Encryption

FBI Repeatedly Overstated Encryption Threat Figures To Congress, Public (techcrunch.com) 60

mi shares a report from The Washington Post (Warning: source may be paywalled; alternative source): The FBI has repeatedly provided grossly inflated statistics to Congress and the public about the extent of problems posed by encrypted cellphones, claiming investigators were locked out of nearly 7,800 devices connected to crimes last year when the correct number was much smaller, probably between 1,000 and 2,000.

Over a period of seven months, FBI Director Christopher A. Wray cited the inflated figure as the most compelling evidence for the need to address what the FBI calls "Going Dark" -- the spread of encrypted software that can block investigators' access to digital data even with a court order. "The FBI's initial assessment is that programming errors resulted in significant over-counting of mobile devices reported,'' the FBI said in a statement Tuesday. The bureau said the problem stemmed from the use of three distinct databases that led to repeated counting of phones. Tests of the methodology conducted in April 2016 failed to detect the flaw, according to people familiar with the work.

Microsoft

The Whole World is Now a Computer, Says Microsoft CEO Satya Nadella (zdnet.com) 149

Thanks to cloud computing, the Internet of Things and artificial intelligence, we should start to think of the planet as one giant computer, according to Microsoft chief executive Satya Nadella. From a report: "Digital technology, pervasively, is getting embedded in every place: every thing, every person, every walk of life is being fundamentally shaped by digital technology -- it is happening in our homes, our work, our places of entertainment," said Nadella speaking in London. "It's amazing to think of a world as a computer. I think that's the right metaphor for us as we go forward."

[...] AI is core to Microsoft's strategy, Nadella said: "AI is the run time which is going to shape all of what we do going forward in terms of applications as well as the platform." Microsoft is rethinking its core products by using AI to connect them together, he said, giving an example of a meeting using translation, transcription, Microsoft's HoloLens and other devices to improve decision-making. "The idea that you can now use all of the computing power that is around you -- this notion of the world as a computer -- completely changes how you conduct a meeting and fundamentally what presence means for a meeting," he said.

Sony

Sony Is Done Working For Peanuts in the Hardware Business, New CEO To Detail Shift Away From Gadgets (bloomberg.com) 129

Kenichiro Yoshida, who took over as chief executive officer in April, is set to unveil a three-year plan on Tuesday that embraces Sony's growing reliance on income from gaming subscriptions and entertainment. From a report: The transition is already happening: even though the company sold fewer hardware products such as televisions, digital cameras, smartphones and PlayStation consoles in the year through March, it was able to post record operating profit. It's a tectonic shift for a company built on manufacturing prowess. Sony popularized transistor radios, gave the world portable music with the Walkman and its TVs were considered top-of-the-line for decades. With the rise of Chinese manufacturing, making and selling gadgets has become a business with razor-thin profit margins. Investors have applauded the transformation that's been under way since Kazuo Hirai took over as CEO in 2012, with the shares climbing more than five-fold amid a turnaround.
AI

New Toronto Declaration Calls On Algorithms To Respect Human Rights 160

A coalition of human rights and technology groups released a new declaration on machine learning standards, calling on both governments and tech companies to ensure that algorithms respect basic principles of equality and non-discrimination. The Verge reports: Called The Toronto Declaration, the document focuses on the obligation to prevent machine learning systems from discriminating, and in some cases violating, existing human rights law. The declaration was announced as part of the RightsCon conference, an annual gathering of digital and human rights groups. "We must keep our focus on how these technologies will affect individual human beings and human rights," the preamble reads. "In a world of machine learning systems, who will bear accountability for harming human rights?" The declaration has already been signed by Amnesty International, Access Now, Human Rights Watch, and the Wikimedia Foundation. More signatories are expected in the weeks to come.

Beyond general non-discrimination practices, the declaration focuses on the individual right to remedy when algorithmic discrimination does occur. "This may include, for example, creating clear, independent, and visible processes for redress following adverse individual or societal effects," the declaration suggests, "[and making decisions] subject to accessible and effective appeal and judicial review."
Privacy

Repo Men Scan Billions of License Plates -- For the Government (washingtonpost.com) 238

The Washington Post notes the billions of license plate scans coming from modern repo men "able to use big data to find targets" -- including one who drives "a beat-up Ford Crown Victoria sedan." It had four small cameras mounted on the trunk and a laptop bolted to the dash. The high-speed cameras captured every passing license plate. The computer contained a growing list of hundreds of thousands of vehicles with seriously late loans. The system could spot a repossession in an instant. Even better, it could keep tabs on a car long before the loan went bad... Repo agents are the unpopular foot soldiers in the nation's $1.2 trillion auto loan market... they are the closest most people come to a faceless, sophisticated financial system that can upend their lives...

