News of the Cyber World

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DEEPFAKES

House passes legislation to criminalize nonconsensual deepfakes

The House passed a bill Monday evening that would criminalize using a person’s likeness to create nonconsensual deepfake pornography.

The Take It Down Act sailed through the chamber on a vote of 402-2, marking one of the first major pieces of legislation passed by Congress to address AI-generated deepfakes.

The bill makes it a federal crime to publicize nonconsensual imagery of others, both real and AI-generated, and requires companies to remove any images hosted or shared on their platforms within 48 hours of receiving notice. It also empowers the Federal Trade Commission to investigate and enforce compliance. 

A version of the Take It Down Act has already passed the Senate, and is now just a presidential signature away from becoming law.

The original Senate bill, co-sponsored by Sens. Amy Klobuchar, D-Minn., and Ted Cruz, R-Texas, picked up an unusual mix of bipartisan support in today’s Washington, with all House Democrats voting in favor of a measure that received endorsements from both First Lady Melania Trump and former Biden-era disinformation official Nina Jankowicz.

The generation of nonconsensual deepfake pornography, using the faces or bodies of real people, is a scourge that is as likely to victimize famous celebrities as it is anonymous high school students. The overwhelming majority of deepfakes on the internet are nonconsensual nudes or pornography, many of which swap out the faces or likenesses of real people, according to numerous studies.

Last year, singer Taylor Swift, who saw her likeness used by Donald Trump and X owner Elon Musk to create deepfakes, and was also the victim of widespread nonconsensual deepfake pornography, cited the issue when endorsing Democrat Kamala Harris for president.

Klobuchar, who chaired Trump’s second inaugural committee, recounted last month how she used the opportunity at a lunch to stump for the Take It Down Act while Melania Trump was in attendance, hoping to pick up her support.

“Use every moment you can,” Klobuchar joked.

Melania Trump praised the bill’s passage, saying she was honored to have lent her support.

“Today’s bipartisan passage of the Take It Down Act is a powerful statement that we stand united in protecting the dignity, privacy, and safety of our children,” she said in a statement. “I am thankful to the Members of Congress — both in the House and Senate — who voted to protect the well-being of our youth.”

But despite the bill’s swift passage through Congress, critics and some tech experts said the Take It Down Act was another example of legislation that was drafted out of good intentions but will lead to negative unintended consequences.

Becca Branum, deputy director of the Free Expression Project at the Center for Democracy and Technology, said the bill holds “dangerous implications” for online privacy and speech.

She expressed concerns that the 48-hour takedown provision would unduly burden smaller tech platforms and is an existential threat for end-to-end encrypted applications, which technically cannot access their users’ content or messages. 

Further, Branum highlighted the role that the FTC — which has just three Republican members after President Trump attempted to fire the two Democratic commissioners — would play in investigating offenses, calling this administration’s FTC “a recipe for weaponized enforcement.”

TRADE WAR

China's Temu Stops Shipments to US Amid Trump Trade War

Temu, the fast-growing online marketplace owned by China's PDD Holdings, said Friday it will no longer ship orders directly from China to the U.S., a major shift driven by President Donald Trump's crackdown on tariff exemptions for low-cost imports.

The move comes after the U.S. government eliminated the use of the "de minimis" rule for Chinese goods, which previously allowed shipments under $800 to enter duty-free. The change is part of a broader effort to target Chinese e-commerce platforms like Temu and Shein, which critics say have exploited the loophole to flood the U.S. market with cheap products.

As of today, Temu's U.S. site only displays products warehoused domestically, with the company emphasizing it remains committed to serving American consumers through "compliant and efficient" logistics.

The policy shift puts pressure on Temu's core business model, which had relied heavily on direct fulfillment from Chinese merchants to offer bargain-basement pricing. To adapt, the company is ramping up its domestic warehousing footprint and working to onboard more U.S.-based suppliers.

"Temu has been actively recruiting U.S. sellers to join the platform," a Temu spokesperson said Friday. "The move is designed to help local merchants reach more customers and grow their businesses."

