Technology

Russian Hackers Targeted More Than 200 Journalists Globally

Russian television anchor Pavel Lobkov was in the studio getting ready for his show when jarring news flashed across his phone: Some of his most intimate messages had just been published to the web.

Days earlier, the veteran journalist had come out live on air as HIV-positive, a taboo-breaking revelation that drew responses from hundreds of Russians fighting their own lonely struggles with the virus. Now he’d been hacked.

“These were very personal messages,” Lobkov said in a recent interview, describing a frantic call to his lawyer in an abortive effort to stop the spread of nearly 300 pages of Facebook correspondence, including sexually explicit messages. Even two years later, he said, “it’s a very traumatic story.”

The Associated Press found that Lobkov was targeted by the hacking group known as Fancy Bear in March 2015, nine months before his messages were leaked. He was one of at least 200 journalists, publishers and bloggers targeted by the group as early as mid-2014 and as recently as a few months ago.

The AP identified journalists as the third-largest group on a hacking hit list obtained from cybersecurity firm Secureworks, after diplomatic personnel and U.S. Democrats. About 50 of the journalists worked at The New York Times. Another 50 were either foreign correspondents based in Moscow or Russian reporters like Lobkov who worked for independent news outlets. Others were prominent media figures in Ukraine, Moldova, the Baltics or Washington.

The list of journalists provides new evidence for the U.S. intelligence community’s conclusion that Fancy Bear acted on behalf of the Russian government when it intervened in the U.S. presidential election. Spy agencies say the hackers were working to help Republican Donald Trump. The Russian government has denied interfering in the American election.

Previous AP reporting has shown how Fancy Bear — which Secureworks nicknamed Iron Twilight — used phishing emails to try to compromise Russian opposition leaders, Ukrainian politicians and U.S. intelligence figures, along with Hillary Clinton campaign chairman John Podesta and more than 130 other Democrats.

Lobkov, 50, said he saw hacks like the one that turned his day upside-down in December 2015 as dress rehearsals for the email leaks that struck the Democrats in the United States the following year.

“I think the hackers in the service of the Fatherland were long getting their training on our lot before venturing outside.”

‘Classic KGB tactic’

New Yorker writer Masha Gessen said it was also in 2015 — when Secureworks first detected attempts to break into her Gmail — that she began noticing people who seemed to materialize next to her in public places in New York and speak loudly in Russian into their phones, as if trying to be overheard. She said this only happened when she put appointments into the online calendar linked to her Google account.

Gessen, the author of a book about Russian President Vladimir Putin’s rise to power, said she saw the incidents as threats.

“It was really obvious,” she said. “It was a classic KGB intimidation tactic.”

Other U.S.-based journalists targeted include Josh Rogin, a Washington Post columnist, and Shane Harris, who was covering the intelligence community for The Daily Beast in 2015. Harris said he dodged the phishing attempt, forwarding the email to a source in the security industry who told him almost immediately that Fancy Bear was involved.

In Russia, the majority of journalists targeted by the hackers worked for independent news outlets like Novaya Gazeta or Vedomosti, though a few — such as Tina Kandelaki and Ksenia Sobchak — are more mainstream. Sobchak has even launched an improbable bid for the Russian presidency.

Investigative reporter Roman Shleynov noted that the Gmail hackers targeted was the one he used while working on the Panama Papers, the expose of international tax avoidance that implicated members of Putin’s inner circle.

Fancy Bear also pursued more than 30 media targets in Ukraine, including many journalists at the Kyiv Post and others who have reported from the front lines of the Russia-backed war in the country’s east.

Nataliya Gumenyuk, co-founder of Ukrainian internet news site Hromadske, said the hackers were hunting for compromising information.

“The idea was to discredit the independent Ukrainian voices,” she said.

The hackers also tried to break into the personal Gmail account of Ellen Barry, The New York Times’ former Moscow bureau chief.

Her newspaper appears to have been a favorite target. Fancy Bear sent phishing emails to roughly 50 of Barry’s colleagues at The Times in late 2014, according to two people familiar with the matter. They spoke on condition of anonymity to discuss confidential data.

The Times confirmed in a brief statement that its employees received the malicious messages, but the newspaper declined to comment further.

Some journalists saw their presence on the hackers’ hit list as vindication. Among them were CNN security analyst Michael Weiss and Brookings Institution visiting fellow Jamie Kirchick, who took the news as a badge of honor.

“I’m very proud to hear that,” Kirchick said.

The Committee to Protect Journalists said the wide net cast by Fancy Bear underscores efforts by governments worldwide to use hacking against journalists.

“It’s about gaining access to sources and intimidating those journalists,” said Courtney C. Radsch, the group’s advocacy director.

In Russia, the stakes are particularly high. The committee has counted 38 murders of journalists there since 1992.

Many journalists told the AP they knew they were under threat, explaining that they had added a second layer of password protection to their emails and only chatted over encrypted messaging apps like Telegram, WhatsApp or Signal.

Fancy Bear target Ekaterina Vinokurova, who works for regional media outlet Znak, said she routinely deletes her emails.

“I understand that my accounts may be hacked at any time,” she said in a telephone interview. “I’m ready for them.” 

‘I’ve seen what they could do’

It’s not just whom the hackers tried to spy on that points to the Russian government.

It’s when.

