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United States

The US is Right To Target TikTok, Says Vinod Khosla (ft.com) 90

Vinod Khosla, the founder of venture capital firm Khosla Ventures, opines on the bill that seeks to ban TikTok or force its parent firm to divest the U.S. business: Even if one could argue that this bill strikes at the First Amendment, there is legal precedent for doing so. In 1981, Haig vs Agee established that there are circumstances under which the government can lawfully impinge upon an individual's First Amendment rights if it is necessary to protect national security and prevent substantial harm. TikTok and the AI that can be channelled through it are national and homeland security issues that meet these standards.

Should this bill turn into law, the president would have the power to force any foreign-owned social media to be sold if US intelligence agencies deem them a national security threat. This broader scope should protect against challenges that this is a bill of attainder. Similar language helped protect effective bans on Huawei and Kaspersky Lab. As for TikTok's value as a boon to consumers and businesses, there are many companies that could quickly replace it. In 2020, after India banned TikTok amid geopolitical tensions between Beijing and New Delhi, services including Instagram Reels, YouTube Shorts, MX TakaTak, Chingari and others filled the void.Â

Few appreciate that TikTok is not available in China. Instead, Chinese consumers use Douyin, the sister app that features educational and patriotic videos, and is limited to 40 minutes per day of total usage. Spinach for Chinese kids, fentanyl -- another chief export of China's -- for ours. Worse still, TikTok is a programmable fentanyl whose effects are under the control of the CCP.

The Courts

Cox Plans To Take Piracy Liability Battle To the Supreme Court (torrentfreak.com) 70

An anonymous reader quotes a report from TorrentFreak: Cox Communications doesn't believe that ISPs should be held liable for the activities of their pirating subscribers. After a disappointing verdict from a Virginia jury and an unsatisfactory outcome at the Court of Appeals, the internet provider now intends to escalate the matter to the Supreme Court. If the present verdict stands, innocent people risk losing their Internet access, the ISP notes. [...] That's notable, as it would be the first time that a "repeat infringer" case ends up at the highest court United States. Cox asked the court of appeals to also stay its mandate pending its Supreme Court application, as this could steer the legal battle in yet another direction.

According to Cox, the Supreme Court has substantial reasons to take on the case. For one, there are currently conflicting court of appeals rulings on the "material contribution" aspect of copyright infringement. The Supreme Court could give more clarity on when a service, with a myriad of lawful uses, can be held liable for infringers. In addition, Cox also cites the recent 'Twitter vs. Taamneh' Supreme Court ruling, which held that social media platforms aren't liable for terrorists who use their network. While that's not a copyright case, it's relevant for the secondary liability question, the ISP argues. "Though Twitter was not a copyright case, it confronted a directly analogous theory of secondary liability: that social-media platforms, including Twitter and YouTube, could be liable for continuing to provide services to those they knew were using them for illegal purposes," Cox writes.

Finally, Cox notes that the Supreme Court should hear the case because it deals with an issue that's 'exceptionally important' to ISPs as well as the public. If the present verdict stands, Internet providers may be much more likely to terminate Internet access, even if the subscriber is innocent. "This Court's material-contribution standard provides powerful incentives for ISPs of all stripes to swiftly terminate internet services that have been used to infringe -- no matter the universe of lawful uses to which those services are put, or the consequences to innocent, non-infringing people who also use those services. "That is why a chorus of amici urged this Court not to adopt this standard at the panel and en banc stages, and will likely urge the Supreme Court to grant review as well," Cox adds, referring to the support it received from third-parties previously.
"Cox hasn't filed a writ of certiorari yet and still has time, as it's due June 17, 2024," notes TorrentFreak. "The intention to go to the Supreme Court would be another reason to halt the new damages trial, according to Cox, but the court of appeals rejected the request."

"This means that the new damages trial can start, even if the case is still pending at the Supreme Court. However, it's clear that this legal battle is far from over yet."
AI

Texas Will Use Computers To Grade Written Answers On This Year's STAAR Tests 41

Keaton Peters reports via the Texas Tribune: Students sitting for their STAAR exams this week will be part of a new method of evaluating Texas schools: Their written answers on the state's standardized tests will be graded automatically by computers. The Texas Education Agency is rolling out an "automated scoring engine" for open-ended questions on the State of Texas Assessment of Academic Readiness for reading, writing, science and social studies. The technology, which uses natural language processing technology like artificial intelligence chatbots such as GPT-4, will save the state agency about $15-20 million per year that it would otherwise have spent on hiring human scorers through a third-party contractor.

The change comes after the STAAR test, which measures students' understanding of state-mandated core curriculum, was redesigned in 2023. The test now includes fewer multiple choice questions and more open-ended questions -- known as constructed response items. After the redesign, there are six to seven times more constructed response items. "We wanted to keep as many constructed open ended responses as we can, but they take an incredible amount of time to score," said Jose Rios, director of student assessment at the Texas Education Agency. In 2023, Rios said TEA hired about 6,000 temporary scorers, but this year, it will need under 2,000.

