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The digital privacy world was rocked late Thursday evening when The New York Times reported on Securus, a prison telecom company that has a service enabling law enforcement officers to locate most American cell phones within seconds. The company does this via a basic Web interface leveraging a location API—creating a way to effectively access a massive real-time database of cell-site records. Securus’ location ability relies on other data brokers and location aggregators that obtain that information directly from mobile providers, usually for the purposes of providing some commercial service like an opt-in product discount triggered by being near a certain location. ("You’re near a Carl’s Jr.! Stop in now for a free order of fries with purchase!") The Texas-based Securus reportedly gets its data from 3CInteractive, which in turn buys data from LocationSmart. Ars reached 3CInteractive's general counsel, Scott Elk, who referred us to a spokesperson. The spokesperson did not immediately respond to our query. But currently, anyone can get a sense of the power of a location API by trying out a demo from LocationSmart itself. Currently, the Supreme Court is set to rule on the case of Carpenter v. United States, which asks whether police can obtain more than 120 days' worth of cell-site location information of a criminal suspect without a warrant. In that case, as is common in many investigations, law enforcement presented a cell provider with a court order to obtain such historical data. But the ability to obtain real-time location data that Securus reportedly offers skips that entire process, and it's potentially far more invasive. Securus’ location service as used by law enforcement is also currently being scrutinized. The service is at the heart of an ongoing federal prosecution of a former Missouri sheriff’s deputy who allegedly used it at least 11 times against a judge and other law enforcement officers. On Friday, Sen. Ron Wyden (D-Ore.) publicly released his formal letters to AT&T and also to the Federal Communications Commission demanding detailed answers regarding these Securus revelations.

As it continues to explore new business models that may work in a world focused on privacy rather than broadly sharing data online, Facebook on Tuesday revealed plans for its own global digital currency, Libra, which aims to allow users to make purchases or send money with close to zero transaction fees. Facebook said it hopes Libra will make it easier for the estimated 1.7 billion unbanked adults worldwide to access banking services and transfer money electronically. “Just as people can use their phones to message friends anywhere in the world today, with Libra, the same can be done with money — instantly, securely and at a low cost,” Facebook said in a Libra white paper.

Users will be able to make transactions with Libra by 2020, Facebook says, both through a standalone app called Calibra as well as with Facebook’s own family of apps. Unlike bitcoin and some similar offerings, the price of Libra is tied to low-risk assets, which should prevent the speculative behavior and wild price swings plaguing other digital currencies. The currency will be overseen by the Libra Association, a Switzerland-based collective of more than a dozen companies, including Visa, Uber and Mastercard, each of whom have invested at least $10 million in the technology. Users of Libra will pay $1 to use Libra which will sit in a bank account and earn interest which will pay the Libra Association.

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.

The United States, the United Kingdom and Australia have called on Facebook Inc to not go ahead with end-to-end encryption across its messaging services unless law enforcement officials have backdoor access, saying encryption hindered the fight against child abuse and terrorism.

The United States and United Kingdom also signed a special data agreement that would fast track requests from law enforcement to technology companies for information about the communications of terrorists and child predators. Law enforcement could get information in weeks or even days instead of the current wait of six months to two years. The latest tug-of-war between governments and tech companies over user data could also impact Apple Inc, Alphabet Inc’s Google and Microsoft Corp, as well as smaller encrypted chat apps like Signal.

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.

The UK government is secretly planning to force technology companies to build backdoors into their products, to enable intelligence agencies to read people’s private messages. A draft document leaked by the Open Rights Group details extreme new surveillance proposals, which would enable government agencies to spy on one in 10,000 citizens – around 6,500 people – at any one time.  The document, which follows the controversial Investigatory Powers Act, reveals government plans to force mobile operators and internet service providers to provide real-time communications of customers to the government “in an intelligible form”, and within one working day.

This would effectively ban encryption, an important security measure used by a wide range of companies, including WhatsApp and major banks, to keep people’s private data private and to protect them from hackers and cyber criminals. 

Apparent National Security Agency (NSA) malware has been used in a global cyber-attack, including on British hospitals, in what whistleblower Edward Snowden described as the repercussion of the NSA’s reckless decision to build the tools. “Despite warnings, @NSAGov built dangerous attack tools that could target Western software. Today we see the cost,” Snowden tweeted Friday. At least two hospitals in London were forced to shut down and stop admitting patients after being attacked by the malware, which operates by locking out the user, encrypting data, and demanding a ransom to release it. The attacks hit dozens of other hospitals, ambulance operators, and doctors’ offices as well.

The Blackpool Gazette in the northwest reported that medical staff had resorted to using pen and paper when phone and computer systems shut down. Elsewhere, journalist Ollie Cowan tweeted a photo of ambulances “backed up” at Southport Hospital as the staff attempted to cope with the crisis.

