The FTC is issuing more than $5.6 million in refunds to Ring customers as part of a privacy settlement. The Associated Press reports: In a 2023 complaint, the FTC accused the doorbell camera and home security provider of allowing its employees and contractors to access customers' private videos. Ring allegedly used such footage to train algorithms without consent, among other purposes. Ring was also charged with failing to implement key security protections, which enabled hackers to take control of customers' accounts, cameras and videos. This led to "egregious violations of users' privacy," the FTC noted.

The resulting settlement required Ring to delete content that was found to be unlawfully obtained, establish stronger security protections and pay a hefty fine. The FTC says that it's now using much of that money to refund eligible Ring customers. According to a Tuesday notice, the FTC is sending 117,044 PayPal payments to impacted consumers who had certain types of Ring devices -- including indoor cameras -- during the timeframes that the regulators allege unauthorized access took place. Eligible customers will need to redeem these payments within 30 days, according to the FTC -- which added that consumers can contact this case's refund administrator, Rust Consulting, or visit the FTC's FAQ page on refunds for more information about the process.

The U.S. Court of Appeals for the 2nd Circuit overturned a prior district court decision, lifting the injunction that blocked New York's law mandating that ISPs offer $15 broadband plans to low-income families. Ars Technica reports: The ruling (PDF) is a loss for six trade groups that represent ISPs, although it isn't clear right now whether the law will be enforced. For consumers who qualify for means-tested government benefits, the state law requires ISPs to offer "broadband at no more than $15 per month for service of 25Mbps, or $20 per month for high-speed service of 200Mbps," the ruling noted. The law allows for price increases every few years and makes exemptions available to ISPs with fewer than 20,000 customers.

"First, the ABA is not field-preempted by the Communications Act of 1934 (as amended by the Telecommunications Act of 1996), because the Act does not establish a framework of rate regulation that is sufficiently comprehensive to imply that Congress intended to exclude the states from entering the field," a panel of appeals court judges stated in a 2-1 opinion. Trade groups claimed the state law is preempted by former Federal Communications Commission Chairman Ajit Pai's repeal of net neutrality rules. Pai's repeal placed ISPs under the more forgiving Title I regulatory framework instead of the common-carrier framework in Title II of the Communications Act.

2nd Circuit judges did not find this argument convincing: "Second, the ABA is not conflict-preempted by the Federal Communications Commission's 2018 order classifying broadband as an information service. That order stripped the agency of its authority to regulate the rates charged for broadband Internet, and a federal agency cannot exclude states from regulating in an area where the agency itself lacks regulatory authority. Accordingly, we REVERSE the judgment of the district court and VACATE the permanent injunction."

The free tax filing pilot from the IRS that rolled out in 12 states last month saved filers an estimated $5.6 million in tax preparation fees for federal returns, said IRS Commissioner Danny Werfel. CNBC reports: This season, more than 140,000 taxpayers successfully filed returns using IRS Direct File, a free tax filing pilot from the IRS, according to the U.S. Department of the Treasury and the IRS. Direct File surveyed more than 15,000 users, around 90% of whom rated their experience as "excellent," the agencies reported.

"We have not made a decision about the future of Direct File," Werfel said, noting the agency still needs to analyze data and get feedback from a "wide variety of stakeholders." The IRS plans to release a more detailed report about the Direct File pilot "in the coming days," he added. If Direct File were expanded for the next season, the program could add additional states and tax situations, according to a senior IRS official. The agency expects to decide the future of Direct File later this spring, Werfel said.

The GNOME Foundation, a non-profit organization supporting the GNOME desktop environment, has been operating at a deficit for several years, depleting its financial reserves. Robert McQueen, the foundation's president, has announced plans to increase fundraising efforts in a new blog post.

