• Cameras no longer welcome at Occupy Wall Street? Attack highlights conflict

    Tim Pool was live streaming an OWS protest when he was attacked, a move broadcast live on TimCast.TV. Pool talks with Msnbc.com's Dara Brown about the violence and transparency issues facing a changing movement.

    The face of Occupy Wall Street for many of those who've never made it to New York City says he’s under increasing attack from other protesters, and was assaulted recently during a march.

    Tim Pool, a mini-celebrity for giving OWS the Walter Cronkite treatment through his nonstop web-based, TimCast live video stream, was involved in some kind of scuffle at around 9:30 p.m.  Sunday night -- there is, of course, video evidence. On other occasions, marchers have been seen harassing him and yelling for him to turn off his camera.  And there are ominous statements directed at him online, like this one: "I suggest you stick by his side because unfortunately he's probably going to need protection."

    The conflict surrounding Pool raises myriad issues for Occupy Wall Street, as it wrestles with tension between goals of transparency to the public but secrecy to protect members from arrest and to stay one step ahead of police.

    It also reveals some of the fundamental tensions facing journalists covering protests, or anyone wielding a camera in the ever-increasing world of always-on video.

    For his part, Pool doesn't mince words about his predicament.

    "I probably will get severely injured in these next coming months,” he said. “...I pretty much expect to wind up in the hospital. The threats I'm hearing, with words like 'protection' in them, sound awfully Mafioso."

    Pool has been called a snitch who has helped police identify protesters for arrest. But he says transparency is one of the primary goals of Occupy Wall Street and he plans to keep his camera on, no matter what it reveals -- even events that might be counterproductive to the protesters' cause.

    In the early days of Occupy Wall Street, when the protest was confined to and then kicked out of, Zuccotti Park, Pool was treated like a rock star. His live stream was regularly viewed by 10,000 or more Internet users, many of whom were following the movement from across the globe. He was eventually profiled by several major media outlets, including msnbc.com, in a story named “A Ustream star is born”.

    But tensions began to mount during a march in November when protesters let air out of police squad car tires and Pool showed the alleged vandalism on camera, refusing to stop streaming when protesters yelled at him to turn off his equipment.

    Pool straddles a delicate line between being part of the Occupy Wall Street movement and an objective observer. He said he is not actually a member, but also declined to call himself an "outside journalist." 

    “I'm trying to help people understand what's happening and make a clear report," he said. "We cannot rely on the mainstream media to do that."

    But he says some members expect him to show only video that helps the cause.

    "That would be propaganda. ... I don't take orders," Pool said.  "I film what's happening around me. I do it because people need to know what's going on. ... In reality, anybody who throws a bottle should be accountable for their actions. They should be upset at themselves for being in the vicinity of cameras when they do it."

    Pool said he's received veiled threats ever since the November incident, with critics becoming more vocal in recent days. There have even been accusations that he's getting paid by law enforcement.

    On Sunday night,  one such critic shined a light directly into Pool's camera in an effort to block his stream.  Then, a scuffle ensued with another unidentified person. While Pool lost control of the camera, it never shut off.  After about 10 seconds of yelling, someone yelled, "I have Tim's phone (and camera) but I don't know where he is." Later someone shouted, "Someone just attacked Tim."  Moments later, Pool can be heard saying, "He just chopped my arm and smashed my camera. ... The dude hit me because he doesn't want me streaming."

    Bob Sullivan / msnbc.com

    Tim Pool

    (The incident occurs at about the 17:30 timecode on this recording)

    The alleged assailant was wearing a mask, as were many protesters that night, participating in a type of march called a Black Bloc. While some alleged images of him are circulating on the Web, he has not been identified.

    Pool, while shaken, was uninjured and says he would not press charges against the alleged attacker. He also said he won't stop streaming the protests, come what may. 

    In another video from that night, Pool got in a shouting match with protesters who demand that he not show their faces. 

    "Put your f%$#g camera away and get the f%$#g out of here. You have no respect," said one.  A more moderate voice chimes in: "Sir, this would be a lot easier if you would just put the camera down."

    Pool held his ground firmly: "Information is free. ... Transparency is what brings me here. ... transparency prevails.”

    Among Pool’s detractors is Occupy organizer Jason Ahmadi, who recently told “The Atlantic” that "the growing sentiment among people is that Tim, specifically, is putting people in danger and is serving as a tool for the police, whether he’s aware of it or not." Said another, Patrick Bruner:  "Many individuals don’t want to be filmed by him, including me. ... The larger issue is the ethics of filming someone without their permission."

    In the rumor-laden world of Occupy Wall Street, discussions of larger issues can be challenging. One Twitter user recently wrote that Pool "just tried to help NYPD arrest an occupier." There also are claims that the man who attacked Pool was actually a law enforcement official trying to cause trouble -- "it was either that or an anarchist," Pool said.  Of course, it's always possible someone was merely trying to steal his equipment, though that seems unlikely given the context.

    On Tuesday, he spent much of the afternoon trying to beat back claims that he was profiting from his efforts and had already collected nearly $100,000.

    "That's just not true," Pool told msnbc.com, saying donors have given him a little more than $10,000, which he’s using to pay for streaming costs.

    He also said he has no plans to change tactics.  "I do what I do. I stand by my principle in regards to spreading the truth.  I will not compromise. The people deserve the truth above all else."

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  • New airline rules give meaning to price tags; other industries should follow

    Cry as it might about the new federal rules designed to clarify flight ticket prices, the airline industry brought this on itself. The hidden fees and “after charges” encountered by flying consumers had reached such absurdity that one might rightly call them an attack on the English language.

    Witness, for example, Spirit Airlines "passenger usage fee," which adds up to $16.99 to flights purchased online – each way.  The fee’s name implies that buying a ticket costs one price, but actually using it costs extra.  That's absurd.  It's also not quite what Spirit is doing -- the fee is assessed to consumers who purchase tickets through the airline’s Website. The only way to avoid the fee is to buy tickets at the airline's airport counters.  

    Spirit Airlines held "The Weiner Sale" last year, with airfares advertized as low as $9 each way to selected cities.


    Either way, consumers have had enough, and now the Department of Transportation has, too.  Could similar rules for other industries, such as cell phones or pay television, be far behind?

    On Thursday, new consumer-friendly federal Department of Transportation rules kicked in that require airlines to quote prices including all required fees and taxes.  The airlines aren't happy and have filed lawsuits over the requirement.

    But already, consumers should notice the changes. For example, in the past, you might typically see an ad for a $199 one-way fare that in reality cost $245 after security fees, taxes, and other tack-on charges were applied. Now, airlines must use the $245 figure in an ad. (AlaskaAir.com uses this example on its Website.)

    The rules do not require inclusion of "optional" fees, such as checked luggage costs, in the advertised price -- so consumers still have a lot of homework to do when they are shopping around for the best deal on a ticket.

    Still, after years of battling what I've called "The Death of the Price Tag," a phenomenon that makes it nearly impossible for consumers to properly comparison shop for many products and services they buy, there's finally a small reason to celebrate.

    "Now there are no more '$9 fare' sales. Airlines have to advertise the full price," said Christopher Elliot, a travel writer and author of “Scammed: How to Save Your Money and Find Better Service in a World of Schemes, Swindles, and Shady Deals." “(For some airlines) deception has been their business model. It's definitely not only the airlines who were doing this kind of thing, but they have made an art out of it." 

    Chris Schneider / ASSOCIATED PRESS

    Travelers wait in line for security screening at Denver International Airport in this file pic.

