Crime

Samsung Leader Jay Y. Lee Granted Parole, To Leave Prison On Friday (reuters.com) 26

Samsung vice chairman Jay Y. Lee, in jail after convictions for bribery, embezzlement and other charges, has qualified for parole and is expected to leave prison this Friday, South Korea's justice ministry said. Reuters reports: "The decision to grant Samsung Electronics vice chairman Jay Y. Lee parole was the result of a comprehensive review of various factors such as public sentiment and good behavior during detention," the ministry said in a statement on Monday.
Convicted of bribing a friend of former President Park Geun-hye, Lee, 53, has served 18 months of a revised 30 month sentence. He initially served one year of a five-year sentence from August 2017 which was later suspended. That court decision was then overturned and while the sentence was shortened, he was sent back to jail in January this year. Lee still needs the Justice Minister to approve his return to work as the law bars persons with certain convictions from working for companies related to those convictions for five years. He is likely to get that, legal experts say, due to circumstances such as the amount deemed embezzled having been repaid.
The Federation of Korean Industries, a big business lobby, welcomed the decision, adding: "If the investment clock, currently at standstill, is not wound up quickly, we could lag behind global companies such as Intel and TSMC and lose the Korean economy's bread and butter at a moment's notice."
Privacy

Uber Asked Contractor To Allow Video Surveillance In Employee Homes, Bedrooms (arstechnica.com) 60

An anonymous reader quotes a report from Ars Technica: Teleperformance, one of the world's largest call center companies, is reportedly requiring some employees to consent to video monitoring in their homes. Employees in Colombia told NBC News that their new contract granted the company the right to use AI-powered cameras to observe and record their workspaces. The contract also requires employees to share biometric data like fingerprints and photos of themselves, and workers have to agree to share data and images that may include children under 18.

Teleperformance employs over 380,000 people in 83 countries to provide call center services for a range of companies, including Amazon, Apple, and Uber. A company spokesperson told NBC that it is "constantly looking for ways to enhance the Teleperformance Colombia experience for both our employees and our customers, with privacy and respect as key factors in everything we do." Amazon and Apple said that they did not ask Teleperformance for this extra monitoring, and an Apple spokesperson said the company forbids video monitoring of employees by suppliers. A recent Apple audit reportedly found Teleperformance in compliance with this requirement. But Uber apparently requested the ability to monitor some workers. Uber said it wouldn't observe the entire workforce, but the company did not specify which employees would be subject to the new policies. The ride sharing company asked for the monitoring of Teleperformance's remote employees because call center staff have access to customers credit cards and trip details, an Uber spokesperson told NBC News.

Government

Apple Says It Will Reject Government Demands To Use New Child Abuse Image Detection System for Surveillance (cnbc.com) 96

Apple defended its new system to scan iCloud for illegal child sexual abuse materials (CSAM) on Monday during an ongoing controversy over whether the system reduces Apple user privacy and could be used by governments to surveil citizens. From a report: Last week, Apple announced it has started testing a system that uses sophisticated cryptography to identify when users upload collections of known child pornography to its cloud storage service. It says it can do this without learning about the contents of a user's photos stored on its servers. Apple reiterated on Monday that its system is more private than those used by companies like Google and Microsoft because its system uses both its servers and software running on iPhones.

Privacy advocates and technology commentators are worried Apple's new system, which includes software that will be installed on people's iPhones through an iOS update, could be expanded in some countries through new laws to check for other types of images, like photos with political content, instead of just child pornography. Apple said in a document posted to its website on Sunday governments cannot force it to add non-CSAM images to a hash list, or the file of numbers that correspond to known child abuse images Apple will distribute to iPhones to enable the system.

Privacy

Is Big Tech Pressuring Its Call-Center Workers to Install Cameras in Their Homes? (nbcnews.com) 95

NBC News reports: Colombia-based call center workers who provide outsourced customer service to some of the nation's largest companies are being pressured to sign a contract that lets their employer install cameras in their homes to monitor work performance, an NBC News investigation has found. Six workers based in Colombia for Teleperformance, one of the world's largest call center companies, which counts Apple, Amazon and Uber among its clients, said that they are concerned about the new contract, first issued in March. The contract allows monitoring by AI-powered cameras in workers' homes, voice analytics and storage of data collected from the worker's family members, including minors.

