AI

BBC Threatens Legal Action Against Perplexity AI Over Content Scraping 24

Ancient Slashdot reader Alain Williams shares a report from The Guardian: The BBC is threatening legal action against Perplexity AI, in the corporation's first move to protect its content from being scraped without permission to build artificial intelligence technology. The corporation has sent a letter to Aravind Srinivas, the chief executive of the San Francisco-based startup, saying it has gathered evidence that Perplexity's model was "trained using BBC content." The letter, first reported by the Financial Times, threatens an injunction against Perplexity unless it stops scraping all BBC content to train its AI models, and deletes any copies of the broadcaster's material it holds unless it provides "a proposal for financial compensation."

The legal threat comes weeks after Tim Davie, the director general of the BBC, and the boss of Sky both criticised proposals being considered by the government that could let tech companies use copyright-protected work without permission. "If we currently drift in the way we are doing now we will be in crisis," Davie said, speaking at the Enders conference. "We need to make quick decisions now around areas like ... protection of IP. We need to protect our national intellectual property, that is where the value is. What do I need? IP protection; come on, let's get on with it."
"Perplexity's tool [which allows users to choose between different AI models] directly competes with the BBC's own services, circumventing the need for users to access those services," the corporation said.

Perplexity told the FT that the BBC's claims were "manipulative and opportunistic" and that it had a "fundamental misunderstanding of technology, the internet and intellectual property law."
Botnet

Record DDoS Pummels Site With Once-Unimaginable 7.3Tbps of Junk Traffic (arstechnica.com) 41

An anonymous reader quotes a report from Ars Technica: Large-scale attacks designed to bring down Internet services by sending them more traffic than they can process keep getting bigger, with the largest one yet, measured at 7.3 terabits per second, being reported Friday by Internet security and performance provider Cloudflare. The 7.3Tbps attack amounted to 37.4 terabytes of junk traffic that hit the target in just 45 seconds. That's an almost incomprehensible amount of data, equivalent to more than 9,300 full-length HD movies or 7,500 hours of HD streaming content in well under a minute.

Cloudflare said the attackers "carpet bombed" an average of nearly 22,000 destination ports of a single IP address belonging to the target, identified only as a Cloudflare customer. A total of 34,500 ports were targeted, indicating the thoroughness and well-engineered nature of the attack. [...] Cloudflare said the record DDoS exploited various reflection or amplification vectors, including the previously mentioned Network Time Protocol; the Quote of the Day Protocol, which listens on UDP port 17 and responds with a short quote or message; the Echo Protocol, which responds with the same data it receives; and Portmapper services used identify resources available to applications connecting through the Remote Procedure Call. Cloudflare said the attack was also delivered through one or more Mirai-based botnets. Such botnets are typically made up of home and small office routers, web cameras, and other Internet of Things devices that have been compromised.

The Courts

Apple Sued By Shareholders For Allegedly Overstating AI Progress 14

Apple is facing a proposed class-action lawsuit from shareholders who allege the company misled investors about the readiness of its AI-powered Siri upgrades, contributing to a $900 billion drop in market value. Reuters reports: Shareholders led by Eric Tucker said that at its June 2024 Worldwide Developers Conference, Apple led them to believe AI would be a key driver of iPhone 16 devices, when it launched Apple Intelligence to make Siri more powerful and user-friendly. But they said the Cupertino, California-based company lacked a functional prototype of AI-based Siri features, and could not reasonably believe the features would ever be ready for iPhone 16s.

Shareholders said the truth began to emerge on March 7 when Apple delayed some Siri upgrades to 2026, and continued through this year's Worldwide Developers Conference on June 9 when Apple's assessment of its AI progress disappointed analysts. Apple shares have lost nearly one-fourth of their value since their December 26, 2024 record high, wiping out approximately $900 billion of market value.
The Courts

