Uber CEO Says Company Failed to Disclose Massive Breach in 2016

Uber Technologies Inc failed to disclose a massive breach last year that exposed the data of some 57 million users of the ride-sharing service, the company’s new chief executive officer said on Tuesday.

Discovery of the company’s handling of the incident led to the departure of two employees who led Uber’s response to the incident, said Dara Khosrowshahi, who was named CEO in August following the departure of founder Travis Kalanick. Khosrowshahi said he had only recently learned of the matter himself.

The company’s admission that it failed to disclose the breach comes as Uber seeks to recover from a series of crises that culminated in the Kalanick’s ouster in June.

“None of this should have happened, and I will not make excuses for it,” Khosrowshahi said in a blog post.

According to the company’s account, two individuals downloaded data from a web-based server at another company that provided Uber with cloud-computing services.

The data contained names, email addresses and mobile phone numbers of some 57 million Uber users around the world. The hackers also downloaded names and driver’s license numbers of some 600,000 of the company’s U.S. drivers, Khosrowshahi said in a blog post.

Bloomberg News reported that Uber’s chief security officer Joe Sullivan and a deputy had been ousted from the company this week because of their role in the handling of the incident. The company paid hackers $100,000 to delete the stolen data, according to Bloomberg.

Though such payoffs are rarely discussed in public, U.S. Federal Bureau of Investigation officials and private security companies have told Reuters in the past year that an increasing number of companies have made payments to criminal hackers who have turned to extortion.

None have previously come to light that aimed to suppress breaches that would have required public disclosure, such as those involving protected personal information. Sullivan did not immediately return messages seeking comment.

Sullivan, formerly the top security official at Facebook Inc, is a former federal prosecutor and one of the most admired security executives in Silicon Valley.

Kalanick learned of the breach a month after it took place, in November 2016, as the company was in negotiations with the U.S. Federal Trade Commission over the handling of consumer data, according to Bloomberg.

Uber representatives did not respond when asked to comment on the Bloomberg report.

Khosrowshahi said he had hired Matt Olsen, former general counsel of the U.S. National Security Agency, to help him figure out how to best guide and structure the company’s security teams and processes.

“While I can’t erase the past, I can commit on behalf of every Uber employee that we will learn from our mistakes,” he said. “We are changing the way we do business, putting integrity at the core of every decision we make and working hard to earn the trust of our customers.”

 

US Charges Iranian National With Hacking HBO Computer Systems

U.S. prosecutors charged an Iranian with hacking into computer systems of the cable TV channel HBO earlier this year, stealing information about the hit program “Game of Thrones” and attempting to extort millions of dollars from the company.

In an indictment Tuesday, prosecutors said 29-year-old Behzad Mesri has had ties to Iran’s military and is a member of an Iran-based hacking group known as the Turk Black Hat security team.

 

Mesril’s stolen material included video of unaired episodes of several original HBO shows, scripts and plot summaries of upcoming episodes of “Game of Thrones,” and confidential cast and crew contact information, according to the indictment.

Mesri claims to have stolen 1.5 terabytes of data from HBO.

Demanded $6 million in Bitcoin

In late July, Mesri emailed HBO executives on several occasions, threatening to release the material unless the entertainment company paid him $5.5 million worth of Bitcoin digital currency, a ransom amount he later increased to $6 million.

 

“Hi to all losers! Yes, it’s true.  HBO is hacked! Beware of heart attack!!!” he allegedly wrote in one anonymous email.  In another he bragged that “HBO was one of our difficult targets to deal with but we succeeded.”

 

After HBO refused to make a payment, Mesri allegedly posted portions of the stolen videos and five scripts from Game of Throne episodes on websites he controlled.

Mesri has not been arrested, and faces multiple charges, including wire fraud, which carries a maximum sentence of 20 years and one count of computer hacking, which could be punished with up to five years in prison.

More indictments expects

 The indictment is one of several cases involving Iranian suspects prosecutors plan to announce in the coming month, the Washington Post reported on Sunday, citing people familiar with the matter. In July, the Justice Department indicted two Iranian nationals with hacking a Vermont-based software company.

