Are Russian Hackers Exploiting Android?

Russian mobile malware factories are working with thousands of affiliates to exploit Android users, a security company has claimed.

According to Lookout Mobile Security the system is so efficient that almost a third of all mobile malware is made by just 10 organisations operating out of Russia. These “malware HQs” are pumping out nasty toll fraud apps, largely aimed at Android users, which force the user to call premium rate numbers the report said.

Thousands of affiliate marketers are also profiting from the scheme and helping spread the malware by setting up websites designed to trick users into downloading seemingly legitimate apps. Affiliates can make up to $12,000 a month and are heavy users of Twitter.

The report’s release at the DEF CON 21 conference in Las Vegas indicated that Lookout Mobile Security are working with the spooks to bring the crooks down. The malware HQs had gone to great lengths to obfuscate and encrypt their code to make detection tricky, but their advertising was pretty brazen.

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Samsung’s Eight-core Chip Goes Hacking

A Samsung eight-core chip used in some Galaxy S4 mobile devices is now available for hackers to play with on a developer board from South Korea-based Hardkernel.

Hardkernel’s Odroid XU board has incorporated Samsung’s eight-core Exynos 5 Octa 5410 chip, which is based on ARM’s latest processor designs. Samsung recently announced a new eight-core chip, the Exynos 5 Octa 5420, which packs faster graphics and application processing than the 5410. The 5420 has not yet been shipped yet, however.

The Odroid board is priced at $149 through Aug. 31, after which it will be offered for $169. Samsung for many months has said that a board with an eight-core chip would be released, and has shown prototype developer boards at conferences.

Odroid-XU will provide developers an opportunity to write programs tuned for Samsung’s octa-core chip, which has been a source of controversy. Analysts have said the eight-core design is overkill for small devices like smartphones and tablets, which need long battery life.

The eight-core chip design also takes up a lot of space, which prevented Samsung from putting LTE radios inside some Galaxy S4 models. Qualcomm, which hesitantly moved from the dual core to the quad-core design on its Snapdragon chips, on Friday criticized eight-core chips, calling the idea “dumb.”

Despite the criticism, the board will give developers a first true glimpse of, and an opportunity to write and test applications for, ARM’s Big.Little design. The design combines high-power cores for demanding applications with low-power cores for mundane tasks like texting and calling.

Samsung’s iteration of Big.Little in the Exynos 5 Octa 5410 chip combines four processors based on ARM’s latest Cortex-A15 processor design, which incorporates four low-power Cortex-A7 CPUs. The Cortex-A15 is ARM’s latest processor design and succeeds the previous Cortex-A9 core, which was used in popular smartphones like Apple’s iPhone and the Galaxy S3. Samsung said the eight-core chip provides a balance of power and performance, with the high-power cores kicking in only when necessary.

The board has an Imagination Technologies PowerVR SGX544MP3 graphics processor, 2GB of low-power DDR3 DRAM, two USB 3.0 ports and four USB 2.0 ports. Other features include Wi-Fi, Ethernet and optional Bluetooth. Google’s Android 4.2 operating system is preloaded, and support for other Linux distributions like Ubuntu is expected soon. The board has already been benchmarked on Ubuntu 13.04.

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SanDisk Debuts Wireless Flash Drive

SanDisk on Monday announced a line of wireless flash drives that can hold up to 64GB of data.

The new drives include the Connect Wireless Flash Drive — a thumb drive — and the Connect Wireless Media Drive, a larger, but still pocket-sized storage device. The Connect Wireless Flash Drive comes in 16GB and 32GB capacities; the Connect Wireless Media Drive comes in 32GB and 64GB capacities.

The Connect Wireless Flash drive is 3.07-in. x 1.04-in. x 0.54-in. The Connect Wireless Media Drive is 2.6-in. x 2.6-in. x 0.52-in.

The Connect Wireless drive family allows users to not only store but share and stream files across multiple mobile devices. They offer up to eight simultaneous device connections and three media streams, and support separate streams of 720p video content at 2MB/sec to three or five devices concurrently (for the Flash Drive and Media Drive, respectively).

According to a SanDisk spokesman, video streaming performance isn’t affected by multiple streams because device limits are set at a point that supports the streams without degradation. Devices can connect to the drives up to 150 feet away.

The Connect Wireless drives work with all iOS and Android devices, and Kindle Fire tablets, as well as PC and Mac computers. The drives are compatible with Windows 8, Windows 7, Windows Vista, Windows XP and Mac OS 10.6 or higher

Movies, music, photos and documents can be loaded onto the wireless drives by simply dragging and dropping the files, which can then be accessed via the SanDisk Connect apps. Those apps are available for download from the App Store, Google Play Store and the Amazon Appstore for Android.

