Japan

Japan To Pay Companies To Keep Sensitive Patents Secret (reuters.com) 28

Japan will compensate companies to keep secret patents with potential military applications under proposed legislation, the Nikkei reported on Sunday, without citing sources. Reuters: The patents under review in the proposed economic security legislation will include technology that can help develop nuclear weapons, such as uranium enrichment and cutting-edge innovations like quantum technology, the financial daily said.
Your Rights Online

Could GDPR Policy Erase Your Games? It Happened To an Ubisoft Customer (pcworld.com) 104

If you haven't used your Ubisoft account in a while, there's a chance the game publisher might nuke your account for being inactive -- that's the reality one gamer said he discovered after stepping away from PC gaming for more than a year. From a report: "In 2020, I sold my PC because I was gaming way too much and it went a bit over the healthy way of doing it. I made a choice to work and attend school," a Norwegian gamer named Tor, who wished to be identified only by his first name, told PCWorld. He sold off his Core i7 and GeForce GTX 1080 Ti machine, and began relying on his phone as his only piece of technology.

But by the summer of 2021, Tor decided to get back into gaming, so he purchased a new gaming PC, only to discover he was unable to log into his Ubisoft account. Tor told PCWorld he was able to reset the password, but eventually learned the account had been closed, taking several hundred dollars of purchased games with it. All Ubisoft titles from Tom Clancy's Rainbow Six Siege series to Assassins' Creed and more were gone. But none of the other services he uses had been cut off. Only Ubisoft disappeared, he said. Ubi officials, however, flatly insist whatever happened in Tor's case isn't normal and that it has never deleted any account that hasn't been logged into in less than four years. The company also says any account that has a purchased game tied to it, would also not be up for closure at all. Despite what the company says though, Tor insists his account and games are gone. "Ubisoft told me they can't recover it. It's deleted, permanently locked," he said.

Privacy

DuckDuckGo Search Queries Grew 47% in 2021 (bleepingcomputer.com) 48

"The privacy-focused search engine DuckDuckGo continues to grow rapidly, with the company now averaging over 100 million daily search queries and growing by almost 47% in 2021..." reports BleepingComputer: In 2020, DuckDuckGo received 23.6 billion total search queries and achieved a daily average of 79 million search queries by the end of December.

In 2021, DuckDuckGo received 34.6 billion total search queries so far and currently has an average of 100 million search queries per day, showing a 46.4% growth for the year.

While DuckDuckGo's growth is considerable, it still only has 2.53% of the total market share, with Yahoo at 3.3%, Bing at 6.43%, and Google holding a dominant share of 87.33% of search engine traffic in the USA. However, as people continue to become frustrated with how their data is being used by tech giants like Google, Facebook, Microsoft, and Apple, we will likely see more people switch to privacy-focused search engines.

This year DuckDuckGo also released their own email forwarding service, and announced work on the DuckDuckGo Privacy Browser for Desktop — which will be built from scratch and not be based on Chromium.
Transportation

Concerns About Big Tech's Next Potential Monopoly: Connected Cars (politico.com) 102

Politico reports: When Ford announced that starting in 2023 its cars and trucks would come with Google Maps, Assistant and Play Store preinstalled, CEO Jim Farley called the partnership between his iconic U.S. automaker and the search giant a chance to "reinvent" the automobile — making it an office-on-wheels, with more connectivity than any phone or laptop. "We were spending hundreds and hundreds and hundreds of millions every year, keeping up with basically a generic experience that was not competitive to your cellphone," Farley crowed on CNBC, announcing the six-year deal with the tech giant.... But many tech-industry watchdogs looked at the Ford-Google car of the future with different eyes. They fear that tech companies will soon be doing to cars what they did to phones: Tying their exclusive operating systems to specific products to force out competitors and dominate a huge swath of the global economy.

