Businesses

Samsung's Leader Is Out of Jail, Allowing US Factory Plans To Move Forward (arstechnica.com) 14

An anonymous reader quotes a report from Ars Technica: Samsung Group's leader, Jay Y. Lee, is out of jail on parole today. Lee was serving a 30-month sentence for his role in "Choi-gate," a major 2016 South Korean political scandal that brought down South Korean then-President Park Geun-hye. In 2017, Lee was originally sentenced to five years in jail after being found guilty of bribery, embezzlement, capital flight, and perjury. An appeal and retrial cut Lee's five-year prison sentence down to 30 months after suspending the charges for bribery and embezzlement. Lee served 18 months of that sentence, and now he's out on parole.

Upon his release, Lee told reporters, "I've caused much concern for the people. I deeply apologize. I am listening to the concerns, criticisms, worries, and high expectations for me. I will work hard." Lee's release from prison is controversial. The pro-business side of South Korean politics wants to see Lee back on the streets because Samsung is a massive part of South Korea's economy, and jailing the leader has delayed major strategic decisions at the company. Civic groups say South Korea's business elite get a different set of rules from everyone else and that Lee's parole is the latest sign of that reality.

Samsung makes up anywhere from 10-20 percent of South Korea's GDP, depending on how the latest quarter is going. As the top dog at Samsung, Lee has the final say on major investments and acquisitions, and one of the big decisions he needs to make is where to build a $17 billion chip factory in the US. The plant could be operational as soon as October 2022, and with the world currently in the middle of a global chip shortage, there's pressure to get everything started. US businesses have even been lobbying South Korea to pardon Lee in the hopes that the deal would go through. Lee reportedly left prison to head to Samsung headquarters, but he still has more legal issues to deal with. In October, he will face another trial relating to the Samsung C&T merger, this time for accounting fraud and stock price manipulation.

Privacy

NYPD Secretly Spent $159 Million On Surveillance Tech Since 2007 (engadget.com) 16

The New York City Police Department has spent over $159 million on surveillance systems and maintenance since 2007 without public oversight, according to newly released documents. Engadget reports: The Legal Aid Society (LAS) and the Surveillance Technology Oversight Project (STOP) obtained the documents from the NYPD, which include contracts with vendors. They show that the NYPD has spent millions on facial recognition, predictive policing tech and other surveillance systems. The NYPD made the purchases through a Special Expenses Fund. It didn't need to gain the approval of the NYC Council or other city officials before signing the contracts, as Wired reports.

STOP and other privacy groups lobbied for the Public Oversight of Surveillance Technology (POST) Act, which passed last year and requires the NYPD to disclose details about its public surveillance infrastructure. The Special Expenses Fund was shut down after the legislation passed. LAS and STOP threatened legal action if the NYPD didn't detail its surveillance practices. Among the documents are contracts for Palantir, American Science and Engineering (which provides x-ray vans that can detect weapons in vehicles 1,500 feet away) and Idemia Solutions, which provides biometric services such as facial recognition. The NYPD also signed a contract with KeyW Corporation for Stingray cell tower simulators.

United States

US Prisons Mull AI To Analyze Inmate Phone Calls (reuters.com) 69

A key House of Representatives panel has pressed for a report to study the use of artificial intelligence to analyze prisoners' phone calls. "But prisoners' advocates and inmates' families say relying on AI to interpret communications opens up the system to mistakes, misunderstandings and racial bias," reports Reuters. From the report: The call for the Department of Justice (DOJ) to further explore the technology, to help prevent violent crime and suicide, accompanies an $81 billion-plus spending bill to fund the DOJ and other federal agencies in 2022 that the Appropriations Committee passed last month. The technology can automatically transcribe inmates' phone calls, analyzing their patterns of communication and flagging certain words or phrases, including slang, that officials pre-program into the system. A House Democratic aide said in an emailed statement they were encouraging the DOJ "to engage with stakeholders in the course of examining the feasibility of utilizing such a system."

Several state and local facilities across the country have already started using the tech, including in Alabama, Georgia and New York. The House panel wants the DOJ to look into potentially leveraging the technology for federal use and to identify gaps or shortcomings in the information it produces. Privacy groups say the technology could amplify racial bias in the justice system and unfairly subject prisoners to unaccountable artificial intelligence. Proponents dispute such criticisms, saying the tech is a vital time-saving tool for law enforcement and does not target specific groups.

