An Ohio IT contractor pleaded guilty to breaking into his former employer's network after being fired, impersonating another worker and using a PowerShell script to reset 2,500 passwords -- an act that locked out thousands of employees and caused more than $862,000 in damage. He faces up to 10 years in prison. The Register reports: Maxwell Schultz, 35, impersonated another contractor to gain access to the company's network after his credentials were revoked. Announcing the news, US attorney Nicholas J. Ganjei did not specify the company in question, which is typical in these malicious insider cases, although local media reported it to be Houston-based Waste Management.

The attack took place on May 14, 2021, and saw Schultz use the credentials to reset approximately 2,500 passwords at the affected organization. This meant thousands of employees and contractors across the US were unable to access the company network. Schultz admitted to running a PowerShell script to reset the passwords, searching for ways to delete system logs to cover his tracks -- in some cases succeeding -- and clearing PowerShell window events, according to the Department of Justice.

Prosecutors said the attack caused more than $862,000 worth of damage related to employee downtime, a disrupted customer service function, and costs related to the remediation of the intrusion. Schultz is set to be sentenced on Jan 30, 2026, and faces up to ten years in prison and a potential maximum fine of $250,000.

An anonymous reader quotes a report from Politico: The White House is preparing to issue an executive order as soon as Friday that tells the Department of Justice and other federal agencies to prevent states from regulating artificial intelligence, according to four people familiar with the matter and a leaked draft of the order obtained by POLITICO. The draft document, confirmed as authentic by three people familiar with the matter, would create an "AI Litigation Task Force" at the DOJ whose "sole responsibility" would be to challenge state AI laws.

Government lawyers would be directed to challenge state laws on the grounds that they unconstitutionally regulate interstate commerce, are preempted by existing federal regulations or otherwise at the attorney general's discretion. The task force would consult with administration officials, including the special adviser for AI and crypto -- a role currently occupied by tech investor David Sacks.

The executive order, in the draft obtained by POLITICO, would also empower Commerce Secretary Howard Lutnick to publish a review of "onerous" state AI laws within 90 days and restrict federal broadband funds to states whose AI laws are found to be objectionable. It would direct the Federal Trade Commission to investigate whether state AI laws that "require alterations to the truthful outputs of AI models" are blocked by the FTC Act. And it would order the Federal Communications Commission to begin work on a reporting and disclosure standard for AI models that would preempt conflicting state laws.

Canadian librarian Ian Linkletter has ended a five-year legal battle with ed-tech firm Proctorio after being sued for sharing public YouTube help videos that exposed how the company's remote-proctoring AI works. Ars Technica reports: ... Together, the videos, the help center screenshot, and another screenshot showing course material describing how Proctorio works were enough for Proctorio to take Linkletter to court. The ed tech company promptly filed a lawsuit and obtained a temporary injunction by spuriously claiming that Linkletter shared private YouTube videos containing confidential information. Because the YouTube videos -- which were public but "unlisted" when Linkletter shared them -- had been removed, Linkletter did not have to delete the seven tweets that initially caught Proctorio's attention, but the injunction required that he remove two tweets, including the screenshots.

In the five years since, the legal fight dragged on, with no end in sight until last week, as Canadian courts tangled with copyright allegations that tested a recently passed law intended to shield Canadian rights to free expression, the Protection of Public Participation Act. To fund his defense, Linkletter said in a blog announcing the settlement that he invested his life savings "ten times over." Additionally, about 900 GoFundMe supporters and thousands of members of the Association of Administrative and Professional Staff at UBC contributed tens of thousands more. For the last year of the battle, a law firm, Norton Rose Fulbright, agreed to represent him on a pro bono basis, which Linkletter said âoewas a huge relief to me, as it meant I could defend myself all the way if Proctorio chose to proceed with the litigation."

The terms of the settlement remain confidential, but both Linkletter and Proctorio confirmed that no money was exchanged. For Proctorio, the settlement made permanent the injunction that restricted Linkletter from posting the company's help center or instructional materials. But it doesn't stop Linkletter from remaining the company's biggest critic, as "there are no other restrictions on my freedom of expression," Linkletter's blog noted. "I've won my life back!" Linkletter wrote, while reassuring his supporters that he's "fine" with how things ended. "It doesn't take much imagination to understand why Proctorio is a nightmare for students," Linkletter wrote. "I can say everything that matters about Proctorio using public information."