Russian forces struck several districts of Kyiv late on 12 October with what the Air Force called, by preliminary data, six ballistic missiles. For once, the air-raid alert reached people only after the attack had begun, Ukraine’s Air Force reported.

Reports of Russian ballistic launches are part of the intelligence the US shares with Ukraine, and that data is what lets sirens sound before the missiles arrive, giving civilians a few minutes to hide. Those minutes save lives, which is why the warning gap landed hard amid fears that Washington could cut Ukraine off from such intelligence amid US President Donald Trump's agreement with Russia to let its diesel into the US.

The alert came late because Ukraine’s radar detected the ballistic targets only during the attack, with no advance data on launches from Russian territory, according to the Air Force.

“No information was received about launches from enemy territory. The causes are being established,” the Air Force said.

The stakes are human, presidential adviser Serhii Beskrestnov, known as Flash, stressed.

“This information is needed first of all by civilians, so that people have time to hide in a shelter,” he said.

Beskrestnov says he does not want to believe the US would leave Ukraine without that data because it is a matter of civilian survival. He urged caution on the cause, saying there were nuances and that it was too early to draw conclusions.

When the sirens fall behind the missiles

However, Ukraine usually sees the launches first. The warning system normally flags Russian ballistic launches before the missiles reach their targets, giving people time to move, but on 12 October, that did not happen, the Air Force noted.

Beskrestnov later added a note of doubt about what flew. The suspected S-400 missiles were not being recorded by partners’ intelligence services, he wrote, stopping short of blaming the lapse on a loss of US data.

Two cities hit within the same hour

The damage in Kyiv was concrete. A missile struck a transport-infrastructure site in the Dniprovskyi district, and another hit a four-story warehouse in the Desnianskyi district, Mayor Vitali Klitschko said.

Russia struck Kharkiv at about the same time with nine S-8000 Banderol loitering munitions, Mayor Ihor Terekhov reported. One of the last strikes hit a residential building, where people may be trapped under the rubble and a fire is burning.

“Very serious destruction, an entire stairwell collapsed,” Terekhov said.

Ukraine’s Defense Intelligence (HUR) released information on the components of Russia’s Kinzhal air-launched ballistic missile and the companies involved in its production, according to a statement dated 12 October.

Russia has used Kinzhal missiles to strike targets across Ukraine since the start of its full-scale invasion. However, 22 of the 58 companies in Russia’s Kinzhal production network are not subject to sanctions, the intelligence agency noted.

Kinzhal missile: design, components, and production changes

Ukraine’s Defense Intelligence has published an interactive 3D model of the Russian Kinzhal missile on its War&Sanctions portal.

The 9-S-7760 missile, known as the Kh-47M2 Kinzhal, uses solid fuel and has a single stage. This means the missile does not consist of multiple stages that separate sequentially during flight. About 90% of its components are identical to those used in the 9M723 ballistic missile of the Iskander-M system, HUR noted.

The Kinzhal is equipped with a radar homing seeker, an active jamming station, and a decoy deployment system, according to the statement. The homing seeker helps the missile determine the direction to its target, while decoys are designed to make interception by air defense systems more difficult.

The missile can carry one of two types of warheads: a penetrating high-explosive warhead or a nuclear warhead. Russia is also developing a version with a high-explosive fragmentation warhead that strikes targets through an explosion and fragments. HUR believes this development may be linked to problems with the missile’s accuracy.

In 2026, Russia significantly reduced its state procurement order for Kinzhal missiles and redirected some production resources, components, and raw materials towards manufacturing Iskander-M missiles, HUR noted. Another reason is the limited number of MiG-31I and MiG-31K aircraft used to launch Kinzhal missiles, the intelligence agency reported.

Ukraine intercepts Kinzhal missiles, but has limited resources to do so

Despite their high speed, Russian Kinzhal missiles can be intercepted using US-made Patriot surface-to-air missile systems. In particular, PAC-3 interceptor missiles are designed to destroy ballistic targets and can be used against threats such as the Kinzhal and Zircon, Ukraine’s Ministry of Defense reported.

Ukraine is seeking additional Patriot interceptor missiles to defend against Russian ballistic attacks during the winter.

Most of the approximately 1,000 missiles Kyiv has contracted for are not expected to arrive for several years, prompting Ukraine to ask its allies to supply missiles from their existing stockpiles, Defense News reported on 12 October 2026.

Sanctions loopholes allow Russia to obtain foreign components for Kinzhal missiles

Russia continues to use foreign components in missile production despite sanctions. For instance, the US-made Texas Instruments processors were found again in a newer version of the Kinzhal missile, Ukrainian presidential commissioner for sanctions policy Vladyslav Vlasiuk said in September, Interfax reported. According to him, foreign electronics continue to reach Russia through various supply channels.

Earlier, Ukraine had provided its partners with information on more than 100 Russian companies involved in ballistic missile production and urged them to impose sanctions on those entities, according to the President's Office.

On 12 October, the EU Council imposed sanctions on 1,569 individuals and entities linked to Russia’s military-industrial complex, including 826 Russian companies and 743 company CEOs.

Ukraine has published data on 20 vessels that carry Russian oil and liquefied natural gas or refuel the sanctioned fleet, parts of the logistics network the Kremlin uses to fund its war, Ukraine's Defense Intelligence reports. All 20 are under British or Ukrainian sanctions, and only one faces US restrictions.

Russia’s shadow fleet runs on roughly 500 aging ships of uncertain ownership that dodge sanctions and keep oil money flowing. That seaborne oil trade is worth more than 80 billion euros a year.

The headline vessel is the Russian ship Portovyy, an LNG carrier and floating gas store owned by the sanctioned Gazprom since 2021, according to the agency. On 15 August 2026, it left the Gulf of Finland with Russian LNG for the first time since November 2021, sailing the Northern Sea Route to the Chinese port of Beihai to unload.

Portovyy is now at the Zhoushan Huafeng Shipyard in China, which has been set as the site for its maintenance, intelligence says, an example of the foreign yards Kyiv wants closed to the sanctioned fleet.

Russia buys up gas carriers through shells

Two more gas carriers show how Moscow expanded the fleet in spring 2026 through front companies, intelligence said. The Avacha, once owned by China’s Jovo Energy, was bought by the little-known Tudor Maritime of the Marshall Islands, took the Russian flag in June, and now ships gas from the Arctic LNG 2 project to Beihai.

The Chaivo, formerly owned by Greece’s Maran Gas Maritime, was also bought by Tudor Maritime and moved under the Russian flag in July. Now it carries cargo to Beihai from a floating gas storage facility off Kamchatka, intelligence says.

A call to close the loopholes

Intelligence urged partners to act together: tighten control over sales of commercially owned ships, block servicing of the sanctioned fleet at foreign yards, and cut off the energy revenue that Russia turns into weapons against civilians.

Russia is building ice-class ships at home and, at the same time, widening its shadow fleet through offshore networks. The UK Foreign Office made the same point on 1 October, saying Moscow is assembling a new shadow fleet to keep its gas revenues flowing.

Russian forces appear to use AI to plan air attacks and recognize targets amid raids on Ukrainian cities. This may include recent air attacks on Odesa that have come in waves with short gaps, Deputy Air Force Commander for Air Defense Colonel Yurii Cherevashenko says, Ukrinform reports.

Russia has already equipped its jet-powered Geran-4 drones with machine vision, allowing them to recognize and track targets on their own in the final seconds of flight. Recently, a single jet drone hit a locomotive in Odesa Oblast in late September and killed two railway workers.

The scale of Russia's AI use is hard to measure, Cherevashenko continues, but Ukrainian specialists already see its elements in how attacks are organized. The long, wave-by-wave strikes on Odesa would be far harder to plan and coordinate without it, he believes.

