The Almighty Buck

US CHIPS Act Funds Are Not For 'Stock Buybacks' (theregister.com) 62

An anonymous reader quotes a report from The Register: The US Commerce Department says it will strictly control use of subsidies under the recently passed CHIPS and Science Act, which promises to unlock billions of dollars in funding for domestic chip manufacturing. The eagerly anticipated spending bill paves the way for $280 billion in funding for science and technology, roughly $52 billion of which is earmarked for boosting US semiconductor production. Its passing was greeted by companies such as Intel and Micron, the latter of which promised to ramp up stateside memory production over the next few years in exchange for some of that cash.

However, the Commerce Department has given chipmakers notice that it will not be allowing a free-for-all, and will not let them use government funding for "stock buybacks or to pad their bottom line," it said in a published statement. Instead, subsidies awarded will be "no larger than is necessary to ensure a project happens here in the United States," the Commerce Department said, adding that it wanted to avoid a situation where states and municipalities became embroiled in a subsidy competition in the race to attract chipmakers to build there. The Department also warned that it will not hesitate to clawback funds or pursue other remedies from semiconductor companies that are found to have misused taxpayer dollars. Funding will come with conditions attached: chipmakers that receive a CHIPS subsidy will be prohibited from engaging in "significant transactions in China or other countries of concern" involving any leading-edge semiconductor manufacturing capacity for a period of ten years.

Bitcoin

Craig Wright Wins 'Only Nominal Damages' of One Pound In Bitcoin Libel Case (theguardian.com) 17

An anonymous reader quotes a report from The Guardian: For years Craig Wright has claimed that he is the mythical figure who created bitcoin. But a legal bid by the Australian computer scientist to defend his assertion that he is Satoshi Nakamoto resulted in a pyrrhic victory and a tarnished reputation on Monday. A high court judge ruled (PDF) Wright had given "deliberately false evidence" in a libel case and awarded him one pound in damages after he sued a blogger for alleging that his claim to be the elusive Nakamoto was fraudulent. "Because he [Wright] advanced a deliberately false case and put forward deliberately false evidence until days before trial, he will recover only nominal damages," wrote Justice Chamberlain.

Wright had sued blogger Peter McCormack over a series of tweets in 2019, and a video discussion broadcast on YouTube, in which McCormack said Wright was a "fraud" and is not Satoshi. The issue of Nakamoto's identity was not covered by the judge's ruling because McCormack had earlier abandoned a defense of truth in his case. Wright claimed that his reputation within the cryptocurrency industry had been "seriously harmed" by McCormack's claims. He said he had been invited to speak at numerous conferences after the successful submission of academic papers for blind peer review, but 10 invites had been withdrawn following McCormack's tweets. This included alleged potential appearances at events in France, Vietnam, the US, Canada and Portugal.

But McCormack submitted evidence from academics challenging Wright's claims, which were then dropped from his case at the trial in May. Wright later accepted that some of his evidence was "wrong" but said that this was "inadvertent," Chamberlain said in his judgment. The judge noted that there was "no documentary evidence" that Wright had a paper accepted at any of the conferences identified in the earlier version of his libel claim, nor that he received an invitation to speak at them except possibly at one, and that any invitation was withdrawn. Wright's explanation for abandoning this part of his case because the alleged damage to his reputation from the "disinvitations" was outside England and Wales "does not withstand scrutiny," the judge added. He concluded: "Dr Wright's original case on serious harm, and the evidence supporting it, both of which were maintained until days before trial, were deliberately false." [...] [T]he judge said that Wright's pre-trial case over the serious harm to his reputation made it "unconscionable" that he should receive "any more than nominal damages."
In statement Wright said: "I intend to appeal the adverse findings of the judgment in which my evidence was clearly misunderstood. I will continue legal challenges until these baseless and harmful attacks designed to belittle my reputation stop."
Businesses

Federal Judge Says Visa Knowingly Facilitated Pornhub's Monetization of Child Porn (variety.com) 289

Variety reports: In a setback for Visa in a case alleging the payment processor is liable for the distribution of child pornography on Pornhub and other sites operated by parent company MindGeek, a federal judge ruled that it was reasonable to conclude that Visa knowingly facilitated the criminal activity.

On Friday, July 29, U.S. District Judge Cormac Carney of the U.S. District Court of the Central District of California issued a decision in the Fleites v. MindGeek case, denying Visa's motion to dismiss the claim it violated California's Unfair Competition Law — which prohibits unlawful, unfair or fraudulent business acts and practices — by processing payments for child porn....