IT

Why CAPTCHA Pictures Are So Unbearably Depressing (medium.com) 115

Clive Thompson: I hate doing Google's CAPTCHAs. Part of it is the sheer hassle of repeatedly identifying objects -- traffic lights, staircases, palm trees and buses -- just so I can finish a web search. I also don't like being forced to donate free labor to AI companies to help train their visual-recognition systems. But a while ago, while numbly clicking on grainy images of fire hydrants, I was struck by another reason: The images are deeply, overwhelmingly depressing.

CAPTCHA images are never joyful vistas of human activity, full of Whitmanesque vigor. No, they're blurry, anonymous landscapes that possess a positively Soviet anomie. I think I've figured it out, and so now I present -- The Six Reasons CAPTCHA Pictures Make You Feel Like Crap:

1. They're devoid of humans.
2. The angles are all wrong.
3. They're voyeuristic.
4. They look like crime-scene footage.
5. The grids on the photos are an alien's-eye view of the world.
6. There's very little nature.

Crime

Samsung Leader Jay Y. Lee Granted Parole, To Leave Prison On Friday (reuters.com) 26

Samsung vice chairman Jay Y. Lee, in jail after convictions for bribery, embezzlement and other charges, has qualified for parole and is expected to leave prison this Friday, South Korea's justice ministry said. Reuters reports: "The decision to grant Samsung Electronics vice chairman Jay Y. Lee parole was the result of a comprehensive review of various factors such as public sentiment and good behavior during detention," the ministry said in a statement on Monday.
Convicted of bribing a friend of former President Park Geun-hye, Lee, 53, has served 18 months of a revised 30 month sentence. He initially served one year of a five-year sentence from August 2017 which was later suspended. That court decision was then overturned and while the sentence was shortened, he was sent back to jail in January this year. Lee still needs the Justice Minister to approve his return to work as the law bars persons with certain convictions from working for companies related to those convictions for five years. He is likely to get that, legal experts say, due to circumstances such as the amount deemed embezzled having been repaid.
The Federation of Korean Industries, a big business lobby, welcomed the decision, adding: "If the investment clock, currently at standstill, is not wound up quickly, we could lag behind global companies such as Intel and TSMC and lose the Korean economy's bread and butter at a moment's notice."
The Internet

Russia Tells UN It Wants Vast Expansion of Cybercrime Offenses, Plus Network Backdoors, Online Censorship (theregister.com) 52

An anonymous reader writes: Russia has put forward a draft convention to the United Nations ostensibly to fight cyber-crime. The proposal, titled "United Nations Convention on Countering the Use of Information and Communications Technologies for Criminal Purposes," calls for member states to develop domestic laws to punish a far broader set of offenses than current international rules recognize. Russia, the ransomware hotbed whose cyber-spies were blamed for attacking US and allied networks, did not join the 2001 Budapest Convention on Cybercrime because it allowed cross-border operations, which it considers a threat to national sovereignty. Russian media outlet Tass also said the 2001 rules are flawed because they only criminalize nine types of cyber offenses. The new draft convention from Russia, submitted last week, defines 23 cybercrimes for discussion.

Russia's proposed rule expansion, for example, calls for domestic laws to criminalize changing digital information without permission -- "the intentional unauthorized interference with digital information by damaging, deleting, altering, blocking, modifying it, or copying of digital information." The draft also directs members states to formulate domestic laws to disallow unsanctioned malware research -- "the intentional creation, including adaptation, use and distribution of malicious software intended for the unauthorized destruction, blocking, modification, copying, dissemination of digital information, or neutralization of its security features, except for lawful research." It would forbid "the creation and use of digital data to mislead the user," such as deep fakes -- "the intentional unlawful creation and use of digital data capable of being mistaken for data already known and trusted by a user that causes substantial harm."

Crime

Banned Chinese Facial Recognition Technology Was Used in Search for US Protesters (nytimes.com) 156

Some protesters in Minnesota set a fire last year. But then the surveillance footage from that day "set off a nearly yearlong, international manhunt...involving multiple federal agencies and Mexican police. The pursuit also involved a facial recognition system made by a Chinese company that has been blacklisted by the U.S. government."

