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Much to the disappointment of the digital advertising establishment, Mozilla is going ahead with plans to automatically block third-party cookie tracking in its Firefox browser. Mozilla first announced its Do Not Track browser in February, only to back off in May saying it needed to do more testing. But that didn't stop a growing chorus of loud protests from the advertising community, which argued that the browser would choke off the ad-supported Internet. The Interactive Advertising Bureau's general counsel Mike Zaneis called Mozilla's browser nothing less than a "nuclear first strike" against the ad community. No date has been set for when Firefox will turn on the feature, but advertisers, which have been regularly meeting with Mozilla and were hopeful for a compromise, are already lashing back at Mozilla.

"It's troubling," said Lou Mastria, the managing director for the Digital Advertising Alliance, which manages an online self-regulatory program called Ad Choices that provides consumers with the choice to opt-out of targeted ads. "They're putting this under the cloak of privacy, but it's disrupting a business model," Mastria said. Advertisers are worried that Mozilla's plans could be the death knell to thousands of small Web publishers that depend on third-party targeted ads to stay in business. Nearly 1,000 signed a petition urging Mozilla to change its plans.  "One publisher said that 20 percent of their business would go away. That's huge," said Mastria. "Mozilla is really picking business model winners and losers."

Not all cookies will be blocked under Mozilla's latest plans for its proposed browser; there will be exceptions. Through a partnership with the Center for Internet and Society at Stanford Law School, the two are launching a Cookie Clearinghouse. Overseen by a six-person panel, it will determine a list of undesirable cookies and then block those. "The Cookie Clearinghouse will create, maintain and publish objective information," Aleecia McDonald, director of privacy at CIS, said in a statement. "Web browser companies will be able to choose to adopt the lists we publish to provide new privacy options to their users." But others say the approach is far from objective. "What these organizations and the privacy groups that back them are really saying is 'let us choose for you because we know best,' " said Daniel Castro, a senior analyst with the Information Technology and Innovation Foundation. "The proponents of this model have claimed they are empowering users. ... This is basically Sarah Palin's 'Death Panels' but for the Internet."

Four months from now, at the same time that the National Security Agency finally abandons the massive domestic telephone dragnet exposed by whistleblower Edward Snowden, it will also stop perusing the vast archive of data collected by the program. The NSA announced on Monday that it will expunge all the telephone metadata it previously swept up, citing Section 215 of the U.S.A Patriot Act. The program was ruled illegal by a federal appeals court in May. In June, Congress voted to end the program, but gave the NSA until the end of November to phase it out. The historical metadata —  records of American phone calls showing who called who, when, and for how long — will be put out of the reach of analysts on November 29, although technical personnel will have access for three more months. The program started 14 years ago, and operated under rules requiring data be retained for five years, and then destroyed.

The only possible hold-up, ironically, would be if any of the civil lawsuits prompted by the program prohibit the destruction of the data. “The telephony metadata” will be “preserved solely because of preservation obligations in pending civil litigation,” the Office of the Director of National Intelligence announced. “As soon as possible, NSA will destroy the Section 215 bulk telephony metadata upon expiration of its litigation preservation obligations.” ACLU staff attorney Alex Abdo told The Intercept his organization is “pleased that the NSA intends to purge the call records it has collected illegally.” But, he added: “Even with today’s pledge, the devil may be in the details.”

The Intercept published an expose on the NSA's XKeyscore program. Along with information on the breadth and scale of the NSA's metadata collection, The Intercept revealed how the NSA relies on unencrypted cookie data to identify users. As The Intercept says: "The NSA’s ability to piggyback off of private companies’ tracking of their own users is a vital instrument that allows the agency to trace the data it collects to individual users. It makes no difference if visitors switch to public Wi-Fi networks or connect to VPNs to change their IP addresses: the tracking cookie will follow them around as long as they are using the same web browser and fail to clear their cookies." The NSA slides released by The Intercept give detailed guides to understanding the data transmitted by these cookies, as well as how to find unique machine identifiers that analysts can use to differentiate between multiple machines using the same IP address. We've written before about how spy agencies piggyback on social media account data to find Internet users' names or other identifying info, and these slides drive home the point that HTTP cookies leave users vulnerable to government surveillance, since any intermediary (or spy agency) can read the sensitive data they contain.

