Bitcoin

New York's Attorney General Is Investigating Bitcoin Exchanges (theverge.com) 42

The office of New York Attorney General Eric Schneiderman announced today that it has launched an investigation into bitcoin exchanges. He's reportedly looking into thirteen major exchanges, including Coinbase, Gemini Trust, and Bitfinex, requesting information on their operations and what measures they have in place to protect consumers. The Verge reports: "Too often, consumers don't have the basic facts they need to assess the fairness, integrity, and security of these trading platforms," Schneiderman said in a statement. His office sent detailed questionnaires to the thirteen exchanges, asking them to disclose who owns and controls them, and how their basic operation and transaction fees work. The questionnaire also asks for specific details on how exchanges might suspend trading or delay orders, indicating Schneiderman is particularly concerned with exchanges manipulating the timing of public orders. The investigation will attempt to shed more transparency on how platforms combat market manipulation attempts and suspicious trading, as well as bots, theft, and fraud. Many of the exchanges Schneiderman is targeting, such as Beijing-based Huobi, have headquarters located outside the U.S., but the attorney general has jurisdiction over any foreign business operating in New York. Coin Center's director of research Peter Van Valkenburgh tells The Verge that the new investigation might be overkill, given the existing rules already in place for bitcoin exchanges. "Far from being unregulated," he says, "these businesses must contend with state money transmission licensing laws, federal anti-money laundering law, CFTC scrutiny for commodities spot market manipulation, SEC scrutiny for securities trading (should any tokens traded be securities), and in this case, state consumer protection investigations from the several attorneys general."
United States

Online Tax Filers Will Get Extension After IRS Payment Website Outage (cnbc.com) 39

An anonymous reader quotes a report from CNBC: The IRS will give last-minute filers additional time to file their tax returns after the page for paying their tax bills using their bank accounts crashed, Treasury Secretary Steven Mnuchin told the Associated Press. The IRS "Direct Pay" page allows filers to transfer funds from their checking or savings account to pay what they owe. As of 5 p.m. ET on April 17 -- Tax Day -- the page was still unavailable. Direct Pay is a free service. The "Payment Plan" page, where filers can pay their tax bill in installments also appears to have crashed. "I'd strongly advise folks who owe any federal taxes and cannot pay online to mail a check or money order to the IRS to the appropriate address," said Patrick Thomas, director of Notre Dame Law School's Tax Clinic. According to a TurboTax spokesperson, the IRS's technical difficulties are affecting all tax preparers and tax returns. "Taxpayers should go ahead and continue to prepare and file their taxes as normal with TurboTax," the spokesperson said. "TurboTax has uninterrupted service and is available and accepting e-filed returns," she said. "We will hold returns until the IRS is ready to begin accepting them again." H&R Block said it will continue to accept returns from filers.
Facebook

Former Cambridge Analytica Employee Says Facebook Users Affected Could Be 'Much Greater Than 87 million' (theverge.com) 45

Cambridge Analytica and its partners used data from previously unknown "Facebook-connected questionnaires" to obtain user data from the social media service, according to testimony from a former Cambridge Analytica employee. From a report: Brittany Kaiser provided evidence to the British Parliament today as part of a hearing on fake news. Kaiser, who worked on the business team at Cambridge Analytica's parent company until January of this year, wrote in a statement that she was "aware in a general sense of a wide range of surveys" used by Cambridge Analytica or its partners, and she said she believes the number of people whose Facebook data may have been compromised is likely higher than the widely reported 87 million.
Government

IRS 'Direct Pay' Option Not Working on Tax Day (cbsnews.com) 138

An anonymous reader shares a report: Online payments on IRS.gov are partially down. But the government still expects its money. A page on the IRS website that allows taxpayers to make a payment is not working for many as of Tuesday morning. Clicking on "Make a payment" on the payments page redirects the user to a page titled "unplannedOutagePage. Note that your tax payment is due although IRS Direct Pay may not be available," the page notes. UPDATE 04/17/18: Treasury Secretary Steven Mnuchin told the Associated Press that online tax filers will get an extension due to today's website outage.
Businesses

Cybersecurity Tech Accord: More Than 30 Tech Firms Pledge Not to Assist Governments in Cyberattacks (cybertechaccord.org) 67

Over 30 major technology companies, led by Microsoft and Facebook, on Tuesday announced what they are calling the Cybersecurity Tech Accord, a set of principles that include a declaration that they will not help any government -- including that of the United States -- mount cyberattacks against "innocent civilians and enterprises from anywhere."