To develop the scoring system, the TEA gathered 3,000 responses that went through two rounds of human scoring. From this field sample, the automated scoring engine learns the characteristics of responses, and it is programmed to assign the same scores a human would have given. This spring, as students complete their tests, the computer will first grade all the constructed responses. Then, a quarter of the responses will be rescored by humans. When the computer has "low confidence" in the score it assigned, those responses will be automatically reassigned to a human. The same thing will happen when the computer encounters a type of response that its programming does not recognize, such as one using lots of slang or words in a language other than English.
"In addition to 'low confidence' scores and responses that do not fit in the computer's programming, a random sample of responses will also be automatically handed off to humans to check the computer's work," notes Peters. While similar to ChatGPT, TEA officials have resisted the suggestion that the scoring engine is artificial intelligence. They note that the process doesn't "learn" from the responses and always defers to its original programming set up by the state.
Japan

'Social Order Could Collapse' in AI Era, Two Top Japan Companies Say (wsj.com) 116

Japan's largest telecommunications company and the country's biggest newspaper called for speedy legislation to restrain generative AI, saying democracy and social order could collapse if AI is left unchecked. From a report: Nippon Telegraph and Telephone, or NTT, and Yomiuri Shimbun Group Holdings made the proposal in an AI manifesto to be released Monday. Combined with a law passed in March by the European Parliament restricting some uses of AI, the manifesto points to rising concern among American allies about the AI programs U.S.-based companies have been at the forefront of developing.

The Japanese companies' manifesto, while pointing to the potential benefits of generative AI in improving productivity, took a generally skeptical view of the technology. Without giving specifics, it said AI tools have already begun to damage human dignity because the tools are sometimes designed to seize users' attention without regard to morals or accuracy. Unless AI is restrained, "in the worst-case scenario, democracy and social order could collapse, resulting in wars," the manifesto said. It said Japan should take measures immediately in response, including laws to protect elections and national security from abuse of generative AI.

Transportation

Elon Musk Says Tesla Will Unveil Its Robotaxi on August 8 (cnbc.com) 154

The San Francisco Chronicle reports that Tesla "is poised to roll out its version of a robotaxi later this year, according to CEO Elon Musk." ("Musk made the announcement on social media saying 'Tesla Robotaxi unveil on 8/8.' His cryptic post contained no other details about the forthcoming line of autonomous vehicles.")

Electrek thinks they know what it'll look like. "Through Walter Issacson's approved biography of Musk, we learned that Tesla Robotaxi will be 'Cybertruck-like'."

8/8 (of the year 2024) would be a Thursday — although CNBC adds one additional clarification: At Tesla, "unveil" dates do not predict a near-future date for a commercial release of a new product. For example, Tesla unveiled its fully electric heavy-duty truck, the Semi, in 2017 and did not begin deliveries until December 2022. It still produces and sells very few Semis to this day.
"Tesla shares rose over 3% in extended trading after Musk's tweet."
China

China Will Use AI To Disrupt Elections in the US, South Korea and India, Microsoft Warns (theguardian.com) 157

China will attempt to disrupt elections in the US, South Korea and India this year with artificial intelligence-generated content after making a dry run with the presidential poll in Taiwan, Microsoft has warned. From a report: The US tech firm said it expected Chinese state-backed cyber groups to target high-profile elections in 2024, with North Korea also involved, according to a report by the company's threat intelligence team published on Friday. "As populations in India, South Korea and the United States head to the polls, we are likely to see Chinese cyber and influence actors, and to some extent North Korean cyber actors, work toward targeting these elections," the report reads.

Microsoft said that "at a minimum" China will create and distribute through social media AI-generated content that "benefits their positions in these high-profile elections." The company added that the impact of AI-made content was minor but warned that could change. "While the impact of such content in swaying audiences remains low, China's increasing experimentation in augmenting memes, videos and audio will continue -- and may prove effective down the line," said Microsoft. Microsoft said in the report that China had already attempted an AI-generated disinformation campaign in the Taiwan presidential election in January. The company said this was the first time it had seen a state-backed entity using AI-made content in a bid to influence a foreign election.

