Compliance software firms are deploying AI to decode complex trader communications and detect potential financial crimes as Wall Street and London regulators intensify scrutiny of market manipulation.

Companies like Behavox and Global Relay are developing AI tools that can interpret trader slang, emoji-laden messages and even coded language that traditional detection systems might miss, WSJ reports. The technology aims to replace older methods that relied on scanning for specific trigger words, which traders could easily evade. The story adds: Traders believed that "if somebody wanted to say something sketchy, they would just make up a funny word or, you know, spell it backward or something," [Donald] McElligott (VP of Global Relay) said. "Now, none of that"s going to work anymore."

Canon is requiring users to pay a monthly subscription fee to fully use their cameras as webcams on computers. The company's new EOS Webcam Utility software restricts features like HD resolution, brightness adjustments and color correction unless users pay $4.99 monthly or $49.99 annually.

An anonymous reader quotes a report from Reuters: Toyota Motor unit Hino Motors has agreed a $1.6 billion settlement with U.S. agencies and will plead guilty over excess diesel engine emissions in more than 105,000 U.S. vehicles, the company and U.S. government said on Wednesday. The Japanese truck and engine manufacturer was charged with fraud in U.S. District Court in Detroit for unlawfully selling 105,000 heavy-duty diesel engines in the United States from 2010 through 2022 that did not meet emissions standards. The settlement, which still must be approved by a U.S. judge, includes a criminal penalty of $521.76 million, $442.5 million in civil penalties to U.S. authorities and $236.5 million to California.

A company-commissioned panel said in a report in 2022 Hino had falsified emissions data on some engines going back to at least 2003. Hino agreed to plead guilty to engaging in a multi-year criminal conspiracy and serve a five-year term of probation, during which it will be barred from importing any diesel engines it has manufactured into the U.S., and carry out a comprehensive compliance and ethics program, the Justice Department and Environmental Protection Agency said. [...] The settlement includes a mitigation program, valued at $155 million, to offset excess air emissions from the violations by replacing marine and locomotive engines, and a recall program, valued at $144.2 million, to fix engines in 2017-2019 heavy-duty trucks

The EPA said Hino admitted that between 2010 and 2019, it submitted false applications for engine certification approvals and altered emission test data, conducted tests improperly and fabricated data without conducting any underlying tests. Hino President Satoshi Ogiso said the company had improved its internal culture, oversight and compliance practices. "This resolution is a significant milestone toward resolving legacy issues that we have worked hard to ensure are no longer a part of Hino's operations or culture," he said in a statement. Toyota's Hino Motors isn't the only automaker to admit to selling vehicles with excess diesel emissions. Volkswagen had to pay billions in fines after it admitted in 2015 to cheating emissions tests by installing "defeat devices" and sophisticated software in nearly 11 million vehicles worldwide. Daimler (Mercedes-Benz), BMW, Opel/Vauxhall (General Motors), and Fiat Chrysler have been implicated in similar practices.

An anonymous reader quotes a report from CNN: Apple is temporarily pulling its newly introduced artificial intelligence feature that summarizes news notifications after it repeatedly sent users error-filled headlines, sparking backlash from a news organization and press freedom groups. The rare reversal from the iPhone maker on its heavily marketed Apple Intelligence feature comes after the technology produced misleading or altogether false summaries of news headlines that appear almost identical to regular push notifications.

On Thursday, Apple deployed a beta software update to developers that disabled the AI feature for news and entertainment headlines, which it plans to later roll out to all users while it works to improve the AI feature. The company plans to re-enable the feature in a future update. As part of the update, the company said the Apple Intelligence summaries, which users must opt into, will more explicitly emphasize that the information has been produced by AI, signaling that it may sometimes produce inaccurate results.

