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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.

EU E-Commerce VAT Systems Generate €257.9 Million Revenue for Cyprus in 2024

Robust Revenue Growth Through Streamlined VAT Collection

Cyprus has demonstrated a significant fiscal boost in 2024 with €257.9 million generated from the European Union’s e-commerce VAT systems, according to Tax Commissioner Sotiris Markides. This impressive performance underscores the effectiveness of the One Stop Shop (OSS) and Import One Stop Shop (IOSS) frameworks in simplifying cross-border tax compliance.

Simplified Procedures for EU and Non-EU Businesses

The OSS system allows Cyprus-registered businesses to streamline VAT declaration and payment on sales to consumers in other EU countries. Companies simply register on the local OSS platform, apply the consumer’s VAT rate, aggregate their submissions quarterly or monthly, and remit a single consolidated payment. Subsequently, Cyprus allocates the appropriate share to each respective EU country. This efficient process extends to non-EU sellers as well, who can have their intra-EU distance sales managed under the Union Scheme.

Breakdown of VAT Revenue Streams

Last year’s declarations under the various schemes illustrate the system’s broad reach: €217.9 million was collected via the Union Scheme, €36.9 million through the Non-Union Scheme, and €3.1 million via the Import Scheme. While the Union Scheme caters to both EU and non-EU sellers engaging in distance sales, the Non-Union Scheme specifically accommodates non-EU firms delivering services to EU consumers. Furthermore, the Import Scheme targets goods valued at less than €150 that are imported from outside the EU.

Implications and Broader Impact

Implemented in July 2021 as an evolution from the more limited MOSS system, these reforms have not only consolidated tax collection through an expansive OSS but also integrated the IOSS for low-value imports. By designating certain online marketplaces as “deemed suppliers,” the new framework ensures that VAT collection is both efficient and equitable. Across the EU, these mechanisms have generated over €33 billion in VAT revenues in 2024, reflecting a successful effort to simplify tax compliance, reduce administrative burdens, and promote fair taxation across the bloc.

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