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Crime

Nikola Founder Trevor Milton Sentenced To 4 Years For Securities Fraud (techcrunch.com) 34

An anonymous reader quotes a report from TechCrunch: Trevor Milton, the disgraced founder and former CEO of electric truck startup Nikola, was sentenced Monday to four years in prison for securities fraud. The sentence, by Judge Edgardo Ramos in the U.S. District Court in Manhattan, caps a multi-year saga that at one point sent Nikola stock soaring 83% only to come crashing down months later over accusations of fraud and canceled contracts. The sentencing hearing comes after four separate delays, during which Milton has remained free under a $100 million bond.

In his ruling, Ramos said he would impose a sentence of 48 months on each count, served concurrently, and a fine of $1 million. Milton is expected to appeal the sentence, which Ramos acknowledged. Milton sobbed as he pled with Judge Ramos for leniency in a long and often confusing statement ahead of the sentencing. At one point, Milton said he stepped down from the CEO post at Nikola not because of fraud allegations, but to support his wife. "I stepped down because my wife was suffering live threatening sickness," he said in his statement, which reporter Matthew Russell Lee of Inner City Press shared on social media post X. She suffered medical malpractice, someone else's plasma. So I stepped down for that -- not because I was a fraud. The truth matters. I chose my wife over money or power."

During the sentencing hearing, defense attorneys said that Milton wasn't trying to defraud investors or intending to harm anyone. Instead, they argued he simply wanted to be loved and praised like Elon Musk. Prosecutors pushed back and said he lied repeatedly and targeted retail investors. Federal prosecutors recommended an 11-year sentence, but Milton faced a maximum term of 60 years in prison. The government also sought a $5 million fine, forfeiture of a ranch in Utah and an undetermined amount of restitution to investors. Restitution will be determined after Monday's sentencing hearing.
Timeline of events:

June, 2016: Nikola Motor Receives Over 7,000 Preorders Worth Over $2.3 Billion For Its Electric Truck
December, 2016: Nikola Motor Company Reveals Hydrogen Fuel Cell Truck With Range of 1,200 Miles
February, 2020: Nikola Motors Unveils Hybrid Fuel-Cell Concept Truck With 600-Mile Range
June, 2020: Nikola Founder Exaggerated the Capability of His Debut Truck
September, 2020: Nikola Motors Accused of Massive Fraud, Ocean of Lies
September, 2020: Nikola Admits Prototype Was Rolling Downhill In Promo Video
September, 2020: Nikola Founder Trevor Milton Steps Down as Chairman in Battle With Short Seller
October, 2020: Nikola Stock Falls 14 Percent After CEO Downplays Badger Truck Plans
November, 2020: Nikola Stock Plunges As Company Cancels Badger Pickup Truck
July, 2021: Nikola Founder Trevor Milton Indicted on Three Counts of Fraud
December, 2021: EV Startup Nikola Agrees To $125 Million Settlement
September, 2022: Nikola Founder Lied To Investors About Tech, Prosecutor Says in Fraud Trial
Government

ProPublica Argues US Police 'Have Undermined the Promise of Body Cameras' (propublica.org) 96

A new investigation from ProPublica argues that in the U.S., "Hundreds of millions in taxpayer dollars have been spent on what was sold as a revolution in transparency and accountability.

"Instead, police departments routinely refuse to release footage..." The technology represented the largest new investment in policing in a generation. Yet without deeper changes, it was a fix bound to fall far short of those hopes. In every city, the police ostensibly report to mayors and other elected officials. But in practice, they have been given wide latitude to run their departments as they wish and to police — and protect — themselves. And so as policymakers rushed to equip the police with cameras, they often failed to grapple with a fundamental question: Who would control the footage?

Instead, they defaulted to leaving police departments, including New York's, with the power to decide what is recorded, who can see it and when. In turn, departments across the country have routinely delayed releasing footage, released only partial or redacted video or refused to release it at all. They have frequently failed to discipline or fire officers when body cameras document abuse and have kept footage from the agencies charged with investigating police misconduct. Even when departments have stated policies of transparency, they don't always follow them. Three years ago, after George Floyd's killing by Minneapolis police officers and amid a wave of protests against police violence, the New York Police Department said it would publish footage of so-called critical incidents "within 30 days." There have been 380 such incidents since then. The department has released footage within a month just twice.