The drives contain an internal router, so no external router or Internet connection is needed to stream media. In order to use the drives, mobile device users simply download SanDisk’s Connect App.

The drives run on lithium-ion batteries. A single charge provides up to four hours of wireless streaming, with streaming data protected by Wi-Fi Password Protection (WPA2).

“With the new SanDisk Connect product line, we’re raising the bar on what consumers can expect from personal storage,” said Dinesh Bahal, vice president for product marketing for SanDisk.

The SanDisk Connect Wireless Flash Drive is available in 16GB or 32GB capacities for $49.99 and $59.99, respectively. In the U.S., it is available for preorder on Amazon.com, Newegg.com and Micro Center, with availability at Best Buy starting in August. It will also be available for preorder on Amazon.com in Germany and UK.

The SanDisk Connect Wireless Media Drive has a retail price of $79.99 for 32GB or $99.99 for 64GB storage capacity. It is available for preorder in the U.S. on Amazon.com, with availability in Germany and UK in the fourth quarter of 2013.

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Will Lenovo Release A Phablet?

Windows Phone may not be taking the world by storm, but it is a very interesting alternative for anyone who’s not in love with iOS or Android.

Now it seems Redmond’s fledgling platform is about to get its first phablet, courtesy of Lenovo. The device reportedly features a quad-core application processor and a 1080p screen. The screen size is estimated at 4.7 to 5 inches.

This would make it the biggest Windows Phone device to date, although it doesn’t sound very big or “phabletish” by Android standards. The biggest currently available WP8 phone is Samsung’s Ativ Si8750, with 4.8-inch 720p screen.

Nokia is Microsoft’s top hardware partner and it has been rumored to be working on a Windows phablet of its own. However, the persistent rumors have not panned out, at least not yet.

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Will The FBI Ditch Blackberry?

Samsung Electronics Co Ltd is close to signing a deal to sell its popular line of Galaxy devices to the U.S. Federal Bureau of Investigation, sources familiar with the situation said late last  Friday.

The deal would be a boost for Samsung, which is increasingly seeking to cater to the needs of government agencies, a niche long dominated by Canadian smartphone maker BlackBerry Ltd.

The FBI, with more than 35,000 employees, at present uses mainly BlackBerry devices. It is unclear whether the agency plans to replace all BlackBerry equipment with Galaxy models or whether it will use hardware from both companies.

A spokeswoman for the FBI declined to comment on the matter, saying that the selection of its new smartphones is part of an active acquisition process and any current discussions are proprietary to the government.

The imminent deal was initially reported by the Wall Street Journal late on Thursday. The WSJ also said Samsung is close to signing a smaller order for its devices with the U.S. Navy, citing people familiar with the matter.

Representatives of BlackBerry and Samsung declined to comment. BlackBerry emphasized, however, that it regards its operating system as the best in the market in terms of security features.

“The security of mobile devices is more important now than it has ever been before,” BlackBerry’s chief legal officer, Steve Zipperstein, said in an interview. “It is fair to ask why in this context anyone would consider moving from the gold standard in security, which is the BlackBerry platform.”

In May, the U.S. Pentagon cleared Samsung’s Android mobile devices and a new line of BlackBerry devices powered by the BB10 operating system for use on Defense Department networks.

Samsung has been pushing hard to convince government agencies and corporate clients that its Galaxy devices, powered by Google Inc’s Android operating system, can meet their stringent security needs.

The South Korean company hopes that the Pentagon clearance and the imminent deal with the FBI will help boost sales to security-conscious clients including banks and law firms.

Some analysts remain skeptical about whether Android can meet all security requirements of such clients, and note that the FBI itself has highlighted some vulnerabilities of the platform.

“The Android operating system hasn’t been secured properly,” said Rob Enderle, principal analyst with Enderle Group, noting that Samsung has layered technology on top of the operating system in an attempt to make its Galaxy devices safer.

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MS Office Demand Fizzles

After a promising start, downloads of Microsoft’s free Office for the iPhone quickly nosedived, as the latest data from a mobile app analytics company showed.

But at least 200,000 copies of the small suite — iPhone versions of Word, Excel and PowerPoint — were downloaded in the first six days.

Distimo, a Dutch firm that tracks app store market data for several platforms, including Apple’s iOS, Google’s Android, and Microsoft’s Windows 8 and Windows Phone, said Office Mobile for the iPhone debuted in the No. 10 spot on June 15, the day after Microsoft launched the free app.

