Category Archives: News

Worldwide news. News is information about current events. This may be provided through many different media: word of mouth, printing, postal systems, broadcasting, electronic communication, or through the testimony of observers and witnesses to events. News is sometimes called “hard news” to differentiate it from soft media

Deutsche Bank Offices Raided in Money Laundering Probe

Police raided six Deutsche Bank offices in and around Frankfurt on Thursday over money laundering allegations linked to the “Panama Papers”, the public prosecutor’s office in Germany’s financial capital said.

Investigators are looking into the activities of two unnamed Deutsche Bank employees alleged to have helped clients set up offshore firms to launder money, the prosecutor’s office said.

Around 170 police officers, prosecutors and tax inspectors searched the offices where written and electronic business documents were seized.

“Of course, we will cooperate closely with the public prosecutor’s office in Frankfurt, as it is in our interest as well to clarify the facts,” Deutsche Bank said, adding it believed it had already provided all the relevant information related to the “Panama Papers”.

The news comes as Deutsche Bank tries to repair its tattered reputation after three years of losses and a drumbeat of financial and regulatory scandals.

Christian Sewing was appointed as chief executive in April to help the bank to rebuild. He trimmed U.S. operations and reshuffled the management board but revenue has continued to slip.

Deutsche Bank shares were down more than 3 percent by 1220 GMT and have lost almost half their value this year.

Offshore links

The investigation was triggered after investigators reviewed so-called “Offshore-Leaks” and “Panama Papers”, the prosecutor said.

The “Panama Papers”, which consist of millions of documents from Panamanian law firm Mossack Fonseca, were leaked to the media in April 2016.

Several banks, including Scandinavian lenders Nordea and Handelsbanken have already been fined by regulators for violating money laundering rules as a result of the papers.

The prosecutors said they are looking at whether Deutsche Bank may have assisted clients to set up offshore companies in tax havens so that funds transferred to accounts at Deutsche Bank could skirt anti-money laundering safeguards.

In 2016 alone, over 900 customers were served by a Deutsche Bank subsidiary registered on the British Virgin Islands, generating a volume of 311 million euros, the prosecutors said.

They also said Deutsche Bank employees are alleged to have breached their duties by neglecting to report money laundering suspicions about clients and offshore companies involved in tax evasion schemes.

The investigation is separate from another money laundering scandal surrounding Danish lender Danske Bank, where Deutsche Bank is involved.

Danske is under investigation for suspicious payments totaling 200 billion euros from 2007 onwards and a source with direct knowledge of the case has told Reuters Deutsche Bank helped to process the bulk of the payments.

A Deutsche Bank executive director has said the lender played only a secondary role as a so-called correspondent bank to Danske Bank, limiting what it needed to know about the people behind the transactions.

Under scrutiny

Weaknesses in Deutsche Bank’s controls that aim to prevent money laundering have caught the attention of regulators on both sides of the Atlantic. The bank has publicly said that it agreed it needed to improve its processes to properly identify clients.

In September, Germany’s financial watchdog – BaFin – ordered Deutsche Bank to do more to prevent money laundering and “terrorist financing,” and appointed KPMG as third party to assess progress.

In August, Reuters reported that Deutsche Bank had uncovered further shortcomings in its ability to fully identify clients and the source of their wealth.

Last year, Deutsche Bank was fined nearly $700 million for allowing money laundering through artificial trades between Moscow, London and New York. An investigation by the U.S.

Department of Justice is still ongoing.

Deutsche Bank has been under pressure after annual losses, and it agreed to pay a $7.2 billion settlement with U.S. authorities last year over its sale of toxic mortgage securities in the run-up to the 2008 financial crisis.

 

Trump Studying New Auto Tariffs After GM Restructuring

U.S. President Donald Trump said Wednesday that new auto tariffs were “being studied now,” asserting they could prevent job cuts such as the U.S. layoffs and plant closures that General Motors Co. announced this week. 

 

Trump said on Twitter that the 25 percent tariff placed on imported pickup trucks and commercial vans from markets outside North America in the 1960s had long boosted U.S. vehicle production. 

 

“If we did that with cars coming in, many more cars would be built here,” Trump said, “and G.M. would not be closing their plants in Ohio, Michigan & Maryland.” 

 

The United States has a 2.5 percent tariff on imported cars and sport utility vehicles from markets outside North America and South Korea. The new North American trade deal exempts the first 2.6 million SUVs and passenger cars built in Mexico and Canada from new tariffs. 

 

Several automakers said privately on Wednesday that they feared GM’s action could prompt Trump to act faster than expected on new tariffs. 

 

GM did not directly comment on Trump’s tweets but reiterated that it was committed to investing in the United States. On Monday, the company said it would shutter five North American plants, stop building six low-selling passenger cars in North America and cut up to 15,000 jobs. The company has no plans to shift production of those vehicles to other markets. 

 

The administration has for months been considering imposing dramatic new tariffs on imported vehicles. 

 

The U.S. Commerce Department has circulated draft recommendations to the White House on its investigation into whether to impose tariffs of up to 25 percent on imported cars and parts on national security grounds, Reuters reported earlier this month. 

 

“The President has great power on this issue – Because of the G.M. event, it is being studied now!” Trump said. 

 

Shock to industry

The prospect of tariffs of 25 percent on imported autos and parts has sent shock waves through the auto industry, with both U.S. and foreign-brand producers lobbying against it and warning that national security tariffs on EU and Japanese vehicles could dramatically raise the price of many vehicles. 

 

Trump has also harshly criticized GM for building cars in China. The United States slapped an additional 25 percent tariff on Chinese-made vehicles earlier this year, prompting China to retaliate. 

 

China currently imposes a 40 percent tariff on U.S. automobiles, while the United States has a 27.5 percent tariff on Chinese vehicles. 

 

U.S. Trade Representative Robert Lighthizer said in a statement on Wednesday that he “will examine all available tools to equalize the tariffs applied to automobiles.” 

 

Additional tariffs on Chinese-made vehicles and parts would have a limited impact, said Kristin Dziczek, an economist at the Center for Automotive Research. She noted only a small number of vehicles were exported from China to the United States annually. 

 

The White House previously pledged not to move forward with imposing national security tariffs on the European Union or Japan while it was making constructive progress in trade talks. 

 

Trump wants the EU and Japan to buy more American-made vehicles. He wants the EU and Japan to make trade concessions, including lowering the EU’s 10 percent tariff on imported vehicles and cutting nontariff barriers. 

 

The White House in recent weeks has reached out to the chief executives of German automakers, including Daimler AG, MW AG and Volkswagen AG about meeting to discuss the status of auto trade.  

Stocks Leap as Fed Chief Hints Interest Rate Increases May Taper Off

Federal Reserve Chair Jerome Powell boosted U.S. stock markets on Wednesday when he said interest rates were “just below” estimates of a level that neither brakes nor boosts a healthy economy. Many took his comments as a signal that the Fed’s three-year tightening cycle is ending. 

The S&P 500 and Dow posted their biggest percentage gains in eight months, while the Nasdaq saw its largest advance in just over a month following Powell’s speech to the Economic Club of New York. 

Powell said that while “there was a great deal to like” about U.S. prospects, “our gradual pace of raising interest rates has been an exercise in balancing risks.” 

Earlier in the day, in its first-ever financial stability report, the Fed cautioned that trade tensions, Brexit and troubled emerging markets could rock a U.S. financial system where asset prices are “elevated.” 

