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Crime

A Computer Generated Swatting Service Is Causing Havoc Across America 97

Motherboard has discovered a swatting-as-a-service account on Telegram that uses computer generated voices to issue bomb and mass shooting threats against highschools and other locations across the country. An anonymous reader shares an excerpt from the report: Known as "Torswats" on the messaging app Telegram, the swatter has been calling in bomb and mass shooting threats against highschools and other locations across the country. Torswat's connection to these wide ranging swatting incidents has not been previously reported. The further automation of swatting techniques threatens to make an already dangerous harassment technique more prevalent. Swatting is when someone calls in a bogus threat in an attempt to direct law enforcement resources to a particular home, school, or other location. Often, swatting calls result in heavily armed police raiding an innocent victim's home. At least one case has resulted in police killing the unsuspecting occupant.

Torswats carries out these threatening calls as part of a paid service they offer. For $75, Torswats says they will close down a school. For $50, Torswats says customers can buy "extreme swattings," in which authorities will handcuff the victim and search the house. Torswats says they offer discounts to returning customers, and can negotiate prices for "famous people and targets such as Twitch streamers." Torswats says on their Telegram channel that they take payment in cryptocurrency. [...] On their Telegram channel, Torswats has uploaded at least 35 distinct recordings of calls they appear to have made. Torswats may have made many more swatting calls on others' behalf, though: each filename includes a number, with the most recent going up to 170. Torswats also recently shuttered their channel before reappearing on Telegram in February.

In all of those 35 recordings except two, Torswats appears to have used a synthesized voice. The majority of the calls are made with a fake male sounding voice; several include a woman which also appears to be computer generated. Torswats is seemingly able to change what the voice is saying in something close to real-time in order to respond to the operator's questions. These sometimes include "where are you located," "what happened," and "what is your name?" [...] Earlier this month, Torswats allegedly changed their tactics: they claimed to have made a swatting call using their own voice. In the subsequent recording, they start with much the same script as their automated voice. "I've done something really bad and want to kill myself," they tell the operator. They then claim they came out to their parents as a transgender woman, that they have an AR-15, and will shoot any police who respond. "Forgot to cut off my laugh at the end," Torswats wrote on Telegram.
The Almighty Buck

South Korea To Give $490 Allowance To Reclusive Youths To Help Them Leave the House (theguardian.com) 133

An anonymous reader quotes a report from the Guardian: South Korea is to offer reclusive youths a monthly living allowance of 650,000 won ($490) in order to encourage them out of their homes, as part of a new measure passed by the Ministry of Gender Equality and Family. The measure also offers education, job and health support. The condition is known as "hikikomori," a Japanese term that roughly translated means, "to pull back." The government wants to try to make it easier for those experiencing it to leave the house to go to school, university or work.

Included in the program announced this week, which expands on measures announced in November, is a monthly allowance for living expenses for people aged between nine and 24 who are experiencing extreme social withdrawal. It also includes an allowance for cultural experiences for teenagers. About 350,000 people between the ages of 19 and 39 in South Korea are considered lonely or isolated -- about 3% of that age group -- according to the Korea Institute for Health and Social Affairs. Secluded youth are often from disadvantaged backgrounds and 40% began living reclusively while adolescents, according to a government document outlining the measures.

The new measures aim to strengthen government support "to enable reclusive youth to recover their daily lives and reintegrate into society," the government said in a statement. Among the other types of support are paying for the correction of affected people's physical appearance, including scars "that adolescents may feel ashamed of," as well as helping with school and gym supplies. South Korea also has a relatively high rate of youth unemployment, at 7.2%, and is trying to tackle a rapidly declining birthrate that further threatens productivity.

Privacy

Hackers Claim Vast Access To Western Digital Systems (techcrunch.com) 29

An anonymous reader quotes a report from TechCrunch: The hackers who breached data storage giant Western Digital claim to have stolen around 10 terabytes of data from the company, including reams of customer information. The extortionists are pushing the company to negotiate a ransom -- of "minimum 8 figures" -- in exchange for not publishing the stolen data. On April 3, Western Digital disclosed "a network security incident" saying hackers had exfiltrated data after hacking into "a number of the Company's systems." At the time, Western Digital provided few details about exactly what data the hackers stole, saying in a statement that the hackers "obtained certain data from its systems and [Western Digital] is working to understand the nature and scope of that data."

One of the hackers spoke with TechCrunch and provided more details, with the goal of verifying their claims. The hacker shared a file that was digitally signed with Western Digital's code-signing certificate, showing they could now digitally sign files to impersonate Western Digital. Two security researchers also looked at the file and agreed it is signed with the company's certificate. The hackers also shared phone numbers allegedly belonging to several company executives. TechCrunch called the numbers. Most of the calls rang but went to automated voicemail messages. Two of the phone numbers had voicemail greetings that mentioned the names of the executives that the hackers claimed were associated with the numbers. The two phone numbers are not public.

