Cybersecurity Firm: US Senate in Russian Hackers’ Crosshairs

The same Russian government-aligned hackers who penetrated the Democratic Party have spent the past few months laying the groundwork for an espionage campaign against the U.S. Senate, a cybersecurity firm said Friday.

The revelation suggests the group often nicknamed Fancy Bear, whose hacking campaign scrambled the 2016 U.S. electoral contest, is still busy trying to gather the emails of America’s political elite.

“They’re still very active — in making preparations at least — to influence public opinion again,” said Feike Hacquebord, a security researcher at Trend Micro Inc., which published the report . “They are looking for information they might leak later.”

The Senate Sergeant at Arms office, which is responsible for the upper house’s security, declined to comment.

Hacquebord said he based his report on the discovery of a clutch of suspicious-looking websites dressed up to look like the U.S. Senate’s internal email system. He then cross-referenced digital fingerprints associated with those sites to ones used almost exclusively by Fancy Bear, which his Tokyo-based firm dubs “Pawn Storm.”

Trend Micro previously drew international attention when it used an identical technique to uncover a set of decoy websites apparently set up to harvest emails from the French presidential candidate Emmanuel Macron’s campaign in April 2017. The sites’ discovery was followed two months later by a still-unexplained publication of private emails from several Macron staffers in the final days of the race.

Hacquebord said the rogue Senate sites — which were set up in June and September of 2017 — matched their French counterparts.

“That is exactly the way they attacked the Macron campaign in France,” he said.

Attribution is extremely tricky in the world of cybersecurity, where hackers routinely use misdirection and red herrings to fool their adversaries. But Tend Micro, which has followed Fancy Bear for years, said there could be no doubt.

“We are 100 percent sure that it can attributed to the Pawn Storm group,” said Rik Ferguson, one of the Hacquebord’s colleagues.

Like many cybersecurity companies, Trend Micro refuses to speculate publicly on who is behind such groups, referring to Pawn Storm only as having “Russia-related interests.” But the U.S. intelligence community alleges that Russia’s military intelligence service pulls the hackers’ strings and a months-long Associated Press investigation into the group, drawing on a vast database of targets supplied by the cybersecurity firm Secureworks, has determined that the group is closely attuned to the Kremlin’s objectives.

If Fancy Bear has targeted the Senate over the past few months, it wouldn’t be the first time. An AP analysis of Secureworks’ list shows that several staffers there were targeted between 2015 and 2016.

Among them: Robert Zarate, now the foreign policy adviser to Florida Senator Marco Rubio; Josh Holmes, a former chief of staff to Senate Majority Leader Mitch McConnell who now runs a Washington consultancy; and Jason Thielman, the chief of staff to Montana Senator Steve Daines. A Congressional researcher specializing in national security issues was also targeted.

Fancy Bear’s interests aren’t limited to U.S. politics; the group also appears to have the Olympics in mind.

Trend Micro’s report said the group had set up infrastructure aimed at collecting emails from a series of Olympic winter sports federations, including the International Ski Federation, the International Ice Hockey Federation, the International Bobsleigh & Skeleton Federation, the International Luge Federation and the International Biathlon Union.

The targeting of Olympic groups comes as relations between Russia and the International Olympic Committee are particularly fraught. Russian athletes are being forced to compete under a neutral flag in the upcoming Pyeongchang Olympics following an extraordinary doping scandal that has seen 43 athletes and several Russian officials banned for life.

Amid speculation that Russia could retaliate by orchestrating the leak of prominent Olympic officials’ emails, cybersecurity firms including McAfee and ThreatConnect have picked up on signs that state-backed hackers are making moves against winter sports staff and anti-doping officials.

On Wednesday, a group that has brazenly adopted the Fancy Bear nickname began publishing what appeared to be Olympics and doping-related emails from between September 2016 and March 2017. The contents were largely unremarkable but their publication was covered extensively by Russian state media and some read the leak as a warning to Olympic officials not to press Moscow too hard over the doping scandal.

Whether any Senate emails could be published in such a way isn’t clear. Previous warnings that German lawmakers’ correspondence might be leaked by Fancy Bear ahead of last year’s election there appear to have come to nothing.

