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Bitcoin

FTX Scraps Plans To Revive Exchange, Will Repay Billions To Customers (theguardian.com) 24

A lawyer for FTX said the defunct crypto exchange has abandoned its plans to relaunch, instead opting to liquidate all assets and return funds to customers. The Guardian reports: The exchange, founded by Sam Bankman-Fried, has been negotiating for months with potential bidders and investors, but none were willing to put in enough money to rebuild it, FTX attorney Andy Dietderich said at a bankruptcy court hearing in Delaware. The failed negotiations underscored the fact that FTX was never what it appeared to be, and that Bankman-Fried never built the underlying technology or administration necessary to run the company as a viable business, Dietderich said.

Bankman-Fried has been convicted on fraud charges related to his operation of FTX. He faces decades in prison. "FTX was an irresponsible sham created by a convicted felon," Dietderich said. "The costs and risks of creating a viable exchange from what Mr Bankman-Fried left in a dumpster were simply too high." The company will instead focus on liquidating its assets to repay customers whose cryptocurrency deposits were locked when the company filed for bankruptcy in November 2022. FTX has recovered over $7 billion in assets to repay customers, and it has reached agreements with government regulators who have agreed to wait until customers are fully repaid before attempting to collect on about $9 billion in claims, Dietderich said.
While FTX plans to repay its customers, the exchange will calculate their repayment based on cryptocurrency prices from November 2022, when the crypto market was suffering a prolonged slump. "The price of bitcoin has risen to about $43,300 from its November 2022 price of $16,872," notes the report.
Transportation

Cruise Faces Long Road Back To City Streets in Wake of Safety Review (reuters.com) 23

General Motors' Cruise self-driving car unit faces a trip that could last the better part of this year to convince regulators and a wary public that its robotaxis are fit to share the road with human drivers, industry officials said. From a report: After releasing a withering safety report last week that Cruise commissioned, GM said on Tuesday it slashed about $1 billion from Cruise's annual budget and promised to "soon" release a timeline for the unit's return to operations. The U.S. automaker also delayed indefinitely a March update when it was expected to lay out plans.

That has raised questions about when Cruise might get its vehicles back on the road, particularly as it faces various government probes including from the National Highway Traffic Safety Administration. "Investigating defects is a highly deliberative process," said Mark Rosekind, a former NHTSA chief who has also worked for Amazon.com's Zoox autonomous vehicle unit. "It would be months, easily, and for bigger problems up to a year or more to resolve an investigation."

Bitcoin

German Police Secure $2 Billion In Bitcoin From Pirate Site Operators (torrentfreak.com) 42

An anonymous reader quotes a report from TorrentFreak: With help from the FBI, German police managed to secure nearly 50,000 bitcoin (USD $2 billion) from the operators of the defunct movie streaming portal, Movie2k. [...] Movie2K was another pirate site that showed an early interest in bitcoin. In its heyday, the site was the dominant pirate streaming portal in German-speaking countries. It generated a healthy revenue stream, part of it held in bitcoin. The operator of the site never got to spend most of it though. The site surprisingly shut down in the spring of 2013. Many suspected that legal troubles had plagued the site, something confirmed years later when Dresden police announced several arrests.

It was rare to see new activity in an already-dated dossier, but the biggest surprise followed later when the police announced that $29.7m in bitcoin had been secured from the site's operators. This 'seizure' was one of the largest of its kind but the authorities estimated that the operators had more bitcoin stashed away, much more. Today, new information released by Dresden police shows that the assumption was correct.

Following an investigation carried out by the Dresden General Prosecutor's Office, the Saxony State Criminal Police, and the local tax authority (INES), nearly 50,000 bitcoin were 'provisionally' secured earlier this month. The haul is worth more than $2 billion at today's exchange rate. Never before has this much bitcoin been secured by German authorities; it's also one of the largest crypto hauls worldwide. "The Bitcoins were seized after the accused voluntarily transferred them to official wallets provided by the [Federal Criminal Police Office]. This means that a final decision has not yet been made about the utilization of the Bitcoins," police write.

