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Government

Ohio Senate Moves to Criminalize Secretly Tracking People with Apple's AirTags and Similar Devices (apnews.com) 38

The Associated Press reports: Tracking someone through apps and devices like the popular Apple AirTag without their consent could soon be deemed a criminal offense in Ohio, after the state's Republican-led Senate advanced the measure Wednesday with a unanimous bipartisan vote...

[V]iolators could be charged with a new first-degree misdemeanor offense of the "illegal use of a device or application," resulting in up to 180 days in jail. If the individual holds a prior conviction of menacing by stalking, the charge could escalate to a fourth-degree felony, resulting in six to 18 months in jail... There is no known opposition to the measure.

Exceptions to the proposal include some law enforcement activity; parents or guardians tracking their children; caregivers tracking an elderly or disabled person they are entrusted with; a non-private investigator acting on behalf of a "legitimate business purpose;" and private investigators on certain cases.

The bill now heads to Ohio's House of Representatives for further consideration.
AI

Marc Andreessen Criticizes 'AI Doomers', Warns the Bigger Danger is China Gaining AI Dominance (cnbc.com) 102

This week venture capitalist Marc Andreessen published "his views on AI, the risks it poses and the regulation he believes it requires," reports CNBC.

But they add that "In trying to counteract all the recent talk of 'AI doomerism,' he presents what could be seen as an overly idealistic perspective of the implications..." Though he starts off reminding readers that AI "doesn't want to kill you, because it's not alive... AI is a machine — it's not going to come alive any more than your toaster will." Andreessen writes that there's a "wall of fear-mongering and doomerism" in the AI world right now. Without naming names, he's likely referring to claims from high-profile tech leaders that the technology poses an existential threat to humanity... Tech CEOs are motivated to promote such doomsday views because they "stand to make more money if regulatory barriers are erected that form a cartel of government-blessed AI vendors protected from new startup and open source competition," Andreessen wrote...

Andreessen claims AI could be "a way to make everything we care about better." He argues that AI has huge potential for productivity, scientific breakthroughs, creative arts and reducing wartime death rates. "Anything that people do with their natural intelligence today can be done much better with AI," he wrote. "And we will be able to take on new challenges that have been impossible to tackle without AI, from curing all diseases to achieving interstellar travel...." He also promotes reverting to the tech industry's "move fast and break things" approach of yesteryear, writing that both big AI companies and startups "should be allowed to build AI as fast and aggressively as they can" and that the tech "will accelerate very quickly from here — if we let it...."

Andreessen says there's work to be done. He encourages the controversial use of AI itself to protect people against AI bias and harms... In Andreessen's own idealist future, "every child will have an AI tutor that is infinitely patient, infinitely compassionate, infinitely knowledgeable, infinitely helpful." He expresses similar visions for AI's role as a partner and collaborator for every person, scientist, teacher, CEO, government leader and even military commander.

Near the end of his post, Andreessen points out what he calls "the actual risk of not pursuing AI with maximum force and speed." That risk, he says, is China, which is developing AI quickly and with highly concerning authoritarian applications... To head off the spread of China's AI influence, Andreessen writes, "We should drive AI into our economy and society as fast and hard as we possibly can."

CNBC also points out that Andreessen himself "wants to make money on the AI revolution, and is investing in startups with that goal in mind." But Andreessen's sentiments are clear.

"Rather than allowing ungrounded panics around killer AI, 'harmful' AI, job-destroying AI, and inequality-generating AI to put us on our back feet, we in the United States and the West should lean into AI as hard as we possibly can."
Social Networks

TikTok May Have Misled Congress on Handling of US User Data, Say Two Senators (msn.com) 36

An anonymous reader shared this report from the New York Times: Two senators sent a letter to TikTok's chief executive on Tuesday, accusing the company of making misleading claims to Congress around how it stores and handles American user data, and demanding answers to more than a dozen questions by the end of next week.

The letter, from Senators Richard Blumenthal, Democrat of Connecticut, and Marsha Blackburn, Republican of Tennessee, focused on how sensitive data about American users may be stored in China and how employees there may have access to it. The lawmakers said recent reports from The New York Times and Forbes raised questions about statements made during congressional testimony in March by Shou Chew, TikTok's chief executive, and in an October 2021 hearing involving Michael Beckerman, TikTok's head of public policy for the Americas. TikTok is owned by the Chinese company ByteDance.

"We are deeply troubled by TikTok's recurring pattern of providing misleading, inaccurate or false information to Congress and its users in the United States, including in response to us during oversight hearings and letters," the senators wrote...