    The new rules clean up some other advertised price issues, too. For years, airlines have hawked bargain-basement round-trip tickets by slicing the price in half and publishing a one-way fare -- even in situations where purchase of a round-trip ticket was required. In other words, there was no way to buy something anywhere near the price in the ad. The new rules require prominent disclosure of the round-trip price.

    Edgar Dworsky, who operates Mouseprint.org, cheered the changes and said other federal regulators should consider similar requirements.

    "The car rental industry is notorious for quoting a low daily rates, but when you add up the fees and everything else, the price comes out to 20, 30, even 40 percent above the stated price," he said. He also cited a friend in New York who recently signed up for cable television and Internet service after answering an ad claiming the price would be $99 per month. “His bill was $147. He didn't realize he would be charged extra for a box in every room, and goodness knows what else." 

    Tack-on fees are huge business for the airlines. Domestic carriers collected nearly $5.7 billion in baggage and change fees alone in 2010, according to Consumers Union. So naturally, the airline industry is hardly going down without a fight. Spirit Airlines is risking the wrath of regulators by railing against the new rules with a large pop-up notice placed on its home page labeled "Warning." The notice accuses regulators of planning to "carry out their hidden agenda and quietly increase their taxes...And if they can do it to the airline industry, what's next?"

    Industry trade associations are also complaining about the change. Steve Lott, a spokesman for the Air Transport Association, has complained in several publications that "basic economics" dictate consumers will shy away from flying because prices appear to be higher.

    In other words, Lott suggests, deceptively low price tags are good for the economy. If that were true, then fixing the economy would be easy -- simply let all retailers cut the price tags they place on items by 50 percent.  

    In reality, price transparency is essential for economic activity, and it's just as likely that more clarity will lead to more purchases, not fewer.

    Sadly, the new airline rules go only half-way toward real price transparency in the airline industry.  The aforementioned Spirit Airlines "passenger usage fee" still rates as optional in this new system, so it would not be included in advertised prices.

    The real solution, says Elliot, is to force airlines to offer up their entire fee schedules to third parties that could create true apples-to-apples comparisons for consumers. 

    "There are still some fees that were traditionally included in the price of the ticket that are, as the industry calls it, 'unbundled,’ now,” he said. "What would be great is if there were some way of forcing them to release data to the outside world, to online travel agencies, so they could build a fare tool that would include all of that."

    And the simplest form of consumer protection in America would be a rule that simply forbids all firms from advertising a price for any item -- monthly cable service, airplane tickets, or a telephone line -- that is impossible to get. The problem is so rampant that many industries, such as auto sales, have adopted twisted language like "out-the-door-price” or “OTD price" to distinguish between fake price tags and real ones.  The Department of Transportation has taken one small step in this direction; other regulators should take notice.

    Other friendly features of the new DOT airline regulations:

    *Consumers now have 24 hours to cancel flight purchases without penalty, as long as the flight is at least seven days in the future.  That will give consumers extra time to shop around for prices; it will also allow them to get out of bookings made in error. Some airlines already extend such refunds to consumers as a courtesy; now, they all have to do it.

    *Also, airlines must display baggage fees on the first screen of Websites containing a fare quotation for a specific itinerary, and must show the fees on ticket confirmation notices, too, the DOT says.

     

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  • What if a virus infected a virus? 'Frankenware' spotted by security firm

    What if two computer viruses got together on your computer and had a baby? 

    It does happen, says security firm BitDefender, and the result is more mutant than mutt. The firm has taken to calling the third, new piece of malware produced by the odd couple — with apologies to Mary Shelley — "Frankenware." The spontaneous software offspring might be dangerously unpredictable, and it can be harder to defend against, BitDefender says.

    There are so many computer viruses flying around out there that they can't help bumping into one other while wreaking havoc on our computers. In fact, virus writers account for this. In order to protect and defend a hard-won compromised computer, some virus writers actually install their own antivirus programs after they infect a PC. That way, another bad guy can't come along and hijack an already hijacked machine, said Catalin Cosoi, head of the Online Threats Lab at BitDefender, based in Romania.


    But what happens when an already-infected machine is attacked by a virus that inserts code into every executable file it finds on a machine? What if a virus infects a virus?

    In rare cases, says Cosoi, a third virus with unpredictable capabilities is created. But it's not that rare: His firm recently searched 10 million pieces of malicious software and found 40,000 distinct examples of this. 

    "As with evolution, these things happen accidentally," he said. "The combination doesn't usually work, but sometimes it does."

    It helps if the two pieces of malicious software have complementary features, he said — for example, if one is a keylogger while the other is designed with a wormlike ability to propagate quickly.

    The good news is that, generally, such hybrid viruses can be easier to detect than their parents, because antivirus software that uses "signature" definitions — which identify malicious programs by looking for telltale lines of computer code — have "twice the chance" to detect the troublemaker. On the other hand, some other virus detection tools might overlook the Frankenware because the new file will be a different size from its parents, Cosoi said. 

    John Harrison, a product manager with Symantec, said his firm had never found something like the Frankenware BitDefender is describing, but he did say most PCs that are successfully attacked by virus writers have multiple malicious programs on them. Generally, when a computer has a security vulnerability, the secret doesn't last long, and a hacker feeding frenzy follows.

    "We've seen computers with 25 different pieces of malware on them, even more," he said. "They are often stealthy. ... By the time the user notices the PC has slowed down or there's a blue screen, it could be the 100th piece of malware." 

    So the idea that two such programs could collide and accidentally create a hybrid isn't that far-fetched. But the real question is: Could such Frankenware pull a Frankenstein and wreak unexpected havoc on the real world?

    Cosoi wasn't ringing any alarm bells. Virus writers do what they do for money, and this kind of random, destructive interaction wouldn't profit anyone. For that reason, he thought all the incentives in the computer underworld would probably be enough to limit such possibilities. In other words, virus writers will probably work to prevent such an occurrence because it would hurt their business.

    And, most important, nothing of the sort has been discovered. The 40,000 Frankenware samples that BitDefender has found are no more dangerous than their "parents."

    However, it's important to note that virus writers, even if they seem quite professional in their craft, hardly undertake rigorous product testing. Mistakes happen.

    "If you throw a bunch of malware on a computer, that doesn't automatically mean it will create new malware and it rarely works," he said. "But when it does, it could be dangerous. I can see how a new kind of malware that spreads faster and is more viral than any of the two (parents) ... could turn into something more dangerous."

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  • Google's privacy policy change: What the fuss?

    UP FOR DISCUSSION

    Because Thursday is Data Privacy Day, and thanks to Google's new privacy policy, Tuesday was “You’ve Lost More Privacy Day,” Helen Popkin and I began a dialog, one that will continue tomorrow in an open chat with readers.

    From: Helen Popkin
    To: Bob Sullivan
    Given that the privacy policies for all Google products just got put in a BlendTec, and Facebook, Twitter and MySpace programmers have put together the “Don’t Do Evil” search engine, is it time to talk about what Google is really risking here?

    -------

    From: Bob Sullivan 
    To: Helen Popkin

    I have two immediate thoughts.

    1) I think most users believed this “shared across all Google properties” thing was already true.  I mean, maybe you don’t quite connect YouTube video with Gmail ... but your Gmail ads already “read” your email. So what if they reflect recent videos you’ve watched, too?  I think this idea of data sharing across divisions is standard across financial services companies (why Bank of America customers get offers from Merrill Lynch). In other words, is this *really* new? Remember the old Larry Ponemon privacy interest scale which says that 60 percent of Americans say they care about privacy, but their actions belie their words; 33 percent say, “I have nothing to hide?” and only 7 percent are really privacy activists willing to take steps to protect their privacy. I suspect most users won’t notice this change, or if they do, it won’t be enough to nudge them to change their search engine habits.

