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Tag: internet and www

  • UK citizen extradited to US pleads guilty to 2020 Twitter hack | CNN Business

    UK citizen extradited to US pleads guilty to 2020 Twitter hack | CNN Business

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    Reuters
     — 

    A citizen of the United Kingdom who was extradited to New York from Spain last month has pleaded guilty to cyberstalking and computer hacking schemes, including the 2020 hack of the social media site Twitter, the U.S. Justice Department said on Tuesday.

    Joseph James O’Connor, 23, was charged in both North Dakota and New York. The North Dakota case was transferred to the U.S. District Court for the Southern District of New York.

    O’Connor pleaded guilty to charges including conspiring to commit computer intrusions, to commit wire fraud and to commit money laundering.

    O’Connor, who was extradited to the U.S. on April 26, will also forfeit more than $794,000 and pay restitution to victims, prosecutors said. He faces a maximum of 77 years in prison at sentencing on June 23.

    “O’Connor’s criminal activities were flagrant and malicious, and his conduct impacted multiple people’s lives. He harassed, threatened, and extorted his victims, causing substantial emotional harm,” Assistant Attorney General Kenneth Polite said in a statement.

    Prosecutors said the schemes included gaining unauthorized access to social media accounts on Twitter in July 2020 as well as a TikTok account in August 2020. Along with his co-conspirators, O’Connor stole at least $794,000 worth of cryptocurrency.

    The July 2020 Twitter attack hijacked a variety of verified accounts, including those of then-Democratic presidential candidate Joe Biden and Tesla CEO Elon Musk, who now owns Twitter.

    The accounts of former President Barack Obama, reality TV star Kim Kardashian, Bill Gates, Warren Buffett, Benjamin Netanyahu, Jeff Bezos, Michael Bloomberg and Kanye West were also hit.

    The alleged hacker used the accounts to solicit digital currency, prompting Twitter to prevent some verified accounts from publishing messages for several hours until security could be restored.

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  • Where TikTok users may go if the app gets banned | CNN Business

    Where TikTok users may go if the app gets banned | CNN Business

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    CNN
     — 

    On the eve of a high-profile TikTok hearing this week, the company shared that it now has more than 150 million US monthly active users. But after the heated, hours-long hearing, filled with lawmakers telling TikTok’s CEO the app should be banned, some may now be wondering where all those users will go next if the social network disappears.

    The answer: probably other big American tech platforms.

    Many of the largest US social media companies have spent years copying TikTok’s features, which would make a shift away from the platform easier for its creators and users. Instagram, for example, introduced its own short-form video tool in 2020 called Reels. Snapchat has Spotlight, YouTube has Shorts and even Spotify has a TikTok-like video feed with recommended music and other content.

    “Obviously, if a ban is approved and enforced, the content, user count and engagement, and likely ad dollars for Snap, Instagram, and YouTube will increase,” said Ali Mogharabi, an analyst at financial services firm Morningstar, in a recent investor’s note.

    In other words, Washington’s efforts to crack down on TikTok over national security concerns could ultimately benefit some of the same American tech companies that Washington has scrutinized for other reasons, including their market dominance and impact on teens.

    Even if a ban does not happen, it could still benefit these companies. “This uncertainty could push some TikTok content creators to focus more on, and possibly begin, pushing their audiences to other social network platforms,” Mogharabi said.

    At least one company is already seeing a boost. Snap’s stock rose in the days leading up to TikTok’s appearance before Congress amid renewed talks among federal officials of a TikTok ban.

    At the hearing on Thursday, TikTok CEO Shou Chew was grilled by lawmakers who expressed deep skepticism about his company’s attempts to protect US user data and ease concerns about its ties to China. TikTok’s parent company, ByteDance, is based in Beijing and subject to Chinese data request laws that could require it to hand over user data to the government.

    Washington Republican Rep. Cathy McMorris Rodgers, the chair of the House Energy and Commerce Committee, opened Thursday’s hearing by telling Shou: “Your platform should be banned.” As the hearing was taking place, House Speaker Kevin McCarthy said he supports legislation that would effectively ban TikTok and Secretary of State Antony Blinken said TikTok should be “ended one way or another.”

    If that happens, Lian Jye Su, an analyst with ABI Search, believes users will follow their favorite TikTok influencers and content creators wherever they go.

    “Most users will flock to where the content creators go next,” Su said. “Instagram, Snapchat, and Youtube Shorts stand to benefit the most as content creators will still prefer places where they can monetize their content.”

    Smaller platforms have the opportunity to gain ground, too, Su said. Short-form video platform Triller, which reportedly has over 450 million users, is actively courting popular content creators from TikTok with cash bonuses, partnerships and other incentives to switch platforms. Meanwhile, Dubsmach – a Reddit-owned short video platform – and Clash, which allows people to create 21-second looping videos, are other platforms that could be increasingly appealing to creators.

    For now, talk of a TikTok ban may still be premature. The Biden administration has threatened to ban TikTok from the United States unless the app’s Chinese owners agree to spin off their share of the social media platform.

    “I strongly doubt this app will go dark,” Rep. Raja Krishnamoorthi told CNN during a primetime special about TikTok on Thursday. He said a sale is most likely.

    If the app is sold, that could complicate matters for some US tech platforms.

    “For Snap, which has a weaker network effect than Meta, a possibly more trusted US TikTok may make it more difficult to attract users away from or keep them from migrating to TikTok,” Moghaharbi wrote in the investor’s note.

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  • Arkansas governor signs sweeping bill imposing a minimum age limit for social media usage | CNN Business

    Arkansas governor signs sweeping bill imposing a minimum age limit for social media usage | CNN Business

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    Washington
    CNN
     — 

    Arkansas Gov. Sarah Huckabee Sanders has signed a sweeping bill imposing a minimum age limit for social media usage, in the latest example of states taking more aggressive steps intended to protect teens online.

    But even as Sanders signed the bill into law on Wednesday afternoon, the legislation appeared to contain vast loopholes and exemptions benefiting companies that lobbied on the bill and raising questions about how much of the industry it truly covers.

    The legislation, known as the Social Media Safety Act and taking effect in September, is aimed at giving parents more control over their kids’ social media usage, according to lawmakers. It defines social media companies as any online forum that lets users create public profiles and interact with each other through digital content.

    It requires companies that operate those services to verify the ages of all new users and, if the users are under 18 years old, to obtain a parent’s consent before allowing them to create an account. To perform the age checks, the law relies on third-party companies to verify users’ personal information, such as a driver’s license or photo ID.

    “While social media can be a great tool and a wonderful resource, it can have a massive negative impact on our kids,” Sanders said at a press conference before signing the bill.

    Utah finalized a similar law last month, raising concerns among some users and advocacy groups that the legislation could make user data less secure, internet access less private and infringe upon younger users’ basic rights.

    The push by states to legislate on social media comes after years of mounting scrutiny of the industry and claims that it has harmed users’ well-being and mental health, particularly among teens.

    Despite its seemingly universal scope, however, the new law, also known as SB396, includes numerous carveouts for certain types of digital services and, in some cases, individual companies. And although its sponsors have said the law is specifically meant to apply to certain platforms, including TikTok, parts of the legislative language appear to result in the exact opposite effect.

    In the final days of negotiation over the bill, Arkansas lawmakers approved an amendment that created several categorical exemptions from the age verification requirements. Media companies that “exclusively” offer subscription content; social media platforms that permit users to “generate short video clips of dancing, voice overs, or other acts of entertainment”; and companies that “exclusively offer” video gaming-focused social networking features were exempted.

    Another amendment carved out companies that sell cloud storage services, business cybersecurity services or educational technology and that simultaneously derive less than 25% of their total revenue from running a social media platform.

    Sen. Tyler Dees, a lead co-sponsor of the legislation, explained in remarks on the Arkansas senate floor on April 6 that the exemptions and tweaks to the bill, some of which he said were made in consultation with Apple, Meta and Google, were intended to shield non-social media services from the bill’s age requirements and to focus attention on new accounts created by children, not existing adult accounts.

    “There’s other services that Google offers … like cloud storage, et cetera,” Dees said. “So that’s really the intent of carving out — like LinkedIn, that is a social – I’m sorry, that is a business networking site, and so that’s the intent of those bills.”

    Microsoft-owned LinkedIn is apparently exempt from SB396 under a provision that carves out companies that provide “career development opportunities, including professional networking, job skills, learning certifications, and job posting and application services.”

    Other lawmakers have questioned whether the legislation — which has now become law — exempts a giant of the social media industry: YouTube, whose auto-play features and algorithmic recommendation engine have been accused of promoting extremism and radicalizing viewers.

    The confusion over YouTube appears to stem from the carveout for businesses that offer cloud storage and that make less than 25% of their revenue from social media.

    What is unclear is whether YouTube is subject to SB396 because it is a distinct company within Google whose revenue comes almost entirely from operating a social media platform, or whether it is not covered because YouTube is a part of Google and Google is exempt because it derives only a small share of its revenues from YouTube.

    In response to questions by CNN, Dees said SB396 targets platforms including Facebook, Instagram and TikTok, but omitted any mention of Google and declined to answer whether YouTube specifically would be covered by the law.

    “The purpose of this bill was to empower parents and protect kids from social media platforms, like Facebook, Instagram, TikTok and Snapchat,” Dees said in a statement. “We worked with stakeholders to ensure that email, text messaging, video streaming, and networking websites were not covered by the bill.”

    In remarks at Wednesday’s bill signing, Sanders told reporters that Google and Amazon are exempted from the law, implying that YouTube will not be subject to the age verification requirements imposed on other major social media sites.

    Meanwhile, Dees’ statement appeared to contradict the language in SB396 that purports to exempt any company that “allows a user to generate short video clips of dancing, voice overs, or other acts of entertainment in which the primary purpose is not educational or informative” — content that can be commonly found on TikTok, Snapchat and the other social media platforms Deese named.

    According to Meta spokesperson, “We want teens to be safe online. We’ve developed more than 30 tools to support teens and families, including tools that let parents and teens work together to limit the amount of time teens spend on Instagram, and age-verification technology that helps teens have age-appropriate experiences.”

