The Almighty Buck

Woeful Security On Financial Phone Apps Is Getting People Murdered 161

Longtime Slashdot reader theodp writes: Monday brought chilling news reports of the all-count trial convictions of three individuals for a conspiracy to rob and drug people outside of LGBTQ+ nightclubs in Manhattan's Hell's Kitchen neighborhood, which led to the deaths of two of their victims. The defendants were found guilty on all 24 counts, which included murder, robbery, burglary, and conspiracy. "As proven at trial," explained the Manhattan District Attorney's Office in a press release, "the defendants lurked outside of nightclubs to exploit intoxicated individuals. They would give them drugs, laced with fentanyl, to incapacitate their victims so they could take the victims' phones and drain their online financial accounts [including unauthorized charges and transfers using Cash App, Apple Cash, Apple Pay]." District Attorney Alvin L. Bragg, Jr. added, "My Office will continue to take every measure possible to protect New Yorkers from this type of criminal conduct. That includes ensuring accountability for those who commit this harm, while also working with financial companies to enhance security measures on their phone apps."

In 2024, D.A. Bragg called on financial companies to better protect consumers from fraud, including: adding a second and separate password for accessing the app on a smartphone as a default security option; imposing lower default limits on the monetary amount of total daily transfers; requiring wait times of up to a day and secondary verification for large monetary transactions; better monitoring of accounts for unusual transfer activities; and asking for confirmation when suspicious transactions occur. "No longer is the smartphone itself the most lucrative target for scammers and robbers -- it's the financial apps contained within," said Bragg as he released letters (PDF) sent to the companies that own Venmo, Zelle, and Cash App. "Thousands or even tens of thousands can be drained from financial accounts in a matter of seconds with just a few taps. Without additional protections, customers' financial and physical safety is being put at risk. I hope these companies accept our request to discuss commonsense solutions to deter scammers and protect New Yorkers' hard-earned money."

"Our cellphones aren't safe," warned the EFF's Cooper Quintin in a 2018 New York Times op-ed. "So why aren't we fixing them?" Any thoughts on what can and should be done with software, hardware, and procedures to stop "bank jackings"?
Bitcoin

Man Who Hijacked SEC's X Account To Pump Bitcoin Faces Up To 5 Years In Prison (gizmodo.com) 49

Eric Council Jr. pleaded guilty to identity theft and access device fraud after hijacking the SEC's X account to falsely announce Bitcoin ETF approval. He was compensated in Bitcoin by co-conspirators, and while the Justice Department continues its investigation, Council faces up to five years in prison. Gizmodo reports: According to the Justice Department, Council accessed the SEC's account using an attack called SIM swapping, in which a perpetrator uses social engineering to trick a phone carrier's customer service representatives into transferring an individual's phone number to a new device. Basically, they call into a support line and use pieces of personal information about a victim they have gathered online to convince the representative they are the person they are targeting. Once perpetrators take the number and can begin receiving text messages, they are able to reset the passwords of accounts on services like X. It is not really a "hack" in the traditional sense that they are not finding flaws in software but rather exploiting human trust.

Unfortunately for individuals like Council, all Bitcoin transactions are logged on a blockchain for anyone to see, leaving a trail of breadcrumbs for investigators to find. If he did make out with a lot of crypto, it would be hard to keep it hidden forever. Council allegedly did not post the message himself to the SEC's X account, but conducted the SIM swap and left the rest of the work to his co-conspirators who compensated Council in the form of, of course, Bitcoin. The price of the cryptocurrency rose by $1,000 after the fake announcement, according to the Justice Department, and fell by $2,000 after the SEC issued a correction. That could have led to a big windfall depending on how much Bitcoin the perpetrators held at the time.

Crime

'Serial Swatter' Who Made Nearly 400 Threatening Calls Gets 4 Years In Prison (thehill.com) 98

Alan W. Filion, an 18-year-old from Lancaster, Calif., was sentenced to four years in prison for making nearly 400 false bomb threats and threats of violence (source may be paywalled; alternative source) to religious institutions, schools, universities and homes across the country. The New York Times reports: The threatening calls Mr. Filion made would often cause large deployments of police officers to a targeted location, the Justice Department said in a news release. In some cases, officers would enter people's homes with their weapons drawn and detain those inside. In January 2023, Mr. Filion wrote on social media that his swats had often led the police to "drag the victim and their families out of the house cuff them and search the house for dead bodies."

