Microsoft, Justice Department in Showdown Over Foreign-stored Data

The U.S. Justice Department and Microsoft will face off against each other Tuesday when the Supreme Court hears arguments on whether tech companies’ desire to protect user data is at odds with the government’s interest in pursuing criminals who use the internet.

The case, known as United States v. Microsoft Corp., has global implications and could potentially trigger an international backlash, subjecting Americans’ data to seizure by foreign governments, legal and digital rights experts warn.

“The case is important for privacy, it’s important for security, it’s important for the future of the internet,” said Jennifer Daskal, a professor at American University Washington College of Law.

At issue is whether a U.S.-based email provider can be forced, under the 1986 Stored Communications Act, to turn over communications stored outside the United States.

Email records

Federal prosecutors believed it could when they went to Microsoft in 2013 with a court warrant, demanding that the tech giant turn over the email records of a suspect in a drug-trafficking investigation. But there was a problem.

Although Microsoft kept the account’s metadata such as address books on servers in the U.S., the contents of the user’s emails were stored at a data hub in Ireland — one of over 100 such data centers the company operates in more than 40 countries.

U.S.-based internet providers typically cooperate with government requests for foreign-stored data.

But in 1993, Microsoft, under fire along with other tech companies for their role in a secret government surveillance program exposed by NSA contractor Edward Snowden, drew a line.

The company handed over the metadata to prosecutors but refused to disclose the actual emails, arguing that the data was beyond the warrant’s reach because it was stored overseas. That set off a legal battle that eventually led the Supreme Court to take up the case last year.

The case has galvanized international attention.

The governments of Ireland and the United Kingdom have both filed briefs in the case as have the European Commission and the U.N. Special Rapporteur on the right to privacy (SRP).

The central dispute is whether a warrant issued under the Stored Communications Act can be applied outside the United States.The government says it has long relied on the law to obtain electronic communications regardless of their location and that it needs the authority to secure such data for criminal investigations.

Microsoft argues that the Stored Communications Act does not have extraterritorial application. It says that the laws of the country where the data is stored — in this case, Ireland — not the laws of the United States, govern its disclosure.

Digital rights advocates and some transnational legal experts have weighed in on the side of Microsoft, arguing that a decision in favor of the government could encourage foreign governments to seize Americans’ private communications. 

“You can bet many other governments in the world will come knocking on the doors of providers in the United States,” said Gregory Nojeim, senior counsel at the Center for Democracy and Technology, a Washington-based organization that has filed a brief in support of Microsoft.

European governments are already pushing back.

Belgium recently ordered U.S. providers to destroy data that the providers store in the United States, Nojeim said. Austen Parrish, dean of the Maurer School of Law at Indiana University, noted that past attempts by the U.S. government “to extraterritorially seize documents or information from foreign countries (have) led to protests (and) blocking statutes.”

“It upsets a lot of countries because they view it not only as a violation of international law but as a violation of their own sovereignty,” Parrish said. On both counts, there is an assumption that the laws passed by Congress are designed for Americans and that they don’t violate international law, he added.

“In this case, the best result is to read the 1986 Stored Communications Act as only applying to communications within the United States,” Parrish said.

Ways to obtain data

Proponents of Microsoft acknowledge the U.S. government’s interest in foreign-stored data and point to other ways U.S. law enforcement agencies can obtain the data.One is the so-called Mutual Legal Assistance Treaty, an international agreement that allows for the exchange of evidence in criminal investigations.

Another is a bilateral cross-border data sharing agreement. The U.S. and U.K. recently negotiated such an agreement, and Congress is working to clear the way for its approval.

Regardless of how the court rules, the issue could become moot if Congress passes a recently proposed bill called the CLOUD Act. The bill would enable the U.S. government to obtain user data from email providers regardless of its location but would allow providers to decline a request if it violated the host country’s laws.

Daskal, the professor at American University, said the bill “strikes the right balance.”

But critics say it can be used by foreign governments to gather data from U.S. providers for intelligence purposes.

Both the Justice Department and Microsoft have endorsed the proposed legislation.

Short of congressional action, the court should try to strike a balance between the U.S. government’s need for data in criminal investigations and foreign governments’ need to protect the privacy of citizens, Daskal said.

“My hope is that if the court rules in favor of the government, that it does so in a way that reminds the lower courts of the importance of issuing warrants in a way that also respects conflicting rules in foreign governments as well,” she said.

Cryptocurrency Newcomers Cope With Wild Swings

After researching digital currencies for work last year, personal finance writer J.R.

Duren hopped on his own crypto-rollercoaster.

