U.S. Supreme Court justices on Monday appeared open to letting a lawsuit proceed against Apple Inc that accused it of breaking federal antitrust laws by monopolizing the market for iPhone software applications and causing consumers to overpay.

The nine justices heard an hour of arguments in an appeal by the Cupertino, California-based technology company of a lower court’s decision to revive the proposed class-action lawsuit filed in federal court in California in 2011 by a group of iPhone users seeking monetary damages.

The lawsuit said Apple violated federal antitrust laws by requiring apps to be sold through the company’s App Store and then taking a 30 percent commission from the purchases.

The case may hinge on how the justices will apply one of its past decisions to the claims against Apple. That 1977 ruling limited damages for anti-competitive conduct to those directly overcharged rather than indirect victims who paid an overcharge passed on by others.

Apple was backed by Republican President Donald Trump’s administration. Some liberal and conservative justices sharply questioned an attorney for Apple and U.S. Solicitor General Noel Francisco, who argued on behalf of the administration on the company’s side, over their argument that the consumers were not directly affected by purchasing the apps from Apple.

Liberal Justice Elena Kagan, explaining how an App Store purchase is handled, said, “From my perspective, I’ve engaged in a one-step transaction with Apple.”

Some conservative justices, including Trump appointee Neil Gorsuch, wondered whether the 1977 ruling was still valid in a modern marketplace.

Conservative Chief Justice John Roberts’ questions suggested he agreed with Apple’s position. Roberts expressed concern that, for a single price increase, Apple could be held liable by both consumers and App developers.

The iPhone users, including lead plaintiff Robert Pepper of Chicago, have argued that Apple’s monopoly leads to inflated prices compared to if apps were available from other sources.

Though developers set the prices of their apps, Apple collects the payments from iPhone users, keeping a 30 percent commission on each purchase. One area of dispute in the case is whether app developers recoup the cost of that commission by passing it on to consumers. Developers earned more than $26 billion in 2017, a 30 percent increase over 2016, according to Apple.

Closing courthouse doors

Apple, also backed by the U.S. Chamber of Commerce business group, told the justices in legal papers that siding with the iPhone users who filed the lawsuit would threaten the burgeoning field of e-commerce, which generates hundreds of billions of dollars annually in U.S. retail sales.

The plaintiffs, as well as antitrust watchdog groups, said closing courthouse doors to those who buy end products would undermine antitrust enforcement and allow monopolistic behavior to expand unchecked. The plaintiffs were backed by 30 state attorneys general, including from Texas, California and New York.

The plaintiffs said app developers would be unlikely to sue Apple, which controls the service where they make money, leaving no one to challenge anti-competitive conduct.

The company sought to have the antitrust claims dismissed, arguing that the plaintiffs lacked the required legal standing to bring the lawsuit. A federal judge in Oakland, California threw out the suit, saying the consumers were not direct purchasers because the higher fees they paid were passed on to them by the developers.

But the San Francisco-based 9th U.S. Circuit Court of Appeals revived the case last year, finding that Apple was a distributor that sold iPhone apps directly to consumers.
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U.S. Supreme Court justices on Monday appeared open to letting a lawsuit proceed against Apple Inc that accused it of breaking federal antitrust laws by monopolizing the market for iPhone software applications and causing consumers to overpay.

The nine justices heard an hour of arguments in an appeal by the Cupertino, California-based technology company of a lower court’s decision to revive the proposed class-action lawsuit filed in federal court in California in 2011 by a group of iPhone users seeking monetary damages.

The lawsuit said Apple violated federal antitrust laws by requiring apps to be sold through the company’s App Store and then taking a 30 percent commission from the purchases.

The case may hinge on how the justices will apply one of its past decisions to the claims against Apple. That 1977 ruling limited damages for anti-competitive conduct to those directly overcharged rather than indirect victims who paid an overcharge passed on by others.

Apple was backed by Republican President Donald Trump’s administration. Some liberal and conservative justices sharply questioned an attorney for Apple and U.S. Solicitor General Noel Francisco, who argued on behalf of the administration on the company’s side, over their argument that the consumers were not directly affected by purchasing the apps from Apple.

