The Almighty Buck

OpenAI Asks Investors Not To Back Rival Startups Such as Elon Musk's xAI (ft.com) 52

Financial Times has more details on the new fundraise closed by OpenAI. From the report: OpenAI has asked investors to avoid backing rival start-ups such as Anthropic and Elon Musk's xAI, as it secures $6.6bn in new funding and seeks to shut out challengers to its early lead in generative artificial intelligence. [...] During the negotiations, the company made clear that it expected an exclusive funding arrangement, according to three people with knowledge of the discussions. Seeking exclusive relationships with investors restricts rivals' access to capital and strategic partnerships. The move by the maker of ChatGPT risks inflaming existing tensions with competitors, especially Musk, who is suing OpenAI. Venture firms are party to sensitive information about the companies they invest in, and close relationships with one company can make it difficult or contentious to also back a rival. But exclusivity is rarely insisted on, according to VCs, and many leading firms have spread their bets in certain sectors. Sequoia Capital and Andreessen Horowitz, for instance, have backed multiple AI start-ups, including both OpenAI and Musk's xAI.
Privacy

Crooks Made Millions By Breaking Into Execs' Office365 Inboxes, Feds Say (arstechnica.com) 55

An anonymous reader quotes a report from Ars Technica: Federal prosecutors have charged a man for an alleged "hack-to-trade" scheme that earned him millions of dollars by breaking into the Office365 accounts of executives at publicly traded companies and obtaining quarterly financial reports before they were released publicly. The action, taken by the office of the US Attorney for the district of New Jersey, accuses UK national Robert B. Westbrook of earning roughly $3.75 million in 2019 and 2020 from stock trades that capitalized on the illicitly obtained information. After accessing it, prosecutors said, he executed stock trades. The advance notice allowed him to act and profit on the information before the general public could. The US Securities and Exchange Commission filed a separate civil suit against Westbrook seeking an order that he pay civil penalties and return all ill-gotten gains. [...]

By obtaining material information, Westbrook was able to predict how a company's stock would perform once it became public. When results were likely to drive down stock prices, he would place "put" options, which give the purchaser the right to sell shares at a specific price within a specified span of time. The practice allowed Westbrook to profit when shares fell after financial results became public. When positive results were likely to send stock prices higher, Westbrook allegedly bought shares while they were still low and later sold them for a higher price. The prosecutors charged Westbrook with one count each of securities fraud and wire fraud and five counts of computer fraud. The securities fraud count carries a maximum penalty of up to 20 years' prison time and $5 million in fines The wire fraud count carries a maximum penalty of up to 20 years in prison and a fine of either $250,000 or twice the gain or loss from the offense, whichever is greatest. Each computer fraud count carries a maximum five years in prison and a maximum fine of either $250,000 or twice the gain or loss from the offense, whichever is greatest.
"The SEC is engaged in ongoing efforts to protect markets and investors from the consequences of cyber fraud," Jorge G. Tenreiro, acting chief of the SEC's Crypto Assets and Cyber Unit, said in a statement. "As this case demonstrates, even though Westbrook took multiple steps to conceal his identity -- including using anonymous email accounts, VPN services, and utilizing bitcoin -- the Commission's advanced data analytics, crypto asset tracing, and technology can uncover fraud even in cases involving sophisticated international hacking."
Earth

Switzerland and Italy Redraw Border Due To Melting Glaciers (bbc.com) 38

An anonymous reader quotes a report from the BBC: Switzerland and Italy have redrawn part of their border in the Alps due to melting glaciers, caused by climate change. Part of the area affected will be beneath the Matterhorn, one of Europe's tallest mountains, and close to a number of popular ski resorts. Large sections of the Swiss-Italian border are determined by glacier ridgelines or areas of perpetual snow, but melting glaciers have caused these natural boundaries to shift, leading to both countries seeking to rectify the border. Switzerland officially approved the agreement on the change on Friday, but Italy is yet to do the same. This follows a draft agreement by a joint Swiss-Italian commission back in May 2023.