Other disruptions were reported in at least 74 countries, including Russia, Spain, Turkey, and Japan, and the number is “growing fast,” according to Kaspersky Lab chief Costin Raiu. Security architect Kevin Beau said it was spreading into the U.S. as well. The malware, which Microsoft tested briefly earlier this year, was leaked by a group calling itself the Shadow Brokers, which has been releasing NSA hacking tools online since last year, the New York Times reports. Times journalists Dan Bilefsky and Nicole Perlroth wrote: Microsoft rolled out a patch for the vulnerability in March, but hackers apparently took advantage of the fact that vulnerable targets—particularly hospitals—had yet to update their systems. The malware was circulated by email. Targets were sent an encrypted, compressed file that, once loaded, allowed the ransomware to infiltrate its targets. Reuters reported that the National Health Service (NHS), England’s public health system, was warned about possible hacking earlier in the day, but that by then it was already too late.

Today we are releasing the implementation guide for EFF’s Do Not Track (DNT) policy. For years users have been able to set a Do Not Track signal in their browser, but there has been little guidance for websites as to how to honor that request. EFF’s DNT policy sets out a meaningful response for servers to follow, and this guide provides details about how to apply it in practice. At its core, DNT protects user privacy by excluding the use of unique identifiers for cross-site tracking, and by limiting the retention period of log data to ten days. This short retention period gives sites the time they need for debugging and security purposes, and to generate aggregate statistical data. From this baseline, the policy then allows exceptions when the user's interactions with the site—e.g., to post comments, make a purchase, or click on an ad—necessitates collecting more information. The site is then free to retain any data necessary to complete the transaction. We believe this approach balances users’ privacy expectations with the ability of websites to deliver the functionality users want. Websites often integrate third-party content and rely on third-party services (like content delivery networks or analytics), and this creates the potential for user data to be leaked despite the best intentions of the site operator. The guide identifies potential pitfalls and catalogs providers of compliant services. It is common, for example, to embed media from platforms like You Tube, Sound Cloud, and Twitter, all of which track users whenever their widgets are loaded. Fortunately, Embedly, which offers control over the appearance of embeds, also supports DNT via its API, displaying a poster instead and loading the widget only if the user clicks on it knowingly.

Knowledge makes the difference between willing tracking and non-consensual tracking. Users should be able to choose whether they want to give up their privacy in exchange for using a site or a  particular feature. This means sites need to be transparent about their practices. A great example of this is our biggest adopter, Medium, which does not track DNT users who browse the site and gives clear information about tracking to users when they choose to log in. This is their previous log-in panel, the DNT language is currently being added to their new interface.

One week after we reported that Facebook's Libra stablecoin project, Libra, was imploding, as online payment giant PayPal quite the Libra network, we can now set the time of death to today - that's when first eBay, then Stripe and finally Mastercard all abandoned Mark Zuckerberg's pet "cryptocurrency" (which was anything but) project. As the FT reports, Ebay and Stripe became the second and third major companies in a week to drop out of Facebook’s planned cryptocurrency, following sustained political pressure and just days before the project’s backers are due to meet for their first board meeting, which may soon be empty.

NSO Group, an Israeli vendor of “lawful” hacking tools designed to infect a target’s phone with spyware, is regarded by many as a bad actor. The group claims to be shocked when its products are misused, as they have been in Mexico, Saudi Arabia and the United Arab Emirates. One incident might be excusable, but the group’s continued enabling of misbehavior has resulted in well-earned enmity. Recently, Facebook struck back. NSO Group deployed a weaponized exploit for Facebook’s WhatsApp messenger, integrated it into its Pegasus malcode system, and offered it to its customers (a mix of legitimate government agencies and nefarious government actors) interested in hacking WhatsApp users beginning in April. This was a particularly powerful exploit because it required no user interaction and the only sign of the exploit a user might discover would be a series of “missed calls” received on the user’s phone. Facebook patched the vulnerability on May 13, blocking the NSO campaign. Facebook wasn’t satisfied with simply closing the vulnerability. In cooperation with CitizenLab, Facebook identified more than 100 incidents in which NSO Group’s WhatsApp exploit appeared to target human rights activists and journalists. In total, Facebook and CitizenLab identified 1,400 targets (which apparently also included government officials in U.S. allied governments). They then filed a federal lawsuit against NSO Group, closed NSO Group member accounts, and, most damaging of all to NSO’s customers, sent a notice to all identified victims alerting them of the attack. This meant that all targets, both dissidents and drug lords alike, were notified of this surveillance. The lawsuit will be a case to watch. Facebook has already revealed a large amount of detail concerning NSO Group’s internal workings, including the hands-on nature of its business model: NSO Group actively assists countries in hacking targets. For example, we now know that while an NSO Group employee may not press the “Enter” key for a target, NSO employees do act to advise and consult on targeting; and NSO Group is largely responsible for running the infrastructure used to exploit targets and manage implants. Expect more revelations like this as the case proceeds.

