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Australia

Australia Discontinues Its National Biometric ID Project (gizmodo.com.au) 41

The Australian Criminal Intelligence Commission's (ACIC) biometrics project, which adds facial recognition to a national crime database, is being discontinued following reports of delays and budget blowouts. From a report: This announcement comes after the project was suspended earlier this month and NEC Australia staff were escorted out of the building by security on Monday June 4. [...] ACIC contracted the NEC for the $52 million Biometric Identification Services project with the view of replacing the fingerprint identification system that is currently in place. The aim of the project, which was supposed to run until 2021, was to include palm print, foot prints and facial recognition to aid in police investigations. The Australian government stated that it wanted to provide Australians with a single digital identity by 2025.
Crime

Was the Stanford Prison Experiment a Sham? (nypost.com) 133

Frosty Piss writes: The Stanford Prison Experiment was conducted in 1971 by psychology professor Philip Zimbardo using college students to investigate the psychological effects of perceived power by focusing on the struggle between prisoners and prison officers. In the study, volunteers were randomly assigned to be either "guards" or "prisoners" in a mock prison, with Zimbardo serving as the superintendent. The results seemed to show that the students quickly embraced their assigned roles, with some guards enforcing authoritarian measures and ultimately subjecting some prisoners to psychological torture, while many of the prisoners passively accepted psychological abuse and, by the officers' request, actively harassed other prisoners who tried to stop it. After Berkeley graduate Douglas Korpi appeared to have a nervous breakdown while playing the role of an inmate, the experiment was shut down. There's just one problem: Korpi's breakdown was a sham. Dr. Ben Blum took to Medium to publish his claims. "Blum's expose -- based on previously unpublished recordings of Zimbardo, a Stanford psychology professor, and interviews with the participants -- offers evidence that the 'guards' were coached to be cruel," reports New York Post. "One of the men who acted as an inmate told Blum he enjoyed the experiment because he knew the guards couldn't actually hurt him."

"There were no repercussions. We knew [the guards] couldn't hurt us, they couldn't hit us. They were white college kids just like us, so it was a very safe situation," said Douglas Korpi, who was 22-years-old when he acted as an inmate in the study. The Berkeley grad now admits the whole thing was fake. Zimbardo also "admitted that he was an active participant in the study, meaning he had influence over the results," reports New York Post. According to an audio recording from the Stanford archive, you can hear Zimbardo encouraging the guards to act "tough."
Crime

After a Decade, 77-Year-Old Gets Back $110,000 Lost In 'Nigerian Prince' Scam (kansascity.com) 127

Slashdot reader grep -v '.*' * shares a surprising story. The Kansas City Star profiles the victim of a three-year con that started with an email to a Yahoo inbox back in 2005. A decade ago, Fred Haines was wandering the Wichita airport looking for a Nigerian man hauling two chests full of cash. After an hour of waiting and asking around, he finally came to the realization that the $65 million Nigerian fortune he thought he was inheriting was not coming after all. What is now coming, though, is the $110,000 he had been scammed out of, thanks to the work of the Kansas Attorney General's Office.

From 2005 to 2008, swindlers hoodwinked Haines, a self-employed handyman in Wichita, into spending thousands in pursuit of an imaginary inheritance from a Nigerian government official -- a con known as the Nigerian Prince Scam. Haines re-mortgaged his house three times in the process. Last year, in a settlement with the Department of Justice, Western Union admitted it knew some of its employees had conspired with scam artists to bilk people out of money and had failed to fix the problem. The company set aside $586 million to create a fund to refund victims across the U.S. and Canada... All victims who'd sent money to hucksters using the service were able to request refunds, but only those who had complained to law enforcement or Western Union were notified directly of the settlement.

"It got to the point where they were showing me that the president of Nigeria had sent me a letter. It had his picture on it and everything," Haines said. "I looked it up on the computer to see what the Nigerian president looked like, and it was him." Once, he received an email claiming to be from Robert Mueller, who was then the FBI director. The email was addressed to Haines, code-name "B-DOG," and it was signed with the FBI's address and official seal. "I wish you can remove doubt and suspicious and go ahead I assured you that you will never regret this fund release," the email said in part.

