Crime

Sweden Considers Six Years in Jail For Online Pirates (torrentfreak.com) 173

Sweden's Minister for Justice has received recommendations as to how the country should punish online pirates. From a report: Helene Fritzon received a proposal which would create crimes of gross infringement under both copyright and trademark law, leading to sentences of up to six years in prison. The changes would also ensure that non-physical property, such as domain names, can be seized.
Crime

Electronics-Recycling Innovator Faces Prison For Extending Computers' Lives 284

schwit1 shares a report from Los Angeles Times: Prosecutors said 33-year-old [Eric Lundgren, an electronic-waste recycling innovator] ripped off Microsoft by manufacturing 28,000 counterfeit discs with the company's Windows operating system on them. He was convicted of conspiracy and copyright infringement, which brought a 15-month prison sentence and a $50,000 fine. In a rare move though, a federal appeals court has granted an emergency stay of the sentence, giving Lundgren another chance to make his argument that the whole thing was a misunderstanding. Lundgren does not deny that he made the discs or that he hoped to sell them. But he says this was no profit-making scheme. By his account, he just wanted to make it easier to extend the usefulness of secondhand computers -- keeping more of them out of the trash.

The case centers on "restore discs," which can be used only on computers that already have the licensed Windows software and can be downloaded free from the computer's manufacturer, in this case Dell. The discs are routinely provided to buyers of new computers to enable them to reinstall their operating systems if the computers' hardware fails or must be wiped clean. But they often are lost by the time used computers find their way to a refurbisher. Lundgren said he thought electronics companies wanted the reuse of computers to be difficult so that people would buy new ones. He thought that producing and selling restore discs to computer refurbishers -- saving them the hassle of downloading the software and burning new discs -- would encourage more secondhand sales. In his view, the new owners were entitled to the software, and this just made it easier. The government, and Microsoft, did not see it that way. Federal prosecutors in Florida obtained a 21-count indictment against Lundgren and his business partner, and Microsoft filed a letter seeking $420,000 in restitution for lost sales. Lundgren claims that the assistant U.S. attorney on the case told him, "Microsoft wants your head on a platter and I'm going to give it to them."
Media

FCC Chairman Ajit Pai Is Under Investigation Over $3.9 Billion Media Deal 142

According to a report in The New York Times (Warning: source may be paywalled), Ajit Pai and the FCC approved a set of rules in 2017 to allow television broadcasters to increase the number of stations they own. Weeks after the rules were approved, Sinclair Broadcasting announced a $3.9 billion deal to buy Tribune Media. PC Gamer reports: The deal was made possible by the new set of rules, which subsequently raised some eyebrows. Notably, the FCC's inspector general is reportedly investigating if Pai and his aides abused their position by pushing for the rule changes that would make the deal possible, and timing them to benefit Sinclair. The extent of the investigation is not clear, nor is how long it will take. However, it does bring up the question of whether Pai had coordinated with Sinclair, and it could force him to publicly address the topic, which he hasn't really done up to this point.

Legislators first pushed for an investigation into this matter last November. At the time, a spokesman for the FCC representing Pai called the allegations "baseless" and alluded to it being a partisan play by those who oppose the chairman. "For many years, Chairman Pai has called on the FCC to update its media ownership regulations," the FCC spokesman said. "The chairman is sticking to his long-held views, and given the strong case for modernizing these rules, it's not surprising that those who disagree with him would prefer to do whatever they can to distract from the merits of his proposals."
Crime

LoopX Startup Pulls ICO Exit Scam and Disappears with $4.5 Million (bleepingcomputer.com) 122

Catalin Cimpanu, writing for BleepingComputer: A cryptocurrency startup named LoopX has pulled an exit scam after collecting around $4.5 million from users during an ICO (Initial Coin Offering) held in the recent weeks. The LoopX team disappeared out of the blue at the start of the week when it took down its website and deleted its Facebook, Telegram, and YouTube channels without any explanation. People who invested in the startup are now tracking funds move from account to account in a BitcoinTalk forum thread, and banding together in the hopes of filing a class action lawsuit.
Piracy

