April 2014

Tech Start-Ups Are Targets of Ransom Cyberattacks

Scott Heiferman and Gary Burns had less than four minutes to decide whether to pay up or go down. One morning, an email popped into their inbox informing Heiferman, one of the founders, and Burns, the chief technology officer of Meetup, a New York Internet company that connects groups offline, that their site would go down unless they paid $300 worth of Bitcoins. Four minutes later, 40 times the company’s typical data flow crashed Meetup’s site, beginning a disruption that wouldn’t be resolved for another week.

Meetup is one of several small web start-ups that have been hit recently by a wave of so-called denial-of-service, or DDoS attacks, in which attackers knock a victim offline using a flood of traffic and refuse to stop until their victims pay their ransom in Bitcoins. The amounts demanded are typically low -- which seems like a lot of work for little payoff -- but those who have been targeted say they think the nominal amounts are bait and could lead to future extortion and demands. If their company is willing to pay $300, for example, they might also be willing to pay $3,000 or $30,000 down the road. Other start-ups that have been hit are Vimeo, the video-sharing company; Basecamp, a project management software company; Bit.ly, the link-shortening service; Shutterstock, the stock photography agency; and MailChimp, the email marketing provider.

The US thinks it can invent a Cuban Spring? Puh-leez, say Internet freedom scholars.

An arm of the US government seeking to destabilize the Castro regime in Cuba has taken covert actions to overthrow the government there. No, that's not a line out of a Cold War history book. The US Agency for International Development created a fake version of Twitter for Cubans to use in hopes of fomenting what the Associated Press calls a "Cuban Spring" that could, according to one of 1,000 pages of US Agency for International Development (USAID) documents, "renegotiate the balance of power between the state and society."

The plan was to bring Cubans onto the service, called ZunZuneo, then begin feeding them political content designed to incite huge protests reminiscent of 2011's democratic uprisings in the Middle East, according to the AP. It all sounds rather implausible at a time when the United States is trying to avoid embroiling itself in places, such as Syria and Ukraine. But the program actually exists. Technology can facilitate organizing. But it can't overthrow governments, much less on a timetable of your choosing. That USAID failed to appreciate such an important lesson -- from the most up-to-date evidence available -- seems surprising for an agency that specializes in international development. It also raises questions about why it still (reportedly) forged ahead with the program, and why it kept it a secret.

Sen Patrick Leahy: Cuban Twitter plan ‘dumb’

Sen Patrick Leahy (D-VT) had one word for a reported program by the US government to develop an underground social network in Cuba. “This is dumb, dumb, dumb,” Sen Leahy said, responding to a report that the government ran an underground network in Cuba through US Agency for International Development (USAID), geared to foster dissent against the regime in the country.

Sen Leahy, who is chairman of the Senate Appropriations subcommittee that governs USAID, said he was not briefed on the program. “No, absolutely not. And if I had been, I would have said, ‘What in heaven’s name are you thinking?’” Sen Leahy said. “If you’re going to do a covert operation like this for regime change, assuming it ever makes any sense, it’s not something that should be done through USAID. They do a lot of great things around the world. … This is not one of them.” He said not only was his committee not aware of the program, he said he doesn’t know of any members of Congress who were.

The White House Is Not Amused By Samsung's Selfie Stunt

The White House is not amused that Samsung is promoting a selfie with the president taken by Boston Red Sox player David Ortiz on a Samsung phone. Spokesman Jay Carney says the White House objects any time the president's image is used for commercial purposes. Carney says in this case, quote, "We certainly object." Carney didn't say whether the White House has asked Samsung to stop using the image.

Fearing cyberattack, Israel curbs government websites' foreign traffic

Israel will temporarily suspend some of its government websites' international traffic to fend off a potential mass-cyberattack by pro-Palestinian hackers, an Israeli security source said, without elaborating on the threat. The precautionary measure would be in place for four days, the source said, and include refusal of electronic payment from abroad for government services. Some routine reprogramming of websites was also on hold, the source said. The Walla news site said Israeli civil servants had also been instructed not to open emails received from foreigners.

Remember The Healthcare.Gov Woes? State Exchanges Had the Same Problems

A parade of executives managing state online health care marketplaces shared stories with Congress that echoed the turbulent tale of the federal site HealthCare.gov. Troubles included glitchy launches, conflict with vendors and patchwork personnel changes. The fixes and workarounds instituted by state exchanges often included hiring 100 or more people to staff call centers and to manually process backlogged forms using state and federal grant money, the officials testified. In most cases, though, as with the federal exchange, state exchanges were ultimately able to approach or meet enrollment targets despite technical challenges, officials told members of the House Oversight and Government Reform Committee.

Professors: Aereo Is Healthy Response to Dysfunctional System

Aereo definitely has friends in a trio of law professors who weighed in on its side with the Supreme Court.

Filing the brief were Warren Grimes is a professor of law at Southwestern Law School and co-author of The Law of Antitrust: An Integrated Handbook; Shubha Ghosh, law professor at University of Wisconsin Law School and cofounder of the American Antitrust Institute; and Joshua P. Davis, associate dean for academic affairs, professor and director, Center for Law and Ethics at the University of San Francisco School of Law.

In their amicus brief, the professors called Aereo a "healthy free-market response to a dysfunctional and anticompetitive television distribution system that raises prices, reduces output, and denies consumers meaningful choice." They say broadcasters have a responsibility to support the wide dissemination by Aereo of their free TV signals, a responsibility given their spectrum grants that trumps the pursuit of copyright payments. They point out that broadcasters have two limited government monopolies, access to free spectrum -- free except for the public interest standard--and certain exclusive copyright protections of a "fair return" for their creative investment in local programming.

But the academics argue broadcasters undermine their public interest obligation to free, over-the-air TV by invoking copyright law. They say Aereo simplifies access to those over-the-air signals, signals that already ensure a fair return to broadcasters through ad revenue. Granting broadcasters the relief from Aereo they seek would "decrease the output of local television broadcasting and leave consumers with very limited, technologically deficient and expensive choices for obtaining local programming," they say.

Despite Knowing Risks, People Are Banking and Filing Taxes Over Public Wi-Fi Networks

Accessing public Wi-Fi networks comes with its risks -- hackers snoop on network traffic -- but a new study finds 39% of US adults have sent sensitive information, including banking information and social security numbers, over such unsecured networks.

Polling 2,037 adults, a study conducted by Nielsen's Harris Poll for virtual private network company Private Wi-Fi found most people understood such risks, with 88% of respondents mentioning identity theft as a possible threat when using unprotected Wi-Fi networks.

That said, 26% of respondents said they have checked their bank accounts and 19% have paid bills while using public Wi-Fi. In addition, 8% admitted to sending emails containing sensitive information, such as social security numbers or account numbers, over these unprotected networks.

White House: Creation of 'Cuban Twitter' Was Not Covert Program

The funding of a social media platform designed to undermine the Cuban government was not a covert American operation, White House Press Secretary Jay Carney said during his regular press briefing.

"The program referred to by the Associated Press was a development program run by the United States agency for International Development and that program was completed in 2012," Carney said. "As you know, USAID is a development agency not an intelligence agency." Carney went on to say that the US does take steps to be discreet when operating in "non-permissive environments."