Teleperformance employs more than 380,000 workers globally, including 39,000 workers in Colombia. "The contract allows constant monitoring of what we are doing, but also our family," said a Bogota-based worker on the Apple account who was not authorized to speak to the news media. "I think it's really bad. We don't work in an office. I work in my bedroom. I don't want to have a camera in my bedroom." The worker said that she signed the contract, a copy of which NBC News has reviewed, because she feared losing her job. She said that she was told by her supervisor that she would be moved off the Apple account if she refused to sign the document. She said the additional surveillance technology has not yet been installed.

The concerns of the workers, who all spoke on the condition of anonymity because they were not authorized to speak to the media, highlight a pandemic-related trend that has alarmed privacy and labor experts: As many workers have shifted to performing their duties at home, some companies are pushing for increasing levels of digital monitoring of their staff in an effort to recreate the oversight of the office at home... "Surveillance at home has really been normalized in the context of the pandemic," said Veena Dubal, a labor law professor at the University of California, Hastings. "Companies see a lot of benefit in putting in software to do all kinds of monitoring they would have otherwise expected their human managers to do, but the reality is that it's much more intrusive than surveillance conducted by a boss."

An Uber spokesperson confirmed to NBC News that it Uber actually requested the monitoring of its workers, the article reports. Interviewed by NBC News, an Uber spokespreson "said that its customer service agents have access to private and sensitive user information, including credit card details and trip data, and that protecting that information is a priority for Uber.

"As a result, Uber requested Teleperformance to monitor staff working on its accounts to verify that only a hired employee is accessing the data; that outsourced staff weren't recording screen data on another device such as a phone; and that no unauthorized person was near the computer."
Government

US Lawmakers Propose a $2.5 Billion Pilot Guaranteed Income Program (msn.com) 250

Amid fears that technology may be quietly eliminating many basic jobs, late last month several U.S. lawmakers "proposed legislation that would dole out regular stimulus checks — or guaranteed income — through monthly payments of up to $1,200 for adults and $600 for children," according to a local news report from WCCO TV: The program, if the legislation were to pass, would not immediately begin sending out $1,200 checks to most Americans. Instead, it would create a $2.5 billion grant program to fund pilot guaranteed income programs across the country. The programs would be studied from 2023 to 2027 and then the national program would begin in 2028, Minneapolis' WCCO-TV reported. Then the legislation would provide $1,200 per month to people making $75,000 or less per year. The heads of households with an income of up to $112,500 would receive $1,200 under the program. And $600 would be provided for each minor child.
Though it's a long way from becoming law, one of the legislators proposing it says "We need a paradigm shift in how we measure and evaluate our economy. If my district, New York's 16th, was a country, it would have the 8th worst inequality in the world. Our barometers for economic success, as well as our policies, must be centered around meeting basic levels of care and dignity for all of our people."

The bill proposes that a new Office of Guaranteed Income Programs be established in the U.S. Treasury Department to oversee all the payments. Though it seems like this would cost something like a trillion dollars a year...
Businesses

Will a New Gig Worker Exception Proposed in Massachusetts Change the Future of Work? (cnn.com) 136

"Last year, Uber, Lyft, DoorDash and Instacart succeeded in getting Californians to vote in favor of a ballot measure exempting them from classifying drivers and delivery workers as employees," remembers CNN. So after their success with Californian's Proposition 22, "the companies are in the early stages of taking a similar approach in Massachusetts..." The Coalition to Protect Workers' Rights, an alliance that includes labor advocates and community groups, argued this week that the Massachusetts measure would "permanently create a 'second class' status" for the workers... [T]he proposed Massachusetts ballot initiative presents a minimum earnings guarantee of "120 percent of minimum wage" based on "engaged time," meaning the only time counted is when a driver is fulfilling a ride or delivery request but not the time they spend waiting for a gig. (An analysis from UC Berkeley Labor Center had estimated the pay guarantee under Prop 22 for Uber and Lyft drivers would be equivalent to a wage of $5.64 per hour, instead of $15.60 or 120% of a $13 minimum wage, given such loopholes.) Workers would also receive $0.26 reimbursement per engaged mile to cover vehicle upkeep and gas. (The UC Berkeley Labor Center previously pointed out that Prop 22's $0.30 reimbursement is lower than the IRS' estimated $0.58 per mile cost of owning and operating a vehicle.) While the proposal includes a health care contribution from a company for certain qualifying workers, that too is based on "engaged time" and only a small portion of workers would likely qualify, according to the Coalition to Protect Workers' Rights, due to minimum engaged time requirements...

