business

Why Picasso charged a million dollars

Femme aux Bras Croisés, 1902
Image via Wikipedia

From Josh Olson’s “I Will Not Read Your Fucking Script” (The Village Voice: 9 September 2009):

There’s a great story about Pablo Picasso. Some guy told Picasso he’d pay him to draw a picture on a napkin. Picasso whipped out a pen and banged out a sketch, handed it to the guy, and said, “One million dollars, please.”

“A million dollars?” the guy exclaimed. “That only took you thirty seconds!”

“Yes,” said Picasso. “But it took me fifty years to learn how to draw that in thirty seconds.”

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Apple’s role in technology

Image representing iPhone as depicted in Crunc...
Image via CrunchBase

From Doc Searls’s “The Most Personal Device” (Linux Journal: 1 March 2009):

My friend Keith Hopper made an interesting observation recently. He said one of Apple’s roles in the world is finding categories where progress is logjammed, and opening things up by coming out with a single solution that takes care of everything, from the bottom to the top. Apple did it with graphical computing, with .mp3 players, with on-line music sales and now with smartphones. In each case, it opens up whole new territories that can then be settled and expanded by other products, services and companies. Yes, it’s closed and controlling and the rest of it. But what matters is the new markets that open up.

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What Google’s book settlement means

Google Book Search
Image via Wikipedia

From Robert Darnton’s “Google & the Future of Books” (The New York Review of Books: 12 February 2009):

As the Enlightenment faded in the early nineteenth century, professionalization set in. You can follow the process by comparing the Encyclopédie of Diderot, which organized knowledge into an organic whole dominated by the faculty of reason, with its successor from the end of the eighteenth century, the Encyclopédie méthodique, which divided knowledge into fields that we can recognize today: chemistry, physics, history, mathematics, and the rest. In the nineteenth century, those fields turned into professions, certified by Ph.D.s and guarded by professional associations. They metamorphosed into departments of universities, and by the twentieth century they had left their mark on campuses…

Along the way, professional journals sprouted throughout the fields, subfields, and sub-subfields. The learned societies produced them, and the libraries bought them. This system worked well for about a hundred years. Then commercial publishers discovered that they could make a fortune by selling subscriptions to the journals. Once a university library subscribed, the students and professors came to expect an uninterrupted flow of issues. The price could be ratcheted up without causing cancellations, because the libraries paid for the subscriptions and the professors did not. Best of all, the professors provided free or nearly free labor. They wrote the articles, refereed submissions, and served on editorial boards, partly to spread knowledge in the Enlightenment fashion, but mainly to advance their own careers.

The result stands out on the acquisitions budget of every research library: the Journal of Comparative Neurology now costs $25,910 for a year’s subscription; Tetrahedron costs $17,969 (or $39,739, if bundled with related publications as a Tetrahedron package); the average price of a chemistry journal is $3,490; and the ripple effects have damaged intellectual life throughout the world of learning. Owing to the skyrocketing cost of serials, libraries that used to spend 50 percent of their acquisitions budget on monographs now spend 25 percent or less. University presses, which depend on sales to libraries, cannot cover their costs by publishing monographs. And young scholars who depend on publishing to advance their careers are now in danger of perishing.

The eighteenth-century Republic of Letters had been transformed into a professional Republic of Learning, and it is now open to amateurs—amateurs in the best sense of the word, lovers of learning among the general citizenry. Openness is operating everywhere, thanks to “open access” repositories of digitized articles available free of charge, the Open Content Alliance, the Open Knowledge Commons, OpenCourseWare, the Internet Archive, and openly amateur enterprises like Wikipedia. The democratization of knowledge now seems to be at our fingertips. We can make the Enlightenment ideal come to life in reality.