    2) The risk Google is taking here — and I think it’s a big one — is in blending Google Plus contributions with its search algorithm. Google Plus is still largely populated by early adopters, and many of them went there seeking greater privacy controls than Facebook had at the time G+ launched. Now, many avid social networkers there feel betrayed. While the general population tends to forget such insults, early adopters do not.  Many of them are privacy activists, and it’s very bad form to anger your early adopters. On the other hand, SearchEngineLand.com’s Danny Sullivan says that most of the frustration on this point isn’t from Google users — who haven’t complained much at all — but rather from wonks who are raising issues about it. (Read more about this issue here.)

    3) OK, a bonus thought. At a time when Facebook is offering more granularity in its privacy settings (such as they are), Google is killing granularity here. Couldn’t you see some people being OK with all this sharing as long as YouTube wasn’t included? What about the contents of Google docs? If a user finds any of this spooky, there’s nothing he or she can do about it. And that’s trouble. 

    4) OK, bonus thought two: There’s a steady, sad progression where companies like Google and Facebook encroach more and more on privacy, see what kind of firestorm they have to endure, and then try something else. I fear they are learning that the bar for really causing a cause celeb online is very, very high. Bit by bit, these large Web companies are becoming more emboldened by each incident like this.

    5) Last bonus thought. I wonder if Google’s positive vibes from SOPA (“Hey, those Google folks stood up for us against the government!”) will afford the firm a partial mulligan for this.

    ---- 

    From: Helen Popkin
    To: Bob Sullivan

    1) Blah blah blah. If we really cared about protecting our personal information, "password" wouldn't be a popular password and IT managers wouldn't have to enforce regularly changed and increasingly complicated log-ins that require both lower-case and capped letters, numbers, some sort of punctuation, and, I predict in the near future, wingdings. What we really want is a fat lady in a painting to guide us through our stuff, like them lucky kids in Gryffindor, but I digress.

    Your average technology layperson won't care about Google's user data and privacy policy integration until #GoogleIsEvil starts trending on Twitter.

    2) Re: "The risk Google is taking here – and I think it’s a big one — is in blending Google Plus contributions with its search algorithm." See above.  

    That said, Google is for sure getting desperate — hence collating its user data and privacy policies into one super product, while screwing other social networks via its new social search. "Facebook" is increasingly replacing of "Just Google it," in how we operate on the Internet,  and Facebook is capitalizing on its increasing presence as a portal of information by actively courting news outlets, as well as other sorts of information sites — along with e-commerce, of course — to create a strong Facebook presence to attract clicks.

    3) Re: Granular privacy settings. Many people are still operating under Facebook's default settings (which are open to share the most of your info). We like privacy as an idea but in reality, we barely notice. It's a fact of Internet life people are already inured to — the Antiqued Pine Provence Bed, handcrafted in vintage pine reclaimed from floor joints of early 20th-century Midwest barns, which I'll never buy nonetheless haunts via ads on most any non-ecommerce website I visit hours after I leave the Sundance Catalog website where it lives, just because I clicked on the ugly-ass, overpriced  thing once. Once! (Ok, maybe twice.)  Such benign following we hardly notice, and it's right in our face.

    It's not new that your Google search results are impure — your results are already based on your previous Internet behavior. Google's social search just makes that gated Internet community even smaller. Facebook, for all its Google smack talk, does the same thing. People are getting more and more of their information from Facebook, but what we see first on Facebook is based on our clicking behavior on that site, and off as well, depending on how much you've locked down your Facebook privacy.  

    4) Google, Facebook etc., are always seeing what they can get away with. Check out how much both those companies are increasingly spend on D.C. lobbying budgets. Google spent $9.7 million on lobbying in 2011, up 88 percent from 2010. Facebook spent comparatively modest $1.4 million — but it's a 284 percent more than Facebook's 2010 lobbying budget.

    Neither of those amounts are insane compared to other monoliths — Big Pharma is in the triple-digit millions — but those budgets gets bigger every year. Corporations that lobby are also more likely to spend money to get legislation to bend their way than to actually throw it in to something that benefits their customers.

    5) Will Google lose its positive SOPA vibes? Sure, if Facebook has its way. As we saw with SOPA, if you rile up the masses via viral Facebook posts and trending hashtags, anything's possible. As you've already mentioned, Facebook, working with Twitter and MySpace (tee-hee), built a search bookmarklet to circumvent Google's social search — which throws those sites to the dogs — and called it "Don't Be Evil," mocking the guiding principal Google famously declared early on. Oh snap Facebook, Twitter and MySpace!

    It's not the first time Google's had this thrown in its face, but "evil" is exactly what grabbed everyone's attention with SOPA, if another company can make "evil" stick to its competitor, what better way to sway public opinion.

    Helen A.S. Popkin goes blah blah blah about privacy and then asks her to join her on Twitter and/or Facebook. Also, Google+. Because that's how she rolls.

    Here’s a lot more reading material on Don’t Do Evil and the rest of the issues raised by Google’s announcement:

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  • Supreme Court rules on GPS tracking, but punts on larger issues

    Monday’s Supreme Court ruling invalidating a conviction based on evidence gained by GPS tracking of a suspect's car might seem like a victory for privacy advocates. But on the critical issues of privacy and Fourth Amendment rights, the majority of the court actually punted. 

    The unanimous opinion issued Monday morning is among the first in which the Supreme Court has decided a case at the thorny 21st-Century intersection of law, technology and privacy.  Police in Washington, D.C., had tracked a suspect by placing a tiny GPS device on his car, then tracking his movements for about a month. While the trial court held that evidence obtained through the GPS amounted to surveillance of the suspect's movements through public spaces, an appeals court ruled that it constituted an illegal search and seizure and a violation of Fourth Amendment rights.  The Supreme Court affirmed the decision. 

    There was a remarkable amount of disagreement, however, in this unanimous decision. The court issued perhaps the narrowest ruling possible -- essentially that placement of the GPS on the car constituted a violation of property and effects rights, akin to trespassing, therefore spoiling any evidence garnered through the process.  Left undecided: What rights do citizens have when law enforcement uses other technological methods to track their whereabouts?

    Justice Sonia Sotomayor, while concurring with the decision, delivered a separate opinion dripping with disappointment.

    "With increasing regularity, the government will be capable of duplicating the monitoring undertaken in this case by enlisting factory- or owner-installed vehicle tracking devices or GPS-enabled smartphones. In cases of electronic or other novel modes of surveillance that do not depend upon a physical invasion on property, the majority opinion’s trespassory test may provide little guidance," she wrote.

    Electronic law expert Mark Rasch, former head of the Justice Department's Computer Crime unit, said the opinion has "almost given carte blanche to law enforcement to go ahead and try to find their way around" the ruling, such as enlisting the help of cell phone providers to track citizens in their cars.

    Sotomayer clearly regretted that the majority did not take the opportunity to make a more definitive ruling on privacy and Fourth Amendment rights, Rasch said. In her opinion she raised the complex issue of law enforcement agencies increasingly using private firms to aid in surveillance and evidence gathering. Rules governing evidence originally obtained by third parties are unclear, but generally offer fewer rights that rules governing law enforcement investigative techniques.

    "This approach is ill suited to the digital age, in which people reveal a great deal of information about themselves to third parties in the course of carrying out mundane tasks," Sotomayer wrote. "People disclose the phone numbers that they dial or text to their cellular providers; the URLs that they visit and the e-mail addresses with which they correspond to their Internet service providers; and the books, groceries, and medications they purchase to online retailers. … I for one doubt that people would accept without complaint the warrantless disclosure to the government of a list of every website they had visited in the last week, or month, or year."

    Justice Samuel Alito also seemed frustrated by the court's failure to take on the deeper issues raised in the GPS tracking case.