In the ruling, Carney held that the plaintiff "adequately alleged" that Visa engaged in a criminal conspiracy with MindGeek to monetize child pornography. Specifically, he wrote, "Visa knew that MindGeek's websites were teeming with monetized child porn"; that there was a "criminal agreement to financially benefit from child porn that can be inferred from [Visa's] decision to continue to recognize MindGeek as a merchant despite allegedly knowing that MindGeek monetized a substantial amount of child porn"; and that "the court can comfortably infer that Visa intended to help MindGeek monetize child porn" by "knowingly provid[ing] the tool used to complete the crime."

"When MindGeek decides to monetize child porn, and Visa decides to continue to allow its payment network to be used for that goal despite knowledge of MindGeek's monetization of child porn, it is entirely foreseeable that victims of child porn like plaintiff will suffer the harms that plaintiff alleges," Carney wrote.

From the judge's ruling:

"At this early stage of the proceedings, before Plaintiff has had any discovery from which to derive Visa's state of mind, the Court can comfortably infer that Visa intended to help MindGeek monetize child porn from the very fact that Visa continued to provide MindGeek the means to do so and knew MindGeek was indeed doing so."
Security

Anonymous Hacktivists Breach Russian Databases, Leak 'Massive' Amounts of Data (cnbc.com) 80

"The Anonymous declaration of cyberwar was a top news story despite no evidence," writes cybersecurity specialist Jeremiah Fowler (an American who worked in Kyiv for the last 10 years — until fleeing in February to Poland). To investigate, Fowler performed a random sampling of 100 exposed Russian databases — and discovered that 92 of them had indeed been compromised. "Anti-Russian hackers used a similar script to the infamous 'MeowBot' that changed the name of folders and deleted the contents of the files. " (For example, renaming the folders to "putin_stop_this_war".)

And that was just the beginning, reports CNBC: Anonymous has claimed to have hacked over 2,500 Russian and Belarusian sites, said Fowler. In some instances, stolen data was leaked online, he said, in amounts so large it will take years to review. "The biggest development would be the overall massive number of records taken, encrypted or dumped online," said Fowler. Shmuel Gihon, a security researcher at the threat intelligence company Cyberint, agreed that amount of leaked data is "massive."

"We currently don't even know what to do with all this information, because it's something that we haven't expected to have in such a short period of time," he said....

The more immediate outcome of the hacks, Fowler and Gihon agreed, is that Russia's cybersecurity defenses have been revealed as being far weaker than previously thought.

Fowler's report argues that Anonymous has "rewritten the rules of how a crowdsourced modern cyberwar is conducted" — with the group also offering penetration testing to Ukraine, "finding vulnerabilities before Russia could exploit them." But in addition, Fowler writes, Anonymous's efforts have also "transformed into a larger operation that spread far beyond the Russian government, companies, or organizations, and included an information campaign aimed at Russian citizens."

Some examples: Hacking Printers — Russian censorship has blocked many inside the country from knowing the true scale of the war and Russian losses. Anonymous hacked printers across Russia and printed uncensored facts or anti-propaganda and pro-ukrainian messages. The group claims to have printed over 100,000 documents. This also includes barcode printers at grocery stores where prices were changed and product names were changed to anti-war or pro-Ukrainian slogans....

RoboDial, SMS, and Email Spam — Almost everyone on earth has received some form of spam in the form of a phone call, text, or email message. These usually try to sell a service or scam victims out of money. Now this same technology has been used to bypass Russian censorship and inform citizens of news and messages they are forbidden to learn on state sponsored propaganda channels. Anonymous affiliated Squad303 claimed to have sent over 100 million messages to Russian devices.

United States

Amazon's Ring and Google Can Share Footage With Police Without Warrants (or Your Consent) (cnet.com) 70

U.S. law let's companies like Google and Amazon's Ring doorbell/security camera system "share user footage with police during emergencies without consent and without warrants," CNET reported this week. They add that after that revelation "came under renewed criticism from privacy activists this month after disclosing it gave video footage to police in more than 10 cases without users' consent thus far in 2022 in what it described as 'emergency situations'."

"That includes instances where the police didn't have a warrant." "So far this year, Ring has provided videos to law enforcement in response to an emergency request only 11 times," Amazon vice president of public policy Brian Huseman wrote. "In each instance, Ring made a good-faith determination that there was an imminent danger of death or serious physical injury to a person requiring disclosure of information without delay...." Of the 11 emergency requests Ring has complied with so far in 2022, the company said they include cases involving kidnapping, self-harm and attempted murder, but it won't provide further details, including information about which agencies or countries the requests came from.

We also asked Ring if it notified customers after the company had granted law enforcement access to their footage without their consent.

"We have nothing to share," the spokesperson responded.

