According to a recent indictment from the U.S. Department of Justice, a 48-year-old Lithuanian scammer named Evaldas Rimasauskas managed to trick two American technology companies into wiring him $100 million. He was able to perform this feat "by masquerading as a prominent Asian hardware manufacturer," reports The Verge, citing court documents, "and tricking employees into depositing tens of millions of dollars into bank accounts in Latvia, Cyprus, and numerous other countries." From the report: What makes this remarkable is not Rimasauskas' particular phishing scam, which sounds rather standard in the grand scheme of wire fraud and cybersecurity exploits. Rather, it's the amount of money he managed to score and the industry from which he stole it. The indictment specifically describes the companies in vague terms. The first company is "multinational technology company, specializing in internet-related services and products, with headquarters in the United States," the documents read. The second company is a "multinational corporation providing online social media and networking services." Both apparently worked with the same "Asia-based manufacturer of computer hardware," a supplier that the documents indicate was founded some time in the late '80s. What's more important is that representatives at both companies with the power to wire vast sums of money were still tricked by fraudulent email accounts. Rimasauskas even went so far as to create fake contracts on forged company letterhead, fake bank invoices, and various other official-looking documents to convince employees of the two companies to send him money. Rimasauskas has been charged with one count of wire fraud, three counts of money laundering, and aggravated identity theft. In other words, he faces serious prison time of convicted -- each charge of wire fraud and laundering carries a max sentence of 20 years. The court documents don't reveal the names of the two companies. Though, one could surely think of a few candidates that would fit the descriptions provided in the court documents.
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The World Wide Web Consortium (W3C) has formally put forward highly controversial digital rights management as a new web standard. "Dubbed Encrypted Media Extensions (EME), this anti-piracy mechanism was crafted by engineers from Google, Microsoft, and Netflix, and has been in development for some time," reports The Register. "The DRM is supposed to thwart copyright infringement by stopping people from ripping video and other content from encrypted high-quality streams." From the report: The latest draft was published last week and formally put forward as a proposed standard soon after. Under W3C rules, a decision over whether to officially adopt EME will depend on a poll of its members. That survey was sent out yesterday and member organizations, who pay an annual fee that varies from $2,250 for the smallest non-profits to $77,000 for larger corporations, will have until April 19 to register their opinions. If EME gets the consortium's rubber stamp of approval, it will lock down the standard for web browsers and video streamers to implement and roll out. The proposed standard is expected to succeed, especially after web founder and W3C director Sir Tim Berners-Lee personally endorsed the measure, arguing that the standard simply reflects modern realities and would allow for greater interoperability and improve online privacy. But EME still faces considerable opposition. One of its most persistent vocal opponents, Cory Doctorow of the Electronic Frontier Foundation, argues that EME "would give corporations the new right to sue people who engaged in legal activity." He is referring to the most recent controversy where the W3C has tried to strike a balance between legitimate security researchers investigating vulnerabilities in digital rights management software, and hackers trying to circumvent content protection. The W3C notes that the EME specification includes sections on security and privacy, but concedes "the lack of consensus to protect security researchers remains an issue." Its proposed solution remains "establishing best practices for responsible vulnerability disclosure." It also notes that issues of accessibility were ruled to be outside the scope of the EME, although there is an entire webpage dedicated to those issues and finding solutions to them.