Google has cut code migration time in half by deploying AI tools to assist with large-scale software updates, according to a new research paper from the company's engineers. The tech giant used large language models to help convert 32-bit IDs to 64-bit across its 500-million-line codebase, upgrade testing libraries, and replace time-handling frameworks. While 80% of code changes were AI-generated, human engineers still needed to verify and sometimes correct the AI's output. In one project, the system helped migrate 5,359 files and modify 149,000 lines of code in three months.

Microsoft has patched a Windows vulnerability that allowed attackers to bypass Secure Boot, a critical defense against firmware infections, the company said. The flaw, tracked as CVE-2024-7344, affected Windows devices for at least seven months. Security researcher Martin Smolar discovered the vulnerability in a signed UEFI application within system recovery software from seven vendors, including Howyar.

The application, reloader.efi, circumvented standard security checks through a custom PE loader. Administrative attackers could exploit the vulnerability to install malicious firmware that persists even after disk reformatting. Microsoft revoked the application's digital signature, though the vulnerability's impact on Linux systems remains unclear.

U.S. President Joe Biden has issued a comprehensive cybersecurity executive order, four days before leaving office, mandating improvements to government network monitoring, software procurement, AI usage, and foreign hacker penalties.

The 40-page directive aims to leverage AI's security benefits, implement digital identities for citizens, and address vulnerabilities that have allowed Chinese and Russian intrusions into U.S. government systems. It requires software vendors to prove secure development practices and gives the Commerce Department eight months to establish mandatory cybersecurity standards for government contractors.

Replit, an AI coding startup platform, has made a dramatic pivot away from professional programmers in a fundamental shift in how software may be created in the future. "We don't care about professional coders anymore," CEO Amjad Masad told Semafor, as the company refocuses on helping non-developers build software using AI.

The strategic shift follows the September launch of Replit's "Agent" tool, which can create working applications from simple text commands. The tool, powered by Anthropic's Claude 3.5 Sonnet AI model, has driven a five-fold revenue increase in six months. The move marks a significant departure for Replit, which built its business providing online coding tools for software developers. The company is now betting that AI will make traditional programming skills less crucial, allowing non-technical users to create software through natural language instructions.

An anonymous reader quotes a report from TechCrunch: On Tuesday, the United Nations Security Council held a meeting to discuss the dangers of commercial spyware, which marks the first time this type of software -- also known as government or mercenary spyware -- has been discussed at the Security Council. The goal of the meeting, according to the U.S. Mission to the UN, was to "address the implications of the proliferation and misuse of commercial spyware for the maintenance of international peace and security." The United States and 15 other countries called for the meeting. While the meeting was mostly informal and didn't end with any concrete proposals, most of the countries involved, including France, South Korea, and the United Kingdom, agreed that governments should take action to control the proliferation and abuse of commercial spyware. Russia and China, on the other hand, dismissed the concerns.

John Scott-Railton, a senior researcher at The Citizen Lab, a human rights organization that has investigated spyware abuses since 2012, gave testimony in which he sounded the alarm on the proliferation of spyware made by "a secretive global ecosystem of developers, brokers, middlemen, and boutique firms," which "is threatening international peace and security as well as human rights." Scott-Railton called Europe "an epicenter of spyware abuses" and a fertile ground for spyware companies, referencing a recent TechCrunch investigation that showed Barcelona has become a hub for spyware companies in the last few years.

Representatives of Poland and Greece, countries that had their own spyware scandals involving software made by NSO Group and Intellexa, respectively, also intervened. Poland's representative pointed at local legislative efforts to put "more control, including by the judiciary, on the relevant operational activities of the security and intelligence services," while also recognizing that spyware can be used in a legal way. "We are not saying that the use of spyware is never justified or even required," said Poland's representative. And the Greek representative pointed to the country's 2022 bill to ban the sale of spyware.

