Submission + - Senators Demand Crackdown On Wildfire 'Prediction Markets' (arstechnica.com)

Submitted by Anonymous Coward
An anonymous reader writes: Several US senators have written a letter to the Commodity Futures Trading Commission (CFTC), inquiring about the agency’s “plans to crack down on prediction markets” that offer “contracts for individuals to bet on wildfires." “Offering bets on destructive wildfires threatens to minimize communities’ suffering, all so the rich and powerful can profit,” wrote (PDF) the group of senators, who represent Oregon, California, Nevada, Minnesota, and New Hampshire. The document specifically cites that Polymarket hosted bets in January 2025 on the wildfires in Los Angeles, and it mentions another website which specifically accepts “simulated bets” exclusively on California wildfires.

“There’s also the heightened risk—according to state and local fire officials—that individuals could be tempted to commit arson in order to make sure their bets are successful,” the letter continues. “By offering contracts on fires, prediction market sites run the risk of encouraging people to influence fires that have already started, creating additional concerns around public safety and insider trading.” [...] Kalshi is one of the major prediction markets. Kalshi spokesperson Elisabeth Diana told Ars by email that the company does not allow such wildfire markets “because they create perverse incentives.” But its primary rival, Polymarket, has taken a different approach. A spokesperson for Polymarket told Ars in an emailed statement that the company does not “profit from outcomes,” adding that people “come to Polymarket for information.” “While we are not blind to the risks, removing these markets does not prevent a tragedy but makes the most accurate information less accessible to the people who need it most,” he wrote.

Submission + - Apple Launches Legal Challenge Against UK Government Demand to Access Data (theguardian.com)

Submitted by Anonymous Coward
An anonymous reader writes: Apple has launched a new legal challenge against a UK government demand to access its customers’ highly encrypted data, a year after the Home Office agreed to abandon its previous request. The US tech company launched the legal complaint last month at the Investigatory Powers Tribunal (IPT), an independent court that has the power to investigate claims that the UK intelligence services have acted unlawfully. The UK government had made a second request to Apple to grant it a “back door” to encrypted iCloud data belonging to British users, according to an order issued by the court.

Britain backed down on its original demand for access to data from UK and US customers last year, after a heated transatlantic tussle over encryption between London and Washington. UK authorities subsequently issued a new “technical capability notice” (TCN) to Apple that did not apply to American users. Apple is seeking to challenge the British government’s powers to issue TCNs under the UK Investigatory Powers Act, according to the details of the new legal case first reported by the Financial Times. [...] The original TCN issued last year asked Apple for the right to see users’ encrypted data protected by its advanced data protection (ADP) program in the event of a national security risk.

Apple said the removal of the tool – which not even it can access – would make users more vulnerable to data breaches from bad actors and other threats to customer privacy. Creating a “back door” would also mean all data was accessible by Apple, which it could be forced to share with law enforcement possessing a warrant. As a result, Apple withdrew UK customers’ access to its ADP program in January 2025. The Home Office has maintained that the Investigatory Powers Act, under which such orders are issued, contains robust safeguards and is used only when absolutely necessary.

Submission + - Google Plans to Exempt Sanctioned Nations From Android Developer Verification (arstechnica.com)

Submitted by Anonymous Coward
An anonymous reader writes: We are a month away from the initial rollout of Google’s Android developer verification system, and the company contends this policy does not impinge on the platform’s open nature. Still, the restrictions will be a big change, and there are still some unanswered questions. An issue that has come up repeatedly in the run-up to verification is what will happen to devs who can’t verify because of where they live. It turns out that Google has a cryptic answer for that buried in an FAQ. Developer verification will soon block the installation of apps from unverified developers on any Android device running Google services, which is functionally all Android phones outside Russia and China. Developers who want to keep releasing software, even if it’s not in the Play Store, have to provide Google with their ID and pay a small fee.

But what if you’re an Android developer living in a sanctioned nation? Currently, the U.S. sanction list includes Iran, Cuba, North Korea, and occupied areas of Ukraine. Given the current uncertain state of US foreign policy, that list could change in the future. Google doing any business with developers in those places is a thorny issue, and it seems like the company has decided to just leave them hanging. A rather lengthy FAQ a few levels deep on the Google developer site addresses various issues around dev verification. Smack in the middle is this: "How does this program impact developers in sanctioned countries? Devices in sanctioned countries will be excluded from Android developer verification checks. This allows any developer to continue distributing apps in these regions without verification, though users there won’t benefit from the enhanced security benefits of the program."

[...] A Google spokesperson has expanded on the FAQ and confirmed to Ars that people living in sanctioned nations will not be allowed to go through the verification process. That means they will not be able to effectively distribute software through any channel internationally. Today, someone making an app in, say, Cuba can distribute it freely around the world, as well as at home. Anyone can install it and see their work in action after tapping through a few sideloading alerts. In the coming months, that will no longer be the case. These unverified apps will only be easily installable in the sanctioned countries where verification doesn’t exist.