Duren bought $5 worth of litecoin in November, and eventually purchased $400 more, mostly with his credit card. In just a few months, he experienced a rally, a crash and a recovery, with the adrenaline highs and lows that come along.

“At first, I was freaking out,” Duren said about watching his portfolio plunge 40 percent at one point. “The precipitous drop came as a shock.”

The 39-year-old Floridian is part of the new class of crypto-investors who do not necessarily think bitcoin will replace the U.S. dollar, or that blockchain will revolutionize modern finance or that dentists should have their own currency.

Dubbed by longtime crypto-investors as “the noobs” — online lingo for “newbies” — they are ordinary investors hopping onto the latest trend, often with little understanding of how cryptocurrencies work or why they exist.

“There has been a big shift in the type of investors we have seen in crypto over the past year,” said Angela Walch, a fellow at the UCL Centre for Blockchain Technologies. “It’s shifted from a small group of techies to average Joes. I overhear conversations about cryptocurrencies everywhere, in coffee shops and airports.”

Walch and other experts cited parallels to the late-1990s, when retail investors jumped into stocks like Pets.com, a short-lived online seller of pet supplies, only to watch their wealth evaporate when the dot-com bubble burst.

Bitcoin is the best-known virtual currency but there are now more than 1,500 to choose from, according to market data website CoinMarketCap, ranging from popular coins like ether and ripple to obscure coins like dentacoin, the one intended for dentists.

Exactly how many “noobs” bought into the craze last year is unclear because each transaction is pseudonymous, meaning it is linked to a unique digital address, and few exchanges collect or share detailed information about their users.

A variety of consumer-friendly websites have made investing much easier, and online forums are now filled with posts from ordinary retail investors who were rarely spotted on the cryptocurrency pages of social news hub Reddit before.

Reuters interviewed eight people who recently made their first foray into digital currency investing. Many were motivated by a fear of missing out on profits during what seemed like a never-ending rally last year.

One bitcoin was worth almost $20,000 in December, up around 1,900 percent from the start of 2017. As of Friday afternoon it was worth about $10,000 after having fallen as much as 70 percent from its peak. Other coins made even bigger gains and experienced equally dizzying drops over that time frame.

“There was that two-month period last year where all the virtual currencies kept going and up and I had a couple of friends that had invested and they had made five-figure returns,” said Michael Brown, a research analyst in New Jersey, who said he bought around $1,000 worth of ether in December.

“I got swept by the media frenzy,” he said. “You never hear stories of people losing money.”

In the weeks after Brown invested, his holdings soared as much as 75 percent and tumbled as much as 59 percent.

Buy and ‘Hodl’

Investors who got into bitcoin before its 2013 crash like to refer to themselves as “OGs,” short for “original gangsters.”

They tend to shrug off the recent downturn, arguing that cryptocurrencies will be worth much more in the future.

“As crashes go, this is one of the biggest,” said Xavier Levenfiche, who first invested in cryptocurrencies in 2011.

“But, in the grand scheme of things, it’s a hiccup on the road to greatness.”

Spooked by the sudden fall but not willing to book a loss, many investors are embracing a mantra known as “HODL.” The term stems from a misspelled post on an online forum during the cryptocurrency crash in 2013, when a user wrote he was “hodling” his bitcoin, instead of “holding.”

Mike Gnitecki, for instance, bought one bitcoin at around $18,000 in December and was sitting on a 43 percent decline as of Friday, waiting for a recovery.

“I view it as having been a fun side investment similar to a gamble,” said Gnitecki, a paramedic from Texas. “Clearly I lost some money on this particular gamble.”

Duren, the personal finance writer, is also holding onto his litecoin for now, though he regrets having spent $33 on credit card and exchange fees for a $405 investment.

Some retail investors who went big into cryptocurrencies for the first time during the rally last year remain positive.

Didi Taihuttu announced in October that he and his family had sold everything they owned — including their business, home, cars and toys — to move to a “digital nomad” camp in Thailand.

In an interview, Taihuttu said he has no regrets. The crypto-day-trader’s portfolio is in the black, and he predicts one bitcoin will be worth between $30,000 and $50,000 by year-end.

His backup plan is to write a book and perhaps make a movie about his family’s experience.

“We are not it in it to become bitcoin millionaires,” Taihuttu said.

‘Sooner, Faster, Now’ — the Companies Surfing the E-Commerce Wave

Amazon’s assault on the retail industry has brought misery to traditional retailers without a strong web presence.

Less well noticed is the patchwork of European companies that are turning the e-commerce revolution to their advantage, supplying online giants with everything from forklift trucks and storage space to cardboard boxes and automated warehouses.