Derek Lewis works for Relentless Recovery, the largest repo company in Ohio and its busiest collector of license plate scans. Last year, the company repossessed more than 25,500 vehicles -- including tractor trailers and riding lawn mowers. Business has more than doubled since 2014, the company said. Even with the rising deployment of remote engine cutoffs and GPS locators in cars, repo agencies remain dominant. Relentless scanned 28 million license plates last year, a demonstration of its recent, heavy push into technology. It now has more than 40 camera-equipped vehicles, mostly spotter cars. Agents are finding repos they never would have a few years ago. The company's goal is to capture every plate in Ohio and use that information to reveal patterns... "It's kind of scary, but it's amazing," said Alana Ferrante, chief executive of Relentless.

Repo agents are responsible for the majority of the billions of license plate scans produced nationwide. But they don't control the information. Most of that data is owned by Digital Recognition Network (DRN), a Fort Worth company that is the largest provider of license-plate-recognition systems. And DRN sells the information to insurance companies, private investigators -- even other repo agents. DRN is a sister company to Vigilant Solutions, which provides the plate scans to law enforcement, including police and U.S. Immigration and Customs Enforcement. Both companies declined to respond to questions about their operations... For repo companies, one worry is whether they are producing information that others are monetizing.

Digital

Rebuilding the PDP-11/70 with a Raspberry Pi (wixsite.com) 91

"You could look at this as a smallish PDP-11/70, built with modern parts," Oscar Vermeulen writes on his site. "Or alternatively, and equally valid, as a fancy front panel case for a Raspberry Pi."

Long-time Slashdot reader cptnapalm writes: Oscar Vermeulen's PiDP-11 front panel, modeling a PDP-11/70 in all its colorful glory, has been released to beta testers. This is Mr. Vermeulen's second DEC front panel; his PiDP-8 was released a few years ago. The PiDP-11 panel is designed to work with a Raspberry Pi running simh or, possibly, a FPGA implementation of the Digital Equipment Corporation PDP-11... In addition to the front panel with its switches and blinkenlights, also included is a prototyping area for the possibility of adding new hardware...

UNIX and later BSD were developed on the PDP-11, including both the creation of the C language, the pipe concept and the text editor vi.

United Kingdom

FM Radio Faces UK Government Switch-Off As Digital Listening Passes 50 Percent Milestone (inews.co.uk) 99

The Amazon Echo and other smart speakers have helped push the audience for digital radio past that of FM and AM in the UK for the first time. According to Radio Joint Audience Research (RAJAR), digital listening has reached a new record share of 50.9%, up from 47.2% a year ago. This milestone will trigger a government review into whether the analog FM radio signal should be switched off altogether. iNews reports: The BBC said it would be "premature" to switch off the FM signal. It could cut off drivers with analogue car radios and disenfranchise older wireless listeners. Margot James, Digital minister, welcomed "an important milestone for radio." She confirmed that the Government will "work closely with all partners -- the BBC, commercial radio, (transmitter business) Arqiva, car manufacturers and listeners" before committing to a timetable for analogue switch-off.

James Purnell, BBC Director of Radio and Education, said: "We're fully committed to digital, and growing its audiences, but, along with other broadcasters, we've already said that it would be premature to switch off FM." Mr Purnell said that BBC podcast listening was up a third across all audiences since the same time last year, accounting now for 40,000 hours a week. But younger audiences have not inherited the habit of listening to "live" radio, even on digital.