McQueen adds: As you may be aware, the GNOME Foundation has operated at a deficit (nonprofit speak for a loss -- ie spending more than we've been raising each year) for over three years, essentially running the Foundation on reserves from some substantial donations received 4-5 years ago. The Foundation has a reserves policy which specifies a minimum amount of money we have to keep in our accounts. This is so that if there is a significant interruption to our usual income, we can preserve our core operations while we work on new funding sources. We've now "hit the buffers" of this reserves policy, meaning the Board can't approve any more deficit budgets -- to keep spending at the same level we must increase our income.

Fintech giant Stripe announced on Thursday that it would let customers accept cryptocurrency payments, starting with USDC stablecoins, initially only on Solana, Ethereum and Polygon. TechCrunch reports: This will be the first time that Stripe has taken crypto payments since 2018, when it dropped support for Bitcoin due to it being too unstable. Stripe in 2022 tried its first reentry into the crypto market when it announced payouts (but not payments) in USDC, with Twitter as its marquee customer for the service. Thursday's news has no customer names attached to it.

On Wednesday the company unveiled a long list of other launches, the most significant update being that Stripe, for the very first time, would let customers integrate competing payment providers with Stripe's other financial services tooling. Thursday's nod to expanding crypto support is also part of that bigger strategy to open up its walled garden. A brief timeline of Stripe's dance with crypto underscores the tricky line that Stripe has walked over the years when it comes to cryptocurrency. True to its disruptive roots as a fintech, the company has wanted to be in the middle of the conversation around how blockchain-based technologies will affect financial services. But it runs the risk of subverting its bigger business and positioning as a stable and sensible financial powerhouse if it dabbles too deeply or for too long in periods of instability. The company processed $1 trillion in transactions last year, and it's still growing; it is currently worth $65 billion on paper.

Department of Transportation Secretary Pete Buttigieg announced new rules for the airline industry that will require airlines to automatically give cash refunds to passengers for canceled and significantly delayed flights. They will also require airlines to give cash refunds if your bags are lost and not delivered within 12 hours.

"This is a big day for America's flying public," said Buttigieg at a Wednesday morning news conference. According to Buttigieg, the new rules are the biggest expansion of passenger rights in the department's history. ABC News reports: Airlines can no longer decide how long a delay must be before a refund is issued. Under the new DOT rules, the delays covered would be more than three hours for domestic flights and more than six hours for international flights, the agency said. This includes tickets purchased directly from airlines, travel agents and third-party sites such as Expedia and Travelocity.

The refunds must be issued within seven days, according to the new DOT rules, and must be in cash unless the passenger chooses another form of compensation. Airlines can no longer issue refunds in forms of vouchers or credits when consumers are entitled to receive cash. Airlines will have six months to comply with the new rules.

The DOT said it is also working on rules related to family seating fees, enhancing rights for wheelchair-traveling passengers for safe and dignified travel and mandating compensation and amenities if flights are delayed or canceled by airlines. Buttigieg said the DOT is also protecting airline passengers from being surprised by hidden fees -- a move he estimates will have Americans billions of dollars every year. The DOT rules include that passengers will receive refunds for extra services paid for and not provided, such as Wi-Fi, seat selection or inflight entertainment.

An anonymous reader quotes a report from Ars Technica: Two researchers at the University of California, Davis -- Yanning Li and Alan Jenn -- have determined that nearly two-thirds of [California's] feeder lines don't have the capacity that will likely be needed for car charging. Updating to handle the rising demand might set its utilities back as much as 40 percent of the existing grid's capital cost. Li and Jenn aren't the first to look at how well existing grids can handle growing electric vehicle sales; other research has found various ways that different grids fall short. However, they have access to uniquely detailed data relevant to California's ability to distribute electricity (they do not concern themselves with generation). They have information on every substation, feeder line, and transformer that delivers electrons to customers of the state's three largest utilities, which collectively cover nearly 90 percent of the state's population. In total, they know the capacity that can be delivered through over 1,600 substations and 5,000 feeders.[...]