That was Office Mobile’s peak: On June 16, Office Mobile slipped to the No. 19 position among all free iPhone apps, then continued to slide throughout the week of June 17-23, starting that seven-day stretch at No. 36, falling to No. 86 by Friday, June 21, and ending at No. 299 on June 23.

From June 24 to July 6, Office Mobile was not on Distimo’s leaderboard, which lists only the top 400 downloaded apps.

The number of downloads of Office Mobile for iPhone is unknown — Distimo requires a paid account to show developers the estimated downloads of their apps and those of competitors, and did not reply to questions Sunday — but the tally was probably significant.

According to Distimo,  to place in the App Store’s No. 10 spot, an app must average 72,000 downloads daily. Office Mobile was ranked No. 10 on June 15. Apps ranked at No. 50 averaged 23,000 downloads daily: Office Mobile held position at No. 50 or lower for five consecutive days.

Those numbers implied that at least 200,000 copies of Office Mobile were downloaded in the six days between June 15 and June 20.

Likewise, the sharp decline of Office Mobile’s position in the App Store’s free list after just a week hints at a pent-up demand that was quickly satisfied.

Although rumors of Office on iOS had circulated since the iPad’s 2010 introduction, they heated up last November when reports claimed Microsoft would launch a mobile version of the suite this year and tie the software to Office 365. At the time, most analysts agreed that Office 365 was the smart move because it could boost interest in the subscription concept Microsoft has bet will result in more, and more regular, revenue from its Office cash cow.

Linking Office on iOS to Office 365 would also let Microsoft avoid the Apple “tax,” the 30% cut that Apple takes from all App Store sales.

Only Office 365 subscribers can use Office Mobile. Subscriptions range from the consumer-grade Office 365 Home Premium, which costs $100 annually, to several business plans that start at $150 per user per year and climb to $264 per user per year.

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Malware Infections On Android Rising

An increasing number of Android phones are infected with mobile malware programs that are capable of turning the handsets into spying devices, according to a report from Kindsight Security Labs, a subsidiary of telecommunications equipment vendor Alcatel-Lucent.

The vast majority of mobile devices infected with malware are running the Android operating system and a third of the top 20 malware threats for Android by infection rate fall into the spyware category, Kindsight said in a report released Tuesday that covers the second quarter of 2013.

The Alcatel-Lucent subsidiary sells security appliances to ISPs (Internet service providers) and mobile network operators that can identify known malware threats and infected devices by analyzing the network traffic.

Data collected from its product deployments allows the company to compile statistics about how many devices connected to mobile or broadband networks are infected with malware and determine what are the most commonly detected threats.

The malware infection rate for devices connected to mobile networks is fairly low, averaging at 0.52%, Kindsight said in its report. These infected devices include mobile phones as well as Windows laptops that use a mobile connection through a phone, a 3G USB modem or a mobile hotspot device.

In January the number of infected mobile phones accounted for slightly more than 30% of all infected devices connected to mobile networks, but by June they grew to more than 50%.

The vast majority of infected mobile phones run Android. Those running BlackBerry, iOS and other operating systems represent less than 1% of infected mobile devices, Kindsight said.

When calculated separately, on average more than 1% of Android devices on mobile networks are infected with malware, Kindsight said in its report.

The malware threat most commonly seen on Android devices was an adware Trojan program called Uapush.A that sends SMS messages and steals information, Kindsight said. Uapush.A was responsible for around 53% of the total number of infections detected on Android devices.

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BlackBerry’s Secure Goes To iOS

BlackBerry continues to expand its support for Android and iOS with Secure Work Space, which separates work and personal apps and data, as the device maker tries to hold on to enterprise users by becoming more platform neutral.

Remaining relevant in a world where more than 9 out of 10 smartphones shipped are based on either Google’s Android or Apple’s iOS isn’t easy for BlackBerry. But the company still has fans in enterprise IT departments and hopes to remain an option for users by continuing to embrace the two dominant platforms. The company can already manage devices based on Android and iOS, and support for BlackBerry Messenger is on the way.

BlackBerry announced Secure Work Space in March and has now made good on a promise to ship it before June 30. The software is an add-on to BlackBerry Enterprise Service (BES) 10, and it adds a managed container to protect corporate data and applications running on Android and iOS devices.

Users get integrated email, calendar and contacts, as well as secure browser access to intranets and document editing capabilities. Data is protected both when stored on the device and when transferred to and from enterprise servers, according to BlackBerry.

“The concept is right and very similar to what AT&T offers with Toggle. Creating two different “personas” on mobile devices is becoming a best practice for enterprises. Buying it from BlackBerry is probably most relevant for enterprises that have a major commitment to BlackBerry 10 and BES 10,” said Leif-Olof Wallin, research vice president at Gartner.