Indeed, the smartphone wars are over, and Google and Apple won. Now they — and Amazon — are battling to control how you operate within your car. All three see autos as the next great opportunity to reach American consumers, who spend more time in the driver's seat than anywhere outside their home or workplace. And automakers, after years of floundering to incorporate cutting-edge technologies into cars on their own, are increasingly eager for Silicon Valley's help — hoping to adopt both its tech and its lucrative business models where consumers pay monthly for ongoing services instead of shelling out for a product just once. Now, having missed the boat as the tech giants cornered the market on smartphones, some policymakers and regulators believe the battle over connected cars represents a chance to block potential monopolies before they form.

State attorneys general who sued Google in 2020 for monopolizing online search highlighted concerns about the company's move into autonomous cars in their federal antitrust complaint. Meanwhile, in Europe, the EU's competition authority has opened a probe into Google's contracts related to connected cars... While Silicon Valley and automakers are thrilled about the future of connected and autonomous cars, regulators and privacy advocates are less so. "These companies have an amount of data on us that they shouldn't have, and they have a history of not using it in responsible ways," said Katharine Trendacosta of the digital civil liberties group Electronic Frontier Foundation. "They have a history of going back on promises they have made about that data."

She cited Google's pledge during the DoubleClick acquisition in 2008 — which it later reneged on — not to combine data from its consumer products with that from its advertising services.

The article quotes Tennessee Attorney General Herbert Slatery III, who last December complained that "When smartphones took off, Google made sure they controlled search on Apple's iPhone. They are doing the same thing on voice and connected cars. It's a similar playbook." And an executive at an automotive supplier that competes with Google tells Politico that Google is already "corralling everything through their system and controls what information is released downstream."

And Jim Heffner, a vice president at Cox Automotive Mobility, adds that "The ride is no longer the point. Data is the cornerstone. ... Apple and Google and others want to be at the epicenter of that."
Government

Employee Background Check Errors Harm Thousands of Workers (consumerfinance.gov) 65

Slashdot reader dcblogs writes: Criminal background checks that incorrectly identify an applicant as a thief or sex offender happen more often than many expect. This story reviewed more than 75 lawsuits against background checks firms, spoke with plaintiff attorneys and industry experts to paint a picture of an industry that can ruin lives in minutes. Job applicants are labeled thieves and sex offenders by incorrect reports, and job candidates may protest, but it may not do them any good. Employers may drop them as damaged goods before the correction.
From the article: Some of the errors detailed in lawsuits against background check firms are inexplicable and show a lack of basic attention to detail. Common mistakes include mismatched names and addresses. One background check lawsuit alleged that the first name of Ashley was misidentified as Alysha. In another case, two people with the same first and last name were mixed up despite their distinct middle names: Magdalena and Elena... In another lawsuit, an applicant with a middle name of Scot (one T) was confused with someone whose middle name was Scott (two T's). A background check firm told one job applicant that his Social Security number was in the government's "Death Master File...."
"The candidate may protest. But by then, HR has likely dropped the candidate in an effort to fill an open position," the article points out, offering one example where a corrected background check then arrived, but several weeks later. (The man's lawyer believes it's common for employers to then still refuse to consider an applicaton, simply because "first impressions are everything.")

The article adds that the U.S. Consumer Financial Protection Bureau is now "threatening enforcement actions in concert with the U.S. Federal Trade Commission and Department of Justice." They've already issued an advisory in November calling out "shoddy name matching procedures" used to link people with criminal and other records, and warned that "Even ostensibly low error rates can harm significant numbers of consumers" — especially since more than 90% of U.S. employers use background check data in their hiring processes.
Crime

Google Scans Gmail and Drive For Cartoons of Child Sexual Abuse (forbes.com) 146

A Forbes associate editor covering privacy, cybercrime, and security/surveillance reports on a recently-revealed search warrant.

Instead of investigating a photo, it asked Google to provide information on a suspect who allegedly owned graphic illegal cartoons involving children: That kind of content is potentially illegal to own under U.S. law and can be detected by Google's anti-child sexual material (CSAM) systems, a fact not previously discussed in the public domain, the warrant reveals.... Google also uses machine learning tools to look at files and analyze them for any sign they're of abused children....

