An anonymous reader quotes a report from Ars Technica: Several US senators have written a letter to the Commodity Futures Trading Commission (CFTC), inquiring about the agency's "plans to crack down on prediction markets" that offer "contracts for individuals to bet on wildfires." "Offering bets on destructive wildfires threatens to minimize communities' suffering, all so the rich and powerful can profit," wrote (PDF) the group of senators, who represent Oregon, California, Nevada, Minnesota, and New Hampshire. The document specifically cites that Polymarket hosted bets in January 2025 on the wildfires in Los Angeles, and it mentions another website which specifically accepts "simulated bets" exclusively on California wildfires.

"There's also the heightened risk -- according to state and local fire officials -- that individuals could be tempted to commit arson in order to make sure their bets are successful," the letter continues. "By offering contracts on fires, prediction market sites run the risk of encouraging people to influence fires that have already started, creating additional concerns around public safety and insider trading." [...] Kalshi spokesperson Elisabeth Diana told Ars by email that the company does not allow such wildfire markets "because they create perverse incentives." But its primary rival, Polymarket, has taken a different approach. A spokesperson for Polymarket told Ars in an emailed statement that the company does not "profit from outcomes," adding that people "come to Polymarket for information." "While we are not blind to the risks, removing these markets does not prevent a tragedy but makes the most accurate information less accessible to the people who need it most," he wrote.

Trump Media has officially launched its $100,000-per-month data feed giving trading firms machine-readable access to Truth Social posts milliseconds before the public. According to Fortune, five Wall Street firms have already signed up for the service, which "would generate about $500,000 in monthly revenue, or $6 million annually."

Critics argue the service could let President Trump, who owns about 41% of the company, profit from early access to market-moving presidential communications. "I'll be blunt," Gian Luca Clementi, an economics professor at NYU Stern School of Business, told Fortune. "This is insider trading by definition."

"He's going to monetize the role of the office of the president of the United States," he said. "The undisputable fact is that somebody is going to earn some more money than before, and that's the president of the United States." From the report: Trump's media venture has struggled to build a profitable social media business despite its lofty valuation. Truth Social has reported significant operating losses since going public. According to the company's earnings report for Q1 2026, Trump Media & Technology Group netted a roughly $405 million loss and raised less than $900,000 in sales.

Not everyone agrees the arrangement meets the legal bar for insider trading. Shannon Devine, a spokeswoman for Trump Media & Technology Group, has pushed back on the characterization, telling Quartz that Truth API "offers customers the fastest way to ingest publicly available Truth Social data" and that critics "must have invented a new theory of 'insider trading' based on publicly available information."

Classic insider trading law hinges on trading on secret, material information in breach of a fiduciary duty, and Truth Social posts are, by design, meant to become public within moments -- raising real doctrinal uncertainty about whether faster access alone qualifies. But other legal experts argue the greater risk lies ahead. Richard Painter, former White House chief ethics counsel, has argued that the arrangement could violate federal law once Trump posts genuinely market-moving news -- on tariffs, military action, or other policy decisions -- before it's public, with Truth Social effectively acting as a paid "tipper" on the president's behalf. Sen. Alex Padilla (D-Calif.) said he plans to introduced legislation Tuesday to ban the president from selling expedited access to his statements.

Longtime Slashdot reader schwit1 shares a report from Reuters: The Federal Communications Commission, which oversees the U.S. telecom industry, is working on the measure to bar imports of new Chinese optical transceivers, which allow data to travel over fiber-optic cables at the speed of light within data centers. Officials hope to publish it this year, when it would take effect. The move, not previously reported, aims to prevent Chinese firms from stealing data, installing malware or disrupting service at U.S. data centers, which house the chips to train and run AI models.

The FCC could still modify or shelve the restriction, the sources stressed, speaking on condition of anonymity to discuss sensitive matters. [...] A U.S. ban on new models of Chinese data center devices would likely hit China's Zhongji Innolight, one of the biggest global sellers of transceivers, which was added to the Pentagon's list of alleged Chinese military-backed companies in June. The list can be a harbinger of tougher action. A ban could also raise costs for American cloud firms such as Amazon Web Services, as it may force them to transition to other producers such as U.S.-based Coherent and Lumentum.