What provoked these jeremianic- utopian reflections? Google. Four years ago, Google began digitizing books from research libraries, providing full-text searching and making books in the public domain available on the Internet at no cost to the viewer. For example, it is now possible for anyone, anywhere to view and download a digital copy of the 1871 first edition of Middlemarch that is in the collection of the Bodleian Library at Oxford. Everyone profited, including Google, which collected revenue from some discreet advertising attached to the service, Google Book Search. Google also digitized an ever-increasing number of library books that were protected by copyright in order to provide search services that displayed small snippets of the text. In September and October 2005, a group of authors and publishers brought a class action suit against Google, alleging violation of copyright. Last October 28, after lengthy negotiations, the opposing parties announced agreement on a settlement, which is subject to approval by the US District Court for the Southern District of New York.[2]

The settlement creates an enterprise known as the Book Rights Registry to represent the interests of the copyright holders. Google will sell access to a gigantic data bank composed primarily of copyrighted, out-of-print books digitized from the research libraries. Colleges, universities, and other organizations will be able to subscribe by paying for an “institutional license” providing access to the data bank. A “public access license” will make this material available to public libraries, where Google will provide free viewing of the digitized books on one computer terminal. And individuals also will be able to access and print out digitized versions of the books by purchasing a “consumer license” from Google, which will cooperate with the registry for the distribution of all the revenue to copyright holders. Google will retain 37 percent, and the registry will distribute 63 percent among the rightsholders.

Meanwhile, Google will continue to make books in the public domain available for users to read, download, and print, free of charge. Of the seven million books that Google reportedly had digitized by November 2008, one million are works in the public domain; one million are in copyright and in print; and five million are in copyright but out of print. It is this last category that will furnish the bulk of the books to be made available through the institutional license.

Many of the in-copyright and in-print books will not be available in the data bank unless the copyright owners opt to include them. They will continue to be sold in the normal fashion as printed books and also could be marketed to individual customers as digitized copies, accessible through the consumer license for downloading and reading, perhaps eventually on e-book readers such as Amazon’s Kindle.

After reading the settlement and letting its terms sink in—no easy task, as it runs to 134 pages and 15 appendices of legalese—one is likely to be dumbfounded: here is a proposal that could result in the world’s largest library. It would, to be sure, be a digital library, but it could dwarf the Library of Congress and all the national libraries of Europe. Moreover, in pursuing the terms of the settlement with the authors and publishers, Google could also become the world’s largest book business—not a chain of stores but an electronic supply service that could out-Amazon Amazon.

An enterprise on such a scale is bound to elicit reactions of the two kinds that I have been discussing: on the one hand, utopian enthusiasm; on the other, jeremiads about the danger of concentrating power to control access to information.

Google is not a guild, and it did not set out to create a monopoly. On the contrary, it has pursued a laudable goal: promoting access to information. But the class action character of the settlement makes Google invulnerable to competition. Most book authors and publishers who own US copyrights are automatically covered by the settlement. They can opt out of it; but whatever they do, no new digitizing enterprise can get off the ground without winning their assent one by one, a practical impossibility, or without becoming mired down in another class action suit. If approved by the court—a process that could take as much as two years—the settlement will give Google control over the digitizing of virtually all books covered by copyright in the United States.

Google alone has the wealth to digitize on a massive scale. And having settled with the authors and publishers, it can exploit its financial power from within a protective legal barrier; for the class action suit covers the entire class of authors and publishers. No new entrepreneurs will be able to digitize books within that fenced-off territory, even if they could afford it, because they would have to fight the copyright battles all over again. If the settlement is upheld by the court, only Google will be protected from copyright liability.

Google’s record suggests that it will not abuse its double-barreled fiscal-legal power. But what will happen if its current leaders sell the company or retire? The public will discover the answer from the prices that the future Google charges, especially the price of the institutional subscription licenses. The settlement leaves Google free to negotiate deals with each of its clients, although it announces two guiding principles: “(1) the realization of revenue at market rates for each Book and license on behalf of the Rightsholders and (2) the realization of broad access to the Books by the public, including institutions of higher education.”

What will happen if Google favors profitability over access? Nothing, if I read the terms of the settlement correctly. Only the registry, acting for the copyright holders, has the power to force a change in the subscription prices charged by Google, and there is no reason to expect the registry to object if the prices are too high. Google may choose to be generous in it pricing, and I have reason to hope it may do so; but it could also employ a strategy comparable to the one that proved to be so effective in pushing up the price of scholarly journals: first, entice subscribers with low initial rates, and then, once they are hooked, ratchet up the rates as high as the traffic will bear.