UPDATE: Last fall, America's State Department "accused the Chinese government of spending billions of dollars annually on a global campaign of disinformation," reports the Wall Street Journal: In an interview, Tom Burt, Microsoft's head of customer security and trust, said China's disinformation operations have become much more active in the past six months, mirroring rising activity of cyberattacks linked to Beijing. "We're seeing them experiment," Burt said. "I'm worried about where it might go next."
Network

Hospital Network Admin Used Fake Identity For 35 Years (thegazette.com) 88

An anonymous reader writes: Could you imagine discovering that your identity had been used to take out fraudulent loans and when you tried to resolve the issue by providing your state ID and Social Security card you were instead arrested, charged with multiple felonies, jailed for over a year, incarcerated in a mental hospital and given psychotropic drugs, eventually to be released with a criminal record and a judge's order that you could no longer use your real name? As dystopian as this might sound, it actually happened. And it was only after the victim learned his oppressor worked for The University of Iowa Hospital and contacted their security department was the investigation taken seriously leading to the perpetrator's arrest. The Gazette reports: Matthew David Keirans, 58, was convicted of one count of false statement to a National Credit Union Administration insured institution -- punishable by up to 30 years in federal prison -- and one count of aggravated identity theft -- punishable by up to two years in federal prison. Keirans worked as a systems architect in the hospital's IT department from June 28, 2013 to July 20, 2023, when he was terminated for misconduct related to the identity theft investigation. Keirans worked at the hospital under the name William Donald Woods, an alias he had been using since about 1988, when he worked with the real William Woods at a hot dog cart in Albuquerque, N.M. [...] By 2013, Keirans had moved to eastern Wisconsin. He started his IT job with UI Hospitals and worked remotely. He earned more than $700,000 in his 10 years working for the hospital. In 2023, his salary was $140,501, according to the hospital.

In 2019, the real William Woods was homeless, living in Los Angeles. He went to a branch of the national bank and explained that he recently discovered someone was using his credit and had accumulated a lot of debt. Woods didn't want to pay the debt and asked to know the account numbers for any accounts he had open at the bank so he could close them. Woods gave the bank employee his real Social Security card and an authentic California Identification card, which matched the information the bank had on file. Because there was a large amount of money in the accounts, the bank employee asked Woods a series of security questions that he was unable to answer. The bank employee called Keirans, whose the phone number was connected to the accounts. He answered the security questions correctly and said no one in California should have access to the accounts. The employee called the Los Angeles Police Department, and officers spoke with Woods and Keirans. Keirans faxed the Los Angeles officers a copy of Woods' Social Security card and birth certificate, as well as a Wisconsin driver's license Keirans had acquired under Woods' name. The driver's license had the name William David Woods -- David is Keirans' real middle name -- rather than William Donald Woods. When questioned, Keiran told an LAPD officer he sometimes used David as a middle name, but his real name was William Donald Woods. The real Woods was arrested and charged with identity theft and false impersonation, under a misspelling of Keirans' name: Matthew Kierans.

Because Woods continued to insist, throughout the judicial process, that he was William Woods and not Matthew Kierans, a judge ruled in February 2020 that he was not mentally competent to stand trial and he was sent to a mental hospital in California, where he received psychotropic medication and other mental health treatment. In March 2021, Woods pleaded no contest to the identity theft charges -- meaning he accepted the conviction but did not admit guilt. He was sentenced to two years imprisonment with credit for the two years he already served in the county jail and the hospital and was released. He was also ordered to pay $400 in fines and to stop using the name William Woods. He did not stop. Woods continued to attempt to regain his identity by filing customer disputes with financial organizations in an attempt to clear his credit report. He also reached out to multiple law enforcement agencies, including the Hartland Police Department in Wisconsin, where Keirans lived. Woods eventually discovered where Keirans was working, and in January 2023 he reached out to the University of Iowa Hospitals' security department, who referred his complaint to the University of Iowa Police Department.

University of Iowa Police Detective Ian Mallory opened an investigation into the case. Mallory found the biological father listed on Woods' birth certificate -- which both Woods and Keirans had sent him an official copy of -- and tested the father's DNA against Woods' DNA. The test proved Woods was the man's son. On July 17, 2023, Mallory interviewed Keirans. He asked Keirans what his father's name was, and Keirans accidentally gave the name of his own adoptive father. Mallory then confronted Keirans with the DNA evidence, and Keirans responded by saying, "my life is over" and "everything is gone." He then confessed to the prolonged identity theft, according to court documents.
The full story can be ready via The Gazette.
The Almighty Buck

Traders Are Betting Millions That Trump Media 'Meme Stock' Will Tumble (nytimes.com) 151

Many investors are lining up to bet on the collapse of former President Donald J. Trump's social media company, Trump Media & Technology Group Corp., which made its stock market debut last week under the ticker "DJT." The stock has been called the "mother of all meme stocks" since it is highly volatile and there are no fundamental underpinnings. It's being valued at roughly 1,600 times its annual revenue, at Wednesday's closing price. "By comparison, the stock of Facebook's owner trades at about eight times revenues, and Google's owner trades at six times," notes Fast Company. The New York Times reports: Trump Media is the most "shorted" special purpose acquisition vehicle in the country, according to the financial data company S3 Partners. Short-sellers bet that the price of a stock will fall. They do that by borrowing shares of a company and selling them into the market, hoping to buy them back later at a lower price, before returning the shares to the lender and pocketing the difference as profit. The demand to short Trump Media, the parent company of the social media platform Truth Social, is so great that stock lenders can charge enormous fees, making it hard for short-sellers to turn a profit unless the shares fall significantly. Still, there is a lot of interest in taking the bet. "They are looking for this stock to crater and crater very quickly," said Ihor Dusaniwsky, managing director of predictive analytics at S3. Last month, traders lost $126 million betting against Trump Media, according to S3.