The Internet

Apple Says UK Could 'Secretly Veto' Global Privacy Tools (bbc.co.uk) 90

AmiMoJo writes: Apple has attacked proposals for the UK government to pre-approve new security features introduced by tech firms. Under the proposed amendments to existing laws, if the UK Home Office declined an update, it then could not be released in any other country, and the public would not be informed. The government is seeking to update the Investigatory Powers Act (IPA) 2016. The Home Office said it supported privacy-focused tech but added that it also had to keep the country safe.

A government spokesperson said: "We have always been clear that we support technological innovation and private and secure communications technologies, including end-to-end encryption, but this cannot come at a cost to public safety." The proposed changes will be debated in the House of Lords tomorrow. Apple says it is an "unprecedented overreach" by the UK government. "We're deeply concerned the proposed amendments to the Investigatory Powers Act (IPA) now before Parliament place users' privacy and security at risk," said Apple in a statement. "It's an unprecedented overreach by the government and, if enacted, the UK could attempt to secretly veto new user protections globally preventing us from ever offering them to customers."

United States

US Disabled Chinese Hacking Network Targeting Critical Infrastructure (reuters.com) 24

The U.S. government in recent months launched an operation to fight a pervasive Chinese hacking operation that successfully compromised thousands of internet-connected devices, Reuters reported Tuesday, citing two Western security officials and another person familiar with the matter. From the report: The Justice Department and Federal Bureau of Investigation sought and received legal authorization to remotely disable aspects of the Chinese hacking campaign, the sources told Reuters. The Biden administration has increasingly focused on hacking, not only for fear nation states may try to disrupt the U.S. election in November, but because ransomware wreaked havoc on Corporate America in 2023.

The hacking group at the center of recent activity, Volt Typhoon, has especially alarmed intelligence officials who say it is part of a larger effort to compromise Western critical infrastructure, including naval ports, internet service providers and utilities. While the Volt Typhoon campaign initially came to light in May 2023, the hackers expanded the scope of their operations late last year and changed some of their techniques, according to three people familiar with the matter. The widespread nature of the hacks led to a series of meetings between the White House and private technology industry, including several telecommunications and cloud commuting companies, where the U.S. government asked for assistance in tracking the activity.

Medicine

Amid Recall Crisis, Philips Agrees To Stop Selling Sleep Apnea Machines In the United States (propublica.org) 61

An anonymous reader quotes a report from ProPublica: Reeling from one of the most catastrophic recalls in decades, Philips Respironics said it will stop selling sleep apnea machines and other respiratory devices in the United States under a settlement with the federal government that will all but end the company's reign as one of the top makers of breathing machines in the country. The agreement, announced by Philips early Monday, comes more than two years after the company pulled millions of its popular breathing devices off the shelves after admitting that an industrial foam fitted in the machines to reduce noise could break apart and release potentially toxic particles and fumes into the masks worn by patients.

It could be years before Philips can resume sales of the devices, made in two factories outside Pittsburgh. The company said all the conditions of the multiyear consent decree -- negotiated in the wake of the recall with the Department of Justice on behalf of the Food and Drug Administration -- must be met first. The move by a company that aggressively promoted its machines in ad campaigns and health conferences -- in one case with the help of an Elvis impersonator -- follows relentless criticism about the safety of the machines. A ProPublica and Pittsburgh Post-Gazette investigation found the company held back thousands of complaints about the crumbling foam for more than a decade before warning customers about the dangers. Those using the machines included some of the most fragile people in the country, including infants, the elderly, veterans and patients with chronic conditions.