Some workers could also earn paid sick time, paid family and medical leave, and in lieu of worker's compensation, benefits for medical and disability in cases of on-the-job injuries. Workers would have the ability to appeal if their accounts are deactivated, and would receive training on public safety issues. It would also let gig companies avoid contributions to unemployment or Social Security, and deny app-based workers more robust legal protections around discrimination, including when it comes to compensation.

Lyft, Uber and other members of the coalition, want their proposition included on November 2022 ballots, TechCrunch reports. (Though the question still has to pass a legal review and receive enough signatures from voters.)

But a Boston Globe columnist argues the measure isn't just about gig-working conditions. "It's about the future of work in America." If voters side with the tech giants, the labor landscape will be transformed, immuring a giant and growing body of workers in a world with fewer benefits and protections. And where ride-hailing drivers go, nurses, restaurant workers, executive assistants, programmers, and others will surely follow. The tech giants who rule the world are already dreaming of the day when those workers, too, will be classified as mobile, independent contractors, with fewer benefits and less security than employees. "If they get away with this, every industry is going to line up to ask for an exception," said labor attorney Shannon Liss-Riordan, who has battled the gig companies for years. "And before you know it, the entire fabric of workplace protections will be gone..."

Plenty of people are fine with the fact that that means there will always be a bunch of drivers milling around unpaid and unprotected, waiting for us to summon them. But if blue Massachusetts follows liberal California and approves the formal creation of a second-class workforce, the rest of the country will follow, as will other industries. "This is a question of whether we are going to be a society that recognizes the dignity of work," Liss-Riordan said.

Social Networks

Russia May Be Spreading Vaccine Misinformation to Undermine Efforts to Immunize People (seattletimes.com) 277

The New York Times reports on what's apparently a new Russia-aligned disinformation campaign to "undermine the effort to immunize people" — and more. (Alternate URL here) Both Russia and China have worked to promote their own vaccines through messaging that undermines American and European vaccination programs, according to the State Department's Global Engagement Center. But in addition to overt messaging promoting their own vaccines, Moscow has also spread conspiracy theories. Last year, the department began warning about how Russia was using fringe websites to promote doubts around vaccinations... The aim of various Russian groups continues to be to exacerbate tensions in Western societies, a key foreign policy goal of Moscow, according to American officials briefed on the disinformation efforts...

In recent weeks, the nature of Russian disinformation has also begun to shift, some officials and outside experts said. Recent postings spreading false information have suggested that the Biden administration is intent on mandating that Americans get vaccines that are failing against the coronavirus. The campaign also comes as President Biden warned President Vladimir V. Putin of Russia last month to rein in ransomware attacks emanating out of Russia and aimed at critical American infrastructure. Though the ransomware attacks are separate from the disinformation campaigns, the warning was the latest effort by United States officials to prod Russia to rein in destructive digital incursions... The Biden administration is actively monitoring Russian misinformation and is trying to counter it by encouraging the public to get vaccinated and promoting the safety and efficacy of Western vaccines, according to an administration official who spoke on condition of anonymity to discuss potentially sensitive information...

Much of the disinformation efforts are posted on websites with little to no moderation... Measuring the impact of the disinformation efforts is difficult, given the deep divisions over vaccinations that already exist in the United States and Europe; exploiting splits among Americans is a typical Russian tactic.

Even on the hard-right discussion forums, some users have fingered the cartoons as being Russian in origin, though the postings have continued.

Government

Are the Ultra-Wealthy Renouncing US Citizenship to Avoid Taxes? (axios.com) 168

"In 2017, it emerged that Silicon Valley billionaire Peter Thiel had been able to gain New Zealand citizenship six years earlier," reports the Associated Press, "despite never having lived in the country." Thiel was approved after a top lawmaker decided his entrepreneurial skills and philanthropy were valuable to the nation. Thiel didn't even have to leave California for the ceremony — he was granted citizenship during a private ceremony held at the New Zealand Consulate in Santa Monica.
But he's not the only one, Axios reports. "A lot of people who take this drastic step are tech zillionaires: Eric Schmidt, the former Alphabet CEO, has applied to become a citizen of Cyprus..." The number of Americans who renounced their citizenship in favor of a foreign country hit an all-time high in 2020: 6,707, a 237% increase over 2019... The people who flee tend to be ultra-wealthy, and many of them are seeking to reduce their tax burden...

