Spain’s National Court has recommended the extradition to the United States of a Russian computer programmer accused by U.S. prosecutors of developing malicious software that stole information from financial institutions and caused losses of $855,000.

Stanislav Lisov, 31, was arrested January 13 in the Barcelona Airport while on honeymoon in Europe. Prosecutors accuse him of developing the NeverQuest software that targeted banking clients in the United States between June 2012 and January 2015.

The Spanish court said Tuesday that Lisov could face up to 25 years in prison for conspiracy to commit electronic and computer fraud. The extradition hearing took place July 20.

The court said its ruling can be appealed by Lisov.

The extradition, if finally decided upon, must be approved by the government.
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A bipartisan group of U.S. senators on Tuesday plans to introduce legislation seeking to address vulnerabilities in computing devices embedded in everyday objects — known in the tech industry as the “internet of things” — which experts have long warned poses a threat to global cyber security.

The new bill would require vendors that provide internet-connected equipment to the U.S. government to ensure their products are patchable and conform to industry security standards. It would also prohibit vendors from supplying devices that have unchangeable passwords or possess known security vulnerabilities.

Republicans Cory Gardner and Steve Daines and Democrats Mark Warner and Ron Wyden are sponsoring the legislation, which was drafted with input from technology experts at the Atlantic Council and Harvard University. A Senate aide who helped write the bill said that companion legislation in the House was expected soon.

“We’re trying to take the lightest touch possible,” Warner told Reuters in an interview. He added that the legislation was intended to remedy an “obvious market failure” that has left device manufacturers with little incentive to build with security in mind.

The legislation would allow federal agencies to ask the U.S. Office of Management and Budget for permission to buy some non-compliant devices if other controls, such as network segmentation, are in place.

It would also expand legal protections for cyber researchers working in “good faith” to hack equipment to find vulnerabilities so manufacturers can patch previously unknown flaws.

Security researchers have long said that the ballooning array of online devices including cars, household appliances, speakers and medical equipment are not adequately protected from hackers who might attempt to steal personal information or launch sophisticated cyber attacks.

Between 20 billion and 30 billion devices are expected to be connected to the internet by 2020, researchers estimate, with a large percentage of them insecure.

Though security for the internet of things has been a known problem for years, some manufacturers say they are not well equipped to produce cyber secure devices.

Hundreds of thousands of insecure webcams, digital records and other everyday devices were hijacked last October to support a major attack on internet infrastructure that temporarily knocked some web services offline, including Twitter, PayPal and Spotify.

The new legislation includes “reasonable security recommendations” that would be important to improve protection of federal government networks, said Ray O’Farrell, chief technology officer at cloud computing firm VMware.
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German authorities have launched a six-month test of automatic facial recognition technology at a Berlin railway station, which the country’s top security official says could be used to improve security in the future.

More than 200 people volunteered to have their names and two photos stored for the project at Suedkreuz station, where three cameras film an entrance and an escalator.

Interior Minister Thomas de Maiziere said in a statement Tuesday “technical progress must not stop at our security services.”

But Germans generally back strong data protection. Ulrich Schellenberg, head of the German Bar Association, said “not everything that is technically possible is something we want to do as a society.”

It’s not clear how officials will proceed after the test.
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When Luxembourg’s new law governing space mining comes into force on Tuesday, the country will already be working to make the science-fiction-sounding mission a reality, the deputy prime minister said.

The legislation will make Luxembourg the first country in Europe to offer a legal framework to ensure that private operators can be confident about their rights over resources they extract in space.

The law is based on the premise that space resources are capable of being owned by individuals and private companies and establishes the procedures for authorizing and supervising space exploration missions.

“When I launched the initiative a year ago, people thought I was mad,” Etienne Schneider told Reuters.

“But for us, we see it as a business that has return on investment in the short-term, the medium-term, and the long-term,” said Schneider, who is also Luxembourg’s economy minister.

Luxembourg in June 2016 set aside 200 million euros ($229 million) to fund initiatives aimed at bringing back rare minerals from space.

While that goal is at least 15 years off, new technologies are already creating markets that space mining could supply, said Schneider.

He said firms could soon make carrying materials to refuel or repair satellites economically feasible or supply raw materials to the 3-D printers now being tested on the International Space Station.