"It's about time," said Richard Callender, a former mayor in Pennsylvania who spent years using one of the recalled machines. "How many people have to suffer and get sick and die?" Philips said the agreement includes other requirements the company must meet before it can start selling the machines again, including the marquee DreamStation 2, a continuous positive airway pressure, or CPAP, device heralded by Philips when it was unveiled in 2021 for the treatment of sleep apnea. The settlement, which is still being finalized, has to be approved by a court and has not yet been released by the government. It remains unclear how the halt in sales will impact patients and doctors. The company's U.S. market share for sleep apnea devices in 2020 was about 37% -- behind only one competitor, medical device maker ResMed, according to an analysis by iData Research. Philips has dominated the market in ventilator sales, the data shows.

United Kingdom

UK To Ban Disposable Vapes (nytimes.com) 131

In an announcement earlier today, Prime Minister Rishi Sunak said single-use vapes will be banned in Britain, with certain flavors restricted and regulations put in place around their packaging and displays. The New York Times reports: Mr. Sunak said that the ban, which is part of legislation that still has to be approved by Parliament, was intended to halt "one of the most worrying trends at the moment," before it becomes "endemic." "The long-term impacts of vaping are unknown and the nicotine within them can be highly addictive, so while vaping can be a useful tool to help smokers quit, marketing vapes to children is not acceptable," he said in a statement. Andrea Leadsom, Britain's health minister, said the measures were intended to make sure that vapes were aimed at adults who were quitting smoking, rather than children.

"Nicotine is highly addictive -- and so it is completely unacceptable that children are getting their hands on these products, many of which are undeniably designed to appeal to young people," she said in a statement. [...] While it is not illegal for people under 18 to smoke or vape in Britain, it is illegal for those products to be sold to them. By banning disposable vapes, and restricting the flavors and packaging of refillable vapes, the government hopes to make it far less likely that young people will experiment with e-cigarettes.

Transportation

NYC Wants To Create a First-of-Its Kind Department To Regulate App Based Delivery (fastcompany.com) 38

With the increasing adoption of e-bikes and drones for efficient, eco-friendly delivery services, New York is proposing the Department of Sustainable Delivery to regulate these services, focusing on safety, data sharing, and operational permits to ease congested lanes. Fast Company reports: The first step of the new department will be a task force made up of tech, transportation, labor, and government representatives. There are currently some city regulations around delivery operations, but they're fragmented; the Department of Consumer and Worker Protection, for example, has addressed delivery worker rights (and recently announced a new minimum pay rate for app-based food delivery workers), while the Department of Transportation focuses on commercial delivery, and has taken steps to address delivery cargo bikes. "We don't have a place where every company that wants to dispatch in volume and move freight [and goods] around in the city on a micro level comes through and has to show that they're going to meet certain requirements," [New York City Deputy Mayor of Operations Meera Joshi] says.

Managers of truck delivery fleets often track their driver's performance and behavior with tools like GPS; through the new department, micromobility app companies may be required to share their GPS delivery data with the city. That data might reveal more about how long delivery riders are working, or how heavy cargo bikes' loads are, which could lead to new regulations. Joshi also points to e-bike fires and rising e-bike rider deaths as red flags that signal the need for more oversight and legislation, which could prevent future tragedies. More information about where and when these deliveries are happening could also help the city adapt its infrastructure to this growing market. "As more and more of the city is feeling the effects of the commercialization of bike lanes, we certainly do have to rethink how wide our bike lanes are, what they are there to accommodate, does there need to be some separation between motorized and nonmotorized [bikes]?" Joshi says. "But these things need to be informed." The city is already making some such updates. Last summer, it upgraded a stretch of 10th Avenue to include a 10-foot-wide bike lane, to better allow regular cyclists and delivery e-bikes to coexist

Tech advancements often move faster than the government, resulting in a game of legislative catch up for cities. Joshi says New York City is thinking about micromobility in this way because "we've seen this movie before," referring to tech disruption, "and we'd like a different ending." While Joshi knows that companies may bristle at the increased oversight, she says being proactive about these issues and taking steps to address them will likely help the firms and their public perception long-term. And not addressing micromobility challenges now could also impede larger climate progress. "If we are not able to show that we have a comprehensive framework, show that we're able to manage what we have today and prepare for the unknown, we could have people, saying 'it was better when [delivery] was in trucks,'" Joshi says, "and that would actually be probably the worst thing for the environment."