As per its legal requirements, Google handed information on what it found, as well as the IP addresses used to access the images, to the National Center for Missing and Exploited Children (NCMEC), which then passed on the findings to the DHS Homeland Security Investigations unit. Investigators used the IP addresses provided by Google to identify the suspect as the alleged owner of the cartoons, and searched his Google account, receiving back information on emails to and from the defendant. It appears the suspect may actually be a known artist. As no charges have been filed, Forbes isn't publishing his name, but the man identified in the warrant had won several small Midwest art competitions, and one artwork from the 1990s had been mentioned in a major West Coast newspaper...

Google, meanwhile, has in recent years released transparency reports showing how many times it reports issues to NCMEC. The figures reveal a disturbing trend. In the first six months of 2021, it found more than 3.4 million pieces of potentially illegal content in 410,000 separate reports. That was up from 2.9 million in 365,000 reports in the last six months of 2020, and well over double that from January to June 2020, when 1.5 million pieces of CSAM material were discovered and reported to NCMEC in 180,000 reports...

As Google doesn't end-to-end encrypt its communications tools like Gmail or its file storage tech like Drive, it's still possible for the tech company to scan for illegal content. And as it has no plans to introduce those features, law enforcement can still rely on Google to warn NCMEC when abuse happens on its servers. Whether the majority of users will want Google to scan people's accounts so it can help find child abusers, or have improved privacy with end-to-end encryption instead, the Mountain View, California-based business will have to struggle with that balance in perpetuity. The same goes for any one of its rivals.

Privacy

Personal and Salary Data for 637,138 Albanian Citizens Leaks Online (therecord.media) 15

The Albanian government has confirmed and apologized this week for a data leak that exposed the personal and salary-related information for 637,138 citizens, more than 22% of the country's entire population. From a report: Details such as names, ID card numbers, salaries, job positions, and employer names were shared over the weekend on WhatsApp as an Excel document. The file included what appeared to be tax and salary information filed by companies with the Albanian government for the month of January 2021, according to local media. In a press conference today, Prime Minister Edi Rama confirmed and apologized for the breach. "According to a preliminary analysis, it looks more like an internal infiltration rather than an outside [...] cyber-attack," Rama told reporters, according to the Associated Press. The leak is now being investigated by the Tirana Prosecutor's Office, a government spokesperson said.
AI

Public Agencies Are Buying Up AI-Driven Hiring Tools and 'Bossware' (themarkup.org) 28

Through public records requests, The Markup found more than 20 public agencies using the sometimes-controversial software. From the report: In 2020, the FDA's Center for Drug Evaluation and Research (CDER) faced a daunting task: It needed to fill more than 900 job vacancies -- and fast. The center, which does things like inspect pharmaceutical manufacturing facilities, was in the process of modernizing the FDA's New Drugs Regulatory Program just as the pandemic started. It faced "a surge in work," along with new constraints that have affected everyone during the pandemic, including travel limitations and lockdowns. So they decided to turn to an artificial intelligence tool to speed up the hiring, according to records obtained by The Markup. The center, along with the Office of Management and the Division of Management Services, the background section of a statement of work said, were developing a "recruitment plan to leverage artificial intelligence (AI) to assist in the time to hire process."

The agency ultimately chose to use HireVue, an online platform that allows employers to review asynchronously recorded video interviews and have recruits play video games as part of their application process. Over the years the platform has also offered a variety of AI features to automatically score candidates. HireVue, controversially, used to offer facial analysis to predict whether an applicant would be a good fit for an open job. In recent years, research has shown that facial recognition software is racially biased. In 2019, the company's continued use of the technique led one member of its scientific advisory board to resign. It has since stopped using facial recognition. The Markup used GovSpend, a database of procurement records for U.S. agencies at the state, local, and federal levels, to identify agencies that use HireVue. We also searched for agencies using Teramind and ActivTrak, both another kind of controversial software that allows employers to remotely monitor their workers' browsing activities through screenshots and logs. The Markup contacted and filed public records requests with those 24 agencies to understand how they were using the software. Eleven public agencies, including the FDA, replied to The Markup with documents or confirmations that they had bought HireVue at some point since 2017. Of the six public agencies that replied to The Markup's questions confirming that they actually used the software, all but one -- Lake Travis Independent School District in Texas -- confirmed they did not make use of the AI scoring features of the software. Documents and responses from 13 agencies confirmed that they purchased Teramind or ActivTrak at some point during the same time frame.