 

“Mesri now stands charged with federal crimes, and although not arrested today, he will forever have to look over his shoulder until he is made to face justice,” said Acting U.S. Attorney for the Southern District of New York Joon Kim.

Prosecutors allege that Mesri “had previously worked on behalf of the Iranian military to conduct computer network attacks that targeted military systems, nuclear software systems, and Israeli infrastructure.”

As a member of the Turk Black Hat, Mesri is alleged to have conducted hundreds of website defacements in the United States and elsewhere using the online pseudonym Skote Vahshat,  according to the indictment.

 

In a note to journalists, HBO said it had been “working with law enforcement from the early stages of the cyber incident.”

 

FCC Chairman Sets Out to Repeal ‘Net Neutrality’ Rules

Federal Communications Commission Chairman Ajit Pai on Tuesday followed through on his pledge to repeal 2015 regulations designed to ensure that internet service providers treat all online content and apps equally, setting up a showdown with consumer groups and internet companies who fear the move will stifle competition and innovation.

The current rules, known as net neutrality, impose utility-style regulation on ISPs such as Comcast, AT&T and Verizon to prevent them from favoring their own digital services over those of their rivals.

Pai said that he believes the net neutrality rules adopted during the Obama administration discourage the ISPs from making investments in their network that would provide even better and faster online access.

“Under my proposal, the federal government will stop micromanaging the internet,” Pai said in a statement.

Pai distributed his alternative plan to other FCC commissioners Tuesday in preparation for a Dec. 14 vote on the proposal. He promised to release his entire proposal Wednesday.

The attempt to repeal net neutrality has triggered protests from consumer groups and internet companies. More than 22 million comments have been filed with the FCC about whether net neutrality should be rolled back.

The Internet Association, a group whose members include major internet companies such as Google and Amazon, vowed to continue to fight to keep the current net neutrality rules intact.

“Consumers have little choice in their ISP, and service providers should not be allowed to use this gatekeeper position at the point of connection to discriminate against websites and apps,” the group’s CEO Michael Beckerman said in a Tuesday statement.

Consumers Union predicted a repeal of net neutrality would allow ISPs to raise their prices and give preferential treatment to certain sites and apps.

“Strong net neutrality rules are vital to consumers’ everyday lives and essential to preserving the internet as we know it today _ an open marketplace where websites large and small compete on equal terms and where information and ideas move freely,” said Jonathan Schwantes, the advocacy group’s senior policy counsel.

Two of the FCC’s five voting commissioners signaled they will oppose Pai’s plan.

Commissioner Jessica Rosenworcel derided Pai’s plan as “ridiculous and offensive to the millions of Americans who use the internet every day.”

Commissioner Mignon L. Clyburn skewered Pai’s proposals as “a giveaway to the nation’s largest communications companies, at the expense of consumers and innovation.”

Rosenworcel and Clyburn are the lone Democrats on the FCC.

Pai’s proposal on net neutrality comes after the Republican-dominated commission voted 3-2 last week to weaken rules meant to support independent local media, undoing a ban on companies owning newspapers and broadcast stations in a single market.

Defense Minister – Denmark to Ramp up Cybersecurity Efforts

Denmark intends to invest to boost efforts to prevent cyber attacks in a strategy to be presented early next year, its defense minister said on Tuesday.

“We are going to spend more money in this area,” Claus Hjort Frederiksen told Reuters on the sidelines of a conference in Copenhagen, though he declined to disclose a figure.

Cybersecurity is “very high on the agenda” for the right-leaning government, but also for the broad selection of Danish political parties negotiating a new defense strategy for the coming six years, he said.

The government would like to expand an early warning system with sensors that detects when Danish companies or authorities are under attack from, for example, malware.

“To some degree we do have a system today, but we would like to expand it to the strategic infrastructure and to private companies,” he told Reuters.

The government also wants to increase the preventive capacity at the Danish center for cybersecurity to increase its ability to better catch and inform about imminent cyber threats, he said.