Screenshots shared by the hacker show a folder from a Box account apparently belonging to Western Digital, an internal email, files stored in a PrivateArk instance (a cybersecurity product), and a screenshot of a group call where one of the participants is identified as Western Digital's chief information security officer. They also said they were able to steal data from the company's SAP Backoffice, a backend interface that helps companies manage e-commerce data. The hacker said that their goal when they hacked Western Digital was to make money, though they decided against using ransomware to encrypt the company's files. [...] If Western Digital doesn't get back to them, the hacker said, they are ready to start publishing the stolen data on the website of the ransomware gang Alphv. The hacker said they are not directly affiliated with Alphv but "I know them to be professional."
Western Digital said they're declining to comment or answer questions about the hacker's claims.
Crime

Tech Executive Arrested In San Francisco Killing of Cash App Creator (missionlocal.org) 100

"Early Wednesday, San Francisco police made an arrest in the April 4th killing of tech exec Bob Lee," writes Slashdot reader xevioso. "Lee was stabbed in the early hours of April 4th, and later died. His killing prompted a host of claims that this was yet another example of San Francisco's slide into chaos, but the person arrested is reportedly another tech exec." Mission Local reports: The alleged killer also works in tech and is a man Lee purportedly knew. We are told that police today were dispatched to Emeryville with a warrant to arrest a man named Nima Momeni. The name and Emeryville address SFPD officers traveled to correspond with this man, the owner of a company called Expand IT.

Multiple police sources have described the predawn knifing that last week left the 43-year-old Lee dead in a deserted section of downtown San Francisco as neither a robbery attempt nor a random attack. Rather, Lee and Momeni were portrayed by police as being familiar with one another. In the wee hours of April 4, they were purportedly driving together through downtown San Francisco in a car registered to the suspect. Some manner of confrontation allegedly commenced while both men were in the vehicle, and potentially continued after Lee exited the car. Police allege that Momeni stabbed Lee multiple times with a knife that was recovered not far from the spot on the 300 block of Main Street to which officers initially responded.

The Military

Leader of Online Group Where Secret Documents Leaked Is Air National Guardsman (nytimes.com) 182

An anonymous reader quotes a report from the New York Times: The leader of a small online gaming chat group where a trove of classified U.S. intelligence documents leaked over the last few months is a 21-year-old member of the intelligence wing of the Massachusetts Air National Guard, according to interviews and documents reviewed by The New York Times. The National Guardsman, whose name is Jack Teixeira, oversaw a private online group called Thug Shaker Central, where about 20 to 30 people, mostly young men and teenagers, came together over a shared love of guns, racist online memes and video games. On Thursday afternoon, about a half-dozen F.B.I. agents pushed into a residence in North Dighton, Mass. Attorney General Merrick B. Garland later said in a short statement that Airman Teixeira had been arrested "without incident." Federal investigators had been searching for days for the person who leaked the top secret documents online.

Starting months ago, one of the users uploaded hundreds of pages of intelligence briefings into the small chat group, lecturing its members, who had bonded during the isolation of the pandemic, on the importance of staying abreast of world events. [...] The Times spoke with four members of Thug Shaker Central, one of whom said he had known the person who leaked for at least three years, had met him in person and referred to him as the O.G. The friends described him as older than most of the group members, who were in their teens, and the undisputed leader. One of the friends said the O.G. had access to intelligence documents through his job. While the gaming friends would not identify the group's leader by name, a trail of digital evidence compiled by The Times leads to Airman Teixeira. The Times has been able to link Airman Teixeira to other members of Thug Shaker Central through his online gaming profile and other records. Details of the interior of Airman Teixeira's childhood home -- posted on social media in family photographs -- also match details on the margins of some of the photographs of the leaked secret documents.

Members of Thug Shaker Central who spoke to The Times said that the documents they discussed online were meant to be purely informative. While many pertained to the war in Ukraine, the members said they took no side in the conflict. The documents, they said, started to get wider attention only when one of the teenage members of the group took a few dozen of them and posted them to a public online forum. From there they were picked up by Russian-language Telegram channels and then The Times, which first reported on them. The person who leaked, they said, was no whistle-blower, and the secret documents were never meant to leave their small corner of the internet. "This guy was a Christian, antiwar, just wanted to inform some of his friends about what's going on," said one of the person's friends from the community, a 17-year-old recent high school graduate. "We have some people in our group who are in Ukraine. We like fighting games; we like war games."