The companies that are participating in the initiative are: ABB, Arm, Avast, Bitdefender, BT, CA Technologies, Cisco, Cloudflare, DataStax, Dell, DocuSign, Facebook, Fastly, FireEye, F-Secure, GitHub, Guardtime, HP Inc., HPE, Intuit, Juniper Networks, LinkedIn, Microsoft, Nielsen, Nokia, Oracle, RSA, SAP, Stripe, Symantec, Telefonica, Tenable, Trend Micro, and VMware.

The announcement comes at the backdrop of a growing momentum in political and industry circles to create a sort of Digital Geneva Convention that commits the entire tech industry and governments to supporting a free and secure internet. The effort comes after attacks such as WannaCry and NotPetya hobbled businesses around the world last year, and just a day after the U.S. and U.K. issued an unprecedented joint alert citing the threat of cyberattacks from Russian state-sponsored actors. The Pentagon has said Russian "trolling" activity increased 2,000 percent after missile strikes in Syria.

Interestingly, Amazon, Apple, Google, and Twitter are not participating in the program, though the Tech Accord says it "remains open to consideration of new private sector signatories, large or small and regardless of sector."
Canada

19-Year-Old Archivist Charged For Downloading Freedom-of-Information Releases (www.cbc.ca) 421

Ichijo writes: According to CBC News, a Canadian teen "has been charged with 'unauthorized use of a computer,' which carries a possible 10-year prison sentence, for downloading approximately 7,000 freedom-of-information releases. The provincial government says about 250 of those contain Nova Scotians' sensitive personal information."

"When he was around eight [...] his Grade 3 class adopted an animal at a shelter, receiving an electronic adoption certificate," reports CBC. "That lead to a discovery on the classroom computer. 'The website had a number at the end, and I was able to change the last digit of the number to a different number and was able to see a certificate for someone else's animal that they adopted,' he said. 'I thought that was interesting.' The teenager's current troubles arose because he used the same trick on Nova Scotia's freedom-of-information portal, downloading about 7,000 freedom-of-information requests."
The teen is estimated to have around 30 terabytes of online data on his hard drives, which equates to "millions" of webpages. "He usually copies online forums such as 4chan and Reddit, where posts are either quickly erased or can become difficult to locate."
The Courts

Supreme Court Set To Hear Landmark Online Sales Tax Case (gizmodo.com) 246

An anonymous reader quotes a report from Gizmodo: On Tuesday, the U.S. Supreme Court will hear arguments in a case that could at least somewhat clarify Donald Trump's complaints about Amazon "not paying internet taxes." It will also decide if those cheap deals on NewEgg are going to be less of a steal. The case concerns the state of South Dakota versus online retailers Wayfront, NewEgg, and Overstock.com in a battle over whether or not state sales tax should apply to all online transactions in the U.S., regardless of where the customer or retailer is located. It promises to have an impact on the internet's competition with brick-and-mortar retailers, as well as continue to address the ongoing legal questions surrounding real-world borders in the borderless world of online.
United States

Facebook Must Face Class-Action Lawsuit Over Facial Recognition, Says Judge (kfgo.com) 79

U.S. District Judge James Donato ruled on Monday that Facebook must face a class-action lawsuit alleging that the social network unlawfully used a facial recognition process on photos without user permission. Donato ruled that a class-action was the most efficient way to resolve the dispute over facial templates. KFGO reports: Facebook said it was reviewing the ruling. "We continue to believe the case has no merit and will defend ourselves vigorously," the company said in a statement. Lawyers for the plaintiffs could not immediately be reached for comment. Facebook users sued in 2015, alleging violations of an Illinois state law about the privacy of biometric information. The class will consist of Facebook users in Illinois for whom Facebook created and stored facial recognition algorithms after June 7, 2011, Donato ruled. That is the date when Facebook launched "Tag Suggestions," a feature that suggests people to tag after a Facebook user uploads a photo. In the U.S. court system, certification of a class is typically a major hurdle that plaintiffs in proposed class actions need to overcome before reaching a possible settlement or trial.
Businesses

New Child Protection Nonprofit Strikes Back At Sex-Negative Approach of FOSTA-SESTA (youcaring.com) 212

qirtaiba writes: When the FOSTA-SESTA online sex trafficking bill passed last month, it sailed through Congress because there were no child protection organizations that stood against it, and because no member of Congress (with the brave exceptions of Ron Wyden and Rand Paul) wanted to face re-election having opposed a bill against sex trafficking, despite its manifest flaws. In the wake of the law's passage, its real targets -- not child sex traffickers, but adult sex workers and the internet platforms used by them -- have borne the brunt of its effects. Websites like the Erotic Review and Craigslist's personals section have either shut down entirely or for U.S. users, while Backpage.com has been seized, leaving many adult sex workers in physical and financial peril.

