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US Staging Global Conference to Combat Ransomware Attacks

The White House is holding a two-day international conference starting Wednesday to combat ransomware computer attacks on business operations across the globe that cost companies, schools and health services an estimated $74 billion in damages last year.

U.S. officials are meeting on Zoom calls with their counterparts from at least 30 countries to discuss ways to combat the clandestine attacks. Russia, a key launchpad for many of the attacks, was left off the invitation list as Washington and Moscow officials engage directly on attacks coming from Russia.

This year has seen an epidemic of ransomware attacks in which hackers from distant lands remotely lock victims’ computers and demand large extortion payments to allow normal operations to resume.

Ransomware payments topped $400 million globally in 2020, the United States says, and totaled more than $81 million in the first quarter of 2021.

Two U.S. businesses, the Colonial Pipeline Company that delivers fuel to much of the eastern part of the country and the JBS global beef producer, were targeted in major ransomware attacks in May.

Colonial paid $4.4 million in ransom demands, although U.S. government officials were soon able to surreptitiously recover $2.3 million of the payment. JBS said it paid an $11 million demand.

Other U.S. companies were also attacked, including CNA Financial, one of the country’s biggest insurance carriers; Applus Technologies, which provides testing equipment to state vehicle inspection stations; ExaGrid, a backup storage vendor that helps businesses recover after ransomware attacks; and the school system in the city of Buffalo, New York.

Attackers have also targeted victims in other countries, including Ireland’s health care system, the Taiwan-based computer manufacturer Acer and the Asia division of the AXA France cyber insurer.

A senior White House official, briefing reporters ahead of the ransomware conference, said the U.S. views the meetings “as the first of many conversations” on ways to combat the attacks.

At a summit in Geneva in June, U.S. President Joe Biden and Russian President Vladimir Putin created a working group of experts to deal with ransomware attacks.

“We do look to the Russian government to address ransomware criminal activity coming from actors within Russia,” the White House official said. “I can report that we’ve had, in the experts group, frank and professional exchanges in which we’ve communicated those expectations. We’ve also shared information with Russia regarding criminal ransomware activity being conducted from its territory.”

“We’ve seen some steps by the Russian government and are looking to see follow-up actions,” the official said, without elaborating.

While U.S. officials say they know the identity of some of the attackers in Russia, Moscow does not extradite its citizens for criminal prosecutions.

One of the major topics at the conference, the Biden official said, will be how countries can cooperate to trace and disrupt criminal use of cryptocurrencies like Bitcoin.

The countries scheduled to join the U.S. at the ransomware conference are Australia, Brazil, Bulgaria, Canada, the Czech Republic, the Dominican Republic, Estonia, France, Germany, India, Ireland, Israel, Italy, Japan, Kenya, Lithuania, Mexico, the Netherlands, New Zealand, Nigeria, Poland, the Republic of Korea, Romania, Singapore, South Africa, Sweden, Switzerland, Ukraine, the United Arab Emirates and the United Kingdom. The European Union will also be represented.

The senior White House official said, “I think that list of countries highlights just how pernicious and transnational and global the ransomware threat has been.”

Aside from government action, the Biden administration has called on private businesses, which most often are blindsided by the ransomware attacks, to modernize their cyber defenses to meet the threat.

Facebook-backed Group Launches Misinformation Adjudication Panel in Australia

A tech body backed by the Australian units of Facebook, Google and Twitter said on Monday it has set up an industry panel to adjudicate complaints over misinformation, a day after the government threatened tougher laws over false and defamatory online posts. 

Prime Minister Scott Morrison last week labeled social media “a coward’s palace,” while the government said on Sunday it was looking at measures to make social media companies more responsible, including forcing legal liability onto the platforms for the content published on them.   

The issue of damaging online posts has emerged as a second battlefront between Big Tech and Australia, which last year passed a law to make platforms pay license fees for content, sparking a temporary Facebook blackout in February.   

The Digital Industry Group Inc. (DIGI), which represents the Australian units of Facebook Inc., Alphabet’s Google and Twitter Inc., said its new misinformation oversight subcommittee showed the industry was willing to self-regulate against damaging posts. 

The tech giants had already agreed a code of conduct against misinformation, “and we wanted to further strengthen it with independent oversight from experts, and public accountability,” DIGI Managing Director Sunita Bose said in a statement. 

A three-person “independent complaints sub-committee” would seek to resolve complaints about possible breaches of the code conduct via a public website, DIGI said, but would not take complaints about individual posts.   

The industry’s code of conduct includes items such as taking action against misinformation affecting public health, which would include the novel coronavirus.   

DIGI, which also represents Apple Inc. and TikTok, said it could issue a public statement if a company was found to have violated the code of conduct or revoke its signatory status with the group. 

Reset Australia, an advocate group focused on the influence of technology on democracy, said the oversight panel was “laughable” as it involved no penalties and the code of conduct was optional. 

“DIGI’s code is not much more than a PR stunt given the negative PR surrounding Facebook in recent weeks,” said Reset Australia Director of tech policy Dhakshayini Sooriyakumaran in a statement, urging regulation for the industry. 

Facebook Unveils New Controls for Kids Using Its Platforms

Facebook, in the aftermath of damning testimony that its platforms harm children, will be introducing several features including prompting teens to take a break using its photo sharing app Instagram, and “nudging” teens if they are repeatedly looking at the same content that’s not conducive to their well-being.  

The Menlo Park, California-based Facebook is also planning to introduce new controls on an optional basis so that parents or guardians can supervise what their teens are doing online. These initiatives come after Facebook announced late last month that it was pausing work on its Instagram for Kids project. But critics say the plan lacks details, and they are skeptical that the new features would be effective.  

The new controls were outlined on Sunday by Nick Clegg, Facebook’s vice president for global affairs, who made the rounds on various Sunday news shows including CNN’s “State of the Union” and ABC’s “This Week with George Stephanopoulos” where he was grilled about Facebook’s use of algorithms as well as its role in spreading harmful misinformation ahead of the Jan. 6 Capitol riots. 

“We are constantly iterating in order to improve our products,” Clegg told Dana Bash on “State of the Union” Sunday. “We cannot, with a wave of the wand, make everyone’s life perfect. What we can do is improve our products, so that our products are as safe and as enjoyable to use.” 

Clegg said that Facebook has invested $13 billion over the past few years in making sure to keep the platform safe and that the company has 40,000 people working on these issues. And while Clegg said that Facebook has done its best to keep harmful content out of its platforms, he says he was open for more regulation and oversight.  

“We need greater transparency,” he told CNN’s Bash. He noted that the systems that Facebook has in place should be held to account, if necessary, by regulation so that “people can match what our systems say they’re supposed to do from what actually happens.” 

The flurry of interviews came after whistleblower Frances Haugen, a former data scientist with Facebook, went before Congress last week to accuse the social media platform of failing to make changes to Instagram after internal research showed apparent harm to some teens and of being dishonest in its public fight against hate and misinformation. Haugen’s accusations were supported by tens of thousands of pages of internal research documents she secretly copied before leaving her job in the company’s civic integrity unit. 