Only the U.S. and Eritrea tax people based on citizenship rather than residency. For most countries, if you are a citizen but don't reside there, you aren't taxed in that country.

The IRS publishes a quarterly list of the names of people who have renounced their citizenship or given up their green cards... But the Wall Street Journal discovered that the lists aren't up to date: A lot of people who were reported to have renounced citizenship in 2020 actually did so years earlier.

Axios also points out that U.K. prime minister Boris Johnson was actually born in America, but only lived there as a small child, and subsequently renounced his U.S. citizenship.
United States

US Developer's Workstation Exposed State Department's Network Data, Researchers Find (forbes.com) 16

Long-time Slashdot reader chicksdaddy writes: Sensitive systems and data for the U.S. Department of State could have been exposed by a third party development workstation running the eXide software, according to researchers for the hacking crew Sakura Samurai. According to a report in Forbes, the researchers took advantage of a new State Department Vulnerability Disclosure Program to look for security flaws in one of 8 wild-carded State Department domains included in the program. Using automated tools to do reconnaissance on one of the subdomains the State Department had included in its VDP, researcher Jackson Henry discovered a vulnerable workstation running the open source, web based eXide IDE. It was linked to a third party doing work for the State Department and contained a number of serious security holes including Cross Site Scripting (XSS), Remote File Inclusion (RFI), and Server Side Request Forgery (SSRF) flaws. All are powerful weapons in the hands of a sophisticated cyber adversary.

After reporting their findings to the State Department on April 27th, researcher Jackson Henry and Sakura Samurai received acknowledgement of their report on April 29th. The vulnerable endpoint in question was taken offline by the State Department by May 13th. Henry and Sakura Samurai then began working with the State Department on public disclosure of the vulnerabilities, while also communicating with the developers responsible for the open source project to get the flaws fixed, according to communications shared with Forbes.

The discovery of flaws buried in an open source development tool underscores the risks that federal agencies face as more and more government business shifts to the web. "The State Department can't audit every open source package it uses," Henry said. "That's why the VDP is such a big thing (and) a step in the right direction."

It is also an endorsement of the benefits of a quiet security revolution within the federal government in recent months, as agencies have responded to Binding Operational Directive 20-01, a new requirement from the CISA, the Cybersecurity and Infrastructure Security Agency, that Executive Branch agencies publish and maintain public vulnerability disclosure programs, or VDPs — a kind of front door for bug hunters and "white hat" cybersecurity professionals.

Government

The Future of Cryptocurrency Is Being Decided in Biden's Infrastructure Bill (vice.com) 110

Two competing amendments to the Senate's infrastructure bill may shape the future of cryptocurrency in the United States as senators fight over who must be subject to new tax reporting requirements. Motherboard reports: One proposal wants to exempt miners, hardware manufacturers, and developers, putting the focus on centralized cryptocurrency exchanges and trading apps. But the Biden administration has thrown its weight behind another amendment that would grant exemption only to those behind so-called proof-of-work cryptocurrencies such as Bitcoin, but not other networks said to be more environmentally friendly because they don't consume as much electricity to validate transactions.

The infrastructure bill, which promises public spending on major projects like new roads and bridge repairs, wouldn't appear to have anything to do with cryptocurrency. But the Congress figured that "crypto brokers" could be squeezed for $28 billion in taxes over a decade to foot part of the bill. The proposal immediately caused a furor, with crypto influencers prompting their followers to call their senators and industry stakeholders applying pressure. The definition of brokers in the original bill -- any person who (for consideration) is responsible for regularly providing any service effectuating transfers of digital assets on behalf of another person -- was so broad that it meant pretty much anyone that makes a cryptocurrency tick -- node operators, miners, validators, or services that stake digital assets -- would have to report to the I.R.S. the information on their "customers." Cryptocurrencies such as Bitcoin are designed to be non-custodial and pseudonymous, so that requirement would be nearly impossible to satisfy for much of the industry, Olya Veramchuk, director of tax solutions at blockchain firm Lukka, told Motherboard.

