Category: Cybersecurity

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Major U.S. airlines warn 5G could ground some planes, wreak havoc and other health and technical problems

WASHINGTON, Jan 17 (Reuters) – The chief executives of major U.S. passenger and cargo carriers on Monday warned of an impending “catastrophic” aviation crisis in less than 36 hours, when AT&T (T.N) and Verizon (VZ.N) are set to deploy new 5G service.

The airlines warned the new C-Band 5G service set to begin on Wednesday could render a significant number of widebody aircraft unusable, “could potentially strand tens of thousands of Americans overseas” and cause “chaos” for U.S. flights.

“Unless our major hubs are cleared to fly, the vast majority of the traveling and shipping public will essentially be grounded,” wrote the chief executives of American Airlines (AAL.O), Delta Air Lines (DAL.N), United Airlines , Southwest Airlines (LUV.N) and others in a letter first reported by Reuters.

The Federal Aviation Administration (FAA) has warned that potential interference could affect sensitive airplane instruments such as altimeters and significantly hamper low-visibility operations.

“This means that on a day like yesterday, more than 1,100 flights and 100,000 passengers would be subjected to cancellations, diversions or delays,” the letter cautioned.

Airlines late on Monday were considering whether to begin canceling some international flights that are scheduled to arrive in the United States on Wednesday.

“With the proposed restrictions at selected airports, the transportation industry is preparing for some service disruption. We are optimistic that we can work across industries and with government to finalize solutions that safely mitigate as many schedule impacts as possible,” plane maker Boeing (BA.N) said on Monday.

Action is urgent, the airlines added in the letter also signed by UPS Airlines (UPS.N), Alaska Air (ALK.N), Atlas Air (AAWW.O), JetBlue Airways and FedEx Express (FDX.N). “To be blunt, the nation’s commerce will grind to a halt.”

The letter went to White House National Economic Council director Brian Deese, Transportation Secretary Pete Buttigieg, FAA Administrator Steve Dickson and Federal Communications Commission (FCC) Chairwoman Jessica Rosenworcel.

Airlines for America, the group that organized the letter, declined to comment. The FAA said it “will continue to ensure that the traveling public is safe as wireless companies deploy 5G. The FAA continues to work with the aviation industry and wireless companies to try to limit 5G-related flight delays and cancellations.” (source https://www.reuters.com/technology/exclusive-major-us-airline-ceos-urge-action-avoid-catastrophic-5g-flight-2022-01-17/ )

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Telegram is launching Sponsored Messages – a tool that allows anyone to promote their channels and bots. Here is what you should know

1. There will be no ads in chats on Telegram. If you use Telegram as the messenger that we launched in 2013 – you will never see a sponsored message. Sponsored messages can’t appear in your chat list, private chats or groups.

2. User data will not be used to target ads. As with everything we do, our main priority is protecting the private data of our users. That’s why unlike other apps we will not use your private data to display ads.

Sponsored messages on Telegram are shown only in large public one-to-many channels with 1000+ members – and are based solely on the topic of the public channels in which they are shown. This means that no user data is mined or analyzed to display them.  

3. Sponsored messages will be unobtrusive. Official sponsored messages are limited to 160 characters of text – without media or external links. You may see a maximum of one sponsored message per channel – and only after you’ve finished reading any new posts.

4. We are fixing ads that are already here. Some admins of one-to-many channels on Telegram already post ads in the form of regular messages. We hope that Sponsored Messages will offer a more user-friendly and less chaotic way for people to promote their channels and bots.

Sponsored messages are currently in test mode and are not available to everyone. Once they are fully launched and allow Telegram to cover its basic costs (such as equipment and data centers that are used by channel admins to deliver their content to our hundreds of millions of users), we plan to start sharing ad revenue with the admins of the channels where Sponsored Messages are displayed – because it is fair.

5. With Telegram you’re more ad-free than with WhatsApp. WhatsApp already shares user data with advertisers [1] [2] – even though they don’t show ads themselves. On Telegram, however, advertisers will never get your private data. Besides, if you use Telegram the way you use WhatsApp, you will never see a single ad. Sponsored messages can only appear in channels, which are a unique social networking feature Telegram added several years after launch. If WhatsApp introduces a similar feature, they are likely to also display ads there, like their parent company already does on Instagram and Facebook.

