Hollywood filmmaker Carl Erik Rinsch has been charged with defrauding Netflix of $11 million after allegedly misusing funds intended for an unfinished science fiction series, federal prosecutors said.

Rinsch, 47, was arrested in West Hollywood this week on charges of wire fraud, money laundering and unlawful monetary transactions that could result in decades of imprisonment if convicted. The FBI and Acting U.S. Attorney for the Southern District of New York allege Rinsch diverted funds meant for his series "Conquest" to speculate on cryptocurrency, stay in luxury hotels and purchase high-end items including five Rolls-Royces and a Ferrari.

Netflix had paid Rinsch $44 million between 2018 and 2019 for the science fiction project about an artificial humanlike species. Prosecutors say he then requested an additional $11 million but never completed the production. An arbitrator ruled in Netflix's favor last year, ordering Rinsch to pay the company $11.8 million. Rinsch appeared in federal court with shackles and posted a $100,000 bond.

Controversial facial recognition company Clearview AI attempted to purchase hundreds of millions of arrest records including social security numbers, mugshots, and even email addresses to incorporate into its product, 404 Media reports. From the report: For years, Clearview AI has collected billions of photos from social media websites including Facebook, LinkedIn and others and sold access to its facial recognition tool to law enforcement. The collection and sale of user-generated photos by a private surveillance company to police without that person's knowledge or consent sparked international outcry when it was first revealed by the New York Times in 2020.

New documents obtained by 404 Media reveal that Clearview AI spent nearly a million dollars in a bid to purchase "690 million arrest records and 390 million arrest photos" from all 50 states from an intelligence firm. The contract further describes the records as including current and former home addresses, dates of birth, arrest photos, social security and cell phone numbers, and email addresses. Clearview attempted to purchase this data from Investigative Consultant, Inc. (ICI) which billed itself as an intelligence company with access to tens of thousands of databases and the ability to create unique data streams for its clients. The contract was signed in mid-2019, at a time when Clearview AI was quietly collecting billions of photos off the internet and was relatively unknown at the time.

Federal authorities have broken up an international crime ring that stole thousands of iPhones from porches nationwide [non-paywalled link], arresting 13 people last month after a sophisticated operation that combined high-tech tools with old-fashioned bribery.

The thieves created software to scrape FedEx tracking numbers and paid AT&T store employees to provide customer order details and delivery addresses, according to WSJ, which cites prosecutors. Armed with this information, runners intercepted packages at doorsteps moments after delivery.

Demetrio Reyes Martinez, known online as "CookieNerd," developed code that circumvented FedEx limits on delivery-data requests, while AT&T employee Alejandro Then Castillo used his credentials to track hundreds of shipments and reportedly received up to $2,500 for recruiting other employees. Stolen devices were funneled through Wyckoff Wireless in Brooklyn, a store owned by Joel Suriel, who was already on supervised release from a previous wire-fraud conviction. The merchandise was then shipped overseas for sale and activation.

The abstract of a paper published on National Bureau of Economic Research: Ensuring broad access to the patent system is crucial for fostering innovation and promoting economic growth. To support this goal, the U.S. Patent and Trademark Office offers reduced fees for small and micro entities. This paper investigates whether fee rates affect the filing of applications by small and micro entities. Exploiting recent fee reforms, the study evaluates the relationship between fee changes and the number of new entrants, controlling for potential confounding factors such as legislative changes. The findings suggest that fee reductions alone are insufficient to significantly increase participation in the patent system among small and micro entities.

Trend Micro uncovered an eight-year-long spying campaign exploiting a Windows vulnerability involving malicious .LNK shortcut files, which attackers padded with whitespace to conceal commands. Despite being reported to Microsoft in 2023, the company considers it a UI issue rather than a security risk and has not prioritized a fix. The Register reports: The attack method is low-tech but effective, relying on malicious .LNK shortcut files rigged with commands to download malware. While appearing to point to legitimate files or executables, these shortcuts quietly include extra instructions to fetch or unpack and attempt to run malicious payloads. Ordinarily, the shortcut's target and command-line arguments would be clearly visible in Windows, making suspicious commands easy to spot. But Trend's Zero Day Initiative said it observed North Korea-backed crews padding out the command-line arguments with megabytes of whitespace, burying the actual commands deep out of sight in the user interface.

