Thursday, February 28, 2013

Bradley Manning pleads guilty to misusing classified data in WikiLeaks case

FORT MEADE, Maryland (Reuters) - The U.S. Army private accused of providing secret documents to the WikiLeaks website pleaded guilty on Thursday to misusing classified material he felt 'should become public,' but denied the top charge of aiding the enemy.

Private First Class Bradley Manning, 25, entered the pleas prior to his court martial, which is set to begin on June 3, in a case that centers on the biggest leak of government secrets in U.S. history.

Military judge Colonel Denise Lind accepted the guilty pleas late in the afternoon. Manning pleaded guilty to a series of 10 lesser charges that he misused classified information and faces a maximum of 20 years in prison for those offenses.

'I believe that if the general public ... had access to the information ... this could spark a domestic debate as to the role of the military and foreign policy in general,' Manning, dressed in full military uniform, testified calmly.

Reading from a 35-page statement as he remained seated next to his lawyers, the short, slight private described his feelings after he submitted the secret information to WikiLeaks.

'I felt I accomplished something that would allow me to have a clear conscience,' said Manning, who spoke under oath for more than an hour.

'This was the type of information... should become public,' he said.

At the hearing, through his attorney Manning pleaded not guilty to the most serious charge, of aiding the enemy.

Manning, who has been jailed at Quantico Marine Base in Virginia for more than 1,000 days, could face life imprisonment if convicted of that charge at his June trial.

Under a ruling last month by Lind, Manning would have any sentence reduced by 112 days to compensate for the markedly harsh treatment he received during his confinement. While at Quantico, Manning was placed in solitary confinement for up to 23 hours a day with guards checking on him every few minutes.

Manning admitted to unauthorized possession and willful communication of classified information from the Combined Information Data Network Exchange Iraq and the Combined Information Data Network Exchange Afghanistan, two military databases. He called the two tables of documents he sent to WikiLeaks 'two of most significant documents of our time.'

He also admitted to misuse of documents from the U.S. Southern Command pertaining to Guantanamo Bay, a memo from the United States Army Intelligence Center, and records from a military operation in Farah province in Afghanistan.

One of the classified U.S. military videos he said he leaked showed the 2007 attack by Apache helicopters that killed a dozen people in Baghdad, including two Reuters news staff, photographer Namir Noor-Eldeen, 22, and his assistant and driver Saeed Chmagh, 40.

Manning, an Army intelligence officer, testified that he first tried to give the information to his 'local paper,' the Washington Post, but when a journalist there was not interested he left a message at The New York Times, which never returned his call. He then planned to visit the offices of Politico, but when a winter storm canceled his plans, he turned to WikiLeaks.

Manning was arrested in May 2010 while serving in Iraq and charged with downloading thousands of intelligence documents, diplomatic cables and combat videos and forwarding them to WikiLeaks.

WikiLeaks began exposing the U.S. government secrets in the same year, stunning diplomats around the world and outraging U.S. officials who said damage to national security from the leaks endangered U.S. lives.

WikiLeaks founder Julian Assange has taken refuge in the Ecuadorean Embassy in London since June to avoid extradition to Sweden for alleged sex crimes.

(Editing by Barbara Goldberg, Paul Simao and Tim Dobbyn)

Salesforce's $835 million quarterly revenue tops forecasts

(Reuters) - Salesforce.com Inc on Thursday reported better-than-expected quarterly sales of $835 million, backed by strong sales of its cloud-based services.

Shares in Salesforce gained 4.5 percent after hours to $176.79, after closing up 1.4 percent at $169.22 on the New York Stock Exchange.

The company, which provides sales and marketing software to companies like Coca-Cola and Ford Motor, has boasted one of the fastest rates of top-line growth in the technology industry, with its full-year revenue rising 35 percent from a year ago to $3.05 billion.

For its 2014 fiscal year, which began February 1, Salesforce expects sales of between $3.82 and $3.87 billion, in-line with Wall Street forecasts of $3.85 billion, according to Thomson Reuters I/B/E/S.

The company reported a net loss in the fourth quarter of $20.8 million, or 14 cents a share, widening from a loss of $4.08 million or 3 cents a share a year earlier.

Excluding items such as a one-time tax charge, it earned 51 cents a share.

The company said its unbilled deferred revenue, a rough, forward-looking signal of the pace of growth, rose to $3.5 billion, up from $2.2 billion a year ago.

(Reporting by Gerry Shih; Editing by Phil Berlowitz)

Iran steps up arrests, torture, executions: U.N.

GENEVA (Reuters) - Iran has stepped up executions of prisoners including juveniles as well as arrests of dissidents who are often tortured in jail, sometimes to death, the United Nations reported on Thursday.

In twin reports issued in Geneva, U.N. Secretary-General Ban Ki-moon and the U.N. special investigator on human rights in Iran, Ahmed Shaheed, voiced concern at what they called an apparent rise in the frequency and gravity of abuses in Iran.

'The Secretary-General remains deeply troubled by reports of increasing numbers of executions, including of juvenile offenders and in public; continuing amputations and flogging; arbitrary arrest and detention; unfair trials, torture and ill-treatment; and severe restrictions targeting media professionals, human rights defenders, lawyers and opposition activities, as well as religious minorities,' Ban reported.

The Islamic Republic, which is under economic sanctions for its disputed nuclear program, has failed to investigate 'widespread, systemic and systematic violations of human rights', Shaheed's report said.

He called for the 'immediate and unconditional release' of detained human rights advocates, journalists and lawyers.

Shaheed said opposition leaders Mehdi Karoubi and Mir Hossein Mousavi, who are under house arrest, are among hundreds of political prisoners held for exercising their right to freedom of expression during protests over alleged fraud in the re-election of President Mahmoud Ahmadinejad in 2009.

The next presidential election is set for June.

Dozens of journalists, bloggers and activists have been arrested in the past few months, Shaheed said. Lawyers defending such figures had been targeted, including Abdolfatah Soltani who was arrested in 2011 and is now serving a 13-year sentence.

In a case that stirred international outrage, blogger Sattar Beheshti was arrested last October after receiving death threats and died some days later in prison.

Iranian authorities have arrested seven people suspected of involvement in his death and a judiciary official said a forensic examination had found bruises on the blogger's body.

Shaheed said: 'An informed source communicated that Mr. Beheshti was tortured for the purpose of retrieving his Facebook user name and password, that he was repeatedly threatened with death during his interrogation and that he was beaten in the face and torso with a baton.'

Torture by blunt instruments, including truncheons, and rapes and electric shocks have been reported in Iran, he added.

JUVENILE EXECUTIONS

Iranian authorities should stop imposing the death penalty on juveniles, banned under international law, both reports said.

Shaheed voiced alarm at the escalating rate of executions in Iran and the use of capital punishment for offences that do not meet international standards for the most serious crimes.

'This includes alcohol consumption, adultery and drug-trafficking,' he said.

Without referring to the two reports, Iranian Deputy Foreign Minister Mohammad Mahdi Akhondzadeh told the U.N. Human Rights Council in Geneva on Thursday: 'Iran's commitment to the protection and promotion of human rights remains steadfast ... There are ample evidences which indicate my country's commitment in civil, political, economic, social and cultural rights.'

Shaheed, a former foreign minister of the Maldives, has not been allowed to visit Iran. His latest report is based on 169 interviews with people inside and outside the Islamic Republic.

Some 297 executions were announced by the Tehran government last year, but the true number was closer to 500, he said.

Drug-related crimes account for 80 percent of executions and smugglers are denied the right to appeal against the death penalty, Ban said.

'There has been a dramatic spike in public executions in Iran,' he said. Most took place at dawn in front of crowds.

(Reporting by Stephanie Nebehay; Editing by Mark Heinrich)

Small cells go large to help meet data demand

BARCELONA (Reuters) - Small cell radio equipment that boosts network coverage is providing big opportunities for telecom operators as they face growing demand for smartphone Internet access in busy streets, shopping centres and stadiums.

The devices - small radio nodes which provide network coverage over a range of between 10 and 200 metres - have been used by businesses and consumers to provide a signal in areas of poor coverage for years.

Now operators are using them to bolster public broadband networks and ease pressure on traditional base stations, as they struggle to meet exploding data demand from customers wanting to access the Internet via smartphones and tablets on the go.

Nicola Palmer, chief technology officer of Verizon Wireless, said the U.S. carrier would deploy up to 300 4G small cells this year and 'a lot more in 2014'.

