Should Encryption Be The Norm?

Encryption should be a matter of priority and used by default. That’s the message from the Internet Architecture Board (IAB), the worldwide body in charge of the internet’s technology infrastructure.

The IAB warned in a statement that “the capabilities and activities of attackers are greater and more pervasive than previously known”.

It goes on to say: “The IAB urges protocol designers to design for confidential operation by default. We strongly encourage developers to include encryption in their implementations, and to make them encrypted by default.

“We similarly encourage network and service operators to deploy encryption where it is not yet deployed, and we urge firewall policy administrators to permit encrypted traffic.”

The purpose, the IAB claims, is to instill public trust in the internet after the myriad high-profile cases in which computer traffic has been intercepted, ranging from bank details to email addresses and all points in between.

The news will be unwelcome to the security services, which have repeatedly objected to initiatives such as the default encryption in iOS8 and Android L, claiming that it is in the interest of the population to retain the right to intercept data for the prevention of terrorism.

However, leaked information, mostly from files appropriated by rogue NSA contractor Edward Snowden, suggests that the right of information interception is abused by security services including the UK’s GCHQ.

These allegations include the collection of irrelevant data, the investigation of cold cases not in the public interest, and the passing of pictures of nude ladies to colleagues.

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New Data Suggest IT Hiring Increasing

Whenever IT hiring increases, as it did last month, the default explanation from analysts is this: The economy is improving.

That might be true, and it may well explain the U.S. Department of Labor’s report today that showed the U.S., overall, added 214,000 jobs last month.

Of that total employment gain, IT hiring grew by 7,800 jobs in October, compared with a gain of 6,900 jobs in September, according to TechServe Alliance, an IT industry group.

Another IT labor analyst group, Janco Associates, calculated last month’s IT gains at 9,500 jobs.

Government data can be reported in different ways, depending on which job categories are included in the IT job estimates, and it is why analysts report job numbers differently.

Hiring trends are also affected by Labor Department adjustments, and the government’s adjusted data adds nearly 25,000 telecom jobs over the past two months, according to Janco. Because of this adjustment, Janco termed the recent growth in IT over the past several months “explosive,” while TechServe put last month’s results as “modestly stronger.”

There is no one reason for October’s gain. An improving economy may be at the heart of any answer. Independent of the government numbers, Computer Economics, in a recent report on contingent versus full-time hiring, said it is seeing a drop in the use of contract workers at large companies and more reliance on full-time workers, which is a sign of an improving economy.

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Silk Road 2.0 Shutdown

U.S. governmnent authorities said they have shut down the successor website to Silk Road, an underground online drug marketplace, and charged its alleged operator with conspiracy to commit drug trafficking, computer hacking, money laundering and other crimes.

Blake Benthall, 26, was arrested last Wednesday in San Francisco and was expected to make an initial court appearance in federal court there later on Thursday.

The charges against Benthall carry a maximum sentence of life in prison.

A lawyer for Benthall could not immediately be identified.

Silk Road 2.0 was launched late last year, weeks after authorities had shuttered the original Silk Road website in October and arrested its alleged owner, Ross Ulbricht, who went by the online alias, Dread Pirate Roberts.

“Let’s be clear – this Silk Road, in whatever form, is the road to prison,” Manhattan U.S. Attorney Preet Bharara, whose office is prosecuting both cases, said in a statement.

Benthall, known as “Defcon” online, became the operator of Silk Road 2.0 in December, one month after an unnamed co-conspirator launched the site, according to prosecutors.

Silk Road 2.0 provided an online bazaar where users across the world could buy and sell drugs, computer hacking tools and other illicit items, using the digital currency Bitcoin as payment, authorities said.

As of September, the site was generating at least $8 million a month in sales, they said.

The government’s investigation included an undercover agent who was able to infiltrate the administrative staff of the website and interact directly with Benthall, prosecutors said.

Ulbricht, 30, has pleaded not guilty and is scheduled for trial in New York in January.

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New Malware Targeting Apple Devices

Palo Alto Networks Inc  has uncovered a new group of malware that can infect Apple Inc’s  desktop and mobile operating systems, underscoring the increasing sophistication of attacks on iPhones and Mac computers.

The “WireLurker” malware can install third-party applications on regular, non-jailbroken iOS devices and hop from infected Macs onto iPhones through USB connector-cables, said Ryan Olson, intelligence director for the company’s Unit 42 division.

Palo Alto Networks said on Wednesday it had seen indications that the attackers were Chinese. The malware originated from a Chinese third-party apps store and appeared to have mostly affected users within the country.

The malware spread through infected apps uploaded to the apps store, that were in turn downloaded onto Mac computers. According to the company, more than 400 such infected apps had been downloaded over 350,000 times so far.

It’s unclear what the objective of the attacks was. There is no evidence that the attackers had made off with anything more sensitive than messaging IDs and contacts from users’ address books, Olson added.

But “they could just as easily take your Apple ID or do something else that’s bad news,” he said in an interview.