By 2025, only about 7 percent of the feeders will experience periods of overload. By 2030, that figure will grow to 27 percent, and by 2035 -- only about a decade away -- about half of the feeders will be overloaded. Problems grow a bit more slowly after that, with two-thirds of the feeders overloaded by 2045, a decade after all cars sold in California will be EVs. At that point, total electrical demand will be close to twice the existing capacity. The problems aren't evenly distributed, though. They appear first in high-population areas like the Bay Area. And throughout this period, most of the problems are in feeders that serve residential and mixed-use neighborhoods. The feeders that serve neighborhoods that are primarily business-focused don't see the same coordinated surge in demand that occurs as people get home from work and plug in; they're better able to serve the more erratic use of charging stations at office complexes and shopping centers. In terms of the grid, residential services will need to see their capacity expand by about 16 gigawatts by 2045. Public chargers will need nine gigawatts worth of added capacity by the same point. The one wild card is direct current fast charging. Eliminating fast chargers entirely would reduce the number of feeders that need upgrades by 12 percent. Converting all public stations to DC fast charging, in contrast, would boost that number by 15 percent. So the details of the upgrades that will be needed will be very sensitive to the impatience of EV drivers.

Paying for the necessary upgrades will be pricey, but there's a lot of uncertainty here. Li and Jenn came up with a range of anywhere between $6 billion and $20 billion. They put this in context in two ways. The total capital invested in the existing grid is estimated to be $51 billion, so the cost of updating it could be well over a third of its total value. At the same time, the costs will be spread out over decades and only total up to (at most) three times the grid's annual operation and maintenance costs. So in any one year, the costs shouldn't be crippling. All that might be expected to drive the cost of electricity up. But Li and Jenn suggest that the greater volume of electricity consumption will exert a downward pressure on prices (people will pay more overall but pay somewhat less per unit of electricity). Based on a few economic assumptions, the researchers conclude that this would roughly offset the costs of the necessary grid expansion, so the price per unit of electricity would be largely static. The findings have been published in the journal Proceedings of the National Academy of Sciences (PNAS).

The U.S. publishing industry is driven by celebrity authors and repeat bestsellers, according to testimony from a blocked merger between Penguin Random House and Simon & Schuster. Only 50 authors sell over 500,000 copies annually, with 96% of books selling under 1,000 copies. Publishing houses spend most of their advance money on celebrity books, which along with backlist titles like The Bible, account for the bulk of their revenue and fund less commercially successful books.

An anonymous reader quotes a report from the Washington Post: In sunny California, solar panels are everywhere. They sit in dry, desert landscapes in the Central Valley and are scattered over rooftops in Los Angeles's urban center. By last count, the state had nearly 47 gigawatts of solar power installed -- enough to power 13.9 million homes and provide over a quarter of the Golden State's electricity. But now, the state and its grid operator are grappling with a strange reality: There is so much solar on the grid that, on sunny spring days when there's not as much demand, electricity prices go negative. Gigawatts of solar are "curtailed" -- essentially, thrown away. In response, California has cut back incentives for rooftop solar and slowed the pace of installing panels. But the diminishing economic returns may slow the development of solar in a state that has tried to move to renewable energy. And as other states build more and more solar plants of their own, they may soon face the same problems.

Curtailing solar isn't technically difficult -- according to Paul Denholm, senior research fellow at the National Renewable Energy Laboratory, it's equivalent to flipping a switch for grid operators. But throwing away free power raises electricity prices. It has also undercut the benefits of installing rooftop solar. Since the 1990s, California has been paying owners of rooftop solar panels when they export their energy to the grid. That meant that rooftop solar owners got $0.20 to $0.30 for each kilowatt-hour of electricity that they dispatched. But a year ago, the state changed this system, known as "net-metering," and now only compensates new solar panel owners for how much their power is worth to the grid. In the spring, when the duck curve is deepest, that number can dip close to zero. Customers can get more money back if they install batteries and provide power to the grid in the early evening or morning.