'I view small cells as a complement to the rest of the network especially in areas of intense demand such as business districts or shopping malls, but they won't replace the traditional mobile tower,' she said at the Mobile World Congress trade show in Barcelona.

Small cells, which are around the size of a shoe box, can be clustered in streets between tall buildings - canyons where mobile reception can be poor - and where demand is high.

Telecoms consultancy Informa predicted the deployment of public small cells would generate 2016 revenues of $16.2 billion, creating an opportunity for network gear providers like Ericsson, Huawei and Nokia Siemens Networks, which make them.

'Public access small cells in busy urban areas are set to be one of the defining mobile network trends in the coming years,' said analyst Dimitris Mavrakis in Barcelona.

'The vendors who succeed in this space are going to win the lion's share of small cell revenues.'

The installed base of small cells was set to grow from almost 11 million today to 92 million in 2016, with a total market value of over $22 billion, Informa said.

Telecoms gear maker Alcatel-Lucent said as demand for data soared, the capacity of the main network would run out of steam, and small cells would be part of the solution.

HERE AND NOW

'It's no longer an 'if small cells', in fact in my mind it's no longer a 'when small cells', it's here and now,' said Michael J. Schabel, the company's vice president of small cells.

Companies including AT&T and Vodafone UK as well as Verizon, have announced plans to roll out more small cells in their networks, as consumers increasingly expect a seamless data service.

Mike Flanagan, chief technology officer for network software firm Arieso, said the networks were coming under pressure from a small group of users who consume a huge amount of data, often for video or gaming.

He said one percent of all subscribers consumed more than half of all the data being transmitted in the network.

'So when you employ these small cells, don't think of a uniform ubiquitous small-cell coverage across a certain area, like Soho in London,' he said.

'Instead look at it as a surgical placement of small cells precisely where they are required to satisfy the demand of those extreme one percent of users.'

He said the technology was now able to detect where that demand was located down to the individual building.

'If the network operator can just satisfy the demands of one percent they've doubled the effective capacity of their whole network.'

(Additional reporting by Leila Abboud; Editing by Helen Massy-Beresford)

Why retailers are pinning hopes on Pinterest

NEW YORK (Reuters) - After a tough day at work as a publicist in Minneapolis, Becca Bijoch would often indulge in a little retail therapy. She usually headed out to the stores as she did not care much for online shopping.

That changed last year when the 26-year-old joined Pinterest, a photo-sharing website that allows users to 'pin' images to online bulletin boards based on their interests and to follow others. Bijoch says she has found all sorts of things that she bought after seeing them on Pinterest, from great kitchen tools on CrateandBarrel.com to clothes at Asos.com.

'I'm probably spending more now. I'm on the couch at night, after having two glasses of wine,' Bijoch says, but she has no regrets. 'I tell everyone that Pinterest has changed my life.'

Pinterest, which was the fastest standalone website to hit 10 million unique visitors a month, now has 25 million members, of whom many - like Bijoch - are young, female, well-educated and have disposable income.

Retailers are hankering after these users, but it is sometimes difficult to nab them because Pinterest is an ad-free website and 'pins' flourish virally. While many retailers have learned how to interact with consumers on Facebook and Twitter, they are still struggling to figure out Pinterest and the ways to make money out of reaching shoppers through it.

In that effort, many retailers have installed Pinterest buttons on their main websites, created their own Pinterest pages, and allocated marketing dollars to acquire followers. While Pinterest says it does not track metrics internally, many ancillary businesses have popped up to help companies harness the revenue-driving possibilities of the site.

'It's a huge window-shopping platform,' says Kyla Brennan, chief executive of HelloInsights, a Santa Monica, California company that provides analyses of Pinterest use. 'It helps people find what they really like. Does it encourage people to be a little impulsive? Of course.'

E-commerce experts say Pinterest generates more dollars per users than some other social media sites, even though Facebook, the world's largest social network with more than a billion users, is a leading driver of shopping by volume.

Pinterest shoppers, on average, spend nearly $170 per session, according to a study by RichRelevance, an e-commerce consultant, which tracked 700 million shopping sessions. In comparison, Facebook shoppers spend $95 per session, while Twitter shoppers spend $70.

Major retail brands with a presence on Pinterest include L.L. Bean, with more than 5 million followers; Nordstrom Inc, with more than 4 million followers; and Lululemon Athletica Inc with close to 2 million. Other major players like Gap Inc and Urban Outfitters Inc have fewer followers on the site, but are growing.

The three-year-old Pinterest recently closed a $200 million round of financing, which raises its value to $2.5 billion.

PINNING COSTS

Most companies' Pinterest activity is handled by their social media teams, but the efforts differ from promotions on Facebook and Twitter because Pinterest boards are interest-based and not timeline-based. Nordstrom's Facebook page, for example, features a couple of products daily that are on sale or seasonally interesting, but its Pinterest page is an evergreen collage of fashion lifestyle images.

As there is no direct advertising and Pinterest is still growing, the marketing cost to businesses of acquiring new users is lower than other sites, says Daniel Maloney, CEO of PinLeague, a consultancy that tracks social media usage.

'The current cost of acquiring a Pinterest follower is a penny to 50 cents, depending on type of business. That compares to 50 cents to $2.50 on Facebook,' he said.

One of the top ways to reach followers seems to be to do anything but try to sell products. L.L. Bean's most popular board, for instance, is devoted to pictures of woodland creatures - its most popular pin is a picture of a cat dressed up to look like a bat.

'While we do measure traffic coming to llbean.com and llbeansignature.com from Pinterest, we are not currently promoting the platform as a selling channel,' says Laurie Brooks, senior public relations representative for the company based in Freeport, Maine. Internal metrics show Pinterest users spend more than others, and that traffic is on the increase even if, overall, it is less than what comes from Facebook, she adds.

L.L. Bean, like many other retailers, has not offered discounts through Pinterest, but it has sponsored contests. So has Nordstrom, which did a bridal-focused sweepstakes in January.

'Our followers share and save compelling imagery and merchandise - period. Our boards aren't focused on bargains or coupons,' says Bryan Galipeau, who is group manager of social media at Nordstrom's Seattle headquarters. 'We think it's important to take a broader view of Pinterest because that's also how our customers see it.'

Fashion retailer Gilt.com's 'Pin to Win' contest offered a $2,500 shopping spree to women who shared certain images from their wedding dress collection. Gilt also rewarded those who received 50 re-pins of a children's dress the chance to buy the item for 77 percent off.

Similarly, fashion-seller Karmaloop.com offered a trip to Paris for the best outfit pinned to one of its boards.

Other goodies from retailers include AMC Theatres' giveaway pinboard where users can win movies posters and other memorabilia. Wal-Mart Stores Inc ran a contest about inspiring people to be environmentally conscious.

Even if you could win something by shopping through Pinterest, consumers need to exert some impulse control.

Since most of what is 'pinned' on the site is aspirational, people can end up spending way more than when they click through from other social media sites.

Wednesday, February 27, 2013

BroadSoft forecasts lower current-quarter revenue; shares fall

(Reuters) - Internet communications company BroadSoft Inc forecast current-quarter revenue below analysts' estimates, sending its shares down 24 percent after market.

BroadSoft, which sells software that telecom companies use to provide voice and video services, forecast first-quarter revenue of $37 million to $40 million, while analysts were expecting $43.6 million on average.

The company said it expects its growth to be affected by weakness in its consumer applications division prior to service providers ramping up their voice-over-LTE investment.

Consumer applications are part of the company's license software business, which accounts for more than half of its total revenue.

Network operators globally are currently in a multi-year investment cycle to upgrade mobile networks to a 4G technology known as LTE, which offers up to 10 times faster download speeds.

BroadSoft's fourth-quarter results, however, were above analysts' expectations. Excluding one-time items, the company earned 47 cents per share, ahead of analysts' expectations for 41 cents per share.

Revenue rose 13 percent to $45.8 million, also ahead of the $45.7 million Wall Street had estimated, according to Thomson Reuters I/B/E/S.

Net income fell to $4.9 million, or 17 per share, from $5.5 million, or 19 cents per share, a year earlier.

Shares of the Gaithersburg, Maryland-based company fell to $23.42, after closing at $30.91 on Wednesday on the Nasdaq.

(Reporting by Neha Alawadhi in Bangalore; Editing by Sreejiraj Eluvangal)

Visual-effects protest spreads to Twitter, Facebook

LOS ANGELES (TheWrap.com) - Visual-effects workers have already taken to the streets outside the Oscars to protest the layoffs and bankruptcies roiling their industry. Now they're taking the message to Facebook and Twitter in a series of coordinated protests.