While Temu says the new model will support faster delivery and compliance with U.S. trade laws, analysts warn it could erode the ultra-low prices that helped the app skyrocket in popularity. The changes raise broader questions about the sustainability of Chinese e-commerce platforms' rapid U.S. expansion in the face of increasing regulatory scrutiny.

What is the Status of the US-China Tariff Standoff?

Beijing is "evaluating" an offer by Washington to initiate trade talks, China's Commerce Ministry said Friday.

Outwardly at least, President Trump continues to take a hard-line stance on China with tariffs of 145 percent and higher, even after easing off earlier trade offensives against other partners. China, which has vowed to "fight to the end," has responded with its own steep tariff hike and a range of other countermeasures.

A World Trade Organization estimate suggests bilateral trade between the United States and China, its third-largest trading partner, could shrink by as much as 80 percent.

This would deal a heavy blow to China's export-driven economy, already fragile amid a property sector slump and sluggish consumer demand. In the U.S., prices on a wide range of goods containing Chinese components are expected to rise, as is the risk of recession.

DATA SHARING ISSUES

TikTok Illegally Sent Personal Data to China: Regulator

TikTok was fined €530 million ($601 million) by a European regulator for illegally sending personal data of users to China. But the Chinese-owned social video platform said it was being "singled out" and contested the ruling, adding that it would appeal.

The Irish Data Protection Commission (DPC) said its investigation found that Chinese-owned TikTok had broken General Data Protection Regulation (GDPR) laws around its users in the European Economic Area (EEA).

It accused TikTok of failing to undertake proper assessments of how its EEA user data was being stored.

Why it Matters

TikTok's ownership by the Chinese company ByteDance has come under intense scrutiny in recent months.

It faces a ban in the U.S. over national security concerns—including the potential sharing of sensitive data or use of the platform to disseminate propaganda to younger Americans—unless its American business is broken off and sold off to non-Chinese owners.

What to Know

The DPC said TikTok told it during the investigation that it did not store EEA user data on servers in China. But in April, TikTok told the DPC that it had discovered two months earlier that limited data was, in fact, stored on Chinese servers.

As well as the fine, TikTok was ordered to bring itself into compliance with GDPR laws within six months, or face having to suspend its data transfers to China—where regulators said Chinese authorities can potentially access the information.

TikTok claimed it respected all data-sharing related laws in the US, even if other Chinese-linked companies like Zoom had already broken them in the past, and now we learn that TikTok itself shared EU customers' data with third parties unlawfully. Can we really trust a company that would prefer to pay a fine rather than comply with international consumer protection laws?

But wait! There's more coming from... California!!

California Faces Probe After Sharing People's Health Data With LinkedIn

California Representative Kevin Kiley has called for an investigation after the state's handling of sensitive health information came under scrutiny following a report that data entered by residents on the state's health insurance marketplace was shared with LinkedIn.

In a letter exclusively shared with Newsweek, the Republican asked the Department of Health and Human Services to launch an investigation into the issue "due to Covered California's blatant disregard for privacy and the law."

"This is incredibly disturbing," Kiley also wrote on X, formerly Twitter.

Covered California, which runs the state's marketplace coveredca.com, shared sensitive personal data with LinkedIn, a subsidiary of Microsoft, through embedded tracking tools on the website, the nonprofit news organization The Markup reported on Monday.

Covered California confirmed the data transmission in a news release later that day, stating that "some sensitive data was inadvertently collected by the tags, including first names, the last four digits of Social Security numbers, and other sensitive health information like pregnancy status."

It added that all advertising-related tags on the website had been turned off as a "precautionary measure," and that it would review the extent of the data shared.

Newsweek reached out to Health Secretary Robert F. Kennedy Jr. and California Governor Gavin Newsom's offices via email outside of regular working hours on Wednesday.

Why It Matters

Concerns over personal data have grown in recent months after it was revealed that the government's Department of Government Efficiency had worked to gain access to the Social Security Administration's data systems, which hold sensitive personal information about approximately 70 million Americans.
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Trackers on coveredca.com, which was created under the Affordable Care Act, captured users' answers to questions about blindness, pregnancy, high prescription use, gender identity and experiences with domestic abuse, The Markup reported.