Maria Titizian, an Armenian journalist, immediately found significance in the date she was targeted: June 26, 2015.

“It was Electric Yerevan,” she said, referring to protests over rising energy bills that she reported on. The protests that rocked Armenia’s capital that summer were initially seen by some in Moscow as a threat to Russian influence.

Titizian said her outspoken criticism of the Kremlin’s “colonial attitude” toward Armenia could have made her a target.

Eliot Higgins, whose open source journalism site Bellingcat repeatedly crops up on the target list, said the phishing attempts seemed to begin “once we started really making strong statements about MH17,” the Malaysian airliner shot out of the sky over eastern Ukraine in 2014, killing 298 people. Bellingcat played a key role in marshaling the evidence that the plane was destroyed by a Russian missile — Moscow’s denials notwithstanding.

The clearest timing for a hacking attempt may have been that of Adrian Chen.

On June 2, 2015, Chen published a prescient expose of the Internet Research Agency, the Russian “troll factory” that won fresh infamy in October over revelations that it had manufactured make-believe Americans to pollute social media with toxic rhetoric.

Eight days after Chen published his big story, Fancy Bear tried to break into his account.

Chen, who has regularly written about the darker recesses of the internet, said having a lifetime of private messages exposed to the internet could be devastating.

“I’ve covered a lot of these leaks,” he said. “I’ve seen what they could do.”

Is That Toy Spying on You?

The toys your kids unwrap this Christmas could invite hackers into your home.

That Grinch-like warning comes from the FBI, which said earlier this year that toys connected to the internet could be a target for crooks who may listen in on conversations or use them to steal a child’s personal information.

The bureau did not name any specific toys or brands, but it said any internet-connected toys with microphones, cameras or location tracking might put a child’s privacy or safety at risk. That could be a talking doll or a tablet designed for kids. And because some of the toys are being rushed to be made and sold, the FBI said, security safeguards might be overlooked.

Security experts say the only way to prevent a hack is to not keep the toy. But if you decide to let a kid play with it, there are ways to reduce the risks:  

 

Do your research

Before opening a toy, search for it online and read reviews to see whether there are any complaints or past security problems. If there have been previous issues, you may want to rethink keeping it.

Reputable companies will also explain how information is collected from the toy or device, how the data are stored and who has access to the data. Usually that type of information is found on the company’s website, typically under its privacy policy. If you can’t find it, call the company. If there isn’t a policy, that’s a bad sign.

“You shouldn’t use it,” said Behnam Dayanim, a partner at the Paul Hastings law office in Washington and co-chair of its privacy and cybersecurity practice.

Companies can change their privacy policies, so read them again if you’re notified of a change. 

Use secure Wi-Fi

Make sure the Wi-Fi the toy will be connected to is secure and has a hard-to-guess password. Weak passwords make it easier for hackers to access devices that use the network. Never connect the toy to free Wi-Fi that’s open to the public. And if the toy itself allows you to create a password, do it. 

 

Power it off

When the toy is not being used, shut it off or unplug it so it stops collecting data. 

“They become less of an attractive target,” said Alan Brill, who is a cybersecurity and investigations managing director at consulting firm Kroll in Secaucus, New Jersey. 

If the item has a camera, face it toward a wall or cover it with a piece of tape when it’s not being used. Toys with microphones can be thrown in a chest or drawer where it’s harder to hear conversations, Brill said.

Register, but don’t give away info

A software update may fix security holes, and you don’t want to miss that fix, Brill said.

But when registering, be stingy with the information you hand over; all they need is contact information to let you know about the update. If they require other information, such as a child’s birthday, make one up. “You’re not under oath,” said Brill. “You can lie.”

Be vigilant

If the toy or device allows kids to chat with other people playing with the same toy or game, explain to children that they can’t give out personal information, said Liz Brown, a business law professor at Bentley University in Waltham, Massachusetts, who focuses on technology and privacy law.

Discussions are not enough; check the chat section to make sure children aren’t sending things they shouldn’t be, Brown said. People could be pretending to be kids to get personal information. “It can get creepy pretty fast,” said Brown.

Reputable companies that make toys with microphones will offer ways for parents to review and delete stored information. Take advantage of that.

Report breaches

If a toy was compromised by a hacker, the FBI recommends reporting it online through its internet crime complaint center at IC3.gov.

Russia’s Globex Bank Says Hackers Targeted Its SWIFT Computers

Hackers tried to steal 55 million rubles ($940,000) from Russian state bank Globex using the SWIFT international payments messaging system, the bank said Thursday, the latest in a string of attempted cyberheists that use fraudulent wire-transfer requests.

Globex President Valery Ovsyannikov told Reuters that the attempted attack occurred last week, but that “customer funds have not been affected.”

The bank’s disclosure came after SWIFT, whose messaging system is used to transfer trillions of dollars each day, warned late last month that the threat of digital heists was on the rise as hackers use increasingly sophisticated tools and techniques to launch new attacks.

SWIFT said in late November that hackers continued to target the SWIFT bank messaging system, though security controls instituted after last year’s $81 million heist at Bangladesh’s central bank have helped thwart many of those attempts.

Sources familiar with last week’s attack on Globex said the bank had spotted the attack and been able to prevent the cybercriminals from stealing all the funds they had sought, according to a report in the Kommersant daily. The hackers withdrew only about $100,000, the report said.