To show their solidarity, they are plastering their social media pages with blank green screens. It's a demonstration of what effects-heavy films would look like if there were no longer artists and designers to create elaborate digital worlds and jaw-dropping action sequences.

The color green is not an arbitrary choice. Films like 'Life of Pi' and 'Avatar' were largely shot against a green screen, with designers creating the backdrops in post-production.

The Chapter 11 bankruptcy filing by Rhythm & Hues Studios this month combined with DreamWorks Animation's decision to cut about 350 jobs or 15 percent of its staff have drawn together a diffuse group of artists and technicians. They believe that studios' thirst for lucrative tax subsidies from countries like Canada and the United Kingdom and the cheaper labor offered in Asia are pushing more and more jobs abroad.

It's also causing highly respected California-based shops like Rhythm & Hues, which was part of the team that won an Academy Award on Sunday for its work on 'Life of Pi,' to the brink of ruin.

'I hope the protest will result in better treatment of VFX artists,' Andrew Hawryluk, a freelance visual-effects artist, told TheWrap. 'I consider myself one of the lucky ones to be currently employed, treated very well and paid on time, but there are many VFX workers out who slave away on major projects (with budgets worth hundreds of millions of dollars) for months on end with 80+ hour work weeks, no overtime compensation, and from what I gather from the community, many instances of top companies never paying workers after the projects are over and the freelancers are let go.'

The online agitation comes days after roughly 400 protestors rallied outside the Dolby Theater on Sunday where the Academy Awards were being held to protest the financial turmoil many effects companies are experiencing. Their signs carried messages such as 'respect for vfx' and 'we want a piece of the Pi,' according to a report in Variety.

Inside the theater, 'Life of Pi' triumphed over the competition to pick up the Oscar for Best Visual Effects. However, the orchestra played over Bill Westenhofer, one of the members of the winning team, as he tried to make a point about the dangers that Rhythm & Hues' failure poses for Hollywood.

Backstage, freed of the time constraints applied to a globally broadcast awards show, he was able to expound on his fears about the bankruptcy filing.

'We're not technicians ... we're artists, and if we don't do something to change the business model, we might lose some of the artistry,' Westenhofer said.

Michael Moore, "5 Broken Cameras" director hit back at BuzzFeed LAX story

LOS ANGELES (TheWrap.com) - Michael Moore and Palestinian director Emad Burnat are hitting back at a recent BuzzFeed story that questioned their accounts of an incident with U.S. Customs and Border Protection last week at Los Angeles International Airport.

Last week, Burnat, the Oscar-nominated director of '5 Broken Cameras,' said he was detained by officials and threatened with deportation when he could not produce proof that he had been invited to the Academy Awards. Moore said he intervened on Burnat's behalf and enlisted lawyers from the Academy of Motion Picture Arts & Sciences to help clear up the misunderstanding.

Moore later told TheWrap that Burnat would not have been subjected to that kind of questioning had been white.

'If he'd been a white guy he wouldn't have to go through that in our 'post-racial' America,' Moore said.

But BuzzFeed's Tessa Stuart writes that a source at LAX called Burnat's claims 'baloney' and accused the two men of using the incident to drum up publicity.

Burnat and Moore claimed that the incident lasted roughly an hour, but Stuart's source questioned their timeline, telling her that it took no longer than 25 minutes. The source claims that after Burnat could not produce an invitation to the ceremony, he was taken to another inspection area where he found his ticket and was allowed to proceed with his visit.

'He was not racially profiled,' Stuart's source said. 'It is being used as political stunt, and a publicity stunt for the movie.'

The article irked Moore, who quickly took to Twitter to question Stuart's reporting and accused her of lying.

'One lousy unnamed source at Homeland Security (apparently unnamed because, um, the Oscars are a national security threat?) fed BF some BS,' Moore tweeted.

He went on to say that Stuart's story was factually inaccurate because Burnat could not have produced a ticket as her source claimed. Moore said the Academy had not issued invitations yet.

Moore told TheWrap he thinks '...Buzzfeed probably regrets all this.'

He also shared a statement from Burnat on his website that questioned BuzzFeed's claims that the incident was shorter than the director originally asserted.

'I was so shocked that I didn't keep track of time but I can tell you this - the 'secondary' inspection that people seem to be focusing on was definitely just that - secondary,' Burnat said.

'What the whole experience added up to seemed like forever to me and my family, and I don't understand why I'm being asked whether it was 23 minutes (it definitely was not) or more.'

He went on to add that Stuart's piece misses the point of his ordeal by focusing on the length of his detention.

That is the wrong question. And I think Americans should be proud that there are people like Michael Moore and so many others I met in LA who are willing to ask the right question: why was I held in the first place?,' Burnat said

In an exchange with TheWrap, Moore echoed Burnat's comments and said he hoped to change the way foreign Oscar nominees were greeted next year.

'How many other Oscar nominees last week who came from foreign countries were detained like this?' Moore asked. 'When I and other filmmakers go to festivals or awards ceremonies in other countries, we are often met and welcomed - sometimes with presents or bouquets of flowers! - at the airport by a government official, someone from their culture ministry. It's the red carpet treatment all the way.'

Stuart referred questions to a BuzzFeed spokeswoman, who said the site stands by its reporting.

Stuart did update her article on Tuesday to clarify that she was citing a single source, not multiple sources as the story originally stated.

She followed up with a separate piece that referenced a handwritten log she had obtained from LAX officials that confirmed that Burnat's secondary inspection lasted for 23 minutes.

'While there is nothing in the log to contradict Burnat's account or his gratitude to Moore for leaping to his aid, the document does suggest that Moore overstated, at least, the length of the incident,' Stuart writes.

Stuart went on to write that the ticket in question was not a physical copy, but a digital one that Burnat accessed on his phone.

In a blog post on his personal site, Moore criticized Stuart for not pressing her sources for more information.

'I don't think Tessa Stuart and BuzzFeed want to become the Judy Miller/New York Times of 2013,' Moore wrote. 'So I wish they had been able to take a step back and be skeptical of the 'official story.' What's hilarious is that the Feds and BuzzFeed seem to find it unthinkable that a Palestinian and his hijab-wearing wife would be held and harassed by Homeland Security! It's so unlikely that Michael Moore and his Arab buddy would have to make the whole thing up!'

In an interview with the Atlantic, Moore backed away from his initial claims that Burnat's LAX ordeal lasted for an hour and a half. Moore said his text and email history indicated that 40 minutes elapsed from the time that Burnat first contacted him to the moment he let him know he was out of customs.

In an update, BuzzFeed writes that Moore admitted to the Atlantic that he 'exaggerated' the timeline, but the director disputed that characterization.

He said that the 40 minutes that passed between his initial contact with Burnat to the moment he was told the questioning was over, does not include the time the director spent in the first interrogation area or at the customs desk where he was first stopped. He said when those factors are taken into account Burnat's claims that he was held for roughly an hour stand up to scrutiny.

'No one exaggerated the length of time Emad was held,' Moore said. 'He was trying to avoid being put on a plane and sent back. That must've felt like hours. I'm sure he didn't set his timer on it.'

'5 Broken Cameras' centers on a Palestinian farmer who lives on the border of an Israeli settlement, and the abuses and oppression his West Bank community suffers. It lost the Oscar for Best Documentary Feature on Sunday to 'Searching for Sugar Man.

NATO, European governments, hit by "MiniDuke" cyber attack

SAN FRANCISCO (Reuters) - Hackers targeted dozens of computer systems at government agencies across Europe through a flaw in Adobe Systems Inc's software, security researchers said on Wednesday, while NATO said it too had been attacked.

The alliance said its systems had not been compromised, although it was sharing the details of the attack with NATO member states and remained vigilant. Security experts say governments and organizations such as NATO are attacked on a daily basis - although the sophistication varies wildly.

These particular attacks appeared both widespread and innovative, the private computer security firms announcing the discovery said, with one expert saying he believed a nation-state might be responsible.

Russia's Kaspersky Lab and Hungary's Laboratory of Cryptography and System Security, or CrySyS, said the targets of the campaign included government computers in the Czech Republic, Ireland, Portugal and Romania.

They also said a think tank, a research institute and a healthcare provider in the United States, a prominent research institute in Hungary and other entities in Belgium and Ukraine were among those targeted by the malicious software, which they have dubbed 'MiniDuke'.

The researchers suspect MiniDuke was designed for espionage, but were still trying to figure out the attack's ultimate goal.

