×
Crime

Telegram CEO Released By Police, Transferred To Court For Possible Indictment (arstechnica.com) 84

Telegram CEO Pavel Durov is heading to court for a possible indictment after being released from police custody, authorities in France said on Wednesday. From a report: "An investigating judge has ended Pavel Durov's police custody and will have him brought to court for a first appearance and a possible indictment," according to a statement from the Paris prosecutor's office that was quoted in an Associated Press article. Durov was arrested in Paris on Saturday and questioned by police for several days. The French investigative judge will "decide whether to place him under formal investigation following his arrest as part of a probe into organized crime on the messaging app," Reuters wrote today.

"Being placed under formal investigation in France does not imply guilt or necessarily lead to trial, but indicates that judges consider there is enough to the case to proceed with the probe. Investigations can last years before being sent to trial or shelved," Reuters wrote. The judge's decision on a formal investigation is expected today, the article said. On Monday, prosecutor Laure Beccuau issued a statement saying Durov was arrested "in the context of a judicial investigation" into a "person unnamed." The wording leaves open the possibility that the unnamed person is someone else, but the prosecutor's statement listed a raft of potential charges that may indicate what Durov could be charged with.
Update: Telegram CEO Indicted in Paris Court .
United States

Appliance and Tractor Companies Lobby Against Giving the Military the Right to Repair (404media.co) 142

Device manufacturers across multiple industries are lobbying against proposed legislation that would require military contractors to provide the U.S. military with easier access to repair materials and information, according to a document obtained by 404 Media.

The legislation, Section 828 of the Defense Reauthorization Act, aims to address the military's current inability to repair equipment ranging from fighter jets to Navy battleships without relying on contractors. Sen. Elizabeth Warren highlighted the issue in a May hearing, citing examples of how repair restrictions lead to increased costs and operational delays for the Department of Defense.

The lobbying effort extends beyond military contractors to include organizations representing industries such as irrigation equipment, motorcycles, tractors, plumbing, medical devices, and consumer technology. In a letter to lawmakers, these groups argue that the legislation would impose significant burdens on contractors and undermine existing technical data rights statutes.
The Courts

SEC Threatens Legal Action Against NFT Marketplace OpenSea (x.com) 21

U.S. Securities and Exchange Commission (SEC) has issued a Wells notice to OpenSea, the leading non-fungible token (NFT) marketplace, threatening legal action over alleged securities violations. The SEC contends that NFTs traded on OpenSea's platform may constitute securities, a move that could have far-reaching implications for the digital art and collectibles industry. OpenSea CEO Devin Finzer denounced the SEC's action as an overreach that could stifle innovation and harm creators. The company pledged $5 million to cover legal fees for NFT creators and developers who receive Wells notices.
Power

Publicly Available EV Charger Network Doubles Under Biden-Harris Administration (electrek.co) 247

An anonymous reader quotes a report from Electrek: Over 192,000 publicly available charging ports are now online, and approximately 1,000 new chargers are being added each week. To build on this momentum, the federal government has awarded $521 million in grants to further expand the national network, with new chargers being deployed across 29 states, two Federally Recognized Tribes, and the District of Columbia.

The $521 million investment is divided into two key areas: 41 community projects ($321 million) and 10 corridor fast-charging projects ($200 million). The grant awards also support President Biden's Justice40 Initiative, which aims for 40% of the overall benefits of federal investments to flow to disadvantaged communities, with over half of the funding going to sites in disadvantaged communities.
US Transportation Secretary Pete Buttigieg emphasized the importance of this initiative, stating, "The Biden-Harris Administration has been clear about America leading the EV revolution, and thanks to the historic [Bipartisan Infrastructure Law] package, we're building a nationwide EV charger network to make sure all drivers have an accessible, reliable, and convenient way to charge their vehicles."
Medicine

FDA Expands Probe of Ecstasy-Based Drug Studies (arstechnica.com) 32

ole_timer shares a report from Ars Technica, written by Beth Mole There's more bad news for the company behind an experimental MDMA therapy for post-traumatic stress disorder, which the Food and Drug Administration roundly rejected earlier this month. According to a report from The Wall Street Journal, the FDA is now expanding an investigation into clinical trials behind the experimental psychedelic therapy -- even though the agency has already rejected it. Agency investigators reportedly interviewed four additional people last week, asking questions regarding whether the trials underreported side effects.