On Monday, Trump Media published updated financial information, revealing little revenue, large losses and a statement from the company's independent auditor expressing "substantial doubt" about its financial viability. This appeared to galvanize investors betting against the company, as the stock slipped from its highs. But short-sellers are finding it difficult and costly to trade in Trump Media. There are roughly 137 million shares in the company, and only around five million of those are available to short-sellers. Mr. Trump owns about 60 percent of shares, and company executives also hold a chunk of the stock. Company insiders tend not to lend their shares to short-sellers. Big asset managers like BlackRock, Vanguard and State Street, which regularly lend out shares, are not major holders of Trump Media, further crimping the supply.

According to S3, 4.9 million of the roughly five million available shares are already on loan. As with any loan, when share owners lend their stock to a short-seller, they charge a fee, usually expressed as an annual interest rate on the stock's current value. Typically, the fee for borrowing stock is a fraction of a percentage point. For Trump Media, it has risen to 550 percent, Mr. Dusaniwsky said. Trump Media's stock currently trades at around $50. That means that shorting it for a month would cost more than $20 per share. For a short-seller to break even, the stock price would have to fall by almost half by early May.

There is another wrinkle, too. One large broker said much of the short trading was not an outright bet against Trump Media. Since the advent of meme-stock trading and the vilification of short-sellers that win only if popular companies lose, large investors are wary of making such trades. Instead, the current trade driving demand is designed to capture the difference between DJT's stock price and outstanding "warrants," which will give the owners the right to new stock at a fixed price as long as regulators approve the new shares. Partly because of that uncertainty, those warrants currently trade below $19, with a list of hedge funds as recent holders. Even after the high cost to borrow stock is accounted for, they are still able to profit from the $30 difference between existing stock and what the warrants are worth, assuming the warrants become registered as shares.

Social Networks

President Biden Is Now Posting Into the Fediverse (theverge.com) 75

President Joe Biden has become the first sitting U.S. president to post on a decentralized networking protocol. As reported by The Verge, President Biden's Threads account "has begun using Meta's ActivityPub integration," which allows for content, data, and followers to be ported between networks -- the basis that makes up the "fediverse." From the report: The account turning on fediverse posting comes only a couple of weeks after Threads rolled out its beta ActivityPub integration for users in the US, Canada, and Japan. Biden may not be able to see replies and follows as they pour in from the fediverse -- and with some servers blocking connections to Meta, not everyone there will be able to see his posts -- as those features weren't part of Threads' integration when it opened up beta testing last month. But his posts are available, and he'll see likes coming in from there. Or whoever is running the Presidential Threads account will, anyway.
Social Networks

TikTok Is Bringing Its Dedicated STEM Feed To Europe (techcrunch.com) 13

As political pressure mounts, TikTok says it's committed to fostering educational content on its app. "The company announced on Tuesday that it's expanding its dedicated STEM feed across Europe, starting in the U.K. and Ireland, after first launching it in the U.S. last year," reports TechCrunch. From the report: The STEM feed will begin to automatically appear alongside the "For You" and "Following" feeds for users under the age of 18. Users above the age of 18 can enable the STEM feed via the app's "content preferences" settings. The feed includes English-speaking content with auto-translate subtitles. TikTok says that since launching the feed in the U.S. last year, 33% of users have the STEM feed enabled and a third of teens go to the STEM feed every week. The app has seen a 24% growth in STEM-related content in the U.S. since the feed launched. Over the past three years, almost 15 million STEM-related videos have been published on the app globally.

The company is expanding its partnerships with Common Sense Networks and Poynter to assess all of the content appearing on the STEM feed. Common Sense Networks will examine the content to ensure it's appropriate for the STEM feed, while Poynter will assess the reliability of the information. Content that doesn't pass both of these checkpoints will not be eligible for the STEM feed.

Advertising

Discord To Start Showing Ads This Week After History of Shunning Them (pymnts.com) 70

Starting this week, Discord will show ads on the site from video game companies, some of which will offer users gifts for carrying out in-game tasks. According to the Wall Street Journal, Discord said users will be able to turn off the ads in their settings. From a report: The sources said Discord aims to hire more than a dozen ad sales people. WSJ said the addition of ads marks a pivot for Discord, whose CEO Jason Citron has repeatedly said the company would not rely on advertisers the way platforms like Facebook and Instagram do.
Businesses

Reddit's Shares Plummet Almost 25% in Two Days, Dropping Below Its First Day's Close (cnbc.com) 96

Last Monday shares of Reddit's stock soared 30%, reports CNBC — and then another 8.8% on Tuesday.