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You need to know if your product is a luxury or a premium

From Seth Godin’s “Luxury vs. premium” (Seth Godin’s Blog: 17 May 2009):

Luxury goods are needlessly expensive. By needlessly, I mean that the price is not related to performance. The price is related to scarcity, brand and storytelling. Luxury goods are organized waste. …

That doesn’t mean they are senseless expenditures. Sending a signal is valuable if that signal is important to you.

Premium goods, on the other hand, are expensive variants of commodity goods. Pay more, get more. … They’re happy to pay more because they believe they get more.

Plenty of brands are in trouble right now because they’re not sure which one they represent.

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Stolen credit card data is cheaper than ever in the Underground

From Brian Krebs’ “Glut of Stolen Banking Data Trims Profits for Thieves” (The Washington Post: 15 April 2009):

A massive glut in the number of credit and debit cards stolen in data breaches at financial institutions last year has flooded criminal underground markets that trade in this material, driving prices for the illicit goods to the lowest levels seen in years, experts have found.

For a glimpse of just how many financial records were lost to hackers last year, consider the stats released this week by Verizon Business. The company said it responded to at least 90 confirmed data breaches last year involving roughly 285 million consumer records, a number that exceeded the combined total number of breached records from cases the company investigated from 2004 to 2007. Breaches at banks and financial institutions were responsible for 93 percent of all such records compromised last year, Verizon found.

As a result, the stolen identities and credit and debit cards for sale in the underground markets is outpacing demand for the product, said Bryan Sartin, director of investigative response at Verizon Business.

Verizon found that profit margins associated with selling stolen credit card data have dropped from $10 to $16 per record in mid-2007 to less than $0.50 per record today.

According to a study released last week by Symantec Corp., the price for each card can be sold for as low as 6 cents when they are purchased in bulk.

Lawrence Baldwin, a security consultant in Alpharetta, Ga., has been working with several financial institutions to help infiltrate illegal card-checking services. Baldwin estimates that at least 25,000 credit and debit cards are checked each day at three separate illegal card-checking Web sites he is monitoring. That translates to about 800,000 cards per month or nearly 10 million cards each year.

Baldwin said the checker sites take advantage of authentication weaknesses in the card processing system that allow merchants to conduct so-called “pre-authorization requests,” which merchants use to place a temporary charge on the account to make sure that the cardholder has sufficient funds to pay for the promised goods or services.

Pre-authorization requests are quite common. When a waiter at a restaurant swipes a customer’s card and brings the receipt to the table so the customer can add a tip, for example, that initial charge is essentially a pre-authorization.

With these card-checking services, however, in most cases the charge initiated by the pre-authorization check is never consummated. As a result, unless a consumer is monitoring their accounts online in real-time, they may never notice a pre-authorization initiated by a card-checking site against their card number, because that query won’t show up as a charge on the customer’s monthly statement.

The crooks have designed their card-checking sites so that each check is submitted into the card processing network using a legitimate, hijacked merchant account number combined with a completely unrelated merchant name, Baldwin discovered.

One of the many innocent companies caught up in one of these card-checking services is Wild Birds Unlimited, a franchise pet store outside of Buffalo, N.Y. Baldwin said a fraudulent card-checking service is running pre-authorization requests using Wild Bird’s store name and phone number in combination with another merchant’s ID number.

Danielle Pecoraro, the store’s manager, said the bogus charges started in January 2008. Since then, she said, her store has received an average of three to four phone calls each day from people who had never shopped there, wondering why small, $1-$10 charges from her store were showing up on their monthly statements. Some of the charges were for as little as 24 cents, and a few were for as much as $1,900.

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Storm made $7000 each day from spam

From Bruce Schneier’s “The Economics of Spam” (Crypto-Gram: 15 November 2008):

Researchers infiltrated the Storm worm and monitored its doings.