An anonymous reader quotes a report from Ars Technica: If the U.S. adopts a "dig once" policy, construction workers would install conduits just about any time they build new roads and sidewalks or upgrade existing ones. These conduits are plastic pipes that can house fiber cables. The conduits might be empty when installed, but their presence makes it a lot cheaper and easier to install fiber later, after the road construction is finished. The idea is an old one. U.S. Rep. Anna Eshoo (D-Calif.) has been proposing dig once legislation since 2009, and it has widespread support from broadband-focused consumer advocacy groups. It has never made it all the way through Congress, but it has bipartisan backing from lawmakers who often disagree on the most controversial broadband policy questions, such as net neutrality and municipal broadband. It even got a boost from Rep. Marsha Blackburn (R-Tenn.), who has frequently clashed with Democrats and consumer advocacy groups over broadband -- her "Internet Freedom Act" would wipe out the Federal Communications Commission's net neutrality rules, and she supports state laws that restrict growth of municipal broadband. Blackburn, chair of the House Communications and Technology Subcommittee, put Eshoo's dig once legislation on the agenda for a hearing she held yesterday on broadband deployment and infrastructure. Blackburn's opening statement (PDF) said that dig once is among the policies she's considering to "facilitate the deployment of communications infrastructure." But her statement did not specifically endorse Eshoo's dig once proposal, which was presented only as a discussion draft with no vote scheduled. The subcommittee also considered a discussion draft that would "creat[e] an inventory of federal assets that can be used to attach or install broadband infrastructure." Dig once legislation received specific support from Commerce Committee Chairman Greg Walden (R-Ore.), who said that he is "glad to see Ms. Eshoo's 'Dig Once' bill has made a return this Congress. I think that this is smart policy and will help spur broadband deployment across the country."
A hacker or group of hackers calling themselves the "Turkish Crime Family" claim they have access to at least 300 million iCloud accounts, and will delete the alleged cache of data if Apple pays a ransom by early next month. Motherboard is reporting that the hackers are demanding "$75,000 in Bitcoin or Ethereum, another increasingly popular crypto-currency, or $100,000 worth of iTunes gift cards in exchange for deleting the alleged cache of data." From the report: The hackers provided screenshots of alleged emails between the group and members of Apple's security team. One also gave Motherboard access to an email account allegedly used to communicate with Apple. "Are you willing to share a sample of the data set?" an unnamed member of Apple's security team wrote to the hackers a week ago, according to one of the emails stored in the account. (According to the email headers, the return-path of the email is to an address with the @apple.com domain). The hackers also uploaded a YouTube video of them allegedly logging into some of the stolen accounts. The hacker appears to access an elderly woman's iCloud account, which includes backed-up photos, and the ability to remotely wipe the device. Now, the hackers are threatening to reset a number of the iCloud accounts and remotely wipe victim's Apple devices on April 7, unless Apple pays the requested amount. According to one of the emails in the accessed account, the hackers claim to have access to over 300 million Apple email accounts, including those use @icloud and @me domains. However, the hackers appear to be inconsistent in their story; one of the hackers then claimed they had 559 million accounts in all. The hackers did not provide Motherboard with any of the supposedly stolen iCloud accounts to verify this claim, except those shown in the video.
An anonymous reader shares an EFF article: Today, the Supreme Court heard arguments in a case that could allow companies to keep a dead hand of control over their products, even after you buy them. The case, Impression Products v. Lexmark International, is on appeal from the Court of Appeals for the Federal Circuit, who last year affirmed its own precedent allowing patent holders to restrict how consumers can use the products they buy. That decision, and the precedent it relied on, departs from long established legal rules that safeguard consumers and enable innovation. When you buy something physical -- a toaster, a book, or a printer, for example -- you expect to be free to use it as you see fit: to adapt it to suit your needs, fix it when it breaks, re-use it, lend it, sell it, or give it away when you're done with it. Your freedom to do those things is a necessary aspect of your ownership of those objects. If you can't do them, because the seller or manufacturer has imposed restrictions or limitations on your use of the product, then you don't really own them. Traditionally, the law safeguards these freedoms by discouraging sellers from imposing certain conditions or restrictions on the sale of goods and property, and limiting the circumstances in which those restrictions may be imposed by contract. But some companies are relentless in their quest to circumvent and undermine these protections. They want to control what end users of their products can do with the stuff they ostensibly own, by attaching restrictions and conditions on purchasers, locking down their products, and locking you (along with competitors and researchers) out. If they can do that through patent law, rather than ordinary contract, it would mean they could evade legal limits on contracts, and that any one using a product in violation of those restrictions (whether a consumer or competitor) could face harsh penalties for patent infringement.