On Wednesday, three senators -- Ron Wyden (D., Ore.), Pat Toomey (R., Pa.), and Cynthia Lummis (R., Wyo.) -- put forward an amendment to narrow the definition of a crypto broker down to those who are custodial and actually hold information on their customers, such as cryptocurrency exchanges like Coinbase or trading apps like Robinhood, granting exemption to everyone else. But an amendment proposed by Senators Rob Portman (R. Oh) and Mark Warner (D., Va) on Thursday, favored by the Biden administration, grants an exemption from the tax reporting obligation to only a segment of the crypto industry, resting on a major technical difference in blockchain design between proof-of-network and proof-of-stake. [...] The vote on rival amendments is expected to take place on Saturday.
A proof-of-work model is when a network, such as Bitcoin and Dogecoin, requires miners to take care of the task of validating transactions using huge amounts of electricity for a reward in the form of newly-minted coins. "Others, like Polkadot and Cardano, require 'staking' (hence, proof-of-stake) -- which is a process of pledging funds to the network and getting semi-randomly called to validate transactions," notes Motherboard. "Validators are rewarded with newly-minted coins."
Cloud

PSA: Apple Can't Run CSAM Checks On Devices With iCloud Photos Turned Off (imore.com) 62

An anonymous reader quotes a report from iMore: Apple announced new on-device CSAM detection techniques yesterday and there has been a lot of confusion over what the feature can and cannot do. Contrary to what some people believe, Apple cannot check images when users have iCloud Photos disabled. Apple's confirmation of the new CSAM change did attempt to make this clear, but perhaps didn't make as good a job of it as it could. With millions upon millions of iPhone users around the world, it's to be expected that some could be confused.

"Using another technology called threshold secret sharing, the system ensures the contents of the safety vouchers cannot be interpreted by Apple unless the iCloud Photos account crosses a threshold of known CSAM content," says Apple. "The threshold is set to provide an extremely high level of accuracy and ensures less than a one in one trillion chance per year of incorrectly flagging a given account." The key part there is the iCloud Photos bit because CSAM checks will only be carried out on devices that have that feature enabled. Any device with it disabled will not have its images checked. That's also a fact that MacRumors had confirmed, too. Something else that's been confirmed -- Apple can't delve into iCloud backups and check the images that are stored there, either. That means the only time Apple will run CSAM checks on photos is when it's getting ready to upload them to iCloud Photos.

Electronic Frontier Foundation

Edward Snowden and EFF Slam Apple's Plans To Scan Messages and iCloud Images (macrumors.com) 55

Apple's plans to scan users' iCloud Photos library against a database of child sexual abuse material (CSAM) to look for matches and childrens' messages for explicit content has come under fire from privacy whistleblower Edward Snowden and the Electronic Frontier Foundation (EFF). MacRumors reports: In a series of tweets, the prominent privacy campaigner and whistleblower Edward Snowden highlighted concerns that Apple is rolling out a form of "mass surveillance to the entire world" and setting a precedent that could allow the company to scan for any other arbitrary content in the future. Snowden also noted that Apple has historically been an industry-leader in terms of digital privacy, and even refused to unlock an iPhone owned by Syed Farook, one of the shooters in the December 2015 attacks in San Bernardino, California, despite being ordered to do so by the FBI and a federal judge. Apple opposed the order, noting that it would set a "dangerous precedent."

The EFF, an eminent international non-profit digital rights group, has issued an extensive condemnation of Apple's move to scan users' iCloud libraries and messages, saying that it is extremely "disappointed" that a "champion of end-to-end encryption" is undertaking a "shocking about-face for users who have relied on the company's leadership in privacy and security." The EFF highlighted how various governments around the world have passed laws that demand surveillance and censorship of content on various platforms, including messaging apps, and that Apple's move to scan messages and "iCloud Photos" could be legally required to encompass additional materials or easily be widened. "Make no mistake: this is a decrease in privacy for all "iCloud Photos" users, not an improvement," the EFF cautioned.

Transportation

Infrastructure Bill Could Enable Government To Track Drivers' Travel Data (theintercept.com) 238

Presto Vivace shares a report from The Intercept: The Senate's $1.2 trillion bipartisan infrastructure bill proposes a national test program that would allow the government to collect drivers' data in order to charge them per-mile travel fees. The new revenue would help finance the Highway Trust Fund, which currently depends mostly on fuel taxes to support roads and mass transit across the country. Under the proposal, the government would collect information about the miles that drivers travel from smartphone apps, another on-board device, automakers, insurance companies, gas stations, or other means. For now, the initiative would only be a test effort -- the government would solicit volunteers who drive commercial and passenger vehicles -- but the idea still raises concerns about the government tracking people's private data.