Liberal Justice Elena Kagan, explaining how an App Store purchase is handled, said, “From my perspective, I’ve engaged in a one-step transaction with Apple.”

Some conservative justices, including Trump appointee Neil Gorsuch, wondered whether the 1977 ruling was still valid in a modern marketplace.

Conservative Chief Justice John Roberts’ questions suggested he agreed with Apple’s position. Roberts expressed concern that, for a single price increase, Apple could be held liable by both consumers and App developers.

The iPhone users, including lead plaintiff Robert Pepper of Chicago, have argued that Apple’s monopoly leads to inflated prices compared to if apps were available from other sources.

Though developers set the prices of their apps, Apple collects the payments from iPhone users, keeping a 30 percent commission on each purchase. One area of dispute in the case is whether app developers recoup the cost of that commission by passing it on to consumers. Developers earned more than $26 billion in 2017, a 30 percent increase over 2016, according to Apple.

Closing courthouse doors

Apple, also backed by the U.S. Chamber of Commerce business group, told the justices in legal papers that siding with the iPhone users who filed the lawsuit would threaten the burgeoning field of e-commerce, which generates hundreds of billions of dollars annually in U.S. retail sales.

The plaintiffs, as well as antitrust watchdog groups, said closing courthouse doors to those who buy end products would undermine antitrust enforcement and allow monopolistic behavior to expand unchecked. The plaintiffs were backed by 30 state attorneys general, including from Texas, California and New York.

The plaintiffs said app developers would be unlikely to sue Apple, which controls the service where they make money, leaving no one to challenge anti-competitive conduct.

The company sought to have the antitrust claims dismissed, arguing that the plaintiffs lacked the required legal standing to bring the lawsuit. A federal judge in Oakland, California threw out the suit, saying the consumers were not direct purchasers because the higher fees they paid were passed on to them by the developers.

But the San Francisco-based 9th U.S. Circuit Court of Appeals revived the case last year, finding that Apple was a distributor that sold iPhone apps directly to consumers.
…

Police in Cambodia have arrested more than 200 Chinese citizens accused of defrauding people in China over the internet.

Gen. Y Sok Khy, director of the Interior Ministry’s Department of Counter-Terrorism and Transnational Crime, said 36 women were among the 235 Chinese arrested Monday in three different villages in Takeo province, south of the capital, Phnom Penh.

Online scams by Chinese gangs that operate from foreign countries and target mainland Chinese are common throughout Southeast Asia and have been found as far away as Kenya and Spain. Cambodia has arrested and sent at least 1,000 Chinese and Taiwanese residents allegedly involved in such schemes to China since 2012.

The scams are carried out by making phone calls over the internet and employing deception, threats and blackmail against the victims.
…

Police in Cambodia have arrested more than 200 Chinese citizens accused of defrauding people in China over the internet.

Gen. Y Sok Khy, director of the Interior Ministry’s Department of Counter-Terrorism and Transnational Crime, said 36 women were among the 235 Chinese arrested Monday in three different villages in Takeo province, south of the capital, Phnom Penh.

Online scams by Chinese gangs that operate from foreign countries and target mainland Chinese are common throughout Southeast Asia and have been found as far away as Kenya and Spain. Cambodia has arrested and sent at least 1,000 Chinese and Taiwanese residents allegedly involved in such schemes to China since 2012.

The scams are carried out by making phone calls over the internet and employing deception, threats and blackmail against the victims.
…

Russia has launched a civil case against Google, accusing it of failing to comply with a legal requirement to remove certain entries from its search results, the country’s communications watchdog said on Monday.

If found guilty, the U.S. internet giant could be fined up to 700,000 rubles ($10,450), the watchdog, Roskomnadzor, said.

It said Google had not joined a state registry that lists banned websites that Moscow believes contain illegal information and was therefore in breach of the law.

A final decision in the case will be made in December, the watchdog said. Google declined to comment.