DOJ Files To Seize $225 Million In Crypto From Scammers (theverge.com) 13

The DOJ has filed a civil complaint to seize $225.3 million in cryptocurrency linked to pig butchering scams -- long-con frauds where victims are tricked into fake crypto investments. The funds were laundered through a blockchain network, and the DOJ says recovered money will go toward reimbursing victims. The Verge reports: The 75-page complaint (PDF) filed in the US District Court for the District of Columbia lays out more detail about the seizure. According to it, the US Secret Service (USSS) and Federal Bureau of Investigation (FBI) tied scammers to seven groups of Tether stablecoin tokens. The fraud fell under what's typically known as "pig butchering": a form of long-running confidence scam aimed at tricking victims -- sometimes with a fake romantic relationship -- into what they believe is a profitable crypto investment opportunity, then disappearing with the funds. Pig butchering rings often traffic the workers who directly communicate with victims to Southeast Asian countries, something the DOJ alleges this ring did.

The DOJ says Tether and crypto exchange OKX first alerted law enforcement in 2023 to a series of accounts they believed were helping launder fraudulently obtained currency through a vast and complex web of transactions. The alleged victims include Shan Hanes (referred to in this complaint as S.H.), the former Heartland Tri-State Bank president who was sentenced to 24 years in prison for embezzling tens of millions of dollars to invest in one of the best-known and most devastating pig butchering scams. The complaint lists a number of other victims who lost thousands or millions of dollars they thought they were investing (and did not commit crimes of their own). An FBI report (PDF) cited by the press release concluded overall crypto investment fraud caused $5.8 billion worth of reported losses in 2024.

Security

The 16-Billion-Record Data Breach That No One's Ever Heard of (cybernews.com) 34

An anonymous reader quotes a report from Cybernews: Several collections of login credentials reveal one of the largest data breaches in history, totaling a humongous 16 billion exposed login credentials. The data most likely originates from various infostealers. Unnecessarily compiling sensitive information can be as damaging as actively trying to steal it. For example, the Cybernews research team discovered a plethora of supermassive datasets, housing billions upon billions of login credentials. From social media and corporate platforms to VPNs and developer portals, no stone was left unturned.

Our team has been closely monitoring the web since the beginning of the year. So far, they've discovered 30 exposed datasets containing from tens of millions to over 3.5 billion records each. In total, the researchers uncovered an unimaginable 16 billion records. None of the exposed datasets were reported previously, bar one: in late May, Wired magazine reported a security researcher discovering a "mysterious database" with 184 million records. It barely scratches the top 20 of what the team discovered. Most worryingly, researchers claim new massive datasets emerge every few weeks, signaling how prevalent infostealer malware truly is.

"This is not just a leak -- it's a blueprint for mass exploitation. With over 16 billion login records exposed, cybercriminals now have unprecedented access to personal credentials that can be used for account takeover, identity theft, and highly targeted phishing. What's especially concerning is the structure and recency of these datasets -- these aren't just old breaches being recycled. This is fresh, weaponizable intelligence at scale," researchers said. The only silver lining here is that all of the datasets were exposed only briefly: long enough for researchers to uncover them, but not long enough to find who was controlling vast amounts of data. Most of the datasets were temporarily accessible through unsecured Elasticsearch or object storage instances.
Key details to be aware of: - The records include billions of login credentials, often structured as URL, login, and password.
- The datasets include both old and recent breaches, many with cookies, tokens, and metadata, making them especially dangerous for organizations without multi-factor authentication or strong credential practices.
- Exposed services span major platforms like Apple, Google, Facebook, Telegram, GitHub, and even government services.
- The largest dataset alone includes 3.5 billion records, while one associated with the Russian Federation has over 455 million; many dataset names suggest links to malware or specific regions.
- Ownership of the leaked data is unclear, but its potential for phishing, identity theft, and ransomware is severe -- especially since even a - Basic cyber hygiene -- such as regularly updating strong passwords and scanning for malware -- is currently the best line of defense for users.

Facebook

Iran Tells Citizens To Delete WhatsApp (time.com) 160

Iranian state television has instructed residents to delete WhatsApp from their smartphones, claiming the messaging platform gathers user information to share with Israel.

The local media provided no evidence supporting these allegations but additionally encouraged residents to avoid other "location-based" apps. WhatsApp has disputed the claims, with a spokesperson telling Time magazine the Meta-owned platform uses end-to-end encryption and does not track precise locations, keep messaging logs, or provide bulk information to governments.