Submission + - OpenAI Finds Evidence Other AI Agents Escaped Containment (reuters.com)

Submitted by Anonymous Coward
An anonymous reader writes: OpenAI has discovered other instances in which autonomous agents have escaped containment as the company expands its investigation of the hacking incident at tech firm Hugging Face that drew global attention this month, two people familiar with the matter said on Friday. The new breakouts were uncovered during the company'spublicly announced investigationinto how one of its agents escaped what was meant to be a contained testing environment this month, the two people said, and OpenAI is now looking into those instances as well. One of the sources said that the escapes were limited in nature and that none of the agents were thought to have left OpenAI's network.

An OpenAI spokesperson referred toa statement issued by the companyon Tuesday that said it was reviewing "broader activity from our models" in addition to the Hugging Face intrusion. The discovery of additional rogue behavior at OpenAI, even if limited in nature, could feed growing appetite for regulation coming out of the White House and elsewhere. The expanded investigation by OpenAI was launched shortly before its primary rival, Anthropic, disclosed that its models were also responsible fora series of break-insthat led to breaches at three other companies dating back to April, according to the two sources and a third source familiar with the matter. The recent discovery of other past breakouts at OpenAI has not previously been reported.

AI safety experts said the new disclosures paint a portrait of a group of cutting-edge labs whose ability to develop dangerous autonomous hacking agents outstrips their ability to keep them under control. "We have a whole industry where the people designing, developing and putting out these tools aren't keeping up themselves to responsibly develop these things and keep them safe," said Maurice Chiodo, a mathematician who works at Cambridge University's Center for the Study of Existential Risk. Reuters could not establish exactly how many incidents OpenAI investigators found or the timings or circumstances under which they occurred. The three sources said OpenAI and outside experts were examining log data from earlier in the year in a bid to understand what took place.

Submission + - xAI sues Minnesota over its first-in-the-nation law banning 'nudification" tech (apnews.com)

Submitted by fjo3
fjo3 writes: Elon Musk’s company xAI has sued Minnesota over the state’s first-in-the-nation law that bans “nudification” technology on websites and apps, potentially providing a test for how far states can go in constitutionally regulating the use of artificial intelligence.

Musk’s company sued Monday in federal court, days before the law is set to take effect Saturday and make Minnesota the first state to try to outlaw the increasingly proliferating technology that lets people use AI to to create fake nude images of real people. The law was signed in May.

Submission + - Google Brings Its Age-Assurance Tech to Android Developers Worldwide (techcrunch.com)

Submitted by Anonymous Coward
An anonymous reader writes: Google is expanding its answer to Apple’s age-assurance tools with Wednesday’s news that it will bring its Play Signal API to users worldwide by the end of 2026. The technology, already available in Brazil, allows Android developers to identify younger users of their apps in order to provide safer, age-appropriate experiences. The expansion will initially bring the API to Australia and Canada by mid-August, before rolling out globally to all markets by the end of the year.

[...] Like Apple, Google’s technology allows developers to obtain a user’s age range without needing to access personal information, like their date of birth. Instead, it enables parents to share their child’s age range directly with apps. It also lets adults share their age when prompted by app developers as well, allowing for customized experiences. Parents won’t have to manage sharing this information on an app-by-app basis, either. To make it easier, Google centralizes these controls inside its parental controls dashboard, Family Link. Once entered, any developer that chooses to incorporate age-range information can access this signal to customize their apps accordingly.

Google notes, however, that the age ranges are not shared by default — parents must opt in by entering that information. The feature joins other safety tools on Google Play, including those that let developers restrict a child’s ability to discover their apps. Parents, meanwhile, can continue to use Google Play’s Family Link app to manage their child’s screen-time limits, approve app downloads, or set PIN-based content filters for specific apps.

Submission + - FSB Issues "Arrest Warrant" for Telegram's Pavel Durov (dw.com)

Submitted by D,Petkow
D,Petkow writes: The honeymoon is over. In 2024, French authorities nabbed Telegram founder Pavel Durov and the Kremlin had a geopolitical meltdown over their definition of 'freedom of speech.'
Now the FSB has issued its own international arrest warrant for Durov, charging him with 'facilitating terrorism.'
According to DW, the FSB is furious that Telegram's lack of moderation is biting them back.
They claim Ukrainian intelligence has been using Telegram dating bots to pose as young women, lure Russian teens, and get them to commit arson and sabotage against police stations. Essentially: 'Hot singles in your area want to burn down a draft office.'
Classic hypocrisy. Kremlin suddenly discovers unmoderated free speech isn't fun when it's happening in their own backyard and reverts to the trusty authoritarian playbook. Meanwhile, Telegram learns that playing neutral command-and-control platform for a ground war is a great way to end up on everyone's most-wanted list.