Over the past five years, Russia has introduced tougher internet laws that require search engines to delete some search results, messaging services to share encryption keys with security services, and social networks to store Russian users’ personal data on servers within the country.

At the moment, the only tools Russia has to enforce its data rules are fines that typically only come to a few thousand dollars, or blocking the offending online services, which is an option fraught with technical difficulties.

Three sources familiar with the matter told Reuters on Monday that Russia planned to impose stiffer fines on technology firms that fail to comply with Russian laws.

The plans for harsher fines are contained in a consultation document prepared by the administration of President Vladimir Putin and sent to industry players for feedback.

The legislation, if it goes ahead, would hit global tech giants such as Facebook and Google, which – if found to have breached rules – could face fines equal to 1 percent of their annual revenue in Russia, according to the sources.

 
…

Russia has launched a civil case against Google, accusing it of failing to comply with a legal requirement to remove certain entries from its search results, the country’s communications watchdog said on Monday.

If found guilty, the U.S. internet giant could be fined up to 700,000 rubles ($10,450), the watchdog, Roskomnadzor, said.

It said Google had not joined a state registry that lists banned websites that Moscow believes contain illegal information and was therefore in breach of the law.

A final decision in the case will be made in December, the watchdog said. Google declined to comment.

Over the past five years, Russia has introduced tougher internet laws that require search engines to delete some search results, messaging services to share encryption keys with security services, and social networks to store Russian users’ personal data on servers within the country.

At the moment, the only tools Russia has to enforce its data rules are fines that typically only come to a few thousand dollars, or blocking the offending online services, which is an option fraught with technical difficulties.

Three sources familiar with the matter told Reuters on Monday that Russia planned to impose stiffer fines on technology firms that fail to comply with Russian laws.

The plans for harsher fines are contained in a consultation document prepared by the administration of President Vladimir Putin and sent to industry players for feedback.

The legislation, if it goes ahead, would hit global tech giants such as Facebook and Google, which – if found to have breached rules – could face fines equal to 1 percent of their annual revenue in Russia, according to the sources.

 
…

The problem with plastics is a well-known refrain by now: It never goes away and far too little of it is being recycled. That means it is turning up in every corner of our planet, from our beaches to our bodies. But one British firm has figured out a new way to recycle plastics, and customers are waiting in line. VOA’s Kevin Enochs reports.
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The problem with plastics is a well-known refrain by now: It never goes away and far too little of it is being recycled. That means it is turning up in every corner of our planet, from our beaches to our bodies. But one British firm has figured out a new way to recycle plastics, and customers are waiting in line. VOA’s Kevin Enochs reports.
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As many as 3 million Malawians are expected to face food shortages this year because of drought and pests. To address the problem, Malawi and the United Nations are piloting a joint project to assess the health of crops using drones. Lameck Masina reports from Kasungu, central Malawi.
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As many as 3 million Malawians are expected to face food shortages this year because of drought and pests. To address the problem, Malawi and the United Nations are piloting a joint project to assess the health of crops using drones. Lameck Masina reports from Kasungu, central Malawi.
…

As wildfires raged this month in California, insurance claims experts at Travelers sat in a command center 3,000 miles (4,828 kilometers) away in Connecticut, monitoring screens showing satellite images, photos from airplane flyovers and social media posts describing what was happening on the ground.

Real-time data and technology that were unavailable to property-casualty companies even a few years ago have shaped the industry’s response to the Camp Fire, which has burned nearly 240 square miles (622 square kilometers) in northern California and the 151-square-mile (391-square-kilometer) Woolsey Fire in the Los Angeles area.

By overlaying the data on maps marking its customers’ locations, the company can quickly identify those who are likely to have been affected, said Jim Wucherpfennig, Travelers vice president of claims.

“That allows us to deploy people and resources where they are needed most,” he said.