Investigators linked Mr. Filion to over 375 swatting calls made in several states, including one that he made to the police in Sanford, Fla., saying that he would commit a mass shooting at the Masjid Al Hayy Mosque. During the call, he played audio of gunfire in the background. Mr. Filion was arrested in California in January 2024, and was then extradited to Florida to face state charges for making that threat. Mr. Filion began swatting for recreation in August 2022 before making it into a business, the Justice Department said. The teenager became a "serial swatter" and would make social media posts about his "swatting-for-a-fee" services, according to prosecutors.

In addition to pleading guilty to the false threat against the mosque in Florida, Mr. Filion pleaded guilty in three other swatting cases: a mass shooting threat to a public school in Washington State in October 2022; a bomb threat call to a historically Black college or university in Florida in May 2023; and a July 2023 call in which he claimed to be a federal law enforcement officer in Texas and told dispatchers that he had killed his mother and would kill any responding officers.

Crime

California Tech Founder Admits to Defrauding $4M For His Luxury Lifestyle (sfgate.com) 47

The tech startup "purported to make smart home and business products," writes America's Justice Department — products that were "meant to stop package theft, prevent weather damage to packages, and make it easier for emergency responders and delivery services to find homes and businesses." Royce Newcomb "developed prototypes of his products and received local and national media attention for them. For example, Time Magazine included his eLiT Address Box & Security System, which used mobile networks to pinpoint home and business locations, on its Best Inventions of 2021 list."

But then he told investors he'd also received a grant by the National Science Foundation — one of "several false representations to his investors to deceive and cheat them out of their money... Newcomb used the money to pay for gambling, a Mercedes and Jaguar, and a mansion." He also used the money to pay for refunds to other investors who wanted out, and to pay for new, unrelated projects without the investors' authorization. During this period, Newcomb also received a fraudulent COVID-19 loan for more than $70,000 from the Small Business Administration and fraudulent loans for more than $190,000 from private lenders. He lied about Strategic Innovations having hundreds of thousands and even millions in revenue to get these loans.

Newcomb was previously convicted federally in 2011 for running a real estate fraud scheme in Sacramento. He was sentenced to more than five years in prison for that offense, and he was on federal supervised release for that offense when he committed the offenses charged in this case... Newcomb faces maximum statutory penalties of 20 years in prison and a $250,000 fine for the wire fraud charge, and 10 years in prison and a $250,000 fine for the money laundering charge...

This effort is part of a California COVID-19 Fraud Enforcement Strike Force operation, one of five interagency COVID-19 fraud strike force teams established by the U.S. Department of Justice.

SFGate writes that "Despite receiving significant funding, his startup, Strategic Innovations, never made a dime or released any products to market, according to legal documents." The owner of a California tech startup has pleaded guilty to stealing over $4 million from investors, private lenders and the U.S. government in order to live a luxurious lifestyle, the United States Attorney's Office announced Monday... When investors asked about product delays and when they'd be paid back, Newcomb made excuses and provided conflicting info, telling them that there were supply chain issues or software problems, according to the indictment. In reality, federal prosecutors said, he was using the money to travel and continue to make these lavish personal expenses.
Security

Ransomware Payments Dropped 35% In 2024 (therecord.media) 44

An anonymous reader quotes a report from CyberScoop: Ransomware payments saw a dramatic 35% drop last year compared to 2023, even as the overall frequency of ransomware attacks increased, according to a new report released by blockchain analysis firm Chainalysis. The considerable decline in extortion payments is somewhat surprising, given that other cybersecurity firms have claimed that 2024 saw the most ransomware activity to date. Chainalysis itself warned in its mid-year report that 2024's activity was on pace to reach new heights, but attacks in the second half of the year tailed off. The total amount in payments that Chainalysis tracked in 2024 was $812.55 million, down from 2023's mark of $1.25 billion.