People involved in the trial have previously alleged, among other things, that ill effects, such as suicidal thoughts, went undocumented, and trial participants were discouraged from reporting them to bolster the chances of FDA approval. Overall, the MDMA trials faced crushing criticism amid the FDA's review, with outside experts and agency advisers calling out allegations of sexual misconduct at one trial site, as well as flaws in overall trial designs, multiple sources of biases, and claims that the company behind the therapy, Lykos, fostered a cult-like belief in psychedelics.

According to the Journal, the recent interviews were being conducted by the FDA's Office of Regulatory Affairs, which oversees inspections, and a subdivision of that office called Biomedical Research Monitoring Program, which works to ensure the quality and integrity of data submitted to FDA. Notably, when the agency rejected MDMA, it advised Lykos to conduct a new trial. While the FDA's rejection and expanded investigation are bad enough for Lykos, the company announced this month that it's laying off 75 percent of its staff and overhauling its leadership. The moves were in response to the FDA's rejections, the company said. Additionally, a scientific journal retracted three of the company's MDMA studies, citing "protocol violations amounting to unethical conduct" in its trials, echoing claims raised amid the FDA review.

Censorship

Zuckerberg Says He Regrets Not Being More Outspoken About 'Government Pressure' (thehill.com) 288

In a letter to the House Judiciary Committee, Meta CEO Mark Zuckerberg expressed regret for not being more vocal about "government pressure" to censor COVID-19-related content. He also acknowledged that Meta shouldn't have demoted a New York Post story about President Biden's family before the 2020 election. The Hill reports: Zuckerberg said senior Biden administration officials "repeatedly pressured" Meta, the parent company of Facebook and Instagram, to "censor" content in 2021. "I believe the government pressure was wrong, and I regret that we were not more outspoken," he wrote to House Judiciary Chair Jim Jordan (R-Ohio). "Like I said to our teams at the time, I feel strongly that we should not compromise our content standards due to pressure from any Administration in either direction -- and we're ready to push back if something like this happens again," Zuckerberg added.

The Meta CEO also said the company "shouldn't have demoted" a New York Post story about corruption allegations involving President Biden's family ahead of the 2020 election while waiting for fact-checkers to review it. The social media company has since updated its policies and processes, including no longer demoting content in the U.S. while waiting for fact-checkers, he noted. Zuckerberg also said in Monday's letter that he does not plan to make contributions to local jurisdictions to support election infrastructure this cycle, like he did during the 2020 election.

The contributions, which were "designed to be non-partisan," were accused of being unfairly distributed between left-leaning and right-leaning areas and labeled "Zuckerbucks" by Republicans. "Still, despite the analyses I've seen showing otherwise, I know that some people believe this work benefited one party over the other," Zuckerberg said. "My goal is to be neutral and not play a role one way or another -- or to even appear to be playing a role."
House Judiciary Republicans touted the letter as a "big win for free speech," writing on X: "Mark Zuckerberg just admitted three things: 1. Biden-Harris Admin 'pressured' Facebook to censor Americans. 2. Facebook censored Americans. 3. Facebook throttled the Hunter Biden laptop story."

"Mark Zuckerberg also tells the Judiciary Committee that he won't spend money this election cycle. That's right, no more Zuck-bucks. Huge win for election integrity," it added.
AI

OpenAI Supports California AI Bill Requiring 'Watermarking' of Synthetic Content 30

OpenAI said in a letter that it supports California bill AB 3211, which requires tech companies to label AI-generated content. Reuters reports: San Francisco-based OpenAI believes that for AI-generated content, transparency and requirements around provenance such as watermarking are important, especially in an election year, according to a letter sent to California State Assembly member Buffy Wicks, who authored the bill. "New technology and standards can help people understand the origin of content they find online, and avoid confusion between human-generated and photorealistic AI-generated content," OpenAI Chief Strategy Officer Jason Kwon wrote in the letter, which was reviewed by Reuters.