Man Handed Conditional Prison Sentence for Spreading Information About Popcorn Time Service (torrentfreak.com) 120

A man from Denmark has been handed a six-month conditional prison sentence for spreading information about Popcorn Time, an authorized on-demand movies and TV shows streaming service, news outlet TorrentFreak reports. From the report: In what is being described as a first for Europe, the man was convicted after telling people how to download, install and use the movie streaming service. He was also ordered to forfeit $83,300 in ad revenue and complete 120 hours community service.
Bitcoin

Russian Nuclear Scientists Arrested For 'Bitcoin Mining Plot' (bbc.com) 84

Russian security officers have arrested several scientists working at a top-secret Russian nuclear warhead facility for allegedly mining crypto-currencies, BBC reported Friday, citing local media. From the report: The suspects had tried to use one of Russia's most powerful supercomputers to mine Bitcoins, media reports say. The Federal Nuclear Centre in Sarov, western Russia, is a restricted area. The centre's press service said: "There has been an unsanctioned attempt to use computer facilities for private purposes including so-called mining." The supercomputer was not supposed to be connected to the internet -- to prevent intrusion -- and once the scientists attempted to do so, the nuclear centre's security department was alerted. They were handed over to the Federal Security Service (FSB), the Russian news service Mash says. "As far as we are aware, a criminal case has been launched against them," the press service told Interfax news agency.
China

Police In China Are Scanning Travelers With Facial Recognition Glasses (engadget.com) 87

Baron_Yam shares a report from Engadget: Police in China are now sporting glasses equipped with facial recognition devices and they're using them to scan train riders and plane passengers for individuals who may be trying to avoid law enforcement or are using fake IDs. So far, police have caught seven people connected to major criminal cases and 26 who were using false IDs while traveling, according to People's Daily. The Wall Street Journal reports that Beijing-based LLVision Technology Co. developed the devices. The company produces wearable video cameras as well and while it sells those to anyone, it's vetting buyers for its facial recognition devices. And, for now, it isn't selling them to consumers. LLVision says that in tests, the system was able to pick out individuals from a database of 10,000 people and it could do so in 100 milliseconds. However, CEO Wu Fei told the Wall Street Journal that in the real world, accuracy would probably drop due to "environmental noise." Additionally, aside from being portable, another difference between these devices and typical facial recognition systems is that the database used for comparing images is contained in a hand-held device rather than the cloud."
United States

36 Indicted in Global Cybercrime Ring That Stole $530M (go.com) 40

U.S. prosecutors say 36 people have been indicted in connection with an international cybercrime ring that bought and sold stolen credit card information, leading to losses of more than $530 million. From a report: The Justice Department says Wednesday that the so-called Infraud Organization dealt in the large-scale acquisition and sale of stolen identities, credit card information and malware. Deputy Assistant Attorney General David Rybicki says it was "truly the premier one-stop shop for cybercriminals worldwide." He says the organization used an online forum on the dark web to sell financial and personal information. Investigators believe the organization's nearly 11,000 members targeted more than 4.3 million credit cards and bank accounts.
Businesses

Samsung Billionaire Gets Off Easy (gizmodo.com) 93

Lee Jae-yong, the Samsung chief found guilty of bribery and embezzlement, was freed from prison after an appeals court reduced and suspended his five-year prison sentence. Gizmodo reports: Lee had pleaded not guilty to all charges and spent nearly a year in jail, CNN reported, before the appeals court reduced his sentence to two and a half years and suspended it for four. The court reportedly found him guilty of one bribery charge, but not of hiding money offshore. It also overturned another bribery charge. It's important to understand that Samsung has a tight grip on the country's economy. Known as a "chaebol," or a (usually family-owned) business conglomerate, Samsung contributes to a little over one-fifth of the country's exports. Its businesses make up about 15 percent of the country's total economy. It is extremely rare for leaders of the country's chaebols to be justly punished for their crimes -- most convicted are ultimately pardoned or granted a commutation. Lee's father, Lee Kun-hee, has been pardoned twice for similar charges.
United Kingdom

