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The first (and thus far only) roll-back of post-9/11 surveillance authorities was implemented over the weekend: The National Security Agency shuttered its program for collecting and holding the metadata of Americans’ phone calls under Section 215 of the Patriot Act. While bulk collection under Section 215 has ended, the government can obtain access to this information under the procedures specified in the USA Freedom Act. Indeed, some experts have argued that the Agency likely has access to more metadata because its earlier dragnet didn’t cover cell phones or Internet calling. In addition, the metadata of calls made by an individual in the United States to someone overseas and vice versa can still be collected in bulk — this takes place abroad under Executive Order 12333. No doubt the NSA wishes that this was the end of the surveillance reform story and the Paris attacks initially gave them an opening. John Brennan, the Director of the CIA, implied that the attacks were somehow related to “hand wringing” about spying and Sen. Tom Cotton (R-Ark.) introduced a bill to delay the shut down of the 215 program. Opponents of encryption were quick to say: “I told you so.”

But the facts that have emerged thus far tell a different story. It appears that much of the planning took place IRL (that’s “in real life” for those of you who don’t have teenagers). The attackers, several of whom were on law enforcement’s radar, communicated openly over the Internet. If France ever has a 9/11 Commission-type inquiry, it could well conclude that the Paris attacks were a failure of the intelligence agencies rather than a failure of intelligence authorities. Despite the passage of the USA Freedom Act, US surveillance authorities have remained largely intact. Section 702 of the FISA Amendments Act — which is the basis of programs like PRISM and the NSA’s Upstream collection of information from Internet cables — sunsets in the summer of 2017. While it’s difficult to predict the political environment that far out, meaningful reform of Section 702 faces significant obstacles. Unlike the Section 215 program, which was clearly aimed at Americans, Section 702 is supposedly targeted at foreigners and only picks up information about Americans “incidentally.” The NSA has refused to provide an estimate of how many Americans’ information it collects under Section 702, despite repeated requests from lawmakers and most recently a large cohort of advocates. The Section 215 program was held illegal by two federal courts (here and here), but civil attempts to challenge Section 702 have run into standing barriers. Finally, while two review panels concluded that the Section 215 program provided little counterterrorism benefit (here and here), they found that the Section 702 program had been useful.

There is, nonetheless, some pressure to narrow the reach of Section 702. The recent decision by the European Court of Justice in the safe harbor case suggests that data flows between Europe and the US may be restricted unless the PRISM program is modified to protect the information of Europeans (see here, here, and here for discussion of the decision and reform options). Pressure from Internet companies whose business is suffering — estimates run to the tune of $35 to 180 billion — as a result of disclosures about NSA spying may also nudge lawmakers towards reform. One of the courts currently considering criminal cases which rely on evidence derived from Section 702 surveillance may hold the program unconstitutional either on the basis of the Fourth Amendment or Article III for the reasons set out in this Brennan Center report. A federal district court in Colorado recently rejected such a challenge, although as explained in Steve’s post, the decision did not seriously explore the issues. Further litigation in the European courts too could have an impact on the debate.

Until just last week, the U.S. government kept up the charade that its use of a stockpile of security vulnerabilities for hacking was a closely held secret.1 In fact, in response to EFF’s FOIA suit to get access to the official U.S. policy on zero days, the government redacted every single reference to “offensive” use of vulnerabilities. To add insult to injury, the government’s claim was that even admitting to offensive use would cause damage to national security. Now, in the face of EFF’s brief marshaling overwhelming evidence to the contrary, the charade is over. In response to EFF’s motion for summary judgment, the government has disclosed a new version of the Vulnerabilities Equities Process, minus many of the worst redactions. First and foremost, it now admits that the “discovery of vulnerabilities in commercial information technology may present competing ‘equities’ for the [government’s] offensive and defensive mission.” That might seem painfully obvious—a flaw or backdoor in a Juniper router is dangerous for anyone running a network, whether that network is in the U.S. or Iran. But the government’s failure to adequately weigh these “competing equities” was so severe that in 2013 a group of experts appointed by President Obama recommended that the policy favor disclosure “in almost all instances for widely used code.” [.pdf].