The New York Times tells the story of the couple who was eventually arrested: Ms. Yousif gave birth while on the run, and was separated from her baby for four months by the authorities. To prosecutors, the pursuit of Mr. Felan, who was charged with arson, and Ms. Yousif, who was charged with helping him flee, was a routine response to a case of property destruction... But beyond the prosecutorial aftermath of the racial justice protests, the eight-month saga of a young Minnesota couple exposed an emerging global surveillance system that might one day find anyone, anywhere, the technology traveling easily over borders while civil liberties struggle to keep pace...

They drove, heading south on Interstate 35, a highway that runs down the middle of the country, stretching from Duluth, Minn., on Lake Superior, to Laredo, Texas, on the Mexican border. They had made their way through Iowa and just hit the northern part of Missouri, 300 miles from Rochester, when police first caught up with them. A warrant had been issued for Mr. Felan's arrest, allowing the authorities to ping his cellphone to locate him. According to a court document, late on a Monday night, more than a week after the events in St. Paul, local police in rural western Missouri, who were asked to go where the phone was pinging, stopped a black S.U.V. registered to Mr. Felan. Ms. Yousif was driving, and said she didn't know where Mr. Felan was. The police let her go...

Over the next week, police kept pinging the location of Mr. Felan's phone but kept missing him. According to a court document, he sent a message to his brother in Texas saying he was turning it off between messages, worried about being tracked; the couple eventually bought new phones... On a Friday night in mid-June 2020, a surveillance camera at a Holiday Inn outside San Antonio captured Ms. Yousif and Mr. Felan driving his mother's brown Toyota Camry into the hotel's parking lot. They got out of the car, walked outside the view of the camera and then disappeared...

Later in Mexico, at a meeting with law enforcement officials in Coahuila, Federico Pérez Villoro, an investigative journalist, remembers meeting a government employee in charge of Mexico's first large-scale facial recognition system who'd said America's FBI had asked them for help finding people accused of terrorism. This is significant because they were using the Dahua surveillance system from China, that's partly state-owned and "blacklisted by the U.S. government in 2019...According to a notice in the Federal Register, Dahua's products were used in "China's campaign of repression, mass arbitrary detention and high-technology surveillance" against Uighurs and other Muslim minority groups."

Ironically, in the end it wasn't the $30 million system that identified the couple, according to the U.S. Justice Department. It was somebody who'd contacted them directly to collect the $20,000 reward. "But the technology is spreading globally, in part because China is aggressively marketing it abroad, said Marc Rotenberg, president of the Center for A.I. and Digital Policy, a nonprofit in Washington.... China is marketing mass surveillance technology to its trading partners in Africa, Asia and South America, he explained, pitching it as a way to minimize crime and promote public order in major metropolitan areas." In a 2019 report on video analytics, the American Civil Liberties Union argued that millions of surveillance cameras installed in recent decades are "waking up" thanks to automation, such as facial recognition technology, which allows them to not just record, but to analyze what is happening and flag what they see...
Crime

Former eBay Supervisor Sentenced To 18 Months in Prison For Cyberstalking Case Targeting Natick Couple (bostonglobe.com) 14

A former security supervisor at eBay received an 18-month federal prison sentence Tuesday for his role in a bizarre campaign of cyberstalking aimed at a Natick couple that ran an online newsletter often critical of the e-commerce giant, authorities said. The Boston Globe: The ex-supervisor, Philip Cooke, 56, of San Jose, Cali., had pleaded guilty in US District Court in Boston in October 2020 to conspiracy to commit cyberstalking and conspiracy to tamper with a witness, legal filings show. On Tuesday, prosecutors said, he was sentenced to 18 months in prison, as well as three years of supervised release including a 12-month period of home detention. He was also ordered to pay a $15,000 fine and perform 100 hours of community service, according to the US attorney's office.

Cooke was one of seven former eBay employees charged in connection with the stalking, which authorities said targeted Ina and David Steiner, a Natick couple who recently filed a federal lawsuit against the company and other parties linked to the harrassment. Rosemary Scapicchio, a prominent Boston attorney representing the couple in their civil suit, said via phone after Monday's hearing that her clients "were relieved" that Cooke received time behind bars, calling it "the first step in their pursuit of accountability" for all those involved. "There needs to be corporate accountability" as well, Scapicchio said.