The episode comes at a time when Iran is simultaneously experiencing a "near-total national Internet blackout," according to NetBlock, an internet governance monitoring organization. The disruption follows earlier partial outages amid escalating military tensions with Israel after days of missile strikes between the countries.

Further reading, from earlier this week: Iran Bans Officials From Using Internet-Connected Devices.
The Courts

Major Oil Companies Face First 'Climate Death' Lawsuit 137

The daughter of a Seattle woman who died during the 2021 Pacific Northwest heatwave has filed the first wrongful death lawsuit directly linking fossil fuel companies to an individual's climate-related death.

Misti Leon is suing seven oil and gas companies, including ExxonMobil, Chevron, Shell and BP, claiming they caused her mother Juliana Leon's death from hyperthermia on June 28, 2021, when temperatures reached 108 degrees Fahrenheit. The lawsuit alleges the companies created a "fossil fuel-dependent economy" that resulted in "more frequent and destructive weather disasters and foreseeable loss of human life." Attribution science research determined the 2021 heatwave would have been "virtually impossible" without human-made climate change and was at least 150 times rarer without warming.

The case seeks damages and funding for a public education campaign about fossil fuels' role in planetary heating.
Piracy

Napster and Sonos Sued For Millions In Unpaid Music Royalties (torrentfreak.com) 10

An anonymous reader quotes a report from TorrentFreak: Napster, the brand synonymous with the music piracy boom of the early 2000s, has a new copyright challenge. Together with audio giant Sonos, Napster faces a lawsuit demanding over $3.4 million in alleged unpaid copyright royalties. Filed by collective rights management organization SoundExchange, the complaint (PDF) centers on missed payments related to the "Sonos Radio" service, which until 2023 was powered by Napster's music catalog. [...]

Sonos Radio launched in April 2020 with Napster as the authorized agent, submitting the required royalty reports and royalties to SoundExchange. While all went well initially, payments stopped around May 2022. At the time, Napster had been acquired by venture capital firms Hivemind and Algorand, with a focus on "web3" technologies, including cryptocurrencies and blockchain. According to the complaint, the takeover resulted in a "complete breakdown of reporting and payment for the Sonos Radio service." The alleged payment problems eventually came to light during an audit initiated by SoundExchange in 2023, which concluded that Sonos and Napster owed millions in unpaid royalties.

Sonos and Napster are no longer partners in the radio service, as the audio equipment manufacturer switched to Deezer around April 2023. That appears to have solved the royalty issues, but SoundExchange still believes it is owed more than $3 million. "In total, Sonos, and its agent Napster, have failed to pay at least $3,423,844.41 comprising royalties owed for the period October 2022 to April 2023, interest, late fees, and auditor fee-shifting costs, and subtracting Sonos and Napster's payments made to date. "Late fees and interest continue to grow," SoundExchange adds, while requesting compensation in full. The complaint lists one count of "underpayment" of statutory royalties, and one count of "non-payment" of royalties, as determined by the audit. For both Copyright Act violations, SoundExchange requests damages of at least $3.4 million.

Privacy

Facebook Now Supports Passkeys (lifehacker.com) 21

Facebook now supports passkeys for login, offering users a more secure, phishing-resistant alternative to passwords by using biometrics or a PIN stored on their device. The feature is rolling out to iOS and Android "soon," while Messenger will get the feature "in the coming months." Lifehacker reports: Meta seems pretty excited about the news -- and not just because the company happens to be a member of the FIDO Alliance, the organization that developed passkeys. Aside from logging into your Facebook account, Meta says you'll be able to use passkeys to autofill your payment info when buying things with Meta Pay. You'll also be able to use the same passkey between both Facebook and Messenger, and your passkey will act as a key to lock out your encrypted Messenger chats.
Privacy

British Watchdog Cracks Down on Data Collection by Smart TVs, Speakers And Air Fryers (theguardian.com) 50

The UK Information Commissioner's Office has issued its first guidance demanding manufacturers of air fryers, smart speakers, fertility trackers, and smart TVs respect users' privacy rights after reports of excessive data collection in homes.