But the moves happened "even after New Street Research issued a neutral rating on the company" — and by the end of the week, CNBC was reporting that "Reddit shares are plummeting..." Shares closed at $49.32, ending the week below their closing price on Reddit's first day of trading on the New York Stock Exchange [on March 21st, when they closed at $50.44 ]... Stock markets are closed on Good Friday.

Reddit shares began their downward spiral on Wednesday, when they sank about 11% to $57.75 at market close. That day, Hedgeye Risk Management described Reddit's stock as "grossly overvalued" in a report cited by Bloomberg News, adding the company was on the firm's "short bench."

The article notes Reddit's CEO sold 500,000 shares in the company — nearly 40% of his holdings — which Ben Silverman, vice president of research at Verity, told CNBC was expected — while Reddit's COO sold another 514,000 shares.

"There's always a bit of a disconnect," Silverman said in the interview, because bringing a company public "is not just to generate liquidity for the company itself so that it can expand and grow. In these situations, it often allows insiders to cash out to generate liquidity.

"And that's something investors have to consider here. If the prospects are so bright, why are insiders selling?"
Medicine

America's FDA Forced to Settle 'Groundless' Lawsuit Over Its Ivermectin Warnings (msn.com) 350

As a department of America's federal Health agency, the Food and Drug Administration is responsible for public health rules, including prescription medicines. And the FDA "has not changed its position that currently available clinical trial data do not demonstrate that ivermectin is effective against COVID-19," they confirmed to CNN this week. "The agency has not authorized or approved ivermectin for use in preventing or treating COVID-19."

But there was also a lawsuit. In "one of its more popular pandemic-era social media campaigns," the agency tweeted out "You are not a horse. You are not a cow. Seriously, y'all. Stop it." The post attracted nearly 106,000 likes — and over 46,000 reposts, and was followed by another post on Instagram. "Stop it with the #ivermectin. It's not authorized for treating #COVID."

Los Angeles Times business columnist Michael Hiltzik writes that the posts triggered a "groundless" lawsuit: It was those latter two lines that exercised three physicians who had been prescribing ivermectin for patients. They sued the FDA in 2022, asserting that its advisory illegally interfered with the practice of medicine — specifically with their ability to continue prescribing the drug. A federal judge in Texas threw out their case, but the 5th Circuit Court of Appeals — the source of a series of chuckleheaded antigovernment rulings in recent years — reinstated it last year, returning it to the original judge for reconsideration.

Now the FDA has settled the case by agreeing to delete the horse post and two similar posts from its accounts on the social media platforms X, LinkedIn and Facebook. The agency also agreed to retire a consumer advisory titled "Why You Should Not Use Ivermectin to Treat or Prevent COVID-19." In defending its decision, the FDA said it "has chosen to resolve this lawsuit rather than continuing to litigate over statements that are between two and nearly four years old."

That sounds reasonable enough, but it's a major blunder. It leaves on the books the 5th Circuit's adverse ruling, in which a panel of three judges found that the FDA's advisory crossed the line from informing consumers, which they said is all right, to recommending that consumers take some action, which they said is not all right... That's a misinterpretation of the law and the FDA's actions, according to Dorit Rubinstein Reiss of UC College of the Law in San Francisco. "The FDA will seek to make recommendations against the misuse of products in the future, and having that decision on the books will be used to litigate against it," she observed after the settlement.

"A survey by Boston University and the University of Michigan estimated that Medicare and private insurers had wasted $130 million on ivermectin prescriptions for COVID in 2021 alone."
Facebook

Meta Used Spyware to Access Its Users' Activities on Rival Platforms (observer.com) 32

New documents from a class action against Meta "reveal some of the specific ways it tackled rivals in recent years," reports the Observer.

"One of them was using software made by a mobile data analytics company called Onavo in 2016 to access user activities on Snapchat, and eventually Amazon and YouTube, too." Facebook acquired Onavo in 2013 and shut it down in 2019 after a TechCrunch report revealed that the company was paying teenagers to use the software to collect user data.

In 2020, two Facebook users filed a class action lawsuit in the U.S. District Court for the Northern District of California against Meta, then called Facebook, alleging the company engaged in anticompetitive practices and exploited user data. In 2023, the plaintiffs' attorney Brian J. Dunne submitted documents listing how Facebook used Onavo's software to spy on competitors, including Snapchat. According to the documents, made public this week, the Onavo team pitched and launched a project codenamed "Ghostbusters" — in reference to the Snapchat logo — where they developed "kits that can be installed on iOS or Android that intercept traffic for specific sub-domains," allowing them "to read what would otherwise be encrypted traffic so we can measure in-app usage."

