This week on the Lock and Code podcast…

If you want AI to tell you a story, it will. If you want that story to sound like one of your favorite authors, it can. And if you’re one of the authors that AI can imitate, you might be a little upset at what feels like theft.

In 2024, the authors Andrea Bartz, Charles Graeber, and Kirk Wallace Johnson sued Anthropic, the creator of Claude, alleging that the company had wrongfully digested millions of copyrighted works—including some of their very own—to train its AI models. The lawsuit grew to include more than 300,000 writers, and in September 2025, Anthropic agreed to pay $1.5 billion to settle the claims.

That headline-worthy payout, however, would eventually be paired with more startling news.

In January 2026, a district court judge unsealed thousands of documents related to the litigation. When The Washington Post investigated the documents, reporters found references to a secret project inside Anthropic called “Project Panama,” which Anthropic itself described as the company’s effort “to destructively scan all the books in the world.”

Anthropic is not alone in this.

On August 17, 404 Media co-founder and reporter Emanuel Maiberg revealed that Amazon is doing something similar inside a department it calls VGT3. By hiding an Apple AirTag in one book from a 1,000-book order, and then tracking the shipment across the country, 404 Media identified the book’s final destination to be a facility outside Las Vegas, where, according to employees, books are cut apart and scanned.

Today, on the Lock and Code podcast with host David Ruiz, we speak with Maiberg about Amazon’s VGT3 operation and the likely commonplace practice of AI companies purchasing, scanning, and destroying books in an effort to build “frontier” models.

“They’re buying a book, they’re scanning it, they’re mulching the book, and then the digital version of the book exists behind this wall where we don’t even know if they plan to sell it, right? It’s like they might keep it behind a wall, and the only way we see it come out again from behind that wall is in the form of an answer from a chatbot.”

Tune in today to listen to the full conversation.

Show notes and credits:

Intro Music: “Spellbound” by Kevin MacLeod (incompetech.com)
Licensed under Creative Commons: By Attribution 4.0 License
http://creativecommons.org/licenses/by/4.0/
Outro Music: “Good God” by Wowa (unminus.com)

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A New Mexico court has ordered Meta to pay a total of $942 million after finding that Facebook and Instagram harmed young users and that the company misled consumers about the safety of its platforms.

Reportedly, the decision combines a $375 million civil-penalty verdict from March with a newly ordered $567 million abatement fund intended to address the damage. The court accepted the state’s argument that Meta had concealed what it knew about risks to children’s mental health and child sexual exploitation, while making misleading claims about the safety of its products.

Meta said it disagreed with the ruling and planned to appeal.

“We remain confident in our record of protecting teens online and will continue to defend ourselves against claims that misrepresent the facts.”

But the ruling is more than just a fine. It also imposes product-level obligations in New Mexico. Meta must continue improving its age-assurance tools, including:

• Develop an under-13 prediction model within two years.
• Seek proof of age from users it estimates are under 13.
• Treat uncertain accounts as belonging to minors until their age is verified.
• Delete personal data collected from under-13 users.

The company must also create a channel through which schools or a child-safety organization can report suspected underage accounts and submit compliance updates twice a year.

This is a significant step. A company can remove individual accounts or posts after the fact, but the New Mexico case focuses on whether the surrounding product design, age checks, disclosure practices, and reporting systems adequately protect children in the first place.

From Meta’s side, this is hardly a one-off incident. The Wall Street Journal reports that Meta is fighting thousands of lawsuits by individuals, school districts, and more than 40 state attorneys general which are pending in state and federal courts. 

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How to keep your children safe

In February, we published research on how safe kids are when using social media. As the company behind Facebook, Instagram, and WhatsApp, Meta plays a major role in this field. But unfortunately, it seems Meta isn’t even capable of blocking ads that contain AI generated Child Sexual Abuse Material (CSAM).