Josh Golin, executive director of Fairplay, a children’s digital advocacy group, said that he doesn’t think introducing controls to help parents supervise teens would be effective since many teens set up secret accounts. 

He was also dubious about how effective nudging teens to take a break or move away from harmful content would be. He noted Facebook needs to show exactly how they would implement it and offer research that shows these tools are effective.  

“There is tremendous reason to be skeptical,” he said. He added that regulators need to restrict what Facebook does with its algorithms.  

He said he also believes that Facebook should cancel its Instagram project for kids. 

When Clegg was grilled by both Bash and Stephanopoulos in separate interviews about the use of algorithms in amplifying misinformation ahead of Jan. 6 riots, he responded that if Facebook removed the algorithms people would see more, not less hate speech, and more, not less, misinformation.  

Clegg told both hosts that the algorithms serve as “giant spam filters.” 

Democratic Sen. Amy Klobuchar of Minnesota, who chairs the Senate Commerce Subcommittee on Competition Policy, Antitrust, and Consumer Rights, told Bash in a separate interview Sunday that it’s time to update children’s privacy laws and offer more transparency in the use of algorithms. 

“I appreciate that he is willing to talk about things, but I believe the time for conversation is done,” said Klobuchar, referring to Clegg’s plan. “The time for action is now.” 

Infrastructure Successes Have Transformed America, Can Biden’s Plan do the Same?

Congress appears poised to pass a bipartisan, $1 trillion plan that would be the largest federal investment in infrastructure in more than a decade. History shows that investing in infrastructure can transform the United States, changing how Americans move, bolstering economic prosperity, and significantly improving the health and quality of life for many. 

 

“When the transcontinental railroad was completed in 1869, we changed the way we moved forever, opening up the entire country and from the way humans had moved previously for thousands of years by animal to machine,” Greg DiLoreto, past president of the American Society of Civil Engineers (ASCE), told VOA via email. “[And] I think we all would agree that construction of the interstate highway system changed America in ways that greatly contributed to our economic prosperity.” 

In 1956, President Dwight D. Eisenhower signed the Federal-Aid Highway Act, which authorized the building of 65,000 kilometers (41,000 miles) of interstate highways — the largest American public works program in history at the time. Another earlier transformation occurred in 1936, when Congress passed the Rural Electrification Act, extending electricity into rural areas for the first time.

And the wave of projects that created modern sewage and water systems in urban areas in the late 19th and early 20th centuries left a lasting mark, providing reliable, clean water in cities and extracting pollution from sewage.

“American cities in the late 19th, early 20th century were incredibly unhealthy places,” says Richard White, professor emeritus of American history at Stanford University in California. “High child death rates, repeated epidemics, and much of that was waterborne disease that came from both ineffective sewage and impure water. And infrastructure projects changed that dramatically. Probably it’s been the most effective public health effort ever in the history of the United States.”

Dark consequences 

DiLoreto also names the construction of dams across the western United States, which increased America’s ability to farm and feed the world, as infrastructure successes. But he points out that the projects created problems for migrating fish. In fact, many of the so-called successful infrastructure projects, like interstate highways, had dark consequences. 

“They increased racial stratification in the cities. They were built in such a way that they went through poorer neighborhoods, very often minority neighborhoods, walling them off from the city as a whole,” White says. “They set them apart and set in motion a set of social changes which we suffer from still. So, they hurt poorer areas, minority areas, even if they helped middle-class areas.” 

White, who wrote the book “Railroaded,” about the building of the transcontinental railroads, contends the federal government funded too many railroads into areas without the traffic to sustain them. 

“The railroads took government money and then went bankrupt,” White says. “They were very often utterly corrupt. The money was taken off into the private pockets behind some of the great fortunes in American history, and they never really delivered the economic and social benefits that they promised.” 

And Native Americans ended up paying the price, White adds. 

“Many of these railroads ended up costing Indian peoples huge amounts of land for no particular benefit,” he says. “It’s not like white settlement was particularly successful in the land the Indians lost. So, even though it was intended to raise the standard of living for everybody in the West, it didn’t necessarily do so, and the great cost was paid very often by Indian people.” 

Bold enough?

The stripped-down bipartisan version of President Joe Biden’s American Jobs Plan (AJP) pours money into transportation, utilities — including high-speed internet for rural communities — and pollution cleanup. What the bill does not appear to contain is a single transformative project. 

“From the information I have, funds will be used to help us repair, replace and make our infrastructure more robust to withstand climate change and seismic risks,” DiLoreto says. “One might consider that transformative in the sense that our quality of life and economic prosperity depend on a functioning infrastructure.” 

White views the bill as backward-looking rather than forward-thinking at a time when the United States needs to transform itself to adjust to a changing world, doing things differently in the future than it has in the past. 

“We have our first great infrastructure bill, which is mostly intended to protect things we built in the past, which, I think, in the long run, that’s going to be seen as a failing,” White says. “And again, I’m not saying that you should allow bridges to fall into rivers, or that the roads don’t need repair. But it’s not transformative.” 

There is one potentially sweeping project that could help revolutionize life in the United States. 

“Broadband has had a tremendous impact on our lives,” DiLoreto says. “Without a broadband system, our ability to economically survive COVID would have been difficult.” 

The current bipartisan plan provides $65 billion for broadband infrastructure. 

“If broadband in this bill works as they intend it … and they bring it into poor areas which now lack broadband, that would be a good thing, that could be transformative,” White says. “That could have the same kind of consequences that rural electrification had in terms of education and lightening people’s workload and allowing them to do the kinds of work they otherwise couldn’t do. … But if they simply make it more effective for those who have it already, it’s not going to be transformative.”

Chinese Cyber Operations Scoop Up Data for Political, Economic Aims 

Mustang Panda is a Chinese hacking group that is suspected of attempting to infiltrate the Indonesian government last month.

The reported breach, which the Indonesians denied, fits the pattern of China’s recent cyberespionage campaigns. These attacks have been increasing over the past year, experts say, in search of social, economic and political intelligence from Asian countries and other nations across the globe.

“There’s been an upswing,” said Ben Read, director of cyberespionage analysis at Mandiant, a cybersecurity firm, in an interview with VOA. Cyber operations stemming from China are “pretty extensive campaigns that haven’t seemed to be restrained at all,” he said.

‘Large-scale and indiscriminate’

For years, China was considered the United States’ main cyber adversary, having coordinated teams both inside and outside the government conducting cyberespionage campaigns that were “large-scale and indiscriminate,” Josephine Wolff, an associate professor of cybersecurity policy at Tufts University, told VOA.

The 2014-15 hack on the U.S. Office of Personnel Management, in which the personnel records of 22 million federal workers were compromised, was a case in point — a “big grab,” she said.

After a 2015 cybersecurity agreement between then-U.S. President Barack Obama and Chinese President Xi Jinping, attacks from China declined, at least against the West, experts say.

Hacking rising with rhetoric

But as tensions rose between Beijing and Washington during the Trump presidency, Chinese cyberespionage also increased. Over the past year, experts have attributed notable hacks in the U.S., Europe and Asia to China’s Ministry of State Security, the nation’s civilian intelligence agency, which has taken the lead in Beijing’s cyberespionage, consolidating efforts by the People’s Liberation Army.