Social Networks

A Grandfather Died in 'Swatting' Over His Twitter Handle, Officials Say (nytimes.com) 141

Mark Herring had a fatal heart attack after the police swarmed his house after a fake emergency call. A Tennessee man was sentenced to five years in prison in connection with the episode. From a report: Mark Herring was at home in Bethpage, Tenn., one night in April 2020 when the police swarmed his house. Someone with a British accent had called emergency services in Sumner County and reported having shot a woman in the back of the head at Mr. Herring's address. The caller had threatened to set off pipe bombs at the front and back doors if officers came, according to federal court records. When the police arrived, they drew their guns and told Mr. Herring, a 60-year-old computer programmer and grandfather of six, to come out and keep his hands visible. As he walked out, he lost his balance and fell. He was pronounced dead that same night at a nearby hospital. The cause of death was a heart attack, according to court records.

Mr. Herring had been a victim of "swatting," the act of reporting a fake crime in order to provoke a heavily armed response from the police. The caller was a minor living in the United Kingdom, according to federal prosecutors. But the caller knew Mr. Herring's address because Shane Sonderman, 20, of Lauderdale County, Tenn., had posted the information online, prosecutors said. On Wednesday, Mr. Sonderman was sentenced to five years in prison after he pleaded guilty to one count of conspiracy. "The defendant was part of a chain of events," federal prosecutors said in court documents. The police "arrived prepared to take on a life and death situation," prosecutors said. "Mr. Herring died of a heart attack at gunpoint." Mr. Sonderman's lawyer, Bryan R. Huffman, said he had argued for a lesser sentence but believed five years "was fair in light of Shane's culpability."

"Mr. Sonderman has expressed his remorse on multiple occasions. He has expressed his regret regarding Mr. Herring's death," Mr. Huffman said in an email on Saturday. "Mr. Sonderman's family had also expressed their remorse. There are many families affected by Shane's actions, including his own family." Mr. Herring was targeted because he refused to sell his Twitter handle, @Tennessee, according to his family and prosecutors. Smart, blunt and plain-spoken, Mr. Herring had loved computers since he was a teenager and joined Twitter in March 2007, less than a year after it started, his family said. He knew people wanted his handle, which he chose because of his love for the state, where he had been born and raised, and had rebuffed offers of $3,000 to $4,000 to sell it, his daughter Corinna Fitch, 37, said in an interview.

AI

Police Are Telling ShotSpotter To Alter Evidence From Gunshot-Detecting AI (vice.com) 147

An anonymous reader quotes a report from Motherboard: On May 31 last year, 25-year-old Safarain Herring was shot in the head and dropped off at St. Bernard Hospital in Chicago by a man named Michael Williams. He died two days later. Chicago police eventually arrested the 64-year-old Williams and charged him with murder (Williams maintains that Herring was hit in a drive-by shooting). A key piece of evidence in the case is video surveillance footage showing Williams' car stopped on the 6300 block of South Stony Island Avenue at 11:46 p.m. - the time and location where police say they know Herring was shot. How did they know that's where the shooting happened? Police said ShotSpotter, a surveillance system that uses hidden microphone sensors to detect the sound and location of gunshots, generated an alert for that time and place. Except that's not entirely true, according to recent court filings.

That night, 19 ShotSpotter sensors detected a percussive sound at 11:46 p.m. and determined the location to be 5700 South Lake Shore Drive - a mile away from the site where prosecutors say Williams committed the murder, according to a motion filed by Williams' public defender. The company's algorithms initially classified the sound as a firework. That weekend had seen widespread protests in Chicago in response to George Floyd's murder, and some of those protesting lit fireworks. But after the 11:46 p.m. alert came in, a ShotSpotter analyst manually overrode the algorithms and "reclassified" the sound as a gunshot. Then, months later and after "post-processing," another ShotSpotter analyst changed the alert's coordinates to a location on South Stony Island Drive near where Williams' car was seen on camera. "Through this human-involved method, the ShotSpotter output in this case was dramatically transformed from data that did not support criminal charges of any kind to data that now forms the centerpiece of the prosecution's murder case against Mr. Williams," the public defender wrote in the motion.