'This is a unique, fresh and very different type of attack,' said Kurt Baumgartner, a senior security researcher with Kaspersky Lab. 'The technical indicators show this is a new type of threat actor that hasn't been reported on before.'

He said he would not speculate on who the hackers might be.

The malware exploited a recently identified security flaw in Adobe's software. Adobe said a software patch issued last week should protect users from 'MiniDuke' providing they downloaded it.

Boldizsár Bencsáth, a cyber security expert who runs the malware research team at CrySyS, told Reuters that he had reported the incident to NATO, although it was not clear if that was what first alerted the alliance.

Bencsáth said he believed a nation-state was behind the attack because of the level of sophistication and the identity of the targets, adding that it was difficult to identify which country was involved.

Exactly how serious the attacks were was not immediately clear, nor who exactly the targets were or at what level European governments were alerted.

The Czech counterintelligence agency BIS said they were not aware of any massive hacking attacks on Czech institutions from abroad recently. The Czech National Security Bureau, responsible for government data, was not immediately available for comment. Neither were officials from other states said to be affected.

A NATO official in Brussels had earlier said the alliance was not directly hit, but he said later that he had been incorrect. He gave no further details.

The researchers, who declined to further elaborate on the targets' identities, released their findings as more than 20,000 security professionals gathered in San Francisco for the annual RSA conference.

USING ADOBE, TWITTER, GOOGLE

MiniDuke attacked by exploiting recently discovered security bugs in Adobe's Reader and Acrobat software, according to the researchers. The attackers sent their targets PDF documents tainted with malware, an approach that hackers have long used to infect personal computers.

The bugs were first identified two weeks ago by Silicon Valley security firm FireEye. The firm reported that hackers were infecting machines by circulating PDFs tainted with malicious software.

The MiniDuke operators used an unusual approach to communicate with infected machines, according to the researchers. The virus was programmed to search for Tweets from specific Twitter accounts that contained instructions for controlling those personal computers. In cases where they could not access those Tweets, the virus ran Google searches to receive its marching orders.

Officials with Twitter and Google could not immediately be reached.

Bencsáth said he believed the attackers installed 'back doors' at dozens of organizations that would enable them to view information on those systems, then siphon off data they found interesting.

He said researchers had yet to uncover evidence that the operation had moved to the stage where operators had begun to exfiltrate data from their victims.

Privately, many Western government and private sector computer experts say China is the clear leader when it comes to state-sponsored cyber attacks to steal information - although they rarely say so publicly and Beijing angrily denies it.

According to cybersecurity expert Alexander Klimburg at the Austrian Institute for International Affairs, however, the closest attack to this in style was a Trojan dubbed 'TinBa' identified two months ago and used for banking fraud attacks. That was suspected to have been built by Russian hackers, he said, talking down the prospect of state involvement.

'There are some interesting aspects to the attacks,' said Klimburg, pointing to the use of Twitter. '(But) most of the attack does not seem that new at all. Some of the... 'tricks', such as using pictures to hide data, are more reminiscent of proficient students rather than government agencies.'

(Additional reporting by Peter Apps in London, Jan Lopatka in Prague and Adrian Croft in Brussels; Editing by Jeremy Laurence, Leslie Gevirtz and Mohammad Zargham)

NJ online gaming is credit-positive for Borgata, Caesars

(Reuters) - Fitch Ratings said on Wednesday that New Jersey's legalization of online gaming was a credit positive for Borgata Hotel Casino & Spa and Caesars Entertainment Corp..

Fitch also noted that the move by New Jersey, which on Tuesday legalized online gaming within the state, showed that online gaming was picking up traction as more states consider offering gambling over the Internet.

While Nevada and Delaware have recently allowed some form of online gaming, New Jersey's may become the 'most meaningful' U.S. state to pass such legislation so far, in part because of its larger population base, Fitch said.

Fitch rates Borgata's issuer default rating a B-minus with a stable outlook. It rates Caesar's IDR a CCC with a negative outlook.

Marina District Finance Co. is the issuing entity for the Borgata, which is owned by Boyd Gaming Corp..

(Reporting by Hilary Russ; Editing by James Dalgleish and Martin Golan)

Hackers use Adobe to target European governments: experts

SAN FRANCISCO (Reuters) - Hackers targeted dozens of computer systems at government agencies across Europe in a series of attacks that exploited a recently discovered security flaw in Adobe Systems Inc's software, security researchers reported on Wednesday.

Russia's Kaspersky Lab and Hungary's Laboratory of Cryptography and System Security, or CrySyS, said the targets of the campaign included government computers in the Czech Republic, Ireland, Portugal and Romania.

They also said a think tank, research institute and healthcare provider in the United States, a prominent research institute in Hungary and other entities in Belgium and Ukraine were among those targeted by the malicious software, which they have dubbed 'MiniDuke'.

The researchers, who declined to further elaborate on the victims' identities, released their findings as more than 20,000 security professionals gathered in San Francisco for the annual RSA conference.

The researchers suspect MiniDuke was designed for espionage, but were still trying to figure out the attack's ultimate goal. One researcher, Boldizsár Bencsáth, said he believed a country was behind the attack because of the level of sophistication and the identity of the targets, adding that it was difficult to identify which country was involved.

Bencsáth, a cyber security expert who runs the malware research team at CrySyS, told Reuters that he had reported the incident to NATO's Computer Incident Response Capability, a group that analyzes and responds to cyber threats. NATO officials declined comment.

The MiniDuke operators used an unusual approach to communicate with infected machines, according to the researchers. The virus was programmed to search for Tweets from specific Twitter accounts that contained instructions for controlling those PCs. In cases where they could not access those Tweets, the virus ran Google searches to receive its marching orders.

Officials with Twitter and Google could not immediately be reached. Adobe said the flaws in its Acrobat and Reader programs had been patched.

ADOBE ATTACK

MiniDuke attacked its victims by exploiting recently discovered security bugs in Adobe's Reader and Acrobat software, according to the researchers. The attackers sent their targets PDF documents tainted with malware, an approach that hackers have long used to infect personal computers.

Adobe spokeswoman Heather Edell said that her firm issued a software update to Acrobat and Reader last week that once installed should protect customers from getting infected by MiniDuke.

Bencsáth said he believed the attackers installed 'back doors' at dozens of organizations that would enable them to view information on those systems, then siphon off data they found interesting.

He said researchers have yet to uncover evidence that the operation had moved to the stage where operators had begun to exfiltrate data from their victims.

'This is a unique, fresh and very different type of attack,' said Kurt Baumgartner, a senior security researcher with Kaspersky Lab. 'The technical indicators show this is a new type of threat actor that hasn't been reported on before.'

He said he would not speculate on who the hackers might be.

The MiniDuke hackers exploited security bugs in Reader and Acrobat software that were first identified two weeks ago by Silicon Valley security firm FireEye. The firm reported that hackers were infecting machines by circulating PDFs tainted with malicious software.

(Editing by Jeremy Laurence and Leslie Gevirtz)

Hackers target European governments: researchers

SAN FRANCISCO (Reuters) - Hackers targeted dozens of computer systems at government agencies across Europe in a series of attacks that exploited a recently discovered security flaw in Adobe Systems Inc's software, security researchers reported on Wednesday.

Russia's Kaspersky Lab and Hungary's Laboratory of Cryptography and System Security, or CrySyS, said the targets of the campaign included government computers in the Czech Republic, Ireland, Portugal and Romania.

They also said a think tank, research institute and healthcare provider in the United States, a prominent research institute in Hungary and other entities in Belgium and Ukraine were among those targeted by the malicious software, which they have dubbed 'MiniDuke'.

The researchers, who declined to further elaborate on the victims' identities, released their findings as more than 20,000 security professionals gathered in San Francisco for the annual RSA conference.

The researchers suspect MiniDuke was designed for espionage, but were still trying to figure out the attack's ultimate goal.

Boldizsár Bencsáth, a cyber security expert who runs the malware research team at CrySyS, told Reuters that he had reported the incident to NATO's Computer Incident Response Capability, a group that analyzes and responds to cyber threats. NATO officials declined comment.

The MiniDuke operators used an unusual approach to communicate with infected machines, according to the researchers. The virus was programmed to search for Tweets from specific Twitter accounts that contained instructions for controlling those PCs. In cases where they could not access those Tweets, the virus ran Google searches to receive its marching orders.

Officials with Twitter and Google could not immediately be reached.