After Markup investigation, LinkedIn and Google face lawsuit alleging improper access to health data

One day after an investigation by The Markup and CalMatters, LinkedIn and Google were hit with a proposed class-action lawsuit alleging they improperly received confidential data from trackers on California’s health insurance exchange website.

A California congressman, citing the investigation, then called on the federal Health and Human Services Department to investigate the exchange’s sharing of data to LinkedIn.

In the article, published this week, The Markup and CalMatters revealed how trackers on the website, coveredca.com, sent information on visitors to LinkedIn through a tool called the Insight Tag. As visitors filled out forms on the site, the trackers sent LinkedIn information about them, including whether they were pregnant, blind, transgender, or had experienced domestic abuse. The trackers also monitored information on visitors’ searches for medical providers and how often those visitors used prescription drugs.

The government entity that operates the exchange, Covered California, has since removed the trackers. A spokesperson said they had been used as part of an advertising campaign that began in February 2024.

The lawsuit, filed in the Northern District of California, cites forensic testing by The Markup and CalMatters, as well as research by the plaintiff, to allege that LinkedIn and Google received health data from web trackers on coveredca.com without the knowledge or consent of users. The plaintiff in the suit is an anonymous California woman who alleges she filled out information on Covered California around June of last year, and had that information sent to LinkedIn and Google.

A proposed class action, the lawsuit seeks to represent everyone who had information transmitted to the tech companies by Covered California. The firm representing her, Bursor and Fisher, has a speciality in class-action suits, including in data privacy, and touts receiving a $100 million settlement from Google for alleged privacy violations in 2022.

“LinkedIn and Google intentionally intercepted sensitive and confidential communications between Covered California and its customers,” the suit, which seeks to represent others similarly situated, reads. “LinkedIn and Google failed to receive consent for these interceptions.”

The suit alleges that the tracking runs afoul of California and federal laws, including the California Invasion of Privacy Act, which requires consent before “communications” can be sent to third parties. The companies made similar violations under the federal Electronic Communications Privacy Act, according to the suit.

INFILTRATION

North Korean operatives have infiltrated hundreds of Fortune 500 companies

North Korean nationals have infiltrated the employee ranks at top global companies more so than previously thought, maintaining a pervasive and potentially widening threat against IT infrastructure and sensitive data.

“There are hundreds of Fortune 500 organizations that have hired these North Korean IT workers,” Mandiant Consulting CTO Charles Carmakal said Tuesday during a media briefing at the RSAC 2025 Conference.

“Literally every Fortune 500 company has at least dozens, if not hundreds, of applications for North Korean IT workers,” Carmakal said. “Nearly every CISO that I’ve spoken to about the North Korean IT worker problem has admitted they’ve hired at least one North Korean IT worker, if not a dozen or a few dozen.”

Google, which ranks eighth on the annual list of the top global companies by revenue, is caught up in this widespread threat, too.

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North Korean technical workers have been detected in Google’s talent pipeline as job candidates and applicants, but none have been hired by the company to date, said Iain Mulholland, senior director of security engineering at Google Cloud.

Threat hunters, insider risk management firms and security analysts continue to raise the alarm about North Korean nationals gaining employment at major corporations, highlighting the expansive ecosystem of tools, infrastructure and specialized talent North Korea’s regime has established for this effort.

The latest warnings and intel from Mandiant and Google constitute an escalation of this threat. Insider risk management firm DTEX recently told CyberScoop that 7% of its customer base, representing a fair cross-section of the Fortune 2000, have been infiltrated by North Korean operatives working as full-time employees with privileged access.

The risk of North Korean nationals working for any large organization has moved from being a possibility to an outright assumption. “If you’re not seeing this, it’s because you’re not detecting it, not because it’s not happening to you,” Mulholland said.

“The way that we’ve watched them put IT workers in Fortune 500 companies has been astounding,” said Sandra Joyce, VP of Google Threat Intelligence.

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For now, this group of specialized North Koreans mostly earn money for the jobs they do and send their salaries back to Pyongyang.