TAG-28, a Chinese state-sponsored hacking team focused on the Indian subcontinent, reportedly infiltrated targets that included the Indian government agency in charge of a database of biometric and digital identity information for more than 1 billion people, according to The Record, a media site focused on cybersecurity.

A Microsoft report released in October accuses the Chinese hacking group Chromium of targeting universities in Hong Kong and Taiwan and going after other countries’ governments and telecommunication providers.

Hafnium, the name Microsoft gave to a Chinese hacking group, was behind the Microsoft Exchange hack earlier this year, according to the company and the Biden administration. Chinese hacking teams, Microsoft reported, took advantage of a weakness in the software to grab what they could before an emergency patch could be issued.

Scooping up data

A National Public Radio investigation asserted that the Microsoft Exchange hack may have been, in part, an information scoop aimed at acquiring large amounts of data to train China’s artificial intelligence assets.

Hafnium also targets higher education, defense industry firms, think tanks, law firms and nongovernmental organizations, the Microsoft report said. Another group from China, Nickel — also known as APT15 and Vixen Panda — targets governments in Central and South America and Europe, Microsoft said.

“What you are seeing now is this realization that Chinese espionage never disappeared and has become more technologically sophisticated,” Wolff said.

White House response

The Biden administration has stepped up its response to Chinese hacking. Over the summer, the U.S. and its allies, including the European Union, NATO and the United Kingdom, accused China of being behind the Microsoft hack and called on Beijing to cease the activity.

The Biden administration has not indicted anyone related to the Microsoft Exchange hack, nor has it instituted economic or other sanctions against China.

However, the U.S. unsealed in July an indictment against four members of China’s Ministry of State Security in a separate attack conducted by a group that security researchers call Advanced Persistent Threat (APT) 40, Bronze, Mohawk and other names.

A Chinese government spokesman demanded that the U.S. drop the charges and denied the nation was behind the Microsoft Exchange hack.

“The United States ganged up with its allies to make unwarranted accusations against Chinese cybersecurity,” said Zhao Lijian, a Chinese Foreign Ministry spokesperson, in a July statement. “This was made up out of thin air and confused right and wrong. It is purely a smear and suppression with political motives.”

Pushing back

While China has stepped up its use of hacking, it has not crossed what some cyber experts say is a bright line in cyberespionage: public, overt hacks, such as the Russian disinformation campaign to influence the 2016 U.S. presidential election and, in May, the Colonial Pipeline ransomware hack, which was attributed to Russian-based cybercriminals.

China’s aims appear to be long term and both economic and strategic, such as shoring up its capabilities “so they are not only well defended but surpass capacities,” Philip Reiner, the CEO of the Institute for Security and Technology, told VOA.

A collective push from world leaders that cyberespionage is unacceptable might resonate with Chinese leaders in Beijing, who want to be accepted on the world stage, he said. Detailing clear consequences for state-sponsored hacks is also critical, he said.

Without a strong push from the U.S. and its allies, experts say, China’s state-sponsored cyberattacks will continue.

Facebook Messenger, Instagram Service Disrupted for Second Time in a Week

Facebook confirmed on Friday that some users were having trouble accessing its apps and services, days after the social media giant suffered a six-hour outage triggered by an error during routine maintenance on its network of data centers. 

Some users were unable to load their Instagram feeds, while others were not able to send messages on Facebook Messenger. 

“We’re aware that some people are having trouble accessing our apps and products. We’re working to get things back to normal as quickly as possible and we apologize for any inconvenience,” Facebook said in a tweet.

People swiftly took to Twitter to share memes about the second Instagram disruption this week. 

Web monitoring group Downdetector showed there were more than 36,000 incidents of people reporting issues with photo-sharing platform Instagram on Friday. There were also more than 800 reported issues with Facebook’s messaging platform. 

Downdetector only tracks outages by collating status reports from a series of sources, including user-submitted errors on its platform. The outage might have affected a larger number of users. 

The outage on Monday was the largest Downdetector had ever seen and blocked access to apps for billions of users of Facebook, Instagram and WhatsApp.

Americans Agree Misinformation Is a Problem, Poll Shows

Nearly all Americans agree that the rampant spread of misinformation is a problem.

Most also think social media companies, and the people that use them, bear a good deal of blame for the situation. But few are very concerned that they themselves might be responsible, according to a new poll from The Pearson Institute and the Associated Press-NORC Center for Public Affairs Research.

Ninety-five percent of Americans identified misinformation as a problem when they’re trying to access important information. About half put a great deal of blame on the U.S. government, and about three-quarters point to social media users and tech companies. Yet only 2 in 10 Americans say they’re very concerned that they have personally spread misinformation.

 

More — about 6 in 10 — are at least somewhat concerned that their friends or family members have been part of the problem.

For Carmen Speller, a 33-year-old graduate student in Lexington, Kentucky, the divisions are evident when she’s discussing the coronavirus pandemic with close family members. Speller trusts COVID-19 vaccines; her family does not. She believes the misinformation her family has seen on TV or read on questionable news sites has swayed them in their decision to stay unvaccinated against COVID-19.

In fact, some of her family members think she’s crazy for trusting the government for information about COVID-19.

“I do feel like they believe I’m misinformed. I’m the one that’s blindly following what the government is saying, that’s something I hear a lot,” Speller said. “It’s come to the point where it does create a lot of tension with my family and some of my friends as well.”

Speller isn’t the only one who may be having those disagreements with her family.

The survey found that 61% of Republicans say the U.S. government has a lot of responsibility for spreading misinformation, compared to just 38% of Democrats.

There’s more bipartisan agreement, however, about the role that social media companies, including Facebook, Twitter and YouTube, play in the spread of misinformation.

According to the poll, 79% of Republicans and 73% of Democrats said social media companies have a great deal or quite a bit of responsibility for misinformation.

And that type of rare partisan agreement among Americans could spell trouble for tech giants like Facebook, the largest and most profitable of the social media platforms, which is under fire from Republican and Democrat lawmakers alike.

“The AP-NORC poll is bad news for Facebook,” said Konstantin Sonin, a professor of public policy at the University of Chicago who is affiliated with the Pearson Institute. “It makes clear that assaulting Facebook is popular by a large margin — even when Congress is split 50-50, and each side has its own reasons.”

 

During a congressional hearing Tuesday, senators vowed to hit Facebook with new regulations after a whistleblower testified that the company’s own research shows its algorithms amplify misinformation and content that harms children.

“It has profited off spreading misinformation and disinformation and sowing hate,” Sen. Richard Blumenthal, D-Conn., said during a meeting of the Senate Commerce Subcommittee on Consumer Protection. Democrats and Republicans ended the hearing with acknowledgement that regulations must be introduced to change the way Facebook amplifies its content and targets users.

The poll also revealed that Americans are willing to blame just about everybody but themselves for spreading misinformation, with 53% of them saying they’re not concerned that they’ve spread misinformation.