On BlackBerry 10 smartphones, BlackBerry has tightly integrated a personal and a work environment with the Balance feature.

BlackBerry is far from the only vendor that has adopted this concept. One competitor is Good Technology, which on Tuesday announced a whole host of new applications compatible with its Dynamics Security Mobility platform, which includes support for both app wrapping and encrypted app containers. The list of newcomers includes Mobility for SAP and remote access app Splashtop.

But for those interested in Secure Work Space, which is based on software from OpenPeak, the BES 10 server software is free to download. Annual client access licenses for Secure Work Space are $99 per year and device. For enterprises that want to get their feet wet, the platform is also available as a 60-day free trial bundle that includes device management for BlackBerry 10, iOS and Android devices, as well as Secure Work Space licenses for 50 users.

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Will SoftBank Raise The Stakes?

SoftBank Corp President Masayoshi Son may get a less than enthusiastic reception when he comes to the United States this week to meet Sprint Nextel Corp’s major shareholders, as he tries to drum up support for the Japanese company’s proposed takeover of the No. 3 U.S. wireless service provider.

SoftBank’s billionaire founder, who proposed a $20 billion deal for a 70 percent stake in the U.S. wireless carrier, said on Tuesday that he would discuss the deal with shareholders in a bid to fight off rival Dish Network, a U.S. satellite TV provider, which offered Sprint a $25.5 billion bid.

The executive for the Japanese mobile operator may have a tough time selling the deal, as several shareholders have told Reuters that SoftBank would need to raise its bid in order to win their vote at Sprint’s June 12 shareholder meeting.

Two big Sprint shareholders, Paulson & Co and Omega Advisors, have publicly said the Dish offer looks better than SoftBank’s. Other shareholders said on Tuesday that they would go to meet Son during his trip but they were skeptical about his arguments against Dish.

While Dish’s offer would provide more cash upfront to shareholders, Son has argued that Dish would not be good for the company as it would require Sprint to take on a heavy debt load. He also promises a July 1 close for the deal and warned that Dish regulatory approval may not come until 2014.

Robert Lynch, the director of research for Westchester Capital Management, which owned over 14 million shares in Sprint at the end of December, said that the prospect of a quicker deal close would not be enough to win over his company’s vote.

“We think right now that Dish has a better offer on the table. We think SoftBank’s going to have to improve their offer,” Lynch said, noting that SoftBank’s comments about the prospective debt leverage from a Dish deal were overdone.

“We think the leverage is manageable. We think there are synergies here. While raising the leverage is something we looked at we think its not as big of a obstacle as SoftBank is saying,” Lynch said.

A big Sprint investor who asked not to be named said they were happy to meet with Son while he is in the United States but that they were hoping to convince him to raise his bid.

“If Mr. Son wants to own Sprint he will have to raise his bid,” said the person from a top 25 Sprint shareholder who did not want to be quoted by name ahead of the meeting.

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Adobe Reader Security Issue Found

McAfee has discovered a vulnerability in Adobe’s Reader program that allows people to track the usage of a PDF file.

“Recently, we detected some unusual PDF samples,” McAfee’s Haifei Li said in a blog post. “After some investigation, we successfully identified that the samples are exploiting an unpatched security issue in every version of Adobe Reader.”

The affected versions of Adobe Reader also include the latest “sandboxed” Reader XI (11.0.2).

McAfee said that the issue is not a “serious problem” because it doesn’t enable code execution, however it does permit the sender to see when and where a PDF file has been opened.

This vulnerability could only be dangerous if hackers exploited it to collect sensitive information such as IP address, internet service provider (ISP), or even the victim’s computing routine to eventually launch an advanced persistent threat (APT).

McAfee said that it is unsure who is exploiting this issue or why, but have found the PDFs to be delivered by an “email tracking service” provider.

The vulnerability works when a specific PDF JavaScript API is called with the first parameter having a UNC-located resource.

“Adobe Reader will access that UNC resource. However, this action is normally blocked and creates a warning dialog,” Li said. “The danger is that if the second parameter is provided with a special value, it changes the API’s behavior. In this situation, if the UNC resource exists, we see the warning dialog.

“However, if the UNC resource does not exist, the warning dialog will not appear even though the TCP traffic has already gone.”

McAfee said that it has reported the issue to Adobe and is waiting for their confirmation and a future patch. Adobe wasn’t immediately available for comment at the time of writing.

“In addition, our analysis suggests that more information could be collected by calling various PDF Javascript APIs. For example, the document’s location on the system could be obtained by calling the Javascript “this.path” value,” Li added.

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