DOJ Charges 2 Romanians With Hacking of DC Police Surveillance Cameras

The Justice Department on Thursday unsealed details of its case against two Romanians who allegedly hacked computers tied to Washington, D.C., police surveillance cameras.

Police in Bucharest arrested Mihai Alexandru Isvanca and Eveline Cismaru on December 15. U.S. attorneys have charged them with conspiracy to commit computer and wire fraud.

They allegedly hacked into more than 120 computers tied to Washington police surveillance cameras last January. It was part of an alleged scheme to infect personal computers with ransomware.

Ransomware restricts users from accessing their own computers and demands a payment to the ramsomware operator to unlock it.

The Justice Department said the investigation was of the highest priority because the alleged hacking of the surveillance camera computers came just weeks before the presidential inauguration of Donald Trump.

However, it says there is no evidence anyone’s personal security was threatened or harmed.

If tried in the U.S. and convicted, the Romanian defendants could face up to 20 years in prison.

With Lineup Widening, Apple Depends Less on iPhone X

In years past, demand for Apple Inc.’s latest flagship phone was critical to the company’s results over the holiday shopping quarter. That dynamic might be changing, however, as Apple’s widening lineup of devices and services more than makes up for any tepidness in demand this quarter for its lead product, the $999 iPhone X.

On Tuesday, Apple’s stock fell 2.5 percent to $170.57 after Taiwan’s Economic Daily and several analysts suggested iPhone X sales in the fiscal first quarter would be 30 million units, 20 million fewer than initially planned by the company.

The cut in the forecast was not confirmed, and the stock regained ground Thursday, hitting $171.82 by midday. The mean revenue estimate for the holiday quarter among 30 analysts remains at $86.2 billion, near the high end of Apple’s forecast of $84 billion to $87 billion.

Apple declined to comment.

Part of the support for Apple may reflect a change in its business strategy.

Releasing two new models and keeping older ones have made

Apple less dependent on its flagship product. Apple shareholder Ross Gerber, chief executive of Gerber Kawasaki Wealth and

Investment Management in Santa Monica, California, said the higher price and better margins on the iPhone X would reduce fears of a sales decline.

Eye on combined sales

“We know that Apple’s strategy was different this quarter by releasing two phones, the iPhone 8 and the iPhone X, and I think combined sales will be in line with what people expect,” Gerber said.

Apple also has fattened its portfolio of accessories and other devices, from its AirPods wireless headphones to a new Apple Watch with cellular data features.

While none is a runaway hit, collectively they are an important contributor, with Apple’s “other products” segment growing 16 percent to $12.8 billion last year. Customers who buy those add-ons are also likely to buy services from the App Store and Apple Music, part of Apple’s services segment, which grew 23 percent to $29.9 billion last year.

“Ultimately, it will be this multidevice ownership” that will generate further revenue, said Carolina Milanesi, an analyst with Creative Strategies.

IPhone X sales still matter. Each unit generates nearly twice the revenue of an iPhone 7 and contains technologies like facial recognition that burnish Apple’s brand.

Bob O’Donnell of TECHnalysis Research said “hit products” still represent “an enormous amount of the company’s overall value.”

“Will it take hold in the mainstream? That’s the question that still remains,” he said.

Military Moves Toward Autonomous Aircraft

When it comes to autonomous vehicles, putting them in the relatively open skies may be easier than putting them on crowded roads. VOA’s Kevin Enochs reports on how one branch of the military is investigating the use of autonomous helicopters.

Vietnam Unveils 10,000-strong Cyberunit to Combat ‘Wrong Views’

Vietnam has unveiled a new, 10,000-strong military cyberwarfare unit to counter “wrong” views on the Internet, media reported, amid a widening crackdown on critics of the one-party state.

The cyber unit, named Force 47, is already in operation in several sectors, Tuoi Tre newspaper quoted Lieutenant General Nguyen Trong Nghia, deputy head of the military’s political department, as saying at a conference of the Central Propaganda Department on Monday in the commercial hub of Ho Chi Minh City.

“In every hour, minute and second we must be ready to fight proactively against the wrong views,” the paper quoted the general as saying.