Data Storage

Japan Will No Longer Require Floppy Disks For Submitting Some Official Documents (engadget.com) 45

Japan is aiming to phase out floppy disks and CD-ROMs, which until now were forms of physical media required for submitting some official documents to the government. Engadget reports: Back in 2022, Minister of Digital Affairs Taro Kono urged various branches of the government to stop requiring businesses to submit information on outdated forms of physical media. The Ministry of Economy, Trade and Industry (METI) is one of the first to make the switch. "Under the current law, there are many provisions stipulating the use of specific recording media such as floppy disks regarding application and notification methods," METI said last week, according to The Register. After this calendar year, METI will no longer require businesses to submit data on floppy disks under 34 ordinances. The same goes for CD-ROMs when it comes to an unspecified number of procedures. There's still quite some way to go before businesses can stop using either format entirely, however.

Kono's staff identified some 1,900 protocols across several government departments that still require the likes of floppy disks, CD-ROMs and even MiniDiscs. The physical media requirements even applied to key industries such as utility suppliers, mining operations and aircraft and weapons manufacturers. There are a couple of main reasons why there's a push to stop using floppy disks, as SoraNews24 points out. One major factor is that floppy disks can be hard to come by. Sony, the last major manufacturer, stopped selling them in 2011. Another is that some data types just won't fit on a floppy disk. A single photo can easily be larger than the format's 1.4MB storage capacity.

Open Source

Open-Source Intelligence Challenges CIA, NSA, Spy Agencies (bloomberg.com) 10

Spying used to be all about secrets. Increasingly, it's about what's hiding in plain sight [non-paywalled link] . From a report: A staggering amount of data, from Facebook posts and YouTube clips to location pings from mobile phones and car apps, sits in the open internet, available to anyone who looks. US intelligence agencies have struggled for years to tap into such data, which they refer to as open-source intelligence, or OSINT. But that's starting to change. In October the Office of the Director of National Intelligence, which oversees all the nation's intelligence agencies, brought in longtime analyst and cyber expert Jason Barrett to help with the US intelligence community's approach to OSINT. His immediate task will be to help develop the intelligence community's national OSINT strategy, which will focus on coordination, data acquisition and the development of tools to improve its approach to this type of intelligence work. ODNI expects to implement the plan in the coming months, according to a spokesperson.

Barrett's appointment, which hasn't previously been reported publicly, comes after more than a year of work on the strategy led by the Central Intelligence Agency, which has for years headed up the government's efforts on OSINT. The challenge with other forms of intelligence-gathering, such as electronic surveillance or human intelligence, can be secretly collecting enough information in the first place. With OSINT, the issue is sifting useful insights out of the unthinkable amount of information available digitally. "Our greatest weakness in OSINT has been the vast scale of how much we collect," says Randy Nixon, director of the CIA's Open Source Enterprise division. Nixon's office has developed a tool similar to ChatGPT that uses AI to sift the ever-growing flood of data. Now available to thousands of users within the federal government, the tool points analysts to the most important information and auto-summarizes content. Government task forces have warned since the 1990s that the US was at risk of falling behind on OSINT. But the federal intelligence community has generally prioritized information it gathers itself, stymying progress.

