Microsoft Wants Congress to Pass Law to 'Combat Deepfake Fraud'

Microsoft Corp. is calling on Congress to pass a comprehensive law to crack down on images and audio created with artificial intelligence — known as deepfakes — that aim to interfere in elections or maliciously target individuals. Noting that the tech sector and nonprofit groups have taken steps to address the problem, Microsoft President Brad Smith said, “It has become apparent that our laws will also need to evolve to combat deepfake fraud.” He urged lawmakers to pass a “deepfake fraud statute to prevent cybercriminals from using this technology to steal from everyday Americans.”

Meta Agrees to Settle Texas Face-Recognition Lawsuit for $1.4 Billion

Meta Platforms has agreed to pay $1.4 billion to Texas to resolve the state’s lawsuit accusing the Facebook parent of illegally using facial-recognition technology to collect biometric data of millions of Texans without their consent. The terms of the settlement mark the largest accord ever by any single state, according to the lawyers for Texas, whose legal team included the plaintiffs firm Keller Postman.

Meta's Oversight Board Faults Rules on Sexually Explicit AI-Generated Images

Meta's Oversight Board said the company's rules were "not sufficiently clear" in barring sexually explicit AI-generated depictions of real people and called for changes to stop such imagery from circulating on its platforms. The board, which is funded by the social media giant but operates independently, issued its ruling after reviewing two pornographic fakes of famous women created using artificial intelligence and posted on Meta's Facebook and Instagram.

U.S. Indicts North Korean Man for Ransomware Attacks on Hospitals, NASA

A North Korean man is accused of using ransomware to attack computer systems at American hospitals, generating money that allegedly paid for a second cyber campaign to hack NASA and U.S. military bases, Justice Department officials announced. An indictment unsealed in Kansas describes a long-running computer crime wave by Rim Jong Hyok, who allegedly worked for North Korea’s military intelligence agency, the Reconnaissance General Bureau.

Congressional Committee Seeks Testimony from CrowdStrike CEO

A Congressional committee called on the chief executive of CrowdStrike to testify at a hearing about its role in a tech outage that roiled the global economy, in one of the first attempts to hold the cybersecurity company responsible. CrowdStrike sent a faulty security update to its customers, resulting in millions of Microsoft Windows devices shutting down and disruptions to airlines, hospitals, logistics companies and others.

Meta Removes 63,000 Accounts in Nigeria Linked to Sex Extortion Scams

Meta Platforms it had removed about 63,000 accounts in Nigeria that attempted to engage in financial sexual extortion scams mostly aimed at adult men in the United States. Nigerian online fraudsters, known as "Yahoo boys," are notorious for scams that range from passing themselves off as people in financial need or Nigerian princes offering an outstanding return on an investment.

Senate Passes Bill Allowing Victims to Suer Over Deepfake Porn Images

The U.S. Senate unanimously passed a bill designed to hold accountable those who make or share deepfake porn. The Disrupt Explicit Forged Images and Non-Consensual Edits Act (DEFIANCE Act) would allow victims to sue those who create, share or possess AI-generated sexual images or videos using their likeness. The issue took root in the public consciousness after the infamous Taylor Swift deepfake that circulated among online lowlifes early this year.

DOJ Inspector General Urges Better Communication About Foreign Influence

A 53-page report, published by Justice Department Inspector General Michael E. Horowitz, affirmed that U.S. law enforcement agencies need to communicate with tech firms about foreign influence operations, such as Russia’s campaign to interfere in the 2016 presidential election. But it warned that officials need to be more systematic and careful about the nature of those communications to ensure they don’t cross the line into government censorship.

Spanish Antitrust Officials Launch Investigation Over Apple's App Store

Spanish antitrust officials launched an investigation into Apple, saying the iPhone maker might be imposing unfair conditions on developers who rely on its App Store to distribute their applications. The country’s National Markets and Competition Commission, known as CNMC, said it is probing Apple’s treatment of developers to ascertain whether the tech giant is engaging in anti-competitive practices in breach of Spanish and European Union legislation.