‘Close to neutral’

“[Powell is] now acknowledging he’s close to neutral, which suggests maybe not quite as many rate hikes in the future as investors believed,” said Jack Ablin, chief investment officer at Cresset Wealth Advisors in Chicago. “It’s certainly a change of language and welcome news to investors.” 

The U.S. Commerce Department affirmed that U.S. GDP grew in the third quarter at a 3.5 percent annual rate, but the goods trade deficit widened, consumer spending was revised lower and sales of new homes tumbled, suggesting clouds are gathering over what is now the second-longest economic expansion on record. 

The Dow Jones industrial average rose 617.7 points, or 2.5 percent, to 25,366.43, the S&P 500 gained 61.61 points, or 2.30 percent, to 2,743.78 and the Nasdaq Composite added 208.89 points, or 2.95 percent, to 7,291.59. 

Of the 11 major sectors in the S&P 500, all but utilities were positive. Technology and consumer discretionary were the biggest percentage gainers, each up more than 3 percent. 

The S&P 500 Automobile & Components index was up 1.4 percent after President Donald Trump said he was studying new auto tariffs in the wake of General Motors Co.’s announcement that it would close plants and cut its workforce. 

Humana cuts forecast

Health insurer Humana Inc. cut its 2019 forecast for Medicare drug plan enrollment but upped its estimated enrollment in the company’s Medicare Advantage plan. Its stock ended the session up 6.2 percent. 

Salesforce.com Inc. beat analysts’ earnings estimates and forecast better-than-expected 2020 revenue, sending its shares up 10.3 percent. Other cloud software makers rose on the news, with the ISE Cloud Index gaining 3.5 percent. 

Microsoft Corp briefly surpassed Apple Inc. in market cap but Apple took back its lead by closing. Nevertheless, Microsoft closed 4.0 percent higher as it benefited from optimism regarding demand for cloud computing services. 

Among losers, Tiffany & Co. shares dropped 11.8 percent after the luxury retailer missed quarterly sales estimates on slowing Chinese demand. 

Advancing issues outnumbered declining ones on the NYSE by a 3.95-to-1 ratio; on Nasdaq, a 3.58-to-1 ratio favored advancers. 

The S&P 500 posted 17 new 52-week highs and six new lows; the Nasdaq Composite recorded 37 new highs and 129 new lows. 

Volume on U.S. exchanges was 8.04 billion shares, compared with the 7.82 billion-share average over the last 20 trading days. 

Pelosi Nominated by Democrats for US House Speaker

Nancy Pelosi was nominated by fellow House Democrats to be speaker on Wednesday, but she still faces a showdown vote when the full House convenes in January. 

Pelosi entered the closed-door caucus election in an unusual position — running unopposed despite the clamor by some Democrats for new leadership. Votes were still being counted, but she was assured of victory. 

“Are there dissenters? Yes,” the California Democrat told reporters as voting was underway. “But I expect to have a powerful vote going forward.”

Pelosi was nominated as her party’s choice for speaker by Rep. Joe Kennedy of Massachusetts, with no fewer than eight colleagues set to second the choice, including Rep. John Lewis of Georgia, the civil rights leader, and three newly elected lawmakers.

As House Democrats met in private in the Capitol, they faced a simple “yes” or “no” choice on the ballots. 

A sign of the party’s mood emerged early as the House Democrats elected Rep. Hakeem Jeffries of New York as caucus chairman, elevating the charismatic 48-year-old from the Congressional Black Caucus as a new generation of leaders pushes to the forefront. 

His slim victory in that race, 123-113, over veteran Rep. Barbara Lee of California, another influential member of the Black Caucus, offered a window into the shifting landscape. Flanked by top progressive leaders, Lee made her pitch during the closed session, drawing on the record number of women, including minority women, who ran for office and are entering the new Congress.

The majority, though, went to Jeffries who used his speech to remind Democrats of their core accomplishments — from passage of the Civil Rights Act to the Affordable Care Act — before pivoting to his vision for the future. 

“I’m focused on standing up for everyone — white, black, Latino, Asian, Native American — every single American deserves us, here in the United States Congress to work, Democrats and Republicans, on their behalf to make their life better,” he said afterward.

Democrats regrouped for an afternoon session, and voting that includes various caucus positions could stretch on for hours. 

In a letter to colleagues ahead of voting, Pelosi gave a nod to those clamoring for change.

“We all agree that history is in a hurry, and we need to accelerate the pace of change in Congress,” she wrote, noting the “historic” class of new first-term lawmakers, the largest since Watergate, who led Democrats to the majority in the midterm election.

“My responsibility is to recognize the myriad of talent and tools at our disposal to take us in to the future by showcasing the idealism, intellect and imagination of our caucus,” she wrote.

Pelosi’s opponents had pledged to usher in a new era for Democrats. But one by one, the powerful California congresswoman picked off the would-be challengers and smoothed skeptics. In the end, there was no one willing, or able, to mount a serious campaign against her bid to reclaim the speaker’s job, which she held from 2007 to 2011, before the GOP took back the majority.

Pelosi still lacks the vote tally she’ll need in January, when the new Congress convenes, to ascend to the post.

“You can’t beat someone with no one,” said Rep.-elect Jahana Hayes, D-Conn., who explained in a statement that she came to Washington eager to hear from colleagues and “hopeful that many candidates would step up to the plate.”

But “the only person that declared their intentions, spoke to me about their vision and asked me for my vote is Nancy Pelosi.”

Democrats were poised to return their entire top leadership team, including Rep. Steny Hoyer of Maryland in the No. 2 spot as majority leader and Rep. Jim Clyburn of South Carolina in the No. 3 spot as whip. They were running unopposed.

Plenty of newcomers were set to fill the down-ballot slots

Those trying to oust Pelosi say they always knew the internal caucus election would fall in her favor. She only needed a simple majority of Democrats, who have a 233-seat majority, with several races still undecided, to win the nomination.

But she’ll need 218 votes in January, half the full 435-seat House, which is harder, if all Republicans vote against her, as is likely — though she could win with fewer votes if some lawmakers are absent or vote present.

Rep. Kurt Schrader, D-Ore., played down the significance of Wednesday’s caucus vote and said the true fight for House speaker will occur in January.

“We’re not going to make a big play of it,” he said. “It’s Jan. 3.”

Several factions within the Democratic caucus in the House worked against Pelosi, but they failed to gain ground in recent days. Still, there seem to be more than enough votes to stop Pelosi in January. Some say only with a floor fight in view will new leaders emerge. They say there are plenty of Democrats on the bench who could step up to the job.

But Pelosi’s ability to stand unopposed Wednesday, despite the threats from within and reams of attack ads against her, showed the staying power of her brand of machine politics.

“The reality is there is no alternative,” said Rep. Brian Higgins, D-N.Y., who had signed on to the letter opposing her but reversed course after Pelosi tapped him to lead his effort to expand Medicare options to those age 50 to 65.

She was the female speaker and hopes to return to a role few men have had twice — most recently, legendary Speaker Sam Rayburn a half-century ago.

Between now and January, Pelosi will work the levers of power by doling out the many committee seat assignments, subcommittee chairmanships and other perks she is able to offer, or withhold, as incentives to win over supporters.

Rwandan Dissident Draws US Congressional Support

U.S. congressional lawmakers are pressing Rwanda’s government against incarcerating dissident politician Diane Rwigara, who faces up to 22 years in prison after being convicted of inciting insurrection and forgery.

Diane Rwigara, a former presidential candidate, is scheduled to be sentenced December 6, along with her mother, Adeline Rwigara. Both women were tried November 7, with the elder Rwigara convicted of insurrection and promoting ethnic hatred. They had been detained by police in October 2017 and jailed for a year but released on bail last month, prior to trial. They remain at home in Kigali, the capital city, under travel restrictions.