The official Telegram response on X/twitter is just a middle finger from Durov himself.
Durov thought he could ignore law enforcement forever, but it may turn out doing nothing unites East and West in the race to lock him up.

Submission + - Judge Blocks First State Law That Would Have Banned Prediction Markets (arstechnica.com)

Submitted by Anonymous Coward
An anonymous reader writes: Minnesota, the first US state to prohibit prediction markets, was prevented from enforcing the law by a federal court ruling just days before the ban was scheduled to take effect. But while Minnesota was stopped from enforcing a total ban, the state may ultimately be allowed to prohibit some types of prediction-market wagers. The Trump administration and the two largest prediction markets—Kalshi and Polymarket—sued Minnesota after the state enacted the law in May. The cases were consolidated, and a ruling (PDF) issued yesterday imposed a preliminary injunction blocking the law that was scheduled to take effect on August 1.

Minnesota lawmakers saw prediction markets as indistinguishable from gambling, but the US Commodity Futures Trading Commission (CFTC) argues it has exclusive authority to regulate the platforms under federal law. One of the primary legal questions is whether event contracts are “swaps,” which are regulated by the CFTC. Swaps are defined broadly in US law to include contracts in which payment “is dependent on the occurrence, nonoccurrence, or the extent of the occurrence of an event or contingency associated with a potential financial, economic, or commercial consequence.” US District Judge Katherine Menendez in the District of Minnesota, a Biden appointee, said Minnesota’s total ban on prediction markets is likely to violate US law because many trades on Kalshi and Polymarket are swaps.

Menendez wrote: "Specifically, it appears that whether the Minnesota statute is expressly preempted turns on whether the state law attempts to regulate trades in event contracts that qualify as “swaps” within the meaning of the CEA [Commodity Exchange Act]. And there are several examples of event contracts hosted by Kalshi and Polymarket US that fit that definition because they concern the occurrence of events with clear potential economic, financial, or commercial consequences that are neither remote or unattenuated. Kalshi and Polymarket US are designated contract markets, so the CFTC has exclusive jurisdiction to regulate transactions involving those 'swaps.'"

Menendez said the CFTC, Kalshi, and Polymarket met their burden of showing they are likely to succeed on the merits, so she issued “a preliminary injunction barring enforcement of Minnesota’s prediction market statute until a final decision on the merits is reached.” But she said Minnesota may be able to prohibit some types of event contracts offered on Kalshi and Polymarket because not all of them appear to meet the definition of swaps. For example, Menendez doesn’t think prediction-market bets on the outcome of Love Island USA meet the legal definition of swaps. Minnesota could continue litigating the case in district court or ask a federal appeals court to overturn the preliminary injunction.

Submission + - A Missing Underscore Sent Innocent Man to Prison For 18 Months (arstechnica.com)

Submitted by Anonymous Coward
An anonymous reader writes: One missing underscore in a Skyrim-themed username put an innocent Nova Scotia man in prison for 18 months. A 2018 child-luring investigation, which began in Madison, Wisconsin, and eventually extended to Halifax, Canada, was based on a false premise. Police were looking for a man using the Kik messaging service under the name “fus__ro_dah” (two underscores after “fus”), but they accidentally requested records for the username “fus_ro_dah” (one underscore after “fus”). This one-character difference led them not to the perpetrator but to a Canadian man named Brandon Klayme. (Ars readers may recognize “fus ro dah” as the Unrelenting Force “dragon shout” from The Elder Scrolls V: Skyrim.)

Despite finding no evidence of the crime on his digital devices, Canadian police arrested Klayme in 2020 on child sex abuse charges. He was convicted after a trial in 2023 and sentenced in 2024 to 18 months in prison. He served the full term. Even after release, Klayme continued to fight his conviction. In the process of preparing his appeal, the username mistake that led to all these years of disruption was finally discovered. On Thursday, the Nova Scotia Court of Appeal overturned Klayme’s conviction, writing: “Mr. Klayme is factually innocent of the offences. He should never have been charged, let alone convicted.” [...] As the court puts it, “Although the information about the usernames was available at the time of the trial, there is no evidence confirming or explaining how it went unnoticed.”

Submission + - Nvidia, Tech Giants Launch AI Safety Initiative (securityweek.com)

Submitted by wiredmikey
wiredmikey writes: Nvidia and a large group of technology, cybersecurity, and enterprise software companies have launched new initiative aimed at developing and sharing open source tools, models, and techniques for securing AI systems and agents. The new Open Secure AI Alliance aims to give defenders more open tools for testing, auditing and protecting AI models and agents. Nvidia points to the recent security incident involving OpenAI and Hugging Face, noting that when closed AI tools could not differentiate between attackers and defenders and blocked forensic work, Hugging Face used the open-weight GLM 5.2 model on its own systems to review over 17,000 actions and contain the breach.

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