Statistics published last September showed that Switzerland's glaciers lost 4% of their volume in 2023, the second biggest loss ever after 2022's record melt of 6%. An annual report is issued each year by the Swiss Glacier Monitoring Network (Glamos), which attributed the record losses to consecutive very warm summers, and 2022 winter's very low snowfall. Researchers say that if these weather patterns continue, the thaw will only accelerate. On Friday, Switzerland said that the redefined borders had been drawn up in accordance with the economic interests of both parties. It is thought that clarifying the borders will help both countries determine which is responsible for the upkeep of specific natural areas.

Swiss-Italian boundaries will be changed in the region of Plateau Rosa, the Carrel refuge and Gobba di Rollin -- all are near the Matterhorn and popular ski resorts including Zermatt. The exact border changes will be implemented and the agreement published once both countries have signed it. Switzerland says that the approval process for signing the agreement is under way in Italy.

AI

TSMC Execs Dismiss OpenAI Chief's $7 Trillion Chip Plan as 'Podcasting Bro' Vision (msn.com) 114

Taiwan Semiconductor Manufacturing Co (TSMC) executives have dismissed OpenAI CEO Sam Altman's ambitious chip-making proposal as unrealistic, according to The New York Times. Altman, seeking to boost AI computing power, pitched a $7 trillion plan to build 36 semiconductor plants over several years during a visit to TSMC's Taiwan headquarters. TSMC leaders reportedly found Altman's proposal so far-fetched that they privately referred to him as a "podcasting bro," reflecting skepticism about his grasp of the semiconductor industry's complexities. The world's largest contract chipmaker, already grappling with multi-billion dollar expansion projects, viewed Altman's scheme as overly risky given the massive capital requirements and market uncertainties.
The Almighty Buck

Promises of 'Passive Income' On Amazon Led To Death Threats For Negative Online Review, FTC Says (cnbc.com) 78

"The Federal Trade Commission is cracking down on 'automation' companies that launch and manage online businesses on behalf of customers in exchange for an upfront investment," reports CNBC's Annie Palmer. "The latest case targets Ascend Ecom, which ran an e-commerce money-making scheme, primarily on Amazon." The FTC accuses the e-commerce company of defrauding consumers of at least $25 million through false claims, deceptive marketing practices, and attempts to suppress negative reviews. From the report: Jamaal Sanford received a disturbing email in May of last year. The message, whose sender claimed to be part of a "Russian shadow team," contained Sanford's home address, social security number and his daughter's college. It came with a very specific threat. The sender said Sanford, who lives in Springfield, Missouri, would only only be safe if he removed a negative online review. "Do not play tough guy," the email said. "You have nothing to gain by keeping the reviews and EVERYTHING to lose by not cooperating."

Months earlier, Sanford had left a scathing review for an e-commerce "automation" company called Ascend Ecom on the rating site Trustpilot. Ascend's purported business was the launching and managing of Amazon storefronts on behalf of clients, who would pay money for the service and the promise of earning thousands of dollars in "passive income." Sanford had invested $35,000 in such a scheme. He never recouped the money and is now in debt, according to a Federal Trade Commission lawsuit unsealed on Friday. His experience is a key piece of the FTC's suit, which accuses Ascend of breaking federal laws by making false claims related to earnings and business performance, and threatening or penalizing customers for posting honest reviews, among other violations. The FTC is seeking monetary relief for Ascend customers and to prevent Ascend from doing business permanently.

Movies

James Cameron Joins Board of Stability AI In Coup For Tech Firm 23

An anonymous reader quotes a report from the Hollywood Reporter: In a major coup for the artificial intelligence company, Stability AI says that Avatar, Terminator and Titanic director James Cameron will join its board of directors. Stability AI is the firm that developed the Stable Diffusion text-to-image generative AI model, an image- and video-focused model that is among those being closely watched by many in Hollywood, particularly in the visual effects industry. In fact, Stability AI's CEO, Prem Akkaraju, is no stranger to the business, having previously served as the CEO of visual effects firm WETA Digital. Sean Parker, the former president of Facebook and founder of Napster, also recently joined the AI firm as executive chairman.