“Peaceful political expression is not a crime. Running for office is not a crime,” the Tom Lantos Human Rights Commission — a bipartisan congressional caucus named for its co-founder — said in a tweet posted earlier Monday.

The commission, which defends and promotes human rights internationally, has scheduled a December 4 briefing on Rwanda’s treatment of human rights and political prisoners, including the Rwigaras.

Diane Rwigara ran for president in 2017, challenging incumbent Paul Kagame, but was disqualified after election officials alleged that some signatures needed for her candidacy had been falsified.

In July 2017, the activist started the People Salvation Movement to “encourage Rwandans to hold their government accountable,” as she told CNN. She later was arrested on charges of incitement and fraud. Her mother also was arrested for criticizing the government in a WhatsApp exchange with another relative living outside Rwanda. 

Diane Rwigara denied the charges, saying Kagame was trying to prevent her from speaking out against injustice. In an interview with VOA after her October release, she called for the release of political prisoners and others unjustly detained.     

Kagame oversaw the central African country’s reconciliation after the 1994 genocide, but rights groups have accused him and the ruling Rwandan Patriotic Front of increasingly clamping down on dissent.

This report originated in VOA’s Central Africa Service.

Trump Says Manafort Pardon ‘Not Off the Table’

U.S. President Donald Trump said Wednesday that a pardon for his onetime 2016 campaign chairman, Paul Manafort, who is facing years in prison for financial fraud, was “not off the table.” 

Trump told the New York Post in a White House interview that he had never discussed pardoning the 69-year-old longtime lobbyist. 

“But I wouldn’t take it off the table,” Trump said. “Why would I take it off the table?” 

In August, a jury in northern Virginia, just outside Washington, found Manafort guilty of eight counts of tax and bank fraud stemming from his work as a political consultant in Ukraine that predated six months of work, including three as chairman, on Trump’s successful 2016 run for the White House. 

Manafort later pleaded guilty in Washington to two new counts — conspiracy against the U.S., which involved financial crimes, and conspiracy to obstruct justice — and agreed to cooperate with special counsel Robert Mueller’s investigation of possible Trump campaign links to Russia and whether Trump, as president, obstructed justice to try to thwart the probe. 

As part of his plea deal with Mueller, Manafort agreed to “fully, truthfully, completely and forthrightly” questions about “any and all matters” of interest to the government. 

But in an abrupt twist this week, Mueller accused Manafort of breaching the plea agreement by repeatedly lying to federal investigators, an allegation Manafort’s lawyers rejected. Prosecutors did not describe what Manafort lied about but said they would spell it out in a court filing. 

Trump has for months derided Mueller’s 18-month investigation as an unending “witch hunt,” one that he suggested in the interview “can go on for the rest of [Mueller’s] life.” 

Trump claimed in the interview with the New York tabloid that Mueller had asked Manafort, former Trump political adviser Roger Stone and Stone’s associate, Jerome Corsi, to lie about their roles in the 2016 political campaign in order to implicate others in the Trump orbit. 

“If you told the truth, you go to jail,” Trump said of the prosecutors’ pressure on witnesses. 

“You know, this flipping stuff is terrible,” Trump said of witnesses asked to implicate higher-ups. “You flip and you lie and you get — the prosecutors will tell you 99 percent of the time they can get people to flip. It’s rare that they can’t. 

“But I had three people: Manafort, Corsi — I don’t know Corsi, but he refuses to say what they demanded — Manafort, Corsi and Roger Stone,” Trump said. 

Corsi this week broke off negotiations on a plea deal with Mueller’s investigators. Corsi and Stone have both suggested Mueller might indict them for criminal offenses related to the 2016 campaign. 

“It’s actually very brave,” Trump said of Manafort, Stone and Corsi. “But this is where we are. And it’s a terrible thing.” 

Trump last week provided written answers to about two dozen questions posed by Mueller about his own actions and recollections of the campaign as he shifted from his life as a New York real estate mogul to that of a first-time candidate for public office. But it is not known whether Mueller will seek to follow up with more questions for Trump, now nearly halfway through his first term in the White House. 

Trump: US Tariffs on More Foreign Vehicles Would Have Prevented GM Plant Closures

U.S. President Donald Trump touted the use of U.S. tariffs on foreign small trucks Wednesday, saying their placement on other foreign vehicles would have prevented the closure of several General Motors plants and the loss of thousands of coveted manufacturing jobs.

Trump noted on Twitter that brisk U.S. small truck sales in the country are due to a 25-percent tariff on small truck imports.

The president reiterated on Twitter that “countries that send us cars have taken advantage of the U.S. for decades.” Trump added he has “great power on this issue,” which he said “is being studied now.”

Trump has threatened to eliminate all federal subsidies to GM in response to the company’s planned closure of five plants and the elimination of 14,000 jobs in North America. Questions remain, though, about whether Trump has the authority to act against the automaker without congressional approval.

Federal tax credits of up to $7,500 are available to those who buy GM electric vehicles. Killing the subsidies may have little financial impact on GM because it is on the cusp of reaching its subsidy limit.

Many of the jobs would be eliminated in Midwestern U.S. states, a region where Trump has long promised a manufacturing rebirth.

GM, which said it has invested more than $22 billion in U.S. operations since it came out of bankruptcy in 2009, has tried to appease the Trump administration while justifying its decisions.

“We appreciate the actions this administration has taken on behalf of industry to improve the overall competitiveness of U.S. manufacturing,” GM said in a statement Tuesday.

Before GM can shutter factories next year in Michigan, Ohio and Ontario, Canada, it must reach agreement with the United Auto Workers union. The union has vowed to fight the closures legally and in collective bargaining.

GM’s restructuring reflects changes in buying trends in North America, prompting vehicle manufacturers to shift away from cars and toward SUVs and trucks.

 

 

 

 

 

With An Eye on Past Problems, Facebook Expands Local Feature

Facebook is cautiously expanding a feature that shows people local news and information, including missing-person alerts, road closures, crime reports and school announcements.

Called “Today In,” the service shows people information from their towns and cities from such sources as news outlets, government entities and community groups. Facebook launched the service in January with six cities and expanded that to 25, then more. On Wednesday, “Today In” is expanding to 400 cities in the U.S. — and a few others in Australia.

The move comes as Facebook tries to shake off its reputation as a hotbed for misinformation and elections-meddling and rather a place for communities and people to come together and stay informed.

Here are some things to know about this effort, and why it matters:

The big picture

It’s something users have asked for, the company says. Think of it as an evolution of a “trending” feature the company dropped earlier this year. That feature, which showed news articles that were popular among users, but was rife with such problems as fake news and accusations of bias.

Anthea Watson Strong, product manager for local news and community information, said her team learned from the problems with that feature.

“We feel deeply the mistakes of our foremothers and forefathers,” she said.

This time around, Facebook employees went to some of the cities they were launching in and met with users. They tried to predict problems by doing “pre-mortem” assessments, she said. That is, instead of a “post-mortem” where engineers dissect what went wrong after the fact, they tried to anticipate how people might misuse a feature — for financial gain, for example.

Facebook isn’t saying how long it has been taking this “pre-mortem” approach, though the practice isn’t unique to the company. Nonetheless, it’s a significant step given that many of Facebook’s current problems stem from its failure to foresee how bad actors might co-opt the service.

Facebook also hopes the feature’s slow rollout will prevent problems.