Globex is a part of the state development bank VEB. VEB plans to transfer Globex to the state property management agency, sources familiar with the talks told Reuters this week.

SWIFT representatives declined to discuss the Globex case.

“We take cybersecurity very seriously, and we investigate all threats very seriously, taking all appropriate actions to mitigate any risks and protect our services,” the group said in a statement emailed to Reuters. “There is no evidence to suggest that there has been any unauthorized access to SWIFT’s network or messaging services.”

Brussels-based SWIFT has issued a string of warnings urging banks to bolster security in the wake of the February 2016 cyberheist at the Bangladesh bank, which targeted central bank computers used to move funds through the messaging system.

While SWIFT has declined to disclose the number of attacks or identify any victims, details of some cases have become public, including attacks on Taiwan’s Far Eastern International Bank and Nepal’s NIC Asia Bank.

Shane Shook, a cyberexpert who has helped investigate some hacks targeting the SWIFT messaging network, said that at least seven distinct groups have been launching such attacks for at least five years, though most go unreported.

Apple Acknowledges Taking Action to Slow Down Older iPhones

Apple, the American multi-national technology company, has acknowledged it has taken action that slows the performance of its older iPhones.

After Primate Labs, which makes an application that measures the speed of iPhone processors, disclosed data Monday that seemingly showed the iPhone 6 and iPhone 7 models perform slower as they aged, Apple addressed the claims two days later.

Apple said it released software last year that makes those models operate more slowly to countervail problems with their aging lithium ion batteries, which can sometimes cause operational problems or cause phones to unexpectedly shut down.

The technology giant said the reason for the updated software was to provide better power management capabilities, which also slows down the phones, to prevent them from shutting down.

One solution to a slower, older iPhone would be to buy a new battery instead of a new phone. Apple charges $79 to replace the battery if the phone is no longer covered by a warranty. Owners can also purchase a kit to replace the battery. But the company has long been criticized by repair advocates for making the batteries difficult for users to replace on their own.

EU Court Rules Uber Should be Regulated Like Taxi Service

The European Court of Justice ruled Wednesday that ride-hailing company Uber should be regulated like a taxi service instead of a technology firm, a decision that limits its business operations in Europe.

The decision was handed down in response to a complaint from a Barcelona taxi drivers association, which tried to prevent Uber from expanding into the Spanish city. The drivers maintained that Uber drivers should be subject to authorizations and license requirements and accused the company of engaging in unfair competition.

The San Francisco-based Uber contends it should be regulated as an information services provider because it is based on a mobile application that links passengers to drivers.

The European Union’s highest court said services provided by Uber and similar companies are “inherently linked to a transport service” and therefore must be classified as “a service in the field of transport” under EU law.

The decision will impact ride-hailing companies in the 28-nation EU, where national governments can now regulate them as transportation services.

Uber attempted to downplay the decision, saying it only affects its operations in four countries and that it will move forward with plans to expand in Europe. But the company was previously forced to abandon its peer-to-peer service in several EU countries that connect freelance drivers with riders.

Facebook to Notify Users When Photos of Them Are Uploaded

Facebook Inc said on Tuesday it would begin using facial recognition technology to tell people on the social network when others upload photos of

them, if they agree to let the company keep a facial template on file.

The company said in a statement it was making the feature optional to allow people to protect their privacy, but that it thought some people would want to be notified of pictures they might not otherwise know about.

The feature would not immediately be available in Canada and the European Union, Facebook said. Privacy laws are generally stricter in those jurisdictions, though the company said it was hopeful about implementing the feature there in the future.

Tech companies are putting in place a variety of functions using facial recognition technology, despite fears about how the facial data could be used. In September, Apple Inc revealed that users of its new iPhone X would be able to unlock the device using their face.

Facial recognition technology has been a part of Facebook since at least 2010, when the social network began offering suggestions for whom to tag in a photo. That feature also is optional.

For those who have opted in, Facebook creates what it calls a template of a person’s face by analyzing pixels from photos where the person is already tagged. It then compares newly uploaded images to the template.

Facebook deletes the template of anyone who then opts out, Rob Sherman, Facebook’s deputy chief privacy officer, said in a statement.

Under the new feature, people who have opted in would get a notification from Facebook if a photo of them has been uploaded, although only if the photo is one they have access to.

The company plans to add an “on/off” switch to allow users to control all Facebook features related to facial recognition, Sherman said. “We thought it was important to have a really straightforward way of controlling facial recognition technology,” he said.

Facebook said it also plans to use facial recognition technology to notify users if someone else uploads a photo of them as their profile picture, which the company said may help reduce impersonations, as well as in software that describes photos in words for people who have vision loss, so that they

can tell who is in a photo.

Reporting by David Ingram; Editing by Leslie Adler.

US Blames North Korea for Global Cyber Attack

The United States is publicly blaming North Korea for unleashing a cyber attack that crippled hospitals, banks and other companies across the globe earlier this year.

In an op-ed piece posted on the Wall Street Journal website Monday night, Homeland Security Adviser Tom Bossert said that North Korea was “directly responsible” for the WannaCry ransomware attack, and that Pyongyang will be held accountable for it.

“The attack was widespread and cost billions, and North Korea is directly responsible,” Bossert writes. “North Korea has acted especially badly, largely unchecked, for more than a decade, and its malicious behavior is growing more egregious.”