Haines is one of 344 victims who recovered a total of $1,758,988 through the Kansas Attorney General's office -- though when the office sent out 25,000 letters to possible scam victims, many of them were now skeptical of the promise of unclaimed money, and "Some were even angry when employees called to follow up on those who hadn't responded."
United Kingdom

Prosecution of UK News Photographer Collapses After Recording Disproves Police Testimony (wordpress.com) 205

Slashdot reader Andy Smith writes: Slashdot reported last September how I was arrested while standing in a field near a road accident, as I photographed the scene for a newspaper. I was initially given a police warning for "obstruction", but the warning was then cancelled and I was prosecuted for resisting arrest and breach of the peace. These are serious charges and I was facing a prison sentence. Fortunately we had one very strong piece of evidence: A recording of my arrest. Not only did the recording prove that two police officers' testimony was false, but it caught one of them boasting about how he had conspired with a prosecutor to arrest and prosecute me. Yesterday the case was dropped, and now the two police officers and the prosecutor face a criminal investigation.
Crime

Two Teenaged Gamers Plead 'Not Guilty' For Fatal Kansas Swatting Death (reuters.com) 148

Two more men entered pleas in federal court for their roles in a SWAT call that led to a fatal police shooting in Kansas: not guilty. An anonymous reader quotes Reuters: Shane Gaskill, 19, of Wichita, Kansas, and Casey Viner, 18, from a suburb of Cincinnati, pleaded not guilty on Wednesday and remained free on $10,000 bond, court records showed. Both of the suspects live with their parents, local media reported. In the so-called "swatting" incident, in which someone falsely reports an emergency requiring a police response, Viner got upset at Gaskill over a video game they played online, federal prosecutors said, and Viner contacted a known "swatter"...and asked him to make the false report to police at an address that had been provided by Gaskill. Viner did not know that Gaskill no longer lived at the address, but Gaskill knew, prosecutors said.

After media reports of the shooting, Gaskill urged [swatter Tyler] Barriss to delete their communications and Viner wiped his phone, according to the indictment... Barriss and Viner face federal charges of conspiracy and several counts of wire fraud. Viner and Gaskill were charged with obstruction of justice and conspiracy to obstruct justice, and Gaskill was also charged with wire fraud and additional counts of obstruction of justice.

In a jailhouse interview in January, Barriss told a local news team that "Whether you hang me from a tree, or you give me 5, 10, 15 years... I don't think it will ever justify what happened... I hope no one ever does it, ever again. I hope it's something that ceases to exist."

In April, while still in jail, Barriss gained access to the internet then posted "All right, now who was talking shit? >:) Your ass is about to get swatted."
The Courts

The Silk Road's Alleged Right-Hand Man Will Finally Face a US Court (arstechnica.com) 73

It's been nearly five years since the FBI surrounded Ross Ulbricht in the science fiction section of a San Francisco library, arrested him, and grabbed the laptop from which he had run the dark web drug bazaar known as the Silk Road. Ulbricht went on trial in a New York courtroom, and is currently serving a life sentence without parole. But even now, the Silk Road saga still hasn't ended: Half a decade after Ulbricht's arrest, his alleged advisor, mentor and right-hand man Roger Clark will finally face a US court, too. From a report: On Friday, the FBI, IRS, DHS, and prosecutors in the Southern District of New York announced the extradition of 56-year-old Canadian man Roger Clark from a Thai jail cell to New York to face newly unsealed charges for his role in Silk Road's operation. The indictment accuses Clark, who allegedly went by the pseudonyms Variety Jones, Cimon, and Plural of Mongoose in his role as Silk Road's consigliere, of crimes ranging from narcotics trafficking to money laundering. But even those charges don't capture the outsize role Clark is believed to have played in building and managing the Silk Road, from security audits to marketing, and even reportedly encouraging Ulbricht to use violence to maintain his empire.