The same data also can be used to determine risk and pricing for insurance in any given area, said Peter Kochenburger, the deputy director of the University of Connecticut’s insurance law center. Insurers, for example, can use the telemetry to identify local vegetation, wind patterns and fire history. In some cases, it can determine that the owner of one home is more likely to suffer damage than the owner of a neighboring home, he said.

“Does it seem intrusive? It can be,” he said. “They have a lot more information on all of us, on our properties than they had two, five, 10 years ago. That’s a major issue and that’s something regulators are going to have to talk about.”

During the wildfires, Travelers said the information has been used to expedite claims, even in areas that are still inaccessible to inspectors.

Workers were able to see what roads were open and map out spots in Chico and Thousand Oaks to park the RVs that serve as mobile claim centers, the company said. The tools also indicated where customers who evacuated were going to be, Wucherpfennig said.

The glassed-in Travelers National Catastrophe Center is located in Windsor, Connecticut. Modeled after military war rooms, it includes a conference table behind 19 high-definition screens, which display maps, graphs, television images and social media sites, all providing real-time data on the fires.

In some cases, even before adjusters arrive on scene, claims experts can assess damage from the fires and cut checks by using before-and-after images taken by drones, aircraft or satellites as well as videos or photos uploaded by customers from their phones. Employees have tools and smart phone apps that can convert those photos into instant measurements, to help quantify the damage.

“We’re able to virtually interact with customers much more easily than we could even in the recent past,” Wucherpfennig said. “We’re also able to monitor all forms of social media in real time. That helps us create an event footprint, which helps us understand how the event is tracking and what type of damages we’re seeing.”
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Solar-powered suitcases are bringing light to darkened classrooms and struggling students in rural Kenya. Before solar power, the alternatives were small tin kerosene lamps that are not only expensive to fill but also have caused some health problems. VOA’s Mariama Diallo reports.
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Solar-powered suitcases are bringing light to darkened classrooms and struggling students in rural Kenya. Before solar power, the alternatives were small tin kerosene lamps that are not only expensive to fill but also have caused some health problems. VOA’s Mariama Diallo reports.
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A Russia-based news company whose accountant was charged by federal prosecutors for attempting to meddle in U.S. elections sued Facebook Inc in a federal court Tuesday, claiming that its Facebook page was improperly removed.

The Federal Agency of News LLC and its sole shareholder, Evgeniy Aubarev, filed the lawsuit against Facebook in federal court in the Northern District of California, seeking damages and an injunction to prevent Facebook from blocking its account.

Facebook deleted the company’s account in April as it purged pages and accounts associated with the St. Petersburg-based Internet Research Agency, which was indicted by Special Counsel Robert Mueller earlier this year for interfering in the 2016 U.S. election.

FAN and Zubarev said they were improperly swept up in Facebook’s purge.

Facebook did not immediately respond to a request for comment on the lawsuit.

“FAN is an independent, authentic and legitimate news agency which publishes reports that are relevant and of interest to the general public,” the company said in the lawsuit.

Peter Carr, a spokesman for Mueller, declined to comment.
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A Russia-based news company whose accountant was charged by federal prosecutors for attempting to meddle in U.S. elections sued Facebook Inc in a federal court Tuesday, claiming that its Facebook page was improperly removed.

The Federal Agency of News LLC and its sole shareholder, Evgeniy Aubarev, filed the lawsuit against Facebook in federal court in the Northern District of California, seeking damages and an injunction to prevent Facebook from blocking its account.

Facebook deleted the company’s account in April as it purged pages and accounts associated with the St. Petersburg-based Internet Research Agency, which was indicted by Special Counsel Robert Mueller earlier this year for interfering in the 2016 U.S. election.

FAN and Zubarev said they were improperly swept up in Facebook’s purge.

Facebook did not immediately respond to a request for comment on the lawsuit.

“FAN is an independent, authentic and legitimate news agency which publishes reports that are relevant and of interest to the general public,” the company said in the lawsuit.