Forbes reported last month that TikTok has stored the sensitive financial information of creators, including Social Security numbers and tax IDs, on servers in China, where employees there can have access to them... The Times reported earlier in the month that American user data, including driver's licenses and potentially illegal content such as child sexual abuse materials, was shared at TikTok and ByteDance through an internal messaging and collaboration tool called Lark. The information was often available in Lark "groups" — chat rooms of employees — with thousands of members, alarming some workers because ByteDance workers in China and elsewhere could easily see the material.

Social Networks

US Surgeon General Warns on Possible Social Media Harms for Teens (cnn.com) 66

CNN summarizes the issue. "A recent advisory from U.S. Surgeon General Dr. Vivek Murthy says there's not enough evidence to determine whether social media is safe enough for children and adolescents when it comes to their mental health." (Although a CNN news anchor points out that "Nearly all of the research points to negative impacts.")

CNN's Chief Medical Correspondent interviewed U.S. Surgeon General Dr. Vivek Murthy "to examine what led him to sound the alarm, and who should be responsible for tackling the issue." And the surgeon general remembers when his five-year-old daughter asked to post a picture on social media. "I think finding the right balance is not easy, in part because, you know, the platforms weren't necessarily designed for balance. They were designed to maximize how much time we spend on them." CNN: How worried are you? When people hear something coming from the surgeon general's office, they think of, you know, smoking, opioids, things like this. Social media — is it at that level of concern for you?

Surgeon General: Yes, I would say yes, it is. And, and — but it's it's more complicated... because we know that some kids do actually get benefit from their experience of social media. Some are able to connect more easily with friends and family, to express themselves more creatively and more openly than they otherwise would, and to find community... But one of the things that has become an increasing source of worry for me is that the the association between social media use and harmful outcomes... [W]e're asking parents to somehow figure it out all on their own. And the reason I issued an advisory on this topic is I worry that we have not taken enough action to support parents and kids...

CNN: What is the level of evidence about the dangers of social media and what is the level of evidence that you want? I mean, what does it take for you as a surgeon general to act on this...?

Surgeon General: I think the first question I'm asking is where is the evidence of safety...? There's a lot of association data, right, that's showing an association between use and certain and negative outcomes, like for example, for kids who who use more than 3 hours of social media a day, they face double the risk of depression and anxiety symptoms. But we also know that kids are telling us in their own words and their own experience how they're experiencing social media. So, for example, about nearly half of adolescents are saying that using social media makes them feel worse about their body image...

And one of the consistent messages I hear from researchers who's been studying this area for a long time is that they are having a hard time getting access to the data from social media companies. You know, as a parent, I don't ever want to feel like someone or anyone is hiding information from me about how a product affects my child. But that's how a lot of parents are feeling right now. And so that's a place where I think transparency matters. Let's get the data out there so independent researchers can assess it and can help us understand the harms and benefits and which kids are most impacted so we can design, you know, our approach, you know, in a more informed way...

One of the things we call for in my advisory is for the policymakers to step in and establish actual, transparent, enforceable safety standards like we do for other products so that parents have some reassurance around safety... This technology is already being used by 95% of kids, Right. And I don't think that's realistic to put the genie back in the bottle here or to say somehow nobody should be using social media, that that's not the goal here... We don't like leave it up to car manufacturers to determine whether or not they've hit the standards or not. We don't do that with medications either. There should be, you know, independent authority that parents can trust are looking primarily in solely out for the welfare of their kids, and they should be the ones who enforce these standards....

You know, just to put it bluntly, I do not think we have done our job as a society to have the backs of kids and parents on this because we haven't moved fast enough to get the information to ultimately guide them on safe use... [P]arents across the country, people are trying to do the best they can with limited information.

The surgeon general also says their ideal legislation would also "help to reduce kids exposure to harmful content" and include "restrictions on features that seek to manipulate kids into spending excessive amounts of time on these platforms."
The Courts

'Extremely Remorseful' Lawyers Confronted by Judge Over 'Legal Gibberish' Citations from ChatGPT (apnews.com) 78

The Associated Press reports: Two apologetic lawyers responding to an angry judge in Manhattan federal court blamed ChatGPT Thursday for tricking them into including fictitious legal research in a court filing... [Attorney Steven A. Schwartz] told U.S. District Judge P. Kevin Castel he was "operating under a misconception ... that this website was obtaining these cases from some source I did not have access to." He said he "failed miserably" at doing follow-up research to ensure the citations were correct.

"I did not comprehend that ChatGPT could fabricate cases," Schwartz said...

The judge confronted Schwartz with one legal case invented by the computer program. It was initially described as a wrongful death case brought by a woman against an airline only to morph into a legal claim about a man who missed a flight to New York and was forced to incur additional expenses. "Can we agree that's legal gibberish?" Castel asked.