ADOBE ATTACK

MiniDuke attacked its victims by exploiting recently discovered security bugs in Adobe's Reader and Acrobat software, according to the researchers. The attackers sent their targets PDF documents tainted with malware, an approach that hackers have long used to infect personal computers.

Bencsáth said he believed the attackers installed 'back doors' at dozens of organizations that would enable them to view information on those systems, then siphon off data they found interesting.

He said researchers have yet to uncover evidence that the operation had moved to the stage where operators had begun to exfiltrate data from their victims.

'This is a unique, fresh and very different type of attack,' said Kurt Baumgartner, a senior security researcher with Kaspersky Lab. 'The technical indicators show this is a new type of threat actor that hasn't been reported on before.'

He said he would not speculate on who the hackers might be.

But Bencsáth said he believed a nation state was behind the attack because of the level of sophistication and the identity of the targets, adding that it was difficult to identify which country was involved.

The MiniDuke hackers exploited security bugs in Reader and Acrobat software that were first identified two weeks ago by Silicon Valley security firm FireEye. The firm reported that hackers were infecting machines by circulating PDFs tainted with malicious software.

Adobe released an update last week that once installed, should protect customers from MiniDuke.

(Editing by Jeremy Laurence and Leslie Gevirtz)

Hackers target European governments via Adobe bug: researchers

SAN FRANCISCO (Reuters) - Hackers targeted dozens of computer systems at government agencies across Europe in a series of attacks that exploited a recently discovered security flaw in Adobe Systems Inc's software, security researchers reported on Wednesday.

Russia's Kaspersky Lab and Hungary's Laboratory of Cryptography and System Security, or CrySyS, said the targets of the campaign included government computers in the Czech Republic, Ireland, Portugal and Romania.

They also said that a think tank, research institute and healthcare provider in the United States were among those targeted by the malicious software, which they have dubbed 'MiniDuke'.

The MiniDuke hackers attacked their victims by exploiting recently discovered security bugs in Adobe's Reader and Acrobat software. They sent their targets PDF documents tainted with malware, an approach that hackers commonly use to infect PCs.

The two research groups declined to elaborate on the identity of the victims, but said they have reported the case to relevant authorities.

Boldizsár Bencsáth, a cyber security expert who runs the malware research team at CrySyS, told Reuters he believed the attackers installed 'back doors' at dozens of victim organizations that would enable them to view information on those systems, then siphon off data they found interesting.

He said researchers have yet to uncover evidence that the operation had moved on to a second stage, where the operators had begun to exfiltrate data from their victims.

'This is a unique, fresh and very different type of attack,' said Kurt Baumgartner, a senior security researcher with Kaspersky Lab. 'The technical indicators show this is a new type of threat actor that hasn't been reported on before.'

He said he would not speculate on who that actor -- the hackers -- might be.

Bencsáth, however, said he believed a nation state was behind the attack because of the level of sophistication and the identity of the targets, adding that it was difficult to identify which country was involved.

The MiniDuke hackers exploited security bugs in Reader and Acrobat software that were first identified two weeks ago by Silicon Valley security firm FireEye. The firm reported that hackers were infecting machines by circulating PDFs tainted with malicious software.

Adobe last week released an update that fixes the security bugs in Reader and Acrobat.

Bencsáth said that the hackers discovered by FireEye had used tainted PDFs that appeared to be applications for visas to enter Turkey.

The MiniDuke hackers also employed several seemingly innocuous documents, including research papers on Ukraine's foreign policy and one on a human rights seminar.

(Editing by Jeremy Laurence)

Cyber security firm says freed thousands of enslaved PCs in demo

SAN FRANCISCO (Reuters) - A computer security firm said it had freed tens of thousands of infected PCs from a 'botnet' that forced enslaved machines to send out spam pharmaceutical ads during a cyber crime-fighting demonstration to top industry executives on Tuesday.

Tillmann Werner, a senior research scientist with a startup known as CrowdStrike, attacked the Kelihos botnet on stage in a rare live demonstration of techniques used to attack cyber crime operations.

He manipulated the messaging system used to control machines enslaved in the botnet, a term used in the security world to describe groups of infected computers that are enslaved in large networks by 'herders' who use the machines for tasks including sending spam and attacking corporate networks.

He instructed machines to stop communicating with the servers that had enslaved them and start checking in with a new 'command and control' server that he set up to protect the PCs.

For good measure he provided a 'black list' of servers controlled by the Kelihos gang, which essentially blocks those computers from ever visiting those sites.

As infected machines visited his command and control server, red dots showed up on a map on a video screen at the front of a conference room at the RSA security conference in San Francisco, winning Werner a round of applause for a rare victory in the fight against cyber crime.

A few hours later, he said that tens of thousands of infected machines had checked into the server of CrowdStrike, which this week unveiled products to help businesses fight sophisticated cyber attacks.

Werner has been using his keyboard to fight cyber crime for nearly 10 years.

'It's a passion,' he said. 'I'm interested in botnets that are technically challenging.'

That passion has kept him persevering in his battle with botnet 'herders,' or the criminals who control infected machines, despite constant setbacks.

He previously worked with parties including Microsoft Corp and Kaspersky Lab on other efforts to shut down Kelihos and a related botnet known as Waledac, only to see them quickly re-emerge.

'It's an industry,' he said. 'There is some gang pulling the strings.'

(Editing by Jeremy Laurence)

Tuesday, February 26, 2013

Priceline profit tops estimates, shares jump

(Reuters) - Priceline.com, the online travel agency known for its name-your-own-price auction, on Tuesday topped analysts' estimates for quarterly profit, citing improved hotel and car-rental reservations, and its shares rose more than 3 percent in extended trading.

Gross bookings, or the dollar value of all travel services purchased, rose 32.9 percent to $6.6 billion in the fourth quarter. Priceline said it expected those bookings to rise 30 percent to 37 percent in the current first quarter from a year earlier.

Priceline, which owes much of its success to international bookings on its Booking.com European travel site, forecast profit excluding items of $4.90 to $5.30 a share for the first quarter on a revenue increase of 17 percent to 24 percent. Analysts, on average, have forecast profit of $5.14 per share for the current quarter.

In the fourth quarter, hotel room-night reservations and booked rental-car days rose about 38 percent and 37 percent, respectively, compared with a 1.7 percent rise in airline tickets booked. Priceline said newer markets such as Asia-Pacific were contributing more to growth.

The quarterly results showed 'very strong execution across international markets and in the domestic U.S. market,' said Morningstar analyst Dan Su. 'The foreign currency headwind that the company experienced in the past several quarters was not really a major negative impact.'

The company, which competes with Expedia Inc and Orbitz Worldwide, said fourth-quarter net income was $288.7 million, or $5.63 per share, compared with $225.7 million, or $4.41 per share, a year earlier.

On a non-GAAP basis, profit was $6.77 per share. Analysts, on average, had expected $6.54 per share, according to Thomson Reuters I/B/E/S.

Quarterly revenue rose 20 percent to $1.19 billion.

Shares of Priceline.com rose 3 percent from their Nasdaq close of $678.49 after the company announced its financial results.

(Reporting by Karen Jacobs)

Priceline.com fourth-quarter profit rises

(Reuters) - Priceline.com, the online travel agency known for its name-your-own-price auction, on Tuesday topped analysts' estimates for quarterly profit, citing improved hotel and car-rental reservations, and its shares rose in extended trading.

The company, which competes with Expedia Inc and Orbitz Worldwide, said fourth-quarter net income was $288.7 million, or $5.63 per share, compared with $225.7 million, or $4.41 per share, a year earlier.

On a non-GAAP basis, profit was $6.77 per share. Analysts, on average, had expected $6.54 per share, according to Thomson Reuters I/B/E/S.

Gross bookings, or the dollar value of all travel services purchased, rose 32.9 percent to $6.6 billion in the fourth quarter. Priceline said it expected those bookings to rise 30 percent to 37 percent in the current first quarter compared with the year earlier.

Priceline, which owes much of its success to international bookings on its Booking.com European travel site, forecast profit excluding items of $4.90 to $5.30 a share for the first quarter on a revenue increase of 17 percent to 24 percent. Analysts, on average, have forecast profit of $5.14 per share for the current quarter.

Shares of Priceline.com were up more than 4 percent from their Nasdaq close of $678.49 after the company announced its financial results.

(Reporting by Karen Jacobs)

Google extends social Web reach to counter Facebook's rise

SAN FRANCISCO (Reuters) - Google Inc transformed the Internet by cataloging the Web's countless pages. Now it wants to keep better track of the Web's multitude of users.