China

China Approves Over 40 AI Models For Public Use in Past Six Months (reuters.com) 10

China has approved more than 40 AI models for public use in the first six months since authorities began the approval process, as the country strives to catch up to the U.S. in AI development, according to Chinese media. Reuters: Chinese regulators granted approvals to a total of 14 large language models (LLM) for public use last week, Chinese state-backed Securities Times reported. It marks the fourth batch of approvals China has granted, which counts Xiaomi, 4Paradigm and 01.AI among the recipients. Beijing started requiring tech companies to obtain approval from regulators to open their LLMs to the public last August. It underscored China's approach towards developing AI technology while striving to keep it under its purview and control.

Beijing approved its first batch of AI models in August shortly after the approval process was adopted. Baidu, Alibaba and ByteDance were among China's first companies to receive approvals Chinese regulators then granted two more batches of approvals in November and December before another batch was given the greenlight this month. While the government has not disclosed the exact list of approved companies available for public checks, Securities Times said on Sunday more than 40 AI models have been approved.

Transportation

California Bill Wants To Mandate Electronic 'Speed Limiters' in Cars (caranddriver.com) 362

"Someday in the not too distant future, it might no longer be possible to drive a brand-new car faster than 80 mph in California," writes Car and Driver: That's because state senator Scott Wiener earlier this week proposed a new bill that aims to prevent certain new vehicles from going more than 10 mph over the speed limit. In California, the maximum posted speed limit is 70 mph, meaning anything north of 80 mph would be off limits.

The Speeding and Fatality Emergency Reduction on California Streets — or SAFER California Streets, for short — is a package of bills that includes SB 961 that was published Tuesday, which essentially calls for speed governors on new cars and trucks built or sold in California starting with the 2027 model year. These vehicles would be required to have an "intelligent speed limiter system" that electronically prevents the driver from speeding above the aforementioned threshold.

The speed-limiter tech wouldn't apply to emergency vehicles. There's also language in the bill that the passive device would have the ability to be temporarily disabled by the driver, however, it's unclear in what situations that might apply. The bill also states that automakers would be able to fully disable the speed-limiter, but presumably only for authorized emergency vehicles. The commissioner of the California Highway Patrol could authorize disabling the speed-limiter too at their discretion...

The proposed legislation is said to be an attempt to address rising traffic fatalities, which in California have reportedly increased by 22 perecent from 2019 to 2022.

Transportation

America's Car Industry Seeks to Crush AM Radio. Will Congress Rescue It? (msn.com) 262

The Wall Street Journal reports that "a motley crew of AM radio advocates," including conservative talk show hosts and federal emergency officials, are lobbying Congress to stop carmakers from dropping AM radio from new vehicles: Lawmakers say most car companies are noncommittal about the future of AM tuners in vehicles, so they want to require them by law to keep making cars with free AM radio. Supporters argue it is a critical piece of the emergency communication network, while the automakers say Americans have plenty of other ways, including their phones, to receive alerts and information. The legislation has united lawmakers who ordinarily want nothing to do with one another. Sens. Ted Cruz (R., Texas) and Ed Markey (D., Mass.) are leading the Senate effort, and on the House side, Speaker Mike Johnson — himself a former conservative talk radio host in Louisiana — and progressive "squad" member Rep. Rashida Tlaib of Michigan are among about 200 co-sponsors...

A spring 2023 Nielsen survey, the most recent one available, showed that AM radio reaches about 78 million Americans every month. That is down from nearly 107 million in the spring of 2016, one of the earliest periods for which Nielsen has data... Automakers say the rise of electric vehicles is driving the shift away from AM, because onboard electronics create interference with AM radio signals — a phenomenon that "makes the already fuzzy analog AM radio frequency basically unlistenable," according to the Alliance for Automotive Innovation, a car-industry trade group. Shielding cables and components to reduce interference would cost carmakers $3.8 billion over seven years, the group estimates.

Markey and other lawmakers say they want to preserve AM radio because of its role in emergency communications. The Federal Emergency Management Agency says that more than 75 radio stations, most of which operate on the AM band and cover at least 90% of the U.S. population, are equipped with backup communications equipment and generators that allow them to continue broadcasting information to the public during and after an emergency. Seven former FEMA administrators urged Congress in a letter last year to seek assurances from automakers that they would keep broadcast radio available. The companies' noncommittal response spurred legislation, lawmakers said.