The documents also included a presentation from the Onavo team to Mark Zuckerberg showing that they had the ability to track "detailed in-app activity" by "parsing Snapchat analytics collected from incentivized participants in Onavo's program...." The technology was used to do the same to YouTube from 2017 to 2018 and Amazon in 2018, according to the documents. "The intended and actual result of this program was to harm competition, including Facebook's then-nascent Social Advertising competitor Snapchat," the document alleged.

AT&T

AT&T Says Data From 73 Million Customers Has Leaked Onto the Dark Web (cnn.com) 21

Personal data from 73 million AT&T customers has leaked onto the dark web, reports CNN — both current and former customers.

AT&T has launched an investigation into the source of the data leak... In a news release Saturday morning, the telecommunications giant said the data was "released on the dark web approximately two weeks ago," and contains information such as account holders' Social Security numbers. ["The information varied by customer and account," AT&T said in a statement, " but may have included full name, email address, mailing address, phone number, social security number, date of birth, AT&T account number and passcode."]

"It is not yet known whether the data ... originated from AT&T or one of its vendors," the company added. "Currently, AT&T does not have evidence of unauthorized access to its systems resulting in exfiltration of the data set."

The data seems to have been from 2019 or earlier. The leak does not appear to contain financial information or specifics about call history, according to AT&T. The company said the leak shows approximately 7.6 million current account holders and 65.4 million former account holders were affected.

CNN says the first reports of the leak came two weeks ago from a social media account claiming "the largest collection of malware source code, samples, and papers. Reached for a comment by CNN, AT&T had said at the time that "We have no indications of a compromise of our systems."

AT&T's web site now includes a special page with an FAQ — and the tagline that announces "We take cybersecurity very seriously..."

"It has come to our attention that a number of AT&T passcodes have been compromised..."

The page points out that AT&T has already reset the passcodes of "all 7.6 million impacted customers." It's only further down in the FAQ that they acknowledge that the breach "appears to be from 2019 or earlier, impacting approximately 7.6 million current AT&T account holders and 65.4 million former account holders." Our internal teams are working with external cybersecurity experts to analyze the situation... We encourage customers to remain vigilant by monitoring account activity and credit reports. You can set up free fraud alerts from nationwide credit bureaus — Equifax, Experian, and TransUnion. You can also request and review your free credit report at any time via Freecreditreport.com...

We will reach out by mail or email to individuals with compromised sensitive personal information and offering complimentary identity theft and credit monitoring services... If your information was impacted, you will be receiving an email or letter from us explaining the incident, what information was compromised, and what we are doing for you in response.

Businesses

WSJ: 'America Made a Huge Bet On Sports Gambling. The Backlash Is Here' (msn.com) 75

In 2018 the U.S. Supreme Court overturned the outlawing of sports betting in America.

But the Wall Street Journal reports that since then all the major professional sports bodies "now realize just how much they have to lose as the new era unfolds." "All it takes is for a reasonable fan to go, 'Am I just watching theater, or is this actually sport?' for the credibility of a sport to start crumbling,'" said Declan Hill, an expert on match fixing at the University of New Haven.

Since the prohibition on sports gambling was lifted, leagues that had once viewed betting as an existential threat to their integrity scrambled to partner with gambling companies and brought them into the tent.... The NBA itself also announced a new feature designed to mesh the betting experience with live action: Fans watching games on League Pass, the flagship streaming platform, would be able to opt in to view betting odds on the app's interface and click through to place wagers... Cleveland Cavaliers head coach J.B. Bickerstaff said that gambling had "gone too far... I personally have had my own instances with some of the sports gamblers," he added, "where they got my telephone number, were sending me crazy messages about where I live, and my kids and all that stuff."

NBA spokesman Mike Bass said that instances of reported harassment related to sports betting are investigated. Then, just days after Haliburton and Bickerstaff's complaints, the NBA found itself grappling with a new case... The league is investigating suspicious activity around [Toronto Raptors forward Jontay] Porter, after app users placed sizable wagers that his totals for points, rebounds and assists in a pair of games would all come in under the lines set by oddsmakers. When Porter's numbers fell below those marks and the bets paid out, it raised a red flag signaling possible irregularities....

The NCAA has turned to state legislatures to impose regulations that would take single players out of gamblers' crosshairs. The group is lobbying to ban player-specific proposition bets that aren't directly related to the final score of the game — the exact kind of wagers at the center of the Porter situation in the NBA

After noticing "the gambling-related negativity taking over his social-media feeds," pro basketball player Tyrese Haliburton gave the Journal his own assessment of how it's affecting the fan base.