Mainly bricks-and-mortar retailers such as Debenhams, H&M, and Marks & Spencer have faced a torrid few years as stretched consumers increasingly look online for bargains.

Online retail sales are growing at double-digit percentage rates in every western European country, according to consultancy the Centre for Retail Research.

In Britain, a fifth of transactions are now conducted online, a five-fold increase over the last decade.

The world’s dominant online retailer Amazon, whose shares have soared 73 percent in the last year, is outside the remit of most European investors because it is U.S. listed, so they have had to look for other ways of buying into the trend.

One is investing in companies that have benefited from the rise of e-commerce.

On February 16, warehouse owner Segro’s shares hit a decade-high after it said space-hungry clients, many in online retail and logistics, continued to buy up storage.

“There is a bull market in impatience,” said Gary Paulin, head of global equities at broker Northern Trust. “Consumers want things sooner, faster, now.”

He advises clients to buy shares in Kion, a German forklift truck-maker that is automating warehouses for online retailers, speeding up deliveries in the process.

He also flagged a turnaround at online supermarket Ocado. The company has long been targeted by short-sellers betting its share price will fall, but recently it has signed tie-ups with food retailers Casino and Sobeys, and its shares have more-than-doubled since November.

Martin Todd, a fund manager at Hermes Investment Management, owns shares in Kion as well as DS Smith, a cardboard-box maker which supplies Amazon as well as a number of other online retailers.

DS Smith is developing technology to custom-make boxes for Amazon that will help reduce large gaps in packages that increase freight costs.

“You might think it is a pretty unsexy business … [but] it is getting more high tech in what is traditionally a very low tech industry,” Todd said.

The company recently entered Britain’s blue-chip FTSE 100 index for the first time.

Buying some stocks exposed to online retail does not come cheap. Ocado shares are currently trading at more than 800 times forecast earnings, according to Eikon data.

John Bennett, head of European equities at Janus Henderson Investors, said while traditional retailers were “absolutely dying,” stocks such as Kion were too expensive for him to own.

“It became a very popular name, and I tend to shy away [from widely-owned companies],” he said. “I am far too curmudgeonly on the multiples you pay.”

Reporting by Alasdair Pal.

US Companies Urged to Issue ‘Clearer’ Cyber Risk Disclosures

The U.S. Securities and Exchange Commission on Wednesday updated guidance to public companies on how and when they should disclose cybersecurity risks and breaches, including potential weaknesses that have not yet been targeted by hackers.

The guidance also said company executives must not trade in a firm’s securities while possessing nonpublic information on cybersecurity attacks. The SEC encouraged companies to consider adopting specific policies restricting executive trading in shares while a hack is being investigated and before it is disclosed.

The SEC, in unanimously approving the additional guidance, said it would promote “clearer and more robust disclosure” by companies facing cybersecurity issues, according to SEC Chairman Jay Clayton, a Republican.

Democrats on the commission reluctantly supported the guidance, describing it as a paltry step taken in the wake of a raft of high-profile hacks at major companies that exposed millions of Americans’ personal information. They called for much more rigorous rule-making to police disclosure around cybersecurity issues, or requiring certain cybersecurity policies at public companies.

Commissioner Robert Jackson said the new document “essentially reiterates years-old staff-level views on this issue,” and pointed to analysis from the White House Council of Economic Advisers that finds companies frequently under-report cybersecurity events to investors.

The SEC first issued guidance in 2011 on cybersecurity disclosures.

“It may provide investors a false sense of comfort that we, at the Commission, have done something more than we have,” Commissioner Kara Stein, another Democrat, said in a statement. Significant breaches have included those at Equifax Inc. consumer credit reporting agency, and at the SEC itself.

The agency announced in September its corporate filing system, known as EDGAR, was breached by hackers in 2016 and may have been used for insider trading. The matter is under review.

The new guidance will mean that corporations disclose more information about cyberattacks and risks and take steps to ensure no insider trading can occur around those events, said several attorneys who advise businesses on the subject.

“This essentially creates a mandatory new disclosure category — cybersecurity risks and incidents,” said Spencer Feldman, an attorney with Olshan Frome Wolosky LLP.

Craig A. Newman, a partner with Patterson Belknap Webb & Tyler LLP, said the SEC guidance “makes clear that it doesn’t want a repeat of the Equifax situation.”

To Get a Ride, Uber Says Take a Walk

The latest variation of an Uber ride will require a short walk.

In eight U.S. cities, the ride-hailing company is rolling out a service called “Express Pool,” which links riders in the same area who want to travel to similar destinations. Once linked, riders would need to walk a couple of blocks to be picked up at a common location. They also would be dropped off at a site that would be a short walk from their final destinations.

