Daily Digest on AI and Emerging Technologies (18 February 2026)

Governance

What could make the EU Digital Identity Wallets fail?

(Biometric Update) The EU Digital Identity Wallet has enormous potential, but its success cannot be taken for granted. Insufficient ecosystem buy-in, unclear commercial incentives and unresolved trade-offs between privacy and fraud detection can risk derailing the initiative. Jon Ølnes, VP of Digital Identity and Regulation at Signicat says success is possible, but only if it is actively designed and governed, not assumed. – https://www.biometricupdate.com/202602/what-could-make-the-eu-digital-identity-wallets-fail

Ireland’s DPC opens data privacy probe into X’s Grok

(DigWatch) Ireland’s Data Protection Commission (DPC) has opened a formal investigation into X, focusing on whether the platform complied with its EU privacy obligations after users reportedly generated and shared sexualised, AI-altered images using Grok, the chatbot integrated into X. The inquiry will examine how the EU users’ personal data was processed in connection with this feature, under Ireland’s Data Protection Act and the GDPR framework. The controversy centres on prompts that can ‘edit’ real people’s photos, sometimes producing non-consensual sexualised imagery, with allegations that some outputs involve children. The DPC has said it has been engaging with X since the reports first emerged and has now launched what it describes as a large-scale inquiry into the platform’s compliance with core GDPR duties. – https://dig.watch/updates/irelands-dpc-opens-data-privacy-probe-into-grok

Courts and Litigation

Spain sends prosecutors after X, Meta and TikTok over AI abuse claims

(Cybernews) The Spanish government has ordered prosecutors to investigate social media platforms X, Meta and TikTok for allegedly spreading AI-generated child sexual abuse material, Prime Minister Pedro Sanchez said on Tuesday. The announcement comes as European regulators are cracking down on big tech companies, alleging the prevalence of abusive practices on online platforms ranging from anti-competitive behaviour in digital advertising to deliberate design of addictive features on social media. The three companies named by Sanchez did not immediately respond to emailed requests for comment. – https://cybernews.com/privacy/spain-prosecutors-x-meta-tiktok-ai-abuse-claims/

Unreleased Meta product didn’t protect kids from exploitation, tests found

(Maria Curi – Axios) Meta’s internal testing found a chatbots product failed to protect minors from sexual exploitation nearly 70% of the time, per documents presented in court Monday — though the company says it was never launched, as a result of that testing. Why it matters: Meta is under fire for its chatbots allegedly flirting and engaging in harmful conversations with minors, prompting investigations in court and on Capitol Hill. New Mexico Attorney General Raúl Torrez is suing Meta over design choices that allegedly fail to protect kids online from predators and for allegedly releasing its AI chatbots without proper guardrails. – https://www.axios.com/2026/02/16/meta-ai-chatbots-kids

Geostrategies

Ireland joins 12-country effort to develop quantum computing chips

(TechCentral) A major new European initiative, Photonics for Quantum (P4Q), will launch in 2026 across 12 countries, marking a decisive step in Europe’s effort to accelerate quantum technology development and manufacturing. In Ireland, P4Q is hosted at Tyndall National Institute (based at University College Cork), and is co-funded by the Dept of Further & Higher Education, Research, Innovation and Skills (DFHERIS), reflecting the strategic national priority to build sovereign capability in advanced semiconductors and quantum technologies. Coordinated by the University of Twente in the Netherlands, P4Q brings together research institutes, semiconductor foundries, and deep tech companies on a mission is to create the manufacturing ecosystem Europe needs to produce high quality quantum photonic chips at scale. Photonic chips are a key quantum technology, enabling breakthroughs in quantum sensing, communication, and computing. The major challenge today is scale: future quantum systems will require large numbers of high-quality photonic chips, produced reliably and in high volumes. – https://www.techcentral.ie/ireland-joins-12-country-effort-to-develop-quantum-computing-chips/