“We see this a lot of times where people are very worried about misinformation but they think it’s something that happens to other people — other people get fooled by it, other people spread it,” said Lisa Fazio, a Vanderbilt University psychology professor who studies how false claims spread. “Most people don’t recognize their own role in it.”

Younger adults tend to be more concerned that they’ve shared falsehoods, with 25% of those ages 18 to 29 very or extremely worried that they have spread misinformation, compared to just 14% of adults ages 60 and older. Sixty-three percent of older adults are not concerned, compared with roughly half of other Americans.

Yet it’s older adults who should be more worried about spreading misinformation, given that research shows they’re more likely to share an article from a false news website, Fazio said.

Before she shares things with family or her friends on Facebook, Speller tries her best to make sure the information she’s passing on about important topics like COVID-19 has been peer-reviewed or comes from a credible medical institution. Still, Speller acknowledges there has to have been a time or two that she “liked” or hit “share” on a post that didn’t get all the facts quite right.

“I’m sure it has happened,” Speller said. “I tend to not share things on social media that I didn’t find on verified sites. I’m open to that if someone were to point out, ‘Hey this isn’t right,’ I would think, OK, let me check this.”

The AP-NORC poll of 1,071 adults was conducted Sept. 9-13 using a sample drawn from NORC’s probability-based AmeriSpeak Panel, which is designed to be representative of the U.S. population. The margin of sampling error for all respondents is plus or minus 3.9 percentage points.

Microsoft: Russia Cyberattacks Targeting More Governments, Agencies

Russia appears to be getting more aggressive and more successful as the nation’s hackers launch a growing number of cyberattacks against the United States and other nations, according to a new report by Microsoft. 

Microsoft’s 2021 Digital Defense Report warns that what it labels as “Russian nation-state actors” are responsible for 58% of all nation-state cyberattacks, and that they are now successful almost one out of every three times. 

“Russia-based activity groups have solidified their position as acute threats to the global digital ecosystem,” the report said, cautioning that Russian cyber actors have been adaptable, getting better at using open-source tools “that make them increasingly difficult to detect.” 

Microsoft also said Russia’s most frequent target was the United States, followed by Ukraine and Britain, and that the focus seems to be shifting toward intelligence gathering, with more than half of Russian attacks now targeting agencies involved with foreign policy, national security or defense, up from just 3% a year earlier. 

According to Microsoft, after Russia, the greatest number of cyberattacks came from North Korea, Iran and China.

North Korea’s top target was cryptocurrency companies, while Iran quadrupled its attacks on Israel as tensions between the two countries grew steadily. 

China also was active, focusing much of its cyber efforts on intelligence gathering. 

Microsoft said a large part of Beijing’s efforts, through a threat actor called Chromium, focused on gathering social, economic and political intelligence from India, Malaysia, Mongolia, Pakistan and Thailand. 

Another prominent Chinese threat actor, known as Nickel, focused its efforts on foreign ministries in Central and South America. 

The report also said that South Korea, Turkey and Vietnam were increasingly active in cyberspace, though the volume of attacks carried out from those countries paled in comparison with Russia, North Korea, Iran and China. 

Top U.S. officials have shared their concerns about the growing danger from cyberattacks, especially from nation-state adversaries, in recent weeks. And many have voiced support for legislation that would require private companies to notify the U.S. government if their systems were breached. 

“I think we’re at a point, seeing the arc of cybercrimes and the cyberthreats, that really there’s an urgency to it,” U.S. Homeland Security Secretary Alejandro Mayorkas told a virtual cybersecurity conference earlier this week. “We’re optimistic the legislation will pass.” 

Speaking at the same summit Thursday, U.S. Cybersecurity and Infrastructure Security Agency Director Jen Easterly said that while many of the threats are not new, they remain worrisome, given “how vulnerable some of our critical infrastructure sectors are.” 

Google to Invest $1 Billion in Africa Over Five Years

Google plans to invest $1 billion in Africa over the next five years to ensure access to fast and cheaper internet and will back startups to support the continent’s digital transformation, it said on Wednesday.

The unit of U.S. tech company Alphabet Inc made the announcement at a virtual event where it launched an Africa Investment Fund, through which it will invest $50 million in startups, providing them with access to its employees, network and technologies.

Nitin Gajria, managing director for Google in Africa told Reuters in a virtual interview that the company would among others, target startups focusing on fintech, e-commerce and local language content.

“We are looking at areas that may have some strategic overlap with Google and where Google could potentially add value in partnering with some of these startups,” Gajria said.

In collaboration with not-for-profit organization Kiva, Google will also provide $10 million in low interest loans to help small businesses and entrepreneurs in Ghana, Kenya, Nigeria and South Africa so they can get through the economic hardship created by COVID-19.

Small businesses in Africa often struggle to get capital because they lack the necessary collateral required by banks in case they default. When credit is available, interest rates are usually too high.

Google said a program pioneered last year in Kenya in partnership with Safaricom that allows customers to pay for 4G-enabled phones in instalments would be expanded across the continent with mobile operators such as MTN, Orange and Vodacom.

Gajria said an undersea cable being built by Google to link Africa and Europe should come into service in the second half of next year and is expected to increase internet speeds by five times and lower data costs by up to 21% in countries like South Africa and Nigeria.

US Rolls Out New Cybersecurity Requirements for Rail, Air 

The United States is taking new steps to make sure the country’s air and surface transportation sectors will not be crippled by ransomware or cyberattacks.

Homeland Security Secretary Alejandro Mayorkas announced the measures Tuesday at a virtual cybersecurity conference, warning that recent incidents such as the SolarWinds hack and the Colonial Pipeline ransomware attack showed that “what is at stake is not simply the way we communicate or the way we work, but the way we live.”

The new security directives target what the Department of Homeland Security and the Transportation Security Administration describe as “higher risk” rail companies, “critical” airport operators, and air passenger and air cargo companies.

Cybersecurity coordinators

Mayorkas said that going forward, the rail companies will have to name a cybersecurity coordinator who will report any incidents and create contingency plans in the case of a cyberattack.

The aviation companies will also be required to appoint a cybersecurity coordinator and report incidents to the DHS’s Cybersecurity and Infrastructure Security Agency.

Similar cybersecurity directives are already in place for 2,300 critical maritime companies that, starting this month, will have to submit plans to identify and address cyber vulnerabilities.

The U.S. Coast Guard is also working with the International Maritime Organization to require that passenger and cargo vessels arriving in U.S. ports have plans to deal with cyber emergencies.

“Whether by air, land or sea, our transportation systems are of utmost strategic importance to our national and economic security,” Mayorkas said.

Spike in ransoms paid

Top U.S. officials, including Mayorkas and FBI Director Christopher Wray, have warned that cyberattacks and ransomware attacks, in particular, have become a persistent threat.

“Last year, victims paid an estimated $350 million in ransoms, a 311% increase over the prior year, with the average payment exceeding $300,000,” Mayorkas told U.S. lawmakers at a hearing last month.

“We’re now investigating over 100 different types of ransomware, each with scores of victims,” Wray added.