Some tips for parents:

• Keep communication open. Keep conversations about online activity open and ongoing, not one-off warnings. Talk to your child about who they interact with online and what kinds of conversations are appropriate. Warn them about strangers in comments, group and gaming chats, and direct messages. Encourage them to leave spaces that make them uncomfortable, even if they didn’t do anything wrong.
• Set up accounts together. Use child or teen accounts where available and avoid defaulting to adult accounts. Keep friends and followers lists set to private. Avoid using real names, birthdays, or other identifying details unless they are strictly required. Avoid facial recognition features for children’s accounts. For teens, be aware of “spam” or secondary accounts they’ve set up that may have looser settings.
• Treat age limits seriously. While we don’t like many of the ways they are implemented, the age restrictions are there for good reasons. Do not help children bypass a platform’s minimum age requirement. Age restrictions can reduce exposure to adult spaces, unwanted contact, and features not designed for children.
• Discuss images and AI explicitly. Teach children never to send intimate images, even to someone they know, and to be wary of “nudify,” face-swap, or AI image-editing apps. Explain that AI-generated sexual images can be used to harass, blackmail, or humiliate someone, even when no original explicit photo exists.
• Have a simple escalation plan. If someone becomes sexual, coercive, threatening, or asks to move a conversation to another app: stop replying, preserve relevant evidence, block the account, and report it to the platform and appropriate child-protection or law-enforcement services.
• Teach a “pause before you click” habit. Children should know that ads, giveaways, direct messages, and links can be scams or gateways to harmful material. Encourage them to ask an adult before installing unfamiliar apps, entering personal information, or sharing photos.

The most effective and probably hardest of them all is to find a balance between relying on device and platform controls and helicopter parenting. Device and platform controls can limit screen time, sensitive content, and unknown contacts. And they work best alongside trust, shared rules, and periodic check-ins rather than covert surveillance.

Scammers don’t need to hack you. They just need you to click once. 

Malwarebytes Identity Theft Protection catches suspicious activity before it becomes a problem.

The FBI has issued a Public Service Announcement (PSA) warning that criminals are breaking into social media and personal accounts to steal and distribute intimate images and videos without consent. The FBI refers to this type of content as non-consensual intimate images (NCII).

The stolen material may be posted or sold on criminal marketplaces alongside victims’ names, phone numbers, email addresses, and social media handles, creating opportunities for harassment, stalking, and sextortion.

According to the FBI, criminals use a mix of account takeover and social engineering tactics:

• Password and PIN guessing: Criminals make high-volume login attempts using data from breaches, public social media profiles, leak sites, and other publicly available sources. Known victims may be targeted using name variations, birth dates, and other predictable personal details.
• Fake customer service texts: Victims receive a message claiming their social media account will be locked or disabled. The criminal triggers a legitimate password reset request, then persuades the victim to hand over the resulting verification code.
• Phishing emails: Lookalike support domains and email addresses warn of a “new login” and direct victims to a fake password change page designed to steal credentials.

This is different from the familiar “I recorded you” sextortion email, which typically relies on intimidation rather than a real account compromise. Still, if such an email includes a password you still use, change it immediately wherever it remains in use.

How to stay safe

There are several ways to reduce the risk of becoming a victim:

• Avoid storing sensitive images on social media platforms or other internet-connected services when possible. Breaches and leaks happen, and those images can end up in the wrong hands.
• Use a password manager to create a unique, long password for every account. Don’t base passwords or PINs on names, birthdays, or other public information.
• Turn on multi-factor authentication (MFA), preferably with passkeys or hardware security keys where available. MFA is valuable, but criminals can still phish one-time codes and session cookies, so never approve an unexpected prompt or share a verification code.
• Treat unexpected “account warning” links in texts and emails as suspicious. Open the service’s official app or type the known web address yourself instead. Don’t trust sponsored search results to take you to the correct website.

If you discover that intimate content has been stolen or shared, preserve any relevant links and evidence, secure the affected accounts, and report it through the FBI’s NCII reporting portal at ncii.ic3.gov.

