An anonymous reader quotes a report from Gizmodo: Texas has sued (PDF) one of the nation's largest car insurance providers alleging that it violated the state's privacy laws by surreptitiously collecting detailed location data on millions of drivers and using that information to justify raising insurance premiums. The state's attorney general, Ken Paxton, said the lawsuit against Allstate and its subsidiary Arity is the first enforcement action ever filed by a state attorney general to enforce a data privacy law. It also follows a deceptive business practice lawsuit he filed against General Motors accusing the car manufacturer of misleading customers by collecting and selling driver data.

In 2015, Allstate developed the Arity Driving Engine software development kit (SDK), a package of code that the company allegedly paid mobile app developers to install in their products in order to collect a variety of sensitive data from consumers' phones. The SDK gathered phone geolocation data, accelerometer, and gyroscopic data, details about where phone owners started and ended their trips, and information about "driving behavior," such as whether phone owners appeared to be speeding or driving while distracted, according to the lawsuit. The apps that installed the SDK included GasBuddy, Fuel Rewards, and Life360, a popular family monitoring app, according to the lawsuit.

Paxton's complaint said that Allstate and Arity used the data collected by its SDK to develop and sell products to other insurers like Drivesight, an algorithmic model that assigned a driving risk score to individuals, and ArityIQ, which allowed other insurers to "[a]ccess actual driving behavior collected from mobile phones and connected vehicles to use at time of quote to more precisely price nearly any driver." Allstate and Arity marketed the products as providing "driver behavior" data but because the information was collected via mobile phones the companies had no way of determining whether the owner was actually driving, according to the lawsuit. "For example, if a person was a passenger in a bus, a taxi, or in a friend's car, and that vehicle's driver sped, hard braked, or made a sharp turn, Defendants would conclude that the passenger, not the actual driver, engaged in 'bad' driving behavior," the suit states. Neither Allstate and Arity nor the app developers properly informed customers in their privacy policies about what data the SDK was collecting or how it would be used, according to the lawsuit. The lawsuit violates Texas' Data Privacy and Security Act (DPSA) and insurance code by failing to address violations within the required 30-day cure period. "In its complaint, filed in federal court, Texas requested that Allstate be ordered to pay a penalty of $7,500 per violation of the state's data privacy law and $10,000 per violation of the state's insurance code, which would likely amount to millions of dollars given the number of consumers allegedly affected," adds the report.

"The lawsuit also asks the court to make Allstate delete all the data it obtained through actions that allegedly violated the privacy law and to make full restitution to customers harmed by the companies' actions."

A new ransomware group called Codefinger targets AWS S3 buckets by exploiting compromised or publicly exposed AWS keys to encrypt victims' data using AWS's own SSE-C encryption, rendering it inaccessible without the attacker-generated AES-256 keys. While other security researchers have documented techniques for encrypting S3 buckets, "this is the first instance we know of leveraging AWS's native secure encryption infrastructure via SSE-C in the wild," Tim West, VP of services with the Halcyon RISE Team, told The Register. "Historically AWS Identity IAM keys are leaked and used for data theft but if this approach gains widespread adoption, it could represent a significant systemic risk to organizations relying on AWS S3 for the storage of critical data," he warned. From the report: ... in addition to encrypting the data, Codefinder marks the compromised files for deletion within seven days using the S3 Object Lifecycle Management API â" the criminals themselves do not threaten to leak or sell the data, we're told. "This is unique in that most ransomware operators and affiliate attackers do not engage in straight up data destruction as part of a double extortion scheme or to otherwise put pressure on the victim to pay the ransom demand," West said. "Data destruction represents an additional risk to targeted organizations."

Codefinger also leaves a ransom note in each affected directory that includes the attacker's Bitcoin address and a client ID associated with the encrypted data. "The note warns that changes to account permissions or files will end negotiations," the Halcyon researchers said in a report about S3 bucket attacks shared with The Register. While West declined to name or provide any additional details about the two Codefinger victims -- including if they paid the ransom demands -- he suggests that AWS customers restrict the use of SSE-C.