Schwartz said he erroneously thought that the confusing presentation resulted from excerpts being drawn from different parts of the case. When Castel finished his questioning, he asked Schwartz if he had anything else to say. "I would like to sincerely apologize," Schwartz said. He added that he had suffered personally and professionally as a result of the blunder and felt "embarrassed, humiliated and extremely remorseful."

He said that he and the firm where he worked — Levidow, Levidow & Oberman — had put safeguards in place to ensure nothing similar happens again.

An attorney for the law firm also told the judge that lawyers have historically had a hard time with technology, particularly new technology. "And it's not getting easier."
Crime

Ted Kaczynski, Known as the 'Unabomber,' has Died in Prison at Age 81 (npr.org) 126

Because he targeted universities and airlines, the FBI had dubbed him the Unabomber, reports the Associated Press: Theodore "Ted" Kaczynski, the Harvard-educated mathematician who retreated to a dingy shack in the Montana wilderness and ran a 17-year bombing campaign that killed three people and injured 23 others, died Saturday. He was 81... Kaczynski died at the federal prison medical center in Butner, North Carolina, Kristie Breshears, a spokesperson for the federal Bureau of Prisons, told The Associated Press. He was found unresponsive in his cell early Saturday morning and was pronounced dead around 8 a.m., she said. A cause of death was not immediately known.

Before his transfer to the prison medical facility, he had been held in the federal Supermax prison in Florence, Colorado, since May 1998, when he was sentenced to four life sentences plus 30 years for a campaign of terror that set universities nationwide on edge. He admitted committing 16 bombings from 1978 and 1995, permanently maiming several of his victims. Years before the Sept. 11 attacks and the anthrax mailing, the "Unabomber's" deadly homemade bombs changed the way Americans mailed packages and boarded airplanes, even virtually shutting down air travel on the West Coast in July 1995.

He forced The Washington Post, in conjunction with The New York Times, to make the agonizing decision in September 1995 to publish his 35,000-word manifesto, "Industrial Society and Its Future," which claimed modern society and technology was leading to a sense of powerlessness and alienation. [The Post published it "at the urging of federal authorities, after the bomber said he would desist from terrorism if a national publication published his treatise."] But it led to his undoing. Kaczynski's brother David and David's wife, Linda Patrik, recognized the treatise's tone and tipped off the FBI, which had been searching for the "Unabomber" for years in nation's longest, costliest manhunt.

Authorities in April 1996 found him in a 10-by-14-foot (3-by-4-meter) plywood and tarpaper cabin outside Lincoln, Montana, that was filled with journals, a coded diary, explosive ingredients and two completed bombs.

A psychiatrist who interview him in prison said Kaczynski suffered from persecutorial delusions, the article points out. "I certainly don't claim to be an altruist or to be acting for the 'good' (whatever that is) of the human race," Kaczynski wrote on April 6, 1971. "I act merely from a desire for revenge."

A stand-up comic once joked that the only technology that Kaczynski didn't have a problem with....was bombs.
AI

Congress To Consider Two New Bills On AI (reuters.com) 13

An anonymous reader quotes a report from Reuters: U.S. senators on Thursday introduced two separate bipartisan artificial intelligence bills on Thursday amid growing interest in addressing issues surrounding the technology. One would require the U.S. government to be transparent when using AI to interact with people and another would establish an office to determine if the United States is remaining competitive in the latest technologies. Senators Gary Peters, a Democrat who chairs the Homeland Security committee, introduced a bill along with Senators Mike Braun and James Lankford, both Republicans, which would require U.S. government agencies to tell people when the agency is using AI to interact with them. The bill also requires agencies to create a way for people to appeal any decisions made by AI.

"The federal government needs to be proactive and transparent with AI utilization and ensure that decisions aren't being made without humans in the driver's seat," said Braun in a statement. Senators Michael Bennet and Mark Warner, both Democrats, introduced a measure along with Republican Senator Todd Young that would establish an Office of Global Competition Analysis that would seek to ensure that the United States stayed in the front of the pack in developing artificial intelligence. "We cannot afford to lose our competitive edge in strategic technologies like semiconductors, quantum computing, and artificial intelligence to competitors like China," Bennet said.

Earlier this week, Senate Majority Leader Chuck Schumer said he had scheduled three briefings for senators on artificial intelligence, including the first classified briefing on the topic so lawmakers can be educated on the issue. The briefings include a general overview on AI, examining how to achieve American leadership on AI and a classified session on defense and intelligence issues and implications.
Further reading: Ask Slashdot: What Are Some Good AI Regulations?
Sci-Fi

House of Representatives To Hold Hearing On Whistleblower's UFO Claims (theguardian.com) 143

The House of Representatives in the United States plans to hold a hearing to investigate claims made by a whistleblower former intelligence official, David Grusch, that the US government possesses "intact and partially intact" alien vehicles. The Guardian reports: "There will be oversight of that," Comer told NewsNation. "We plan on having a hearing." Comer said he had heard about Grusch's claims, but added: "I don't know anything about it." The timing of the hearing is not yet determined, but a source familiar with the matter said a date is expected to be announced in the next few weeks. Tim Burchett and Anna Paulina Luna, Republican members of Congress from Florida and Tennessee, respectively, will lead the oversight committee investigation.