CNET also supplies this historical context: It's been barely a year since Ring made the decision to stop allowing police to email users to request footage. Facing criticism that requests like those were subverting the warrant process and contributing to police overreach, Ring directed police instead to post public requests for assistance in the Neighbors app, where community members are free to view and comment on them (or opt out of seeing them altogether)... That post made no mention of a workaround for the police during emergency circumstances.
When CNET asked why that workaround wasn't mentioned, Amazon response was that law enforcement requests, "including emergency requests, are directed to Ring (the company), the same way a warrant or subpoena is directed to Ring (and not the customer), which is why we treat them entirely separately."

CNET notes there's also no mention of warrantless emergency requests without independent oversight in Ring's own transparency reports about law enforcement requests from past years.

CNET adds that it's not just Amazon. "Google, Ring and other companies that process user video footage have a legal basis for warrantless disclosure without consent during emergency situations, and it's up to them to decide whether or not to do so when the police come calling...." (Although Google told CNET that while it reserves the right to comply with warrantless requests for user data during emergencies, to date it has never actually done so.) The article also points out that "Others, most notably Apple, use end-to-end encryption as the default setting for user video, which blocks the company from sharing that video at all... Ring enabled end-to-end encryption as an option for users in 2021, but it isn't the default setting, and Ring notes that turning it on will break certain features, including the ability to view your video feed on a third-party device like a smart TV, or even Amazon devices like the Echo Show smart display."

The bottom line? [C]onsumers have a choice to make about what they're comfortable with... That said, you can't make informed choices when you aren't well-informed to begin with, and the brands in question don't always make it easy to understand their policies and practices. Ring published a blog post last year walking through its new, public-facing format for police footage requests, but there was no mention of emergency exceptions granted without user consent or independent oversight, the details of which only came to light after a Senate probe. Google describes its emergency sharing policies within its Terms of Service, but the language doesn't make it clear that those cases include instances where footage may be shared without a warrant, subpoena or court order compelling Google to do so.
Power

Boosters of US Climate Bill Included Clean Energy Companies, Nuclear Developers - and Bill Gates (politico.com) 42

A proposed $369 billion bill would have far-reaching impacts on America's energy landscape — and in a wide variety of ways. The Washington Post took a close look at its tightly targetted energy-industry tax subisidies. "The goal? To make new green energy production cheaper for utilities to build than fossil fuel plants are." But others benefit too:

The bill contains numerous smaller measures aimed at specific parts of the economy with high emissions: $20 billion for agriculture subsidies to help farmers reduce emissions, $6 billion to reduce emissions in chemical, steel and cement plants, and $3 billion to reduce air pollution at ports.
Yet how do you convince a congressman from a coal-producing state? Politico explores what changed the mind of one of the legislation's last hold-out votes and convinced West Virginia Senator Joe Manchin that "The next generation of clean tech needed Washington's backing to take off."

Brandon Dennison, CEO of the economic development organization Coalfield Development, said he'd argued that the legislation offered a way for the coal-producing region to "stay an energy state.... If we want to benefit from the investments and the jobs that are going to come with that transition, we need to be part of the proactive solutions and policies rather than constantly playing on defense." Jason Walsh, executive director of the BlueGreen Alliance, a coalition of labor and environmental groups, said several West Virginia companies pushed Manchin to back the credits as well — even suggesting failure to pass the bill imperiled their plans to invest in new operations. "There were folks who I can't talk about who are directly involved in potentially developing clean energy manufacturing in the state of West Virginia where site visits had happened where all they needed was a set of investments," Walsh said. "And that communication happened as well."

A senior executive with a utility operating in Appalachia said that his company communicated with Manchin how aspects of the bill such as tax credits to build clean energy manufacturing plants at former coal sites and incentives for developing small nuclear reactors and hydrogen would help West Virginia's economy. "We know coal plants are ultimately going to close," the executive said. "What is going to replace them? What are the jobs? What are we transitioning to? In this case, we are going to explore hydrogen, new nuclear and get manufacturing in the state."

Form Energy, a battery storage startup backed by Gates' Breakthrough Energy Ventures and which has plans for a West Virginia manufacturing hub, walked Manchin's staff through its growth trajectories with and without the proposed suite of legislative incentives, a person directly familiar with the interaction said. That person said Form Energy officials showed the differences on a graph. Its investors — including Gates — also called to assuage Manchin's concerns over disbursing the tax credits to companies through a direct pay system rather than using tax equity markets.

United States

America's 'Transformative' Climate Bill Would Fund EV Purchases - While Penalizing China (buffalonews.com) 141

This week U.S. lawmakers drew closer to passing a $369 billion bill with wide-ranging climate provisions.

It helps U.S consumers buy electric vehicle chargers, rooftop solar panels, and fuel-efficient heat pumps. It extends energy-industry tax credits for wind, solar and other renewable energy sources -- and for carbon capture technology. In fact, most of its impact is accomplished through tax credits, reports the New York Times, "viewed as one of the least expensive ways to reduce carbon emissions.