Crime

New Policing System Will Send Drones To the Source of Gunshots (newatlas.com) 170

A new policing system is being developed that will send autonomous drones equipped with shot-locating technology to the source of gunshots. "By analyzing the live video from its onboard camera, police officers can then gain a better sense of the situation they're heading into," reports New Atlas. From the report: Already in use in over 120 cities in the US, South Africa and the Caribbean, the American ShotSpotter system utilizes a network of microphones within a neighborhood to detect "loud, impulsive sounds." Whenever such a sound is detected, its geographical originating point can be triangulated by analyzing the millisecond differences in the times at which it was picked up by the different microphones -- the closer a mic was to the gun, the earlier it will have detected the sound of that gun firing. That said, a combination of AI software and human staff (at a control center) is used to determine if the sound is indeed gunfire.

In the existing version of the system, police are quickly dispatched to the location. If they're using ground transportation, however, it may take a while for them to get there. And even if the police department has a helicopter, performing pre-flight checks, etc will still take some time -- assuming the aircraft isn't already in the air on patrol, that is. With these potential limitations in mind, Israeli drone manufacturer Airobotics has teamed up with ShotSpotter to add autonomous drones to the mix. In the new version of the setup, police will still be dispatched, but so will the closest system-specific drone. That aircraft will be in the air within seconds, immediately flying to the source of the gunshots. By analyzing the live video from its onboard camera, police officers can then gain a better sense of the situation they're heading into.

The Courts

EV Startup Nikola Agrees To $125 Million Settlement (seattletimes.com) 41

Long-time Slashdot reader bird writes: Without admitting wrong-doing, would-be electric truck maker Nikola has agreed to a $125,000,000 settlement to settle charges that it defrauded investors with false claims about their EV vehicle technology. You may recall the video of a supposedly electric-powered truck that was later admitted to be powered not by a motor but rather by gravity? Nikola. The Seattle Times provides additional details about the settlement: Nikola violated the antifraud and disclosure control provisions of the federal securities laws, the Securities and Exchange Commission said Tuesday. In July the founder and one-time chair of Nikola, Trevor Milton, was freed on $100 million bail after pleading not guilty to charges alleging he lied about the company. The U.S. Attorney's Office in Manhattan, New York, charged Milton, 39, with two counts of securities fraud and wire fraud. He resigned as chairman in September. The SEC said in its order that Milton embarked on a public-relations campaign aimed at inflating and maintaining Nikola's stock price before the company had produced a vehicle. The SEC also found that Milton misled investors about Nikola's technological advancements, in-house production capabilities, hydrogen production, truck reservations and orders, and financial outlook. In addition, it found that Nikola misled investors by misrepresenting or omitting information about the refueling time of its prototype vehicles, as well as the economic risks and benefits associated with a potential partnership with General Motors.

Nikola, based in Phoenix, didn't admit or deny the SEC's findings. The company did agree to cease and desist from future violations and to the $125 million penalty. Nikola also agreed to continue cooperating with the SEC's ongoing investigation. The order also establishes a fund to return penalty proceeds to investors who were affected. "We are pleased to bring this chapter to a close as the company has now resolved all government investigations," Nikola said in a statement. We will continue to execute on our strategy and vision to deliver on our business plan."

Bitcoin

US Returns $154 Million In Bitcoins Stolen By Sony Employee (bleepingcomputer.com) 37

The United States has taken legal action to seize and return over $154 million purportedly stolen from Sony Life Insurance Company Ltd, a SONY subsidiary, by an employee in a textbook business email compromise (BEC) attack. BleepingComputer reports: "According to the government's complaint, Rei Ishii, an employee of Sony Life Insurance Company Ltd. ("Sony Life") in Tokyo, allegedly diverted the $154 million when the company attempted to transfer funds between its financial accounts," the Justice Dept said today. "Ishii allegedly did this by falsifying transaction instructions, which caused the funds to be transferred to an account that Ishii controlled at a bank in La Jolla, California."