"Russian forces use AI to lay out attack routes and to recognize targets," Cherevashenko says, framing it as his own assessment rather than a confirmed fact.

The sea is harder to defend than land

Odesa Oblast is home to the biggest port in Ukraine, "Southern". Protecting it is a challenging task as guarding the airspace over water is tougher than over land, Cherevashenko says. Some air defense assets do not perform as well at sea, and in some cases, crews can intercept a target only as it approaches.

Weather adds to the problem, with storms and fog, while the open sea gives Russia more freedom to choose drone routes and launch points. To protect ports and the coast, Ukraine uses drone motherships, platforms that carry other drones aloft to extend their flight time and keep watch over set areas.

Ukraine answers AI with AI

Ukraine is also building its own AI for air defense. Automated turrets using machine vision now help counter Russian drones. According to Army Media, the Air Force says such turrets have scored their first shoot-downs, including of Geran-5 jet drones, with one soldier saying 50 rounds were enough to bring down a Geran.

Ukraine's Defense Ministry is going further. In late September, it unveiled an AI system called SPECTR, built by its A1 Artificial Intelligence Center and already in testing with several combat units, to analyze battlefield data, predict Russian moves, and suggest options to commanders.

Russia's Kalashnikov concern has met its annual arms contract. The top producer of small arms has announced it delivered a batch of classic 7.62mm Dragunov sniper rifles to a Russian Security Forces customer and fully met its 2026 contract on time

The delivery shows how little the sanctions regime slows Russia's arms maker. In February 2026, Ukraine's Defense Intelligence said that nearly half of Kalashnikov's plants were still not subject to sanctions by any coalition country. Eight months later, the concern reports a full year's order delivered on schedule.

"The items were shipped on the set deadline, the obligations under the 2026 contract fully met," the manufacturer said.

A rifle in service for six decades

The weapon in that batch is not new. Designed by Yevgeny Dragunov between 1958 and 1963, the Dragunov sniper rifle entered serial production at the Izhevsk machine-building plant in 1963, so in 2026, it has remained in serial production for more than 60 years.

The self-loading 7.62mm rifle is meant to hit personnel and unarmored targets at ranges up to 800 meters, the concern said. It uses gas-operated automatics with a short-stroke piston and a gas regulator, and can fire any 7.62x54R round, though sniper ammunition yields the best grouping, according to the maker.

Sanctions chase a moving network

The sniper rifles are only one line in Kalashnikov's output. Russia's defense industry has leaned heavily on refurbishing Soviet-era armor as newer reserves run low, with Ukraine's intelligence reporting in June 2025 that Russia had begun deploying 1960s-era T-62 tanks.

The restoration work was centered primarily at the 103rd Armored Repair Plant in Atamanovka, Trans-Baikal Territory of Siberia. Ukrainian intelligence documented the transfer of 21 T-62 tanks from the eastern region to the western part.

Small arms are a different line of production, built new rather than pulled from storage. That is why a 1963 design keeps rolling off the line while the sanctions net, as Ukraine's intelligence describes it, still has holes.

Russia is preparing to make daily life in Kyiv harder before winter, aiming at the ordinary places civilians use rather than at military sites, The Economist reported. Ukrainian officials say the push blends bombing, sabotage, and disinformation, and expect it to peak in November.

Every winter of its full-scale invasion, Russia has tried to freeze Ukrainians into surrender, and each year the strikes reach deeper into ordinary life. The civilian casualties recorded in 2026 have already passed the whole of last year, the UN says.

From the power grid to the grocery store

Russia has already turned its drones on Kyiv's supermarkets, food warehouses, and data centers this year. On 28 September, a Russian jet drone struck the National Academy of Sciences in central Kyiv. The strike killed two people, the Academy said. Survivors climbed from the windows of the burning building. A senior Ukrainian official told The Economist the Kremlin now wants shoppers too afraid to enter a store. Russia is also keeping its winter routine, hitting electricity, water, and sewage systems.

Cheaper jet drones that stream live to their pilots

Most of the damage now comes from Russia's cheap jet drones, The Economist said. Pilots guide them onto targets and watch a live video feed. They are hard to stop, and Russia's ballistic missiles are deadlier still as Ukraine's supply of Patriot interceptors dwindles. Ukrainian President Volodymyr Zelenskyy said Kyiv had agreed a new Patriot interceptor package, but it remains short of interceptors of its own. A security official told The Economist that Russia has thousands of drones stockpiled and plans to use its entire ballistic missile stock within two months.

Explore further

War is costing Ukraine $155 billion per year. With Western aid running late, Kyiv is freezing everything but army, pensions, and public wages

Sabotage, chaos, and a city that won't switch off

Ukraine's counter-intelligence services say they foil seven or eight Russian plots a week, and officials believe some sleeper cells remain. The campaign's third element, disinformation, targets war fatigue and corruption scandals. Russia runs the same plan every year, hoping its bot farms will push Ukrainians onto the streets to demand surrender, said Andrii Kovalenko, who heads the Center for Countering Disinformation at the National Security and Defense Council.

"It's nonsense," he told The Economist, adding that someone is feeding the idea to Putin so they can steal more money.

Kyiv is also far harder to shut down than Moscow assumes, Kovalenko said. The city's internet is too decentralized for a handful of strikes to knock out, The Economist noted. Energy expert Olha Babii said the test is how fast crews restore power, not whether it can be destroyed. The capital is emptying, its population down from about 3.7 million to 3.3 million by The Economist's count.

Russian intelligence services have sharply stepped up building websites and social media pages that impersonate Ukrainian state bodies and media, the Security Service of Ukraine (SBU) warned. Moscow uses the fakes to spread disinformation and to steal personal data it can turn into spy recruitment. The SBU says it has already blocked dozens of clones of its own brand.

Counterfeit pages built for propaganda and data theft

The fake sources serve Russian psychological operations and disinformation campaigns, the SBU said on 28 September. Their aim is to destabilize the situation inside Ukraine and damage its position abroad. Russian intelligence also uses them to extract Ukrainians' personal data, the agency said.

Alongside its full-scale invasion, Russia wages war on Ukraine in the cyber domain and through espionage and sabotage. Every agent Russia recruits inside Ukraine can help steer missiles and drones onto targets, and the SBU keeps catching such recruits.

Hacked accounts become recruitment leads

Russians often hack the accounts of users who subscribe to the fake pages and messenger channels, the SBU found. They then use the stolen information for recruitment operations and to collect confidential data.

Moscow is most interested in the combat and operational work of Ukraine's defense and security forces, the agency said. The SBU's cybersecurity department found and blocked more than 50 resources that copied the agency's own branding and positioning.

The fake pages are not Russia's only digital tool. Earlier in September, Anthropic said it had caught Russian spies running a campaign against Kyiv on its Claude AI chatbot.

Explore further

Poland and the Baltics risk Russian sabotage for backing Ukraine, Bloomberg says

How Ukrainians can protect themselves

The SBU urged citizens not to follow suspicious links and to rely only on official sources. Anyone who sees a dubious web address, or gets a message from someone posing as an SBU officer, should call the 1516 hotline, the agency said.

What Russia's recruits are sent to do

The SBU's own reports from the past week show what Russia's recruits are tasked with. A mobilized soldier allegedly recruited by the FSB, Russia's Federal Security Service, tried to direct a Russian missile strike on his own unit in Kharkiv Oblast, the SBU said. His repair battalion restores Ukrainian drones.

A Lviv Oblast resident who worked at a drone production site in western Ukraine was allegedly recruited to guide a missile strike on it, the agency reported. The strike was meant to disrupt the steady supply of strike and reconnaissance drones to Ukrainian troops, the SBU said.