An anonymous reader quotes a report from VentureBeat: Colossal BioSciences has raised $200 million in a new round of funding to bring back extinct species like the woolly mammoth. Dallas- and Boston-based Colossal is making strides in the scientific breakthroughs toward "de-extinction," or bringing back extinct species like the woolly mammoth, thylacine and the dodo. [...] Since launching in September 2021, Colossal has raised $435 million in total funding. This latest round of capital places the company at a $10.2 billion valuation. Colossal will leverage this latest infusion of capital to continue to advance its genetic engineering technologies while pioneering new revolutionary software, wetware and hardware solutions, which have applications beyond de-extinction including species preservation and human healthcare.

"Our recent successes in creating the technologies necessary for our end-to-end de-extinction toolkit have been met with enthusiasm by the investor community. TWG Global and our other partners have been bullish in their desire to help us scale as quickly and efficiently as possible," said CEO Colossal Ben Lamm, in a statement. "This funding will grow our team, support new technology development, expand our de-extinction species list, while continuing to allow us to carry forth our mission to make extinction a thing of the past." Here's a summary of the startup's progress on its efforts to bring back the woolly mammoth, thylacine and the dodo:

Woolly Mammoth De-extinction Progress
- Generated chromosome-scale reference genomes for elephants and the first de novo assembled mammoth genome
- Acquired and aligned 60+ ancient mammoth genomes and 30+ genomes of extant elephant species, improving mammoth-specific variant accuracy
- Derived pluripotent stem cells for Asian elephants, advancing reproductive technologies essential for de-extinction

Thylacine De-extinction Progress
- Created a 99.9% complete ancient genome for the thylacine using long-read and RNA sequencing
- Assembled telomere-to-telomere genomes of dasyurid species to understand evolutionary relationships and support conservation of marsupials
- Progress in genomics and reproductive technologies positions Colossal ahead of schedule on critical de-extinction steps

Dodo De-extinction Progress
- Completed high-coverage genomes for the dodo, its relatives, and the critically endangered manumea
- Developed tools for avian genome engineering, including techniques for craniofacial gene-editing and primordial germ cell cultivation
- Significant advances in avian-specific genetic techniques are driving progress toward dodo restoration and bird conservation

The U.S. Federal Trade Commission sued Deere & Co on Wednesday for allegedly monopolizing the repair market for its farm equipment by forcing farmers to use authorized dealers, driving up costs and causing service delays.

The lawsuit, joined by Illinois and Minnesota, claims Deere maintains complete control over equipment repairs by restricting access to essential software to its dealer network. The action seeks to make repair tools available to equipment owners and independent mechanics. FTC Chair Lina Khan said repair restrictions can be "devastating for farmers" who depend on timely repairs during harvest.

Chinese drone maker DJI has removed software restrictions that previously prevented its drones from flying over sensitive areas in the United States, including airports, wildfires, and government buildings like the White House, replacing them with dismissible warnings.

The policy shift comes amid rising U.S. distrust of Chinese drones and follows a recent incident where a DJI drone disrupted firefighting efforts in Los Angeles. The company defended the change, saying drone regulations have matured with the FAA's new Remote ID tracking requirement, which functions like a digital license plate.

An anonymous reader shares a report: U.S. school districts affected by the recent cyberattack on edtech giant PowerSchool have told TechCrunch that hackers accessed "all" of their historical student and teacher data stored in their student information systems. PowerSchool, whose school records software is used to support more than 50 million students across the United States, was hit by an intrusion in December that compromised the company's customer support portal with stolen credentials, allowing access to reams of personal data belonging to students and teachers in K-12 schools.

The attack has not yet been publicly attributed to a specific hacker or group. PowerSchool hasn't said how many of its school customers are affected. However, two sources at affected school districts -- who asked not to be named -- told TechCrunch that the hackers accessed troves of personal data belonging to both current and former students and teachers. Further reading: Lawsuit Accuses PowerSchool of Selling Student Data To 3rd Parties.