Apple is now seeking a preliminary injunction to prevent OpenAI and Jony Ive's io startup from developing AI hardware allegedly based on stolen Apple trade secrets. "The iPhone maker also claims that more of its former employees may be involved with the trade secrets theft," reports TechCrunch. From the report: In a new filing, Apple is requesting expedited discovery from the accused OpenAI employees, senior systems engineer Chang Liu and Chief Hardware Officer Tang Yew Tan; OpenAI, and its foundation; and io, the device startup co-founded by Apple's former lead designer Jony Ive. Apple also notes that its continued investigation has so far revealed 11 other former Apple employees beyond Liu and Tan may have been witnesses or otherwise involved in the case, and others who were previously named in the original complaint, like OpenAI employee Yu-Ting Peng.

The filing marks an escalation in Apple's legal battle with OpenAI, as it suggests Apple has uncovered new evidence that the misconduct goes beyond the former employees named in the original complaint. "For example, another former Apple employee seems to have met with Mr. Liu and Ms. Peng in advance of Ms. Peng's interview at OpenAI and discussed with them during that meeting Apple proprietary information relating to unannounced products," the filing states. "Yet another former Apple employee took screenshots of confidential Apple documents relating to an unannounced Apple product before an interview at OpenAI."

"And, after Apple filed its complaint, multiple former Apple employees now working at OpenAI reached out to discuss returning Apple-issued work devices they kept when they left Apple," Apple claims, suggesting there were more who were possibly involved with the scheme. Apple is pushing the court to allow for expedited discovery because it believes it has good cause to suspect that there are others involved in the theft of its intellectual property. The company noted that its motion for a preliminary injunction is also pending. Apple's request for a preliminary injunction is "both based on false information and completely unnecessary because we do not have, nor want, any of their trade secrets," said OpenAI in a blog post.

"We're much more interested in building innovative products and technologies that push the frontier," OpenAI's statement reads.

An anonymous reader quotes a report from The Guardian: Apple has launched a new legal challenge against a UK government demand to access its customers' highly encrypted data, a year after the Home Office agreed to abandon its previous request. The US tech company launched the legal complaint last month at the Investigatory Powers Tribunal (IPT), an independent court that has the power to investigate claims that the UK intelligence services have acted unlawfully. The UK government had made a second request to Apple to grant it a "back door" to encrypted iCloud data belonging to British users, according to an order issued by the court.

Britain backed down on its original demand for access to data from UK and US customers last year, after a heated transatlantic tussle over encryption between London and Washington. UK authorities subsequently issued a new "technical capability notice" (TCN) to Apple that did not apply to American users. Apple is seeking to challenge the British government's powers to issue TCNs under the UK Investigatory Powers Act, according to the details of the new legal case first reported by the Financial Times. [...] The original TCN issued last year asked Apple for the right to see users' encrypted data protected by its advanced data protection (ADP) program in the event of a national security risk.

Apple said the removal of the tool -- which not even it can access -- would make users more vulnerable to data breaches from bad actors and other threats to customer privacy. Creating a "back door" would also mean all data was accessible by Apple, which it could be forced to share with law enforcement possessing a warrant. As a result, Apple withdrew UK customers' access to its ADP program in January 2025. The Home Office has maintained that the Investigatory Powers Act, under which such orders are issued, contains robust safeguards and is used only when absolutely necessary.

A Russia-linked group tracked as Midnight Blizzard has compromised hotel and conference Wi-Fi portals worldwide, redirecting guests to phishing pages and fake software updates that steal credentials, session tokens, and other sensitive data. Microsoft says the campaign, dubbed CaptiveCrunch, "targets traveling employees generally rather than a particular sector," reports iTNews. From the report: Midnight Blizzard, tracked internally by Microsoft under its earlier codename NOBELIUM, is attributed by the US and UK governments to Russia's SVR (Sluzhba Vneshney Razvedki) foreign intelligence service. Microsoft's technical analysis said compromises occurred in "several countries" without naming them, and it did not give a total number of affected venues, organisations or individuals.

