×
Wikipedia

Russia Clones Wikipedia, Censors It, Bans Original (404media.co) 239

Jules Roscoe reports via 404 Media: Russia has replaced Wikipedia with a state-sponsored encyclopedia that is a clone of the original Russian Wikipedia but which conveniently has been edited to omit things that could cast the Russian government in poor light. Real Russian Wikipedia editors used to refer to the real Wikipedia as Ruwiki; the new one is called Ruviki, has "ruwiki" in its url, and has copied all Russian-language Wikipedia articles and strictly edited them to comply with Russian laws. The new articles exclude mentions of "foreign agents," the Russian government's designation for any person or entity which expresses opinions about the government and is supported, financially or otherwise, by an outside nation. [...]

Wikimedia RU, the Russian-language chapter of the non-profit that runs Wikipedia, was forced to shut down in late 2023 amid political pressure due to the Ukraine war. Vladimir Medeyko, the former head of the chapter who now runs Ruviki, told Novaya Gazeta Europe in July that he believed Wikipedia had problems with "reliability and neutrality." Medeyko first announced the project to copy and censor the 1.9 million Russian-language Wikipedia articles in June. The goal, he said at the time, was to edit them so that the information would be "trustworthy" as a source for all Russian users. Independent outlet Bumaga reported in August that around 110 articles about the war in Ukraine were missing in full, while others were severely edited. Ruviki also excludes articles about reports of torture in prisons and scandals of Russian government representatives. [...]

Graphic designer Constantine Konovalov calculated the number of characters changed between Wikipedia RU and Ruviki articles on the same topics, and found that there were 205,000 changes in articles about freedom of speech; 158,000 changes in articles about human rights; 96,000 changes in articles about political prisoners; and 71,000 changes in articles about censorship in Russia. He wrote in a post on X that the censorship was "straight out of a 1984 novel." Interestingly, the Ruviki article about George Orwell's 1984 entirely omits the Ministry of Truth, which is the novel's main propaganda outlet concerned with governing "truth" in the country.

Earth

America's First Big-Rig Hydrogen Fuel Station Opens in California (msn.com) 131

Oakland, California is now home to "the first commercial hydrogen fuel station for big-rig trucks in the United States," according to the Los Angeles Times — serving 30 hydrogen fuel-cell trucks.

The newspaper says the facility "could mark the start of a nationwide network for fuel-cell truck refueling. It could also flop." Hydrogen fuel is expensive — as much as four times more expensive than gasoline or diesel fuel. The fuel cells, which drive electric motors to drive the truck, are enormously expensive as well.... The vehicles themselves are expensive too. Both battery electric and hydrogen fuel-cell trucks can cost three times as much or more than a $120,000 diesel truck. Those buying the trucks can qualify for state and federal subsidies to make up most of the upfront costs.
But government regulations may spark some demand: New diesel truck sales will be outlawed in California by 2036. Only zero-tailpipe-emission new trucks will be allowed. Already, zero-emission requirements are in place for trucks that enter ocean ports. And only two technologies are available to achieve that goal: battery electric trucks and hydrogen fuel-cell trucks. "We believe a good portion of those will be hydrogen vehicles," said Matt Miyasato, chief of public policy for hydrogen fuel distributor FirstElement Fuel. FirstElement, through its True Zero brand fueling stations, is the largest hydrogen vehicle fuel distributor in the U.S...

Battery electric is gaining a strong foothold in the medium-sized delivery truck market, but hydrogen could have a leg up for long-haul trucking. While a fuel cell is comparable in size to a diesel engine, a battery big enough for long-haul trucks adds weight and size and cuts down on the total freight load the truck can deliver. And while an electric truck battery can take hours to recharge, the refill time for hydrogen is more comparable to filling up with diesel fuel.

China

America's Commerce Department is Reviewing China's Use of RISC-V Chips (reuters.com) 130

An anonymous reader shared a report this week from Reuters: The U.S. Department of Commerce is reviewing the national security implications of China's work in open-source RISC-V chip technology, according to a letter sent to U.S. lawmakers...