AB 3211 has already passed the state Assembly by a 62-0 vote. Earlier this month it passed the senate appropriations committee, setting it up for a vote by the full state Senate. If it passes by the end of the legislative session on Aug. 31, it would advance to Governor Gavin Newsom to sign or veto by Sept. 30.
Crime

Telegram Founder Arrest Part of Cybercrime Inquiry, Say Prosecutors (theguardian.com) 98

Pavel Durov, the Russian-born billionaire co-founder of the Telegram messaging app, was arrested in France in connection with an investigation into criminal activity on the platform and a lack of cooperation with law enforcement, prosecutors announced on Monday. From a report: Durov, who has French citizenship, was detained at Le Bourget airport, just outside Paris, on Saturday evening after arriving from Azerbaijan on his private jet. His surprise arrest has sparked debate over free speech worldwide and led to an outcry in Moscow. The Paris prosecutor Laure Beccuau said the investigation concerned crimes related to illicit transactions, child sexual abuse, fraud and the refusal to communicate information to authorities.

Earlier in the day the French president, Emmanuel Macron, gave the first confirmation that Durov had been arrested as part of a judicial inquiry in relation to Telegram. "In a state governed by the rule of law, freedoms are upheld within a legal framework, both on social media and in real life, to protect citizens and respect their fundamental rights," Macron wrote on X, adding that the arrest was "in no way a political decision." "It is up to the judiciary, in full independence, to enforce the law," he said. A senior official at Ofmin, a French agency set up last year to prevent violence against children, said Durov's arrest was linked to Telegram's failure to properly fight crime on the app, including the spread of child sexual abuse material.

Your Rights Online

Macron on Telegram CEO's Arrest: French Government Was Not Involved (politico.eu) 85

President Emmanuel Macron said Monday that the French government was not involved in the arrest of Telegram founder and CEO Pavel Durov. From a report: "The arrest of Telegram's president on French territory took place as part of an ongoing judicial investigation. This is in no way a political decision. It is up to the judges to decide," Macron said. Durov was detained Saturday night after his private jet arrived in Paris. The Paris prosecutor has not yet communicated the reasons for the arrest of Durov, who founded the messaging app in 2013.

The tech chief currently remains in policy custody. The arrest follows probes "accusing Telegram of being complicit in numerous affairs linked to drug trafficking, apology for terrorism and cyberbullying," French daily Le Monde reported. In a statement, Telegram said that its CEO -- a Russian-born French-Emirati citizen -- had "nothing to hide" and that the company abided by EU law.

[...] "More than anything else, France is committed to freedom of expression and communication, innovation and entrepreneurship," Macron said Monday. "In a state governed by the rule of law, on social networks as in real life, freedoms are exercised within a framework established by law to protect citizens and respect their fundamental rights."

Businesses

Telegram Says CEO Durov Has 'Nothing To Hide' (bbc.com) 79

Messaging app Telegram has said its CEO Pavel Durov, who was detained in France on Saturday, has "nothing to hide." From a report: Mr Durov was arrested at an airport north of Paris under a warrant for offences related to the app, according to officials. The investigation is reportedly about insufficient moderation, with Mr Durov accused of failing to take steps to curb criminal uses of Telegram. The app is accused of failure to co-operate with law enforcement over drug trafficking, child sexual content and fraud.

Telegram said in a statement that "its moderation is within industry standards and constantly improving." The app added: "It is absurd to claim that a platform or its owner are responsible for abuse of that platform." Telegram said Mr Durov travels in Europe frequently and added that it abides by European Union laws, including the Digital Services Act, which aims to ensure a safe and accountable online environment. "Almost a billion users globally use Telegram as means of communication and as a source of vital information," the app's statement read. "We're awaiting a prompt resolution of this situation. Telegram is with you all." Judicial sources quoted by AFP news agency say Mr Durov's detention was extended on Sunday and could last as long as 96 hours.

Google

'Don't Trust Google for Customer Service Numbers. It Might Be a Scam.' (msn.com) 52

Google may be the most successful company in the world. But a Washington Post reporter argues that Google "makes you largely responsible for dodging the criminals who are hurting legitimate businesses and swindling people." On Monday, I found what appeared to be impostors of customer service for Delta and Coinbase, the cryptocurrency company, in the "People also ask" section high up in Google. A group of people experienced in Google's intricacies also said this week that it took about 22 minutes to fool Google into highlighting a bogus business phone number in a prominent spot in search results...

If you look at the two impostor phone numbers in Google for Delta and Coinbase, there are red flags. There are odd fonts and a website below the bogus numbers that wasn't for either company. (I notified Google about the apparent scams on Monday and I still saw them 24 hours later.) The correct customer help numbers did appear at the very top, and Google says businesses have clear instructions to make their customer service information visible to people searching Google.