Privacy

The US Cracked a $3.4 Billion Crypto Heist - and Bitcoin's Anonymity (wsj.com) 59

Federal authorities are making arrests and seizing funds with the help of new tools to identify criminals through cryptocurrency transactions. From a report: James Zhong appeared to have pulled off the perfect crime. In December 2012, he stumbled upon a software bug while withdrawing money from his account on Silk Road, an online marketplace used to hide criminal dealings behind the seemingly bulletproof anonymity of blockchain transactions and the dark web. Mr. Zhong, a 22-year-old University of Georgia computer-science student at the time, used the site to buy cocaine. "I accidentally double-clicked the withdraw button and was shocked to discover that it resulted in allowing me to withdraw double the amount of bitcoin I had deposited," he later said in federal court. After the first fraudulent withdrawal, Mr. Zhong created new accounts and with a few hours of work stole 50,000 bitcoins worth around $600,000, court papers from federal prosecutors show.

Federal officials closed Silk Road a year later on criminal grounds and seized computers that held its transaction records. The records didn't reveal Mr. Zhong's caper at first. Authorities hadn't yet mastered how to track people and groups hidden behind blockchain wallet addresses, the series of letters and numbers used to anonymously send and receive cryptocurrency. One elemental feature of the system was the privacy it gave users. Mr. Zhong moved the stolen bitcoins from one account to another for eight years to cover his tracks. By late 2021, the red-hot crypto market had raised the value of his trove to $3.4 billion. In November 2021, federal agents surprised Mr. Zhong with a search warrant and found the digital keys to his crypto fortune hidden in a basement floor safe and a popcorn tin in the bathroom. Mr. Zhong, who pleaded guilty to wire fraud, is scheduled to be sentenced Friday in New York federal court, where prosecutors are seeking a prison sentence of less than two years.

Mr. Zhong's case is one of the highest-profile examples of how federal authorities have pierced the veil of blockchain transactions. Private and government investigators can now identify wallet addresses associated with terrorists, drug traffickers, money launderers and cybercriminals, all of which were supposed to be anonymous. Law-enforcement agencies, working with cryptocurrency exchanges and blockchain-analytics companies, have compiled data gleaned from earlier investigations, including the Silk Road case, to map the flow of cryptocurrency transactions across criminal networks worldwide. In the past two years, the U.S. has seized more than $10 billion worth of digital currency through successful prosecutions, according to the Internal Revenue Service -- in essence, by following the money. Instead of subpoenas to banks or other financial institutions, investigators can look to the blockchain for an instant snapshot of the money trail.

Government

White House Rejects Fed Staff Outlook, Says No Sign of Recession (bloomberg.com) 124

The White House said Thursday that data does not indicate a US recession is on the horizon, rebuffing Federal Reserve staff economists who forecast a minor contraction starting later this year. From a report: White House Press Secretary Karine Jean-Pierre said job numbers and consumer spending are strong and chalked it up to President Joe Biden's economic plans, waving off a recession risk. "We're seeing the success of his plans, and recent economic indicators are not consistent with a recession or even a pre-recession," Jean-Pierre said Thursday when asked about the Fed forecast. Federal Reserve minutes published Wednesday indicated that "the staff's projection at the time of the March meeting included a mild recession starting later this year, with a recovery over the subsequent two years."

Still, Fed officials appear on track to extend their run of interest-rate hikes, shrugging off the warning. Jean-Pierre pointed to job gains, the unemployment rate and consumer spending as indicators. She also said that inflation has been falling, though it remains well above target and may spur more Fed hikes, raising the chance of a recession. Still, the spokeswoman contradicted the warning of the Fed staff. "Those are the indicators that show us that we are not headed to a recession or a pre-recession," she said.

Privacy

Popular Porn Site Must Delete All Amateur Videos Posted Without Consent (arstechnica.com) 55

An anonymous reader quotes a report from Ars Technica: An Amsterdam court today ordered one of the largest adult entertainment websites, xHamster, to remove all amateur footage showing recognizable people in the Netherlands who did not consent to be featured on the site. The ruling followed complaints raised by the Expertise Bureau for Online Child Abuse, known as EOKM, which identified 10 videos where xHamster could not verify it had secured permission from amateur performers to post. The court found that this violated European privacy laws and conflicted with a prior judgment from the Amsterdam court requiring porn sites to receive permission from all performers recognizably featured before posting amateur videos.

According to EOKM director Arda Gerkens, this ruling will require xHamster to clean up its site and is part of EOKM's larger plan to stop all porn sites from distributing amateur footage without consent. The Amsterdam court has given xHamster three weeks to comply with the order and remove all footage posted without consent, or face maximum fines per video up to $32,000 daily. Lawyers assisting EOKM on the case said the verdict had "major consequences for the entire porn industry," including bigger sites like Pornhub, which already was required to remove 10 million videos, as Vice reported in 2020. "Now it's xHamster's turn," Otto Volgenant of Boekx Advocaten said in EOKM's press release, noting that 30 million people visit xHamster daily.