    "(This opinion) largely disregards what is really important (the use of a GPS for the purpose of long-term tracking) and instead attaches great significance to something that most would view as relatively minor -- attaching to the bottom of a car a small, light object that does not interfere in any way with the car’s operation,” he wrote in a concurring opinion.  "By contrast, if long-term monitoring can be accomplished without committing a technical trespass — suppose, for example, that the federal government required or persuaded auto manufacturers to include a GPS tracking device in every car — the court’s theory would provide no protection."

    The Justice Department had asked for even more sweeping evidence-gathering rights. It argued that placement of the GPS device on the suspect's car was akin to other forms of electronic evidence-gathering that the court has already allowed. The most analogous situation, the Justice Department argued, was placing a homing beacon, or "beeper," in a device that is given to a suspect – for example, in the case cited by Justice, when illicit chemicals with a beeper attached were sold by a cooperating witness to a suspect.  But such beepers are placed into property with the permission of a third party and then accepted voluntarily by a suspect. That differs greatly from law enforcement attaching a gadget to a suspect's car, the court found. That makes the act less like surveillance and more akin to a search, affording it Fourth Amendment requirements.

    "The government physically occupied private property for the purpose of obtaining information," Justice Antonin Scalia wrote. "We have no doubt that such a physical intrusion would have been considered a 'search' within the meaning of the Fourth Amendment when it was adopted."

    Scalia was comfortable stopping there.

    "It may be that achieving the same result through electronic means, without an accompanying trespass, is an unconstitutional invasion of privacy, but the present case does not require us to answer that question," he wrote, in a direct answer to Sotomayer's complaint. "There is no reason for rushing forward to resolve them here."

    Rasch found deep faults in Scalia's logic. Police "attach" things to citizens' automobiles all the time. Parking tickets, for example, or chalk marks as a reminder to meter maids that cars may have exceeded hourly requirements. The act of installing something on a car is not itself trespassing, he argued – it’s the act of using such a device to track a citizens' movement over time without a warrant that raises constitutional issues. 

    "'Hands off my car,' is the best way I can put this ruling," he said, adding that he thought the court had failed by issuing such a narrow ruling.

    "They've avoided the issue. They were asked to address the Fourth Amendment issues, and they decided a trespassing case," he said. "You don't need the Supreme Court for that." 

     

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  • Stop pirating my stories about SOPA, or I'll have to support it

    SOPA – Maybe I’m for it after all.

    I’m as adamant a supporter of Web free speech as you’ll find. And there’s a lot to dislike about the Stop Online Piracy Act. But when my stories about Web free speech are stolen and posted in their entirety by “rogue” websites, my head hurts. Stealing content is a funny way to prove your anti-SOPA credentials.

    Opponents of controversial anti-piracy legislation called SOPA have been gaining momentum in the past week, and on Wednesday, their show of muscle reached orgasmic proportions.  Perhaps swept up in the excitement of a protest that seems to be working, a long list of websites copied in its entirety a story I wrote about it over the weekend and placed it on their own sites. Here’s one example, viewed early Wednesday afternoon.

    Sure, msnbc.com’s name appears there, but the Web site in question gets the clicks and the revenue.  Not fair, I’m sure you’d agree.

    For good fun, this “pirate” version seems to have been run through a translator, and back again. So my, “Opponents of controversial federal anti-piracy legislation known as SOPA seem to be picking up steam,” has been mangled into, “Opponents of argumentative sovereign anti-piracy legislation famous as SOPA seem to be picking adult steam.”

    It’s the people who steal content and claim they are protected by free speech who are full of adult steam, otherwise known as hot air. I have no patience for Internet users who copy movies, music or software whole-hog, share it with their friends for free and then cry foul at efforts to stop this.

    Of course, I haven’t been singled out for story theft.  You can find rogue copies of almost every msnbc.com story – and any NYTimes.com, and any CNN.com story – all over the Internet. I’m not talking about “aggregated” versions, which are gently rewritten copies of someone else’s work, made famous by the Huffington Post. I mean total rip-offs. 

    I’m not in favor of SOPA. Blacklisting entire domains is a terrible idea that seems to have been beaten back by reason. Jailing alleged pirates would be Draconian in most cases.  Using the U.S. Justice Department to enforce multinational corporations’ intellectual property rights through the criminal court system makes me queasy.  Placing the burden of proof on small websites to show they aren’t violating copyrights is a dangerous turnabout of U.S. law. And perhaps most important, it’s highly doubtful that SOPA would be effective in stopping the kind of content theft I’m writing about here.

    For a little more explanation on the reasons SOPA would have done more harm than good, I asked San Diego State University information systems teacher Robert Gillespie, about problems he sees with its enforcement mechanism.

    "SOPA ... would leave a great deal of elbow room for interpretation, which is why so many corporations fear the ramifications of its passing," he said. "It can be implemented with far reaching effects.  For example, if some media site republished a New York Times article without permission, not only can they go after the site in question, but they can make the search engines (Google, Yahoo, Bing), any add networks, and various other connected business entities (such as ISP, domain, and website host providers) cease connection with the website in question...This is a bludgeoning tool that is imprecise and clumsy when in the wrong hands. "

    So thank goodness, SOPA in its original form appears dead. But if you don’t think there’s a piracy problem, you’re not paying attention.

    How bad is it?  Even U.S. Senators steal content for their websites. (Though I am flattered, Sen. Bernie Sanders. I was proud of that story.) By the way, Sanders’ position on SOPA is unknown.

    Photographers have been fighting this battle for years, and are doing a relatively good job of using watermarks and other technologies to enforce their rights. In fact, a cottage industry of photography IP lawyers has grown up around the problem, sending bills and other demand letters to photography infringers. (See a discussion of this in “When is sharing, stealing?”) Writers, so far, have gotten nowhere.

    You could argue, of course, that imitation isn’t just flattery – it’s actually good business in the Digital Age. If enough people copy your stories, eventually that comes back to you in a social network-y,  wisdom of crowds-y, long tail-y kind of way.  Except in rare cases, I don’t buy that.  The math just doesn’t add up.

    The real problem is Web culture that suggests everything is free, or should be free. That’s just not a grown-up way of looking at the world.

    So tonight, while you’re patting yourself on the back for being a part of a genuine Internet movement that has successfully influenced Congress –  an impressive feat, mind you –  know that there’s much more work to be done.  Tell a friend they should link to a story instead of copy a story onto a blog.  Because if we don’t find a reasonable way to protect intellectual property rights, you can bet an unreasonable one will rear its ugly head again soon.

    Msnbc.com is a joint venture of Microsoft and Comcast/NBC Universal. Microsoft publicly opposes SOPA in its current form, while Comcast/NBC Universal is listed as a supporter of SOPA on the House Judiciary Committee website.

     

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  • Zappos says hacker may have accessed info on 24 million customers

    Online retailer Zappos.com is telling 24 million customers that their personal information has been hacked, and forcing all of them to reset their passwords.  Cyber criminals may have accessed customers' names, e-mail addresses, billing and shipping addresses, phone number, and the last four digits of consumers' credit card numbers, the firm said in an announcement that was posted on Zappos' Web site late Sunday night.  Full credit card numbers were not stolen, the firm said, because they were stored separately.

    The announcement included the text of an e-mail that Zappos customers will soon receive.

    "We were recently the victim of a cyber attack by a criminal who gained access to parts of our internal network and systems through one of our servers in Kentucky. We are cooperating with law enforcement to undergo an exhaustive investigation," says the e-mail,  which is signed by Tony Hsieh, Zappos CEO. "For your protection and to prevent unauthorized access, we have expired and reset your password so you can create a new password. Please follow the instructions below to create a new password.  We also recommend that you change your password on any other web site where you use the same or a similar password."