The larger issue is "a persistent pattern of bad guys finding ways to trick Google into showing scammers' numbers for airlines, hotels, local repair companies, banks or other businesses." The toll can be devastating when people are duped by these bogus business numbers. Fortune recently reported on a man who called what a Google listing said was Coinbase customer support, and instead it was an impostor who Fortune said tricked the man and stole $100,000...

Most of the time, you will find correct customer service numbers by Googling. But the company doesn't say how often people are tricked out of time and money by bogus listings — nor why Google can't stop the scams from recurring.

The article makes two points.
  • Google says when they identify listings violating their rules, they move quickly against them.

Crime

Sam Bankman-Fried Didn't Have 'Character of a Thief', Argues Author Michael Lewis (decrypt.co) 95

An anonymous reader shared this story from the blog Decrypt: Michael Lewis, author of Going Infinite, an account of the rise and fall of Sam Bankman-Fried, has argued that the disgraced FTX founder didn't have "the character of a thief" in a new The Washington Post article. "His crime was of a piece with his character. The character wasn't the character of a thief. It was the character of a person numb to risk." Lewis explained in the final paragraphs of a 4,500 word essay adapted from a new introduction to his book. "Unable to feel risk himself, he can't really imagine other people feeling much at all about the risk he has subjected them to...."

Lewis doubled down on previous claims that Bankman-Fried wasn't running a Ponzi scheme, arguing that "The crime was unnecessary to the business in a way that, say, Bernie Madoff's was not," and that "The crime made no sense." The collapse of FTX, he added, "might have been avoided and FTX might have survived."

"That doesn't mean I think that Sam Bankman-Fried is innocent. It merely informs how I feel about him," Lewis explained. "I think the truth is closer to 'young person with an intellectually defensible but socially unacceptable moral code makes a huge mistake in trying to live by it' than "criminal on the loose in the financial system.'"

From from The Daily Beast: Lewis also pointed to bankruptcy court filings from FTX in the weeks after Bankman-Fried's sentencing showing that "against the $8.7 billion in missing customer deposits, FTX was now sitting on something like $14.5 to $16.3 billion." "Whatever the exact sum, it was enough to repay all depositors and various other creditors at least 118 cents on the dollar — that is, everyone who imagined they had lost money back in November 2022 would get their money back, with interest," Lewis writes.
Michael Lewis's article offers some vivid details: Inside of three years, he'd gone from socially and emotionally isolated 25-year-old with an upper-middle-class bank account to leader of a small army of math nerds and (according to Forbes magazine) not merely the world's richest person under 30 but maybe the fastest creator of wealth in recorded history... He'd gone from having no friends as a child to having too many as an adult without ever developing a capacity for friendship....

The prosecutors didn't need Sam's help. Sam helped them anyway by ignoring the counsel of his lawyers and testifying on his own behalf... As Lewis Kaplan, the federal judge who presided over the case, said later: "When he wasn't outright lying, he was often evasive, hairsplitting, dodging questions and trying to get the prosecutor to reword questions in ways that he could answer in ways he thought less harmful than a truthful answer to the question that was posed would have been. I've been doing this job for close to 30 years. I've never seen a performance quite like that...." [T]he judge ordered Sam to rise so that he might address him directly. Two hours or so earlier, Sam had shuffled into the courtroom in prison khakis with his head down and his hands oddly clasped behind his back. Just before he'd entered, his guards had told him he was meant to be wearing handcuffs and asked if he could create the impression that he was doing so...

"There is a risk that this man will be in a position to do something very bad in the future, and it's not a trivial risk, not a trivial risk at all," said the judge. "So, in part, my sentence will be for the purpose of disabling him." He then sentenced Sam to 25 years in prison, with no possibility of parole.

A few minutes later, Sam dutifully clasped his hands behind his back and shuffled out of the courtroom.

Lewis adapted his 4,500-word article from the upcoming (updated) paperback edition of his book — which was originally published in 2023 on the same day jurors were selected for Bankman-Fried's trial...
Crime

ARRL Pays $1 Million Ransom To Decrypt Their Systems After Attack (bleepingcomputer.com) 95

The nonprofit American Radio Relay League — founded in 1914 — has approximately 161,000 members, according to Wikipedia (with over 7,000 members outside the U.S.)