A court also sentenced a 17-year-old agent of Russia's military intelligence (GRU), exposed in November 2024, to 10 years in prison, the SBU announced. She tracked Ukrainian air defenses in Chernihiv Oblast under the cover of taxi rides. She talked to her GRU handler through an anonymous messenger chat.

Russia has quietly started a new round of mobilization and plans to bring in more North Korean troops, Ukrainian President Volodymyr Zelenskyy said. He cited a new report from Ukraine's military intelligence. The same day, the Kremlin published a decree enlarging Russia's army for the fourth time this year.

Russia widens recruitment at home and abroad

Zelenskyy spoke in his evening address on 28 September, after a briefing from Ukraine's military intelligence (HUR).

"In effect, the Russians have already begun additional mobilization—they are increasing the number of people they recruit through various means," he said.

Moscow also plans to recruit more foreigners, Zelenskyy said. He urged the governments of countries whose citizens Russia recruits to counter it, and said Kyiv would inform each of them.

Ukraine says Russia has been losing soldiers faster than contract recruitment replaces them. If so, an unannounced call-up lets the Kremlin refill its ranks without a formal draft. ISW says Putin may hold off on such a draft until he sees whether his strikes work. Ukrainian intelligence had expected Russia to announce a mass mobilization after this month's State Duma elections.

More than 8,000 North Koreans in Russia, 10,000 more in preparation

More than 8,000 North Korean troops are currently on Russian territory, Zelenskyy said. Pyongyang is selecting another 10,000 for training and deployment to Russia, he added.

Russia is paying, among other things, with technology, according to Zelenskyy. North Korea has launched production of Shahed-type attack drones with Russian technical support, he said.

That is a step beyond what Kyiv reported in June 2025. Moscow and Pyongyang had then only agreed to start preparing such production. In August, Zelenskyy warned that Russia could receive up to 50,000 North Korean troops.

Explore further

North Korean missile unit deploys to Russia for ballistic strikes on Ukraine, Kyiv says

Kremlin raises the army's size again

Putin's decree sets the authorized strength of Russia's armed forces at 2,441,630, including 1,550,500 military personnel, Vedomosti reported. The decree gives no reason.

The order adds 15,500 troops and is the fourth such increase this year, Euronews said. Since March, the combined increase has reached 47,860 soldiers. Putin's 2022 "partial mobilization" decree also remains in force, the outlet noted.

Explore further

Russia could open northern front by February if it orders new mobilization, Ukraine intel says

Moscow keeps denying a call-up

In early September, Putin claimed that reports of a coming mobilization were "complete nonsense" and "an information attack on Russia." Russian officials gave similar assurances days before the 2022 call-up.

Ukraine's military and foreign intelligence had earlier said that Russia's General Staff prepared a scenario to mobilize 600,000 people over 2026 and 2027, 300,000 each year.

Ukraine's defense forces intercepted 55% of Russia's jet-propelled drones in September—more than 1,500 out of over 2,730 launched—Ukrainian President Volodymyr Zelenskyy said in his 26 September evening address.

Russia's full-scale aerial campaign has shifted from propeller-driven Shaheds Ukraine learned to shoot down at over 90% to jet-propelled models that fly faster, resist jamming, and often slip past existing defenses.

55% and climbing

Zelenskyy said military intelligence had briefed him on Russian weapons production—not just jet Shaheds but other technological systems. The documents detail what Moscow is preparing for next year: the volumes and the financing. "We are preparing our countermeasures, and for every line item there must be a Ukrainian answer," he said.

Several effective interceptor prototypes are already in combat.

"Interceptors have been identified that can become the main tool of our defense. Production, components—all of this we are scaling up. There will be an answer," Zelenskyy said.

The goal is to match the interception rate for regular propeller-driven Shaheds, which exceeds 90%. At 55%, the jet-drone rate is climbing but still leaves nearly half reaching their targets.

$12 billion for one category

Russia plans to spend $12 billion in 2027 on jet drones and loitering munitions alone, Zelenskyy said. "This concerns not only Ukraine and not only us," he added, warning that multiple intelligence agencies have information Russia wants to expand its war to other countries and regions.

He said this is why Ukraine is pushing for stronger sanctions and the Drone Deal format. Ukraine has signed 11 such agreements, the latest with Finland at the UN General Assembly this week, and is preparing a 12th with what Zelenskyy called "a strong country."

The warning came as Russia struck a Kyiv data center twice on the morning of 27 September, injuring three people including two children, Zelenskyy wrote. Overnight strikes killed three people in Zaporizhzhia Oblast and one man in Kyiv.

In total this week, Russia launched more than 2,200 strike drones, roughly 1,650 aerial bombs, and 38 missiles—a significant share of them ballistic—at Ukraine, he said.

Explore further

A $50 computer just flew Russia’s newest jet drone into a Ukrainian grain ship—and jamming couldn’t stop it

Jet drones are now Russia's main aerial weapon

Russia's jet-propelled Geran-4 and Geran-5 drones have become the dominant threat in Russia's aerial campaign against Ukrainian cities. By August, production of jet Geran-4/5 models exceeded that of propeller-driven Geran-2s, according to Ukraine's military intelligence (HUR). Russian factories produce roughly 3,000 jet models per month alongside about 2,800 of the older type. The Geran-5 is technically a drone but functions as a small cruise missile—faster, harder to jam, and increasingly guided by AI and mesh networking that complicate interception.

Ukraine's answer has been interceptor drones—cheap, fast enough to chase a Geran, and guided by machine vision. A Ukrainian interceptor recently scored its first kills against jet Gerans and is heading into mass production, though a presidential adviser warned that speed alone cannot catch them—machine vision and automatic guidance decide the chase.

Ukraine is building an artificial intelligence system to analyze battlefield data, help commanders plan operations, and forecast Russia's possible moves, its Defense Ministry said. The system keeps the data it runs on behind a protected perimeter.

The logic behind the project: Ukraine can already read the battlefield from drone footage and sensor feeds, but converting that picture into orders is the harder, still-human half where wars are decided.

What SPECTR is built to do

SPECTR comes from A1, the AI center inside Ukraine's Defense Ministry. Its head, Danylo Tsvok, said Ukraine holds a unique store of data on how this war is fought, and SPECTR is designed to help turn that into a real edge on the ground.

The system is built to analyze incoming information, spot patterns, draft recommendations for planning operations, and automate the routine work in headquarters. Troops would work with frontline information faster.

"Essentially, we are building an operating system for warfighting. It will help the military choose effective courses of action and predict the enemy’s possible moves," Tsvok said.

SPECTR will run inside systems the Defense Forces already use, and on local devices set aside for sensitive data.

The center behind an AI-driven army

The ministry set up A1 in March 2026 with backing from the UK government, aiming to turn AI into Ukraine's battlefield advantage and build an "AI-driven army." That effort runs along three tracks: faster, data-based decisions, AI built into weapons and less bureaucracy in the ranks. The center is working on three flagship projects. Some of its solutions are already being tested by units.

Ukraine is opening its battlefield data to British weapons makers so they can train their AI on a war no one else has fought. Up to 12 British defense companies will join Avengers Labs, Ukraine's platform for training AI models for drones and robots on real combat data, the Defense Ministry said.

Ukraine's combat data is a resource no other military has access to. British firms get to build and test their AI on battlefield data they could not access elsewhere, while Ukraine gets their technology and joint development of AI for unmanned systems.

What is Avengers Labs?

More than 30 Ukrainian companies already use the Avengers Labs, and three of their systems have reached the battlefield. It is part of the AI push former Defense Minister Mykhailo Fedorov built around Ukraine's data.

The terms are built around control. The British companies can develop and test their own AI models within Avengers Labs, the ministry said, but the data remains within the platform's protected environment, with no way to download it or take it out. That lets Ukraine share the value of its war experience, the annotated record of real combat, without surrendering the record itself.