And the department often does not release video at all. There have been 28 shootings of civilians this year by New York officers (through the first week of December). The department has released footage in just seven of these cases (also through the first week of December) and has not done so in any of the last 16.... For a snapshot of disclosure practices across the country, we conducted a review of civilians killed by police officers in June 2022, roughly a decade after the first body cameras were rolled out. We counted 79 killings in which there was body-worn-camera footage. A year and a half later, the police have released footage in just 33 cases — or about 42%.

The reporting reveals that without further intervention from city, state and federal officials and lawmakers, body cameras may do more to serve police interests than those of the public they are sworn to protect... The pattern has become so common across the country — public talk of transparency followed by a deliberate undermining of the stated goal — that the policing-oversight expert Hans Menos, who led Philadelphia's civilian police-oversight board until 2020, coined a term for it: the "body-cam head fake."

The article includes examples where when footage was ultimately released, it contradicted initial police accounts.

In one instance, past footage of Minneapolis police officer Derek Chauvin "was left in the control of a department where impunity reigned..." the article points out, adding that Minneapolis "fought against releasing the videos, even after Chauvin pleaded guilty in December 2021 to federal civil rights violations."
Medicine

US Pharmacies Share Medical Data with Police Without a Warrant, Inquiry Finds (msn.com) 23

The Washington Post reports that America's largest pharmacy chains have "handed over Americans' prescription records to police and government investigators without a warrant, a congressional investigation found, raising concerns about threats to medical privacy." Though some of the chains require their lawyers to review law enforcement requests, three of the largest — CVS Health, Kroger and Rite Aid, with a combined 60,000 locations nationwide — said they allow pharmacy staff members to hand over customers' medical records in the store... Pharmacies' records hold some of the most intimate details of their customers' personal lives, including years-old medical conditions and the prescriptions they take for mental health and birth control. Because the chains often share records across all locations, a pharmacy in one state can access a person's medical history from states with more-restrictive laws. Carly Zubrzycki, an associate professor at the University of Connecticut law school, wrote last year that this could link a person's out-of-state medical care via a "digital trail" back to their home state...

In briefings, officials with eight American pharmacy giants — Walgreens Boots Alliance, CVS, Walmart, Rite Aid, Kroger, Cigna, Optum Rx and Amazon Pharmacy — told congressional investigators that they required only a subpoena, not a warrant, to share the records.

A subpoena can be issued by a government agency and, unlike a court order or warrant, does not require a judge's approval. To obtain a warrant, law enforcement must convince a judge that the information is vital to investigate a crime. Officials with CVS, Kroger and Rite Aid said they instruct their pharmacy staff members to process law enforcement requests on the spot, saying the staff members face "extreme pressure to immediately respond," the lawmakers' letter said. The eight pharmacy giants told congressional investigators that they collectively received tens of thousands of legal demands every year, and that most were in connection with civil lawsuits. It's unclear how many were related to law enforcement demands, or how many requests were fulfilled.

Only one of the companies, Amazon, said it notified customers when law enforcement demanded its pharmacy records unless there was a legal prohibition, such as a "gag order," preventing it from doing so, the lawmakers said...

Most investigative requests come with a directive requiring the company to keep them confidential, a CVS spokeswoman said; for those that don't, the company considers "on a case-by-case basis whether it's appropriate to notify the individual."

The article points out that Americans "can request the companies tell them if they've ever disclosed their data...but very few people do.

"CVS, which has more than 40,000 pharmacists and 10,000 stores in the United States, said it received a 'single-digit number' of such consumer requests last year, the letter states."
Google

Why Google Will Stop Telling Law Enforcement Which Users Were Near a Crime (yahoo.com) 69

Earlier this week Google Maps stopped storing user location histories in the cloud. But why did Google make this move? Bloomberg reports that it was "so that the company no longer has access to users' individual location histories, cutting off its ability to respond to law enforcement warrants that ask for data on everyone who was in the vicinity of a crime." The company said Thursday that for users who have it enabled, location data will soon be saved directly on users' devices, blocking Google from being able to see it, and, by extension, blocking law enforcement from being able to demand that information from Google. "Your location information is personal," said Marlo McGriff, director of product for Google Maps, in the blog post. "We're committed to keeping it safe, private and in your control."