But sometime in early May its systems network was compromised, "by threat actors using information they had purchased on the dark web," the nonprofit announced this week. The attackers accessed the ARRL's on-site systems — as well as most of its cloud-based systems — using "a wide variety of payloads affecting everything from desktops and laptops to Windows-based and Linux-based servers." Despite the wide variety of target configurations, the threat actors seemed to have a payload that would host and execute encryption or deletion of network-based IT assets, as well as launch demands for a ransom payment, for every system... The FBI categorized the attack as "unique" as they had not seen this level of sophistication among the many other attacks, they have experience with.

Within 3 hours a crisis management team had been constructed of ARRL management, an outside vendor with extensive resources and experience in the ransomware recovery space, attorneys experienced with managing the legal aspects of the attack including interfacing with the authorities, and our insurance carrier. The authorities were contacted immediately as was the ARRL President... [R]ansom demands were dramatically weakened by the fact that they did not have access to any compromising data. It was also clear that they believed ARRL had extensive insurance coverage that would cover a multi-million-dollar ransom payment. After days of tense negotiation and brinkmanship, ARRL agreed to pay a $1 million ransom. That payment, along with the cost of restoration, has been largely covered by our insurance policy...

Today, most systems have been restored or are waiting for interfaces to come back online to interconnect them. While we have been in restoration mode, we have also been working to simplify the infrastructure to the extent possible. We anticipate that it may take another month or two to complete restoration under the new infrastructure guidelines and new standards.

ARRL's called the attack "extensive", "sophisticated", "highly coordinated" and "an act of organized crime". And tlhIngan (Slashdot reader #30335) shared this detail from BleepingComputer.

"While the organization has not yet linked the attack to a specific ransomware operation, sources told BleepingComputer that the Embargo ransomware gang was behind the breach."
Security

'Invasive' Iranian Intelligence Group Believed to Be The Ones Who Breached Trump's Campaign (reuters.com) 98

Reuters reports that the Iranian hacking team which compromised the campaign of U.S. presidential candidate Donald Trump "is known for placing surveillance software on the mobile phones of its victims, enabling them to record calls, steal texts and silently turn on cameras and microphones, according to researchers and experts who follow the group." Known as APT42 or CharmingKitten by the cybersecurity research community, the accused Iranian hackers are widely believed to be associated with an intelligence division inside Iran's military, known as the Intelligence Organization of the Islamic Revolutionary Guard Corps or IRGC-IO. Their appearance in the U.S. election is noteworthy, sources told Reuters, because of their invasive espionage approach against high-value targets in Washington and Israel. "What makes (APT42) incredibly dangerous is this idea that they are an organization that has a history of physically targeting people of interest," said John Hultquist, chief analyst with U.S. cybersecurity firm Mandiant, who referenced past research that found the group surveilling the cell phones of Iranian activists and protesters... Hultquist said the hackers commonly use mobile malware that allows them to "record phone calls, room audio recordings, pilfer SMS (text) inboxes, take images off of a machine," and gather geolocation data...

APT42 also commonly impersonates journalists and Washington think tanks in complex, email-based social engineering operations that aim to lure their targeting into opening booby-trapped messages, which let them takeover systems. The group's "credential phishing campaigns are highly targeted and well-researched; the group typically targets a small number of individuals," said Josh Miller, a threat analyst with email security company Proofpoint. They often target anti-Iran activists, reporters with access to sources inside Iran, Middle Eastern academics and foreign-policy advisers. This has included the hacking of western government officials and American defense contractors. For example, in 2018, the hackers targeted nuclear workers and U.S. Treasury department officials around the time the United States formally withdrew from the Joint Comprehensive Plan of Action (JCPOA), said Allison Wikoff, a senior cyber intelligence analyst with professional services company PricewaterhouseCoopers.

"APT42 is still actively targeting campaign officials and former Trump administration figures critical of Iran, according to a blog post by Google's cybersecurity research team."
Social Networks

Families Can Sue App Developer For Breaking Its Anti-Bullying Pledge, Says Court (theverge.com) 37

The Verge's Adi Robertson reports: An appeals court revived a lawsuit against the anonymous messaging service Yolo, which allegedly broke a promise to unmask bullies on the app. In a ruling (PDF) issued Thursday, the Ninth Circuit Court of Appeals said Section 230 of the Communications Decency Act shouldn't block a claim that Yolo misrepresented its terms of service, overruling a lower court decision. But it determined the app can't be held liable for alleged design defects that allowed harassment, letting a different part of that earlier ruling stand.