"This can be achieved by leveraging the Condition element in IAM policies to prevent unauthorized applications of SSE-C on S3 buckets, ensuring that only approved data and users can utilize this feature," he explained. Plus, it's important to monitor and regularly audit AWS keys, as these make very attractive targets for all types of criminals looking to break into companies' cloud environments and steal data. "Permissions should be reviewed frequently to confirm they align with the principle of least privilege, while unused keys should be disabled, and active ones rotated regularly to minimize exposure," West said. An AWS spokesperson said it notifies affected customers of exposed keys and "quickly takes any necessary actions, such as applying quarantine policies to minimize risks for customers without disrupting their IT environment."

They also directed users to this post about what to do upon noticing unauthorized activity.

An anonymous reader quotes a report from CBS News: The Supreme Court on Monday said it will not consider whether to quash lawsuits brought by Honolulu seeking billions of dollars from oil and gas companies for the damage caused by the effects of climate change, clearing the way for the cases to move forward. The legal battle pursued in Hawaii state court is similar to others filed against the nation's largest energy companies by state and local governments in their courts. The suits claim that the oil and gas industry engaged in a deceptive campaign and misled the public about the dangers of their fossil fuel products and the environmental impacts.

A group of 15 energy companies asked the Supreme Court to review a decision from the Hawaii Supreme Court that allowed a lawsuit brought by the city and county of Honolulu, as well as its Board of Water Supply, to proceed. The suit was brought in Hawaii state court in March 2020, and Honolulu raised (PDF) several claims under state law, including creating a public nuisance and failure to warn the public of the risks posed by their fossil fuel products. The city accused the oil and gas industry of contributing to global climate change, leading to flooding, erosion and more frequent and intense extreme weather events. These changes, they said, have led to property damage and a drop in tax revenue as a result of less tourism.

The energy companies unsuccessfully sought to have the case moved to federal court, arguing that the claims raised by Honolulu under state law were overridden by federal law and the Clean Air Act. A state trial court denied their efforts to dismiss the case. The oil and gas industry has argued that greenhouse-gas emissions "flow from billions of daily choices, over more than a century, by governments, companies and individuals about what types of fuels to use, and how to use them." Honolulu, the companies said, was seeking damages for the "cumulative effect of worldwide emissions leading to global climate change." The Hawaii Supreme Court ultimately allowed (PDF) the lawsuit to proceed. The state's highest court determined that the Clean Air Act displaced federal common law governing suits seeking damages for interstate pollution. It also rejected the oil companies' argument that Honolulu was seeking to regulate emissions through its lawsuit, finding that the city instead wanted to challenge the promotion and sale of fossil fuel products "without warning and abetted by a sophisticated disinformation campaign."

"Plaintiffs' state tort law claims do not seek to regulate emissions, and there is thus no 'actual conflict' between Hawaii tort law and the [Clean Air Act]," the Hawaii Supreme Court ruled. "These claims potentially regulate marketing conduct while the CAA regulates pollution." The oil companies asked the U.S. Supreme Court to review the ruling from the Hawaii high court and urged it to stop Honolulu's lawsuit from going forward. Regulation of interstate pollution is a federal area governed by federal law, lawyers for the energy industry argued. [...] The Supreme Court in June asked the Biden administration to weigh in on the cases and whether it should step into the dispute. In a filing submitted to the Supreme Court before the transfer of presidential power, the Biden administration urged the justices to turn away the appeals, in part because it said it is too soon for them to intervene.

UK ministers are considering allowing private companies to profit from anonymized NHS data as part of a push to leverage AI for medical advancements, despite concerns over privacy and ethical risks. The Guardian reports: Keir Starmer on Monday announced a push to open up the government to AI innovation, including allowing companies to use anonymized patient data to develop new treatments, drugs and diagnostic tools. With the prime minister and the chancellor, Rachel Reeves, under pressure over Britain's economic outlook, Starmer said AI could bolster the country's anaemic growth, as he put concerns over privacy, disinformation and discrimination to one side.