Carmakal said he was baffled by this scheme a few years ago, because it appeared to be a relatively small amount of money in play. But the money earned by North Korea’s regime has accumulated over time and now has the potential to generate substantial revenue.

A thousand IT workers earning six-figure salaries that are funneled back to the North Korean government works out to $100 million a year, and many of these operatives are working multiple jobs at different organizations concurrently, Carmakal said.

“Most of this activity is generally a fundraising activity,” said John Hultquist, chief analyst at Google Threat Intelligence Group.

CRYPTOCURRENCIES

Kidnappers in France Target Cryptocurrency Entrepreneurs for Ransom

French police rescued the father of a wealthy cryptocurrency entrepreneur in a nighttime raid after he was taken hostage for ransom, the latest alleged criminal effort in France to extort people involved in the management of digital assets.

The man was kidnapped Thursday morning in Paris, the prosecutor’s office said Sunday.

“The victim turned out to be the father of a man who made his fortune in cryptocurrencies, and the incident was accompanied by a ransom demand,” its statement said, without giving their names or other specifics about their identities.

Police investigators located the hostage in a house in the Essonne region south of Paris, from which he was rescued on Saturday night, the prosecutor’s office said.

It said he was treated for injuries but gave no details. French media reported that the alleged hostage-takers cut off one of the man’s fingers.

Police detained 5 people – four were in or close to the house where the man was held captive, while the fifth was at the wheel of a vehicle thought to have been used for the alleged abduction, the prosecutor’s office said.

It said the police investigation is looking at an array of possible criminal charges, including kidnapping “with torture or a barbaric act.”

In January, police said a co-founder of French crypto-wallet firm Ledger, David Balland, was also kidnapped with his wife from their home in the region of Cher of central France.

Police said they made 10 arrests and that the alleged kidnappers demanded a ransom in cryptocurrency from another of Ledger’s co-founders.

A raid by France’s elite National Gendarmerie Intervention Group unit that specializes in hostage situations freed Balland the next day, followed the day after that by the liberation, again by the GIGN, of his wife, found tied up in a vehicle, police said.

AI

Nvidia and Anthropic Clash over AI Chip Exports to China

AI giant Nvidia and startup Anthropic are engaged in a rare public dispute over U.S. chip export restrictions set to take effect on May 15. The restrictions are designed to keep powerful AI chips out of the hands of the Chinese.

CNBC reports that in an unusual public disagreement, Nvidia and AI startup Anthropic have clashed over the upcoming U.S. chip export restrictions, known as the “AI Diffusion Rule.” The rule, set to take effect on May 15, aims to control the export of advanced AI chips and model weights to prevent rival nations like China from gaining ground in the escalating AI arms race.

Anthropic, backed by billions from Amazon, argued for tighter controls and enforcement in a blog post on Wednesday. The company claimed that Chinese smuggling tactics involved hiding chips in “prosthetic baby bumps” and packing them “alongside live lobsters.” Anthropic proposed lowering the export threshold for Tier 2 countries, tightening the rules to reduce smuggling risks, and increasing funding for enforcement, stating that maintaining America’s compute advantage through export controls is crucial for national security and economic prosperity.

In response, an Nvidia spokesperson sharply criticized Anthropic, calling their claims “tall tales” and blasting the use of policy to limit competitiveness. The spokesperson stated that American firms should focus on innovation and rise to the challenge rather than manipulate regulators to capture victory in AI.

The spokesperson stated: “China, with half of the world’s AI researchers, has highly capable AI experts at every layer of the AI stack. America cannot manipulate regulators to capture victory in AI.”

An Anthropic spokesperson responded: “Anthropic stands by its recently filed public submission in support of strong and balanced export controls that help secure America’s lead in infrastructure development and ensure that the values of freedom and democracy shape the future of AI.”

Judge Allows Elon Musk to Pursue Fraud Claims Against Sam Altman’s OpenAI in Restructuring Lawsuit

A California judge has ruled that Elon Musk can proceed with fraud claims against AI startup OpenAI as part of his lawsuit alleging the company broke its promise to operate as a public charity when CEO Sam Altman decided to become a for-profit enterprise.