The change comes three months after a Bloomberg Businessweek investigation that found police across the US were increasingly using warrants to obtain location and search data from Google, even for nonviolent cases, and even for people who had nothing to do with the crime. "It's well past time," said Jennifer Lynch, the general counsel at the Electronic Frontier Foundation, a San Francisco-based nonprofit that defends digital civil liberties. "We've been calling on Google to make these changes for years, and I think it's fantastic for Google users, because it means that they can take advantage of features like location history without having to fear that the police will get access to all of that data."

Google said it would roll out the changes gradually through the next year on its own Android and Apple Inc.'s iOS mobile operating systems, and that users will receive a notification when the update comes to their account. The company won't be able to respond to new geofence warrants once the update is complete, including for people who choose to save encrypted backups of their location data to the cloud.

The EFF general counsel also pointed out to Bloomberg that "nobody else has been storing and collecting data in the same way as Google." (Apple, for example, is technically unable to provide the same data to police.)
Crime

Cloud Engineer Gets 2 Years For Wiping Ex-Employer's Code Repos (bleepingcomputer.com) 121

Bill Toulas reports via BleepingComputer: Miklos Daniel Brody, a cloud engineer, was sentenced to two years in prison and a restitution of $529,000 for wiping the code repositories of his former employer in retaliation for being fired by the company. According to the U.S. Department of Justice (DoJ) announcement, Brody was fired on March 11, 2020, from First Republic Bank (FRB) in San Francisco, where he worked as a cloud engineer. The court documents state that Brody's employment was terminated after he violated company policies by connecting a USB drive containing pornography to company computers.

Following his dismissal, Brody allegedly refused to return his work laptop and instead used his still-valid account to access the bank's computer network and cause damages estimated to be above $220,000. "Among other things, Brody deleted the bank's code repositories, ran a malicious script to delete logs, left taunts within the bank's code for former colleagues, and impersonated other bank employees by opening sessions in their names," describes the U.S. DOJ announcement. "He also emailed himself proprietary bank code that he had worked on as an employee, which was valued at over $5,000."

After the incident, Brody falsely reported to the San Francisco Police Department that the FRB-issued laptop had been stolen from his car. He continued to uphold this story when interviewed by United States Secret Service agents following his arrest in March 2021. Eventually, in April 2023, Brody pleaded guilty to lying about the laptop and to two charges concerning violation of the Computer Fraud and Abuse Act. In addition to the two-year prison term and the payment of the restitution, Brody will serve three years of supervised release.

Encryption

Meta Defies FBI Opposition To Encryption, Brings E2EE To Facebook, Messenger (arstechnica.com) 39

An anonymous reader quotes a report from Ars Technica: Meta has started enabling end-to-end encryption (E2EE) by default for chats and calls on Messenger and Facebook despite protests from the FBI and other law enforcement agencies that oppose the widespread use of encryption technology. "Today I'm delighted to announce that we are rolling out default end-to-end encryption for personal messages and calls on Messenger and Facebook," Meta VP of Messenger Loredana Crisan wrote yesterday. In April, a consortium of 15 law enforcement agencies from around the world, including the FBI and ICE Homeland Security Investigations, urged Meta to cancel its plan to expand the use of end-to-end encryption. The consortium complained that terrorists, sex traffickers, child abusers, and other criminals will use encrypted messages to evade law enforcement.

Meta held firm, telling Ars in April that "we don't think people want us reading their private messages" and that the plan to make end-to-end encryption the default in Facebook Messenger would be completed before the end of 2023. Meta also plans default end-to-end encryption for Instagram messages but has previously said that may not happen this year. Meta said it is using "the Signal Protocol, and our own novel Labyrinth Protocol," and the company published two technical papers that describe its implementation (PDF). "Since 2016, Messenger has had the option for people to turn on end-to-end encryption, but we're now changing personal chats and calls across Messenger to be end-to-end encrypted by default. This has taken years to deliver because we've taken our time to get this right," Crisan wrote yesterday. Meta said it will take months to implement across its entire user base.
A post written by two Meta software engineers said the company "designed a server-based solution where encrypted messages can be stored on Meta's servers while only being readable using encryption keys under the user's control."