U.S. officials have blamed Russia for many of the attacks, saying that despite Moscow’s assurances, they have seen few indications the Kremlin is doing anything to address the problem.

Russian officials deny any role in the recent, high-profile ransomware attacks.

Speaking at a separate cybersecurity forum Tuesday, the head of U.S. Cyber Command warned the problem with ransomware is likely to persist.

“Our adversaries are targeting everyone,” General Paul Nakasone told the Mandiant Cyber Defense Summit. “What was once viewed as criminal behavior has become a national security issue.”

To help facilitate the fight against cyberattacks and ransomware attacks, U.S. lawmakers are considering several bills that would require private companies to report intrusions and attacks on the government.

“We’re optimistic the legislation will pass,” Mayorkas said Wednesday at the annual Billington CyberSecurity Summit.

“I think we’re at a point, seeing the arc of cybercrimes and the cyberthreats, that really there’s an urgency to it,” he said.

 

Amazon’s Twitch Hit by Data Breach

Amazon.com Inc.’s livestreaming e-sports platform Twitch said Wednesday that it had been hit by a data breach. It gave no details.

An anonymous hacker claimed to have leaked Twitch data, including information related to the company’s source code, clients and unreleased games, according to Video Games Chronicle, which first reported the news of the hack.

Twitch confirmed the breach and said its “teams are working with urgency to understand the extent of this.”

The company declined to comment further and said ((https://twitter.com/Twitch/status/1445770441176469512)) it would “update the community as soon as additional information is available.” Amazon did not immediately respond to a request for comment.

The hacker’s motive was to “foster more disruption and competition in the online video streaming space,” according to the Video Games Chronicle report.

About 125GB of data was leaked, including information on Twitch’s highest-paid video game streamers since 2019, such as a $9.6 million payout to the voice actors of popular game “Dungeons & Dragons” and $8.4 million to Canadian streamer xQcOW, the report said.

“Twitch leak is real. Includes significant amount of personal data,” cyber security expert Kevin Beaumont tweeted.

Twitch, which has more than 30 million daily visitors on average, has become increasingly popular with musicians and video gamers. They interact with users while live streaming content.

The platform, which was boycotted earlier this year by users for not doing enough to block harassment, previously made a move to ban users for offenses such as hate-group membership and credible threats of mass violence.

Facebook Called On to Answer Criticism About Negative Effects

Facebook is in the hot seat again. A recent Wall Street Journal report cites internal knowledge of its harmful effects and the company’s reticence to act. A whistleblower, a former Facebook employee, came out in public this week to testify against the social media company, only adding to the scrutiny. Tina Trinh reports. 

Produced by: Tina Trinh

 

US Lawmakers Pillory Social Media Giant Facebook

Key U.S. lawmakers pilloried social media giant Facebook on Tuesday after Frances Haugen, an inside whistleblower who once worked at the company, alleged that Facebook’s products are harming young people, undermining democracy and helping to divide the country politically. 

Haugen, who worked as a Facebook project manager for less than two years, held Facebook Chief Executive Mark Zuckerberg responsible for prioritizing concerns about company profits over controlling online content on its various platforms, including Instagram. 

Haugen testified before the Senate Commerce Subcommittee on Consumer Protection a day after Facebook had encountered hourslong technical issues that left millions of users wondering why they could not access the site and its other platforms such as Instagram and WhatsApp. 

“I don’t know why it went down,” Haugen said, “but I know that for more than five hours, Facebook wasn’t used to deepen divides, destabilize democracies, and make young girls and women feel bad about their bodies” with the posting of glamorous pictures of models, pop singers and Hollywood starlets. 

Democratic and Republican lawmakers, in a rare show of political unanimity in Washington, quickly castigated Facebook and panned Zuckerberg for a recent sailing trip while controversy engulfed his company. They promised to enact tighter controls on social media. 

Democratic Senator Richard Blumenthal of Connecticut contended, “The damage to self-interest and self-worth inflicted by Facebook today will haunt a generation. Our children are the ones who are victims. Teens today looking in the mirror feel doubt and insecurity. Mark Zuckerberg ought to be looking at himself in the mirror.” 

He said, “Big Tech now faces the Big Tobacco jaw-dropping moment of truth.” 

Republican Senator Marsha Blackburn of Tennessee declared that Facebook “is not interested in making significant changes to improve kids’ safety on their platforms, at least not when that would result in losing eyeballs on posts or decreasing their ad revenues.” 

“It is clear that Facebook prioritizes profit over the well-being of children and all users,” she said. 

Other lawmakers accused Facebook of helping to foment the January 6 riot at the U.S. Capitol, when hundreds of supporters of former President Donald Trump stormed into the building to try to prevent lawmakers from declaring that Democrat Joe Biden had won last November’s election. 

Democratic Senator Amy Klobuchar of Minnesota said, “When they allowed 99% of violent content to remain unchecked on their platform, including the lead-up to the January 6 insurrection, what did they do? Now we know Mark Zuckerberg was going sailing.” 

While the hearing was ongoing, Facebook pushed back against Haugen and the onslaught of criticism. It said in a statement that Haugen had no other Facebook employees who reported to her, had never attended a decision-making meeting with top Facebook officials, and had acknowledged in her testimony at least six times she was being asked questions about aspects of the company she had not worked on. 

“We don’t agree with her characterization of the many issues she testified about,” Facebook said. 

“Despite all this,” Facebook said, “we agree on one thing; it’s time to begin to create standard rules for the internet. It’s been 25 years since the rules for the internet have been updated, and instead of expecting the industry to make societal decisions that belong to legislators, it is time for Congress to act.”

Haugen acknowledged that she was the one who provided the documents used in a Wall Street Journal investigation of Facebook. 

Some information for this report came from Reuters. 

 

US Senator: Facebook Whistleblower’s Allegations Should Be Investigated by Regulators

Facebook took another pounding in the U.S. Congress on Tuesday and a senator called on federal regulators to investigate accusations by a whistleblower that the company pushed for higher profits while being cavalier about user safety.

In an opening statement to a Senate Commerce subcommittee, chair Senator Richard Blumenthal, a Democrat, said that Facebook knew that its products were addictive, like cigarettes. “Tech now faces that big tobacco jawdropping moment of truth,” he said.

He called for Facebook CEO Mark Zuckerberg to testify before the committee, and for the Securities and Exchange Commission and Federal Trade Commission to investigate the social media company.

“Our children are the ones who are victims. Teens today looking in the mirror feel doubt and insecurity. Mark Zuckerberg ought to be looking at himself in the mirror,” Blumenthal said, adding that Zuckerberg instead was going sailing.

In an era when bipartisanship is rare on Capitol Hill, lawmakers on both sides of the aisle agreed on the need for big changes at Facebook.

The top Republican on the subcommittee, Marsha Blackburn, said that Facebook turned a blind eye to children below age 13 on its sites. “It is clear that Facebook prioritizes profit over the well-being of children and all users.”

Facebook spokesman Kevin McAlister said in an email ahead of the hearing that the company sees protecting its community as more important than maximizing profits and said it was not accurate that leaked internal research demonstrated that Instagram was “toxic” for teenage girls.