On xHamster, only professional producers and verified members can upload content. The website requires everyone who creates an account to upload an ID and share a selfie to become verified. Before any verified member's upload is made public, xHamster moderators -- a team of 28 who use software approved by EOKM to identify illegal content -- conduct a review to block any illegal content. The website's terms of service require that each uploader provides a consent form from each person recognizably featured in all amateur content. Hammy Media told the court that it had already removed all violating content that EOKM had flagged in the case and provided assurances that moderators check to ensure the uploader is the same person as the performer. However, in his order, judge RA Dudok van Heel wrote that "it is sufficiently plausible for the time being that a large amount of footage is being made public on xhamster.com, of which it cannot be demonstrated that permission has been obtained from the persons who appear recognizable in the picture."

Robotics

The NYPD Is Bringing Back Its Robot Dog (theverge.com) 54

An anonymous reader quotes a report from The Verge: The New York Police Department is reenlisting Digidog, the four-legged robot that the city faced backlash for deploying a few years back, as reported earlier by The New York Times. NYC Mayor Eric Adams announced the news during a press event on Tuesday, stating that the use of Digidog in the city can "save lives." Digidog -- also known as Spot -- is a remote-controlled robot made by the Hyundai-owned Boston Dynamics. It's designed to work in situations that may pose a threat to humans, helping to do things like perform inspections in dangerous areas and monitor construction sites. However, Boston Dynamics also touts its use as a public safety tool, which the NYPD has tried in the past.

City officials say that the NYPD will acquire two robot dogs for a total of $750,000, according to the NYT, and that they will only be used during life-threatening situations, such as bomb threats. "I believe that technology is here; we cannot be afraid of it," Mayor Adams said during Tuesday's press conference. "A few loud people were opposed to it, and we took a step back — that is not how I operate. I operate on looking at what's best for the city."
The Surveillance Technology Oversight Project (STOP), a group that advocates against the use of local and state-level surveillance, has denounced Mayor Adams' move. "The NYPD is turning bad science fiction into terrible policing," Albert Fox Cahn, STOP's executive director, says in a statement. "New York deserves real safety, not a knockoff robocop. Wasting public dollars to invade New Yorkers' privacy is a dangerous police stunt."
Government

Colorado Approves First-Ever Agricultural Right to Repair Bill (ifixit.com) 23

Denver legislators have just passed the first-ever agricultural Right to Repair bill. Today's landslide 44-16 vote in the House follows a successful vote in the Senate last month. iFixit reports: Once the Agricultural Right to Repair bill passes, manufacturers will be required to share all the parts, embedded software, firmware, tools, and documentation necessary for repair. One critical step remains: a signature by Governor Polis, who has signaled that he supports the legislation.

To support Right to Repair legislation near you, find your state on Repair.org -- or, if you're outside the US, look for your country's advocacy network here.
The summary of HB23-1011 reads: "Starting January 1, 2024, the bill requires a manufacturer to provide parts, embedded software, firmware, tools, or documentation, such as diagnostic, maintenance, or repair manuals, diagrams, or similar information (resources), to independent repair providers and owners of the manufacturer's agricultural equipment to allow an independent repair provider or owner to conduct diagnostic, maintenance, or repair services on the owner's agricultural equipment.

The bill folds agricultural equipment into the existing consumer right-to-repair statutes, which statutes provide the following:

- A manufacturer's failure to comply with the requirement to provide resources is a deceptive trade practice;
- In complying with the requirement to provide resources, a manufacturer need not divulge any trade secrets to independent repair providers and owners; and
- Any new contractual provision or other arrangement that a manufacturer enters into that would remove or limit the manufacturer's obligation to provide resources to independent repair providers and owners is void and unenforceable; and
- An independent repair provider or owner is not authorized to make modifications to agricultural equipment that permanently deactivate any safety notification system or bring the equipment out of compliance with safety or emissions laws or to engage in any conduct that would evade emissions, copyright, trademark, or patent laws."
Security

Mercenary Spyware Hacked iPhone Victims With Rogue Calendar Invites, Researchers Say (techcrunch.com) 10

Hackers using spyware made by a little known cyber mercenary company used malicious calendar invites to hack the iPhones of journalists, political opposition figures, and an NGO worker, according to two reports. From a report: Researchers at Microsoft and the digital rights group Citizen Lab analyzed samples of malware they say was created by QuaDream, an Israeli spyware maker that has been reported to develop zero-click exploits -- meaning hacking tools that don't require the target to click on malicious links -- for iPhones. QuaDream has been able to mostly fly under the radar until recently. In 2021, Israeli newspaper Haaretz reported that QuaDream sold its wares to Saudi Arabia. The next year, Reuters reported that QuaDream sold an exploit to hack iPhones that was similar to one provided by NSO Group, and that the company doesn't operate the spyware, its government customers do -- a common practice in the surveillance tech industry.