Automakers increasingly want to put radio and other car features "behind a paywall," Markey said in an interview. "They see this as another profit center for them when the American driving public has seen it as a safety resource for them and their families...." He compared the auto industry's resistance to the bill to previous opposition to government mandates like seat belts and air bags. "Leaving safety decisions to the auto industry is very dangerous," Markey said.

Lawmakers have heard from over 400,000 AM radio supporters, according to the president of the National Association of Broadcasters.

But the article also cites an executive at the Consumer Technology Association, who says automakers and tech advocacy groups have told lawmakers that requiring AM radio "would be "inconsistent with the principles of a free market.... It's strange that Congress is focused on a 100-year-old technology."
United Kingdom

London Accused of Wrongly Fining Hundreds of Thousands of EU Drivers (theguardian.com) 91

The Guardian reports that "Hundreds of thousands of EU citizens were wrongly fined for driving in London's Ulez clean air zone, according to European governments..." The Guardian can reveal Transport for London (TfL) has been accused by five EU countries of illegally obtaining the names and addresses of their citizens in order to issue the fines, with more than 320,000 penalties, some totalling thousands of euros, sent out since 2021...

Since Brexit, the UK has been banned from automatic access to personal details of EU residents. Transport authorities in Belgium, Spain, Germany and the Netherlands have confirmed to the Guardian that driver data cannot be shared with the UK for enforcement of London's ultra-low emission zone (Ulez), and claim registered keeper details were obtained illegally by agents acting for TfL's contractor Euro Parking Collection. In France, more than 100 drivers have launched a lawsuit claiming their details were obtained fraudulently, while Dutch lorry drivers are taking legal action against TfL over £6.5m of fines they claim were issued unlawfully.

According to the Belgian MP Michael Freilich, who has investigated the issue on behalf of his constituents, TfL is treating European drivers as a "cash cow" by using data obtained illegitimately to issue unjustifiable fines.

Freilich describes the situation as "possibly one of the largest privacy and data breaches in EU history," according to the article.

Some drivers have even received penalties of up to five-figure sums — for compliant vehicles which had simply not yet been registered. And "some low-emission cars have been misclassed as heavy goods diesel vehicles and fined under the separate low-emission zone scheme, which incurs penalties of up to £2,000 a day."

Thanks to Slashdot reader Bruce66423 for sharing the article.
Earth

'Massive Amounts' of Carbon Sequestered for Centuries Released By Clearing Indonesia's Peatland (msn.com) 130

"Indonesia has been clearing tens of thousands of acres of densely vegetated peatland for farming, releasing massive amounts of carbon that had been sequestered below for centuries," reports the Washington Post, "and destroying one of the Earth's most effective means of storing greenhouse gases." The country is home to as much as half of the planet's tropical peatland, a unique ecosystem that scientists say is vital to averting the worst results of climate change. Government leaders have made halting efforts to protect peatlands over the last two decades, but three years ago, when the pandemic disrupted food supply chains, officials launched an ambitious land-clearance operation in a push to expand the cultivation of crops and cut Indonesia's reliance on expensive imports. By transforming 2,000 to 4,000 square miles of what environmental groups say is predominantly peatland into fields of rice, corn and cassava, the government projects that it will achieve self-sufficiency in food... But disrupting the peatlands comes with devastating, likely irreversible costs for the climate, say environmental experts and activists.

"To restore these vast areas of peat forest being destroyed will take years and huge investments in labor and funds," said David Taylor, a professor of tropical environmental change at the National University of Singapore who has researched peatlands in Asia and Africa. To do it on the timeline that global leaders have set for the world to achieve net-zero emissions? "Near impossible," Taylor said... While peatlands make up just 3 percent of the Earth's land, they store twice as much carbon as all the world's forests combined, according to the United Nations. When peatlands are drained, layers of aged biomass that are exposed to oxygen-rich air decay at an accelerated rate, releasing carbon from bygone eras into the atmosphere.