Bloomberg reports that in a significant development in the legal battle between Elon Musk and OpenAI, US District Judge Yvonne Gonzalez Rogers has allowed the billionaire entrepreneur to pursue fraud claims against the AI startup he co-founded. The ruling, issued on Thursday in Oakland, California, comes as part of Musk’s lawsuit asserting that OpenAI violated its commitment to function as a public charity by planning to transform into a for-profit business.

While Judge Gonzalez Rogers narrowed the claims in the complaint filed by Musk last year, she upheld the fraud allegations against OpenAI. Additionally, the judge declined to dismiss an unjust enrichment claim against both OpenAI and Microsoft, a major investor in the startup. However, she threw out false advertising and breach of fiduciary duty claims against OpenAI.

Both OpenAI and Microsoft successfully secured the dismissal of Musk’s racketeering claims, but the judge provided the billionaire with an opportunity to revise that allegation through an amended complaint. In response to the ruling, an OpenAI spokesperson referred to a social media post from last month, asserting that Musk’s actions constitute an unlawful attempt to hinder the company’s growth to benefit his rival startup, xAI, which he launched in 2023.

The legal dispute between Musk and Sam Altman, who collaborated to establish OpenAI a decade ago, unfolds as the startup engages in discussions with officials in Delaware and California regarding its restructuring plans. OpenAI faces pressure to complete the overhaul by the end of 2025, as failure to do so could result in SoftBank Group reducing its funding contribution from $30 billion to $20 billion. In such a scenario, OpenAI would have the option to seek out other investors.

Musk has alleged that the alliance forged between OpenAI and Microsoft after his departure from the startup’s board in 2018 represents an attempt to dominate the generative AI industry, potentially threatening free market competition. His lawyers also contend that Microsoft was aware of OpenAI co-founders Sam Altman and Greg Brockman engaging in “a scheme to defraud Musk of his valuable contributions and backing to enrich themselves.”

APPLE

Decoupling with China: Apple Announces Most U.S. iPhones Will Come from India

Apple reported its highest March-quarter revenue in over two years, reaching $95 billion, as customers rushed to purchase devices ahead of potential new U.S. tariffs. As a result of the ongoing trade war with China, the tech giant announced that the majority of U.S. iPhones would come from India, while iPads and other devices would be imported from Vietnam.

The Wall Street Journal reports that Apple announced a significant surge in revenue for the March quarter, driven by strong demand for iPhones and other devices as customers moved to make purchases before the introduction of new U.S. tariffs in April. The tech giant reported a five percent increase in sales, reaching $95 billion, surpassing analyst expectations. Net income for the quarter also rose by nearly five percent compared to the same period last year, reaching $24.8 billion.

One of the key factors contributing to the strong sales was the release of the iPhone 16e during the quarter. This lower-end model, which features limited artificial intelligence capabilities, helped drive demand alongside the pre-tariff buying rush. However, Apple faces ongoing challenges due to its exposure to China, where most of its devices have been traditionally assembled. The company has been one of the hardest hit by the Trump administration’s global tariff pressure, with shares taking a significant hit after the announcement of the Liberation Day tariffs.

Despite a temporary reprieve on reciprocal tariffs for smartphones, Apple still faces potential duties of 20 percent on imports from China and 10 percent on those from India, as the administration continues to consider further actions that could impact tech companies. The company is also grappling with stagnating iPhone sales, particularly in the China region, where customers have increasingly shifted to local brands. This trend could persist as U.S. brands lose appeal amidst the ongoing trade war.

In response to the trade war, Apple announced that most of the iPhones sold in the U.S. in the current quarter will come from India, while other devices like iPads will be imported from Vietnam. The company, which has always had a close relationship with China, is clearly decoupling from the communist country.

Breitbart News recently reported that Apple has been steadily increasing its manufacturing capacity in India in recent years through partnerships with contract manufacturers like Tata Electronics and Foxconn.

Federal Judge Blasts Apple for ‘Willfully’ Violating Antitrust Order, Refers Case to Criminal Prosecutors

In a significant legal setback for Apple, a federal judge has blasted the tech giant and CEO Tim Cook for “willfully violating” her previously issued injunction in the long-running App Store antitrust case. Now, the judge has ordered Apple to stop collecting massive fees on payments made outside the App Store.