Software

In Virtual Reality, How Much Body Do You Need? (nytimes.com) 34

An anonymous reader quotes a report from The New York Times: Will it soon be possible to simulate the feeling of a spirit not attached to any particular physical form using virtual or augmented reality? If so, a good place to start would be to figure out the minimal amount of body we need to feel a sense of self, especially in digital environments where more and more people may find themselves for work or play. It might be as little as a pair of hands and feet, report Dr. Michiteru Kitazaki and a Ph.D. student, Ryota Kondo. In a paper published Tuesday in Scientific Reports, they showed that animating virtual hands and feet alone is enough to make people feel their sense of body drift toward an invisible avatar (Warning: source may be paywalled; alternative source). Their work fits into a corpus of research on illusory body ownership, which has challenged understandings of perception and contributed to therapies like treating pain for amputees who experience phantom limb.

Using an Oculus Rift virtual reality headset and a motion sensor, Dr. Kitazaki's team performed a series of experiments in which volunteers watched disembodied hands and feet move two meters in front of them in a virtual room. In one experiment, when the hands and feet mirrored the participants' own movements, people reported feeling as if the space between the appendages were their own bodies. In another experiment, the scientists induced illusory ownership of an invisible body, then blacked out the headset display, effectively blindfolding the subjects. The researchers then pulled them a random distance back and asked them to return to their original position, still virtually blindfolded. Consistently, the participants overshot their starting point, suggesting that their sense of body had drifted or "projected" forward, toward the transparent avatar.

Government

Congress Is Looking To Extend Copyright Protection Term To 144 Years (wired.com) 291

"Because it apparently isn't bad enough already, Congress is looking to extend the copyright term to 144 years," writes Slashdot reader llamalad. "Please write to your representatives and consider donating to the EFF." American attorney Lawrence Lessig writes via Wired: Almost exactly 20 years ago, Congress passed the Sonny Bono Copyright Term Extension Act, which extended the term of existing copyrights by 20 years. The Act was the 11th extension in the prior 40 years, timed perfectly to assure that certain famous works, including Mickey Mouse, would not pass into the public domain. Immediately after the law came into force, a digital publisher of public domain works, Eric Eldred, filed a lawsuit challenging the act [which the Supreme Court later rejected].

Twenty years later, the fight for term extension has begun anew. Buried in an otherwise harmless act, passed by the House and now being considered in the Senate, this new bill purports to create a new digital performance right -- basically the right to control copies of recordings on any digital platform (ever hear of the internet?) -- for musical recordings made before 1972. These recordings would now have a new right, protected until 2067, which, for some, means a total term of protection of 144 years. The beneficiaries of this monopoly need do nothing to get the benefit of this gift. They don't have to make the work available. Nor do they have to register their claims in advance.

AI

Google's Duplex AI Robot Will Warn That Calls Are Recorded (bloomberg.com) 28

An anonymous reader quotes a report from Bloomberg: On Thursday, the Alphabet Inc. unit shared more details on how the Duplex robot-calling feature will operate when it's released publicly, according to people familiar with the discussion. Duplex is an extension of the company's voice-based digital assistant that automatically phones local businesses and speaks with workers there to book appointments. At Google's weekly TGIF staff meeting on Thursday, executives gave employees their first full Duplex demo and told them the bot would identify itself as the Google assistant. It will also inform people on the phone that the line is being recorded in certain jurisdictions, the people said.
Security

Hardcoded Password Found in Cisco Enterprise Software, Again (bleepingcomputer.com) 70

Catalin Cimpanu, writing for BleepingComputer: Cisco released 16 security advisories yesterday, including alerts for three vulnerabilities rated "Critical" and which received a maximum of 10 out of 10 on the CVSSv3 severity score. The three vulnerabilities include a backdoor account and two bypasses of the authentication system for Cisco Digital Network Architecture (DNA) Center. The Cisco DNA Center is a piece of software that's aimed at enterprise clients and which provides a central system for designing and deploying device configurations (aka provisioning) across a large network. This is, arguably, a pretty complex piece of software, and according to Cisco, a recent internal audit has yielded some pretty bad results.
Bitcoin

Investors Have Placed $1 Billion in Cryptocurrency Offerings Rampant With Red Flags For Fraud (cnbc.com) 49

Investors have sent $1 billion into digital coin projects that flash warning signs for fraud, The Wall Street Journal reported Thursday. The revelation comes a day after the SEC created its own fake ICO to teach investors a lesson. From a report: In a review of 1,450 digital coin offerings, the Journal said it found 271 bore red flags such as plagiarized documents or fake executive information. Investors have already claimed losses of up to $273 million in these projects, the newspaper said, according to lawsuits and regulatory actions. The coin sales, or "initial coin offerings," give investors the chance to buy into a new digital token while letting developers get easy access to funding. The process may be a little too easy for many projects that are unproven or outright scams.

