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Businesses

Samsung Chief Charged With Bribery and Embezzlement (npr.org) 22

After a three-month investigation, the acting head of Samsung, Lee Jae-yong, has been charged with bribery and embezzlement in connection with the corruption scandal that led to the impeachment of South Korea's president Park Geun-hye. NPR reports: NPR's Elise Hu reported from Seoul that prosecutors announced the indictment after a three-month investigation: "Samsung acting head Lee Jae-Yong got ensnared after documents showed Samsung funneled some $36 million to the president's close confidant. Prosecutors say the money was paid to win government support of a controversial 2015 company merger. The merger did go through, after a vote of support from the government. In a statement, Samsung says it has not paid bribes or made improper requests to the government. Lee is currently in jail awaiting further proceedings in his case." Lee was arrested on Feb. 17, two months after President Park Geun-hye was impeached over allegations of corruption, influence-peddling and cult ties, as we reported. Those corruption allegations were directly tied to the charges brought against Lee, who also goes by the name Jay Y. Lee.
AT&T

FCC Chairman Says His Agency Won't Review AT&T's Time Warner Purchase (engadget.com) 104

Today, FCC commissioner Ajit Pai confirmed that his agency would not review AT&T's Time Warner purchase, clearing the way for the Justice Department to likely approve the deal. Engadget reports: Last month, AT&T revealed how it might structure its deal to acquire Time Warner without having to go through FCC review. The communications giant noted that it "anticipated that Time Warner will not need to transfer any of its FCC licenses ... after the closing of the transaction." That means that the FCC wouldn't need to review the transaction. "That is the regulatory hook for FCC review," Pai said in an interview with The Wall Street Journal. "My understanding is that the deal won't be presented to the commission." The WSJ notes that this would leave the Justice Department as the only governmental agency reviewing the potential deal. Time Warner has said that it has "dozens" of FCC licenses, but the company believes those won't need to be transferred to AT&T as part of the merger, thus keeping the FCC out of the deal. The report notes that the deal still might not go through even if the FCC won't review the transaction. There's a lot of opposition to it from consumer advocacy groups, and President Donald Trump has said he opposes the deal.
Canada

Canada's Top Mountie Issues Blistering Memo On IT Failures (www.cbc.ca) 116

Reader Freshly Exhumed writes: RCMP Commissioner Bob Paulson has levelled a blistering memo obtained by the CBC on how critical IT failures have increased by 129 per cent since Shared Services Canada took over tech support for the entire government five years ago. Not only that, the memo says, the duration of each outage has increased by 98 per cent. "Its 'one size fits all' IT shared services model has negatively impacted police operations, public and officer safety and the integrity of the criminal justice system," reads the memo. A list of specific incidents includes an 11-hour network computer outage on Jan. 18 that downed every Mountie's BlackBerry, affected dispatching, and prevented the RCMP and 240 other police forces from accessing the Canadian Police Information Centre database.
Government

FCC To Halt Rule That Protects Your Private Data From Security Breaches (arstechnica.com) 119

According to Ars Technica, "The Federal Communications Commission plans to halt implementation of a privacy rule that requires ISPs to protect the security of its customers' personal information." From the report: The data security rule is part of a broader privacy rulemaking implemented under former Chairman Tom Wheeler but opposed by the FCC's new Republican majority. The privacy order's data security obligations are scheduled to take effect on March 2, but Chairman Ajit Pai wants to prevent that from happening. The data security rule requires ISPs and phone companies to take "reasonable" steps to protect customers' information -- such as Social Security numbers, financial and health information, and Web browsing data -- from theft and data breaches. The rule would be blocked even if a majority of commissioners supported keeping them in place, because the FCC's Wireline Competition Bureau can make the decision on its own. That "full commission vote on the pending petitions" could wipe out the entire privacy rulemaking, not just the data security section, in response to petitions filed by trade groups representing ISPs. That vote has not yet been scheduled. The most well-known portion of the privacy order requires ISPs to get opt-in consent from consumers before sharing Web browsing data and other private information with advertisers and other third parties. The opt-in rule is supposed to take effect December 4, 2017, unless the FCC or Congress eliminates it before then. Pai has said that ISPs shouldn't face stricter rules than online providers like Google and Facebook, which are regulated separately by the Federal Trade Commission. Pai wants a "technology-neutral privacy framework for the online world" based on the FTC's standards. According to today's FCC statement, the data security rule "is not consistent with the FTC's privacy standards."
Communications

FCC Votes To Lift Net Neutrality Transparency Rules For Smaller Internet Providers (theverge.com) 115