A new child protection organization, Prostasia Foundation, has just been announced, with the aim of taking a more sex-positive approach that would allow it to push back against laws that really target porn or sex work under the guise of being child protection laws. Instead, the organization promotes a research-based approach to the prevention of child sexual abuse before it happens. From the organization's press release: "Prostasia Director Jaylen MacLaren is a former child prostitute who used a website like this to screen her clients. She now recognizes those clients as abusers, but she does not blame the website for her suffering. 'I am committed to preventing child sexual abuse, but I don't believe that this should come at the cost of civil liberties and sexual freedom,' Jaylen said. 'I have found ways to express my sexuality in consensual and cathartic ways.'" Nerea Vega Lucio, a member of the group's Advisory Council, said, 'Child protection laws need to be informed by accurate and impartial research, and ensuring that policy makers have access to such research will be a top priority for Prostasia.'"

Businesses

California Bill Would Restore, Strengthen Net Neutrality Protections (mercurynews.com) 83

An anonymous reader quotes a report from The Mercury News: With the FCC order to repeal net neutrality rules set to take effect next week, a bill that would restore those regulations in California will get its first hearing Tuesday (Warning: source may be paywalled; alternative source). SB 822, written by State Sen. Scott D. Wiener, D-San Francisco, is backed by big names including Tom Wheeler, the Obama-appointed former Federal Communications Commission chairman who wrote the 2015 Open Internet Order. Wheeler is joined by former FCC commissioners Michael Copps and Gloria Tristani in advocating for SB 822, which would in some ways be stronger than the net neutrality rules put in place under President Obama's administration after more than a decade of legal and political wrangling. Those rules required equal treatment of all internet traffic, and prohibited the establishment of internet slow and fast lanes. Wiener's bill would also prohibit "zero rating," in which internet providers exempt certain content, sites and services from data caps. In addition, it would prohibit public agencies in the state from signing contracts with ISPs that violate net neutrality principles, and call for internet service providers to be transparent about their practices and offerings.
United Kingdom

State-Sponsored Russian Hackers Actively Seeking To Hijack Essential Internet Hardware, US and UK Intelligence Agencies Say (bbc.com) 170

State-sponsored Russian hackers are actively seeking to hijack essential internet hardware, US and UK intelligence agencies say. BBC reports: The UK's National Cyber Security Centre (NCSC), the FBI and the US Department of Homeland Security issued a joint alert warning of a global campaign. The alert details methods used to take over essential network hardware. The attacks could be an attempt by Russia to gain a foothold for use in a future offensive, it said. "Russia is our most capable hostile adversary in cyber-space, so dealing with their attacks is a major priority for the National Cyber Security Centre and our US allies," said Ciaran Martin, head of the NCSC in a statement. The alert said attacks were aimed at routers and switches that directed traffic around the net. Compromised devices were used to look at data passing through them, so Russia could scoop up valuable intellectual property, business information and other intelligence.
Robotics

Europe Divided Over Robot 'Personhood' (politico.eu) 246

Politico Europe has an interesting piece which looks at the high-stakes debate between European lawmakers, legal experts and manufacturers over who should bear the ultimate responsibility for the actions by a machine: the machine itself or the humans who made them?. Two excerpts from the piece: The battle goes back to a paragraph of text, buried deep in a European Parliament report from early 2017, which suggests that self-learning robots could be granted "electronic personalities." Such a status could allow robots to be insured individually and be held liable for damages if they go rogue and start hurting people or damaging property.

Those pushing for such a legal change, including some manufacturers and their affiliates, say the proposal is common sense. Legal personhood would not make robots virtual people who can get married and benefit from human rights, they say; it would merely put them on par with corporations, which already have status as "legal persons," and are treated as such by courts around the world.

