June 2011

E-Mail Fraud Hides Behind Friendly Face

Most people know to ignore the e-mail overture from a Nigerian prince offering riches in exchange for a bank account number. That is a scam, plain to the eye. But what if the e-mail appears to come from a colleague down the hall? And all he asks is that you add some personal information to a company database? This is spear phishing, a rapidly proliferating form of fraud that comes with a familiar face: messages that seem to be from co-workers, friends or family members, customized to trick you into letting your guard down online. And it has turned into a major problem, according to technology companies and computer security experts.

People who work at the White House were among those targeted by the China-based hackers who broke into Google's Gmail accounts, according to one U.S. official.

The hackers likely were hoping the officials were conducting administration business on their private e-mails, according to lawmakers and security experts.
China denied that the country was the source of recent attacks against users of Google's email service. But the government in recent weeks has acknowledged taking a more active role in policing cyberspace to defend against security threats. Google's legations are "unacceptable," Chinese Foreign Ministry spokesman Hong Lei said Thursday. "Saying that the Chinese government supports hacking activity is entirely a fabrication."

Google didn't mention the possibility of involvement by the Chinese government in the latest attacks but said they came from an area that is home to a national-security arm of the People's Liberation Army. China long has said that its Internet users are the world's most victimized by cyberattacks. Mr. Hong said China pays great attention to cybersecurity and administers the Internet in accordance with the law.

Abramson to Replace Keller as The Times’s Executive Editor

Jill Abramson, a former investigative reporter who rose to prominence as a Washington correspondent and editor, will become the next executive editor of The New York Times, succeeding Bill Keller, who is stepping down to become a full-time writer for the paper. The move was accompanied by another shift in senior management. Dean Baquet, the Washington bureau chief and former editor of The Los Angeles Times, will become the managing editor for news. Abramson will become the first woman to be editor of the paper in its 160-year history.

Over the course of Keller’s tenure, the paper won 18 Pulitzer Prizes and expanded its online audience to some 50 million readers worldwide. But the economic downturn and the drift of readers and advertisers to the Web also forced the paper to lay off members of the news staff and tighten budgets considerably.

Killer App: Army Tests Smartphones for Combat

The Army plans to hold desert trials in the US next week to test off-the-shelf iPhones, Androids and tablet computers for use in war. Army will also stress-test a variety of applications that could allow troops to tap digital information from the front lines -- for instance, streaming video from a surveillance camera, or downloading up-to-the minute information from a remote database. The Army doesn't have a plan to give every soldier a smartphone. But Gen. Peter Chiarelli, the Army's vice chief of staff, recently said that if the devices proved themselves in testing, the service would "buy what we need for who needs it now." Many of the applications the Army wants to develop -- for instance, the ability to watch full-motion video shot from a drone -- can already be done with equipment now in the field. The potential advantage of smartphones and tablets is their lighter weight and ease of use.

Hottest Olympic Event: Wrestling for TV Rights

The escalating fight over TV sports rights reaches its biggest battlefield next week, as NBCUniversal pushes to extend its track record of Olympic broadcasting wins, and ESPN and Fox aim to spoil it.

On June 6 and 7, the TV broadcasters will bid for exclusive U.S. television rights for the 2014 and 2016 Olympic Games, one of the few spectacles guaranteed to draw big, live TV audiences at a time when consumers are spreading their attention across a growing number of TV channels and online video sites. The bidding, which is expected to be tighter than in years' past, also marks an effort by the International Olympic Committee and its TV broadcasters to find a way to make televising the Games profitable again. The old model of focusing coverage on one flagship broadcast channel has been broken by the steep increases in rights fees, which have risen faster than advertising rates. The media companies are each sending fleets of executives to Switzerland to make their pitches. And each is taking a different approach.

Measuring the Human Cost of an iPad Made in China

If Apple ordered up a batch of its iPad computers to meet surging market demand and an explosion in the workshop killed three workers and injured 15 others, an army of regulators, cops and plaintiffs lawyers would descend on the company to demand an accounting. On May 20, that's exactly what happened -- minus the descending and the accounting.

The workshop, it turns out, wasn't in Cupertino, Calif., home to Apple's campus. It was a legal arm's length away in Chengdu, China, run by a goliath called Hon Hai Precision Industry, a Taiwanese company that's become one of the world's biggest employers and contract manufacturers. In this, Apple is joined by an A-list of electronics companies -- Hewlett-Packard, Dell, Sony and others. All in some form operate at arm's length from the assembly of many of their products in countries such as China, where labor is cheap. These vast production lines -- Hon Hai employs close to a million workers in China -- are fueled by U.S. consumers seeking rock-bottom prices, shareholders demanding solid profit margins, national governments keen to boost employment, and local workers eager to move up the economic ladder. It's a world long on secrecy and fuzzy on accountability. Two weeks after the explosion, there are only preliminary reports of what happened. Apple doesn't even publicly acknowledge the iPad is made in Chengdu. What is known is that one of the more primitive of industrial problems sparked the explosion: A metal polishing shop was improperly ventilated or cleaned, dust collected in the air or on surfaces, and then, in a moment of considerable violence, the dust ignited.