On the other hand, the group has previously dumped at least one U.S. legislator’s correspondence onto the web.

One of the targets on Secureworks’ list was Colorado State Senator Andy Kerr, who said thousands of his emails were posted to an obscure section of the website DCLeaks — a web portal better known for publishing emails belonging to retired Gen. Colin Powell and various members of Hillary Clinton’s campaign — in late 2016.

Kerr said he was still bewildered as to why he was targeted. He said while he supported transparency, “there should be some process and some system to it.

“It shouldn’t be up to a foreign government or some hacker to say what gets released and what shouldn’t.”

Facebook Says Its Putting Friends, Family First

Facebook on Thursday announced a major update that will put friends and family above pages or celebrities in a user’s news feed — and likely result in people spending less time on the leading social network.

The change to the way Facebook ranks posts will put more weight on social interactions and relationships, according to News Feed product manager John Hegeman.

“This is a big change,” Hegeman said.

People more important

“People will actually spend less time on Facebook, but we feel good about that because it will make the time they do spend more valuable, and be good for our business in the end.”

For example, a family video clip posted by a spouse will be deemed more worthy of attention than a snippet from a star or favorite restaurant.

“We think people interaction is more important than passively consuming content,” Hegeman said. “This will be one of the more important updates that we have made.”

Facebook co-founder and chief Mark Zuckerberg has said that bringing people together and strengthening communities in the real world are priorities.

Update coming soon

The news feed ranking update, which is set to roll out globally in the coming weeks, is expected to support that goal.

“As we roll this out, you’ll see less public content like posts from businesses, brands, and media,” Zuckerberg said in a post at his Facebook page.

“And the public content you see more will be held to the same standard — it should encourage meaningful interactions between people.”

Battling fake news

Google, Twitter and Facebook have come under fire for allowing the spread of bogus news — some of which was directed by Russia — ahead of the 2016 US election and in other countries.

Facebook has introduced a series of changes intended to address the problem.

“We are doing a ton of work to reduce the frequency of bad content on Facebook,” Hegeman said.

“This update is more about amplifying the things people value.”

He cited academic research indicating that interacting with loved ones is crucial to a person’s wellbeing, while reading news articles or watching shared videos may not be.

“There is really no silver bullet here to determine what is most meaningful, but we are trying to mine the signals to get the best representation that we can,” Hegeman said.

Fix Facebook

Known for setting annual personal goals ranging from killing his own food to learning Mandarin, Zuckerberg’s stated mission for this year is to “fix” the social network, including by targeting abuse and hate, and making sure visiting Facebook is time well spent.

“I’m changing the goal I give our product teams from focusing on helping you find relevant content to helping you have more meaningful social interactions,” Zuckerberg said Thursday.

CTA: Countries With Entrepreneur-friendly Policies Boost Innovation, Economies

More than 60 countries are represented at CES, the giant consumer electronics show taking place this week in Las Vegas, and the large international presence is a testament to the interest worldwide in entrepreneurship and technology.

But while many governments say they support a homegrown innovation economy, policy decisions may hamper entrepreneurial growth, according to a report out this week by the Consumer Technology Association (CTA), which puts on the marquee Las Vegas technology show.

Innovation factors

The report looked at 12 factors to determine whether a country is an “innovation champion.” They include standard indicators like a country’s tax policy, the education level of its workforce, and broadband access and speeds.

Overall, Finland had the highest ranking, followed by the U.S., Canada, other European nations, Australia and New Zealand.

India, Morocco and Colombia were dubbed “modest innovators,” and they were among the lowest scoring nations.

A different set of countries emerged as leaders, however, when CTA looked at some of the more contentious areas of the tech economy, such as drones, ridesharing, self-driving cars and short-term home rentals such as Airbnb.

Ridesharing leaders

For example, when it comes to ridesharing, the report found that Panama, Peru, Poland, Rwanda and Mexico were among countries that allow ridesharing to operate most freely.

Likewise, for short-term home rentals such as Airbnb, the report gave its highest marks to Chile, Mexico, Nigeria and Peru among other countries.