Worse yet, most of the time these identifying cookies come from third-party sources on webpages, and users have no meaningful way to opt out of receiving them (short of blocking all third party cookies) since advertisers (the main server of these types of cookies) refuse to honor the Do Not Track header.  Browser makers could help address this sort of non-consensual tracking by both advertisers and the NSA with some simple technical changes—changes that have been shown to reduce the number of third party cookies received by 67%. So far, though, they've been unwilling to build privacy protecting features in by default. Until they do, the best way for users to protect themselves is by installing a privacy protecting app like Privacy Badger, which is designed to block these types of uniquely identifying tracking cookies, or HTTPS Everywhere to block the transmission of HTTP cookies.

The National Security Agency and its British counterpart, Government Communications Headquarters, have worked to subvert anti-virus and other security software in order to track users and infiltrate networks, according to documents from NSA whistleblower Edward Snowden. The spy agencies have reverse engineered software products, sometimes under questionable legal authority, and monitored web and email traffic in order to discreetly thwart anti-virus software and obtain intelligence from companies about security software and users of such software. One security software maker repeatedly singled out in the documents is Moscow-based Kaspersky Lab, which has a holding registered in the U.K., claims more than 270,000 corporate clients, and says it protects more than 400 million people with its products. British spies aimed to thwart Kaspersky software in part through a technique known as software reverse engineering, or SRE, according to a top-secret warrant renewal request. The NSA has also studied Kaspersky Lab’s software for weaknesses, obtaining sensitive customer information by monitoring communications between the software and Kaspersky servers, according to a draft top-secret report. The U.S. spy agency also appears to have examined emails inbound to security software companies flagging new viruses and vulnerabilities.

The efforts to compromise security software were of particular importance because such software is relied upon to defend against an array of digital threats and is typically more trusted by the operating system than other applications, running with elevated privileges that allow more vectors for surveillance and attack. Spy agencies seem to be engaged in a digital game of cat and mouse with anti-virus software companies; the U.S. and U.K. have aggressively probed for weaknesses in software deployed by the companies, which have themselves exposed sophisticated state-sponsored malware.

The requested warrant, provided under Section 5 of the U.K.’s 1994 Intelligence Services Act, must be renewed by a government minister every six months. The document published today is a renewal request for a warrant valid from July 7, 2008 until January 7, 2009. The request seeks authorization for GCHQ activities that “involve modifying commercially available software to enable interception, decryption and other related tasks, or ‘reverse engineering’ software.”

European officials are demanding answers and investigations into a joint U.S. and U.K. hack of the world’s largest manufacturer of mobile SIM cards, following a report published by The Intercept Thursday. The report, based on leaked documents provided by NSA whistleblower Edward Snowden, revealed the U.S. spy agency and its British counterpart Government Communications Headquarters, GCHQ, hacked the Franco-Dutch digital security giant Gemalto in a sophisticated heist of encrypted cell-phone keys. The European Parliament’s chief negotiator on the European Union’s data protection law, Jan Philipp Albrecht, said the hack was “obviously based on some illegal activities.” “Member states like the U.K. are frankly not respecting the [law of the] Netherlands and partner states,” Albrecht told the Wall Street Journal. Sophie in ’t Veld, an EU parliamentarian with D66, the Netherlands’ largest opposition party, added, “Year after year we have heard about cowboy practices of secret services, but governments did nothing and kept quiet […] In fact, those very same governments push for ever-more surveillance capabilities, while it remains unclear how effective these practices are.”