The technology is being used by major Chinese tech firms such as Alibaba Group Holding and has become a new front in the strategic competition over advanced chip technology between the U.S. and China. In November, 18 U.S. lawmakers from both houses of Congress pressed the Biden administration for its plans to prevent China "from achieving dominance in ... RISC-V technology and leveraging that dominance at the expense of U.S. national and economic security."

In a letter last week to the lawmakers that was seen by Reuters on Tuesday, the Commerce Department said it is "working to review potential risks and assess whether there are appropriate actions under Commerce authorities that could effectively address any potential concerns."

But the Commerce Department also noted that it would need to tread carefully to avoid harming U.S. companies that are part of international groups working on RISC-V technology.

Businesses

Bezos, Other Amazon Execs Used Signal - a Problem for FTC Investigators (seattletimes.com) 93

Pursuing an unfair business practices case against Amazon, America's Federal Trade Commission has now "accused" Amazon of using Signal, reports the Seattle Times:

The newspaper notes that the app "can be set to automatically delete messages, to hide information related to the FTC's ongoing antitrust investigation into the company." In a court filing this week, the FTC moved to "compel" Amazon to share more information about its policies and instructions related to using the Signal app... The FTC accused Amazon executives of manually turning on the feature to delete messages in Signal even after the company learned that the FTC was investigating and had told Amazon to keep documents, emails and other messages.

Many of Amazon's senior leaders used Signal, according to the FTC, including former CEO and current chair Jeff Bezos, CEO Andy Jassy, and general counsel David Zapolsky, as well as Jeff Wilke, former head of Amazon's worldwide consumer business, and Dave Clark, former worldwide operations chief. "Amazon is a company that tightly controls what its employees put into writing," FTC attorneys said in a court filing Thursday. "But Amazon's senior leadership also used another channel for internal communications and avoided the need to talk carefully by destroying the records of their messages...."

In the court filing Thursday, the FTC asked Amazon to provide two troves of documents related to its use of Signal: Amazon's document preservation notices and its instructions about the use of "ephemeral messaging applications, including Signal." The FTC said Amazon waited for more than a year after it learned of the investigation to instruct its employees to preserve Signal messages. "It is highly likely that relevant information has been destroyed as a result of Amazon's actions and inactions," the FTC wrote in court records.

Government

Pegasus Spyware Used on Hundreds of People, Says Poland's Prosecutor General (apnews.com) 22

An anonymous reader shared this report from the Associated Press: Poland's prosecutor general told the parliament on Wednesday that powerful Pegasus spyware was used against hundreds of people during the former government in Poland, among them elected officials. Adam Bodnar told lawmakers that he found the scale of the surveillance "shocking and depressing...." The data showed that Pegasus was used in the cases of 578 people from 2017 to 2022, and that it was used by three separate government agencies: the Central Anticorruption Bureau, the Military Counterintelligence Service and the Internal Security Agency. The data show that it was used against six people in 2017; 100 in 2018; 140 in 2019; 161 in 2020; 162 in 2021; and then nine in 2022, when it stopped.... Bodnar said that the software generated "enormous knowledge" about the "private and professional lives" of those put under surveillance. He also stressed that the Polish state doesn't have full control over the data that is gathered because the system operates on the basis of a license that was granted by an Israeli company.
"Pegasus gives its operators complete access to a mobile device, allowing them to extract passwords, photos, messages, contacts and browsing history and activate the microphone and camera for real-time eavesdropping."
Transportation

Boeing Accused of Retaliating Against Two Engineers in 2022 (reuters.com) 51

Reuters reports that America's Federal Aviation Administration "is investigating a union's claims that Boeing retaliated against two employees who in 2022 insisted the planemaker re-evaluate prior engineering work on 777 and 787 jets."

The employees' union "said the two unidentified engineers were representatives of the FAA, which delegates some of its oversight authority and certification process to Boeing workers." The FAA noted on Tuesday that in 2022 it boosted oversight of planemakers by protecting aviation industry employees who perform agency functions from interference by their employers. A December 2021 Senate report found "FAA's certification process suffers from undue pressure on line engineers and production staff."

"Boeing can tell Congress and the media all it wants about how retaliation is strictly prohibited," said SPEEA Director of Strategic Development Rich Plunkett. "But our union is fighting retaliation cases on a regular basis, and, in this specific case, Boeing is trying to hide information that would shed light on what happened...."