“After 26 days, and almost 350 million e-mail messages, only 28 sales resulted — a conversion rate of well under 0.00001%. Of these, all but one were for male-enhancement products and the average purchase price was close to $100. Taken together, these conversions would have resulted in revenues of $2,731.88 — a bit over $100 a day for the measurement period or $140 per day for periods when the campaign was active. However, our study interposed on only a small fraction of the overall Storm network — we estimate roughly 1.5 percent based on the fraction of worker bots we proxy. Thus, the total daily revenue attributable to Storm’s pharmacy campaign is likely closer to $7000 (or $9500 during periods of campaign activity). By the same logic, we estimate that Storm self-propagation campaigns can produce between 3500 and 8500 new bots per day.

“Under the assumption that our measurements are representative over time (an admittedly dangerous assumption when dealing with such small samples), we can extrapolate that, were it sent continuously at the same rate, Storm-generated pharmaceutical spam would produce roughly 3.5 million dollars of revenue in a year. This number could be even higher if spam-advertised pharmacies experience repeat business. A bit less than “millions of dollars every day,” but certainly a healthy enterprise.”

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Famous “Laws” of Business & Technology

These come from a variety of sources; just Google the law to find out more about it.

Parkinson’s Law

“Work expands so as to fill the time available for its completion.”

Source: Cyril Northcote Parkinson in The Economist (1955)

The Peter Principle

“In a hierarchy every employee tends to rise to his level of incompetence.”

Source: Dr. Laurence J. Peter and Raymond Hull in The Peter Principle (1968)

The Dilbert Principle

“Leadership is nature’s way of removing morons from the productive flow.”

Source: Scott Adams’ Dilbert (February 5, 1995)

Hofstadter’s Law

“It always takes longer than you expect, even when you take into account Hofstadter’s Law.”

Source: Douglas Hofstadter’s Gödel, Escher, Bach: An Eternal Golden Braid (1979)

Amara’s Law

“We tend to overestimate the effect of a technology in the short run and underestimate the effect in the long run.”

Source: Roy Amara.

Brooks’ Law

Adding manpower to a late software project makes it later.

Source: Fred Brooks’ The Mythical Man-Month (1975)

Clarke’s 3 Laws

  1. First law: When a distinguished but elderly scientist states that something is possible, he is almost certainly right. When he states that something is impossible, he is very probably wrong.
  2. Second law: The only way of discovering the limits of the possible is to venture a little way past them into the impossible.
  3. Third law: Any sufficiently advanced technology is indistinguishable from magic.

Source: Arthur C. Clarke’s “Hazards of Prophecy: The Failure of Imagination” in Profiles of the Future (1962)

Conway’s Law

“Any piece of software reflects the organizational structure that produced it.”

Source: Melvin Conway (1968)

Gall’s Law

“A complex system that works is invariably found to have evolved from a simple system that worked. The inverse proposition also appears to be true: A complex system designed from scratch never works and cannot be made to work.”

Source: John Gall’s Systemantics: How Systems Really Work and How They Fail (1978)

Godwin’s Law

“As an online discussion grows longer, the probability of a comparison involving Nazis or Hitler approaches one.”

Source: Mike Godwin (1990)

Hanlon’s Razor

“Never attribute to malice that which can be adequately explained by stupidity.”

Herblock’s Law

“If it’s good, they’ll stop making it.”

Source: Herbert Lawrence Block

Kranzberg’s 6 Laws of Technology

  1. Technology is neither good nor bad; nor is it neutral.
  2. Invention is the mother of necessity.
  3. Technology comes in packages, big and small.
  4. Although technology might be a prime element in many public issues, nontechnical factors take precedence in technology-policy decisions.
  5. All history is relevant, but the history of technology is the most relevant.
  6. Technology is a very human activity – and so is the history of technology.

Source: Melvin Kranzberg’s “Kranzberg’s Laws” Technology and Culture, Vol. 27, No. 3 (1986): 544-560

Linus’s Law

“Given enough eyeballs, all bugs are shallow.”

Source: Linus Torvalds

Schneier’s Law

“Any person can invent a security system so clever that she or he can’t think of how to break it.”