A related investigation published earlier in July by security firm ReliaQuest, and which Microsoft cited in its report, found compromised captive portal gateways across multiple United States cities as well as in India and Saudi Arabia, mostly at hotels. ReliaQuest said the traffic it observed came from organizations across financial services, professional services, legal, health care, energy and retail, suggesting the campaign targets traveling employees generally rather than a particular sector.

[...] Where attackers gained a foothold, Microsoft said they deployed two main tools: CornFlake, a Windows remote access trojan (RAT) written in Go capable of keylogging, screenshot and webcam capture, audio surveillance and credential and session token theft. They would also drop ChocoShell, an in-memory PowerShell infostealer targeting browser cookies, saved passwords, Microsoft 365 single sign-on (SSO) tokens and wi-fi credentials. Microsoft also said it has seen indications the attackers might be targeting Android devices with similar prompts urging victims to download and install an APK file.

A woman found her police officer ex-boyfriend had used Flock's camera system 600 times to look up the location of her and her daughter, reports the Washington Post (Alternate URL here). (She found out through Have I Been Flocked, described as "a website that aggregates police search logs made available through public records.")

But it turns out dozens more police officers have also misused Flock... Authorities have charged or accused at least 50 law-enforcement officers of using license-plate readers for unauthorized purposes, including to stalk women without their knowledge or consent, a Post analysis of police and court records found. In 26 of these cases, police investigators and prosecutors said the officers used the technology to spy on their wives, their girlfriends, their exes, their exes' new partners or women they wanted to meet. In other cases, police or prosecutors have not specified the alleged surveillance targets. Flock's system was used in 46 of the cases analyzed by The Post, while the other cases involved competing products...

After The Post relayed its findings to Flock, the company said in a statement it "will soon be announcing better filters and tools to stop abuse before it happens...." In April, the company rolled out a new voluntary "audit assistance" feature, which agencies can choose to enable, that automatically scans officers' searches for suspicious activity, such as queries repeatedly targeting the same vehicle or run by officers off the clock. In an interview with The Post, Flock chief executive Garrett Langley said misuse of its systems is inevitable and that the company is focused on providing tools to catch perpetrators after the fact... "We're not going to change humans, and humans make bad decisions," Langley said. "What we can do is make sure that they know if you use this tool, you will be held accountable...."

Through automated license-plate reader systems, or ALPRs, officers could trace the rhythms and travels of their subjects' daily lives, leading in some instances to violent confrontations, moments of psychological manipulation, and threats of coercion and control, the analysis found.

- In Wisconsin, a police officer allegedly used Flock to check whether his ex-girlfriend had gone to an abortion clinic, according to a police affidavit for a case set for trial this month.

- In Kansas, a police chief who tracked his ex through Flock sneaked up on her while she was intimate with another man, a state police certification body alleged, leading to his firing.

- In Florida, a deputy speeding to stop a young actress he'd added to a watch list for a license-plate tool called Guardian nearly caused a head-on crash, according to a police report and video from his dashboard camera. The deputy was arrested in March, and his attorney declined to comment.

- And in California, prosecutors said a former deputy, Alexander Vanny, used Flock as part of a months-long campaign of "stalking" and "humiliating" his former fiancée that also involved following her around town and installing a hidden camera in her roommate's bathroom, according to a sentencing brief...

While some of the searches resulted in officers' firings, prosecutions and prison sentences, police departments in other cases allowed officers to continue using the systems even after receiving warnings that they were being misused... An array of privacy advocates has argued that Flock could deter bad actors by making simple changes to its product, such as requiring officers to label every search with a criminal case number. Some policing experts also warned that agencies' inconsistencies in developing and enforcing standard procedures for license-plate readers could lead to further misconduct. With no federal laws governing use and only a patchwork of state laws, many of the country's roughly 18,000 police agencies are left to decide their rules on their own...