"The benefits are worth four times their cost, according to calculations by the Energy Policy Institute at the University of Chicago." One example is ending an eligibility cap on the $7,500 tax credit for consumers buying electric vehicles: Currently, the credits are phased out after a manufacturer has sold 200,000 electric or plug-in hybrid vehicles. Restoring the credits would be huge for Tesla and General Motors, which have used up their quotas, as well as companies like Ford Motor and Toyota that will soon lose access to the credits. The new tax credit, available through 2032, would make vehicles from those companies more affordable and address criticism that only rich people can afford electric cars...

As it exists, the 200,000-vehicle cap on tax credits would provide a competitive advantage to market newcomers like BYD of China that are expected to use electric vehicles to enter the U.S. market. They could have benefited from the credit while Tesla, the Texas-based company, could not. The Democratic climate legislation would flip that. As written, the bill appears to disqualify cars not made in North America from the credit. Cars made in North America by foreign companies like Mercedes-Benz, Toyota or Volvo would qualify, but imported models would not.

In fact, the 725-page legislation also includes "a strong dose of industrial policy," with several provisions that "appear designed to undermine China's hold over the electric vehicle supply chain... It favors companies that get their components and raw materials from the United States or its allies, while effectively excluding China." "I think it is absolutely a transformative bill," said Leah Stokes, an associate professor of political science at the University of California, Santa Barbara, who specializes in energy and climate change...

Cars would qualify for the full credit only if their batteries were made with materials and components from the United States and countries with which it has trade agreements. The percentage of components that have to meet those restrictions to qualify for the credit would increase over time, under the bill. That provision is aimed at encouraging domestic development of businesses like lithium mining and refining.

Crime

Australian Teenager Sold Remote-Access Spyware To 14,500 People, Earned $300,000 (theguardian.com) 22

"Jacob Wayne John Keen, now 24, was 15 years old and living in his mother's rental when he allegedly created a sophisticated spyware tool known as a remote access trojan that allowed users to remotely take control of their victims' computers," reports the Guardian.

Once installed it could be used to steal victims' personal information, spy on them via webcams and microphones and track what they typed into emails or documents. Keen allegedly sold the tool for $35 on a hacking forum, making between $300,000 and $400,000 by selling it to more than 14,500 people in 128 countries....

Keen was slapped with six charges earlier in July, and is due to appear at Brisbane's magistrates court next month. His mother, 42, has also been charged with allegedly dealing in the proceeds of crime.

A global investigation involving more than a dozen law enforcement agencies across Europe led to 85 search warrants being executed around the world, with 434 devices seized and 13 people arrested for using the malware for "alleged criminality".

Among the tool's 14,500 users were a "statistically high" proportion of domestic violence perpetrators (and at least one child sex offender), according to the Australian federal police, who believe there were ultimately "tens of thousands" of victims globally.

Slashdot reader Bruce66423 suggests an appropriate punishment would be sentencing Keen to work for spy agencies.
Government

Prior to Invasion, Russian Agents May Have Infilitrated Chernobyl Nuclear Disaster Site (reuters.com) 211

Reuters investigated the strange thing that happened when Russia's invading armored vehicles reached Chernobyl, "a key staging post on the approach to Kyiv," on February 24th. "In less than two hours, and without a fight, the 169 members of the Ukrainian National Guard laid down their weapons."

The fall of Chernobyl, site of the world's worst nuclear disaster, stands out as an anomaly in the five-month old war: a successful blitzkrieg operation in a conflict marked elsewhere by a brutal and halting advance by Russian troops and grinding resistance by Ukraine. Now a Reuters investigation has found that Russia's success at Chernobylwas no accident, but part of a long-standing Kremlin operation to infiltrate the Ukrainian state with secret agents....

One source with direct knowledge of the Kremlin's invasion plans told Reuters that Russian agents were deployed to Chernobyl last year to bribe officials and prepare the ground for a bloodless takeover. Reuters couldn't independently verify the details of this assertion. However, Ukraine's State Bureau of Investigation has said it is investigating a former top intelligence official, Andriy Naumov, on suspicion of treason for passing Chernobyl security secrets to a foreign state.... A review of Ukrainian testimony and court documents and an interview with a local official show that Kyiv is conducting at least three investigations into the conduct of people who worked at Chernobyl. The investigations have identified at least two people suspected of providing information to Russian agents or otherwise helping them seize the plant, according to these documents....

For Russia's war planners, seizing Chernobyl was just a stepping stone to the main objective: taking control of the Ukrainian national government in Kyiv. There, too, the Kremlin expected that undercover agents in positions of power would play a crucial part, according to four sources with knowledge of the plan.