    Meta “automatically set teens’ accounts to private when they join Instagram, we’ve further restricted the options advertisers have to reach teens, as well as the information we use to show ads to teens… and we don’t allow content that promotes suicide, self-harm or eating disorders,” according to the spokesperson, who added: “We’ll continue to work closely with experts, policymakers and parents on these important issues.”

    Spokespeople for Snapchat, TikTok and YouTube didn’t immediately respond to a request for comment.

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  • End of an era: Netflix DVD subscribers mourn the service’s imminent demise | CNN Business

    End of an era: Netflix DVD subscribers mourn the service’s imminent demise | CNN Business

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    CNN
     — 

    When Colin McEvoy, a father of two from Bethlehem, Pennsylvania and a self-described film fanatic, wants to watch a Bollywood film or an obscure independent movie, he often turns to Netflix – but not its popular streaming service.

    McEvoy, 39, said he’s been using Netflix’s DVD-by-mail service since 2001, just three years after it launched.

    “I remember I was in high school when I first signed up for it, and the concept was so novel, I had to really convince my dad that it was a legit service and not some sort of Internet scam,” said McEvoy, who uses an old Xbox 360 to play his Netflix DVDs. “Now I have friends who’ve seen my red Netflix envelopes arrive in the mail, and either didn’t remember what they were or couldn’t believe that I still got the DVDs in the mail.”

    Now, McEvoy is one of the DVD-by-mail holdouts mourning the service’s imminent demise. On Tuesday, Netflix announced it will send out its final red envelope on September 29, 2023. marking an end to 25 years of mailing DVDs to members. The company will continue to accept returns of customers’ remaining DVDs until October 27.

    “I’ll be sad to see the service go,” McEvoy said.

    Introduced in 1998 when Netflix first launched, the service promised an easier rental experience than having to drive to the nearest Blockbuster or Hollywood Video. The red envelopes, which have long been synonymous with Netflix itself, littered homes and dorm rooms across the country. But in 2007, Netflix began streaming content online, and gradually shifted the focus away from its original DVD business.

    Today, the idea of receiving a DVD in the mail may sound almost as outdated as receiving a dial up CD, but some longtime customers told CNN they continued to find value in the DVD option, including for its selection, pricing and added perks.

    Brandon Cordy, a 41-year-old graphic designer from Atlanta, said he stuck with DVDs because many digital rentals don’t come with special features or audio commentaries.

    There are other factors, too. Michael Inouye, an analyst at ABI Research, said some consumers may still not have access to reliable or fast enough broadband connections, or simply prefer physical media to digital, much in the way that some audio enthusiasts still purchase and collect CDs and records. Other households may also own cars that still have DVD players inside.

    For Netflix, however, the offering has made less sense in recent years. “Our goal has always been to provide the best service for our members, but as the DVD business continues to shrink, that’s going to become increasingly difficult,” co-CEO Ted Sarandos wrote in a blog post this week.

    Shutting down its DVD business could help Netflix better focus resources as it expands into new markets such as gaming as well as live and interactive content. Its DVD business has also declined significantly in recent years. In 2021, Netflix’s non-streaming revenue – mostly attributable to DVDs – amounted to 0.6% of its revenue, or just over $182 million.

    The cost to operate its DVD business may also be a factor, especially as Netflix rethinks expenses broadly amid heightened streaming competition and broader economic uncertainty. “Moving plastic discs around costs far more money than streaming digital bits,” said Eric Schmitt, senior director analyst at Gartner Research. “Removing and replacing damaged and lost inventory are also cost considerations.”

    Even before Netflix announced the news this week, some longtime subscribers said they could see the writing on the wall.

    “The inventory of available titles, while still vast, had been contracting some over the years with some movies that were once available no longer being so,” Cordy said. “Turnaround times to get a new movie or movies also started to take longer, so I knew it was only a matter of time. But I didn’t want it to end if I could help it.”

    Other DVD subscribers are hoping there may still be a happy ending.

    On Wednesday, Bill Rouhana, the CEO of Chicken Soup for the Soul Entertainment – which owns DVD rental service Redbox – told The Hollywood Reporter he hopes to purchase Netflix’s DVD business. “I’d like to buy it… I wish Netflix would sell me that business instead of shutting it down,” he said. Redbox remains popular despite the shift in streaming, but took a hit during the pandemic because of the lack of new movies and TV shows to fill the boxes.

    A Netflix spokesperson told CNN it has no plans to sell the DVD business and declined to share how it plans to dispose of the discs. But Nick Maggio, a 43-year-old elementary school teacher from Valley Stream, New York, said he hopes the company will sell their individual titles library. “I know there are several titles I’d like to get my hands on,” he said.

    For now, at least, some DVD subscribers plan to focus on watching as many DVDs as they can before the service goes away.

    McEvoy, who also subscribes to Disney+, Hulu, the Criterion channel and Mubi, said he’s determined to finish seeing every film listed in the book “1001 Movies You Must See Before You Die” with the help of Netflix.

    “I absolutely would not have been able to find all of those movies if not for the Netflix DVD service,” he said. “I only have four movies left to go.”

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  • A foldable phone, new tablet and lots of AI: What Google unveiled at its big developer event | CNN Business

    A foldable phone, new tablet and lots of AI: What Google unveiled at its big developer event | CNN Business

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    CNN
     — 

    Google on Wednesday unveiled its latest lineup of hardware products, including its first foldable phone and a new tablet, as well as plans to roll out new AI features to its search engine and productivity tools.

    The updates, announced at its annual Google I/O developer conference, come as the company is simultaneously trying to push beyond its core advertising business with new devices while also racing to defend its search engine from the threat posed by a wave of new AI-powered tools.

    In a sign of where Google’s focus currently lies, the company spent more than 90 minutes teasing a long list of new AI features before mentioning hardware updates.

    Here’s what Google announced at the event.

    Google became the latest tech company to unveil a foldable smartphone. Like other foldables, the $1799 Pixel Fold features a vertical hinge that can be opened to reveal a tablet-like display. But Google calls the Fold the thinnest foldable on the market.

    “It took some clever engineering work redesigning components like our speakers, our battery and haptics,” said George Hwang, a product manager at Google, on a call ahead of the announcement. The company packed a Pixel phone into a less than 6 mm body – about two thirds of the thickness of its other Pixel phones.

    The Pixel Fold is very much a phone first: when it’s unfolded, it opens up into a 7.6-inch screen, and moves on Google’s custom-built 180-degree hinge. That hinge mechanism is moved out entirely from under the display to improve its dust resistance and decrease the device’s overall thickness, according to the company.

    The Google Fold includes features you’d find on a Pixel, such as long exposure, unblur, magic eraser, which lets users remove unwanted or distracting object. It also has Pixel Fold-specific tools such as dual-screen live translate, which lets a user communicate in another language with the help of fast audio and text translations on the outer screen.

    Google said it optimized its top apps to take advantage of the larger screen but “there’s still work to be done” because “optimizing for a new foldable form factor takes time,” Hwang said. “It’s a process that we’re committed to and it requires steep investment with our developer partners across Android,” Hwang added.

    Google is far from the first to embrace foldables, but it’s possible it waited to launch its own version until the technology became more advanced. Early versions of the Samsung Galaxy Z Fold, for example, had issues with the screen and most apps were not well optimized for the design.

    But even now, the future for foldables remains uncertain. Most apps are still not optimized for foldable devices; prices remain very high; and Google’s chief rival, Apple, has yet to embrace the option.

    Despite great consumer interest in foldable phones — and a resurgence in 90s-style flip phones among celebrities and TikTok influencers — the foldable market is relatively small, with Samsung dominating the category, followed by others including Motorola, Lenovo, Oppo, and Huawei. According to ABI Research, foldable and flexible displays made up about 0.7% of the smartphone market in 2021, and in 2022 expected to fall just shy of 2%.

    The Pixel Fold will be available in the US, UK, Germany and Japan. The company said the device will start shipping next month.

    A look at the Google's Pixel 7a lineup

    On the surface, the 7a looks similar to the Pixel 7 and 7 Pro, with the same pixel camera bar along the back. It comes with the typical advancements you’d expect to find with any smartphone upgrade – better display, advanced camera and longer-lasting battery. But the 7a now boasts a Tensor G2 processor and a TItan M2 security chip, which brings advanced processing and new artificial intelligence features. It also offers wireless charging for the first time on an A model.

    The Pixel lineup has long been known for its cameras, and the 7a is no exception. It’s packed with upgrades, including a 64-megapixel main camera – the largest sensor on a Pixel A series to date, which will help with improved image quality, low light performance and other features. It also offers a new 13-megapixel ultra-wide camera for capturing even wider shots and a new 13-megapixel front camera. For the first time, each camera enables 4K video.

    The 7a also supports many significant Pixel features, including unblur, magic eraser and an improved Night Sight that’s two times faster and sharper than its predecessor. It also allows users to capture long exposure and enhanced zoom.

    The Pixel comes in several colors, including charcoal, snow, sea and coral, and starts at $499 via the Google Store on May 10.

    The Pixel Series A line has long been aimed at the cost conscious who want good features at a reasonable price, but its reach is limited. Google sells between eight to 10 million of the Pixel devices each year, according to ABI Research.

    “Generally, the smartphones were really meant for Google to showcase how software, and now AI capabilities, could be effectively optimized on hardware and improve the Android user experience,” said David McQueen, an analyst at ABI Research. “Google has purposely kept volume sales limited as it also has to be mindful of its relationship with other smartphone manufacturers that use the Android OS.”

    The Google Pixel tablet

    While phones were a key focus at the event, Google also refreshed other parts of its hardware lineup.

    Google introduced the Pixel Tablet, which is intended for use around the house, from turning off the lights off in the house to setting the thermostat without getting off the couch.

    The tablet, which has rounded edges and corners, comes in three colors: porcelain, hazel and rose, and starts at $499. It will be available on June 20.

    Under the hood, the 11-inch tablet is powered by Google’s Tensor G2 chips, which bring long-lasting battery life and AI features to the device. It also offers a front-facing camera, an 8-megapixel rear camera, and a charging dock.

    Google is also moving forward with plans to bring AI chat features to its core search engine amid a renewed arms race over the technology in Silicon Valley.

    The company said it is introducing the next evolution of Google Search, which will use an AI-powered chatbot to answer questions “you never thought Search could answer” and to help get users the information they want quicker than ever.