Lauri Love Ruling 'Sets Precedent' For Trying Hacking Suspects in UK (theguardian.com) 222

A high court ruling blocking extradition to the US of Lauri Love, a student accused of breaking into US government websites, has been welcomed by lawyers and human rights groups as a precedent for trying hacking suspects in the UK in future. From a report: The decision delivered by the lord chief justice, Lord Burnett of Maldon, is highly critical of the conditions Love would have endured in US jails, warning of the risk of suicide. Lawyers for the 33-year-old, who lives in Suffolk, had argued that Love should be tried in Britain for allegedly hacking into US government websites and that he would be at risk of killing himself if sent to the US. There was cheering and applause in court on Monday when Burnett announced his decision. He asked supporters to be quiet, saying: "This is a court, not a theatre." In his judgment, Burnett said: "It would not be oppressive to prosecute Mr Love in England for the offences alleged against him. Far from it. Much of Mr Love's argument was based on the contention that this is indeed where he should be prosecuted
Crime

Family of 'Swat' Victim Sues Kansas Police, Lawmakers Propose 40-Year Jail Terms (cbsnews.com) 291

An anonymous reader brings more updates about the 'Swat' call that led to a fatal police shooting: The gamer who dared another gamer to send police officers to his home had offered the address where he used to live, until his family was evicted in 2016. While he may also be charged for the fatal shooting that followed, the victim's family has now sued the city of Wichita as well as its police officers, with their attorney saying the city "is trying to put all the blame on the young man in California who placed the swatting call. But let's be clear: the swatter did not shoot the bullet that killed Andy Finch. That was an officer working under the direction of the Wichita Police Department."

The attorney points out that the 911 caller in California provided a description of the house which didn't match the actual house in Kansas, adding "How can Wichita police department officers not be trained to deal with this type of situation...? Prank calls are not new," according to CBS News. "The lawsuit cites FBI crime statistics showing Wichita has a ratio of one shooting death for every 120 officers -- a number that is 11 times greater than the national ratio and 12 times greater than the ratio in Chicago."

Meanwhle, Kansas lawmakers have introduced a new bill proposing a penalty of 10 to 40 years in prison if a swatting call ends in a person's death, which would also cause the offense to be prosecuted as murder.

One lawmaker argues that the bill is necessary because under the current system if a person phones in a swat call, "there's really no consequence for his actions."
Crime

Investigators Crack DB Cooper Code, Identify Suspect With Possible CIA Connections (seattlepi.com) 133

An anonymous reader quotes the Seattle Post-Intelligencer: A private investigative team announced Thursday morning that members now believe D.B. Cooper was a black ops CIA operative possibly even involved with Iran-Contra, and that his identity has been actively hidden by government agents. The 40-member cold-case team comprised of several former FBI agents and led by Thomas and Dawna Colbert made its latest reveal after a code breaker working with the team found connections in each of five letters allegedly sent by Cooper in the days following the famed hijacking in 1971.

What's more, several people who knew Colbert's top suspect, a man named Robert W. Rackstraw, have noted possible connections to the CIA and to top-secret operations, Colbert said. "The new decryptions include a dare to agents, directives to apparent partners, and a startling claim that is followed by Rackstraw's own initials: If captured, he expects a get-out-of-jail card from a federal spy agency," Colbert said in a news release... In a brief phone call last year, Rackstraw only told SeattlePI to verify Colbert's claims; he didn't issue a denial, or comment further on Colbert's investigation...

Late last year, Colbert's team obtained a fifth letter allegedly sent by Cooper that Colbert said supports a possible FBI cover-up, but also included random letters and numbers. A code breaker on Colbert's team was able to decode the letters and numbers and find they pointed to three Army units Rackstraw was connected to during his military service in Vietnam. The code was meant to serve as a signal to his co-conspirators that he was alive and well after the jump, Colbert said... Another letter, in which Cooper claimed to be CIA openly, also had the letters "RWR" at the end -- the initials of Robert W. Rackstraw, according to Colbert.

