tackling digital challenges—from AI ethics to digital divides—requires a nuanced, multifaceted, holistic, and inclusive approach. The forum served as a sounding board for innovative ideas and a call to action: to build an equitable, sustainable, secure digital future for all.
Jovan Kurbalija, Director of Diplo, stressed the importance of understanding fundamental AI concepts to facilitate deeper conversations beyond the usual concerns about bias and ethics.
In other news..
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Norway has been selected by the UN to host the 2025 Internet Governance Forum (IGF), marking a significant milestone as the largest UN meeting ever held in the country.
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Elon Musk and his company SpaceX are facing multiple federal investigations into their compliance with security protocols designed to protect national secrets.
The forum, under the theme ‘Building our multistakeholder digital future’, will explore four key areas: harnessing innovation while managing risks, enhancing digital contributions to peace and development, advancing human rights…
Experts from government, international bodies, and the private sector highlighted social media platforms as primary sources of rapidly spreading misinformation…
The session included interactive exercises and highlighted the necessity of a multistakeholder approach to address global disparities in AI technology distribution…
UN leaders at IGF 2024 explored digital transformation, showcasing refugee-focused apps, child data rights frameworks, and blockchain security systems. Panellists stressed collaboration, inclusion, and ethical technology use for sustainable progress.
The session focused on the potential of open-source large language models (LLMs) to democratise access to AI, particularly in fostering innovation and empowering smaller economies and the Global South.
The discussion highlighted the importance of baseline cybersecurity measures, such as asset inventory and vulnerability management, and emphasised employee training and awareness.
Panelists from diverse sectors and regions discussed the significant challenges of misinformation, disinformation, and emerging technologies such as AI and deepfakes, which threaten democratic processes.
US authorities are weighing a potential ban on TP-Link Technology Co., a Chinese router manufacturer, over national security concerns, following reports linking its home internet routers to cyberattacks. According to the Wall Street Journal, the US government is investigating whether TP-Link routers could be used in cyber operations targeting the US, citing concerns raised by lawmakers and intelligence agencies.
In August, two US lawmakers urged the Biden administration to examine TP-Link and its affiliates for possible links to cyberattacks, highlighting fears that the company’s routers could be exploited in future cyber operations. The Commerce, Defence, and Justice departments have launched separate investigations into the company, with reports indicating that a ban on the sale of TP-Link routers in the US could come as early as next year. As part of the investigations, the Commerce Department has reportedly subpoenaed the company.
TP-Link has been under scrutiny since the US Cybersecurity and Infrastructure Agency (CISA) flagged vulnerabilities in the company’s routers, that could potentially allow remote code execution. This comes amid heightened concerns that Chinese-made routers could be used by Beijing to infiltrate and spy on American networks. The US government, along with its allies and Microsoft, has also uncovered a Chinese government-linked hacking campaign, Volt Typhoon, which targeted critical US infrastructure by taking control of private routers.
The Commerce, Defence, and Justice departments, as well as TP-Link, did not immediately respond to requests for comment.
Krispy Kreme has reported a cybersecurity incident that disrupted online ordering systems across the United States. The doughnut chain discovered the unauthorised activity on 29 November and immediately launched an investigation with external cybersecurity experts.
While the company’s stores remain open for in-person orders, it warned that revenue losses from digital sales could materially impact its financial results. Shares of Krispy Kreme fell by around 2% in premarket trading following the announcement.
The company said it is actively working to mitigate the effects of the incident while maintaining operations at its global locations.
Visa and ADGM Academy collaborate to advance innovation and talent development within the UAE’s financial sector. The partnership will focus on joint research and development in key areas such as cybersecurity, AI, and fintech, fostering innovation within the UAE’s financial community.
Also, Visa will offer certification programs through Visa University at ADGM Academy to upskill professionals, support Emiratization efforts, and prepare the workforce for the challenges of a digital economy. That collaboration aligns with national strategies like ‘We the UAE 2031’ and the UAE Central Bank’s Financial Infrastructure Transformation Program, contributing to the country’s economic diversification and digital transformation goals.
The partnership also exemplifies a successful public-private collaboration to strengthen Abu Dhabi’s position as a leading financial hub. By combining Visa’s expertise in digital payments and fintech with ADGM Academy’s world-class training and research capabilities, both entities seek to drive sustainable growth and innovation in the UAE’s financial sector.
That alliance is vital in developing a future-ready workforce and supporting the UAE’s broader vision of a knowledge-based, digitally empowered economy.
A US federal appeals court has upheld a law requiring TikTok’s Chinese parent company, ByteDance, to sell its US operations by 19 January or face a nationwide ban. The ruling marks a significant win for the Justice Department, citing national security concerns over ByteDance’s access to Americans’ data and its potential to influence public discourse. TikTok plans to appeal to the Supreme Court, hoping to block the divestment order.