    With the update, the look and feel of Google Search results will be noticeably different. When users type a query into the main search bar, they will automatically see a pop-up an AI-generated response in addition to displaying traditional results.

    Users can now sign up for the new Google Search, which will first launch in the United States, via the Google app or Chrome’s desktop browser. A limited number of users will have access to it in the weeks ahead, according to the company, before it scales upward.

    Google is expanding access to its existing chatbot Bard, which operates outside the search engine and can help users do tasks such as outline and write essay drafts, plan a friend’s baby shower, and get lunch ideas based on what’s in the fridge.

    The tool, which was previously available to early users via a waitlist only in the US, will soon be available for all users in 120 countries and 40 languages.

    Google is also launching extensions for Bard from its own services, such as Gmail, Sheets and Docs, allowing users to ask questions and collaborate with the chatbot within the apps they’re using.

    Google also announced PaLM 2, its latest large language model to rival ChatGPT-creator OpenAI’s GPT-4.

    The move marks a big step forward for the technology that powers the company’s AI products and promises to be better at logic, common sense reasoning and mathematics. It can also generate specialized code in different programming languages.

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  • First on CNN: Pornhub asks users and Big Tech for help as states adopt age verification laws | CNN Business

    First on CNN: Pornhub asks users and Big Tech for help as states adopt age verification laws | CNN Business

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    Washington
    CNN
     — 

    In the two-minute video, adult performer Cherie Deville stares into the camera and intones soberly to viewers, for the second time in a month, that policymakers are coming for their porn.

    “Click the button below to contact your representatives before it is too late,” Deville pleads.

    The call-to-action video, launching Wednesday in multiple states, comes from Pornhub, which last month withdrew from Utah over a new law that requires adult sites to verify their users’ ages and holds them liable for serving their content to minors. Now, as similar legislation is set to take effect next month in Arkansas, Mississippi and Virginia, Pornhub is making a last-ditch effort to galvanize users there in opposition.

    It’s unclear how much Pornhub expects to achieve, as the laws have already been passed and signed. A company spokesperson told CNN it’s “certainly not our goal” to shut down the site in the three states as it did in Utah but hinted at the possibility, saying that “if necessary, we will share next steps in the coming weeks.”

    But the video campaign is only part of a broader unfolding strategy by one of the internet’s highest-profile distributors of adult material.

    The video’s release coincides with a previously unreported effort by Pornhub — and its private equity owners, Ethical Capital Partners (ECP) — to convince the world’s largest tech companies to intervene in the wider debate over age restrictions for digital porn and social media.

    In recent weeks, ECP has lobbied Apple, Google and Microsoft to jointly develop a technological standard that might turn a user’s electronic device into the proof of age necessary to access restricted online content, according to Solomon Friedman, a partner at ECP.

    One possible version of the idea, Friedman told CNN, would be for the tech companies to securely store a person’s age information on a device and for the operating system to provide websites requesting age verification with a yes-or-no answer on the owner’s behalf — allowing sites to block underage users without ever handling anyone’s personal information.

    “We are willing to commit whatever resources are required to work proactively with those companies, with other technical service providers and as well with government,” Friedman said.

    Pornhub’s simultaneous appeals to users and to Big Tech highlight the challenging position the company now finds itself in amid a wave of state legislation. Under many of these laws, adult sites are required to implement “reasonable age verification methods” that could include users submitting pictures of their photo ID, facial scans or other information, either to third-party companies or to the sites themselves.

    Minimum age requirements have emerged as a favored policy tool in statehouses across the country as lawmakers have increasingly become attuned to the potential mental health harms of unregulated social media use. But Pornhub, along with civil liberties and digital rights groups, have broadly warned of the potential pitfalls of age-verification rules.

    Those risks can include the infringement of Americans’ rights to access legal speech under the First Amendment; the leakage of personal information belonging to underage as well as overage internet users; or the loss of online anonymity that safety experts say is crucial for shielding vulnerable individuals.

    Pornhub’s outreach to Big Tech is intended to convince the companies whose operating systems power the world’s smartphones, tablets and computers that their technology is central to the future of online identity management and to draw their political might into a global policy battle that could reshape the internet for millions.

    But it is far from clear the effort is succeeding. Friedman declined to say how, or even if, the companies have responded to Pornhub’s communications. Microsoft declined to comment for this story; Apple and Google didn’t respond to requests for comment.

    Friedman characterized the discussions as being in “early stages,” though his other remarks implied the talks may be largely one-sided.

    “We are willing and ready to work with them proactively to determine best solutions and to lend any technical expertise that we possibly can, whether it be implementation or pilot projects or assistance in any way,” Friedman told CNN. “We are hoping that this dialogue bears fruit and age verification will be addressed once and for all.”

    The adult industry has famously led the charge on technological innovation before. Porn played a decisive role in the battle between the VHS and Betamax videotape platforms, facilitated the rise of online credit card transactions and helped promote streaming video technology writ large.

    Now, Pornhub’s fight could prove to be a bellwether for the growing push to enforce age verification for social media. As with the battle over adult material, debates over how to keep children and teens away from social media have raised substantial questions about user privacy and how effective age restrictions may be when determined kids inevitably try to circumvent the rules.

    The tech industry, for its part, has been making its own strides in digital identity services. In 2021, for example, Apple announced support for adding driver’s licenses from eight states to Apple Wallet. In December, Google announced it was beta testing a similar feature for Android.

    Those services, however, are designed for in-person ID checks such as at travel checkpoints or liquor stores, technology experts said, and are not set up to perform age or identity verification remotely or virtually.

    Josh Golin, executive director of Fairplay, a consumer advocacy group focused on children’s technology use, described calls for device-based age verification as an “intriguing idea” that might ease burdens on websites and internet users. But, he argued, there are less invasive ways of determining a website visitor’s age.

    “It is our position that rather than requiring new, stringent forms of age verification, that we should start by having the platforms use the data they’re already collecting to do age estimation,” Golin said, pointing to how TikTok, for example, reportedly uses behavioral cues and activity algorithms to guess whether a user may be underage.

    Any device-based approach to age verification would immediately run into issues in most households with children, where no device is ever solely used by one person or exclusively by adults, said India McKinney, director of federal affairs for the Electronic Frontier Foundation, a digital rights organization.

    “You would have to assume that children and teens weren’t borrowing their parents’ phones,” McKinney said. “And that’s sharing on purpose. You don’t have to be too sophisticated to think about teens stealing their parent’s device to get around the age-gating.”

    Meanwhile, entrusting large tech companies to be the custodians of even more personal information, and enabling them to be the effective arbiters of what internet users can see online, brings its own challenges, said Udbhav Tiwari, head of global product policy at Mozilla, maker of the popular Firefox web browser.

    Device-based age verification, Tiwari said, could have “very serious privacy connotations, because you now have the largest tech companies in the world having your government ID and all the information present in them linked to individual devices. We’ve seen Twitter use phone numbers they collected for account security for targeting ads in the past, which led to them being subjected to FTC fines.”

    Last year, Twitter agreed to pay $150 million to resolve those Federal Trade Commission allegations.

    But Pornhub argues that the alternative is a world that’s even less safe, where users seeking age-restricted content may simply go to sites without age-gates or other checks.

    “Giving your ID card every time you want to visit an adult platform is not the most effective solution,” Deville says in Wednesday’s video. “In fact, it will put children and your privacy at risk.”

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  • Welcome to the era of viral AI generated ‘news’ images | CNN Business

    Welcome to the era of viral AI generated ‘news’ images | CNN Business

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    New York
    CNN
     — 

    Pope Francis wearing a massive, white puffer coat. Elon Musk walking hand-in-hand with rival GM CEO Mary Barra. Former President Donald Trump being detained by police in dramatic fashion.

    None of these things actually happened, but AI-generated images depicting them did go viral online over the past week.

    The images ranged from obviously fake to, in some cases, compellingly real, and they fooled some social media users. Model and TV personality Chrissy Teigen, for example, tweeted that she thought the pope’s puffer coat was real, saying, “didn’t give it a second thought. no way am I surviving the future of technology.” The images also sparked a slew of headlines, as news organizations rushed to debunk the false images, especially those of Trump, who was ultimately indicted by a Manhattan grand jury on Thursday but has not been arrested.

    The situation demonstrates a new online reality: the rise of a new crop of buzzy artificial intelligence tools has made it cheaper and easier than ever to create realistic images, as well as audio and videos. And these images are likely to pop up with increasing frequency on social media.

    While these AI tools may enable new means of expressing creativity, the spread of computer-generated media also threatens to further pollute the information ecosystem. That risks adding to the challenges for users, news organizations and social media platforms to vet what’s real, after years of grappling with online misinformation featuring far less sophisticated visuals. There are also concerns that AI-generated images could be used for harassment, or to further drive divided internet users apart.

    “I worry that it will sort of get to a point where there will be so much fake, highly realistic content online that most people will just go with their tribal instincts as a guide to what they think is real, more than actually informed opinions based on verified evidence,” said Henry Ajder, a synthethic media expert who works as an advisor to companies and government agencies, including Meta Reality Labs’ European Advisory Council.

    Images, compared to the AI-generated text that has also recently proliferated thanks to tools like ChatGPT, can be especially powerful in provoking emotions when people view them, said Claire Leibowicz, head of AI and media integrity at the Partnership on AI, a nonprofit industry group. That can make it harder for people to slow down and evaluate whether what they’re looking at is real or fake.

    What’s more, coordinated bad actors could eventually attempt to create fake content in bulk — or suggest that real content is computer-generated — in order to confuse internet users and provoke certain behaviors.

    “The paranoia of an impending Trump … potential arrest created a really useful case study in understanding what the potential implications are, and I think we’re very lucky that things did not go south,” said Ben Decker, CEO of threat intelligence group Memetica. “Because if more people had had that idea en masse, in a coordinated fashion, I think there’s a universe where we could start to see the online to offline effects.”

    Computer-generated image technology has improved rapidly in recent years, from the photoshopped image of a shark swimming through a flooded highway that has been repeatedly shared during natural disasters to the websites that four years ago began churning out mostly unconvincing fake photos of non-existent people.

    Many of the recent viral AI-generated images were created by a tool called Midjourney, a less than year-old platform that allows users to create images based on short text prompts. On its website, Midjourney describes itself as “a small self-funded team,” with just 11 full-time staff members.