The disruption of major ransomware groups, such as LockBit and ALPHV/BlackCat, were key to the reduction in ransomware payments. Operations spearheaded by agencies like the United Kingdom's National Crime Agency (NCA) and the Federal Bureau of Investigation (FBI) caused significant declines in LockBit activity, while ALPHV/BlackCat essentially rug-pulled its affiliates and disappeared after its attack on Change Healthcare. [...] Additionally, [Chainalysis] says more organizations have become stronger against attacks, with many choosing not to pay a ransom and instead using better cybersecurity practices and backups to recover from these incidents. [...]
Chainalysis also says ransomware operators are letting funds sit in wallets, refraining from moving any money out of fear they are being watched by law enforcement.

You can read the full report here.
The Internet

Believing in Aliens Derailed This Internet Pioneer's Career. Now He's Facing Prison (bloomberg.com) 44

Joseph Firmage, a former Silicon Valley prodigy who built a $2.5 billion web services company in the 1990s, is now being sued by investors who claim he defrauded them through an alleged antigravity machine scheme. In 1998, at the height of his success as CEO of USWeb, Firmage claimed an alien appeared in his bedroom, derailing his corporate career. He then spent decades pursuing UFO research and attempting to develop antigravity propulsion technology, raising millions from investors.

Court documents allege Firmage and associates are responsible for roughly $25 million in losses through various companies and schemes. Some investors say he used elaborate ruses, including people impersonating government officials, to solicit funds. Firmage, currently in jail on elder abuse charges, maintains he was actually the victim of international scammers who exploited his access to investors.
The Internet

Thailand Cuts Internet and Power Supply To Some Areas in Myanmar in Blow To Scam Centers (yahoo.com) 17

Thailand cut power supply, fuel and internet to some border areas with Myanmar on Wednesday. It's an attempt to choke scam syndicates operating out of there that have become a growing security concern. Reuters: Scam compounds in Southeast Asia are suspected to have entrapped hundreds of thousands of people in illegal online and telecom operations, generating billions of dollars annually, according to a 2023 U.N. report. Thai Interior Minister Anutin Charnvirakul visited the Provincial Electricity Authority headquarters in Bangkok on Wednesday to oversee the effort to fight the crime rings. "They may turn to other sources of power supply or generate their own electricity. In the Thai Security Council orders, it also includes the halt in supplying oil and internet to them, which means that from now on any damage that occurs will have no connection to any resources in Thailand."
Crime

Senator Hawley Proposes Jail Time For People Who Download DeepSeek 226

Senator Josh Hawley has introduced a bill that would criminalize the import, export, and collaboration on AI technology with China. What this means is that "someone who knowingly downloads a Chinese developed AI model like the now immensely popular DeepSeek could face up to 20 years in jail, a million dollar fine, or both, should such a law pass," reports 404 Media. From the report: Hawley introduced the legislation, titled the Decoupling America's Artificial Intelligence Capabilities from China Act, on Wednesday of last year. "Every dollar and gig of data that flows into Chinese AI are dollars and data that will ultimately be used against the United States," Senator Hawley said in a statement. "America cannot afford to empower our greatest adversary at the expense of our own strength. Ensuring American economic superiority means cutting China off from American ingenuity and halting the subsidization of CCP innovation."

Hawley's statement explicitly says that he introduced the legislation because of the release of DeepSeek, an advanced AI model that's competitive with its American counterparts, and which its developers claimed was made for a fraction of the cost and without access to as many and as advanced of chips, though these claims are unverified. Hawley's statement called DeepSeek "a data-harvesting, low-cost AI model that sparked international concern and sent American technology stocks plummeting." Hawley's statement says the goal of the bill is to "prohibit the import from or export to China of artificial intelligence technology, "prohibit American companies from conducting AI research in China or in cooperation with Chinese companies," and "Prohibit U.S. companies from investing money in Chinese AI development."
AI

Police Use of AI Facial Recognition Results In Murder Case Being Tossed (cleveland.com) 50

"A jury may never see the gun that authorities say was used to kill Blake Story last year," reports Cleveland.com.