Online ads should no longer be synonymous with the abuse of user privacy. We’d like to redefine how a tech company should operate by setting an example of a self-sustainable platform that respects its users and content creators.

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Pavel Durov, CEO of Telegram, about free speech, privacy, Facebook, WhatsApp, encryption and selling of user data

I hear Facebook has an entire department devoted to figuring out why Telegram is so popular. Imagine dozens of employees working on just that full-time.

I am happy to save Facebook tens of millions of dollars and give away our secret for free: respect your users.

Millions of people are outraged by the latest change in WhatsApp Terms, which now say users must feed all their private data to Facebook’s ad engine [1]. It’s no surprise that the flight of users from WhatsApp to Telegram, already ongoing for a few years, has accelerated.

At about 500 million users and growing, Telegram has become a major problem for the Facebook corporation. Unable to compete with Telegram in quality and privacy, Facebook’s WhatsApp seems to have switched to covert marketing: Wikipedia editors have recently exposed multiple paid bots adding biased information into the WhatsApp Wikipedia article [2].

We have also detected bots which spread inaccurate information about Telegram on social media. Here are the 3 myths they are pushing:

Myth 1. “Telegram’s code is not open-source”. In reality, all Telegram client apps have been open source since 2013 [3]. Our encryption and API are fully documented and have been reviewed by security experts thousands of times. Moreover, Telegram is the only messaging app in the world that has verifiable builds both for iOS and Android [4]. As for WhatsApp, they intentionally obfuscate their code, making it impossible to verify their encryption and privacy.

Myth 2. “Telegram is Russian”. In fact, Telegram has no servers or offices in Russia and was blocked there from 2018 to 2020 [5]. Telegram is still blocked in some authoritarian countries such as Iran, while WhatsApp and other “supposedly secure” apps have never had any issue in these places.

Myth 3. “Telegram is not encrypted”. Every chat on Telegram has been encrypted since launch. We have Secret Chats that are end-to-end and Cloud Chats that also offer real-time secure and distributed cloud storage [6]. WhatsApp, on the other hand, had zero encryption for a few years, and then adopted an encryption protocol funded by the US Government [7]. Even if we assume that the WhatsApp encryption is solid, it’s invalidated via multiple backdoors and reliance on backups [8].

In 2019 alone, Facebook spent almost 10 billion dollars on marketing [9] (I guess this includes paid bots on Wikipedia and other sites).

Unlike Facebook, Telegram doesn’t spend any money, let alone billions of dollars, on marketing. We believe that people are smart enough to choose what is best for them. And, judging by the half a billion people using Telegram, this belief is justified.

 

In the first week of January, Telegram surpassed 500 million monthly active users. After that it kept growing: 25 million new users joined Telegram in the last 72 hours alone. These new users came from across the globe – 38% from Asia, 27% from Europe, 21% from Latin America and 8% from MENA.

This is a significant increase compared to last year, when 1.5M new users signed up every day. We’ve had surges of downloads before, throughout our 7-year history of protecting user privacy. But this time is different.

People no longer want to exchange their privacy for free services. They no longer want to be held hostage by tech monopolies that seem to think they can get away with anything as long as their apps have a critical mass of users.

With half a billion active users and accelerating growth, Telegram has become the largest refuge for those seeking a communication platform committed to privacy and security. We take this responsibility very seriously. We won’t let you down.

Those of you who have used Telegram for the last several years know we’ve been consistent both when it comes to defending private data and to improving our apps. For those of you who just joined and are wondering what Telegram stands for, I’d like to quote my post from 2018:

You – our users – have been and will always be our only priority. Unlike other popular apps, Telegram doesn’t have shareholders or advertisers to report to. We don’t do deals with marketers, data miners or government agencies. Since the day we launched in August 2013 we haven’t disclosed a single byte of our users’ private data to third parties.

We operate this way because we don’t regard Telegram as an organization or an app. For us, Telegram is an idea; it is the idea that everyone on this planet has a right to be free.

Since my last post, the already massive influx of new users to Telegram has only accelerated. We may be witnessing the largest digital migration in human history. 