The change has sparked a huge backlash from Californians and rooftop solar companies, which say that their businesses are flagging. Indeed, Wood Mackenzie predicts that California residential solar installations in 2024 will fall by around 40 percent. Some state politicians are now trying to reverse the rule. "Under the CPUC's leadership California is responsible for the largest loss of solar jobs in our nation's history," Bernadette del Chiaro, the executive director of the California Solar and Storage Association, said in a statement referring to California's public utility commission. But experts say that it reflects how the economics of solar are changing in a state that has gone all-in on the technology. [...] To cope, [California's grid operator, known as CAISO] is selling some excess power to nearby states; California is also planning to install additional storage and batteries to hold solar power until later in the afternoon. Transmission lines that can carry electricity to nearby regions will also help -- some of the lost power comes from regions where there simply aren't enough power lines to carry a sudden burst of solar. Denholm says the state is starting to take the steps needed to deal with the glut. "There are fundamental limits to how much solar we can put on the grid before you start needing a lot of storage," Denholm said. "You can't just sit around and do nothing." Further reading: The Energy Institute discusses this problem in a recent blog post.

Since 2020, the residential electricity rates in California have risen by as much as 40% after adjusting for inflation. While there's been "a lot of finger-pointing about the cause of these increases," the authors note that the impact on rates is multiplied when customers install their own generation and buy fewer kilowatts-hours from the grid because those households "contribute less towards all the fixed costs in the system." These fixed costs include: vegetation management, grid hardening, distribution line undergrounding, EV charging stations, subsidies for low income customers, energy efficiency programs, and the poles and wires that we all rely on whether we are taking electricity off the grid or putting it onto the grid from our rooftop PV systems.

"Since those fixed costs still need to be paid, rates go up, shifting costs onto the kWhs still being bought from the grid."

An anonymous reader quotes a report from Ars Technica: Home Assistant, until recently, has been a wide-ranging and hard-to-define project. The open smart home platform is an open source OS you can run anywhere that aims to connect all your devices together. But it's also bespoke Raspberry Pi hardware, in Yellow and Green. It's entirely free, but it also receives funding through a private cloud services company, Nabu Casa. It contains tiny board project ESPHome and other inter-connected bits. It has wide-ranging voice assistant ambitions, but it doesn't want to be Alexa or Google Assistant. Home Assistant is a lot.

After an announcement this weekend, however, Home Assistant's shape is a bit easier to draw out. All of the project's ambitions now fall under the Open Home Foundation, a non-profit organization that now contains Home Assistant and more than 240 related bits. Its mission statement is refreshing, and refreshingly honest about the state of modern open source projects. "We've done this to create a bulwark against surveillance capitalism, the risk of buyout, and open-source projects becoming abandonware," the Open Home Foundation states in a press release. "To an extent, this protection extends even against our future selves -- so that smart home users can continue to benefit for years, if not decades. No matter what comes." Along with keeping Home Assistant funded and secure from buy-outs or mission creep, the foundation intends to help fund and collaborate with external projects crucial to Home Assistant, like Z-Wave JS and Zigbee2MQTT.

Home Assistant's ambitions don't stop with money and board seats, though. They aim to "be an active political advocate" in the smart home field, toward three primary principles:

- Data privacy, which means devices with local-only options, and cloud services with explicit permissions
- Choice in using devices with one another through open standards and local APIs
- Sustainability by repurposing old devices and appliances beyond company-defined lifetimes

Notably, individuals cannot contribute modest-size donations to the Open Home Foundation. Instead, the foundation asks supporters to purchase a Nabu Casa subscription or contribute code or other help to its open source projects. Further reading: The Verge's interview with Home Assistant founder Paulus Schoutsen

An anonymous reader shared this report from CNN: On a slice of the ocean front in west Singapore, a startup is building a plant to turn carbon dioxide from air and seawater into the same material as seashells, in a process that will also produce "green" hydrogen — a much-hyped clean fuel.