Depending on time of day and metro area, Express Pool could cost up to 75 percent less than a regular Uber ride and up to half the cost of Uber’s current shared-ride service called Pool, said Ethan Stock, the company’s product director for shared rides.

Pool, which will remain in use, doesn’t require any walking. Instead it takes an often circuitous route to pick up riders at their location and drops them at their destination. But that can take longer than Express, which travels a more direct route.

Uber has been testing the service since November in San Francisco and Boston and has found enough ridership to support running it 24 hours per day. Within the next two days, the around-the-clock service will start running in Los Angeles; Philadelphia; Washington, D.C.; Miami, San Diego and Denver. More cities will follow, Uber said.

The new service could spell competition for mass transit, but just how much depends on how well it works and how good the mass transit is, said Mark Hallenbeck, director of the Washington State Transportation Center at the University of Washington. If buses or subways are overcrowded and Uber can provide service for a similar price, that will help with mobility.

“If, however, you are cannibalizing transit that’s not over-subscribed, then that becomes a bad thing,” Hallenbeck said.

Also, if the ride-sharing service pulls people off mass transit and creates more automobile traffic, that will add to congestion, he said.

The service could complement Uber X, the company’s door-to-door taxi service — or draw passengers away from it.

Stock said the system should work well with public transit, providing first-mile and last-mile service for transit riders and by providing service to low passenger volume areas where it’s not cost effective for public transit to serve. He also says it will reduce congestion by cutting the number of personal vehicle trips.

Express already has ride-sharing competitors such as Via, which operates in New York, Chicago and Washington, D.C.

Express Pool will have normal-sized cars, at least initially, and optimally will carry a maximum of three passengers so riders aren’t crammed into the vehicles. It could be expanded to six-passenger vehicles, Stock said.

It will take one to two minutes for Uber’s computers to match a rider to a driver and other riders and select a pick-up point, Stock said.

The lower cost of the service should help Uber grow, Stock said. “More riders can afford to take more trips for more reasons,” he said. Already Uber Pool accounts for 20 percent of Uber trips in the cities where it’s available.

Artificial Intelligence Poses Risks of Misuse by Hackers, Researchers Say

Rapid advances in artificial intelligence are raising risks that malicious users will soon exploit the technology to mount automated hacking attacks, cause driverless car crashes or turn commercial drones into targeted weapons, a new report warns.

The study, published on Wednesday by 25 technical and public policy researchers from Cambridge, Oxford and Yale universities along with privacy and military experts, sounded the alarm for the potential misuse of AI by rogue states, criminals and lone-wolf attackers.

The researchers said the malicious use of AI poses imminent threats to digital, physical and political security by allowing for large-scale, finely targeted, highly efficient attacks. The study focuses on plausible developments within five years.

“We all agree there are a lot of positive applications of AI,” Miles Brundage, a research fellow at Oxford’s Future of Humanity Institute. “There was a gap in the literature around the issue of malicious use.”

Artificial intelligence, or AI, involves using computers to perform tasks normally requiring human intelligence, such as making decisions or recognizing text, speech or visual images.

It is considered a powerful force for unlocking all manner of technical possibilities but has become a focus of strident debate over whether the massive automation it enables could result in widespread unemployment and other social dislocations.

The 98-page paper cautions that the cost of attacks may be lowered by the use of AI to complete tasks that would otherwise require human labor and expertise. New attacks may arise that would be impractical for humans alone to develop or which exploit the vulnerabilities of AI systems themselves.

It reviews a growing body of academic research about the security risks posed by AI and calls on governments and policy and technical experts to collaborate and defuse these dangers.

The researchers detail the power of AI to generate synthetic images, text and audio to impersonate others online, in order to sway public opinion, noting the threat that authoritarian regimes could deploy such technology.

The report makes a series of recommendations including regulating AI as a dual-use military/commercial technology.

It also asks questions about whether academics and others should rein in what they publish or disclose about new developments in AI until other experts in the field have a chance to study and react to potential dangers they might pose.

“We ultimately ended up with a lot more questions than answers,” Brundage said.

Macron’s State Reform Tsar Looks to Technology to Cut Red-Tape

France is ready to invest in artificial intelligence, blockchain and data mining to “transform” its sprawling bureaucracy instead of simply trimming budgets and jobs, its administration reform tsar said.

The 39-year old former telecoms executive whom President Emmanuel Macron has charged with reforming the public sector said he believed technology would win support from government employees and in the end produce less costly public services.