Following this global phenomenon, two presidents started their Telegram channels:

The President of Brazil – @jairbolsonarobrasil 

The President of Turkey – @RTErdogan

They join a list of other heads of state already present on the platform:

The President of Mexico – @PresidenteAMLO

The President of France – @emmanuelmacron

The Prime Minister of Singapore – @leehsienloong 

The President of Ukraine – @V_Zelenskiy_official

The President of Uzbekistan – @shmirziyoyev

The President of Taiwan – @iingtw 

The Prime Minister of Ethiopia – @AbiyAhmedAliofficial

The Prime Minister of Israel – @bnetanyahu 

(Note that such verified accounts typically show a blue check mark in your chat list and search results.)

We are honored that political leaders, as well as numerous public organizations, rely on Telegram to combat misinformation and spread awareness about important issues in their societies.

Unlike other networks, Telegram doesn’t use nontransparent algorithms to decide whether a subscriber will see content they subscribed to or not. As a result, Telegram channels are the only direct way for opinion leaders to reliably connect with their audiences. 

By removing the manipulative algorithms that have become synonymous with 2010s technology platforms, Telegram channels restore transparency and integrity to public “one-to-many” communication.

 

[1] – WhatsApp Gives Users Ultimatum – Share Data with Facebook or Lose Access 

[2] – In December 2020, the Wikipedia article about WhatsApp had the label “This article may have been created or edited in return for undisclosed payments, a violation of Wikipedia’s terms of use”. Related investigation is discussed here. 

[3] – Telegram Source Code

[4] – Reproducible Builds for Telegram Apps

[5] – On Digital Resistance in Russia

[6] – On Telegram Encryption 

[7] – U.S. Government Funded The WhatsApp Encryption

[8] – Why WhatsApp Will Never Be Secure 

[9] – Facebook Marketing Spending from 2010 to 2019

On Apple-Google censorship https://t.me/durovschat/518801

On making server-side code open https://t.me/durovschat/515221

On a privacy-conscious ad platform  https://t.me/durovschat/527441

On US-based encrypted apps https://t.me/durovschat/519187

On encryption vs. usability when using Secret Chats vs Cloud Chats https://t.me/durovschat/527081

On maximising security of communication https://t.me/durovschat/527134

On storing hashed phone numbers https://t.me/durovschat/551030

On how Telegram stores data https://t.me/durovschat/544164

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For the first time in history, the Bitcoin holdings of a nation is greater than Gold reserves: Bulgaria, $2 vs $1.8 Billions

Bulgaria has been covertly stockpiling Bitcoins, so much so that their BTC reserve has surpassed its gold holdings. Back in May 2017, the Southeast European Law Enforcement Centre (SELEC) issued a press release that the country has over 200,000 BTC (around $2.1 billion) as opposed to just 40 tons in gold (around $1.8 billion). The release stated:

“It was determined that the members of the organized crime group invested the money obtained from these illegal activities in bitcoins, around 200,000 being discovered in the virtual space.”

The investigators determined that they had precisely 213,519 BTC. Strangely enough, the Bulgarian Government has remained relatively silent regarding their alleged holdings. There have been several rumors floating around about these mysterious Bitcoins. One of these rumors stated that the Bulgarian Interior Ministry sold the stash to fund a new air force squadron. Various crypto media outlets immediately trashed this. The Government’s continued reluctance to reveal the Bitcoin addresses hints that they are likely still in control of the Bitcoin holdings.

For the first time in history, the bitcoin holdings of a nation state have surpassed their gold reserves, and it happens to be Bulgaria.

The country is believed to hold more than 200,000 bitcoins, now worth about $2 billion, while their gold reserves of 40 tones are worth only $1.8 billion.

Making it the first time a nation state has more value stored in bitcoin than in gold reserves.

That’s per a May 2017 press release by the Southeast European Law Enforcement Centre (SELEC) which announced in a headline: “More than 200,000 bitcoins in value of 500 million USD found by the Bulgarian authorities.” They further said:

“With SELEC’ support, the Bulgarian authorities successfully finalized the joint investigation…

The organized criminal group consisted in Bulgarian nationals having connections in The former Yugoslav Republic of Macedonia, Hellenic Republic, Romania and Republic of Serbia.

The modus operandi used was recruiting corrupted Customs officers in all involved countries with the purpose to infiltrate a virus in the Customs’ computerized systems. Once the virus installed, from distance, the offenders were able to finalize various transports, as in the Customs’ system appeared that the cargo was already checked and passed.