The document is what's known as a Frye motion - a request for a judge to examine and rule on whether a particular forensic method is scientifically valid enough to be entered as evidence. Rather than defend ShotSpotter's technology and its employees' actions in a Frye hearing, the prosecutors withdrew all ShotSpotter evidence against Williams. The case isn't an anomaly, and the pattern it represents could have huge ramifications for ShotSpotter in Chicago, where the technology generates an average of 21,000 alerts each year. The technology is also currently in use in more than 100 cities. Motherboard's review of court documents from the Williams case and other trials in Chicago and New York State, including testimony from ShotSpotter's favored expert witness, suggests that the company's analysts frequently modify alerts at the request of police departments - some of which appear to be grasping for evidence that supports their narrative of events.

Crime

Citizen is Now Paying New Yorkers To Livestream Crimes (inputmag.com) 56

Citizen, otherwise known as "the worst kind of hyperlocal app ever created," is now willing to pay people to livestream crimes around New York City. The company is reportedly hiring people in the Big Apple at a starting rate of $25 per hour to run around the city and start streaming crimes to the web in real-time. From a report: The exact nature of these hires -- including their very existence -- is being kept mostly quiet by Citizen. Any public-facing recruiting for these positions is being done on the DL; one post on JournalismJobs.com from last week sought "field team members" to work for "a tech company with user-generated content."

"You will be live-streaming from your phone straight to the app, covering the event as news," the job posting read. Citizen's name was not included anywhere in the now-deleted posting, according to the New York Post. The company does not post these positions on its website, either.

Crime

Serial Swatter Who Caused Death Gets Five Years In Prison (krebsonsecurity.com) 186

A 18-year-old Tennessee man who helped set in motion a fraudulent distress call to police that lead to the death of a 60-year-old grandfather in 2020 was sentenced to 60 months in prison today. Krebs on Security reports: Shane Sonderman, of Lauderdale County, Tenn. admitted to conspiring with a group of criminals that's been "swatting" and harassing people for months in a bid to coerce targets into giving up their valuable Twitter and Instagram usernames. At Sonderman's sentencing hearing today, prosecutors told the court the defendant and his co-conspirators would text and call targets and their families, posting their personal information online and sending them pizzas and other deliveries of food as a harassment technique.

Other victims of the group told prosecutors their tormentors further harassed them by making false reports of child abuse to social services local to the target's area, and false reports in the target's name to local suicide prevention hotlines. Eventually, when subjects of their harassment refused to sell or give up their Twitter and Instagram usernames, Sonderman and others would swat their targets -- or make a false report to authorities in the target's name with the intention of sending a heavily armed police response to that person's address. [...]

Sonderman might have been eligible to knock a few months off his sentence had he cooperated with investigators and refrained from committing further crimes while out on bond. But prosecutors said that shortly after his release, Sonderman went right back to doing what he was doing when he got caught. Investigators who subpoenaed his online communications found he'd logged into the Instagram account "FreeTheSoldiers," which was known to have been used by the group to harass people for their social media handles. Sonderman was promptly re-arrested for violating the terms of his release, and prosecutors played for the court today a recording of a phone call Sonderman made from jail in which he brags to a female acquaintance that he wiped his mobile phone two days before investigators served another search warrant on his home.
"Although it may seem inadequate, the law is the law," said Judge Norris after giving Sonderman the maximum sentence allowed by law under the statute. "The harm it caused, the death and destruction... it's almost unspeakable. This is not like cases we frequently have that involve guns and carjacking and drugs. This is a whole different level of insidious criminal behavior here."
Crime

UK Man Arrested in Spain for Role in Twitter 2020 Hack (therecord.media) 6

A 22-year-old UK national was arrested today in Spain for his role in hacking Twitter's internal network and hijacking high-profile accounts in July last year. From a report: Joseph O'Connor, 22, was arrested today in the city of Estepona, in southern Spain, by Spanish National Police pursuant to a US arrest warrant. O'Connor marks the fourth man linked to the Twitter 2020 hack, after three men were charged and detained on July 31, last year. O'Conner, who went online as "j0e," worked with the other three to gain access to one of Twitter's internal Slack channels. The group found credentials in the Slack workplaces that allowed them to gain access to Twitter's moderation panel.
Businesses