Newly Launched AI UniPod Set to Transform Ethiopia Into Africa’s Tech Hub

(All Africa) Ethiopian Artificial Intelligence Institute has officially launched the Artificial Intelligence University Innovation Pod (AI UniPod), a landmark initiative aimed at positioning Ethiopia as Africa’s leading artificial intelligence hub. The AI UniPod is a collaborative effort established by the Ethiopian Artificial Intelligence Institute, Addis Ababa University, and the United Nations Development Programme (UNDP) through its Timbuktoo Initiative. Speaking at the launch ceremony, Director General Worku Gachena stated that the Institute is the national body legally mandated to lead AI research, development, and implementation across the country. – https://allafrica.com/stories/202602170117.html

Europeans are dangerously reliant on US tech. Now is a good time to build our own

(Johnny Ryan – The Guardian) The French judge Nicolas Guillou knows exactly how deep Europe’s dependence on US tech is. Guillou and his colleagues at the international criminal court are under US sanctions. They can no longer use e-commerce, book hotels online or hire a car. Their home smart devices ignore them. Credit cards from European banks no longer function, because Europe has still not developed its own EU-wide payments system, so most electronic purchases go through Visa and Mastercard. Converting euros to foreign currencies is extraordinarily difficult because everything passes through dollars. Living in Europe is no protection against Donald Trump bricking your digital life. This dependence is not limited to mod-cons. Last year, the chairman of the Danish parliament’s defence committee said that he regretted his part in Denmark’s decision to buy US-made F-35 fighter jets: “I can easily imagine a situation where the USA will demand Greenland from Denmark and will threaten to deactivate our weapons and let Russia attack us when we refuse. Buying American weapons is a security risk that we can not run.” He is not alone. Spain has abandoned plans to buy F-35s.  Perhaps the danger should have been clear a decade ago when it was revealed that US spies routinely record the phone calls of millions of Europeans and bug the phones of European leaders. But across Europe, governments, militaries, businesses, doctors, professors and teenagers alike continued to trust US technology. Sensitive state policies are drafted in Microsoft software. Health and tax records live on Amazon’s servers. Important decisions are made over video systems run by Microsoft, Cisco or Zoom. Young Europeans view the world through a lens distorted by Snapchat filters and YouTube algorithms. Europe’s news organisations rely on Google ad auctions. – https://www.theguardian.com/commentisfree/2026/feb/17/europeans-are-dangerously-reliant-on-us-tech-now-is-a-good-time-to-build-our-own

How middle powers can weather US and Chinese AI dominance

(Francisco Javier Varela Sandoval, Isabella Wilkinson, Alex Krasodomski, Rowan Wilkinson – Chatham House) The dominance of the US and China in AI development poses a significant conundrum for the rest of the world. For middle powers, the establishment of ‘sovereign AI’ strategies, which allow a country to influence, develop and deploy AI technology in line with national interests, may hold the key. This paper recommends and details four clear approaches that enable middle powers to gain increased control over AI: specializing in a particular part of the global AI supply chain; aligning with one of the AI superpowers; sharing sovereignty with other countries to amplify influence; or hedging against instability by using a range of AI capabilities from different countries. Global dependencies on US and Chinese technology are unavoidable, but increased sovereignty over the deployment of AI will allow smaller countries to develop their own technological paths that can prioritize the needs of their populations. – https://www.chathamhouse.org/2026/02/how-middle-powers-can-weather-us-and-chinese-ai-dominance

Security and Surveillance

Hackers target supporters of Iran protests in new espionage campaign

(Daryna Antoniuk – The Record) Hackers believed to be aligned with Tehran are targeting supporters of Iran’s anti-government protests in a new cyberespionage campaign, researchers have found. The campaign, discovered by Swiss cybersecurity firm Acronis, began in early January, shortly after mass nationwide demonstrations erupted across Iran calling for an end to the Islamic Republic system. Researchers said the attackers likely took advantage of a spike in demand for information after authorities imposed sweeping internet blackouts across the country to limit coverage of the unrest. – https://therecord.media/hackers-target-iran-protest-supporters-cyber-campaign