AT&T’s Ralph De La Vega at D9

Trying to buy T-Mobile USA for $39 billion. Looking to fend off new competition with Verizon over the iPhone. The looming spectrum crunch and the shift away from unlimited data pricing. Too bad there is nothing to talk to AT&T executive Ralph de la Vega about.

AT&T's data network won't be on par with Verizon Wireless' until 2013 or 2014, de la Vega said. AT&T has yet to launch its faster fourth-generation cellular technology but has plans to do so in the second half of this year. The first cities to get the 4G LTE service will be Atlanta, Chicago, Dallas, Houston and San Antonio. The launch will come at least seven months after Verizon Wireless', which began rolling out in December. De la Vega says the proposed merger will improve the quality of AT&T's network because it will be able to use T-Mobile's cell sites. Major cities, such as New York and San Francisco, should see the most significant benefits, he said. Building a new cell site in San Francisco takes two to three times longer than in other cities, he said.

Former Tribune, Times Mirror executives, editors sue shareholders

A group of former publishers, executives and editors of the Tribune Company and Times Mirror filed suit against major shareholders who benefited from the $8.2 billion takeover of the media conglomerate. The group is seeking to recover $109 million in retirement benefits that were stripped after the company that publishes the Los Angeles Times and the Chicago Tribune filed for bankruptcy in the wake of the buyout, which had enriched some shareholders.

The buyout deal in 2007 “lined the pockets of certain Tribune insiders and controlling shareholders with billions of dollars” while rendering Tribune insolvent, or nearly so, according to a copy of one of the lawsuits. Burdened by debt incurred during the buyout, Tribune filed for bankruptcy in 2008. The retirees named in the lawsuit — most of them from Times Mirror, which merged with Tribune in 2000 — were told after the bankruptcy that their retirement payouts would be suspended. The plaintiffs “gave their lives” to the company, the lawsuit says, and were relying on those retirement plans. But the buyout deal, which nearly doubled the company’s debt, led Tribune to file for the bankruptcy. The plaintiffs “had the rug pulled out from under them,” the lawsuit said.

A US strategy for fighting cyberattacks

[Commentary] The Pentagon is developing a new cyberwarfare strategy that calls for the use of military force — including conventional weapons — in response to certain kinds of damaging online attacks on U.S. institutions. That's fine in theory; if foreign agents launch a cyberattack on, say, the nation's electrical grid, it may be both reasonable and proportionate to fire missiles at, say, the attacker's energy supplies. But as recent hacks and phishing attacks on Google's Gmail service and on defense contractor Lockheed Martin indicate, the theory may not translate well to the murky, messy reality of what's happening online.

It's no surprise that the United States would reserve the right to use force against those who threaten it through the Internet. That's standard operating procedure for governments around the world in response to any new type of attack. The Obama administration stated its position simply in the International Strategy for Cyberspace policy paper released May 17, which declared that the United States "will respond to hostile acts in cyberspace as we would to any other threat to our country." But what constitutes an act of cyberwarfare? When would a military response be appropriate? And what are the rules of engagement? These are questions that U.S. administrations and defense officials have been struggling to answer for more than a decade. Last month the White House sent Congress a broad cybersecurity proposal that would have the government designate which companies control critical infrastructure, identify the ones subject to the greatest threats and declare which risks they must guard against. It would not, however, have the government tell them how to ward off cyberattacks or take control of critical facilities in the event of a cyberwar. Instead, it would require those companies to have cybersecurity plans that passed muster with independent evaluators. It's a modest but important step in response to a glaring cybersecurity gap that Congress should move quickly to fill.

European TV ad sales gap is widening

A north-south divide in the growth of European TV advertising is getting wider, according to analysts, media buyers and broadcasters.

In research, Omar Sheikh, analyst at Credit Suisse, said a survey of 18 media buyers in seven countries showed a clear gulf between two halves of the continent. “Our survey suggests Spain and Italy will weaken further in [the second quarter of 2011]. “Buyers tell us FMCG [fast-moving consumer goods], autos and telecoms advertisers are now freezing campaigns ahead of formal decisions in July on whether to release or cut full-year budgets. “By contrast, Germany and the UK are more stable, and Scandinavia is accelerating.”

Warning over 4G and TV interference

The digital television signal for hundreds of thousands of UK homes will be affected by interference from new 4G mobile networks when they come online in 2013, the telecoms regulator has warned.

Ofcom said that mobile operators should bear the estimated £100m costs of mitigating the interference, after they bid for new 4G spectrum early next year. It estimates that about 3 per cent of digital terrestrial television viewers – around 760,000 homes – will be affected when the so-called “digital dividend” spectrum, previously used for analog broadcast, in the 800MHz range starts being used to transmit mobile phone calls and data in the next few years. The interference problem adds another complication to the process of the digital TV switchover, which is due to be completed in 2012. “It is an issue but it is not insurmountable,” said an Ofcom spokesperson. “There are plenty of mitigations to ensure everyone can continue watching TV.”