The cluster of low-slung buildings starting to take shape in Tuas will become the "world's largest" ocean-based carbon dioxide removal plant when completed later this year, according to Equatic, the startup behind it that was spun out of the University of California at Los Angeles. The idea is that the plant will pull water from the ocean, zap it with an electric current and run air through it to produce a series of chemical reactions to trap and store carbon dioxide as minerals, which can be put back in the sea or used on land... The $20 million facility will be fully operational by the end of the year and able to remove 3,650 metric tons of carbon dioxide annually, said Edward Sanders, chief operating officer of Equatic, which has partnered with Singapore's National Water Agency to construct the plant. That amount is equivalent to taking roughly 870 average passenger cars off the road. The ambition is to scale up to 100,000 metric tons of CO2 removal a year by the end of 2026, and from there to millions of metric tons over the next few decades, Sanders told CNN. The plant can be replicated pretty much anywhere, he said, stacked up in modules "like lego blocks...."

The upfront costs are high but the company says it plans to make money by selling carbon credits to polluters to offset their pollution, as well as selling the hydrogen produced during the process. Equatic has already signed a deal with Boeing to sell it 2,100 metric tons of hydrogen, which it plans to use to create green fuel, and to fund the removal of 62,000 metric tons of CO2.
There's other projects around the world attempting ocean-based carbon renewal, CNN notes. "Other projects include sprinkling iron particles into the ocean to stimulate CO2-absorbing phytoplankton, sinking seaweed into the depths to lock up carbon and spraying particles into marine clouds to reflect away some of the sun's energy." But carbon-removal projects are controversial, criticized for being expensive, unproven at scale and a distraction from policies to cut fossil fuels. And when they involve the oceans — complex ecosystems already under huge strain from global warming — criticisms can get even louder. There are "big knowledge gaps" when it comes to ocean geoengineering generally, said Jean-Pierre Gatusso, an ocean scientist at the Sorbonne University in France. "I am very concerned with the fact that science lags behind the industry," he told CNN.

The co-founder of Silicon Valley-based software testing startup HeadSpin was sentenced Friday to 18 months in prison and a $1 million fine, reports SFGate — for defrauding investors. Lachwani pleaded guilty to two counts of wire fraud and a count of securities fraud in April 2023, after federal prosecutors accused him of, for years, lying to investors about HeadSpin's finances to raise more money. HeadSpin, founded in 2015, grew to a $1.1 billion valuation by 2020 with over $115 million in funding from investors including Google Ventures and Iconiq Capital... He had personally altered invoices, lied to the company accountant and sent slide decks with fraudulent information to investors, [according to the government's 2021 criminal complaint]...

Breyer, per the New York Times, rejected Lachwani's lawyer's argument that because HeadSpin investors didn't end up losing money, he should receive a light sentence. The judge, who often oversees tech industry cases, reportedly said: "If you win, there are no serious consequences — that simply can't be the law." Still, the sentencing was far lighter than it could have been. The government's prosecuting attorneys had asked for a five-year prison term.
The New York Times reported in December that HeadSpin's financial statements had "often arrived months late, if at all, investors said in legal declarations," while the company's financial department "consisted of one external accountant who worked mostly from home using QuickBooks." And the comnpany also had no human resources department or organizational chart... After Manish Lachwani founded the Silicon Valley software start-up HeadSpin in 2015, he inflated the company's revenue numbers by nearly fourfold and falsely claimed that firms including Apple and American Express were customers. He showed a profit where there were losses. He used HeadSpin's cash to make risky trades on tech stocks. And he created fake invoices to cover it all up.

What was especially breathtaking was how easily Mr. Lachwani, now 48, pulled all that off... [HeadSpin] had no chief financial officer, had no human resources department and was never audited. Mr. Lachwani used that lack of oversight to paint a rosier picture of HeadSpin's growth. Even though its main investors knew the start-up's financials were not accurate, according to Mr. Lachwani's lawyers, they chose to invest anyway, eventually propelling HeadSpin to a $1.1 billion valuation in 2020. When the investors pushed Mr. Lachwani to add a chief financial officer and share more details about the company's finances, he simply brushed them off. These details emerged this month in filings in U.S. District Court for the Northern District of California after Mr. Lachwani had pleaded guilty to three counts of fraud in April...