Burchett is working closely with House oversight committee leaders to prepare for a hearing, the congressman's office said. The witness list for the hearing has not yet been set, so it is unclear whether Grusch will publicly testify before the oversight committee. "Congressman Burchett's office is working through logistics, including a witness list of the most credible witnesses and sources who would be able to speak openly at an unclassified hearing," a spokesperson said.

Austin Hacker, a spokesman for the committee, told the Guardian in a statement: "In addition to recent claims by a whistleblower, reports continue to surface regarding unidentified aerial phenomena. The House oversight committee is following these UAP reports and is in the early stages of planning a hearing," Hacker said in a statement. "The National Defense Authorization Act for 2022 created the All-Domain Anomaly Resolution Office which coordinates among the Department of Defense, the intelligence community, Nasa, and other federal agencies to study UAPs. Americans, who continue to fund this federal government work, expect transparency and meaningful oversight from Congress."

AI

Man Sues OpenAI Claiming ChatGPT 'Hallucination' Said He Embezzled Money 107

OpenAI is facing a defamation lawsuit filed by Mark Walters, who claims that the AI platform falsely accused him of embezzling money from a gun rights group in statements delivered to a journalist. The lawsuit argues that ChatGPT is guilty of libel and alleges that the AI system "hallucinated" and generated false information about Walters. The Register reports: "While research and development of AI is worthwhile, it is irresponsible to unleash a system on the public that is known to make up 'facts' about people," his attorney John Monroe told The Register. According to the complaint, a journalist named Fred Riehl, while he was reporting on a court case, asked ChatGPT for a summary of accusations in a complaint, and provided ChatGPT with the URL of the real complaint for reference. (Here's the actual case [PDF] the reporter was trying to save time on reading for those curious.)

What makes the situation even odder is that the case Riehl was reporting on was actually filed by a group of several gun rights groups against Washington's Attorney General's office (accusing officials of "unconstitutional retaliation", among other things, while investigating the groups and their members) and had nothing at all to do with financial accounting claims. When Riehl asked for a summary, instead of returning accurate information, or so the case alleges, ChatGPT "hallucinated" that Mark Walters' name was attached to a criminal complaint -- and moreover, that it falsely accused him of embezzling money from The Second Amendment Foundation, one of the organizations suing the Washington Attorney General in the real complaint.

ChatGPT is known to "occasionally generate incorrect information" -- also known as hallucinations, as The Register has extensively reported. The AI platform has already been accused of writing obituaries for folks who are still alive, and in May this year, of making up fake legal citations pointing to non-existent prior cases. In the latter situation, a Texas judge said his court would strike any filing from an attorney who failed to certify either that they didn't use AI to prepare their legal docs, or that they had, but a human had checked them. [...] According to the complaint, Riehl contacted Alan Gottlieb, one of the plaintiffs in the actual Washington lawsuit, about ChatGPT's allegations concerning Walters, and Gottlieb confirmed that they were false. None of ChatGPT's statements concerning Walters are in the actual complaint.

The false answer ChatGPT gave Riehl alleged that Walters was treasurer and Chief Financial Officer of SAF and claimed he had "embezzled and misappropriated SAF's funds and assets." When Riehl asked ChatGPT to provide "the entire text of the complaint," it returned an entirely fabricated complaint, which bore "no resemblance to the actual complaint, including an erroneous case number." Walters is looking for damages and lawyers' fees. We have asked his attorney for comment. As for the amount of damages, the complaint says these will be determined at trial, if the case actually gets there.
Government

Louisiana Passes Bill Banning Kids From the Internet Without Parental Consent (theverge.com) 108

Louisiana lawmakers have passed a bill that would prohibit minors from creating their own social media accounts without parental consent, potentially impacting popular platforms like Instagram and online games such as Roblox and Fortnite. The Verge reports: The bill, HB61, would ban "interactive computer services" from allowing people under 18 to sign up for their own accounts without parental consent. The bill's definition of online services is extremely broad, seemingly barring minors from creating social media accounts on sites like Instagram, accessing popular online games like Roblox and Fortnite, or even registering for an email address. The bill also goes as far as allowing parents to cancel the terms of service contracts their children entered into when signing up for existing accounts.