Coin offerings have raised roughly $9.8 billion in the two years through mid-March, according to financial research firm Autonomous Next. The Journal found widespread plagiarism in 111 projects' online whitepapers, including word-for-word copies of marketing plans and technical features.

It's funny.  Laugh.

The SEC Created Its Own Scammy ICO To Teach Investors a Lesson (theverge.com) 75

In its latest effort to fend off cryptocurrency scams, the Securities and Exchange Commission launched its own fake initial coin offering website today called the Howey Coin to warn people against fraudulent cryptocurrencies. From a report: The name is a tongue-in-cheek reference to the Howey Test that the SEC uses to determine whether an investment is a security, which the Commission would therefore have legal jurisdiction over. Click 'Buy Coins Now' on the Howey Coins site and you'll be redirected to an SEC page that states: "We created the bogus HoweyCoins.com site as an educational tool to alert investors to possible fraud involving digital assets like crypto-currencies and coin offerings." It even has a white paper [PDF].
Sony

Sony Ends Production Of Physical Vita Games (kotaku.com) 35

Sony is ending physical production of Vita games, news outlet Kotaku reports. Although the hardware manufacturer says digital distribution will continue, this move will mark the end of physical cards for the maligned portable game system, Kotaku added. From a report: Sony's American and European branches "plan to end all Vita GameCard production by close of fiscal year 2018," the company told developers today in a message obtained by Kotaku. The message asks that all Vita product code requests be submitted by June 28, 2018, and that final purchase orders be entered by February 15, 2019. Sony's 2018 fiscal year will end on March 31, 2019.
Businesses

FedEx Sees Blockchain as 'Next Frontier' For Logistics (bloomberg.com) 106

Convinced that blockchain is on the brink of transforming the package-delivery business, FedEx is testing the technology to track large, higher-value cargo. From a report: "We're quite confident that it has big, big implications in supply chain, transportation and logistics," Chief Executive Officer Fred Smith said at a blockchain conference in New York. "It's the next frontier that's going to completely change worldwide supply chains." Blockchain uses computer code to record every step of a transaction and delivery in a permanent digital ledger, providing transparency. The ledger can't be changed unless all involved agree, reducing common disputes over issues like time stamps, payments and damages. FedEx's interest in blockchain and the Internet of Things are part of the company's strategy to improve customer service and fend off competition, Smith said.
Transportation

Scooter-sharing Comes To Washington After Speed Bumps Elsewhere (reuters.com) 37

So many Washingtonians are gliding the final few blocks of their commutes on motorized scooters that a new sharing program cannot keep up with rush-hour demand. Authorities in other big U.S. cities that pioneered the concept are less than thrilled. From a report: [...] The pilot program in Washington, which runs until August, is capped at 400 scooter permits. It has been so popular that there are often no vehicles left for riders seeking to locate the two-wheeled stand-up rides. To guard against problems seen in other cities, Washington riders must agree to a digital contract that spells out rules that prohibit riding on sidewalks, mandate sticking to roadway bike lanes and proper curbing of discarded scooters, LimeBike's Gendron said.
Cellphones

US Appeals Court Rules Border Agents Need Suspicion To Search Cellphones (reason.com) 116

On Thursday, a federal appeals court ruled that U.S. border agents need some sort of reason to believe a traveler has committed a crime before searching their cellphone. Slashdot reader Wrath0fb0b shares an analysis via Reason, written by Fourth Amendment scholar Orin Kerr: Traditionally, searches at the border don't require any suspicion on the theory that the government has a strong sovereign interest in regulating what enters and exits the country. But there is caselaw indicating that some border searches are so invasive that they do require some kind of suspicion. In the new case, Kolsuz (PDF), the Fourth Circuit agrees with the Ninth Circuit that at least some suspicion is required for a forensic search of a cell phone seized at the border. This is important for three reasons. First, the Fourth Circuit requires suspicion for forensic searches of cell phones seized at the border. Second, it clarifies significantly the forensic/manual distinction, which has always been pretty uncertain to me. Third, it leaves open that some suspicion may be required for manual searches, too.