Last week, Boeing quality engineer whistleblower Sam Salehpour, who raised questions about Boeing widebody jets, told senators he was told to "shut up" when he flagged safety concerns. He has said he was removed from the 787 program and transferred to the 777 jet due to his questions.

Boeing has "zero tolerance for retaliation," according a statement quoted by Reuters, in which the company says they "encourage our employees to speak up when they see an issue. After an extensive review of documentation and interviewing more than a dozen witnesses, our investigators found no evidence of retaliation or interference. We have determined the allegations are unsubstantiated."

The union's version of the story? "After nearly six months of debate, the two engineers, with backing from the FAA, prevailed. Boeing re-did the required analysis." The two engineers were still Boeing employees, however, and Boeing management was not pleased. When they came up for their next performance reviews, the two engineers received identical negative evaluations... Even after the manager of the two engineers admitted that he had rated them both poorly at the request of the 777 and 787 managers who had been forced to resubmit their work, Boeing refused to change the engineers' performance evaluations.

At this point, one of the engineers left in disgust; the other filed a formal "Speak Up" complaint with Boeing.

Businesses

$5.6 Million in Refunds Sent to Ring Customers, Settling Unauthorized Access and Privacy Violations (apnews.com) 10

America's Federal Trade Commission "is sending more than $5.6 million in refunds to consumers," reports the Associated Press, "as part of a settlement with Amazon-owned Ring, which was charged with failing to protect private video footage from outside access." In a 2023 complaint, the FTC accused the doorbell camera and home security provider of allowing its employees and contractors to access customers' private videos. Ring allegedly used such footage to train algorithms without consent, among other purposes. Ring was also charged with failing to implement key security protections, which enabled hackers to take control of customers' accounts, cameras and videos. This led to "egregious violations of users' privacy," the FTC noted.

The resulting settlement required Ring to delete content that was found to be unlawfully obtained, establish stronger security protections and pay a hefty fine. The FTC says that it's now using much of that money to refund eligible Ring customers.

According to their announcement Tuesday, the FTC is now sending 117,044 PayPal payments to affected consumers...
The Internet

Court Upholds New York Law That Says ISPs Must Offer $15 Broadband (arstechnica.com) 47

The U.S. Court of Appeals for the 2nd Circuit overturned a prior district court decision, lifting the injunction that blocked New York's law mandating that ISPs offer $15 broadband plans to low-income families. Ars Technica reports: The ruling (PDF) is a loss for six trade groups that represent ISPs, although it isn't clear right now whether the law will be enforced. For consumers who qualify for means-tested government benefits, the state law requires ISPs to offer "broadband at no more than $15 per month for service of 25Mbps, or $20 per month for high-speed service of 200Mbps," the ruling noted. The law allows for price increases every few years and makes exemptions available to ISPs with fewer than 20,000 customers.

"First, the ABA is not field-preempted by the Communications Act of 1934 (as amended by the Telecommunications Act of 1996), because the Act does not establish a framework of rate regulation that is sufficiently comprehensive to imply that Congress intended to exclude the states from entering the field," a panel of appeals court judges stated in a 2-1 opinion. Trade groups claimed the state law is preempted by former Federal Communications Commission Chairman Ajit Pai's repeal of net neutrality rules. Pai's repeal placed ISPs under the more forgiving Title I regulatory framework instead of the common-carrier framework in Title II of the Communications Act.

2nd Circuit judges did not find this argument convincing: "Second, the ABA is not conflict-preempted by the Federal Communications Commission's 2018 order classifying broadband as an information service. That order stripped the agency of its authority to regulate the rates charged for broadband Internet, and a federal agency cannot exclude states from regulating in an area where the agency itself lacks regulatory authority. Accordingly, we REVERSE the judgment of the district court and VACATE the permanent injunction."

The Almighty Buck

IRS Free Tax Filing Pilot Saved Consumers $5.6 Million In Prep Fees (cnbc.com) 37

The free tax filing pilot from the IRS that rolled out in 12 states last month saved filers an estimated $5.6 million in tax preparation fees for federal returns, said IRS Commissioner Danny Werfel. CNBC reports: This season, more than 140,000 taxpayers successfully filed returns using IRS Direct File, a free tax filing pilot from the IRS, according to the U.S. Department of the Treasury and the IRS. Direct File surveyed more than 15,000 users, around 90% of whom rated their experience as "excellent," the agencies reported.