Lifting each kilogram of mass from Earth to orbit costs between 10,000 and 15,000 euros ($11,000 to $18,000), according to Schneider, but firms could cut these costs by recycling the debris of old satellites and rocket parts floating in space.

The small European country, best known for its fund management and private banking sector, will on Tuesday begin the work of making such deals, with the security of a legal framework in place, said Schneider.

Luxembourg has already managed to attract significant interest from pioneers in the field such as U.S. operators Planetary Resources and Deep Space Industries, and aims to attract research and development projects to set up there.

A similar package of laws was introduced in the United States in 2015 but only applies to companies majority owned by Americans, while Luxembourg’s laws will only require the company to have an office in the country.

“I am already in discussions with fund owners for more than 1 billion euros which they want to dedicate to space exploration over here in Luxembourg,” Schneider said. “In 10 years, I’m quite sure that the official language in space will be Luxembourgish.”
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Securing petrochemical plants and keeping chemicals out of the hands of terrorists were the topics of discussion at a recent Chemical Sector Security Summit in Houston, Texas. Security experts say the countries that are producing chemicals are shifting and that is one of many reasons developed and developing nations need to share best security practices. VOA’s Elizabeth Lee reports from Houston, a petrochemical hub in the United States.
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There’s a café in the heart of Silicon Valley where the biggest names in tech are known to take their lattes, attracting startup founders who frantically make their pitches to the venture capitalists holding court at the wooden tables. Coupa Café in Palo Alto, California, has a certain electric buzz, as Deana Mitchell reports.
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For Tesla, everything is riding on the Model 3.

The electric car company’s newest vehicle was delivered to its first 30 customers, all Tesla employees, Friday evening. Its $35,000 starting price, half the cost of Tesla’s previous models, and range of up to 310 miles (498 km) could bring hundreds of thousands of customers into the automaker’s fold, taking it from a niche luxury brand to the mainstream. Around 500,000 people worldwide have reserved a Model 3.

Those higher sales could finally make Tesla profitable and accelerate its plans for future products like SUVs and pickups.

Or the Model 3 could dash Tesla’s dreams.

Much could go wrong

Potential customers could lose faith if Tesla doesn’t meet its aggressive production schedule, or if the cars have quality problems that strain Tesla’s small service network. 

The compact Model 3 may not entice a global market that’s increasingly shifting to SUVs, including all-electric SUVs from Audi and others going on sale soon. And a fully loaded Model 3 with 310 miles of range costs a hefty $59,500; the base model goes 220 miles (322 km) on a charge.

Limits on the $7,500 U.S. tax credit for electric cars could also hurt demand. Once an automaker sells 200,000 electric cars in the U.S., the credit phases out. Tesla has sold more than 126,000 vehicles since 2008, according to estimates by WardsAuto, so not everyone who buys a Model 3 will be eligible.

“There are more reasons to think that it won’t be successful than it will,” says Karl Brauer, the executive publisher for Cox Automotive, which owns Autotrader and other car buying sites.

Always part of Tesla plans

The Model 3 has long been part of Palo Alto, California-based Tesla’s plans. In 2006, three years after the company was founded, CEO Elon Musk said Tesla would eventually build “affordably priced family cars” after establishing itself with high-end vehicles like the Model S, which starts at $69,500. This will be the first time many Tesla workers will be able to afford a Tesla.

“It was never our goal to make expensive cars. We wanted to make a car everyone could buy,” Musk said Friday. “If you’re trying to make a difference in the world, you also need to make cars people can afford.”

Tesla started taking reservations for the Model 3 in March 2016. Musk said more than 500,000 people have put down a $1,000 deposit for the car. People ordering a car now likely won’t get it until late 2018. Cars will go first to employees and customers on the West Coast; overseas deliveries start late next year, and right-hand drive versions come in 2019.

Challenges to deliver

But carmaking has proved a challenge to Musk. Both the Model S and the Model X SUV were delayed and then plagued with pesky problems, like doors that don’t work and blank screens in their high-tech dashboards.

Tesla’s luxury car owners might overlook those problems because they liked the thrill of being early adopters. But mainstream buyers will be less forgiving.

“This will be their primary vehicle, so they will have high expectations of quality and durability and expect everything to work every time,” said Sam Abuelsamid, a senior researcher with Navigant Research.