Frances Haugen, a former product manager on Facebook’s civic misinformation team, said the company keeps its algorithms and operations a secret.

“The core of the issue is that no one can understand Facebook’s destructive choices better than Facebook, because only Facebook gets to look under the hood,” she said in written testimony prepared for the hearing.

“A critical starting point for effective regulation is transparency,” she said in testimony to be delivered to the subcommittee. “On this foundation, we can build sensible rules and standards to address consumer harms, illegal content, data protection, anticompetitive practices, algorithmic systems and more.”

Haugen revealed she was the one who provided documents used in a Wall Street Journal investigation and a Senate hearing on Instagram’s harm to teenage girls.

The Journal’s stories showed the company contributed to increased polarization online when it made changes to its content algorithm; failed to take steps to reduce vaccine hesitancy; and was aware that Instagram harmed the mental health of teenage girls.

Haugen said Facebook had also done too little to prevent its site from being used by people planning violence.

Facebook was used by people planning mass killings in Myanmar and the Jan. 6 assault on the U.S. Capitol by supporters of then-President Donald Trump who were determined to toss out the 2020 election results.

Facebook, Instagram, WhatsApp Suffering Outages

An outage has left millions of people around the world unable to use Facebook along with its Instagram and WhatsApp platforms to connect with friends, family and others.

“We’re aware that some people are having trouble accessing our apps and products. We’re working to get things back to normal as quickly as possible, and we apologize for any inconvenience,” the company tweeted Monday.

The outage appears to have started around 11:45 a.m. Eastern time.

Recently, The Wall Street Journal reported that internal Facebook documents showed the company knows about the negative effects of its products yet does little to counter potentially harmful consequences. CBS’s “60 Minutes” program Sunday broadcast an interview with a whistleblower, Frances Haugen, who aired her grievances about the social media giant.

Haugen is expected to testify before a Senate subcommittee on Tuesday.
Facebook says her allegations are misleading.
 
Some information in this report comes from The Associated Press.

Facebook Whistleblower Says Firm Chooses ‘Profit Over Safety’

The whistleblower who shared a trove of Facebook documents alleging the social media giant knew its products were fueling hate and harming children’s mental health revealed her identity Sunday in a televised interview, and accused the company of choosing “profit over safety.” 

Frances Haugen, a 37-year-old data scientist from Iowa, has worked for companies including Google and Pinterest, but said in an interview with CBS news show “60 Minutes” that Facebook was “substantially worse” than anything she had seen before.  

She called for the company to be regulated. 

“Facebook over and over again has shown it chooses profit over safety. It is subsidizing, it is paying for its profits with our safety,” Haugen said. 

“The version of Facebook that exists today is tearing our societies apart and causing ethnic violence around the world,” she added. 

The world’s largest social media platform has been embroiled in a firestorm brought about by Haugen, who as an unnamed whistleblower shared the documents with U.S. lawmakers and The Wall Street Journal that detail how Facebook knew its products, including Instagram, were harming young girls. 

In the “60 Minutes” interview she explained how the algorithm, which picks what to show in a user’s news feed, is optimized for content that gets a reaction. 

The company’s own research shows that it is “easier to inspire people to anger than it is to other emotions,” Haugen said. 

“Facebook has realized that if they change the algorithm to be safer, people will spend less time on the site, they’ll click on less ads, they’ll make less money,” she said. 

During the 2020 U.S. presidential election, she said, the company realized the danger that such content presented and turned on safety systems to reduce it.  

But “as soon as the election was over, they turn them back off, or they change the settings back to what they were before, to prioritize growth over safety, and that really feels like a betrayal of democracy to me,” she said.  

“No one at Facebook is malevolent,” she said, adding that the incentives are “misaligned.” 

“Facebook makes more money when you consume more content. … And the more anger that they get exposed to, the more they interact, the more they consume,” she said. 

Haugen did not draw a straight line between that decision to roll back safety systems and U.S. Capitol riot on January 6, though “60 Minutes” noted that the social network was used by some of the organizers of that violence.  

‘Ludicrous’ 

Earlier Sunday, Facebook dismissed as ludicrous suggestions it contributed to the January 6 riot.  

Facebook’s vice president of policy and global affairs Nick Clegg also vehemently pushed back at the assertion its platforms are toxic for teens, days after a tense congressional hearing in which U.S. lawmakers grilled the company over its impact on the mental health of young users. 

The New York Times reported Saturday that Clegg sought to preempt Haugen’s interview by penning a 1,500-word memo to staff alerting them of the “misleading” accusations. 

Clegg pressed the case in an appearance on CNN. 

“I think the assertion (that) January 6th can be explained because of social media, I just think that’s ludicrous,” Clegg told the broadcaster, saying it was “false comfort” to believe technology was driving America’s deepening political polarization. 

The responsibility for the insurrection “lies squarely with the people who inflicted the violence and those who encouraged them, including then-president Trump” and others who asserted the election was stolen, he added. 

Polarization 

While everyone “has a rogue uncle” or old classmate whose extreme views may be visible on Facebook, Clegg reportedly wrote in his memo, “changes to algorithmic ranking systems on one social media platform cannot explain wider societal polarization.” 

Facebook has encountered criticism that it fuels societal problems, attacks Clegg said should not rest at Facebook’s feet. But he acknowledged that some people may not benefit from social media use. 

“I don’t think it’s intuitively surprising if you’re not feeling great about yourself already, that then going on to social media can actually make you feel a bit worse,” he told CNN. 

He also disputed reporting in a Wall Street Journal series that Facebook’s own research warned of the harm that photo-sharing app Instagram can do to teen girls’ well-being. 

“It’s simply not borne out by our research or anybody else’s that Instagram is bad or toxic for all teens,” Clegg said, but added Facebook’s research will continue. 

Twitter Appeals French Court Ruling on Anti-Hate Speech

Twitter has appealed a French court decision that ordered it to give activists full access to all of its relevant documents on efforts to fight hate speech, lawyers and a judicial source said on Saturday.

 

In July, a French court ordered Twitter to grant six French anti-discrimination groups full access to all documents relating to the company’s efforts to combat hate speech since May 2020. The ruling applied to Twitter’s global operation, not just France.

 

Twitter has appealed the decision and a hearing has been set for December 9, 2021, a judicial source told AFP, confirming information released by the groups’ lawyers.

 

Twitter and its lawyers declined to comment.

 

The July order said that Twitter must hand over “all administrative, contractual, technical or commercial documents” detailing the resources it has assigned to fight homophobic, racist and sexist discourse on the site, as well as the offense of “condoning crimes against humanity”.

 

It also said Twitter must reveal how many moderators it employs in France to examine posts flagged as hateful, and data on the posts they process.

 

The July ruling gave the San Francisco-based company two months to comply. Twitter can ask for a suspension pending the appeal.

 

The six anti-discrimination groups had taken Twitter to court in France last year, accusing the US social media giant of “long-term and persistent” failures in blocking hateful comments from the site.  

 

The groups campaign against homophobia, racism and anti-Semitism.