How it works

To find out if “Today In” is available in your city or town, tap the “menu” icon with the three horizontal lines. Then scroll down until you see it. If you want, you can choose to see the local updates directly in your news feed.

For now, the company is offering this only in small and mid-sized cities such as Conroe, Texas, Morgantown, West Virginia, and Santa Fe, New Mexico. Large cities such as New York or Los Angeles have added challenges, such as an abundance of news and information, and may need to be broken up into smaller neighborhoods.

The posts in “Today In” are curated by artificial intelligence; there is no human involvement. The service aggregates posts from the Facebook pages for news organizations, government agencies and community groups like dog shelters. For this reason, a kid couldn’t declare a snow day, because “Today In” relies on the school’s official page. Discussion posts from local Facebook groups may also be included.

For now, the information is tailored only by geography, but this might change. A person with no kids, for example, might not want to see updates from schools.

Safeguards?

Facebook uses software filters to weed out objectionable content, just as it does on people’s regular news feed. But the filters are turned up for “Today In.” If a good friend posts something a bit objectionable, you are still likely to see it because Facebook takes your friendship into account. But “Today In” posts aren’t coming from your friends, so Facebook is more likely to keep it out.

 

 

Porsche Shows off New Edition of Mainstay 911 Sports Car

Porsche says its future is in electric cars but for now it is rolling out a more powerful version of its internal combustion mainstay, the sleek 911 sports car.

Stuttgart-based Porsche, part of Volkswagen, is to show off the eighth version of its brand-defining model at the Los Angeles Auto Show.

 

The new 911 doesn’t look much different than earlier editions of the car. The new one has bigger wheel housings and a slightly wider body but the same long hood, sloping roof and prominent headlights that have marked successive versions since 1963.

 

The company said in a news release Wednesday that the new 911 Carrera S and 4S have flat six-cylinder turbocharged engines putting out 443 horsepower, 23 horsepower more than the predecessor. The Carrera S has a top speed of 191 mph and accelerates from zero to 60 mph (96.5 kph) in 3.5 seconds.

 

The rear-drive 2020 Carrera S has a base price of $113,200 and the 4S all-wheel drive version starts at $120,600, not including a $1,050 delivery fee. They can be ordered now and will reach dealers in summer 2019.

 

Porsche boss Oliver Blume says that the 911 remains “the core of our brand, we are making it even more emotional.”

 

Blume says nonetheless by 2025 about half of all new Porsche cars and SUVs will have electric motors, whether they are all-electric or hybrids combining batteries with internal combustion engines.

 

He was quoted by the Welt am Sonntag newspaper as saying that the company would be ready for a world in which some cities and countries are talking about banning internal combustion cars in coming decades. “It’s clear, the future belongs to electric mobility,” he said.

 

The company is developing an all-electric sports car, the Taycan, that would compete with sports car offerings by Tesla, BMW and others.

 

 

 

US Charges 2 Iranians in First Online Ransom Case

In the first case of its kind, the U.S. Justice Department announced charges Wednesday against two Iranian hackers for allegedly launching so-called ransomware on the computer networks of U.S. municipalities, hospitals and other public institutions and extorting millions of dollars.

Ransomware is a type of malware used by cybercriminals to lock down computers and extort money from their users in exchange for providing the keys to unlock them. Once used primarily against individuals, ransomware has been increasingly employed in cyberattacks on businesses.

Faramarz Shahi Savandi, 34, and Mohammad Mehdi Shah Mansouri, 27, are accused of creating the SamSam Ransomware in December 2015 and installing it on the computer networks of more than 230 public and private entities in the United States and Canada, according to a 26-page indictment unsealed Wednesday.

With the targeted computer users unable to access their data, Savandi and Mansouri, operating out of Iran, would then demand a ransom payment made in the form of the virtual currency bitcoin in exchange for decryption keys for the encrypted data.

According to the indictment, the two Iranians received more than $6 million in cryptocurrencies from their victims which they converted into Iranian currency, or rial, using Iran-based bitcoin exchanges. About half of the infiltrated entities refused to make a ransom payment and suffered over $30 million in lost data, according to the indictment.

The victims included the cities of Atlanta, Newark and San Diego, the Colorado Department of Transportation, the University of Calgary in Calgary, Canada, and six U.S. public health care-related entities.

Deputy Attorney General Rod Rosenstein announced the six-count indictment at a press conference in Washington.

“Every sector of our economy is a target of malicious cyberactivity,” Rosenstein said. “But the events described in this indictment highlight the urgent need for municipalities, public utilities, health care institutions, universities, and other public organizations to enhance their cybersecurity.”

The two indicted Iranians remain at large and have been placed on the FBI’s wanted list. They’re charged with one count of conspiracy to commit wire fraud and two counts of intentional damage to a protected computer, among other related crimes.

The indictment marks the first time the Justice Department has brought charges against cybercriminals involved in a ransomware and extortion scheme, according to Rosenstein.  

Ransomware has grown in sophistication and distribution in recent years. According to a report by the cybersecurity firm Bitdefender, ransomware payments were expected to reach a record $2 billion in 2017.

‘Trend’ from Iran

The charges are also the latest in a string of indictments brought against Iranian hackers and cybercriminals in recent months. In March, prosecutors charged nine Iranian hackers with penetrating the computer networks of hundreds of American and foreign universities and other institutions to steal valuable research material. Unlike some of the previously indicted Iranian hackers, however, Savandi and Mansouri are not believed to have ties to Tehran.

“The actions highlighted today, which represent a continuing trend of cybercriminal activity emanating from Iran, were particularly threatening, as they targeted public safety institutions, including U.S. hospital systems and governmental entities,” said Amy Hess, executive assistant director of the FBI. “As cyberthreats evolve and cybercriminals develop more sophisticated techniques, so do we.”

The 35-month computer hacking scheme led by Savandi and Mansouri began in January 2016 with an attack on an unidentified business in Mercer County, New Jersey, and moved on to public entities such as the City of Newark and health care providers such as Kansas Heart Hospital in Wichita, Kansas. 

Assistant Attorney General Brian A. Benczkowski said the Iranian hackers carefully chose their targets. A few days prior to attacking the network of Kansas Heart Hospital, for example, they “conducted online searches concerning the hospital and accessed its website,” he said.

Kimberly Goody, manager of cybercrime analysis at cybersecurity firm FireEye, said the hackers probably chose to target health care and government organizations because “they provide critical services and believed their likelihood of paying was higher as a result.”

The indictment does not name the entities that paid a ransom.

Jeff Seldin contributed to this report.

Seoul’s Telecom Outage Highlights Need for Redundancy in Connected World

Residents in Seoul discovered how fragile their telecommunications system was this past weekend when a fire disrupted service for millions. The government and the provider vowed to implement changes to avoid a repeat of the event, but the system failure demonstrated a need for greater redundancy and preparation for future natural and technological disasters.

The fire affected customers of KT, the nation’s second largest telecommunications company. They found themselves unable to make calls, access the internet, complete ATM or credit card transactions, and watch television. Local media also reported an elderly woman died when she fell ill and her husband wasn’t able to reach emergency services during the service outage.

Lee Manjong, chairman of the Korean Association for Terrorism Studies and professor of the department of Law & Police at Howon University, told VOA that while it is nearly impossible to prevent widespread system outages, certain steps can be taken to avoid catastrophic failures.

“It is necessary to split the public safety net (fire, medical, and police emergency services) and make system backups (redundancies) compulsory,” he said.

Following the blaze, South Korea’s minister of Science and ICT (Information, Communications, and Technology), You Young-min, spoke to the CEOs of South Korea’s three major communication companies (SK Telecom, KT, and LG U+) to discuss their backup plans.