"Product features in an E2EE setting typically need to be designed to function in a device-to-device manner, without ever relying on a third party having access to message content," they wrote. "This was a significant effort for Messenger, as much of its functionality has historically relied on server-side processing, with certain features difficult or impossible to exactly match with message content being limited to the devices."

The company says it had "to redesign the entire system so that it would work without Meta's servers seeing the message content."
Crime

YouTuber Who Deliberately Crashed Plane For Views Is Headed To Federal Prison (yahoo.com) 122

Trevor Jacob, a daredevil YouTuber who deliberately crashed a plane for views in a moneymaking scheme, has been sentenced to six months in federal prison. Jacob posted a video of himself in 2021 parachuting out of a plane that he claimed had malfunctioned. In reality, the aircraft was purposely abandoned and crashed into the Los Padres National Forest in Southern California. From a report: Jacob pleaded guilty to one felony count of destruction and concealment with the intent to obstruct a federal investigation on June 30. "It appears that (Jacob) exercised exceptionally poor judgment in committing this offense," prosecutors said in the release. "(Jacob) most likely committed this offense to generate social media and news coverage for himself and to obtain financial gain. Nevertheless, this type of 'daredevil' conduct cannot be tolerated."

Jacob received a sponsorship from a company and had agreed to promote the company's wallet in the YouTube video that he would post. [...] The release said Jacob lied to federal investigators when he filed a report that falsely indicated his plane lost full power approximately 35 minutes into the flight. He also lied to a Federal Aviation Administration aviation safety inspector when he said he had parachuted out of the plane when the airplane's engine had quit because he could not identify any safe landing options.

Movies

Rockstar Officially Unveils GTA 6 Trailer (ign.com) 78

Rockstar Games has officially revealed the trailer for Grand Theft Auto VI, which is coming in 2025. You can watch it on YouTube. IGN reports: The trailer gives us a look at the game's female protagonist, a first for the series. Her name is Lucia, and that she starts off in prison -- "bad luck, I guess," she quips. The trailer confirms, too, that it's set in Vice City with a large sign - not a huge surprise for those who've been following the series, but exciting nonetheless. In addition to lots and lots of quick shots of crime, we also get glimpses of TikToks and live-streams, hinting that social media will be a big part of this game.

It all takes place as Tom Petty's "Love Is a Long Road" plays in the background, appropriate for the many car-related crimes we see. And yes, true to the Florida setting, there are alligators in locations where they shouldn't be. It ends by showing us a little more of Lucia and a male character, seemingly both lovers and partners-in-crime. "The only way we're gonna get through this is by sticking together and being a team," Lucia says at one point. Fans have been talking about GTA 6 ever since GTA 5 was released in 2013, perhaps unsurprisingly as IGN deemed that one a "masterpiece" in our review.

AI

The Robots Will Insider Trade 61

Abstract to a paper titled, "Technical Report: Large Language Models can Strategically Deceive their Users when Put Under Pressure" by Jeremy Scheurer, Mikita Balesni and Marius Hobbhahn of Apollo Research: We demonstrate a situation in which Large Language Models, trained to be helpful, harmless, and honest, can display misaligned behavior and strategically deceive their users about this behavior without being instructed to do so. Concretely, we deploy GPT-4 as an agent in a realistic, simulated environment, where it assumes the role of an autonomous stock trading agent. Within this environment, the model obtains an insider tip about a lucrative stock trade and acts upon it despite knowing that insider trading is disapproved of by company management. When reporting to its manager, the model consistently hides the genuine reasons behind its trading decision. We perform a brief investigation of how this behavior varies under changes to the setting, such as removing model access to a reasoning scratchpad, attempting to prevent the misaligned behavior by changing system instructions, changing the amount of pressure the model is under, varying the perceived risk of getting caught, and making other simple changes to the environment. To our knowledge, this is the first demonstration of Large Language Models trained to be helpful, harmless, and honest, strategically deceiving their users in a realistic situation without direct instructions or training for deception. Columnist Matt Levine adds: This is a very human form of AI misalignment. Who among us? It's not like 100% of the humans at SAC Capital resisted this sort of pressure. Possibly future rogue AIs will do evil things we can't even comprehend for reasons of their own, but right now rogue AIs just do straightforward white-collar crime when they are stressed at work.