"We have not made a decision about the future of Direct File," Werfel said, noting the agency still needs to analyze data and get feedback from a "wide variety of stakeholders." The IRS plans to release a more detailed report about the Direct File pilot "in the coming days," he added. If Direct File were expanded for the next season, the program could add additional states and tax situations, according to a senior IRS official. The agency expects to decide the future of Direct File later this spring, Werfel said.

United Kingdom

British Intelligence Moves To Protect Research Universities From Espionage (therecord.media) 8

The head of Britain's domestic intelligence agency warned the country's leading research universities on Thursday that foreign states are targeting their institutions and imperilling national security. The Record: "We know that our universities are being actively targeted by hostile actors and need to guard against the threat posed to frontier research in the most sensitive sectors," said the deputy prime minister Oliver Dowden, who also attended the briefing. The threat requires "further measures," said the deputy PM, who announced that the government was launching a consultation with the sector so it could "do more to support our universities and put the right security in place to protect their cutting-edge research."

The briefing was delivered by Ken McCallum, the director general of MI5, alongside Dowden and the National Cyber Security Centre's interim chief executive, Felicity Oswald. It was made to the vice-chancellors of the Russell Group, a collective of the country's 24 leading universities. Among the range of measures being considered is having MI5, the domestic security agency, carry out security vetting on key researchers involved in a "small proportion of academic work, with a particular focus on research with potential dual uses in civilian and military life."

AI

OpenAI's Sam Altman and Other Tech Leaders To Serve on AI Safety Board (wsj.com) 32

Sam Altman of OpenAI and the chief executives of Nvidia, Microsoft and Alphabet are among technology-industry leaders joining a new federal advisory board focused on the secure use of AI within U.S. critical infrastructure, in the Biden administration's latest effort to fill a regulatory vacuum over the rapidly proliferating technology. From a report: The Artificial Intelligence Safety and Security Board is part of a government push to protect the economy, public health and vital industries from being harmed by AI-powered threats, U.S. officials said. Working with the Department of Homeland Security, it will develop recommendations for power-grid operators, transportation-service providers and manufacturing plants, among others, on how to use AI while bulletproofing their systems against potential disruptions that could be caused by advances in the technology.

In addition to Nvidia's Jensen Huang, Microsoft's Satya Nadella, Alphabet's Sundar Pichai and other leaders in AI and technology, the panel of nearly two dozen consists of academics, civil-rights leaders and top executives at companies that work within a federally recognized critical-infrastructure sector, including Kathy Warden, chief executive of Northrop Grumman, and Delta Air Lines Chief Executive Ed Bastian. Other members are public officials, such as Maryland Gov. Wes Moore and Seattle Mayor Bruce Harrell, both Democrats.

The Internet

FCC Votes To Restore Net Neutrality Rules (nytimes.com) 54

An anonymous reader quotes a report from the New York Times: The Federal Communications Commission voted on Thursday to restore regulations that expand government oversight of broadband providersand aim to protect consumer access to the internet, a move that will reignite a long-running battle over the open internet. Known as net neutrality, the regulations were first put in place nearly a decade ago under the Obama administration and are aimed at preventing internet service providers like Verizon or Comcast from blocking or degrading the delivery of services from competitors like Netflix and YouTube. The rules were repealed under President Donald J. Trump, and have proved to be a contentious partisan issue over the years while pitting tech giants against broadband providers.

In a 3-to-2 vote along party lines, the five-member commission appointed by President Biden revived the rules that declare broadband a utility-like service regulated like phones and water. The rules also give the F.C.C. the ability to demand broadband providers report and respond to outages, as well as expand the agency's oversight of the providers' security issues. Broadband providers are expected to sue to try to overturn the reinstated rules.

The core purpose of the regulations is to prevent internet service providers from controlling the quality of consumers' experience when they visit websites and use services online. When the rules were established, Google, Netflix and other online services warned that broadband providers had the incentive to slow down or block access to their services. Consumer and free speech groups supported this view. There have been few examples of blocking or slowing of sites, which proponents of net neutrality say is largely because of fear that the companies would invite scrutiny if they did so. And opponents say the rules could lead to more and unnecessary government oversight of the industry.