It's been said that journalism is a first draft of history. And Reuters is already wondering how this affected the invasion's ultimate outcome: Five people with knowledge of the Kremlin's preparations said war planners around President Vladimir Putin believed that, aided by these agents, Russia would require only a small military force and a few days to force Ukrainian President Volodymyr Zelenskiy's administration to quit, flee or capitulate.... At a national level, sources with knowledge of the Kremlin's plans said Moscow was counting on activating sleeper agents inside the Ukrainian security apparatus...

Though Russia captured Chernobyl, its plan to take power in Kyiv failed. In many cases, the sleeper agents Moscow had installed failed to do their job, according to multiple sources in Russia and Ukraine.... People the Kremlin counted on as its proxies in Ukraine overstated their influence in the years leading up to the invasion, said four of the sources with knowledge of the Kremlin's preparations. The Kremlin relied in its planning on "clowns — they know a little bit, but they always say what the leadership wants to hear because otherwise they won't get paid," said one of the four, a person close to the Moscow-backed separatist leadership in eastern Ukraine.

Putin now finds himself in a protracted, full-scale war, fighting for every inch of territory at huge cost.

The Courts

Study Finds Wikipedia Influences Judicial Behavior (mit.edu) 50

A new study attempts to measure how knowledge gleaned from Wikipedia may play out in one specific realm: the courts. MIT News reports: A team of researchers led by Neil Thompson, a research scientist at MIT's Computer Science and Artificial Intelligence Laboratory (CSAIL), recently came up with a friendly experiment: creating new legal Wikipedia articles to examine how they affect the legal decisions of judges. They set off by developing over 150 new Wikipedia articles on Irish Supreme Court decisions, written by law students. Half of these were randomly chosen to be uploaded online, where they could be used by judges, clerks, lawyers, and so on -- the "treatment" group. The other half were kept offline, and this second group of cases provided the counterfactual basis of what would happen to a case absent a Wikipedia article about it (the "control"). They then looked at two measures: whether the cases were more likely to be cited as precedents by subsequent judicial decisions, and whether the argumentation in court judgments echoed the linguistic content of the new Wikipedia pages.

It turned out the published articles tipped the scales: Getting a public Wikipedia article increased a case's citations by more than 20 percent. The increase was statistically significant, and the effect was particularly strong for cases that supported the argument the citing judge was making in their decision (but not the converse). Unsurprisingly, the increase was bigger for citations by lower courts -- the High Court -- and mostly absent for citations by appellate courts -- the Supreme Court and Court of Appeal. The researchers suspect this is showing that Wikipedia is used more by judges or clerks who have a heavier workload, for whom the convenience of Wikipedia offers a greater attraction.
"To our knowledge, this is the first randomized field experiment that investigates the influence of legal sources on judicial behavior. And because randomized experiments are the gold standard for this type of research, we know the effect we are seeing is causation, not just correlation," says Thompson, the lead author of the study. "The fact that we wrote up all these cases, but the only ones that ended up on Wikipedia were those that won the proverbial 'coin flip,' allows us to show that Wikipedia is influencing both what judges cite and how they write up their decisions."

"Our results also highlight an important public policy issue," Thompson adds. "With a source that is as widely used as Wikipedia, we want to make sure we are building institutions to ensure that the information is of the highest quality. The finding that judges or their staffs are using Wikipedia is a much bigger worry if the information they find there isn't reliable."

The paper describing the study has been published in " The Cambridge Handbook of Experimental Jurisprudence."
Twitter

Twitter Warns of 'Record Highs' In Account Data Requests (engadget.com) 7

In Twitter's 20th transparency report, the company says it saw "record highs" in the number of account data requests during the July-December 2021 reporting period, with 47,572 legal demands on 198,931 accounts. Engadget reports: The media in particular faced much more pressure. Government demands for data from verified news outlets and journalists surged 103 percent compared to the last report, with 349 accounts under scrutiny. The largest slice of requests targeting the news industry came from India (114), followed by Turkey (78) and Russia (55). Governments succeeded in withholding 17 tweets. As in the past, US demands represented a disproportionately large chunk of the overall volume. The country accounted for 20 percent of all worldwide account info requests, and those requests covered 39 percent of all specified accounts. Russia is still the second-largest requester with 18 percent of volume, even if its demands dipped 20 percent during the six-month timeframe.

The company said it was still denying or limiting access to info when possible. It denied 31 percent of US data requests, and either narrowed or shut down 60 percent of global demands. Twitter also opposed 29 civil attempts to identify anonymous US users, citing First Amendment reasons. It sued in two of those cases, and has so far had success with one of those suits. There hasn't been much success in reporting on national security-related requests in the US, however, and Twitter is still hoping to win an appeal that would let it share more details.