The Model 3 was designed to be much simpler and cheaper to make than Tesla’s previous vehicles. It has one dashboard screen, not two, and no fancy door handles. It’s made primarily of steel, not aluminum. It has no instrument panel; the speed limit and other information normally there can be found on the center screen. It doesn’t even have a key fob; drivers can open and lock the car with a smartphone or a credit cardlike key.

‘Manufacturing hell’

Still, Musk said he’s expecting “at least six months of manufacturing hell” as the Model 3 ramps up to full production. Musk wants to be making 20,000 Model 3s per month by December at the carmaker’s Fremont factory.

Musk aims to make 500,000 vehicles next year, a number that could help Tesla finally make money. The company has only had two profitable quarters since it went public in 2010. But even at that pace, Tesla will remain a small player. Toyota Motor Corp. made more than 10 million vehicles last year.

Abuelsamid said even if it doesn’t meet its ambitious targets, Tesla has done more than anyone to promote electric vehicles.

“A decade ago they were a little more than golf carts. Now all of a sudden, EVs are real, practical vehicles that can be used for anything,” he said.
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Securing petrochemical plants and keeping chemicals out of the hands of terrorists were the topics of discussion at a recent Chemical Sector Security Summit in Houston, Texas. Security experts say the countries that are producing chemicals are shifting and that is one of many reasons developed and developing nations need to share best security practices. VOA’s Elizabeth Lee reports from Houston, a petrochemical hub in the United States.
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Hackers attending this weekend’s Def Con hacking convention in Las Vegas were invited to break into voting machines and voter databases in a bid to uncover vulnerabilities that could be exploited to sway election results.

The 25-year-old conference’s first “hacker voting village” opened on Friday as part of an effort to raise awareness about the threat of election results being altered through hacking.

Hackers crammed into a crowded conference room for the rare opportunity to examine and attempt to hack some 30 pieces of election equipment, much of it purchased over eBay, including some voting machines and digital voter registries that are currently in use.

Showdown between hackers

“We encourage you to do stuff that if you did on election day they would probably arrest you,” said Johns Hopkins computer scientist Matt Blaze, who organized the segment in a conference room at the Caesar’s Palace convention center.

The exercise featured a “cyber range” simulator where blue teams were tasked with defending a mock local election system from red team hackers.

Concerns about election hacking have surged since U.S. intelligence agencies claimed that Russian President Vladimir Putin ordered the hacking of Democratic Party emails to help Republican Donald Trump win the 2016 U.S. presidential election.

Russians targeted 21 state elections

A Department of Homeland Security official told Congress in June that Russian hackers had targeted 21 U.S. state election systems in the 2016 presidential race and a small number were breached, but there was no evidence that any votes had been manipulated.

Russia has denied the accusations.

Jake Braun, another organizer, said he believed the hacker voting village would convince participants that hacking could be used to sway an election.

“There’s been a lot of claims that our election system is unhackable. That’s BS,” said Braun. “Only a fool or liar would try to claim that their database or machine was unhackable.”

Call for paper ballots

Barbara Simons, president of advocacy group Verified Voting, said she expects Russia to try to influence the U.S. 2018 midterm election and 2020 elections. To counter such threats, she called for requiring use of paper ballots and mandatory auditing computers to count them.

More than 20,000 people were expected to attend the three-day Def Con convention.

The hacker voting village was one of about a dozen interactive areas where participants could study and practice hacking in fields such as automobiles, cryptology and healthcare.

 
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A ban on pedestrians looking at mobile phones or texting while crossing the street will take effect in Hawaii’s largest city in late October, as Honolulu becomes the first major U.S. city to pass legislation aimed at reducing injuries and deaths from “distracted walking.”

The ban comes as cities around the world grapple with how to protect “smartphone zombies” from injuring themselves by stepping into traffic or running into stationary objects.

Starting October 25, a Honolulu pedestrian can be fined between $15 and $99, depending on the number of times police catch him looking at a phone or tablet device as he crosses a street, Mayor Kirk Caldwell told reporters gathered near one of the city’s busiest downtown intersections Thursday.

“We hold the unfortunate distinction of being a major city with more pedestrians being hit in crosswalks, particularly our seniors, than almost any other city in the county,” Caldwell said. Honolulu data on distracted-walking incidents were not immediately available.

Caldwell signed the legislation Thursday after it was passed in a 7-2 vote by the City Council earlier this month, city records show.