Bossert says President Donald Trump’s administration will continue to use its “maximum pressure strategy to curb Pyongyang’s ability to mount attacks, cyber or otherwise.”

Pyongyang has previously denied being responsible for the attack.

But, the U.S. government has assessed with a “very high level of confidence” that a hacking entity known as Lazarus Group, which works on behalf of the North Korean government, carried out the WannaCry attack, senior officials told Reuters.

Facebook Reveals Data on Copyright and Trademark Complaints

Facebook announced Monday that it removed nearly 3 million posts, including videos, ads and other forms of content, from its services during the first half of 2017 following complaints of counterfeiting and copyright and trademark infringement.

The worldwide data on intellectual property-related takedowns is a new disclosure for Facebook as part of its biannual “Transparency Report,” Chris Sonderby, a deputy general counsel at the firm, said in a blog post.

“We believe that sharing information about (intellectual property) reports we receive from rights holders is an important step toward being more open and clear about how we protect the people and businesses that use our services,” Sonderby wrote.

Transparency report

The ninth Facebook transparency report also showed that government requests for information about users increased 21 percent worldwide compared with the second half of 2016, from 64,279 to 78,890.

For intellectual property disputes, Facebook offers monitoring tools that alert rights holders to suspected copies of their videos and songs on Facebook and use of their brand.

Rights holders can send takedown requests for unauthorized uses to a team of Facebook content analysts.

Entertainment and media industry groups have long expressed frustration with the process, contending that they bear too much of the internet policing burden and that online services should be more proactive about stemming infringement.

377,400 complaints

Facebook did not supply data about earlier periods or release individual requests, a level of detail that advertising rival Alphabet Inc provides for requests to remove Google search results.

Aggregate data shows Facebook received about 377,400 complaints from January through June, with many referencing multiple posts. About 60 percent of the reports related to suspected copyright violations on Facebook.

A “small fraction” of requests were excluded because they were not sent through an official form, Facebook said.

The company removed user uploads in response to 81 percent of filings for counterfeiting, 68 percent for copyrights and 47 percent for trademarks, according to its report. The percentages were roughly similar for Instagram.

US Bars Drones Over Nuclear Sites for Security Reasons

The Federal Aviation Administration said Monday it will bar drone flights over seven major U.S. nuclear sites, including Los Alamos National Laboratory in New Mexico.

The move is the latest in a series of growing restrictions on unmanned aerial vehicles over U.S. sites that have national security implications.

The new restrictions begin Dec. 29 and include the Hanford Site in Washington State, Idaho National Laboratory, Savannah River National Laboratory in South Carolina, Pantex Site in Texas, and the Y-12 National Security Site and Oak Ridge National Laboratory in Tennessee.

The FAA said it is considering additional requests from other federal security agencies to bar drones.

Earlier this year, the FAA banned drone flights over 133 U.S. military facilities. The Pentagon said in August that U.S. military bases could shoot down drones that endanger aviation safety or pose other threats.

The FAA also banned drone flights over 10 U.S. landmarks in September, including the Statue of Liberty in New York and Mount Rushmore National Memorial in South Dakota, at the request of national security and law enforcement agencies.

It separately barred drone flights over the USS Constitution in Boston, the Gateway Arch in St. Louis and Independence National Historical Park in Philadelphia. The list also includes Glen Canyon Dam in Arizona, Hoover Dam in Nevada and Grand Coulee Dam in Washington state.

Last week, the National Transportation Safety Board said a September collision between a small civilian drone and a U.S. Army helicopter was caused by the drone operator’s failure to see the helicopter because he was intentionally flying the drone out of visual range.

The incident between a U.S. Army UH-60M Black Hawk helicopter and a DJI Phantom 4 drone near Staten Island, New York, occurred as concerns mount over the rising number of unmanned aircraft in U.S. airspace.

The helicopter landed safely, but a 1 1/2-inch (3.8-cm) dent was found on the leading edge of one of its four main rotor blades and parts of the drone were found lodged in its engine oil cooler fan. The Army said previously the helicopter was not targeted and that it was struck by a drone being operated by a hobbyist.

Government and private-sector officials are concerned that dangerous or even hostile drones could get too close to places like military bases, airports and sports stadiums.

Twitter Suspends White Nationalists Under New Rules

Twitter suspended the accounts of well-known white nationalists Monday, moving swiftly after putting into place new rules on what it sees as abusive content.

The account of far-right group Britain First, a small group that regularly posts inflammatory videos purporting to show Muslims engaged in acts of violence, was among the first to go dark. The individual accounts of two of its leaders, Jayda Fransen and Paul Golding, were also suspended.

President Donald Trump caused a stir last month when he retweeted a post by Fransen, drawing criticism from British Prime Minister Theresa May. Fransen and Golding were arrested in Belfast last week for allegedly stirring up hatred.

The guidelines, announced a month ago and put into force this week, address hateful images or symbols, including those attached to user profiles.

Monitors at the company will weigh hateful imagery in the same way they do graphic violence and adult content.

If a user wants to post symbols or images that might be considered hateful, the post must be marked “sensitive media.” Other users would then see a warning that would allow them to decide whether to view the post.

Twitter is also prohibiting users from abusing or threatening others through their profiles or usernames.