Privacy

NJ Police Used Baby DNA To Investigate Crimes, Lawsuit Claims (theverge.com) 91

New Jersey police may have used blood samples taken from babies to investigate crimes, according to public defenders in the state. From a report: According to a lawsuit filed by the New Jersey Office of the Public Defender (OPD), the practice came to light after a case in which New Jersey State Police successfully subpoenaed a testing lab for a blood sample drawn from a child. Police then performed DNA analysis on the blood sample that reportedly linked the child's father to a crime committed more than 25 years ago. The suspect then became a client of the OPD, which alerted the office to the techniques used to identify the man.

The lawsuit, filed jointly by the OPD and the New Jersey Monitor, now seeks to compel the state of New Jersey to disclose information on the full extent of the practice. All babies born in the state of New Jersey are required to have a blood sample drawn within 48 hours as part of a mandatory testing program that screens them for 60 different disorders. These samples are processed in a state-run lab, which shares data with the state health authority and communicates results to parents. The blood samples are not directly shared with law enforcement agencies. But if police are able to reliably obtain the samples through subpoena, then effectively, the disease screening process is entering all babies born in the state into a DNA database with no ability to opt out.

AI

New Orleans OKs Some Police Use of Facial Recognition (apnews.com) 34

An anonymous reader quotes a report from The Associated Press: The New Orleans City Council has reversed itself and approved police use of facial recognition software and cellphone surveillance towers to investigate violent crimes. The ordinance, approved by the council on a 4-to-2 vote Thursday, comes as killings in the city reach numbers last seen in the mid-2000s after Hurricane Katrina. It partly reverses an ordinance passed nearly two years ago, when crime was low. Mayor LaToya Cantrell called it "a tremendous stride towards greater public safety."

The ordinance lists 39 specific crimes that can be investigated by using the technologies, including murder, rape, stalking, and battery of a police officer. Two other kinds of policing software remain forbidden: programs that seek to predict spots where crime is likely and those which use characteristics such as size, clothing or vehicle model to track people.
The American Civil Liberties Union of Louisiana said facial recognition software has been shown to be biased by race and sex, and "there is absolutely no evidence that reinstating facial recognition will help reduce violence."

Council member Eugene Green, who proposed the ordinance, said new police policies, including procedures for ensuring accuracy, were adequate safeguards. John Thomas, director of public safety and homeland security for the city, added: "The facial recognition in and of itself cannot get you any arrest warrants, no search warrants. It is just a tool for us to say, 'OK, this is a lead.'"
Transportation

Senate Moves Forward With EV Tax Credit Reform (electrek.co) 220

An anonymous reader quotes a report from Electrek: The US Senate is going to move forward with a sweeping new bill after Senator Joe Manchin finally accepted to include investments to curb climate change. The new bill is going to include the long-awaited electric vehicle tax credit reform that is going to give back access to the tax credit to Tesla GM vehicles, along with other changes. Last year, the US House of Representatives passed the $1.9 trillion "Build Back Better" legislation, but it has been stuck in the divided Senate ever since. The bill is interesting to the EV community because it includes a long-needed reform to the federal tax credit for electric vehicles. Even though it is technically a small part of the overall bill, it is a point of contention.

The main goal of the reform, and the one most people agree on, is the need to eliminate the tax credit cap after automakers hit 200,000 EVs sold, since it is putting automakers that were early in pushing electric vehicles at a disadvantage. It also happens that those automakers are American automakers, like Tesla and GM, while many foreign automakers still have access to the credit. Joe Manchin, a Democrat and senior United States senator from West Virginia, has been holding his vote, which is the deciding vote since the Democrats need every single one of their votes in the Senate to pass anything. The senator, who comes from a very conservative state, has proven to be difficult to deal when it comes to initiatives that deal with climate change, but in a reversal today, he announced that he accepted a new version of the bill, now called "Inflation Reduction Act of 2022."
Here are some of the key changes to the EV federal tax credit in the new bill (as confirmed by Electrek):

- Federal tax credit for EVs maintained at $7,500
- Eliminates tax credit cap after automakers hit 200,000 EVs sold, making GM and Tesla once again eligible
- The language in the bill indicates that the tax credit would be implemented at the point of sale instead of on taxes.
- In order to get the full credit, the electric vehicle needs to be assembled in North America, the majority of battery components need to come from North America, and contain a certain percentage of minerals from countries with free trade agreements with the US
- A new federal tax credit of $4,000 for used EVs
- Zero-emission vans, SUVs, and trucks with MSRPs up to $80,000 qualify
- Electric sedans priced up to $55,000 MSRP qualify
- The full EV tax credit will be available to individuals reporting adjusted gross incomes of $150,000 or less, $300,000 for joint filers
The Courts

