Wall Street Journal 'also hacked'

31 January 2013 Last updated at 17:56 ET

Hackers from China have infiltrated the computer systems of the Wall Street Journal (WSJ), in the second reported attack on a major US news outlet.

The Journal says the hackers were trying to monitor its China coverage.

The New York Times reported earlier that Chinese hackers had "persistently" penetrated its systems for the last four months.

Beijing has been accused by several governments and companies of carrying out cyber espionage for many years.

China's foreign ministry dismissed the New York Times' accusations as "groundless" and "totally irresponsible".

"China is also a victim of hacking attacks. Chinese laws clearly forbid hacking attacks, and we hope relevant parties takes a responsible attitude on this issue," said spokesman Hong Lei.

'Ongoing issue'

The Journal's publisher, Dow Jones & Co, released a statement on Thursday saying hacking attacks related to its China coverage were "an ongoing issue".

"Evidence shows that infiltration efforts target the monitoring of the Journal's coverage of China, and are not an attempt to gain commercial advantage or to misappropriate customer information," a spokeswoman for the newspaper said.

"We continue to work closely with the authorities and outside security specialists, taking extensive measures to protect our customers, employees, journalists and sources.

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• China was widely believed to be the source of major cyber attacks between 2006 and 2011 targeting 72 organisations including the International Olympic Committee, the UN and security firms
• In 2011, Google said hackers based in Jinan province had compromised personal email accounts of hundreds of top US officials, military personnel and journalists
• South Korea blamed Chinese hackers for stealing data from 35 million accounts on a popular social network in July last year
• Chinese-based computers seized "full functional control" of computers at Nasa in 2011, the US body said
• In 2011 US media reported that Chinese-based hackers were suspected of a "significant" cyber attack on defence firm Lockheed Martin.
• Coca-cola says its systems were breached in 2009 by Beijing-backed hackers, while it was trying to buy China's Huiyuan Juice Group
• The US Pentagon said it was hacked by the Chinese military in 2007
• China says hacking is illegal under its laws and that it is a victim of such attacks itself

The paper has completed a network overhaul to bolster security, she added.

Meanwhile, the New York Times said the attacks on its systems coincided with its investigative report into claims that the family of Chinese Premier Wen Jiabao had amassed a multi-billion dollar fortune.

The report, which was dismissed as a "smear" by the Chinese government, said Mr Wen's relatives had amassed assets worth at least $2.7bn (£1.7bn) through business dealings. It did not accuse the Chinese premier of wrongdoing.

The hackers first broke into the Times' network in September, as the report was nearing completion, the paper reported.

They used methods "associated with the Chinese military" to hack the computers of David Barboza, the paper's bureau chief in Shanghai who wrote the report, and one of his predecessors, Jim Yardley.

Password theft

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The BBC's Damian Grammaticas: "On the day it (NY Times) published, its computers came under attack"

Internet security firm Mandiant, which was hired by the Times to trace the attack, followed the hackers' movements for four months, to try to establish a pattern and block them.

The hackers installed malware which enabled them to access any computer using the New York Times network, steal the password of every employee, and access 53 personal computers, mostly outside the Times offices.

The Times said experts had found that the attacks "started from the same university computers used by the Chinese military to attack United States military contractors in the past".

Beijing has been accused by several governments, foreign companies and organisations of carrying out extensive cyber espionage for many years, seeking to gather information and to control China's image.

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EA denies games encourage violence

31 January 2013 Last updated at 09:12 ET By Leo Kelion Technology reporter

The boss of Electronic Arts (EA) has denied there is any link between video game content and "actual violence".

John Riccitiello spoke out on the subject during a conference call with bank analysts following his firm's latest earnings forecast.

But he acknowledged that his industry did face a "perception issue".

The topic has become the focus of political debate in the US following shootings in a Connecticut school and a Colorado cinema.

After the incidents, the National Rifle Association (NRA) - which itself had been accused of culpability - said the video game industry sowed "violence against its own people".