"That's because Cleveland police used a facial recognition program — one that explicitly says its results are not admissible in court — to obtain a search warrant, according to court documents." The search turned up what police say is the murder weapon in the suspect's home. But a Cuyahoga County judge tossed that evidence after siding with defense attorneys who argued that the search warrant affidavit was misleading and relied on inadmissible evidence. If an appeals court upholds the judge's ruling to suppress the evidence, prosecutors acknowledge their case is likely lost...

The company that produced the facial recognition report, Clearview AI, has been used in hundreds of law enforcement investigations throughout Ohio and has faced lawsuits over privacy violations.

Not only does Cleveland lack a policy governing the use of artificial intelligence, Ohio lawmakers also have failed to set standards for how police use the tool to investigate crimes. "It's the wild, wild west in Ohio," said Gary Daniels, a lobbyist for the American Civil Liberties Union. The lack of state regulation of how law enforcement uses advanced technologies — no laws similarly govern the use of drones or license plate readers — means it is essentially up to agencies how they use the tools.

The affidavit for the search warrant was signed by a 28-year police force veteran, according to the article — but it didn't disclose the use of Clearview's technology.

Clearview's report acknowledged their results were not admissible in court — but then provided the suspect's name, arrest record, Social Security number, according to the article, and "noted he was the most likely match for the person in the convenience store."

Thanks to tlhIngan (Slashdot reader #30,335) for sharing the news.
Crime

Drone Pilot To Plead Guilty In Collision That Grounded Aircraft Fighting Palisades Fire (latimes.com) 29

Earlier this month, a civilian drone collided with a Canadian CL-415 firefighting plane combating the Palisades Fire, causing damage that grounded the aircraft and temporarily halted all aerial firefighting operations. Federal and state officials have since identified the operator of that drone as Peter Tripp Akemann of Culver City, who has agreed to plead guilty to a misdemeanor, pay a fine and complete community service. Prosecutors said he could still face up to a year in federal prison. The Los Angeles Times reports: The drone, which authorities say was flying in restricted airspace on Jan. 9, put a fist-sized hole in the left wing of a Super Scooper -- a massive fixed-wing plane that can drop large amounts of water onto a fire. The collision knocked the plane out of commission for about five days and destroyed the drone.

"Like a lot of individuals, he was curious about what was happening in that area," acting U.S. Atty. Joseph T. McNally said on Friday. "The problem with that... is with the amount of firefighting planes you have in that area dropping so they can get water in the Pacific Ocean it interferes with those operations. It's not the time to fly drones anytime that we have these emergencies in Southern California."

As part of the plea agreement, Akemann agreed to pay full restitution to the government of Quebec, Canada, which supplied the plane, and the company that repaired the plane. It cost at least $65,169 to fix the aircraft, prosecutors said. Akemann also agreed to complete 150 hours of community service in support of wildfire relief efforts.

Crime

Silk Road Creator Ross Ulbricht Pardoned (bbc.com) 339

Slashdot readers jkister and databasecowgirl share the news of President Donald Trump issuing a pardon to Silk Road creator Ross Ulbricht. An anonymous reader shares a report from the BBC: US President Donald Trump says he has signed a full and unconditional pardon for Ross Ulbricht, who operated Silk Road, the dark web marketplace where illegal drugs were sold. Ulbricht was convicted in 2015 in New York in a narcotics and money laundering conspiracy and sentenced to life in prison. Trump posted on his Truth Social platform that he had called Ulbricht's mother to inform her that he had granted a pardon to her son. Silk Road, which was shut down in 2013 after police arrested Ulbricht, sold illegal drugs using Bitcoin, as well as hacking equipment and stolen passports.

"The scum that worked to convict him were some of the same lunatics who were involved in the modern day weaponization of government against me," Trump said in his post online on Tuesday evening. "He was given two life sentences, plus 40 years. Ridiculous!" Ulbricht was found guilty of charges including conspiracy to commit drug trafficking, money laundering and computer hacking. During his trial, prosecutors said Ulbricht's website, hosted on the hidden "dark web", sold more than $200 million worth of drugs anonymously.

