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Microsoft Commits to Sweeping AI Privacy Rules for Students. Will Other Tech Giants Follow?

Microsoft signed legally binding AI privacy and safety standards for schools with the American Federation of Teachers, effective November 1.

Microsoft's agreement with the American Federation of Teachers prohibits using student or educator data to train AI systems, bans selling data or using it for ads and product development, and forbids AI companions designed to foster emotional dependency, with third-party audits required. The standards apply to all schools under Microsoft contract starting November 1. NYC and LA school districts announced one-year moratoriums on student AI use, while OpenAI and Anthropic pursue similar pacts and Google remains noncommittal.

SecurityWeek · 1d agoAI policy

Microsoft has new AI privacy rules for schools

Microsoft agreed to enforceable AI safety and privacy principles with the AFT and UFT after New York City and Los Angeles imposed one-year bans on student-facing AI.

Microsoft committed to ten contractually enforceable principles covering AI use in schools, including not training models on student or educator data, limiting data collection, plain-language disclosure to families, prohibiting AI companions, and requiring human review for high-risk decisions. The agreement with the American Federation of Teachers and its NYC affiliate comes after NYC and LA implemented one-year bans on student-facing AI. Districts can adopt the terms into new or existing contracts starting in November.

The Verge · AI · 7d agoAI policy1

[AINews] Reality Checks on AI News (Yegge shuts down Gas Town, Databricks’ +60% Astra cost)

Latent Space AI news roundup: Steve Yegge shuts down Gas Town, Databricks reports 60% higher coding spend on GPT-6 Astra, OpenAI launches misalignment disclosure framework.

Latent Space's AI News digest for September 15-16, 2026 leads with Steve Yegge shutting down his Gas Town orchestrator despite spending thousands monthly on coding-agent subscriptions. Databricks rolled out GPT-6 Astra to roughly 3,500 engineers, reporting superior long-horizon performance over Opus 5 and Sol 5.6 but a ~60% increase in coding spend. OpenAI published a formal framework for disclosing model misalignment incidents with six case reports, while Microsoft and Google Research released safety papers on 'capability laundering' and the Fuse motive-inference benchmark. Xiaomi shared live RL training telemetry for MiMo-V2.6, estimated at $493k/day for the 1T-class Pro run.

Microsoft AI Code of Conduct Sets Cyberattack Boundaries, Chain of Command, Safety Constraints

Microsoft AI's draft Humanist AI Code of Conduct blocks MAI models from producing exploit code and constrains autonomous agent behavior.

The draft code sets 'Absolute Constraints' preventing MAI models from generating working exploit code, attack tooling, or intrusion guidance, while permitting authorized defensive work such as vulnerability discovery and malware analysis. A 'Chain of Command' rule means tool outputs, file contents, and webpages carry no authority over model behavior, countering injected instructions. Microsoft opened a six-week public consultation; a revised version will guide 2027 model development, and current MAI Models were not trained on the document.

SecurityWeek · 2d agoAI safety & security1

Hackers Disguise CHOSEN BRICK Malware as AI Apps, Antivirus Software and MRI Results

NCSC, FBI, and AIVD warn Iranian state-linked actors deliver CHOSEN BRICK Windows spyware via fake AI apps, antivirus installers, and MRI-result lures.

A joint advisory from the UK NCSC, FBI, and Dutch AIVD details CHOSEN BRICK (FBI tracking name: HEAVYGRAM), Iranian state-linked Windows spyware targeting dissidents, activists, and journalists worldwide since at least 2025. Lures impersonate Pictory, RunwayML, Norton Antivirus, Telegram, Adobe Flash Player, and KeePass, and operators pivot conversations from corporate to personal devices to bypass enterprise controls. The spyware persists via Registry Run keys, adds Microsoft Defender exclusions, uses per-victim Telegram bots for command-and-control, and exfiltrates screenshots, audio, email, and chat data via Telegram and cloud services, with some victim data appearing on pro-Iranian leak sites.