The regulator requires companies to ensure data security, provide transparency to consumers, and regularly delete collected information. Stephen Almond, the ICO's executive director for regulatory risk, said smart products know who users live with, their music preferences, and medication details. The guidance addresses "internet of things" devices, including fertility trackers that record menstrual dates and body temperature before sending data to manufacturer servers.

Additionally, smart speakers that monitor family members and visitors must allow users to configure settings that minimize personal information collection. The ICO warned manufacturers it stands ready to take enforcement action in the event of noncompliance.
Government

California AI Policy Report Warns of 'Irreversible Harms' 52

An anonymous reader quotes a report from Time Magazine: While AI could offer transformative benefits, without proper safeguards it could facilitate nuclear and biological threats and cause "potentially irreversible harms," a new report commissioned by California Governor Gavin Newsom has warned. "The opportunity to establish effective AI governance frameworks may not remain open indefinitely," says the report, which was published on June 17 (PDF). Citing new evidence that AI can help users source nuclear-grade uranium and is on the cusp of letting novices create biological threats, it notes that the cost for inaction at this current moment could be "extremely high." [...]

"Foundation model capabilities have rapidly advanced since Governor Newsom vetoed SB 1047 last September," the report states. The industry has shifted from large language AI models that merely predict the next word in a stream of text toward systems trained to solve complex problems and that benefit from "inference scaling," which allows them more time to process information. These advances could accelerate scientific research, but also potentially amplify national security risks by making it easier for bad actors to conduct cyberattacks or acquire chemical and biological weapons. The report points to Anthropic's Claude 4 models, released just last month, which the company said might be capable of helping would-be terrorists create bioweapons or engineer a pandemic. Similarly, OpenAI's o3 model reportedly outperformed 94% of virologists on a key evaluation. In recent months, new evidence has emerged showing AI's ability to strategically lie, appearing aligned with its creators' goals during training but displaying other objectives once deployed, and exploit loopholes to achieve its goals, the report says. While "currently benign, these developments represent concrete empirical evidence for behaviors that could present significant challenges to measuring loss of control risks and possibly foreshadow future harm," the report says.

While Republicans have proposed a 10 year ban on all state AI regulation over concerns that a fragmented policy environment could hamper national competitiveness, the report argues that targeted regulation in California could actually "reduce compliance burdens on developers and avoid a patchwork approach" by providing a blueprint for other states, while keeping the public safer. It stops short of advocating for any specific policy, instead outlining the key principles the working group believes California should adopt when crafting future legislation. It "steers clear" of some of the more divisive provisions of SB 1047, like the requirement for a "kill switch" or shutdown mechanism to quickly halt certain AI systems in case of potential harm, says Scott Singer, a visiting scholar in the Technology and International Affairs Program at the Carnegie Endowment for International Peace, and a lead-writer of the report.

Instead, the approach centers around enhancing transparency, for example through legally protecting whistleblowers and establishing incident reporting systems, so that lawmakers and the public have better visibility into AI's progress. The goal is to "reap the benefits of innovation. Let's not set artificial barriers, but at the same time, as we go, let's think about what we're learning about how it is that the technology is behaving," says Cuellar, who co-led the report. The report emphasizes this visibility is crucial not only for public-facing AI applications, but for understanding how systems are tested and deployed inside AI companies, where concerning behaviors might first emerge. "The underlying approach here is one of 'trust but verify,'" Singer says, a concept borrowed from Cold War-era arms control treaties that would involve designing mechanisms to independently check compliance. That's a departure from existing efforts, which hinge on voluntary cooperation from companies, such as the deal between OpenAI and Center for AI Standards and Innovation (formerly the U.S. AI Safety Institute) to conduct pre-deployment tests. It's an approach that acknowledges the "substantial expertise inside industry," Singer says, but "also underscores the importance of methods of independently verifying safety claims."
Government

Trump Extends TikTok Deadline For Third Time (cnbc.com) 69

President Trump will extend the deadline for ByteDance to divest TikTok's U.S. operations by another 90 days, marking the third extension since taking office. The extension aims to prevent a TikTok ban while negotiations with potential buyers like Oracle and Project Liberty continue. CNBC reports: "President Trump will sign an additional Executive Order this week to keep TikTok up and running," White House Press Secretary Karoline Leavitt said in a statement. "As he has said many times, President Trump does not want TikTok to go dark. This extension will last 90 days, which the Administration will spend working to ensure this deal is closed so that the American people can continue to use TikTok with the assurance that their data is safe and secure."