Encryption

Former FBI Director James Comey Reveals How Apple and Google's Encryption Efforts Drove Him 'Crazy' (fastcompany.com) 351

An anonymous reader shares a report: In his explosive new book, A Higher Loyalty, fired FBI director James Comey denounces President Trump as "untethered to the truth" and likens him to a "mob boss," but he also touches on other topics during his decades-long career in law enforcement -- including his strong objection to the tech industry's encryption efforts. When Apple and Google announced in 2014 that they would be moving their mobile devices to default encryption, by emphasizing that making them immune to judicial orders was good for society, "it drove me crazy," he writes. He goes on to lament the lack of "true listening" between tech and law enforcement, saying that "the leaders of the tech companies don't see the darkness the FBI sees," such as terrorism and organized crime.

He writes, "I found it appalling that the tech types couldn't see this. I would frequently joke with the FBI 'Going Dark' team assigned to seek solutions, 'Of course the Silicon Valley types don't see the darkness -- they live where it's sunny all the time and everybody is rich and smart." But Comey understood it was an unbelievably difficult issue and that public safety had to be balanced with privacy concerns.

Encryption

Lawmakers Call FBI's 'Going Dark' Narrative 'Highly Questionable' After Motherboard Shows Cops Can Easily Hack iPhones (vice.com) 69

Joseph Cox, reporting for Motherboard: This week, Motherboard showed that law enforcement agencies across the country, including a part of the State Department, have bought GrayKey, a relatively cheap technology that can unlock fully up-to-date iPhones. That revelation, cryptographers and technologists said, undermined the FBI's renewed push for backdoors in consumer encryption products. Citing Motherboard's work, on Friday US lawmakers sent a letter to FBI Director Christopher Wray, doubting the FBI's narrative around 'going dark', where law enforcement officials say they are increasingly unable to obtain evidence related to crimes due to encryption. Politico was first to report the letter. "According to your testimony and public statements, the FBI encountered 7,800 devices last year that it could not access due to encryption," the letter, signed by 5 Democrat and 5 Republican n House lawmakers, reads. "However, in light of the availability of unlocking tools developed by third-parties and the OIG report's findings that the Bureau was uninterested in seeking available third-party options, these statistics appear highly questionable," it adds, referring to a recent report from the Justice Department's Office of the Inspector General. That report found the FBI barely explored its technical options for accessing the San Bernardino iPhone before trying to compel Apple to unlock the device. The lawmaker's letter points to Motherboard's report that the State Department spent around $15,000 on a GrayKey.
Social Networks

Is It Time To Stop Using Social Media? (counterpunch.org) 291

Slashdot reader Nicola Hahn writes: Bulk data collection isn't the work of a couple of bad apples. Corporate social media is largely predicated on stockpiling and mining user information. As Zuckerberg explained to lawmakers, it's their business model...

While Zuckerberg has offered public apologias, spurring genuine regulation will probably be left to the public. Having said that, confronting an economic sector which makes up one of the country's largest political lobbying blocks might not be a tenable path in the short term.

The best immediate option for netizens may be to opt out of social media entirely.

The original submission links to this call-to-action from Counterpunch: Take personal responsibility for your own social life. Go back to engaging flesh and blood people without tech companies serving as an intermediary. Eschew the narcissistic impulse to broadcast the excruciating minutiae of your life to the world. Refuse to accept the mandate that you must participate in social media in order to participate in society. Reclaim your autonomy.
Government

Investor Tim Draper Pushes Ballot Measure Splitting California Into 3 States (sfgate.com) 421

"One of several proposals aiming to split California into multiple smaller states has reportedly reached an important new goal thanks in large part to the efforts of its billionaire champion," writes schwit1. SFGate reports: Venture capitalist Tim Draper, who previously pushed a proposal that would split California into six states, says that his three-state proposal has enough signatures to qualify for the November ballot. On Thursday, Draper said in a statement that the "CAL 3" initiative has collected over 600,000 signatures from Californians who would like to see the state split into three. An initiative needs 366,000 signatures to appear on the ballot. "This is an unprecedented show of support on behalf of every corner of California to create three state governments that emphasize representation, responsiveness, reliability and regional identity," Draper said.
The U.S. Congress would still need to approve the change -- and it's probably useful to remember what happened when Draper tried splitting California into six states. He ultimately turned in 1.3 million signatures for a ballot measure in 2014, "only to see nearly half of them disqualified.