The account for American Renaissance, a white nationalist online magazine run by Jared Taylor, was among those suspended. The magazine responded to the Twitter ban with the terse message, “this isn’t goodbye” and referred readers to a chat site frequented by white nationalists. Brad Griffin, who blogs under the name Hunter Wallace on the website Occidental Dissent, said in blog post that he was also suspended, along with Michael Hill of the Traditionalist Workers Party and others.

The white nationalist Richard Spencer, whose account was not suspended, tweeted that he had lost more than a hundred followers in the past 24 hours and noted that he didn’t “see any systematic method to the (hash)TwitterPurge.”

There appeared to be some inconsistencies in the enforcement. Still on Twitter was David Duke, with some of his posts hidden behind the “sensitive material” warning. However, Twitter allowed him to keep the message “It’s Ok To Be White” as his header, even though the same phrase was hidden by the warning on his pinned tweet.

Twitter said it would not comment on individual accounts.

While the new guidelines are now in play, the social media company continues to work out internal monitoring tools and it is revamping the appeals process for banned or suspended accounts. But Twitter will begin accepting reports from users.

Users can report profiles, or users, that they consider to be in violation of Twitter policy. Previously, users could only report individual posts they deemed offensive.

Now being targeted are “logos, symbols, or images whose purpose is to promote hostility and malice against others based on their race, religion, disability, sexual orientation, or ethnicity/national origin.”

There is no specific list, however, of banned symbols or images. Rather, the company will review complaints individually to consider the context of the post or profile, including cultural and political considerations.

It is also broadening existing policies intended to reduce threatening content, to include imagery that glorifies or celebrates violent acts. That content will be removed and repeat offenders will be banned. Beginning Monday, the company will ban accounts affiliated with “organizations that use or promote violence against civilians to further their causes.”

While more content is banned, the company has provided more leeway for itself after it was criticized for strict rules that resulted in account suspensions.

There was a backlash against Twitter after it suspending the account of actress Rose McGowan who opened a public campaign over sexual harassment and abuse, specifically naming Hollywood mogul Harvey Weinstein. Twitter eventually reinstated McGowan’s account and said that it had been suspended because of a tweet that violated its rules on privacy.

“In our efforts to be more aggressive here, we may make some mistakes and are working on a robust appeals process,” Twitter said in its blog post.

Twitter relies in large part on user reports to identify problematic accounts and content, but the company said it is developing “internal tools” to bolster its ability to police content.

Twitter also seeks to improve communications with users about the decisions it makes. That includes telling those who have been suspended which rules they had violated.

Internet Giants Told: Accept Cyber Curbs to Be Welcome in China

Google and Facebook will have to accept China’s censorship and tough online laws if they want access to its 751 million internet users, Chinese regulators told a conference in Geneva on Monday.

Google and Facebook are blocked in China, along with Twitter Inc and most major Western news outlets.

“That’s a question maybe in many people’s minds, why Google, why Facebook are not yet working and operating in China,” said Qi Xiaoxia, director general of the Bureau of International Cooperation at the Cyberspace Administration of China (CAC). In Google’s case, it left China of its own accord in 2010.

“If they want to come back, we welcome,” Qi told the Internet Governance Forum at the U.N.’s European headquarters.

“The condition is that they have to abide by Chinese law and regulations. That is the bottom line. And also that they would not do any harm to Chinese national security and national consumers’ interests.”

China’s Communist Party has tightened cyber regulation in the past year, formalizing new rules that require firms to store data locally and censor tools that allow users to subvert the Great Firewall that blocks sites including Facebook and Google.

Their rival Apple operates subject to strict censorship, having removed dozens of popular messaging and virtual private network (VPN) apps from its China App Store this year to comply with government requests.

In June, China introduced a new national cybersecurity law that requires foreign firms to store data locally and submit to data surveillance measures.

“We are of the idea that cyberspace is not a space that is ungoverned. We need to administer, or supervise, or manage, the internet according to law,” Qi said.

“Can you guess the number of websites in China? We have five million websites. That means that the Chinese people’s rights of speech and rights of expression are fully ensured.”

It was not clear what her figure of five million was based on. According to the website internetlivestats.com, there are 1.3 billion websites on the World Wide Web, defining a website as a unique hostname which can be resolved, using a name server, into an IP address.

Reporting by Tom Miles, additional reporting by Cate Cadell in Beijing, Editing by William Maclean.

Apple’s 2017 iPhone Models Give Taiwan’s Weary Tech Sector a Reprieve

A boom in production of Apple iPhones is helping lift the economy of Taiwan, an industrial center that still relies on high-tech manufacturing contracts despite increasing competition from offshore.

Apple’s phone sales in the third quarter this year grew 5.7 percent over the same period of 2016, ahead of a cross-brand increase of 3 percent to 383 million units, market research firm Gartner says.

Orders for older iPhones as well as the iPhone X, which is seen taking off next year, have solidified orders for parts supplied by tech firms in Taiwan, analysts say.

Tech specialists say the Silicon Valley icon is looking this year to Taiwanese firms for chip production, camera modules, displays and final assembly.

Taiwanese-owned Foxconn Technology often assembles Apple gear at sprawling factories in China, for example. Taiwan Semiconductor Manufacturing Co., the world’s biggest chipmaker, is building the A11 processor for the iPhone 8, local media reports say.