The absence of controls at HeadSpin is part of an increasingly noticeable pattern at Silicon Valley start-ups that have run into trouble. Over the past decade, investors in tech start-ups were so eager to back hot companies that many often overlooked reckless behavior and gave up key controls like board seats, all in the service of fast growth and disruption. Then when founders took the ethos of "fake it till you make it" too far, their investors were often unaware or helpless...

Now, amid a start-up shakeout, more frauds have started coming to light. The founder of the college aid company Frank has been charged, the internet connectivity start-up Cloudbrink has been sued, and the social media app IRL has been investigated and sued. Last month, Mike Rothenberg, a Silicon Valley investor, was found guilty on 21 counts of fraud and money laundering. On Monday, Trevor Milton, founder of the electric vehicle company Nikola, was sentenced to four years in prison for lying about Nikola's technological capabilities.
The Times points out that similarly, FTX only had a three-person board "with barely any influence over the company, tracked its finances on QuickBooks and used a small, little-known accounting firm." And that Theranos had no financial audits for six years.

CNBC visited a small group of bitcoin miners who "set up shop at the site of an extinct volcano" near Kenya's Hell's Gate National Park.

Their mine "consists of a single 500-kilowatt mobile container that, from the outside, looks like a small residential trailer." But what's more interesting is it's operated by a startup called Gridless. (According to its web site Gridless "designs, builds, and operates bitcoin mining sites alongside small-scale renewable energy producers in rural Africa where excess energy is not utilized...") Backed by Jack Dorsey's Block, Gridless electrifies its machines with a mix of solar power and the stranded, wasted energy from a nearby geothermal site. It's one of six mines run by the company in Kenya, Malawi and Zambia, powered by a mix of renewable inputs and working toward a broader mission of securing and decentralizing the bitcoin network... In early 2022, [the three Gridless co-founders] began brainstorming creative solutions for the divide between power generation and capacity, and the lack of access to electricity in Africa. They landed on the idea of bitcoin mining, which could potentially solve a big problem for renewable energy developers by taking their stranded power and spreading it to other parts of the continent.

In Africa, 43% of the population, or roughly 600 million people, lack access to electricity.... Africa is home to an estimated 10 terawatts of solar capacity, 350 gigawatts of hydro and another 110 gigawatts of wind. Some of this renewable energy is being harnessed already, but a lot isn't because building the specialized infrastructure to capture it is expensive. Even with 60% of the best solar resources globally, Africa only has 1% of installed solar PV capacity.

Enter bitcoin miners.

Bitcoin gets a bad rap for the amount of energy it consumes, but it can also help unlock these trapped renewable sources of power. Miners are essentially energy buyers, and co-locating with renewables creates a financial incentive to bolster production. "As often happens, you'll have an overage of power during the day or even at night, and there's nobody to soak that power up," said Hersman. He said his company's 50-kilowatt mining container can "take up whatever is extra throughout the day...." Demand from bitcoin miners on these semi-stranded assets is making renewables in Africa economically viable. The power supplier benefits from selling energy that previously had been discarded, while the energy plants will sometimes lower costs for the customer. At one of the Gridless pilot sites in Kenya, the hydro plant dropped the price of power from 35 cents per kilowatt hour to 25 cents per kWh.

The buildout of capacity is also electrifying households. Gridless says its sites have powered 1,200 houses in Zambia, 1,800 in Malawi and 5,000 in Kenya. The company's mines also have delivered power for containerized cold storage for local farmers, battery charging stations for electric motorcycles and public WiFi points.

The U.S. House of Representatives just passed its long-delayed Ukraine aid bill. But along with it they also approved a bill banning TikTok "if its Chinese owner does not sell the video app," according to NPR: While lawmakers in the House advanced a similar bill last month, this effort is different for two reasons: It is attached to a sweeping foreign aid bill providing support for Ukraine and Israel. And it addresses concerns from some members of the Senate by extending the deadline for TikTok to find a buyer. President Biden supports the effort. That means TikTok being forced to sell, or face a possible ban, is on the fast-track to becoming law. It would mark the first time ever the U.S. government has passed a law that could shut down an entire social media platform, setting the stage for what is expected to be a protracted legal battle... TikTok says it has built a firewall between its headquarters in Los Angeles and its parent company in Beijing, but some reports indicate U.S. user data does still move between the two.