As of publication, it's unclear how the state plans to enforce these new rules, but it calls on state entities to review the bill and provide feedback before it would go into effect. The Louisiana State Legislature passed the bill unanimously on Tuesday, sending it to Gov. John Bel Edwards' desk for final approval. The ban would go into effect August 1st of next year if he chooses to sign it.
"We are hopeful that Governor Edwards will veto this bill. It violates First Amendment rights, takes away parental rights for their families and requires massive data collection on all Louisiana citizens," NetChoice vice president and general counsel Carl Szabo said in a statement Thursday.

"It's true that Big Tech's advertising model hurts kids and teens," Fight for the Future said in a call for people to tell their elected officials not to pass online age restrictions. "But age-gating all social media, for anyone under 18? That won't solve the problem, and it's a direct attack on millions of young people's First Amendment rights."

Further reading: Congress Shocked To Discover 10 Year Olds Check the 'I'm Over 18' Box Online [Not The Onion]
Patents

Smart TV Industry Rocked By Alleged Patent Conspiracy From Chipmaker (arstechnica.com) 27

An anonymous reader quotes a report from Ars Technica: During the pandemic, the demand for smart TVs dwindled as the supply chain for critical TV components became unreliable and consumers began tightening up on frivolous spending. Amid this smart TV demand slump, one of the world's top TV chipmakers, Taiwan-based Realtek, was hit with multiple meritless lawsuits by an alleged patent troll, Future Link Systems. These actions, Realtek said, drained its resources, made Realtek appear unreliable as a TV-chip supplier, and created "the harmful illusion of supply chain uncertainties in an already constrained industry." Determined to defend its reputation and maintain its dominant place in the market, Realtek filed a lawsuit (PDF) this week in a US district court in California. In it, the TV chipmaker alleged that Future Link launched "an unprecedented and unseemly conspiracy" with the world's leading TV-chip supplier, Taiwan-based MediaTek, and was allegedly paid a "bounty" to file frivolous patent infringement claims intended to drive Realtek out of the TV-chip market.

The scheme allegedly worked like this: Future Link "intentionally and knowingly" asked a US district court in Texas and the US International Trade Commission "for injunctions prohibiting importation of Realtek TV Chips and devices containing the same into the United States," Realtek alleged. This allowed MediaTek to reap the benefits of diminished competition in that market, Realtek claimed. Today, Reuters reported that MediaTek has officially responded to Realtek's allegations, vowing to defend itself against the lawsuit and claiming that MediaTek will supply evidence to dispute Realtek's claims.

Realtek's lawsuit seeks a jury trial to fight back against MediaTek and Future Link, as well as IPValue Management, which the complaint said owns and operates Future Link. The TV chipmaker alleged that defendants violated unfair competition laws in California, as well as federal laws. Any damages won from the lawsuit will be donated to charity, Realtek said. Realtek's complaint likens MediaTek to "robber barons of the Industrial Age," allegedly seeking to destroy competition and secure a monopoly in the TV-chip market. "With this action, Realtek seeks to stop a modern robber baron and its hired henchmen, protect itself from ongoing injury, and guard against the destruction of competition in the critical semiconductor industry by holding defendants accountable for their conspiracy," the complaint said.

The Courts

Apple, Epic Ask US Appeals Court To Reconsider Its Antitrust Ruling (reuters.com) 17

Apple and "Fortnite" maker Epic Games have both asked a U.S. appeals court to reconsider its April ruling in an antitrust case that could force Apple to change payment practices in its App Store. From a report: Apple and Epic, in separate court filings, mounted challenges to a ruling by a three-judge panel of the San Francisco-based 9th U.S. Circuit Court of Appeals. Lawyers for the two companies said the panel should rehear the case or the court should convene "en banc," as an 11-judge panel, to reconsider the dispute. The April three-judge ruling upheld a 2021 order in California federal court in Epic's lawsuit which accused Apple of unlawfully requiring software developers to pay up to 30% in commissions on consumers' in-app purchases.

The trial judge found that Apple violated a California state unfair competition law, but not U.S. antitrust provisions. Apple's new filingchallenged a nationwide injunction over conduct Apple said was "procompetitive and does not violate the antitrust laws." Epic's 9th Circuit filing argued that its claims against Apple directly implicate the "core purpose" of U.S. antitrust law to foster competition. Epic also argued that the appeals court did not conduct a "rigorous" balancing between asserted asserted consumer benefits and anticompetitive effects of Apple's practices.

Privacy

iOS 17 Automatically Removes Tracking Parameters From Links You Click On (9to5mac.com) 54

iOS 17 and macOS Sonoma include even more privacy-preserving features while browsing the web. From a report: Link Tracking Protection is a new feature automatically activated in Mail, Messages, and Safari in Private Browsing mode. It detects user-identifiable tracking parameters in link URLs, and automatically removes them.