QuaDream's customers operated servers from several countries around the world: Bulgaria, Czech Republic, Hungary, Romania, Ghana, Israel, Mexico, Singapore, United Arab Emirates (UAE), and Uzbekistan, according to internet scans done by Citizen Lab. Both Citizen Lab and Microsoft published groundbreaking new technical reports on QuaDream's alleged spyware on Tuesday. Microsoft said it found the original malware samples, and then shared them with Citizen Lab's researchers, who were able to identify more than five victims -- an NGO worker, politicians, and journalists -- whose iPhones were hacked. The exploit used to hack those targets was developed for iOS 14, and at the time was unpatched and unknown to Apple, making it a so-called zero-day. The government hackers who were equipped with QuaDream's exploit used malicious calendar invites with dates in the past to deliver the malware, according to Citizen Lab.

United Kingdom

UK Government To Offer One Million People Vapes To Cut Smoking Rates (miragenews.com) 144

An anonymous reader quotes a report from Mirage News: One million smokers will be encouraged to swap cigarettes for vapes under a pioneering new "swap to stop" scheme designed to improve the health of the nation and cut smoking rates. As part of the world-first national scheme, almost one in five of all smokers in England will be provided with a vape starter kit alongside behavioral support to help them quit the habit as part of a series of new measures to help the government meet its ambition of being smoke-free by 2030 -- reducing smoking rates to 5% or less. Local authorities will be invited to take part in the scheme later this year and will design a scheme which suits its needs, including deciding which populations to prioritize.

In a speech today, Health Minister Neil O'Brien will also announce that following the success of local schemes, pregnant women will be offered financial incentives to help them stop smoking. This will involve offering vouchers, alongside behavioral support, to all pregnant women who smoke by the end of next year. The government will also consult on introducing mandatory cigarette pack inserts with positive messages and information to help people to quit smoking. Additionally, there will be a crackdown on illicit vape sales as part of measures to stop children and non-smokers take up the habit -- which is growing in popularity among young people.
Health Minister Neil O'Brien said in a statement: "Up to two out of three lifelong smokers will die from smoking. Cigarettes are the only product on sale which will kill you if used correctly. We will offer a million smokers new help to quit. We will be funding a new national 'swap to stop' scheme -- the first of its kind in the world. We will work with councils and others to offer a million smokers across England a free vaping starter kit."
The Courts

FTC Orders Supplement Maker To Pay $600K In First Case Involving Hijacked Amazon Reviews (techcrunch.com) 25

The U.S. Federal Trade Commission has approved a final consent order in its first-ever enforcement action over a case involving "review hijacking," or when a marketer steals consumer reviews of another product to boost the sales of its own. TechCrunch reports: In this case, the FTC has ordered supplements retailer The Bountiful Company, the maker of Nature's Bounty vitamins and other brands, to pay $600,000 for deceiving customers on Amazon where it used a feature to merge the reviews of different products to make some appear to have better ratings and reviews than they otherwise would have had if marketed under their own listings. The case exposes how sellers have been exploiting an Amazon feature that allows sellers to request the creation of "variation" relationships between different products and SKUs. The feature is meant to help marketers and consumers alike as it creates a single detail page on Amazon.com that shows similar products that are different only in narrow, specific ways, the FTC explains -- like items that come in a different color, size, quantity or flavor. For instance, a t-shirt may have a dozen SKUs associated with one another because the shirt comes in a wide variety of colors.

For shoppers, it's helpful to see all the options on one page so you can pick the item that best matches your needs and budget. In the case of supplements, the feature could be used to combine the same products by merging various SKUs featuring different quantities of the item in question, like bottles with 50, 100 or 200 pills, for example. However, The Bountiful Company exploited Amazon's feature to merge its newer products with older, well-established products which had different formulations, the FTC said. The FTC cited and screenshotted more than a dozen examples from 2020 and 2021 in its original complaint (PDF) against the vitamin and supplement maker, which in 2021 sold its core brands -- including Nature's Bounty and Sundown -- to Nestle. As a result of these product merges, consumers who happened across any of the newer products would believe them to be better received than they were in reality, as they were benefiting from the merged ratings and reviews of other, differentiated items.