World’s no.1 container shipper and one of Denmark’s largest companies Maersk was hit by major cyber attack in June, one of the biggest-ever disruptions to hit global shipping.

The government also works for a deeper cooperation between authorities and private companies in battling cyber attacks, Frederiksen said.

He said he believed companies were sometimes reluctant to inform they had been hit by cyber attacks, because they were afraid to scare off customers or investors.

Frederiksen said he saw the overall cyber threat as “one of the greatest threats of our time.”

“If you can undermine our democratic nations by hacking the energy systems or the communication systems or the financial systems it will undermine our own people’s belief in our societies’ ability to protect them,” he said.

Russia hacked the Danish defense network and gained access to employees’ emails in 2015 and 2016, Frederiksen said in April.

Danish troops will get training in how to deal with Russian misinformation before being sent to join a NATO military build-up in Estonia in January, Frederiksen said in July.

 

Virtual Reality As a Mental Health Tool

It is a simple, but startling, statistic: one in four people around the world will have a mental or neurological disorder at some point in their lives. But dealing with mental health issues is so much easier if they are caught early. VOA’s Kevin Enochs reports that is the thinking behind a new method using virtual reality to gauge mental health.

US Sues to Stop AT&T’s Takeover of Time Warner

The U.S. Justice Department is suing to stop AT&T’s multi-billion dollar bid to take over another communications giant, Time Warner, calling it illegal and likening it to extortion.

“The $108 billion acquisition would substantially lessen competition, resulting in higher prices and less innovation for millions of Americans,” a Justice Department statement said Monday.

“The combined company would use its control over Time Warner’s valuable and highly popular networks to hinder its rivals by forcing them to pay hundreds of millions of dollars more per year for the right to distribute those networks.”

CNN, HBO top Time Warner products

Time Warner’s products include CNN, HBO, TNT, The Cartoon Network, and Cinemax — these networks broadcast highly popular newscasts, movies, comedy and drama series, and sports.

AT&T and its subsidiary DirectTV distribute these programs, as well as others, thorough cable and satellite.

The Justice Department decries the possibility of AT&T not just controlling television productions, but also the means of bringing them into people’s homes.

In its lawsuit, it threw AT&T’s words right back at the communications giant, noting that AT&T recognizes that distributors with control over the shows “have the incentive and ability to use … that control as a weapon to hinder competition.”

It also cited a DirectTV statement saying distributors can withhold programs from their rivals and “use such threats to demand higher prices and more favorable terms.”

Assured transaction would be approved

AT&T’s CEO Randall Stephenson told reporters the Justice Department’s lawsuit “stretches the reach of anti-trust law to the breaking point.”

He said the “best legal minds in the country” assured AT&T that the transaction would be approved and said the government is discarding decades of legal precedent.

AT&T and Time Warner are not direct competitors, and AT&T says government regulators have routinely approved such mergers.

President Donald Trump has made no secret of his contempt for one of Time Warner’s crown jewels — CNN, the Cable News Network — because of his perception of CNN being a liberal biased provider of “fake news,” including direct attacks against his administration.

Trump vowed during last year’s presidential campaign to block the merger.

Stephenson called the matter “the elephant in the room,” saying he said he “frankly does not know” if the White House disdain for CNN is at the heart of the Justice Department lawsuit.

But he said a proposal that Time Warner sell-off CNN as part of a settlement with the Trump Justice Department would be a “non-starter.”

Online Abuse Silences Women and Girls, Fuels Violence, Survey Shows

Pervasive online abuse and harassment pressure women and girls into censoring themselves on social media and fuel gender-based discrimination and violence, rights groups said on Monday.

About one in four women in Britain, the United States and six other countries said in a survey they had experienced online abuse or harassment.

More than 40 percent said the online abuse made them fear for their physical safety and more than half reported trouble sleeping, loss of self-esteem and panic attacks after the incidents, according to rights group Amnesty International.

About a third stopped expressing their opinions online or withdrew from public conversations as a result, Amnesty said.