According to court documents, Ishii switched the transfer address for a Sony Life transaction to use a Silvergate Bank account under his control. Ishii later converted the stolen funds into more than 3879 bitcoins via A Coinbase set up to automatically transfer all added funds to an offline cryptocurrency cold wallet [...]. After converting the money to cryptocurrency, Ishii also tried persuading his supervisor and several Sony Life executives not to help investigators by emailing them a ransom note typed in English and Japanese. "If you accept the settlement, we will return the funds back. If you are going to file criminal charges, it will be impossible to recover the funds," the note read. "We might go down behind all of this, but one thing is for sure, you are going to be right there next to us. We strongly recommend to stop communicate (sic) with any third parties including law enforcement."

However, on December 1, following an investigation in collaboration with Japanese law enforcement authorities, the FBI seized the 3879.16242937 BTC in Ishii's wallet after obtaining the private key, which made it possible to transfer all the bitcoins to the FBI's bitcoin wallet. [...] Tokyo's Metropolitan Police Department arrested the 32-year-old Ishii the same day and criminally charged him on suspicion of obtaining $154 million dollars following fraudulent money transfers from mid-May.

United States

The US Could Reliably Run On Clean Energy By 2050 (popsci.com) 214

An anonymous reader quotes a report from Popular Science: The Biden administration has pledged to create a carbon-free energy sector by 2035, but because renewable resources generate only around 19 percent of US electricity as of 2020, climate experts warn that our transition to a green grid future needs to speed up. A group of researchers at Stanford led by Mark Jacobson, professor of civil and environmental engineering, has set out to prove that a 100 percent renewable energy grid by 2050 is not only feasible but can be done without any blackouts and at a lower cost than the existing grid. Jacobson is the lead author of a new paper, published in Renewable Energy, which argues that a complete transition to renewable energy -- defined as wind, water, and solar energy -- would benefit the US as a whole and individuals by saving costs, creating jobs, and reducing air pollution and carbon emissions.

They modeled how wind turbines, tidal turbines, geothermal and hydroelectric power plants, rooftop and utility photovoltaic panels, and other sources could generate energy in 2050. A host of different sources powered these projections: Jacobson used data from a weather-climate-air pollution model he first built in 1990, which has been used in numerous simulations since. Individual state and sector energy consumption was taken from the Energy Information Administration. Current fossil fuel energy sources were converted to electric devices that are powered by wind, water, and solar. This was then used to create projections for energy use in 2050. Time-dependent energy supply was matched with demand and storage in a grid integration model for every 30 second interval in 2050 and 2051. The study authors analyzed US regions and countrywide demand until the model produced a solution with what the authors called zero-load loss -- meaning, essentially, no blackouts with 100 percent renewable energy and storage. According to Jacobson, no other study is conducting this kind of modeling, which is unique in part because it checks conditions for any simulation every 30 seconds.

As the cost of renewables falls, researchers predict power companies and consumers will migrate to using renewables. Solar and wind are already half the cost of natural gas. Policy may also motivate adoption -- or hinder it. While the current administration has set out goals for a renewable energy grid, new permits for gas and drilling in the Gulf of Mexico counteract those same efforts. [...] The researchers quantified these benefits by looking at private costs, such as those to individuals or corporations, and social ones, which also include health and climate costs. Zero-emissions leads to few air pollution related deaths and illness, and a reduced toll on the healthcare system. [...] The model cannot address emissions from things like long-distance shipping or aviation, though the authors argue that green hydrogen could be a possible alternative to explore. They did not include nuclear energy or carbon capture, which [Anna-Katharina von Krauland, a PhD candidate in the Atmosphere/Energy program at Stanford and a co-author of the paper] views as "distractions from getting to 100 percent renewable energy as quickly as possible" because the technologies are costly, unproven, or lacking in their promises. "The best path forward would be to invest in what we know works as quickly as we can," she says -- such as wind, water, and solar energy.