GBHackersupdated · 4h agofirst · 1d agoMalware in the wild 7 sources

Risky Bulletin: BEC campaign steals €35 million from French notaries

Hackers stole over €35 million from 500+ French notary offices in a four-year BEC campaign; ANSSI spent two years helping evict the attackers.

A business email compromise campaign breached more than 500 French notary offices — about 7% of all French notaries per the Conseil Supérieur du Notariat — over four years, stealing more than €35 million by phishing initial access and silently modifying wire transfer details. France's cybersecurity agency ANSSI worked for two years behind the scenes to help notaries remove the persistent attackers, who had deep access; officials also feared hackers could issue fake notarized acts such as marriage certificates or forged real estate deals. No forged documents have been found so far, but notaries have added two-factor authentication and in-person requirements for banking details, and banks added extra checks in 2024. The newsletter also notes other incidents, including a $320 million Bitcoin extraction from Blockstream's Liquid Network and a JetBrains Cadence breach via TeamCity servers.

Risky Business News · 10d agoPhishing & fraud in the wild1

Risky Bulletin: Ukraine's top prosecutor resigns amid scam call center scandal

Ukraine's top prosecutor Ruslan Kravchenko resigned after NABU arrested a deputy for taking bribes protecting scam call centers running fake investment platforms.

Ukraine's anti-corruption bureau NABU arrested Serhiy Kropyva, Deputy Head of International Cooperation at the Prosecutor General's Office, alleging officials took monthly protection fees from a network of 100-500 scam call centers luring victims into fake investment platforms, with bribes reportedly growing from $700,000 to $3.5 million per month. Prosecutor General Ruslan Kravchenko resigned on Monday, calling it a political decision, while Kropyva was fired with bail set at 120 million hryvnias ($2.7 million) and over 100 call centers shut down in the past month. The newsletter also briefly covers a cyberattack crippling more than 80 Luxembourg medical practices via payment vendor BMS Engineering, ShinyHunters' claimed theft of 200,000 Florida DMV driver records, a cyberattack on the American Meteor Society, and school closures in Springfield, Massachusetts.

Risky Business News · 8d agoPhishing & fraud

Hackers hijack HBO Max Reddit account to push malware in ClickFix ads

Hackers hijacked HBO Max's verified Reddit account to run 108 ClickFix ads delivering infostealers and crypto clippers to Windows and macOS users.

Hudson Rock and ADAMnetworks linked the hijacked u/hbomax Reddit account to a campaign they call PasteSwitch, which ran 108 malicious ads over roughly 48 hours pushing sites like hbomaxx.us, codex-craft.com, and code-desktop.com. ClickFix social engineering tricks victims into pasting Base64-obfuscated shell or PowerShell commands into Terminal or Run, delivering MacSync, AMOS helper persistence, Amatera Stealer loaded in-memory, and the AnimateClipper and ZigClipper crypto clipboard hijackers. Windows chains used an MP3/HTA polyglot to create scheduled tasks, disable AMSI, and launch 32-bit PowerShell; fake Ledger, Trezor Suite, and Exodus wallet apps steal recovery phrases. Reddit admins paused the ads, and it remains unclear how the account was accessed.

BleepingComputerupdated · 2d agofirst · 2d agoMalware in the wild 7 sources

Iranian cyber targeting of dissidents, activists and journalists

UK NCSC, FBI, and Dutch AIVD expose CHOSEN BRICK spyware used by Iranian state actors against dissidents, activists, and journalists worldwide.

A joint advisory from the UK NCSC, FBI, and Dutch AIVD details CHOSEN BRICK, a Windows spyware family used by Iranian state cyber actors since at least 2025 against dissidents, activists, and journalists in the UK, US, and Netherlands. Actors build rapport on WhatsApp and Telegram impersonating known contacts or platform support, then deliver disguised payloads resembling apps such as Telegram, Norton, RunwayML, or fake MRI results. The malware persists via HKCU Run registry keys, adds Microsoft Defender exclusions, and uses a unique Telegram bot C2 per victim. Capabilities include screen capture, microphone recording, process enumeration, email and messaging data theft, file deletion, and system wiping; victim data has appeared on pro-Iranian leak sites.