Yolo was a Snapchat-integrated app that let users send anonymous messages, but in 2021, it was hit with a lawsuit after a teenage user died by suicide. The boy, Carson Bride, had received harassing and sexually explicit messages from anonymized users that -- he believed -- he likely knew. Bride and his family attempted to contact Yolo for help, but Yolo allegedly never answered, and in some cases, emails to the company simply bounced. Snap banned Yolo and another app targeted in the lawsuit, and a year later, it banned all anonymous messaging integration. Bride's family and a collection of other aggrieved parents argued that Yolo broke a legally binding promise to its users. They pointed to a notification where Yolo claimed people would be banned for inappropriate use and deanonymized if they sent "harassing messages" to others. But as the ruling summarizes, the plaintiffs argued that "with a staff of no more than ten people, there was no way Yolo could monitor the traffic of ten million active daily users to make good on its promise, and it in fact never did." Additionally, they claimed Yolo should have known its anonymous design facilitated harassment, making it defective and dangerous.

A lower court threw out both of these claims, saying that under Section 230, Yolo couldn't be held responsible for its users' posts. The appeals court was more sympathetic. It accepted the argument that families were instead holding Yolo responsible for promising users something it couldn't deliver. "Yolo repeatedly informed users that it would unmask and ban users who violated the terms of service. Yet it never did so, and may have never intended to," writes Judge Eugene Siler, Jr. "While yes, online content is involved in these facts, and content moderation is one possible solution for Yolo to fulfill its promise, the underlying duty ... is the promise itself." The Yolo suit built on a previous Ninth Circuit ruling that let another Snap-related lawsuit circumvent Section 230's shield. In 2021, it found Snap could be sued for a "speed filter" that could implicitly encourage users to drive recklessly, even if users were responsible for making posts with that filter. (The overall case is still ongoing.) On top of their misrepresentation claim, the plaintiffs argued Yolo's anonymous messaging capability was similarly risky, an argument the Ninth Circuit didn't buy -- "we refuse to endorse a theory that would classify anonymity as a per se inherently unreasonable risk," Siler wrote.

The Courts

US Sues Georgia Tech Over Alleged Cybersecurity Failings As a Pentagon Contractor (theregister.com) 37

The Register's Connor Jones reports: The U.S. is suing one of its leading research universities over a litany of alleged failures to meet cybersecurity standards set by the Department of Defense (DoD) for contract awardees. Georgia Institute of Technology (GIT), commonly referred to as Georgia Tech, and its contracting entity, Georgia Tech Research Corporation (GTRC), are being investigated following whistleblower reports from insiders Christopher Craig and Kyle Koza about alleged (PDF) failures to protect controlled unclassified information (CUI). The series of allegations date back to 2019 and continued for years after, although Koza was said to have identified the issues as early as 2018.

Among the allegations is the suggestion that between May 2019 and February 2020, Georgia Tech's Astrolavos Lab -- ironically a group that focuses on cybersecurity issues affecting national security -- failed to develop and implement a cybersecurity plan that complied with DoD standards (NIST 800-171). When the plan was implemented in February 2020, the lawsuit alleges that it wasn't properly scoped -- not all the necessary endpoints were included -- and that for years afterward, Georgia Tech failed to maintain that plan in line with regulations. Additionally, the Astrolavos Lab was accused of failing to implement anti-malware solutions across devices and the lab's network. The lawsuit alleges that the university approved the lab's refusal to deploy the anti-malware software "to satisfy the demands of the professor that headed the lab," the DoJ said. This is claimed to have occurred between May 2019 and December 2021. Refusing to install anti-malware solutions at a contractor like this is not allowed. In fact, it violates federal requirements and Georgia Tech's own policies, but allegedly happened anyway.