The Federal Communications Commission today voted to lift transparency requirements for smaller internet providers. According to The Verge, "Internet providers with fewer than 250,000 subscribers will not be required to disclose information on network performance, fees, and data caps, thanks to this rule change. The commission had initially exempted internet providers with fewer than 100,000 subscribers with the intention of revisiting the issue later to determine whether a higher or lower figure was appropriate." From the report: The rule passed in a 2-1 vote, with Republicans saying the reporting requirements unfairly burdened smaller ISPs with additional work. Only Democratic commissioner Mignon Clyburn opposed. Clyburn argued that the disclosures were an important consumer protection that was far from overbearing on businesses, particularly ones this large. Clyburn also argued that the rule would allow larger internet providers to avoid disclosing information by simply breaking their service areas up into different subsidiaries. Republican commissioner Michael O'Rielly voted in favor of the change, saying he actually would have preferred the subscriber exemption to be even higher. And commission chairman Ajit Pai said the rules were necessary to protect "mom and pop internet service providers" from "burdensome requirements [...] that impose serious and unnecessary costs."
Facebook

'Social Media Needs A Travel Mode' (idlewords.com) 144

Maciej CegÅowski, a Polish-American web developer, entrepreneur, and social critic, writes on a blog post: We need a 'trip mode' for social media sites that reduces our contact list and history to a minimal subset of what the site normally offers. Not only would such a feature protect people forced to give their passwords at the border, but it would mitigate the many additional threats to privacy they face when they use their social media accounts away from home. Both Facebook and Google make lofty claims about user safety, but they've done little to show they take the darkening political climate around the world seriously. A 'trip mode' would be a chance for them to demonstrate their commitment to user safety beyond press releases and anodyne letters of support. What's required is a small amount of engineering, a good marketing effort, and the conviction that any company that makes its fortune hoarding user data has a moral responsibility to protect its users. To work effectively, a trip mode feature would need to be easy to turn on, configurable (so you can choose how long you want the protection turned on for) and irrevocable for an amount of time chosen by the user once it's set. There's no sense in having a 'trip mode' if the person demanding your password can simply switch it off, or coerce you into switching it off.
The Almighty Buck

The Only Thing, Historically, That's Curbed Inequality: Catastrophe (theatlantic.com) 516

ColdWetDog writes: The Atlantic has an interesting article on how societies have decreased economic equality. From the report: "Calls to make America great again hark back to a time when income inequality receded even as the economy boomed and the middle class expanded. Yet it is all too easy to forget just how deeply this newfound equality was rooted in the cataclysm of the world wars. The pressures of total war became a uniquely powerful catalyst of equalizing reform, spurring unionization, extensions of voting rights, and the creation of the welfare state. During and after wartime, aggressive government intervention in the private sector and disruptions to capital holdings wiped out upper-class wealth and funneled resources to workers; even in countries that escaped physical devastation and crippling inflation, marginal tax rates surged upward. Concentrated for the most part between 1914 and 1945, this 'Great Compression' (as economists call it) of inequality took several more decades to fully run its course across the developed world until the 1970s and 1980s, when it stalled and began to go into reverse. This equalizing was a rare outcome in modern times but by no means unique over the long run of history. Inequality has been written into the DNA of civilization ever since humans first settled down to farm the land. Throughout history, only massive, violent shocks that upended the established order proved powerful enough to flatten disparities in income and wealth. They appeared in four different guises: mass-mobilization warfare, violent and transformative revolutions, state collapse, and catastrophic epidemics. Hundreds of millions perished in their wake, and by the time these crises had passed, the gap between rich and poor had shrunk."

Slashdot reader ColdWetDog notes: "Yep, the intro is a bit of a swipe at Trump. But this should get the preppers and paranoids in the group all wound up. Grab your foil! Run for the hills!"

Government

Wyden To Introduce Bill To Prohibit Warrantless Phone Searches At Border (onthewire.io) 193

Trailrunner7 quotes a report from On the Wire: A senator from Oregon who has a long track record of involvement on security and privacy issues says he plans to introduce a bill soon that would prevent border agents from forcing Americans returning to the country to unlock their phones without a warrant. Sen. Ron Wyden said in a letter to the secretary of the Department of Homeland Security that he is concerned about reports that Customs and Border Patrol agents are pressuring returning Americans into handing over their phone PINs or using their fingerprints to unlock their phones. DHS Secretary John Kelly has said that he's considering the idea of asking visitors for the login data for their various social media accounts, information that typically would require a warrant to obtain. "Circumventing the normal protection for such private information is simply unacceptable," Wyden said in the letter, sent Monday. "There are well-established procedures governing how law enforcement agencies may obtain data from social media companies and email providers. The process typically requires that the government obtain a search warrant or other court order, and then ask the service provider to turn over the user's data."
Android