Scammers don’t need to hack you. They just need you to click once. 

Malwarebytes Identity Theft Protection catches suspicious activity before it becomes a problem.

A New Mexico court has ordered Meta to pay a total of $942 million after finding that Facebook and Instagram harmed young users and that the company misled consumers about the safety of its platforms.

Reportedly, the decision combines a $375 million civil-penalty verdict from March with a newly ordered $567 million abatement fund intended to address the damage. The court accepted the state’s argument that Meta had concealed what it knew about risks to children’s mental health and child sexual exploitation, while making misleading claims about the safety of its products.

Meta said it disagreed with the ruling and planned to appeal.

“We remain confident in our record of protecting teens online and will continue to defend ourselves against claims that misrepresent the facts.”

But the ruling is more than just a fine. It also imposes product-level obligations in New Mexico. Meta must continue improving its age-assurance tools, including:

• Develop an under-13 prediction model within two years.
• Seek proof of age from users it estimates are under 13.
• Treat uncertain accounts as belonging to minors until their age is verified.
• Delete personal data collected from under-13 users.

The company must also create a channel through which schools or a child-safety organization can report suspected underage accounts and submit compliance updates twice a year.

This is a significant step. A company can remove individual accounts or posts after the fact, but the New Mexico case focuses on whether the surrounding product design, age checks, disclosure practices, and reporting systems adequately protect children in the first place.

From Meta’s side, this is hardly a one-off incident. The Wall Street Journal reports that Meta is fighting thousands of lawsuits by individuals, school districts, and more than 40 state attorneys general which are pending in state and federal courts. 

Safer. Cleaner. Ad-free browsing.

INSTALL BROWSER GUARD

How to keep your children safe

In February, we published research on how safe kids are when using social media. As the company behind Facebook, Instagram, and WhatsApp, Meta plays a major role in this field. But unfortunately, it seems Meta isn’t even capable of blocking ads that contain AI generated Child Sexual Abuse Material (CSAM).

Some tips for parents:

• Keep communication open. Keep conversations about online activity open and ongoing, not one-off warnings. Talk to your child about who they interact with online and what kinds of conversations are appropriate. Warn them about strangers in comments, group and gaming chats, and direct messages. Encourage them to leave spaces that make them uncomfortable, even if they didn’t do anything wrong.
• Set up accounts together. Use child or teen accounts where available and avoid defaulting to adult accounts. Keep friends and followers lists set to private. Avoid using real names, birthdays, or other identifying details unless they are strictly required. Avoid facial recognition features for children’s accounts. For teens, be aware of “spam” or secondary accounts they’ve set up that may have looser settings.
• Treat age limits seriously. While we don’t like many of the ways they are implemented, the age restrictions are there for good reasons. Do not help children bypass a platform’s minimum age requirement. Age restrictions can reduce exposure to adult spaces, unwanted contact, and features not designed for children.
• Discuss images and AI explicitly. Teach children never to send intimate images, even to someone they know, and to be wary of “nudify,” face-swap, or AI image-editing apps. Explain that AI-generated sexual images can be used to harass, blackmail, or humiliate someone, even when no original explicit photo exists.
• Have a simple escalation plan. If someone becomes sexual, coercive, threatening, or asks to move a conversation to another app: stop replying, preserve relevant evidence, block the account, and report it to the platform and appropriate child-protection or law-enforcement services.
• Teach a “pause before you click” habit. Children should know that ads, giveaways, direct messages, and links can be scams or gateways to harmful material. Encourage them to ask an adult before installing unfamiliar apps, entering personal information, or sharing photos.

The most effective and probably hardest of them all is to find a balance between relying on device and platform controls and helicopter parenting. Device and platform controls can limit screen time, sensitive content, and unknown contacts. And they work best alongside trust, shared rules, and periodic check-ins rather than covert surveillance.

Scammers don’t need to hack you. They just need you to click once. 

Malwarebytes Identity Theft Protection catches suspicious activity before it becomes a problem.