AI

Authors Seek Meta's Torrent Client Logs and Seeding Data In AI Piracy Probe (torrentfreak.com) 15

An anonymous reader quotes a report from TorrentFreak: Meta is among a long list of companies being sued for allegedly using pirated material to train its AI models. Meta has never denied using copyrighted works but stressed that it would rely on a fair use defense. However, with rightsholders in one case asking for torrent client data and 'seeding lists' for millions of books allegedly shared in public, the case now takes a geeky turn. [...] A few weeks ago, the plaintiffs asked for permission to submit a third amended complaint (PDF). After uncovering Meta's use of BitTorrent to source copyright-infringing training data from pirate shadow library, LibGen, the request was justified, they argued. Specifically, the authors say that Meta willingly used BitTorrent to download pirated books from LibGen, knowing that was legally problematic. As a result, Meta allegedly shared copies of these books with other people, as is common with the use of BitTorrent.

"By downloading through the bit torrent protocol, Meta knew it was facilitating further copyright infringement by acting as a distribution point for other users of pirated books," the amended complaint notes. "Put another way, by opting to use a bit torrent system to download LibGen's voluminous collection of pirated books, Meta 'seeded' pirated books to other users worldwide." Meta believed that the allegations weren't sufficiently new to warrant an update to the complaint. The company argued that it was already a well-known fact that it used books from these third-party sources, including LibGen. However, the authors maintained that the 'torrent' angle is novel and important enough to warrant an update. Last week, United States District Judge Vince Chhabria agreed, allowing the introduction of these new allegations. In addition to greenlighting the amended complaint, the Judge also allowed the authors to conduct further testimony on the "seeding" angle. "[E]vidence about seeding is relevant to the existing claim because it is potentially relevant to the plaintiffs' assertion of willful infringement or to Meta's fair use defense," Judge Chhabria wrote last week.

With the court recognizing the relevance of Meta's torrenting activity, the plaintiffs requested reconsideration of an earlier order, where discovery on BitTorrent-related matters was denied. Through a filing submitted last Wednesday, the plaintiffs hope to compel Meta to produce its BitTorrent logs and settings, including peer lists and seeding data. "The Order denied Plaintiffs' motion to compel production of torrenting data, including Meta's BitTorrent client, application logs, and peer lists. This data will evidence how much content Meta torrented from shadow libraries and how much it seeded to third parties as a host of this stolen IP," they write. While archiving lists of seeders is not a typical feature for a torrent client, the authors are requesting Meta to disclose any relevant data. In addition, they also want the court to reconsider its ruling regarding the crime-fraud exception. That's important, they suggest, as Meta's legal counsel was allegedly involved in matters related to torrenting. "Meta, with the involvement of in-house counsel, decided to obtain copyrighted works without permission from online databases of copyrighted works that 'we know to be pirated, such as LibGen," they write. The authors allege that this involved "seeding" files and that Meta attempted to "conceal its actions" by limiting the amount of data shared with the public. One Meta employee also asked for guidance, as "torrenting from a corporate laptop doesn't feel right."

Encryption

Europol Chief Says Big Tech Has 'Responsibility' To Unlock Encrypted Messages (ft.com) 80

Technology giants must do more to co-operate with law enforcement on encryption or they risk threatening European democracy, according to the head of Europol, as the agency gears up to renew pressure on companies at the World Economic Forum in Davos this week. From a report: Catherine De Bolle told the Financial Times she will meet Big Tech groups in the Swiss mountain resort to discuss the matter, claiming that companies had a "social responsibility" to give the police access to encrypted messages that are used by criminals to remain anonymous. "Anonymity is not a fundamental right," said the EU law enforcement agency's executive director.

"When we have a search warrant and we are in front of a house and the door is locked, and you know that the criminal is inside of the house, the population will not accept that you cannot enter." In a digital environment, the police needed to be able to decode these messages to fight crime, she added. "You will not be able to enforce democracy [without it]."