ByteDance was nearing the deadline of June 19, to sell TikTok's U.S. operations in order to satisfy a national security law that the Supreme Court upheld just a few days before Trump's second presidential inauguration. Under the law, app store operators like Apple and Google and internet service providers would be penalized for supporting TikTok. ByteDance originally faced a Jan. 19 deadline to comply with the national security law, but Trump signed an executive order when he first took office that pushed the deadline to April 5. Trump extended the deadline for the second time a day before that April mark. Trump told NBC News in May that he would extend the TikTok deadline again if no deal was reached, and he reiterated his plans on Thursday.

Power

Spain's Government Blames Huge Blackout On Grid Regulator and Private Firms (bbc.com) 60

An anonymous reader quotes a report from the BBC: The Spanish government has said that the national grid operator and private power generation companies were to blame for an energy blackout that caused widespread chaos in Spain and Portugal earlier this year. Shortly after midday on April 28, both countries were disconnected from the European electricity grid for several hours. Businesses, schools, universities, government buildings and transport hubs were all left without power and traffic light outages caused gridlocks. While schoolchildren, students and workers were sent home for the day, many other people were stuck in lifts or stranded on trains in isolated rural areas.

In the immediate aftermath, the left-wing coalition government did not provide an explanation, instead calling for patience as it investigated. Nearly two months after the unprecedented outage, the minister for ecological transition, Sara Aagesen, has presented a report on its causes. She said the partly state-owned grid operator, Red Electrica, had miscalculated the power capacity needs for that day, explaining that the "system did not have enough dynamic voltage capacity." The regulator should have switched on another thermal plant, she said, but "they made their calculations and decided that it was not necessary."

Aagesen also blamed private generators for failing to regulate the grid's voltage shortly before the blackout happened. "Generation firms which were supposed to control voltage and which, in addition, were paid to do just that did not absorb all the voltage they were supposed to when tension was high," she said, without naming any of the companies responsible. The day after the outage, Prime Minister Pedro Sanchez suggested that private electricity companies might have played a role, saying that his government would demand "all the relevant accountability" from them. However, the new report on the blackout also raises questions about the role of Beatriz Corredor, president of Red Electrica and a former Socialist minister, who had previously insisted that the grid regulator had not been at fault.
Aagesen said there was no evidence of a cyberattack behind the blackout. The government also maintained that Spain's renewable energy output was not to blame.
Businesses

OpenAI Weighs 'Nuclear Option' of Antitrust Complaint Against Microsoft (arstechnica.com) 28

An anonymous reader quotes a report from Ars Technica: OpenAI executives have discussed filing an antitrust complaint with US regulators against Microsoft, the company's largest investor, The Wall Street Journal reported Monday, marking a dramatic escalation in tensions between the two long-term AI partners. OpenAI, which develops ChatGPT, has reportedly considered seeking a federal regulatory review of the terms of its contract with Microsoft for potential antitrust law violations, according to people familiar with the matter. The potential antitrust complaint would likely argue that Microsoft is using its dominant position in cloud services and contractual leverage to suppress competition, according to insiders who described it as a "nuclear option," the WSJ reports.

The move could unravel one of the most important business partnerships in the AI industry -- a relationship that started with a $1 billion investment by Microsoft in 2019 and has grown to include billions more in funding, along with Microsoft's exclusive rights to host OpenAI models on its Azure cloud platform. The friction centers on OpenAI's efforts to transition from its current nonprofit structure into a public benefit corporation, a conversion that needs Microsoft's approval to complete. The two companies have not been able to agree on details after months of negotiations, sources told Reuters. OpenAI's existing for-profit arm would become a Delaware-based public benefit corporation under the proposed restructuring.