The Bulgarian authorities have searched more than 100 addresses, suspects and vehicles. A large quantity of money was seized, as well as equipment, devices for communication, computers, tablets, bank documents, etc…

It was determined that the members of the organized crime group invested the money obtained from these illegal activities in bitcoins, around 200,000 being discovered in the virtual space.

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Procedure on the way to end Federal Reserve and return to the Gold Standard ! President Trump meetings continue

As President-elect’s Donald Trump’s transition rolls on, more and more attention is being paid to possible selections for a variety of high-ranking positions and meetings that might help decide these appointments.
On Monday, Trump will meet with John Allison, the former CEO of the bank BB&T and of the libertarian think tank the Cato Institute.
There have been reports that Allison is being considered for Treasury secretary.

Trump’s has on the campaign trail questioned the future of the Federal Reserve’s political independence, but Allison takes that rhetoric a step further. While running the the Cato Institute, Allison wrote a paper in support of abolishing the Fed.

“I would get rid of the Federal Reserve because the volatility in the economy is primarily caused by the Fed,” Allison wrote in 2014 for the Cato Journal, a publication of the institute.

Allison said that simply allowing the market to regulate itself would be preferable to the Fed harming the stability of the financial system.

“When the Fed is radically changing the money supply, distorting interest rates, and over-regulating the financial sector, it makes rational economic calculation difficult,” Allison wrote. “Markets do form bubbles, but the Fed makes them worse.”

Allison also suggested that the government’s practice of insuring bank deposits up to $250,000 should be abolished and the US should go back to a banking system backed by “a market standard such as gold.”

Allison also argued for higher capital reserves of up to 20% of assets at banks. On the other hand, he also argued that the government should repeal three of the broadest banking regulations.

“We should raise capital standards, but it is even more important to eliminate burdensome regulations — including Dodd-Frank, the Community Reinvestment Act, and Truth in Lending,” Allison wrote. “About 25 percent of a bank’s personnel cost relates to regulations. Banks cannot pay the regulatory costs and have high capital standards.”

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FinCEN Files, 2500+ documents, $2000 BILLIONS dirty money in International Banks

Leaked documents involving about $2000 Billions of transactions have revealed how some of the world’s biggest banks have allowed criminals to move dirty money around the world.

The FinCEN files are more than 2,500 documents, most of which were files that banks sent to the US authorities between 2000 and 2017. They raise concerns about what their clients might be doing. These documents are some of the international banking system’s most closely guarded secrets.

Today, the FinCEN Files — thousands of “suspicious activity reports” and other US government documents — offer an unprecedented view of global financial corruption, the banks enabling it, and the government agencies that watch as it flourishes. BuzzFeed News has shared these reports with the International Consortium of Investigative Journalists and more than 100 news organizations in 88 countries.

Money laundering is a crime that makes other crimes possible. It can accelerate economic inequality, drain public funds, undermine democracy, and destabilize nations — and the banks play a key role. “Some of these people in those crisp white shirts in their sharp suits are feeding off the tragedy of people dying all over the world,” said Martin Woods, a former suspicious transactions investigator for Wachovia.

What has been revealed?

  • HSBC allowed fraudsters to move millions of dollars of stolen money around the world, even after it learned from US investigators the scheme was a scam.
  • JP Morgan allowed a company to move more than $1bn through a London account without knowing who owned it. The bank later discovered the company might be owned by a mobster on the FBI’s 10 Most Wanted list.
  • Evidence that one of Russian President Vladimir Putin’s closest associates used Barclays bank in London to avoid sanctions which were meant to stop him using financial services in the West. Some of the cash was used to buy works of art.
  • The husband of a woman who has donated £1.7m to the UK’s governing Conservative Party’s was secretly funded by a Russian oligarch with close ties to President Putin.
  • The UK is called a “higher risk jurisdiction” and compared to Cyprus, by the intelligence division of FinCEN. That’s because of the number of UK registered companies that appear in the SARs. Over 3,000 UK companies are named in the FinCEN files – more than any other country.
  • Chelsea owner Roman Abramovich once held secret investments in footballers not owned by his club through an offshore company.
  • The United Arab Emirates’ central bank failed to act on warnings about a local firm which was helping Iran evade sanctions.
  • Deutsche Bank moved money launderers’ dirty money for organised crime, terrorists and drug traffickers. More details (BuzzFeed News)
  • Standard Chartered moved cash for Arab Bank for more than a decade after clients’ accounts at the Jordanian bank had been used in funding terrorism.