Source: Cory Doctorow’s “Microsoft Research DRM talk” (17 June 2004)

Sturgeon’s Revelation

“90 percent of everything is crap.”

Source: Theodore Sturgeon (1951)

Wirth’s Law

“Software is getting slower more rapidly than hardware becomes faster.”

Source: Niklaus Wirth (1995)

Zawinski’s Law

“Every program attempts to expand until it can read mail. Those programs which cannot so expand are replaced by ones which can.”

Source: Jamie Zawinski

Granneman’s Law of Operating System Usage

“To mess up a Linux box, you need to work at it; to mess up your Windows box, you just need to work on it. ”

Source: Scott Granneman’s “Linux vs. Windows Viruses” in SecurityFocus (10 February 2003)

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Small charges on your credit card – why?

Too Much Credit
Creative Commons License photo credit: Andres Rueda

From Brian Kreb’s “An Odyssey of Fraud” (The Washington Post: 17 June 2009):

Andy Kordopatis is the proprietor of Odyssey Bar, a modest watering hole in Pocatello, Idaho, a few blocks away from Idaho State University. Most of his customers pay for their drinks with cash, but about three times a day he receives a phone call from someone he’s never served — in most cases someone who’s never even been to Idaho — asking why their credit or debit card has been charged a small amount by his establishment.

Kordopatis says he can usually tell what’s coming next when the caller immediately asks to speak with the manager or owner.

“That’s when I start telling them that I know why they’re calling, and about the Russian hackers who are using my business,” Kordopatis said.

The Odyssey Bar is but one of dozens of small establishments throughout the United States seemingly picked at random by organized cyber criminals to serve as unwitting pawns in a high-stakes game of chess against the U.S. financial system. This daily pattern of phone calls and complaints has been going on for more than a year now. Kordopatis said he has talked to the company that processes his bar’s credit card payments about fixing the problem, but says they can’t do anything because he hasn’t actually lost any money from the scam.

The Odyssey Bar’s merchant account is being abused by online services that cyber thieves built to help other crooks check the balances and limits on stolen credit and debit card account numbers.

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Mine fires that burn for 400 years

Centralia - Where there's smoke..
Creative Commons License photo credit: C. Young Photography

From Joshua Foer’s “Giant Burning Holes of the World” (Boing Boing: 16 June 2009):

… these sorts of mine fires can stay lit for a very long time. One burned in the city of Zwickau, Germany from 1476 to 1860. Another coal fire in Germany, at a place called Brennender Berg (Burning Mountain), has been smoking continually since 1688!

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The limitations of Windows 7 on netbooks

From Farhad Manjoo’s “I, for One, Welcome Our New Android Overlords” (Slate: 5 June 2008):

Microsoft promises that Windows 7 will be able to run on netbooks, but it has announced a risky strategy to squeeze profits from these machines. The company plans to cripple the cheapest versions of the new OS in order to encourage PC makers to pay for premium editions. If you buy a netbook that comes with the low-priced Windows 7 Starter Edition, you won’t be able to change your screen’s background or window colors, you won’t be able to play DVDs, you can’t connect it to another monitor, and you won’t see many of the user-interface advances found in other versions. If you’d like more flexibility, you’ll need to upgrade to a more expensive version of Windows—which will, of course, defeat the purpose of your cheap PC. (Microsoft had originally planned to limit Starter Edition even further—you wouldn’t be able to run more than three programs at a time. It removed that limitation after howls of protest.)

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Steve Jobs on mediocrity & market share

From Steven Levy’s “OK, Mac, Make a Wish: Apple’s ‘computer for the rest of us’ is, insanely, 20” (Newsweek: 2 February 2004):

If that’s so, then why is the Mac market share, even after Apple’s recent revival, sputtering at a measly 5 percent? Jobs has a theory about that, too. Once a company devises a great product, he says, it has a monopoly in that realm, and concentrates less on innovation than protecting its turf. “The Mac user interface was a 10-year monopoly,” says Jobs. “Who ended up running the company? Sales guys. At the critical juncture in the late ’80s, when they should have gone for market share, they went for profits. They made obscene profits for several years. And their products became mediocre. And then their monopoly ended with Windows 95. They behaved like a monopoly, and it came back to bite them, which always happens.”