The bill would establish an advisory board to guide the program that would include officials representing state transportation departments and the trucking industry as well as data security and consumer privacy experts. As the four-year pilot initiative goes on, the Transportation and Treasury departments would also have to keep Congress informed of how they maintain volunteers' privacy and how the per-mile fee idea could affect low-income drivers. Still, [Sean Vitka, policy counsel at Demand Progress] said the concept could put Americans' private data at risk. "We already know the government is unable to keep data like this secure, which is another reason why the government maintaining a giant database of travel information about people in the United States is a bad idea."
"If you think this is a bad idea, NOW would be a good time to let your Senators and representative know," says Slashdot reader Presto Vivace.
Privacy

Apple Confirms It Will Begin Scanning iCloud Photos for Child Abuse Images (techcrunch.com) 135

Apple will roll out a technology that will allow the company to detect and report known child sexual abuse material to law enforcement in a way it says will preserve user privacy. From a report: Apple told TechCrunch that the detection of child sexual abuse material (CSAM) is one of several new features aimed at better protecting the children who use its services from online harm, including filters to block potentially sexually explicit photos sent and received through a child's iMessage account. Another feature will intervene when a user tries to search for CSAM-related terms through Siri and Search.

Most cloud services -- Dropbox, Google, and Microsoft to name a few -- already scan user files for content that might violate their terms of service or be potentially illegal, like CSAM. But Apple has long resisted scanning users' files in the cloud by giving users the option to encrypt their data before it ever reaches Apple's iCloud servers. Apple said its new CSAM detection technology -- NeuralHash -- instead works on a user's device, and can identify if a user uploads known child abuse imagery to iCloud without decrypting the images until a threshold is met and a sequence of checks to verify the content are cleared. News of Apple's effort leaked Wednesday when Matthew Green, a cryptography professor at Johns Hopkins University, revealed the existence of the new technology in a series of tweets. The news was met with some resistance from some security experts and privacy advocates, but also users who are accustomed to Apple's approach to security and privacy that most other companies don't have.

Government

The State Department and 3 Other US Agencies Earn a D For Cybersecurity (arstechnica.com) 43

An anonymous reader quotes a report from Ars Technica: Cybersecurity at eight federal agencies is so poor that four of them earned grades of D, three got Cs, and only one received a B in a report issued Tuesday by a US Senate Committee. "It is clear that the data entrusted to these eight key agencies remains at risk," the 47-page report stated. "As hackers, both state-sponsored and otherwise, become increasingly sophisticated and persistent, Congress and the executive branch cannot continue to allow PII and national security secrets to remain vulnerable."

The report, issued by the Senate Committee on Homeland Security and Governmental Affairs, comes two years after a separate report found systemic failures by the same eight federal agencies in complying with federal cybersecurity standards. The earlier report (PDF) found that during the decade spanning 2008 to 2018, the agencies failed to properly protect personally identifiable information, maintain a list of all hardware and software used on agency networks, and install vendor-supplied security patches in a timely manner. The 2019 report also highlighted that the agencies were operating legacy systems that were costly to maintain and hard to secure. All eight agencies -- including the Social Security Administration and the Departments of Homeland Security, State, Transportation, Housing and Urban Development, Agriculture, Health and Human Services, and Education -- failed to protect sensitive information they stored or maintained.

Tuesday's report, titled Federal Cybersecurity: America's Data Still at Risk, analyzed security practices by the same agencies for 2020. It found that only one agency had earned a grade of B for its cybersecurity practices last year. "What this report finds is stark," the authors wrote. "Inspectors general identified many of the same issues that have plagued Federal agencies for more than a decade. Seven agencies made minimal improvements, and only DHS managed to employ an effective cybersecurity regime for 2020. As such, this report finds that these seven Federal agencies still have not met the basic cybersecurity standards necessary to protect America's sensitive data." State Department systems, the auditors found, frequently operated without the required authorizations, ran software (including Microsoft Windows) that was no longer supported, and failed to install security patches in a timely manner. The department's user management system came under particular criticism because officials couldn't provide documentation of user access agreements for 60 percent of sample employees that had access to the department's classified network.
"This network contains data which if disclosed to an unauthorized person could cause 'grave damage' to national security," the auditors write. "Perhaps more troubling, State failed to shut off thousands of accounts after extended periods of inactivity on both its classified and sensitive but unclassified networks. According to the Inspector General, some accounts remained active as long as 152 days after employees quit, retired, or were fired. Former employees or hackers could use those unexpired credentials to gain access to State's sensitive and classified information, while appearing to be an authorized user. The Inspector General warned that without resolving issues in this category, 'the risk of unauthorized access is significantly increased.'"