Security

First 'Jackpotting' Attacks Hit US ATMs (krebsonsecurity.com) 101

Brian Krebs, reporting for Krebs on Security: ATM "jackpotting" -- a sophisticated crime in which thieves install malicious software and/or hardware at ATMs that forces the machines to spit out huge volumes of cash on demand -- has long been a threat for banks in Europe and Asia, yet these attacks somehow have eluded U.S. ATM operators. But all that changed this week after the U.S. Secret Service quietly began warning financial institutions that jackpotting attacks have now been spotted targeting cash machines here in the United States.

To carry out a jackpotting attack, thieves first must gain physical access to the cash machine. From there they can use malware or specialized electronics -- often a combination of both -- to control the operations of the ATM. On Jan. 21, 2018, KrebsOnSecurity began hearing rumblings about jackpotting attacks, also known as "logical attacks," hitting U.S. ATM operators. I quickly reached out to ATM giant NCR Corp. to see if they'd heard anything. NCR said at the time it had received unconfirmed reports, but nothing solid yet.

Crime

FBI Warns of Email Death Threats Demanding Bitcoin (abc7.com) 95

An anonymous reader writes: "I will be short. I've got an order to kill you," the note said, demanding $2,800 in U.S. dollars or Bitcoin. "I switched from being upset about it to, 'I need to get the word out'," one of its targets told a local newscaster. They filed a report through the FBI's web site.

"If only 1% of people send money -- there's no overhead for them; that's money in the bank," one FBI agent tells the news team. A quick Google search finds recent reports of two nearly identical threats using the same text.

"I have been thinking for a long time whether it is worth sending this notice, and decided that you still have the right to know... I've got an order to kill you, because some of your activity causes trouble to several people... I decided to break some rules, as this will be my final order... As soon as I receive the funds, I will forward you the name of the man [this] order came from, and all other information I have."

United States

A 15-Year-Old Convinced Verizon He Was the Head of the CIA (newsweek.com) 143

schwit1 shares an interesting story. Newsweek reports: A British teenager managed to obtain access to sensitive U.S. plans about intelligence operations in different Middle East countries by acting as former CIA Director John Brennan, a court heard on Friday. Kane Gamble, 18, researched Brennan and used the information he gathered to speak to an internet company and persuade call handlers to give him access to the spy chief's email inbox in 2015. He pretended to be both a Verizon employee and Brennan to access Brennan's internet account.

Astonishingly, Gamble managed to gain access to Brennan's emails and his addressbook, as well as his iCloud storage. He even managed to remotely access the iPad of Brennan's wife... Gamble, aged 15 at the time, also persuaded a helpdesk at the FBI that he was the then deputy director Mark Giuliano... In October 2017, Gamble pleaded guilty to 10 charges, including eight charges of "performing a function with intent to secure unauthorized access" to the computers and two of "unauthorized modification of computer material."

Crime

Two More Gamers May Be Charged in Fatal Kansas 'SWAT' Shooting (kansas.com) 170

A newly-released affidavit reveals that money was at stake in a game of Call Of Duty: World War II which led to the fatal real-life police shooting of Andrew Finch. The Wichita Eagle reports: Investigators learned that Shane Gaskill, who lives in Wichita, was involved in an online video game with other people when he accidentally [virtually] shot and killed one of his teammates in the online game. The teammate who was killed in the game became "extremely upset" and began talking trash to Gaskill, the affidavit says. The dispute escalated until the teammate, who the document identifies as Casey Viner of North College Hill, Ohio, threatened via Twitter to "SWATT" Gaskill, according to the affidavit. Gaskill replied, "Please try some s---." He then posted the address...
Viner "is considered a suspect in several 'swatting' incidents in Cincinnati," reports the Los Angeles Times, adding that prosecutors are still deciding whether these two gamers should also face criminal charges.