Security

The NCA Shares 585 Million Passwords With 'Have I Been Pwned' (therecord.media) 20

The UK National Crime Agency has shared a collection of more than 585 million compromised passwords it found during an investigation with Have I Been Pwned, a website that indexes data from security breaches. The Record reports: The NCA now becomes the second law enforcement agency to officially supply HIBP with hacked passwords after the US Federal Bureau of Investigations began a similar collaboration with the service back in May. In a blog post today, Troy Hunt, HIBP creator Troy Hunt said that 225 million of the compromised passwords found by the NCA were new and unique.

These passwords have been added to a section of the HIBP website called Pwned Passwords. This section allows companies and system administrators to check and see if their current passwords have been compromised in hacks and if they are likely to be part of public lists used by threat actors in brute-force and password-spraying attacks. Currently, the HIBP Pwned Passwords collection includes 5.5 billion entries, of which 847 million are unique. All these passwords are also available as a free download, so companies can check their passwords against the data set locally without connecting to Hunt's service.

In a statement shared by Hunt, the NCA said it found the compromised passwords, paired with email accounts, in an account at a UK cloud storage facility. The NCA said they weren't able to determine or attribute the compromised email and password combos to any specific platform or company.

Privacy

Security Flaws Found in a Popular Guest Wi-Fi System Used in Hundreds of Hotels (techcrunch.com) 25

A security researcher says an internet gateway used by hundreds of hotels to offer and manage their guest Wi-Fi networks has vulnerabilities that could put the personal information of their guests at risk. From a report: Etizaz Mohsin told TechCrunch that the Airangel HSMX Gateway contains hardcoded passwords that are "extremely easy to guess." With those passwords, which we are not publishing, an attacker could remotely gain access to the gateway's settings and databases, which store records about the guest's using the Wi-Fi. With that access, an attacker could access and exfiltrate guest records, or reconfigure the gateway's networking settings to unwittingly redirect guests to malicious webpages, he said. Back in 2018, Mohsin discovered one of these gateways on the network of a hotel where he was staying. He found that the gateway was synchronizing files from another server across the internet, which Mohsin said contained hundreds of gateway backup files from some of the most prestigious and expensive hotels in the world. The server also stored "millions" of guest names, email addresses and arrival and departure dates, he said. Mohsin reported the bug and the server was secured, but that sparked a thought: Could this one gateway have other vulnerabilities that could put hundreds of other hotels at risk? In the end, the security researcher found five vulnerabilities that he said could compromise the gateway -- including guests' information.
Piracy

Malaysia Passes Bill to Imprison Illegal Streaming Pirates For Up To 20 Years (torrentfreak.com) 62

New amendments to Malaysia's Copyright Act mean that "People who offer streaming services and devices that 'prejudicially' hurt copyright owners can face fines equivalent to $2,377 or more, prison sentences up to 20 years, or both," reports Engadget.

TorrentFreak has more details: How the amendments will be used in practice remains to be seen but the scope appears to be intentionally broad and could result in significant punishments for those found to be in breach of the law....

Those hoping to use a corporate structure as a shield are also put on notice. When any offenses are committed by a corporate body or by a person who is a partner in a firm, everyone from directors to managers will be deemed guilty of the offense and may be charged severally or jointly, unless they can show they had no knowledge and conducted due diligence to prevent the offense.

Crime

2021 Had Six Different Cryptocurrency Heists Over $100 Million (nbcnews.com) 55

More than 20 different times in the last 12 months, at least $10 million was stolen from a cryptocurrency exchange or project, reports NBC News.

"In at least six cases, hackers stole more than $100 million..." By comparison, bank robberies netted perpetrators an average of less than $5,000 per heist last year, according to the FBI's annual crime statistics... "If you hack a Fortune 500 company today, you might steal some usernames and passwords," said Esteban Castaño, the CEO and co-founder of TRM Labs, a company that builds tools for companies to track digital assets. "If you hack a cryptocurrency exchange, you may have millions of dollars in cryptocurrency...."