People making calls for emergency services are exempt from the ban.

Injury toll

More than 11,000 injuries resulted from phone-related distraction while walking in the United States between 2000 and 2011, according to a University of Maryland study published in 2015.

The findings pushed the nonprofit National Safety Council to add “distracted walking” to its annual compilation of the biggest risks for unintentional injuries and deaths in the United States, highlighting the severity of the issue.

“Cellphones are not just pervading our roadways but pervading our sidewalks, too,” Maureen Vogel, a spokeswoman for the council, said in a phone interview on Friday.

Efforts to save pedestrians from their phones extend beyond America’s shores. London has experimented with padding lamp posts to soften the blow for distracted walkers, according to the Independent newspaper.

In Germany, the city of Augsburg last year embedded traffic signals into the ground near tram tracks to help downward-fixated pedestrians avoid injury, local media reported.

Opponents of the Honolulu law argued it infringes on personal freedom and amounts to government overreach.

“Scrap this intrusive bill, provide more education to citizens about responsible electronics usage, and allow law enforcement to focus on larger issues,” resident Ben Robinson told the City Council in written testimony.
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The Roomba robotic vacuum has been whizzing across floors for years, but its future may lie more in collecting data than dirt.

That data is of the spatial variety: the dimensions of a room as well as distances between sofas, tables, lamps and other home furnishings. To a tech industry eager to push “smart” homes controlled by a variety of Internet-enabled devices, that space is the next frontier.

Smart home lighting, thermostats and security cameras are already on the market, but Colin Angle, chief executive of Roomba maker iRobot Corp., says they are still dumb when it comes to understanding their physical environment. He thinks the mapping technology currently guiding top-end Roomba models could change that and is basing the company’s strategy on it.

“There’s an entire ecosystem of things and services that the smart home can deliver once you have a rich map of the home that the user has allowed to be shared,” said Angle.

That vision has its fans, from investors to the likes of Amazon.com, Apple and Alphabet, who are all pushing artificially intelligent voice assistants as smart home interfaces. According to financial research firm IHS Markit, the market for smart home devices was worth $9.8 billion in 2016 and is projected to grow 60 percent this year.

Map sharing

Angle told Reuters that iRobot, which made Roomba compatible with Amazon’s Alexa voice assistant in March, could reach a deal to share its maps for free with customer consent to one or more of the Big Three in the next couple of years. Angle added the company could extract value from those agreements by connecting for free with as many companies as possible to make the device more useful in the home.

Amazon declined to comment, and Apple and Google did not respond to requests for comment.

So far investors have cheered Angle’s plans, sending iRobot stock soaring to $102 in mid-June from $35 a year ago, giving it a market value of nearly $2.5 billion on 2016 revenue of $660 million.

But there are headwinds for iRobot’s approach, ranging from privacy concerns to a rising group of mostly cheaper competitors — such as the $300 Bissell SmartClean and the $270 Hoover Quest 600 — which are threatening to turn a once-futuristic product into a commoditized home appliance.

Low-cost Roomba rivals were the subject of a report by short-seller Ben Axler of Spruce Point Capital Management, which sent the stock down 20 percent to $84 at the end of June.

The company’s smart home vision has helped bring around some former critics. Willem Mesdag, managing partner of hedge fund Red Mountain Capital — who led an unsuccessful proxy fight against Angle last year and wound up selling his iRobot shares — is now largely supportive of the company’s direction.

“I think they have a tremendous first-mover advantage,” said Mesdag, who thinks iRobot would be a great acquisition for one of the Big Three. “The competition is focused on making cleaning products, not a mapping robot.”

Military beginnings

Founded in 1990, iRobot saw early success building bomb disposal robots for the U.S. Army before launching the world’s first “robovac” in 2002. The company sold off its military unit last year to focus on the consumer sector, and says the Roomba — which ranges in price from $375 to $899 — still has 88 percent of the U.S. robovac market.

All robovacs use short-range infrared or laser sensors to detect and avoid obstacles, but iRobot in 2015 added a camera, new sensors and software to its flagship 900-series Roomba that gave it the ability to build a map while keeping track of its own location within that map.

So-called simultaneous localization and mapping (SLAM) technology right now enables Roomba, and other higher-end robovacs made by Dyson and other rivals, to do things like stop vacuuming, head back to its dock to recharge and then return to the same spot to finish the job.