Republican congresswoman Diane Franklin subsequently proposed a sales tax on violent titles, saying the money should be used to "finance mental health programs and law enforcement measures to prevent mass shootings".

Former Green Party presidential candidate Ralph Nader went further, accusing games publishers of being "electronic child molesters" and demanded regulation.

Research studies

Vice President Joseph Biden was recently tasked with heading an inquiry into the causes of gun violence and specifically looked at the issue of computer games.

He concluded: "There is no hard data as to whether or not these excessively violent video games in fact cause people to engage in behaviour that is antisocial, including using guns."

However, during an online video interview, he also referred to a 2008 research paper published by the American Academy of Pediatrics.

It said that a study of US and Japanese youth had suggested playing violent video games was "a significant risk factor for later physically aggressive behaviour".

The research team behind the report also published a follow-up paper in 2010, in the American Psychological Association's journal, saying there should be "public education" so parents and schools could address the issue.

But the vice president said the studies had not made "the next connection" - that game playing actually led to violent acts - and concluded that more research was needed.

Wrestling with critics

As well as being EA's chief executive, Mr Riccitiello also chairs the US's Entertainment Software Rating Board - which decides what age guidance and warnings should go on games packaging - and the Entertainment Software Association (ESA) lobby body.

He said his industry had been "stunned and horrified" by the recent shootings but denied it had had a role in these or other attacks.

"There's been an enormous amount of research done in the entertainment field about looking for linkages between entertainment content and actual violence, and they haven't found any," he said.

"Hundreds of millions of dollars of the research has been done [and] has been unable to find a linkage because there isn't one.

"Now, having said all that, and with all, if you will, humility about the world we live in, we understand that while there may not be an actual problem, given all the finger pointing going on in the press, there appears to be the perception of a problem, and we do have to wrestle with that."

He added that other members of the ESA were also ready to "step up" to tackle the issue.

His comments follow other calls for the video games industry to do more to engage in the debate.

The PC-games-focused site Rock Paper Shotgun recently published an editorial suggesting those involved in the industry had tried to avoid discussing the issue in order to avoid fuelling the cause of critics with "knee-jerking agendas". But it added it was "irresponsible" not to try to convince the NRA and others that they were wrong.

"There is no-one who needs to know about the effects of video game violence more than gamers themselves," the site's co-editor John Walker told the BBC.

"So far all studies have shown that games do not cause a person to become violent, but that doesn't mean we should become blase about it or dismiss it out of hand.

"Gamers and producers need to frequently talk about the subject and be seen to openly discuss both the positive and negative effects gaming may have."

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Samsung gains tablet market share

31 January 2013 Last updated at 22:42 ET

Samsung doubled its share of the tablet PC market in the last three months of 2012, research firm IDC has said.

Samsung, which makes the Galaxy range of tablets, sold 7.9 million units, up from 2.2 million a year ago, taking its market share to 15.1%.

Market-leader and iPad-maker Apple saw its share slide to 43.6% from 51.7%, despite also seeing a jump in sales.

The two have been competing to get a greater share of the tablet PC market, seen as key to their overall growth.

Global shipments of tablet PCs surged 75% in the final quarter of 2012 to a record 52.5 million units.

"We expected a very strong fourth quarter, and the market didn't disappoint," said Tom Mainelli, research director of tablets at IDC.

"New product launches from the category's top vendors, as well as new entrant Microsoft, led to a surge in consumer interest and very robust shipments totals during the holiday season."

The numbers are in sharp contrast with the traditional personal computer market, which saw shipments decline during the quarter for the first time in more than five years.

Continue reading the main story

There is no question that Microsoft is in this tablet race to compete for the long haul"

End Quote Ryan Reith IDC

Growing competition

The tablet PC market is expected to grow further in the coming years.

A number of firms have launched tablets in an attempt to cash in on the booming sector.

Among the latest entrants has been Microsoft, which launched its Surface tablets, powered by the Windows 8 system, late last year.

However, IDC said that the response to the firm's tablets was "muted at best". Microsoft shipped nearly 900,000 unit in the three months to end of December.