Justice Department Investigating Data Breach of Federal Court System (politico.com) 18

The Justice Department is investigating a data breach of the U.S. federal courts system dating to early 2020, a top official testified on Capitol Hill Thursday. Politico reports: House Judiciary Committee Chair Jerrold Nadler (D-N.Y.) told fellow lawmakers that there had been a "system security failure" of the U.S. Courts' document management system. He said the committee learned in March about the "startling breadth and scope" of the breach. It was the first public disclosure of the hack. Nadler said the data breach of the courts was separate from the SolarWinds hack revealed in late 2020, which involved Russian government-backed hackers infiltrating the networks of over a dozen U.S. federal agencies for much of 2020, including the federal court systems. He spoke at a committee hearing on oversight of the Justice Department's National Security Division.

Assistant Attorney General for National Security Matthew Olsen testified to the committee that NSD is "working very closely with the judicial conference and judges around the country to address this issue," and committed to updating the committee on the investigation as it progressed. A committee aide said that Nadler's questions came after the committee received a briefing on the attack, noting that "the sweeping impact it may have had on the operation of the Department of Justice is staggering." The aide was granted anonymity in order to discuss a private briefing.

Committee member Rep. Sheila Jackson Lee (D-Texas) pressed Olsen for more details on how many cases had been impacted by the breach. "I would expect your preparation and for us to be able to get that information as quickly as possible in a setting that would be appropriate, but this is a dangerous set of circumstances that has now been publicly announced, and we need to know how many... were dismissed," Jackson Lee said. Nadler questioned Olsen on whether the breach had in any way affected cases pursued by the NSD, and Olsen testified he could not "think of anything in particular."

United States

Congressional Democrats Prepare To Introduce Net Neutrality Bill (cnet.com) 218

Democrats on Capitol Hill plan to introduce legislation that could restore net neutrality and the Federal Communications Commission's authority to regulate broadband. From a report: With President Joe Biden's pick to be the fifth commissioner at the FCC stalled, two Senate Democrats will introduce the Net Neutrality and Broadband Justice Act that would codify Obama-era net neutrality rules repealed under President Donald Trump's administration. The renewed effort to pass a federal net neutrality law is being led by Sens. Edward J. Markey from Massachusetts and Ron Wyden from Oregon, according to a press release sent by Markey's office Thursday.

The legislation would reestablish the FCC's authority over broadband infrastructure by reclassifying internet service as a telecommunications service, the press release states. This would mean stricter oversight for broadband companies like AT&T, Comcast and Verizon, The Washington Post reports. Rep. Doris Matsui, a Democrat from California, will introduce companion legislation in the House, George Hatamiya, a spokesman for Matsui, confirmed last week. "I strongly believe that net neutrality principles should form the foundation of an open internet," Matsui said in an emailed statement to CNET. "These protections will help defend free expression and innovation -- protecting consumers and securing a more equitable online ecosystem."

EU

EU Found Evidence Employee Phones Compromised With Spyware (reuters.com) 12

The European Union found evidence that smartphones used by some of its staff were compromised by an Israeli company's spy software, the bloc's top justice official said in a letter seen by Reuters. From the report: In a July 25 letter sent to European lawmaker Sophie in 't Veld, EU Justice Commissioner Didier Reynders said iPhone maker Apple had told him in 2021 that his iPhone had possibly been hacked using Pegasus, a tool developed and sold to government clients by Israeli surveillance firm NSO Group. The warning from Apple triggered the inspection of Reynders' personal and professional devices as well as other phones used by European Commission employees, the letter said. Though the investigation did not find conclusive proof that Reynders' or EU staff phones were hacked, investigators discovered "indicators of compromise" â" a term used by security researchers to describe that evidence exists showing a hack occurred.
Crime

Charter Told To Pay $7.3 Billion In Damages After Cable Installer Murders Grandmother (theregister.com) 231

Charter Communications must pay out $7 billion in damages after one of its Spectrum cable technicians robbed and killed an elderly woman, a jury decided Tuesday. The Register reports: Betty Thomas, 83, was stabbed to death by Roy Holden Jr in December 2019. He had dropped by her home in Irving, Texas, on a service call after she reported a problem with her internet-TV bundle, and returned the next day in his company uniform and van, inviting himself in and killing her using his Spectrum-issued gloves and utility knife. She was found dead by her family on her living room floor after she didn't show up to a Christmas and birthday party that night. Holden pleaded guilty to murder last year and was sentenced to life behind in bars.