The decision reflects bipartisan efforts to counter perceived threats from China, with Attorney General Merrick Garland calling it a vital step in preventing the Chinese government from exploiting TikTok. Critics, including the ACLU, argue that banning the app infringes on First Amendment rights, as 170 million Americans rely on TikTok for creative and social expression. The Chinese Embassy denounced the ruling, warning it could damage US-China relations.
Unless overturned or extended by President Biden, the law could also set a precedent for restricting other foreign-owned apps. Meanwhile, TikTok’s rivals, such as Meta and Google, have seen gains in the wake of the decision, as advertisers prepare for potential shifts in the social media landscape.
FCC Chairwoman Jessica Rosenworcel has proposed requiring US communications providers to certify annually that they have plans to defend against cyberattacks. The move comes amid growing concerns over espionage by ‘Salt Typhoon,’ a hacking group allegedly linked to Beijing that has infiltrated several American telecom companies to steal call data.
Rosenworcel highlighted the need for a modern framework to secure networks as US intelligence agencies assess the impact of Salt Typhoon’s widespread attack. A senior US official confirmed the hackers had stolen metadata from numerous Americans, breaching at least eight telecom firms.
The FCC proposal, which Rosenworcel has circulated to other commissioners, would take effect immediately if approved. The announcement follows a classified Senate briefing on the breach, but industry giants like Verizon, AT&T, and T-Mobile have yet to comment.
With organisations facing an average of 1,300 cyberattacks per week, Axiado is stepping up with a novel defence: a specialised security chip designed to protect digital infrastructure. Founded in 2017, the Silicon Valley-based startup recently secured $60M in Series C funding led by Maverick Silicon, with participation from Samsung Catalyst Fund and other investors. This brings Axiado’s total funding to $140M.
Axiado’s chip defends against boot-level and runtime security threats, ensuring the integrity of devices from data centres to 5G base stations. It uses root-of-trust technology to prevent hardware tampering and leverages AI-powered analytics to detect malicious data patterns. The company’s chip is positioned as a complement to existing software-based cybersecurity measures, acting as a last line of defence against sophisticated attacks.
The new funds will support Axiado’s go-to-market efforts and help transition its products into mass production by 2025. CEO Gopi Sirineni highlights the growing need for hardware-based security solutions, particularly as the stakes rise in the fight against cybercrime. With partnerships like the one with Jabil to develop server cybersecurity solutions, Axiado is set to expand its reach while competing with industry heavyweights and open-source projects such as Google’s OpenTitan.
A senior United States cybersecurity official has urged Americans to embrace encryption to safeguard their communications, citing ongoing efforts to expel alleged Chinese hackers from US telecom networks. Jeff Greene, Executive Assistant Director for Cybersecurity at the Cybersecurity and Infrastructure Security Agency (CISA), emphasised the importance of avoiding plaintext communications and recommending encrypted apps like Signal and WhatsApp.
US authorities have accused hackers from China of infiltrating telecommunications companies, such as T-Mobile, to access sensitive data, including call records and intercepted audio, predominantly from Washington, DC. Beijing has denied the allegations, calling them disinformation. Greene acknowledged that removing the hackers entirely from the networks could take an unpredictable amount of time, further underscoring the need for encryption to ensure secure communications.
The advice marks a notable shift from previous US government positions that questioned strong encryption’s impact on public safety. As concerns over foreign cyber intrusions grow, Greene’s remarks highlight encryption as a critical tool for Americans facing prolonged cybersecurity threats.
Hostile cyber activity targeting the UK has surged, with incidents increasing by 16% in 2024 compared to the previous year. The National Cyber Security Centre (NCSC) reported handling 430 incidents, up from 371 in 2023. Of these, 347 involved data exfiltration, while 20 were linked to ransomware, underscoring the growing risks.
Richard Horne from the NCSC revealed that adversaries are exploiting society’s reliance on technology to maximise disruption. The centre issued 542 notifications to affected organisations, more than doubling the number of alerts from the previous year. Critical infrastructure sectors such as energy, transport, and health remain particularly vulnerable to ransomware attacks.
The annual review from the NCSC emphasised the evolving nature of threats, warning of the potential for AI to enhance cyberattack complexity. Officials also noted that the risks posed by state actors and cybercriminals remain underestimated. Horne urged against complacency, highlighting the severity of both immediate and long-term dangers.
Efforts to counter these threats are intensifying, but experts stress the importance of strengthening defences and maintaining vigilance as the cyber landscape becomes increasingly hostile.