The Almighty Buck

Airlines Required To Refund Passengers For Canceled, Delayed Flights (go.com) 77

Department of Transportation Secretary Pete Buttigieg announced new rules for the airline industry that will require airlines to automatically give cash refunds to passengers for canceled and significantly delayed flights. They will also require airlines to give cash refunds if your bags are lost and not delivered within 12 hours.

"This is a big day for America's flying public," said Buttigieg at a Wednesday morning news conference. According to Buttigieg, the new rules are the biggest expansion of passenger rights in the department's history. ABC News reports: Airlines can no longer decide how long a delay must be before a refund is issued. Under the new DOT rules, the delays covered would be more than three hours for domestic flights and more than six hours for international flights, the agency said. This includes tickets purchased directly from airlines, travel agents and third-party sites such as Expedia and Travelocity.

The refunds must be issued within seven days, according to the new DOT rules, and must be in cash unless the passenger chooses another form of compensation. Airlines can no longer issue refunds in forms of vouchers or credits when consumers are entitled to receive cash. Airlines will have six months to comply with the new rules.

The DOT said it is also working on rules related to family seating fees, enhancing rights for wheelchair-traveling passengers for safe and dignified travel and mandating compensation and amenities if flights are delayed or canceled by airlines. Buttigieg said the DOT is also protecting airline passengers from being surprised by hidden fees -- a move he estimates will have Americans billions of dollars every year. The DOT rules include that passengers will receive refunds for extra services paid for and not provided, such as Wi-Fi, seat selection or inflight entertainment.

Security

'ArcaneDoor' Cyberspies Hacked Cisco Firewalls To Access Government Networks (wired.com) 22

An anonymous reader quotes a report from Wired: Network security appliances like firewalls are meant to keep hackers out. Instead, digital intruders are increasingly targeting them as the weak link that lets them pillage the very systems those devices are meant to protect. In the case of one hacking campaign over recent months, Cisco is now revealing that its firewalls served as beachheads for sophisticated hackers penetrating multiple government networks around the world. On Wednesday, Cisco warned that its so-called Adaptive Security Appliances -- devices that integrate a firewall and VPN with other security features -- had been targeted by state-sponsored spies who exploited two zero-day vulnerabilities in the networking giant's gear to compromise government targets globally in a hacking campaign it's calling ArcaneDoor.

The hackers behind the intrusions, which Cisco's security division Talos is calling UAT4356 and which Microsoft researchers who contributed to the investigation have named STORM-1849, couldn't be clearly tied to any previous intrusion incidents the companies had tracked. Based on the group's espionage focus and sophistication, however, Cisco says the hacking appeared to be state-sponsored. "This actor utilized bespoke tooling that demonstrated a clear focus on espionage and an in-depth knowledge of the devices that they targeted, hallmarks of a sophisticated state-sponsored actor," a blog post from Cisco's Talos researchers reads. Cisco declined to say which country it believed to be responsible for the intrusions, but sources familiar with the investigation tell WIRED the campaign appears to be aligned with China's state interests.

Cisco says the hacking campaign began as early as November 2023, with the majority of intrusions taking place between December and early January of this year, when it learned of the first victim. "The investigation that followed identified additional victims, all of which involved government networks globally," the company's report reads. In those intrusions, the hackers exploited two newly discovered vulnerabilities in Cisco's ASA products. One, which it's calling Line Dancer, let the hackers run their own malicious code in the memory of the network appliances, allowing them to issue commands to the devices, including the ability to spy on network traffic and steal data. A second vulnerability, which Cisco is calling Line Runner, would allow the hackers' malware to maintain its access to the target devices even when they were rebooted or updated. It's not yet clear if the vulnerabilities served as the initial access points to the victim networks, or how the hackers might have otherwise gained access before exploiting the Cisco appliances.
Cisco advises that customers apply its new software updates to patch both vulnerabilities.

