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INTERNET SPACE
Privacy is dead, Davos hears
By Richard CARTER
Davos, Switzerland (AFP) Jan 22, 2015


Email scam nets $214 mn in 14 months: FBI
Washington (AFP) Jan 22, 2015 - An email scam which targets businesses with bogus invoices has netted more than $214 million from victims in 45 countries in just over one year, an FBI task force said Thursday.

The Internet Crime Complaint Center, a joint effort of the FBI and the nonprofit National White Collar Crime Center, said the losses were calculated from October 1, 2013 to December 1, 2014.

In the scheme, fake invoices are delivered to businesses which deal with overseas suppliers, asking for payment by wire transfer.

"The fraudulent wire transfer payments sent to foreign banks may be transferred several times but are quickly dispersed," the task force said in a statement.

"Asian banks, located in China and Hong Kong, are the most commonly reported ending destination for these fraudulent transfers."

The scam has claimed 1,198 US victims and 928 in other countries, according to the statement. US firms have lost more than $179 million of the total.

The FBI "believes the number of victims and the total dollar loss will continue to increase," the statement said.

In one version of the scheme, a business which works with overseas supplier is contacted by phone, fax or email asking for payment. The emails are "spoofed" to look as if they came from the legitimate supplier. Phone and fax requests also appear genuine.

In another version, email accounts of high-level executives are compromised to allow the criminals to request a wire transfer, often including instructions to "urgently send" funds.

A third version of the scheme involves the hacking of an employee's email account, which then sends out bogus invoices to vendors or suppliers.

The FBI task force said vulnerable businesses should avoid using free Web-based emails for official accounts and to exercise caution about posting company information on websites and social media.

the group also suggests additional security steps such as two-step verification or digital signatures.

"Always verify via other channels that you are still communicating with your legitimate business partner," the statement said.

Imagine a world where mosquito-sized robots fly around stealing samples of your DNA. Or where a department store knows from your buying habits that you're pregnant even before your family does.

That is the terrifying dystopian world portrayed by a group of Harvard professors at the World Economic Forum in Davos on Thursday, where the assembled elite heard that the notion of individual privacy is effectively dead.

"Welcome to today. We're already in that world," said Margo Seltzer, a professor in computer science at Harvard University.

"Privacy as we knew it in the past is no longer feasible... How we conventionally think of privacy is dead," she added.

Another Harvard researcher into genetics said it was "inevitable" that one's personal genetic information would enter more and more into the public sphere.

Sophia Roosth said intelligence agents were already asked to collect genetic information on foreign leaders to determine things like susceptibility to disease and life expectancy.

"We are at the dawn of the age of genetic McCarthyism," she said, referring to witch-hunts against Communists in 1950s America.

What's more, Seltzer imagined a world in which tiny robot drones flew around, the size of mosquitoes, extracting a sample of your DNA for analysis by, say, the government or an insurance firm.

Invasions of privacy are "going to become more pervasive," she predicted.

"It's not whether this is going to happen, it's already happening... We live in a surveillance state today."

- 'Nasty little cousin' -

Political scientist Joseph Nye tackled the controversial subject of encrypted communications and the idea of regulating to ensure governments can always see even encrypted messages in the interests of national security.

"Governments are talking about putting in back doors for communication so that terrorists can't communicate without being spied on. The problem is that if governments can do that, so can the bad guys," Nye told the forum.

"Are you more worried about big brother or your nasty little cousin?"

However, despite the pessimistic Orwellian vision, the academics were at pains to stress that the positive aspects of technology still far outweigh the restrictions on privacy they entail.

In the same way we can send tiny drones to spy on people, we can send the same machine into an Ebola ward to "zap the germs," Seltzer said.

"The technology is there, it is up to us how to use it," she added.

"By and large, tech has done more good than harm," she said, pointing to "tremendous" advances in healthcare in some rural areas of the developing world that have been made possible by technology.

And at a separate session on artificial intelligence, panellists appeared to accept the limit on privacy as part of modern life.

Rodney Brooks, chairman of Rethink Robotics, an American tech firm, took the example of Google Maps guessing -- usually correctly -- where you want to go.

"At first, I found that spooky and kind of scary. Then I realised, actually, it's kind of useful," he told the forum.

Anthony Goldbloom, a young tech entrepreneur, told the same panel that what he termed the "Google generation" placed far less weight on their privacy than previous generations.

"I trade my privacy for the convenience. Privacy is not something that worries me," he said.

"Anyway, people often behave better when they have the sense that their actions are being watched."

The World Economic Forum in the swanky Swiss ski resort of Davos brings together some 2,500 of the global business and political elite for a meeting that ends Saturday.


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