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AI Security Takes Centre Stage: Hackers Warn Systems Are Still Shockingly Vulnerable

2025 marks a dramatic shift in the AI landscape—what was once a dialogue about AI “safety” has quickly transformed into a focus on AI “security.”

Since the debut of ChatGPT in late 2022, conversations around AI have often veered into the hypothetical, with alarmist warnings about existential threats: rogue AI causing global crises, or out-of-control systems undermining humanity. But in a surprising turn, the real and immediate security risks AI poses have begun to dominate discussions.

The State Of AI Security: Far From Secure

Security experts are making it clear: AI systems remain frighteningly easy to manipulate. These tools—designed to power everything from chatbots to self-driving cars—are still riddled with vulnerabilities. At this point, hackers can trick large language models (LLMs) into providing detailed guides on cyberattacks or exposing sensitive data. The risk is not just theoretical—deepfake videos could spread fake news, or chatbots could be weaponized for scams. These aren’t future threats—they’re happening now.

Even as companies scramble to patch AI security holes, a report from the 2024 Def Con hackers’ conference points out that current defenses are woefully inadequate. Despite the best efforts of ethical hackers, AI models continue to be alarmingly easy to break into, with major flaws still slipping under the radar.

Why Red-Teaming Isn’t Enough

At the heart of AI security efforts is a practice called “red teaming,” where companies stress-test their models by simulating potential attacks. The aim is to uncover weaknesses like misinformation, privacy leaks, or manipulation of model behavior. However, experts like Sven Cattell, founder of Def Con’s AI Village, aren’t convinced. Cattell argues that the current process is deeply flawed—AI systems are too complex and unpredictable for red-teaming to catch every potential vulnerability. He points out that no team, regardless of its size or expertise, can predict all how AI might be exploited. As he puts it, the unknowns in AI security will always outpace testing efforts.

Collaboration Is Key To AI Security

The way forward, Cattell insists, is collaboration. Just like traditional cybersecurity, AI security requires shared knowledge and a more coordinated approach to identifying and fixing vulnerabilities. Without a standardized system for reporting AI flaws and a public database to track these issues, the security of these systems will remain in jeopardy. Without this cooperation, AI will never be fully secure.

To truly safeguard AI models, experts urge the creation of dedicated frameworks, allowing developers to share vulnerabilities and fix them collectively. This is not just about building a secure system; it’s about creating a culture of collaboration across industries to prevent AI from being exploited by malicious actors.

In a world where AI’s role continues to expand, its security must become just as sophisticated as the systems it powers. Now is the time to act before these vulnerabilities spiral into real-world dangers.

Central Bank Of Cyprus Balance Sheet Reflects Strong Eurosystem Position

Overview Of Financial Stability

The Central Bank of Cyprus (CBC) has released its latest balance sheet, reaffirming its steadfast role within the Eurosystem. The balance sheet, featuring total assets and liabilities of €29.545 billion, underscores the institution’s stable financial posture at the close of January 2026.

Asset Allocation And Strategic Holdings

Governor Christodoulos Patsalides issued the balance sheet, which details the CBC’s asset composition under the Eurosystem framework. Notably, the bank’s gold and gold receivables amounted to €1.635 billion, providing a significant hedge and stability to its balance sheet. Additional asset categories include claims on non-euro area residents denominated in foreign currency at €1.099 billion, while claims on euro area residents in both foreign and domestic currency add further depth to its portfolio.

The most substantial asset category, intra-Eurosystem claims, reached €19.438 billion, an indication of the CBC’s deep integration with its European counterparts. Furthermore, euro-denominated securities held by euro area residents contributed €6.587 billion. Despite a marked emphasis on these areas, lending to euro area credit institutions in monetary policy operations recorded no activity during the period.

Liability Structure And Monetary Policy Implications

On the liabilities side, banknotes in circulation contributed €3.218 billion. Liabilities to euro area credit institutions associated with monetary policy operations were notably the largest single category, totaling €17.636 billion. Supplementary liabilities included those to other euro area residents, which aggregated to €4.989 billion, with government liabilities playing a predominant role at €4.754 billion.

Other liability items, such as claims related to special drawing rights allocated by the International Monetary Fund at €494.193 million, and provisions of €596.571 million, further articulate the CBC’s exposure. Revaluation accounts stood at €1.643 billion, and overall capital and reserves were confirmed at €333.822 million, completing the picture of a well-capitalized institution.

Conclusive Insights And Strategic Alignment

The detailed breakdown illustrates the CBC’s sizeable intra-Eurosystem exposures, reinforcing its central role within Europe’s monetary landscape. With an asset-liability balance maintained at €29.545 billion, the CBC’s financial position remains robust, indicating a commitment to structural stability and strategic risk management.

This fiscal disclosure not only provides transparency into the CBC’s operations but also serves as a benchmark for comparative analysis among other central banks within the Eurosystem, highlighting the intricate balance between asset liquidity, regulatory oversight, and monetary policy imperatives.

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