The Mountain View, California-based company said Tuesday it would begin encouraging websites and mobile apps to accept log-in credentials via Google+, its social network.

The integration with third-party sites and apps, which Google hopes will help it track users as they surf across the Internet, represents the search powerhouse's latest effort to establish a foothold in the all-important social Web arena - and beat back competition from Facebook Inc, the sector leader.

Sites that have so far agreed to accept Google's social sign-in include The Guardian and USA Today's websites, as well as Fancy, the shopping site, and Fitbit, the personal fitness-tracking service and app, Google said in a blog post Tuesday.

Since 2008, Facebook has been able to gather massive troves of information about its users' activities even if they are not on Facebook because many popular apps - such as Spotify's music streaming service - allow users to log in with their Facebook identity, which results in data funneled back to the social network.

In response to Facebook's rise, Google has made its social Web efforts a top priority in recent years. But results have been mixed under the leadership of Chief Executive Larry Page and Vic Gundotra, the influential senior vice president spearheading Google's social networking efforts.

Launched in 2011, Google+ still lags far behind Facebook: it had 100 million monthly active users in December, according to comScore, compared to well over 1 billion for Facebook. But Google officials have downplayed the lukewarm public reception, saying they view Google+ more as an invisible data 'backbone' that tracks individual users across its various properties - and less as a consumer Internet destination.

Over the past year the company has made changes to the log-in process at its YouTube subsidiary, for instance, in order to nudge the video site's 800 million users to sign in and leave comments with their Google+ accounts rather than anonymous handles.

(Reporting by Gerry Shih; Editing by Richard Chang)

Seth MacFarlane says "no way" he would host Oscars again

LOS ANGELES (Reuters) - Comedian Seth MacFarlane said on Tuesday that he would not host the star-studded Academy Awards ceremony again, after TV critics panned Sunday's show.

'Family Guy' creator and star MacFarlane was asked on Twitter whether he would host the Oscars a second time after making his debut in Sunday's show, and replied: 'No way. Lotta fun to have done it, though.'

MacFarlane's response came after TV critics slammed the telecast, in which 40.3 million Americans saw Iran hostage thriller 'Argo' take home the top prize for Best Picture.

In a night of risqué jokes about female nudity and zingers about gays and Jews, MacFarlane, 39, poked fun at himself in an opening sketch with William Shatner and the 'Star Trek' star told him he was in danger of being deemed 'the worst Oscar host ever.'

While some critics lashed out at MacFarlane's hosting, others placed more blame on the overall song-and-dance-heavy show, produced by Craig Zadan and Neil Meron, which ran for 3 1/2 hours.

MacFarlane's appeal among young people did though provide an 11 percent bump in the 18-49 demographic coveted by TV networks and advertisers. And overall viewer ratings were up, making for the largest Oscar audience in three years.

MacFarlane was also a hit on social media, where 13 percent of conversation across Facebook, Twitter and blogs rated him the 'best host ever' according to social media research firm Fizziology.

MacFarlane, the creator and voice star of Fox network's animated shows 'Family Guy,' 'American Dad' and 'The Cleveland Show,' made his directorial debut on the big screen with the R-rated comedy 'Ted' last year.

He is currently working on his next project - writing and directing a live action comedy film 'A Million Ways to Die in the West,' starring Amanda Seyfried and Charlize Theron.

(Reporting By Piya Sinha-Roy, editing by Jill Serjeant and David Brunnstrom)

White House will soon revive cybersecurity legislation push

SAN FRANCISCO (Reuters) - A senior adviser to President Barack Obama said the White House will soon renew efforts to push cybersecurity legislation through Congress, though he foresaw an uphill battle given the failure of the last attempt.

Daniel said the White House has begun drafting 'key legislative principles' for a new bill that it believes can pass both the House and Senate this time.

'We very much want a bill,' White House cybersecurity coordinator Michael Daniel told Reuters while in San Francisco to meet industry experts and business leaders at a security conference. But he added: 'I don't want to leave anybody with an impression that we underestimate the challenges.'

'We will do our best to work with Congress,' he added. 'You will see that develop over the next couple of weeks to months,' he said.

Cybersecurity legislation backed by the Obama administration died in the Senate in November amid fierce opposition from businesses that complained about over-regulation.

That bill would have increased information-sharing between intelligence agencies and private companies, with some privacy protections. It also would have set voluntary standards for businesses that control electric grids, water treatment plants and other essential facilities.

In the absence of overarching legislation, the Obama administration will pursue other means to improve cybersecurity, he said. Those included implementing an executive order the president signed this month that seeks to better protect critical infrastructure from cyber-attacks.

The order directs federal authorities to improve information-sharing on cyber-threats - including some that may be classified - with companies that provide or support critical infrastructure.

'It would be a mistake to assume you can't make any progress in the absence of legislation,' he said.

The principles that the White House will support in new legislation include requiring that a civilian agency must be in charge of information-sharing, Daniel said.

Last year's Senate plan likewise would have put the Department of Homeland Security squarely in charge, though it could turn to the military's National Security Agency for assistance.

(Additional reporting by Joseph Menn and Deborah Charles; Editing by Eric Walsh)

Monday, February 25, 2013

Lawmakers urge Facebook to remove fraudulent Sandy Hook tributes

SAN FRANCISCO (Reuters) - Three Connecticut lawmakers on Monday urged Facebook Inc to remove fraudulent and abusive tribute pages related to the mass shooting at Sandy Hook Elementary School.

In the months since 20-year-old Adam Lanza killed 26 students and teachers in Newtown, Connecticut, the world's No. 1 social network has been host to an outpouring of genuine online tributes - as well as a hotbed of fraud. In December, a New York City woman was arrested for allegedly posing as the relative of a shooting victim on Facebook and swindling donors.

U.S. Senators Richard Blumenthal and Chris Murphy, as well as Rep. Elizabeth Esty, wrote to Facebook Chief Executive Mark Zuckerberg in a joint letter, pressed the company to stamp out pages that 'violate the privacy of families as they grieve, or seek financial gain through soliciting donations under false pretenses, or generating Facebook 'likes' for marketing purposes.'

Facebook, in a statement, said it had devised a new process with dedicated staff to respond to user complaints related to Sandy Hook, in the wake of the December shooting.

'For the past few months, our rapid response team has acted swiftly to remove inappropriate materials flagged by the foundation and the families,' Facebook said. 'We will continue to be vigilant.'

(Reporting By Gerry Shih; Editing by Tim Dobbyn)

App connects users around the globe to personal trainers via video

(Reuters) - For fitness enthusiasts who can't make it to the gym a web-based app will bring group video classes, and some friends for motivation, to them.

Wello, an app that connects users with personal trainers for video-based workouts, has launched group classes for a range of activities, including yoga, Taekwondo and high-intensity interval training. Classes are led by certified trainers and are accessible to anyone around the globe with a webcam and an Internet connection.

'It's that ability to join in on something last-minute and also to explore something new,' said Ann Scott Plante, co-founder of San Francisco-based company Wello.

Like traditional classes, the instructors in the video classes, which have three to five students, offer motivation and feedback. Users can join an existing class, or organize a new one with friends.

Students can see a video feed of each other in the app, along with a feed of the instructor, who can provide feedback to them during the class.

'Instead of watching a static video that could get boring, or isn't necessarily built for you, we thought we would give people the opportunity to meet with a real person who would spend the whole workout with you and correct your form,' Plante said.

Trainers on the platform are professionally certified in the United States and their experience and reviews can be viewed online before booking a class.

Plante said that by comparison to a traditional in-person class, trainers in the video class give more verbal instructions to make it easier to follow along and because they cannot physically adjust the students.

Although trainers can offer personal fitness classes with a video calling service such as Skype, Plante said the scheduling, payment and review features of Wello make it appealing for both instructors and users looking for a workout.

Wello, is available on the web with classes starting at under $10 per class. The company, which launched in July 2012, is working on iPad and television apps.

(Reporting by Natasha Baker in Toronto; Editing by Patricia Reaney and Eric Beech)

Sunday, February 24, 2013

EADS, ThyssenKrupp attacked by Chinese hackers: report

FRANKFURT (Reuters) - Airbus parent EADS and German steelmaker ThyssenKrupp recorded major attacks by Chinese hackers in 2012, German magazine Der Spiegel reported, citing unidentified people within the two companies.

That is a trend seen throughout the German economy, where companies are increasingly being attacked by Chinese hackers, the magazine said, citing information from the German government.