Adding tracking parameters to links is one way advertisers and analytics firms try to track user activity across websites. Rather than storing third-party cookies, a tracking identifier is simply added to the end of the page URL. This would circumvent Safari's standard intelligent tracking prevention features that block cross-site cookies and other methods of session storage. Navigating to that URL allows an analytics or advertising service at the destination to read the URL, extract those same unique parameters, and associate it with their backend user profile to serve personalized ads.

The Courts

Malwarebytes Faces Lawsuit For Classifying Rival's Anti-Spyware Program As a Threat (techspot.com) 38

Enigma software group has won a crucial case in the U.S. Court of Appeals for the Ninth Circuit, allowing it to proceed with its lawsuit against Malwarebytes for flagging its anti-spyware software as a 'potentially unwanted program.' The lawsuit alleges that Malwarebytes has engaged in anti-competitive conduct under the Lanham Act and tortious interference with Enigma's business. TechSpot reports: The ruling has been lambasted by some legal experts, who believe it could hamper cybersecurity service providers from doing their job effectively. Talking to The Register, Eric Goldman, professor at Santa Clara University School of Law, claimed that the Ninth Circuit's decision was erroneous, as it failed to differentiate between facts and opinions properly. According to him, in deciding in favor of Enigma, the Ninth Circuit failed to comprehend how the cybersecurity industry operates, and how security companies use the terms 'malicious' and 'threat.' He also felt that thanks to the judgment, there will now be more disputes over such classifications in the future, making the job of cybersecurity companies tougher than ever before.

Goldman further argued that the Ninth Circuit's decision would mean anti-malware software vendors will now simply minimize their financial and legal risks by leaving out supposed anti-threat programs from their list of suspect apps even if they display dangerous behavior, which could pose a major threat to consumers. Some smaller players could also exit the industry altogether, which would further hurt consumers by reducing competition. Goldman was also critical of the Supreme Court for denying Malwarebytes' appeal, and called out Justice Clarence Thomas in particular for writing what he called a "gratuitous error-riddled statement about Section 230 that spurred many regulators to pursue their censorship agendas."
Enigma said in a statement: "Malwarebytes (has) disparaged Enigma's products for commercial advantage by making misleading statements of fact. ... Trying to wrap them in a First Amendment flag does not make them any less offensive or any less actionable."

Eric Goldman, professor at Santa Clara University School of Law, told The Register in an email, "This case is like a wrecking ball for internet law." He added: "The Ninth Circuit already damaged Section 230 by creating an exception to its coverage (for 'anticompetitive animus') that no one understands and has not benefited anyone. Then, when the Supreme Court denied the appeal, Justice Thomas wrote a gratuitous error-riddled statement about Section 230 that spurred many regulators to pursue their censorship agendas. Now, the Ninth Circuit has redefined the standards for what constitutes a statement of 'fact' as opposed to an opinion in a way that hurts businesses in the anti-threat software space and well beyond."

"If each classification could similarly support weaponization in court by businesses unhappy with the classifications, then anti-threat software vendors will avoid the financial and legal risks by lowering their cybersecurity standards or exiting the industry," said Goldman. "That puts all of us at greater risk."
Government

10 Years After Snowden's First Leak, What Have We Learned? (theregister.com) 139

An anonymous reader quotes a report from The Register: The world got a first glimpse into the US government's far-reaching surveillance of American citizens' communications -- namely, their Verizon telephone calls -- 10 years ago this week when Edward Snowden's initial leaks hit the press. [...] In the decade since then, "reformers have made real progress advancing the bipartisan notion that Americans' liberty and security are not mutually exclusive," [US Senator Ron Wyden (D-OR)] said. "That has delivered tangible results: in 2015 Congress ended bulk collection of Americans' phone records by passing the USA Freedom Act." This bill sought to end the daily snooping into American's phone calls by forcing telcos to collect the records and make the Feds apply for the information.

That same month, a federal appeals court unanimously ruled that the NSA's phone-records surveillance program was unlawful. The American Civil Liberties Union (ACLU) and the New York Civil Liberties Union sued to end the secret phone spying program, which had been approved by the Foreign Intelligence Surveillance Court, just days after Snowden disclosed its existence. "Once it was pushed out into open court, and the court was able to hear from two sides and not just one, the court held that the program was illegal," Ben Wizner, director of the ACLU Speech, Privacy and Technology project, told The Register. The Freedom Act also required the federal government to declassify and release "significant" opinions of the Foreign Intelligence Surveillance Court (FISC), and authorized the appointment of independent amici -- friends of the court intended to provide an outside perspective. The FISC was established in 1978 under the FISA -- the legislative instrument that allows warrantless snooping. And prior to the Freedom Act, this top-secret court only heard the government's perspective on things, like why the FBI and NSA should be allowed to scoop up private communications.