The platform was developed by the Center for Innovation and Development of Defense Technologies, the team that created the DELTA combat system. At the core of Avengers Labs is an annotated dataset of 5 million frames collected on the battlefield. Most of this material comes directly from the DELTA combat system and is continually supplemented with new data of practical value in combat conditions.

Britain trains for a real war

In March 2026, Ukraine announced the establishment of a system of military technology competence centers. The first in the network was intended to be the Defense AI Center "A1," which would focus on AI solutions.

The AI center is being launched with support from the UK. Its main tasks were planned to be:

analysis of combat data;

forecasting enemy actions;

development of autonomous systems;

new management/control tools

A separate center was said to have been established for each key direction of the war: drones, mid-range strike, deep strike, artillery, and others.

Since Madagascar’s October 2025 coup, Russian military personnel have joined the parliament speaker’s security detail, and Russian instructors have begun training Malagasy soldiers, RFE/RL reported. OSINT investigators traced a flight carrying a senior Russian military intelligence officer and 40 of Russia's Africa Corps members to the island on 20 December 2025.

Madagascar’s new leadership has welcomed Russian military assistance, while Moscow has pursued media projects, energy talks, and the possible recruitment of Malagasy workers. RFE/RL says the prospective destination is Alabuga, a plant producing drones used against Ukraine. Elsewhere in Africa, Russia has sent troops, sought access to resources, and opened cultural centers.

Major General Andrei Averyanov, who oversees Russian military intelligence operations in Africa, was on the December flight. He traveled with members of Africa Corps, a Russian Defense Ministry unit that absorbed some Wagner forces. Madagascar's National Assembly speaker Siteny Randrianasoloniaiko announced the unit’s arrival that month.

Russian intelligence officer Anton Papshev attended the January launch of training for Madagascar’s 1st Airborne Battalion. The program also included a transfer of Russian weapons, though RFE/RL did not specify which ones. In February, interim President Michael Randrianirina met Vladimir Putin in Moscow and welcomed wider cooperation on defense, energy, and other areas.

Russian authorities signed a deal with Randrianasoloniaiko to open a Russia House, a Kremlin cultural center. Ukraine’s military intelligence said Moscow plans to expand the network across Africa to influence young people. Madagascar also authorized a branch of African Initiative, a Russia-linked media organization that helped National Radio launch a “Russ-Mada” program.

RFE/RL said Russian authorities appear to intend to recruit Malagasy workers for Alabuga, a drone assembly plant in Russia’s Tatarstan region.

The plant has recruited thousands of workers, mainly young women from Africa and Central and South Asia, for relatively high-paying jobs. Richard Rakotonirina, head of Madagascar’s Friends of Russia association, visited Alabuga in February. RFE/RL did not establish that any Malagasy workers had been recruited.

Explore further

Moscow recruits African women to produce drones in horrific conditions — investigation exposes large-scale fraud

During a visit to Moscow, Madagascar’s prime minister discussed Russian fuel supplies, oil storage on the island, and military training.

A Russian delegation also visited an abandoned naval base that Madagascar and France had already agreed to study restoring. RFE/RL did not report any agreement giving Russia access to the base.

Russia’s wider reach in Africa

Madagascar’s emerging ties resemble security arrangements Moscow has built elsewhere in Africa. In the Central African Republic, Russian mercenaries guarded officials and trained troops in exchange for access to gold, diamonds, and timber, RFE/RL reported. Russia's Africa Corps protects the Republic of the Congo’s president, Denis Sassou-Nguesso, who has ruled since 1979, apart from a brief interruption.

In Mali, the force backs a military government and has deployed a drone of a type developed for Russia’s war against Ukraine. Residents and a rights group told RFI that Russian and Malian forces killed four civilian herders. Ukrainian drone specialists are reportedly supporting forces fighting Russian troops there.

OpenAI, the US company behind ChatGPT, will hand Ukraine's government free access to a cyber-defense system and its most powerful artificial-intelligence (AI) model, Ukrainian defense outlet Militarnyi reported. The company unveiled the deal alongside the UN General Assembly, pitching it as a cyber shield for the hospitals and power plants Russia keeps targeting.

Russia's war on Ukraine runs through wires as much as skies. Its hackers have hammered energy, transport, and defense networks for years, on top of the blackouts its missiles already force on Ukrainian cities—and Western tech firms have kept stepping in to help hold the line.

What the Daybreak system does

The tool is called Daybreak. It scans digital systems, finds their weak points fast, and helps specialists close them, the report said. Daybreak handles the whole job on its own—a loop of inventory, detection, verification, assignment, remediation, and confirming the fix held.

The system is meant to shield civilian infrastructure, hospitals and power stations among it, from cyberattacks, BBC reported. Ukraine's Computer Emergency Response Team (CERT-UA) logged nearly 6,000 cyberattacks in 2025.

Explore further

14 killed as Russia unleashes massive overnight barrage on unprotected Kyiv, striking homes, hospital, school and railway infrastructure

Ukraine also gets OpenAI's top model

The agreement opens access to GPT 5.6 Sol, OpenAI's flagship and strongest model. The company built it for complex professional work—programming, research, science, and cybersecurity, the report said. Both come as part of one agreement between OpenAI and Kyiv.

George Osborne—Britain's former chancellor and now Head of OpenAI for Countries—put the aim plainly.

"Protecting civilian infrastructure means defending it against both physical and digital attacks, so people can continue to live, work and access essential services," he said.

Independent analysts called the deal useful but not unprecedented. Rafe Pilling of cyber firm Sophos said it could serve as a force multiplier for a Ukrainian cyber defense that is already highly capable but heavily burdened. Jamie MacColl of the Royal United Services Institute noted that Western tech firms have been supporting Ukraine for some time, partly altruistically but also because they gain valuable intelligence from an active conflict, and that Ukraine already has access to AI tools from OpenAI's competitors, including Google. The same frontier AI capabilities cut both ways—spotting weaknesses helps defenders block hackers and attackers find a way in.

OpenAI's rival Anthropic has restricted access to its most powerful cyber models on those grounds, while OpenAI has opened them to some European firms and UK banks, BBC reported.

A US-based recruit was promised up to $1,500 to surveil a prominent Russian dissident before being offered $40,000 to “eliminate” or “disappear” the target, the US Justice Department (DOJ) said on 15 September.

The charges connect that alleged plot to what prosecutors describe as a wider Russian assassination network operating since at least 2024 against dissidents, defectors, and countries perceived as supporting Ukraine.

A federal grand jury in Manhattan indicted five alleged members of what prosecutors call the “RIS Network”:

• Yuri Khrameev, 63: A Russian national and former colonel in the Russian intelligence services who allegedly recruited people to kill Russian dissidents.
• Kirill Khrameev, 27: Yuri Khrameev’s son and an officer in the FSB, Russia’s principal security service and a successor to the Soviet KGB.
• Oemis Romagoza Durruthy, 35: A Cuban national living in Russia who allegedly coordinated attacks and arranged travel for operatives.
• Yaidel Delgado Suarez, 35: A Cuban national accused of recruiting people in the US for surveillance and murder.
• Angel Eduardo Castro, 22: A Venezuelan national accused of helping Suarez recruit US residents to spy on and kill a Russian dissident.

Suarez sent the US resident two locations associated with the dissident, according to the indictment. After the resident delivered photographs and videos, prosecutors say, Suarez and Castro made the $40,000 offer. When the resident declined to carry out the killing, they allegedly asked whether he knew “someone [who] can do the work.”