  • One of America’s oldest banks wired over a hundred million dollars in funds linked to the crypto Ponzi scheme OneCoin, according to a trove of documents leaked from the U.S.’ financial crimes watchdog.

    In February 2017, the Bank of New York Mellon (BNY Mellon) flagged a number of transactions with the Financial Crimes Enforcement Network (FinCEN) it deemed suspicious as they appeared to be “layered” – a money-laundering technique that hides the source of funds through sending multiple transactions.

    Worth a combined $137 million, the bank said these transactions came from entities linked to OneCoin – a crypto scheme the U.S. government accused of being a Ponzi. It’s estimated OneCoin raised a total of $4 billion from investors, making it one of the most successful schemes of its kind ever.

Why is this leak different?

There have been a number of big leaks of financial information in recent years, including:

 

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The Social Dilemma – The Official Trailer – Cloud Breaking Big Tech Companies – Facebook, Google, YouTube, Twitter, Instagram etc.

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Denmark propose the use of Blockchain Platforms for fighting against corruption on government and institutional levels

The Ministry of Foreign Affairs of Denmark published a report explaining the use of IT technologies and services including blockchain, e-governance, big data, and crowdsourcing to fight administrative, or day-to-day, corruption as well as political corruption.

Presented during the International Anti-Corruption Conference, or IACC, the report emphasizes the use of blockchain as a technology that will build a more transparent governance and transaction system, further adding that it will also give individuals greater rights over their own data.

According to the report, blockchain can be used as a potential anti-corruption tool as it has the ability to store records immutably and transparently. A public database such as blockchain also provides every individual equal access to the data stored in the ledger, thus allowing individuals to claim their rights over aid, land and money without depending on any middlemen.

The report further says that blockchain “reduces or eliminates the need for institutions” such as banks, land registries, accountants, registry of births and deaths, and vehicle registration whose main job is to validate transactions.

The technology would help entities efficiently and securely share resources with people without formal identities or bank accounts, the report adds.

The public sector may also use blockchain to secure records and certificates from any alterations and use blockchain’s ability to trace all activities to reduce the chances for corruption.

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Online voting platform security and decentralization, global, regional & local solutions to elections

According to a June 7 paper from researchers at the Massachusetts Institute of Technology and University of Michigan, Democracy Live’s popular online voting platform, OmniBallot, is vulnerable to vote manipulation. Many states have tried OmniBallot, which uses Amazon Web Services to lock in votes, but it has faced security issues. A more decentralized online voting is part of the solution to protect ballots, the researchers say. 

Cryptographic end-to-end verifiability plays a key role

The researchers believe that a decentralized approach in which a voter does not need to trust a particular client device or official election software or servers is essential for secure remote voting. 

As a solution, the researchers put forward an end-to-end verifiability protocol like cryptographic E2E-V. They say such a protocol would allow each voter to independently check whether their vote is correctly recorded and included in the election result. They emphasis that: 

“Although experts hold that E2E-V should be a requirement for any Internet voting system, they simultaneously caution that “no Internet voting system of any kind should be used for public elections before end-to-end verifiable in-person voting systems have been widely deployed and experience has been gained from their use” 
Online voting platform vulnerability

Studies found out that the OmniBallot platform’s simplistic web-based approach system and its extensive usage of third-party services and infrastructure is putting voters’ privacy and vote accuracy in jeopardy. 

OmniBallot reportedly has no intention to seek any decentralized solution. The protocol it uses provides no way for anyone to verify that accuracy of the ballout sections. This will lead cyberattackers to gain control of the platform and change recorded votes without anyone even noticing.

In order to make votes more accessible to all, OmniBallot has turned the traditional voting of letting voters print ballouts and returning it through the mail to allowing voters to return their ballouts online. This web-based system handles blank ballot delivery, ballot marking, and online voting. 

As Cointelegraph reported previously, Congress is looking into developing a blockchain-based end-to-end encrypted system to allow remote Senate voting

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Facebook Libra 2.0 Explained in 5 minutes, planned for World Payments Systems Disruption in 5 years

What is Libra

Libra is a permissioned, blockchain-based stablecoin payment system.