OpenAI's "reasoning" AI model, o1, has exhibited a puzzling behavior of "thinking" in Chinese, Persian, or some other language -- "even when asked a question in English," reports TechCrunch. While the exact cause remains unclear, as OpenAI has yet to provide an explanation, AI experts have proposed a few theories. From the report: Several on X, including Hugging Face CEO Clement Delangue, alluded to the fact that reasoning models like o1 are trained on datasets containing a lot of Chinese characters. Ted Xiao, a researcher at Google DeepMind, claimed that companies including OpenAI use third-party Chinese data labeling services, and that o1 switching to Chinese is an example of "Chinese linguistic influence on reasoning."

"[Labs like] OpenAI and Anthropic utilize [third-party] data labeling services for PhD-level reasoning data for science, math, and coding," Xiao wrote in a post on X. "[F]or expert labor availability and cost reasons, many of these data providers are based in China." [...] Other experts don't buy the o1 Chinese data labeling hypothesis, however. They point out that o1 is just as likely to switch to Hindi, Thai, or a language other than Chinese while teasing out a solution.

Other experts don't buy the o1 Chinese data labeling hypothesis, however. They point out that o1 is just as likely to switch to Hindi, Thai, or a language other than Chinese while teasing out a solution. Rather, these experts say, o1 and other reasoning models might simply be using languages they find most efficient to achieve an objective (or hallucinating). "The model doesn't know what language is, or that languages are different," Matthew Guzdial, an AI researcher and assistant professor at the University of Alberta, told TechCrunch. "It's all just text to it."

Tiezhen Wang, a software engineer at AI startup Hugging Face, agrees with Guzdial that reasoning models' language inconsistencies may be explained by associations the models made during training. "By embracing every linguistic nuance, we expand the model's worldview and allow it to learn from the full spectrum of human knowledge," Wang wrote in a post on X. "For example, I prefer doing math in Chinese because each digit is just one syllable, which makes calculations crisp and efficient. But when it comes to topics like unconscious bias, I automatically switch to English, mainly because that's where I first learned and absorbed those ideas."

[...] Luca Soldaini, a research scientist at the nonprofit Allen Institute for AI, cautioned that we can't know for certain. "This type of observation on a deployed AI system is impossible to back up due to how opaque these models are," they told TechCrunch. "It's one of the many cases for why transparency in how AI systems are built is fundamental."

An anonymous reader quotes a report from The Verge: The Biden administration finalized a new rule that would effectively ban all Chinese vehicles from the US under the auspices of blocking the "sale or import" of connected vehicle software from "countries of concern." The rule could have wide-ranging effects on big automakers, like Ford and GM, as well as smaller manufacturers like Polestar -- and even companies that don't produce cars, like Waymo. The rule covers everything that connects a vehicle to the outside world, such as Bluetooth, Wi-Fi, cellular, and satellite components. It also addresses concerns that technology like cameras, sensors, and onboard computers could be exploited by foreign adversaries to collect sensitive data about US citizens and infrastructure. And it would ban China from testing its self-driving cars on US soil.

"Cars today have cameras, microphones, GPS tracking, and other technologies connected to the internet," US Secretary of Commerce Gina Raimondo said in a statement. "It doesn't take much imagination to understand how a foreign adversary with access to this information could pose a serious risk to both our national security and the privacy of U.S. citizens. To address these national security concerns, the Commerce Department is taking targeted, proactive steps to keep [People's Republic of China] and Russian-manufactured technologies off American roads." The rules for prohibited software go into effect for model year 2027 vehicles, while the ban on hardware from China waits until model year 2030 vehicles. According to Reuters, the rules were updated from the original proposal to exempt vehicles weighing over 10,000 pounds, which would allow companies like BYD to continue to assemble electric buses in California. The Biden administration published a fact sheet with more information about this rule.

"[F]oreign adversary involvement in the supply chains of connected vehicles poses a significant threat in most cars on the road today, granting malign actors unfettered access to these connected systems and the data they collect," the White House said. "As PRC automakers aggressively seek to increase their presence in American and global automotive markets, through this final rule, President Biden is delivering on his commitment to secure critical American supply chains and protect our national security."