In 2025, the indictment alleges, Kirill Khrameev recruited a US citizen to photograph a target in Lithuania for a promised $200. Yuri Khrameev then offered approximately $25,000 to kill the man. When the recruit refused, Khrameev allegedly proposed a “simpler job”: burning a warehouse or attacking an electrical substation. He said the purpose was to target countries helping Ukraine, according to prosecutors.

Prosecutors also allege that Durruthy coordinated travel and logistics for attacks in Prague, Czechia, in June 2024 and in Lithuania that September. The Justice Department did not specify what either attack involved.

All five defendants are charged with conspiracy to finance terrorism, carrying up to 20 years in prison. Yuri Khrameev, Suarez, and Castro also face a murder-for-hire conspiracy charge carrying up to 10 years.

All five remain at large. Kremlin spokesperson Dmitry Peskov said Moscow saw no need to comment without “credible evidence,” Reuters reported. An indictment is an allegation, and the defendants are presumed innocent.

From military espionage to alleged murder plots

Since Russia’s full-scale invasion, its covert campaign against Ukraine’s Western allies has combined intelligence gathering with escalating sabotage. CSIS found that suspected Russian attacks in Europe nearly tripled from 2023 to 2024, often using locally recruited agents against infrastructure and industries supporting Ukraine.

In August 2025, US prosecutors charged active-duty soldier Taylor Adam Lee with trying to transmit Abrams tank information and deliver hardware to someone he believed represented the Russian government, allegedly in exchange for Russian citizenship. That case involved an American insider allegedly offering military secrets, not a proven Russian recruitment operation.

Sabotage preparation, remote recruitment, and data collection on military sites account for a significant share of Poland's espionage docket, and public arrests have not dented the pace, RBC-Ukraine reported on 15 September. The published figures cover only the highest-complexity investigations, so with district prosecutors' cases counted in, the real scale of Russian activity is larger still.

Russia's covert campaign inside the EU has escalated from online disinformation into physical attacks since the full-scale invasion of Ukraine—arson at defense plants, assassination plots, and bomb-rigged drones found at European airports.

Recorded sabotage incidents across Europe tripled between 2023 and 2024 alone. Poland, as NATO's primary overland corridor for Western military aid to Ukraine, sits at the center of that pressure—its railway routes near the Rzeszów logistics hub have drawn particular attention.

What the prosecutors count as espionage

Poland's National Prosecutor's Office opened 67 criminal cases under Article 130 of the Criminal Code—espionage and activity on behalf of a foreign intelligence service—during 2025, spokesperson Przemysław Nowak told RBC-Ukraine. In the first eight months of 2026 alone, prosecutors added at least 40 more.

At that pace, 2026 could yield roughly 60 new cases, RBC-Ukraine noted, concluding that the tempo of recruitment and sabotage preparation is not slowing but staying steadily high despite public detentions and strengthened counterintelligence.

Courier bombs and expendable operatives

Earlier, Polish law enforcement exposed two Russian citizens prosecutors say worked for Russian special services. One of them planned to send an explosive device through a delivery service—part of a wider Russian sabotage campaign that recruits low-cost, expendable operatives for arson and disruption across the EU.

Ukraine's military intelligence agency, HUR, published data on 54 Russian enterprises within KRET, a defense holding under Russia's state-owned Rostec corporation, on 15 September. More than a third of KRET's enterprises face no sanctions from any country in the international sanctions coalition, HUR reported on 15 September.

Russia's defense industry is vast, and sanctions have targeted companies and individuals across the sector in multiple rounds since the full-scale invasion to restrict its ability to produce and finance weapons. But complex networks of state-owned holdings and subsidiaries can leave gaps, allowing some companies involved in military production to remain outside international sanctions. An August report by the anti-corruption organization NAKO found that the EU had sanctioned only 23% of 482 Rostec-linked entities.

What KRET makes for Russia's military

• KRET makes electronic warfare systems, friend-or-foe identification systems and onboard electronics for Russian fighter jets and helicopters, HUR said. Its companies also make other military equipment, including anti-drone systems and remotely operated machine guns.
• KRET also supports Russia’s missile production. The Signal plant in Stavropol makes compact jamming stations for 9M723 Iskander-M missiles, and the Kaluga Research Radio Engineering Institute makes electronic protection systems for 3M22 Zircon missiles.
• KRET’s main organization covers funding shortfalls for state defense contracts carried out by its companies, according to HUR.

Unsanctioned companies make missile and drone parts

HUR also named several of the 19 unsanctioned companies that it says are involved in Russian weapons production. 

Among those firms, HUR identified manufacturers of navigation systems for Kh-59M2 and Kh-59M2A guided air-launched missiles and Orion drones, gyroscopes for 9M727 cruise missiles used in the Iskander system, and electric motors for drones.

The enterprises include JSC Inertial Technologies of Technokompleks, JSC Tambov Plant Elektropribor, and JSC Ulan-Ude Instrument-Making Production Association.

HUR calls for broader sanctions

The intelligence agency called for more defense companies to be added to international sanctions lists, better monitoring of compliance, and punishment for violations. KRET is the 10th Rostec holding whose enterprises HUR has published on its War&Sanctions portal. The portal now lists 764 Rostec enterprises, UNN reported.

On 8 September, HUR published data on 155 enterprises belonging to Roselektronika, another Rostec holding. Nearly half were not under international sanctions.

A Russian state-linked espionage group ran much of its campaign against Ukraine on Claude, the AI assistant sold by US company Anthropic, which set out the case in a threat report published on 10 September, covering activity it disrupted between December 2025 and August 2026. Ukrainian government, military, and diplomatic staff recurred most often among the targets, with the drone supply chain second. Other Russian users of the same chatbot produced on-air tickers and voiceover scripts for state broadcasters, while Russian-speaking criminals went after the AI industry itself.

Ukrainian ministries and diplomats led the target list

Anthropic tracks the group as GTG-20006 and says its attribution matches public reporting that links it to Midnight Blizzard, a hacking group the US and UK governments attribute to Russia's SVR foreign intelligence service. A Russian-speaking operator using the handle JackPoterz ran campaigns against military intelligence targets in Ukrainian and European governments, plus diplomatic and defense bodies and individuals connected to US foreign policy.

More than 20 organizations appeared in the actor's planning and live operations, from ministries and embassies to think tanks and defense companies. Ukrainian government, military, and diplomatic staff came up most often, and the operators scanned email and remote-access systems across more than two dozen Ukrainian state organizations. Russia has worked these networks all war, treating Ukrainian media as a priority cyber target.

Explore further

Ukraine’s media are top Russian cyber target: Hackers hit Ukrainian TV site with 200,000 requests in minute

Drone technology was the other target

The operators bulk-exported the mailboxes of at least two drone component manufacturers and went after a military drone maker. They also stole a complete proprietary software development kit for a drone vision system, the code and documentation engineers need to build on that hardware, then spent days pulling it apart. They recovered the product architecture, the parts list, the supplier dependencies, and details of a product the company had not announced. Military drone control and AI vision firmware drew their particular interest.

Explore further

AI against AI over Ukraine: Russia’s Shahed now sees its target, and Ukraine’s interceptor sees Shahed

To reach people indirectly, the group also compromised at least three vendors running hotel guest WiFi and redirected guests to its own servers, pushing malware at their devices and hunting for Ukrainian officials and drone manufacturers. To reach people indirectly, the group also compromised at least three vendors running hotel guest WiFi and redirected guests to its own servers, pushing malware at their devices and hunting for Ukrainian officials and drone manufacturers. Microsoft documented the same method on 31 July, calling it CaptiveCrunch and tracing it to a Midnight Blizzard sub-cluster. Russian services have tracked the weapons pipeline before, tapping private cameras in Europe to watch arms shipments bound for Ukraine.