A separate advisory (PDF) from the UK's National Cybersecurity Center notes that physically unplugging an ASA device does disrupt the hackers' access. "A hard reboot by pulling the power plug from the Cisco ASA has been confirmed to prevent Line Runner from re-installing itself," the advisory reads.
Google

Google Fires More Employees Over Protest of Cloud Contract With Israel (axios.com) 228

Google has fired another 20 workers for participating in protests against its $1.2 billion cloud computing contract with the Israeli government, according to an activist group representing the workers. From a report: In total, the company has now fired around 50 employees over sit-in protests held in Google offices last week that were part of yearslong discontent among a group of Google and Amazon workers over claims that Israel is using the companies' services to harm Palestinians. Google has denied those claims, saying Project Nimbus, the cloud-computing contract, doesn't involve "highly sensitive, classified, or military workloads relevant to weapons or intelligence services," and that Israeli government ministries that use its commercial cloud must agree to its terms of services and other policies.

No Tech For Apartheid, the group representing the workers, claimed in a statement that Google is attempting to "quash dissent, silence its workers, and reassert its power over them." "That's because Google values its profit, and its $1.2 billion contract with the Israeli government and military, more than people. And it certainly values it over its own workers," it said. The group said it will continue organizing until Google cancels Project Nimbus.
Further reading: Google To Employees: 'We Are a Workplace'.
Microsoft

Ex-White House Cyber Policy Director: Microsoft is a National Security Risk (theregister.com) 124

This week the Register spoke to former senior White House cyber policy director A.J. Grotto — who complained it was hard to get even slight concessions from Microsoft: "If you go back to the SolarWinds episode from a few years ago ... [Microsoft] was essentially up-selling logging capability to federal agencies" instead of making it the default, Grotto said. "As a result, it was really hard for agencies to identify their exposure to the SolarWinds breach." Grotto told us Microsoft had to be "dragged kicking and screaming" to provide logging capabilities to the government by default. [In the interview he calls it "an epic fight" which lasted 18 months."] [G]iven the fact the mega-corp banked around $20 billion in revenue from security services last year, the concession was minimal at best.

That illustrates, Grotto said, that "they [Microsoft] just have a ton of leverage, and they're not afraid to use it." Add to that concerns over an Exchange Online intrusion by Chinese snoops, and another Microsoft security breach by Russian cyber operatives, both of which allowed spies to gain access to US government emails, and Grotto says it's fair to classify Microsoft and its products as a national security concern.

He estimates that Microsoft makes 85% of U.S. government productivity software — and has an even greater share of their operating systems. "Microsoft in many ways has the government locked in, he says in the interview, "and so it's able to transfer a lot of these costs associated with the security breaches over to the federal government."

And about five minutes in, he says, point-blank, that "It's perfectly fair" to consider Microsoft a national security threat, given its dominance "not just within the federal government, but really in sort of the boarder IT marketplace. I think it's fair to say, yeah, that a systemic compromise that affects Microsoft and its products do rise to the level of a national security risk."

He'd like to see the government encourage more competition — to the point where public scrutiny prompts software customers to change their behavior, and creates a true market incentive for better performance...
Crime

Lying to Investors? Co-Founder of Startup 'HeadSpin' Gets 18-Month Prison Sentence for Fraud (sfgate.com) 28

The co-founder of Silicon Valley-based software testing startup HeadSpin was sentenced Friday to 18 months in prison and a $1 million fine, reports SFGate — for defrauding investors. Lachwani pleaded guilty to two counts of wire fraud and a count of securities fraud in April 2023, after federal prosecutors accused him of, for years, lying to investors about HeadSpin's finances to raise more money. HeadSpin, founded in 2015, grew to a $1.1 billion valuation by 2020 with over $115 million in funding from investors including Google Ventures and Iconiq Capital... He had personally altered invoices, lied to the company accountant and sent slide decks with fraudulent information to investors, [according to the government's 2021 criminal complaint]...

Breyer, per the New York Times, rejected Lachwani's lawyer's argument that because HeadSpin investors didn't end up losing money, he should receive a light sentence. The judge, who often oversees tech industry cases, reportedly said: "If you win, there are no serious consequences — that simply can't be the law." Still, the sentencing was far lighter than it could have been. The government's prosecuting attorneys had asked for a five-year prison term.

