Malware Turns Computers Into Cellular Antenna

A team of Israeli researchers have improved on a way to steal data from air-gapped computers, thought to be safer from attack due to their isolation from the Internet.

They’ve figured out how to turn the computer into a cellular transmitter, leaking bits of data that can be picked up by a nearby low-end mobile phone.

While other research has shown it possible to steal data this way, some of those methods required some hardware modifications to the computer. This attack uses ordinary computer hardware to send out the cellular signals.

Their research, which will be featured next week at the 24th USENIX Security Symposium in Washington, D.C., is the first to show it’s possible to steal data using just specialized malware on the computer and the mobile phone.

“If somebody wanted to get access to somebody’s computer at home — let’s say the computer at home wasn’t per se connected to the Internet — you could possibly receive the signal from outside the person’s house,” said Yisroel Mirsky, a doctoral student at Ben-Gurion University and study co-author.

The air-gapped computer that is targeted does need to have a malware program developed by the researchers installed. That could be accomplished by creating a type of worm that infects a machine when a removable drive is connected. It’s believed this method was used to deliver Stuxnet, the malware that sabotaged Iran’s uranium centrifuges.

The malware, called GSMem, acts as a transmitter on an infected computer. It creates specific, memory-related instructions that are transmitted between a computer’s CPU and memory, generating radio waves at GSM, UMTS and LTE frequencies that can be picked up by a nearby mobile device.

The GSMem component that runs on a computer is tiny. “Because our malware has such a small footprint in the memory, it would be very difficult and can easily evade detection,” said Mordechai Guri, also a doctoral student at Ben-Gurion.

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Can MB Challenge Tesla?

On the heels of Tesla announcing a home and commercial battery product line, Mercedes-Benz unveiled its own brand of energy storage products for those with solar systems to store surplus power.

The Mercedes-Benz energy storage plants for private use are available for order now and are expected to ship in September.

The batteries were first developed for cars, but Mercedes-Benz said the energy storage units “meet the very highest safety and quality standards” for home use.

Up to eight battery modules with an energy capacity of 2.5 kWh can be combined into an energy storage plant with a capacity of 20 kWh.

“Households with their own photovoltaic systems can thus buffer surplus solar power virtually free of any losses,” the carmaker said in a statement.

What wasn’t announced by Mercedes-Benz was information about the size of or pricing for the new batteries.

In May, Tesla announced its Powerwall batteries for home use and its Powerpack batteries for commercial use. Today, Tesla CEO Elon Musk announced his company would double the power output of the Powerwall batteries but keep their prices the same.

Tesla’s Powerwall batteries will go from having a two-kilowatt (kW) steady power output and 3.3kW peak output to a 5kW steady output and 7kW peak output, Musk said. The price of the batteries will remain the same: $3,000 for the 7kW/hour (KWh) daily cycle version and $3,500 for the 10kWh backup UPS version. Total installation cost will run around $4,000, according to Musk.

Up to nine Powerwall battery units can be daisy-chained together on a wall to provide up to 90kWh of power.

The average U.S. household uses about 20 kWh to 25 kWh of power every day, according to GTM Research.

Tesla Energy’s new commercial-grade battery is called the Powerpack, and will sell in 100kWh modules for $25,000 each. Musk said the Powerpack can scale infinitely, even powering factories and small cities.

Mercedes-Benz’s batteries, being produced by subsidiary Deutsche Accumotive, are its first industrial-scale lithium-ion units, and they’ve already been tested “on the grid,” the company said.

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Cisco To Launch Smart City

Officials from networking giant Cisco Systems and Kansas City, Mo., have signed a letter of intent to build out a new network for smart city services.

Elements of the project call for designing mobile apps for citizen access, digital interactive kiosks, smart street lights and video surveillance in an area called the city’s innovation district.

The project is designed to complement the city’s build out of a two-mile downtown streetcar path, Cisco said in a statement.

Kansas City, Mo. and its neighbor, Kansas City, Kans., are already getting plenty of outside attention from tech giant Google, which picked the area for its first deployment of Google Fiber, an initiative to install fiber optic cable there and in other cities.

Google won’t say how many households are connected to Google Fiber in the area, but it has already installed 6,000 miles of fiber optic cable. Meanwhile, cable provider Time Warner has provisioned 11,000 Wi-Fi hotspots for its Internet customers to use from mobile devices in various Kansas City area locales, including the popular eight-block restaurant and bar district on the edge of downtown called the Power & Light District.