The best countries for drone testing and deployment are Australia, Finland, Portugal, Singapore and Sweden.

In an interview with VOA, Gary Shapiro, the chief executive of CTA, said that countries were evaluated “from a uniquely American perspective.” The goal, he said, is to identify which countries have the best policies for innovators, and then encourage other countries to create similar environments.

French takeover

At Eureka Park, the exhibit area that’s home to about 800 early stage startups at CES, about one-third are French. They occupy row after row of the show floor, all under signs reading “La French Tech.”

Senegal brought two IT companies that won a competition for their work for the government.

“Right now we hope to meet a lot of companies here to check what we can do for our country,” said Cheikh Bakhoum, with the Senegal’s State Informatics Agency.

Hrvoje Bujas from Croatia said he came hoping to meet investors, but he switched his goals once he arrived at CES.

“I want to get some feedback from our potential users, women that want to get pregnant,” he said.

His second goal? “To get some space in media.”

 

Amazon Looks to Build on 1st Season of NFL Streaming

Amazon had a mostly successful debut into live streaming of major sports events with increased audience and an improved viewing experience in its first season showing NFL games.

The question looking ahead is how aggressively will Amazon be in the sports streaming landscape?

“It’s too soon to say,” said Jim DeLorenzo, the head of Amazon Sports. “We’re just in the early stages here. We were definitely pleased with the way things played out. It was great to partner with the NFL on this and we were really happy with how our customers reacted to it. But it’s too soon to say this impacts our strategy going forward.”

Amazon already has smaller deals with the ATP Tour to air last year’s Next Gen ATP Finals and the rights to show some men’s tennis tournaments to customers in the United Kingdom and Ireland, as well as an upcoming deal to show beach volleyball events.

But the NFL is the biggest endeavor Amazon has made so far after paying $50 million for the rights to stream 10 Thursday night games and an additional one on Christmas.

Amazon built on the audience Twitter had in 2016 in the first year of streaming on Thursday nights, with the averaging per minute audience for the 11 games hitting 310,000, a 17 percent increase from Twitter’s numbers. 

On a per capita basis, the biggest audience was in the District of Columbia, followed by Washington, Colorado, Oregon and Utah. Prime members in Montana, Wyoming, South Dakota, North Dakota and North Carolina watched for the longest amount of time.

Viewers who are already used to watching movies and scripted shows on Amazon’s various platforms stayed longer on the NFL, with the average viewer watching for 63 minutes.

The feed was usually much cleaner than on Twitter or some other streaming services and was delivered even faster than some cable systems as opposed to the usual delay for online streaming.

“This was really our first step into distributing live sporting events at scale on a global basis,” DeLorenzo said. “Of course there was learning. Because we’re so early on in that process of distributing this kind of content to our customers, there are a number of things we can look at along the way.”

Even though television audiences for the NFL dropped for the second straight year as people cut the cord and drop cable or satellite service, the streaming audience on Amazon was still a small fraction compared to the more than 10 million viewers who watched on average the Thursday night games on NBC, CBS or the NFL Network. CBS and NBC pay about $45 million per game for the rights to their Thursday night broadcasts.

The NFL is expected to decide soon its plans for Thursday night games next season, but is expected to once again split the package between a broadcast and streaming partner.

Amazon offered alternate language feeds for the broadcast to cater to some of the fans from more 220 countries who tuned into the games, with feeds in Spanish, Portuguese and “U.K. English” for those less familiar with the American version of football.

“That was a fun component of what we were doing and we were glad to see customers reacted well to that as well,” DeLorenzo said.

South Korea: Move to Ban Cryptocurrency Trading Not Finalized

The South Korean government Thursday said it plans to ban cryptocurrency trading, sending bitcoin prices plummeting and throwing the virtual coin market into turmoil as the nation’s police and tax authorities raided local exchanges on alleged tax evasion.

But later Thursday, South Korea’s presidential office said the ban on the country’s virtual coin exchanges had not yet been finalized.