"To its credit, the government has engaged in reforms, and there's more transparency now that, on the one hand, has helped build back some trust that was lost, but also has made it easier to shine a light on surveillance misconduct that has happened since then," Jake Laperruque, deputy director of the Center for Democracy and Technology's Security and Surveillance Project, told The Register. Wyden also pointed to the sunsetting of the "deeply flawed surveillance law," Section 215 of the Patriot Act, as another win for privacy and civil liberties. That law expired in March 2020 after Congress did not reauthorize it. "For years, the government relied on Section 215 of the USA Patriot Act to conduct a dragnet surveillance program that collected billions of phone records (Call Detail Records or CDR) documenting who a person called and for how long they called them -- more than enough information for analysts to infer very personal details about a person, including who they have relationships with, and the private nature of those relationships," Electronic Frontier Foundation's Matthew Guariglia, Cindy Cohn and Andrew Crocker said.
James Clapper, the former US Director of National Intelligence, "stated publicly that the Snowden disclosures accelerated by seven years the adoption of commercial encryption," Wizner said. "At the individual level, and at the corporate level, we are more secure."

"And at the corporate level, what the Snowden revelations taught big tech was that even as the government was knocking on the front door, with legal orders to turn over customer data, it was breaking in the backdoor," Wizner added. "Government was hacking those companies, finding the few points in their global networks where data passed unencrypted, and siphoning it off." "If you ask the government -- if you caught them in a room, and they were talking off the record -- they would say the biggest impact for us from the Snowden disclosures is that it made big tech companies less cooperative," he continued. "I regard that as a feature, not a bug."

The real issue that the Snowden leaks revealed is that America's "ordinary system of checks and balances doesn't work very well for secret national security programs," Wizner said. "Ten years have gone by," since the first Snowden disclosures, "and we don't know what other kinds of rights-violating activities have been taking place in secret, and I don't trust our traditional oversight systems, courts and the Congress, to ferret those out," Wizner said. "When you're dealing with secret programs in a democracy, it almost always requires insiders who are willing to risk their livelihoods and their freedom to bring the information to the public."
Security

Microsoft Says Clop Ransomware Gang Is Behind MOVEit Mass-Hacks (techcrunch.com) 12

An anonymous reader quotes a report from TechCrunch: Security researchers have linked to the notorious Clop ransomware gang a new wave of mass-hacks targeting a popular file transfer tool, as the first victims of the attacks begin to come forward. It was revealed last week that hackers are exploiting a newly discovered vulnerability in MOVEit Transfer, a file-transfer tool widely used by enterprises to share large files over the internet. The vulnerability allows hackers to gain unauthorized access to an affected MOVEit server's database. Progress Software, which develops the MOVEit software, has already released some patches. Over the weekend, the first victims of the attacks began to come forward.

Zellis, a U.K.-based human resources software maker and payroll provider, confirmed in a statement that its MOVEit system was compromised, with the incident affecting a "small number" of its corporate customers. One of those customers is U.K. airline giant British Airways, which told TechCrunch that the breach included the payroll data of all of its U.K.-based employees. [...] The U.K.'s BBC also confirmed it was affected by the incident affecting Zellis. [...] The government of Nova Scotia, which uses MOVEit to share files across departments, said in a statement that some citizens' personal information may have been compromised. The Nova Scotia government said it took its affected system offline, and is working to determine "exactly what information was stolen, and how many people have been impacted."

It was initially unclear who was behind this new wave of hacks, but Microsoft security researchers are attributing the cyberattacks to a group it tracks as "Lace Tempest." This gang is a known affiliate of the Russia-linked Clop ransomware group, which was previously linked to mass-attacks exploiting flaws in Fortra's GoAnywhere file transfer tool and Accellion's file transfer application. Microsoft researchers said that the exploitation of the MOVEit vulnerability is often followed by data exfiltration. Mandiant isn't yet making the same attribution as Microsoft, but noted in a blog post over the weekend that there are "notable" similarities between a newly created threat cluster it's calling UNC4857 that has as-of-yet "unknown motivations," and FIN11, a well-established ransomware group known to operate Clop ransomware. "Ongoing analysis of emerging activity may provide additional insights," Mandiant said.
"It's likely many more victims of the MOVEit breach will come to light over the next few days," adds TechCrunch.