IDC said that higher prices of its products had hurt Microsoft's sales.

However, it added that the firm was likely be a key player in the sector in the long term.

"There is no question that Microsoft is in this tablet race to compete for the long haul," said Ryan Reith, program manager of Mobile Device Trackers at IDC.

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'Child porn' virus levies fines

1 February 2013 Last updated at 06:12 ET

German federal police are warning about a computer virus that accuses victims of viewing "juvenile pornography".

It also displays an image that it claims reveals images of child sexual abuse have been viewed on a computer.

The Windows virus locks a computer and only returns control to its owner on payment of a 100 euro (£86) fine.

It purports to be collecting cash on behalf of German copyright authorities and the country's national computer security agency.

The virus amounted to "digital extortion" and victims should not pay up, said German police.

The warning about the novel strain of ransomware was issued by Germany's Federal Criminal police office (the Bundeskriminalamt or BKA).

The ransomware version found by the BKA uses a pop-up window that says the machine has been locked down due to "unauthorised network activity". The window is crafted to look like it has been put together by Germany's Federal Office for Information Security (BKI) and its society for prosecution of copyright infringement (GVU).

'Emotional blackmail'

Text in the window claims that images of child sexual abuse as well as pirated content have been found on the machine. Also displayed is an picture of a child which it claims reveals illegal images have been viewed.

Rik Ferguson, director of security research at Trend Micro, said it was the first time he had heard of ransomware displaying images that users were accused of harbouring.

"It seems that they are attempting to increase the pressure of this kind of emotional blackmail," he told the BBC.

Germany's BKA said users should not pay the fine "under any circumstances" and added that neither the BKI or GVU collected cash in this way from those suspected of viewing illegal images or pirating content. Instead, users should use anti-virus and other security software to clean up their PC and deal with the virus.

"This is a form of digital extortion," said the BKA in its alert about the virus.

Ransomware, which tries to make victims pay an on-the-spot fine, is becoming more prevalent but most strains simply accuse people of pirating movies or music. Others scramble data that is only unscrambled when a fee is paid.

Security firm Symantec said it was seeing more and more strains of ransomware and said it could be "highly profitable" for its creators. It estimated that ransomware makers were already making about $5m (£3m) a year from such malicious code.

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Plans to 3D print Moon building

1 February 2013 Last updated at 07:21 ET

Architects Fosters and Partners have revealed designs for a building on the Moon that could be constructed from material already on its surface.

An inflatable structure would be transported from Earth, then covered with a shell built by 3D printers.

The printers, operated by robots, would use soil from the Moon, known as regolith, to build the layered cover.

The proposed site for the building is the southern pole of the Moon.

It is designed to house four people and could be extended, the firm said.

In 2010 a team of researchers from Washington State University found that artificial regolith containing silicon, aluminium, calcium, iron and magnesium oxide could be used by 3D printers to create solid objects.

The latest plans are the result of a collaboration between a number of organisations including the European Space Agency.

The consortium tested the practicalities of using a printer on the Moon by setting up a D-shape 3D printer, which are used to print very large house-sized structures, in a vacuum chamber with simulated lunar material.

'Fascinating and unique'

"As a practice, we are used to designing for extreme climates on Earth and exploiting the environmental benefits of using local, sustainable materials," said Xavier De Kestelier, a partner in the firm's specialist modelling group.

"It has been a fascinating and unique design process, which has been driven by the possibilities inherent in the material."

Buildings on this planet by the architect firm include Wembley Stadium, the World Trade Center in New York and Beijing airport.

Last week US company Deep Space Industries (DSI) announced plans to use asteroid material for manufacture by harvesting them and using 3D printers sent into space.

The company is also developing a bespoke 3D printer called MicroGravity Foundry for the purpose, it said, and hopes to be ready to start production by 2020.

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Ofcom to open up airwaves for 4G

1 February 2013 Last updated at 08:10 ET

UK mobile operators Vodafone and 3 have asked for permission to run 4G mobile services over the airwaves they use for existing mobile services.