The newly disclosed version of the Vulnerabilities Equities Process (VEP) also officially confirms what everyone already knew: the use of zero days isn’t confined to the spies. Rather, the policy states that the “law enforcement community may want to use information pertaining to a vulnerability for similar offensive or defensive purposes but for the ultimate end of law enforcement.” Similarly it explains that “counterintelligence equities can be defensive, offensive, and/or law enforcement-related” and may “also have prosecutorial responsibilities.” Given that the government is currently prosecuting users for committing crimes over Tor hidden services, and that it identified these individuals using vulnerabilities called a “Network Investigative Technique”, this too doesn’t exactly come as a shocker. Just a few weeks ago, the government swore that even acknowledging the mere fact that it uses vulnerabilities offensively “could be expected to cause serious damage to the national security.” That’s a standard move in FOIA cases involving classified information, even though the government unnecessarily classifies documents at an astounding rate. In this case, the government relented only after nearly a year and a half of litigation by EFF. The government would be well advised to stop relying on such weak secrecy claims—it only risks undermining its own credibility.

The new version of the VEP also reveals significantly more information about the general process the government follows when a vulnerability is identified. In a nutshell, an agency that discovers a zero day is responsible for invoking the VEP, which then provides for centralized coordination and weighing of equities among all affected agencies. Along with a declaration from an official at the Office of the Director of National Intelligence, this new information provides more background on the reasons why the government decided to develop an overarching zero day policy in the first place: it “recognized that not all organizations see the entire picture of vulnerabilities, and each organization may have its own equities and concerns regarding the prioritization of patches and fixes, as well as its own distinct mission obligations.” We now know the VEP was finalized in February 2010, but the government apparently failed to implement it in any substantial way, prompting the presidential review group’s recommendation to prioritize disclosure over offensive hacking. We’re glad to have forced a little more transparency on this important issue, but the government is still foolishly holding on to a few last redactions, including refusing to name which agencies participate in the VEP. That’s just not supportable, and we’ll be in court next month to argue that the names of these agencies must be disclosed. 

When you pay for federally funded research, you should be allowed to read it. That’s the idea behind the Fair Access to Science and Technology Research Act (S.1701, H.R.3427), which was recently reintroduced in both houses of Congress. FASTR was first introduced in 2013, and while it has strong support in both parties, it has never gained enough momentum to pass. We need to change that. Let’s tell Congress that passing an open access law should be a top priority.

Tell Congress: It’s time to move FASTR The proposal is pretty simple: Under FASTR, every federal agency that spends more than $100 million on grants for research would be required to adopt an open access policy. The bill gives each agency flexibility to implement an open access policy suited to the work it funds, so long as research is available to the public after an “embargo period” of a year or less. One of the major points of contention around FASTR is how long that embargo period should be. Last year, the Senate Homeland Security and Governmental Affairs Committee approved FASTR unanimously, but only after extending that embargo period from six months to 12, putting FASTR in line with the 2013 White House open access memo. That’s the version that was recently reintroduced in the Senate.  The House bill, by contrast, sets the embargo period at six months. EFF supports a shorter period. Part of what’s important about open access is that it democratizes knowledge: when research is available to the public, you don’t need expensive journal subscriptions or paid access to academic databases in order to read it. A citizen scientist can use and build on the same body of knowledge as someone with institutional connections. But in the fast-moving world of scientific research, 12 months is an eternity. A shorter embargo is far from a radical proposition, especially in 2017. The landscape for academic publishing is very different from what it was when FASTR was first introduced, thanks in larger part to nongovernmental funders who already enforce open access mandates. Major foundations like Ford, Gates, and Hewlett have adopted strong open access policies requiring that research be not only available to the public, but also licensed to allow republishing and reuse by anyone.