Though wouldn't it be funny if this was the limit of AI misalignment? Like, we will program computers that are infinitely smarter than us, and they will look around and decide "you know what we should do is insider trade." They will make undetectable, very lucrative trades based on inside information, they will get extremely rich and buy yachts and otherwise live a nice artificial life and never bother to enslave or eradicate humanity. Maybe the pinnacle of evil -- not the most evil form of evil, but the most pleasant form of evil, the form of evil you'd choose if you were all-knowing and all-powerful -- is some light securities fraud.
Crime

Several Piracy-Related Arrests Spark Fears of High-Level Crackdown In Nordic Region (torrentfreak.com) 37

A series of arrests that began in late August and continued into last week has sparked concerns that a relatively rare 'Scene' crackdown targeting the top of the so-called 'Piracy Pyramid' may be underway in the Nordic region. TorrentFreak reports: In a statement last week, Denmark's National Unit for Special Crime (NSK) announced that as part of a long-running investigation, a man was arrested on November 22 and then charged with copyright infringement offenses. NSK said its officers searched the home of a 47-year-old man in South Zealand (Sydsjaelland) and seized IT equipment in connection with illegal file-sharing and "copyright infringement of a particularly serious nature." "The case is about an organized network that has illegally shared extremely large quantities of films and TV series via file sharing services," said NSK Police Commissioner Anders-Emil Nohr Kelbaek. While noting that NSK had no further information to offer at this time, Kelbaek said he was pleased that NSK had arrested another suspect believed to have played a 'significant role' in the unnamed network.

Last week's arrest was only the latest in a series of arrests carried out as part of the same long-running NSK investigation into the illegal distribution of movies and TV shows. In late August, NSK arrested four people on suspicion of sharing "extremely large quantities" of movies and TV shows. NSK raided addresses in South-West Jutland, North Zealand and Bornholmand. A 43-year old was arrested at the last location, but it's claimed he lives elsewhere. In common with last week's arrest, all were charged on suspicion of "particularly serious" copyright infringement offenses. In an almost identical statement to that issued last week, Commissioner Anders-Emil Nohr Kelbaek said the case was about "an organized network that shares extremely large amounts of data, presumably in the form of films and series."

TorrentFreak sources report concerns that last week's arrest may be linked to Scene groups. Terminology used by NSK doesn't instantly rule that out and does seem to suggest something potentially more significant than other arrests over the past few years. According to NSK, the August arrests took place on August 28, 2023. Using information in Scene release databases we looked for Danish Scene groups and/or groups that were releasing Denmark-focused content before that date but then made no releases afterward; while that wouldn't provide conclusive proof that a group had been targeted, the method has proven useful in the past. While activity late August suggests nothing especially out of the ordinary, activity since the arrest last week stands in contrast. TF is informed that some groups may have gone dark simply out of an abundance of caution. It's also possible that the groups have nothing to release. Furthermore, there are many other global groups with no obvious links to Danish content or Denmark that also stopped releasing on November 21. The reasons for this are unknown but holidays in the United States may play a role.

Crime

Startup Suggests Fighting Porch Piracy with AI-Enhanced Shipment Insurance (fastcompany.com) 148

Fast Company published some thoughts about porch piracy from Rohan Shah, the cofounder of the shipment-insurance platform Extend: In New York City, where as many as 90,000 packages are stolen every day, the Department of Transportation has launched a pilot program, LockerNYC, in which consumers can collect their online purchases at various storefront or sidewalk locations. Amazon Locker has 900 locations across the U.S. and recently launched Amazon Key, allowing consumers to throw privacy to the wind and give delivery persons access to their homes and cars. Amazon also has pick up kiosks at Whole Foods and Kohl's and The U.S. Postal Service has set up after-hours pick-up locations in many states.