    While passwords that may have been stolen were cryptographically scrambled, Zappos said, it is still requiring all consumers to change their passwords. Zappos also recommends that consumers who use their Zappos password on other sites — a common, if unsafe, practice — should change those passwords, too.

    Zappos has set up a special Web page for customers to visit and change the password: http://www.zappos.com/passwordchange.

    Anticipating a flood of customer service calls in response to the notification e-mail, Zappos is taking the unusual step of turning off its customer service telephone lines and forcing consumers with questions to send them in via e-mail.

    "Due to the volume of inquiries we are expecting, we realized that we could serve the most customers by answering their questions by email," Hsieh said in a note to employees, also posted on the firm's Web page. "We have made the hard decision to temporarily turn off our phones and direct customers to contact us by email because our phone systems simply aren't capable of handling so much volume. (If 5% of our customers call, that would be over 1 million phone calls, most of which would not even make it into our phone system in the first place.) "

    Hsieh said the firm would have "all hands on deck," to help customers with questions.

    Judged by the number of customers impacted, Zappos' data breach is among the biggest thefts of customer information ever, but still considerably smaller than last year's incident involving the Sony Play Station Network, which reportedly impacted 77 million customers.

    Hsieh struck an apologetic tone in both the e-mail to consumers and the memo to staff.

    "We've spent over 12 years building our reputation, brand, and trust with our customers. It's painful to see us take so many steps back due to a single incident," he said in the memo. "I suppose the one saving grace is that the database that stores our customers' critical credit card and other payment data was not affected or accessed."  

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  • As Google, Wikipedia join protest, SOPA opponents gain momentum

    UPDATED Jan. 18, 12:20 p.m. ET -- Opponents of controversial federal anti-piracy legislation known as SOPA seem to be picking up steam.  Supporters of the legislation in both houses of Congress appear to have backed off, the Obama administration has expressed concerns with the legislation, and an Internet blackout slated for Wednesday is well under way, spearheaded by Wikipedia.

    A House subcommittee was slated to prepare the Stop Online Piracy Act, or SOPA, for a vote later this month; the Senate had planned a vote on the companion bill, PIPA (The Protect IP Act,) even sooner. Now, it appears both votes will be delayed.

    SOPA opponents rallied around an effort to call attention to the legislation by convincing Web sites to "go dark" on Wednesday, and display only a simple message of protest on a black background.  On Monday, Wikipedia co-founder Jimmy Wales announced that his website will go dark for 24 hours starting at midnight ET Tuesday, following the lead of other high-profile promised blackouts.  Reddit.com went black for 12 hours starting at 8 a.m. on Wednesday. The hacker group Anonymous also encouraged others to join in the 12-hour blackout, and garnered a lot of attention with its Twitter post using the hashtag #BlackoutSOPA.

    Google did not black out its site, but it covered its trademark Google logo in black and included a link to a page titled "End Piracy, not Liberty."

    Meanwhile, several signs point to SOPA legislation hitting some serious speedbumps.  On Saturday, a statement issued by White House cyberczar Howard Schmidt, and other administration technology officials, threw cold water on SOPA's anti-piracy efforts.

    "Our analysis of the DNS filtering provisions in some proposed legislation suggests that they pose a real risk to cybersecurity and yet leave contraband goods and services accessible online," says the response, referring to SOPA's proposal to allow law enforcement officials to blacklist Web sites -- cut them off from U.S. users -- that allegedly encourage piracy. The response, posted at WhiteHouse.gov on Saturday, does not take a position on SOPA, but it cautioned lawmakers that the administration will oppose anti-piracy efforts that might increase censorship.

    "Any effort to combat online piracy must guard against the risk of online censorship of lawful activity and must not inhibit innovation by our dynamic businesses large and small," the memo reads.

    In Congress, supporters of the legislation have recently indicated they are open to changing their proposals.

    Late Friday afternoon, Rep. Lamar Smith (R-Texas), said he planned to tone down the enforcement powers that would be granted by the proposed Stop Online Piracy Act (SOPA).  A new version would not include the most controversial provision, which would have enabled federal authorities to "blacklist" domains that were alleged to be involved in distribution of pirated content, effectively cutting portions of the Web off from all U.S. users.

    "After consultation with industry groups across the country, I feel we should remove Domain Name System blocking from the Stop Online Piracy Act so that the Committee can further examine the issues surrounding this provision," Smith, one of SOPA's chief backers, said in a statement. "We will continue to look for ways to ensure that foreign websites cannot sell and distribute illegal content to U.S. consumers."


    The move comes after a similar step taken on Thursday by Sen. Patrick Leahy (D-Vt.), sponsor of the Senate version, PIPA. Leahy said complaints from "human rights groups, engineers, and others" had convinced him to change his thinking on the bill.

    "I remain confident that the ISPs — including the cable industry, which is the largest association of ISPs — would not support the legislation if its enactment created the problems that opponents of this provision suggest. Nonetheless, this is in fact a highly technical issue, and I am prepared to recommend we give it more study before implementing it," he said in a statement on his website.

    "As I prepare a managers’ amendment to be considered during the floor debate, I will therefore propose that the positive and negative effects of this provision be studied before implemented, so that we can focus on the other important provisions in this bill, which are essential to protecting American intellectual property online, and the American jobs that are tied to intellectual property.  I regret that law enforcement will not have this remedy available to it when websites operating overseas are stealing American property, threatening the safety and security of American consumers."

    While Senate debate on PIPA is slated for later this month, advocacy group Public Knowledge said on Friday that it believed debate on SOPA was going to be postponed until February. 

    Either way, removal of DNS blacklisting provision is unlikely to satisfy critics of Congressional anti-piracy efforts. They find other provisions — such as the ability for the Justice Department to cut off payment processing for alleged "rogue" websites — to be nearly as problematic.

    "The DNS filtering provisions represent only some of the fundamental flaws in PIPA," the Electronic Froniter Foundation said in a statement to Geek.com. "This bill, and its House counterpart, cannot be fixed — they must be killed."

    Meanwhile, discussions about SOPA hung over the annual CES geek-fest, held this week in Las Vegas. At the trade show, Rep. Darrell Issa (R-Calif.) talked up his legislative alternative to SOPA, the OPEN Act, or Online Protection and Enforcement of Digital Trade Act. He also promised to hold hearings next week on the issue. (For more, see this story.)

    Msnbc.com is a joint venture of Microsoft and Comcast/NBC Universal.  Microsoft publicly opposes SOPA in its current form. Comcast/NBC Universal is listed as a supporter of SOPA on the House Judiciary Committee Web site.

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  • Who's most gullible online and why? Secrets from scam world revealed

    Think grandma and grandpa are the most likely to fall for Internet scams? Think again, suggests a study on gullibility released earlier this month. 

    Younger, less educated, underpaid Americans are the group most likely to fall for schemes of digital criminals peddling fake charities, rogue antivirus software or myriad other cons, the survey indicates. Middle-class earners are less likely to be victims, but folks earning more than $200,000 annually seem to be almost as gullible those living below the poverty line, it found.

    Brits and Australians are more skeptical than their American counterparts, says the study, released by security firm PC Tools and survey firm The Ponemon Institute. Only those three nations were studied.


    The vulnerable age result might surprise those used to the caricature of older folks who fumble their way through e-mail and Web pages.

    "My gut tells me this is really surprising," said Larry Ponemon, who runs The Ponemon Institute. "Just with my own children, they grew up with technology. They are a lot smarter with these things, I thought. For me, it was a counterintuitive result. We found that in the UK and Australia as well."