Movies

A Videogame Meets Shakespeare in 'Grand Theft Hamlet' Film (yahoo.com) 9

The Los Angeles Times calls it "a guns-blazingly funny documentary about two out-of-work British actors who spent a chunk of their COVID-19 lockdown staging Shakespeare's masterpiece on the mean streets of Grand Theft Auto V."

Grand Theft Hamlet won SXSW's Jury Award for best documentary, and has now opened in U.S. theatres this weekend (and begun streaming on Mubi), after opening in the U.K. and Ireland. But nearly the entire film is set in Grand Theft Auto's crime-infested version of Los Angeles, the Times reports, "where even the good guys have weapons and a nihilistic streak — the vengeful Prince of Denmark fits right in." Yet when Sam Crane, a.k.a. @Hamlet_thedane, launches into one of the Bard's monologues, he's often murdered by a fellow player within minutes. Everyone's a critic.

Crane co-directed the movie with his wife, Pinny Grylls, a first-time gamer who functions as the film's camera of sorts. What her character sees, where she chooses to stand and look, makes up much of the film, although the editing team does phenomenal work splicing in other characters' points of view. (We're never outside of the game until the last 30 seconds; only then do we see anyone's real face....) The Bard's story is only half the point. Really, this is a classic let's-put-on-a-pixilated-show tale about the need to create beauty in the world — even this violent world — especially when stage productions in England have shuttered, forcing Crane, a husband and father, and Mark Oosterveen, single and lonely, to kill time speeding around the digital desert...

To our surprise (and theirs), the play's tussles with depression and anguish and inertia become increasingly resonant as the production and the pandemic limps toward their conclusions. When Crane and Oosterveen's "Grand Theft Auto" avatars hop into a van with an anonymous gamer and ask this online stranger for his thoughts on Hamlet's suicidal soliloquy, the man, a real-life delivery driver stuck at home with a broken leg, admits, "I don't think I'm in the right place to be replying to this right now...."

In 2014 Hamlet was also staged in Guild Wars 2, the article points out. "This is, however, the first attempt I'm aware of that attempts to do the whole thing live in one go, no matter if one of the virtual actors falls to their doom from a blimp.

"As Grylls says, 'You can't stop production just because somebody dies.'"
AI

Arrested by AI: When Police Ignored Standards After AI Facial-Recognition Matches (msn.com) 55

A county transit police detective fed a poor-quality image to an AI-powered facial recognition program, remembers the Washington Post, leading to the arrest of "Christopher Gatlin, a 29-year-old father of four who had no apparent ties to the crime scene nor a history of violent offenses." He was unable to post the $75,000 cash bond required, and "jailed for a crime he says he didn't commit, it would take Gatlin more than two years to clear his name." A Washington Post investigation into police use of facial recognition software found that law enforcement agencies across the nation are using the artificial intelligence tools in a way they were never intended to be used: as a shortcut to finding and arresting suspects without other evidence... The Post reviewed documents from 23 police departments where detailed records about facial recognition use are available and found that 15 departments spanning 12 states arrested suspects identified through AI matches without any independent evidence connecting them to the crime — in most cases contradicting their own internal policies requiring officers to corroborate all leads found through AI. Some law enforcement officers using the technology appeared to abandon traditional policing standards and treat software suggestions as facts, The Post found. One police report referred to an uncorroborated AI result as a "100% match." Another said police used the software to "immediately and unquestionably" identify a suspected thief.

Gatlin is one of at least eight people wrongfully arrested in the United States after being identified through facial recognition... All of the cases were eventually dismissed. Police probably could have eliminated most of the people as suspects before their arrest through basic police work, such as checking alibis, comparing tattoos, or, in one case, following DNA and fingerprint evidence left at the scene.

Some statistics from the article about the eight wrongfully-arrested people:
  • In six cases police failed to check alibis
  • In two cases police ignored evidence that contradicted their theory
  • In five cases police failed to collect key pieces of evidence
  • In three cases police ignored suspects' physical characteristics
  • In six cases police relied on problematic witness statements

The article provides two examples of police departments forced to pay $300,000 settlements after wrongful arrests caused by AI mismatches. But "In interviews with The Post, all eight people known to have been wrongly arrested said the experience had left permanent scars: lost jobs, damaged relationships, missed payments on car and home loans. Some said they had to send their children to counseling to work through the trauma of watching their mother or father get arrested on the front lawn.