Macron himself is coming under pressure from budget watchdogs and Brussels to spell out how he plans to cut 60 billion euros ($74 billion) in public spending and 120,000 public sector jobs to fulfill pledges made in his election campaign.

Chatbots – software that can answer users’ questions with a conversational approach – or algorithms helping the taxman to target potential tax evaders, were some of the possibilities offered by technology, Thomas Cazenave told Reuters in an interview.

“The state … must not fall behind, get ‘uberized’ and shrivel up,” Cazenave said.

“The potential created by digitalization, data and artificial intelligence will help put fewer employees on some tasks, while reinvesting in others,” he added.

A 700-million-euro ($864-million) fund will help invest in IT projects over the next five years to help modernize administration in the highly centralized country and automate some activities.

‘Macron boy’

Cazenave is one of the ‘Macron boys’ whose mix of top civil service pedigree and private sector experience is being used to shake up France’s 5.5 million-strong army of government employees and cut one of the highest public spending ratios in the world.

Only two months younger than Macron, the two met over 10 years ago when they joined the highly selective corps of finance civil servants after graduating from ENA, a graduate school of public administration for the French elite.

Cazenave then became the number 2 human resources executive at telecoms firm Orange, a company which transitioned from government monopoly to globalized private champion. In 2016, Macron prefaced Cazenave’s book, “The State in Start-Up Mode.”

“Like me, the president feels very deeply that these are no longer times where public services can be reformed with small tweaks. Major transformations are needed,” Cazenave said.

Sensitive subject

However, despite frequently referring to transformation and revolution, Macron has taken a cautious approach on belt-tightening measures, with very few details given so far on where the ax will fall.

His budget minister said this month a voluntary redundancy plan could be on the cards, but did not elaborate. More details are expected to be announced in March/April but legislation is not expected before early 2019.

Cazenave said taking time to consult employees was necessary to get government employees on board and to review which public services still need to be ran by government, and which can be outsourced or even abandoned.

He also said previous spending cut plans, such as former conservative leader Nicolas Sarkozy’s decision not to fill one in two vacancies left by retiring baby-boomers had failed to curb spending because the state’s remit had not been changed.

Outsourcing some public services is currently being considered, he said, but the example of British outsourcing firm Carillion’s collapse showed it could not be replicated everywhere.

“There is no place for ideology on the outsourcing debate, in one way or another. The private sector doesn’t have a definitive superiority to the public sector,” he said.

 

Officials: Aid Sector Must Innovate to Deliver Value for Money

The humanitarian sector lacks creativity and must innovate to deliver more value for the money, officials said Monday, amid fears of a funding shortfall following the Oxfam sex scandal.

Aid groups must make better use of technology — from cash transfer programs to drones — to improve the delivery of services, said a panel of government officials in London.

“For far too long, when faced with a challenge, we’ve looked inward and crafted a solution that doesn’t work for the communities we’re meant to serve,” said Mark Green, head of the United States Agency for International Development (USAID).

“Be it in London or [Washington] D.C., we humanitarians are way behind in terms of creativity,” he added.

Green was speaking at an event hosted by the Overseas Development Institute, a think-tank, to launch the Humanitarian Grand Challenge, an initiative by the U.S., British and Canadian governments to promote innovation across the aid sector.

Britain’s aid minister Penny Mordaunt said aid groups must learn from communities’ and the private sector’s creativity in addressing challenges including climate shocks and malnutrition.

Mordaunt cited innovations such as cash transfer programs — whereby recipients receive cash electronically rather than aid provisions — as one way to deliver humanitarian aid better, faster and cheaper, while also giving communities autonomy.

Other promising technologies include gathering data on mobile phones and the use of drones to determine where the most urgent needs are in humanitarian crises, according to Mordaunt.

Green said the United States had spent $8 billion on aid in 2017, of which 80 percent went to services in conflict zones.

“Less than 1 percent of that money, however, went into innovations and ways to improve the delivery of aid services.”

British charity Oxfam has come under fire this month over sexual misconduct accusations against its staff in Haiti and Chad which have threatened its U.K. government and EU funding.

Several industry experts have warned that the backlash against Oxfam could drive charities to cover up cases of sex abuse for fear of losing support and funding from the public, donors and governments.

Robot Drives Itself to Deliver Packages

Delivery robots could one day be part of the landscape of cities around the world. Among the latest to be developed is an Italian-made model that drives itself around town to drop off packages. Since the machine runs on electricity, its developers say it is an environmentally friendly alternative to fuel powered delivery vehicles that cause pollution. VOA’s Deborah Block has more.

Facebook Forges Ahead With Kids App Despite Expert Criticism

Facebook is forging ahead with its messaging app for kids, despite child experts who have pressed the company to shut it down and others who question Facebook’s financial support of some advisers who approved of the app.

