27 October 2013

Facebook Will Build Its Kingdom

The social network is considering building its own town so its employees never have to leave work. The campus in Menlo Park will include a $120 million, 394-unit housing community within walking distance of its offices. Dubbed Anton Menlo, the 630,000 square-foot rental property is supposed to include a sports bar and a day care for pet dogs.
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Media reports admit that the move towards a 24-hour work lifestyle is new, even for Silicon Valley. The social network insists that employee retention is not a major factor in the plan. Instead, it is a great idea to have more housing options closer to campus. Facebook believes that people will want to live there because they believe in the company’s mission.

The sources revealed that there will be many amenities on the site, including cafes, a store, a sports pub, bike repair shop with onsite storage, pool, spas, and gyms. This move may fix some of the company’s accommodation problems for workers. Indeed, a housing shortage is reported in Menlo Park and some employees couldn’t find places to stay near the corporate campus.

In the meantime, the industry experts point out that in many ways the move is turning the clock back. America had its “company towns” at the turn of the 20th century – the US factory workers were living in communities owned by their employer and provided housing, health care, law enforcement, church and just about every other service necessary. But the drawback is that your life becomes the company, and this is why the 20th century company towns died out.

This move means that employees will always be working. Only 10% of Facebook’s employees will be housed on-site. Apparently, there will not be too many families. The housing will go for market rates, with some being set aside for low-income staff.

Web Freedom Doomed

A recent report, carried out by the advocacy group Freedom House, has taken a look at Internet trends in 60 countries. The results were that despite a pushback from activists which successfully blocked some repressive laws, web freedom still plummeted in 2012.
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In 35 of those 60 countries, governments had grown their legal and technical spying powers through the web. A global decline in web freedom in 2012 was determined by broad surveillance, new legislation controlling Internet content and growing arrests of social media users. For instance, Iceland has the most web freedom. On the contrary, China, Cuba and Iran had the least.

In the meantime, declines in Internet freedom were led by 3 democracies - Brazil, India and the US. Apparently, revelations by Edward Snowden demonstrated that changes in online freedom of the United States were eroding extremely fast. Anyway, the United States still made it to 4th in Freedom House’s list.

A number of the governments have acted against the worldwide web because social media was exploited to arrange national protests. Since 2012, two dozen countries have adopted some kind of legislation restricting web freedom. For instance, Bangladesh imposed a 14-year prison sentence on a group of bloggers who wrote posts critical of Islam. Bahrain has also arrested ten people for “insulting the king on Twitter”, while Morocco jailed a teenager for 18 months for “attacking the nation’s sacred values” via a Facebook post which also ridiculed the king. Finally, a woman in India was arrested for just “liking” a friend’s Facebook status.

According to Sanja Kelly, project director for Freedom on the Net at Freedom House, banning and filtering are still the favorite methods of censorship in lots of countries, though the governments are increasingly looking at who is saying what on the Internet and finding ways to punish them. According to the report, law restricting Internet freedom are still sometimes blocked with a combination of pressure from advocates, lawyers, businesses, politicians and the international community. However, this is the 3rd consecutive year web freedom has declined.

Security Agencies Target Tor Network

The NSA has repeatedly tried to attack people using Tor, a popular tool protecting their Internet anonymity. This is despite the fact the software is primarily funded and promoted by the government of the United States itself.

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According to secret NSA files, disclosed by Edward Snowden, the agency successfully identified Tor users and then attacked vulnerable software on their machines. One NSA technique targeted the Firefox Internet browser used with Tor and gave the agency full control over targets’ computers, including access to files, all keystrokes and all Internet activity. However, the files suggest that the fundamental security of the anonymity service remains intact.

Tor (The Onion Router) is an open-source public project which redirects its users’ traffic via other PCs, called “relays” or “nodes”, in order to keep it anonymous and avoid filtering tools. Journalists, activists and campaigners in America, Europe, China, Iran and Syria rely on Tor network to maintain the privacy of their communications and avoid reprisals from the authorities. The network currently receives around 60% of its funding from the American government, primarily the State Department and the Department of Defense.