"Boosting your products by hijacking another product's ratings or reviews is a relatively new tactic, but is still plain old false advertising," Samuel Levine, Director of the FTC's Bureau of Consumer Protection, said this February when the consent order was first announced ahead of its public comment period and finalized version. With today's decision, Bountiful will have to pay the Commission $600,000 as monetary relief for consumers. It's also prohibited from making similar types of misrepresentations and barred from using "deceptive review tactics that distort what consumers think about its products or services," the FTC said in a unanimous 4-0 decision.

Books

Z-Library Plans To Let Users Share Physical Books Through 'Z-Points' (torrentfreak.com) 18

An anonymous reader quotes a report from TorrentFreak: Z-Library appears to be shrugging off a criminal investigation as if nothing ever happened. The site continues to develop its shadow library and, following a successful fundraiser, now plans to expand its services to the physical book market. Z-Library envisions a book 'sharing' market, where its millions of users can pick up paperbacks at dedicated "Z-Points" around the globe. [...] With more than 12 million books in its archive, Z-Library advertised itself as the largest repository of pirated books on the Internet. This success was briefly interrupted late last year when the U.S. Government seized the site's main domain names. The enforcement action also led to the arrest of two alleged Russian operators of the site, who now find themselves at the center of a criminal investigation. A crackdown of this magnitude usually marks the end of a pirate site, but Z-Library appears to be going in the opposite direction. The site has made a full comeback with a more 'censorship-resistant' setup and recently collected tens of thousands of dollars in donations.

In a new message, posted this week, Z-Library thanks its userbase for their generous contributions, noting that it secured all the necessary funds to ensure continued development. Apparently, this includes support for offline sharing. In addition to offering millions of ebooks, Z-Library says that it's working on a new service that will help users to share physical copies with each other. "Books you have read should not gather dust on your shelf -- instead, they can get a second life in the hands of new readers! This helps to preserve the literary heritage and spread the knowledge and ideas contained in books to more people," they write. "[W]e want to organize 'Z-Points' -- collection and storage points for books that will be the link between those who share their books and those who need them. Book owners who are willing to share them with other users can send books to the nearest Z-Point in their region. And those who need books stored in these points will be able to receive them for their use."

This sounds like a P2P competitor for traditional libraries. Interestingly, however, Z-Library believes that existing libraries are ideally suited to become Z-Points. People can also volunteer to run a Z-Point from their own homes. Running a book lending point will require quite a bit of storage space and organizational effort so fulfillment centers and third-party logistics services are also welcome to join in. The Z-Point idea is still in the planning phase. According to Z-Library, users will be able to send books by mail. These can then be loaned by others and/or sent by mail when requested. This proposal is quite different from the traditional pirate ebook library Z-Library offers now. And loaning a book to someone is generally not seen as copyright infringement either unless it's a copied ebook.

Businesses

Sam Bankman-Fried Declared Alameda 'Unauditable,' New Report Shows (theblock.co) 61

The new management of FTX, headed by CEO John Ray III, on Sunday released its first interim report on control failures at the collapsed crypto exchange. There is a lot to digest. The Block: The 45-page report -- published Sunday afternoon by FTX Trading Ltd and its affiliated debtors -- describes in painstaking detail FTX's slapdash record-keeping, near non-existent cybersecurity defenses and its sparse expertise in key areas like finance. One of the more eye-catching items concerned Alameda Research, the trading firm that allegedly had access to billions of dollars in customer funds stored with FTX. The report states that Alameda "often had difficulty understanding what its positions were, let alone hedging or accounting for them."

Former CEO Sam Bankman-Fried, now under house arrest and facing a litany of criminal charges, described Alameda in internal communications as "hilariously beyond any threshold of any auditor being able to even get partially through an audit," according to the report. He went on: "Alameda is unauditable. I don't mean this in the sense of 'a major accounting firm will have reservations about auditing it'; I mean this in the sense of 'we are only able to ballpark what its balances are, let alone something like a comprehensive transaction history.' We sometimes find $50m of assets lying around that we lost track of; such is life."

AI

ChatGPT Sued for Lying (msn.com) 176

An anonymous readers shared this report from the Washington Post: Brian Hood is a whistleblower who was praised for "showing tremendous courage" when he helped expose a worldwide bribery scandal linked to Australia's National Reserve Bank. But if you ask ChatGPT about his role in the scandal, you get the opposite version of events. Rather than heralding Hood's whistleblowing role, ChatGPT falsely states that Hood himself was convicted of paying bribes to foreign officials, had pleaded guilty to bribery and corruption, and been sentenced to prison.

When Hood found out, he was shocked. Hood, who is now mayor of Hepburn Shire near Melbourne in Australia, said he plans to sue the company behind ChatGPT for telling lies about him, in what could be the first defamation suit of its kind against the artificial intelligence chatbot.... "There's never, ever been a suggestion anywhere that I was ever complicit in anything, so this machine has completely created this thing from scratch," Hood said — confirming his intention to file a defamation suit against ChatGPT. "There needs to be proper control and regulation over so-called artificial intelligence, because people are relying on them...."