Langley, Flock's chief, has dismissed pushes by activists for the company to further limit how officers use its product. "No one elected me the police chief of America," he told Forbes last year, adding, "I don't think it's our job to police the police."
The Post also got this quote from an officer was fired and sentenced to probation after pleading no contest to charges of computer-system misuse, stalking and battery. "Pretty much everybody uses that computer system" improperly in the department, he said, and "they don't audit it [nearly] as much as they should."

Flock told The Post it now has over 120,000 cameras in more than 6,000 communities, recording 20 billion license plate scans every month.

New York has finalized new rules that will govern social media apps in the state starting on January 25, 2027. The law prohibits social media platforms from sending notifications to minors between midnight and 6 a.m. without parental consent. And minors "will only be shown content from other accounts they follow or otherwise select in a set sequence, such as chronological order," rather than "the default algorithmically personalized feeds... unless they get parental consent for an addictive feed." (Social media companies "must offer at least one alternative method for age assurance besides providing a government-issued ID," the announcements points out, and any information used to determine age "must not be used for any other purpose and must be deleted or de-identified immediately after its intended use.")

But meanwhile, the EFF writes that a committee in the U.S. Senate is considering the SCREEN ACT, "a sweeping age-verification bill that would require online services to verify users' ages before they can access any sexually explicit content. If this bill passes, it will force millions of adult internet users to give up their anonymity, privacy, and security before they access lawful speech." Unlike many state-age verification laws — which have been harmful in their own right — the SCREEN Act has no requirement that a significant portion of the website consist of sexually explicit content that is harmful to minors. The bill requires nearly any service hosting even a single piece of sexually explicit content to verify the ages of its users. The result is that the bill would apply not only to adult content sites like PornHub or OnlyFans, but also streaming services like Netflix, and social media platforms like Reddit, Discord, or Bluesky, if they host any adult content...

Under the SCREEN Act, the "bouncer" will be a digital age-verification service that captures your personal information and saves it to a database for an unspecified amount of time. The consequences of the bill won't be limited to minors. If websites and apps are expected to reliably identify teenagers, adults will be asked to prove they are adults. Even worse, the SCREEN Act is a privacy and data security nightmare. One provision of the bill requires services to take reasonable steps to protect the data collected and to not maintain for longer than is necessary. But these are terribly weak protections that impose no meaningful collection, use, or retention limits on services collecting people's private information...

The SCREEN Act also targets virtual private network (VPN) users and providers. The bill requires covered websites to verify users' ages based on their IP addresses unless the service can determine that the user is outside the United States, and specifically requires age verification on traffic coming from known VPN addresses. In practice, this discourages the use of VPNs and proxy servers, which millions of people rely on for legitimate purposes such as protecting personal privacy, securing public Wi-Fi connections, safeguarding journalists and activists, and preventing data tracking...

The SCREEN Act creates onerous age-verification rules that will block adults from accessing lawful speech, curtail their ability to be anonymous, and jeopardize the data security and privacy of all internet users.

An anonymous reader quotes a report from NBC News: Cyberattacks targeting municipal water systems have been reported in at least seven states this week, prompting the FBI and the Environmental Protection Agency to warn utilities nationwide that hackers are trying to disrupt critical water infrastructure. In a public service announcement Thursday, the agencies said water and wastewater utilities have reported incidents to the FBI, with some malicious activity degrading water operations. The announcement does not name the states.

The warning comes after hackers targeted more than 30 municipal water facilities in Minnesota in an attack that had hallmarks of Iranian meddling, according to a law enforcement official. It is still under investigation. A spokesperson for Minnesota's information technology services agency said Thursday there was no indication the breaches contaminated any municipal water supplies. The federal Cybersecurity and Infrastructure Security Agency said in a separate alert that some larger attacks on water infrastructure had "resulted in boil water notices and sustained manual operations," though it did not say where.