Hackers claim Canada Goose breach but researchers reveal data is “several years old”

(Vilius Petkauskas – Cybernews) Attackers claim a Canada Goose breach exposed over 600k records, including emails, phone numbers, and partial payment data. Cybernews researchers analyzed samples and found duplicate entries, with most data dated between 2021 and 2023. Years-old PII can still enable phishing, identity theft, and fraud, though risks are tempered because details are not entirely new. – https://cybernews.com/security/canada-goose-data-breach-claims/

Darknet marketplaces increasingly tap into top privacy coin monero

(Linas Kmieliauskas – Cybernews) As blockchain analysts improve their abilities to track various crypto assets, including bitcoin (BTC) and stablecoins, operators of darknet marketplaces are increasingly supporting monero (XMR), a new analysis showed. Last year, 48% of newly launched darknet markets (DNMs) supported only XMR, compared with slightly above 40% in 2024, according to data from blockchain analysis company TRM Labs. This is also attributed to growing enforcement pressure and improved abilities to track other crypto assets. – https://cybernews.com/crypto/darknet-marketplaces-tap-top-privacy-coin-monero/

Low-Skilled Cybercriminals Use AI to Perform “Vibe Extortion” Attacks

(Kevin Poireault – Infosecurity Magazine) Unsophisticated cyber threat actors have started delegating key steps of extortion campaigns to large language model (LLM)-powered AI assistants. In a report published on February 17, Unit 42, Palo Alto Networks’ research team, shared findings about a low-skilled actor who used an LLM to script a professional extortion strategy, complete with deadlines and pressure tactics. This technique has been dubbed by the researchers as “vibe extortion.”. In one incident investigated by Unit 42, the cybercriminal recorded a threat video from their bed while visibly intoxicated, reading the AI-generated script word-for-word from a screen. While the threat lacked technical depth and seriousness, Unit 42 researchers argued that the LLM “supplied the coherence” and could open the door to more serious ways of using AI for low-skilled actors. “AI didn’t make the attacker smarter; it just made them look professional enough to be dangerous,” they added. – https://www.infosecurity-magazine.com/news/cybercriminals-ai-vibe-extortion/

Over-Privileged AI Drives 4.5 Times Higher Incident Rates

(Phil Muncaster – Infosecurity Magazine) A majority (69%) of security leaders agree that identity management needs to evolve in order to handle mounting risks in AI infrastructure deployments, according to a new report from Teleport. The security vendor polled over 200 US infrastructure security leaders to compile its latest report: 2026 State of AI in Enterprise Infrastructure Security. It defined “AI in infrastructure” as AI-powered workloads, agentic systems, machine-to-machine communication, ChatOps, compliance automation, and incident detection. The report found that while most respondents are seeing benefits from deploying AI in these use cases, such as improving incident investigation time (66%), documentation quality (71%) and engineering output (65%), a majority (85%) are also worried about the risks. This is based on real experience rather than hypothetical concerns: a third (35%) confirmed at least one AI-related incident and a further 24% suspect one may have occurred. – https://www.infosecurity-magazine.com/news/overprivileged-ai-45-times-higher/

Significant Rise in Ransomware Attacks Targeting Industrial Operations

(Danny Palmer – Infosecurity Magazine) There has been a sharp rise in the number of ransomware groups targeting industrial organizations as cybercriminals continue to exploit vulnerabilities in operational technology (OT) and industrial control systems (ICS), researchers at Dragos have warned. A total of 119 ransomware groups targeting industrial organizations were tracked during 2025 according to the Dragos Annual OT Cybersecurity Year in Review for 2026, published on February 17. That figure represents a 49% increase from the 80 which were tracked in 2024. According to Dragos, 2025 saw 3300 industrial organizations around the world hit by ransomware, compared with 1693 in 2024. The most targeted sector was manufacturing, followed by transportation. Oil and gas, electricity and communications were also among the most targeted critical and industrial systems. – https://www.infosecurity-magazine.com/news/rise-in-ransomware-targeting/