You said the companies “need to swiftly change their contract clauses on compensation issues and also need to come up with plans that would reroute traffic if such accidents, which shouldn’t happen again, happen.”

When asked for specifics on what steps the government planned on taking to prevent a similar event in the future, the ministry declined to offer specifics, stating that responsible parties would prepare fire prevention measures this year and set up a task force to implement recommendations.

Local broadcaster MBC also reported that telecommunication companies and the government held a 20-minute virtual natural disaster drill in May to simulate a system outage, but the simulation proved to be ineffective in real-world situations.

Interconnected services

The Seoul fire and resulting system outage demonstrated how interconnected services are in the 21st century.

“If a network is down, then it affects other networks such as finance, power, energy, and railway,” said Lee.

He said there are multiple ways the electronic infrastructure can be paralyzed. This includes physical damage, natural disasters, and cyber attacks. However, Lee notes disruptions caused by cyber incursions are more effective.

“Cyber attacks are more efficient as they can take place without access to the physical location of the target,” he said.

According to Lee, this is because the government is able to secure physical sites, so cyber-warriors choose “soft targets” connected through the Internet.

A distributed denial-of-service (DDos) attack could be launched from the Internet and attack telecommunication networks. This type of attack floods a computer network with incoming data packets and overwhelms the system, effectively shutting it down. Lee said such attacks on telecom systems could wreak havoc and paralyze communication.

He cautioned that a successful cyber attack on South Korea’s technological infrastructure could yield “unimaginable” damage because of the country’s reliance on networked services.

Fire and recovery

Saturday’s fire struck an underground facility of KT, destroying telephone lines and fiber optic cables, taking about 10 hours to suppress. 

Seoul authorities rate facilities on a scale from A to D. Buildings rated A, B, or C must have adequate fire prevention systems installed, while those receiving a D rating do not.

KT’s Ahyeon facility, where the fire took place, was one of 27 D-rated facilities belonging to the company. As such, fire scene investigators found there were no fire detectors or sprinkler system installed at the Ahyeon facility and only a single fire extinguisher present.

South Korea’s other telecommunication carriers utilize over 800 similar facilities throughout the country, none of which are required to have fire detection equipment or sprinklers installed.

Lee said government regulations must be altered to bridge the gaps to ensure that such facilities are required to have redundant services elsewhere in the event of a natural disaster or cyber attack.

Estimates are the blaze resulted in about $7 million in property damage. KT has announced it would compensate affected customers by awarding them a free month of service for their inconvenience. KB security expects that amount to total about $27.5 million.

In a text message to customers, KT said it was “deeply sorry for the inconvenience. We will adopt preventive measures such as safety inspections… to avoid a recurrence.”

Seoul officials told VOA the cause of the fire remains unknown and the investigation to determine its source could last a month.

Lee Ju-hyun contributed to this report.

Ocean Shock: Building a Silicon Valley of the Sea

This is part of “Ocean Shock,” a Reuters series exploring climate change’s impact on sea creatures and the people who depend on them.

Norway has built the world’s biggest salmon-farming industry. But it wants to go bigger. With their lucrative oil fields now in decline, Norwegians have ambitious plans for aquaculture to power their economy far into the future.

Climate change could make those dreams harder to realize.

Salmon feed is based on fishmeal, produced by grinding up wild-caught fish. With warming waters and ocean acidification pushing underwater ecosystems to the breaking point, Big Aquaculture is seeking ways to feed fish that aren’t hostage to increasingly unpredictable seas.

“Feed has a couple of bottlenecks: We’re still using marine resources, for example fishmeal and fish oil, to then put into fish. This is not necessarily sustainable in the long term,” said Georg Baunach, co-founder of Hatch, an accelerator focused on supporting aquaculture startups. “And that’s why we need innovation in feed.”

Entrepreneurs, venture capitalists and scientists are racing to identify alternatives, turning the Norwegian cities of Bergen and Stavanger into a Silicon Valley of the Sea. Spending on research and development in Norway’s aquaculture sector increased by 30 percent to 2.3 billion kroner, or $275 million, between 2013 and 2015, according to official data quoted by Hatch, as startups and research institutes raced to develop disruptive new technologies.

The innovators aren’t short of ideas. At Norway’s biggest oil refinery, a startup called CO2Bio is harnessing greenhouse gases to culture algae that can then be harvested as a sustainable source of fish feed.

At the Institute of Marine Research in Bergen, the Aquafly project is investigating whether black soldier flies fed on waste products from the food industry or the seaweed growing off Norway’s coast could be another viable feed ingredient.

“The insects are also part of this whole circular economy, where instead of throwing away things you would reuse and recycle and upcycle,” said Nina Liland, one of the Aquafly researchers. “Potentially you could use food waste from households to produce insects that could be used for fish feeds: That would be an optimal scenario.”

Various companies are working on projects to recycle more of the vast amounts of waste dumped into the sea by Norway’s aquaculture industry into products such as biogas or fertilizer.

Researchers are also looking for ways to combat the sea lice parasites that thrive in salmon cages, which are a major brake on the industry’s plans to expand.

Time may not be on the fish farmers’ side. With climate change projected to intensify in the coming decades, the challenge will be to turn promising new ideas into viable projects fast enough to shield their dreams of a prosperous future from the growing turmoil at sea.

Manafort Allegations Throw New Uncertainty into Russia Probe

The breakdown of a plea deal with former Trump campaign chairman Paul Manafort and an explosive British news report about alleged contacts he may have had with WikiLeaks founder Julian Assange threw a new element of uncertainty into the Trump-Russia investigation on Tuesday.

 

A day after prosecutors accused Manafort of repeatedly lying to them, trashing his agreement to tell all in return for a lighter sentence, he adamantly denied a report in the Guardian that he had met secretly with Assange in March 2016. That’s the same month he joined the Trump campaign and that Russian hackers began an effort to penetrate the email accounts of Hillary Clinton’s presidential campaign.

 

The developments thrust Manafort back into the investigation spotlight, raising new questions about what he knows and what prosecutors say he might be attempting to conceal as they probe Russian election interference and any possible coordination with Trump associates in the campaign that sent the celebrity businessman to the White House.

 

At the same time, other figures entangled in the investigation, including Trump himself, have been scrambling to escalate attacks and allegations against prosecutors who have spent weeks working quietly behind the scenes.

 

Besides denying he’d ever met Assange, Manafort, who is currently in jail, said he’d told special counsel Robert Mueller’s prosecutors the truth in weeks of questioning. And WikiLeaks said Manafort had never met with Assange, offering to bet London’s Guardian newspaper “a million dollars and its editor’s head.”

 

Assange, whose organization published thousands of emails stolen from Clinton’s campaign in 2016, is in the Ecuadorean Embassy in London under a claim of asylum.

 

It is unclear what prosecutors contend Manafort lied about, though they’re expected to make a public filing ahead of sentencing that could offer answers.

 

Dissolution of the plea deal could be a devastating outcome for a defendant who suddenly admitted guilt last September after months of maintaining his innocence and who bet on his cooperation getting him a shorter sentence. But it’s also a potentially major setback for investigators given that Manafort steered the campaign during a vital stretch of 2016, including a time when prosecutors say Russian intelligence was working to sway the election in Trump’s favor.

 

The prosecutors’ terse three-page filing underscored their exasperation not only at Manafort’s alleged deception but also at the loss of an important witness present for key moments under investigation, including a Trump Tower meeting at which Trump’s oldest son expected to receive “dirt” about Democrat Hillary Clinton from a Kremlin-connected lawyer.