Even worse, when the weather turns hot, unprotected peat dries out, becoming combustible. Already, environmental activists and villagers in Kalimantan, the Indonesian portion of the island of Borneo, say peatlands cleared by the government are fueling more-intense wildfires... Left intact, peatlands are naturally protected against fire. Once degraded, however, they produce infernos that are notoriously difficult to put out because they can travel underground, feeding on dried biomass yards below the surface.

Tropical peatlands are also threatened by development in Peru and Africa's Congo Basin, according to the article. But they add that there's something especially ironic about Indonesia's government project. "Research shows that tropical peatlands tend to be too acidic to grow crops.

"Indonesian environmental groups, including Pantau Gambut and WALHI, said they have documented widespread crop failures in areas targeted by the government's project. Rice planted in some peat-rich areas has had less than a third of the yield of rice planted in mineral soil, according to the groups' analysis."
Microsoft

HP, Many More Companies May Have Been Breached By Russian Intelligence Group (msn.com) 27

"Security experts expect many more companies to disclose that they've been hacked by Russian intelligence agents who stole emails from executives," reports the Washington Post, "following disclosures by Microsoft and Hewlett-Packard Enterprise in the past week." Microsoft said late Thursday that it had found more victims and was in the process of notifying them. A spokesperson declined to say how many. But three experts in and out of government said that the attack was deeper and broader than the disclosures to date reveal. Two said that more than 10 companies, and perhaps far more, are expected to come forward...

The Securities and Exchange Commission last year strengthened the rules that require companies to notify their stockholders of computer intrusions that could have a material impact on company results. That helped spur the recent disclosures.

A spokesperson for America's Department of Homeland Security said "at this time we are not aware of impacts to Microsoft customer environments or products," according to the article. (Although the Washington Post adds that "The Microsoft and HPE breaches are especially concerning because so many other companies and agencies rely on them for cloud services, including email.")

The attackers were potentially spying on Microsoft's senior leadership team "for weeks or months," reports the Verge, citing a newly-published analysis by Microsoft: Crucially, the non-production test tenant account that was breached didn't have two-factor authentication enabled. [A cyber-breaching group named Nobelium from Russia's foreign intelligence service] "tailored their password spray attacks to a limited number of accounts, using a low number of attempts to evade detection," says Microsoft. From this attack, the group "leveraged their initial access to identify and compromise a legacy test OAuth application that had elevated access to the Microsoft corporate environment...." This elevated access allowed the group to create more malicious OAuth applications and create accounts to access Microsoft's corporate environment and eventually its Office 365 Exchange Online service that provides access to email inboxes...

Hewlett Packard Enterprise (HPE) revealed earlier this week that the same group of hackers had previously gained access to its "cloud-based email environment." HPE didn't name the provider, but the company did reveal the incident was "likely related" to the "exfiltration of a limited number of [Microsoft] SharePoint files as early as May 2023."

United States

NSA Buys Americans' Internet Data Without Warrants, Letter Says (nytimes.com) 96

The National Security Agency buys certain logs related to Americans' domestic internet activities from commercial data brokers, according to an unclassified letter by the agency. The New York Times: The letter [PDF], addressed to a Democratic senator and obtained by The New York Times, offered few details about the nature of the data other than to stress that it did not include the content of internet communications. Still, the revelation is the latest disclosure to bring to the fore a legal gray zone: Intelligence and law enforcement agencies sometimes purchase potentially sensitive and revealing domestic data from brokers that would require a court order to acquire directly.