Peter Carr, a spokesman for Mueller, declined to comment.
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Technology jobs will experience high growth between now and 2030 but only a fraction of girls are likely to pursue degrees that will help them get those jobs. A new toy called SmartGurlz hopes to help change that. Deana Mitchell joins in on the play time.
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For the past decade, Sheryl Sandberg has been the poised, reliable second-in-command to Facebook CEO Mark Zuckerberg, helping steer Facebook’s rapid growth around the world, while also cultivating her brand in ways that hint at aspirations well beyond the social network.

But with growing criticism over the company’s practices, or lack of oversight, her carefully cultivated brand as an eloquent feminist leader is showing cracks. Questions these days aren’t so much about whether she’ll run for the Senate or even president, but whether she ought to keep her job at Facebook. 

“Her brand was being manicured with the same resources and care as the gardens of Tokyo,” said Scott Galloway, a New York University marketing professor. “And unfortunately a hurricane has come through the garden.”

Facebook has been dealing with hurricanes for the past two years: fake news, elections interference, hate speech, a privacy scandal, the list goes on. The company’s response — namely, Zuckerberg’s and Sandberg’s — has been slow at best, misleading and obfuscating at worst, as The New York Times reported last week. That report, and one from The Wall Street Journal , underscored Sandberg’s influence at the company, even as Zuckerberg has borne much of the criticism and anger. There have been calls for both to be ousted.

But because of the way Facebook is set up, firing Zuckerberg would be all but impossible. He controls the majority of the company’s voting stock, serves as its chairman and has — at least publicly — the support of its board of directors. Essentially, he’d have to fire himself. Firing Sandberg would be the next logical option to hold a high-level executive accountable. Though the chances are slim, the fact that it has even come up shows the extent of Facebook’s — and Sandberg’s — troubles.

 As chief operating officer, Sandberg is in charge of Facebook’s business dealings, including the ads that make up the bulk of the company’s revenue. She steered Facebook from a rising tech startup into a viable global business expected to reap $55 billion in revenue this year. The company is second only to Google in digital advertising.

But she’s also gotten the blame when things go wrong, including Facebook’s failure to spot Russian attempts to influence U.S. elections by buying U.S. political ads — in rubles. Though Sandberg has denied knowing that Facebook hired an opposition research firm to discredit activists, she created a permissive environment through what the Times called an “aggressive lobbying campaign” against critics. Facebook fired the firm, Definers, after the Times report came out.

Facebook declined to comment on Sandberg or make her available for an interview. A representative instead pointed to Zuckerberg’s remarks that overall, “Sheryl is doing great work for the company. She’s been a very important partner to me and continues to be, and will continue to be. She’s leading a lot of the efforts to improve our systems in these areas.”

Sandberg, 49, who was hired away from Google in 2008, has been a crucial “heat shield” for Zuckerberg, as Galloway put it, as lawmakers and the public crank up criticism of the 34-year-old founder. In September, Facebook sent Sandberg to testify before the Senate intelligence committee, eliciting a warmer response than her boss did three months before. 

Sandberg, former chief of staff for treasury secretary Larry Summers, appears more comfortable in Washington meeting rooms than Zuckerberg, who can seem robotic. Her profile is high enough that lawmakers don’t feel stilted when she shows up. She’s written (with help) two books, including 2013’s “Lean In” about women and leadership. Her second book, “Plan B,” is about dealing with loss and grief after her husband died unexpectedly. She was the lone chief operating officer among a who’s who of tech CEOs — including Apple’s Tim Cook and Amazon’s Jeff Bezos — to meet with Donald Trump a month after his election.

“It’s both who she is and how bereft Silicon Valley is of strong, powerful female voices,” crisis management expert Richard Levick said. “She has positioned herself as one of those strong voices with ‘Lean In.’’’

But her high profile also makes her more susceptible to criticism.

The chorus for Sandberg to leave is getting louder. CNBC commentator Jim Cramer predicted Monday that Facebook’s stock would rise if Sandberg leaves or gets fired. NYU’s Galloway believes both Sandberg and Zuckerberg should be fired for allowing Facebook to turn into an entity that harms democracy around the world.

“Every day executives are fired for a fraction of infractions these two have committed,” he said.