 

Twitter’s hateful conduct policy bans users from promoting violence or threatening or attacking people based on their race, religion, gender identity or disability, among other forms of discrimination.  

 

Like other social media giants, it allows users to report posts they believe are hateful, and employs moderators to vet the content.  

 

But anti-discrimination groups have long complained that holes in the policy allow hateful comments to stay online in many cases.

 

How China’s Ban on Cryptocurrency Will Ripple Overseas

Since China’s government declared all cryptocurrency transactions illegal last week and banned citizens from working for crypto-related companies, the price of bitcoin went up despite being shut out of one of its biggest markets.

Experts say large-scale Chinese miners of cryptocurrency — the likes of Bitcoin and Ethereum — will take their high-powered, electricity-guzzling servers offshore. Exchanges of the digital money and the numerous Chinese startups linked to the trade also are expected to rebase offshore after dropping domestic customers from their rosters.

The shift highlights how virtual currencies can evade government regulation.

“The exchanges have been pushing offshore anyways, and with the exchange business you need cloud infrastructure, you need developers, you need management to move things in the right direction, and so whether that is sitting in Taipei, San Francisco, Singapore or Shanghai, it doesn’t really matter — those businesses are very virtual,” said Zennon Kapron, Singapore-based founder the financial consulting firm Kapronasia.

“The real impact we’ve probably seen though is in the miners, and most of those miners [are in] the process of shifting overseas or [have] already completed moving overseas,” he said.

Strongest anti-crypto action to date

On Sept. 24, the People’s Bank of China, Beijing’s monetary authority, released a statement saying cryptocurrencies lack the status of other monetary instruments. The notice, issued in tandem with nine other government agencies, including the Bureau of Public Security, declared all related business illegal and warned that cryptocurrency transactions originating outside China will also be treated as crimes.

Explaining the ban, China’s official Xinhua News Agency reported Friday that cryptocurrencies have disrupted the controlled economy’s financial systems and contributed to crimes such as money laundering.

Cryptocurrencies — digital commerce tools that aren’t linked to a centralized banking authority — first appeared in China around 2008. Chinese banks began to prohibit the use of digital currencies in 2013 and stepped up regulations after 2016.

China was the world’s biggest Bitcoin miner and supported the largest exchange by volume, according to the news website CryptoVantage. It says many of those who suddenly made millions when Bitcoin prices soared four years ago were in China.

Chinese miners and traders head to Singapore

The Chinese ban carries penalties for international exchanges that do business with people inside China, and news reports indicate international crypto exchanges are trying to cut ties with Chinese clients in recent days. But the companies themselves are largely staying quiet.

A spokesperson for digital currency exchange Coinbase said Wednesday it does not “have anything to share at this time” about the crackdown in China. U.S.-based Worldcoin Global, a new type of cryptocurrency, did not reply to a request for comment.

China’s growing pressure on crypto over the past few years had prompted stakeholders to leave the country, Kapron said, adding that less than a quarter of the country’s original cryptocurrency peer-to-peer lending startups — small firms that connect individual lenders and borrowers — remain in China.

Mining for digital currency — the process of using computers to enter bitcoins into circulation and verify cryptocurrency transactions in exchange for a payout — should get easier overseas as Chinese exit the market, Kapron said.

Smaller operators, he added, may be able to mine more easily without the competition of giant Chinese operations.

Singapore looms as a prime go-to place for operations that need not be physically onshore. The country had accepted about 300 cryptocurrency license applications as of July. From China, e-commerce giant Alibaba as well as digital financial firms Yillion Group and Hande Group have applied, news reports in Asia say.

Other Asian countries lack the legal welcome mat that Singapore has extended, said Jason Hsu, vice president of the Taiwan Fintech Association industry group.

“Where would that money flow to? I think it’s a question that needs to be answered,” Hsu said. “I think in Asia, Singapore would be a destination for them to go to. Singapore obviously has the clearest regulations and also wants to attract more digital fintech [financial-technology] companies.”

Outside Asia, Amsterdam and Frankfurt are “establishing their footprint as international centers” for financial technology, said Rajiv Biswas, Asia Pacific chief economist with market research firm IHS Markit. Financial technology covers cryptocurrency.

Western Europe ranked this year as the world’s biggest crypto economy in the world with inflows of more than $1 trillion or 25% of all global trade, activity, news and data service Chainalysis says. Europe’s surge follows similarly rapid growth in 2020.

Eventual resurgence for crypto in China?

Authorities in China are targeting crypto now as part of a wider “crackdown on overnight riches” and to “clean out the wild, wild West,” Hsu said, referring to largely unregulated market sectors. The trade will go underground for now, he forecasts, and China will eventually come out with an official digital currency issued through major banks.

Several countries are considering adopting new digital currencies that would allow people to exchange money without an intermediary, such as a bank. Proponents argue these currencies could capture the benefits of cryptocurrencies that make exchanging money easy, but without the price volatility of decentralized digital assets like bitcoin.

Chinese authorities may eventually swing to a more tolerant view of non-state-sanctioned digital currencies, though subject to strict criteria on what’s legal or otherwise, said Song Seng Wun, economist in the private banking unit of Malaysian bank CIMB. Blockchain, the core technology behind the public transaction ledger that makes crypto commerce transparent, could continue to develop in China for other ends, he added. 

 

 

China’s Tech Titans Funding Beijing’s Effort to Close Income Gap

During the three-day World Internet Conference held in Wuzhen, China, this week, the country’s biggest tech tycoons rushed to show their support for Beijing’s “common prosperity” initiative.

Their enthusiasm for the initiative comes amid a yearlong crackdown on the country’s tech industry, where several high-profile companies have faced investigations and fines. Formerly high-flying celebrity CEOs are now keeping a low profile.

Daniel Zhang, CEO at e-commerce giant Alibaba group, said his company’s donation of $15 billion to the initiative over the next five years represented its willingness to help China achieve its goal of prosperity for all.

Zhou Hongyi, billionaire entrepreneur and chairman and CEO of the country’s largest Internet security firm, Qihoo 360, said his company will donate an as yet undisclosed sum to the initiative and step up to help smaller firms thrive.

Stressing the need to develop these enterprises, Zhou said, “Our success depends on our country’s policies. … We must take the initiative to align our development with our national strategies and serve our country with science and technology.”

Lei Jun, CEO of consumer electronics manufacturer Xiaomi, said that technological development must be used to achieve social good and that tech companies should help build a good life for everyone.

Other tech giants, such as technology conglomerate Tencent, online agricultural marketplace Pinduoduo and food delivery platform Meituan, answered Beijing’s call before the Sept. 26-28 gathering, pledging financial support for social causes.

‘Common prosperity’ initiative

During his first eight years in office, Chinese President Xi Jinping occasionally mentioned the term “common prosperity.” Since February, when he declared China had eliminated poverty, “common prosperity” has become one of his favorite themes.

At a meeting of the Communist Party’s Central Committee for Financial and Economic Affairs on Aug. 17, Xi stressed that those who are already rich need to guide and help others achieve prosperity.

