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AI, huge hacks leave consumers facing a perfect storm of privacy perils

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Hackers are using artificial intelligence to mine unprecedented troves of personal information dumped online in the past year, along with unregulated commercial databases, to trick American consumers and even sophisticated professionals into giving up control of bank and corporate accounts.

Armed with sensitive health information, calling records and hundreds of millions of Social Security numbers, criminals and operatives of countries hostile to the United States are crafting emails, voice calls and texts that purport to come from government officials, co-workers or relatives needing help, or familiar financial organizations trying to protect accounts instead of draining them.

“There is so much data out there that can be used for phishing and password resets that it has reduced overall security for everyone, and artificial intelligence has made it much easier to weaponize,” said Ashkan Soltani, executive director of the California Privacy Protection Agency, the only such state-level agency.

The losses reported to the FBI’s Internet Crime Complaint Center nearly tripled from 2020 to 2023, to $12.5 billion, and a number of sensitive breaches this year have only increased internet insecurity. The recently discovered Chinese government hacks of U.S. telecommunications companies AT&T, Verizon and others, for instance, were deemed so serious that government officials are being told not to discuss sensitive matters on the phone, some of those officials said in interviews. A Russian ransomware gang’s breach of Change Healthcare in February captured data on millions of Americans’ medical conditions and treatments, and in August, a small data broker, National Public Data, acknowledged that it had lost control of hundreds of millions of Social Security numbers and addresses now being sold by hackers.

Meanwhile, the capabilities of artificial intelligence are expanding at breakneck speed. “The risks of a growing surveillance industry are only heightened by AI and other forms of predictive decision-making, which are fueled by the vast datasets that data brokers compile,” U.S. Consumer Financial Protection Bureau Director Rohit Chopra said in September.

With no federal privacy legislation to stem the flood, national security experts fear that foreign spy agencies will keep vacuuming up everything they need to hack, recruit or blackmail officials with sensitive missions, debts and embarrassing personal secrets. “Six or seven years ago, people said there was too much data; adversaries don’t know what to do with it,” CFPB Senior Counsel Kiren Gopal told the Washington Post. “Now they have AI tools to sift through for things that are actually useful.”

It is far from clear what the arrival of President-elect Donald Trump’s administration will mean for privacy efforts. His campaign platform does not mention the topic but does commit to a massive deportation of immigrants and slashing regulations, which suggests that the government will be a major consumer of location data and that it would not be inclined to limit its collection. Spokespeople for Trump didn’t respond to emailed questions.

Regulators aren’t waiting to find out. Chopra’s consumer bureau on Tuesday proposed restricting the sale of sensitive but nonfinancial data, such as Social Security and phone numbers and street addresses, the same way that credit and salary histories are limited. Under the new rules, those could not be sold for marketing, but only for approved purposes such as employment background checks, law enforcement needs or identify verification.



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Eli Hart’s family settles lawsuit with Dakota County for $2.25 million

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The family of 6-year-old Eli Hart, who was shot and killed by his mother in 2022, on Wednesday reached a $2.25 million wrongful death settlement with Dakota County.

The lawsuit, which was filed three months after Eli’s death, accused the county’s Social Services department of gross and willful negligence when it returned Eli to the custody of his mother, Julissa Thaler.

“It is definitely a bit of a relief just to have some resolution to this very long case,” said Josephine Josephson, Eli’s stepmother. “It’s a lot of stress to have an ongoing case with a delicate subject.

“I think Dakota County, obviously, they agreed to our settlement without taking any faults. But I think that they truly know that something did go wrong and that they should make corrective actions.”

The settlement stipulates that $1.2 million be paid to Eli’s father, Tory Hart. Three of the boy’s grandparents will receive $25,000 each. The balance of the settlement will cover attorney fees and other costs.

In the years since Eli’s death, his family has created the Eli Hart Foundation. Josephson said Wednesday that the settlement will help the organization establish a scholarship fund and create a legal assistance service for parents who don’t have the means to fight for custody of their children.

“It’s a scary place to be,” Josephson said.



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UMN students without heat during frigid cold snap

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At least 100 University of Minnesota students living in Comstock Hall had no heat in their dorm rooms this week as temperatures dipped below freezing.

Officials say the issue was expected to be resolved by Wednesday night. About two-thirds of the dorm rooms in Minneapolis on the East Bank were fixed by mid-afternoon.

University officials said about 100 out of the hall’s 356 total rooms were affected by the lack of heat, first reported by FOX 9. Last week, maintenance began receiving a higher-than-normal number of requests to fix heating in dorm rooms, though some reports had been made earlier, said Susan Stubblefield, the U’s director of housing and residential life.

“Due to the nature of the heating system in the building, the scope of the problem was not known until reported by residents in each individual room,” Stubblefield said.

A warm fall season and having students leave for the holiday break meant the “full impact of the issue was unknown until the temperatures dipped in recent days,” she said.

Mechanics began working extended hours, including over the Thanksgiving weekend, to make repairs, Stubblefield said.

Air pockets had entered the heating system when maintenance was conducted during the system’s transition from cooling to heating, and that affects the system’s efficiency. The pockets affected some units more than others, Stubblefield said.

To fix things and regain full efficiency, maintenance staff has to clear out the air pockets from the fan coil unit in each individual room. Students were given electric space heaters until maintenance could get to their rooms, Stubblefield said. It’s possible some additional rooms could be affected.



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Duluth man pleads guilty to criminal sexual conduct with girls

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DULUTH – With freshly selected jurors waiting nearby for the start of an expected days-long trial, a Duluth man facing criminal sexual conduct charges took a last-minute plea deal instead of facing the women he abused when they were children.

Clint Franklin Massie, 49, pleaded guilty Wednesday morning at the St. Louis County Courthouse to the four counts from incidents dating back to 2008-09 when two of his victims were young girls. The deal dismissed one of the counts against him. His sentencing is scheduled for March 20, and he could end up with more than nine years in prison. Massie, who was initially charged in February 2023 and has been out on $300,000 bail, was released until his sentencing.

In each case, the victim was known to Massie — whether they were related or through their shared membership at Old Apostolic Lutheran Church. He was friends with their parents and regarded as a fun, child-free uncle, according to reports from the investigation.

Assistant St. Louis County Attorney Michael Ryan told the court that the victims were satisfied with the deal.

“They have been involved in talking this through,” he said to Judge Dale Harris.

After Massie pleaded guilty, would-be witnesses and their supporters filed into the courtroom filling rows. Massie, dressed in a dark suit coat and khaki pants, turned to look. Ryan questioned him on the victims’ accusations — four specific scenarios where he had touched girls: during a sleepover at his house, when alone on a tractor, or beneath a blanket while others were in the room.

Massie said in court there were a lot of big gatherings and shared meals within this the group. It wasn’t unusual for one of the many children to sit on his lap.

At times Massie paused and said he couldn’t remember exact details or motives. At other times he deferred to what he told investigating officers last year. In each instance he ultimately agreed with the scenario presented by the prosecution.



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