Congressman Calls For Probe Into Trump's Unsecured Android Phone (cnet.com) 507

An anonymous reader quotes a report from CNET: President Donald Trump regularly makes news because of his tweets. Now a congressman is making news because of the device the president reportedly uses to tweet. On Friday, Congressman Ted Lieu, a Democrat from Los Angeles, wrote a letter to the House Oversight Committee requesting an investigation into Trump's cybersecurity practices. In particular, he calls out Trump's apparent decision to keep using his personal Android phone instead of a secured phone the Secret Service issued him for his inauguration. The letter is also signed by 14 other members of Congress and calls for a public hearing to discuss the issues. "The device President Trump insists on using -- most likely the Samsung Galaxy S3 -- has particularly well documented vulnerabilities," the letter says. "The use of an unsecured phone risks the president of the United States being monitored by foreign or domestic adversaries, many of whom would be happy to hijack the president's prized Twitter account causing disastrous consequences for global security. Cybersecurity experts universally agree that an ordinary Android smartphone, which the president is reportedly using despite repeated warnings from the Secret Service, can be easily hacked."
The Almighty Buck

Accenture To Create 15,000 Jobs In US (reuters.com) 202

Accenture said on Friday it would create 15,000 "highly skilled" new jobs in the United States, as IT services firms brace for a more protectionist U.S. technology visa program under President Donald Trump. From a report on Reuters: The company, which is domiciled in Dublin, Ireland, said the new jobs would increase the company's U.S. workforce by 30 percent to more than 65,000 by the end of 2020. Accenture has more than 394,000 employees, of which about 140,000 are in India. IT services companies have come under the spotlight after Trump said that his administration would focus on creating more jobs for U.S. workers, who had been affected by the outsourcing of jobs abroad. Major IT service companies, particularly those based in India, fly engineers to the United States using H-1B visas to service clients, but some opponents argue they are misusing the visa program to replace U.S. jobs.
Businesses

Samsung Chief Lee Arrested In Corruption Investigation (reuters.com) 24

According to Reuters, Samsung chief Jay Y. Lee was arrested on Friday over his alleged role in a corruption scandal that led parliament to impeach South Korean President Park Geun-hye. From the report: The 48-year-old Lee, vice chairman of Samsung Electronics Co Ltd (005930.KS), was taken into custody at the Seoul Detention Centre, where he had awaited the court's decision following a day-long, closed-door hearing that ended on Thursday evening. The judge's decision was announced at about 5:30 a.m. (2030 GMT) on Friday, more than 10 hours after Lee, the sprawling conglomerate's third-generation leader, had left the court. The same court rejected a request from prosecutors last month to arrest Lee. On Tuesday, the special prosecutor's office had requested a warrant to arrest him and another executive, Samsung Electronics president Park Sang-jin, on bribery and other charges. The prosecution said it had secured additional evidence and brought more charges against Lee in the latest warrant request. While Lee's detention is not expected to hamper day-to-day operation of Samsung Group companies, which are run by professional managers, experts have said it could affect strategic decision-making by South Korea's biggest conglomerate. Prosecutors have focused their investigations on Samsung's relationship with Park, 65, who was impeached by parliament in December and has been stripped of her powers while the Constitutional Court decides whether to uphold her impeachment. They accused Samsung of paying bribes totaling 43 billion won ($37.74 million) to organizations linked to Choi to secure the government's backing for a merger of two Samsung units. That funding includes Samsung's sponsorship of the equestrian career of Choi's daughter, who is in detention in Denmark, having been on a South Korean wanted list.
AT&T

Apple Will Fight 'Right To Repair' Legislation (vice.com) 310

An anonymous reader quotes a report from Motherboard: Apple is planning to fight proposed electronics "Right to Repair" legislation being considered by the Nebraska state legislature, according to a source within the legislature who is familiar with the bill's path through the statehouse. The legislation would require Apple and other electronics manufacturers to sell repair parts to consumers and independent repair shops, and would require manufacturers to make diagnostic and service manuals available to the public. Nebraska is one of eight states that are considering right to repair bills; last month, Nebraska, Minnesota, New York, Massachusetts, Kansas, and Wyoming introduced legislation. Last week, lawmakers in Illinois and Tennessee officially introduced similar bills. According to the source, an Apple representative, staffer, or lobbyist will testify against the bill at a hearing in Lincoln on March 9. ATT will also argue against the bill, the source said. The source told me that at least one of the companies plans to say that consumers who repair their own phones could cause lithium batteries to catch fire. So far, Nebraska is the only state to schedule a hearing for its legislation.
Security