“It’s no secret that misogyny and abuse are thriving on social media platforms, but this poll shows just how damaging the consequences of online abuse are,” said Amnesty researcher Azmina Dhrodia. “This is not something that goes away when you log off.”

Online harassment starts at a young age and may be more common for girls and teenagers than adults, according to U.K.-based child rights group Plan International.

Nearly half of girls aged 11-18 in the U.K. said they had experienced abuse or harassment on social media, Plan found in a survey earlier this year.

Like women, most of the girls said they stopped sharing opinions or otherwise changed their online behavior out of fear, according to Plan.

“Very young girls are learning that they need to take responsibility for harassment and abuse,” Kerry Smith of Plan told the Thomson Reuters Foundation. “What they are saying is that they are holding themselves back.”

Parents, teachers and police often respond to online abuse by taking away girls’ phones or telling them to go offline, which teaches victims that they are responsible for the problem, Smith said.

Online harassment, including crude comments on pictures or sexual references, teaches boys that it is okay to treat girls as sexual objects and to exercise power over them, which can lead to physical abuse and rape, she added.

Social media attacks are so common for female politicians that they deter women from running for office around the world, advocates and female lawmakers have said.

Companies and governments need to step up to make the internet a safe space for girls and women, campaigners said.

“Social media companies have a responsibility… to ensure that women using their platforms are able to do so freely and without fear,” said Amnesty’s Dhrodia.

Toyota Banking on Hydrogen Fuel Cell Technology

When it comes to cars, generally there are three options, there is gas, a gas-battery hybrid, or a full electric car. But for a fourth option, some car companies are banking on hydrogen as the fuel of the future. VOA’s Kevin Enochs reports.

A Gastronomical Virtual Experience: Enjoying the Taste of Food Without the Calories

Through a headset around the head and over the eyes, virtual reality can take us to computer-generated environments very different from the physical environment we’re in. Now, virtual reality technology is offering the food industry a new life. As Faiza Elmasry tells us, virtual reality can change the future of our dining experiences and make food tastier and healthier. Faith Lapidus narrates.

UN Panel Agrees to Move Ahead With Debate on ‘Killer Robots’

A U.N. panel agreed Friday to move ahead with talks to define and possibly set limits on weapons that can kill without human involvement, as human rights groups said governments are moving too slowly to keep up with advances in artificial intelligence that could put computers in control one day.

Advocacy groups warned about the threats posed by such “killer robots” and aired a chilling video illustrating their possible uses on the sidelines of the first formal U.N. meeting of government experts on Lethal Autonomous Weapons Systems this week. More than 80 countries took part.

Ambassador Amandeep Gill of India, who chaired the gathering, said participants plan to meet again in 2018. He said ideas discussed this week included the creation of legally binding instrument, a code of conduct, or a technology review process.

The Campaign to Stop Killer Robots, an umbrella group of advocacy groups, says 22 countries support a ban of the weapons and the list is growing. Human Rights Watch, one of its members, called for an agreement to regulate them by the end of 2019 — admittedly a long shot.

The meeting falls under the U.N.’s Convention on Certain Conventional Weapons — also known as the Inhumane Weapons Convention — a 37-year old agreement that has set limits on the use of arms and explosives like mines, blinding laser weapons and booby traps over the years.

The group operates by consensus, so the least ambitious goals are likely to prevail, and countries including Russia and Israel have firmly staked out opposition to any formal ban. The United States has taken a go-slow approach, rights groups say.

U.N. officials say in theory, fully autonomous, computer-controlled weapons don’t exist yet, but defining exactly what killer robots are and how much human interaction is involved was a key focus of the meeting. The United States argued that it was “premature” to establish a definition.

Dramatic depictions

The concept alone stirs the imagination and fears, as dramatized in Hollywood futuristic or science-fiction films that have depicted uncontrolled robots deciding on their own about firing weapons and killing people.

Gill played down such concerns.