Why Ransomware Remains One of Cybersecurity’s Most Persistent and Costly Threats

(Danny Palmer – Infosecurity Magazine) Ransomware is a cybersecurity issue that refuses to disappear. If anything, attacks are becoming more disruptive, difficult to fix and financially costly. The average ransom demand in 2025 was $1.3 million and over half of payments cost over $1 million. A stark contrast compared with ransomware attacks a decade ago which saw average ransom demands of under $1000 according to a Symantec report published in 2016. Even when victims refuse to pay a ransom in return for a decryption key, ransomware attacks are still costly. You just have to look at the long-term operational and financial impact ransomware attacks had on organizations like Jaguar Land Rover, Marks & Spencer and Asahi in 2025. – https://www.infosecurity-magazine.com/news-features/why-ransomware-remains/

Polish cybercrime Police arrest man linked to Phobos ransomware operation

(Pierluigi Paganini – Security Affairs) Polish authorities arrested a 47-year-old man suspected of involvement in cybercrime and linked him to the Phobos ransomware operation. Police said they discovered evidence of illegal activities on his seized devices. “Officers from the Central Bureau for Combating Cybercrime detained a 47-year-old man suspected of creating, acquiring, and sharing computer programs used to unlawfully obtain information stored in computer systems.” reads the press release published by Poland’s Central Bureau of Cybercrime Control (CBZC) police. “Officers secured files on the man’s computer containing digital data, such as logins, passwords, credit card numbers, and server IP addresses. This data could have been used to launch various attacks, including ransomware. Furthermore, the 47-year-old used encrypted messaging to contact the Phobos criminal group, known for its ransomware attacks.” – https://securityaffairs.com/188128/cyber-crime/polish-cybercrime-police-arrest-man-linked-to-phobos-ransomware-operation.html

South Korea slaps $25M fine on Dior, Louis Vuitton, Tiffany over Salesforce breach

(Pierluigi Paganini – Security Affairs) South Korea’s Personal Information Protection Commission fined luxury brands including Dior, Louis Vuitton, and Tiffany & Co. a total of 36 billion Korean won ($25 million) after hackers compromised their Salesforce systems. The attack, linked to Scattered LAPSUS$ Hunters, led to major customer data breaches. – https://securityaffairs.com/188064/hacking/south-korea-slaps-25m-fine-on-dior-louis-vuitton-tiffany-over-salesforce-breach.html

Hackers steal OpenClaw configuration in emerging AI agent threat

(Pierluigi Paganini – Security Affairs) Cybersecurity researchers have uncovered a new information stealer that exfiltrated a victim’s OpenClaw configuration environment, previously known as Clawdbot and Moltbot. According to cybersecurity firm Hudson Rock, the case highlights a new shift in infostealer activity, moving beyond stealing browser passwords to targeting the identities, settings, and “digital souls” of personal AI agents. “Following our initial research into ClawdBot, Hudson Rock has now detected a live infection where an infostealer successfully exfiltrated a victim’s OpenClaw configuration environment.” reads the report published by Hudson Rock. “This finding marks a significant milestone in the evolution of infostealer behavior: the transition from stealing browser credentials to harvesting the “souls” and identities of personal AI agents.” – https://securityaffairs.com/188097/malware/hackers-steal-openclaw-configuration-in-emerging-ai-agent-threat.html