Besides elections interference, Zuckerberg and Sandberg have been criticized for their slow response to the Cambridge Analytica scandal, in which the data-mining firm accessed millions of users’ private information without their permission. The pair were silent for days after the news came out.

According to the Journal, Zuckerberg told Sandberg this spring that he blamed her and her teams for the “public fallout” over Cambridge Analytica. Citing unnamed sources, the newspaper said Sandberg at one point wondered if she should be worried about her job (though that appears to no longer be the case, based on Zuckerberg’s public support).

Galloway said it would look bad for Facebook to fire one of the only top female executives in an industry where women “face inordinately high obstacles to get to leadership positions.”

Beyond that, Sandberg has also been a positive force on Facebook. She was hired to be the “adult” in the room and has filled that role well. She moves comfortably outside tech circles and in public speaking, countering Zuckerberg’s shortcomings in that area. 

If anything, Sandberg’s departure from Facebook would likely be on her own terms. While Zuckerberg has spent all of his adult life at Facebook, Sandberg had a career before Facebook and even tech, so it is plausible that she would have a life after Facebook, perhaps back in politics.

But first, she has Facebook’s own troubles to deal with. The task seems daunting because its problems might never go away. But Levick believes she can begin to restore her image by acknowledging her role in causing Facebook’s problems instead of blaming external forces beyond her control: “The knee jerk response ‘poor, poor’ me’ is not the solution.”

 
…

North Korean hackers continue to circumvent protections and compromise computer systems around the globe. Pyongyang’s cyber operatives, like the Lazarus Group, have been linked to computer system infiltrations like the 2014 Sony Pictures Studios hack prior to the release of the U.S. film “The Interview” and the attempted theft of close to $1 billion from the central Bangladesh bank using the SWIFT banking network in 2016.

But how did Pyongyang become so adept at hacking while not possessing rich resources and being under tough International sanctions?

Seungjoo Kim, a professor at Korea University’s Graduate School of Information Security says the answer, in part, is because North Korea’s computer hackers operate in China and Europe with easy access to the internet.

“North Korea practices their craft under real conditions, like hacking cryptocurrency sites or stealing information,” he said, “These repeated exercises help to improve their skills.”

As an instructor, Seungjoo Kim teaches his students how hackers invade other systems using traditional textbooks instruction. But without real-world trials, he says they can’t obtain the knowledge needed to test systems or prevent hostile attacks.

“Basically, you should teach basic computer knowledge, and then try to solve some hacking problems,” he said, adding that the best way to improve one’s computer infiltration skills is with real-time and real-world practice.

“North Korea acquires [their] knowledge by invading other systems,” said Kim.

He added that because North Korea can directly attack other countries, that effort has enabled Pyongyang to quickly develop their world-renowned hacking skills.

North Korea’s cyber army

Experts assert there are between 6,000 and 7,500 members of North Korea’s cyber army, split into a number of divisions to carry out cyberterrorism against state infrastructure, financial institutions, and the latest hijacking of defense technology.

“North Korea was inspired by the Chinese cyberwar units and learned from them,” said NK Intellectuals Solidarity director Heung Kwan Kim, “Recognizing their power, North Korea set up the first unit within the central government in 1993.”

While Pyongyang’s Reconnaissance General Bureau is comprised of six divisions and overseas operations in South Korea, the United States, and Japan, it’s another bureau that is responsible for the bulk of North Korea’s cyber warfare.

“Unit 121 oversees Unit 180, Unit 91, and lab 110,” Heung Kwan Kim told VOA.

A 500-person strong Unit 121 was created in 1998, and in 2009 the group successfully carried out 77 attacks by overwhelming computer networks through unleashing an onslaught of Internet traffic.

This led Pyongyang to conclude that cyber-warfare was “the most suitable form of war” for North Korea in the modern era, according to Heung Kwan Kim.

Attacks continued throughout 2014, and in 2015. When North Korea reorganized their divisions, Unit 121 was given the mission of attacking a foreign nation’s infrastructure, such as transportation networks, telecommunications, gas, electric power, nuclear power, and aviation systems.