Communist-ruled Vietnam has stepped up attempts to tame the internet, calling for closer watch over social networks and for the removal of content that it deems offensive, but there has been little sign of it silencing criticism when the companies providing the platforms are global.

Its neighbor China, in contrast, allows only local internet companies operating under strict rules.

The number of staff compares with the 6,000 reportedly employed by North Korea. However, the general’s comments suggest its force may be focused largely on domestic internet users, whereas North Korea is internationally focused because the internet is not available to the public at large.

‘Bad and dangerous content’

In August, Vietnam’s president said the country needed to pay greater attention to controlling “news sites and blogs with bad and dangerous content.”

Vietnam, one of the top 10 countries for Facebook users by numbers, has also drafted an internet security bill asking for local placement of Facebook and Google servers, but the bill has been the subject of heated debate at the National Assembly and is still pending assembly approval.

Cybersecurity firm FireEye Inc. said Vietnam had “built up considerable cyberespionage capabilities in a region with relatively weak defenses.”

“Vietnam is certainly not alone. FireEye has observed a proliferation in offensive capabilities. … This proliferation has implications for many parties, including governments, journalists, activists and even multinational firms,” a spokesman at FireEye, who requested anonymity, told Reuters.

“Cyberespionage is increasingly attractive to nation states, in part because it can provide access to a significant amount of information with a modest investment, plausible deniability and limited risk,” he added.

Vietnam denies such charges.

Vietnam has in recent months stepped up measures to silence critics. A court last month jailed a blogger for seven years for “conducting propaganda against the state.”

In a separate, similar case last month, a court upheld a 10-year jail sentence for a prominent blogger.

Self-repairing Glass Could End Cracked Cellphones

There is an entire industry of add-ons that are designed to keep your cellphone screen from cracking. And yet broken screens are the main reason cellphones fail. But one Japanese researcher may have solved the problem. VOA’s Kevin Enochs reports.

Bitcoin’s Roller-coaster Ride May Get Wilder

What’s a bitcoin worth? Lately nobody knows for sure, but after a wild ride Friday, it’s worth a good deal less than it was Thursday.

After losses over the last few days, the digital currency fell as much as 30 percent overnight in Asia, and the action became so frenzied that the website Coinbase suspended trading. It later made up much of that ground, and slumped 9.5 percent to $14,042 Friday, according to the tracking site CoinDesk.

Experts are warning that bitcoin is a bubble about to burst, but things might get crazier before it does: A lot of people have heard of bitcoin by now, but very few people own it.

“Bubbles burst when the last buyers are in,” said Brett Ewing, chief market strategist for First Franklin. “Who are the last buyers? The general public, unfortunately.”

1,000 people own 40 percent

Ewing said 40 percent of bitcoin belongs to just 1,000 people, and hedge funds and other major investors are going to start buying it soon. But those funds may buy bitcoin and also protect themselves by placing bets that it will fall. Retail investors may just buy it only to see it fall.

“I think investors should approach it with caution and I think many people will dive into it not understanding what it is,” he said.

As bitcoin skyrocketed this month, the volume of trading was unprecedented as investors hoping to catch a ride up piled in. Prices have risen so fast, the fall on Friday returned the price of bitcoin only to where it was trading two weeks ago.

From tea to blockchain overnight

The volatility has created a circuslike atmosphere. Some companies that have added the word “bitcoin” or related terms to their names to get in on the action. The craziest thing is, it’s worked.

Long Island Iced Tea Corp. until this week had been known for its peach-, raspberry-, guava-, lemon- and mango-flavored drinks. Then, on Thursday, the company announced a radical rebranding. It’s changing its name to Long Blockchain Corp., shifting its primary focus from iced tea to “the exploration of and investment in opportunities that leverage the benefits of blockchain technology.”

Blockchain is a ledger where transactions of digital currencies, like bitcoin, are recorded.

Shares in Long Island Iced Tea soared 200 percent in one day.

The Hicksville, New York, company did what investors are doing, hitching a ride on a currency that raced from less than $10,000 at the end of November to almost $20,000 on Sunday. And it cost less than $1,000 at the beginning of the year.

Crash every three months

The rise of price of bitcoin, which is still difficult to use if you actually want to buy something, has led to heated speculation about when the bubble might burst.

The currency has been, if nothing else, highly elastic, bouncing back every time it crashes, which occurs about once every quarter.