"Most said they also developed a fear of police."


Crime

Pastor Who Saw Crypto Project In His 'Dream' Indicted For Fraud (bleepingcomputer.com) 111

A pastor in Pasco, Washington, has been indicted on 26 counts of fraud for orchestrating a cryptocurrency scam that defrauded over 1,500 investors of nearly $5.9 million between 2021 and 2023. Many of the investors were members of his congregation. BleepingComputer reports: The US Department of Justice says the pastor, Francier Obando Pinillo, 51, used his position to recruit investors into a fraudulent cryptocurrency venture called "Solano Fi," which he told them "came to him in a dream" and was a guaranteed investment. "Pinillo used his position as pastor to induce members of his congregation and others to invest their money in a cryptocurrency investment business known as Solano Fi," reads the US Department of Justice announcement. "Pinillo claimed the idea for Solano Fi had come to him in a dream and that it was a safe and guaranteed investment."

The pastor also set up a Facebook page for Solano Fi to attract more investors outside his direct sphere of influence, as well as a Telegram group named 'Multimillionarios SolanoFi,' which had 1,500 members. The indictment alleged that Pinillo promised investors they would receive guaranteed monthly investment returns of 34.9% at no risk whatsoever. The indictment further claims he directed the victims to make cryptocurrency transfers to wallets under his control, and instead of investing the funds, he diverted them for personal use. Investors were provided access to a Solano Fi web app where they could manage their funds; however, the app showed fake balances and investment returns. Those convinced by the fraud were encouraged to recruit more investors for additional returns, expanding the victims' circle. As in similar scams, when the victims attempted to withdraw money from the Solano Fi app, the transaction failed.

Earth

California's Wildfires Still Burn. Prison Inmates Join the Fight (npr.org) 101

As an ecological disaster devastated two coastal California cities, more than 7,500 firefighters pushed back against the wildfires. 900 of them are inmates, reports NPR. That's about 12%: California is one of more than a dozen states that operates conservation camps, commonly known as fire camps, for incarcerated people to train to fight fires and respond to other disasters... There are now 35 such camps in California, all of which are minimum-security facilities... When they are not fighting fires, they also respond to floods and other disasters and emergencies. Otherwise, the crews do community service work in areas close to their camp, according to the state corrections department...

A 2018 Time investigation found that incarcerated firefighters are at a higher risk for serious injuries. They also are more than four times as likely to get cuts, bruises or broken bones compared to professional firefighters working the same fires, the report found. They were also more than eight times as likely to face injuries after inhaling smoke, ash and other debris compared with other firefighters, the report said.

"Two of the camps are for incarcerated women," reports the BBC. One of them — since released — remembers that "It felt like you were doing something that mattered instead of rotting away in a cell," according to the nonprofit new site CalMatters. They can also earn credits that help reduce their prison sentences, the BBC learned from the California Department of Corrections and Rehabilitation.

Friday one local California news report shared the perspective of formerly incarcerated Californian, Matthew Hahn (from a 2021 Washington Post column). "Yes, the decision to take part is largely made under duress, given the alternative. Yes, incarcerated firefighters are paid pennies for an invaluable task. And yes, it is difficult though not impossible for participants to become firefighters after leaving prison," Hahn said. "Despite this, fire camps remain the most humane places to do time in the California prison system."
From that 2021 Washington Post column: California prisons have, on average, three times the murder rate of the country overall and twice the rate of all American prisons. These figures don't take into account the sheer number of physical assaults that occur behind prison walls. Prison feels like a dangerous place because it is. Whether it's individual assaults or large-scale riots, the potential for violence is ever-present. Fire camp represents a reprieve from that risk. Sure, people can die in fire camp as well — at least three convict-firefighters have died working to contain fires in California since 2017 — but the threat doesn't weigh on the mind like the prospect of being murdered by a fellow prisoner. I will never forget the relief I felt the day I set foot in a fire camp in Los Angeles County, like an enormous burden had been lifted...