“Ladies and gentlemen, I have news for you: The robots are not taking over the world. So that is good news, humans are still in charge. … We have to be careful in not emotionalizing or dramatizing this issue,” he told reporters Friday.

The United States, in comments presented, said autonomous weapons could help improve guidance of missiles and bombs against military targets, thereby “reducing the likelihood of inadvertently striking civilians.” Autonomous defensive systems could help intercept enemy projectiles, one U.S. text said.

Some top academics like Stephen Hawking, technology experts such as Tesla founder Elon Musk and human rights groups have warned about the threats posed by artificial intelligence, amid concerns that it might one day control such systems — and perhaps sooner rather than later.

“The bottom line is that governments are not moving fast enough,” said Steven Goose, executive director of arms at Human Rights Watch. He said a treaty by the end of 2019 is “the kind of timeline we think this issue demands.”

Tesla Adds Big Trucks to Its Electrifying Ambitions

After more than a decade of making cars and SUVs — and, more recently, solar panels — Tesla Inc. wants to electrify a new type of vehicle: big trucks.

The company unveiled its new electric semitractor-trailer Thursday night near its design center in Hawthorne, California.

CEO Elon Musk said the semi is capable of traveling 500 miles on an electric charge and will cost less than a diesel semi considering fuel savings, lower maintenance and other factors. Musk said customers can put down a $5,000 deposit for the semi now and production will begin in 2019.

“We’re confident that this is a product that’s better in every way from a feature standpoint,” Musk told a crowd of Tesla fans gathered for the unveiling.

​One-fourth of transit emissions

The move fits with Musk’s stated goal for the company of accelerating the shift to sustainable transportation. Trucks account for nearly a quarter of transportation-related greenhouse gas emissions in the U.S., according to government statistics.

Musk said Tesla plans a worldwide network of solar-powered “megachargers” that could get the trucks back up to 400 miles of range after 30 minutes.

Tesla, Musk stretched

But the semi also piles on the chaos at Palo Alto, California-based company. Tesla is way behind on production of the Model 3, a new lower-cost sedan. It’s also ramping up production of solar panels after buying Solar City Corp. last year. Musk has said Tesla is also working on a pickup and a lower-cost SUV and negotiating a new factory in China. Meanwhile, the company posted a record quarterly loss of $619 million in its most recent quarter.

Musk, too, is being pulled in many different directions. He leads rocket maker SpaceX and is dabbling in other projects, including high-speed transit, artificial intelligence research and a new company that’s digging tunnels beneath Los Angeles to alleviate traffic congestion.

“He’s got so much on his plate right now. This could present another distraction from really just making sure that the Model 3 is moved along effectively,” said Bruce Clark, a senior vice president and automotive analyst at Moody’s.

Uncertain market

Tesla is venturing into an uncertain market. Demand for electric trucks is expected to grow over the next decade as the U.S., Europe and China all tighten their emissions regulations. Electric truck sales totaled 4,100 in 2016, but are expected to grow to more than 70,000 in 2026, says Navigant Research.

But most of that growth is expected to be for smaller, medium-duty haulers like garbage trucks or delivery vans. Those trucks can have a more limited range of 100 miles or less, which requires fewer expensive batteries. They can also be charged overnight.

Long-haul semi trucks, on the other hand, would be expected to go greater distances, and that would be challenging. Right now, there’s little charging infrastructure on global highways. Without Tesla’s promised fast-charging, even a midsized truck would likely require a two-hour stop, cutting into companies’ efficiency and profits, says Brian Irwin, managing director of the North American industrial group for the consulting firm Accenture.

Irwin says truck companies will have to watch the market carefully, because tougher regulations on diesels or an improvement in charging infrastructure could make electric trucks more viable very quickly. Falling battery costs also will help make electric trucks more appealing compared to diesels.

But even lower costs won’t make trucking a sure bet for Tesla. It faces stiff competition from long-trusted brands like Daimler AG, which unveiled its own semi prototype last month. 

Fleet operators want reliable trucks, and Tesla will have to prove it can make them, said Michelle Krebs, executive analyst with the car shopping site Autotrader.