"We are in a unique position in this country, because we've got the National Health Service, and the use of that data has already driven forward advances in medicine, and will continue to do so," he told an audience in east London. "We have to see this as a huge opportunity that will impact on the lives of millions of people really profoundly." Starmer added: "It is important that we keep control of that data. I completely accept that challenge, and we will also do so, but I don't think that we should have a defensive stance here that will inhibit the sort of breakthroughs that we need."

The move to embrace the potential of AI rather than its risks comes at a difficult moment for the prime minister, with financial markets having driven UK borrowing costs to a 30-year high and the pound hitting new lows against the dollar. Starmer said on Monday that AI could help give the UK the economic boost it needed, adding that the technology had the potential "to increase productivity hugely, to do things differently, to provide a better economy that works in a different way in the future." Part of that, as detailed in a report by the technology investor Matt Clifford, will be to create new datasets for startups and researchers to train their AI models.

Data from various sources will be included, such as content from the National Archives and the BBC, as well as anonymized NHS records. Officials are working out the details on how those records will be shared, but said on Monday that they would take into account national security and ethical concerns. Starmer's aides say the public sector will keep "control" of the data, but added that could still allow it to be used for commercial purposes.

"Oracle has informed us they won't voluntarily withdraw their trademark on 'JavaScript'." That's the word coming from the company behind Deno, the alternative JavaScript/TypeScript/WebAssembly runtime, which is pursuing a formal cancellation with the U.S. Patent and Trademark Office.

So what happens next? Oracle "will file their Answer, and we'll start discovery to show how 'JavaScript' is widely recognized as a generic term and not controlled by Oracle." Deno's social media posts show a schedule of various court dates that extend through July of 2026, so "The dispute between Oracle and Deno Land could go on for quite a while," reports InfoWorld: Deno Land co-founder Ryan Dahl, creator of both the Deno and Node.js runtimes, said a formal answer from Oracle is expected before February 3, unless Oracle extends the deadline again. "After that, we will begin the process of discovery, which is where the real legal work begins. It will be interesting to see how Oracle argues against our claims — genericide, fraud on the USPTO, and non-use of the mark."

The legal process begins with a discovery conference by March 5, with discovery closing by September 1, followed by pretrial disclosure from October 16 to December 15. An optional request for an oral hearing is due by July 8, 2026.
Oracle took ownership of JavaScript's trademark in 2009 when it purchased Sun Microsystems, InfoWorld notes.

But "Oracle does not control (and has never controlled) any aspect of the specification or how the phrase 'JavaScript' can be used by others," argues an official petition filed by Deno Land Inc. with the United States Patent and Trademark Office: Today, millions of companies, universities, academics, and programmers, including Petitioner, use "JavaScript" daily without any involvement with Oracle. The phrase "JavaScript" does not belong to one corporation. It belongs to the public. JavaScript is the generic name for one of the bedrock languages of modern programming, and, therefore, the Registered Mark must be canceled.

An open letter to Oracle discussing the genericness of the phrase "JavaScript," published at https://javascript.tm/, was signed by 14,000+ individuals at the time of this Petition to Cancel, including notable figures such as Brendan Eich, the creator of JavaScript, and the current editors of the JavaScript specification, Michael Ficarra and Shu-yu Guo. There is broad industry and public consensus that the term "JavaScript" is generic.
The seven-page petition goes into great detail, reports InfoWorld. "Deno Land also accused Oracle of committing fraud in its trademark renewal efforts in 2019 by submitting screen captures of the website of JavaScript runtime Node.js, even though Node.js was not affiliated with Oracle."