Tech Workers Who Swore Off the Bay Area Are Coming Back (nytimes.com) 62

Critics said the pandemic would make the industry flee San Francisco and its southern neighbor, Silicon Valley. But tech can't seem to quit its gravitational center. New York Times: The pandemic was supposed to lead to a great tech diaspora. Freed of their offices and after-work klatches, the Bay Area's tech workers were said to be roaming America, searching for a better life in cities like Miami and Austin, Texas -- where the weather is warmer, the homes are cheaper and state income taxes don't exist. But dire warnings over the past year that tech was done with the Bay Area because of a high cost of living, homelessness, crowding and crime are looking overheated. Mr. Osuri [Editor's note: anecdote in the story who is the chief executive of Akash Network] is one of a growing number of industry workers already trickling back as a healthy local rate of coronavirus vaccinations makes fall return-to-office dates for many companies look likely.

Bumper-to-bumper traffic has returned to the region's bridges and freeways. Tech commuter buses are reappearing on the roads. Rents are spiking, especially in San Francisco neighborhoods where tech employees often live. And on Monday, Twitter reopened its office, becoming one of the first big tech companies to welcome more than skeleton crews of employees back to the workplace. Twitter employees wearing backpacks and puffy jackets on a cold San Francisco summer morning greeted old friends and explored a space redesigned to accommodate social-distancing measures.

Government

Man Wrongfully Arrested By Facial Recognition Tells Congress His Story (vice.com) 94

An anonymous reader quotes a report from Motherboard: Michigan resident Robert Williams testified about being wrongfully arrested by Detroit Police in an effort to urge Congress to pass legislation against the use of facial recognition technology. Williams' testimony was part of a hearing held by the House of Representatives' subcommittee on crime, terrorism, and homeland security, which dealt with how law enforcement uses the highly controversial surveillance technology. Congress recently introduced the Facial Recognition and Biometric Technology Moratorium, which would indefinitely ban its use by law enforcement. Williams was wrongfully arrested in 2020 for federal larceny after he was misidentified by the Detroit Police Department's facial recognition software after they used a grainy image from the surveillance footage. He was then picked from a photo lineup by the store security guard who wasn't actually present for the incident. According to his testimony, Williams was detained for thirty hours and was not given any food or water. [...]

Research has repeatedly shown that facial recognition technology is fundamentally biased against women and people of color, leading to errors like this. Even when working properly, privacy advocates have argued facial recognition systems disproportionately target communities of color, creating further pretext for police intervention. [...] "Large scale adoption of this technology would inject further inequity into a system at a time when we should be moving to make the criminal justice system more equitable," Representative Sheila Jackson Lee (TX-18) said during the hearing. The subcommittee also referenced a recent study from the U.S. Government Accountability Office that reported that 20 federal agencies used facial recognition software last year. Six federal agencies, including the FBI and the U.S. Postal Service, reported using it during the 2020 Black Lives Matter protests that followed the police murder of George Floyd.

Robert Williams is just one of many people impacted by this technology's errors and biases. Williams is now represented by the ACLU and is suing the Detroit Police Department for damages and policy changes to prohibit the use of facial recognition technology. So far, the technology has been banned statewide in Vermont and Virginia, as well as in 20 cities across the US. "Mr. Williams deserved better from the law enforcement agencies entrusted to use a technology that we all know is less accurate when applied to citizens who look like him," House Judiciary Committee Chairman Jerrold Nadler (D-NY) said in his testimony.

Crime

Insider Trading Charges Filed Over Long Island Iced Tea's Blockchain 'Pivot' (cnn.com) 17

CNN reports: As the bitcoin craze took off in 2017, a Long Island iced tea company sent its share price spiking as much as 380% merely by announcing a "pivot" to blockchain technology. Long Island Iced Tea Corp. even changed its name to Long Blockchain Corp. At the time, the episode underscored the excessive hype around the crypto space.

Now, regulators say the name change was at the heart of an illegal insider trading scheme.The Securities and Exchange Commission charged three people Friday with insider trading in advance of the announcement that sent Long Island Iced Tea Corp.'s stock price to the moon... December 21, 2017, Long Island Iced Tea Corp., until that point exclusively a soft drink maker, announced its makeover, describing the pivot to blockchain as a "once-in-a-generation opportunity."