While some citizen groups have been concerned that Google Fiber isn’t reaching enough low-income families in the area with gigabit fiber, there’s a general recognition by city officials that people of all income levels use smartphones and other wireless devices fairly widely. That can only help the Cisco initiative with Kansas City for wireless services.

Kansas City, Mo. Mayor Sly James said the initiative with Cisco promises to connect city services and information with visitors and residents “like never before.”

Third-party app developers will also have an opportunity to build unique and innovative apps for public use.

Cisco will use its Smart+Connected Communities reference architectures to evaluate the initiative and will work with the city and a business consultancy called Think Big Partners to manage a “living lab” incubator for the tech startup community.

Wim Elfrink, Cisco’s executive vice president of industry solutions, credited city leaders with leading the “charge on innovation in the Midwest.”

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Panasonic Drops Plasma

Panasonic has announced it will discontinue production of plasma display panels (PDP) next month and close three factories that were building the HDTVs.

The company will stop selling plasma TVs for consumer use and PDP-related products for commercial use, such as Interactive Plasma Displays, with the current line of TVs. It expects to stop business operations at three of its display plants — the Amagasaki P3 Factory, the Amagasaki P5 Factory and the Amagasaki P4 Factory — by the end of March 2014.

Samsung and LG continue to produce plasma display televisions, but theirs are lower-end or entry-level models; they have generally put development dollars into LCD TVs, according to Paul Gray, a research analyst with NPD DisplaySearch.

“Samsung and [LG] were at best uncommitted to PDP,” Gray said in a blog post. And as for Panasonic, Gray said its “PDP research team had to counter every move in LCD and translate it to their technology…. Inevitably, they slowly lost ground.”

Since 2000, Panasonic has been the leading PDP maker. It led the global flat-panel display market by using PDP for large displays and LCD screens for small- and medium-sized displays. Only three years ago, Panasonic claimed 40% of the plasma display market.

In 2010, plasmaaccounted for 40% of flat panel TVs; this year, PDPs are expected to represent only 5% of the flat-panel market, according to according to market research firm NPD DisplaySearch.

Over the past two years, Panasonic has lost $15 billion through investments in flat-panel TV production, according to financial reports.

Plasma displays have increasingly lost market share to LCD TVs as they moved to LED backlights that narrowed the performance gap between the two technologies.

“With the rapid development of large-screen LCDs, and facing the severe price competition in the global market brought on by the Lehman Shock in September 2008, the company consolidated production in the Amagasaki P4 Factory, made a shift towards commercial applications and worked to improve the earnings of the business,” Panasonic said in a recent statement.

Panasonic will now focus its attention on “non-TV applications” and is moving to reduce its fixed costs for production of both plasma and LCD panels.

The move away from plasma HDTVs is reminiscent of the video tape wars of the 1970s and 1980s.

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Court Sides With Aereo

Streaming television service Aereo does not infringe the copyrights of over-the-air TV stations, and a request from several stations to shutter the New York-based service isn’t warranted, an appeals court has ruled.

The U.S. District Court for the Southern District of New York was right to deny a request for a preliminary injunction from Fox, ABC, WNET and other TV stations, the U.S. Court of Appeals for the Second Circuit ruled Monday.

The TV stations had argued Aereo, a service that allows subscribers to record and play over-the-air TV programs on Internet-connected devices, violated their so-called public performance right, their exclusive right in U.S. copyright law to “to perform the copyrighted work publicly.”

But Judge Christopher Droney, writing for the appeals court majority, noted that Aereo makes use of technology already found by courts to be legal. The service combines Aereo-designed mini TV antennas, DVRs, and a Slingbox-like streaming service, he noted.

Aereo users, by making personal copies of TV programs for their own use, were not creating public performances, Droney added.

The TV stations “have not demonstrated that they are likely to prevail on the merits on this claim in their copyright infringement action,” Droney wrote in rejecting the request for an injunction against the service. “Nor have they demonstrated serious questions as to the merits and a balance of hardships that tips decidedly in their favor.”

Aereo praised the decision. The decision “again validates that Aereo’s technology falls squarely within the law, and that’s a great thing for consumers who want more choice and flexibility in how, when and where they can watch television,” Chet Kanojia, Aereo’s CEO and founder, said in a statement.

Lawyers for the TV stations weren’t immediately available for comment.

Digital rights group Public Knowledge cheered the ruling, saying it is a “victory for consumer choice and video innovation.”

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