"As Ulbricht's right-hand man, Roger Clark allegedly advised him of methods to thwart law enforcement during the operation of this illegal ploy, pocketing hundreds of thousands of dollars in the process," writes FBI assistant director William Sweeney in a press statement. "Today's extradition of Roger Clark shows that despite alleged attempts to operate under the radar, he was never out of our reach."

Crime

US Files Criminal Charges Against Theranos's Elizabeth Holmes, Ramesh Balwani (wsj.com) 124

John Carreyrou, reporting for WSJ: Federal prosecutors filed criminal charges against Theranos founder Elizabeth Holmes and the blood-testing company's former No. 2 executive, alleging that they defrauded investors out of hundreds of millions of dollars and also defrauded doctors and patients. The indictments of Ms. Holmes and Ramesh "Sunny" Balwani, Theranos's former president and chief operating officer who was also Ms. Holmes's boyfriend, are the culmination of a two-and-a-half-year investigation by the U.S. attorney's office in San Francisco, sparked by articles in The Wall Street Journal that raised questions about the company's technology and practices. Ms. Holmes, 34 years old, and Mr. Balwani, 53, were charged with two counts of conspiracy to commit wire fraud and nine counts of wire fraud in an indictment handed up Thursday and unsealed Friday.
Communications

Guy Robs Someone At Gunpoint For Domain Name, Gets 20 Years In Jail (vice.com) 134

Yesterday, 43-year-old Iowa man Sherman Hopkins Jr. was sentenced to 20 years in prison for attempting to rob a domain name from another man at gunpoint in 2017. As Motherboard reports, "this may be the first time someone has attempted to steal a domain name at gunpoint." From the report: Last June, Hopkins broke into the home of 26 year-old Ethan Deyo in Cedar Rapids, Iowa one afternoon and demanded that Deyo to log on to his computer to transfer the domain name for "doitforstate.com" to another account. According to Deyo's bio on his personal website, he is a web entrepreneur who previously worked for the web hosting service GoDaddy. After seeing Hopkins enter the apartment, Deyo locked himself into his room and Hopkins kicked in the door. Hopkins kicked in the door and "pistol-whipped" Deyo, held a gun to his head and used a stun gun on him during the encounter. While he attempted to wrestle the gun away from Hopkins, Deyo was shot in the leg, but he eventually gained control of the firearm and shot Hopkins multiple times in the chest. It's unclear why Hopkins wanted the domain name or who he was transferring the domain name to.
Crime

Police Departments Are Training Dogs To Sniff Out Thumb Drives (cnet.com) 159

A CNET report provides some insight on an elite K-9 search class that trains dogs to sniff out electronics, including phones, hard drives and microSD cards smaller than your thumb. From the report: Only one out of every 50 dogs tested qualifies to become an electronic storage detection, or ESD, dog, says Kerry Halligan, a K-9 instructor with the Connecticut State Police. That's because it's a lot harder to detect the telltale chemical in electronics than it is to sniff out narcotics, bombs, fire accelerants or people, she says. But Labrador retrievers like Harley, with their long snouts and big muzzles, can pick up even the faintest olfactory clues. These tech-seeking dogs are helping law enforcement find child pornography stashed in hidden hard drives, uncover concealed phones, nab white-collar evidence kept on hard drives and track calls stored on SIM cards. The most famous case occurred in 2015, when a Labrador retriever named Bear found a hidden flash drive containing child pornography in the home of former Subway spokesman Jared Fogle. The district attorney called the discovery vital to Fogle's conviction.
Businesses

FBI Recovers $14M From Bogus Business Account Wire Transfers (arstechnica.com) 17

Federal authorities announced Monday that they had "disrupted" what they call "Business Email Compromise" schemes, which involve a malicious actor sending a phishing email and somehow convincing employees with access to a company's financial credentials to transfer money fraudulently. From a report: The FBI added that $2.4 million dollars was seized, while $14 million in "fraudulent wire transfers" was recovered. Seventy-four people were arrested worldwide, including 42 in the United States, 29 in Nigeria, and three others in Canada, Mauritius, and Poland. "Fraudsters can rob people of their life's savings in a matter of minutes," Attorney General Jeff Sessions said in a statement. "These are malicious and morally repugnant crimes. The Department of Justice has taken aggressive action against fraudsters in recent months, conducting the largest sweep of fraud against American seniors in history back in February." The Department of Justice did not immediately provide a full list of those arrested, or the criminal complaints, but it said that, "since the Internet Crime Complaint Center (IC3) began formally keeping track of BEC and its variant, email account compromise (EAC), there has been a loss of over $3.7 billion reported to the IC3."
Government