Even though the company had no actual business tied to blockchain at the time, and no experience in the cryptocurrency space, its Nasdaq-listed share price skyrocketed and trading volume spiked by 1,000%.

But the company's leading shareholder had told a broker/stockholder who'd then tipped off a stock-trading friend (who within two hours of the announcement ended up with "$160,000 in illicit profits," the SEC said). CNN adds that all three have now been charged with insider trading.

"The SEC said Long Blockchain was delisted by the Nasdaq in February for allegedly making a 'series of public statements designed to mislead investors and to take advantage of the general investor interest in bitcoin and blockchain technology.'"
The Almighty Buck

Crypto Scammers Rip Off Billions As Pump-and-Dump Schemes Go Digital (bloomberg.com) 74

Bloomberg identifies a variety of cryptocurrency scams, including a "rug pull," where the creators of a new cryptocurrency suddenly cut and run.

"Old-fashioned Ponzi schemes, newly cryptodenominated, have swindled people out of billions too," Bloomberg adds. And a 35-year-old crypto trader living with his parents ("trading meme coins as a full-time job") also tells them about "honey pots," where a coin's creators see a spike in value — and then temporarily disable selling for other holders: It might sound like a joke, given the crypto meltdowns of late, but serious money is at stake here. Billions — real billions — are getting pilfered annually through a variety of cryptocurrency scams. The way things are going, this will only get worse. Back in the Wall Street Dark Ages — six, 12, 18 months ago — these sorts of shenanigans were mostly associated with shlocky brokerages like the one depicted in the 2013 movie The Wolf of Wall Street. In those halcyon days before GameStop, Dogecoin and the rest, schlubs on Long Island might pitch ridiculous over-the-counter stocks to the gullible...

Tokensniffer, aptly named for Shit Coins, claims to have tracked 42,071 tokens and 2,250 scams or hacks. That was as of June 16. More than 200 supposed stings were logged by users during the first two weeks of June alone... His website scrapes data about new meme tokens from popular social media channels and scans the source code... A "smell test" program searches for vulnerabilities. Clones of existing meme tokens are often a red flag. Most recent scams — the site flagged 450 in in one recent 30-day period — were honeypots. Those tend to be easier to spot because of their code, Tokensniffer's creator says. Rug pulls are more complicated.

Such supposed safeguards aside, people are getting scammed in growing numbers. So far this year, over $2.6 billion has been grabbed, according to Chainalysis, a New York-based blockchain researcher. That figure doesn't include a giant Ponzi scheme that just came to light in South Africa. Local authorities put the haul at $3.6 billion worth of Bitcoin. Gob-smacking as all of this might sound, these numbers in fact represent a marked decline from 2019, when fraudsters walked away with an estimated $9 billion. But here's a key difference: the sheer number of people getting hoodwinked. With a few outsize exceptions, most crypto scams seem to be getting smaller. That's the good news. The bad news is that there are more of them, and more people are getting stung. From 2019 to 2020, the number of victims has jumped 48% to an estimated 7.3 million, a figure approaching the official population of Hong Kong. Between the last three months of 2020 and the first three months of 2021, the number of unique scams rose nearly 18%, to 1,335, according to Chainalysis...

Michael Burry, of "The Big Short"-fame, has been warning all of this could all go horribly wrong. An estimated 10,000 new coins have been minted this year. Who can say how many will turn out to be shams? So many Shit Coins are flying around out there, and prices can be so volatile, that many people can't even tell if they've been scammed... This much is sure: no one complains when they're making money. It's when people start losing money — and lately, many have been — that they scream they've been taken.

"A decade after Bitcoin was created, regulators are still grappling with how to police cryptocurrencies," Bloomberg adds, "when the whole point is that they operate without governments or central banks."
Crime

A Threat to Privacy in the Expanded Use of License Plate-Scanning Cameras? (yahoo.com) 149

Long-time Slashdot reader BigVig209 shares a Chicago Tribune report "on how suburban police departments in the Chicago area use license plate cameras as a crime-fighting tool." Critics of the cameras note that only a tiny percentage of the billions of plates photographed lead to an arrest, and that the cameras generally haven't been shown to prevent crime. More importantly they say the devices are unregulated, track innocent people and can be misused to invade drivers' privacy. The controversy comes as suburban police departments continue to expand the use of the cameras to combat rising crime. Law enforcement officials say they are taking steps to safeguard the data. But privacy advocates say the state should pass a law to ensure against improper use of a nationwide surveillance system operated by private companies.