“Justice Minister Park’s comments related to shutdown of cryptocurrency exchanges is one of the measures prepared by the Ministry of Justice, but it’s not a measure that has been finalized,” a spokesman told reporters in a text message.

Earlier on Thursday, the minister, Park Sang-ki, said the government was preparing a bill to ban trading of the virtual currency on domestic exchanges.

“There are great concerns regarding virtual currencies, and justice ministry is basically preparing a bill to ban cryptocurrency trading through exchanges,” said Park at a press conference, according to the ministry’s press office.

The clampdown in South Korea, a crucial source of global demand for cryptocurrency, came as policymakers around the world struggled to regulate an asset whose value has skyrocketed over the last year.

​Cryptocurrency selloff

The government’s tough stance triggered a selloff of the cryptocurrency on both local and offshore exchanges.

The local price of bitcoin plunged as much as 21 percent in midday trade to 18.3 million won ($17,064.53) after the minister’s comments. It still trades around a 30 percent premium compared to other countries.

Bitcoin was down more than 10 percent on the Luxembourg-based Bitstamp at $13,199, after earlier dropping as low as $13,120, its weakest since Jan. 2.

South Korea’s cryptocurrency-related shares were also hammered. Vidente and Omnitel, which are stakeholders of Bithumb, skidded by the daily trading limit of 30 percent each.

Herd behavior a concern

Park Nok-sun, a cryptocurrency analyst at NH Investment & Securities, said the herd behavior in South Korea’s virtual coin market has raised concerns.

Indeed, bitcoin’s 1,500 percent surge last year has stoked huge demand for cryptocurency in South Korea, drawing college students to housewives and sparking worries of a gambling addiction.

“Virtual coins trade at a hefty premium in South Korea, and that is herd behavior showing how strong demand is here,” Park said. “Some officials are pushing for stronger and stronger regulations because they only see more (investors) jumping in, not out.”

Police raids

There are more than a dozen cryptocurrency exchanges in South Korea, according to Korea Blockchain Industry Association.

The proliferation of the virtual currency and the accompanying trading frenzy have raised eyebrows among regulators globally, though many central banks have refrained from supervising cryptocurrencies themselves.

The news on South Korea’s proposed ban came as authorities tightened their grip on some of the cryptocurrency exchanges.

The nation’s largest cryptocurrency exchanges like Coinone and Bithumb were raided by police and tax agencies this week for alleged tax evasion. The raids follow moves by the finance ministry to identify ways to tax the market that has become as big as the nation’s small-cap Kosdaq index in terms of daily trading volume.

Cashing out

Some investors appeared to have taken preemptive action.

“I have already cashed most of mine (virtual coins) as I was aware that something was coming up in a couple of days,” said Eoh Kyung-hoon, a 23-year old investor.

Bitcoin sank on Monday after website CoinMarketCap removed prices from South Korean exchanges, because coins were trading at a premium of about 30 percent in Asia’s fourth largest economy. That created confusion and triggered a broad selloff among investors.

An official at Coinone told Reuters that a few officials from the National Tax Service raided the company’s office this week.

“Local police also have been investigating our company since last year, they think what we do is gambling,” the official, who spoke on condition of anonymity, said and added that Coinone was cooperating with the investigation.

Bithumb, the second largest virtual currency operator in South Korea, was also raided by the tax authorities on Wednesday.

“We were asked by the tax officials to disclose paperwork and things yesterday,” an official at Bithumb said, requesting anonymity due to the sensitivity of the issue.

The nation’s tax office and police declined to confirm whether they raided the local exchanges.

South Korean financial authorities had previously said they are inspecting six local banks that offer virtual currency accounts to institutions, amid concerns the increasing use of such assets could lead to a surge in crime.

Maine’s Senators Back Restoring Net Neutrality

Maine’s U.S. senators say they are getting behind an effort to restore net neutrality rules.

Republican Sen. Susan Collins and independent Sen. Angus King say they support a bipartisan Congressional Review Act resolution to bring back net neutrality, which was repealed by the Federal Communications Commission last month.

Collins and King say in a joint statement that protections under net neutrality have allowed businesses in Maine and elsewhere to have equal access to the Internet so they can “innovate, grow and compete in the global economy.”