As a director, Cameron has long been eager to push the boundaries of what is technologically possible in filmmaking (anyone who has seen the Terminator franchise knows that he is also familiar with the pitfalls of technology run amok). He was among the earliest directors to embrace the potential of computer-generated visual effects, and he continued to use his films (most recently Avatar: The Way of Water) to move the entire field forward.
"I've spent my career seeking out emerging technologies that push the very boundaries of what's possible, all in the service of telling incredible stories," Cameron said in a statement. "I was at the forefront of CGI over three decades ago, and I've stayed on the cutting edge since. Now, the intersection of generative AI and CGI image creation is the next wave. The convergence of these two totally different engines of creation will unlock new ways for artists to tell stories in ways we could have never imagined. Stability AI is poised to lead this transformation. I'm delighted to collaborate with Sean, Prem, and the Stability AI team as they shape the future of all visual media."
United States

Americans Can Now Renew Passports Online 46

An anonymous reader quotes a report from NPR: The State Department announced Wednesday that its online renewal system is now fully operational, after testing in pilot programs, and available to adult passport holders whose passport has expired within the past five years or will expire in the coming year. It is not available for the renewal of children's passports, for first-time passport applicants for renewal applicants who live outside the United States or for expedited applications. "By offering this online alternative to the traditional paper application process, the Department is embracing digital transformation to offer the most efficient and convenient passport renewal experience possible," Secretary of State Antony Blinken said in a statement. The department said it estimated that about 5 million Americans would be able to use this service a year. In 2023, it processed 24 million passports, about 40% of which were renewals.

Assistant Secretary of State for Consular Affairs Rena Bitter, whose bureau oversees passport processing said the department hoped to expand the program in the coming years to possibly include Americans living abroad, those seeking to renew a second passport and children's passports. "This is not going to be the last thing that we do," she told reporters. "We want to see how this goes and then we'll start looking at ways to continue to make this service available to more American citizens in the coming months and years."
You can renew your passport at www.Travel.State.Gov/renewonline.
Medicine

FDA Grants Neuralink With Breakthrough Device Tag For 'Blindsight' Implant 14

Neuralink said on Tuesday it has received the FDA's "breakthrough device" designation for its experimental implant aimed at restoring vision. Called Blindsight, the device "will enable even those who have lost both eyes and their optic nerve to see," said Neuralink founder Elon Musk. Reuters reports: The FDA's breakthrough tag is given to certain medical devices that provide treatment or diagnosis of life-threatening conditions. It is aimed at speeding up development and review of devices currently under development. Neuralink did not immediately respond to a request seeking details about when it expects the Blindsight device to move into human trials.
Python

Fake Python Coding Tests Installed Malicious Software Packages From North Korea (scmagazine.com) 22

"New malicious software packages tied to the North Korean Lazarus Group were observed posing as a Python coding skills test for developers seeking a new job at Capital One, but were tracked to GitHub projects with embedded malware," reports SC magazine: Researchers at ReversingLabs explained in a September 10 blog post that the scheme was a follow-on to the VMConnect campaign that they first identified in August 2023 in which developers were lured into downloading malicious code via fake job interviews.
More details from The Hacker News These packages, for their part, have been published directly on public repositories like npm and PyPI, or hosted on GitHub repositories under their control. ReversingLabs said it identified malicious code embedded within modified versions of legitimate PyPI libraries such as pyperclip and pyrebase... It's implemented in the form of a Base64-encoded string that obscures a downloader function, which establishes contact with a command-and-control server in order to execute commands received as a response.

In one instance of the coding assignment identified by the software supply chain firm, the threat actors sought to create a false sense of urgency by requiring job seekers to build a Python project shared in the form of a ZIP file within five minutes and find and fix a coding flaw in the next 15 minutes. This makes it "more likely that he or she would execute the package without performing any type of security or even source code review first," Zanki said, adding "that ensures the malicious actors behind this campaign that the embedded malware would be executed on the developer's system."