California City Tries Universal Basic Income Programs -- Including One Targeting Potential Shooters (latimes.com) 271

An anonymous reader quotes the Los Angeles Times: Mayor Michael Tubbs, a Stockton native and Stanford graduate who is all of 27 years old, wants to give at least $500 a month to a select group of residents. They'll be able to spend it as they wish, for 18 months, in a pilot program to test the impact of what's called guaranteed basic income... Workers in Silicon Valley and the San Francisco-Oakland area, driven out of the cuckoo housing markets in those communities, have snapped up cheaper properties in Stockton, accepting the bargain of killer commutes... But Stockton still suffers the crushing burdens of poverty, crime and now the rising rents and home prices that come with gentrification. For those who don't have the education or training to work 60 miles away on tech's front lines, Stockton still struggles to develop jobs that pay a living wage...

Facebook's Mark Zuckerberg and Space X's Elon Musk have both pitched the idea in terms of inevitability, given the growing income gap and the threat of massive job losses because of automation... As small as the program will be, it's not going to dramatically affect many Stockton residents, but the goal is to get a sense of whether such an infusion on a broader scale can significantly alter lives and boost the economy.

The program will be funded by private and nonprofit sources, according to the article. And while it may not start until early next year, Stockton is already launching a similar program where the benefits are more targeted. Stockton is about to award stipends of up to $1,000 a month to residents deemed most likely to shoot somebody... The idea is that a small number of people are responsible for a large percentage of violence, and offering them an alternative path -- with counseling and case management over an 18-month period, along with a stipend if they stay the course -- can be a good investment all around.
Crime

Uber Driver Kills His Passenger (washingtonpost.com) 231

An anonymous reader quotes the Washington Post: An Uber driver in Denver killed his passenger early Friday morning, telling a witness he had fired several times in self-defense, police said... Police say Michael Andre Hancock shot Hyun Kim, 45, with a semiautomatic pistol during a confrontation at 2:47 a.m. Friday, according to a partially redacted probable-cause affidavit provided to The Washington Post... Hancock does not have a criminal record in the state, the Denver Post reported. An Uber official said Hancock has been driving with the popular ride-hailing app for three years. His father, also named Michael Hancock, told KDVR-TV he had a permit to carry a concealed handgun. Putnam, the police spokeswoman, said she was unsure if that had been confirmed.

Company policy says riders and drivers cannot carry firearms in vehicles while using the ride-sharing app. Some states have regulations that override that prohibition, but in Colorado, which allows guns in vehicles to protect lives and property, the regulation for Uber users still applies, Uber spokeswoman Carly DeBeikes told The Post in a statement. Uber, rocked by allegations of inadequate screening and abuse among its drivers and corporate leaders, said Hancock's access to the app was removed

Uber was fined $8.9 million by Colorado regulators last year "for allowing 57 people with past criminal or motor vehicle offenses to drive for the company," reports the Denver Post. They note that in some cases Uber's drivers only had revoked or suspended licenses, while "a similar investigation of smaller competitor Lyft found no violations."
Crime

Canadian Hacker Sentenced To 5 Years For Yahoo Security Breach (seattletimes.com) 21

The computer hacker who worked with Russian spies was sentenced to five years in prison Tuesday for his role in a massive security breach at Yahoo. "U.S. Judge Vince Chhabria also fined Karim Baratov $250,000 during a sentencing hearing in San Francisco," The Associated Press reports. From the report: Baratov, 23, pleaded guilty in November to nine felony hacking charges. He acknowledged in his plea agreement that he began hacking as a teen seven years ago and charged customers $100 per hack to access web-based emails. Prosecutors allege he was "an international hacker for hire" who indiscriminately hacked for clients he did not know or vet, including dozens of jobs paid for by Russia's Federal Security Service. Baratov, who was born in Kazakhstan but lived in Toronto, Canada, where he was arrested last year, charged customers to obtain another person's webmail passwords by tricking them to enter their credentials into a fake password reset page. Prosecutors said Russian security service hired Baratov to target dozens of email accounts using information obtained from the Yahoo hack.