"To half the world, I'm just helping them make money on DraftKings."

Thanks to long-time Slashdot reader schwit1 for sharing the article.
Government

Do Age Verification Laws Drag Us Back to the Dark Ages of the Internet? (404media.co) 159

404 Media claims to have identified "the fundamental flaw with the age verification bills and laws" that have already passed in eight state legislatures (with two more taking effect in July): "the delusional, unfounded belief that putting hurdles between people and pornography is going to actually prevent them from viewing porn."

They argue that age verification laws "drag us back to the dark ages of the internet." Slashdot reader samleecole shared this excerpt: What will happen, and is already happening, is that people — including minors — will go to unmoderated, actively harmful alternatives that don't require handing over a government-issued ID to see people have sex. Meanwhile, performers and companies that are trying to do the right thing will suffer....

The legislators passing these bills are doing so under the guise of protecting children, but what's actually happening is a widespread rewiring of the scaffolding of the internet. They ignore long-established legal precedent that has said for years that age verification is unconstitutional, eventually and inevitably reducing everything we see online without impossible privacy hurdles and compromises to that which is not "harmful to minors." The people who live in these states, including the minors the law is allegedly trying to protect, are worse off because of it. So is the rest of the internet.

Yet new legislation is advancing in Kentucky and Nebraska, while the state of Kansas just passed a law which even requires age-verification for viewing "acts of homosexuality," according to a report: Websites can be fined up to $10,000 for each instance a minor accesses their content, and parents are allowed to sue for damages of at least $50,000. This means that the state can "require age verification to access LGBTQ content," according to attorney Alejandra Caraballo, who said on Threads that "Kansas residents may soon need their state IDs" to access material that simply "depicts LGBTQ people."
One newspaper opinion piece argues there's an easier solution: don't buy your children a smartphone: Or we could purchase any of the various software packages that block social media and obscene content from their devices. Or we could allow them to use social media, but limit their screen time. Or we could educate them about the issues that social media causes and simply trust them to make good choices. All of these options would have been denied to us if we lived in a state that passed a strict age verification law. Not only do age verification laws reduce parental freedom, but they also create myriad privacy risks. Requiring platforms to collect government IDs and face scans opens the door to potential exploitation by hackers and enemy governments. The very information intended to protect children could end up in the wrong hands, compromising the privacy and security of millions of users...

Ultimately, age verification laws are a misguided attempt to address the complex issue of underage social media use. Instead of placing undue burdens on users and limiting parental liberty, lawmakers should look for alternative strategies that respect privacy rights while promoting online safety.

This week a trade association for the adult entertainment industry announced plans to petition America's Supreme Court to intervene.
Government

Can Apps Turn Us Into Unpaid Lobbyists? (msn.com) 73

"Today's most effective corporate lobbying no longer involves wooing members of Congress..." writes the Wall Street Journal. Instead the lobbying sector "now works in secret to influence lawmakers with the help of an unlikely ally: you." [Lobbyists] teamed up with PR gurus, social-media experts, political pollsters, data analysts and grassroots organizers to foment seemingly organic public outcries designed to pressure lawmakers and compel them to take actions that would benefit the lobbyists' corporate clients...

By the middle of 2011, an army of lobbyists working for the pillars of the corporate lobbying establishment — the major movie studios, the music industry, pharmaceutical manufacturers and the U.S. Chamber of Commerce — were executing a nearly $100 million campaign to win approval for the internet bill [the PROTECT IP Act, or "PIPA"]. They pressured scores of lawmakers to co-sponsor the legislation. At one point, 99 of the 100 members of the U.S. Senate appeared ready to support it — an astounding number, given that most bills have just a handful of co-sponsors before they are called up for a vote. When lobbyists for Google and its allies went to Capitol Hill, they made little headway. Against such well-financed and influential opponents, the futility of the traditional lobbying approach became clear. If tech companies were going to turn back the anti-piracy bills, they would need to find another way.

It was around this time that one of Google's Washington strategists suggested an alternative strategy. "Let's rally our users," Adam Kovacevich, then 34 and a senior member of Google's Washington office, told colleagues. Kovacevich turned Google's opposition to the anti-piracy legislation into a coast-to-coast political influence effort with all the bells and whistles of a presidential campaign. The goal: to whip up enough opposition to the legislation among ordinary Americans that Congress would be forced to abandon the effort... The campaign slogan they settled on — "Don't Kill the Internet" — exaggerated the likely impact of the bill, but it succeeded in stirring apprehension among web users.