Trend reported this to Microsoft in September last year and estimates that it has been used since 2017. It said it had found nearly 1,000 tampered .LNK files in circulation but estimates the actual number of attacks could have been higher. "This is one of many bugs that the attackers are using, but this is one that is not patched and that's why we reported it as a zero day," Dustin Childs, head of threat awareness at the Zero Day Initiative, told The Register. "We told Microsoft but they consider it a UI issue, not a security issue. So it doesn't meet their bar for servicing as a security update, but it might be fixed in a later OS version, or something along those lines."

After poring over malicious .LNK samples, the security shop said it found the vast majority of these files were from state-sponsored attackers (around 70 percent), used for espionage or information theft, with another 20 percent going after financial gain. Among the state-sponsored crews, 46 percent of attacks came from North Korea, while Russia, Iran, and China each accounted for around 18 percent of the activity.

The Dutch parliament approved motions urging the government to reduce reliance on U.S. software companies by developing a sovereign cloud platform and reconsidering contracts with American firms. Reuters reports: While such initiatives have foundered in the past due to a lack of viable European alternatives, lawmakers said changing relations with the United States under the presidency of Donald Trump have given the issue fresh urgency. "The question we as Europeans must ask ourselves is: do we feel comfortable with people like Trump, (Meta CEO Mark) Zuckerberg and (X owner Elon) Musk ruling over our data?" said Marieke Koekkoek of the pro-European Volt party, who authored one of the eight motions, in an email to Reuters.

In addition to launching a sovereign cloud services platform, the motions called on the government to re-examine a decision to use Amazon's web services for the Netherlands' internet domain hosting, and to develop alternatives to U.S. software and preferential treatment for European firms in public tenders. [...] Bert Hubert, a Dutch technology expert who has advocated for reducing dependency on the U.S., said: "This is only the first step in potentially doing something." But he said one important outcome would be forcing agencies to publicly report on risks related to their reliance on U.S. cloud firms. "With the advent of Trump 2.0, it has become clear that this is not something you can harmlessly sign off on," he said.

An anonymous reader quotes a report from Reuters: A federal appeals court in Washington, D.C., on Tuesday affirmed that a work of art generated by artificial intelligence without human input cannot be copyrighted under U.S. law. The U.S. Court of Appeals for the District of Columbia Circuit agreed with the U.S. Copyright Office that an image created by Stephen Thaler's AI system "DABUS" was not entitled to copyright protection, and that only works with human authors can be copyrighted.

Tuesday's decision marks the latest attempt by U.S. officials to grapple with the copyright implications of the fast-growing generative AI industry. The Copyright Office has separately rejected artists' bids for copyrights on images generated by the AI system Midjourney. The artists argued they were entitled to copyrights for images they created with AI assistance -- unlike Thaler, who said that his "sentient" system created the image in his case independently. [...]

U.S. Circuit Judge Patricia Millett wrote for a unanimous three-judge panel on Tuesday that U.S. copyright law "requires all work to be authored in the first instance by a human being." "Because many of the Copyright Act's provisions make sense only if an author is a human being, the best reading of the Copyright Act is that human authorship is required for registration," the appeals court said.

HR software provider Rippling has sued competitor Deel for allegedly planting a spy in its Dublin office to steal trade secrets, court documents [PDF] showed on Monday. Rippling claims the employee, identified as D.S., systematically searched internal Slack channels for competitor information, including sales leads and pitch decks.

The company discovered the alleged scheme through a "honeypot" trap -- a specially created Slack channel mentioned in a letter to Deel executives. When served with a court order to surrender his phone, D.S. locked himself in a bathroom before fleeing, according to the lawsuit. "We're all for healthy competition, but we won't tolerate when a competitor breaks the law," said Vanessa Wu, Rippling's general counsel. Both companies operate multibillion-dollar HR platforms, with Rippling valued at $13.5 billion and Deel at over $12 billion.

Long-time Slashdot reader chicksdaddy writes: A group of U.S. consumer advocacy groups on Wednesday proposed legislation to address the growing epidemic of "zombie" Internet of Things (IoT) devices that have had software support cut off by their manufacturer, Fight To Repair News reports.