The New York Times reported in December that HeadSpin's financial statements had "often arrived months late, if at all, investors said in legal declarations," while the company's financial department "consisted of one external accountant who worked mostly from home using QuickBooks." And the comnpany also had no human resources department or organizational chart... After Manish Lachwani founded the Silicon Valley software start-up HeadSpin in 2015, he inflated the company's revenue numbers by nearly fourfold and falsely claimed that firms including Apple and American Express were customers. He showed a profit where there were losses. He used HeadSpin's cash to make risky trades on tech stocks. And he created fake invoices to cover it all up.

What was especially breathtaking was how easily Mr. Lachwani, now 48, pulled all that off... [HeadSpin] had no chief financial officer, had no human resources department and was never audited. Mr. Lachwani used that lack of oversight to paint a rosier picture of HeadSpin's growth. Even though its main investors knew the start-up's financials were not accurate, according to Mr. Lachwani's lawyers, they chose to invest anyway, eventually propelling HeadSpin to a $1.1 billion valuation in 2020. When the investors pushed Mr. Lachwani to add a chief financial officer and share more details about the company's finances, he simply brushed them off. These details emerged this month in filings in U.S. District Court for the Northern District of California after Mr. Lachwani had pleaded guilty to three counts of fraud in April...

The absence of controls at HeadSpin is part of an increasingly noticeable pattern at Silicon Valley start-ups that have run into trouble. Over the past decade, investors in tech start-ups were so eager to back hot companies that many often overlooked reckless behavior and gave up key controls like board seats, all in the service of fast growth and disruption. Then when founders took the ethos of "fake it till you make it" too far, their investors were often unaware or helpless...

Now, amid a start-up shakeout, more frauds have started coming to light. The founder of the college aid company Frank has been charged, the internet connectivity start-up Cloudbrink has been sued, and the social media app IRL has been investigated and sued. Last month, Mike Rothenberg, a Silicon Valley investor, was found guilty on 21 counts of fraud and money laundering. On Monday, Trevor Milton, founder of the electric vehicle company Nikola, was sentenced to four years in prison for lying about Nikola's technological capabilities.

The Times points out that similarly, FTX only had a three-person board "with barely any influence over the company, tracked its finances on QuickBooks and used a small, little-known accounting firm." And that Theranos had no financial audits for six years.
Transportation

Should Automakers Feel Threatened by China's Exports of Electric Cars? (yahoo.com) 305

The Los Angeles Times reports that the U.S.-China rivalry "has a new flashpoint in the battle for technology supremacy: electric cars."

"So far, the U.S. is losing." Last year, China became the world's foremost auto exporter, according to the China Passenger Car Assn., surpassing Japan with more than 5 million sales overseas. New energy vehicles accounted for about 25% of those exports, and more than half of those were created by Chinese brands, a shift from the traditional assembly role China has played for foreign automakers. "The big growth has happened in the last three years," said Stephen Dyer, head of the Asia automotive and industrials unit at AlixPartners, a consulting firm. "With Chinese automakers making inroads for most of the market share, that's a huge challenge for foreign automakers." China's rapid expansion domestically and abroad has added fuel to a series of clashes between the U.S. and China over trade and advanced technology, as competition intensifies between the two superpowers...

One area in which Chinese automakers handily beat Western competitors is on price, thanks to government subsidies that supported the industry's initial rise as well as cheap access to critical minerals and components such as lithium-ion batteries, which account for about a third of the overall cost of production... In March, BYD cut the price of its cheapest EV model in China to less than $10,000. According to Kelley Blue Book, the average EV retail price is $55,343 in the U.S., compared with $48,247 across all vehicles... Though 27.5% tariffs have in effect locked Chinese EVs out of the U.S. market, the fear that the cheaper models could eventually undermine American automakers has started to spread. The Alliance of American Manufacturing warned in a February report that allowing Chinese EVs into the country would be an "extinction-level event" for the U.S. auto industry. The group also cited the risks of Chinese auto companies building facilities across the border in Mexico that could circumvent tariffs....

"When the global market is flooded by artificially cheap Chinese products, the viability of American and other foreign firms is put into question," [said America's Treasury Secretary in April]. The European Union has opened an investigation into government subsidies utilized by China's EV industry and whether such support violates international trade laws.