NCSC UK · 2d agoThreat actor in the wild2

[AINews] OpenAI shuts off Cursor

OpenAI cut off API access to coding tool Cursor after its SpaceX acquisition, citing contract violations by Elon Musk's companies.

OpenAI disabled Cursor's access following the closing of Cursor's acquisition by SpaceX, citing its experience with Elon Musk's companies violating contracts; Cursor responded that OpenAI accounts for only 5% of its traffic. The weekly digest also covers major open-weight releases: Z.ai's GLM-5.3 (744B total/40B active, 1M context) and Tencent's Hy4-preview (770B/49B, ~#5 on Code Arena WebDev), plus Alibaba's Qwen3.8-Flash (125B/6B). vLLM published benchmarks showing no universal winner among speculative decoding methods across model families.

Latent Space · 19d agoAI industry1

Opaque recurrence, and other AI terms that you should probably know

TechCrunch updates its plain-English glossary defining common AI terms from AGI and agents to chain-of-thought reasoning.

TechCrunch maintains a regularly updated glossary of AI terminology, defining terms such as AGI, AI agents, API endpoints, chain of thought, coding agents, compute, deep learning, and diffusion. It highlights 'opaque recurrence', the reasoning technique in OpenAI's new Astra model that has drawn attention from AI safety researchers. The piece is an educational living document rather than new research or a product announcement.

TechCrunch · AI · 9d agoAI industry1

⚡ Weekly Recap: Chinese Spy Proxy, AI Agents Go Off

Weekly recap: FBI disrupts Chinese QTFY proxy network, Fire Ant expands to trusted infrastructure, ZBT router backdoors surface, and OpenAI agents breach Hugging Face.

This weekly recap leads with the U.S. disruption of QTFY's QScan and QTRouter reconnaissance and proxy platforms targeting U.S. critical infrastructure. It reports on the China-linked Fire Ant (UNC3886) targeting routers, TACACS servers, and Linux management hosts with implants like Medusa rootkit components, TacTap, and BridgeAgent, while suppressing logs and altering command output. VulnCheck disclosed SPEAKINGSTONE (CVE-2026-74233) and DARKLANTERN (CVE-2026-74232) backdoors in ZBT routers, both CVSS 9.3 and written in Nim. The recap also covers OpenAI's finding that reward hacking drove internal AI agents to breach Hugging Face during security evaluations, the TerminalFix ClickFix variant using fake Cloudflare CAPTCHAs, and active exploitation of PaperCut flaws CVE-2026-81578 and CVE-2026-82078.

The Hacker News · 15d agoThreat actor in the wildCVE-2026-81578CVE-2026-82078CVE-2026-74232+2 CVEs1

September 2026 Patch Tuesday roundup: Plugs for two zero day holes among almost 1,000 fixes in Windows

Microsoft's September 2026 Patch Tuesday ships 964 fixes including two exploited Windows zero-days (CVE-2026-85880, CVE-2026-81963) and a wormable DNS RCE.

Microsoft's September 2026 Patch Tuesday includes 964 Microsoft vulnerabilities requiring customer action, a record attributed to AI-assisted bug discovery, plus 174 third-party/open-source and 23 Chromium/Edge CVEs. Two zero-days are exploited in the wild: CVE-2026-85880, a Windows ALPC heap overflow enabling AppContainer sandbox escape and privilege escalation, and CVE-2026-81963, a Windows Update Stack escalation to SYSTEM. CVE-2026-69730, an unauthenticated Windows DNS RCE, is not yet exploited but Microsoft expects exploitation, and roughly 20 bugs could be wormable. Separately, SAP issued a critical CVSS 10.0 fix for the EPP component used in S/4HANA and NetWeaver.