Messenger Kids lets kids under 13 chat with friends and family. It displays no ads and lets parents approve who their children message. But critics say it serves to lure kids into harmful social media use and to hook young people on Facebook as it tries to compete with Snapchat or its own Instagram app. They say kids shouldn’t be on such apps at all — although they often are.

“It is disturbing that Facebook, in the face of widespread concern, is aggressively marketing Messenger Kids to even more children,” the Campaign For a Commercial-Free Childhood said in a statement this week.

Lukeward reception

Messenger Kids launched on iOS to lukewarm reception in December. It arrived on Amazon devices in January and on Android Wednesday. Throughout, Facebook has touted a team of advisers, academics and families who helped shape the app in the year before it launched.

But a Wired report this week pointed out that more than half of this safety advisory board had financial ties to the company. Facebook confirmed this and said it hasn’t hidden donations to these individuals and groups — although it hasn’t publicized them, either.

Facebook’s donations to groups like the National PTA (the official name for the Parent Teacher Association) typically covered logistics costs or sponsored activities like anti-bullying programs or events such as parent roundtables. One advisory group, the Family Online Safety Institute, has a Facebook executive on its board, along with execs from Disney, Comcast and Google.

“We sometimes provide funding to cover programmatic or logistics expenses, to make sure our work together can have the most impact,” Facebook said in a statement, adding that many of the organizations and people who advised on Messenger Kids do not receive financial support of any kind.

Common Sense a late addition

But for a company under pressure from many sides — Congress, regulators, advocates for online privacy and mental health — even the appearance of impropriety can hurt. Facebook didn’t invite prominent critics, such as the nonprofit Common Sense Media, to advise it on Messenger Kids until the process was nearly over. Facebook would not comment publicly on why it didn’t include Common Sense earlier in the process. 

“Because they know we opposed their position,” said James Steyer, the CEO of Common Sense. The group’s stance is that Facebook never should have released a product aimed at kids. “They know very well our positon with Messenger Kids.”

A few weeks after Messenger Kids launched, nearly 100 outside experts banded together to urge Facebook to shut down the app , which it has not done. The company says it is “committed to building better products for families, including Messenger Kids. That means listening to parents and experts, including our critics.”

Wired article unfair?

One of Facebook’s experts contested the notion that company advisers were in Facebook’s pocket. Lewis Bernstein, now a paid Facebook consultant who worked for Sesame Workshop (the nonprofit behind “Sesame Street”) in various capacities over three decades, said the Wired article “unfairly” accused him and his colleagues for accepting travel expenses to Facebook seminars. 

But the Wired story did not count Lewis as one of the seven out of 13 advisers who took funding for Messenger Kids, and the magazine did not include travel funding when it counted financial ties. Bernstein was not a Facebook consultant at the time he was advising it on Messenger Kids.

Bernstein, who doesn’t see technology as “inherently dangerous,” suggested that Facebook critics like Common Sense are also tainted by accepting $50 million in donated air time for a campaign warning about the dangers of technology addiction. Among those air-time donors are Comcast and AT&T’s DirecTV.

But Common Sense spokeswoman Corbie Kiernan called that figure a “misrepresentation” that got picked up by news outlets. She said Common Sense has public service announcement commitments “from partners such as Comcast and DirectTV” that has been valued at $50 million. The group has used that time in other campaigns in addition to its current “Truth About Tech” effort, which it’s launching with a group of ex-Google and Facebook employees and their newly formed Center for Humane Technology.

Could Mining, Analyzing Social Media Posts Prevent Future Massacres?

In multiple online comments and posts, Nikolas Cruz, 19, the suspect in the Valentine’s Day high school shooting in Florida, apparently signaled his intent to hurt other people.

I want to “shoot people with my AR-15,” a person using the name Nikolas Cruz wrote in one place. “I wanna die Fighting killing…ton of people.”

As investigators try to piece together what led to the school shooting that left 17 people dead and many others wounded, they are closely examining the suspect’s social media activity, as well as other information about him.

The focus on Cruz’s digital footprint highlights a question that law enforcement, social scientists and society at large have been grappling with: If anyone had been paying attention to his postings, could these deaths have been prevented?

The FBI was contacted about a social media post in which the alleged gunman says he wants to be a “professional school shooter.”

However, though the commenter’s username was “Nikolas Cruz” — the same name as the shooting suspect — the FBI couldn’t identify the poster, according to the Associated Press.

But what if an algorithm could have sifted through all of Cruz’s posts and comments to bring him to the attention of authorities?