It fell 11.5 percent over two days in early December and 21.5 percent over five days in November.

Curiosity has now driven bitcoin to the futures market, where investors bet on which direction it will go.

Bitcoin futures started trading on two major exchanges, the Cboe and CME, this month. Those futures fell about 8 percent Friday.

Investor beware

If people get burned, it won’t be because they were not warned.

The Securities and Exchange Commission put out a statement last week warning investors to be careful with bitcoin and other digital currencies. The Commodities Futures Trading Commission has proposed regulating bitcoin like a commodity, similar to gold or oil.

Financial Industry Regulatory Authority, a financial watchdog, issued a similar warning recently.

Rocket’s Arc Across California Sky Stops Traffic

A reused SpaceX rocket carried 10 satellites into orbit from California on Friday, leaving behind a trail of mystery and wonder as it soared into space.

The Falcon 9 booster lifted off from coastal Vandenberg Air Force Base, carrying the latest batch of satellites for Iridium Communications.

The launch in the setting sun created a shining, billowing streak that was widely seen throughout Southern California and as far away as Phoenix.

Calls came in to TV stations as far afield as San Diego, more than 200 miles south of the launch site.

Cars stopped on freeways in Los Angeles so drivers and passengers could take pictures and video.

The Los Angeles Fire Department issued an advisory that the “mysterious light in the sky” was from the rocket launch.

Jimmy Golen, a sports writer for The Associated Press in Boston who was in Southern California for the holidays, said he and other tourists saw the long, glowing contrail while touring Warner Bros. studio in the Los Angeles suburb of Burbank.

“People were wondering if it had something to do with movies, or TV or a UFO,” he said. “It was very cool.”

The same rocket carried Iridium satellites into orbit in June. That time, the first stage landed on a floating platform in the Pacific Ocean. This time, the rocket was allowed to plunge into the sea.

It was the 18th and final launch of 2017 for SpaceX, which has contracted to replace Iridium’s system with 75 updated satellites. SpaceX has made four launches and expects to make several more to complete the job by mid-2018.

The satellites also carry payloads for global real-time aircraft tracking and a ship-tracking service.

Researchers Date Parts of Jesus’ Tomb to Time of Constantine

Over the next month, Christians of all kinds will celebrate the birth of Jesus. The world has been wondering about the reality of his existence, his life, death, and the question of his divinity for thousands of years. But the place considered to be his tomb has been dated to the time he is believed to have walked the earth. VOA’s Kevin Enochs reports.

Lawsuit: Apple Slowed iPhones, Forcing Owners to Buy New Ones

IPhone owners from several states sued Apple Inc. for not disclosing sooner that it issued software updates deliberately slowing older-model phones so aging batteries lasted longer, saying Apple’s silence led them to wrongly conclude that their only option was to buy newer, pricier iPhones.

The allegations were in a lawsuit filed Thursday in Chicago federal court on behalf of five iPhone owners from Illinois, Ohio, Indiana and North Carolina, all of whom say they never would have bought new iPhones had Apple told them that simply replacing the batteries would have sped up their old ones. The suit alleges Apple violated consumer fraud laws.

A similar lawsuit was filed Thursday in Los Angeles. Both suits came a day after Apple confirmed what high-tech sleuths outside the company already observed: The company had deployed software to slow some phones. Apple said it was intended as a fix to deal with degraded lithium-ion batteries that could otherwise suddenly die.

“Our goal is to deliver the best experience for customers, which includes overall performance and prolonging the life of their devices,” an Apple statement said. It said it released the fix for iPhone 6, iPhone 6s and iPhone SE and later extended it to iPhone 7. Apple didn’t respond to a message Friday seeking comment.

The Chicago lawsuit suggests Apple’s motive may have been sinister, though it offers no evidence in the filing.

“Apple’s decision to purposefully … throttle down these devices,” it says, “was undertaken to fraudulently induce consumers to purchase the latest” iPhone.

Plaintiff Kirk Pedelty, of North Carolina, contacted Apple as his frustration grew. However, the lawsuit says: “Nobody from Apple customer support suggested that he replace his battery to improve the performance of his iPhone. … Frustrated by slowdowns and intermittent shutdowns of his iPhone 7, Pedelty purchased an iPhone 8.”