"Deterrence is particularly important in a case like this," the judge said during the hearing. He rejected prosecutors call for a prison sentence of nearly 10 years, noting Baratov's age and clean criminal record prior to his arrest. Baratov has been in custody since his arrest last year. He told the judge Tuesday that his time behind bars has been "a very humbling and eye-opening experience." He apologized to those he hacked and promised "to be a better man" and obey the law upon his release. The judge said it is likely Baratov will be deported once he is released from prison.

Youtube

Two 18-Year-Olds Charged With Hacking YouTube's Most Popular Videos (variety.com) 39

An anonymous reader quotes Variety: Two 18-year-old French citizens have been arrested in Paris and charged with crimes related to the hack of Vevo's YouTube accounts last month that resulted in pro-Palestine messages being posted on several popular videos, according to prosecutors... Authorities allege the duo gained access to the YouTube account maintained by Vevo, to alter the content of multiple music videos, including Luis Fonsi's "Despacito" -- the most-viewed music video on YouTube in 2017, which recently surpassed 5 billion views.

The hackers also targeted videos by Selena Gomez, Taylor Swift, Katy Perry, Chris Brown and Shakira, replacing their thumbnail images, video titles and descriptions. Vevo has since removed all changes the hackers made on its YouTube videos... Paris prosecutors charged Gabriel K.A.B. and with five criminal counts and Nassim B. with six counts, including "fraudulently modifying data contained in an automated data processing system."

Last month Fortune published quotes from a Twitter user who claimed responsibility for the attacks.

"Its just for fun i just use script 'youtube-change-title-video' and i write 'hacked' don t judge me i love youtube."
United States

Gamers Behind Fatal 'SWAT' Call Now Face Life In Prison (wlwt.com) 270

An anonymous reader writes: 18-year-old Casey Viner, who instigated the 911 call which led to a fatal shooting in Wichita (hiring Tyler Barriss to perform the actual call), is in big trouble. "If convicted on the 10 counts he faces, Viner could spend almost the rest of his life in prison and pay a $1,000,000 fine," reports a local Cincinnati news site. Ironically, Viner's father is a corporal with the county sheriff's department.

The 19-year-old intended target for the SWAT attack had supplied a real address in Wichita for a house where he used to live. But in an eerie coincidence, ten days before the fatal shooting in Wichita, Cincinnati police had responded to a similar SWAT call which had sent them to a house where Viner used to live. The local police said "the facts and circumstances and the verbiage were very, very similar."

25-year-old Tyler Barriss also faces a life sentence for false information which resulted in a death -- as well as several local charges. And Thursday a federal grand jury also indicted Barriss "for a threat that caused an evacuation of a high-profile FCC hearing" into net neutrality regulations just two weeks before the fatal Wichita shooting, "and another threat eight days later that targeted FBI headquarters."

Barriss's lawyer insists that his client wasn't responsible for the Wichita death, blaming instead a "gung-ho, crazy cop."
Bitcoin

About $1.2 Billion in Cryptocurrency Stolen Since 2017 (reuters.com) 53

Criminals have stolen about $1.2 billion in cryptocurrencies since the beginning of 2017, as bitcoin's popularity and the emergence of more than 1,500 digital tokens have put the spotlight on the unregulated sector, according to estimates from the Anti-Phishing Working Group released on Thursday. From a report: The estimates were part of the non-profit group's research on cryptocurrency and include reported and unreported theft. "One problem that we're seeing in addition to the criminal activity like drug trafficking and money laundering using cryptocurrencies is the theft of these tokens by bad guys," Dave Jevans, chief executive officer of cryptocurrency security firm CipherTrace, told Reuters in an interview.
Crime