"The U.K is looking to build a homegrown challenger to OpenAI and drastically increase national computing infrastructure," reports CNBC, "as Prime Minister Keir Starmer's government sets its sights on becoming a global leader in artificial intelligence." The government is primarily seeking to expand data center capacity across the U.K. to boost developers of powerful AI models which rely on high-performance computing equipment hosted in remote locations to train and run their systems. A target of increasing "sovereign," or public sector, compute capacity in the U.K. by twentyfold by 2030 has been set... To further bolster Britain's computing infrastructure, the government also committed to setting up several AI "growth zones," where rules on planning permission will be relaxed in certain places to allow for the creation of new data centers. Meanwhile, an "AI Energy Council" formed of industry leaders from both energy and AI will be set up to explore the role of renewable and low-carbon sources of energy, like nuclear...

Britain plans to use the AI growth zones and a newly established National Data Library to connect public institutions — such as universities — to enhance the country's ability to create "sovereign" AI models which aren't reliant on Silicon Valley... Last month, the government announced a consultation on measures to regulate the use of copyrighted content to train AI models.

As an ecological disaster devastated two coastal California cities, more than 7,500 firefighters pushed back against the wildfires. 900 of them are inmates, reports NPR. That's about 12%: California is one of more than a dozen states that operates conservation camps, commonly known as fire camps, for incarcerated people to train to fight fires and respond to other disasters... There are now 35 such camps in California, all of which are minimum-security facilities... When they are not fighting fires, they also respond to floods and other disasters and emergencies. Otherwise, the crews do community service work in areas close to their camp, according to the state corrections department...

A 2018 Time investigation found that incarcerated firefighters are at a higher risk for serious injuries. They also are more than four times as likely to get cuts, bruises or broken bones compared to professional firefighters working the same fires, the report found. They were also more than eight times as likely to face injuries after inhaling smoke, ash and other debris compared with other firefighters, the report said.
"Two of the camps are for incarcerated women," reports the BBC. One of them — since released — remembers that "It felt like you were doing something that mattered instead of rotting away in a cell," according to the nonprofit new site CalMatters. They can also earn credits that help reduce their prison sentences, the BBC learned from the California Department of Corrections and Rehabilitation.

Friday one local California news report shared the perspective of formerly incarcerated Californian, Matthew Hahn (from a 2021 Washington Post column). "Yes, the decision to take part is largely made under duress, given the alternative. Yes, incarcerated firefighters are paid pennies for an invaluable task. And yes, it is difficult though not impossible for participants to become firefighters after leaving prison," Hahn said. "Despite this, fire camps remain the most humane places to do time in the California prison system."
From that 2021 Washington Post column: California prisons have, on average, three times the murder rate of the country overall and twice the rate of all American prisons. These figures don't take into account the sheer number of physical assaults that occur behind prison walls. Prison feels like a dangerous place because it is. Whether it's individual assaults or large-scale riots, the potential for violence is ever-present. Fire camp represents a reprieve from that risk. Sure, people can die in fire camp as well — at least three convict-firefighters have died working to contain fires in California since 2017 — but the threat doesn't weigh on the mind like the prospect of being murdered by a fellow prisoner. I will never forget the relief I felt the day I set foot in a fire camp in Los Angeles County, like an enormous burden had been lifted...

[When his 12-man crew was called to fight the Jesusita Fire], the fire had ignited one home's deck and was slowly burning its way to the structure. We cut the deck off the house, saving the home. I often fantasize about the owners returning to see it still standing, unaware and probably unconcerned that an incarcerated fire crew had saved it. There was satisfaction in knowing that our work was as valuable as that of any other firefighter working the blaze and that the gratitude expressed toward first responders included us.

There are other reasons for prisoners to choose fire camp if given the opportunity. They are often located in secluded natural settings, giving inmates the chance to live in an environment that doesn't remotely resemble a prison. There are no walls, and sometimes there aren't even fences. Gun towers are conspicuously absent, and the guards aren't even armed.... [C]onsider the guy pushing a broom in his cell block making the equivalent of one Top Ramen noodle packet per day, just so he can have the privilege of making a collect call to his mother. Or think of the man scrubbing the streaks out of the guards' toilets, making seven cents an hour, half of which goes to pay court fees and restitution, just so he can have those couple of hours outside his cage for the day...