The Connected Consumer Product End of Life Disclosure Act is a collaboration between Consumer Reports, US PIRG, the Secure Resilient Future Foundation (SRFF) and the Center for Democracy and Technology. It requires manufacturers of connected consumer products to disclose for how long they will provide technical support, security updates, or bug fixes for the software and hardware that are necessary for the product to operate securely.
The groups proposed legal requirements that manufacturers "must notify consumers when their devices are nearing the end of life and provide guidance on how to handle the device's end of life," while end-of-life notifications "must include details about features that will be lost, and potential vulnerabilities and security risks that may arise." And when an ISP-provided device (like a router) reaches its end of life, the ISP must remove them.

"The organizations are working with legislators at the state and federal level to get the model legislation introduced," according to Fight To Repair News.

A ransomware-as-a-service variant called "Medusa" has claimed over 300 victims in "critical infrastructure sectors" (including medical), according to an joint alert from CISA, the FBI, and the Multi-State Information Sharing Analysis Center.

And that alert reminds us that Medusa is a globe-spanning operation that recruits third-party affiliates to plant ransomware and negotiate with victims, notes the Register. "Even organizations that have good ransomware recovery regimes, meaning they don't need to unscramble encrypted data as they have good backups and fall-back plans, may consider paying to prevent the release of their stolen data, given the unpleasant consequences that follow information leaks. Medusa actors also set a deadline for victims to pay ransoms and provide a countdown timer that makes it plain when stolen info will be sprayed across the internet. If victims cough up $10,000 in cryptocurrency, the crims push the deadline forward by 24 hours.

The advisory reveals one Medusa actor has taken things a step further. "FBI investigations identified that after paying the ransom, one victim was contacted by a separate Medusa actor who claimed the negotiator had stolen the ransom amount already paid," the advisory states. That separate actor then "requested half of the payment be made again to provide the 'true decryptor'," the advisory states, describing this incident as "potentially indicating a triple extortion scheme."
The security groups' advisory stresses that they "do not encourage paying ransoms as payment does not guarantee victim files will be recovered. Furthermore, payment may also embolden adversaries to target additional organizations..." (But "Regardless of whether you or your organization have decided to pay the ransom, FBI, CISA, and MS-ISAC urge you to promptly report ransomware incidents...)

Besides updating software and operating systems, the alert makes these recommendations for organizations:

• Require VPNs (or jump hosts) for remote network access

• Block remote access from unknown/untrusted origins, and disable unused ports

• Segment networks to help prevent the spread of ransomware

• Use a networking monitoring tool to spot and investigate abnormal activity — including lateral movement (using endpoint detection and response tools). Log all network traffic, and monitor it for unauthorized scanning and access attempts.

• Create recovery plans with encrypted offline backups of sensitive/proprietary data and servers

• Require multifactor authentication, use strong (and long) passwords, and "consider not requiring frequently recurring password changes, as these can weaken security." (Also audit access control following the principle of least privilege, and watch for new and/or unrecognized accounts.)

• Disable command-line and scripting activities and permissions.

Slashdot has run nearly a dozen stories about Michael Mann, one of America's most prominent climate scientists and a co-creator of the famous "hockey stick" graph of spiking temperatures. In 2012 Mann sued two bloggers for defamation — and last year Mann finally won more than $1 million, reports the Washington Post. "A jury found that two conservative commentators had defamed him by alleging that he was like a child molester in the way he had 'molested and tortured' climate data."

But "Now, a year after that ruling, the case has taken a turn that leaves Mann in the position of the one who owes money." On Wednesday, a judge sanctioned Mann's legal team for "bad-faith trial misconduct" for overstating how much the scientist lost in potential grant funding as a result of reputational harm. The lawyers had shown jurors a chart that listed one grant amount Mann didn't get at $9.7 million, though in other testimony Mann said it was worth $112,000. And when comparing Mann's grant income before and after the negative commentary, the lawyers cited a disparity of $2.8 million, but an amended calculation pegged it at $2.37 million.


The climate scientist's legal team said it was preparing to fight the setbacks in court. Peter J. Fontaine, one of Mann's attorneys, wrote in an email that Mann "believes that the court committed errors of fact and law and will pursue these matters further." Fontaine emphasized that the original decision — that Mann was defamed by the commentary — still stands. "We have reviewed the recent rulings by the D.C. Superior Court and are pleased to note that the court has upheld the jury's verdict," he said.
Thanks to Slashdot reader UsuallyReasonable for sharing the news.