Despite the importance of the network to dissidents and human rights groups, the National Security Agency and its British counterpart GCHQ have devoted their efforts to attacking Tor. They claim that the service is also used by people engaged in terrorism, trade of child abuse images, and virtual drug dealing.

While it seems that the agency hasn’t compromised the core security of the Tor software or network, the leaked files detail proof-of-concept attacks, including some relying on the large-scale Internet surveillance systems used by the NSA and GCHQ via Internet cable taps.

Foremost among the concerns is whether the agency has acted against users in the United States when attacking the network. The matter is that one of the functions of the anonymity service is to hide the country of all of its users, which means that any attack could be hitting members of Tor’s American user base.

A less complex attack against the network was also disclosed in July 2013, with its details leading to speculation that it had been built by the FBI or another American agency. While at the time the FBI refused to admit it was behind the attack, it subsequently claimed in a hearing in an Irish court that the agency did operate malware to target an alleged host of pictures of child abuse, with the attack also hitting Tor network.

23 October 2013

France Will Fine Google

The tech giant hoped that France would forget its sins and let it do what it wants with EU data having been dashed recently. Local press confirm that Google will get a fine after it failed to comply with an order to alter the way user data is stored and used in order to conform to French privacy laws.

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The fine comes as a result of an investigation led by EU data protection authorities of a new privacy policy adopted by Google a year ago. Local privacy watchdog pointed out that Google was ordered to comply with data protection legislation within three months, but it just didn’t. It seems like Google just shrugged and refused. The company keeps insisting that local data protection laws can’t be applied to users of certain Google services in France.

Now the watchdog will designate a rapporteur to initiate a formal procedure for imposing sanctions. This is done under the provisions laid down in the country’s data protection legislation. The tech giant could be fined about $200,000 which seems not much. In addition, the company could in certain circumstances be ordered to refrain from processing personal information in certain ways for 3 months. The company responded that its privacy policy does respect European legislation. It also insisted that it had “engaged fully” with the watchdog within this process.

Industry observers agree that the company is in trouble with European laws in an antitrust case for allegedly breaking competition rules. Google recently submitted proposals to avoid fines in that case. In the meantime, in the United Kingdom, Google is finding itself on the back foot over its policy of refusing to pay tax which the government didn’t like at all.

22 October 2013

National Security Agency Maps Social Connections

According to the latest Snowden leak, for the last three years, the National Security Agency has been creating sophisticated graphs of the US citizens’ social connections.
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Investigating the shedloads of information the agency has collected, NSA is now able to tell who your friends are, your locations at certain times, your travel companions and other personal data.

One of the slides from a leaked NSA presentation reveals the way it uses e-mail and phone information in order to analyze the relationships of foreign intelligence targets. Another file revealed that the NSA was told to carry out large-scale graph analysis on communications metadata “without having to check foreignness of every e-mail address, phone number or other identifier”.

The NSA was mix and matching communications information with public, commercial and other sources. The list included bank codes, insurance data, Facebook profiles, passenger manifests, voter registration rolls, GPS location data, and even property records and unspecified tax information.

It seems that the agency may also know more about foreign citizens than their own government does. The Americans may also have been caught up in the effort. Actually, lots of foreigners might know the US citizens and sometimes send them emails.

Google Pays Corporation Tax in the US instead of the UK

Google paid only £11 million in British corporation tax in 2012, despite revenues of £500 million. Indeed, the company made global profits of £6 billion last year, but says that it pays bulk of its tax where business originated – the United States. Its representatives argued that the company made a significant contribution to the United Kingdom through investment and jobs.