What the chatbot did for the operation

Claude fingerprinted mail systems, built the phishing infrastructure, ran commands inside victim networks, harvested credentials, and organized hundreds of gigabytes of stolen data, Anthropic found. Automated agents also checked whether the group's implants were being detected, rewrote flagged malware until it passed, and staged it for the next intrusion. The operators also seized WhatsApp accounts and targeted at least two former high-level Ukrainian officials that way, and stole cloud email from at least eight bodies, including a national prosecutor office and a military education institute.

Russian state media used the same chatbot

Four individual operators fed state outlets, among them a former Sputnik Moldova editor-in-chief. Anthropic says content generated with Claude reached Sputnik Moldova, RIA Novosti, Sputnik en Español, Sputnik Africa, and RT's English newsroom, including fabricated claims about Moldova's President Maia Sandu before the parliamentary election of 28 September 2025. 

A Russian-speaking operator in Bangui also supplied daily material to Radio Lengo Songo, a station investigators say the Wagner Group founded and funded in 2017, coordinating with RT, Sputnik Afrique, and TASS.

Explore further

Estonia quarantines emails from Russian domains over cyberattack risk

Two crews went after the AI company itself

A Russian-speaking actor moved from hotel-booking and fintech intrusions to attacking AI firms, planting instructions in one vendor's testing system and hitting roughly 30 companies in four days while chasing an unreleased Claude model. The hunt for the model failed, though the actor did take production API keys from that testing system, and Anthropic says its own systems were never breached. A Russian- and Ukrainian-speaking group meanwhile sold fake discounted access to the assistant, routing customers to a different model and stealing their logins.

This story first appeared as the cover story in Issue 4 of The Atlas, a new global publication by Coda Story and The Continent. Sign up to the newspaper here.

In late July, at the International Congress of Mathematicians (ICM) in Philadelphia, the mathematician Jacob Tsimerman was awarded one of four Fields Medals – the highest honour in mathematics.

A few hours later, Tsimerman announced that he was joining OpenAI.

Tsimerman’s departure from theoretical mathematics, while at the absolute peak of his powers, highlights the fault line in a debate that is upending the normally quiet world of higher mathematics. “What a dick move,” said one mathematics professor, speaking to The Atlas off the record.

Tsimerman, who has written extensively about his fear of “omnicidal futures involving artificial intelligence” – a fear that AI could wipe out humanity, closely associated with the AI “doomer” community – has said he will work on OpenAI’s safety team.

Tsimerman and OpenAI did not respond to a request for comment.

In recent months, OpenAI has announced proofs of various longstanding mathematical problems, solved with one of the company’s latest large language models. Other companies have also made advancements: RedNote, a Chinese AI model, obtained a perfect score at the International Mathematical Olympiad in Shanghai in July.

Human mathematicians, at all levels of the profession, are reeling from the implications. Tim Gowers, a professor at the University of Cambridge who helped to verify one of OpenAI’s proofs, has written that even if AI models fail to progress further, “we have still probably entered an era where it will become very difficult for humans to compete with AI at solving mathematical problems”.

This is a startling assessment – and a marketing coup for the likes of OpenAI.

“Mathematicians actually have a special role in this,” said Joshua Grochow, an associate professor in Computer Science and (by courtesy)Mathematics at the University of Colorado Boulder. “The AI companies’ PR pitch is essentially to say, ‘Look, we have solved math. the intellectually hardest thing ever, therefore we can solve everything.’ ”

LLMs have not solved math – far from it. Nonetheless, Grochow added, recently some capabilities have improved. “They are legitimately able to produce real math, new math that they had not produced before. So you can’t deny that utility. You can deny the extent of that utility, but you can’t say it’s all BS.”

Miek Messerschmidt, a senior lecturer in mathematics at the University of the Witwatersrand in Johannesburg, recently used Anthropic’s Claude to take a crack at a problem that had stumped him. Claude solved it within 30 minutes. “How did I feel? You mean emotionally? I was relieved, because I didn’t have to go down this dead end any more. But I was also disconcerted by what this entity could do in such a short amount of time.”

NEW VARIABLES

Mathematics has been disrupted by technological leaps before. The abacus. The mechanical calculator. The blackboard, even, which played an instrumental role in standardising training and mathematical notation (“It’s hard to research, because most of what’s written on blackboards doesn’t stay there very long,” said mathematics historian Michael Barany).

But AI is a different kind of disruption. Where previous advances helped mathematicians expand the frontiers of their knowledge, large language models threaten the livelihoods, and purpose, of mathematicians themselves.

“Our place in society at developing new ideas has been quite unthreatened for quite some time,” said Tim Chartier, a Professor in the Department of Mathematics and Computer Science at Davidson College. “For a long time, the frontier of mathematics could only be expired by the mathematicians themselves. There were no tools that could push into that boundary, except the research mathematician…At this current time, it’s not like we don’t need research mathematicians – but the landscape has changed so quickly, it’s hard to know what that will look like a year from now, two years from now.”

This matters for everyone: for thousands of years, mathematics has been considered to be the foundation of scientific knowledge. There is no physics without mathematics. No astronomy without mathematics. And there is no computer science – or AI – without mathematics. What happens if there are cracks in the foundation?

“I think that LLMs pose an existential threat to the mathematical community,” wrote Tasmin Chu, a PhD student at the California Institute of Technology, in an essay published on 2 August – the day after OpenAI released a set of ten new mathematical results, resolving or making progress on various problems.

“This is a polemic, not a press release,” Chu continued. “I know that others feel the same way; I have spent today crashing out and learning that top mathematicians I know are crashing out.”

Some of what mathematicians are worried about is the same as what everyone else is worried about: that AI will take their jobs; that AI companies have absorbed everyone’s work, and are reproducing it without attribution or compensation; that students aren’t learning properly any more; and that there won’t be jobs for them when they graduate.

But some worries are more specific to the field. Like the fear that, if mathematics becomes too reliant on particular AI models, then AI companies will have the power to restrict access to a select few – or make it prohibitively expensive. That promising young mathematicians, instead of turning to research, will use their talents instead to refine proprietary algorithms, which may or may not be used for the common good. That there will be no one left to understand, let alone vouch for, the mathematics produced by the machines. That objective truth, or anything close to it, is going to be much harder to prove – a fear shared with journalists, incidentally, who find it increasingly difficult to verify whether a photograph is real or fake.

MATHEMATICIAN IN THE LOOP

After speaking with more than a dozen leading mathematicians from around the world, The Atlas can confirm that Chu is not alone with her fears: it’s all anyone is talking about. The crisis is existential – and mathematicians are looking to one man in particular to guide them through it.

There are no working mathematicians who are truly famous. The closest anyone gets is Terence Tao, a professor at UCLA, who is often referred to as the world’s greatest living mathematician. A prodigy, Tao skipped five grades of school, receiving his masters degree at age 16. By 21, he had earned a PhD from Princeton, and was awarded the Fields Medal just ten years later, in 2006, for his pioneering work with Ben Green on prime number theory.

But what sets Tao apart, in a field infamously incomprehensible to outsiders, is his ability to communicate to both mathematicians and laypeople alike. This has made him a de facto spokesperson for the mathematics community – and extremely influential in setting its norms. “From all accounts he’s a lovely man,” said one researcher, speaking anonymously.

“But the social pressure to agree with Terry Tao is really strong.”

On July 24, the day after Jacob Tsimerman joined OpenAI, Tao gave a public lecture at the ICM titled “Mathematics in the Age of AI”. In it, he presents his “working hypothesis”: that AI tools for mathematics, which he already uses in his own research, will keep getting better. This will allow for collaboration on a vastly greater scale than has ever been possible before, Tao argues, and speed up the pace of research – revealing new, previously unimagined frontiers.