“If the average IT whizzkid breaks into a company system, he’ll end up behind bars,” In ’t Veld added in a tweet Friday. The EU itself is barred from undertaking such investigations, leaving individual countries responsible for looking into cases that impact their national security matters. “We even get letters from the U.K. government saying we shouldn’t deal with these issues because it’s their own issue of national security,” Albrecht said. Still, lawmakers in the Netherlands are seeking investigations. Gerard Schouw, a Dutch member of parliament, also with the D66 party, has called on Ronald Plasterk, the Dutch minister of the interior, to answer questions before parliament. On Tuesday, the Dutch parliament will debate Schouw’s request. Additionally, European legal experts tell The Intercept, public prosecutors in EU member states that are both party to the Cybercrime Convention, which prohibits computer hacking, and home to Gemalto subsidiaries could pursue investigations into the breach of the company’s systems.

According to secret documents from 2010 and 2011, a joint NSA-GCHQ unit penetrated Gemalto’s internal networks and infiltrated the private communications of its employees in order to steal encryption keys, embedded on tiny SIM cards, which are used to protect the privacy of cellphone communications across the world. Gemalto produces some 2 billion SIM cards a year. The company’s clients include AT&T, T-Mobile, Verizon, Sprint and some 450 wireless network providers. “[We] believe we have their entire network,” GCHQ boasted in a leaked slide, referring to the Gemalto heist.

(Reuters) - Russia's parliament passed a law on Friday to force Internet sites that store the personal data of Russian citizens to do so inside the country, a move the Kremlin says is for data protection but which critics see an attack on social networks. The law will mean that from 2016, all Internet companies will have to move Russian data onto servers based in Russia or face being blocked from the web. That would likely affect U.S.-based social networks such as Facebook, analysts say.

Putin, an ex-KGB officer who has called the Internet a "CIA project", denied he was restricting web freedoms, saying his main concern was protecting children from indecent content.

Linux never had the apps

Charles King, an IT analyst who follows enterprise trends, says the big change is in IT. At one time, executives in charge of computing services were mostly concerned with operating systems and applications for massive throng of traditional business users. Those users have now flocked to mobile computing devices, but they still have a Windows PC sitting on their desk.

Today, Microsoft's lock (on the desktop, anyway) remains secure, even in the face of Apple's surge," King says. "Ironically enough, though, the open source model remains alive and well but mostly in the development of new standards and development platforms."

When the Senate Intelligence Committee passed the Cybersecurity Information Sharing Act by a vote of 14 to 1, committee chairman Senator Richard Burr argued that it successfully balanced security and privacy. Fifteen new amendments to the bill, he said, were designed to protect internet users’ personal information while enabling new ways for companies and federal agencies to coordinate responses to cyberattacks. But critics within the security and privacy communities still have two fundamental problems with the legislation: First, they say, the proposed cybersecurity act won’t actually boost security. And second, the “information sharing” it describes sounds more than ever like a backchannel for surveillance.

On Tuesday the bill’s authors released the full, updated text of the CISA legislation passed last week, and critics say the changes have done little to assuage their fears about wanton sharing of Americans’ private data. In fact, legal analysts say the changes actually widen the backdoor leading from private firms to intelligence agencies. “It’s a complete failure to strengthen the privacy protections of the bill,” says Robyn Greene, a policy lawyer for the Open Technology Institute, which joined a coalition of dozens of non-profits and cybersecurity experts criticizing the bill in an open letter earlier this month. “None of the [privacy-related] points we raised in our coalition letter to the committee was effectively addressed.” The central concern of that letter was how the same data sharing meant to bolster cybersecurity for companies and the government opens massive surveillance loopholes. The bill, as worded, lets a private company share with the Department of Homeland Security any information construed as a cybersecurity threat “notwithstanding any other provision of law.” That means CISA trumps privacy laws like the Electronic Communication Privacy Act of 1986 and the Privacy Act of 1974, which restrict eavesdropping and sharing of users’ communications. And once the DHS obtains the information, it would automatically be shared with the NSA, the Department of Defense (including Cyber Command), and the Office of the Director of National Intelligence.

In a statement posted to his website yesterday, Senator Burr wrote that “Information sharing is purely voluntary and companies can only share cyber-threat information and the government may only use shared data for cybersecurity purposes.” But in fact, the bill’s data sharing isn’t limited to cybersecurity “threat indicators”—warnings of incoming hacker attacks, which is the central data CISA is meant to disseminate among companies and three-letter agencies. OTI’s Greene says it also gives companies a mandate to share with the government any data related to imminent terrorist attacks, weapons of mass destruction, or even other information related to violent crimes like robbery and carjacking. 