"Shodan, a search engine for publicly exposed devices and databases, showed that more than 2,500 MOVEit Transfer servers were discoverable on the internet."
Privacy

TSA Expands Controversial Facial Recognition Program (cbsnews.com) 70

SonicSpike shares a report from CBS News: As possible record-setting crowds fill airports nationwide, passengers may encounter new technology at the security line. At 25 airports in the U.S. and Puerto Rico, the TSA is expanding a controversial digital identification program that uses facial recognition. This comes as the TSA and other divisions of Homeland Security are under pressure from lawmakers to update technology and cybersecurity. "We view this as better for security, much more efficient, because the image capture is fast and you'll save several seconds, if not a minute," said TSA Administrator David Pekoske.

At the world's busiest airport in Atlanta, the TSA checkpoint uses a facial recognition camera system to compare a flyer's face to the picture on their ID in seconds. If there's not a match, the TSA officer is alerted for further review. "Facial recognition, first and foremost, is much, much more accurate," Pekoske said. "And we've tested this extensively. So we know that it brings the accuracy level close to 100% from mid-80% with just a human looking at a facial match." The program has been rolled out to more than two dozen airports nationwide since 2020 and the TSA plans to add the technology, which is currently voluntary for flyers, to at least three more airports by the end of the year. There are skeptics. Five U.S. senators sent a letter demanding that TSA halt the program.

The Courts

SEC Asks For Emergency Order To Freeze Binance US Assets Anywhere In the World (cnbc.com) 9

The U.S. Securities and Exchange Commission (SEC) has filed an emergency motion seeking to freeze the assets of Binance's U.S. platform and repatriate the funds held by its customers, including both fiat currency and cryptocurrencies. CNBC reports: The freezing order only applies Binance's two U.S. holding companies, not to the non-U.S. regulated international exchange. The order would apply to dozens of accounts held at Axos Bank, the defunct Silvergate Bank, Prime Trust, and other institutions. Two foreign entities also controlled by Zhao, Sigma Chain and Merit Peak, served as conduits for billions of dollars of customer money that was improperly commingled with Binance's funds, the SEC has alleged.

The emergency restraining order was necessary, the regulator argued, to "prevent the dissipation of available assets for any judgment, given the Defendants' years of violative conduct, disregard of the laws of the United States." The order also compels Binance's founder, Changpeng Zhao, to "show cause why a preliminary injunction" against Zhao and his two holding companies "should not be entered." The restraining order would also prevent all three entities from destroying evidence.
On Monday, the SEC filed a lawsuit against Binance and the company's founder, Changpeng Zhao, accusing the exchange of mishandling customer funds as well as lying to regulators and investors about its operations.
Microsoft

Microsoft To Pay $20 Million Settlement For Illegally Collecting Children's Personal Data (techcrunch.com) 15

Microsoft has agreed to pay $20 million to settle charges by the Federal Trade Commission (FTC) that it illegally collected personal information from children without parental consent and retained it for extended periods. TechCrunch reports: The federal consumer watchdog said Microsoft violated the Children's Online Privacy Protection Act (COPPA), the federal law that governs the online privacy protections for children under the age of 13, which requires companies notify parents about the data they collect, obtain parental consent and delete the data when it's no longer necessary. The FTC said children signing up to Microsoft's Xbox gaming service were asked to provide their personal information -- including their name, email address, phone number and date of birth -- which until 2019 included a pre-filled check box allowing Microsoft to share user information with advertisers. The FTC said Microsoft collected this data before asking for the parent to complete the account setup, but held onto children's data even if the parent abandoned the sign-up process.

"Only after gathering that raft of personal data from children did Microsoft get parents involved in the process," said FTC's Lesley Fair in a corresponding blog post. As a result, the FTC will require Microsoft to notify parents and obtain consent for accounts created before May 2021. Microsoft will also have to establish new systems to delete children's personal information if it hasn't obtained parental consent, and to ensure the data is deleted when it's no longer needed.

Government

White House Quiet on National Cyber Director Choice, Senator Says (axios.com) 9

The White House has not shared much of anything with lawmakers about who the administration thinks should be the next national cyber director, a top cyber-minded senator told Axios. From the report: It's been nearly four months since Chris Inglis stepped down as the first national cyber director inside the White House, and lawmakers and policy experts have been putting pressure on President Joe Biden in recent weeks to name a replacement.

Last month, Sen. Angus King (I-Maine) and Rep. Mike Gallagher (R-Wis.) sent a letter to Biden questioning the delay in picking a nominee and encouraging the president to nominate current acting director Kemba Walden to the post. Yet in the three weeks since the lawmakers sent their letter, they haven't heard anything from the White House, King told Axios in a recent interview. What they're saying: "I'm really puzzled; I just don't know what's going on," King told Axios. "This is an important job, and it's an important moment and they have a highly qualified, able acting director." Congress created the Office of the National Cyber Director (ONCD) as the Biden administration was taking office in early 2021.

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