So, while we may have faced the heat of a wildfire for a few bucks a day, and we may have saved a few homes and been happy doing so, understand that we were rational actors. We wanted to be there, where some of our dignity was returned to us.

Google is reintroducing "digital fingerprinting" in five weeks, reports Mashable, describing it as "a data collection process that ingests all of your online signals (from IP address to complex browser information) and pinpoints unique users or devices." Or, to put it another way, Google "is tracking your online behavior in the name of advertising."

The UK's Information Commissioner's Office called Google's decision "irresponsible": it is likely to reduce people's choice and control over how their information is collected. The change to Google's policy means that fingerprinting could now replace the functions of third-party cookies... Google itself has previously said that fingerprinting does not meet users' expectations for privacy, as users cannot easily consent to it as they would cookies. This in turn means they cannot control how their information is collected. To quote Google's own position on fingerprinting from 2019: "We think this subverts user choice and is wrong...." When the new policy comes into force on 16 February 2025, organisations using Google's advertising technology will be able to deploy fingerprinting without being in breach of Google's own policies. Given Google's position and scale in the online advertising ecosystem, this is significant.
Their post ends with a warning that those hoping to use fingerprinting for advertising "will need to demonstrate how they are complying with the requirements of data protection law. These include providing users with transparency, securing freely-given consent, ensuring fair processing and upholding information rights such as the right to erasure."

But security and privacy researcher Lukasz Olejnik asks if Google's move is the biggest privacy erosion in 10 years.... Could this mark the end of nearly a decade of progress in internet and web privacy? It would be unfortunate if the newly developing AI economy started from a decrease of privacy and data protection standards. Some analysts or observers might then be inclined to wonder whether this approach to privacy online might signal similar attitudes in other future Google products, like AI... The shift is rather drastic. Where clear restrictions once existed, the new policy removes the prohibition (so allows such uses) and now only requires disclosure... [I]f the ICO's claims about Google sharing IP addresses within the adtech ecosystem are accurate, this represents a significant policy shift with critical implications for privacy, trust, and the integrity of previously proposed Privacy Sandbox initiatives.
Their post includes a disturbing thought. "Reversing the stance on fingerprinting could open the door to further data collection, including to crafting dynamic, generative AI-powered ads tailored with huge precision. Indeed, such applications would require new data..."

Thanks to long-time Slashdot reader sinij for sharing the news.

Friday America's consumer watchdog agency "proposed a rule to give virtual video game currencies protections similar to those of real-world bank accounts..." reports the Washington Post, "so players can receive refunds or compensation for unauthorized transactions, similar to how banks are required to respond to claims of fraudulent activity." The Consumer Financial Protection Bureau is seeking public input on a rule interpretation to clarify which rights are protected and available to video game consumers under the Electronic Fund Transfer Act. It would hold video game companies subject to violations of federal consumer financial law if they fail to address financial issues reported by customers. The public comment period lasts from Friday through March 31. In particular, the independent federal agency wants to hear from gamers about the types of transactions they make, any issues with in-game currencies, and stories about how companies helped or denied help.

The effort is in response to complaints to the bureau and the Federal Trade Commission about unauthorized transactions, scams, hacking attempts and account theft, outlined in an April bureau report that covered banking in video games and virtual worlds. The complaints said consumers "received limited recourse from gaming companies." Companies may ban or lock accounts or shut down a service, according to the report, but they don't generally guarantee refunds to people who lost property... The April report says the bureau and FTC received numerous complaints from players who contacted their banks regarding unauthorized charges on Roblox. "These complaints note that while they received refunds through their financial institutions, Roblox then terminated or locked their account," the report says.