The lawsuit seeks class-action status to represent thousands of iPhone owners nationwide.

Creative Strategies analyst Carolina Milanesi said she believes the tech giant was seeking to help consumers extend the lives of the older phones — though it would have been better to disclose what it was doing and why right away.

“Even if you are trying to do something good for your customers, it is going to be perceived as you are sneaking around behind their backs if you don’t tell them about it first,” she said.

Hard-line Islamist Group in Indonesia to Boycott Facebook

Indonesia’s foremost hard-line Islamist group, the Islamic Defenders Front (FPI), has announced a Christmas Day boycott of Facebook and the Whatsapp instant messaging service, as well as a live protest at Facebook’s Indonesia office in the near future.

They say Facebook — like other major social media outlets such as Twitter and Instagram — has blocked several FPI accounts, and that Facebook allows pro-LGBT and anti-Sharia pages to stay on its site. The group also plans to protest at Indonesia’s Ministry of Communications and Information in the new year.

While the boycott is unlikely to make a major impact on Facebook, it underscores that FPI’s official accounts are blocked on many major platforms, leading some to speculate the move was at the national government’s request.

That’s unlikely, said Ross Tapsell, who researches media in Southeast Asia at Australian National University.

“There is a misperception, both within FPI and outside of it, that the Indonesian government calls up social media companies like Facebook and Twitter and asks for certain pages to be taken down and these companies simply comply,” he said. “That isn’t how this works. Social media companies have their own codes of conduct and it is through fairly extensive and rigorous internal debates that these decisions are ultimately made.”

He suggested that Facebook likely shut down FPI’s pages, which have in the past engaged in hate speech and advocated for violence, for violating its terms and policies.

This is an ambiguous moment for the FPI, which has risen rapidly from a fringe group, founded in 1999 after the fall of Suharto, to a mainstream organization that swayed the Jakarta gubernatorial election.

In late 2016, the FPI organized mass protests in Jakarta against its Chinese Christian governor, Basuki Tjahaja Purnama, for allegedly insulting the Quran. The eventually triumphant candidate, Governor Anies Baswedan, openly allied with the FPI during his campaign.

Crackdown on Islamist groups

“On the issue of internal regulation, Twitter and Facebook have involved many social organizations from Indonesia to become their trusted flaggers [of problematic content], not only the government,” said Damar Juniarto, a coordinator of the Southeast Asia Freedom of Expression Network. He suggested the decision to block FPI happened after numerous complaints from different sources.

“Various FPI members have posted videos of violence, bullying and harassing people who criticized them or their leader in 2017, and these videos would have been given as evidence for the need to ban them on Facebook,” Tapsell said.

In June, a Chinese-Indian teenager in Jakarta was physically abused by FPI members for posting memes about its leader.

Facebook and Twitter could not be immediately reached for comment.

Beyond social media, other Indonesian hard-liners have been the target of crackdowns this year. In July, the government banned the international Islamist organization Hizbut Tahrir because it threatened the nation’s pluralist state ideology, known as Pancasila. Hizbut Tahrir advocates for a global Islamic caliphate.

​Vague leadership

Today, FPI’s leader, Habib Rizieq Shihab, is a fugitive in Saudi Arabia; he was charged shortly after the Jakarta election under the nation’s pornography law for allegedly texting explicit photos with a woman who is not his wife. It is a far cry from late 2016, when he enthralled hundreds of thousands of Muslims who brought Jakarta to a grinding halt to attend the “peaceful actions” that Rizieq and FPI organized against the governor.

FPI also has had trouble expanding its brand beyond Java, like in West Kalimantan province in Borneo, where the group failed to hold a similar rally last summer.

Support for FPI increased from 15.6 percent to 23.6 percent between June 2016 and August 2017, according to a recent report from researchers Marcus Mietzner, Burhanuddin Muhtadi and Rizka Halida.

As the year draws to a close, FPI’s agenda is once more trained on local and domestic actions, where it started as Indonesia’s unofficial moral police. For instance, it has promised to raid establishments that make their staff wear Christmas hats. It remains to be seen whether FPI will return to influence the national political discourse in the new year, or whether the group’s stature has peaked.