The Wall Street Journal reports that Federal Judge Yvonne Gonzalez Rogers has dealt a major blow to Apple, ruling that the company “willfully violated” an antitrust injunction related to its App Store policies. In an extraordinary move, Judge Rogers referred the matter to federal prosecutors for a criminal contempt investigation, criticizing Apple CEO Tim Cook and alleging that another company executive lied under oath.

The ruling stems from the long-running legal battle between Apple and Epic Games, the developer of the popular video game Fortnite. In 2021, Epic accused Apple of monopolistic behavior due to the strict controls it imposes on app makers. While Judge Rogers largely sided with Apple in that initial case, she required the iPhone maker to allow developers to offer users alternative payment methods outside the App Store.

However, Apple’s response to the injunction drew sharp criticism from the judge. The company required developers who use alternative payment methods to pay a 27 percent fee, which Judge Rogers deemed as an attempt to “thwart the injunction’s goals” and maintain Apple’s revenue stream. She pointedly chided Tim Cook for ignoring advice from his deputy, Phil Schiller, to comply with the injunction and instead choosing to listen to his finance team.

The judge’s ruling orders Apple to allow developers to direct users to alternate methods of paying for services or subscriptions offered in the App Store. Moreover, the company can no longer impose fees in such scenarios or restrict software makers from providing links or communicating alternative payment options to consumers.

Apple, which generates billions of dollars in high-margin revenue from the fees it collects on in-app purchases, now faces an uncertain future regarding its App Store policies. While some analysts believe that many iPhone users may continue to make purchases within the App Store due to familiarity and convenience, the true impact of allowing alternative payment methods has never been fully tested.

GOOGLE SEARCH MONOPOLY

Google CEO Sundar Pichai Warns that Breaking Up His Search Monopoly Would Hamper ‘Innovation’

In a federal court hearing on Wednesday, Google CEO Sundar Pichai argued that the government’s proposed measures to address the company’s illegal monopoly in online search would severely impact its ability to innovate and invest in new technologies.

The New York Times reports that testifying before Judge Amit P. Mehta of the U.S. District Court for the District of Columbia, Sundar Pichai, Google’s CEO, made his case against the government’s aggressive proposals to remedy the company’s illegal monopoly in online search. Last year, Judge Mehta ruled that Google had violated the law to maintain its search monopoly, and the current three-week remedy phase aims to determine the measures that will be implemented to address this illegal behavior.

Pichai, the second witness called by the company, stated that the government’s proposal, which includes forcing Google to sell its popular Chrome web browser and share data with rivals, would lead to fewer investments in new technology. He argued that if the company were required to share the benefits of its research and development with competitors for a fee, it would become unviable to continue investing in innovation the way it has for the past three decades.

The landmark hearing, which could reshape the power dynamics in Silicon Valley, comes at a time when tech giants are competing to develop AI-powered internet products. New restrictions on Google’s business could bolster its rivals’ efforts while hindering its own.

The Google search case is a significant test of the U.S. government’s efforts to curb the immense power tech giants hold over online commerce, communications, and information. It follows a series of antitrust lawsuits against other major tech companies, such as Meta, Apple, and Amazon.

During the 2023 trial, government lawyers argued that Google had locked out other search engines by paying companies like Apple, Samsung, and Mozilla billions of dollars to be the default search engine in web browsers and on smartphones. Pichai, who helped develop Chrome, bristled when a government lawyer questioned his ability to predict how a future owner of the browser would handle cybersecurity, stating that his deep knowledge of the space allowed him to speak on the matter.

The government also seeks to compel Google to share its search results with rivals, granting them access to data about user searches and clicked websites. Pichai called this proposal a “de facto divestiture” of the company’s intellectual property, which would enable competitors to reverse engineer every aspect of Google’s technology stack.

In contrast, Google’s proposal is more narrow, suggesting that it should be allowed to continue paying other companies for prime placement of its search engine, with some deals up for annual renegotiation and more freedom for smartphone manufacturers in deciding which Google apps to install on their devices.