It comes as the Federal Trade Commission has started cracking down on companies that trade in personal location data that was gathered from smartphone apps and sold without people's knowledge and consent about where it would end up and for what purpose it would be used. In a letter to the director of national intelligence dated Thursday, the senator, Ron Wyden, Democrat of Oregon, argued that "internet metadata" -- logs showing when two computers have communicated, but not the content of any message -- "can be equally sensitive" as the location data the F.T.C. is targeting. He urged intelligence agencies to stop buying internet data about Americans if it was not collected under the standard the F.T.C. has laid out for location records. "The U.S. government should not be funding and legitimizing a shady industry whose flagrant violations of Americans' privacy are not just unethical, but illegal," Mr. Wyden wrote.

AI

FTC Launches Inquiry Into AI Deals by Tech Giants (nytimes.com) 12

The Federal Trade Commission launched an inquiry (non-paywalled link) on Thursday into the multibillion-dollar investments by Microsoft, Amazon and Google in the artificial intelligence start-ups OpenAI and Anthropic, broadening the regulator's efforts to corral the power the tech giants can have over A.I. The New York Times: These deals have allowed the big companies to form deep ties with their smaller rivals while dodging most government scrutiny. Microsoft has invested billions of dollars in OpenAI, the maker of ChatGPT, while Amazon and Google have each committed billions of dollars to Anthropic, another leading A.I. start-up.

Regulators have typically focused on bringing antitrust lawsuits against deals where the tech giants are buying rivals outright or using acquisitions to expand into new businesses, leading to increased prices and other harm, and have not regularly challenged stakes that the companies buy in start-ups. The F.T.C.'s inquiry will examine how these investment deals alter the competitive landscape and could inform any investigations by federal antitrust regulators into whether the deals have broken laws.

The F.T.C. said it would ask Microsoft, OpenAI, Amazon, Google and Anthropic to describe their influence over their partners and how they worked together to make decisions. It also said it would demand that they provide any internal documents that could shed light on the deals and their potential impact on competition.

Privacy

Inside a Global Phone Spy Tool Monitoring Billions (404media.co) 40

A wide-spanning investigation by 404 Media reveals more details about a secretive spy tool that can tracks billions of phone profiles through the advertising industry called Patternz. From the report: Hundreds of thousands of ordinary apps, including popular ones such as 9gag, Kik, and a series of caller ID apps, are part of a global surveillance capability that starts with ads inside each app, and ends with the apps' users being swept up into a powerful mass monitoring tool advertised to national security agencies that can track the physical location, hobbies, and family members of people to build billions of profiles, according to a 404 Media investigation.

404 Media's investigation, based on now deleted marketing materials and videos, technical forensic analysis, and research from privacy activists, provides one of the clearest examinations yet of how advertisements in ordinary mobile apps can ultimately lead to surveillance by spy firms and their government clients through the real time bidding data supply chain. The pipeline involves smaller, obscure advertising firms and advertising industry giants like Google. In response to queries from 404 Media, Google and PubMatic, another ad firm, have already cut-off a company linked to the surveillance firm.

United States

Biden Aims To Stop Countries From Exploiting Americans' Data for Blackmail, Espionage (bloomberg.com) 119

The Biden administration is preparing an executive order that seeks to prevent foreign adversaries from accessing troves of highly sensitive personal data about Americans and people connected to the US government, Bloomberg News reported, citing documents. From the report: The administration plans to soon unveil the new executive order, which will direct the US Attorney General and Department of Homeland Security to issue new restrictions on transactions involving data that, if obtained, could threaten national security, according to three people familiar with the matter, who asked not to be named as the details are still private.

The draft order focuses on ways that foreign adversaries are gaining access to Americans' "highly sensitive" personal data -- from genetic information to location -- through legal means. That includes obtaining information through intermediaries, such as data brokers, third-party vendor agreements, employment agreements or investment agreements, according to a draft of the proposed order. In addition, organizations owned, controlled or operated by "countries of concern" are often obligated to hand such data over to the government when asked.

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