“It’s a good shot in the arm,” said John Brebeck, Taipei-based managing director of the Hong Kong investment consultancy Peace Field. “If you’ve got Apple making a new chip, if you’ve got the OLED (display) guys and if you’ve got Foxconn with the assembly, the camera module guys, that’s a pretty big chunk of Taiwan GDP.”

A reprieve as offshore competition intensifies

Officials in Taipei worry that China will take a growing share of the world’s hardware manufacturing business, a trend spotted in 2013 when Taiwan’s tablet PC assembly began moving across the strait. China’s costs are generally lower and production scales higher.

Taiwanese high-tech, an aging industry worth about one-fifth of the island’s $528 billion GDP, has long depended on Apple among other developers for orders.

Tech hardware contracts often follow from years of trusted relationships based on quality supplies or assembly, Gartner’s Taipei-based research vice president Tracy Tsai said, citing orders for Macs as an example.

Mac shipments should grow 4 percent this year and 3 percent in 2018 as users replace older devices, she said.

“Notebooks are a something that’s very focused on previous quality and the numerous standards maintained by suppliers, what they measure up to,” Tsai said. “It’s not so easy to change it all, so (it’s) still mainly about Taiwan.”

Apple declined to comment for this report, and its Taiwanese contractors seldom discuss the sources of their business.

Cycles in global demand for consumer electronics highlight Taiwan’s dependence on high-tech. When demand sagged in 2015 and early 2016, Taiwan’s income from exports shrank for 17 straight months. It has stabilized since then.

A tale of cameras and displays

Taiwan-based Largan Precision has made iPhone modules over at least the past six years, analysts believe. But the iPhone X comes with three-dimensional cameras equipped for face recognition, and given the depth of that new technology Largan may share orders.

Apple is expected to tap several suppliers for the related parts, said Bryan Ma, devices analysis vice president with market research firm IDC in Singapore.

Production of smartphone displays also shows pressure from China. Taiwanese display makers AU Optronics and Innolux ranked among IDC’s top five firms for market share in the third quarter.

But BOE Technology of Beijing reached the top spot with a 23.5 percent market share.

BOE gets subsidies from local government in China. It has held prices down and splits its business between higher-end OLED smartphone screens and the basic LCD type used by a range of consumer electronics, said Hattie He, an analyst for mobility service at Canalys in Shanghai. The Apple X uses OLED displays.

“To many Chinese vendors, BOE provides an affordable alternative to the international suppliers, gaining an edge in the OLED transition phase,” He said. “As display is part of the solution, being a leading provider will help BOE continue its growth.”

Chinese PC maker Lenovo and telecom equipment manufacturers Huawei Technologies and ZTE are reaching “sufficient scale to take their businesses worldwide,” Strategy&, a consulting group under PwC, said in a report. “They will be joined, in turn, by hundreds and then thousands more.”

Gains in 2018 from the iPhone X

Apple’s iPhone shipments next year will rise 8 percent to 240 million largely because of the X model, Ma with IDC says.

Apple had already returned to growth in China in the third quarter while posting “strong sales” in emerging markets such as India, Gartner says. The iPhone X got off to a late start, extending benefits to suppliers into next year.

“The expectation always has been that this 10th anniversary edition is going to hit big and clearly as the product came out it was obvious that they had done a lot in the product to make it dramatically different from generations of the past,” Ma said.

New Kind of Retirement Community: A Little India in Silicon Valley 

With people coming from around the world to work in Silicon Valley, some struggle with the best ways to care for their aging parents.

Increasingly, the solution is an “affinity” retirement community, where older people from places like India and China can live near — but not with — their adult children. These communities break from traditional custom that parents and children live together.

“The children are so busy these days, they are all the time working, taking care of their kids, so we do not want to interfere in their lives,” said Asha RaoRane, an Indian national who wanted to move to the U.S. to be near her three daughters who had immigrated to San Francisco.

Her daughters started exploring the idea of a traditional senior retirement community, but were having trouble finding an American community they thought their mother would fit into.

In July, RaoRane, 70, moved into Priya Living, an affinity-living community, meaning it caters to people with similar interests, such as yoga and meditation.

Arun Paul founded Priya Living as a place for his parents to live. The couple moved from Los Angeles four years ago and are still in a ground floor apartment.

“In living here in America, as the son of immigrants, I’ve realized that there’s very unique needs that immigrants have,” said Paul, a real-estate developer.

“That old system was based on a different time when women were in the house, really taking care, in many cultures, of their husband’s parents,” Paul said. “Obviously the role of women in society has changed globally.”

New friends

For Bhagyashree RaoRane, 38, finding Priya Living for her mother has been a dream come true.

“We walked in and instantly it was like walking into an Indian community in India,” said RaoRane, a filmmaker. “Even the building is painted the same color as so many of the buildings in India are painted.”

This type of independent senior community came as a shock to Nagendra Prasad, 62, and Manjula Neelakantaiah, 53, who came to Priya on a two-month visit from Bangalore, India, to see their daughter, an intern at Google.

“Really, in the beginning we were surprised,” Neelakantaiah said. “In India the younger people, they definitely take care of the aged people.”

Not always a good fit

For a few residents, Priya is not the perfect fit. Dr. Byravan Viswanathan and his wife, Lakshmi, were born and raised in India but spent much of their adult lives in a small town in Pennsylvania.