Michael Flynn Resigns As Trump's National Security Adviser (go.com) 895

An anonymous reader quotes a report from ABC News: President Donald Trump's embattled national security adviser Michael Flynn, who faced questions about a call to the Russian ambassador prior to the inauguration, has resigned. Retired Army General Keith Kellogg was named acting national security adviser to replace Flynn. ABC News reported Monday that Flynn called Vice President Mike Pence on Friday to apologize for misleading him about his conversation with the ambassador in November. Flynn previously denied that he spoke about sanctions the U.S. imposed on Russia for its suspected interference in the 2016 election, a claim repeated by Pence in January. An administration official later claimed Pence was relying on information provided to him by Flynn. In his resignation later, Flynn cited the "fast pace of events" for "inadvertently" briefing "the Vice President Elect and others with incomplete information regarding [his] phone calls with the Russian Ambassador." You can view Flynn's full resignation letter, as provided by the White House, here.
Programming

H-1Bs Reduced Computer Programmer Employment By Up To 11%, Study Finds (marketwatch.com) 271

An anonymous reader quotes a report from MarketWatch: There would have been up to 11% more computer science jobs at wages up to 5% higher were it not for the immigration program that brings in foreign high-skilled employees, a new study finds. The paper -- by John Bound and Nicolas Morales of the University of Michigan and Gaurav Khanna of the University of California, San Diego -- was conducted by studying the economy between 1994 and 2001, during the internet boom. It was also a period where the recruitment of so-called H-1B labor was at or close to the cap and largely before the onset of the vibrant IT sector in India. In 2001, the number of U.S. computer scientists was between 6.1%-10.8% lower and wages were between 2.6% and 5.1% lower. Of course, there also were beneficiaries -- namely consumers and employers. Immigration lowered prices by between 1.9% and 2.4%, and profits increased as did the total number of IT firms.
Government

CS Professor Argues Silicon Valley Is Exploiting Both H-1B Visas And Workers (huffingtonpost.com) 318

schwit1 quotes Norm Matloff, a CS professor at the University of California at Davis, on H-1B visa programs: The Trump administration has drafted a new executive order that could actually mean higher wages for both foreign workers and Americans working in Silicon Valley. The Silicon Valley companies, of course, will not be happy if it goes into effect... Their lobbyists claim there is a "talent shortage" among Americans and thus that the industry needs more of such work visas. This is patently false. The truth is that they want an expansion of the H-1B work visa program because they want to hire cheap, immobile labor -- i.e., foreign workers.

To see how this works, note that most Silicon Valley firms sponsor their H-1B workers, who hold a temporary visa, for U.S. permanent residency (green card) under the employment-based program in immigration law. EB sponsorship renders the workers de facto indentured servants; though they have the right to move to another employer, they do not dare do so, as it would mean starting the lengthy green card process all over again.

Computerworld also argues this year's annual H-1B visa lottery "may be different, because of President Donald Trump," reporting that the lottery has historically favored the largest firms heavily. "In the 2015 fiscal year, for instance, the top 10 firms received 38% of all the H-1B visas in computer occupations alone. All these firms, except for Amazon and to a partial extent IBM, are outsourcers."
Government

Senators Push Trump Administration For Clarity On Privacy Act Exclusions (onthewire.io) 136

Trailrunner7 quotes a report from On the Wire: A group of influential lawmakers, including Sen. Ed Markey and Sen. Ron Wyden, are pressing the Trump administration for answers about how an executive order that includes changes to the Privacy Act will affect non-U.S. persons and whether the administration plans to release immigrants' private data. The letter comes from six senators who are concerned about the executive order that President Trump issued two weeks ago that excludes from privacy protections people who aren't U.S. citizens or permanent residents. The order is mostly about changes to immigration policy, but Trump also included a small section that requires federal government agencies to exclude immigrants from Privacy Act protections. On Thursday, Markey, Wyden, and four other senators sent a letter to Secretary of Homeland Security Jon Kelly, asking a series of 10 questions about how the exclusion would be implemented, what it would cost, and whether the government plans to release the private data of people affected by the order. "These Privacy Act exclusions could have a devastating impact on immigrant communities, and would be inconsistent with the commitments made when the government collected much of this information," the senators said in the letter to Kelly. In the letter, the lawmakers ask Kelly whether people affected by the order will be allowed full access to their own private data that has been collected by the government. They also ask how the government plans to identify U.S. persons in their databases and what policies DHS will apply to separate them from non-U.S persons. The letter also asks for clarification on how the executive order will affect the Privacy Shield pact between the U.S and the European Union. That agreement enables companies to move private data between countries under certain data protection laws.
Republicans