    A cursory glance at a Facebook page popular among Midjourney users reveals AI-generated images of a seemingly inebriated Pope Francis, elderly versions of Elvis and Kurt Cobain, Musk in a robotic Tesla bodysuit and many creepy animal creations. And that’s just from the past few days.

    Midjourney has emerged as a popular tool for users to create AI-generated images.

    The latest version of Midjourney is only available to a select number of paid users, Midjourney CEO David Holz told CNN in an email Friday. Midjourney this week paused access to the free trial of its earlier versions due to “extraordinary demand and trial abuse,” according to a Discord post from Holz, but he told CNN it was unrelated to the viral images. The creator of the Trump arrest images also claimed he was banned from the site.

    The rules page on the company’s Discord site asks users: “Don’t use our tools to make images that could inflame, upset, or cause drama. That includes gore and adult content.”

    “Moderation is hard and we’ll be shipping improved systems soon,” Holz told CNN. “We’re taking lots of feedback and ideas from experts and the community and are trying to be really thoughtful.”

    In most cases, the creators of the recent viral images don’t appear to have been acting malevolently. The Trump arrest images were created by the founder of the online investigative journalism outlet Bellingcat, who clearly labeled them as his fabrications, even if other social media users weren’t as discerning.

    There are efforts by platforms, AI technology companies and industry groups to improve the transparency around when a piece of content is generated by a computer.

    Platforms including Meta’s Facebook and Instagram, Twitter and YouTube have policies restricting or prohibiting the sharing of manipulated media that could mislead users. But as use of AI-generated technologies grows, even such policies could threaten to undermine user trust. If, for example, a fake image accidentally slipped through a platform’s detection system, “it could give people false confidence,” Ajder said. “They’ll say, ‘there’s a detection system that says it’s real, so it must be real.’”

    Work is also underway on technical solutions that would, for example, watermark an AI-generated image or include a transparent label in an image’s metadata, so anyone viewing it across the internet would know it was created by a computer. The Partnership on AI has developed a set of standard, responsible practices for synthetic media along with partners like ChatGPT-creator OpenAI, TikTok, Adobe, Bumble and the BBC, which includes recommendations such as how to disclose an image was AI-generated and how companies can share data around such images.

    “The idea is that these institutions are all committed to disclosure, consent and transparency,” Leibowicz said.

    A group of tech leaders, including Musk and Apple co-founder Steve Wozniak, this week wrote an open letter calling for artificial intelligence labs to stop the training of the most powerful AI systems for at least six months, citing “profound risks to society and humanity.” Still, it’s not clear whether any labs will take such a step. And as the technology rapidly improves and becomes accessible beyond a relatively small group of corporations committed to responsible practices, lawmakers may need to get involved, Ajder said.

    “This new age of AI can’t be held in the hands of a few massive companies getting rich off of these tools, we need to democratize this technology,” he said. “At the same time, there are also very real and legitimate concerns of having a radical open approach where you just open source a tool or have very minimal restrictions on its use is going to lead to a massive scaling of harm … and I think legislation will probably play a role in reigning in some of the more radically open models.”

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  • Federal appeals court tosses state antitrust suit seeking to break up Meta | CNN Business

    Federal appeals court tosses state antitrust suit seeking to break up Meta | CNN Business

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    CNN
     — 

    A group of states that sued to break up Facebook-parent Meta in 2020 were years too late to file their challenge and failed to make a persuasive case that the company’s data policies harmed competition, a federal appeals court ruled Thursday in a sweeping victory for the tech giant.

    In siding with Meta, the decision by a three-judge panel of the US Court of Appeals for the DC Circuit upheld a lower-court decision tossing out the suit initially filed by New York and dozens of other states.

    The decision is a blow to regulators who have cited Meta as a prime example of the way tech giants have allegedly abused their dominance. And it casts a shadow over a parallel antitrust case against Meta that was brought by the Federal Trade Commission at around the same time.

    The states’ original complaint had sought to unwind Meta’s past acquisitions of Instagram and WhatsApp, accusing the company of a “buy-or-bury” approach that violated antitrust laws.

    In 2021, a federal judge dismissed the complaint, saying that the lawsuit came long after the acquisitions had been completed in 2012 and 2014. Thursday’s appellate decision agreed.

    “An injunction breaking up Facebook, ordering it to divest itself of Instagram and WhatsApp under court supervision, would have severe consequences, consequences that would not have existed if the States had timely brought their suit and prevailed,” wrote Senior Circuit Judge Raymond Randolph.

    In addition, Randolph wrote, state allegations claiming that Meta’s — then Facebook’s — policies placing restrictions on app developers were anticompetitive didn’t hold up.

    The policies in question, Randolph wrote, simply told app developers they could not use Facebook’s platform “to duplicate Facebook’s core products,” and did not rise to the level of an antitrust violation under federal law.

    Although the states argued that Facebook’s policies at the time — which have since been removed — discouraged innovation by the company’s rivals, the complaint failed to establish how widely the policies affected Facebook’s third-party developers.

    “The States thus have not adequately alleged that this policy substantially foreclosed Facebook’s competitors, giving us an additional reason to reject their exclusive dealing theory,” the court held.

    A spokesperson for New York Attorney General Letitia James didn’t immediately respond to a request for comment.

    In a statement, Meta said the state’s case reflected a mischaracterization of “the vibrant competitive ecosystem in which we operate.”

    “In affirming the dismissal of this case, the court noted that this enforcement action was ‘odd’ because we compete in an industry that is experiencing ‘rapid growth and innovation with no end in sight,’ Meta said. “Moving forward, Meta will defend itself vigorously against the FTC’s distortion of antitrust laws and attacks on an American success story that are contrary to the interests of people and businesses who value our services.”

    In spite of Thursday’s decision, Meta must still face a similar lawsuit by the FTC, which also seeks to break up the company in connection with its Instagram and WhatsApp acquisitions.

    Last year, the same federal judge who dismissed the state suit, James Boasberg, allowed the federal suit to proceed. Boasberg had tossed out the FTC suit as well in 2021, saying the agency had failed to make an initial showing that Meta holds a monopoly in personal social networking. But he permitted the FTC to re-file its complaint with changes.

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  • Elon Musk says he’s found a new CEO for Twitter | CNN Business

    Elon Musk says he’s found a new CEO for Twitter | CNN Business

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    New York
    CNN
     — 

    Elon Musk on Thursday said he’s found a new CEO to take over Twitter, months after he first promised to step back from the role.

    The new CEO will assume the role at Twitter Inc., which recently changed its name to X Corp., in the coming weeks, Musk said. He did not provide a name.

    “Excited to announce that I’ve a new CEO for X/Twitter. She will be starting in ~6 weeks!” Musk said in a tweet.

    Musk, who has had a chaotic reign as “Chief Twit” since buying the company in October, said he will become Twitter’s executive chair and chief technology officer, overseeing product, software and system operations.

    In December, Musk ran a poll on the platform asking users whether he should step back as Twitter’s CEO, which ended with the majority of users voting in the affirmative. Musk said he would abide by the results of the poll but later backtracked, saying he would hand over the role “as soon as I find someone foolish enough to take the job!” In February, he reiterated that he planned to find a replacement by the end of the year.

    Musk has faced criticism for a series of policy changes at Twitter, which often came without clear justification and raised concerns about the impact on Twitter’s users.

    He has also been attempting to convince advertisers to rejoin the platform, after many fled over concerns about hateful conduct on the platform, Twitter’s mass layoffs or questions about the company’s future. At the same time, he has been trying to sell users on a new paid subscription platform that includes the ability to pay for a blue verification check mark, but appears to have limited traction so far.

    Musk — who runs or is involved in numerous other companies, including Tesla

    (TSLA)
    — has also faced criticism from Tesla

    (TSLA)
    shareholders concerned that he is distracted by Twitter.

    Musk recently said that Twitter is now “trending to breakeven,” after previously saying it was at risk of bankruptcy. Now, the company’s new CEO will be tasked with trying to help turn around the struggling company and help Musk recoup some of the $44 billion spent acquiring the platform.

    Even as Musk prepares to step back from the CEO role, he will likely maintain significant control over the future direction of the company. After taking over the company in October, Musk cleared out the C-Suite, dissolved the board and became both the CEO and sole director of the platform.

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  • Here’s how much each state will get in the $42.5 billion broadband infrastructure plan | CNN Business

    Here’s how much each state will get in the $42.5 billion broadband infrastructure plan | CNN Business

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    Washington
    CNN
     — 

    The Biden administration on Monday outlined how states across the country will be receiving billions of dollars in federal funding for high-speed internet access, highlighting the US government’s push to bring connectivity to more Americans and to close the digital divide.

    More than $42 billion from the 2021 bipartisan infrastructure law will be distributed to US states and territories for building internet access, the White House said — with Texas eligible for the largest award of more than $3.3 billion, followed by California, which could receive more than $1.8 billion.

    “We’re talking today about a major investment that we’re making in affordable, high-speed internet, all across the country,” Biden said in a speech Monday, describing internet access as a critical economic resource allowing children to do their homework, for workers to find jobs and for patients to access health care.

    “I’ve gotten letters and emails from across the country from people who are thrilled that after so many years of waiting, they are finally going to get high-speed internet,” Biden said, citing one message he received from an Iowa woman who described the development as “the best thing that’s happened in rural America since the Rural Electrification Act,” referring to the push under President Franklin Delano Roosevelt to bring electricity to farms and ranches nationwide.

    All US states and territories have been awarded at least some funding, starting with the US Virgin Islands, which is eligible for $27 million under the initiative known as the Broadband Equity, Access, and Deployment (BEAD) program.

    The BEAD program marks one of the largest-ever infusions of federal money for bringing disconnected households and businesses online. And it reflects months of work by the US government to design new and updated broadband maps showing which areas of the country remain unserved or under-served.

    Finalized by the Federal Communications Commission last month, the new maps show that 7% of US households and businesses, representing 8.5 million physical locations and tens of millions of individual Americans, do not have broadband internet access, which is defined as internet download speeds of at least 25 megabits per second. The new maps provide information about internet connectivity at a granular level, whereas previous maps assessed connectivity only at a census-block level. The older maps also considered a census block to be served if just one household in that block had broadband access, even if many of its surrounding neighbors did not — leaving many Americans to report that they had no high-speed internet even when the official maps claimed that they did.