While CES wraps up this week, "Not all innovation is good innovation," warns Elizabeth Chamberlain, iFixit's Director of Sustainability (heading their Right to Repair advocacy team). So this year the group held its fourth annual "anti-awards ceremony" to call out CES's "least repairable, least private, and least sustainable products..." (iFixit co-founder Kyle Wiens mocked a $2,200 "smart ring" with a battery that only lasts for 500 charges. "Wanna open it up and change the battery? Well you can't! Trying to open it will completely destroy this device...") There's also a category for the worst in security — plus a special award titled "Who asked for this?" — and then a final inglorious prize declaring "the Overall Worst in Show..."

Thursday their "panel of dystopia experts" livestreamed to iFixit's feed of over 1 million subscribers on youtube, with the video's description warning about manufacturers "hoping to convince us that they have invented the future. But will their vision make our lives better, or lead humanity down a dark and twisted path?" The video "is a fun and rollicking romp that tries to forestall a future clogged with power-hungry AI and data-collecting sensors," writes The New Stack — though noting one final irony.

"While the ceremony criticized these products, youtube was displaying ads for them..."

UPDATE: Slashdot reached out to iFixit co-founder Kyle Wiens, who says this teaches us all a lesson. "The gadget industry is insidious and has their tentacles everywhere."

"Of course they injected ads into our video. The beast can't stop feeding, and will keep growing until we knife it in the heart."

Long-time Slashdot reader destinyland summarizes the article: "We're seeing more and more of these things that have basically surveillance technology built into them," iFixit's Chamberlain told The Associated Press... Proving this point was EFF executive director Cindy Cohn, who gave a truly impassioned takedown for "smart" infant products that "end up traumatizing new parents with false reports that their baby has stopped breathing." But worst for privacy was the $1,200 "Revol" baby bassinet — equipped with a camera, a microphone, and a radar sensor. The video also mocks Samsung's "AI Home" initiative which let you answer phone calls with your washing machine, oven, or refrigerator. (And LG's overpowered "smart" refrigerator won the "Overall Worst in Show" award.)

One of the scariest presentations came from Paul Roberts, founder of SecuRepairs, a group advocating both cybersecurity and the right to repair. Roberts notes that about 65% of the routers sold in the U.S. are from a Chinese company named TP-Link — both wifi routers and the wifi/ethernet routers sold for homes and small offices.Roberts reminded viewers that in October, Microsoft reported "thousands" of compromised routers — most of them manufactured by TP-Link — were found working together in a malicious network trying to crack passwords and penetrate "think tanks, government organizations, non-governmental organizations, law firms, defense industrial base, and others" in North America and in Europe. The U.S. Justice Department soon launched an investigation (as did the U.S. Commerce Department) into TP-Link's ties to China's government and military, according to a SecuRepairs blog post.

The reason? "As a China-based company, TP-Link is required by law to disclose flaws it discovers in its software to China's Ministry of Industry and Information Technology before making them public." Inevitably, this creates a window "to exploit the publicly undisclosed flaw... That fact, and the coincidence of TP-Link devices playing a role in state-sponsored hacking campaigns, raises the prospects of the U.S. government declaring a ban on the sale of TP-Link technology at some point in the next year."

TP-Link won the award for the worst in security.

An anonymous reader shared this report from CNN: New intelligence has led two US intelligence agencies to conclude that it's possible a small number of mysterious health ailments colloquially termed as Havana Syndrome impacting spies, soldiers and diplomats around the world may have been caused by a "novel weapon" wielded by a foreign actor, according to intelligence officials and a new unclassified summary report released on Friday. However, the two agencies are in the minority and the broader intelligence community assessment remains that it is very unlikely that the symptoms were caused by a foreign actor, according to the unclassified report summary issued Friday — even as an official with the Office of the Director of National Intelligence [ODNI] emphasized that analysts cannot "rule out" the possibility in some small number of cases.