Tom's Hardware reports that "The capacity for exploitation at that point is pretty much unlimited, due to the flexibility of Python and how it interacts with the underlying OS. This is a good time to refer to PEP 668 which enforces virtual environments for non-system wide Python installs."

More from The Hacker News Some of the aforementioned tests claimed to be a technical interview for financial institutions like Capital One and Rookery Capital Limited, underscoring how the threat actors are impersonating legitimate companies in the sector to pull off the operation. It's currently not clear how widespread these campaigns are, although prospective targets are scouted and contacted using LinkedIn, as recently also highlighted by Google-owned Mandiant.
United States

Microsoft, Google, Meta, and Amazon Fight Calls to Pay More for Electric Grid Updates (msn.com) 66

The Washingon Post reports that a regulatory dispute in Ohio may help answer a big question about America's power grid: who will pay for the huge upgrades needed to meet soaring energy demand "from the data centers powering the modern internet and artificial intelligence revolution?" Google, Amazon, Microsoft and Meta are fighting a proposal by an Ohio power company to significantly increase the upfront energy costs they'll pay for their data centers, a move the companies dubbed "unfair" and "discriminatory" in documents filed with Ohio's Public Utility Commission last month. American Electric Power Ohio said in filings that the tariff increase was needed to prevent new infrastructure costs from being passed on to other customers such as households and businesses if the tech industry should fail to follow through on its ambitious, energy-intensive plans. The case could set a national precedent that helps determine whether and how other states force tech firms to be accountable for the costs of their growing energy consumption... The energy demands of data centers have created similar concerns in other hot spots such as Northern Virginia, Atlanta and Maricopa County, Arizona, leaving experts concerned that the U.S. power grid may not be capable of dealing with the combined needs of the green energy transition and the computing boom that artificial intelligence companies say is coming...

Energy customers must sometimes make a monthly payment to a utility that is a percentage of the maximum amount of electricity they predict that they could need. In Ohio, data center companies had agreed to pay 60 percent of the projected amount. But in May, the power company proposed a new, 10-year fee structure raising the charges to 90 percent of the expected load, even if they don't end up using that much. The major tech companies — all of whom are increasing spending on data center infrastructure to compete in AI — strenuously opposed the proposed contract in documents filed last month... According to testimony from AEP Ohio Vice President Lisa Kelso, there are 50 pending requests from data center customers seeking electric service at more than 90 sites, a potential 30,000 megawatts of additional load — enough to power more than 20 million households. That additional demand would more than triple the utility's previous peak load in 2023, she said. Between 2020 and 2024, the data center energy load in central Ohio increased sixfold, from 100 to 600 megawatts, her testimony reads. By 2030, that amount will reach 5,000 megawatts, according to the utility's signed agreements, she testified...

Meeting that demand will require AEP Ohio to build new transmission lines, an expensive and time-consuming process... Chief among the power company's concerns, according to the documents, is what will happen if it invests billions of dollars into new grid infrastructure only for the data centers to leave for greener pastures, or for the AI bubble to burst and the facilities to need much less power than initially projected. If the power company spends big on new infrastructure but the power demand it was built to serve doesn't materialize, other customers — including business and residential payers — will be stuck with the bill, the utility said... AEP Ohio's testimony in the case also questions whether data centers bring as much to local communities as factories or other high-energy-load businesses. Since 2019, non-data center businesses have created approximately 25 jobs for every megawatt of power requested, while data centers have created less than one job per megawatt, according to Kelso's testimony.

The tech companies rejected this criticism, saying the number of jobs they create is not relevant to how much power they have a right to purchase, and highlighted their other contributions to local economies... Amazon said in filings that it pays fees as high as 75 percent of projected demand in some states but that Ohio's proposal to bill it 90 percent goes too far.

"Should the Ohio tariff be approved, Microsoft and Google both threatened in their testimony to leave Ohio." (Although at the same time, "pressure on the electric grid is mounting all over the country...")