Tractor owners across the country are reportedly hacking their John Deere tractors using firmware that's cracked in Easter Europe and traded on invite-only, paid online forums. The reason is because John Deere and other manufacturers have "made it impossible to perform 'unauthorized' repair on farm equipment," which has obviously upset many farmers who see it "as an attack on their sovereignty and quite possibly an existential threat to their livelihood if their tractor breaks at an inopportune time," reports Jason Koebler via Motherboard. As is the case with most modern-day engineering vehicles, the mechanical problems experienced with the newer farming tractors are often remedied via software. From the report: The nightmare scenario, and a fear I heard expressed over and over again in talking with farmers, is that John Deere could remotely shut down a tractor and there wouldn't be anything a farmer could do about it. A license agreement John Deere required farmers to sign in October forbids nearly all repair and modification to farming equipment, and prevents farmers from suing for "crop loss, lost profits, loss of goodwill, loss of use of equipment [...] arising from the performance or non-performance of any aspect of the software." The agreement applies to anyone who turns the key or otherwise uses a John Deere tractor with embedded software. It means that only John Deere dealerships and "authorized" repair shops can work on newer tractors. "If a farmer bought the tractor, he should be able to do whatever he wants with it," Kevin Kenney, a farmer and right-to-repair advocate in Nebraska, told me. "You want to replace a transmission and you take it to an independent mechanic -- he can put in the new transmission but the tractor can't drive out of the shop. Deere charges $230, plus $130 an hour for a technician to drive out and plug a connector into their USB port to authorize the part." "What you've got is technicians running around here with cracked Ukrainian John Deere software that they bought off the black market," he added.
Orome1 quotes a report from Help Net Security: Google Nest's Dropcam, Dropcam Pro, Nest Cam Outdoor and Nest Cam Indoor security cameras can be easily disabled by an attacker that's in their Bluetooth range. The vulnerabilities are present in the latest firmware version running on the devices (v5.2.1). They were discovered by researcher Jason Doyle last fall, and their existence responsibly disclosed to Google, but have still not been patched. The first two flaws can be triggered and lead to a buffer overflow condition if the attacker sends to the camera a too-long Wi-Fi SSID parameter or a long encrypted password parameter, respectively. Triggering one of these flaws will make the devices crash and reboot. The third flaw is a bit more serious, as it allows the attacker to force the camera to temporarily disconnect from the wireless network to which it is connected by supplying it a new SSID to connect to. If that particular SSID does not exist, the camera drops its attempt to associate with it and return to the original Wi-Fi network, but the whole process can last from 60 to 90 seconds, during which the camera won't be recording. Nest has apparently already prepared a patch but hasn't pushed it out yet. (It should be rolling out "in the coming days.")
An anonymous reader quotes a report from NBC News: President Donald Trump signed a law on Tuesday authorizing funding for a crewed NASA mission to Mars. The new bill (S.442) adds a crewed mission to the red planet as a key NASA objective and authorizes the space agency to direct test human space flight programs that will enable more crewed exploration in deep space. The space agency has $19.5 billion in funding for the 2018 fiscal year, which starts this October. Trump had allocated $19.1 billion for NASA in his budget, which is slightly down from the current year, but still an improvement from the past decade, which saw the end of the space shuttle program. The commander in chief signed the bill surrounded by astronauts and his former Republican rivals, Senator Ted Cruz of Texas and Senator Marco Rubio of Florida, who both sponsored the bill. Getting to Mars, though, isn't expected to happen during the Trump presidency. NASA has its sights set on getting to the red planet in the 2030s. In the near term, NASA plans to test its Orion spacecraft and Space Launch System rocket, in addition to visiting an asteroid and redirecting a chunk of it into orbit around the moon. Astronauts could later visit the boulder and use the mission to test some of the tools needed for a Mars mission.