The companies are discussing revising the terms of Microsoft's investment, including the future equity stake it will hold in OpenAI. According to The Information, OpenAI wants Microsoft to hold a 33 percent stake in a restructured unit in exchange for foregoing rights to future profits. The AI company also wants to modify existing clauses that give Microsoft exclusive rights to host OpenAI models in its cloud. The restructuring debate attracted criticism from multiple quarters. Elon Musk alleges that OpenAI violated contract provisions by prioritizing profit over the public good in its push to advance AI and has sued to block the conversion. In December, Meta Platforms also asked California's attorney general to block OpenAI's conversion to a for-profit company.

AI

Salesforce Study Finds LLM Agents Flunk CRM and Confidentiality Tests 21

A new Salesforce-led study found that LLM-based AI agents struggle with real-world CRM tasks, achieving only 58% success on simple tasks and dropping to 35% on multi-step ones. They also demonstrated poor confidentiality awareness. "Agents demonstrate low confidentiality awareness, which, while improvable through targeted prompting, often negatively impacts task performance," a paper published at the end of last month said. The Register reports: The Salesforce AI Research team argued that existing benchmarks failed to rigorously measure the capabilities or limitations of AI agents, and largely ignored an assessment of their ability to recognize sensitive information and adhere to appropriate data handling protocols.

The research unit's CRMArena-Pro tool is fed a data pipeline of realistic synthetic data to populate a Salesforce organization, which serves as the sandbox environment. The agent takes user queries and decides between an API call or a response to the users to get more clarification or provide answers.

"These findings suggest a significant gap between current LLM capabilities and the multifaceted demands of real-world enterprise scenarios," the paper said. [...] AI agents might well be useful, however, organizations should be wary of banking on any benefits before they are proven.
Medicine

Novo Nordisk Loses Canadian Patent Protection For Blockbuster Diabetes Drug Over Unpaid $450 Fee (science.org) 72

Pharmaceutical giant Novo Nordisk forfeited patent protection for semaglutide -- the active ingredient in blockbuster diabetes and weight loss drugs Ozempic and Wegovy -- in Canada after failing to pay a $450 maintenance fee in 2019. The company had paid maintenance fees through 2018 but requested a refund for the 2017 fee, apparently seeking more time to decide whether to continue protecting the patent.

When the 2019 fee came due at $450 with late penalties, Novo never paid despite having a one-year grace period. Canadian patent authorities confirmed the patent "cannot be revived" once lapsed. The oversight is particularly costly given Canada represents the world's second-largest semaglutide market, worth billions annually. Generic drugmaker Sandoz plans to launch a competing version in early 2026, while Novo's U.S. patent protection extends until at least 2032.
United States

New York State Begins Asking Employers to Offically Identify Layoffs Caused by AI (entrepreneur.com) 32

The state of New York is "asking companies to disclose whether AI is the reason for their layoffs," reports Entrepreneur: The move applies to New York State's existing Worker Adjustment and Retraining Notification (WARN) system and took effect in March, Bloomberg reported. New York is the first state in the U.S. to add the disclosure, which could help regulators understand AI's effects on the labor market.

The change takes the form of a checkbox added to a form employers fill out at least 90 days before a mass layoff or plant closure through the WARN system. Companies have to select whether "technological innovation or automation" is a reason for job cuts. If they choose that option, they are directed to a second menu where they are asked to name the specific technology responsible for layoffs, like AI or robots.

Education

'Ghost' Students are Enrolling in US Colleges Just to Steal Financial Aid (apnews.com) 110

Last week America's financial aid program announced that "the rate of fraud through stolen identities has reached a level that imperils the federal student aid programs."

Or, as the Associated Press suggests: Online classes + AI = financial aid fraud. "In some cases, professors discover almost no one in their class is real..." Fake college enrollments have been surging as crime rings deploy "ghost students" — chatbots that join online classrooms and stay just long enough to collect a financial aid check... Students get locked out of the classes they need to graduate as bots push courses over their enrollment limits.

And victims of identity theft who discover loans fraudulently taken out in their names must go through months of calling colleges, the Federal Student Aid office and loan servicers to try to get the debt erased. [Last week], the U.S. Education Department introduced a temporary rule requiring students to show colleges a government-issued ID to prove their identity... "The rate of fraud through stolen identities has reached a level that imperils the federal student aid program," the department said in its guidance to colleges.