If it proceeds, Hood's lawsuit will be the first time someone filed a defamation suit against ChatGPT's content, according to Reuters. If it reaches the courts, the case would test uncharted legal waters, forcing judges to consider whether the operators of an artificial intelligence bot can be held accountable for its allegedly defamatory statements.

The article notes that ChatGPT prominently warns users that it "may occasionally generate incorrect information." And another Post article notes that all the major chatbots now include disclaimers, "such as Bard's fine-print message below each query: 'Bard may display inaccurate or offensive information that doesn't represent Google's views.'"

But the Post also notes that ChatGPT still "invented a fake sexual harassment story involving a real law professor, Jonathan Turley — citing a Washington Post article that did not exist as its evidence." Long-time Slashdot reader schwit1 tipped us off to that story. But here's what happened when the Washington Post searched for accountability for the error: In a statement, OpenAI spokesperson Niko Felix said, "When users sign up for ChatGPT, we strive to be as transparent as possible that it may not always generate accurate answers. Improving factual accuracy is a significant focus for us, and we are making progress...." Katy Asher, senior communications director at Microsoft, said the company is taking steps to ensure search results are safe and accurate. "We have developed a safety system including content filtering, operational monitoring, and abuse detection to provide a safe search experience for our users," Asher said in a statement, adding that "users are also provided with explicit notice that they are interacting with an AI system."

But it remains unclear who is responsible when artificial intelligence generates or spreads inaccurate information. From a legal perspective, "we just don't know" how judges might rule when someone tries to sue the makers of an AI chatbot over something it says, said Jeff Kosseff, a professor at the Naval Academy and expert on online speech. "We've not had anything like this before."

GNU is Not Unix

FSF Awards 'Respects Your Freedom' Certification to ThinkPenguin's Gigabit Mini VPN Router (fsf.org) 6

The Free Software Foundation certifies products that meet their standards in regard to users' freedom, control over the product, and privacy. And they put out a new "Respects Your Freedom" certification on Thursday for ThinkPenguin's free software gigabit mini VPN router, the TPE-R1400.

From the FSF's announcement: This is ThinkPenguin's first device to receive RYF certification in 2023, adding to their vast catalogue of certified devices from previous years. As with previous routers from ThinkPenguin, the Free Software Gigabit Mini VPN Router ships with an FSF-endorsed fully free embedded GNU/Linux distribution called libreCMC. It also comes with a custom flavor of the U-Boot boot loader, assembled by Robert Call, the maintainer of libreCMC and a former FSF intern.

The router enables users to run their network connection through a VPN service, helping to simplify the process of keeping their communications secure and private. While ThinkPenguin offers a VPN service, users are not required to purchase a subscription to their service in order to use the router, and the device comes with detailed instructions on how to use the router with a wide variety of VPN providers.

"We're pleased to see ThinkPenguin continue with their commitment to bringing out devices that put software freedom as their first priority under the RYF program. The release of this router shows that ThinkPenguin is committed to the privacy and freedom of their users," said the FSF's executive director, Zoë Kooyman....

"The latest version of ThinkPenguin's VPN router lets its users take advantage of gigabit per second Internet connections while protecting their rights and privacy," said FSF's copyright and licensing associate, Craig Topham.

United States

Classified US Documents Leaked on 4chan, Telegram, Discord, and Twitter (msn.com) 133

America's Department of Justice just launched an investigation into the leaking of classified documents from the U.S. Department of Defense, reports the Washington Post.

"On Wednesday, images showing some of the documents began circulating on the anonymous online message board 4chan and made their way to at least two mainstream social media platforms, Telegram and Twitter." Earlier Friday, The Washington Post obtained dozens of what appeared to be photographs showing classified documents, dating to late February and early March, that range from worldwide intelligence briefings to tactical-level battlefield updates and assessments of Ukraine's defense capabilities. They outline information about the Ukrainian and Russian militaries, and include highly sensitive U.S. analyses about China and other nations. The materials also reference highly classified sources and methods that the United States uses to collect such information, alarming U.S. national security officials who have seen them.... The material that appeared online includes photographs of documents labeled "Secret" or "Top Secret," and began appearing on Discord, a chat platform popular with gamers, according to a Post review.

In some cases, it appears that the slides were manipulated. For instance, one image features combat casualty data suggesting the number of Russian soldiers killed in the war is far below what the Pentagon publicly has assessed. Another version of the image showed higher Russian casualty figures. Besides the information on casualties that appeared to be manipulated to benefit the Russian government, U.S. officials who spoke to The Post said many of the leaked documents did not appear to be forged and looked consistent in format with CIA World Intelligence Review reports distributed at high levels within the White House, Pentagon and the State Department....