“We had oodles and oodles of good friends and they were not Indians — regular Americans,” he said. “We had become so Westernized, we have to adapt to Indian living again. Look around. There are six different Indian languages spoken right now at this table, languages I have never spoken or haven’t spoken in decades.” Viswanathan’s daughter is looking into finding a more American community for them.

All are welcome

While the vast majority of residents are from India, Paul stressed that Priya Living welcomes people of all backgrounds. There are a few non-Indians who call Priya home.

Carlos McCann, an 89-year-old WW II veteran, has been living in the complex for almost 20 years, long before it was purchased and remodeled to become the primarily Indian community.

“Everything has sort of come together at this location it’s like it’s the center of the world,” he said.

Indian Retirees Maintain Independence, Fun and Freedom Later in Life

Young people come from around the world to work in Silicon Valley, California. As these workers build a life away from home, many struggle with how to bring their aging parents to their new community. But what happens to foreign parents entering their later years in a new country? VOA’s Deana Mitchell visits a unique community in Silicon Valley that caters to retirees from India.

Facebook Highlights Dangers of Using Facebook

With nearly 2 billion users, Facebook’s survival depends on people continuing to use its service. 

That’s why observers were surprised by an unusual company blog post Friday that highlighted some of the potential harm of using the social media service. 

Titled Hard Questions: Is Spending Time on Social Media Bad for Us?,

the company cited studies that suggested some of the possible downsides of using social media. 

In one study, people who passively read about others’ lives reported feeling worse about themselves. One possibility is “negative social comparison” when reading about others online, the company said, because “people’s posts are often more curated and flattering” than how they are in their real, offline lives. 

But there’s a potential solution, according to Facebook, which reported $10 billion in revenue — its highest ever — in the last quarter: Don’t be a bystander to others’ lives. Use Facebook more and with friends and family.

Facebook users who spend more time on Facebook — actually post and interact with close friends — experienced more positive effects, according to a company study conducted with Carnegie Mellon University.

“Simply broadcasting status updates wasn’t enough,” the post said. “People had to interact one-on-one with others in their network.”

New features

The Facebook post came as some former top executives have spoken about Facebook’s potential negative effects on society and individuals. Facebook exploits a “vulnerability in human psychology,” Sean Parker, Facebook’s founding president, said recently.

To aid in supporting people’s well-being while using its service, the company recently tweaked its News Feed — what people see when they sign on — to promote friendships and demote what the firm called “clickbait headlines.” 

Also, it launched a new feature called “Snooze” that lets a user hide a person, Facebook page or group for 30 days without having to “unfollow.” It gives a Facebook user more control of what he or she sees, the company said. 

Effects on kids

The company acknowledged that people are worried about the short- and long-term effects of Facebook use on young people. It pledged $1 million toward research to “better understand the relationship between media technologies, youth development and well-being.”

Observers praised the company for acknowledging that using social media may have unintended, negative consequences, but noted that it was unusual for a corporation, one that typically presents itself as a force for good, to point out some of the risks of using its service. 

One unanswered question is whether Facebook with new features and tweaks can offset potential negative effects. 

Or will people put a Snooze button on Facebook? 

US Prosecutors Move to Cash in on $8.5M in Seized Bitcoin

U.S. attorneys in Utah prosecuting a multimillion-dollar opioid drug-ring are moving quickly to sell seized bitcoin that’s exploded in value to about $8.5 million since the alleged ringleader’s arrest a year ago.

The U.S. Attorney’s Office for Utah cites the digital currency’s volatility in court documents pressing for the sale. The bitcoin cache was worth less than $500,000 when Aaron Shamo was arrested on drug charges, but the value of the digital currency has skyrocketed since then.

Bitcoin was created as a digital alternative to the traditional banking system, and is prone to swings in value based on what people believe its worth.

For federal prosecutors in Utah, sales of seized assets like cars are routine, but bitcoin is new territory, spokeswoman Melodie Rydalch said Thursday.

Shamo is accused of selling pills containing the powerful opioid fentanyl on the dark web — an area of the internet often used for illegal activity — to thousands of people all over the U.S., at one point raking in $2.8 million in less than a year.

The 500,000-pill bust ranked among the largest of its kind in the country, and authorities also found $1 million of cash stuffed into trash bags.

Shamo has pleaded not guilty to a dozen charges.

The proceeds of the bitcoin sale will be held until the case is resolved, and then decisions will be made about where the money goes, Rydalch said. Seized asset sale proceeds usually goes to the agency that investigated, like the Drug Enforcement Administration.

Defense attorney Greg Skordas is not contesting the sale of his client’s bitcoins.

Although there’s no global consensus over the status of bitcoin — debate rages whether the virtual money is an asset or a currency — that hasn’t stopped officials in the U.S. and elsewhere from cashing in on the digital hauls seized from cybercriminals.

In 2014 the U.S. Marshals Service announced the auction of nearly 30,000 bitcoins seized from notorious dark web drug marketplace Silk Road. Other seizures have since netted the American government millions of dollars in a series of sales.

Other governments — from Australia to South Korea — have set up similar auctions over the years.

Associated Press writer Raphael Satter in London contributed to this report.

German Government Says It Backs ‘Open and Free Internet’

The German government says it backs an “open and free internet” following the U.S. decision to repeal net neutrality rules.

A spokeswoman for the Economy Ministry said Friday that Germany had “taken note” of the U.S. move but declined to comment directly on it.