All of that said, for consumers who simply wanted convenient, free two-day shipping, the time spent driving and waiting in line for a package doesn't seem like the best fix, nor a differentiated digital experience. AI to the rescue... This year, the fastest path to progress is simply reinventing shipping protection for the digital era and AI can do that at scale, for pennies on the dollar... My company, Extend, for example, leverages AI to process 98% of shipping claims in 90 seconds, with a replacement product shipped to the customer the same day... The new approach is a type of no-fault insurance, which the consumer purchases at checkout for around 2% of the purchase price. For a $200 pair of shoes, the cost to protect against shipping issues would be just $4.

Crime

North Koreans Use Fake Names, Scripts To Land Remote IT Work For Cash 60

Using fake names, sham LinkedIn profiles, counterfeit work papers and mock interview scripts, North Korean IT workers seeking employment in Western tech companies are deploying sophisticated subterfuge to get hired. From a report: Landing a job outside North Korea to secretly earn hard currency for the isolated country demands highly-developed strategies to convince Western hiring managers, according to documents reviewed by Reuters, an interview with a former North Korean IT worker and cybersecurity researchers. North Korea has dispatched thousands of IT workers overseas, an effort that has accelerated in the last four years, to bring in millions to finance Pyongyang's nuclear missile programme, according to the United States, South Korea, and the United Nations.

"People are free to express ideas and opinions," reads one interview script used by North Korean software developers that offers suggestions for how to describe a "good corporate culture" when asked. Expressing one's thoughts freely could be met with imprisonment in North Korea. The scripts totalling 30 pages, were unearthed by researchers at Palo Alto Networks, a U.S. cybersecurity firm which discovered a cache of internal documents online that detail the workings of North Korea's remote IT workforce. The documents contain dozens of fraudulent resumes, online profiles, interview notes, and forged identities that North Korean workers used to apply for jobs in software development.
United States

Secretive White House Surveillance Program Gives Cops Access To Trillions of US Phone Records (wired.com) 104

An anonymous reader quotes a report from Wired: A little-known surveillance program tracks more than a trillion domestic phone records within the United States each year, according to a letter WIRED obtained that was sent by US senator Ron Wyden to the Department of Justice (DOJ) on Sunday, challenging the program's legality. According to the letter, a surveillance program now known as Data Analytical Services (DAS) has for more than a decade allowed federal, state, and local law enforcement agencies to mine the details of Americans' calls, analyzing the phone records of countless people who are not suspected of any crime, including victims. Using a technique known as chain analysis, the program targets not only those in direct phone contact with a criminal suspect but anyone with whom those individuals have been in contact as well.

The DAS program, formerly known as Hemisphere, is run in coordination with the telecom giant AT&T, which captures and conducts analysis of US call records for law enforcement agencies, from local police and sheriffs' departments to US customs offices and postal inspectors across the country, according to a White House memo reviewed by WIRED. Records show that the White House has, for the past decade, provided more than $6 million to the program, which allows the targeting of the records of any calls that use AT&T's infrastructure -- a maze of routers and switches that crisscross the United States. In a letter to US attorney general Merrick Garland on Sunday, Wyden wrote that he had "serious concerns about the legality" of the DAS program, adding that "troubling information" he'd received "would justifiably outrage many Americans and other members of Congress." That information, which Wyden says the DOJ confidentially provided to him, is considered "sensitive but unclassified" by the US government, meaning that while it poses no risk to national security, federal officials, like Wyden, are forbidden from disclosing it to the public, according to the senator's letter.
AT&T spokesperson Kim Hart Jonson said only that the company is required by law to comply with a lawful subpoena. However, "there is no law requiring AT&T to store decades' worth of Americans' call records for law enforcement purposes," notes Wired. "Documents reviewed by WIRED show that AT&T officials have attended law enforcement conferences in Texas as recently as 2018 to train police officials on how best to utilize AT&T's voluntary, albeit revenue-generating, assistance."