The university and the GTRC also, it is claimed, submitted a false cybersecurity assessment score in December 2020 -- a requirement for all DoD contractors to demonstrate they're meeting compliance standards. The two organizations are accused of issuing themselves a score of 98, which was later deemed to be fraudulent based on various factors. To summarize, the issue centers around the claim that the assessment was carried out on a "fictitious" environment, so on that basis the score wasn't given to a system related to the DoD contract, the US alleges. The claims are being made under the False Claims Act (FCA), which is being utilized by the Civil Cyber-Fraud Initiative (CCFI), which was introduced in 2021 to punish entities that knowingly risk the safety of United States IT systems. It's a first-of-its-kind case being pursued as part of the CCFI. All previous cases brought under the CCFI were settled before they reached the litigation stage.

Patents

Crayola Trademarks the Smell of Its Crayons (financialpost.com) 52

An anonymous reader quotes a report from the Financial Post: You may find yourself smelling crayons in the aisles of stores soon -- if Crayola's chief executive Pete Ruggiero has his way. In July, the U.S. Patent and Trademark Office issued a trademark to the arts and crafts giant for the smell of its crayons -- that waxy scent of a childhood spent trying to color within the lines. While it's too soon for this back-to-school season, Ruggiero imagines one day pumping it through the aisles of retailers, triggering nostalgia while shoppers are browsing and hopefully buying more crayons.

Crayola, a unit of Hallmark, first applied for the trademark in 2018 and was initially turned down less than a year later, but won its bid on appeal. During the process, the company shared examples of its own crayons as well as competitors to verify the distinctiveness. It's a "slightly earthy soap with pungent, leather-like clay undertones," according to the trademark documents.
"We've been talking about doing it for years," Ruggiero said about the trademark. "That Crayola smell, there's a connection between the smell and childhood memories that is very powerful."
Education

Fluoride At Twice the Recommended Limit Is Linked To Lower IQ In Kids (apnews.com) 153

An anonymous reader quotes a report from the Associated Press: A U.S. government report expected to stir debate concluded that fluoride in drinking water at twice the recommended limit is linked with lower IQ in children. The report, based on an analysis of previously published research, marks the first time a federal agency has determined -- "with moderate confidence" -- that there is a link between higher levels of fluoride exposure and lower IQ in kids. While the report was not designed to evaluate the health effects of fluoride in drinking water alone, it is a striking acknowledgment of a potential neurological risk from high levels of fluoride. Fluoride strengthens teeth and reduces cavities by replacing minerals lost during normal wear and tear, according to the U.S. Centers for Disease Control and Prevention. The addition of low levels of fluoride to drinking water has long been considered one of the greatest public health achievements of the last century.

The long-awaited report released Wednesday comes from the National Toxicology Program, part of the Department of Health and Human Services. It summarizes a review of studies, conducted in Canada, China, India, Iran, Pakistan, and Mexico, that concludes that drinking water containing more than 1.5 milligrams of fluoride per liter is consistently associated with lower IQs in kids. The report did not try to quantify exactly how many IQ points might be lost at different levels of fluoride exposure. But some of the studies reviewed in the report suggested IQ was 2 to 5 points lower in children who'd had higher exposures.

Since 2015, federal health officials have recommended a fluoridation level of 0.7 milligrams per liter of water, and for five decades before the recommended upper range was 1.2. The World Health Organization has set a safe limit for fluoride in drinking water of 1.5. The report said that about 0.6% of the U.S. population -- about 1.9 million people -- are on water systems with naturally occurring fluoride levels of 1.5 milligrams or higher. The 324-page report did not reach a conclusion about the risks of lower levels of fluoride, saying more study is needed. It also did not answer what high levels of fluoride might do to adults.

The Almighty Buck

Telecom Behind AI Biden Robocall Settles With FCC For $1 Million (cyberscoop.com) 20

New submitter ElimGarak000 shares a report from CyberScoop: The Texas-based voice service provider that sent AI-generated robocalls of President Joe Biden to New Hampshire voters ahead of its Democratic presidential primary has agreed to pay a $1 million fine and implement enhanced verification protocols designed to prevent robocalls and phone number spoofing in a settlement with the Federal Communications Commission. The fine represents half the amount the FCC was originally seeking in an enforcement action proposed against Lingo Telecom in May. Despite that, agency leaders characterized the settlement (PDF) as a successful effort to defend U.S. telecommunications networks and election infrastructure from nascent AI and deepfake technologies. [...]