However, spokeswoman Beate Baron said the German government supports rules introduced across the European Union last year forbidding discriminatory access to the internet.

Baron told reporters in Berlin that “an open and free internet is indispensable for the successful development of a digital society that everyone wants to take part in.”

The Republican-controlled U.S. Federal Communications Commission on Thursday repealed Obama-era rules requiring all web traffic to be treated equally.

Scientists Working on Writing Five-day Forecast for Solar Storms

Charged particles from the sun are responsible for the brilliant auroras at the earth’s poles. But there can be cases of too much of a good thing. When huge solar storms push massive waves of energized particles into Earth’s path, they can wreak havoc on our satellites and electric grid. That is why researchers are trying to figure out what causes solar storms. VOA’s Kevin Enochs reports.

Trump Touts Progress on Slashing Federal Regulations

U.S. President Donald Trump has touted progress on slashing federal regulations, which he says cost America trillions with no benefit. Speaking Thursday from the White House, the president said his administration had exceeded its goal of removing two federal regulations for every new one, by removing 22 for every new one. Opponents have criticized some of the deregulation, especially dismantling of the net neutrality rules that guarantee equal access to the internet. VOA’s Zlatica Hoke reports.

What Is Net Neutrality?

“Net neutrality” regulations, designed to prevent internet service providers like Verizon, AT&T, Comcast and Charter from favoring some sites and apps over others, have been repealed. On Thursday, the Federal Communications Commission voted to dismantle Obama-era rules that have been in place since 2015, but will forbid states to put anything similar in place.

Here’s a look at what the developments mean for consumers and companies.

What is net neutrality?

Net neutrality is the principle that internet providers treat all web traffic equally, and it’s pretty much how the internet has worked since its creation. But regulators, consumer advocates and internet companies were concerned about what broadband companies could do with their power as the pathway to the internet — blocking or slowing down apps that rival their own services, for example.

What did the governments do about it?

The FCC in 2015 approved rules, on a party-line vote, that made sure cable and phone companies don’t manipulate traffic. With them in place, a provider such as Comcast can’t charge Netflix for a faster path to its customers, or block it or slow it down.

The net neutrality rules gave the FCC power to go after companies for business practices that weren’t explicitly banned as well. For example, the Obama FCC said that “zero rating” practices by AT&T violated net neutrality. The telecom giant exempted its own video app from cellphone data caps, which would save some consumers money, and said video rivals could pay for the same treatment. Pai’s FCC spiked the effort to go after AT&T, even before it began rolling out a plan to undo the net neutrality rules entirely.

A federal appeals court upheld the rules in 2016 after broadband providers sued.

The telcos

Big telecom companies hated net neutrality’s stricter regulation and have fought them fiercely in court. They said the regulations could undermine investment in broadband and introduced uncertainty about what were acceptable business practices. There were concerns about potential price regulation, even though the FCC had said it won’t set prices for consumer internet service.

Silicon Valley

Internet companies such as Google have strongly backed net neutrality, but many tech firms were more muted in their activism this year. Netflix, which had been vocal in support of the rules in 2015, said in January that weaker net neutrality wouldn’t hurt it because it’s now too popular with users for broadband providers to interfere.

What happens next

With the rules repealed, net-neutrality advocates say it will be harder for the government to crack down on internet providers who act against consumer interests and will harm innovation in the long-run. Those who criticize the rules say the repeal is good for investment in broadband networks.

But advocates aren’t sitting still. Some groups plan lawsuits to challenge the FCC’s move, and Democrats — energized by public protests in support of net neutrality — think it might be a winning political issue for them in 2018 congressional elections.

FCC Scraps Net Neutrality Rules in US

There could soon be a major change in what Americans see on the internet after federal regulators voted Thursday to scrap traditional “net neutrality” rules. 

Thursday’s 3-2 vote by the Federal Communications Commission went along party lines, with Republican members voting to end the regulations and Democrats dissenting.

Individual states will also be barred from enacting their own rules governing the internet.

Net neutrality has been the norm since the internet was created more than 30 years ago. The FCC under former President Barack Obama formalized net neutrality rules in 2015.

The idea of net neutrality is for giant internet providers to treat all content equally. The Obama-era rules prevented them from giving preferential treatment to their own services and blocking and slowing down content from rivals.

Consumer groups and internet companies like net neutrality.

But FCC Chairman Ajit Pai, who was appointed by President Donald Trump, said the internet needs what he calls a “light touch” instead of what he believes is unnecessary government regulation.

WATCH: What is ‘net neutrality’?

“Prior to 2015, before these regulations were imposed, we had a free and open internet,” Pai told NBC ahead of the vote. “That is the future as well under a light touch, market-based approach. Consumers benefit, entrepreneurs benefit. Everybody in the internet economy is better off with a market-based approach.”

But Democratic FCC member Mignon Clyburn said the FCC was “handing the keys to the internet” to a “handful of multibillion-dollar corporations.”

British engineer Tim Berners-Lee, creator of the World Wide Web, said this week that getting rid of net neutrality rules meant internet service providers “will have the power to decide which websites you can access and at what speed each will load. In other words, they’ll be able to decide which companies succeed online, which voices are heard — and which are silenced.”

Officials in several states, including New York and Washington, said they would challenge the new rules in court.

Ken Bredemeier contributed to this report.