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German twins commit the perfect crime

From “Twins Suspected in Spectacular Jewelry Heist Set Free” (Spiegel Online International: 19 March 2009):

Saved by their indistinguishable DNA, identical twins suspected in a massive jewelry heist have been set free. Neither could be exclusively linked to the DNA evidence.

German police say at least one of the identical twin brothers Hassan and Abbas O. may have perpetrated a recent multimillion euro jewelry heist in Berlin. But because of their indistinguishable DNA, neither can be individually linked to the crime. Both were set free on Wednesday.

In the early morning hours of February 25, three masked men broke into Germany’s famous luxury department store Kaufhaus Des Westens (KaDeWe). Video cameras show how they climbed into the store’s grand main hall, broke open cabinets and display cases and made off with an estimated €5 million worth of jewelry and watches.

When police found traces of DNA on a glove left at the scene of the crime, it seemed that the criminals responsible for Germany’s most spectacular heist in years would be caught. But the DNA led to not one but two suspects — 27-year-old identical, or monozygotic, twins with near-identical DNA.

German law stipulates that each criminal must be individually proven guilty. The problem in the case of the O. brothers is that their twin DNA is so similar that neither can be exclusively linked to the evidence using current methods of DNA analysis. So even though both have criminal records and may have committed the heist together, Hassan and Abbas O. have been set free.

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Criminal goods & service sold on the black market

From Ellen Messmer’s “Symantec takes cybercrime snapshot with ‘Underground Economy’ report” (Network World: 24 November 2008):

The “Underground Economy” report [from Symantec] contains a snapshot of online criminal activity observed from July 2007 to June 2008 by a Symantec team monitoring activities in Internet Relay Chat (IRC) and Web-based forums where stolen goods are advertised. Symantec estimates the total value of the goods advertised on what it calls “underground servers” was about $276 million, with credit-card information accounting for 59% of the total.

If that purloined information were successfully exploited, it probably would bring the buyers about $5 billion, according to the report — just a drop in the bucket, points out David Cowings, senior manager of operations at Symantec Security Response.

“Ninety-eight percent of the underground-economy servers have life spans of less than 6 months,” Cowings says. “The smallest IRC server we saw had five channels and 40 users. The largest IRC server network had 28,000 channels and 90,000 users.”

In the one year covered by the report, Symantec’s team observed more than 69,000 distinct advertisers and 44 million total messages online selling illicit credit-card and financial data, but the 10 most active advertisers appeared to account for 11% of the total messages posted and $575,000 in sales.

According to the report, a bank-account credential was selling for $10 to $1,000, depending on the balance and location of the account. Sellers also hawked specific financial sites’ vulnerabilities for an average price of $740, though prices did go as high as $2,999.

In other spots, the average price for a keystroke logger — malware used to capture a victim’s information — was an affordable $23. Attack tools, such as botnets, sold for an average of $225. “For $10, you could host a phishing site on someone’s server or compromised Web site,” Cowings says.

Desktop computer games appeared to be the most-pirated software, accounting for 49% of all file instances that Symantec observed. The second-highest category was utility applications; third-highest was multimedia productivity applications, such as photograph or HTML editors.

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Another huge botnet

From Kelly Jackson Higgins’ “Researchers Find Massive Botnet On Nearly 2 Million Infected Consumer, Business, Government PCs” (Dark Reading: 22 April 2009):

Researchers have discovered a major botnet operating out of the Ukraine that has infected 1.9 million machines, including large corporate and government PCs mainly in the U.S.

The botnet, which appears to be larger than the infamous Storm botnet was in its heyday, has infected machines from some 77 government-owned domains — 51 of which are U.S. government ones, according to Ophir Shalitin, marketing director of Finjan, which recently found the botnet. Shalitin says the botnet is controlled by six individuals and is hosted in Ukraine.