Unit 91’s focus was shifted to acquiring “advanced technologies needed for nuclear development and long-range missiles from developed countries.”

Finally, the role of Unit 180 was changed for it to target financial systems and to focus on block chain technology.

Cryptocurrency and blockchains

With international sanctions crippling Pyongyang’s coffers, Heung Kwan Kim said North Korea shifted their cyberattacks to private systems, rather than government networks, because the smaller entities weren’t as well protected.

“It’s a problem of North Korea’s high ability and low security,” he said.

The numerous attacks on small and private companies have led to allegations that Pyongyang is hacking into cryptocurrency exchanges to steal virtual money, like Bitcoin, said Seungjoo Kim. Stolen cryptocurrencies are attractive because they are difficult to trace back to their original owner.

In 2017, the North Korean hacking group Lazarus was accused of attacking South Korea cryptocurrency exchange Bithumb. The cyber thieves made off with nearly $7 million in digital currencies.

The hackers also obtained personal information of users stored on the compromised servers. The BBC reports North Korea was later able to ransom additional funds from the owners in exchange for deleting the data.

“Cryptocurrency is easy to steal because it moves in cyberspace,” said Seungjoo Kim.

He added, “To earn cryptocurrency in a legitimate way, cutting-edge computers are required, but North Korea doesn’t have them, so they attack computers abroad and hack mining programs.”

The hacked computers then send any virtual coins it uncovers to North Korean digital wallets they can convert to hard currency.

To curtail North Korea’s cyberattacks, he advocates a detente in the virtual world that’s similar to the easing of tensions taking place on the peninsula. However, that may be difficult, as it would require Pyongyang to admit it committed acts of cyberwarfare.

In addition, it would require “Russia and China not only participating in current real-world sanctions, cyber sanctions at the same time,” said Seungjoo Kim.

The last component, he said, would be for governments to codify what measures would be employed as proportional responses, should additional cyberattacks take place and prepare for those events.

 
…

North Korean hackers continue to circumvent protections and compromise computer systems around the globe. Pyongyang’s cyber operatives, like the Lazarus Group, have been linked to computer system infiltrations like the 2014 Sony Pictures Studios hack prior to the release of the U.S. film “The Interview” and the attempted theft of close to $1 billion from the central Bangladesh bank using the SWIFT banking network in 2016.

But how did Pyongyang become so adept at hacking while not possessing rich resources and being under tough International sanctions?

Seungjoo Kim, a professor at Korea University’s Graduate School of Information Security says the answer, in part, is because North Korea’s computer hackers operate in China and Europe with easy access to the internet.

“North Korea practices their craft under real conditions, like hacking cryptocurrency sites or stealing information,” he said, “These repeated exercises help to improve their skills.”

As an instructor, Seungjoo Kim teaches his students how hackers invade other systems using traditional textbooks instruction. But without real-world trials, he says they can’t obtain the knowledge needed to test systems or prevent hostile attacks.

“Basically, you should teach basic computer knowledge, and then try to solve some hacking problems,” he said, adding that the best way to improve one’s computer infiltration skills is with real-time and real-world practice.

“North Korea acquires [their] knowledge by invading other systems,” said Kim.

He added that because North Korea can directly attack other countries, that effort has enabled Pyongyang to quickly develop their world-renowned hacking skills.

North Korea’s cyber army

Experts assert there are between 6,000 and 7,500 members of North Korea’s cyber army, split into a number of divisions to carry out cyberterrorism against state infrastructure, financial institutions, and the latest hijacking of defense technology.

“North Korea was inspired by the Chinese cyberwar units and learned from them,” said NK Intellectuals Solidarity director Heung Kwan Kim, “Recognizing their power, North Korea set up the first unit within the central government in 1993.”

While Pyongyang’s Reconnaissance General Bureau is comprised of six divisions and overseas operations in South Korea, the United States, and Japan, it’s another bureau that is responsible for the bulk of North Korea’s cyber warfare.