The coup de grace came on Jan. 18, 2012, when Google and its allies pulled off the mother of all outside influence campaigns. When users logged on to the web that day, they discovered, to their great frustration, that many of the sites they'd come to rely on — Wikipedia, Reddit, Craigslist — were either blacked out or displayed text outlining the detrimental impacts of the proposed legislation. For its part, Google inserted a black censorship bar over its multicolored logo and posted a tool that enabled users to contact their elected representatives. "Tell Congress: Please don't censor the web!" a message on Google's home page read. With some 115,000 websites taking part, the protest achieved a staggering reach. Tens of millions of people visited Wikipedia's blacked-out website, 4.5 million users signed a Google petition opposing the legislation, and more than 2.4 million people took to Twitter to express their views on the bills. "We must stop [these bills] to keep the web open & free," the reality TV star Kim Kardashian wrote in a tweet to her 10 million followers...

Within two days, the legislation was dead...

Over the following decade, outside influence tactics would become the cornerstone of Washington's lobbying industry — and they remain so today.

"The 2012 effort is considered the most successful consumer mobilization in the history of internet policy," writes the Washington Post — agreeing that it's since spawned more app-based, crowdsourced lobbying campaigns. Sites like Airbnb "have also repeatedly asked their users to oppose city government restrictions on the apps." Uber, Lyft, DoorDash and other gig work companies also blitzed the apps' users with scenarios of higher prices or suspended service unless people voted for a 2020 California ballot measure on contract workers. Voters approved it."

The Wall Street Journal also details how lobbyists successfully killed higher taxes for tobacco products, the oil-and-gas industry, and even on private-equity investors — and note similar tactics were used against a bill targeting TikTok. "Some say the campaign backfired. Lawmakers complained that the effort showed how the Chinese government could co-opt internet users to do their bidding in the U.S., and the House of Representatives voted to ban the app if its owners did not agree to sell it.

"TikTok's lobbyists said they were pleased with the effort. They persuaded 65 members of the House to vote in favor of the company and are confident that the Senate will block the effort."

The Journal's article was adapted from an upcoming book titled "The Wolves of K Street: The Secret History of How Big Money Took Over Big Government." But the Washington Post argues the phenomenon raises two questions. "How much do you want technology companies to turn you into their lobbyists? And what's in it for you?"
Social Networks

LinkedIn Moves In On TikTok's Turf With Short-Form Videos (axios.com) 13

LinkedIn is testing support for short-form videos to help it compete with TikTok, YouTube Shorts, Instagram Reels, and other social media platforms. "[W]e are testing new ways to help members more easily discover timely, relevant videos to watch on LinkedIn," Suzi Owens, a company spokesperson, tells Axios in an email. From the report: A new "Video" option will appear next to the "Home" button at the bottom of the app's navigation bar, per a demo of the feature shared online by Austin Null, strategy director at creative agency McKinney. After tapping it, viewers are led to a feed of short-form videos similar to Instagram Reels and TikTok.
AI

NYC's Government Chatbot Is Lying About City Laws and Regulations (arstechnica.com) 57

An anonymous reader quotes a report from Ars Technica: NYC's "MyCity" ChatBot was rolled out as a "pilot" program last October. The announcement touted the ChatBot as a way for business owners to "save ... time and money by instantly providing them with actionable and trusted information from more than 2,000 NYC Business web pages and articles on topics such as compliance with codes and regulations, available business incentives, and best practices to avoid violations and fines." But a new report from The Markup and local nonprofit news site The City found the MyCity chatbot giving dangerously wrong information about some pretty basic city policies. To cite just one example, the bot said that NYC buildings "are not required to accept Section 8 vouchers," when an NYC government info page says clearly that Section 8 housing subsidies are one of many lawful sources of income that landlords are required to accept without discrimination. The Markup also received incorrect information in response to chatbot queries regarding worker pay and work hour regulations, as well as industry-specific information like funeral home pricing. Further testing from BlueSky user Kathryn Tewson shows the MyCity chatbot giving some dangerously wrong answers regarding treatment of workplace whistleblowers, as well as some hilariously bad answers regarding the need to pay rent.

MyCity's Microsoft Azure-powered chatbot uses a complex process of statistical associations across millions of tokens to essentially guess at the most likely next word in any given sequence, without any real understanding of the underlying information being conveyed. That can cause problems when a single factual answer to a question might not be reflected precisely in the training data. In fact, The Markup said that at least one of its tests resulted in the correct answer on the same query about accepting Section 8 housing vouchers (even as "ten separate Markup staffers" got the incorrect answer when repeating the same question). The MyCity Chatbot -- which is prominently labeled as a "Beta" product -- does tell users who bother to read the warnings that it "may occasionally produce incorrect, harmful or biased content" and that users should "not rely on its responses as a substitute for professional advice." But the page also states front and center that it is "trained to provide you official NYC Business information" and is being sold as a way "to help business owners navigate government."
NYC Office of Technology and Innovation Spokesperson Leslie Brown told The Markup that the bot "has already provided thousands of people with timely, accurate answers" and that "we will continue to focus on upgrading this tool so that we can better support small businesses across the city."

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