And the article points out that on Thursday, "the White House announced measures intended to speed up data center construction for AI projects, including by accelerating permitting."
Businesses

Dumbphones and Fax Machines Are the New Boss Flex (msn.com) 115

Some executives are embracing old technology like dumbphones and fax machines, seeking digital detox and prioritizing focus. They see these vintage tools as power moves, allowing them to control their time and avoid constant distractions, WSJ writes in a story. These bosses believe old tech enhances leadership, enabling them to be present and productive.
Businesses

Ford Seeks Patent For Tech That Listens To Driver Conversations To Serve Ads (therecord.media) 166

Ford is seeking a patent for technology that would allow it to tailor in-car advertising by listening to conversations among vehicle occupants, as well as by analyzing a car's historical location and other data, according to a patent application published late last month. The Record: "In one example, the controller may monitor user dialogue to detect when individuals are in a conversation," the patent application says. "The conversations can be parsed for keywords or phrases that may indicate where the occupants are traveling to." The tech -- labeled as "in-vehicle advertisement presentation" -- will determine where a car is located, how fast it is traveling, what type of road it is driving on and whether it is in traffic. It also will predict routes, speeds and destinations to customize ads to drivers, the application said.

The system could pull data from "audio signals within the vehicle and/or historical user data, selecting a number of the advertisements to present to the user during the trip," the patent application said. By monitoring dialogue between vehicle occupants the ad controller system can determine when to deliver audio versus visual ads, providing ads to drivers as they travel "through a human-machine interface (HMI) of the vehicle," the application said.

Movies

The Search For the Face Behind Mavis Beacon Teaches Typing (wired.com) 56

An anonymous reader quotes a report from Wired: Jazmin Jones knowswhat she did. "If you're online, there's this idea of trolling," Jones, the director behindSeeking Mavis Beacon, said during a recent panel for her new documentary. "For this project, some things we're taking incredibly seriously ... and other things we're trolling. We're trolling this idea of a detective because we're also, like,ACAB." Her trolling, though, was for a good reason. Jones and fellow filmmaker Olivia Mckayla Ross did it in hopes of finding the woman behind Mavis Beacon Teaches Typing. The popular teaching tool was released in 1987 by The Software Toolworks, a video game and software company based in California that produced educational chess, reading, and math games. Mavis, essentially the "mascot" of the game, is a Black woman donned in professional clothes and a slicked-back bun. Though Mavis Beacon was not an actual person, Jones and Ross say that she is one of the first examples of Black representation they witnessed in tech. Seeking Mavis Beacon, which opened in New York City on August 30 and is rolling out to other cities in September, is their attempt to uncover the story behind the face, which appeared on the tool's packaging and later as part of its interface.

The film shows the duo setting up a detective room, conversing over FaceTime, running up to people on the street, and even tracking down a relative connected to the ever-elusive Mavis. But the journey of their search turned up a different question they didn't initially expect: What are the impacts of sexism, racism, privacy, and exploitation in a world where you can present yourself any way you want to? Using shots from computer screens, deep dives through archival footage, and sit-down interviews, the noir-style documentary reveals that Mavis Beacon is actually Renee L'Esperance, a Black model from Haiti who was paid $500 for her likeness with no royalties, despite the program selling millions of copies. [...]

In a world where anyone can create images of folks of any race, gender, or sexual orientation without having to fully compensate the real people who inspired them, Jones and Ross are working to preserve not only the data behind Mavis Beacon but also the humanity behind the software. On the panel, hosted by Black Girls in Media, Ross stated that the film's social media has a form where users of Mavis Beacon can share what the game has meant to them, for archival purposes. "On some level, Olivia and I are trolling ideas of worlds that we never felt safe in or protected by," Jones said during the panel. "And in other ways, we are honoring this legacy of cyber feminism, historians, and care workers that we are very seriously indebted to."
You can watch the trailer for "Seeking Mavis Beacon" on YouTube.
Technology

Nvidia Takes an Added Role Amid AI Craze: Data-Center Designer (msn.com) 24

Nvidia dominates the chips at the center of the AI boom. It wants to conquer almost everything else that makes those chips tick, too. From a report: Chief Executive Jensen Huang is increasingly broadening his company's focus -- and seeking to widen its advantage over competitors -- by offering software, data-center design services and networking technology in addition to its powerful silicon brains. More than a supplier of a valuable hardware component, he is trying to build Nvidia into a one-stop shop for all the key elements in the data centers where tools like OpenAI's ChatGPT are created and deployed -- or what he calls "AI factories."