Collins and King wrote to FCC Chairman Ajit Pai in December to call on him to cancel plans to repeal net neutrality. Pai has said the move eliminates regulations that are unnecessary. It’s an Obama-era rule that guaranteed equal access to the internet.

Companion Robot Aims to Fight Isolation Among Elderly

People around the world are living longer, and how they grow old is changing. The World Health Organization finds the number of older adults living alone is dramatically increasing, and fewer multi-generational families are living together. To help the elderly with loneliness, social isolation and depression, an Israeli company, Intuition Robotics, created a robot called ElliQ designed for older adults.

Featured at the Consumer Electronic Show in Las Vegas, ElliQ is named in part after the Norse goddess that represents old age. Described as a “she” by her founder, ElliQ is a tabletop robot that lights up when she hears her name.

ElliQ does not have a face, arms or legs, but it talks and tries to keep her human companion active and engaged.

“You’ve been sitting all day. You’re not on your track to completing your goal. You should go for a walk,” the robot said.

The robot does mimic head movements to connect with the user.

“She can look down she can look up, she can get excited,” explained Dor Skuler, co-founder of Intuition Robotics.

He described ElliQ as a proactive social companion. She takes calls, reads emails and plays music for her human companion.

Skuler said ElliQ aims to solve a growing problem in many countries around the world because of a global demographic change.

“In China through the one child policy, we’re seeing a huge aging of the population.” Skuler added, “and Europe has a negative birth rate for a few decades already, so this is by far a global problem.”

The voice-activated robot comes with a touch-screen tablet through which the user can interact and access the web and social media assisted by ElliQ.

Skuler said this robot is not supposed to replace humans, rather, it allows older adults to “stay sharp, keep connected, active and engaged” with their environment to fend off feelings of isolation and being depressed. 

The price of the companion robot is still being determined, but Skuler said it will be on the high end of consumer electronics.

ElliQ will be tested in the homes of the elderly in the United States and will be commercially available sometime in 2018. 

Twitter, Snapchat Tie Up with Fox to Provide Coverage of FIFA World Cup

Twenty-First Century Fox’s Fox Sports is partnering with Twitter to stream a live show and Snap Inc’s Snapchat to showcase stories with match-day highlights on the FIFA World Cup soccer tournament to be hosted in Russia later this year.

Fox Sports would produce the show, which will be streamed from Moscow’s Red Square on each match day and provide previews, recaps and near real-time video highlights for each game, the company said.

Fox said the coverage of the tournament, taking place from June 14 to July 15, will be available in the United States and can be seen using the @FOXSports and @FOXSoccer Twitter handles.

Fox Sports will also produce magazine-like editions of content for Snapchat’s mobile-first audience, called Publisher Stories.

The Publisher Stories on Snapchat will record the day-by-day highlights of the monthlong tournament through recaps, previews and features produced specifically for Snap.

Snapchat will also produce FIFA World Cup “Our Stories,” featuring video highlights of goals and other key moments provided by Fox Sports.

Livestreaming has been one of Twitter’s biggest focus areas since last year as it seeks to attract new users.

The company had previously signed a multi-year deal with the U.S. National Football League to livestream pre-game coverage as well as a 30-minute show.

Snapchat has also done something similar by previously partnering with Discovery Communications Inc’s Eurosport for a European, multi-language deal that will see Winter Olympics content held this year as part of Snapchat’s “stories” feature.

FBI Chief Calls Unbreakable Encryption ‘Urgent Public Safety Issue’

The inability of law enforcement authorities to access data from electronic devices due to powerful encryption is an “urgent public safety issue,” FBI Director Christopher Wray said on Tuesday as he sought to renew a contentious debate over privacy and security.

The Federal Bureau of Investigation was unable to access data from nearly 7,800 devices in the fiscal year that ended Sept. 30 with technical tools despite possessing proper legal authority to pry them open, a growing figure that impacts every area of the agency’s work, Wray said during a speech at a cyber security conference in New York.