In addition to the fine, the settlement requires Lingo Telecom to follow regulatory protocols that were put in place in 2020 to ensure telecommunications carriers authenticate caller identities using their networks. The protocols, known as STIR/SHAKEN, require carriers like Lingo to digitally verify and formally attest to the FCC that callers are legitimate and own the phone number they display on Caller ID. In the New Hampshire robocall case, Kramer and Life Corporation spoofed the phone number of Kathy Sullivan, a former state Democratic party official who was running a write-in campaign for Biden.

The FCC cited Lingo's inability to properly implement and enforce STIR/SHAKEN as a key failure in a February cease-and-desist letter, and again in May when the agency proposed a $2 million enforcement action. The company was also named in a civil lawsuit filed by the League of Women Voters and New Hampshire residents, seeking damages over the incident. Per terms of the settlement, Lingo Telecom must hire a senior manager knowledgeable in STIR/SHAKEN protocols and develop a compliance plan, new operating procedures and training programs. They must also report any incidents of non-compliance with STIR/SHAKEN within 15 days of discovery.
"Every one of us deserves to know that the voice on the line is exactly who they claim to be," FCC Chairwoman Jessica Rosenworcel said in a statement. "If AI is being used, that should be made clear to any consumer, citizen, and voter who encounters it. The FCC will act when trust in our communications networks is on the line."
Crime

Crypto 'Pig Butchering' Scam Wrecks Kansas Bank, Sends Ex-CEO To Prison For 24 Years (nbcnews.com) 75

An anonymous reader quotes a report from NBC News: The former CEO of a small Kansas bank was sentenced to more than 24 years in prison for looting the bank of $47 million -- which he sent to cryptocurrency wallets controlled by scammers who had duped him in a "pig butchering" scheme that appealed to his greed, federal prosecutors said. The massive embezzlement by ex-CEO Shan Hanes in a series of wire transfers over just eight weeks last year led to the collapse and FDIC takeover of Heartland Tri-State Bank in Elkhart, one of only five U.S. banks that failed in 2023. Hanes, 53, also swindled funds from a local church and investment club -- and a daughter's college savings account -- to transfer money, purportedly to buy cryptocurrency as the scammers insisted they needed more funds to unlock the supposed returns on his investments, according to records from U.S. District Court in Wichita, Kansas. But Hanes never realized any profit and lost all of the money he stole as a result of the scam. Judge John Broomes on Monday sentenced Hanes to 293 months in prison -- 29 months more than what prosecutors requested after he pleaded guilty in May to a single count of embezzlement by a bank officer. [...]

[P]rosecutors and bank regulators said that Hanes, who has three daughters with his school teacher wife, began stealing after being targeted in a pig-butchering scheme in late 2022. That scheme was described in a court filing as "a scammer convincing a victim (a pig) to invest in supposedly legitimate virtual currency investment opportunities and then steals the victim's money -- butchering the pig." Hanes, who had served on the board of the American Bankers Association, and been chairman of the Kansas Bankers Association, in December 2022 began making transactions to buy cryptocurrency, which "appeared to be precipitated by communication with an unidentified co-conspirator on the electronic messaging app 'WhatsApp,'" prosecutors wrote in a court filing. "To date, the true identity of the co-conspirator, or conspirators, remain unknown," the filing notes. Hanes initially used personal funds to buy crypto, but in early 2023 he stole $40,000 from Elkhart Church of Christ and $10,000 from the Santa Fe Investment Club, according to prosecutors and a defense filing. He also used $60,000 taken from a daughter's college fund, and nearly $1 million in stock from the Elkhart Financial Corporation, his lawyer said in a filing.

In May 2023, he began to make wire transfers from Heartland Tri-State Bank to accounts controlled by scammers, at first with a $5,000 transfer. Two weeks later, on May 30, Hanes wired $1.5 million and a day after that, he sent another transfer of the same amount the following day, filings show. Three days later he directed two wire transfers totaling $6.7 million to be sent by the bank to the crypto wallet, and a whopping $10 million less than two weeks later, and another $3.3 million days afterward. Hanes told bank employees to execute the wire transfers, and "made many misrepresentations to various people" to get access to the funds so they could be transferred, prosecutors wrote. Heartland Tri-State employees circumvented the bank's own wire policy and daily limits to approve Hanes' wire transfers, according to a report by the Office of the Inspector General of the Board of Governors of the Federal Reserve System.

Slashdot Top Deals