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Back in 2011, Google paid £6 million while showing a £24 million loss on a £400 million turnover. The US company has been repeatedly accused of failing to pay its fair share of tax in the United Kingdom. In addition, the tech giant has been criticized for designating Ireland, and not the United Kingdom, as Google’s official European sales base in order to benefit from lower company tax rates.

Google’s former employee, who turned to be a whistle blower, handed over documents to HM Revenue and Customs to show how the company’s London sales staff would negotiate and sign contracts with UK customers, with cash paid into a British bank account. However, the deals were allegedly booked through Google’s Dublin office in order to minimize its liabilities.

According to the recent Companies House filings, the tech giant also set aside £24 million for taxes associated with shares awarded to staff between 2005 and 2011, in order to comply with new rules from HMRC. In response, Google claimed it was right that the majority of its tax should be paid in the United States. The company’s representatives argued the company made a huge contribution to Britain via investment and jobs.

Google explained that like most multinationals it pays the bulk of its £1.2 billion corporate tax bill where its business originated – the United States. This is a rate of almost 20%, roughly what a Britain-based entity would pay. Google also considers itself a significant contributor to the British economy having created more than 2,000 jobs. The company has invested over £300 million in property in 2013, with tax related to British operations totaled £150 million.

21 October 2013

There Are 430 Million Active Pirates Out There

A recent survey has discovered that online piracy is growing rapidly (well, this wasn’t a news). According to the estimations, 432 million people per month used the worldwide web to access copyright infringing material. Within a month, all these pirates consumed 9,567 petabytes of illegal content, mostly via BitTorrent. To put it simply, about 25% of all Internet traffic is attributed to piracy.

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The conclusion of the report was also nothing new – despite anti-piracy policies and enforcement actions, piracy cannot be stopped. The researchers admit that the practice of infringement is “tenacious and persistent”. Sometimes the industry succeeds in limiting infringement, but not for long. At the moment, the piracy universe not just persists in attracting more users, but also hungrily consumes increasing amounts of bandwidth.

Among the most visible trends the observers point at direct download “cyberlockers” losing plenty of visitors within the last couple years, while other platforms, on the contrary, expanded their user bases. So, within 2012, the number of pirates using cyberlockers decreased by 8%, and the most obvious reason for this is MegaUpload shutdown. In the meantime, the number of file-sharers using BitTorrent and video streaming platforms grew by 27% and 22% accordingly.

Today most illegal file-sharers use direct download and torrent services, both accounting for 200 million unique users per month. This figures excluded users who never download any infringing content, and their share is only 4% for BitTorrent and 8% for direct download services.

The total bandwidth generated by illegal file-sharers in Europe, North America and Asia-Pacific is estimated at over 9,500 petabytes of data – so, you can guess that global traffic far exceeded 10,000 petabytes. Here BitTorrent is the absolute leader, and this makes sense – people both download and upload content, thus generating twice as much traffic. At the same time, cyberlocker users downloaded relatively little data – about 338 petabytes per month.

Talking about regional trends, direct download services are preferred in the Asia-Pacific region, and BitTorrent is popular in Europe and North America. Although there is no clear way these numbers could be translated into losses for the entertainment industry, the latter will undoubtedly leave no opportunity unused to turn the results of the survey to its advantage.

Thanks to TorrentFreak for providing the source of the article

Free Software Foundation Turns 30

Richard Stallman, recognized worldwide as free software guru, president of the Free Software Foundation and a person who started the development of the free software operating system GNU nearly 30 years ago.

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As you know, the GNU/Linux system is used on tens of millions of devices these days. Stallman also established the League for Programming Freedom. The latter campaigned against legal threats to programming.

Richard Stallman explained that it is now thirty years since he started the campaign for freedom in computing. According to his words, since he started, the IT scene has changed dramatically – today most people in advanced countries own PCs and smartphones which can be like computers.

However, he is still worried that non-free software makes users surrender control over their computing to someone else. Actually, the situation has become worse because of Service as a Software Substitute (SaaSS), which means allowing someone else’s server do your own computing activities.