The FBI has been unable to access data in more than half of the devices that it tried to unlock due to encryption, Wray added.

“This is an urgent public safety issue,” Wray added, while saying that a solution is “not so clear cut.”

Technology companies and many digital security experts have said that the FBI’s attempts to require that devices allow investigators a way to access a criminal suspect’s cellphone would harm internet security and empower malicious hackers.

U.S. lawmakers, meanwhile, have expressed little interest in pursuing legislation to require companies to create products whose contents are accessible to authorities who obtain a warrant.

Wray’s comments at the International Conference on Cyber Security were his most extensive yet as FBI director about the so-called Going Dark problem, which his agency and local law enforcement authorities for years have said bedevils countless investigations. Wray took over as FBI chief in August.

The FBI supports strong encryption and information security broadly, Wray said, but described the current status quo as untenable.

“We face an enormous and increasing number of cases that rely heavily, if not exclusively, on electronic evidence,” Wray told an audience of FBI agents, international law enforcement representatives and private sector cyber professionals.

A solution requires “significant innovation,” Wray said, “but I just do not buy the claim that it is impossible.”

Wray’s remarks echoed those of his predecessor, James Comey, who before being fired by President Donald Trump in May frequently spoke about the dangers of unbreakable encryption.

Tech companies and many cyber security experts have said that any measure ensuring that law enforcement authorities are able to access data from encrypted products would weaken cyber security for everyone.

U.S. officials have said that default encryption settings on cellphones and other devices hinder their ability to collect evidence needed to pursue criminals.

The matter came to a head in 2016 when the Justice Department tried unsuccessfully to force Apple to break into an iPhone used by a gunman during a mass shooting in San Bernardino, California.

The Trump administration at times has taken a tougher stance on the issue than former President Barack Obama’s administration.

U.S. Deputy Attorney General Rod Rosenstein in October chastised technology companies for building strongly encrypted products, suggesting Silicon Valley is more willing to comply with foreign government demands for data than those made by their home country.

Democrats Vow to Force Vote on Net Neutrality, Make It a Campaign Issue

U.S. Senate Democrats said on Tuesday they will force a vote later this year on the U.S. Federal Communications Commission’s reversal of landmark Obama administration net neutrality rules and will try to make it a key issue in the 2018 congressional elections.

Senate Democratic Leader Chuck Schumer said the issue will be a major motivating factor for young voters the party is courting.

“We’re going to let everyone know where we stand and they stand,” Schumer said at a Capitol Hill news conference in Washington.

The FCC voted in December along party lines to reverse rules introduced in 2015 that barred internet service providers from blocking or throttling traffic, or offering paid fast lanes. A group of state attorneys general immediately vowed to sue.

A trade group representing major tech companies including Facebook, Alphabet and Amazon.com said last week it will back legal challenges to the reversal.

The vote in December marked a victory for AT&T, Comcast and Verizon Communications and hands them power over what content consumers can access over the internet. It marked the biggest win for FCC Chairman Ajit Pai in his sweeping effort to undo many telecommunications regulations.

Senate Democrats on Tuesday called the FCC decision “un-American” and an “all-out assault on consumers.”

Senate Majority Leader Mitch McConnell, a Republican, backs the FCC repeal. A reversal of the FCC vote would need the approval of the Senate, U.S. House and President Donald Trump.

Trump also backed the FCC action, the White House said last month.

The FCC order grants internet providers sweeping new powers to block, throttle or discriminate among internet content, but requires public disclosure of those practices. Internet providers have vowed not to change how consumers get online content.

Democrats say net neutrality is essential to protect consumers, while Republicans say the rules hindered investment by providers and were not needed.

Democratic Senator Ed Markey said on Tuesday he had 39 co-sponsors to force a vote, but it is not clear when the vote will occur since the new rules will not take effect for at least another three months. “There will be a political price to pay for those who are on the wrong side of history,” Markey said.

Republicans control the Senate with 51 votes out of the 100-member body.

Senator Brian Schatz, a Hawaii Democrat, said the issue was resonating with teenagers and college students.

“People are mobilizing across the country to save the free and open internet,” Schatz said.