Ars Technica adds that the Social Security Administration "suffered many of the same shortcomings, including a lack of authorization for many systems, use of unsupported systems, failure to Compile an Accurate and Comprehensive IT Asset Inventory, and Failure to Provide for the Adequate Protection of PII."
Democrats

Senate Democrats To Introduce Legislation That Would Tax Energy Companies Responsible For Major Greenhouse Gas Emissions (thehill.com) 207

Zack Budryk writes via The Hill: The Polluters Pay Climate Fund Act, sponsored by Sen. Chris Van Hollen (D-Md.), would require between 25 to 30 of the U.S. corporations responsible for the most greenhouse gas pollution to pay $300 billion into a fund over 10 years. The legislation would require companies to pay into the fund if they were responsible for at least .05 percent of global carbon dioxide and methane emissions between 2000 and 2019 based on data from the Treasury Department and Environmental Protection Agency. In a document shared with The Hill, Van Hollen's office estimated major companies such as Shell, ExxonMobil and Chevron would be taxed $5 billion to $6 billion annually under the bill. The Democratic senator pointed to other policies that could accompany the measure, such as carbon pricing and a clean-energy standard.

The exact uses of the money in the fund have not yet been determined, Van Hollen said, adding there would be a public comment period. Possible uses include building more climate-resilient infrastructure, particularly in disadvantaged communities and communities of color. [...] After years of opposition, major institutions and trade groups like the American Petroleum Institute and the U.S. Chamber of Commerce have come out in favor of a tax on carbon emissions in recent months. However, Van Hollen's proposal would go further than that, specifically targeting major players like Exxon Mobil and Chevron.
Further reading: Democrats Seek $500 Billion in Climate Damages From Big Polluting Companies (The New York Times)
Bitcoin

The IRS Has Seized $1.2 Billion Worth of Cryptocurrency This Fiscal Year (cnbc.com) 76

The U.S. government regularly holds auctions for its stockpile of bitcoin, ethereum, litecoin and other cryptocurrencies it seizes and then holds in crypto wallets. "In fiscal year 2019, we had about $700,000 worth of crypto seizures. In 2020, it was up to $137 million. And so far in 2021, we're at $1.2 billion," said Jarod Koopman, director of the IRS' cybercrime unit. CNBC reports: As cybercrime picks up -- and the haul of digital tokens along with it -- government crypto coffers are expected to swell even further. Interviews with current and former federal agents and prosecutors suggest the U.S. has no plans to step back from its side hustle as a crypto broker. The crypto seizure and sale operation is growing so fast that the government just enlisted the help of the private sector to manage the storage and sales of its hoard of crypto tokens.
[...]
Once a case is closed and the crypto has been exchanged for fiat currency, the feds then divvy the spoils. The proceeds of the sale are typically deposited into one of two funds: The Treasury Forfeiture Fund or the Department of Justice Assets Forfeiture Fund. "The underlying investigative agency determines which fund the money goes to," said [Sharon Cohen Levin, who worked on the first Silk Road prosecution and spent 20 years as chief of the money laundering and asset forfeiture unit in the U.S. Attorney's Office for the Southern District of New York]. Koopman said the crypto traced and seized by his team accounts for roughly 60% to 70% of the Treasury Forfeiture Fund, making it the largest individual contributor.

Once placed into one of these two funds, the liquidated crypto can then be put toward a variety of line items. Congress, for example, can rescind the money and put that cash toward funding projects. "Agencies can put in requests to gain access to some of that money for funding of operations," said Koopman. "We're able to put in a request and say, "We're looking for additional licenses or additional gear,' and then that's reviewed by the Executive Office of Treasury." Some years, Koopman's team receives varying amounts based on the initiatives proposed. Other years, they get nothing because Congress will choose to rescind all the money out of the account.