Huang emphasized Nvidia's growing prowess at data-center design following an earnings report Wednesday that exceeded Wall Street forecasts. The report came days after rival AMD agreed to pay nearly $5 billion to buy data-center design and manufacturing company ZT Systems to try to gain ground on Nvidia. "We have the ability fairly uniquely to integrate to design an AI factory because we have all the parts," Huang said in a call with analysts. "It's not possible to come up with a new AI factory every year unless you have all the parts." It is a strategy designed to extend the business success that has made Nvidia one of the world's most valuable companies -- and to insulate it from rivals eager to eat into its AI-chip market share, estimated at more than 80%. Gobbling up more of the value in AI data centers both adds revenue and makes its offerings stickier for customers.

[...] Nvidia is building on the effectiveness of its 17-year-old proprietary software, called CUDA, which enables programmers to use its chips. More recently, Huang has been pushing resources into a superfast networking protocol called InfiniBand, after acquiring the technology's main equipment maker, Mellanox Technologies, five years ago for nearly $7 billion. Analysts estimate that InfiniBand is used in most AI-training deployments. Nvidia is also building a business that supplies AI-optimized Ethernet, a form of networking widely used in traditional data centers. The Ethernet business is expected to generate billions of dollars in revenue within a year, Chief Financial Officer Colette Kress said Wednesday. More broadly, Nvidia sells products including central processors and networking chips for a range of other data-center equipment that is fine-tuned to work seamlessly together.

HP

Hewlett Packard To Pursue Mike Lynch's Estate For Up To $4 Billion (theguardian.com) 58

Hewlett Packard Enterprise has confirmed it will push ahead with a high court lawsuit against the estate of the deceased tech tycoon Mike Lynch in which it is seeking damages of up to $4 billion. From a report: The US company said in a statement it would follow the legal proceedings "through to their conclusion" despite Lynch's death last month when his yacht sank off the coast of Italy. HPE won a civil claim against Lynch in the English high court in 2022, after accusing him and his former finance director Sushovan Hussain of fraud over its $11 billion takeover of his software company Autonomy in 2011.

A ruling on damages is expected soon, although the judge presiding over the case, Mr Justice Hildyard, wrote in 2022 that he expected final damages to be "substantially less than is claimed." Lynch, 59, who was cleared in a separate criminal fraud trial over the Autonomy deal in the US in June, and his 18-year-old daughter Hannah, were among seven people who died after the Bayesian superyacht sank off the coast of Sicily last month.

Android

OSOM, the Company Formed From Essential's Ashes, is Apparently in Shambles 15

A former executive of smartphone startup OSOM Products has filed a lawsuit alleging the company's founder misused funds for personal expenses, including two Lamborghinis and a lavish lifestyle. Mary Ross, OSOM's ex-Chief Privacy Officer, is seeking access to company records in a Delaware court filing.

OSOM, founded in 2020 by former Essential employees, launched two products: the Solana-backed Saga smartphone and a privacy cable. Android founder Andy Rubin founded Essential, which sought to compete with Apple and Android-makers on a smartphone, but later shutdown after not find many takers for its phone. The lawsuit claims OSOM founder Jason Keats used company money for racing hobbies, first-class travel, and mortgage payments.
IT

How Not To Hire a North Korean IT Spy (csoonline.com) 17

CSO Online reports that North Korea "is actively infiltrating Western companies using skilled IT workers who use fake identities to pose as remote workers with foreign companies, typically but not exclusively in the U.S."