Across the Chicago area, one survey by the nonprofit watchdog group Muckrock found 88 cameras used by more than two dozen police agencies. In response to a surge in shootings, after much delay, state police are taking steps to add the cameras to area expressways. In the northwest suburbs, Vernon Hills and Niles are among several departments that have added license plate cameras recently. The city of Chicago has ordered more than 200 cameras for its squad cars. In Indiana, the city of Hammond has taken steps to record nearly every vehicle that comes into town.

Not all police like the devices. In the southwest suburbs, Darien and La Grange had issues in years past with the cameras making false readings, and some officers stopped using them...

Homeowner associations may also tie their cameras into the systems, which is what led to the arrest in Vernon Hills. One of the leading sellers of such cameras, Vigilant Solutions, a part of Chicago-based Motorola Solutions, has collected billions of license plate numbers in its National Vehicle Location Service. The database shares information from thousands of police agencies, and can be used to find cars across the country... Then there is the potential for abuse by police. One investigation found that officers nationwide misused agency databases hundreds of times, to check on ex-girlfriends, romantic rivals, or perceived enemies. To address those concerns, 16 states have passed laws restricting the use of the cameras.

The article cites an EFF survey which found 99.5% of scanned plates weren't under suspicion — "and that police shared their data with an average of 160 other agencies."

"Two big concerns the American Civil Liberties Union has always had about the cameras are that the information can be used to track the movements of the general population, and often is sold by operators to third parties like credit and insurance companies."
Music

California Police Officer Plays Taylor Swift Song To Try To Block Video From YouTube (bbc.com) 172

Thelasko shares a report from the BBC: A US police officer played a Taylor Swift song on his phone in a bid to prevent activists who were filming him uploading the video to YouTube. The video platform regularly removes videos that break music copyright rules. However, the officer's efforts were in vain as the clip of the encounter in Oakland, California promptly went viral. Alameda County police told the BBC it was not "approved behavior."

The video was filmed by members of the Anti Police-Terror Project (APTP), which says it is a coalition that seeks to "eradicate police terror in communities of color." Some of them were protesting outside the courthouse at the pre-trial hearing of a San Leandro officer charged with the manslaughter of a black man. In the video, the officer says: "You can record all you want, I just know it can't be posted to YouTube." When asked if playing music in this way is procedure, the officer responds: "It's not specifically outlined." Later in the video, he confirms: "I'm playing music so that you can't post on YouTube." The sheriff's department said: "We have seen the video and referred it to our internal affairs bureau. This is not approved behavior. It will not happen again."
Earlier this year, Motherboard reported on cases of other California-based officers starting to play Beatles songs while being filmed so that the clips would be removed for copyright issues when uploaded to social media sites.
The Internet

Russian Hackers Are Abusing VPNs To Hijack Accounts, US and UK Officials Say (reuters.com) 39

Russian spies accused of interfering in the 2016 U.S. presidential election have spent much of the past two years abusing virtual private networks (VPNs) to target hundreds of organizations worldwide, U.S. and British authorities said on Thursday. Reuters reports: The governments said in a joint advisory that Unit 26165, the arm of Russia's military spy agency whose officers were indicted for allegedly breaking into Democratic Party emails, had been using VPNs and Tor - a privacy-focused network - to conduct "widespread, distributed, and anonymized brute force access attempts against hundreds of government and private sector targets." The advisory did not identify any of the targets by name, saying only that they were mainly in the United States and Europe and included government offices, political parties, energy companies, law firms and media organizations. The National Security Agency (NSA) today also disclosed details of "brute force" methods they say have been used by Russian intelligence to try to break into the cloud services of hundreds of government agencies, energy companies and other organizations.

Earlier this week, law enforcement seized the servers and customer logs for DoubleVPN, a Russian-based VPN service that was reportedly used by cyber criminals to hide their activities while conducting ransomware attacks, phishing campaigns and other malicious hacking operations.

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