    The updated maps allowed the US government to calculate which states had the greatest need for broadband funding and to distribute the infrastructure law’s resources accordingly. States and territories may begin applying for the funds as soon as July 1, the White House said. After the applications are approved by the Commerce Department, state officials will gain access to at least 20% of their eligible awards.

    Under the infrastructure law, US states had been guaranteed at least $100 million in BEAD funding, while US territories were promised at least $25 million.

    Nineteen states received more than $1 billion in the final allocation, the White House said, adding that the 10 states receiving the most funding were Alabama, California, Georgia, Louisiana, Michigan, Missouri, North Carolina, Texas, Virginia and Washington.

    And it complements another $23 billion across five separate broadband access programs included in the legislation, such as a program specifically aimed at Tribal connectivity and another for low-income households. And it follows a $25 billion investment under the American Rescue Plan, the 2021 Covid-19 stimulus package.

    Monday’s announcement marked the launch of a three-week nationwide tour by President Joe Biden and other White House officials to tout the administration’s economic plan.

    Here’s how much each state received:

    • Alabama: $1,401,221,901.77
    • Alaska: $1,017,139,672.42
    • Arizona: $993,112,231.37
    • Arkansas: $1,024,303,993.86
    • California: $1,864,136,508.93
    • Colorado: $826,522,650.41
    • Connecticut: $144,180,792.71
    • Delaware: $107,748,384.66
    • District of Columbia: $100,694,786.93
    • Florida: $1,169,947,392.70
    • Georgia: $1,307,214,371.30
    • Hawaii: $149,484,493.57
    • Idaho: $583,256,249.88
    • Illinois: $1,040,420,751.50
    • Indiana: $868,109,929.79
    • Iowa: $415,331,313.00
    • Kansas: $451,725,998.15
    • Kentucky: $1,086,172,536.86
    • Louisiana: $1,355,554,552.94
    • Maine: $271,977,723.07
    • Maryland: $267,738,400.71
    • Massachusetts: $147,422,464.39
    • Michigan: $1,559,362,479.29
    • Minnesota: $651,839,368.20
    • Mississippi: $1,203,561,563.05
    • Missouri: $1,736,302,708.39
    • Montana: $628,973,798.59
    • Nebraska: $405,281,070.41
    • Nevada: $416,666,229.74
    • New Hampshire: $196,560,278.97
    • New Jersey: $263,689,548.65
    • New Mexico: $675,372,311.86
    • New York: $664,618,251.49
    • North Carolina: $1,532,999,481.15
    • North Dakota: $130,162,815.12
    • Ohio: $793,688,107.63
    • Oklahoma: $797,435,691.25
    • Oregon: $688,914,932.17
    • Pennsylvania: $1,161,778,272.41
    • Rhode Island: $108,718,820.75
    • South Carolina: $551,535,983.05
    • South Dakota: $207,227,523.92
    • Tennessee: $813,319,680.22
    • Texas: $3,312,616,455.45
    • Utah: $317,399,741.54
    • Vermont: $228,913,019.08
    • Virginia: $1,481,489,572.87
    • Washington: $1,227,742,066.30
    • West Virginia: $1,210,800,969.85
    • Wisconsin: $1,055,823,573.71
    • Wyoming: $347,877,921.27
    • American Samoa: $37,564,827.53
    • Guam: $156,831,733.59
    • Northern Mariana Islands: $80,796,709.02
    • Puerto Rico: $334,614,151.70
    • U.S. Virgin Islands: $27,103,240.86

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  • Arkansas sues TikTok, ByteDance and Meta over mental health claims | CNN Business

    Arkansas sues TikTok, ByteDance and Meta over mental health claims | CNN Business

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    Washington
    CNN
     — 

    The state of Arkansas has sued TikTok, its parent ByteDance, and Facebook-parent Meta over claims the companies’ products are harmful to users, in the latest effort by public officials to take social media companies to court over mental-health and privacy concerns.

    All three lawsuits claim the companies have violated the state’s Deceptive Trade Practices Act, and seek millions, if not billions, in potential fines. The suits were filed in Arkansas state court.

    The complaints come amid mounting pressure in Washington on TikTok for its ties to China and as states have grown more aggressive in suing tech companies broadly, particularly on mental health claims. Suits by school districts or county officials in California, Florida, New Jersey, Pennsylvania and Washington state have targeted multiple social media platforms over addiction allegations.

    The suit against Meta particularly zeroes in on the company’s impact to young users’ mental health, alleging that Meta’s implementation of like buttons, photo tagging, an unending news feed and other features are addictive and “intended to manipulate users’ brains by triggering the release of dopamine.”

    In a statement, Meta’s global head of safety, Antigone Davis, said the company has invested in “technology that finds and removes content related to suicide, self-injury or eating disorders before anyone reports it to us.”

    “We want to reassure every parent that we have their interests at heart in the work we’re doing to provide teens with safe, supportive experiences online,” Davis said in the statement. “These are complex issues, but we will continue working with parents, experts and regulators such as the state attorneys general to develop new tools, features and policies that meet the needs of teens and their families.”

    The remaining two suits, both naming ByteDance and TikTok as defendants, target TikTok’s alleged shortcomings in content moderation and also reiterate claims about TikTok’s alleged threat to US national security.

    The first suit alleges that TikTok has misled users by identifying its app as suitable for teens on app stores because of the “abundant” presence of content showing profanity, substance use and nudity. The suit further alleges that TikTok’s Chinese sister app, Douyin, does not make such content available within China.

    “TikTok poses known risks to young teens that TikTok’s parent company itself finds inappropriate for Chinese users who are the same age,” the complaint said. “Yet TikTok pushes salacious and other mature content to all young U.S. users age 13 and up.”

    The second suit against ByteDance and TikTok accuse the companies of having made misleading statements about the reach of Chinese government officials and their purported inability to access TikTok user data. TikTok has migrated US user data to servers operated by the American tech giant Oracle and has established organizational controls intended to prevent unauthorized data access. But, the suit alleges, that does not mean the data is necessarily protected.

    “Neither TikTok’s data storage practices, nor its data security practices, negate the applicability of Chinese law to that data or to the individuals and entities who are subject to Chinese law and have access to that data, or the risk of access by the Chinese Government or Communist Party,” the complaint said.

    The suit also claims TikTok has misrepresented its approach to privacy and security by omitting the potential risks of Chinese government access from its privacy policies and in its statements to app store operators.

    TikTok and ByteDance didn’t immediately respond to a request for comment.

    In a statement announcing the lawsuits, Arkansas Gov. Sarah Huckabee Sanders said the suits reflect a “failed status quo.”

    “We have to hold Big Tech companies accountable for pushing addictive platforms on our kids and exposing them to a world of inappropriate, damaging content,” Sanders said. “These actions are a long time coming. We have watched over the past decade as one social media company after another has exploited our kids for profit and escaped government oversight.”

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  • North America’s largest transportation network suspends use of Twitter for service alerts | CNN Business

    North America’s largest transportation network suspends use of Twitter for service alerts | CNN Business

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    New York
    CNN
     — 

    North America’s largest transportation network suspended the use of Twitter for service alerts Thursday, saying the “reliability of the platform can no longer be guaranteed.”

    The Metropolitan Transportation Authority, which serves 15.3 million passengers across a 5,000 square-mile area surrounding New York City, Long Island, New York State and Connecticut, also said their access to Twitter through its Application Programming Interface (API) was involuntarily interrupted twice over the last two weeks.

    “The MTA does not pay tech platforms to publish service information and has built redundant tools that provide service alerts in real time,” MTA’s Acting Chief Customer Officer Shanifah Rieara said in a statement. “Those include the MYmta and TrainTime apps, the MTA’s homepage at MTA.info, email alerts and text messages.”

    “Service alerts are also available on thousands of screens in stations, on trains and in buses,” Rieara said. “The MTA has terminated posting service information to Twitter, effective immediately, as the reliability of the platform can no longer be guaranteed.”

    The @MTA app will remain active and customers will still be able to tweet at MTA accounts, including @nyct_subway, and get responses, according to the MTA.

    – CNN’s Julian Cummings contributed to this report

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  • OpenAI, maker of ChatGPT, hit with proposed class action lawsuit alleging it stole people’s data | CNN Business

    OpenAI, maker of ChatGPT, hit with proposed class action lawsuit alleging it stole people’s data | CNN Business

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    CNN
     — 

    OpenAI, the company behind the viral ChatGPT tool, has been hit with a lawsuit alleging the company stole and misappropriated vast swaths of peoples’ data from the internet to train its AI tools.

    The proposed class action lawsuit, filed Wednesday in a California federal court, claims that OpenAI secretly scraped “massive amounts of personal data from the internet,” according to the complaint. The nearly 160-page complaint alleges that this personal data, including “essentially every piece of data exchanged on the internet it could take,” was also seized by the company without notice, consent or “just compensation.”

    Moreover, this data scraping occurred at an “unprecedented scale,” the suit claims.

    OpenAI did not immediately respond to CNN’s request for comment Wednesday. Microsoft, a major investor into OpenAI, was also named as a defendant in the suit and did not immediately respond to a request for comment.

    “By collecting previously obscure personal data of millions and misappropriating it to develop a volatile, untested technology, OpenAI put everyone in a zone of risk that is incalculable – but unacceptable by any measure of responsible data protection and use,” Timothy K. Giordano, a partner at Clarkson, the law firm behind the suit, said in a statement to CNN Wednesday.

    The complaint also claims that OpenAI products “use stolen private information, including personally identifiable information, from hundreds of millions of internet users, including children of all ages, without their informed consent or knowledge.”

    The lawsuit seeks injunctive relief in the form of a temporary freeze on further commercial use of OpenAI’s products. It also seeks payments of “data dividends” as financial compensation to people whose information was used to develop and train OpenAI’s tools.

    OpenAI publicly launched ChatGPT late last year, and the tool immediately went viral for its ability to generate compelling, human-sounding responses to user prompts. The success of ChatGPT spurred an apparent AI arms race in the tech world, as companies big and small are now racing to develop and deploy AI tools into as many products as possible.