But wait, that's not all. In fact, I don't think it's the most important part of the opinion. The most important part of the opinion comes in a different section, where the Fourth Circuit adds what seems to be a new and important limit on the border search exception: a case-by-case nexus requirement to the government interests that justify the border search exception. Maybe I'm misreading this passage, but it strikes me as doing something quite new and significant. It scrutinizes the border search that occurred to see if the government's cause for searching in this particular case satisfied "a 'nexus' requirement" of showing sufficient connection between the search and "the rationale for the border search exception," requiring a link between the "predicate for the search and the rationale for the border exception." In other words, the Fourth Circuit appears to be requiring the government to identify the border-search-related interest justifying that particular search in order to rely on the border search exception.
"The analysis is interesting throughout, and it would be a fairly large limitation on digital searches conducted at the border, both in requiring some articulable suspicion for digital searches and in the requirement to justify the relationship between the search and the border inspection," writes Wrath0fb0b.
AI

Google's 'Duplex' System Will Identify Itself When Talking To People, Says Google (businessinsider.com) 77

Google's "Duplex" AI system was the most talked about product at Google I/O because it called into question the ethics of an AI that cannot easily be distinguished from a real person's voice. The service lets its voice-based digital assistant make phone calls and write emails for you, causing many to ask if the system should come with some sort of warning to let the other person on the line know they are talking to a computer. According to Business Insider, "a Google spokesperson confirmed [...] that the creators of Duplex will 'make sure the system is appropriately identified' and that they are 'designing this feature with disclosure built-in.'" From the report: Here's the full statement from Google: "We understand and value the discussion around Google Duplex -- as we've said from the beginning, transparency in the technology is important. We are designing this feature with disclosure built-in, and we'll make sure the system is appropriately identified. What we showed at I/O was an early technology demo, and we look forward to incorporating feedback as we develop this into a product."

Google CEO Sundar Pichai preemptively addressed ethics concerns in a blog post that corresponded with the announcement earlier this week, saying: "It's clear that technology can be a positive force and improve the quality of life for billions of people around the world. But it's equally clear that we can't just be wide-eyed about what we create. There are very real and important questions being raised about the impact of technology and the role it will play in our lives. We know the path ahead needs to be navigated carefully and deliberately -- and we feel a deep sense of responsibility to get this right." In addition, several Google insiders have told Business Insider that the software is still in the works, and the final version may not be as realistic (or as impressive) as the demonstration.

Facebook

Facebook Plans To Create Its Own Cryptocurrency: Report (cheddar.com) 90

Facebook is "very serious" about launching its own cryptocurrency, news outlet Cheddar reported Friday. It's not the first time the idea of a Facebook coin has been floated, but it seems more apparent now in wake of Facebook's reshuffled executive structure and newly formed blockchain group. From the report: Facebook started studying blockchain almost a year ago, when a member of its corporate development team, Morgan Beller, began looking at how the social platform could use the emerging technology. At the time, Beller was the only Facebook employee devoted to studying blockchain, the digital and decentralized ledger that underpins cryptocurrencies like Bitcoin and Ethereum. Her work was thrust into the spotlight this week when Facebook announced that the vice president in charge of the Messenger app, David Marcus, would lead a new team to "explore how to best leverage blockchain across Facebook, starting from scratch."
Businesses

Apple Prepares 'Apple Pay' Credit Card To Offset Slowing iPhone Sales (marketwatch.com) 82

An anonymous reader quotes the Wall Street Journal: Apple and Goldman Sachs are preparing to launch a new joint credit card, a move that would deepen the technology giant's push into its customers' wallets and mark the Wall Street firm's first foray into plastic. The planned card would carry the Apple Pay brand and could launch early next year, people familiar with the matter said...

As new iPhone sales growth slows, Apple is focusing on services such as mobile payments, streaming-music subscriptions, and App Store sales. Apple Pay, which generates revenue on each transaction, is a key contributor, but adoption has been slower than executives hoped... Apple could take a larger cut of mobile payments from the card if it is used for purchases, the person said. Currently, when a consumer pays for a purchase using the digital wallet on the iPhone -- regardless of what credit card the customer charges -- Apple receives 0.15% per transaction. Apple could more than double that under the agreement with Goldman, one of the people said.

The deal also reportedly includes having Goldman Sachs offer loans to customers at the Apple Store.

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