A spokesman for EADS told Reuters the attacks were 'standard attacks' and the company was working closely with government authorities on the issue of cyber security.

ThyssenKrupp also confirmed an attack, saying it took place in the United States from a Chinese internet address and that it had no information as to what data the attackers obtained, according to Der Spiegel.

ThyssenKrupp was not immediately available for comment when tried by Reuters. The Chinese embassy in Berlin and the German economy ministry were also not immediately available to comment.

When confronted with similar accusations in the past, China's Defence Ministry has issued a flat denial and said hacking is a global problem and that China is one of world's biggest victims of cyber assaults.

Germany's Federal Office for the Protection of the Constitution recorded almost 1,100 digital attacks from foreign secret services in 2012, mostly targeted on politicians involved with energy and finance, Der Spiegel said.

Chinese hackers tend to take aim at the largest corporations and most innovative technology companies, using trick emails that appear to come from trusted colleagues but bear attachments tainted with viruses, spyware and other malicious software, according to Western cyber investigators.

(Reporting by Peter Dinkloh, Tim Hepher and Alexandra Hudson; Editing by Mark Potter)

Friday, February 22, 2013

Sexting and bugging revealed at the FBI: CNN

(Reuters) - One FBI employee was fired for sleeping with a drug dealer and lying about it under oath, while another got the boot for bugging the boss's office.

The FBI suspended for 10 days still another employee for emailing a nude photograph of herself to her ex-boyfriend's wife - the bureau showed compassion for the woman after she sought help for depression.

Those cases over the past year were among 29 revealed by CNN on Friday after the cable news network obtained an October 2012 quarterly report the U.S. Federal Bureau of Investigation sent to all its employees that was meant to educate FBI staff but not to be disseminated publicly.

The so-called quarterlies summarized cases investigated by the bureau's Office of Professional Responsibility.

'We have seen a rash of sexting cases and nude photograph cases, you know, people misusing their BlackBerrys for this reason, and we hope getting the message out in the quarterlies is going to teach people you can't do this stuff,' FBI assistant director Candice Will told CNN.

An employee who used a government-issued BlackBerry to send sexually explicit messages to another employee received a five-day suspension. Another who used a personal cell phone to send nude photographs to several other employees received a 10-day suspension, in part because the conduct created office gossip.

'When you're given an FBI BlackBerry, it's for official use. It's not to text the woman in another office who you found attractive a picture of yourself in a state of undress,' Will said.

Many of the cases involved sex, such as that of the employee who visited a massage parlor and paid for a sexual favor from the masseuse. That resulted in a 14-day suspension instead of a more severe penalty because the employee had an exemplary work record and expressed remorse, the FBI documents said.

Others were more serious, such as the case of the employee who admitted purchasing and viewing video of naked boys. That person was summarily dismissed.

Two employees who were busted for driving under the influence of alcohol were fired because in each case it was a second offense.

Another who was cited for public intoxication while walking the street drunk and armed with a bureau-issued weapon received a seven-day suspension.

Improper handling of evidence resulted in suspensions of three and eight days. Shoplifting got a summary dismissal.

CNN posted the documents on http://i2.cdn.turner.com/cnn/2013/images/02/21/office.of.professional.review.-.cnn01302013_0000.pdf.

(Reporting by Daniel Trotta)

Nevada legalizes first interstate online poker

(Reuters) - Nevada has become the first U.S. state to legalize interstate online poker and allow state-to-state gaming agreements, beating New Jersey to the punch and putting in place a potential nationwide framework for Internet wagering.

Republican Governor Brian Sandoval signed the landmark bipartisan bill into law on Thursday, authorizing his office to enter into agreements with other states that will in effect allow Nevada-based companies to host interactive gambling for residents of other states.

A number of companies have already been granted Nevada licenses for online poker, but were prepared to be limited to serving Nevada residents. Applicants include social gaming leader Zynga Inc. Shares in Zynga leapt as much as 7.4 percent on Friday.

With the bill, Nevada - home to Las Vegas, the world's second-largest gambling hub - wants to pave the way for national Internet wagering even though efforts at federal regulation have stalled. Established companies including MGM Resorts and Wynn Resorts hope they can add new customers and pitch online players to come to Vegas.

'This bill is critical to our state's economy and ensures that we will continue to be the gold standard for gaming regulation,' Sandoval said in a statement after signing the bill on Thursday.

The bill removes a provision requiring federal legislation or Department of Justice approval before online gaming licenses are made active, according to Nevada's statement.

Nevada Assembly Majority Leader William Horne, a Democrat from Las Vegas, told Reuters that he expects online poker to be the first of multiple online gambling offerings to residents of other states.

'Initially it'll be starting with online poker, but certainly the infrastructure is set up for various interactive gaming,' Horne said.

'There are approximately a half-dozen companies already licensed to do this in our state,' Horne added. 'We anticipate that to grow significantly.'

Horne said it is too early to say how much Nevada, which relies heavily on tourists spending money at its resorts and in its casinos, will see in the way of revenue from its initiative, which relies on compacts with other states.

'We recognize that online gaming worldwide has generated in excess of $5 billion,' Horne said. 'Going forward we anticipate being competitive in this area.'

Nevada's legislation comes as New Jersey - home to Atlantic City - considers a similar move to legalize online gambling. Republican Governor Chris Christie rejected a measure earlier this month that would have allowed Internet gambling, but has said he would consider approving such a law if it was framed properly.

A RISING TIDE

Many industry players hope that a tide of such proposed legislation will sweep through states across the country, opening a massive new online market.

The bills follow a 2011 declaration by the U.S. Justice Department that only online betting on sporting contests broke federal law. That opened the door for states to legalize some forms of online gambling.

Although widespread legalization appears years away at the minimum, obtaining a license in Nevada would be a meaningful start for the nationwide aspirations of entrants such as Zynga, especially if they can offer games to those in other states.

Zynga, which runs one of the world's largest online communities of poker players, is hoping that a lucrative real-money market could make up for a steep slide in revenue from games like 'FarmVille' that are losing players but still generate the bulk of its sales.

The Nevada signing came after a joint Judiciary committee hearing on Thursday morning and approval by the legislature in the afternoon.

(Reporting by Ian Simpson in Washington, D.C. and Jim Christie in San Francisco; Editing by Joseph Menn, Paul Thomasch and Phil Berlowitz)

Hackers circulate tainted version of China cyber security report

BOSTON (Reuters) - Unknown hackers are trying to infect computers by capitalizing on strong interest in a recent report by a security firm that accuses the Chinese military of supporting widespread cyber attacks on U.S. companies.

Tainted digital versions of the report from cyber forensics firm Mandiant infect PCs with computer viruses that allow hackers to gain remote control of computers after users attempt to read those documents, according to security researchers.

Anti-virus software maker Symantec Corp said on its blog that some of those tainted documents were attached to Japanese-language emails purporting to be from someone recommending the report.

Security engineer Brandon Dixon said on his blog that he had identified a similar document on the Internet, which appeared to have originated in India.

'It was only a matter of time,' Mandiant said on its blog, adding that its own network had not been compromised. 'Reports downloaded, previously and currently from our website, do not contain exploits.'

The report, which is available from Mandiant at http://intelreport.mandiant.com/ charges that a secretive Chinese military unit is behind a series of hacking attacks. It prompted a strong denial from Beijing and accusations that China was in fact the victim of U.S. hacking.

(Reporting By Jim Finkle; editing by Andrew Hay)

Thursday, February 21, 2013

NZ's Telecom lowers profit guidance, sees job cuts

WELLINGTON (Reuters) - New Zealand's Telecom Corp Ltd lowered its earnings guidance for the year and warned of hundreds of job cuts as the country's biggest telecommunications company struggles to compete on broadband pricing and in its business operations.

The top-10 firm warned that ongoing restructuring would result in more job losses down the line and could see full-year adjusted earnings come in at NZ$1.04 billion to NZ$1.06 billion, lower than its previous forecast of flat to a low single-digit percentage fall from NZ$1.09 billion in 2012.

'It is pretty apparent that it will be well into the hundreds (of staff cuts) over the next few months,' Telecom Chief Executive Officer Simon Moutter told reporters, adding that it would announce details in May.

The job losses would follow roughly 350 cuts to date.

The top-10 firm's adjusted net profit was NZ$162 million, slightly higher than market expectations as growth in its mobile business offset low margins on its broadband price plans, while fixed-line businesses also suffered.

Forecasts had been for profits of NZ$157 million, according to a Reuters poll of three analysts.