Just last year, the Gates Foundation made headlines when it dropped the embargo period from its policy entirely, requiring that research be published openly immediately. After a brief standoff, major publishers began to accommodate Gates’ requirements. As a result, we finally have public confirmation of what we’ve always known: open access mandates don’t put publishers out of business; they push them to modernize their business models. Imagine how a strong open access mandate for government-funded research—with a requirement that that research be licensed openly—could transform publishing. FASTR may not be that law, but it’s a huge step in the right direction, and it’s the best option on the table today. Let’s urge Congress to pass a version of FASTR with an embargo period of six months or less, and then use it as a foundation for stronger open access in the future.

Google opted in the Spring not to disclose that the data of hundreds of thousands of Google+ users had been exposed because the company says they found no evidence of misuse, reports the Wall Street Journal. The Silicon Valley giant feared both regulatory scrutiny and regulatory damage, according to documents reviewed by the Journal and people briefed on the incident.  In response to being busted, Google parent Alphabet is set to announce broad privacy measures which include permanently shutting down all consumer functionality of Google+, a move which "effectively puts the final nail in the coffin of a product that was launched in 2011 to challenge Facebook, and is widely seen as one of Google's biggest failures."  Shares in Alphabet fell as much as 2.1% following the Journal's report: 

The software glitch gave outside developers access to private Google+ profile data between 2015 and March 2018, after Google internal investigators found the problem and fixed it. According to a memo prepared by Google's legal and policy staff and reviewed by the Journal, senior executives worried that disclosing the incident would probably trigger "immediate regulatory interest," while inviting comparisons to Facebook's massive data harvesting scandal. 

It finally happened. The feds forced an Apple iPhone X owner to unlock their device with their face.A child abuse investigation unearthed by Forbes includes the first known case in which law enforcement used Apple Face ID facial recognition technology to open a suspect's iPhone. That's by any police agency anywhere in the world, not just in America.It happened on August 10, when the FBI searched the house of 28-year-old Grant Michalski, a Columbus, Ohio, resident who would later that month be charged with receiving and possessing child pornography. With a search warrant in hand, a federal investigator told Michalski to put his face in front of the phone, which he duly did. That allowed the agent to pick through the suspect's online chats, photos and whatever else he deemed worthy of investigation.The case marks another significant moment in the ongoing battle between law enforcement and tech providers, with the former trying to break the myriad security protections put in place by the latter. Since the fight between the world's most valuable company and the FBI in San Bernardino over access to an iPhone in 2016, Forbes has been tracking the various ways cops have been trying to break Apple's protections.

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.

The Ninth Circuit reversed the district court's denial of defendant's motion to suppress evidence obtained from warrantless searches of his cell phone by a Customs and Border Patrol official. Applying United States v. Cotterman, 709 F.3d 952 (9th Cir. 2013) (en banc), the panel held that manual cell phone searches may be conducted by border officials without reasonable suspicion but that forensic cell phone searches require reasonable suspicion. The panel clarified Cotterman by holding that "reasonable suspicion" in this context means that officials must reasonably suspect that the cell phone contains digital contraband. Furthermore, cell phone searches at the border, whether manual or forensic, must be limited in scope to a search for digital contraband. In this case, the panel held that the officials violated the Fourth Amendment when their warrantless searches exceeded the permissible scope of a border search. Therefore, most of the evidence from the searches of defendant's cell phone should have been suppressed. Finally, the panel held that defendant's Brady claims were unpersuasive. Because the panel vacated defendant's conviction, the panel did not reach his claim of prosecutorial misconduct.

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.

Google ultimately caved to Russia’s Federal Antimonopoly Service, agreeing to pay $7.8 million (438 million rubles) for violating antitrust laws. The corporate Colossus will also pay two other fines totaling an additional $18,000 (1 million rubles) for failing to comply with past orders issued by state regulators. Last year Google caved to similar demands by the European Union.