While there has been no evidence made public that Chinese government officials have accessed Americans' information through TikTok, the idea that China has the theoretical ability to weaponize an app used by half of America has been enough to set off an all-out crackdown. In Saturday's vote, 360 Representatives voted in favor of the sell-or-be-banned TikTok bill, while just 58 voted against it.

A software glitch in the "ticket in, cash out" (TICO) machines at Star Casino in Sydney, Australia, saw it inadvertently give away $2.05 million over several weeks. This glitch allowed gamblers to reuse a receipt for slot machine winnings, leading to unwarranted cash payouts which went undetected due to systematic failures in oversight and audit processes. The Register reports: News of the giveaway emerged on Monday at an independent inquiry into the casino, which has had years of compliance troubles that led to a finding that its operators were unsuitable to hold a license. In testimony [PDF] given on Monday to the inquiry, casino manager Nicholas Weeks explained that it is possible to insert two receipts into TICO machines. That was a feature, not a bug, and allowed gamblers to redeem two receipts and be paid the aggregate amount. But a software glitch meant that the machines would return one of those tickets and allow it to be re-used -- the barcode it bore was not recognized as having been paid.

"What occurred was small additional amounts of cash were being provided to customers in circumstances when they shouldn't have received it because of that defect," Weeks told the inquiry. Local media reported that news of the free cash got around and 43 people used the TICO machines to withdraw money to which they were not entitled -- at least one of them a recovering gambling addict who fell off the wagon as the "free" money allowed them to fund their activities. Known abusers of the TICO machines have been charged, and one of those set to face the courts is accused of association with a criminal group. (The first inquiry into The Star, two years ago, found it may have been targeted by organized crime groups.)

An anonymous reader shares a report: A financially motivated criminal hacking group says it has stolen a confidential database containing millions of records that companies use for screening potential customers for links to sanctions and financial crime. The hackers, which call themselves GhostR, said they stole 5.3 million records from the World-Check screening database in March and are threatening to publish the data online.

World-Check is a screening database used for "know your customer" checks (or KYC), allowing companies to determine if prospective customers are high risk or potential criminals, such as people with links to money laundering or who are under government sanctions.The hackers told TechCrunch that they stole the data from a Singapore-based firm with access to the World-Check database, but did not name the firm. A portion of the stolen data, which the hackers shared with TechCrunch, includes individuals who were sanctioned as recently as this year.

State tax collectors, particularly in New York, have intensified their audit efforts on high earners, leveraging artificial intelligence to compensate for a reduced number of auditors. CNBC reports: In New York, the tax department reported 771,000 audits in 2022 (the latest year available), up 56% from the previous year, according to the state Department of Taxation and Finance. At the same time, the number of auditors in New York declined by 5% to under 200 due to tight budgets. So how is New York auditing more people with fewer auditors? Artificial Intelligence.

"States are getting very sophisticated using AI to determine the best audit candidates," said Mark Klein, partner and chairman emeritus at Hodgson Russ LLP. "And guess what? When you're looking for revenue, it's not going to be the person making $10,000 a year. It's going to be the person making $10 million." Klein said the state is sending out hundreds of thousands of AI-generated letters looking for revenue. "It's like a fishing expedition," he said.

Most of the letters and calls focused on two main areas: a change in tax residency and remote work. During Covid many of the wealthy moved from high-tax states like California, New York, New Jersey and Connecticut to low-tax states like Florida or Texas. High earners who moved, and took their tax dollars with them, are now being challenged by states who claim the moves weren't permanent or legitimate. Klein said state tax auditors and AI programs are examining cellphone records to see where the taxpayers spent most of their time and lived most of their lives. "New York is being very aggressive," he said.