Aside from its massive size and scope, what is also striking about the botnet is what its malware can do to an infected machine. The malware lets an attacker read the victim’s email, communicate via HTTP in the botnet, inject code into other processes, visit Websites without the user knowing, and register as a background service on the infected machine, for instance.

Finjan says victims are infected when visiting legitimate Websites containing a Trojan that the company says is detected by only four of 39 anti-malware tools, according to a VirusTotal report run by Finjan researchers.

Around 45 percent of the bots are in the U.S., and the machines are Windows XP. Nearly 80 percent run Internet Explorer; 15 percent, Firefox; 3 percent, Opera; and 1 percent Safari. Finjan says the bots were found in banks and large corporations, as well as consumer machines.

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How right-wing talk radio works

From Dan Shelly’s “Former News Radio Staffer Spills the Beans on How Shock Jocks Inspire Hatred and Anger” (AlterNet: 17 November 2008):

To begin with, talk show hosts such as Charlie Sykes – one of the best in the business – are popular and powerful because they appeal to a segment of the population that feels disenfranchised and even victimized by the media. These people believe the media are predominantly staffed by and consistently reflect the views of social liberals. This view is by now so long-held and deep-rooted, it has evolved into part of virtually every conservative’s DNA.

To succeed, a talk show host must perpetuate the notion that his or her listeners are victims, and the host is the vehicle by which they can become empowered. The host frames virtually every issue in us-versus-them terms. There has to be a bad guy against whom the host will emphatically defend those loyal listeners.

This enemy can be a politician – either a Democratic officeholder or, in rare cases where no Democrat is convenient to blame, it can be a “RINO” (a “Republican In Name Only,” who is deemed not conservative enough). It can be the cold, cruel government bureaucracy. More often than not, however, the enemy is the “mainstream media” – local or national, print or broadcast.

This is a common talk show tactic: If you lack compelling arguments in favor of your candidate or point of view, attack the other side. These attacks often rely on two key rhetorical devices, which I call You Know What Would Happen If and The Preemptive Strike.

Using the first strategy, a host will describe something a liberal has said or done that conservatives disagree with, but for which the liberal has not been widely criticized, and then say, “You know what would happen if a conservative had said (or done) that? He (or she) would have been filleted by the ‘liberal media.’ ” This is particularly effective because it’s a two-fer, simultaneously reinforcing the notion that conservatives are victims and that “liberals” are the enemy.

The second strategy, The Preemptive Strike, is used when a host knows that news reflecting poorly on conservative dogma is about to break or become more widespread. When news of the alleged massacre at Haditha first trickled out in the summer of 2006, not even Iraq War chest-thumper Charlie Sykes would defend the U.S. Marines accused of killing innocent civilians in the Iraqi village. So he spent lots of air time criticizing how the “mainstream media” was sure to sensationalize the story in the coming weeks. Charlie would kill the messengers before any message had even been delivered.

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Now that the Seattle Post-Intelligencer has switched to the Web …

From William Yardley and Richard Pérez-Peña’s “Seattle Paper Shifts Entirely to the Web” (The New York Times: 16 March 2009):

The P-I, as it is called, will resemble a local Huffington Post more than a traditional newspaper, with a news staff of about 20 people rather than the 165 it had, and a site with mostly commentary, advice and links to other news sites, along with some original reporting.

The new P-I site has recruited some current and former government officials, including a former mayor, a former police chief and the current head of Seattle schools, to write columns, and it will repackage some material from Hearst’s large stable of magazines. It will keep some of the paper’s popular columnists and bloggers and the large number of unpaid local bloggers whose work appears on the site.

Because the newspaper has had no business staff of its own, the new operation plans to hire more than 20 people in areas like ad sales.

Now that the Seattle Post-Intelligencer has switched to the Web … Read More »

Defining social media, social software, & Web 2.0

From danah boyd’s “Social Media is Here to Stay… Now What?” at the Microsoft Research Tech Fest, Redmond, Washington (danah: 26 February 2009):

Social media is the latest buzzword in a long line of buzzwords. It is often used to describe the collection of software that enables individuals and communities to gather, communicate, share, and in some cases collaborate or play. In tech circles, social media has replaced the earlier fave “social software.” Academics still tend to prefer terms like “computer-mediated communication” or “computer-supported cooperative work” to describe the practices that emerge from these tools and the old skool academics might even categorize these tools as “groupwork” tools. Social media is driven by another buzzword: “user-generated content” or content that is contributed by participants rather than editors.