This was all highlighted by the PRISM scandal, revealing that non-free software and SaaSS are able to spy on the user, shackle the user, and even attack the user. Stallman admitted that malware was common in services and proprietary software apps because people don't have control over them.

In the meantime, free software is controlled by its users. Therefore, freedom means having control over their own lives. Nevertheless, Service as a Software Substitute leads to the same injustices as using a non-free app.

In case someone uses a SaaSS translation service, their text is sent to the server. Then the server translates it and sends the translation back to the user. In other words, users are entrusting all the relevant information to the server operator. The latter may be forced to show it to the state under the current law. The scheme is simple: if the users don’t control the software, the software controls the users.

Richard Stallman was also talking about another difficulty: non-free software forces other people to use it as well. For example, if you use the non-free Skype app, another person has to use it as well, thus surrendering their freedoms along with yours.

French Watchdog Threatens Google

It seems that the search giant is tired of getting threats from watchdogs all over the world – every day someone barks at Google. Today France’s data-protection watchdog warned that it is going to impose sanctions against the company, after it missed a 3-month deadline to adjust its privacy policy.
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CNIL, the French outfit, claimed that it had initiated procedures to fine the search engine after Google failed to meet a deadline to fix its policy on how it gathers and uses information. CNIL pointed out that on the final day before the deadline, the search giant contested the request.

The fine of up to $200,000 is insignificant for Google, which made $10.7 billion in profits last year. However, the fine comes as data-protection agencies in the UK, Germany, Italy and the Netherlands are investigating the company’s privacy policy. Google is also facing pressure to adjust its privacy policy in the United States.

A year ago, the tech giant changed its privacy policy in EU to combine over 60 of its services into one. In other words, Google consolidated data collected across the services. This is why consumer groups expressed concern that people might not want the data from those services to be connected.

The French watchdog claimed in June that the company’s new privacy policy was a violation of the local 1978 data protection act. CNIL asked Google to clarify its privacy policy and to modify its data-collection instruments.

Google replied that its privacy policy respects EU law and allows to create simpler, more effective services. The company has engaged fully with the watchdog throughout this process, and is going to continue doing so. The CNIL's move comes in a week when an American judge ruled that the tech giant may violate wiretap legislation when it scans the e-mails of non-Gmail users. This court decision will allow a class action lawsuit against Google, backed by privacy advocates, to move forward.

Judge Lucy Koh also decided that the company’s privacy agreements were less than explicit. She pointed out that a reasonable Gmail user reading the Privacy Policies wouldn’t have necessarily understood that their e-mails were being intercepted in order to create user profiles or to provide targeted advertisements.

UK to Form a Cyber Army

Britain is going to recruit hundreds of computer experts to create a cyber-army. The unit is supposed to defend vital networks against virtual attacks and launch high-tech assaults of its own. The Ministry of Defense announced that the country is spending increasing amounts on defending the people from the threats they are unlikely to ever face.

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Despite the fact that the United Kingdom is broke, it still has the 4th largest defense budget in the world. A large part of this cash is not being spent on cyber intelligence and surveillance. Back in 2012, cyber defenses blocked about 400,000 advanced malicious cyber threats against the government’s secure Internet alone. This shows that the threat is real.

However, the Ministry of Defense points out that building cyber defense is not sufficient, because the United Kingdom also has to deter attacks. The country said that it is going to build a dedicated capability to counterattack in cyberspace and, in case of necessity, to strike. The representatives of the Ministry added that clinical “cyber strikes” could disable enemy communications, nuclear and chemical weapons, planes, ships and other hardware.

It was announced that the British government would recruit a new Joint Cyber Reserve. The “reservists” are supposed to work alongside existing experts in numerous government agencies, including the Ministry of Defense and the extremely unpopular GCHQ surveillance agency.