 

“The fact is, they wanted his cooperation. They wanted him to truthfully reveal what he knew, so they’re not getting what they wanted,”said Washington defense lawyer Peter Zeidenberg. “This isn’t like a good development where they’re clapping their hands and saying, ‘Now we get to crush this guy.'”

 

Manafort’s motivation, if indeed he lied to Mueller’s team, also was unclear.

 

Trump attorney Rudy Giuliani said in a telephone interview that Trump and his lawyers agree a presidential pardon should not be considered “now.”

 

However, he added, “The president could consider it at an appropriate time as Manafort has the same rights as any American.”

The Monday night revelation of the Mueller filing on Manafort came at a delicate time for investigators, who have gone months without any new charges and continue to probe possible links between Trump associates and WikiLeaks, the anti-secrecy website that released tens of thousands of Democratic emails stolen by Russian spies during the 2016 campaign.

 

As Trump continues raging against the investigation — he tweeted Tuesday that Mueller was doing “TREMENDOUS damage to our Criminal Justice system” — others in the crosshairs have filled the vacuum of Mueller’s recent silence by publicly declaring their innocence, accusing prosecutors of coercing testimony or tempting fate by turning aside negotiations.

An associate of Trump confidant Roger Stone is contesting a grand jury subpoena in court. Jerome Corsi said Monday he was rejecting a plea offer and told CNN that being questioned was like being “interrogated as a POW in the Korean War.”

Stone, under investigation himself for connections to WikiLeaks, has repeatedly disparaged Mueller’s investigation and said Monday his friend Corsi was at risk for prosecution “not for lying but for refusing to lie.”

 

That statement called to mind a Trump tweet from earlier this month in which he stated without evidence that Mueller’s investigators were “screaming and shouting at people, horribly threatening them to come up with the answers they want.”

 

Manafort, for his part, had been quiet in public since pleading guilty to conspiracy to obstruct justice and conspiracy against the United States. He has met repeatedly since then with investigators.

 

He remained in the spotlight Tuesday when the Guardian newspaper published a report saying he had secretly met Assange within days or weeks of being brought aboard the Trump campaign. The report suggested a direct connection between WikiLeaks and the Trump campaign.

The Guardian, which did not identify the sources for its reporting, said Manafort met with Assange “around March 2016” — the same month that Russian hackers began their all-out effort to steal emails from the Clinton campaign.

 

Manafort called the story “totally false and deliberately libelous,” saying in a statement that he had never met Assange or anyone close to him.

The Guardian cited unidentified sources as saying Manafort first met Assange at the embassy in 2013, a year after Assange took refuge there to avoid being extradited to Sweden over sex crime allegations.

 

The newspaper said Manafort returned in 2015 and 2016 and that its sources had “tentatively dated” the final visit to March.

 

There was no detail on what might have been discussed.

 

The Trump campaign announced Manafort’s hiring on March 29, 2016, and he served as the convention manager tasked with lining up delegates for the Republican National Convention. He was promoted to chairman that May.

An AP investigation into Russian hacking showed that government-aligned cyberspies began an aggressive effort to penetrate the Clinton campaign’s email accounts on March 10, 2016.

 

Justice Department prosecutors in Virginia recently inadvertently disclosed the existence of sealed criminal charges against Assange, though it’s unclear what the case involves. Prosecutors were in court Tuesday arguing against unsealing any charge.

 

Meanwhile, a judge may soon set a sentencing date for Manafort whose hopes for leniency now appear dashed.

 

“The cooperating defendant usually is very aware of what’s at stake,” said Shanlon Wu, who represented Manafort’s onetime co-defendant Rick Gates. “What I always say to any client of mine who’s contemplating that — there is no going back.”

 

“It’s like being a little bit pregnant,” he added. “There’s no such thing.”

Republican Hyde-Smith Wins Divisive Mississippi Runoff

Republican U.S. Sen. Cindy Hyde-Smith won a divisive Mississippi runoff Tuesday, surviving a video-recorded remark decried as racist and defeating a former federal official who hoped to become the state’s first African-American senator since Reconstruction.

 

The runoff was rocked by the video, in which Hyde-Smith said of a supporter, “If he invited me to a public hanging, I’d be on the front row.” A separate video showed her talking about “liberal folks” and making it “just a little more difficult” for them to vote.

 

The comments by Hyde-Smith, who is white, made Mississippi’s history of racist lynchings a theme of the runoff and spurred many black voters to return to the polls Tuesday.

 

In the aftermath of the video, Republicans worried they could face a repeat of last year’s special election in Alabama, in which a flawed Republican candidate handed Democrats a reliable GOP Senate seat in the Deep South. The GOP pumped resources into Mississippi, and President Donald Trump made a strong effort on behalf of Hyde-Smith, holding last-minute rallies in Mississippi on Monday.

 

The contest caps a campaign season that exposed persistent racial divisions in America — and the willingness of some political candidates to exploit them to win elections. With Hyde-Smith’s victory, Republicans control 53 of the Senate’s 100 seats. The GOP lost control of the House, where Democrats will assume the majority in January.

 

In the final weeks of the runoff, Hyde-Smith’s campaign said the remark about making voting difficult was a joke. She said the “public hanging” comment was “an exaggerated expression of regard” for a fellow cattle rancher. During a televised debate nine days after the video was publicized, she apologized to “anyone that was offended by my comments,” but also said the remark was used as a “weapon” against her.

Democratic opponent Mike Espy, 64, a former U.S. agriculture secretary, replied: “I don’t know what’s in your heart, but I know what came out of your mouth.”

Addressing his supporters Tuesday night, Espy said: “While this is not the result we were hoping for, I am proud of the historic campaign we ran and grateful for the support we received across Mississippi. We built the largest grassroots organization our state has seen in a generation.”

 

The “public hanging” comment also resonated with his supporters.

 

Some corporate donors, including Walmart, requested refunds on their campaign contributions to Hyde-Smith after the videos surfaced.

 

Hyde-Smith was in her second term as Mississippi agriculture commissioner when Republican Gov. Phil Bryant appointed her to temporarily succeed GOP Sen. Thad Cochran. The longtime lawmaker retired in April amid health concerns.

 

The win makes Hyde-Smith, 59, the first woman elected to Congress from Mississippi.

 

Hyde-Smith and Espy emerged from a field of four candidates Nov. 6 to advance to Tuesday’s runoff. Her win allows her to complete the final two years of Cochran’s six-year term.

Ahead of G20, Trump Open to Deal with China

President Donald Trump and China’s leader Xi Jinping will meet to discuss trade issues on the sidelines of the G20 Summit in Buenos Aires this week. The head of the U.S. National Economic Council says there’s a good possibility a deal can be achieved to cool down the ongoing U.S.– Sino trade war, but warns the Trump administration will consider additional tariffs if no deal is struck. Patsy Widakuswara reports from the White House.

Report: Trump Says ‘Not Even a Little Bit Happy’ with Fed’s Powell

U.S. President Donald Trump on Tuesday kept up his criticism of Federal Reserve Chairman Jerome Powell, saying rising interest rates and other Fed policies were damaging the U.S. economy, the Washington Post said.

“So far, I’m not even a little bit happy with my selection of Jay,” the Post quoted Trump as saying in an interview, referring to the man he picked last year to lead the Fed.

“Not even a little bit. And I’m not blaming anybody, but I’m just telling you I think that the Fed is way off-base with what they’re doing.”