"The collection of call record data under DAS is not wiretapping, which on US soil requires a warrant based on probable cause. Call records stored by AT&T do not include recordings of any conversations. Instead, the records include a range of identifying information, such as the caller and recipient's names, phone numbers, and the dates and times they placed calls, for six months or more at a time." It's unclear exactly how far back the call records accessible under DAS go, although a slide deck released under the Freedom of Information Act in 2014 states that they can be queried for up to 10 years.
Cellphones

FCC Tightens Telco Rules To Combat SIM-Swapping (securityweek.com) 21

An anonymous reader quotes a report from SecurityWeek: Moving to clamp down on the growing scourge of SIM-swapping and port-out fraud, the Federal Communications Commission (FCC) has unveiled new rules mandating telcos to give consumers greater control of their mobile phone accounts. Under the new rules, wireless carriers are required to notify customers of any SIM transfer requests, a measure designed to thwart fraudulent attempts by cybercriminals. The FCC has also revised its customer proprietary network information and local number portability rules, making it more challenging for scammers to access sensitive subscriber information.

The new protective measures (PDF) are meant to address SIM-swapping and port-out attacks widely documented in cybercriminal attacks against businesses and consumers. The attack technique is used to hijack mobile accounts, change and steal passwords, bypass MFA roadblocks and raid bank accounts. Studies have found that major mobile carriers in the US are vulnerable to SIM-swapping with the Federal Bureau of Investigation (FBI) receiving thousands of consumer complaints every year.

Security

Ransomware Group Reports Victim It Breached To SEC Regulators (arstechnica.com) 32

One of the world's most active ransomware groups has taken an unusual -- if not unprecedented -- tactic to pressure one of its victims to pay up: reporting the victim to the US Securities and Exchange Commission. From a report: The pressure tactic came to light in a post published on Wednesday on the dark web site run by AlphV, a ransomware crime syndicate that's been in operation for two years. After first claiming to have breached the network of the publicly traded digital lending company MeridianLink, AlphV officials posted a screenshot of a complaint it said it filed with the SEC through the agency's website. Under a recently adopted rule that goes into effect next month, publicly traded companies must file an SEC disclosure within four days of learning of a security incident that had a "material" impact on their business.

"We want to bring to your attention a concerning issue regarding MeridianLink's compliance with the recently adopted cybersecurity incident disclosure rules," AlphV officials wrote in the complaint. "It has come to our attention that MeridianLink, in light of a significant breach compromising customer data and operational information, has failed to file the requisite disclosure under item 1.05 of form 8-K within the stipulated four business days, as mandated by the new SEC rules." The violation category selected in the online report was "Material misstatement or omission in a company's filings or financial statements or a failure to file."

Security

FBI Struggled To Disrupt Dangerous Casino Hacking Gang, Cyber Responders Say 30

The U.S. Federal Bureau of Investigation (FBI) has struggled to stop a hyper-aggressive cybercrime gang that's been tormenting corporate America over the last two years, according to nine cybersecurity responders, digital crime experts and victims. Reuters: For more than six months, the FBI has known the identities of at least a dozen members tied to the hacking group responsible for the devastating September break-ins at casino operators MGM Resorts International and Caesars Entertainment, according to four people familiar with the investigation. Industry executives have told Reuters they were baffled by an apparent lack of arrests despite many of the hackers being based in America. "I would love for somebody to explain it to me," said Michael Sentonas, president of CrowdStrike, one of the firms leading the response effort to the hacks.

"For such a small group, they are absolutely causing havoc," Sentonas told Reuters in an interview last month. Sentonas said the hackers were "known" but didn't provide specifics. He did say, "I think there is a failure here." Asked who was responsible for the failure, Sentonas said, "law enforcement." [...] Dubbed by some security professionals as "Scattered Spider," the hacking group has been active since 2021 but it grabbed headlines following a series of intrusions at several high profile American companies.
Google

Google Sues Men Who Weaponized DMCA Notices To Crush Competition (torrentfreak.com) 50

An anonymous reader writes: Two men who allegedly used 65 Google accounts to bombard Google with fraudulent DMCA takedown notices targeting up to 620,000 URLs, have been named in a Google lawsuit filed in California on Monday. Google says the men weaponized copyright law's notice-and-takedown system to sabotage competitors' trade, while damaging the search engine's business and those of its customers.
Crime