In August 2016 Russia’s Federal Antimonopoly Service responded to a complaint by Russian search engine operator Yandex and fined the U.S.-based Google 438 million rubles for abusing its dominant market position to force manufacturers to make Google applications the default services on devices using Android. Regulators set the fine at 9 percent of Google’s reported profits on the Russian market in 2014, plus inflation. Similar to the case against the European Union Google challenged the penalty in several appellate courts before finally agreeing this week to meet the government’s demands. The corporation also agreed to stop requiring manufacturers to install Google services as the default applications on Android-powered devices. The agreement is valid for six years and nine months, Russia’s Antimonopoly Service reported. Last year Google, after a protracted battle, caved to similar antitrust regulations by the European Union, but the internet giant has also come under fire elsewhere. In 2015 Australian treasurer Joe Hockey implied Google in his list of corporate tax thieves. In January 2016 British lawmakers decided to fry Google over tax evasion. Google and taxes were compared to the Bermuda Triangle. One year ago the dispute between the European Union’s competition watchdog and Google, culminated in the European Commission formally charging Google with abusing the dominant position of its Android mobile phone operating system, having launched an investigation in April 2015.

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.

Facebook expects to pay a fine of up to $5 billion in a settlement with federal regulators. The tech giant disclosed that figure in its first-quarter 2019 financial results. Facebook has been in negotiations with the Federal Trade Commission following concerns that the company violated a 2011 consent decree. Back then, company leaders promised to give consumers "clear and prominent notice" when sharing their data with others and to get "express consent."

But, experts say, Facebook broke its promise. Just one example: giving user data to Cambridge Analytica, the political consulting firm that did work for the 2016 Trump campaign. Facebook estimates the fine will be in the $3 billion to $5 billion range and has set aside $3 billion for payment. "The matter remains unresolved, and there can be no assurance as to the timing or the terms of any final outcome," the company's statement says.

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."

Amazon will pay almost $62 million to settle allegations by the U.S. Federal Trade Commission that it avoided handing over the full pay and tips it promised to delivery drivers, according to the agency.The company is giving back the amount it kept, according to a complaint released earlier this year by the agency, after it told Amazon Flex drivers and customers in 2015 it would pay $18 to $25 hourly plus tips. Instead, beginning the following year, it used tips to supplement lower base pay rates, and tried to hide the changes, according to the FTC."For a period of over two and a half years, without consumers' permission, Amazon secretly used nearly a third of customer tips to subsidize its own pay to drivers," the FTC had found.Under the 20-year settlement, Amazon will also need consent from drivers to change their pay scheme. All commissioners voted unanimously to approve the settlement.

Twitter executives deceived federal regulators and the company’s own board of directors about “extreme, egregious deficiencies” in its defenses against hackers, as well as its meager efforts to fight spam, according to an explosive whistleblower complaint from its former security chief.The complaint from former head of security Peiter Zatko, a widely admired hacker known as “Mudge,” depicts Twitter as a chaotic and rudderless company beset by infighting, unable to properly protect its 238 million daily users including government agencies, heads of state and other influential public figures.Among the most serious accusations in the complaint, a copy of which was obtained by The Washington Post, is that Twitter violated the terms of an 11-year-old settlement with the Federal Trade Commission by falsely claiming that it had a solid security plan. Zatko’s complaint alleges he had warned colleagues that half the company’s servers were running out-of-date and vulnerable software and that executives withheld dire facts about the number of breaches and lack of protection for user data, instead presenting directors with rosy charts measuring unimportant changes.The complaint — filed last month with the Securities and Exchange Commission and the Department of Justice, as well as the FTC — says thousands of employees still had wide-ranging and poorly tracked internal access to core company software, a situation that for years had led to embarrassing hacks, including the commandeering of accounts held by such high-profile users as Elon Musk and former presidents Barack Obama and Donald Trump.