The documents appear to have been drawn from multiple reports and agencies, and concern matters other than Ukraine. Two pages, for example, are purportedly a "CIA Operations Center Intelligence Update," and includes information about events concerning Russia, Hungary and Iran.... Rachel E. VanLandingham, a former Air Force attorney and expert on military law, said that whoever is responsible for the leak "is in a world of hurt." Such breaches, she said, constitute "one of the most serious crimes that exist regarding U.S. national security...."

Skepticism abounded Friday among both Russian and Ukrainian officials aware of reports about the leaks, with each side accusing the other of being involved in a deliberate act of disinformation.

The Post notes one defense official told them "hundreds — if not thousands" of people had access to the documents, so their source "could be anyone."

But the photographs received by the Post were apparently taken from printed documents, and "classified documents may only be printed from computers in a secure facility, and each transaction is electronically logged, said Glenn Gerstell, a former general counsel with the National Security Agency who emphasized that he was speaking only about general procedures. "The fact that the documents were printed out should significantly narrow the universe of the initial inquiry."
Censorship

The Open Source VPN Out-Maneuvering Russian Censorship (wired.com) 16

An anonymous reader quotes a report from Wired: The Russian government has banned more than 10,000 websites for content about the war in Ukraine since Moscow launched the full-scale invasion in February 2022. The blacklist includes Facebook, Twitter, Instagram, and independent news outlets. Over the past year, Russians living inside the country have turned to censorship circumvention tools such as VPNs to pierce through the information blockade. But as dozens of virtual private networks get blocked, leaving users scrambling to maintain their access to free information, local activists and developers are coming up with new solutions. One of them is Amnezia VPN, a free, open source VPN client.

"We even do not advertise and promote it, and new users are still coming by the hundreds every day," says Mazay Banzaev, Amnezia VPN's founder. Unlike commercial VPNs that route users through company servers, which can be blocked, Amnezia VPN makes it simple for users to buy and set up their own servers. This allows them to choose their own IP address and use protocols that are harder to block. "More than half of the commercial VPNs in Russia have been blocked because it's easy enough to block them: They do not block them by protocols, but by IP addresses," says Banzaev. "[Amnezia] is an order of magnitude more resilient than a typical commercial VPN." Amnezia VPN is similar to Outline, a free and open source tool developed by Jigsaw, a subsidiary of Google. Amnezia was created in 2020 during a hackathon supported by Russian digital rights organization Roskomsvoboda. Even then, "it was clear that things were moving toward stricter censorship," says Banzaev. [...]

It is unclear how many users the service has, since the organization doesn't have a way to monitor user numbers, Banzaev says. However, Amnezia offers a Telegram bot called AmneziaFree, which shares VPN configurations that help users access blocked platforms and news; it has almost 100,000 users. The bot is currently struggling with overload, and users are complaining about spotty service. Banzaev says the Amnezia team is working to add new servers on a limited budget, and that they are also working on a new version of the service.
"Amnezia is not only used in Russia," notes Wired. "The service has spread to Turkmenistan, Iran, China, and other countries where users have been struggling with free access to the web."
Social Networks

Arkansas House Wants You To Show ID To Use Social Media (arktimes.com) 42

With no discussion, the Arkansas House of Representatives overwhelmingly approved a bill that would require social media users in The Natural State to verify they're 18 years old or older to use the platforms. Arkansas Times reports: The proposal, backed by Gov. Sarah Sanders, is aimed at shielding minors from the harmful effects of social media. Young folks could use the platforms, but only if parents provide consent. Senate Bill 396, sponsored by Sen. Tyler Dees (R-Springdale) and Rep. Jon Eubanks (R-Paris), would require social media companies including Facebook, Instagram, Twitter and TikTok to contract with third-party companies to perform age verification. Users would have to provide the third-party company with a digital driver's license. Dees also sponsored a bill, now law, that requires anyone who wants to watch online pornography to verify they're an adult.

The social media bill squeaked through the Senate with 18 yes votes, the bare minimum, but passed the House 82-10 with four voting present (same as no). No one asked any questions of Eubanks -- who assured his colleagues that Facebook had "the AI and algorithms" to keep track of what users had parental consent without holding on to sensitive data -- but because it was amended (to among other things exempt LinkedIn, the most boring social media platform), the bill has to go back to the Senate, where perhaps it will meet some resistance.
Utah's governor signed two bills into law last month requiring companies like Meta, Snap and TikTok to get parents permission before teens could create accounts on their platforms. "The laws also require curfew, parental controls and age verification features," adds Engadget.

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