Thomas' family sued Charter [PDF] in 2020 for negligence. It was alleged in testimony that Holden had complained to his bosses that he was penniless and desperate after a divorce. It was further alleged that he had stolen credit cards and checks from elderly Spectrum subscribers, and that the corporation turned a blind eye to a pattern of theft by its installers and technicians. During that civil trial it was also claimed Thomas' family was charged $58 for Holden's service call, and continued to be billed after their grandmother's brutal slaying to the point where her account was sent to collections.

The court heard how Holden was not working the day he killed Thomas, and went out to her home anyway to rob her. He was able to use his company keycard to access a Charter vehicle lot and drive off in one of its service vans even though he was off-duty. According to the family's legal team, while Holden was seemingly making repairs, he tried to steal one or more of her bank cards from her purse, and murdered her when he was caught in the act. He later went on a spending spree with her funds, it was claimed. "This was a shocking breach of faith by a company that sends workers inside millions of homes every year," said the one of family's trial lawyers Chris Hamilton, of Dallas-based Hamilton Wingo, in a statement.

According to the law firm, Holden lied about his employment history -- such as not revealing he had been previously fired -- which wasn't checked by Charter when it hired him and would have been one of many red flags against him. During the civil trial, the court heard how Holden would break down crying at work, at one point was convinced he was a former Dallas Cowboys football player, suffered from insomnia, and was probably sleeping overnight in his Spectrum van. It was further claimed the cable giant tried to force the lawsuit into closed-door arbitration where the results would have been secret and damages limited.

Privacy

Google's Nest Will Provide Data to Police Without a Warrant (petapixel.com) 81

As reported by CNET, Google will allow law enforcement to access data from its Nest products -- or theoretically any other data you store with Google -- without a warrant. PetaPixel reports: "If we reasonably believe that we can prevent someone from dying or from suffering serious physical harm, we may provide information to a government agency -- for example, in the case of bomb threats, school shootings, kidnappings, suicide prevention, and missing person cases," reads Google's TOS page on government requests for user information. "We still consider these requests in light of applicable laws and our policies."

An unnamed Nest spokesperson did tell CNET that the company tries to give its users notice when it provides their data under these circumstances. Google "reserves the right" to make emergency disclosures to law enforcement even when there is no legal requirement to do so. "A provider like Google may disclose information to law enforcement without a subpoena or a warrant 'if the provider, in good faith, believes that an emergency involving danger of death or serious physical injury to any person requires disclosure without delay of communications relating to the emergency,'" a Nest spokesperson tells CNET.

While Amazon and Google have both said they would hand over a user's data to law enforcement without a warrant, Arlo, Apple, Wyze, and Anker, owner of Eufy, all confirmed to CNET that they won't give authorities access to a user's smart home camera's footage unless they're shown a warrant or court order. These companies would be legally bound to provide data to the authorities if they were shown a legal document. But, unlike Google and Amazon, they will not otherwise share camera footage with law enforcement, even if they had an emergency request for data. Apple's default setting for video cameras connected via Homekit is end-to-end encryption which means the company is unable to share user video at all.
In an updated statement, a Google spokesperson clarified that they have never sent Nest data to authorities, "but it's important that we reserve the right to do so."

They added: "To reiterate, and as we've specified in our privacy commitments, we will only share video footage and audio recordings with third-party apps and services that work with our devices if you or a member of your home explicitly gives us permission, and we'll only ask for this permission in order to provide a helpful experience from an approved partner (such as a home security service provider)."
Privacy

'Orwellian' Facial Recognition Cameras In UK Stores Challenged By Rights Group (reuters.com) 23

An anonymous reader quotes a report from Reuters: Shoppers at a supermarket chain in southern England are being tracked by facial recognition cameras, prompting a legal complaint by a privacy rights group. Big Brother Watch said Southern Co-operative's use of biometric scans in 35 stores across Portsmouth, Bournemouth, Bristol, Brighton and Hove, Chichester, Southampton, and London was "Orwellian in the extreme" and urged Britain's Information Commissioner's Office (ICO) to investigate whether it breaches data protection legislation.

The complaint claims the use of the biometric cameras "is infringing the data rights of a significant number of UK data subjects." It outlines how the facial recognition system, sold by surveillance company Facewatch, creates a biometric profile of every visitor to stores where the cameras are installed, enabling Southern Co-operative to create a "blacklist" of customers. If a customer on the list enters the store, staff are alerted. [...] "We take our responsibilities around the use of facial recognition extremely seriously and work hard to balance our customers' rights with the need to protect our colleagues and customers from unacceptable violence and abuse," Southern Co-operative said. It said it uses the facial recognition cameras only in stores where there is a high level of crime to protect staff from known offenders and does not store images of an individual unless they have been identified as an offender.
Kmart and Bunnings stores in Australia are also being investigated for the privacy implications of their facial recognition systems. The two chains were trialing the technology to spot banned customers, prevent refund fraud and reduce theft.

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