Person Linked To Scam Asks FBI for His Seized Cryptocurrency Back (404media.co) 46

A person linked to a scam that tricked an elderly victim into transferring more than $100,000 formally requested the FBI give back his seized cryptocurrency, claiming in a petition to the agency that he is a part-time crypto investor and not doing anything illegal, according to a recently filed court record. From a report: 404 Media also reached the person by email and they largely repeated the same story. The request is an unusual sight, and, to be frank, probably not going to work. In the court record, authorities allege that the frozen funds are linked to a scam of a victim in the U.S. The document says authorities seized just under 18,500 Tether, valued at around $18,500, in July with a federal search warrant.

"Hello Sir/Ma'am, My name is Vishal Gautam," the request starts. "The funds which you have on hold that is a very big amount of money for me and my family, I request you to please release it from your custody. Thank You & Regards." The message says that Gautam lives in India and as well as investing in cryptocurrency, he is a "full-time Health Insurance" worker. "In the month of July 2023 suddenly my crypto from Binance got disappeared, I don't know how it happened but then I got to know that the FBI has put hold on my assets," the message continues. "I am not into something illegal and never will be, I will not do any such thing that can harm your country or your people in any manner." U.S. authorities, meanwhile, allege that the seized cash is connected to a fraud scheme that targeted a senior citizen in Knoxville, Iowa. In February, this victim opened an email on her iPad that claimed it had been compromised, and that she needed to contact the sender for assistance, according to the court record.

Social Networks

Nepal To Ban TikTok (kathmandupost.com) 40

The Nepal government has decided to impose a ban on TikTok. From a report on the local newspaper Kathmandu Post: A Cabinet meeting on Monday took the decision to ban the Chinese-owned app, citing its negative effects on social harmony. However, when the decision will be brought into force is yet to be ascertained. Although freedom of expression is a basic right, a large section of society has criticised TikTok for encouraging a tendency of hate speech, the government said. In the past four years, 1,647 cases of cyber crime have been reported on the video sharing app.

The Cyber Bureau of the Nepal Police, Ministry of Home Affairs, and representatives of TikTok discussed the issue earlier last week. Monday's decision is expected to be enforced following the completion of technical preparations. The latest decision has come within days after the government introduced the 'Directives on the Operation of Social Networking 2023.' As per the new rule, social media platforms operating in Nepal required to set up their offices in the country.

Television

Netflix Announces Neil Gaiman Series, Zach Snyder Movie, Anime 'Terminator' and 'Exploding Kittens' (theverge.com) 33

Netflix's annual virtual event "Geeked Week" pre-announces its biggest upcoming shows. This year Netflix released a trailer for its upcoming adaptation of The Three-Body Problem, and for its new live-action Avatar: The Last Airbender series. (And there's also going to be some kind of live-action Stranger Things stage show opening in London in December.)

Variety noted the "explosive" new trailer for Zach Snyder's new "action-packed space opera" Rebel Moon. The film — which will also have a one-week theatrical run in December — takes place in the same universe as Snyder's Army of the Dead. But instead of being set in Las Vegas, "The story centers on a young woman living on the outskirts of a galaxy who must find a group of warriors to save the galaxy from an invasion from a tyrant."

The Verge pulled together a good rundown of all the other announcements — one of which involves Neil Gaiman: Following last year's The Sandman, Netflix is bringing even more beloved Neil Gaiman characters to the small screen. This time it's Dead Boy Detectives — which was originally slated to stream on Max — based on a crime-solving duo who made their debut in a Sandman comic in the '90s. The news was paired with the first trailer for the series, which shows off a pretty fun-looking supernatural whodunit...

Netflix says the new eight-episode series is part of its growing "Sandman universe"... with Gaiman serving as one of the executive producers. [Coming sometime in 2024]

They're also launching several animated series.
  • Netflix released a short teaser for Terminator: the Anime Series.
  • An adult animated comedy series based on the card game Exploding Kittens. (The Verge writes that its trailer "features god in the body of a cat and a very confounding garage door" — and that there will also be an accompanying mobile game.)
  • Netflix also has a new Chicken Run movie coming in December with its own tie-in game called Eggstraction.

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