Currently EE is the the only UK operator that can run 4G services over those parts of the radio spectrum.

Telecoms regulator Ofcom has started a public consultation exercise on the proposal that runs until 29 March.

Ofcom is currently running an auction to sell off unused airwaves that can support 4G services.

The two mobile operators want to be able to pipe futuristic 4G services over parts of the radio spectrum that, on their networks, are reserved for earlier generations of mobile technology.

Among other things, 4G promises to improve web browsing speeds while on the move and make a host of other mobile applications much more feasible.

Delayed response

EE is the only UK operator offering 4G and now rivals want Ofcom to let them use their existing spectrum for 4G services. In its consultation document, the regulator proposes to "liberalise" all parts of the radio spectrum used for those 2G and 3G services so they can be used to support 4G.

"This will meet a long standing objective to liberalise all mobile licences so that there are no regulatory barriers to the deployment of the latest available mobile technology," it said in a statement.

It later added that: "The only reason we allowed EE to use its existing spectrum for 4G services was because it made an application to us to do this. This decision was taken after conducting a thorough assessment of how competition might be affected."

On 23 January, the UK operators began bidding in an auction that will decide how new spectrum to support 4G is shared out. The auction was originally supposed to take place in 2012.

Matthew Howett, an analyst at market research firm Ovum, said Ofcom's consultation was welcome, but he questioned whether it would help operators launch 4G services quicker.

Most would be unlikely to use the spectrum they already own for those services in the "short term", he said,

"They would first need to be cleared of their existing use through a process of refarming that would probably take years rather than months," he said. "So the spectrum that is currently being auctioned by Ofcom will most likely be used for Vodafone, O2 and Three's initial deployment of 4G services."

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Google glasses exposed in FCC report

1 February 2013 Last updated at 08:43 ET

New details of Google's forthcoming augmented reality headset have emerged in documents published by a US regulator.

A test report describes video playing on the device alongside audio running to a "vibrating element".

The description tallies with a patent filing suggesting it plays sound via "bone-conduction" tech rather than earbuds.

Developers are due to receive a test edition of the headset later this year.

Google has already begun holding hands-on events for selected software writers in San Francisco and New York ahead of the release.

It has previously said it intended to sell the eyewear to consumers before the end of 2014.

Wearable tech

Google is not the only firm betting on the appeal of head-up display units.

Motorola Solutions announced its HC1 headset computer system in October. The voice and gesture-controlled rig is targeted at maintenance engineers, the emergency services and other organisations.

Oakley recently launched Airwave - ski goggles with built-in sensors which provide information on an in-built screen about an owner's speed, the size of their jumps and what music they are listening to.

Several companies also showed off prototype "smart glasses" at the recent Consumer Electronics Show in Las Vegas.

They included Vuzix's Android-powered M100 smartphone display system featuring a small screen and video camera which is due for release before the end of 2013.

Microsoft has also filed a patent for a set of digital glasses that overlay information on top of the user's view, which it suggested could be used at sports matches and theatres.

Analysts at Juniper Research have predicted the international market for smart eyewear and other mobile wearable devices could be worth more than $1.5bn (£950m) by 2014, up from $800m this year.

But in truth it is still unclear how big the appetite for head-worn computers will be, and Google's Project Glass - which benefits from the company's strong tech brand - is expected to play a critical role in determining whether the sector succeeds or fails.

Vibrating audio

The Federal Communications Commission papers - which were first spotted by the Engadget news site - offer a few new hints about how the search giant's gadget will work.

They describe data being sent to the small screen display via wi-fi and Bluetooth using a radio unit manufactured by Broadcom.

The equipment is also said to be able to store video files internally and can be recharged by plugging a power connector into the computing unit on the right-hand arm of the glasses' frame.

However, the most arresting detail is the suggestion that audio is provided without the user needing to wear headphones which might disturb how they hear ambient sounds.

Last week Google filed a patent application entitled Wearable Computing Device with Indirect Bone-Conduction Speaker.

It described how an element on the frame could be made to vibrate in order to send sound to a user's inner ear via their skull.

