False Sense Of Security

New York Police Officer, Customs Officer Arrested For Trafficking Illegal Guns

"A New York Police Department officer and two of his brothers were arrested for allegedly trafficking high-powered firearms out of the United States and into the Philippines, federal law-enforcement officials announced on Friday. Rex Maralit, a 44-year-old officer assigned to police headquarters in Lower Manhattan, was arrested on charges of conspiring with his brothers to violate the Arms Export Control Act and engage in unlicensed firearms dealing, law-enforcement officials said. His brother, Wilfredo Maralit, 48, a Customs and Border Protection Officer at Los Angeles International Airport, was also arrested." Continue reading →

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Video gambling ring arrests include councilman, police chief, ex-cops

"Mr. Melocchi's machines could be found in Allegheny, Fayette, Washington and Westmoreland counties, the presentment said. Operating out of a location in an alley behind a Glassport coffee shop, Mr. Melocchi placed the devices in various businesses and allegedly struck deals with the owners to split gambling proceeds. Video gambling machines are illegal if patrons pay to play, use more chance than skill to win, and are paid off. Business owners told the grand jury that they earned between $75 and $1,000 a week from the devices." Continue reading →

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How to foil NSA sabotage: use a dead man’s switch

"It doesn't really matter if you trust the 'good' spies not to abuse their powers (though even the NSA now admits to routine abuse, you should still be wary of deliberately weakened security. It is laughable to suppose that the back doors that the NSA has secretly inserted into common technologies will only be exploited by the NSA. There are plenty of crooks, foreign powers, and creeps who devote themselves to picking away patiently at the systems that make up the world and guard its wealth and security (that is, your wealth and security) and whatever sneaky tools the NSA has stashed for itself in your operating system, hardware, applications and services, they will surely find and exploit." Continue reading →

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Personal Retirement Accounts Are Great only if You Can Stop Confiscation

"Most Western nations have huge long-run fiscal problems because of unfavorable demographics and misguided entitlement programs. That’s the bad news. The good news is that dozens of nations have fully or partially shifted to mandatory private savings as a pro-growth way of modernizing bankrupt tax-and-transfer Social Security systems. But good news in the short run doesn’t mean good news in the long run if greedy politicians decide to loot the wealth accumulated in personal retirement accounts. That’s already happened in Argentina and Hungary, and now it’s happened in Poland." Continue reading →

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Let us count the ways: How the feds (legally, technically) get our data

"It’s worth considering the various vectors of technical and legal data-gathering that high-level adversaries in America and Britain (and likely other countries, at least in the 'Five Eyes' group of anglophone allies) are likely using in parallel to go after a given target. So far, the possibilities include: A company volunteers to help (and gets paid for it). Spies copy the traffic directly off the fiber. A company complies under legal duress. Spies infiltrate a company. Spies coerce upstream companies to weaken crypto in their products/install backdoors. Spies brute force the crypto. Spies compromise a digital certificate. Spies hack a target computer directly, stealing keys and/or data, sabotage." Continue reading →

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Morgan Stanley execs mocked value of securities before sale to Taiwan bank

"Financial services giant Morgan Stanley may be facing charges it perpetrated a massive fraud in the sale of mortgage-backed securities, but no one can accuse the firm of lacking a sense of humor about it. Last month, e-mails surfaced in a 2010 New York civil fraud case showing that the firm’s executives sold the instruments to a Taiwanese bank for hundreds of millions of dollars knowing the impending collapse of the US housing market made the securities a hazardous investment – and they laughed about it." Continue reading →

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S&P calls US lawsuit retaliation for stripping AAA rating

"Standard & Poor's on Tuesday blasted a $5 billion fraud lawsuit by the U.S. government as retaliation for its 2011 decision to strip the country of its AAA credit rating. The McGraw Hill Financial unit was the only major credit rating agency to take away the United States' top rating and the only one sued by the Department of Justice for allegedly misleading banks and credit unions about the credibility of its ratings before the 2008 financial crisis. In a filing with the U.S. District Court in Santa Ana, Calif., S&P said the lawsuit attempts to punish it for exercising its First Amendment free speech rights under the U.S. Constitution but also seeks 'excessive fines' in violation of the Eighth Amendment." Continue reading →

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Strangled By Red Tape

"We’re talking about a huge cost to the economy, and it’s been getting worse for the past 12 years. If those numbers don’t make you sit up and take notice, how about these ones? Americans spend 8.8 billion hours every year filling out government forms. The economy-wide cost of regulation is now $1.75 trillion. For every bureaucrat at a regulatory agency, 100 jobs are destroyed in the economy’s productive sector. The Obama Administration added $236 billion of red tape just in 2012. Today’s Byzantine system is good for tax lawyers, accountants, and bureaucrats, but it’s bad news for America." Continue reading →

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U.S. spy chief criticizes journalists for publishing anti-encryption efforts

"The office of the director of national intelligence (ODNI), which oversees the US’s intelligence agencies, suggested the stories, simultaneously published on the front pages of the New York Times and Guardian, were 'not news', but nonetheless provided a 'road map … to our adversaries'. Privacy groups, however, said the NSA’s activities were endangering privacy and putting both US internet users and businesses users at risk. 'Even as the NSA demands more powers to invade our privacy in the name of cybersecurity, it is making the internet less secure and exposing us to criminal hacking, foreign espionage, and unlawful surveillance,' said the ACLU’s principal technologist." Continue reading →

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Bitcoin developer: Are bitcoin thieves revealing NSA back doors?

"Will bitcoin -- and the financial incentive to break bitcoin crypto -- reveal other NSA backdoors in ECDSA, SHA256, RIPEMD160, and other algorithms and libraries used by bitcoin? Thieves are likely to exploit any flaws immediately, and move stolen loot to another private key. The NSA, on the other hand, is likely to avoid exploiting any weaknesses until key moments. Thus, ironically, thieves are playing a role in securing bitcoin and associated algorithms from NSA, Chinese, Russian or mafia tampering. Was the SecureRandom() bug a now-revealed NSA backdoor? You can thank bitcoin for exposing the problem and leading to immediate fixes, and attention to weak RNG impact." Continue reading →

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