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Is Qualcomm In Trouble?
Qualcomm’s activities in China may lead to regulatory penalties for the chip vendor, this time from the U.S. Securities and Exchange Commission over bribery allegations.
The company is currently facing an anti-monopoly probe from Chinese authorities for allegedly overcharging clients. Qualcomm has also said that the SEC may also consider penalizing the company, as part of an anti-corruption investigation.
The SEC’s Los Angeles Regional Office has made a preliminary decision to recommend that the SEC take action against Qualcomm for violating anti-bribery controls, the company said in its second quarter report. The accusations involve Qualcomm offering benefits to “individuals associated with Chinese state-owned companies or agencies,” the report added.
Both the SEC and the U.S. Department of Justice have been probing the company over alleged violations of the nation’s Foreign Corrupt Practices Act.
In cooperation with those official investigations, Qualcomm said it’s found instances of preferential hiring, and giving gifts and other benefits to “several individuals” with China’s state-owned companies. The gifts and benefits amounted to less than US$250,000 in value.
If the SEC takes action against Qualcomm, penalties could include giving up profits, facing injunctions, and other monetary penalties, the company said. Earlier this month, Qualcomm filed a submission with the U.S. regulator, countering any claims of wrongdoing.
Qualcomm is facing the investigations at a time when China is increasingly become a bigger part of its business. The nation is the world’s largest smartphone market, and more Chinese device manufacturers are expanding globally.
Last year, however, Chinese regulators began investigating Qualcomm due to complaints from industry groups. The company was allegedly abusing its market position and charging higher fees for its patent licensing business. In November, Chinese authorities conducted two surprise raids of Qualcomm offices in China for documents.
Chinese regulators could decide to penalize Qualcomm by confiscating financial gains made, and even imposing a fine of 1 to 10 percent on its revenues for the prior year, the company said in its quarterly report.
Microsoft Issues New Policies
Microsoft Corp, under fire for accessing an employee’s private Hotmail account to prove he was illegally passing computer code to a blogger, has said it will now refer all suspicious activity on its email services to law enforcement.
The decision, announced by head lawyer Brad Smith on Friday, reverses Microsoft’s initial reaction to complaints last week, when it laid out a plan to refer such cases to an unidentified former federal judge, and proceed to open a suspect email account only if that person saw evidence to justify it.
“Effective immediately, if we receive information indicating that someone is using our services to traffic in stolen intellectual or physical property from Microsoft, we will not inspect a customer’s private content ourselves,” said Smith, in a blog post on the software company’s website. “Instead, we will refer the matter to law enforcement if further action is required.”
Microsoft – which has recently cast itself as a defender of customer privacy – was harshly criticized last week by civil liberties groups after court documents made public in the prosecution of Alex Kibkalo in Seattle federal court for leaking trade secrets showed that Microsoft had accessed the defendant’s email account before taking the matter to legal authorities.
The company said last week its actions were within its legal rights under the terms of use of its email services, but has now acknowledged that its actions raised concerns about customer privacy.
The issue is poignant for Microsoft, which routinely criticizes Google Inc for serving up ads based on the content of users’ Gmail correspondence.
It has also been campaigning for more transparency in the legal process through which U.S. intelligence agencies can get access to email accounts following the revelations of former National Security Agency contractor Edward Snowden.
“While our own search was clearly within our legal rights, it seems apparent that we should apply a similar principle and rely on formal legal processes for our own investigations involving people who we suspect are stealing from us,” said Smith in his blog. “Therefore, rather than inspect the private content of customers ourselves in these instances, we should turn to law enforcement and their legal procedures.”
Did Sears Suffer A Data Breach?
Sears Holdings Corp acknowledged it has launched an investigation to determine whether it was the victim of a security breach, following Target Corp’s revelation at the end of last year that it had suffered an unprecedented cyber attack.
“There have been rumors and reports throughout the retail industry of security incidents at various retailers and we are actively reviewing our systems to determine if we have been a victim of a breach,” Sears spokesman Howard Riefs said in a statement on Friday.
“We have found no information based on our review of our systems to date indicating a breach,” he added.
He did not say when the operator of Sears department stores and Kmart discount stores had begun the investigation or provide other information about the probe.
Sears Holdings Corp operates nearly 2,500 retail stores in the United States and Canada.
Bloomberg News reported on Friday that the U.S. Secret Service was investigating a possible secret breach at Sears, citing a person familiar with the investigation. The report did not identify that source by name.
The Bloomberg report said that its source did not disclose details about the scope or timing of the suspected breach.
A spokesman for the U.S. Secret Service declined comment when Reuters asked if the agency was investigating a possible breach at Sears.