    But Stephen Greenspan, author of “Annals of Gullibility: Why We Get Duped and How to Avoid it,” said the young and uneducated are always the most vulnerable group because they often haven’t fully developed their skepticism sensors.

    "As dumb as it is, a lot of people have responded (to an e-mail scam)," he said. "The biggest thing is how likely someone is to see through it."  

    The study required a lot of self-reporting by victims on their own behavior, so its results should be taken with a grain of salt. Still, Greenspan said many of its findings were consistent with other research he's seen.

    The survey found that scams involving a free prize or free antivirus software were the most successful with Americans, while online charity scams were only about half as likely to find victims. It also found that Americans in the Northeast and Southwest were most likely victims, while Midwesterners and residents of the Pacific Northwest were the most skeptical.

    "I live in Michigan.  People here feel they have horse sense that have may not exist in other parts of the country," Greenspan said.

    The study even waded into political territory, finding that Republicans and Democrats were about equally likely to be victims, while members of some "alternative" parties, like the Tea Party or the Green Party, rated better.  Independents were found to the most vulnerable.

    The most susceptible target victim of all is a woman between 18 and 25, who lives in the Southwest, earns between $25,000 and $50,000 and doesn't hold a high school degree, the study says.  The most scam-proof demographic are is males aged 56 to 65 who've earned an advanced degree, live in the Midwest and earn between $150,000 and $200,000.

    The study asked participants to rate how likely they were to fall for various scams, and also how likely they felt others in their demographic were to fall victim. Perhaps the most interesting finding in the study is how critical Americans are of other Americans' critical thinking.  In every category, Americans thought their compatriots were much more likely to fall for scams than Brits or Australians thought their countrymen to be.  Sixty-two percent of Americans, for example, believed other Americans would give a scammer their credit card number in exchange for a get-rich-quick opportunity, compared to just 43 percent of Australians.

    "There is a sense in other parts of the world that Americans are naive," said Rich Clooke, a PC Tools spokesman.

    The nations also differ radically when asked to define the best internal fraud-fighting tool. Americans seem to think they can outsmart con artists, as they ranked intellect (33 percent) as more important than natural skepticism (16 percent). Australians felt the opposite, ranking skepticism (38 percent) much higher than intellect (16 percent).

    The number of survey takers who admitted they might fall for scams was surprisingly high across the board, Ponemon said.  Despite constant media attention to the problem, 53 percent of Americans thought they might click and download booby-trapped antivirus software.  Nearly 50 percent said they'd surrender personal information to download a free movie, and 55 percent said they'd give a potential scammer their cell phone number for a chance at a prize.

    "People knew this was a survey about scams. ... You'd think they'd report themselves as less likely to fall for things," Clooke said. "I really think that complacency, not stupidity, is driving some of these results. Some people may have focused their lives around their computer and Facebook relationships (so) that they lose track of what's real."

    Or, perhaps Internet users are finally getting the message that anyone can fall for a scam under the right circumstances.

    "We all think we're better lie detectors than we are," said Greenspan, the gullibility expert. said.  He would know. He was a victim of Bernie Madoff's Ponzi scheme and lost about 30 percent of his retirement money when he invested in a Madoff feeder fund, persuaded by a friend who was a salesman for the fund.

    Greenspan categorizes gullibility under a larger group of what he calls "foolish behaviors," and says four things contribute to someone being foolish at a particular moment: situation, cognition, personality and emotion. 

    Situation usually involves our natural human tendency to move in packs and do what everyone else seems to be doing. Who wants to be the only person not making money during a booming stock market?

    Cognition -- the ability to think through a potential scam -- can abandon potential victims. People of above average intelligence often fail to use that intelligence when conducting everyday business, like deciding whether or not to click on an e-mail.

    Personality matters, or course.  Some people simply have weaker personalities that others, and are more susceptible to the power of suggestions. 

    Meanwhile, emotion is almost always a tool of con artists. They'll urge you to act now because time is limited. They will wear you down with a lengthy sales pitch so you ultimately agree to purchase a time-share that you'd never buy if you were well-rested.

    "You can make the point that the brain is (like a) muscle, and when it's tired, it doesn't function as well," Greenspan said. "That's where willpower fails.  It takes energy to resist."

    One scam-proofing tactic suggested by Greenspan's model: Don't read e-mail late at night, or, at least, don't answer e-mail at night.

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  • The gray cloud hanging over CES: Anti-piracy law SOPA pits tech vs. tech

    Amid the glitz and glamour of Consumer Electronics Show, a grey cloud hangs over the annual geek-fest in Las Vegas: The future of controversial anti-piracy legislation known as SOPA, which threatens to cause a bit of a civil war among technology firms, pitting content firms against distribution companies.

    A staunch opponent of the Stop Online Privacy Act, or SOPA, Rep. Darral Issa spoke at the show Wednesday, and announced plans to hold a hearing Congress on Wednesday, Jan. 18 that would give SOPA opponents a high-profile platform for their concerns. Meanwhile, Jan. 18 will apparently be the day part of the Internet goes dark for some. Reddit.com plans a black-out to call attention to SOPA that day, and others are following suit.

    Meanwhile, Sen. Patrick Leahy (D-Vt.), sponsor of the Senate companion bill to SOPA, called The Protect IP Act, or PIPA, on Wednesday seemed to back off one of the legislation's most controversial elements -- the ability for law enforcement to shut down so-called "rogue websites" by making them inaccessible through the Web's domain name systems.  Leahy said in a statement on his website that he would be willing to delay that portion of the legislation's enforcement provisions. 

    SOPA's supporters say the bill would give intellectual property rights holders -- such as TV studios -- a powerful new tool to protect their creative works. But opponents say it would allow federal authorities to shut down entire portions of the Internet without due process, and fundamentally alter the Internet's ability to provide a platform for free speech.

    For complete CES coverage, click here

    Strange bedfellows Issa (R-Calif.) and Sen. Ron Wyden (D-Ore.) jointly held a press conference Wednesday at CES, calling SOPA and its Senate companion The Protect IP Act (PIPA) a legal quagmire. Issa said SOPA was "massive legislation that would be expensive (and) hurt the Internet."

    Issa's hearing before the House Committee on Oversight and Government Reform will be heavy on testimony from SOPA opponents. Lanham Napier, the CEO of Rackspace Hosting, and Alexis Ohanian, co-founder of Reddit.com, will reportedly appear.

    That day, Reddit says it will essentially go dark from 8 a.m. to 8 p.m., providing only a link to a video stream of the hearing. Wikipedia's Jimmy Wales posted a note on his personal page saying that website might consider a similar blackout. The hacker group Anonymous also encouraged others to join in the 12-hour blackout, garnered a lot of attention with its Twitter post using the hashtag #BlackoutSOPA.

    The Consumer Electronics Association, which operates the CES trade show, is a vocal opponent of SOPA. A panel at the trade show was devoted to arguing the pros and cons of the legislation’s anti-piracy efforts.

    The House Judiciary Committee was slated to revise and prepare SOPA for a vote -- a process called the "markup" -- in December, but the process was delayed one month. The date for a new markup session hasn't been released yet, but it is expected within the next three weeks.  A vote on the Senate version of SOPA, PIPA, is slated for Jan. 24.

    On Thursday, Leahy said complaints from "human rights groups, engineers, and others" had convinced him to change his thinking on the bill.