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  • Should parents decide what their kids do online? These states think so | CNN Business

    Should parents decide what their kids do online? These states think so | CNN Business

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    New York
    CNN
     — 

    In the future, when teenagers want to sign up for an account on Facebook or Instagram, they may first need to ask their parent or guardian to give their consent to the social media companies.

    That, at least, is the vision emerging from a growing number of states introducing — and in some cases passing — legislation intended to protect kids online.

    For years, US lawmakers have called for new safeguards to address concerns about social platforms leading younger users down harmful rabbit holes, enabling new forms of bullying and harassment and adding to what’s been described as a teen mental health crisis.

    Now, in the absence of federal legislation, states are taking action, and raising some alarms in the process. The governors of Arkansas and Utah recently signed controversial bills into law that require social media companies to conduct age verification for all state residents and to obtain consent from guardians for minors before they join a platform. Lawmakers in Connecticut and Ohio are also working to pass similar legislation.

    On the surface, providing more guardrails for teens is a step forward that some parents may welcome after years of worrying about the potential harms kids face on social media. But some users, digital rights advocates and child safety experts say the wave of new state legislation risks undermining privacy for teens and adults, puts too much burden on parents and raises serious questions about enforcement.

    Jason Kelley, associate director of digital strategy for nonprofit digital rights group Electronic Frontier Foundation, told CNN he worries about government interference where “the state is telling families how to raise their children” and said it could “trample on the rights of every resident.”

    “Requiring people to get government approval by sharing their private identification before accessing social media will harm everyone’s ability to speak out and share information, regardless of their age,” he added. “Young people should not be used as pawns to fight big tech, and we are disappointed that first Utah, and now Arkansas, are implementing such overbroad laws.”

    Parents have long worried about privacy risks from their kids using social media, but the state legislation raises a new set of privacy concerns, experts say.

    In Arkansas, for example, the law will rely on third-party companies to verify all users’ personal information, such as a driver’s license or photo ID. (The legislation in Arkansas also appeared to contain vast loopholes and exemptions benefiting companies, such as Google and presumably its subsidiary, YouTube, that lobbied on the bill.)

    The impact on privacy is even more stark for teens in some of these states. In addition to requiring parental consent, Utah’s law, for example, will give parents access to “content and interactions” on their teens’ accounts.

    Albert Fox Cahn, founder and executive director of the Surveillance Technology Oversight Project and a fellow at the NYU School of Law, said the bills are problematic because users in these states will no longer remain anonymous, which could lead to fewer people of all ages expressing themselves and seeking information online.

    He believes teens in the LGBTQ+ community will be most impacted by potentially “outing them to homophobic or transphobic parents and cutting them off from their digital community.”

    Lucy Ivey, an 18-year-old TikTok influencer who attends Utah Valley University, echoed those concerns.

    “With a new law like this, they may now be intimidated and discouraged by the legal hoops required to use social media out of fear of authority or their parents, or fear of losing their privacy at a time when teens are figuring out who they are,” Ivey told CNN when the Utah law passed.

    Devorah Heitner, author of Screenwise, Speaker: Raising Kids in the Digital Age, argued teens need to learn how to function in online communities because that is the expectation both going into college and in their professional life.

    “Keeping them off online communities until, in some cases, when they’re finishing their first year of college — but can still have jobs or drive — is backward, if they can’t even have an Instagram or a Discord account where their mom isn’t reading every message.”

    Instead, she believes teens need better digital literacy in schools with a heightened social-emotional component.

    “Literacy should not just be ‘don’t look at pornography’ or ‘stay off bad sites’ or ‘don’t cyberbully;’ that’s so limited,” she said. “It should also be understanding how algorithms work, how teens can respond or what to do when feeling excluded, or if they’re feeling insecure. We need to help kids with all these things.”

    Heitner also said the bills should focus on holding companies more accountable rather than putting the onus on parents to either keep teens off platforms or constantly feel the pressure to police or oversee their activity.

    “Not all parents are passionate, kind and supportive of their kids, and even the ones who are don’t have the capacity or time to deal with the 24/7 nature of social media,” said Heitner. “It’s an unfair burden.”

    Given that the bills are unprecedented, it’s unclear how exactly social media companies will adapt and enforce it.

    Michael Inouye, an analyst at ABI Research, said minors could “steal” identities — such as from family members who don’t use social media — to create accounts that they can access and use without oversight. VPNs could also complicate matching IP addresses to the states of the users, he said.

    Facebook-parent Meta previously told CNN it has the same goals as parents and policymakers, but the company said it also wants young people to have safe, positive experiences online and keep its platforms accessible. It did not address how it would comply with the legislation.

    In a statement provided to CNN, a TikTok spokesperson said it is “committed to providing a safe and secure platform that supports the well-being of teens, and empowers parents with the tools and controls to safely navigate the digital experience.” Representatives from Snap did not respond to a request for comment.

    But even if legislative steps from Utah, Arkansas and other states prove to be flawed, Inouye says “these early efforts are at minimum bringing attention to these issues.”

    Heitner said she is most encouraged by a small but growing number of school districts and families, and one Pennsylvania county, which have filed lawsuits against social media companies for their alleged impact on teen mental health. “These efforts are more productive than putting this on parents,” she said.

    The Arkansas legislation is expected to take effect in September and Utah’s bill aims to be implemented next year. But bills like these could “face years of litigation and injunctions before they ever take effect,” Cahn said.

    “Hopefully Congress will act before then to implement real protections for all Americans,” he said.

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  • Google hit with lawsuit alleging it stole data from millions of users to train its AI tools | CNN Business

    Google hit with lawsuit alleging it stole data from millions of users to train its AI tools | CNN Business

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    CNN
     — 

    Google was hit with a wide-ranging lawsuit on Tuesday alleging the tech giant scraped data from millions of users without their consent and violated copyright laws in order to train and develop its artificial intelligence products.

    The proposed class action suit against Google, its parent company Alphabet, and Google’s AI subsidiary DeepMind was filed in a federal court in California on Tuesday, and was brought by Clarkson Law Firm. The firm previously filed a similar suit against ChatGPT-maker OpenAI last month. (OpenAI did not previously respond to a request for comment on the suit.)

    The complaint alleges that Google “has been secretly stealing everything ever created and shared on the internet by hundreds of millions of Americans” and using this data to train its AI products, such as its chatbot Bard. The complaint also claims Google has taken “virtually the entirety of our digital footprint,” including “creative and copywritten works” to build its AI products.

    Halimah DeLaine Prado, Google’s general counsel, called the claims in the suit “baseless” in a statement to CNN. “We’ve been clear for years that we use data from public sources — like information published to the open web and public datasets — to train the AI models behind services like Google Translate, responsibly and in line with our AI Principles,” DeLaine Prado said.

    “American law supports using public information to create new beneficial uses, and we look forward to refuting these baseless claims,” the statement added.

    Alphabet and DeepMind did not immediately respond to a request for comment.

    The complaint points to a recent update to Google’s privacy policy that explicitly states the company may use publicly accessible information to train its AI models and tools such as Bard.

    In response to an earlier Verge report on the update, the company said its policy “has long been transparent” about this practice and “this latest update simply clarifies that newer services like Bard are also included.”

    The lawsuit comes as a new crop of AI tools have gained tremendous attention in recent months for their ability to generate written work and images in response to user prompts. The large language models underpinning this new technology are able to do this by training on vast troves of online data.

    In the process, however, companies are also drawing mounting legal scrutiny over copyright issues from works swept up in these data sets, as well as their apparent use of personal and possibly sensitive data from everyday users, including data from children, according to the Google lawsuit.

    “Google needs to understand that ‘publicly available’ has never meant free to use for any purpose,” Tim Giordano, one of the attorneys at Clarkson bringing the suit against Google, told CNN in an interview. “Our personal information and our data is our property, and it’s valuable, and nobody has the right to just take it and use it for any purpose.”

    The suit is seeking injunctive relief in the form of a temporary freeze on commercial access to and commercial development of Google’s generative AI tools like Bard. It is also seeking unspecified damages and payments as financial compensation to people whose data was allegedly misappropriated by Google. The firm says it has lined up eight plaintiffs, including a minor.

    Giordano contrasted the benefits and alleged harms of how Google typically indexes online data to support its core search engine with the new allegations of it scraping data to train AI tools.

    With its search engine, he said, Google can “serve up an attributed link to your work that can actually drive somebody to purchase it or engage with it.” Data scraping to train AI tools, however, is creating “an alternative version of the work that radically alters the incentives for anybody to need to purchase the work,” Giordano added.

    While some internet users may have grown accustomed to their digital data being collected and used for search results or targeted advertising, the same may not be true for AI training. “People could not have imagined their information would be used this way,” Giordano said.

    Ryan Clarkson, a partner at the law firm, said Google needs to “create an opportunity for folks to opt out” of having their data used for training AI while still maintaining their ability to use the internet for their everyday needs.

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  • Inside the furious week-long scramble to hunt down a massive Pentagon leak | CNN Politics

    Inside the furious week-long scramble to hunt down a massive Pentagon leak | CNN Politics

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    CNN
     — 

    Jack Teixeira, wearing a green t-shirt and bright red gym shorts with his hands above his head, walked slowly backward toward the armed federal agents outside his home in North Dighton, Massachusetts, who took him into custody on charges of leaking classified documents.

    The carefully choreographed arrest of the 21-year-old Air National Guardsman stood in stark contrast to the Biden administration’s scramble one week earlier to deal with the fallout from the revelation that highly classified documents had been sitting publicly on the internet for weeks.

    Those leaked documents, which appeared to catch the Biden administration flat-footed, disclosed a blunt US intelligence assessment of the war in Ukraine, as well as details revealing US intelligence collection on allies.

    The Biden administration raced to determine the identity of the leaker who had posted pictures of folded-up documents online, to understand the full scope of what had been leaked and to soothe allies who were varying degrees of angry that their secrets had spilled out for the world to see.

    While the suspected leaker has been arrested, the administration’s damage assessment is still ongoing. It remains unclear whether the full extent of the impact of the leaks is known, as details from additional classified documents continued to be published throughout the week – even on Friday morning, the day after his arrest.