Russia Considers Sending Snowden Back To US As a 'Gift' To Trump (nbcnews.com) 294

An anonymous reader quotes a report from NBC News: U.S. intelligence has collected information that Russia is considering turning over Edward Snowden as a "gift" to President Donald Trump -- who has called the NSA leaker a "spy" and a "traitor" who deserves to be executed. That's according to a senior U.S. official who has analyzed a series of highly sensitive intelligence reports detailing Russian deliberations and who says a Snowden handover is one of various ploys to "curry favor" with Trump. A second source in the intelligence community confirms the intelligence about the Russian conversations and notes it has been gathered since the inauguration. Snowden's ACLU lawyer, Ben Wizner, told NBC News they are unaware of any plans that would send him back to the United States. "Team Snowden has received no such signals and has no new reason for concern," Wizner said. Former deputy national security adviser Juan Zarate urged the Trump administration to be cautious in accepting any Snowden offer from Russian President Vladimir Putin. The White House had no comment, but the Justice Department told NBC News it would welcome the return of Snowden, who currently faces federal charges that carry a minimum of 30 years in prison. Putin spokesman Dmitry Peskov said talk about returning Snowden is "nonsense." If he were returned to American soil, Snowden -- a divisive figure in America who is seen by some as a hero and others as treasonous -- would face an administration that has condemned him in the strongest terms.
Security

State-sponsored Hackers Targeting Prominent Journalists, Google Warns (politico.com) 102

State-sponsored hackers are attempting to steal email passwords of a number of prominent journalists, Google has warned. The hackers are suspected to be Russians, reports POLITICO. Some of the journalists who have received such warnings from Google as recent as two-to-three weeks ago include Jonathan Chait of New York Magazine, Julia Ioffe, who recently started at The Atlantic, Ezra Klein of Vox, and CNN's Brian Stelter. From the report: "The fact that all this started right after the election suggests to me that journalists are the next wave to be targeted by state-sponsored hackers in the way that Democrats were during it," said one journalist who got the warning. "I worry that the outcome is going to be the same: Someone, somewhere, is going to get hacked, and then the contents of their Gmail will be weaponized against them -- and by extension all media."
Encryption

Republicans Are Reportedly Using a Self-Destructing Message App To Avoid Leaks (theverge.com) 326

An anonymous reader quotes a report from The Verge: Trump administration members and other Republicans are using the encrypted, self-destructing messaging app Confide to keep conversations private in the wake of hacks and leaks, according to Jonathan Swan and David McCabe at Axios. Axios writes that "numerous senior GOP operatives and several members of the Trump administration" have downloaded Confide, which automatically wipes messages after they're read. One operative told Axios that the app "provides some cover" for people in the party. He ties it to last year's hack of the Democratic National Committee, which led to huge and damaging information dumps of DNC emails leading up to the 2016 election. But besides outright hacks, the source also said he liked the fact that Confide makes it difficult to screenshot messages, because only a few words are shown at a time. That suggests that it's useful not just for reducing paper trails, but for stopping insiders from preserving individual messages -- especially given the steady flow of leaks that have come out since Trump took office. As Axios notes, official White House business is subject to preservation rules, although we don't know much about who's allegedly using Confide and what they're doing with it, so it's not clear whether this might run afoul of those laws. It's also difficult to say how much this is a specifically Republican phenomenon, and how much is a general move toward encryption.
Businesses

Jeff Bezos Talks About Music Streaming, and His Political Ambitions (billboard.com) 70

In a wide-ranging interview with Billboard, Jeff Bezos, founder and CEO of Amazon, Blue Origin, and owner of The Washington Post, talked about music streaming business. He also talked about whether he desires to become the president of the United States. Excerpts from the interview: On music streaming business, being one of the late ones to join the party:Well, here's what I would say: We've been in the music category since 1998. It was the second category we launched after books. Our customers listen to a lot of music and we have a couple of freight trains kind of pulling the business along. One is Prime, and the other is Echo and Alexa.

On the prospect of seeing President Bezos and other political interests: Oh, no. I don't think so. No. I love my life. I love being an inventor. I love Blue Origin, my space company. I love The Washington Post. They are very good, but the Internet transition was difficult for them -- so I've been able to help them on that. But basically... I have a very full life. And I really like it.

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