Guy Hoffman, a robotics professor at Cornell University, said detailed spatial mapping technology would be a “major breakthrough” for the smart home.

Right now, smart home devices operate “like a tourist in New York who never leaves the subway,” said Hoffman. “There is some information about the city, but the tourist is missing a lot of context for what’s happening outside of the stations.”

With regularly updated maps, Hoffman said, sound systems could match home acoustics, air conditioners could schedule airflow by room, and smart lighting could adjust according to the position of windows and time of day.

Companies like Amazon, Google and Apple could also use the data to recommend home goods for customers to buy, said Hoffman.

Privacy concerns

One potential downside is that sharing data about users’ homes raises clear privacy issues, said Ben Rose, an analyst who covers iRobot for Battle Road Research. Customers could find it “sort of a scary thing,” he said.

Angle said iRobot would not be sharing data without its customers’ permission, but he expressed confidence most would give their consent in order to access the smart home functions.

Another Roomba risk is that cheaper cleaning products are what consumers really want. In May, The New York Times’ Sweethome blog dethroned the $375 Roomba 690 as its most-recommended robovac in favor of the $220 Eufy RoboVac 11, saying the connectivity and other advanced features of the former would not justify the greater cost for most users.

Short-seller Axler’s June report caused a stir mostly with its prediction that value-priced appliance maker SharkNinja Operating LLC could launch a robovac by year’s end. SharkNinja declined to comment.

One potential iRobot bulwark against these new competitors: a portfolio of 1,000 patents worldwide covering the very concept of a self-navigating household robot vacuum as well as basic technologies like object avoidance.

A handful of those patents are now being tested in a series of patent infringement lawsuits iRobot filed in April against Bissell, Stanley Black & Decker, Hoover Inc., Chinese outsourced manufacturers and other robovac makers. The litigation is the most significant in iRobot’s history.

A lawyer for Hoover declined to comment. Lawyers for Bissell and Stanley Black & Decker did not respond to requests for comment.

The patents are a “huge part of our competitive moat,” Angle said. “It is getting really hard not to step on our intellectual property.”
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For some youngsters, “unboxing” YouTube videos are all the rage. They involve a pair of hands – some small, some big with lacquered nails or others with hairy knuckles — unwrapping and playing with new toys.

The concept looks and feels mundane, but some of these videos have clocked hundreds of millions of views.

Now this YouTube sensation is influencing the toy industry.

‘Blind bag’ items

Toymakers are creating “blind bag” items, small inexpensive toys packaged in opaque plastic bags. Kids can’t see what they’re getting until the package is opened.

An antidote to digital childhoods, where every song or video is a click away? Maybe.

“Blind bags right now are huge. Kids love opening them, love the surprise factor,” Kelly Foley, marketing manager at Wicked Cool Toys, said.

These blind bag items as well as blind bag miniature collectible sets were on display in New York City recently, at the “Sweet Suite” toy event hosted by The Toy Insider, an online toy review guide.

Foley was showing off the “Little Sprouts” collection from Cabbage Patch Kids. The miniature figurines (more than 120 in all) come in “blind” cabbages, and are meant to be collected.

“They’re small, they’re able to be purchased with allowance money or money that kids earn, pocket change,” Jackie Breyer, editor-in-chief at The Toy Insider, said. A Little Sprouts blind cabbage retails for $2.99.

Influence on toy culture

YouTube’s influence on the toy culture can also be seen in another hot toy – the fidget spinner craze.

“They’re seeing their peers do really cool tricks and also they’re collecting,” Breyer said. “They want a full collection of these, they don’t just want one.”

Besides paying attention to YouTube, toymakers are moving quickly to speak the language of today’s digital natives with toys like the Elmoji, a robot that teaches children coding basics using emojis. It is made by Sesame Street and WowWee.

“It’s a visual language that kids get intuitively, and we want to have them solve problems using emojis because they’re comfortable with them,” Natalie Wight, art director at WowWee, said.

The Lego Boost teaches basic coding principles to kids as young as 7.

But it’s not all work and no play.

“You can build a robot and make him do things like turn and hit a target,” Amanda Madore, senior brand relations manager at LEGO, said. “Or pull his finger and make him pass gas, which kids love.”

Now that might get some views on YouTube.

After all, tech trends may come and go, but kids will still be kids.
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