The IRS is pausing its technology modernization efforts to reassess its strategy in light of AI advancements. Reuters reports: The agency will review a number of technology modernization initiatives that have been taken in recent years, including a new direct free filing system for tax returns that was launched last year under the Biden administration, the official told reporters. The official said the IRS did not have a specific number of staff cuts in mind as a result of the technology pause, but said there would be an opportunity to "realign the workforce to those new ways of doing business."

An anonymous reader quotes a report from Ars Technica: In an email sent to customers today, Amazon said that Echo users will no longer be able to set their devices to process Alexa requests locally and, therefore, avoid sending voice recordings to Amazon's cloud. Amazon apparently sent the email to users with "Do Not Send Voice Recordings" enabled on their Echo. Starting on March 28, recordings of everything spoken to the Alexa living in Echo speakers and smart displays will automatically be sent to Amazon and processed in the cloud.

Attempting to rationalize the change, Amazon's email said: "As we continue to expand Alexa's capabilities with generative AI features that rely on the processing power of Amazon's secure cloud, we have decided to no longer support this feature." One of the most marketed features of Alexa+ is its more advanced ability to recognize who is speaking to it, a feature known as Alexa Voice ID. To accommodate this feature, Amazon is eliminating a privacy-focused capability for all Echo users, even those who aren't interested in the subscription-based version of Alexa or want to use Alexa+ but not its ability to recognize different voices.

[...] Amazon said in its email today that by default, it will delete recordings of users' Alexa requests after processing. However, anyone with their Echo device set to "Don't save recordings" will see their already-purchased devices' Voice ID feature bricked. Voice ID enables Alexa to do things like share user-specified calendar events, reminders, music, and more. Previously, Amazon has said that "if you choose not to save any voice recordings, Voice ID may not work." As of March 28, broken Voice ID is a guarantee for people who don't let Amazon store their voice recordings. Amazon's email continues: "Alexa voice requests are always encrypted in transit to Amazon's secure cloud, which was designed with layers of security protections to keep customer information safe. Customers can continue to choose from a robust set of controls by visiting the Alexa Privacy dashboard online or navigating to More - Alexa Privacy in the Alexa app."

Further reading: Google's Gemini AI Can Now See Your Search History

In late 2023, the FBI alerted the Littleton Electric Light and Water Departments (LELWD) that it had been breached by a Chinese-state-sponsored hacking group for over 300 days. With the help of cybersecurity firm Dragos and Department of Energy-funded sensors, LELWD confirmed the intrusion, identified the hackers' movements, and ultimately restructured its network to remove them. PCMag reports: At the time, LELWD had been installing sensors from cybersecurity firm Dragos with the help of Department of Energy grants awarded by the American Public Power Association (APPA). "The sensors helped LELWD confirm the extent of the malicious activity on the system and pinpoint when and where the attackers were going on the utility's networks," the APPA said last year. Today, Dragos released a case study (PDF) about the hack, which it blamed on Voltzite, a "sophisticated threat group...that overlaps with Volt Typhoon."

The call from the FBI forced Dragos "to deploy quickly and bypass the planned onboarding timeline" for the LELWD, it says. It discovered that Volt Typhoon "had persistent access to LELWD's network." Hackers were looking for specific data related to [operational technology] operating procedures and spatial layout data relating to energy grid operations," Dragos tells SecurityWeek. In the end, Dragos confirmed the compromised systems did not contain "customer-sensitive data," and LEWLD changed their network architecture to kick Volt Typhoon out, the case study says. Groups like Volt Typhoon, "don't always go for high-profile targets first," said Ensar Seker, Chief Security Officer at SOCRadar. "Small, underfunded utilities can serve as low-hanging fruit, allowing adversaries to test tactics, develop footholds, and pivot toward larger targets."

Ancient Slashdot reader Alain Williams shares a report from the BBC: Meta has won an emergency ruling in the US to temporarily stop a former director of Facebook from promoting or further distributing copies of her memoir. The book, Careless People by Sarah Wynn-Williams, who used to be the company's global public policy director, includes a series of critical claims about what she witnessed during her seven years working at Facebook.

Facebook's parent company, Meta, says the ruling -- which orders her to stop promotions "to the extent within her control" -- affirms that "the false and defamatory book should never have been published." The UK publisher Macmillan says it is "committed to upholding freedom of speech" and Ms Wynn-Williams' "right to tell her story." [You can also hear Ms Wynn-Williams interviewed in the BBC Radio 4 Media Show on March 12.]