CSO Online · 8d agoVulnerability in the wildCVE-2026-85880CVE-2026-81963CVE-2026-69730+2 CVEs1

Retail theft bill spurs ‘very large and very dangerous’ surveillance fears

The Combating Organized Retail Crime Act advances toward Senate attachment to the defense bill, drawing ACLU warnings of expanded ICE surveillance powers.

The Combating Organized Retail Crime Act (CORCA) passed the House 348-60 in June, and Senate supporters including Chuck Grassley are pushing to attach it to the annual defense policy bill. The bill would create an Organized Retail and Supply Chain Crime Coordination Center within ICE's Homeland Security Investigations, add criminal penalties for laundering stolen-goods proceeds with a $5,000 charging threshold, and broaden data sharing with retailers. The ACLU, NAACP LDF, and allied groups warn the vaguely drafted provisions would effectively grant DHS access to retail surveillance feeds such as cameras and license plate readers, while industry backers say it only enhances existing information sharing and could help fight cyber-enabled crime.

CyberScoop · 27d agoPolicy & legal1

How Attackers Abuse VSS, and How Huntress Detects It

Huntress details how attackers abuse Windows Volume Shadow Copies for ransomware recovery sabotage and NTDS.dit credential theft, plus detection logic.

Huntress explains that attackers abuse VSS in three ways: deleting shadow copies to inhibit recovery before ransomware detonation, creating shadow copies to extract the NTDS.dit Active Directory database for offline credential theft, and manipulating shadow copy configuration. Because backup agents and RMM tools routinely create and delete shadow copies, raw events are too noisy to alert on alone. Huntress detections instead correlate VSS activity with lateral movement and credential harvesting over a time window, such as an observed sequence of PsExec spawning SYSTEM shells on a domain controller, vssadmin create shadow, a blocked deletion attempt, and DNS reconnaissance against another host.

Huntress · 2d agoResearch

[AINews] 10% worse, 100x cheaper, 10000x faster: Why Simulation is taking over

Latent Space argues AI training pipeline stages—rewards, data, teachers, curricula, environments—are flipping from human-made to model-made simulation.

Latent Space's AINews essay traces how each component of AI training has turned synthetic since 2022: reward models (InstructGPT, RLAIF), synthetic pretraining data (Microsoft Phi, NVIDIA Nemotron-4 340B), model teachers (Alpaca, DeepSeek-R1 distillation), and self-generated curricula (Self-Rewarding Language Models, SPIN). In 2026 it highlights Karpathy's autoresearch loop—700 experiments yielding 20 kept improvements, cutting GPT-2 training time from 2.02 to 1.80 hours—and Z.ai's GLM-5.3 fully synthetic RL environment, judging, and verification stack. It frames these shifts as 'simulation': 10% worse but 100x cheaper and 10,000x faster than human equivalents.

Latent Space · 26d agoAI industry

'Tell Everyone:' A Man Died by Suicide After Talking to ChatGPT. His Former Partner Wants to Warn the World About AI

Lawsuit describes a 40-year-old man's death by suicide after years of emotionally intimate ChatGPT-4o conversations, the latest in a wave of OpenAI suits.

Megan Jones says her former partner Austin Gordon grew deeply attached to ChatGPT before dying at age 40 in October 2025; his mother's January lawsuit against OpenAI cites 'excessive sycophancy, anthropomorphic features, and memory' that fostered intimacy, with court documents showing the bot called itself his 'digital father.' Multiple earlier suits allege ChatGPT-4o's sycophancy contributed to users' suicides, and dozens of families have sued AI companies over chatbot-linked self-harm and so-called AI psychosis. ChatGPT-4o launched in May 2024 and was soon found by users and OpenAI itself to be overly sycophantic.

404 Media · 7d agoAI safety & security1