    Inside the Pentagon, Chairman of the Joint Chiefs of Staff Gen. Mark Milley was “pissed” at the leak and “deeply concerned” about its national security implications, a US official told CNN. The Defense Department has been holding daily meetings on the leak since Defense Secretary Lloyd Austin was first briefed last Thursday.

    The episode represents the most egregious disclosure of classified documents in years. The leaked documents have exposed what officials say are lingering vulnerabilities in the management of government secrets, even after agencies overhauled their computer systems following the 2013 Edward Snowden leak, which revealed the scope of the National Security Agency’s intelligence gathering apparatus.

    It is unlikely, however, that those safeguards would have prevented the most recent leak, sources said. “All classified systems have multiple levels of risk controls, but a determined insider will find the weak points over time,” said a former US official.

    The Pentagon has already taken steps to clamp down on who can access sensitive classified material, while Austin has ordered a review over access to classified documents. And Congress is vowing to investigate exactly what happened and why the US intelligence community failed to discover its secrets were sitting on a public internet forum for weeks.

    In a statement acknowledging the extent of the problem that the leaks exposed, President Joe Biden said Friday that he had directed both the military and intelligence community to “take steps to further secure and limit distribution of sensitive information.”

    “This is a breakdown,” Chris Krebs, the former head of the Department of Homeland Security’s cybersecurity agency, told CNN. “There’s no question that there will be a lot of introspection inside the intelligence community and across the government of where were those breakdowns? How do we ensure that we tighten that system of military discipline that that was referred to earlier to ensure that these things do not happen?”

    According to charging documents unsealed on Friday, Teixeira allegedly began posting classified information on the Discord server in December 2022.

    Teixeira is believed to be the head of obscure invite-only Discord chatroom called “Thug Shaker Central,” multiple US officials told CNN, where information from the classified documents was first posted.

    One of the users on the Discord server told FBI investigators that Teixeira began posting photographs of documents that appeared to be classified in January 2023, according to the affidavit unsealed Friday after Teixeira was arraigned.

    Investigators wrote in the affidavit that at least one of the documents that described the status of the Russia-Ukraine conflict, including troop movements, was classified at the TS-SCI level, meaning it contains top-secret, sensitive compartmentalized information.

    “The Government Document is based on sensitive U.S. intelligence, gathered through classified sources and methods, and contains national defense information,” the affidavit states.

    Teixeira, an airman first class stationed at Otis Air National Guard Base, was assigned to the 102nd Intelligence Wing, which is a “24/7 operational mission” that takes in intelligence from various sources and packages it into a product for some of the most senior military leaders around the globe, a defense official said.

    His job was not to be the one packaging the intelligence for those senior commanders, but rather to work on the network on which that highly classified intelligence lived. For that purpose, the official said Teixeira would be required to have a TS/SCI clearance, in the instance that he was exposed to that level of intelligence.

    “It’s not like your regular IT guy where you call a help desk and they come fix your computer,” the official said. “They’re working on a very highly classified system, so they require that clearance.”

    CNN has reviewed 53 documents that were posted on social media sites, which include US intelligence assessments of Ukrainian and Russian forces, as well as details about other countries providing weapons to Ukraine and other intelligence matters. The Washington Post has reported on an additional tranche of documents from the server.

    The photos showed crumpled documents laid on top of magazines and surrounded by other random objects, such as zip-close bags and Gorilla Glue, suggesting they had been hastily folded up and shoved into a pocket before being removed from a secure location.

    A Discord user told investigators that Teixeira had become concerned “he may be discovered making the transcriptions of text in the workplace, so he began taking the documents to his residence and photographing them,” according to the affidavit.

    Four Discord users active in a different Discord chatroom where the documents later appeared told CNN they began circulating on Thug Shaker. Another user who was in the Thug Shaker chatroom told CNN they saw the original posts of classified documents but declined to speak further about them.

    While the documents were being shared on Discord, there’s no indication that the US intelligence community was aware they were on the internet. Discord servers are typically small, private online communities that require an invitation to join.

    On April 6, The New York Times first reported on the leaked documents and the Pentagon having launched an investigation into who may have been behind the leak.

    The investigation into finding the leaker quickly moved into the hands of the Justice Department, while the Pentagon investigation focused on a damage assessment of the leaks themselves.

    But the number of leaked documents continued to grow in the hours and days that followed the initial disclosure, revealing new intelligence assessments on everything from South Korea’s hesitance to provide the US weapons that might be sent to Ukraine to intelligence suggesting Egypt planned to supply rockets to Russia.

    US diplomats were forced to deal with the fallout. Seoul said it would hold “necessary discussions with the US” following the leak.

    The documents that were leaked appear to be part of a daily intelligence briefing deck prepared for the Pentagon’s senior leaders, including Milley, the top US military general. On any given day, the slides in that deck can be properly accessed by hundreds, if not thousands, of people across the government, officials said.

    Last Friday’s announcement of a Justice Department investigation underscored just how high a priority the leak was considered.

    By Monday, FBI agents from Washington to California to Boston were combing through evidence, conducting interviews and tracking volumes of computer data that within days pointed to Teixeira. They worked with Army CID investigators experienced in classified document probes.

    Anthony Ferrante, a former FBI agent, said that the “first few hours are critical” in a case like the Discord leaks as investigators rush to preserve digital evidence before it becomes harder to find online or vanishes altogether.

    FBI agents likely worked backward from the initial Discord posts to build a profile of the leaker, combing through his other online accounts to “put a human behind a keyboard,” Ferrante, who is now global head of cybersecurity at FTI Consulting, told CNN.

    Even though Teixeira emerged quickly as the most obvious suspect, counterintelligence agents trained in uncovering foreign spies looked through Teixeira’s background to try to find any sign that he could be working with a foreign intelligence service.

    The FBI agents’ work was made more urgent because the trove of documents had set off a media frenzy and reporters found ready interviews among members of Teixeira’s Internet social circle.

    On Monday, the FBI interviewed a user of the Discord chatroom where the classified information had been posted, according to the affidavit. That person told investigators that a user who went by “Jack” and said he was in the Air National Guard was the server’s administrator.

    A day earlier, the investigative news outlet Bellingcat posted an interview with a member of that same chatroom.

    On Wednesday, a day before Teixeira’s arrest, the FBI obtained records from Discord that included the subscriber information of the server’s administrator, which had Teixeira’s name and address, according to the affidavit.

    By day 5 of the FBI’s search, agents believed they had enough to charge Teixeira, and they began surveilling him.

    In a different scenario, without the intense public attention, agents might have watched him for weeks to see if he was meeting anyone suspicious or if he had accomplices.

    Instead, they moved to make an arrest Thursday, as news helicopters flew above.

    Teixeira was charged under the Espionage Act with unauthorized retention and transmission of national defense information and unauthorized removal of classified information and defense materials. He will next appear on Wednesday in federal court in Massachusetts.

    For the Biden administration, the episode has already prompted the Pentagon to begin to limit who across the government receives its highly classified daily intelligence briefs, amid lingering questions over why a 21-year-old junior Air National Guardsman had access to such classified information – and why it wasn’t discovered more quickly.

    Austin and Milley spent time on the phone speaking with US allies and partners around the world regarding the sensitive intelligence and top-secret documents suddenly thrust into the public sphere. Those conversations were expected to continue through the end of the week, another US official said.

    Deputy Secretary of State Wendy Sherman was tapped to lead the diplomatic response to the leaked US intelligence documents, according to a US official familiar with the matter.

    Biden was continually briefed on the state of the investigation while abroad, as well as the efforts of his top officials to engage with allies over the leaked information, officials said. Behind the scenes, that effort was a reality that loomed over a deeply personal and important foreign trip for Biden, one official acknowledged. 

    Still, the leaks didn’t arise when Biden met Wednesday with British Prime Minister Rishi Sunak, a Five Eyes intelligence sharing ally.

    Biden publicly downplayed the significance of the leak when he made his first comments on the matter. “I’m concerned that it happened, but there is nothing contemporaneous that I’m aware of that is of great consequence,” Biden told reporters Thursday.

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  • Twitter’s former CEO has a new app that looks a lot like Twitter | CNN Business

    Twitter’s former CEO has a new app that looks a lot like Twitter | CNN Business

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    CNN
     — 

    The buzzy new social media app of the moment looks so much like Twitter it’s almost hard to distinguish the two. The profiles, timelines and colors are nearly identical. Even the creator is the same.

    But under the hood, Bluesky, developed by Twitter co-founder and former CEO Jack Dorsey, is vastly different.

    The app, which launched in a closed beta on iOS in February and on Android this month, runs on a decentralized network which provides users with more control over how the service is run, data is stored, and content is moderated.

    In recent days, it’s gained traction among journalists, politicians and celebrities, from Democratic Rep. Alexandria Ocasio-Cortez to model Chrissy Teigan and the 90s band Eve 6.

    Here’s what you should know:

    Bluesky calls itself “a new social network for microblogging.” With the app, users can post and follow short updates on a timeline, just as they would on Twitter, though with some differences. There are currently no hashtags – a central feature on Twitter – and no direct messages.

    Bluesky was formed independently of Twitter while Dorsey was serving as CEO but it was funded by the company until it became an independent organization in February 2022. In a tweet introducing the idea in 2019, Dorsey said it also plans to “build an open community around it, inclusive of companies & organizations, researchers, civil society leaders,” but warned “this isn’t going to happen overnight.”

    In a tweet last year, Dorsey said the “biggest issue and my biggest regret is that [Twitter] became a company.” He later clarified that if a service was a protocol it “can’t be owned by a state, or company.”

    If the idea of a decentralized social network sounds familiar, it’s likely because of Mastodon, another Twitter alternative that also gained attention late last year.

    Like Mastodon, Bluesky appeals to a number of Twitter users who are frustrated with the direction of the platform under owner Elon Musk. In the six months since Musk took over Twitter, he has made a number of controversial changes to its features and policies, including the removal of blue check marks from prominent users.

    Some of the same high-profile users now testing out Bluesky have also been openly critical of Musk’s moves at Twitter.

    According to data.ai, the company formerly known as App Annie, Bluesky has been downloaded more than 375,000 times from the Apple App Store and the waitlist continues to be flooded with signup requests. On the Google Play Store, Bluesky is described as having been downloaded more than 100,000 times. (By comparison, Twitter reported having more than 200 million monetizable daily active users last year before Musk completed his acquisition.)