An anonymous reader quotes a report from Ars Technica: Federal prosecutors indicted a Nebraska man on charges he perpetrated a cryptojacking scheme that defrauded two cloud providers -- one based in Seattle and the other in Redmond, Washington -- out of $3.5 million. The indictment, filed in US District Court for the Eastern District of New York and unsealed on Monday, charges Charles O. Parks III -- 45 of Omaha, Nebraska -- with wire fraud, money laundering, and engaging in unlawful monetary transactions in connection with the scheme. Parks has yet to enter a plea and is scheduled to make an initial appearance in federal court in Omaha on Tuesday. Parks was arrested last Friday. Prosecutors allege that Parks defrauded "two well-known providers of cloud computing services" of more than $3.5 million in computing resources to mine cryptocurrency. The indictment says the activity was in furtherance of a cryptojacking scheme, a term for crimes that generate digital coin through the acquisition of computing resources and electricity of others through fraud, hacking, or other illegal means.

Details laid out in the indictment underscore the failed economics involved in the mining of most cryptocurrencies. The $3.5 million of computing resources yielded roughly $1 million worth of cryptocurrency. In the process, massive amounts of energy were consumed. [...] Prosecutors didn't say precisely how Parks was able to trick the providers into giving him elevated services, deferring unpaid payments, or failing to discover the allegedly fraudulent behavior. They also didn't identify either of the cloud providers by name. Based on the details, however, they are almost certainly Amazon Web Services and Microsoft Azure. If convicted on all charges, Parks faces as much as 30 years in prison.

An anonymous reader quotes a report from the Washington Post: The Biden administration marked the close of tax season Monday by announcing it had met a modest goal of getting at least 100,000 taxpayers to file through the Internal Revenue Service's new tax software, Direct File -- an alternative to commercial tax preparers. Although the government had billed Direct File as a small-scale pilot, it still represents one of the most significant experiments in tax filing in decades -- a free platform letting Americans file online directly to the government. Monday's announcement aside, though, Direct File's success has proven highly subjective.

By and large, people who tried the Direct File software -- which looks a lot like TurboTax or other commercial tax software, with its question-and-answer format -- gave it rave reviews. "Against all odds, the government has created an actually good piece of technology," a writer for the Atlantic marveled, describing himself as "giddy" as he used the website to chat live with a helpful IRS employee. The Post's Tech Friend columnist Shira Ovide called it "visible proof that government websites don't have to stink." Online, people tweeted praise after filing their taxes, like the user who called it the "easiest tax experience of my life."

While the users might be a happy group, however, there weren't many of them compared to other tax filing options -- and their positive reviews likely won't budge the opposition that Direct File has faced from tax software companies and Republicans from the outset. These headwinds will likely continue if the IRS wants to renew it for another tax season. The program opened to the public midway through tax season, when many low-income filers had already claimed their refunds -- and was restricted to taxpayers in 12 states, with only four types of income (wages, interest, Social Security and unemployment). But it gained popularity as tax season went on: The Treasury Department said more than half of the total users of Direct File completed their returns during the last week.

AT&T, Charter, Comcast and Verizon are quietly trying to weaken a $42.5 billion federal program to improve internet access across the nation, aiming to block strict new rules that would require them to lower their poorest customers' monthly bills in exchange for a share of the federal aid. From a report: In state after state, the telecom firms have blasted the proposed price cuts as illegal -- forcing regulators in California, New York, South Carolina, Tennessee, Virginia and elsewhere to rethink, scale back or abandon their plans to condition the federal funds on financial relief for consumers. The lobbying campaign threatens to undermine the largest burst of money to upgrade the country's internet service in U.S. history. Enacted by President Biden as part of a sprawling 2021 infrastructure law, the funds are intended to deliver speedy and affordable broadband to the final unserved pockets of America by 2030 -- a goal that the White House likens to the federal campaign nearly a century ago to electrify the nation's heartland.