David Mao, the Librarian of Congress, has issued new rules pertaining to exemptions to the Digital Millennium Copyright Act (DMCA) after a 3 year battle that was expedited in the wake of the Volkswagen scandal.

Opposition to this new decision is coming from the Environmental Protection Agency (EPA) and the auto industry because the DMCA prohibits “circumventing encryption or access controls to copy or modify copyrighted works.” For example, GM “claimed the exemption ‘could introduce safety and security issues as well as facilitate violation of various laws designed specifically to regulate the modern car, including emissions, fuel economy, and vehicle safety regulations’.” The exemption in question is in Section 1201 which forbids the unlocking of software access controls which has given the auto industry the unique ability to “threaten legal action against anyone who needs to get around those restrictions, no matter how legitimate the reason.” Journalist Nick Statt points out that this provision “made it illegal in the past to unlock your smartphone from its carrier or even to share your HBO Go password with a friend. It’s designed to let corporations protect copyrighted material, but it allows them to crackdown on circumventions even when they’re not infringing on those copyrights or trying to access or steal proprietary information.”

Kit Walsh, staff attorney for the Electronic Frontier Foundation (EFF), explained that the “‘access control’ rule is supposed to protect against unlawful copying. But as we’ve seen in the recent Volkswagen scandal—where VW was caught manipulating smog tests—it can be used instead to hide wrongdoing hidden in computer code.” Walsh continued: “We are pleased that analysts will now be able to examine the software in the cars we drive without facing legal threats from car manufacturers, and that the Librarian has acted to promote competition in the vehicle aftermarket and protect the long tradition of vehicle owners tinkering with their cars and tractors. The year-long delay in implementing the exemptions, though, is disappointing and unjustified. The VW smog tests and a long run of security vulnerabilities have shown researchers and drivers need the exemptions now.” As part of the new changes, gamers can “modify an old video game so it doesn’t perform a check with an authentication server that has since been shut down” and after the publisher cuts of support for the video game.

Microsoft's new plan to keep the US government's hands off its customers' data: Germany will be a safe harbor in the digital privacy storm. Microsoft on Wednesday announced that beginning in the second half of 2016, it will give foreign customers the option of keeping data in new European facilities that, at least in theory, should shield customers from US government surveillance. It will cost more, according to the Financial Times, though pricing details weren't forthcoming. Microsoft Cloud - including Azure, Office 365 and Dynamics CRM Online - will be hosted from new datacenters in the German regions of Magdeburg and Frankfurt am Main. Access to data will be controlled by what the company called a German data trustee: T-Systems, a subsidiary of the independent German company Deutsche Telekom. Without the permission of Deutsche Telekom or customers, Microsoft won't be able to get its hands on the data. If it does get permission, the trustee will still control and oversee Microsoft's access.

Microsoft CEO Satya Nadella dropped the word "trust" into the company's statement: Microsoft’s mission is to empower every person and every individual on the planet to achieve more. Our new datacenter regions in Germany, operated in partnership with Deutsche Telekom, will not only spur local innovation and growth, but offer customers choice and trust in how their data is handled and where it is stored.

On Tuesday, at the Future Decoded conference in London, Nadella also announced that Microsoft would, for the first time, be opening two UK datacenters next year. The company's also expanding its existing operations in Ireland and the Netherlands. Officially, none of this has anything to do with the long-drawn-out squabbling over the transatlantic Safe Harbor agreement, which the EU's highest court struck down last month, calling the agreement "invalid" because it didn't protect data from US surveillance. No, Nadella said, the new datacenters and expansions are all about giving local businesses and organizations "transformative technology they need to seize new global growth." But as Diginomica reports, Microsoft EVP of Cloud and Enterprise Scott Guthrie followed up his boss’s comments by saying that yes, the driver behind the new datacenters is to let customers keep data close: We can guarantee customers that their data will always stay in the UK. Being able to very concretely tell that story is something that I think will accelerate cloud adoption further in the UK.