But it will also change, fundamentally, the role of human mathematicians. There will be little point in problem-solving – the computers will handle that. But the humans will still have to do the really hard work: understanding why AI-generated proofs are correct, and explaining this to others. The sooner they embrace this and plan accordingly, Tao concludes, the better.

The Atlas reached out to Terence Tao to request an interview. His human assistant, UCLA media relations officer Holly Ober, declined the request, making a referral instead to a “living document” which is maintained by Tao’s Claude AI assistant, on his website. This document synthesises Tao’s current thinking on AI, based on his public writings and talks, even “interviewing” Tao with follow-up questions.

As per his AI assistant, Tao believes that the topic of AI in mathematics is too important to be left to just a small number of spokespeople – and that his own “influence on this discussion should diminish as the rest of the community steps up.”

AN UNSOLVED EQUATION

Not everyone believes in the inevitability of AI defining the future of mathematics. According to several sources, both organisers and funders were disappointed with the turnout at the ICM in Philadelphia. Despite the gravity of the occasion, the congress was not at capacity.

Ila Varma and Tarik Aougab, associate professors at the University of Toronto and Haverford College respectively, may have had something to do with that. In March, they launched a petition to boycott the ICM due to the ongoing war in Iran, increasing authoritarianism in the United States and the risks faced by visiting academics – if they were even allowed in. “AI companies were invited, but most African mathematicians who tried to attend couldn’t get visas,” Varma said.

More than 2,600 people signed the petition. For Varma, this is evidence that mathematicians may yet use their status to resist the influence – and the cash – of the big AI companies.

“There’s an idea that the positionality of mathematics in society is to decide who’s smart, who’s worthy of the most lucrative career opportunities and the privileges that go along with it. And now we are being asked to take this technology that is likely to be extremely unhealthy for users, that’s bad for the environment, this thing built on unethical labour, and our discipline is being used against many of our wishes to tell society that this thing is intelligent, and that you should let it do your thinking for you.”

Michael Harris, a professor at the Institut de Mathématiques de Jussieu in Paris, was at the ICM in Philadelphia. “The talks I attended on AI, starting with Tao’s public lecture, took pains to insist on the need for human mathematicians to make sense of anything produced in the name of the discipline, by machines or by humans,” he said. “There is a growing resistance to any use of AI whatsoever in mathematics, especially among young people, and this will become evident over the next few months.”

One of the clearest voices of dissent belongs to Max Weinreich, Assistant Professor of Mathematics at the City University of New York.

In an essay published earlier this month, Weinreich makes the case against what he describes as “artificial mathematics”: “Mathematicians do not need to use AI, nor should we use AI; soon, I argue, you will not want to have your name associated with AI. Instead, we should use our intellectual authority to oppose its development.”

His opposition is about more than mathematics, he told The Atlas. In his view, the environmental and financial implications of the AI boom pose major societal risks – and mathematicians, given their privileged position, are one of the few groups of people who can do anything about it.

As John Fletcher, a theoretical physicist and mathematician, observed: “There is a lot of power in being perceived as the smartest people in the world.”

Po-Shen Loh, a professor at Carnegie Mellon and former coach of the US International Mathematical Olympiad team, backs mathematicians to figure it out – by treating it like a maths problem. “AI is making mathematicians engage with the real world. They are smart enough to realise they have an existential crisis. They’re quickly racing down to discover all the dead ends, to see what works and what doesn’t.”

And when they figure it out, maybe they’ll let the rest of us know. 

A version of this story, edited for length, first appeared in The Atlas newspaper.  Additional reporting by: Shougat Dasgupta, Masho Lomashvilli, Irina Matchavariani.

Related Articles

Darkness is losing its war with the light

Simon Allison

The future according to Silicon Valley’s prophets

Isobel Cockerell

Captured: how Silicon Valley is building a future we never chose

Isobel Cockerell

The post As mathematicians grapple with AI, divisions are multiplying appeared first on Coda Story.

A top banker has got in trouble by referring to employees whose jobs will be replaced by AI as “lower-value human capital.” But he’s just saying the quiet part out loud: compliance officers have been expected to work like inefficient computers for years already anyway. Standard Chartered CEO Bill Withers used the unfortunate phrase when describing how the bank plans to keep hitting its profitability targets by cutting 15% of back office staff, and has tried to backtrack a little after a predictable storm of criticism, including from the former president of Singapore. 

It would be nice to think of bank employees deployed to fight financial crime as super-effective old-school gumshoes, with a bottle of bourbon in the bottom drawer and an inexhaustible stock of one-liners, but in reality their jobs are more like something from ‘The Office’ than ‘The Big Sleep’.

Thousands of people sit in cubicles in Warsaw or Bengaluru, checking through transactions flagged as possibly abnormal by banks’ automated systems, and confirming that 99% of them are, in fact, normal. Anything that might conceivably be abnormal gets sent up the chain, where someone more senior will almost certainly decide it wasn’t. 

It is a ruinously expensive process and, as far as we can tell, completely ineffective. The best estimates we have for the size of the criminal economy suggest it has grown, untroubled, along with everything else for decades despite all the laws, fines, and prosecutions that we’ve thrown at the problem. 

But banks’ financial crime compliance isn’t about stopping financial crime at all: it’s about stopping banks from being fined, as Standard Chartered has previously been, enormous sums in both the U.S. and the UK. As long as banks can be sure that AI checks boxes in ways that satisfy regulators, then they’ll be happy.

This is a little bit worrying because AI is already getting very good at fraud. I am very alert to attempts to trick me but was sufficiently fooled by an AI email yesterday to forward it on to someone. Fortunately, a very similar one arrived (purportedly from someone else) a few minutes later, alerting me to my mistake. Money laundering is a laborious activity and criminal gangs will be as keen as banks to cut their back office expenditure, and AI could help automate the processing of the many small transactions that add up to a large amount of money. Phishing and smurfing are just a couple of its use cases, however.

“Scammers can leverage AI to scrape data from social media and dating platforms to identify vulnerable targets (e.g. lonely individuals, recent retirees, or people interested in finance) for pig butchering scams,” notes TRM Labs. “Bots can sustain long-term, emotionally persuasive conversations without tiring or making mistakes, making the scam more scalable.”

And that’s before you get onto AI’s ability to exploit cryptocurrencies and smart contracts to really start rampaging through the crypto world. “TRM observed a roughly 500% increase in AI-enabled scam activity over the past year. The convergence of generative AI, programmable financial infrastructure, and global crypto liquidity has altered the economics, velocity, and scalability of fraud,” the blockchain analytics firm said in a follow-up report. This is very bad indeed.

So, although I can see why people are annoyed that Withers referred to his bank’s employees in such a disparaging way, I am more troubled that he’s planning to replace them with AI, rather than to retain them and train them in how to counter it.

It was remarkable, however, to see Warren Davidson, chair of the illicit finance subcommittee at the House of Representatives Financial Services Committee, draw precisely the wrong conclusion from all this. Although he was correct in condemning the defensive nature of compliance, and its focus on generating paperwork over results, he then got lost in praising the White House’s decisions to attack corporate transparency legislation.

"As we focus on risk, we must also ensure that tools like artificial intelligence are fully deployed to counter the AI-enabled crimes of today,” he said, without realising that, without reliable information to train the AI models on, this is as useless an approach as the one he says has failed. If you don’t know who owns what, neither will a computer, no matter how cleverly it can pretend to be human.

I sincerely hope he listened to the testimony of Carole House of the Atlantic Council who forcefully pointed out the harm to national security and to ordinary Americans caused by the United States’ failure to create even an approximation of a decent corporate registry, as well as the historic idiocy of its current crypto policy. “Without a secure identity foundation, AI agents will simply scale up fraud at a speed and volume that human investigators can't possibly track, destroying trust in the whole system,” she said in testimony that I highly recommend you take a look at.