The Secret Service is leading the U.S. government’s investigation into last year’s attack on Target, which the company has said led to the theft of some 40 million payment card numbers as well as another 70 million pieces of personal data.
FTC Defends Google Decision
January 25, 2013 by admin
Filed under Around The Net
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The FTC defended its decision to let Google carry on with its anti-trust-like antics, while other regulations in civilized nations are planning to put the boot in.
The US Federal Trade Commission reached a settlement with Google which really did little to stop the company using its dominance to push down search results from its competitors. The move attracted considerable criticism because it followed a letter from US senators to go easy on the search engine because it was good for US jobs. We guess they mean the jobs of US senators who Google paid campaign contributions.
Google promised to change the ways it presents some search results and runs search advertising, but was exonerated of the results bias claims. Rivals including Yelp and Microsoft claimed that Google had favored its own product results over those of its competitors and called for the anti-trust case. What makes the case look more suspect is that the EU is less frightened of actually fining Google or forcing it to behave. Indeed indications from Brussels are that it has not only agreed with the rival’s complaints but will do something about it if Google does not pull finger.
But FTC chairman Jon Leibowitz told Talking Points Memo that the agency’s decision was legally sound and would be beneficial to competition and consumers. Under facts we found, all five of us, from liberal Democrat to conservative Republican, agreed that the evidence militated against an anti-trust case,” Leibowitz told TPM.
The fact that we managed to have both Google and Google’s rivals unhappy, in an odd way that’s maybe unique to Washington, that puts us in the right place substantively, he claimed. When asked if Google’s $25 million lobbying budget for the duration FTC’s investigation helped, he said that lobbying makes the companies feel good and lobbyists feel good.
“At the end of the day, whether you want to say lobbying had any influence, or cancelled itself out because there was lobbying on both sides, if you’re going to do what lobbyists want you to do in a regulatory agency, you’re not doing your job.”
Microsoft Seizes Botnet Servers
Microsoft Corp scored a win in efforts to fight online banking fraud, saying it had seized several servers used to steal login names and passwords, disrupting some of the world’s most sophisticated cybercrime rings.
The software giant said on Monday that its cybercrime investigation group also took legal and technical actions to fight notorious criminals who infect computers with a prevalent malicious software known as Zeus.
By recruiting computers into networks called botnets, Zeus logs the online activity of infected machines, providing criminals with credentials to access financial accounts.
“We’ve disrupted a critical source of money-making for digital fraudsters and cyber thieves, while gaining important information to help identify those responsible and better protect victims,” said Richard Boscovich, senior attorney for the Microsoft Digital Crimes Unit, which handled the investigation in collaboration with the financial industry.
Microsoft’s Digital Crimes Unit is worldwide team of investigators, lawyers, analysts and other specialists who fight cybercrime. A year ago they helped U.S. authorities take down a botnet known as Rustock that had been one of the biggest producers of spam e-mail. Some security experts estimated that in its heyday Rustock was responsible for half the spam in junk email bins.
Did Hackers Attack Water System?
November 28, 2011 by admin
Filed under Around The Net
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Federal investigators are investigating a report that hackers managed to remotely shut down a utility’s water pump in central Illinois last week, in what could be the first known foreign cyber attack on a U.S. industrial system.
The November 8 incident was described in a one-page report from the Illinois Statewide Terrorism and Intelligence Center, according to Joe Weiss, a prominent expert on protecting infrastructure from cyber attacks.
The attackers obtained access to the network of a water utility in a rural community west of the state capital Springfield with credentials stolen from a company that makes software used to control industrial systems, according to the account obtained by Weiss. It did not explain the motive of the attackers.
He said that the same group may have attacked other industrial targets or be planning strikes using credentials stolen from the same software maker.
The U.S. Department of Homeland Security and the Federal Bureau of Investigation are examining the matter, said DHS spokesman Peter Boogaard.
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Acer Is The Latest Victim Of Computer Hacking
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Taiwanese PC manufacturer Acer is investigating a cyber hacker attack that stole customer data from its Packard Bell division in Europe, the company said.
Acer said the security breach was limited to customers’ names, addresses, phone numbers, emails, and system serial numbers. No credit card data was stolen, it said. Acer provided no other details about the breach, and said the investigation was ongoing.
News of the breach was reported several days ago, after a hacker group called Pakistan Cyber Army claimed to have stolen the personal data of about 40,000 people from an Acer server in Europe. Acer did not comment on the attack at the time.
The Hacker News had published screen shots of the personal data and some of the source code that was stolen in the security breach. It also said that the Pakistan Cyber Army would issue a press release detailing more about their motives. But so far, no new information has surfaced from the hacking group.