An anonymous reader quotes a report from Gizmodo: Texas has sued (PDF) one of the nation's largest car insurance providers alleging that it violated the state's privacy laws by surreptitiously collecting detailed location data on millions of drivers and using that information to justify raising insurance premiums. The state's attorney general, Ken Paxton, said the lawsuit against Allstate and its subsidiary Arity is the first enforcement action ever filed by a state attorney general to enforce a data privacy law. It also follows a deceptive business practice lawsuit he filed against General Motors accusing the car manufacturer of misleading customers by collecting and selling driver data.

In 2015, Allstate developed the Arity Driving Engine software development kit (SDK), a package of code that the company allegedly paid mobile app developers to install in their products in order to collect a variety of sensitive data from consumers' phones. The SDK gathered phone geolocation data, accelerometer, and gyroscopic data, details about where phone owners started and ended their trips, and information about "driving behavior," such as whether phone owners appeared to be speeding or driving while distracted, according to the lawsuit. The apps that installed the SDK included GasBuddy, Fuel Rewards, and Life360, a popular family monitoring app, according to the lawsuit.

Paxton's complaint said that Allstate and Arity used the data collected by its SDK to develop and sell products to other insurers like Drivesight, an algorithmic model that assigned a driving risk score to individuals, and ArityIQ, which allowed other insurers to "[a]ccess actual driving behavior collected from mobile phones and connected vehicles to use at time of quote to more precisely price nearly any driver." Allstate and Arity marketed the products as providing "driver behavior" data but because the information was collected via mobile phones the companies had no way of determining whether the owner was actually driving, according to the lawsuit. "For example, if a person was a passenger in a bus, a taxi, or in a friend's car, and that vehicle's driver sped, hard braked, or made a sharp turn, Defendants would conclude that the passenger, not the actual driver, engaged in 'bad' driving behavior," the suit states. Neither Allstate and Arity nor the app developers properly informed customers in their privacy policies about what data the SDK was collecting or how it would be used, according to the lawsuit. The lawsuit violates Texas' Data Privacy and Security Act (DPSA) and insurance code by failing to address violations within the required 30-day cure period. "In its complaint, filed in federal court, Texas requested that Allstate be ordered to pay a penalty of $7,500 per violation of the state's data privacy law and $10,000 per violation of the state's insurance code, which would likely amount to millions of dollars given the number of consumers allegedly affected," adds the report.

"The lawsuit also asks the court to make Allstate delete all the data it obtained through actions that allegedly violated the privacy law and to make full restitution to customers harmed by the companies' actions."

Linux creator Linus Torvalds announced a playful giveaway for kernel contributors: he'll hand-build a guitar effects pedal for one lucky developer selected at random, using his holiday hobby skills with pedal kits. To qualify, developers must have a 2024 commit in Torvalds' kernel git tree and email him with the subject "I WANT A GUITAR PEDAL". He'll pick a winner at random, use his own money to buy a pedal kit from a company called Aion FX, and then 'build it with my own shaky little fingers, and send it to the victim by US postal services.'" The Register reports: The odd offer appeared in his weekly state-of-the-kernel post, which on Sunday US time informed the Linux world that release candidate (rc) seven for version 6.13 of the Linux kernel "is slightly bigger than normal, but considering the timing, it's pretty much where I would have expected, and nothing really stands out." Torvalds therefore expects version 6.13 to debut next week, meaning it will arrive after his preferred seven release candidates and without delays caused by the usual holiday-period slowdown. Torvalds then added a postscript in which he revealed that he often uses the holiday season to build LEGO, which he frequently receives for Christmas and his late December birthday.