The subtle, technocratic shift in the assessment over the cause of Havana Syndrome has reignited a bitter debate that has split US officials, Capitol Hill and victims over the likelihood that the bizarre injuries were caused by a weapon or a host of disparate, natural causes. Sometime in the last two years, the US received new intelligence that indicated a foreign nation's directed energy research programs had been "making progress," according to the official. That led one unnamed intelligence agency to assess that there was a "roughly even chance" that a foreign country has used some kind of novel weapon against a small group of victims, causing the symptoms that the government officially calls "anomalous health incidents" — headaches, vertigo and even, in some cases, signs of traumatic brain injury. A second intelligence agency assessed a "roughly even" chance that a foreign actor possessed such a weapon but is unlikely to have deployed it against US personnel...

But both judgments were made with low confidence, according to the ODNI official. And critically, possessing a capability is not the same as proof that it has been used.
The article notes that U.S. intelligence and administration officials "do not doubt that the injuries are real and deserving of government compensation." But one official in the Office of the Director of National Intelligence told CNN "The intelligence does not link a foreign actor to these events. Indeed, it points away from their involvement." And they added that all U.S. Intelligence Community components "agree that years of Intelligence Community collection, targeting and analytic efforts have not surfaced compelling intelligence reporting that ties a foreign actor to any specific event reported" as a possible anomalous health incident.

CNN adds that "the official said some evidence directly contradicts the notion that a foreign government was involved." The White House emphasized that research to determine the causes of the incidents is ongoing... On Friday, officials emphasized that the intelligence community is now supporting lab work on whether radio frequencies can cause "bioeffects" in line with what victims have reported. The latest findings from limited studies have shown mixed results, while previously most results had shown no effects, officials said. A panel of experts assembled by the intelligence community that studied a smaller set of incidents previously found that the symptoms might be explained by "pulsed electromagnetic or acoustic energy," as opposed to environmental or medical conditions. "There was unanimous judgment by the panel that the most plausible explanation for a subset of cases was exposure to directed energy," a second senior administration official said.

But complicating matters for victims and analysts is the fact that not all of those reporting Anomalous Health Incidents have the same set of symptoms — and the vast majority of cases have been explained by other causes, officials have previously said...

"Microsoft's Digital Crimes Unit is taking legal action to ensure the safety and integrity of our AI services," according to a Friday blog post by the unit's assistant general counsel. Microsoft blames "a foreign-based threat-actor group" for "tools specifically designed to bypass the safety guardrails of generative AI services, including Microsoft's, to create offensive and harmful content.

Microsoft "is accusing three individuals of running a 'hacking-as-a-service' scheme," reports Ars Technica, "that was designed to allow the creation of harmful and illicit content using the company's platform for AI-generated content" after bypassing Microsoft's AI guardrails: They then compromised the legitimate accounts of paying customers. They combined those two things to create a fee-based platform people could use. Microsoft is also suing seven individuals it says were customers of the service. All 10 defendants were named John Doe because Microsoft doesn't know their identity.... The three people who ran the service allegedly compromised the accounts of legitimate Microsoft customers and sold access to the accounts through a now-shuttered site... The service, which ran from last July to September when Microsoft took action to shut it down, included "detailed instructions on how to use these custom tools to generate harmful and illicit content."

The service contained a proxy server that relayed traffic between its customers and the servers providing Microsoft's AI services, the suit alleged. Among other things, the proxy service used undocumented Microsoft network application programming interfaces (APIs) to communicate with the company's Azure computers. The resulting requests were designed to mimic legitimate Azure OpenAPI Service API requests and used compromised API keys to authenticate them. Microsoft didn't say how the legitimate customer accounts were compromised but said hackers have been known to create tools to search code repositories for API keys developers inadvertently included in the apps they create. Microsoft and others have long counseled developers to remove credentials and other sensitive data from code they publish, but the practice is regularly ignored. The company also raised the possibility that the credentials were stolen by people who gained unauthorized access to the networks where they were stored...