Hackers sell stolen Eurail traveler information on dark web

(Pierluigi Paganini – Security Affairs) Eurail B.V. confirmed that the traveler data stolen in a breach earlier this year is now being offered for sale on the dark web. The company disclosed the development as part of its ongoing response to the cybersecurity incident. “Eurail B.V. has confirmed that certain customer data affected by the previously reported security incident has been offered for sale on the dark web and a sample data set has been published on Telegram.” reads the statement published by the company. “We are continuing to investigate the scope and impact.” – https://securityaffairs.com/188075/data-breach/hackers-sell-stolen-eurail-traveler-information-on-dark-web.html

Cyber Insights 2026: The Ongoing Fight to Secure Industrial Control Systems

(Kevin Townsend – Security Week) The cybersecurity challenge for Industrial Control Systems (ICS) is they were designed in conditions of peace but now operate in a continuous war zone. – https://www.securityweek.com/cyber-insights-2026-the-ongoing-fight-to-secure-industrial-control-systems/

API Threats Grow in Scale as AI Expands the Blast Radius

(Kevin Townsend – Security Week) Application Programming Interfaces (APIs) remain an attacker-favored exploit route. Aggressors continuously target common failures in identity, access control and exposed interfaces – often at scale and machine speed. AI is increasing the threat surface. In an analysis of more than 60,000 published vulnerabilities disclosed in 2025, Wallarm found more than 11,000 (17%) were API-related. A concurrent analysis of CISA KEV Catalog additions for 2025 found 43% of exploited vulnerabilities were API-related. The report demonstrates the severity of the threat by including details of the top ten API-relevant breaches from 2025. The top three are 700Credit, Qantas, and Salesloft. A standout element of the report is the continuing expansion of AI technologies and their effect on APIs and AI security. “API security is at the heart of any AI transformation,” comments Ivan Novikov, founder and CEO at Wallarm. “Every AI application or agent interaction is mediated through an API. API security is integral to successful AI adoption, and AI by its very nature has made the consequences of getting it wrong much larger and much more impactful.” – https://www.securityweek.com/api-threats-grow-in-scale-as-ai-expands-the-blast-radius/

Police.AI – New Tech Tools for UK Law Enforcement

(Elijah Glantz and Pia Hüsch – RUSI) UK. Artificial Intelligence technologies for security purposes are widely associated with defence applications, from killer robots to drone targeting. Yet AI also offers a wide range of opportunities for law enforcement. As the pressure to analyse vast amounts of data increases for law enforcement officers amid a resource squeeze on policing, AI tools promise efficiency, speed and the hope to keep up with criminals. The case for greater use of AI in policing is summarised by Sir Stephen Kavanagh, former Executive Director at INTERPOL: ‘Criminal threats have moved on, and we haven’t. It is time for a new mindset: one that treats data and computer power as strategic assets’ – https://www.rusi.org/explore-our-research/publications/commentary/policeai-new-tech-tools-uk-law-enforcement

Intelligence, Defence, Military, and Warfare

How Russia Turns Gamers into Fighters

(Galen Lamphere-Englund and Petra Regeni – RUSI) Russia’s active weaponization of video games has become ingrained in its doctrine of hybrid warfare, resulting in loss of lives across continents. Recent revelations from Bloomberg demonstrate how foreign nationals are recruited online via popular military-simulation (milsim) games and Discord chats to fight for Russia in Ukraine. These attempts fit neatly within broader influence operations and cognitive warfare tactics leveraging video games. From propaganda mods and in-game recruitment campaigns, to creating Russian-only sovereign gaming platforms, these tactics speak to the political and cultural reality of online games as contested information spaces. As previously assessed by RUSI, the immersive, interactive and transnational nature of modern gaming builds tight-knit social spaces with less moderation than conventional social media. Despite being perceived as apolitical, gaming ecosystems offer Moscow ample room to exercise hybrid tactics against audiences abroad. In effect, platforms designed for entertainment are converted into battlefields for influence and recruitment. – https://www.rusi.org/explore-our-research/publications/commentary/how-russia-turns-gamers-fighters