Data mining

In an era where data can be dissected and analyzed to predict where cold medicine will most likely be needed next week or which shoes will be most popular on Amazon tomorrow, some people wonder why there isn’t more use of artificial intelligence to sift through social media in an effort to prevent crime.

“We need all the tools we can get to prevent tragedies like this,” said Sean Young, executive director of the University of California Institute for Prediction Technology.

“The science exists on how to use social media to find and help people in psychological need,” he said. “I believe the benefits outweigh the risks, so I think it’s really important to use social media as a prevention tool.”

Despite the 2002 movie Minority Report, about police apprehending murderers before they act based on knowledge provided by psychics known as “precogs,” the idea of police successfully analyzing data to find a person preparing to harm others is still a far-off scenario, according to experts.

Predictive policing

Increasingly, police departments are turning to “predictive policing,” which involves taking large data sets and using algorithms to forecast potential crimes and then deploying police to the region. One potential treasure trove of data is social media, which is often public and can indicate what people are discussing in real time and by location.

Predictive policing, however, comes with ethical questions over whether data sets and algorithms have built-in biases, particularly toward minorities.

A study in Los Angeles aims to see if social media postings can help police figure out where to put resources to stop hate crimes. 

“With enough funds and unfettered data access and linkage, I can see how a system could be built where machine learning could identify patterns in text [threats, emotional states] and images [weapons] that would indicate an increased risk,” said Matthew Williams, director of the social data science lab and data innovation research institute at Cardiff University in Wales. He is one of the Los Angeles study researchers.

“But the ethics would preclude such a system, unless those being observed consented, but then the system could be subverted.”

Arjun Sethi, a Georgetown law professor, says it is impossible to divorce predictive policing from entrenched prejudice in the criminal justice system. “We found big data is used in racially discriminating ways,” he said.

Using Facebook posts

Still, the potential exists that, with the right program, it may be possible to separate someone signaling for help from all the noise on social media.

A new program at Facebook seeks to harness the field of machine learning to get help to people contemplating suicide. Among millions of posts each day, Facebook can find posts of those who may be suicidal or at risk of self-harm — even if no one in the person’s Facebook social circle reported the person’s posts to the company. In machine learning, computers and algorithms collect information without being programmed to do so.

The Facebook system relies on text, but Mark Zuckerberg, the company’s chief executive, has said that the firm may add photos and videos that come to the attention of the Facebook team to review.

Being able to figure out if someone is going to harm himself, herself or others is difficult and raises ethical dilemmas but, says Young of UCLA, a person’s troubling social media posts can be red flags that should be checked out.

Belgian Court Orders Facebook to Stop Collecting Data

Belgian media say a Brussels court has ordered Facebook to stop collecting data about citizens in the country or face fines for every day it fails to comply.

The daily De Standaard reported Friday that the court upheld a Belgian privacy commission finding that Facebook is collecting data without users’ consent.

It said the court concluded that Facebook does not adequately inform users that it is collecting information, what kind of details it keeps and for how long, or what it does with the data.

It has ruled that Facebook must stop tracking and registering internet usage by Belgians online and destroy any data it has obtained illegally or face fines of 250,000 euros ($311,500) every day it delays.

When Will Robots Work Alongside Humans?

Most analysts and economists agree, robots are slowly replacing humans in many jobs. They weld and paint car bodies, sort merchandise in warehouses, explore underground pipes and inspect suspicious packages. Yet we still do not see robots as domestic help, except for robotic vacuum cleaners. Robotics experts say there is another barrier that robots need to cross in order to work alongside humans. VOA’s George Putic reports.

White House Blames Russia for ‘NotPetya’ Cyber Attack

The White House on Thursday blamed Russia for the devastating “NotPetya” cyber attack last year, joining the British government in condemning

Moscow for unleashing a virus that crippled parts of Ukraine’s infrastructure and damaged computers in countries across the globe.

The attack in June of 2017 “spread worldwide, causing billions of dollars in damage across Europe, Asia and the Americas,” White House Press Secretary Sarah Sanders said in a statement.

“It was part of the Kremlin’s ongoing effort to destabilize Ukraine and demonstrates ever more clearly Russia’s involvement in the ongoing conflict,” Sanders added. “This was also a reckless and indiscriminate cyber attack that will be met with international consequences.”

The U.S. government is “reviewing a range of options,” a senior White House official said when asked about the consequences for Russia’s actions.

Earlier on Thursday, Russia denied an accusation by the British government that it was behind the attack, saying it was part of a “Russophobic” campaign that it said was being waged by some Western countries.