The Libra payment system will support single-currency stablecoins and a multi-currency coin (LBR) that will be a digital composite of some of the single-currency stablecoins available on the Libra network.

All Libra coins will be fully backed by cash & cash equivalents and short-term government securities held by a geographically distributed network of custodian banks.

History

Libra’s origins can be traced back to 2017 when Libra co-creator and Calibra head of strategy, Morgan Beller, became the first person at Facebook’s secret blockchain initiative. Month’s later, CEO Mark Zuckerberg expressed his desire to “go deeper and study the positive and negative aspects of” cryptocurrencies in his New Year’s resolution post.

On May 8, 2018, Facebook Vice President David Marcus announced that he would be moving from Facebook’s Messenger division to lead Facebook’s blockchain initiative, kicking the initiative into high gear. By February 2019, there were more than 50 engineers working on the project.

In May 2019 it was confirmed that Facebook planned to launch a stablecoin backed by multiple currencies as part of a payments network designed to enable billions of users to make online purchases and transfer money between each other.

Announcement

On June 18, 2019 Facebook officially unveiled Libra: it’s permissioned blockchain-based payment system. It’s token, Libra, would be a stablecoin fully backed by a basket of fiat currencies and government securities, held in the “Libra Reserve.” Facebook also announced that it would develop a digital wallet for the project under its new subsidiary called Calibra, led by Libra co-creators Morgan Beller, David Marcus and Kevin Weil.

The Libra blockchain and Libra Reserve would be governed by the Libra Association: a Swiss based membership organization responsible for the governance of the Libra network and development of the Libra project. The 27 members planned to invest $10 million a piece to receive Libra Investment tokens and become validators of the Libra network.

Although the project would be permissioned at launch, the association aimed to begin transitioning to permissionless governance and consensus within five years.

Regulatory Pushback

Libra received immediate pushback from regulators around the world who expressed concerns over privacy and the potential challenge to various nation’s monetary sovereignty. As a result, just one month after the project was announced, Facebook assured that Libra would not launch until all regulatory concerns were fully addressed. Facebook executives proceeded to go through a series of hearings and meetings with US Congress and various governments in an attempt to alleviate regulatory concerns.

In September 2019, it was reported that the Libra reserve basket would consist of 50% US dollars, 18% Euro, 14% Japanese Yen, 11% Pound sterling and 7% Singaporean dollars. This US friendly composition wasn’t enough to quell anxieties and regulatory pressures persisted. In October 2019, PayPal became the first company to walk away from the Libra Association, with several other high profile founding members following suit, including Visa and Mastercard.

In January 2020, it was reported that the Libra Association was weighing a shift to a multiple stablecoin framework with each backed by their own individual currencies. This differed from their initial approach of a single stablecoin backed by a composite basket of fiat currencies.

Libra’s Revised Plan

On April 16, 2020 Libra unveiled its revised plan. As rumored, Libra transitioned to a framework featuring multiple single-currency stablecoins, in addition to its multi-currency Libra coin. Under the new model, each single-currency stablecoin will be backed by its respective fiat currency and government securities – i.e. the US dollar stablecoin will be backed by a reserve of US dollars and US government securities.

The multi-currency Libra coin on the other hand would be a composite of some of the single-currency stablecoins available on the Libra network. This differs from the initial proposal for a standalone currency backed by a basket of various fiat currencies and government securities sitting in a single reserve. The new Libra Coin proposal looks less like a currency and more like the SDRs maintained by the IMF. Libra Coins represent a claim on stablecoins held in various reserves within the network. This is one step removed from representing a direct claim on multiple fiat currencies and government securities sitting in the Libra Reserve.

According to the revised white paper, these changes were made to address policymaker’s key concerns. The revised plan further includes a more comprehensive compliance framework, the abandonment of plans to transition to a permissionless system and plans for strengthening the Libra Reserve design. Also to the delight of policymakers, t will allow for easier integration of central bank digital currencies to replace corresponding single-currency stablecoins.

According to the head of policy for the Libra Association, Dante Disparte, the Libra network is working toward a late 2020 launch.

Go Deeper

To learn more about Libra’s roadmap, regulatory history, team and participating organizations, the Libra Coin, launch, consensus and emission, underlying technology and governance, read our full Libra profile page.
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