Meanwhile, Kansas officials have been informed that the third gamer who actually made the phone call, 25-year-old Tyler Barriss, matches the voice on a fake 2015 bomb threat, and is already the subject of an open investigation by an FBI Joint Terrorism Task Force.
Crime

Crooks Created 28 Fake Ad Agencies To Disguise Massive Malvertising Campaign (bleepingcomputer.com) 36

An anonymous reader quotes a report from Bleeping Computer: A group of cyber-criminals created 28 fake ad agencies and bought over 1 billion ad views in 2017, which they used to deliver malicious ads that redirected unsuspecting users to tech support scams or sneaky pages peddling malware-laden software updates or software installers. The entire operation -- codenamed Zirconium -- appears to have started in February 2017, when the group started creating the fake ad agencies which later bought ad views from larger ad platforms. These fake ad agencies each had individual websites and even LinkedIn profiles for their fake CEOs. Their sole purpose was to interface with larger advertising platforms, appearing as legitimate businesses. Ad security company Confiant, the one who discovered this entire operation, says ads bought by this group reached 62% of ad-monetized websites on a weekly basis. All in all, Confiant believes that about 2.5 million users who've encountered Zirconium's malicious ads were redirected to a malicious site, with 95% of the victims being based in the U.S.
The Courts

Kim Dotcom Sues New Zealand For $6.8 Billion In Damages Over Erroneous Arrest (torrentfreak.com) 216

An anonymous reader quotes a report from the BBC: Kim Dotcom, the founder of file-sharing site Megaupload, is suing the New Zealand government for billions of dollars in damages over his arrest in 2012. The internet entrepreneur is fighting extradition to the U.S. to stand trial for copyright infringement and fraud. Mr Dotcom says an invalid arrest warrant negated all charges against him. He is seeking damages for destruction to his business and loss of reputation. Accountants calculate that the Megaupload group of companies would be worth $10 billion today, had it not been shut down during the raid. As he was a 68% shareholder in the business, Mr Dotcom has asked for damages going up to $6.8 billion. He is also considering taking similar action against the Hong Kong government. As stated in documents filed with the High Court, Mr Dotcom is also seeking damages for: all lost business opportunities since 2012, his legal costs, loss of investments he made to the mansion he was renting, his lost opportunity to purchase the mansion, and loss of reputation.
China

Ecuador is Fighting Crime Using Chinese Surveillance Technology (scmp.com) 35

Ecuador has introduced a security system using monitoring technology from China, including facial recognition, as it tries to bring down its crime rate and improve emergency management, according to state-run Xinhua news agency. From a report: A network of cameras has been installed across the South American nation's 24 provinces -- keeping watch on its population of 16.4 million people -- using a system known as the ECU911 Integrated Security Service, Xinhua reported. Used by the country's police, armed forces and fire brigade, it went into operation in November 2016 and has an emergency response and monitoring system.
Transportation

Tesla Owner Attempts Autopilot Defense During DUI Stop (arstechnica.com) 139

It turns out driving drunk is still illegal, even with a driver-assistance system active. "On Saturday, January 13, police discovered a man in his Tesla vehicle on the San Francisco-Oakland Bay Bridge," reports Ars Technica. "The San Francisco Chronicle reports that 'the man had apparently passed out in the stopped car while stuck in the flow of busy bridge traffic at 5:30pm, according to the California Highway Patrol." From the report: When police woke the man up, he assured officers that everything was fine because the car was "on autopilot." No one was injured in the incident, and the California Highway Patrol made a snarky tweet about it. Needless to say, other Tesla owners -- and people who own competing systems like Cadillac's Super Cruise -- should not follow this guy's example. No cars on the market right now have fully driverless technology available. Autopilot, Supercruise, and other products are driver assistance products -- they're designed to operate with an attentive human driver as a backup. Driving drunk using one of these systems is just as illegal as driving drunk in a conventional car.

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