Earlier this March, cyber-security firm Kaspersky Labs released information on a newly discovered, highly advanced piece of malware dubbed Slingshot. The malware targeted Latvian-made Internet routers popular in the Middle East, Africa, and Southeast Asia. Kaspersky’s reports reveal that the malware had been active since at least 2012, and speculates that it was government-made, owing to its sophistication and its use of novel techniques rarely seen elsewhere. Those investigating the matter further have drawn the conclusion that Slingshot was developed by the U.S. government, with some reports quoting former officials as connecting it to the Pentagon’s JSOC special forces. For those following the cyber security and malware sphere, this is a huge revelation, putting the U.S. government in the hot seat for deploying cyber attacks that harm a much greater range of innocent users beyond their intended targets. Kaspersky’s own findings note that the code was written in English, using a driver flaw to allow the implanting of various types of spyware. Among those mentioned by Moscow-based Kaspersky was an implant named “GOLLUM,” which notably was mentioned in one of the leaked Edward Snowden documents. Further findings suggest that Slingshot had common code with only two other known pieces of software, both malwares, which were attributed to the NSA and CIA, respectively, by analysts. Though various U.S. agencies are all denying comment, things are clearly pointing uncomfortably in their direction.

Criminals in 2017 managed to get an advanced backdoor preinstalled on Android devices before they left the factories of manufacturers, Google researchers confirmed on Thursday. Triada first came to light in 2016 in articles published by Kaspersky here and here, the first of which said the malware was "one of the most advanced mobile Trojans" the security firm's analysts had ever encountered. Once installed, Triada's chief purpose was to install apps that could be used to send spam and display ads. It employed an impressive kit of tools, including rooting exploits that bypassed security protections built into Android and the means to modify the Android OS' all-powerful Zygote process. That meant the malware could directly tamper with every installed app. Triada also connected to no fewer than 17 command and control servers. In July 2017, security firm Dr. Web reported that its researchers had found Triada built into the firmware of several Android devices, including the Leagoo M5 Plus, Leagoo M8, Nomu S10, and Nomu S20. The attackers used the backdoor to surreptitiously download and install modules. Because the backdoor was embedded into one of the OS libraries and located in the system section, it couldn't be deleted using standard methods, the report said. On Thursday, Google confirmed the Dr. Web report, although it stopped short of naming the manufacturers. Thursday's report also said the supply chain attack was pulled off by one or more partners the manufacturers used in preparing the final firmware image used in the affected devices.

These and other classified documents provided by former NSA contractor Edward Snowden reveal that the NSA has developed technology not just to record and transcribe private conversations but to automatically identify the speakers. Americans most regularly encounter this technology, known as speaker recognition, or speaker identification, when they wake up Amazon’s Alexa or call their bank. But a decade before voice commands like “Hello Siri” and “OK Google” became common household phrases, the NSA was using speaker recognition to monitor terrorists, politicians, drug lords, spies, and even agency employees. The technology works by analyzing the physical and behavioral features that make each person’s voice distinctive, such as the pitch, shape of the mouth, and length of the larynx. An algorithm then creates a dynamic computer model of the individual’s vocal characteristics. This is what’s popularly referred to as a “voiceprint.” The entire process — capturing a few spoken words, turning those words into a voiceprint, and comparing that representation to other “voiceprints” already stored in the database — can happen almost instantaneously. Although the NSA is known to rely on finger and face prints to identify targets, voiceprints, according to a 2008 agency document, are “where NSA reigns supreme.” It’s not difficult to see why. By intercepting and recording millions of overseas telephone conversations, video teleconferences, and internet calls — in addition to capturing, with or without warrants, the domestic conversations of Americans — the NSA has built an unrivaled collection of distinct voices. Documents from the Snowden archive reveal that analysts fed some of these recordings to speaker recognition algorithms that could connect individuals to their past utterances, even when they had used unknown phone numbers, secret code words, or multiple languages.