“Unit 121 oversees Unit 180, Unit 91, and lab 110,” Heung Kwan Kim told VOA.

A 500-person strong Unit 121 was created in 1998, and in 2009 the group successfully carried out 77 attacks by overwhelming computer networks through unleashing an onslaught of Internet traffic.

This led Pyongyang to conclude that cyber-warfare was “the most suitable form of war” for North Korea in the modern era, according to Heung Kwan Kim.

Attacks continued throughout 2014, and in 2015. When North Korea reorganized their divisions, Unit 121 was given the mission of attacking a foreign nation’s infrastructure, such as transportation networks, telecommunications, gas, electric power, nuclear power, and aviation systems.

Unit 91’s focus was shifted to acquiring “advanced technologies needed for nuclear development and long-range missiles from developed countries.”

Finally, the role of Unit 180 was changed for it to target financial systems and to focus on block chain technology.

Cryptocurrency and blockchains

With international sanctions crippling Pyongyang’s coffers, Heung Kwan Kim said North Korea shifted their cyberattacks to private systems, rather than government networks, because the smaller entities weren’t as well protected.

“It’s a problem of North Korea’s high ability and low security,” he said.

The numerous attacks on small and private companies have led to allegations that Pyongyang is hacking into cryptocurrency exchanges to steal virtual money, like Bitcoin, said Seungjoo Kim. Stolen cryptocurrencies are attractive because they are difficult to trace back to their original owner.

In 2017, the North Korean hacking group Lazarus was accused of attacking South Korea cryptocurrency exchange Bithumb. The cyber thieves made off with nearly $7 million in digital currencies.

The hackers also obtained personal information of users stored on the compromised servers. The BBC reports North Korea was later able to ransom additional funds from the owners in exchange for deleting the data.

“Cryptocurrency is easy to steal because it moves in cyberspace,” said Seungjoo Kim.

He added, “To earn cryptocurrency in a legitimate way, cutting-edge computers are required, but North Korea doesn’t have them, so they attack computers abroad and hack mining programs.”

The hacked computers then send any virtual coins it uncovers to North Korean digital wallets they can convert to hard currency.

To curtail North Korea’s cyberattacks, he advocates a detente in the virtual world that’s similar to the easing of tensions taking place on the peninsula. However, that may be difficult, as it would require Pyongyang to admit it committed acts of cyberwarfare.

In addition, it would require “Russia and China not only participating in current real-world sanctions, cyber sanctions at the same time,” said Seungjoo Kim.

The last component, he said, would be for governments to codify what measures would be employed as proportional responses, should additional cyberattacks take place and prepare for those events.

 
…

North Korean hackers continue to circumvent protections to compromise computer systems around the globe. But how did the reclusive state become so adept at breaking into systems and what role does cryptocurrency play in financing the regime? VOA’s Steve Miller reports from Seoul.
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North Korean hackers continue to circumvent protections to compromise computer systems around the globe. But how did the reclusive state become so adept at breaking into systems and what role does cryptocurrency play in financing the regime? VOA’s Steve Miller reports from Seoul.
…

In the Baltic country of Lithuania, there’s growing debate over a Russian-owned taxi ride-sharing service that Lithuanian government officials warn could be spying on users through their smartphones. So, could an ‘app’ be the latest tool in Kremlin hybrid tactics, or has fear of all things Russian gone too far?  From Vilnius, Charles Maynes reports.
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In the Baltic country of Lithuania, there’s growing debate over a Russian-owned taxi ride-sharing service that Lithuanian government officials warn could be spying on users through their smartphones. So, could an ‘app’ be the latest tool in Kremlin hybrid tactics, or has fear of all things Russian gone too far?  From Vilnius, Charles Maynes reports.
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British-based startup ARC unveiled its first motorcycle model in Milan this week, one being described as fast, advanced and expensive. The so-called Vector costs more than $100,000, but ARC says it’s for good reason. VOA Correspondent Mariama Diallo reports.
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