Welcome to the CAVEAT Weekly Newsletter, where we break down some of the major developments and happenings occurring worldwide when discussing cybersecurity, privacy, digital surveillance, and technology policy.
At 1,500 words, this briefing is about a 7-minute read.
At a glance.
- China wages propaganda campaigns in the Philippines.
- EU announces new AI strategy.
China-linked propaganda campaign uncovered in the Philippines.
The news.
Over the weekend, reports emerged that Chinese actors were utilizing a Filipino-based firm to execute a propaganda campaign. Through internal documents collected about InfinitUs Marketing Solutions, which is a Manila-based marketing agency, alongside interviewing former company employees and government officials, Filipino leaders alleged that the Chinese government was attempting to both undermine the government’s policies and the nation’s security alliance with the United States (US).
Alongside these efforts, reports found that the Chinese-owned company was also amplifying anti-American content created by Filipino writers, some of whom had received money from Beijing.
InfinitUs and its owner, Paul Li, did not respond to questions, and a Chinese foreign ministry spokesperson stated that Beijing does not interfere in the internal affairs of other countries.
The knowledge.
This is not the first time that InfinitUs has come under heavy scrutiny for its alleged influence operations. Earlier this year, the Filipino Senate held a hearing where then-Majority Leader Francis Tolentino levied similar accusations against InfinitUs. Tolentino produced a copy of a check from the Chinese embassy to the company alongside highlighted posts from fake accounts.
During that same hearing, Jonathan Malay, Assistant Director General of the National Security Council, testified that the scope of these Chinese influence operations was expanding. Malaya warned that there were “indications that information operations are being conducted or that Chinese state-sponsored [operations] in the Philippines are actually interfering in the forthcoming elections.” Additionally, Malaya emphasized that these efforts were designed to favor specific candidates.
China’s influence operations have become an increasingly relevant topic in recent years, especially as social media and online platforms have become increasingly ingrained across the globe. In 2023, the Rand Corporation released a report detailing these operations. Rand noted that Chinese operations were using technology companies to create artificial intelligence avatars and spread pro-Chinese content. The Rand Corporation also identified a Chinese public relations firm, known as Shanghai Haixun, that financed protests in Washington, DC, and also amplified content about these protests through social media accounts and fake-media sites.
These ongoing efforts have become so entrenched in everyday activities that removing fake media sites or banning problematic social media accounts is not enough. Rather, more intensive and proactive measures are likely needed to address these systemic challenges.
The impact.
State-sponsored influence operations are a reality across the globe and one that is only becoming increasingly entrenched. While these operations do not have an instant impact on everyday lives, they certainly contribute to larger narratives, sway public opinions, and potentially impact election outcomes and policy decisions.
Understanding how these operations function, and the tools and narratives they utilize, is critical for governments, media organizations, and citizens alike. Combating these efforts is not something any one individual can do alone, but it does require stronger media literacy and more proactive democratic institutions.
European Commission announces $1.1 billion AI revamp.
The news.
On Wednesday, the European Commission announced its new artificial intelligence (AI) plan, aimed at revamping the region’s approach to AI. The Apply AI Strategy seeks to reduce the European Union’s (EU) dependence on the US and China for advanced technologies. More specifically, the strategy “aims to boost AI adoption and innovation across Europe, particularly among Small and Medium-sized Enterprises.” Additionally, the strategy aims to promote a buy European approach, particularly for the public sector, with an emphasis on open source AI solutions.
In a press conference, Commission President Ursula von der Leyen stated:
“AI adoption needs to be widespread, and with these strategies, we will help speed up the process. We will drive this ‘AI first’ mindset across all our key sectors, from robotics to healthcare, energy, and automotive.”
The billion euros in funding will be sourced from various EU research projects, such as Horizon Europe and Digital Europe, with the Commission also looking to encourage member states and the private sector to provide similar funding.
The knowledge.
This new strategy aims to complement the AI Continent Action Plan with new concrete actions. There are three core sections with this new plan.