[W]hile a handful of countries have strict regulations in place, it's relatively easy for tech entrepreneurs to set up an exchange nearly anywhere in the world and run it however they like. Cryptocurrencies generally offer a certain amount of security — taking their name, in part, from "encryption." But the exchanges that manage them, especially new ones building their businesses from scratch, often start with a tiny staff, which means few if any full-time cybersecurity professionals. Their developers may work frantically to make the code work, sometimes accidentally leaving flaws that give hackers a foothold. Combined with the fact that a volatile market often leaves them suddenly holding a fortune, exchanges are a particularly ripe target for criminal hackers....

The problem is exacerbated because many cryptocurrency projects, intent on avoiding government regulations, set up in countries whose law enforcement agencies don't have much power to go after transnational hackers. Or if they are hacked, they tend to be less likely to call for government help on ideological grounds, said Beth Bisbee, head of U.S. investigations at Chainalysis, a company that tracks cryptocurrency transactions for both private companies and government agencies. Some developers "want to be anti-bank and anti-oversight," Bisbee said. "So when something like that happens, they're not necessarily wanting to work with law enforcement, even though they'd be considered to be a victim and it'd be valuable for them to."

Ultimately the article points out that "Most exchange hackers are not caught." (Although in at least one case part of the stolen money was voluntarily returned.)

But what happens after the breach, NBC News asked Dave Jevans, the founder of CipherTrace, a company that tracks theft and fraud in cryptocurrencies. If an exchange is wealthy enough and plans ahead to have an emergency fund, it can compensate its customers if its operation is hacked, Jevans said. If not, they often goes out of business. "Not every exchange is so wealthy or has so much foresight. It just goes, pop, 'We're out of business. Sorry, you're all screwed,'" he said.
Piracy

Guitarist Eric Clapton Successfully Sues Woman For Posting $11 Bootleg (guitarworld.com) 183

Long-time Slashdot reader kjshark writes: Eric Clapton has successfully sued a German woman who posted an illegal recording for €9.95, about $11 on eBay. The CD was a single-bootlegged recording of a Clapton concert from the 1980s.

After Clapton sent a court in Düsseldorf an affidavit stating the recordings were illegal, the defendant claimed she was unaware the CD was recorded illegally and that her late husband originally purchased the CD at a department store in 1987. Her appeal was rejected by the court.

The court ruled that the woman pay the legal fees for both parties which amount to around $3,500 and that if she continues to keep the recording up on eBay she'll face six months in prison or a fine of around $283,000.

The Courts

Trial Ends For Theranos Founder Elizabeth Holmes (msn.com) 86

"Both sides made closing arguments this week in Theranos founder Elizabeth Holmes' fraud trial," reports Business Insider: Prosecutors said Holmes "chose to be dishonest" and that her allegations of abuse, which were a key part of her defense, were irrelevant. The defense said "rats flee a sinking ship" but Holmes stayed, noting "that's who that woman is...."

Prosecutors kicked off their arguments by recapping testimony from each of their 29 witnesses. They argued that Holmes saw money dry up at Theranos while its progress languished and had to decide whether to "watch Theranos slowly fail" or defraud investors and patients. "She chose fraud over business failure. She chose to be dishonest," said Assistant US attorney Jeffrey Schenk, according to NBC News. "That choice was not only callous, it was criminal."

Prosecutors revisited Holmes' bombshell admissions during her seven days of testimony, including that she added pharmaceutical companies' logos to validation reports without authorization and kept Theranos' use of modified third-party devices a secret. Holmes has said she wanted to convey that the reports were the result of work done with those pharmaceutical companies and that she withheld information about the use of commercial devices because it was a trade secret.