The lawsuit alleges the defendants' service violated the Computer Fraud and Abuse Act, the Digital Millennium Copyright Act, the Lanham Act, and the Racketeer Influenced and Corrupt Organizations Act and constitutes wire fraud, access device fraud, common law trespass, and tortious interference.

An anonymous reader quotes a report from The Register: A leading education software maker has admitted its IT environment was compromised in a cyberattack, with students and teachers' personal data -- including some Social Security Numbers and medical info -- stolen. PowerSchool says its cloud-based student information system is used by 18,000 customers around the globe, including the US and Canada, to handle grading, attendance records, and personal information of more than 60 million K-12 students and teachers. On December 28 someone managed to get into its systems and access their contents "using a compromised credential," the California-based biz told its clients in an email seen by Register this week.

[...] "We believe the unauthorized actor extracted two tables within the student information system database," a spokesperson told us. "These tables primarily include contact information with data elements such as name and address information for families and educators. "For a certain subset of the customers, these tables may also include Social Security Number, other personally identifiable information, and limited medical and grade information. "Not all PowerSchool student information system customers were impacted, and we anticipate that only a subset of impacted customers will have notification obligations." While the company has tightened security measures and offered identity protection services to affected individuals, cybersecurity firm Cyble suggests the intrusion "may have been more serious and gone on much longer than has been publicly acknowledged so far," reports The Register. The cybersecurity vendor says the intrusion could have occurred as far back as June 16, 2011, with it ending on January 2 of this year.

"Critical systems and applications such as Oracle Netsuite ERP, HR software UltiPro, Zoom, Slack, Jira, GitLab, and sensitive credentials for platforms like Microsoft login, LogMeIn, Windows AD Azure, and BeyondTrust" may have been compromised, too.

An anonymous reader quotes a report from Crypto Briefing: The US Department of Justice (DOJ) has been authorized to sell approximately 69,370 Bitcoin seized in connection with the Silk Road darknet marketplace, a haul currently valued at around $6.5 billion, DB News reported Wednesday. The decision is set to end a years-long legal dispute over the BTC stash's ownership. On December 30, a federal judge ruled in favor of the DOJ's request to liquidate the crypto assets, the report said. Battle Born Investments, which had asserted a claim to the Bitcoin stash through a bankruptcy estate, ultimately failed in its bid to delay the sale.

As noted, the group had pursued a Freedom of Information Act (FOIA) request seeking the identity of "Individual X," who initially surrendered Bitcoin, but the effort also proved unsuccessful. Battle Born's legal counsel criticized the DOJ's handling of the case, alleging the department employed "procedural trickery" in its use of civil asset forfeiture to avoid scrutiny. The DOJ, in its arguments before the court, cited Bitcoin's price volatility as motivation for seeking a quick sale of the seized assets. A DOJ spokesperson, when contacted, stated, "The Government will proceed further consistent with the judgment in this case."

The update comes after the US Supreme Court refused to hear an appeal challenging the seizure of the Bitcoin stash, which was brought by Battle Born last October. The decision likely paved the way for the US government to sell Bitcoin, which was valued at $4.4 billion at the time. The US Marshals Service is expected to manage the liquidation process, which, if confirmed, will be one of the largest sales of seized crypto in history. Further reading: Judge Rejects Man From Retrieving $750 Million of Bitcoin From Landfill

An IT engineer from Wales lost a decade-long legal battle to recover a hard drive containing 8,000 Bitcoins from a Newport landfill. The hard drive, accidentally thrown away in 2013, is now valued between $700-750 million. crypto.news reports: However, Judge Keyser KC ruled there were no "reasonable grounds" for the claim, citing environmental concerns and the council's ownership of the landfill contents. The landfill reportedly holds 1.4 million tonnes of waste, but Howells claims to have pinpointed the hard drive's location to a 100,000-ton section. Reacting to the ruling, Howells expressed frustration, calling it a "kick in the teeth," according to the BBC.