Twitter said on Tuesday it had suspended more than half a million accounts since the middle of 2015 as the company steps up efforts to tackle "violent extremism" on its microblogging platform. From a report: The company shut down a total of 376,890 accounts in the last six months of 2016, Twitter said in its latest transparency report.
An anonymous reader writes: "Scientists from the Hong Kong Baptist University (HKBU) have developed a new user authentication system that relies on reading lip motions while the user speaks a password out loud," reports BleepingComputer. Called "lip password" the system combines the best parts of classic password-based systems with the good parts of biometrics. The system relies on the uniqueness of someone's lips, such as shape, texture, and lip motions, but also allows someone to change the lip motion (password), in case the system ever gets compromised. Other biometric solutions, such as fingerprints, iris scans, and facial features, become eternally useless once compromised.
IBM has unveiled its "Blockchain as a Service," which is based on the open source Hyperledger Fabric, version 1.0 from The Linux Foundation. "IBM Blockchain is a public cloud service that customers can use to build secure blockchain networks," TechCrunch reports, noting that it's "the first ready-for-primetime implementation built using that technology." From the report: Although the blockchain piece is based on the open source Hyperledger Fabric project of which IBM is a participating member, it has added a set of security services to make it more palatable for enterprise customers, while offering it as a cloud service helps simplify a complex set of technologies, making it more accessible than trying to do this alone in a private datacenter. The Hyperledger Fabric project was born around the end of 2015 to facilitate this, and includes other industry heavyweights such as State Street Bank, Accenture, Fujitsu, Intel and others as members. While the work these companies have done to safeguard blockchain networks, including setting up a network, inviting members and offering encrypted credentials, was done under the guise of building extra safe networks, IBM believes it can make them even safer by offering an additional set of security services inside the IBM cloud. While Jerry Cuomo, VP of blockchain technology at IBM, acknowledges that he can't guarantee that IBM's blockchain service is unbreachable, he says the company has taken some serious safeguards to protect it. This includes isolating the ledger from the general cloud computing environment, building a security container for the ledger to prevent unauthorized access, and offering tamper-responsive hardware, which can actually shut itself down if it detects someone trying to hack a ledger. What's more, IBM claims their blockchain product is built in a highly auditable way to track all of the activity that happens within a network, giving administrators an audit trail in the event something did go awry.
New submitter devrtm writes: It appears that Bitcoin, a currency designed with anonymity in mind, can be effectively used almost anywhere in the world, except in a few countries where it is regulated, and in one country where you can only use it if you give up your privacy. That country is the United States. I have accumulated quite a few BTC from the currency's early days where block rewards were still at $50. There was a period of time where one could get a nearly anonymous debit card, or use BTC online with merchants. Nowadays, non-U.S. payment providers no longer issue debit cards to the U.S. residents and the U.S.-based merchants accepting BTC are nearly extinct. The only way to use BTC in the U.S. is to convert it to USD. Unfortunately, that conversion requires giving up your personal information to a U.S.-based BTC payment processor, and there are rumors that signing up for those services raises red flags with certain three letter acronym organizations. I have nothing to hide, but I do value my privacy. Can one freely and anonymously live off of their Bitcoin wallet in the U.S.? I am afraid the answer is no. Does anyone have an experience that proves me wrong? Please share.
Thomas Claburn, reporting for The Register: The US Third Circuit Court of Appeals today upheld a lower court ruling of contempt against a chap who claimed he couldn't remember the password to decrypt his computer's hard drives. In so doing, the appeals court opted not to address a lower court's rejection of the defendant's argument that being forced to reveal his password violated his Fifth Amendment protection against self-incrimination. In the case under review, the US District Court for the Eastern District of Pennsylvania held the defendant (referred to in court documents as "John Doe" because his case is partially under seal) in contempt of court for willfully disobeying and resisting an order to decrypt external hard drives that had been attached to his Mac Pro computer. The defendant's computer, two external hard drives, an iPhone 5S, and an iPhone 6 Plus had been seized as part of a child pornography investigation.