California’s attorney general has gone to court to force Facebook to hand over documents as part of an investigation into the company. Xavier Becerra filed a “petition to enforce investigative subpoena” with the Superior Court of California in San Francisco on Wednesday morning, arguing that Facebook’s response to his subpoenas has been “patently inadequate.” Citing a “lack of cooperation” not just with his office but also the Federal Trade Commission (FTC), Xavier Becerra points out [PDF] that it took Facebook a year to respond to his initial inquiry to produce documents relating to the Cambridge Analytica scandal, where Facebook allowed a third party to access vast amounts of personal information through its systems.

Not only that but Facebook flat out refused to “search communications involving senior executives,” meaning that it refused to search for relevant information in the emails and other communications of CEO Mark Zuckerberg and COO Sheryl Sandberg, among others. “Facebook is not just continuing to drag its feet, it is failing to comply with lawfully issued subpoenas and interrogatories,” the filing states.

The filing comes the same day that 7,000 pages of internal Facebook files were published online. Those documents were obtained and leaked amid a lawsuit between Facebook and a third-party app developer and were labelled as “highly confidential” by the antisocial network. The main upshot of those files is that they show Facebook used the data it gathered on millions of its users as a business weapon: it provided people's profile information to companies that, for instance, agreed to spend hundreds of thousands of dollars on adverts within Facebook, and it cut off developers that posed a competitive threat to its ever-growing stable of companies and services (or developers that wouldn't pay up, or were just too sketchy for the internet giant.) This confirms earlier reporting. CEO Zuckerberg also continues to avoid visiting London, or anywhere in the UK, out of fear he will be arrested for repeatedly failing to comply with a request by Parliament to answer questions about Facebook’s actions, as revealed in the tranche of documents.

Six4Three recently published a playbook for the FTC to get to the bottom of Facebook’s secretive deals selling user data without privacy controls. In light of The New York Times article reporting multiple criminal investigations into Facebook surrounding these secretive deals, we’re publishing the playbook for criminal investigators.Perhaps the most important recognition at the outset is that the secretive deals that have been reported, whether those with a handful of device manufacturers or with 150 large technology companies, are just the tip of the iceberg. Those secretive deals handing over user data in exchange for gobs of cash were merely part and parcel of a much broader illegal scheme that begins with Facebook’s transition to mobile in 2012 and continues to this very day. We believe this illegal scheme amounts to a clear RICO violation. The United Kingdom Parliament agrees. Here’s how criminal investigators can overcome Facebook’s incredibly effective concealment campaign and bring a viable RICO case.Facebook’s pattern of racketeering activity is a play in three acts from at least 2012 to present. The first act is all about the desperation resulting from the collapse of Facebook’s desktop advertising business right around its IPO and the various securities violations that resulted. The second act is about covering up those securities violations by illegally building its mobile advertising business via extortion and wire fraud in order to close the gap in Facebook’s revenue projections before the world took notice, which likely resulted in additional securities violations. The third act is about covering up the extortion and wire fraud by lying to government officials investigating Facebook while continuing to effectuate the scheme. We are still in the third act.For almost a decade now Facebook has been covering up one illegal act with another in order to hide how it managed to ramp up its mobile advertising business faster than any other business in the history of capitalism. The abuses of Facebook’s data, from Russian interference in the 2016 election to Cambridge Analytica and Brexit, all stem in substantial part from the decisions Facebook knowingly, willfully and maliciously made to facilitate this criminal conspiracy. Put simply, Facebook’s transition to mobile destabilized the world.

Facebook Inc on Wednesday pledged to invest at least $1bn in the news industry over the next three years, days after a high-profile standoff with the Australian government over paying news outlets for content. The social network’s commitment to the news industry follows Google’s $1bn investment last year, as technology giants come under scrutiny over their business models as well as the proliferation of misinformation on their platforms.

Facebook on Tuesday restored Australian news pages, ending an unprecedented weeklong blackout after the company wrung concessions from the government over a proposed law that will require tech giants to pay traditional media companies for their content. The brief blackout shocked the global news industry, which has already seen its business model upended by the tech giants.

Facebook said on Wednesday that it has already invested $600m in the news industry since 2018. The social media company added it was in active negotiations with news publishers in Germany and France for a deal to pay for content for its news product, where users can find headlines and stories next to a personalised news feed.