The roots of the innovation date back at least to the 18th Century, when the composer Ludwig van Beethoven - who suffered from hearing loss - listened to his compositions by placing a rod between his piano and his head to transmit the vibrations.

The technology was later developed to help the military monitor communications at the same time as being aware of surrounding noise. It has also been used by some hearing aids, and headsets designed for swimmers and cyclists.

Reviews suggest the audio quality offered can be decent but not as good as traditional headphones.

A spokeswoman for Google said she was unable to provide further comment at this time, but more details may emerge at the firm's I/O conference in May.

Last year Google's co-founder Sergey Brin made headlines by showing off prototypes in a stunt that saw skydivers provide live video pictures from the devices as they plummeted towards the developers forum.

Concept videos have also shown the device bringing up maps, weather reports and video chats - but it is not clear whether this will be possible with the first generation.

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Sony gives up on MiniDisc systems

1 February 2013 Last updated at 12:19 ET

Sony has announced it is to deliver its last MiniDisc stereo next month.

It marks an end to the firm's support for the system which it launched in 1992.

The format only ever had limited success outside of Japan and was ultimately doomed by the rise of recordable CDs and MP3 players.

The news coincided with a teaser video released by the company promoting a PlayStation event with the caption: Be the first to know.

The Wall Street Journal reported that "people familiar with the matter" said that the successor to the PlayStation 3 video games console would be unveiled at the New York press conference on 20 February.

However, a spokesman was unable to provide any further information.

Long lasting

Sony had intended MiniDisc to become users' format of choice as a higher quality digital replacement for cassettes.

The firm had already promoted another digital format - the Digital Audio Tape - but the complex nature of the equipment needed to play it put it out of the reach of most consumers.

Data was stored on rewritable magneto-optical disks 2.5in (64mm) in diameter housed for protection in a square plastic shell.

They initially offered to hold up to 74 minutes of audio which was boosted to 80 minutes.

Sony claimed that recordings would be safe for more than 30 years without risk of degradation.

However, experiments by users revealed that holding magnets close to the disks would erase their recordings.

The original MiniDisc machines were still not cheap - the original recorder cost $750 (£475) while a playback-only version cost $549 when launched in the US in December 1992.

They proved a flop with fewer than 50,000 units sold over the following year.

Customers looking for high-quality recordings were more interested in CDs which were catching on at the time.

However, MiniDiscs did turn out to be more popular in Japan where CDs were more expensive and teenagers proved receptive to MD singles.

Niche market

A series of expensive marketing campaigns and a key role in the science-fiction movie Strange Days - in which user's memories were recorded onto the disks - did not help the format catch on in the West. Neither did slashing the price of recorders to a third of their original cost by 1998.

Sony tried to reboot the format in 2004 as Hi-MD, offering more than three times the amount of storage - but by that point CD-R recorders, Apple's iPod and other MP3 players had captured consumers' attention.

"Despite the fact it never took off as a mainstream platform - truth be told many people never really understood it - it still carved some niches," said Chris Green, principal technology analyst at Davies Murphy Group Europe.

"Sound engineers and media professionals loved to use it to record samples, jingles and interviews - it's very easy to use MiniDisc equipment to edit audio on the fly - and they continue to stockpile the players and disks."

Sony ended shipments of its MiniDisc portable Walkman players in 2011.

The decision to halt production of MD-based hi-fi systems effectively marks its exits from the sector, although it will continue to make the cartridges.

However, the Asahi newspaper said other manufacturers such as Onkyo will continue to make MD equipment for remaining aficionados.

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Google settles French news dispute

1 February 2013 Last updated at 14:36 ET

Google has agreed to create a 60m euro ($82m; £52m) fund to help French media organisations improve their internet operations.

It follows two months of negotiations after local news sites had demanded payment for the privilege of letting the search giant display their links.

The French government had threatened to tax the revenue Google made from posting ads alongside the results.

The US firm had retorted it might stop indexing French papers' articles.

In addition to the creating the Digital Publishing Innovation Fund, Google has agreed to give French media access to its advertising platforms at a reduced cost.