Apple, which Olson said was notified a couple weeks ago, did not respond to requests for comment.

Once WireLurker gets on an iPhone, it can go on to infect existing apps on the device, somewhat akin to how a traditional virus infects computer software programs. Olson said it was the first time he had seen it in action. “It’s the first time we’ve seen anyone doing it in the wild,” he added.

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Twitter To Allow Monet Tweets

One of France’s largest banks is partnering with social network Twitter Inc. to allow its customers to transfer money via tweets.

The move by Groupe BPCE, France’s second largest bank by customers, coincides with Twitter’s own foray into the world of online payments as the social network seeks new sources of revenue beyond advertising.

Twitter is racing other tech giants Apple  and Facebook to get a foothold in new payment services for mobile phones or apps. They are collaborating and, in some cases, competing with banks and credit card issuers that have run the business for decades.

The bank said last month it was prepared to offer simple person-to-person money transfers via Twitter to French consumers, regardless of what bank they use, and without requiring the sender know the recipient’s banking details.

“(S-Money) offers Twitter users in France a new way to send each other money, irrespective of their bank and without having to enter the beneficiary’s bank details, with a simple tweet,” Nicolas Chatillon, chief executive of S-Money,  BPCE’s mobile payments unit, said in the statement.

Payment by tweets will be managed via the bank’s S-Money service, which allows money transfers via text message and relies on the credit-card industry’s data security standards.

BPCE and Twitter declined to provide further details ahead of a news conference in Paris later today to unveil the service.

Last month, Twitter started trials of its own new service, dubbed “Twitter Buy”,  to allow consumers to find and buy products on its social network.

The service embeds a “Twitter Buy” button inside tweets posted by more than two dozen stores, music artists and non-profits. Burberry, Home Depot, and musicians such as Pharrell and Megadeth are among the early vendors.

Twitter’s role to date has been to connect customers rather than processing payments or checking their identities.

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Will Verizon Throttle Users?

Verizon Wireless backed away from a widely criticized plan to slow down the connections of heavy data users with unlimited LTE plans.

The carrier had announced in July it would extend a practice it calls network optimization to unlimited LTE subscribers starting in October. Network optimization targets the top 5 percent of data users on the network when a cell site is under the heaviest demand, and slows down those users’ network performance. Verizon had already applied the practice to the top users of its 3G network.

“We’ve greatly valued the ongoing dialogue over the past several months concerning network optimization and we’ve decided not to move forward with the planned implementation of network optimization for 4G LTE customers on unlimited plans,” the carrier said in a statement on Wednesday. “Exceptional network service will always be our priority and we remain committed to working closely with industry stakeholders to manage broadband issues so that American consumers get the world-class mobile service they expect and value.”

U.S. Federal Communications Commission Chairman Tom Wheeler attacked the plan in a letter to Verizon, suggesting it was a ploy to get customers to switch from their unlimited plans to ones with a cap on monthly data usage. Verizon no longer sells new unlimited plans but allows subscribers with those plans to keep them.

“I know of no past Commission statement that would treat as ‘reasonable network management’ a decision to slow traffic to a user who has paid, after all, for ‘unlimited’ service,” Wheeler wrote in the late July letter to Verizon Wireless President and CEO Dan Mead.

Digital rights group Public Knowledge also attacked so-called data throttling, as well as practices by AT&T, Sprint and T-Mobile USA.

The showdown demonstrated the tension over increasing demand for mobile data, which carriers say puts a strain on their networks. Among other things, that demand has led operators to seek ever more spectrum and apply network management techniques they say are necessary to keep serving all subscribers well. Though LTE makes much more efficient use of the airwaves than 3G does, LTE networks are serving a rapidly growing number of subscribers.

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Mobile Carriers Dash To Enter FCC Auction

Three of the four largest U.S. mobile operators and satellite provider Dish Network Corp plan to bid in the Federal Communications Commission’s November auction of airwaves, according to initial applications released on Wednesday.

As expected, the largest U.S. wireless carrier Verizon Communications Inc, No. 2 AT&T Inc, No. 4 T-Mobile US Inc and Dish appeared to be the largest companies to indicate an interest in bidding in the upcoming auction of frequencies known as AWS-3.

Applications from Northstar Wireless LLC and SNR Wireless LicenseCo LLC reported they had entered bidding agreements with Dish, which had indirect ownership interest in both companies.

Northstar’s disclosures showed direct and indirect ownership interest by Alaska Native corporation Doyon Ltd and indirect ownership interest by financial firm Catalyst Investors. Asset manager BlackRock Inc had membership shares in SNR, according to the documents.

T-Mobile and AT&T did not appear to plan joint bids with other companies, and T-Mobile’s Kathleen Ham, vice president of federal regulatory affairs, said the carrier had no such agreements with any company.

A Verizon spokesman did not respond to inquiries about potential joint bidding and Dish representatives declined comment beyond confirming the submission of its application, citing FCC’s anti-collusion rules.