The European Union unveiled landmark legislation on Tuesday that lays out strict rules for tech giants to do business in the bloc. The draft legislation, dubbed the Digital Services Act (DSA) and the Digital Markets Act (DMA), outlines specific regulations that seek to limit the power of global internet firms on the European market. Companies including Google, Apple, Amazon, Facebook and others could face hefty penalties for violating the rules. EU antitrust czar Margrethe Vestager and EU digital chief Thierry Breton presented the draft on Tuesday, after the content of the new rules was leaked to the media on Monday.

What's in the draft laws? The dual legislation sets out a list of do's, don'ts and penalties for internet giants: Companies with over 45 million EU users would be designated as digital "gatekeepers" — making them subject to stricter regulations. Firms could be fined up to 10% of their annual turnover for violating competition rules. The could also be required to sell one of their businesses or parts of it (including rights or brands). Platforms that refuse to comply and "endanger people's life and safety" could have their service temporarily suspended "as a last resort." Companies would need to inform the EU ahead of any planned mergers or acquisitions. Certain kinds of data must be shared with regulators and rivals. Companies favoring their own services could be outlawed. Platforms would be more responsible for illegal, disturbing or misleading content.

Following the announcement on Tuesday, US internet giant Google criticized the draft legislation, saying it appeared to target specific firms.  "We will carefully study the proposals made by the European Commission over the next few days. However, we are concerned that they seem to specifically target a handful of companies," said Karan Bhatia, the vice president of government affairs and public affairs at Google. Facebook appeared to offer a more conciliatory tone, saying the legislation was "on the right track."

French privacy watchdog, the Commission Nationale de l’Informatique et des Libertés (CNIL), has hit Google with a 150 million euro fine and Facebook with a 60 million euro fine, because their websites—google.fr, youtube.com, and facebook.com—don’t make refusing cookies as easy as accepting them. The CNIL carried out an online investigation after receiving complaints from users about the way cookies were handled on these sites. It found that while the sites offered buttons for allowing immediate acceptance of cookies, the sites didn’t implement an equivalent solution to let users refuse them. Several clicks were required to refuse all cookies, against a single one to accept them. In addition to the fines, the companies have been given three months to provide Internet users in France with a way to refuse cookies that’s as simple as accepting them. If they don’t, the companies will have to pay a penalty of 100,000 euros for each day they delay.

EU data protection regulators’ powers have increased significantly since the General Data Protection Regulation (GDPR) took effect in May 2018. This EU law allows watchdogs to levy penalties of as much as 4% of a company’s annual global sales. The restricted committee, the body in charge of sanctions, considered that the process regarding cookies affects the freedom of consent of Internet users and constitutes an infringement of the French Data Protection Act, which demands that it should be as easy to refuse cookies as to accept them. Since March 31, 2021, when the deadline set for websites and mobile applications to comply with the new rules on cookies expired, the CNIL has adopted nearly 100 corrective measures (orders and sanctions) related to non-compliance with the legislation on cookies.

September 29, 2021, Google deleted my YouTube account for “violating community guidelines” they’d implemented that same morning September 28, 2022, I filed a lawsuit against Google, YouTube and Alphabet Inc. for breach of contract. YouTube unilaterally amended the contract without notice, which is a violation of its own terms, and then used this last-minute amendment to remove my content YouTube’s terms of service also include a “three strikes” policy, where users are supposed to be given three warnings and opportunities to remove content that violates the guidelines BEFORE being banned. I had no “strikes” against my channel on the day I was deplatformed and deleted We’re also suing YouTube for unjust enrichment, as for the last 16 years, my video content, having generated in excess of 50 million views, has been of great financial benefit to YouTube, allowing them to increase advertising revenue on the site November 8, 2021, I sued U.S. Sen. Elizabeth Warren, both in her official and personal capacities, for violating my First Amendment rights, as she tried to force Amazon.com to ban my book, “The Truth About COVID-19” September 29, 2021, Google deleted my YouTube account for “violating community guidelines” — guidelines they’d implemented that very same morning. September 28, 2022, I filed a lawsuit1 against Google, YouTube and Alphabet Inc. for breach of contract.2 As detailed in my complaint, YouTube unilaterally amended the contract without notice, which is a violation of its own terms, and then used this last-minute amendment to remove my content, which went back to 2005, the same year YouTube was founded. At the time YouTube deleted my content, I had more than 300,000 subscribers, and my videos had collectively garnered more than 50 million views. While I disagreed with YouTube’s censorship, when its “COVID-19 misinformation” policy was implemented back in April 2021, I carefully avoided posting any content on YouTube that might violate that guideline. In fact, over 16 years on the platform, I never once received notice of any “strike” against my channel for violation of community guidelines.