[When his 12-man crew was called to fight the Jesusita Fire], the fire had ignited one home's deck and was slowly burning its way to the structure. We cut the deck off the house, saving the home. I often fantasize about the owners returning to see it still standing, unaware and probably unconcerned that an incarcerated fire crew had saved it. There was satisfaction in knowing that our work was as valuable as that of any other firefighter working the blaze and that the gratitude expressed toward first responders included us.

There are other reasons for prisoners to choose fire camp if given the opportunity. They are often located in secluded natural settings, giving inmates the chance to live in an environment that doesn't remotely resemble a prison. There are no walls, and sometimes there aren't even fences. Gun towers are conspicuously absent, and the guards aren't even armed.... [C]onsider the guy pushing a broom in his cell block making the equivalent of one Top Ramen noodle packet per day, just so he can have the privilege of making a collect call to his mother. Or think of the man scrubbing the streaks out of the guards' toilets, making seven cents an hour, half of which goes to pay court fees and restitution, just so he can have those couple of hours outside his cage for the day...

So, while we may have faced the heat of a wildfire for a few bucks a day, and we may have saved a few homes and been happy doing so, understand that we were rational actors. We wanted to be there, where some of our dignity was returned to us.

Crime

MoviePass Ex-Chief Pleads Guilty To Fraud Over 'Unlimited' Cinema Scheme (justice.gov) 32

Former MoviePass CEO Theodore Farnsworth has pleaded guilty to securities fraud and conspiracy charges for misleading investors about the movie subscription service's "unlimited plan" and its parent company's capabilities, U.S. prosecutors said.

Farnsworth falsely claimed the $9.95 monthly unlimited movie plan was sustainable and that Helios & Matheson Analytics could monetize subscriber data through artificial intelligence, knowing both statements were untrue. He faces up to 20 years in prison for MoviePass-related fraud and five years for a separate conspiracy charge involving Vinco Ventures.
Crime

Man Used ChatGPT To Plan Las Vegas Cybertruck Blast (thehill.com) 129

According to police, the man killed in the January 1st Las Vegas Cybertruck blast used ChatGPT to plan the explosion. The Hill reports: In a press conference, Tuesday, Las Vegas police released more details of the intentions of 37-year-old Matthew Livelsberger, who died of a gunshot wound prior to the car exploding. Las Vegas Sheriff Kevin McMahill said it was concerning that Livelsberger used ChatGPT, a popular artificial intelligence model created by OpenAI, to carry out the explosion. According to police, Livelsberger asked ChatGPT various questions, including where the largest gun stores in Denver were, information about the explosive targets Tannerite and pistols. "We knew that AI was going to change the game at some point or another in really all of our lives and certainly, I think this is the first incidence that I'm aware of on U.S. soil where ChatGPT is utilized to help an individual build a particular device, to learn information all across the country as they're moving forward," McMahill said.

"And so, absolutely, it's a concerning moment for us," he continued.
IT

LA County Sheriff's Computer Dispatch System Crashes on New Year's Eve (msn.com) 33

Bruce66423 writes: A few hours before the ball dropped on New Year's Eve, the computer dispatch system for the Los Angeles County Sheriff's Department crashed, rendering all patrol car computers nearly useless and forcing deputies to handle all calls by radio, according to officials and sources in the department. Department leaders first learned of the problem around 8 p.m., when deputies at several sheriff's stations began having trouble logging onto their patrol car computers, officials told The Times in a statement.

The department said it eventually determined its computer-aided dispatch program -- known as CAD -- was "not allowing personnel to log on with the new year, making the CAD inoperable." It's not clear how long it will take to fix the problem, but in the meantime deputies and dispatchers are handling everything old-school -- using their radios instead of patrol car computers.

"It's our own little Y2K," a deputy who was working Wednesday morning told The Times. The deputy, along with three other department sources who spoke to The Times about the problem, asked not to be named because they were not authorized to speak on the record and feared retaliation.

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