EU

EU: Meta Cannot Rely On 'Pay Or Okay' (europa.eu) 110

The EU's European Data Protection Board oversees its privacy-protecting GDPR policies.

Earlier this week, TechCrunch reported that nearly two dozen civil society groups and nonprofits wrote the Board an open letter "urging it not to endorse a strategy used by Meta that they say is intended to bypass the EU's privacy protections for commercial gain."

Meta's strategy is sometimes called "Pay or Okay," writes long-time Slashdot reader AmiMoJo : Meta offers users a choice: "consent" to tracking, or pay over €250/year to use its sites without invasive monetization of personal data.
Meta prefers the phrase "subsccription for no ads," and told TechCrunch it makes them compliant with EU laws: A raft of complaints have been filed against Meta's implementation of the pay-or-consent tactic since it launched the "no ads" subscription offer last fall. Additionally, in a notable step last month, the European Union opened a formal investigation into Meta's tactic, seeking to find whether it breaches obligations that apply to Facebook and Instagram under the competition-focused Digital Markets Act. That probe remains ongoing.
The letter to the Board called for "robust protections that prioritize data subjects' agency and control over their information." And Wednesday the board issued its first decision:

"[I]n most cases, it will not be possible for [social media services] to comply with the requirements for valid consent, if they confront users only with a choice between consenting to processing of personal data for behavioural advertising purposes and paying a fee." The EDPB considers that offering only a paid alternative to services which involve the processing of personal data for behavioural advertising purposes should not be the default way forward for controllers. When developing alternatives, large online platforms should consider providing individuals with an 'equivalent alternative' that does not entail the payment of a fee. If controllers do opt to charge a fee for access to the 'equivalent alternative', they should give significant consideration to offering an additional alternative. This free alternative should be without behavioural advertising, e.g. with a form of advertising involving the processing of less or no personal data.
EDPB Chair, Anu Talus added: "Controllers should take care at all times to avoid transforming the fundamental right to data protection into a feature that individuals have to pay to enjoy."
United States

Insufficient Redundancy? Light-Pole Installation Cut Fiber Line, Triggered Three-State 911 Outage (apnews.com) 90

"Workers installing a light pole in Missouri cut into a fiber line," reports the Associated Press, knocking out 911 phone service "for emergency agencies in Nebraska, Nevada and South Dakota, an official with the company that operates the line said Thursday." In Kansas City, Missouri, workers installing a light pole for another company Wednesday cut into a Lumen Technologies fiber line, Lumen global issues director Mark Molzen said in an email to The Associated Press. Service was restored within 2 1/2 hours, he said. There were no reports of 911 outages in Kansas City...

The Dundy County Sheriff's Office in Nebraska warned in a social media post Wednesday night that 911 callers would receive a busy signal and urged people to instead call the administrative phone line. About three hours later, officials said mobile and landline 911 services had been restored. In Douglas County, home to Omaha and more than a quarter of Nebraska's residents, officials first learned there was a problem when calls from certain cellphone companies showed up in a system that maps calls but didn't go through over the phone. Operators started calling back anyone whose call didn't go through, and officials reached out to Lumen, which confirmed the outage. Service was restored by 4 a.m.

Kyle Kramer, the technical manager for Douglas County's 911 Center, said the outage highlights the potential problems of having so many calls go over the same network. "As things become more interconnected in our modern world, whether you're on a wireless device or a landline now, those are no longer going over the traditional old copper phone wires that may have different paths in different areas," Kramer said. "Large networks usually have some aggregation point, and those aggregation points can be a high risk."

Kramer said this incident and the two previous 911 outages he has seen in the past year in Omaha make him concerned that communications companies aren't building enough redundancy into their networks.

South Dakota officials called the state-wide outage "unprecedented," with their Department of Public Safety reporting the outage lasted two hours (though texting to 911 still worked in most locations — and of course, people could still call local emergency services using their non-emergency lines.) America's FCC has already begun an investigation.



The article notes that "The outages, ironically, occurred in the midst of National Public Safety Telecommunicators Week."

Thanks to long-time Slashdot reader davidwr for sharing the article.

Slashdot Top Deals