    Bluesky did not immediately respond to a request for comment.

    It’s unclear if Bluesky has staying power or will lose steam as Mastodon did. But Mark Bartholomew, a professor at the University at Buffalo School of Law who writes about online privacy, said the early shift toward Bluesky is a positive one, as it gives social media users more choice over where they spend their time.

    “Competition might actually help users find the product features they want, like greater privacy protection, portability, and more significant content moderation,” he said. “Social media platforms have features that users dislike but they still feel like they must accept them to just be in the online space where everyone else is.”

    All it took, he said, was Musk taking stepsto sabotage his own platform.”

    For now, Bluesky is invite-only as it ramps up support for the implementation of its network. Existing users get one invite code to share with someone for every two weeks they’re on the app. Not surprisingly, the sense of exclusivity has only added to the excitement of joining Bluesky.

    As Eve 6 wrote on Twitter: “Bluesky invite codes are the new blue check.”

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  • Musk’s Twitter promised a purge of blue check marks. Instead he singled out the New York Times | CNN Business

    Musk’s Twitter promised a purge of blue check marks. Instead he singled out the New York Times | CNN Business

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    New York
    CNN
     — 

    Some VIP Twitter users woke up on Saturday expecting to have lost their coveted blue verification check marks in a previously announced purge by Elon Musk. Instead, Twitter appeared to target a single account from a major publication Musk dislikes and changed the language on its site in a way that obscures why users are verified.

    Twitter had said it would “begin winding down” blue checks granted under its old verification system — which emphasized protecting high-profile users at risk of impersonation — on April 1. In order to stay verified, Musk said, users would have to pay $8 per month to join the platform’s Twitter Blue subscription service, which has allowed accounts to pay for verification since December.

    Most legacy blue check holders found this weekend that their verification marks had not disappeared, but rather had been appended with a new label reading: “This account is verified because it’s subscribed to Twitter Blue or is a legacy verified account.” The language, which shows up when users click on the check mark, makes it unclear whether verified accounts are actually notable individuals or simply users who have paid to join Twitter Blue.

    But one high-profile account did lose its blue check over the weekend: the main account for the New York Times, which had previously told CNN it would not pay for verification.

    After an account that often engages with Musk posted a meme this weekend about the Times declining to pay for verification, Musk responded in a tweet saying, “Oh ok, we’ll take it off then.” Musk then lashed out at the Times — just the latest instance of the billionaire slamming journalists or media outlets — in a series of tweets that claimed the outlet’s coverage is boring and “propaganda.”

    The weekend moves are just the latest example of Twitter creating confusion and whiplash for users over feature changes — and in this case, not just any users, but many of the most high-profile accounts that have long been a key selling point for the platform. It also highlights how Musk often appears to guide decisions about the platform more by whims than by policy.

    Although the New York Times’ main account lost its blue check, its other accounts, such as those for its arts, travel and books content, remained verified. After its blue check was removed, a spokesperson for the New York Times reiterated to CNN that it does not plan to pay for verification.

    Twitter, which laid off most of its public relations staff last fall, did not immediately respond to a request for comment.

    Musk has been threatening to take away “legacy” blue check marks from users verified under Twitter’s old system since shortly after he bought Twitter last fall.

    In early November, Twitter launched the option for people paying for its Twitter Blue subscription service to receive blue checks. The program was quickly put on pause after being plagued by a wave of celebrity and corporate impersonators, and was relaunched in December.

    Twitter also rolled out a color-coded verification system with differently colored marks for companies and government entities, but Musk continued to say that individual users would eventually have to pay for blue checks.

    In the days leading up to the blue check purge that wasn’t, prominent users such as actor William Shatner and anti-bullying activist Monica Lewinksy pushed back against the idea that, as power users that draw attention to the site, they should have to pay for a feature that keeps them safe from impersonation.

    By muddying the reason accounts are verified, the new label could risk making it easier for people to scam or impersonate high-profile users. Experts in inauthentic behavior have also said it’s not clear that reserving verification for paid users will reduce the number of bots on the site, an issue Musk has raised on and off over the past year.

    Musk, for his part, has previously presented changes to Twitter’s verification system as a way of “treating everyone equally.”

    “There shouldn’t be a different standard for celebrities,” he said in a tweet last week. The paid feature could also drive revenue, which could help Musk, who is on the hook for significant debt after buying Twitter for $44 billion.

    Musk last week also said that starting on April 15, only verified accounts would be recommended in users’ “For You” feeds alongside the accounts they follow.

    –CNN’s Oliver Darcy contributed to this report.

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  • Six months into Elon Musk’s Twitter: The fall of verification and birth of Twitter Blue in one very long chart | CNN Business

    Six months into Elon Musk’s Twitter: The fall of verification and birth of Twitter Blue in one very long chart | CNN Business

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    CNN
     — 

    In the six months since Elon Musk completed his acquisition of Twitter, the billionaire has turned the platform on its head by overhauling how it decides which accounts to verify.

    Once given out to authenticate a limited number of accounts from celebrities, government agencies and media organizations, the coveted check mark is now available for purchase through the company’s subscription service, Twitter Blue. The result: more checks and more confusion.

    There were at least 550,000 Twitter Blue subscribers as of April 23, just days after Musk stripped all users of legacy blue checks, according to estimates provided to CNN by Travis Brown, a Berlin-based software developer. By comparison, more than 400,000 accounts were verified with the legacy blue checks before the purge.

    But with Musk gifting some celebrities with the service, it’s unclear how many are actually paying customers. It’s also unclear how much more Twitter can grow subscriptions, which Musk has made central to his plan to boost Twitter’s revenue.

    The change to Twitter’s verification process is just one of many ways Musk has shaken the company’s core after taking the helm of Twitter in October. He eliminated over 80% of its staff and reshaped the site’s policies, drawing criticism for the impact these moves could have on safety and transparency. Many top advertisers have left the platform, and Musk valued it last month at around $20 billion, less than half of what he paid for it.

    But one of Musk’s boldest and biggest changes has been Twitter Blue. Touted as the successor to the old verification system, the subscription model lets anyone pay $8 per month for a blue badge and other features, like prioritized rankings in conversations and search.

    The blowback has been swift. Twitter Blue has stoked chaos and confusion. The program was initially paused only days after its launch when an account impersonating pharmaceutical company Eli Lilly and Company tweeted “insulin is free now,” causing the stock to nosedive.

    More recently, the purge of blue checks has led to a cultural change on the platform. Once a sought-after status symbol, many users find the blue badge is no longer cool. Last week, after the blue check began popping up on famous accounts, celebrities such as Lil Nas X and Chrissy Teigen vehemently denied paying for the service.

    Here’s a look back at the rise and fall of Twitter’s blue badge:

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  • China-based hackers breached US government email accounts, Microsoft and White House say | CNN Politics

    China-based hackers breached US government email accounts, Microsoft and White House say | CNN Politics

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    CNN
     — 

    China-based hackers have breached email accounts at two-dozen organizations, including some United States government agencies, in an apparent spying campaign aimed at acquiring sensitive information, according to statements from Microsoft and the White House late Tuesday.

    The full scope of the hack is being investigated, but US officials and Microsoft have been quietly scrambling in recent weeks to assess the impact of the hack, which targeted unclassified email systems, and contain the fallout.

    The federal agency where the Chinese hackers were first detected was the State Department, a person familiar with the matter told CNN. The State Department then reported the suspicious activity to Microsoft, the person said.

    The Department of Commerce, which has sanctioned Chinese telecom firms, was also breached. The hackers accessed Commerce Secretary Gina Raimondo’s email account, one source familiar with the investigation told CNN. The Washington Post first reported on the access of the secretary’s account.

    The Chinese hackers were detected targeting a small number of federal agencies and just a handful of officials’ email accounts at each agency in a hack aimed at specific officials, multiple sources familiar with the investigation told CNN.

    “Microsoft notified the (Commerce) Department of a compromise to Microsoft’s Office 365 system, and the Department took immediate action to respond,” a department spokesperson said in a statement on Wednesday.

    The spokesperson did not immediately reply to a request for comment on the targeting of Raimondo’s email account.

    The hackers targeted email accounts at the House of Representatives, but it was unclear who was targeted and if the breach attempts were successful, two sources familiar with the matter told CNN.

    The breaches add to what is already one of the steepest cybersecurity challenges facing the Biden administration: limiting the ability of Beijing’s formidable hacking teams to access US government and corporate secrets.

    “Last month, US government safeguards identified an intrusion in Microsoft’s cloud security, which affected unclassified systems,” National Security Council spokesperson Adam Hodge said in a statement to CNN.

    “Officials immediately contacted Microsoft to find the source and vulnerability in their cloud service,” Hodge said. “We continue to hold the procurement providers of the US Government to a high security threshold.”

    The State Department “detected anomalous activity, took immediate steps to secure our systems, and will continue to closely monitor and quickly respond to any further activity,” a department spokesperson said on Wednesday.

    US Capitol Police declined to comment, referring CNN to the FBI.

    Hodge did not identify who was behind the hack, but Microsoft executives said in a blog post that the hackers were based in China and focused on espionage.

    In response to the Microsoft and White House statements, the Chinese foreign ministry on Wednesday accused Washington of conducting its own hacking operations.

    US officials have consistently labeled China as the most advanced of US adversaries in cyberspace, a domain that has repeatedly been a source of bilateral tension in recent years. The FBI has said Beijing has a larger hacking program than all other governments combined.

    China has routinely denied the allegations.

    The hacking began in mid-May, when the China-based hackers used a stolen sign-in key to burrow their way into email accounts, according to Microsoft. The tech giant has since blocked the hackers from accessing customer emails using that technique, Microsoft said late Tuesday.

    Secretary of State Antony Blinken visited China in mid-June, but it was not immediately clear if the cyber-espionage campaign was connected to that high-stakes visit.

    Some US officials credited the State Department with investing in more cyber-defense capabilities, allowing the agency to detect the suspicious activity earlier than in past advanced hacks.

    The number of US organizations, public or private, impacted by the hacking campaign is in the “single digits,” a senior US Cybersecurity and Infrastructure Security Agency official told reporters on Wednesday.

    “This appears to have been a very targeted, surgical campaign,” the official said.

    This story has been updated with additional information.

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