In recent months, the Republican president has repeatedly criticized Powell and the Fed’s interest rate increases that he said was making it more expensive for his administration to finance its escalating deficits. Trump has called the Fed “crazy” and “ridiculous.”

“I’m doing deals, and I’m not being accommodated by the Fed,” Trump told the Post on Tuesday. “They’re making a mistake because I have a gut, and my gut tells me more sometimes than anybody else’s brain can ever tell me.”

Google Blocks Gender-Based Pronouns From New AI Tool

Alphabet Inc’s Google in May introduced a slick feature for Gmail that automatically completes sentences for users as they type. Tap out “I love” and Gmail might propose “you” or “it.” But users are out of luck if the object of their affection is “him” or “her.”

Google’s technology will not suggest gender-based pronouns because the risk is too high that its “Smart Compose” technology might predict someone’s sex or gender identity incorrectly and offend users, product leaders revealed to Reuters in interviews.

Gmail product manager Paul Lambert said a company research scientist discovered the problem in January when he typed “I am meeting an investor next week,” and Smart Compose suggested a possible follow-up question: “Do you want to meet him?” instead of “her.”

Consumers have become accustomed to embarrassing gaffes from autocorrect on smartphones. But Google refused to take chances at a time when gender issues are reshaping politics and society, and critics are scrutinizing potential biases in artificial intelligence like never before.

“Not all ‘screw ups’ are equal,” Lambert said. Gender is a “a big, big thing” to get wrong.

Getting Smart Compose right could be good for business. Demonstrating that Google understands the nuances of AI better than competitors is part of the company’s strategy to build affinity for its brand and attract customers to its AI-powered cloud computing tools, advertising services and hardware.

Gmail has 1.5 billion users, and Lambert said Smart Compose assists on 11 percent of messages worldwide sent from Gmail.com, where the feature first launched.

Smart Compose is an example of what AI developers call natural language generation (NLG), in which computers learn to write sentences by studying patterns and relationships between words in literature, emails and web pages.

A system shown billions of human sentences becomes adept at completing common phrases but is limited by generalities. Men have long dominated fields such as finance and science, for example, so the technology would conclude from the data that an investor or engineer is “he” or “him.” The issue trips up nearly every major tech company.

Lambert said the Smart Compose team of about 15 engineers and designers tried several workarounds, but none proved bias-free or worthwhile. They decided the best solution was the strictest one: Limit coverage. The gendered pronoun ban affects fewer than 1 percent of cases where Smart Compose would propose something, Lambert said.

“The only reliable technique we have is to be conservative,” said Prabhakar Raghavan, who oversaw engineering of Gmail and other services until a recent promotion.

New policy

Google’s decision to play it safe on gender follows some high-profile embarrassments for the company’s predictive technologies.

The company apologized in 2015 when the image recognition feature of its photo service labeled a black couple as gorillas. In 2016, Google altered its search engine’s autocomplete function after it suggested the anti-Semitic query “are jews evil” when users sought information about Jews.

Google has banned expletives and racial slurs from its predictive technologies, as well as mentions of its business rivals or tragic events.

The company’s new policy banning gendered pronouns also affected the list of possible responses in Google’s Smart Reply. That service allow users to respond instantly to text messages and emails with short phrases such as “sounds good.”

Google uses tests developed by its AI ethics team to uncover new biases. A spam and abuse team pokes at systems, trying to find “juicy” gaffes by thinking as hackers or journalists might, Lambert said.

Workers outside the United States look for local cultural issues. Smart Compose will soon work in four other languages: Spanish, Portuguese, Italian and French.

“You need a lot of human oversight,” said engineering leader Raghavan, because “in each language, the net of inappropriateness has to cover something different.”

Wispread challenge

Google is not the only tech company wrestling with the gender-based pronoun problem. Agolo, a New York startup that has received investment from Thomson Reuters, uses AI to summarize business documents.

Its technology cannot reliably determine in some documents which pronoun goes with which name. So the summary pulls several sentences to give users more context, said Mohamed AlTantawy, Agolo’s chief technology officer.

He said longer copy is better than missing details. “The smallest mistakes will make people lose confidence,” AlTantawy said. “People want 100 percent correct.”

Yet, imperfections remain. Predictive keyboard tools developed by Google and Apple Inc propose the gendered “policeman” to complete “police” and “salesman” for “sales.”

Type the neutral Turkish phrase “one is a soldier” into Google Translate and it spits out “he’s a soldier” in English. So do translation tools from Alibaba and Microsoft Corp. Amazon.com Inc opts for “she” for the same phrase on its translation service for cloud computing customers.

AI experts have called on the companies to display a disclaimer and multiple possible translations.

Microsoft’s LinkedIn said it avoids gendered pronouns in its year-old predictive messaging tool, Smart Replies, to ward off potential blunders.

Alibaba and Amazon did not respond to requests to comment. Warnings and limitations like those in Smart Compose remain the most-used countermeasures in complex systems, said John Hegele, integration engineer at Durham, North Carolina-based Automated Insights Inc, which generates news articles from statistics.

“The end goal is a fully machine-generated system where it magically knows what to write,” Hegele said. “There’s been a ton of advances made but we’re not there yet.”

Uber Fined $1.2 Million For 2016 Data Breach

British and Dutch regulators have fined ride-hailing company Uber $1.2 million for what it said were inadequate security measures that left personal data at risk for a cyber attack.

The fines are linked to a 2016 hack of Uber data that allowed attackers to download information about 32 million users, including 2.7 million accounts in Britain.

The files included full names, mobile phone numbers, email addresses and some user passwords. Information about 3.7 million drivers, 82,000 of them in Britain, was also downloaded.

Britain’s Information Commissioner’s Office said the hack was the result of “a series of avoidable data security flaws.”

“This was not only a serious failure of data security on Uber’s part, but a complete disregard for the customers and drivers whose personal information was stolen,” ICO Director of Investigations Steve Eckersley said. “At the time, no steps were taken to inform anyone affected by the breach, or to offer help and support. That left them vulnerable.”

Uber said in a statement it is “pleased to close this chapter on the data incident from 2016.”

“As we shared with European authorities during their investigations, we’ve made a number of technical improvements to the security of our systems both in the immediate wake of the incident as well as in the years since,” the company said.

Lawmakers Criticize Facebook’s Zuckerberg for UK Parliament No-Show

Facebook came under fire on Tuesday from lawmakers from several countries who accused the firm of undermining democratic institutions and lambasted chief executive Mark Zuckerberg for not answering questions on the matter.

Facebook is being investigated by lawmakers in Britain after consultancy Cambridge Analytica, which worked on Donald Trump’s presidential campaign, obtained the personal data of 87 million Facebook users from a researcher, drawing attention to the use of data analytics in politics.

Concerns over the social media giant’s practices, the role of political adverts and possible interference in the 2016 Brexit vote and U.S. elections are among the topics being investigated by British and European regulators.

While Facebook says it complies with EU data protection laws, a special hearing of lawmakers from several countries around the world in London criticized Zuckerberg for declining to appear himself to answer questions on the topic.

“We’ve never seen anything quite like Facebook, where, while we were playing on our phones and apps, our democratic institutions… seem to have been upended by frat-boy billionaires from California,” Canadian lawmaker Charlie Angus said.

“So Mr Zuckerberg’s decision not to appear here at Westminster [Britain’s parliament] to me speaks volumes.”

Richard Allan, the vice president of policy solutions at Facebook who appeared in Zuckerberg’s stead, admitted Facebook had made mistakes but said it had accepted the need to comply with data rules.