A total of 80 entities submitted initial applications. Interested parties, which may or may not actually bid for wireless licenses in the auction, included smaller U.S. companies such as Bluegrass Wireless LLC, Guam-based wireless company Docomo Pacific Inc and individual spectrum investors.

Scheduled to begin on Nov. 13, the auction is expected to raise at least $10 billion and will include airwaves previously occupied by multiple federal users, including the Department of Homeland Security.

Dish applied to bid in the auction as American AWS-3 Wireless I LLC and disclosed joint bidding arrangements with SNR and Northstar, which in turn had to disclose ownership and other information.

SNR listed former FCC Wireless Bureau Chief John Muleta, now CEO of consulting firm Atelum LLC, as a contact. Muleta, reached late on Wednesday, declined comment, citing FCC’s restrictions.

Northstar’s disclosures listed Allen Todd, assistant secretary at Doyon, a Fairbanks-based Alaska Native Regional Corporation with numerous affiliates in various fields including oil and gas land drilling. Todd could not be reached for comment on Wednesday.

SNR’s and Northstar’s, as well as AT&T’s, initial application appeared to be incomplete, which can be caused by small bureaucratic omissions. Of the 80 applications, 47 were deemed incomplete and have to be properly finished by Oct. 15 to allow the companies to participate.

All initial applications have to put down an upfront payment by Oct. 15 to confirm participation.

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FBI Worried About Encryption

The U.S. Federal Bureau of Investigation expressed some concerns about moves by Apple and Google to include encryption on smartphones, the agency’s director has stated.

Quick law enforcement access to the contents of smartphones could save lives in some kidnapping and terrorism cases, FBI Director James Comey said in a briefing with some reporters. Comey said he’s concerned that smartphone companies are marketing “something expressly to allow people to place themselves beyond the law,” according to news reports.

An FBI spokesman confirmed the general direction of Comey’s remarks. The FBI has contacted Apple and Google about their encryption plans, Comey told a group of reporters who regularly cover his agency.

Just last week, Google announced it would be turning on data encryption by default in the next version of Android. Apple, with the release of iOS 8 earlier this month, allowed iPhone and iPad users to encrypt most personal data with a password.

Comey’s remarks, prompted by a reporter’s question, came just days after Ronald Hosko, president of the Law Enforcement Legal Defense Fund and former assistant director of the FBI Criminal Investigative Division, decried mobile phone encryption in a column in the Washington Post.

Smartphone companies shouldn’t give criminals “one more tool,” he wrote. “Apple’s and Android’s new protections will protect many thousands of criminals who seek to do us great harm, physically or financially. They will protect those who desperately need to be stopped from lawful, authorized, and entirely necessary safety and security efforts. And they will make it impossible for police to access crucial information, even with a warrant.”

Representatives of Apple and Google didn’t immediately respond to requests for comments on Comey’s concerns.

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Blackberry Loss Shrinks

BlackBerry Ltd reported a smaller quarterly loss on Friday and is showing encouraging signals about its endangered smartphone business as well as its software and services sales, spurring a more than 4 percent jump in its shares.

The Canadian company, a smartphone pioneer pushed to the margins by Apple’s iPhone and devices running Google’s Android software, is now focusing more on software and services than on hardware as it works through a long turnaround.

On the services front, the company reported a huge number of conversions in its second quarter to its heavily promoted new device management platform. But BlackBerry’s hardware unit also offered hopeful news, posting an adjusted profit for the first time in five quarters, helped by lower manufacturing costs and strong demand for its low-end Z3 handsets in emerging markets.

“This is the first time in a long time that we have actually made money on hardware,” Chief Executive John Chen told reporters, while hinting at plans to unveil new phones at Mobile World Congress in Barcelona in 2015. “We think we can continue on that track, so hardware is no longer going to be a drag to the margin and the earnings.”

The Waterloo, Ontario-based company’s revenue in North America rose from the previous quarter, but sales slipped elsewhere. Its total revenue was down more than 40 percent from a year earlier.

“They’re taking all the right steps, which is great. It’s encouraging to see,” said BGC Partners analyst Colin Gillis. “Now we’ve got to see what Chen can do about the revenue decline.”

BlackBerry shares were up 5.2 percent at C$11.45 on the Toronto Stock Exchange and up 4.6 percent at $10.26 on Nasdaq.

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HTC To Make the Next Google Nexus Tablet

Google Inc has chosen HTC Corp to develop and deliver its upcoming 9-inch Nexus tablet, the Wall Street Journal reported, citing people familiar with the matter.

Google had been mulling HTC as a potential Nexus tablet partner since last year and HTC engineers have been flying to the Googleplex in Mountain View in recent months to work on the project, the report said.

Google’s decision to pick HTC reflects its long-term strategy of building a broad base of partners from device to device to prevent any one manufacturer from gaining a monopoly, the report said.

That may also be one of the reasons why Google chose HTC over bigger rivals Samsung Electronics Co Ltd, maker of the Nexus 10 tablet.

Google and HTC declined to comment on the report.

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