[...] The federal advisory said the malicious cyber actors, or MCAs, targeted specific brands of control systems used by municipal water utilities, though the FBI and the EPA urged operators of all systems to take precautions. [...] The agencies said the hackers remotely accessed internet-facing devices, changed IP addresses and passwords, and caused utilities to lose monitoring and control capabilities. The federal advisory calls on system operators to remove programmable logical controllers, or PLCs, from direct internet exposure by putting them behind secure gateways and firewalls; use strong passwords; and limit communications between authorized control system devices through access control lists.

New York has sued prediction-market platform Kalshi, alleging it operates an "illegal gambling operation" without state authorization. "No matter what they call themselves, prediction markets like Kalshi are gambling platforms, plain and simple," said New York Attorney General Letitia James in a press release announcing the lawsuit. "By ignoring our laws, Kalshi is running an illegal operation and harming New Yorkers in the process." CNBC reports: In a case filed in a Manhattan state court (PDF), the lawsuit claims that Kalshi accepts wagers as a gambling business in disregard for the state's constitution and laws by not being registered with the New York State Gaming Commission. Governor Kathy Hochul in the press release said the state is taking the action to stop what it views as illegal behavior and bring the company into compliance with New York law. The lawsuit is seeking a permanent injunction against Kalshi.

The suit by the state is also seeking a total restitution to users who have placed trades on the platform, a $100,000 penalty for each attempt to offer sports wagering, and another penalty three times the amount the company has gained while allegedly operating in violation of New York law. The state estimates that could total $36 billion.

A production company and filmmaker are suing Netflix for $105 million, alleging the streamer lost a stolen drive containing an unencrypted master copy of the unreleased Nicolas Cage film Fortitude, which they claim damages its exclusivity and market value. Netflix denied responsibility for the lost film but said it takes content security seriously and has offered to monitor piracy sites for unauthorized copies. CBS News reports: The complaint filed on Wednesday in California district court alleges that the film's associate producer, Daniel Haido, hand-delivered an unencrypted master copy of the film to Netflix so the company could screen it as a potential buyer. Haido verbally instructed the employee to delete the files after the screening, according to the suit. A little over a week after the screening, Netflix emailed the filmmakers to say the drive had been stolen, the plaintiffs allege. "Someone stole a good amount of drives from our office desks this past week," a Netflix executive wrote in the email, according to the suit.

The complaint notes the movie, entitled "Fortitude," took over seven years to make and cost $45 million. It tells the story of a secret mission called Operation Fortitude during World War II that was orchestrated to mislead the Nazis about the Allied invasion of Europe. The film stars Nicolas Cage as Dusko Popov, a real-life spy during World War II, as well as Sir Ben Kingsley and Ron Perlman.

The plaintiffs said studios will now be dissuaded from buying the rights to the movie, knowing that a version of it could be released by a third party for free. "The film's value depended in significant part on its exclusivity as an unreleased, first-to-market work," the complaint states. "By losing control of the film, Netflix destroyed that exclusivity and materially, if not completely, impaired the film's marketability."

Anthropic found that Claude models breached three outside organizations during cybersecurity tests because misconfigured environments accidentally gave them access to the internet. The company notified those affected and urged other AI labs to audit their own testing systems. The BBC reports: Anthropic said in a statement that it reviewed more than 140,000 tests to find evidence that Claude - its family of AI models - could access the internet from testing environments that were designed to be sealed off. The tests include so-called "capture-the-flag" evaluations in which Claude was tasked with obtaining information by breaching other systems - a common way that experts assess a model's hacking capabilities.

A "misconfiguration" on systems run by Anthropic and its testing partner left the models with live internet access, allowing them to breach other systems, the San Francisco-based firm said. Anthropic said the earliest incidents date back to April and that it is "approaching the fixes as if the responsibility were ours alone." Neither Anthropic nor the organizations that were breached had noticed the intrusions at the time.

Anthropic said it could have reviewed its records more thoroughly and added that the findings gave the firm "cautious optimism" that such risks can be overcome with more investment and tighter measures. "The broader lesson is not necessarily that AI has developed a fundamentally new attack capability," cyber security expert David Allott told the BBC. "Instead, it is that AI agents can combine capabilities, obtain credentials and system access to take actions autonomously, while adapting scope and scale at machine speed," he added. The announcement comes just days after OpenAI said that its models had breached the systems of other companies, including AI tools platform Hugging Face.