The New York Times argues historians will see the trial as "a case study in the use of clothing to affect opinion (public and judicial) and, if not to make friends, at least to influence people. Or try to." When the verdict comes down, the transformation of the wunderkind founder of Theranos from black-clad genius to besuited milquetoast will be an integral part of the story. Did it work, or was it a seemingly transparent effort to play the relatable card? Rarely has there been as stark an example of Before and After.... Gone were her signature black turtlenecks and black slacks; gone the bright red lipstick and blond hair ironed straight as a board or pulled into a chignon.... Instead there was ... sartorial neutrality, in the form of a light gray pantsuit and light blue button-down shirt, worn untucked, with baby pink lipstick. She looked more like the college student trying on a grown-up interview look than the mastermind of a multimillion-dollar fraud scheme.... There was not a power heel or a power shoulder in sight. The only part of her outfit that was branded in any way was her diaper bag backpack (her son was born in July), which was from Freshly Picked and costs around $175...

The net effect of Ms. Holmes's makeover was middle manager or backup secretarial character in a streaming series about masters of the universe (but not her! uh-uh), with the diaper bag functioning as an implicit reminder of her maternal status and family values. In case that accessory wasn't enough, she often entered the courthouse with an actual family member — her mother, her partner — in tow, and a hand to cling to. It was code-switching of the most skillful kind. It was relatable. One of the stereotypes of Silicon Valley's superstars, after all, is that they are other: speaking in bits, relating to machines more than people; living, literally, in a different reality. When you want a jury to sympathize with your plight, you have to make them imagine themselves in your shoes. Which means, you need to look, if not like them, at least like someone they might know.

Crime

Boston Police Bought Spy Tech With a Pot of Money Hidden From the Public (propublica.org) 63

An anonymous reader quotes a report from ProPublica: Across the country, some law enforcement agencies have deployed controversial surveillance technology to track cellphone location and use. Critics say it threatens constitutional rights, and members of Congress have moved to restrain its use. Nonetheless, in 2019 the Boston Police Department bought the device known as a cell site simulator -- and tapped a hidden pot of money that kept the purchase out of the public eye. A WBUR investigation with ProPublica found elected officials and the public were largely kept in the dark when Boston police spent $627,000 on this equipment by dipping into money seized in connection with alleged crimes.

Also known as a "stingray," the cell site simulator purchased by Boston police acts like a commercial cellphone tower, tricking nearby phones into connecting to it. Once the phones connect to the cell site simulator's decoy signal, the equipment secretly obtains location and other potentially identifying information. It can pinpoint someone's location down to a particular room of a hotel or house. While this briefcase-sized device can help locate a suspect or a missing person, it can also scoop up information from other phones in the vicinity, including yours. The Boston police bought its simulator device using money that is typically taken during drug investigations through what's called civil asset forfeiture.

An August investigation by WBUR and ProPublica found that even if no criminal charges are brought, law enforcement almost always keeps the money and has few limitations on how it's spent. Some departments benefit from both state and federal civil asset forfeiture. The police chiefs in Massachusetts have discretion over the money, and the public has virtually no way of knowing how the funds are used. The Boston City Council reviews the BPD annual budget, scrutinizing proposed spending. But the surveillance equipment wasn't part of the budget. Because it was purchased with civil forfeiture funds, BPD was able to circumvent the council. According to an invoice obtained by WBUR, the only city review of the purchase -- which was made with federal forfeiture funds -- came from the Procurement Department, confirming that the funds were available. In fact, it was only after sifting through hundreds of documents received through public records requests that WBUR discovered BPD had bought the device from North Carolina-based Tactical Support Equipment Inc., which specializes in surveillance technology.

The Courts

H&R Block Sues Over Square's New Name 'Block' (cnbc.com) 68

H&R Block filed a trademark infringement lawsuit over Square's new name, "Block" on Thursday. CNBC reports: The tax preparation service seeks to keep Block from using the new name, saying in a press release that the fintech company "would improperly capitalize on the goodwill and consumer trust cultivated by Block since 1955." H&R Block said the renamed company competes with it directly in financial services, including through its recent acquisition of Credit Karma Tax for tax preparation. It alleged the name would be overly confusing for consumers, especially given the two companies' overlapping offerings. "Today's filing is an important effort to prevent consumer confusion and ensure a competitor cannot leverage the reputation and trust we have built over more than six decades," said H&R Block President and CEO Jeff Jones said in a statement.

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