The classified documents, dating from 2004 to 2012, show the NSA refining increasingly sophisticated iterations of its speaker recognition technology. They confirm the uses of speaker recognition in counterterrorism operations and overseas drug busts. And they suggest that the agency planned to deploy the technology not just to retroactively identify spies like Pelton but to prevent whistleblowers like Snowden.

Perhaps it goes without saying that 5G promises to be highly profitable for wireless and tech companies. Some industry analysts have predicted that 5G could generate up to $12.3 trillion in goods and services by 2035, and add 22 million jobs in the U.S. alone. This helps explain why the carriers are so eager for us to share their vision for a better tomorrow — a world in which bandwidth, speed, and growth are virtues in and of themselves. Those “key performance indicators” are then sold to the consumer in the form of efficiency, inclusion, reliability, and convenience. And while these 5G speculations suggest a world of possibility and profit, they elide lots of potential risks and alternative futures. They also, unsurprisingly, fail to ask about the wisdom of entrusting the telecom industry (which has a long history of unscrupulous, monopolistic business practices) and the tech industry (newly under fire for similar reasons) to build what is purportedly the critical infrastructure for a planned global transformation.

Huawei Technologies, the world’s largest telecommunications equipment supplier, is set to launch its HongMeng operating system (OS) as a potential alternative to Google's Android OS, on August 9 at Huawei's Developer Conference, industry insiders told the Global Times Wednesday. According to media reports, the user experience (UX) design features a brand new ringtone and notification panel, a cleaner interface for the camera, more animation and faster speed. Users can also add widgets and personalize the locked screen. Citing industry experts (most likely of Chinese origin), the Global Times reported that "it is possible for Huawei to build a sustainable smartphone ecosystem on the HongMeng OS and reshape the current market dominated by Android and Apple's iOS", although the new system is primarily designed for industrial automation and applications in the Internet of Things (IoT). "Given the design features of the HongMeng OS, it can be a game changer in IoT-related areas, such as driverless cars and smart homes," Fu Liang, a Beijing-based independent industry analyst, told the Global Times. According to Huawei's website, the HongMeng OS is built with a processing latency of less than 5 milliseconds, which is especially required in circumstances involving IoT applications that often need to transfer large amount of data simultaneously.

The escalating US-China trade conflict has raised concerns about the measures each side could use in their fight, including Beijing’s option to restrict exports of rare earth metals. The economic measure is dubbed as one of Beijing’s nuclear options in its battle with Washington due to the fact that China is the top producer of rare earth metals and holds the largest reserves.

The United States relies on China, the leading global supplier, for about 80 percent of its rare earths.

China controls around 85-95 percent of all the rare earths’ production and supply. Last year, the country produced about 78 percent of the global volume of rare earths.

Wedbush analyst Daniel Ives called the decline of iPhone sales in China a "doomsday type" like decline. Ives said the fall was an "unprecedented" drop and was "not surprising given the essential lockdown that most of China saw" in February. Wedbush expects Chinese demand to come back online in the second half of the year. * * * We've explained that economic paralysis in China started in early February and continues to this day. Alternative data first showed us the incoming economic crash developing in early February, only to be confirmed weeks later. Twin shocks plague the Chinese economy, which is a supply shock with manufacturers operating at less than full capacity, along with a demand shock, where consumers have been confined to their homes in forced quarantine, unable to spend.  So, on Monday morning, when new data from the China Academy of Information and Communications Technology (CAICT) reveals Apple smartphone sales in China were halved in February, this really shouldn't surprise ZeroHedge readers, considering they've been well informed about what would happen next. 

And it wasn't just Apple with plunging activity, all mobile phone brands operating in China saw shipments halved over the month.  CAICT said 6.34 million devices were shipped last month, down 54.7% from 14 million in the same month the previous year. This was the lowest level of February shipments since 2012, when the CAICT data first became available.  Android brands, including Huawei and Xiaomi, accounted for most of the drop, collectively saw shipments at 5.85 million units for the month, compared to 12.72 million units last year. Apple shipped 494,000 last month, down from 1.27 million in February 2019.