The so-called NotPetya attack in June started in Ukraine where it crippled government and business computers before spreading around Europe and the world, halting operations atports, factories and offices.

Britain’s foreign ministry said in a statement released earlier in the day that the attack originated from the Russian military.

“The decision to publicly attribute this incident underlines the fact that the UK and its allies will not tolerate malicious cyber activity,” the ministry said in a statement.

“The attack masqueraded as a criminal enterprise but its purpose was principally to disrupt,” it said.

“Primary targets were Ukrainian financial, energy and government sectors. Its indiscriminate design caused it to spread further, affecting other European and Russian business.”

EU Not Happy With Facebook, Twitter Consumer Rule Remedies

The European Commission says social media giants Facebook and Twitter have only partially responded to its demands to bring their practices into line with EU consumer law.

 

The Commission asked the two companies a year ago to change their terms of service following complaints from people targeted by fraud or scams on social media websites.

 

The EU’s executive arm said Thursday that the firms only partly addressed “issues about their liability and about how users are informed of possible content removal or contract termination.”

 

It said changes proposed by Google+ appear to be in line with demands.

 

Europe’s consumer affairs commissioner, Vera Jourova, said “it is unacceptable that this is still not complete and it is taking so much time.” She called for those flouting consumer rules to face sanctions.

 

Pay-As-You-Go Service Offers Smartphone Access to the Cash-Strapped

Until recently, Javier, a 60-year-old line cook, couldn’t afford a smartphone.

Now, thanks to a Silicon Valley company, Javier has a Galaxy S8, one of Samsung’s high-end smartphones. Javier said he relies on it for everything.

Once a month, he walks into a mobile phone store near San Francisco and makes a cash payment. If he didn’t, the phone would be remotely locked. No YouTube, no Skype calls, no Facebook. He has never missed a payment.

 

WATCH: Pay-As-You-Go Smartphone Gives the Poor Access to Better Technology

Smartphones out of many people’s reach

Around the world, people rely more and more on their smartphones for connecting to the internet, and yet for many, the device is still cost prohibitive. For the roughly 1 in 10 American consumers without financial identities — no banking history or credit scores — it is difficult to get smartphones on one of the low-cost payment plans offered by the major carriers.

Javier, who declined to give his last name because he is an undocumented immigrant, is on his third phone from PayJoy, a company founded by former Google employees. PayJoy offers a pay-as-you-go model for the smartphone market aimed particularly at customers with little or bad credit histories.

“We work with immigrants from all over the world coming to the U.S., and we work with Americans who are just outside the financial system,” said Doug Ricket, PayJoy’s chief executive, who worked in the pay-as-you-go solar industry in Africa. “They can afford $10 a week, and they can get a great smartphone. And for PayJoy, we say, ‘Welcome to the 21st century and get all the modern apps.’”

A new way to figure out a person’s credit risk

PayJoy figures out a person’s risk differently than most companies. A customer provides a Facebook profile, a phone number and some sort of official government ID. PayJoy decides the person’s risk level before offering him or her credit for a phone. Then, a customer picks a payment plan and makes a down payment. PayJoy’s research has found that a Facebook profile can be useful in establishing a person’s identity.

“We’re starting from this pool of people who have no traditional credit score and we’re saying for most of them, we can actually find something that the credit agencies are not finding,” Ricket said.

No payment means no YouTube

If a customer doesn’t pay by 5 p.m. the day payment is due, PayJoy remotely locks the phone. A customer can only make emergency calls or call PayJoy’s customer service. The customer can see that friends are texting or messaging on Facebook, but cannot open the phone to read the messages.

“Now, when we look internationally, we see more people going from a flip phone to smartphones, and people upgrading from a really basic level to one that can handle Facebook, maps and Instagram,” Ricket said.

If customers stop paying, they can return the phone without penalty. But if they do pay off the phone, they can qualify for an even better one. PayJoy makes its money by charging monthly interest — as high as 50 percent in some cases — on the retail price of the phone.

Expanding into Africa, Asia and India

The company is operating in the United States and Mexico and has plans to expand into Kenya, Tanzania, southeast Asia and India. So far, PayJoy offers only smartphones running Android, the operating system created by Google, but Ricket hopes to offer iPhones one day.

PayJoy’s vision is to be not just a smartphone firm, but a financing company, offering customers a way to use their phones as collateral to pay off televisions and other household goods.

“Once the customer gets the smartphone, they can potentially use that smartphone either by buying the smartphone with PayJoy or just collateralize an existing smartphone to finance a TV or a sofa,” Ricket said.

If PayJoy takes off, people in emerging markets may be able to upgrade their phone choices, and have a new way to finance their purchases.