"He ended up about 100,000 short of the valid signatures he needed."
Yahoo!

Yahoo's New Privacy Policy Allows Data-Sharing With Verizon (cnet.com) 38

"Yahoo is now part of Oath and there is a new Privacy and Terms contract..." warns long-time Slashdot reader DigitalLogic. CNET reports: Oath notes that it has the right to read your emails, instant messages, posts, photos and even look at your message attachments. And it might share that data with parent company Verizon, too... When you dig further into Oath's policy about what it might do with your words, photos, and attachments, the company clarifies that it's utilizing automated systems that help the company with security, research and providing targeted ads -- and that those automated systems should strip out personally identifying information before letting any humans look at your data. But there are no explicit guarantees on that.
The update also warns that Oath is now "linking your activity on other sites and apps with information we have about you, and providing anonymized and/or aggregated reports to other parties regarding user trends." For example, Oath "may analyze user content around certain interactions with financial institutions," and "leverages information financial institutions are allowed to send over email."

Oath does offer a "Privacy Controls" page which includes a "legacy" AOL link letting you opt-out of internet-based advertising that's been targeted "based on your online activities" -- but it appears to be functioning sporadically.

CNET also reports that now Yahoo users are agreeing to a class-action waiver and mutual arbitration. "What it means is if you don't like what the company does with your data, you'll have a hard time suing."
Crime

Jailed Kansas 'Swat' Perpetrator Sneaks Online, Threatens More 'Swats' (kansas.com) 285

An anonymous reader quotes the Wichita Eagle: Tyler Barriss -- the man charged in a swatting hoax that led to the death of an innocent Wichita man -- apparently got access to the internet from jail for at least 28 minutes [last] Friday and threatened to swat again. "How am I on the Internet if I'm in jail? Oh, because I'm an eGod, that's how," a tweet posted at 9:05 a.m. said.
Other developments in the case:
  • Another tweet from the Barriss account 19 minutes later asked who was "talking shit," warning "your ass is about to get swatted." And nine minutes later his final tweet from jail bragged, "Y'all should see how much swag I got in here." The county sheriff's office blamed an outside vendor's improper software upgrade to an inmate kiosk, arguing that 14 inmates potentially had full internet access "for less than a few hours."
  • 25-year-old Barris is still in jail facing an 11-year prison sentence, noted a Twitter user who responded to the tweets. "This will play well at sentencing when you're pretending to be remorseful and asking the judge for mercy."
  • Meanwhile, the Wichita police officer who mistakenly fired the fatal shot that killed a 28-year-old father of two will not face charges. The district attorney concluded that several of the officers closest to victim Andrew Finch thought he reached down to pull up his pants, leaving his right arm hidden from the officers, the Wichita Eagle reports. "The officer who fired the shot, along with some others, thought Finch was reaching for a gun."
  • "This shooting should not have happened," said the district attorney. "But this officer's decision was made in the context of the false call." Finch was shot 10 seconds after opening his front door, and his family's civil case against the police department is still going forward.
  • Two other gamers involved in the shooting -- including one who allegedly hired Barriss over a $1.50 bet in the game Call of Duty -- have not been charged with a crime.

China

Trade War Or Not, China is Closing the Gap on US in Technology IP Race (reuters.com) 149

China's rising investment in research and expansion of its higher education system mean that it is fast closing the gap with the United States in intellectual property and the struggle to be the No.1 global technology power, according to patent experts. From a report: While U.S. President Donald Trump's threat of punitive tariffs on high-tech U.S. exports could slow Beijing's momentum, it won't turn back the tide, they say. Washington's allegation that the Chinese have engaged in intellectual property theft over many years -- which is denied by Beijing -- is a central reason for the worsening trade conflict between the U.S. and China. Forecasts for how long it will take for Beijing to close the technological gap vary -- though several patent specialists say it could happen in the next decade.

And China is already leapfrogging ahead in a couple of areas. "With the number of scientists China is training every year it will eventually catch up, regardless of what the U.S. does," said David Shen, head of IP for China at global law firm Allen & Overy. Indeed, IP lawyers now see President Xi Jinping's pledge earlier this week to protect foreign IP rights as projecting confidence in China's position as a leading innovator in sectors such as telecommunications and online payments, as well as its ability to catch up in other areas.

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