Profits were significantly down from NZ$240 million in 2012, reflecting significant one-off gains made last year from its demerger in late 2011, when it split off its fixed-line network operations into Chorus Ltd.

Telecom offers retail fixed-line and Internet services, using Chorus's network but sells mobile services using the network infrastructure it retained.

It announced a dividend of 8 cents per share, down from 9 cents last year.

Despite Telecom's downgraded outlook, its shares rose 1.1 percent to a session high of NZ$2.23, on optimism that restructuring will help the firm compete with Vodafone, in the broadband market after it bought Telstraclear's operations last year.

'There's some anticipation of the restructuring potential coming through,' said Shane Solly, portfolio manager at Mint Asset Management in Auckland.

But he added that Telecom could face a rocky future, adding, 'The restructuring announcement will be very influential in how people consider the company going forward.'

Earlier this week Telecom said it would join Vodafone and Australia's Telstra to build a submarine cable between New Zealand and Australia, offering increased capacity and speeds.

(Reporting by Naomi Tajitsu; Editing by Kenneth Barry)

Facebook blocks access to NBC.com after reports site is infected

BOSTON (Reuters) - Facebook Inc has blocked users from accessing the NBC.com website following reports that the site is infected with a computer virus.

Facebook users were told 'This link has been reported as abusive' on Thursday when they attempted to access the NBC.com website.

Several security bloggers warned on Thursday that the site was infected with malicious software, advising computer users to avoid the site.

Officials with NBC could not immediately be reached for comment.

(This story is corrected with changes in paragraph 3 to Thursday from Tuesday)

(Reporting By Jim Finkle and Jennifer Saba; Editing by Gary Hill)

Sony seeks head start over Microsoft with new PlayStation

NEW YORK (Reuters) - Sony Corp said it will launch its next-generation PlayStation this year, hoping its first video game console in seven years will give it a much-needed head start over the next version of Microsoft's Xbox and help revive its stumbling electronics business.

The new console will have a revamped interface, let users stream and play video games hosted on servers, and allow users to play while downloading titles as well as share videos with friends. Its new controller, dubbed DualShock 4, will have a touchpad and a camera that can sense the depth of the environment in front of it.

Sony, which only displayed the controller but not the console, said on Wednesday the PlayStation 4 would be available for the year-end holiday season and flagged games from the likes of Ubisoft Entertainment SA and Activision Blizzard Inc, whose top executives also attended the glitzy launch event.

It did not disclose pricing or an exact launch date.

Sony's announcement comes amid industry speculation that Microsoft Corp is set to unveil the successor to its Xbox 360 later this summer. The current Xbox 360 beats the seven-year-old PlayStation 3's online network with features such as voice commands on interactive gaming and better connectivity to smartphones and tablets.

But all video game console makers are grappling with the onslaught of mobile devices into their turf.

Tablets and smartphones built by rivals such as Apple Inc and Samsung Electronics Co Ltd already account for around 10 percent of the $80 billion gaming market. Those mobile devices, analysts predict, will within a few years be as powerful as the current slew of game-only consoles.

'It looks good and had a lot of great games but the industry is different now,' Billy Pidgeon, an analyst at Inside Network Research, said of the new PlayStation.

'It'll be a slow burn and not heavy uptake right away.'

MIGRATION TO MOBILE

Console makers will also have to tackle flagging video game hardware and software sales, which research firm NPD group says have dropped consistently every month over the last year as users migrate to free game content on mobile devices.

PlayStation 4 will have an app on Android and Apple mobile devices that connects to console games and can act as a second screen, Jack Tretton, President and CEO of Sony Computer Entertainment of America, said in an interview.

'Playstation 4 ... really connects every device in the office and the smartphone and the tablet out there in the world,' Tretton said.

The console, which has been in development for the last five years, will have 8 GB of memory and will instantly stream game content from the console to Sony's handheld PlayStation Vita through a feature called 'Remote Play,' the company said.

'What Sony is banking on is the ease of the use of this system,' Greg Miller, PlayStation executive editor at video game site IGN.com, said.

After six years, Sony PlayStation sales are just shy of Xbox's 67 million installed base and well behind the 100 million Wii consoles sold by Nintendo Co Ltd, according to analysts.

Tretton said it would be a big undertaking to manufacture and distribute the console in Sony's four major markets by the end of the year, adding that it would be a 'phased rollout' that starts before the end of the year.

Sterne Agee analyst Arvind Bhatia predicted Sony would probably get a couple of million units of the PlayStation 4 out by the 2013 holiday season and 7 million or 8 million out a year later.

Sony also announced a strategic partnership with video game publisher Activision Blizzard to take its Diablo III game to the PlayStation 4 and PlayStation 3 consoles.

Activision's upcoming sci-fi shooter game 'Destiny' in development by its Bungie Studio will also be available on PlayStation consoles.

(Editing by Gary Hill, Bernard Orr and Edwina Gibbs)

Wednesday, February 20, 2013

Sony unveils new PlayStation 4 console

NEW YORK (Reuters) - Sony Corp took the wraps off its next-generation video game console called 'PlayStation 4' on Wednesday that will allow users to stream and play video games hosted on servers.

The company revealed the new console, which will succeed the seven-year-old PlayStation 3, in New York.

The controller dubbed 'DualShock 4' will have a touch pad, Mark Cerny, lead system architect on PlayStation 4, said.

Sony purchased U.S. cloud-based gaming company Gaikai for $380 million in July. Using that technology, the new console will offer a cloud-gaming service, the company said.

The 8GB PlayStation 4 can also instantly stream game content from the console to Sony's handheld PlayStation Vita through a feature called 'Remote Play,' the company said.

Sony has also revamped the user interface on the new console that keeps tabs on user preferences and added social networking features.

(Reporting By Liana Baker; Editing by Gary Hill, Bernard Orr)

Cuban dissident blogger inflames splits in Brazil's Congress

BRASILIA (Reuters) - Cold War politics appeared to take over Brazil's Congress on Wednesday during a visit by Cuban blogger Yoani Sanchez, with leftists heckling her as a pawn of U.S. imperialism and others praising her for standing up to Cuba's communist government.

Sanchez, Cuba's best-known dissident, has been followed by boisterous sympathizers of the Cuban government since she arrived in Brazil on Monday on her first trip abroad since receiving a passport to leave the Caribbean island.

After the screening of a documentary about Cuba that she was due to attend in northeastern Brazil was disrupted by demonstrators, Brazilian opposition politicians invited Sanchez to the capital Brasilia for a showing of the documentary in Congress.

But her visit ended up exposing entrenched political divides in Brazil reminiscent of the Cold War, with those on the left hailing Cuba as a victim of U.S. aggression against communism while others praised Sanchez for fighting against political repression on the island.

'Mercenary, go to Disney,' shouted those opposed to her visit, repeating the Cuban government's view that all dissidents on the island are on the payroll of its ideological archenemy, the United States.

'Down with the dictatorship,' yelled sympathizers who welcomed the blogger.

Sanchez, 37, was shielded from the protesters by congressional and Senate leaders of Brazil's main opposition party, the PSDB, led by feisty Senator Alvaro Dias.

Dias has called on members of the ruling Workers' Party and the Cuban ambassador to explain to Congress media allegations that the Cuban embassy in Brasilia has spied on Sanchez and distributed a 'dossier' on the blogger as part of carefully orchestrated smear campaign.

An unperturbed Sanchez visited a committee room to see parts of the documentary, titled 'Cuba-Honduras Connection,' that she had not been able to attend on Monday in Bahia state. The screening of the film, in which she is featured, was the main reason for her trip to Brazil in the first place.

'I dream of the day when we Cubans can express ourselves freely, and have a legislature where all opinions can be heard,' Sanchez told reporters. 'The legislature of my country has a sad record. It has never said 'no' to any law proposed by the government.'

Sanchez's visit touched a political nerve in Brazil, where the left-leaning government of President Dilma Rousseff is often criticized for not taking a more critical stance against Cuba's one-party system and the repression of political dissent there. ID:nL1N0BJ08I]

Sanchez has won several international prizes for blogging about life in Cuba but has been unable to collect them until now. She began a whirlwind 80-day international tour on Sunday after she was granted a passport two weeks ago under Cuba's sweeping immigration reform that went into effect this year.

In Brazil, Sanchez praised recent reforms undertaken by Cuban President Raul Castro but said they were too little.

(Reporting by Maria Carolina Marcello; Writing by Anthony Boadle)