- Sectoral flagships. These will boost AI adoption across ten key industry sectors and the public sector. These sectors include prominent industries such as healthcare and pharmaceuticals, mobility, transport and automotive, robotics, manufacturing, engineering, and construction.
- Technological sovereignty. The plan aims to support measures and actions to increase the EU’s technological sovereignty by tackling “cross-cutting challenges. ” These challenges include reinforcing the role of European Digital Innovation Hubs and expanding the role of AI factories, gigafactories, and testing facilities.
- Governance system. With a new governance system, the European Commission is looking to create a forum that brings together AI providers, industry leaders, academia, and public sector entities to develop policy actions. Additionally, the strategy looks to create policy actions that are grounded in real-world needs.
In parallel, the EU is looking to prioritize the AI in Science Strategy, which promotes the use of AI in the European scientific community. To execute on this strategy, the Commission will launch the Resource for AI Science in Europe (RAISE) initiative. Through RAISE, the EU is looking to pool its strategic resources, such as funding, computing, data, and talent, under two pillars. These pillars involve supporting core AI capabilities research and promoting the use of AI for scientific disciplines.
The impact.
With this plan, the European Union is further cementing its goals to invest in AI capabilities and reduce foreign dependencies. The strategy marks a significant policy shift, reflecting the Commission’s growing focus on industrial competitiveness and digital autonomy.
Those operating in European markets should expect continued financial and regulatory momentum behind emerging technologies. While new governance systems may introduce complexities, they will also likely create new investment and innovation opportunities.
Highlighting key conversations.
In this week’s Caveat Podcast, our team covered two developments. The first involves the ICEBlock application being taken down from the Apple App Store after being pressured by the Trump administration. The app was designed to allow users to avoid ICE encounters by alerting them to nearby agent activity, which the Department of Justice argued endangered law enforcement. The second development involved a new Department of Defense memo, which announced the reduction of cybersecurity training requirements for personnel. In the memo, it stated that training will be “consolidated, reduced in frequency, or eliminated” unless directly linked to warfighting duties.
Like what you read, and curious about the conversation? Head over to the Caveat Podcast for the full scoop and additional compelling insights. Our Caveat Podcast is a weekly show where we discuss topics related to surveillance, digital privacy, cybersecurity law, and policy. Got a question you'd like us to answer on our show? You can send your audio file to caveat@thecyberwire.com. Hope to hear from you.
Other noteworthy stories.
ECB picks AI startup to prevent digital fraud.
What: The European Central Bank (ECB) has picked a Portuguese startup to help prevent fraud.
Why: Last week, the ECB announced that it has contracted with Feedzai, the Portuguese AI startup, to help prevent fraud for its planned digital euro currency. The contract is expected to be worth just over $275 million over four years, with the option to extend it for an additional eleven years. Under the contract, Feedazi will provide the ECB with an AI model for scoring digital euro payments based on their fraud risk, which will be determined by any deviations from a customer’s typical behaviour, interactions, and history.
Google says hackers are sending extortion emails.
What: Google announced that hackers are sending extortion emails to executives from various companies.
Why: Last week, Google released a statement stating that hackers are sending extortion emails alleging that they had exfiltrated sensitive data from Oracle business applications. Google described the email campaign as “high volume,” and cautioned that it “does not currently have sufficient evidence to definitively assess the veracity of these claims.”
Cynthia Kaiser, the head of cybersecurity firm Halcyon’s Ransomware Research Center, stated that the company has seen demands ranging from a few million to $50 million. Kaiser stated that “there’s so much overlap amongst all these groups, and there are copycats across the ecosystem.”
UK police arrest two over ransomware incident.
What: British police arrested two people on suspicion of computer misuse and blackmail.
Why: On Tuesday, British law enforcement arrested two people following a cyberattack on a London childcare company where the data of over 8,000 children was stolen. The gang, self-identified as Radiant, reported on the attack through its dark web portal last month. The two men were both 17, and the arrests followed an operation at several residential properties in the town of Bishop’s Stortford.
In a statement, the police stated that “these arrests are a significant step forward in our investigation, but our work continues, alongside our partners, to ensure those responsible are brought to justice.”