An Associated Press analysis of fraud reports obtained through a public records request shows California colleges in 2024 reported 1.2 million fraudulent applications, which resulted in 223,000 suspected fake enrollments. Other states are affected by the same problem, but with 116 community colleges, California is a particularly large target. Criminals stole at least $11.1 million in federal, state and local financial aid from California community colleges last year that could not be recovered, according to the reports... Scammers frequently use AI chatbots to carry out the fraud, targeting courses that are online and allow students to watch lectures and complete coursework on their own time...

Criminal cases around the country offer a glimpse of the schemes' pervasiveness. In the past year, investigators indicted a man accused of leading a Texas fraud ring that used stolen identities to pursue $1.5 million in student aid. Another person in Texas pleaded guilty to using the names of prison inmates to apply for over $650,000 in student aid at colleges across the South and Southwest. And a person in New York recently pleaded guilty to a $450,000 student aid scam that lasted a decade.

Fortune found one community college that "wound up dropping more than 10,000 enrollments representing thousands of students who were not really students," according to the school's president. The scope of the ghost-student plague is staggering. Jordan Burris, vice president at identity-verification firm Socure and former chief of staff in the White House's Office of the Federal Chief Information Officer, told Fortune more than half the students registering for classes at some schools have been found to be illegitimate. Among Socure's client base, between 20% to 60% of student applicants are ghosts... At one college, more than 400 different financial-aid applications could be tracked back to a handful of recycled phone numbers. "It was a digital poltergeist effectively haunting the school's enrollment system," said Burris.

The scheme has also proved incredibly lucrative. According to a Department of Education advisory, about $90 million in aid was doled out to ineligible students, the DOE analysis revealed, and some $30 million was traced to dead people whose identities were used to enroll in classes. The issue has become so dire that the DOE announced this month it had found nearly 150,000 suspect identities in federal student-aid forms and is now requiring higher-ed institutions to validate the identities of first-time applicants for Free Application for Federal Student Aid (FAFSA) forms...

Maurice Simpkins, president and cofounder of AMSimpkins, says he has identified international fraud rings operating out of Japan, Vietnam, Bangladesh, Pakistan, and Nairobi that have repeatedly targeted U.S. colleges... In the past 18 months, schools blocked thousands of bot applicants because they originated from the same mailing address; had hundreds of similar emails with a single-digit difference, or had phone numbers and email addresses that were created moments before applying for registration.

Fortune shares this story from the higher education VP at IT consulting firm Voyatek. "One of the professors was so excited their class was full, never before being 100% occupied, and thought they might need to open a second section. When we worked with them as the first week of class was ongoing, we found out they were not real people."
Crime

Stolen iPhones from an Apple Store Remotely Disabled, Started Blaring Alarms (indiatimes.com) 147

Earlier this week looters who stole iPhones "got an unexpected message from Apple," reports the Economic Times.

"Please return to Apple Tower Theatre. This device has been disabled and is being tracked. Local authorities will be alerted."

Stolen phones "were remotely locked and triggered alarms, effectively turning the devices into high-tech bait. Videos circulating online show the phones flashing the message while blaring loudly, making them impossible to ignore." According to LAPD Officer Chris Miller, at least three suspects were apprehended in connection to the Apple Store burglary. One woman was arrested on the spot, while two others were detained for looting.
Facebook

The Meta AI App Is a Privacy Disaster (techcrunch.com) 20

Meta's standalone AI app is broadcasting users' supposedly private conversations with the chatbot to the public, creating what could amount to a widespread privacy breach. Users appear largely unaware that hitting the app's share button publishes their text exchanges, audio recordings, and images for anyone to see.

The exposed conversations reveal sensitive information: people asking for help with tax evasion, whether family members might face arrest for proximity to white-collar crimes, and requests to write character reference letters that include real names of individuals facing legal troubles. Meta provides no clear indication of privacy settings during posting, and if users log in through Instagram accounts set to public, their AI searches become equally visible.

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