“Common prosperity means prosperity for all, not just a few people,” Xi said, according to a meeting note published by China’s state-run Xinhua News Agency. “We can allow some to get rich first, but we must then launch a scientific public policy to make sure every citizen can have their fair share.”

Central to achieving common prosperity is a concept known as the three distributions, first introduced by the Chinese economist Li Yining in the 1990s.

According to the explanation from China’s National Development and Reform Commission, the first distribution of wealth comes through market competition. The second is achieved through the state via taxes, subsidies and social welfare programs. The third distribution taps enterprises and individuals to redistribute their wealth through voluntary donations.

‘Third distribution’

“The target of this round of the common prosperity initiative is the wallet of wealthy domestic entrepreneurs,” said Lu Jun, founder of the influential nongovernmental organization Beijing Yirenping Center, in a phone interview with VOA Mandarin. His NGO focuses on eliminating discrimination and defending the rights of disadvantaged groups.

Wang Hsin-Hsien, a political science professor and chair of the East Asian Studies Institute at National Cheng-Chi University in Taiwan, told VOA Mandarin that businesses are essentially forced to make charity donations under the current system.

“China’s current common prosperity initiative is controlled by the party-state. That means large enterprises must make donations in order to show that they are choosing the right side. So I don’t think these donations will be voluntary,” he told VOA Mandarin via phone.

“This is not the charitable donation we see in Western countries, because eventually the money will be returned to the state for redistribution,” he added.

Meanwhile, analysts say this new wave of donation will not likely help boost China’s civil society.

NGOs under microscope

China has been tightening its grip on NGOs since 2016, demanding they provide specific funding sources and membership information or face being banned.

This year, China announced a new wave of crackdowns targeting NGOs. In May, the Ministry of Civil Affairs started to target “illegal NGOs with measures such as limiting their access to conference venues, publicity resources and manpower,” according to the state-owned news outlet China Daily.

“The moves were part of a sweeping campaign launched last month by the ministry and 21 other central agencies to clamp down on the unregistered NGOs, which have masqueraded as foundations, industrial associations and other nongovernmental groups to rake in money from the public,” China Daily said.

Lu told VOA Mandarin that the NGOs that can survive or get funding will be those that align their goals with the government’s agenda — unlike many NGOs outside China, whose views diverge from those of the government.

“I don’t think this is necessarily good news for NGOs, as I believe the money donated by private companies will go to the government-run or government-affiliated NGOs,” he said of the third distribution.

“Beijing won’t allow companies to donate to independent NGOs freely, let alone the ones they don’t like, such as NGOs working on human rights, labor rights and women’s rights.”  

 

 

 

 

Lithuania Urges Users to Ditch Chinese Smartphone Over ‘Built-In Censorship Tool’ 

A popular Chinese-manufactured phone has a built-in censorship tool that can blacklist search terms on the web, according to research by the Lithuanian government, which is urging owners of the phones to replace them. 

The Lithuanian Ministry of Defense analyzed three popular Chinese-made phones currently sold in Europe: the Xiaomi Mi 10T 5G; the Huawei P40 5G; the OnePlus 8T 5G. It reported finding a censorship tool built into the Xiaomi phone that can block certain search terms, including “Long live Taiwan’s independence,” “Free Tibet,” “Democratic Movement,” and “Voice of America.” 

 

“It is very, very worrying that there is a built-in censorship tool and of keywords, which filters or could filter your search on the web,” Lithuanian Vice Defense Minister Margiris Abukevicius told VOA.

 

Xiaomi 

 

Xiaomi is the most popular smartphone brand in Europe. The Lithuanian researchers said the blacklist function was turned off on the Xiaomi phone sold in Europe, but it can be activated remotely. The list of blocked search terms appears to be continually updated. There were 449 words or phrases on the blacklist in April 2021. By September, that number had tripled to 1,376.

 

“We clearly saw that all of those key words are politically motivated,” Abukevicius said. “Terms such as Tibet, Taiwan, democracy, U.S., and some companies like yours [Voice of America], are mentioned in that list. And they are adding [words] not only in Chinese, they are also adding words in Latin [script].”

 

German security services also have begun a technical examination of the Xiaomi phone. 

 

Xiaomi did not respond to VOA requests for comment. The firm said this week it was engaging an independent expert to assess the findings. 

Huawei 

 

The Lithuanian researchers found the Huawei P40 5G model collected users’ data — including how long they spent using the apps — and stored it on servers outside the European Union, beyond the jurisdiction of the EU’s strict data laws.

 

The report said Huawei’s official app store, called AppGallery, directed users to apps containing malware.

 

“A portion of the mobile applications contained on the application distribution platforms are imitations of the original applications, with malicious functionality or virus infestation; such applications can be downloaded and installed by the user on the mobile phone, thereby jeopardizing the security of the device and the data contained in it,” the report said. 

 

“Data security risks have also been identified in the Xiaomi device; factory-installed system applications send statistical data on the activity of certain applications installed on the device to servers of the Chinese cloud service provider Tencent, located in Singapore, the USA, the Netherlands, Germany and India,” the researchers wrote. 

 

In a statement, Huawei told VOA, “Huawei has always adhered to the principle of integrity, abided by the laws and regulations of the countries and regions where it operates. Huawei has a strong cybersecurity record in more than 170 countries and regions and has served over 3 billion users. Data is never processed outside the Huawei device.” 

 

It added, “Huawei is transparent about the necessary data it collects from customers, which is kept to a minimum and used to enhance personalization and the user’s experience. Huawei makes it clear that these apps are from publicly available sources, so the user isn’t forced to download an app.”

 

National security 

Lithuania has told government workers to get rid of the Xiaomi and Huawei phones. Abukevicius told VOA that other countries should take note of the research. 

 

“On the basis of national security, really, we are looking for ways to protect our state institutions and institutions working in national security and give them a chance to only work with trusted suppliers. When it comes to consumers, we are giving recommendations of course, you know, to really avoid using cloud services, avoid using some applications, Chinese-made applications,” Abukevicius said. 

 

China has yet to comment on the report. Many Western countries, including the United States, have blocked Huawei from the rollout of 5G mobile networks, fearing the company poses a security risk. 

 

“I think our research is an illustration of how we should go beyond that discussion in the telecommunications sector, that we should think about other sectors,” Abukevicius said. 

 

Diplomatic tensions 

 

The report comes against a backdrop of tense relations between Lithuania and China.

 

Both countries have withdrawn their ambassadors after Lithuania agreed to allow Taiwan to open a de facto embassy there using its own name. China claims Taiwan as its own territory. 

 

In many countries, Taiwan’s diplomatic missions are named after the capital, Taipei, rather than the island itself. In retaliation, Beijing last month halted rail freight to Lithuania and suspended trading licenses for Lithuanian producers.

 

The United States has reiterated its support for Lithuania in the face of what Washington called “economic coercion” by China. 

 

New Holographic Technology Provides Transportive Experience

A company in suburban Washington, D.C., is using cutting-edge technology to create lifelike video avatars to drop into music and training videos, games and other immersive environments. It’s an entry point to the so-called metaverse, as VOA’s Arzouma Kompaoré discovered while touring Avatar Dimension’s new studio.