I very much doubt Davidson was listening, however, because that is not the direction the Republican Party is going in right now. I would write more about that, but frankly it’s all too depressing, and I’d rather move on.

So let me point you towards this excellent paper on how online scam marketplaces work, with criminals using the messaging app Telegram and the stablecoin Tether to launder hundreds of billions of dollars. It argues that our current approach of sanctioning exchanges is futile since their owners just shut them down and switch to a new platform that works in the same way but hasn’t yet been sanctioned.

“As long as the underlying digital infrastructure remains permissive, criminal syndicates will simply migrate to new channels. To move from reactive disruption to systemic prevention, the international community must shift its focus toward the structural enablers of these marketplaces,” Elliptic’s Tom Robinson argues. Elliptic is unusual among blockchain analytics companies in being willing to name Tether as a major vector for money launderers. Its rivals tend to just say “stablecoins,” I have no idea why.

Meanwhile, there is something grimly depressing about the fact that — against the backdrop of, well, everything — the UK has postponed June’s illicit finance summit due to “scheduling issues in the international calendar.” Everyone is so busy dealing with the consequences of illicit finance, that no one has time to talk about illicit finance.

A version of this story was published in this week’s Oligarchy newsletter. Sign up here.

The post AI is not the answer to AI-enabled fraud appeared first on Coda Story.

On April 24, Brazil’s competition authority, the Administrative Council for Economic Defense (CADE) announced it was opening an investigation to assess whether Google’s use of news content amounted to unfair competition practices against the Brazilian press. The announcement was welcomed by civil society organizations that have tried to push regulation to limit the reckless power of Big Tech for years. Ajor, Brazil’s Digital News Association, said that “a balanced relationship between digital platforms and journalism organizations is fundamental to the flourishing of journalism committed to the public interest. By ensuring a fair competitive environment, Cade directly advances that goal.”

In spirit and intent, CADE’s investigation into Google is similar to legislation in Australia that recognized that value is being extracted from news publishers without proportionate recompense. In Brazil, the case has been debated since 2019, but the adoption of AI Overviews helped alter the perspective of Brazilian judges. The overviews are artificially generated summaries that synthesize information from several sources and appear at the top of Google Search results. They “raise potentially more concerns,” ruled Judge Camila Cabral Pires Alves, “as they may more profoundly alter the economic function of the interface and expand the ability to retain attention within the platform's own environment.”

CADE will now investigate whether Google should be sanctioned for “alleged abusive exploitation of a dominant position, in light of the technological evolution of the conduct.” While there is perhaps a greater global appetite to regulate the impacts of AI – even the Trump administration has recently acknowledged that some oversight may be necessary – the CADE judges have been under considerable pressure from Big Tech executives to stop investigations into how their control of the market harms Brazilian businesses. 

For those of us who have reported on Big Tech, this aggressive lobbying is not surprising. Companies like Google, Meta, Twitter, TikTok, Amazon, and Microsoft have long attempted to interfere in any decision or legislation that can harm their interests in Latin America. According to a joint investigation by journalists across 13 countries, Big Tech lobbyists got away with convincing legislators in Colombia to weaken a rule meant to protect children’s mental health and prevent enforcement of privacy regulations in Ecuador. It took a team of over 40 journalists from 13 countries to uncover this while reporting on the ‘Big Tech Lobby’ in the continent and across the world.   

Threats by the U.S. government to retaliate against any country or international entity that sought to regulate Big Tech added another layer to an already complicated and uneven relationship with Silicon Valley. “Digital Taxes, Digital Services Legislation, and Digital Markets Regulations are all designed to harm, or discriminate against, American Technology,” wrote Donald Trump on social media. “Show respect to America and our amazing Tech Companies or consider the consequences!” During the past year, Trump’s envoys have forced dozens of governments around the world to dilute or even shelve regulation in exchange for lifting tariffs. 

In “Big Tech’s Invisible Hands,” which I coordinated alongside Maria Teresa Ronderos, from CLIP (Centro Latinoamericano de Investigación Periodistica), journalists mapped a total of 75 executives that were part of “public policy” or “government relations” teams in Brazil. Tech companies utilized a “revolving door” in which public sector employees could go straight into highly paid jobs leveraging their contacts and influence. Doors opened more easily. Invitations to hangouts and events were more likely to be accepted. 

Lobbying in Brazil is dialed up to eleven. The country has 163 million internet users, with over 150 million on WhatsApp, and over 120 million on YouTube, Instagram and Facebook. With AI, Brazil is a similarly large, influential market. Portuguese is the sixth most widely-spoken language in the world, with 70% of speakers based in Brazil. Which means that, if an LLM has been trained in this language, it probably used content created by millions of Brazilians going about their business of making friends, debating politics and football online. It’s not just about journalists; we are all unpaid labor for Big Tech. 

In the words of Arthur Lira, the Speaker in Brazil’s Congress who filed a criminal complaint against Big Tech executives in 2023, companies adopted a variety of tactics “to shut down democratic debate and intimidate lawmakers” and defeat any attempt at using legislation to force accountability. Google, he said, used its search homepage, used by over 85% of Brazilians, to spread fear that proposed laws would “make the internet worse” or “make it harder to know what is true or false on the internet.” A report by the Federal University of Rio de Janeiro found that Google invested in ads on its own platform so extensively that it tweaked the search, prominently featuring the word “censorship” in connection to the Brazilian bill. Google also hired Michael Temer, a lawyer and former President of Brazil, to influence lawmakers and Supreme Court Justices. Of course, it was not Google alone. Meta executives, for instance, even argued that proposed legislation in Brazil could lead to the Bible being censored.

But Brazilian lawmakers, the Supreme Court, and civil society have persisted. On August 28, 2025, the “Felca Law” was approved, after a video by the influencer Felca denounced the exploitation and exposure of children on social media. The law establishes that digital platforms must take measures like verifying user age, implementing parental controls, and preventing children's exposure to adult content, gambling, and pornography. They must create reporting channels and may face fines of up to 10% of their annual revenue in Brazil.

Brazil’s president Luiz Inácio Lula da Silva and Donald Trump have had a testy relationship, in part because of Lula’s criticism of Big Tech. In February, at the AI Impact Summit in New Delhi, Lula called for global governance of AI, warning: “When few control the algorithms, it is not innovation, but domination. Regulating the so-called Big Tech companies is linked to the imperative of safeguarding human rights in the digital sphere, promoting information integrity, and protecting our countries’ creative industries.”

By sticking to his guns, Lula may now be seeing the tide turn. He was in the White House on May 7, and though neither he nor Trump took questions, both appeared encouraged by the meeting. “Very dynamic,” was how Trump described Lula, while Lula said he was “very, very satisfied” with how the talks went. With a general election in Brazil approaching in October, Lula will be sensitive to how the White House, as it has done in other elections, and Big Tech might offer vocal support for right wing candidates.

But his willingness to stand up to Big Tech is popular with voters. A recent poll found that 78% of Brazilians want to see tech companies being held responsible for the content they publish. Another poll found that 55% of Brazilians defend regulating Big Tech, with 43.9% against it. 

And as scams, fake news, and AI slop dominate ever larger swathes of all our digital space, in Brazil, as in much of the rest of the world, the entire experience of the internet is becoming more unappealing. Big Tech, with the assistance of the U.S. government, may be succeeding in slowing down the pace of regulation and watering down the content of that regulation, but in the long run its victories might be pyrrhic. People have had enough and their governments might be forced to listen.

Related Articles

Europe vs Big Tech: A battle for democracy?

Ines Vilares

The Vatican challenges AI’s god complex

Isobel Cockerell

Turn off, tune out: Australia takes its kids off social media

Isobel Cockerell

The post How Brazil is starting to rein in Big Tech appeared first on Coda Story.