The compromise allows it to avoid paying an ongoing licensing fee.

"France is proud to have reached this agreement with Google, the first of its kind in the world," the French president's office said on Twitter.

One analyst told the BBC that the President's comment was telling.

"It appears Google have opened the door to other countries' newspapers doing the same thing," said Ian Maude, head of internet at Enders Analysis.

"This sets a precedent which other publishers may pursue in their own negotiations."

Filed papers

After the news was announced, Eric Schmidt, Google's chairman, wrote on his company's blog: "These agreements show that through business and technology partnerships we can help stimulate digital innovation for the benefit of consumers, our partners and the wider web."

The search giant has also made efforts to resolve a separate European dispute.

It has filed proposals with the European Commission stating how it intends to deal with complaints made by Microsoft and more than a dozen other companies that it had broken competition rules.

The European regulator will now consider Google's proposals, which have not been disclosed.

If it rejects them and finds the firm has broken its rules, it has the power to fine the firm up to 10% of its global turnover which could amount to more than $4bn (£2.5bn).

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Twitter account hack affects 250,000

2 February 2013 Last updated at 07:11 ET

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The BBC's technology correspondent Rory Cellan-Jones is one of those affected

A quarter of a million Twitter users have had their accounts hacked in the latest of a string of high-profile internet security breaches.

Twitter's information security director Bob Lord said about 250,000 users' passwords had been stolen, as well as usernames, emails and other data.

Affected users have had passwords invalidated and have been sent emails informing them.

Mr Lord said the attack "was not the work of amateurs".

He said it appeared similar to recent attacks on the New York Times and the Wall Street Journal.

The US newspapers reported that their computer systems had been breached by China-based hackers.

'Not isolated'

Twitter has 200 million active users.

Continue reading the main story

"Start Quote

There is still little information about the nature of the attack or why just one small section of users is in danger"

End Quote

Mr Lord said in a blog post Twitter had discovered unauthorised attempts to access data held by the website, including one attack that was identified and stopped moments after it was detected.

"This attack was not the work of amateurs, and we do not believe it was an isolated incident," he wrote.

Mr Lord did not say who had carried out the attack, but added: "The attackers were extremely sophisticated, and we believe other companies and organisations have also been recently similarly attacked."

"For that reason we felt that it was important to publicise this attack while we still gather information, and we are helping government and federal law enforcement in their effort to find and prosecute these attackers to make the internet safer for all users."

Internet security specialist Graham Cluley warned Twitter's announcement that emails would be sent to users may prompt a spate of spam emails "phishing" for sensitive information.

He says people should be cautious about opening emails which appear to be from Twitter.

Continue reading the main story

Analysis

Philip Hampsheir Business reporter

---

The biggest worry for most of Twitter's 200 million active users is not this attack per se, but the additional new "phishing" scams the attack has already inspired.

Since Twitter users now know to be on the lookout for emails asking them to change their passwords, criminals are sending out very similar messages.

If users click on the links in those they risk - once again - having their account hacked.

Don't click on links in emails asking you to change your password.

Go directly to the web site, log in normally, and change it using the instructions without clicking on email links.

"You have to be careful if you get hold of one of these emails because, of course, it could equally be a phishing attack - it could be someone pretending to be Twitter.

"So, log into the Twitter site as normal and try and log in to your account and, if there's a problem, that's when you actually have to try and reset your password."

Another expert in online security, Professor Alan Woodward from the University of Surrey, warned users to be wary of messages sent them by the hackers via Twitter itself.

"They can then send what's called direct messages," he said. "They can put malicious links in those."

"It really looks like it's coming from someone you know and you might respond to it, you'd go to the site and all of a sudden you find that actually you've got some malware on your machine which is then stealing your bank details or whatever."

On Thursday the New York Times linked the attack to a story it published alleging relatives of former Premier Wen Jiabao controlled assets worth billions of dollars.

China's foreign ministry dismissed the New York Times' accusations as "groundless" and "totally irresponsible".

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