False Sense Of Security

Robber ran major drug ring from prison

"In state prison since 2004 for robbery, inmate Marsial 'Oso' Garcia still found a way to operate a major drug ring, federal authorities say. He used smuggled cellphones, authorities say. Garcia, 31, pleaded guilty last week in Oklahoma City federal court to cocaine distribution and a money-laundering conspiracy involving more than $200,000. He will be sentenced later. Beginning in November 2011, from prison, Garcia arranged with suppliers in California and elsewhere to send 'multi-pound quantities of marijuana, cocaine, methamphetamine and other illegal narcotics' to Oklahoma for distribution, according to a federal indictment against 11 other defendants." Continue reading →

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800 U.S. police round up 129 gang suspects in Mexican Mafia raid

"About 800 local, state and federal law enforcement officers arrested 129 suspects indicted on a variety of murder, extortion, racketeering, drug and weapons charges in Orange County as part of 'Operation Smokin’ Aces.' Police said they seized 22 pounds of methamphetamine, 1.5 pounds of heroin and 3 pounds of cocaine, and the FBI said undercover officers purchased 38 handguns and 29 rifles in connection with the sweep. Investigators said members of the prison gang ordered assaults on 12 inmates, including one man whose head was stapled 20 times, in the Orange County Jail for failure to pay drug taxes." Continue reading →

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Justice Department: ATF misplaced 420 million cigarettes in stings

"Government agents acting without authorization conducted dozens of undercover investigations of illegal tobacco sales, misused some of $162 million in profits from the stings and lost track of at least 420 million cigarettes, the Justice Department's inspector general said Wednesday. In one case, ATF agents sold $15 million in cigarettes and later turned over $4.9 million in profits from the sales to a confidential informant — even though the agency did not properly account for the transaction. The audit came as a new blow to a beleaguered agency still reeling from congressional inquiries into the ATF's flawed handling of the Operation Fast and Furious weapons tracking probes in Mexico." Continue reading →

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“The Fed Made It Possible For Many People To Leak It”

"Zero Hedge is publishing information from a tipster who explained how easy it was to get information into traders about the Fed monetary policy statement before it was officially released. This really sounds very similar to what happened at the BLS in the old days (the 1980s). I outlined how that went down, here. We are talking about big time money here, people made millions on the leaked information. They will also be tough to catch, especially if they used throw away phones. If no direct connection can be made between a leaker and a trader, then all a trader has to do is stick to his story that he bought on some kind of technical trading activity and who will be able to prove otherwise?" Continue reading →

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Data Broker Giants Hacked by ID Theft Service

"An identity theft service that sells Social Security numbers, birth records, credit and background reports on millions of Americans has infiltrated computers at some of America’s largest consumer and business data aggregators, according to a seven-month investigation by KrebsOnSecurity. All three victim companies said they are working with federal authorities and third-party forensics firms in the early stages of determining how far the breaches extend, and whether indeed any sensitive information was accessed and exfiltrated from their networks. The intrusions raise major questions about how these compromises may have aided identity thieves." Continue reading →

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Fake online reviews targeted by N.Y. attorney general

"It’s an online technique sometimes called 'astroturfing,' or laying down fake grass-roots excitement to help build a better online ranking for a business or product. It’s even become a full-blown racket when companies have hired freelance writers – sometimes paid up to $10 for every fake gush they tap out – to go to sites such as Citysearch, Google Local, or Yelp and praise products and businesses they've never seen, let alone tried. New York Attorney General Eric Schneiderman announced Monday that 19 local companies have fessed up to using such techniques, agreeing to pay more than $350,000 in penalties for breaking laws against false advertising and deceptive business practices." Continue reading →

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iPhone 5S fingerprint reader manages to remain secure for almost 3 days

"Germany’s Chaos Computer Club says it has cracked the protection around Apple’s fingerprint sensor on its new iPhone 5S, just two days after the device went on sale worldwide. In a post on their site, the group says that their biometric hacking team took a fingerprint of the user, photographed from a glass surface, and then created a 'fake fingerprint' which could be put onto a thin film and used with a real finger to unlock the phone. The claim, which is backed up with a video, will create concerns for businesses which see users intending to use the phone to access corporate accounts." Continue reading →

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Senator Asks if FBI Can Get iPhone 5S Fingerprint Data via Patriot Act

"The iPhone 5S reportedly stores fingerprint data locally 'on the chip' and in an encrypted format. It also blocks third-party apps from accessing Touch ID. Yet important questions remain about how this technology works, Apple's future plans for this technology, and the legal protections that Apple will afford it. I should add that regardless of how carefully Apple implements fingerprint technology, this decision will surely pave the way for its peers and smaller competitors to adopt biometric technology, with varying protections for privacy. I respectfully request that Apple provide answers to the following questions." Continue reading →

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Subprime lending execs back in business five years after crash

"Five years after the financial crisis crested with the bankruptcy of Lehman Brothers Holdings Inc., top executives from the biggest subprime lenders are back in the game. Many are developing new loans that target borrowers with low credit scores and small down payments, pushing the limits of tighter lending standards that have prevailed since the crisis. Some experts fear they won’t know where to stop. The Center for Public Integrity in 2009 identified the top 25 lenders by subprime loan production from 2005 through 2007. Today, senior executives from all 25 of those companies or companies that they swallowed up before the crash are back in the mortgage business." Continue reading →

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