    "I remain confident that the ISPs – including the cable industry, which is the largest association of ISPs – would not support the legislation if its enactment created the problems that opponents of this provision suggest.  Nonetheless, this is in fact a highly technical issue, and I am prepared to recommend we give it more study before implementing it," he said in a statement on his website. "As I prepare a managers’ amendment to be considered during the floor debate, I will therefore propose that the positive and negative effects of this provision be studied before implemented, so that we can focus on the other important provisions in this bill, which are essential to protecting American intellectual property online, and the American jobs that are tied to intellectual property.  I regret that law enforcement will not have this remedy available to it when websites operating overseas are stealing American property, threatening the safety and security of American consumers."

    Meanwhile, At CES, Wyden and Issa stumped for their alternative to SOPA, which they call the OPEN Act, or Online Protection and Enforcement of Digital Trade Act.

    "I do not believe you can go out and damage the architecture of the Internet in the name of anti-piracy," Wyden said at his press conference, according to Twice.com

    Issa, who ran a technology company before entering Congress, has complained that SOPA supporters in Congress don’t know enough about technology or the Internet to evaluate the legislation. The OPEN Act would take responsibility for enforcing anti-piracy rules away from the federal court system and give it to the U.S. International Trade Commission, a quasi-judicial body that advices Congress on international trade issues and has some enforcement power regarding unfair trade practices, such as product dumping or copyright infringement. The OPEN Act would also tone down some of SOPA’s provisions, such as the ability to quickly blacklist allegedly offending domains.

    It's hard keeping track of who's for and against SOPA, and why the legislation is important in the first place. (Even the Daily Show's Jon Stewart admitted as much during Wednesday's show). Fortunately, there are some tools that can help. A website named SOPA OPERA allows visitors to search members of Congress geographically or alphabetically to see where they stand, based on public statements and other research.

    The website TheoriesofConspiracy.com contains a list of what it says are about 350 companies that support SOPA. Most are media creation companies.

    A more official list of supporters is published on the House Judiciary Committee's website (PDF).

    The Center for Democracy and Technology is maintaining a list of firms that have "expressed concern" with SOPA, including heavy-hitters like Yahoo, Facebook, Google, and Twitter.

    But the battle lines drawn over the SOPA fight can be messy. As msnbc.com’s Kyle Orland has written, some industries -- such as gaming -- are evenly split for and against the legislation.

    For general background on SOPA, Declan McCullagh offers a comprehensive Q&A.

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  • Cordray tells msnbc.com new bureau will help consumers 'muscle up'

    Rich Cordray spent the past six months in the Washington, D.C., version of limbo: an unconfirmed political appointee waiting for a Senate vote on his future employment.  While he wandered around the nation’s capital trying to befriend skeptical Republicans – and wandered around the bureau’s Treasury Department offices in socks – many believed Cordray was destined to wait until November’s presidential election for a definitive up-or-down vote.

    Last week, in a bit of a surprise, President Obama stuck his neck out perhaps as far as he has during his presidency, using a recess appointment to do an end-run around Senate Republicans and install the former Ohio attorney general as head of the new Consumer Financial Protection Bureau.

    In an exclusive chat with msnbc.com on Monday, Cordray offered a quick view of what happens now. The bureau will immediately begin making rules for segments of the financial services industry that had previously slipped through the regulatory cracks, such as payday loans – a situation that Cordray said had created markets where “bad practices drive out the good.”  He also said that consumers who know they have a watchdog on their side will be emboldened to continue "muscling up" against companies, using blogs and social networks to join together and demand fair treatment.  The full, brief interview is below.

    QUESTION: Millions of Americans say they've been cheated by the financial system, and feel that some American markets are unfair. What does Rich Cordray offer to them?

    Answer: "I offer that I share their point of view that financial markets are broken in many ways and have been for long time, and it's high time we had watchdog agency to stand on their side and protect them in the marketplace -- a place where they often feel helpless and confused.


     

    Q:  Describe two or three things American consumers might see immediately now that the bureau can begin its full operations.

    A: "First, we are working to make prices and risks clearer for people, and we are working to make disclosures more simple so that consumers will be better informed, and better able to make comparisons.

    “Second, now that we have full authority to level the playing field between banks and non banks, you'll see some markets that were operating in a distorted and destructive way, you'll see them begin to clean up.

    “It's indisputable that some of these markets were distorted. You take a market and regulate part of it and leave the rest of it unregulated, bad practices will drive out the good. We saw that in mortgage marketplace. You'll see, with us able to police the whole market, that things will be better.

    “And the third thing is that now that we have the authority to enforce the law, you're going to see institutions ... thinking more carefully about how they are treating customers, making sure that what they do is not just technically legal but also not unfair.  You'll see them asking themselves, "Is this the way you would want your own family treated in the marketplace?’"

    “But there's one more piece that's interesting.  We are starting to see in these marketplaces that consumers are "muscling up." They understand that they have a voice, and that voice can matter, and they are using technology to band together and demand that they are treated better.  They will continue to do that, but having a watchdog will give them more confidence to do it in stronger and more effective ways.

    Q: Can you give us -- without naming company names, if you must -- one example of an unfair practice that your bureau will be able to stop sometime soon?

    A: “You will see that soon based on our actions. I'm not going to make that news today.”

    Q: What does it mean to you, personally, that President Obama took the controversial step of installing you via recess appointment?

    A: "It means to me that we have a responsibility to deliver for 300 million people now and we have the opportunity to do our job fully. … I feel a heavy responsibility."

    While the bureau had begun work in July 2010, many of its real regulatory powers did not kick in until Cordray was installed.  Already, it had begun collecting complaints about credit card issuers and acting as an unofficial mediator between banks and account holders. It also has issued a report listing most frequent complaints. In December, it began doing the same for mortgage products.  Only days after Cordray was installed, the bureau announced it had launched “non-bank bank” oversight, including mortgage services, payday lenders, and student loan firms that don’t fall under traditional banking regulatory agencies. 

    The bureau takes complaints on its Web site at ConsumerFinance.gov.

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  • New virus raids your bank account - but you won't notice

    The best way to protect yourself from an online financial scam is to diligently check your bank accounts. At least, until now.

    Israeli-based Security firm Trusteer has found an elaborate new computer virus that not only helps fraudsters steal money from bank accounts -- it also covers its tracks.


    Think of a crime plot involving a spy who plans to break into a high-security building and begins by swapping out security camera video so guards don't notice anything is amiss. Known as a surveillance camera hack, the technique has been used in dozens of movies.

    A new version of the widely prevalent SpyEye Trojan horse works much the same way, only it swaps out banking Web pages rather than video, preventing account holders from noticing that their money is gone.

    The Trojan horse employs a powerful two-step process to commit the electronic crime. First, the virus lies in wait until a customer with an infected computer visits an online banking site, steals their login credentials and tricks the victim into divulging additional personal information such as debit card information.  Then, after the stolen card number is used for a fraudulent purchase, the virus intercepts any further visits to the victim's banking site and scrubs transaction records clean of any fraud.  That prevents -- or at least delays -- consumers from discovering fraud and reporting it to the bank, buying the fraudster critical extra time to complete the crime.

    Trusteer calls it a "post transaction" attack, because much of the virus' effectiveness is attributable to its ability to control what victims see after fraudulent transactions occur. Amit Klein, chief technology officer for Trusteer, said he believes criminals have used the technique for a few months, and it has infected real consumers. 

    "I predict that the use of post transaction attack technology will significantly increase as it enables criminals to maximize the amount of fraud they can commit using their initial investment in malware toolkits and infection mechanisms," Klein said.

    The new SpyEye came to Trusteer's attention when a large retail bank in the United States spotted it and shared with the firm, he said.

    'A very scary tactic'
    The virus' evidence-covering techniques are elaborate. First, it keeps track of all fraud committed by the criminal, and makes sure to remove those line items from online transaction lists.  It also edits balance amounts to prevent consumers from getting suspicious.