Senate to Vote on Two Bills Supported by Children's Online Safety Advocates

Senate Majority Leader Chuck Schumer (D-N.Y.) will bring two bipartisan bills aimed at boosting online safety and privacy for kids to a vote after mounting pressure from advocates, Schumer’s office said. Children’s online safety advocates, including teens and parents of children who died after facing online harms, have been pushing the Senate to act on the bills for years — especially Kids Online Safety Act (KOSA), which has more than 60 co-sponsors in the Senate, giving it enough support to pass even with filibuster rules in place.

Under Harris, AI Companies Might Remain Mostly Free of Regulation

Over the past three years, Vice President Kamala Harris has taken a leading role inside the White House on artificial intelligence as the technology is taking off. Now, as the Democratic Party’s presumptive presidential nominee, a win for Ms. Harris could mean a continued relatively smooth runway for AI companies, which have enjoyed little U.S. regulation and the chance to shape White House and Congressional views on the technology.

Oracle Agrees to Settle Privacy Lawsuit for $115 Million

Oracle agreed to pay $115 million to settle a lawsuit accusing the database software and cloud computing company of invading people's privacy by collecting their personal information and selling it to third parties. The plaintiffs, who otherwise have no connection to Oracle, said the company violated federal and state privacy laws and California's constitution by creating unauthorized "digital dossiers" for hundreds of millions of people.

Appeals Court Judges Question California Law Designed to Protect Children Online

A federal appeals court seemed deeply skeptical of the constitutionality of a watershed California law that aims to expand safeguards for children online, probably foreshadowing another major defeat for state efforts to tackle the issue. The U.S. Court of Appeals for the 9th Circuit in San Francisco heard arguments over a tech industry challenge to the California Age-Appropriate Design Code (AADC), a bipartisan law passed in 2022.

Judge Rejects SEC's Effort to Oversee Corporate Cybersecurity Controls

A federal judge in a case stemming from one of the worst known cyberattacks has rejected the Securities and Exchange Commission’s bid to oversee corporate cybersecurity controls, relieving companies worried they would be penalized by regulators after breaches by well-resourced hackers. In a closely watched case brought by the agency against 2020 hacking victim SolarWinds, U.S. District Judge Paul A. Engelmayer granted most of the company’s motion to dismiss, holding that current laws give the SEC authority only over financial controls, not all internal controls.

FBI Got Access to Unreleased Technology to Unlock Trump Shooter's Phone

The FBI was given access to unreleased technology to access the phone of the man identified as the shooter of former President Donald Trump, according to people familiar with the investigation. As the FBI struggled to gain access to the phone, they appealed directly to Cellebrite, a digital intelligence company founded in Israel that supplies technology to several U.S. federal agencies, according to the people, who requested anonymity to speak freely about the case.

Italy's Antitrust Agency Investigating Google Over User Data

Italy's antitrust agency said it had launched an investigation into online search giant Google and its parent company Alphabet over alleged unfair commercial practices involving users' personal data. The request for consent that Google sends to its users to connect its multiple services "could constitute misleading and aggressive commercial practice", the watchdog said.

Vance, Trump's Vice Presidential Pick, Favors Big-Tech Antitrust Enforcement

Former U.S. President Donald Trump's vice presidential pick J.D. Vance has openly praised the work of Federal Trade Commission Chair Lina Khan, a sign that the agency's broad approach to antitrust enforcement could enjoy some level of support from a second Trump administration. Vance is one of several Republican lawmakers, including U.S. Senator Josh Hawley of Missouri and Florida U.S. Representative Matt Gaetz, called "Khanservatives" for their agreement with the FTC chair that U.S. antitrust law has a broader purpose than keeping prices down for consumers.

British Regulators Investigating Competition Issues for Digital Wallets

British regulators said they were looking into the soaring use of digital wallets offered by Big Tech firms, including whether there are any competition, consumer protection or market integrity concerns. The Financial Conduct Authority and Payments Systems Regulator is seeking views on the benefits and risks, and will assess the impact digital wallets, such as Apple Pay, Google Pay and PayPal, have on competition and choice of payment options at checkout, among other things.