“I’m not going to disagree with you that we’ve damaged public trust through some of the actions we’ve taken,” Allan told the hearing.

Facebook has faced a barrage of criticism from users and lawmakers after it said last year that Russian agents used its platform to spread disinformation before and after the 2016 U.S. presidential election, an accusation Moscow denies.

Allan repeatedly declined to give an example of a person or app banned from Facebook for misuse of data, aside from the GSR app which gathered data in the Cambridge Analytica scandal.

Legal documents reviewed by Reuters show how the investigation by British lawmakers has led them to seize documents relating to Facebook from app developer Six4Three, which is in a legal dispute with Facebook.

Damian Collins, chair of the culture committee which convened the hearing, said he would not release those documents on Tuesday as he was not in a position to do so, although he has said previously the committee has the legal power to.

 

App Shows US, Canadian Commuters the Cleanest, Greenest Route Home

A mobile application launched in dozens of U.S. and Canadian cities on Monday measures the planet-warming greenhouse gas emissions of inner-city travel, its creators said, letting concerned commuters map their so-called carbon footprints.

Mapping app Cowlines can suggest the most efficient route as well which uses the least fuel, combining modes of transport such as bicycling and walking, within cities, its Vancouver, Canada-based creators said.

Some two-thirds of the world’s population is expected to settle in urban areas by 2050, according to the United Nations.

The trend presents an environmental challenge, given that the world’s cities account for the bulk of greenhouse gas emissions.

Not only will the app measure a trip’s emissions and suggest alternatives, it will provide the data to cities and urban planners working on systems from subway lines to bike-sharing programs, said Jonathan Whitworth, chief strategy officer at Greenlines Technology, which created the app.

“As you would imagine here in Canada, especially Western Canada, most people are driven by the environmental side of it,” Whitworth told the Thomson Reuters Foundation.

The app aims to encourage users in 62 U.S. and Canadian cities to use cleaner modes of transportation, from mass transit to walking or biking, he said.

In the United States, mass transit accounts for less than 2 percent of passenger miles traveled, according to Daniel Sperling, founding director of the Institute of Transportation Studies at the University of California, Davis.

“People are starved for good information and data for good travel choices,” said Sperling.

The app’s suggested route is a cowline – city planner parlance for the fastest route, said Whitworth. In pastoral settings, a cowline is the most direct path cattle use to reach grazing grounds.

The app shows users after a trip how many kilograms of carbon-dioxide equivalent emissions they are responsible for, Whitworth said.

While other apps such as Changers CO2 Fit track users’ carbon footprints, Cowlines claims its methodology, certified by the International Organization for Standardization, is most accurate, he said.

Whitworth said the company also plans to sell the data it collects.

Experts: African Fishing Communities Face ‘Extinction’ as Blue Economy Grows

Fishing communities along Africa’s coastline are at a greater risk of extinction as countries eye oceans for tourism, industrial fishing and exploration revenue to jumpstart their “blue economies,” U.N. experts and activists said on Monday.

The continent’s 38 coastal and island states have in recent years moved to tap ocean resources through commercial fishing, marine tourism and sea-bed mining, according to the United Nations Economic Commission for Africa (UNECA).

“There is a great risk and a great danger that those communities will be marginalized,” said Joseph Zelasney, a fishery officer at U.N.’s Food and Agriculture Organization (FAO).

“The resources that they depend on will be decimated,” he added at a side event at the Blue Economy Conference organized by Kenya, Canada and Japan in Nairobi.

The world’s poorest continent hosts a blue economy estimated at $1 trillion but loses $42 billion a year to illegal fishing and logging of mangroves along the coast, according to UNECA estimates.

Seismic waves generated by prospectors to search for minerals, oil and gases along the ocean floor have scared away fish stocks, said Dawda Saine of the Confederation of African Artisanal Fishing in Gambia.

“Noise and vibration drives fishes away, which means they (fishermen) have to go further to fish,” Saine said.

Pollution from a vibrant tourism sector and foreign trawlers have reduced stocks along the Indian Ocean, Salim Mohamed, a fisherman from Malindi in Kenya, said.

“We suffer as artisanal fishers but all local regulation just look at us as the polluter and doesn’t go beyond that,” he said.

The continent’s fish stocks are also being depleted by industrial trawlers which comb the oceans to feed European and Asian markets, experts say, posing a threat to livelihoods and food security for communities living along the coast.

Growth of blue economies in Africa could also take away common rights to land and water along the coastline and transfer them to corporations and a few individuals, said Andre Standing, advisor with the Coalition for Fair Fisheries Arrangements.

Most of the land and beaches along Africa’s thousands of miles of coastline is untitled, making it a good target for illegal acquisition, activists said.

“There is a great worry that we could see privatization of areas that were previously open to these communities,” Standing told the Thomson Reuters Foundation. “We need to have a radical vision that values communities and livelihoods or they will become extinct.”

Traditional Fisherman, Fish Shops Struggle on Kenyan Coast

Marine fisheries are one of the few economic activities present everywhere along the Kenyan coast – mostly using artisanal fishing methods in which non-motorized boats stay close to shore. In the coastal town of Malindi, thousands of households that depend on the fisheries resources face uncertainty over the sustainability of the industry. Rael Ombuor reports from Malindi.

Report Sharply at Odds With Trump’s Views on Cost of Climate Change

By 2090, days when it is too hot or too smoggy to work will cost the U.S. economy up to $155 billion each year in lost productivity.

That’s one economic impact cited in the National Climate Assessment released Friday by 13 U.S. federal agencies.

“Without substantial and sustained global mitigation and regional adaptation efforts, climate change is expected to cause growing losses to American infrastructure and property and impede the rate of economic growth over this century,” the report said.

“I don’t believe it,” President Donald Trump responded when asked about the report Monday. 

Trump has for many years rejected the scientific consensus that human activities are the main drivers of climate change. Since his first day in office, he has worked to undo regulations that aim to cut the greenhouse gas emissions that are warming the planet. The focus has been on boosting the economy.

According to the government’s new report, failing to cut those emissions ultimately will take a significant toll on economic output. 

Since the last congressionally mandated report was issued four years ago, scientists have developed a more granular understanding of how climate change will affect particular regions of the United States, and they better understand “how some of the damage caused by climate-related events is uniquely attributable to climate change, as opposed to what would happen normally,” said Andrew Light, distinguished senior fellow at the World Resources Institute and co-author of the chapter on mitigation.

The report tallied up $118 billion per year in damage to coastal property by the end of the century, along with a $20 billion hit to roads and $1 billion to bridges.

It also says deaths from extreme temperatures will cause $141 billion in losses per year. Increases in rates of one disease — West Nile Virus — will cost $3 billion per year. 

The Trump administration dismissed the report as alarmist.

“The report is largely based on the most extreme scenario, which contradicts long-established trends” said White House spokeswoman Lindsay Walters. It assumes that, “despite strong economic growth that would increase greenhouse gas emissions, there would be limited technology and innovation.” 

In announcing his intention to pull out of the Paris climate agreement, Trump cited a study funded in part by the U.S. Chamber of Commerce that said the United States would lose 2.7 million jobs and nearly $3 trillion of gross domestic product by 2040. 

Critics questioned those figures, especially since, as the report itself notes, it does not take into account benefits of reduced emissions. 

Others see significant opportunities in cutting greenhouse gases.

Nearly 500 companies have pledged to reduce their emissions to meet their portion of the Paris climate agreement.

“These guys are not doing it for the good of the planet,” said Wesleyan University economist Gary Yohe. “It’s because the bottom line says this is a good idea.”