    "This is a very scary tactic," said Avivah Litan, a financial fraud analyst at consulting firm Gartner. "Everybody thinks all they have to do is check their transactions and their balances. That's not true anymore."

    The new virus technique ups the ante in the cat-and-mouse game between security companies and the computer criminals who try to steal consumers' money.  Consumer reports of fraud are still a very important part of fraud-fighting techniques, Litan said. 

    "Most banks 'let the first transaction through,' because if they stopped everything that was potentially fraud, consumers would get annoyed," she said.  In some cases, fraud-checking tools kick in only after initial reports, so this version of SpyEye could buy criminals important time as they try to turn stolen data into cash.

    "Usually they only need one day more to get the money, to push the fraud through," she said. "They always want to keep the security guys running after them."

    Such cover-your-tracks techniques have been used before by virus writers, Klein said. In a simpler version, criminals who raided online bank accounts and wired money out of them would try to hide the transaction from victims using the same Web page interception trick. But this new flavor has more potential for success, because it involves stolen debit card numbers used at third-party merchants, creating complex transactions involving multiple banks and multiple security systems. 

    Victim account holders who check their balance at an ATM -- or even at a second uninfected computer -- would be able to spot the fraudulent transactions. The virus doesn’t impact bank systems, merely the characters that are displayed within the infected system's Web browser.  That means paper statements would reveal the fraud, too.

    Of course, consumers who rely on paper statements could be a full 30 days behind when it comes to spotting fraudulent transactions.

    While Klein is worried about the "post transaction" attack, he said consumers who have vulnerable Web browsers are bound to be victims of one fraudster or another.

    "My take is that if your computer is infected with financial malware, it's game over anyway," he said. "My takeaway is you need to prevent getting infected with financial malware in the first place."

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  • Of course upward mobility is the problem; we're stuck in our homes

    RED TAPE BRIEFS

    Perhaps this is why we keep talking past each other.

    In today's New York Times, Jason DeParle did a great job of exploring a new angle to the tired debate about the real problem with the American economy -- a decline in upward mobility, which once upon a time was a defining characteristic of the American way of life.  While liberals and conservatives argue over poverty.

    This decline is also a good starting point for discussion about what's wrong with our country, because there's plenty of room for agreement across the political spectrum. While liberals and conservatives argue about the effectiveness of providing aid to the poor, experts on both sides have noticed that many lower and middle class Americans are suffering from stagnation -- and agree that must be fixed. 

    I'll state it more plainly. Our economic malaise isn't about poverty, it's about being stuck. In fact, it's about nearly everyone being stuck. A Red State-Blue State fight to the death over extending unemployment benefits is a poor proxy for discussing the real problem. The first politician to realize this will really be on to something -- perhaps a unifying theme that could move us past the current poisonous state of partisan politics.

    We can all agree that America isn't America without the Frontier spirit, the social contract that if you work hard, there's a brighter tomorrow. That spirit is in serious danger... right now.

    In my opinion, here's why: Housing costs eat up more than twice a family's monthly budget today than budgets of a generation ago. Here's some data points: . A 1975 Census report showed that only 8.9 percent of mortgage holders spent 35 percent or more of their income — including insurance, property taxes, and utilities — on housing.  In 1999, 26.7 percent of U.S. households were considered house poor by U.S. Census Bureau standards, or spending more than 30 percent of income on housing. By 2006, the number had jumped to 34.5 percent. The bureau also found that 46 percent of renters were "house poor" that year, paying 30 percent or more of their income on housing costs.  (For much more on why life really is harder now, see this story. For more housing cost data, see this PDF at the Census Bureau site. The Bureau offers no more up-to-date data).

    This extravagant increase in housing costs trumps any other data point you can find. It has created an unsustainable burden, and more important, it has glued families to their current homes and severely restricted labor mobility. You can't take that great job offer in another city if there's no hope you'll sell your current home.  Meanwhile, just where are young married couples who want to have a third child supposed to live?

    Until we fix this, upward mobility will be severely hampered, and the American Dream will be, if not dead, in a coma.

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  • Want to learn about Santorum? You might not want to search the Web at work

    Americans taking their first look at Rick Santorum  are in for a surprise if they try to Google him for more information.

    The first link you'll find won't be a discussion of Santorum's conservative political views, or a campaign brochure, or even criticism of the former Pennsylvania senator's congressional record.

    The first link offers a faux definition of the word "santorum" as the byproduct of a sex act - a very graphic definition, at that. Because the definition appears right on the search results page, it's convincing enough that someone might be convinced the suddenly prominent Republican presidential candidate has suffered from an unfortunate coincidence involving his last name for his entire life. 

    In fact, the "coincidence" is only about eight years old.


    In 2003, Santorum angered many in the gay and lesbian community when he appeared to tell an Associated Press reporter -- in very twisted language -- that gay sex was not entitled to privacy protections, and could therefore be banned by the government. 

    (A transcript of his interview is here. There are other interpretations of his remarks.)

    Publication of the interview caused outrage among gays,  and it eventually found voice in Seattle-based sex columnist Dan Savage, who took up a suggestion from a reader and decided to play a Google trick on Santorum.  He held a contest to decide precisely how to define "santorum," then created a Web page that did so called SpreadingSantorum.com, and finally he helped create a network of other Web pages that pointed to the page.  Soon enough, SpreadingSantorum became the top search result for Google (and Bing, and Yahoo) searches of "santorum."

    "Real" links about the former senator appear farther down in the search results.

    Tricking Google results is a common practice by those using search engine optimization tricks. It's a constant cat-and-mouse game between Google's algorithm writers and anyone who has a desire to manipulate what happens when Internet users scratch a search engine itch.  Companies worried about random customer complaints can employ tactics to push down the negative remarks so casual searchers don't find them.  Others find ways to make links to their Web pages more prominent than competitors' pages. 

    It's easy to use SEO tactics to create faux definitions or Internet memes, too.  Not long ago, I played such a trick on the audience at the RSA technology conference with fellow speaker Hugh Thompson. We make up a concept -- "context reflux" and seeded the Internet with it.  Then we played a fake game of balderdash with them, letting the audience vote on which definition of the word was accurate.  Thousands voted: No one questioned that the Internet might be lying about the definition, which was the point of the exercise.

    While clicking on SpreadingSantorum.com brings up a page that includes only the sex act definition, and indicates the word also refers to the former senator, users who click again find plenty of content regarding Santorum's political positions.  That makes the website political satire. While Santorum has called the site "filth," he has conceded that it's protected by the First Amendment.

    Politically motivated search manipulation has a long -- and mixed -- tradition. In 2007, searches for "miserable failure" pushed users towards a biography of George W. Bush.  (That trick is more rightly called a “Google bomb,” but the effect is much the same.)

    Google has refused to manually remove such pages or results in the past, but it has tinkered with its algorithm to demote such results. It ultimately did so with "miserable failure." So far, even after contacts from Santorum's campaign, the firm hasn't taken any steps to demote Savage's SpreadingSantorum.com page.

    Should Santorum remain a prominent presidential candidate, he might manage to overcome the SEO problem the old-fashioned way -- by inspiring thousands of websites and links to his real content.  That's no small task, however. More than 47,000 Facebook users "like" Savage's page, and he has an eight-year head start on Google's magic formula for results.

    It should be noted that while many parents would not want their children to see Savage's page, schoolchildren searching for information on Sen. Santorum can be shielded from it if adults turn on Google's SafeSearch feature. Also, searches for "Rick Santorum" or "Sen. Santorum" pull up the expected results.

    For much more on Sen. Santorum's Google problem, including a discussion of potential political bias by Google, see Danny Sullivan's excellent explanation at SearchEngineLand.

     

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