Gamers Involved In Fatal Wichita 'Swatting' Indicted On Federal Charges (kansas.com) 432

bricko shares a report from Kansas: A federal grand jury has indicted the man accused in Wichita's fatal swatting as well as the two gamers involved in the video game dispute that prompted the false emergency call. The 29-page indictment was unsealed Wednesday in U.S. District Court for the District of Kansas. It charges 25-year-old Tyler Barriss, who is facing state court charges including involuntary manslaughter, with false information and hoaxes, cyberstalking, threatening to kill another or damage property by fire, interstate threats, conspiracy and several counts of wire fraud, according to federal court records. One of the gamers -- 18-year-old Casey S. Viner of North College Hill, Ohio -- is charged with several counts of wire fraud, conspiracy, obstruction of justice and conspiracy to obstruct justice. The other gamer -- 19-year-old Shane M. Gaskill of Wichita -- is charged with several counts of obstruction of justice, wire fraud and conspiracy to obstruct justice.
UPDATE (5/26/18): Both Barriss and Viner are now facing life in prison.
Crime

Alleged Owners of Mugshots.com Have Been Arrested For Extortion (lawandcrime.com) 101

Reader schwit1 writes: The alleged owners of Mugshots.com have been charged and arrested. These four men Sahar Sarid, Kishore Vidya Bhavnanie, Thomas Keesee, and David Usdan only removed a person's mugshot from the site if this individual paid a "de-publishing" fee, according to the California Attorney General on Wednesday. That's apparently considered extortion. On top of that, they also face charges of money laundering, and identity theft.

If you read a lot of articles about crime, then you're probably already familiar with the site (which is still up as of Friday afternoon). They take mugshots, slap the url multiple times on the image, and post it on the site alongside an excerpt from a news outlet that covered the person's arrest. According to the AG's office, the owners would only remove the mugshots if the person paid a fee, even if the charges were dismissed. This happened even if the suspect was only arrested because of "mistaken identity or law enforcement error." You can read the affidavit here.

The Almighty Buck

Hackers Steal Millions From Mexican Banks In Transfer Heist (reuters.com) 29

happyfeet2000 shares a report from Reuters: Thieves siphoned hundreds of millions of pesos out of Mexican banks, including No. 2 Banorte, by creating phantom orders that wired funds to bogus accounts and promptly withdrew the money, two sources close to the government's investigation said. Hackers sent hundreds of false orders to move amounts ranging from tens of thousands to hundreds of thousands of pesos from banks including Banorte, to fake accounts in other banks, the sources said, and accomplices then emptied the accounts in cash withdrawals in dozens of branch offices. The total amount is estimated to be as much as $20 million (~400 million pesos).
Crime

Suspect Identified In CIA 'Vault 7' Leak (nytimes.com) 106

An anonymous reader quotes a report from The New York Times: In weekly online posts last year, WikiLeaks released a stolen archive of secret documents about the Central Intelligence Agency's hacking operations, including software exploits designed to take over iPhones and turn smart television sets into surveillance devices. It was the largest loss of classified documents in the agency's history and a huge embarrassment for C.I.A. officials. Now, The New York Times has learned the identity of the prime suspect in the breach (Warning: source may be paywalled; alternative source): a 29-year-old former C.I.A. software engineer who had designed malware used to break into the computers of terrorism suspects and other targets.

F.B.I. agents searched the Manhattan apartment of the suspect, Joshua A. Schulte, one week after WikiLeaks released the first of the C.I.A. documents in March last year, and then stopped him from flying to Mexico on vacation, taking his passport, according to court records and family members. The search warrant application said Mr. Schulte was suspected of "distribution of national defense information," and agents told the court they had retrieved "N.S.A. and C.I.A. paperwork" in addition to a computer, tablet, phone and other electronics. But instead of charging Mr. Schulte in the breach, referred to as the Vault 7 leak, prosecutors charged him last August with possessing child pornography, saying agents had found the material on a server he created as a business in 2009 while he was a student at the University of Texas.

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