Slashdot reader snydeq shares their report, which urges information security officers "to carry out tighter vetting of new hires to ward off potential 'moles' — who are increasingly finding their way onto company payrolls and into their IT systems." The schemes are part of illicit revenue generation efforts by the North Korean regime, which faces financial sanctions over its nuclear weapons program, as well as a component of the country's cyberespionage activities.

The U.S. Treasury department first warned about the tactic in 2022. Thosands of highly skilled IT workers are taking advantage of the demand for software developers to obtain freelance contracts from clients around the world, including in North America, Europe, and East Asia. "Although DPRK [North Korean] IT workers normally engage in IT work distinct from malicious cyber activity, they have used the privileged access gained as contractors to enable the DPRK's malicious cyber intrusions," the Treasury department warned... North Korean IT workers present themselves as South Korean, Chinese, Japanese, or Eastern European, and as U.S.-based teleworkers. In some cases, DPRK IT workers further obfuscate their identities by creating arrangements with third-party subcontractors.

Christina Chapman, a resident of Arizona, faces fraud charges over an elaborate scheme that allegedly allowed North Korean IT workers to pose as U.S. citizens and residents using stolen identities to obtain jobs at more than 300 U.S. companies. U.S. payment platforms and online job site accounts were abused to secure jobs at more than 300 companies, including a major TV network, a car manufacturer, a Silicon Valley technology firm, and an aerospace company... According to a U.S. Department of Justice indictment, unsealed in May 2024, Chapman ran a "laptop farm," hosting the overseas IT workers' computers inside her home so it appeared that the computers were located in the U.S. The 49-year-old received and forged payroll checks, and she laundered direct debit payments for salaries through bank accounts under her control. Many of the overseas workers in her cell were from North Korea, according to prosecutors. An estimated $6.8 million were paid for the work, much of which was falsely reported to tax authorities under the name of 60 real U.S. citizens whose identities were either stolen or borrowed...

Ukrainian national Oleksandr Didenko, 27, of Kyiv, was separately charged over a years-long scheme to create fake accounts at U.S. IT job search platforms and with U.S.-based money service transmitters. "Didenko sold the accounts to overseas IT workers, some of whom he believed were North Korean, and the overseas IT workers used the false identities to apply for jobs with unsuspecting companies," according to the U.S. Department of Justice. Didenko, who was arrested in Poland in May, faces U.S. extradition proceedings...

How this type of malfeasance plays out from the perspective of a targeted firm was revealed by security awareness vendor KnowBe4's candid admission in July that it unknowingly hired a North Korean IT spy... A growing and substantial body of evidence suggests KnowBe4 is but one of many organizations targeted by illicit North Korean IT workers. Last November security vendor Palo Alto reported that North Korean threat actors are actively seeking employment with organizations based in the U.S. and other parts of the world...

Mandiant, the Google-owned threat intel firm, reported last year that "thousands of highly skilled IT workers from North Korea" are hunting work. More recently, CrowdStrike reported that a North Korean group it dubbed "Famous Chollima" infiltrated more than 100 companies with imposter IT pros.

The article notes the infiltrators use chatbots to tailor the perfect resume "and further leverage AI-created deepfakes to pose as real people." And the article includes this quote from a former intelligence analyst for the U.S. Air Force turned cybersecurity strategist at Sysdig. "In some cases, they may try to get jobs at tech companies in order to steal their intellectual property before using it to create their own knock-off technologies."

The article closes with its suggested "countermeasures," including live video-chats with prospective remote-work applicants — and confirming an applicant's home address.
Technology

France To Trial Ban on Mobile Phones At School For Children Under 15 (theguardian.com) 81

France is to trial a ban on mobile phones at school for pupils up to the age of 15, seeking to give children a "digital pause" that, if judged successful, could be rolled out nationwide from January. From a report: Just under 200 secondary schools will take place in the experiment that will require youngsters to hand over phones on arrival at reception. It takes the prohibition on the devices further than a 2018 law that banned pupils at primary and secondary schools from using their phones on the premises but allowed them to keep possession of them. Announcing the trial on Tuesday, the acting education minister, Nicole Belloubet, said the aim was to give youngsters a "digital pause." If the trial proves successful, the ban would be introduced in all schools from January, Belloubet said.