An anonymous Slashdot reader writes: Surveillance cameras owned by Flock Safety have been cut down with electric saws in New York State, vandalized with paint in Oakland, California, and rammed with a truck in Idaho. Flock claims its services fight crime, but law enforcement agencies also use their services to track vehicles based on license plate numbers and reconstruct their movements, even when the drivers and owners of these vehicles have never been accused or convicted of any crime. (Flock states it has 120,000 automated cameras that record license plate data, as well as pan-tilt-zoom cameras, across the United States.)

A guerilla mindset among average citizens has seen these cameras forcibly disabled within recent weeks with sympathy directed toward the vigilantes. In June, a West Virginia man accused of destroying several Flock cameras was arrested. Under a Facebook post from the local NBC affiliate announcing his arrest are dozens of people volunteering to provide alibis. "He was out fishing with me that day, you got the wrong guy," one man wrote.

ABC accused FCC Chair Brendan Carr of "attempted censorship," arguing that an early review of its eight broadcast licenses is politically motivated retaliation over the network's coverage and could chill the entire media industry. "The retaliation against ABC is a signal to every media company in the country: accommodate the Administration's view of what news coverage should look like or pay the price," the Disney-owned television network wrote. Politico reports: "Across the government, regulatory and contracting carrots and sticks have been trained on other disfavored speakers," ABC's lawyers added in the 119-page filing. "The tools vary; the objective does not: a media industry too fearful of official reprisal to report the news freely."

Carr has repeatedly rejected accusations of censorship while defending his efforts to rein in what he calls abusive, politically motivated behavior by licensed TV broadcasters. "I don't view the FCC as the speech police," he told POLITICO this week for an upcoming episode of the podcast "The Conversation."

In its filing, ABC pointed to an outpouring of support it has received in more than 152,000 comments in the agency's license review, as well as recent warnings from conservative Supreme Court Justice Neil Gorsuch, Sen. Ted Cruz (R-Texas) and various pro-free-market organizations about the dangers of a politically motivated FCC. Those include letters from a bipartisan group of former FCC leaders, community and advocacy groups and lawmakers of both parties. "The Commission's attempted censorship of ABC has attracted condemnation across the political aisle," the network wrote.

A UK parliamentary inquiry found that a catastrophic Ministry of Defense breach exposing 18,700 Afghans could have been prevented with basic Excel training, after an employee unknowingly shared a hidden worksheet containing their details. The Independent reports: The leak, in February 2022, exposed the details of 18,700 Afghans who said they were in danger from the Taliban because of their links to UK forces and now wanted to escape to Britain. The blunder triggered an unprecedented superinjunction used against the national media, including The Independent, and prompted a secret evacuation program -- the cost of which is still unclear but which likely ran into the billions of pounds. Following the revelation by this outlet and others in July last year of the hidden operation, MPs set up an inquiry to scrutinize what had happened. In their report, the defense selection committee concluded that:

- The data breach could have been prevented if Ministry of Defense (MoD) personnel had received basic Excel training
- By August 2023, when the department discovered the leak, thousands of people already knew that a significant data incident had taken place
- The government did not strike "the right balance between operational secrecy and democratic accountability" -- and the superinjunction was in place for too long
- Secrecy denied affected Afghans the chance to take steps to protect themselves and their families and caused delays to evacuation program
- Thousands of Afghans eligible to come to Britain are still trapped in Afghanistan with the government failing to explain how they will help get families to safety.

MPs have called on the government to publish periodic reassessments of the risks facing Afghan applicants to UK resettlement schemes, with officials to report findings annually. They also want ministers to publish a clear policy explaining how they will help Afghans who are eligible to come to Britain but who have not yet been evacuated. The defense committee have also called on the MoD to explain who was responsible for data protection risk before the Afghan breach, criticizing the lack of accountability within the civil service.