Privacy

Google+ Class Action Starts Paying Out $2.15 For G+ Privacy Violations (arstechnica.com) 15

Ron Amadeo writing via Ars Technica: Who remembers the sudden and dramatic death of Google+? Google's Facebook competitor and "social backbone" was effectively dead inside the company around 2014, but Google let the failed service hang around for years in maintenance mode while the company spun off standalone products. In 2018, The Wall Street Journal reported that Google+ had exposed the private data of "hundreds of thousands of users" for years, that Google knew about the problem, and that the company opted not to disclose the data leak for fear of regulatory scrutiny. In the wake of the report, Google was forced to acknowledge the data leak, and the company admitted that the "private" data of 500,000 accounts actually wasn't private. Since nobody worked on Google+ anymore, Google's "fix" for the bug was to close Google+ entirely. Then the lawsuits started.

Today's class-action lawsuit, Matt Matic and Zak Harris v. Google, was filed in October 2018 and blames Google's "lax approach to data security" for the bugs. The complaint added, "Worse, after discovery of this vulnerability in the Google+ platform, Defendants kept silent for at least seven months, making a calculated decision not to inform users that their Personal Information was compromised, further compromising the privacy of consumers' information and exposing them to risk of identity theft or worse." The case website with full details is at googleplusdatalitigation.com. The case was settled in June 2020, with Google agreeing to pay out $7.5 million. After losing about half of that money to legal and administrative fees, and with 1,720,029 people filling out the right forms by the October 2020 deadline, the payout for each person is a whopping $2.15.

Bitcoin

SEC Chair Calls On Congress To Help Rein In Crypto 'Wild West' (reuters.com) 63

The chair of the U.S. Securities and Exchange Commission (SEC) on Tuesday called on Congress to give the agency more authority to better police cryptocurrency trading, lending and platforms, a "Wild West" he said is riddled with fraud and investor risk. Reuters reports: Gary Gensler said the crypto market involves many tokens which may be unregistered securities and leaves prices open to manipulation and millions of investors vulnerable to risks. "This asset class is rife with fraud, scams and abuse in certain applications," Gensler told a global conference. "We need additional Congressional authorities to prevent transactions, products and platforms from falling between regulatory cracks."

The industry has been waiting with bated breath to see how Gensler, a Democratic appointee who took the SEC helm in April, will approach oversight of the market, which he has previously said should be brought within traditional financial regulation. On Tuesday, Gensler provided more insight on his thinking, saying he would like Congress to give the SEC the power to oversee cryptocurrency exchanges, which are not currently within the SEC's remit. He also called on lawmakers to give the SEC more power to oversee crypto lending, and platforms like peer-to-peer decentralized finance (DeFi) sites that allow lenders and borrowers to transact in cryptocurrencies without traditional banks. "If we don't address these issues, I worry a lot of people will be hurt."

Privacy

Pegasus Spyware Found On Journalists' Phones, French Intelligence Confirms (theguardian.com) 50

French intelligence investigators have confirmed that Pegasus spyware has been found on the phones of three journalists, including a senior member of staff at the country's international television station France 24. Pegasus is the hacking software -- or spyware -- that is developed, marketed and licensed to governments around the world by NSO Group. The malware has the capability to infect billions of phones running either iOS or Android operating systems. It enables operators of the spyware to extract messages, photos and emails, record calls and secretly activate microphones. The Guardian reports: It is the first time an independent and official authority has corroborated the findings of an international investigation by the Pegasus project -- a consortium of 17 media outlets, including the Guardian. Forbidden Stories, a Paris-based nonprofit media organization, and Amnesty International initially had access to a leaked list of 50,000 numbers that, it is believed, have been identified as those of people of interest by clients of Israeli firm NSO Group since 2016, and shared access with their media partners.

France's national agency for information systems security (Anssi) identified digital traces of NSO Group's hacking spyware on the television journalist's phone and relayed its findings to the Paris public prosecutor's office, which is overseeing the investigation into possible hacking. Anssi also found Pegasus on telephones belonging to Lenaig Bredoux, an investigative journalist at the French investigative website Mediapart, and the site's director, Edwy Plenel. Forbidden Stories believes at least 180 journalists worldwide may have been selected as people of interest in advance of possible surveillance by government clients of NSO.

Le Monde reported that the France 24 journalist, based in Paris, had been selected for "eventually putting under surveillance." Police experts discovered the spyware had been used to target the journalist's phone three times: in May 2019, September 2020 and January 2021, the paper said. Bredoux told the Guardian that investigators had found traces of Pegasus spyware on both her and Plenel's mobile phones. She said the confirmation of long-held suspicions that they had been targeted contradicted the repeated denials of those who were believed to be behind the attempt to spy on them.

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