A commission set up by the president, Emmanuel Macron, expressed concern that the overexposure of children to screens was having a detrimental effect on their health and development. A 140-page report published in March concluded there was "a very clear consensus on the direct and indirect negative effects of digital devices on sleep, on being sedentary, a lack of physical activity and the risk of being overweight and even obese ... as well as on sight."

The Almighty Buck

Telecom Behind AI Biden Robocall Settles With FCC For $1 Million (cyberscoop.com) 20

New submitter ElimGarak000 shares a report from CyberScoop: The Texas-based voice service provider that sent AI-generated robocalls of President Joe Biden to New Hampshire voters ahead of its Democratic presidential primary has agreed to pay a $1 million fine and implement enhanced verification protocols designed to prevent robocalls and phone number spoofing in a settlement with the Federal Communications Commission. The fine represents half the amount the FCC was originally seeking in an enforcement action proposed against Lingo Telecom in May. Despite that, agency leaders characterized the settlement (PDF) as a successful effort to defend U.S. telecommunications networks and election infrastructure from nascent AI and deepfake technologies. [...]

In addition to the fine, the settlement requires Lingo Telecom to follow regulatory protocols that were put in place in 2020 to ensure telecommunications carriers authenticate caller identities using their networks. The protocols, known as STIR/SHAKEN, require carriers like Lingo to digitally verify and formally attest to the FCC that callers are legitimate and own the phone number they display on Caller ID. In the New Hampshire robocall case, Kramer and Life Corporation spoofed the phone number of Kathy Sullivan, a former state Democratic party official who was running a write-in campaign for Biden.

The FCC cited Lingo's inability to properly implement and enforce STIR/SHAKEN as a key failure in a February cease-and-desist letter, and again in May when the agency proposed a $2 million enforcement action. The company was also named in a civil lawsuit filed by the League of Women Voters and New Hampshire residents, seeking damages over the incident. Per terms of the settlement, Lingo Telecom must hire a senior manager knowledgeable in STIR/SHAKEN protocols and develop a compliance plan, new operating procedures and training programs. They must also report any incidents of non-compliance with STIR/SHAKEN within 15 days of discovery.
"Every one of us deserves to know that the voice on the line is exactly who they claim to be," FCC Chairwoman Jessica Rosenworcel said in a statement. "If AI is being used, that should be made clear to any consumer, citizen, and voter who encounters it. The FCC will act when trust in our communications networks is on the line."
Businesses

Smartphone Maker Nothing Mandates Full-Time Office Return, Urges Dissenters To Quit (fortune.com) 158

Nothing, a British startup seeking to challenge Apple's smartphone dominance, is hauling its employees back to the office full-time in the quest for growth. From a report: In a lengthy email disparaging remote work, which had been a tenet of Nothing CEO Carl Pei's workplace policy since its creation four years ago, Pei explained why his 450 employees needed to come to the office five days a week. "Remote work is not compatible with a high ambition level plus high speed," Pei said in an email to staff, which he shared on LinkedIn.

Pei gave three reasons for the strict return-to-office mandate. First, he said, the logistics of developing a smartphone, where design, engineering, and manufacturing departments collaborate, weren't conducive to remote working. He added that creativity and innovation worked better in person, allowing the company to do more with fewer resources. Third, Pei said Nothing's ambitions to scale to become a "generation-defining company" wouldn't be achievable with remote work.

According to Pei's email, the new mandate will take effect in two months, and he intends to hold a town hall in London to answer employees' questions. In his email, the Nothing CEO also suggested that employees who could not commit to five days in the office look for other employment. "We know it's not the right type of setup for everybody, and that's okay. We should look for a mutual fit. You should find an environment where you thrive, and we need to find people who want to go the full mile with us in the decades ahead."

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