He kept up that tradition last year, but "also ended up doing a number of guitar pedal kit builds" which he described as "LEGO for grown-ups with a soldering iron." [...] Torvalds doesn't play guitar, but did the builds "because I enjoy the tinkering, and the guitar pedals actually do something and are the right kind of "not very complex, but not some 5-minute 555 LED blinking thing.'" He enjoyed the experience and wants to build more pedals, so has decided to give one away to a random kernel developer -- both as an act of generosity and to "check to see if anybody actually ever reads these weekly rc announcements of mine." Torvalds rated his past pedal-building efforts a "good success so far" but warned entrants "I'm a software person with a soldering iron."

"I will test the result to the best of my abilities, and the end result may actually work ... but you should set your expectations along the lines of "quality kit built by a SW person who doesn't know one end of a guitar from the other.'"

An anonymous reader quotes a report from 404 Media: Mikey Shulman, the CEO and founder of the AI music generator company Suno AI, thinks people don't enjoy making music. "We didn't just want to build a company that makes the current crop of creators 10 percent faster or makes it 10 percent easier to make music. If you want to impact the way a billion people experience music you have to build something for a billion people," Shulman said on the 20VC podcast. "And so that is first and foremost giving everybody the joys of creating music and this is a huge departure from how it is now. It's not really enjoyable to make music now [...] It takes a lot of time, it takes a lot of practice, you need to get really good at an instrument or really good at a piece of production software. I think the majority of people don't enjoy the majority of the time they spend making music."

Suno AI works like other popular generative AI tools, allowing users to generate music by writing text prompts describing the kind of music they want to hear. Also like many other generative AI tools, Suno was trained on heaps of copyrighted music it fed into its training dataset without consent, a practice Suno is currently being sued for by the recording industry. In the interview, Shulman says he's disappointed that the recording industry is suing his company because he believes Suno and other similar AI music generators will ultimately allow more people to make and enjoy music, which will only grow the audience and industry, benefiting everyone. That may end up being true, and could be compared to the history of electronic music, digital production tools, or any other technology that allowed more people to make more music.

The Register's Simon Sharwood reports: Broadcom has lost another sizable customer for its VMware platform: Austrian cloud provider Anexia has moved 12,000 VMs, some of them rented by major European businesses, to an open-source system based on the KVM hypervisor. Anexia was founded in 2006, is based in Austria, and provides cloud services from over 100 locations around the world by placing equipment in third party datacenters. Clients include remote access and control vendor TeamViewer, and airline Lufthansa -- plus plenty more outfits that need reliable hosting and service to match.

CEO Alexander Windbichler told The Register that after Broadcom acquired VMware, increased licensing costs, and made big changes to its partner program, Anexia remained eligible to operate a VMware-powered cloud. But Windbichler felt he couldn't afford to continue, because Broadcom offered new terms that saw the cost of VMware licenses rise sharply. The CEO preferred not to enumerate the increase precisely however The Register understands it exceeded 500 percent. Whatever the actual figure, Windbichler said the cost increase "Would have been existential for us."

"We used to pay for VMware software one month in arrears," he said. "With Broadcom we had to pay a year in advance with a two-year contract." That arrangement, the CEO said, would have created extreme stress on company cashflow. "We would not be able to compete with the market," he said. "We had customers on contracts, and they would not pay for a price increase." Windbichler considered legal action, but felt the fight would have been slow and expensive. Anexia therefore resolved to migrate, a choice made easier by its ownership of another hosting business called Netcup that ran on a KVM-based platform.

U.S. companies are increasingly using AI to curb hiring plans, citing "cost avoidance" as a key metric to justify AI investments amid pressure to show returns. At software firm TS Imagine, AI-powered email sorting saves 4,000 work hours annually at 3% of employee costs, while Palantir reported AI reduced future headcount needs by 10-15%, according to company executives.

The trend is most pronounced in software development and customer service sectors, where companies are deferring or scaling back hiring plans, said Gartner analyst Arun Chandrasekaran. This shift comes as long-term unemployment in the U.S. has risen more than 50% since late 2022, though tech sector unemployment dropped to 2% in December.