… These tools are part of a broader notion of “Web2.0.” Yet-another-buzzword, Web2.0 means different things to different people.

For the technology crowd, Web2.0 was about a shift in development and deployment. Rather than producing a product, testing it, and shipping it to be consumed by an audience that was disconnected from the developer, Web2.0 was about the perpetual beta. This concept makes all of us giggle, but what this means is that, for technologists, Web2.0 was about constantly iterating the technology as people interacted with it and learning from what they were doing. To make this happen, we saw the rise of technologies that supported real-time interactions, user-generated content, remixing and mashups, APIs and open-source software that allowed mass collaboration in the development cycle. …

For the business crowd, Web2.0 can be understood as hope. Web2.0 emerged out of the ashes of the fallen tech bubble and bust. Scars ran deep throughout Silicon Valley and venture capitalists and entrepreneurs wanted to party like it was 1999. Web2.0 brought energy to this forlorn crowd. At first they were skeptical, but slowly they bought in. As a result, we’ve seen a resurgence of startups, venture capitalists, and conferences. At this point, Web2.0 is sometimes referred to as Bubble2.0, but there’s something to say about “hope” even when the VCs start co-opting that term because they want four more years.

For users, Web2.0 was all about reorganizing web-based practices around Friends. For many users, direct communication tools like email and IM were used to communicate with one’s closest and dearest while online communities were tools for connecting with strangers around shared interests. Web2.0 reworked all of that by allowing users to connect in new ways. While many of the tools may have been designed to help people find others, what Web2.0 showed was that people really wanted a way to connect with those that they already knew in new ways. Even tools like MySpace and Facebook which are typically labeled social networkING sites were never really about networking for most users. They were about socializing inside of pre-existing networks.

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The cochineal insect’s gift of red

From Allen Abel and Madeleine Czigler’s “Scandal, communism, blood” (National Post: 27 June 2008):

The blood-red allure of lipstick is a gift of a parasitic insect that infests cactus plants, principally in Mexico and Peru. It has been known since Aztec and Mayan times that, when boiled, the body of the cochineal insect dissolves into a deep crimson dye. France is the leading importer. Cochineal dye, which is neither Kosher nor Halal (since it is forbidden for Jews or Muslims to consume any insect) also is used in thousands of foods and beverages, ranging from sausages and gelatin desserts to some Cheddar cheese.

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Conficker creating a new gargantuan botneth

From Asavin Wattanajantra’s “Windows worm could create the ‘world’s biggest botnet’” (IT PRO: 19 January 2009):

The Downadup or “Conficker” worm has increased to over nine million infections over the weekend – increasing from 2.4 million in a four-day period, according to F-Secure.

The worm has password cracking capabilities, which is often successful because company passwords sometimes match a predefined password list that the worm carries.

Corporate networks around the world have already been infected by the network worm, which is particularly hard to eradicate as it is able to evolve – making use of a long list of websites – by downloading another version of itself.

Rik Ferguson, solution architect at Trend Micro, told IT PRO that the worm was very difficult to block for security companies as they had to make sure that they blocked every single one of the hundreds of domains that it could download from.

Ferguson said that the worm was creating a staggering amount of infections, even if just the most conservative infection estimates are taken into account. He said: “What’s particularly interesting about this worm is that it is the first hybrid with old school worm infection capabilities and command and control infrastructure.”

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US government makes unsafe RFID-laden passports even less safe through business practices

From Bill Gertz’s “Outsourced passports netting govt. profits, risking national security” (The Washington Times: 26 March 2008):

The United States has outsourced the manufacturing of its electronic passports to overseas companies — including one in Thailand that was victimized by Chinese espionage — raising concerns that cost savings are being put ahead of national security, an investigation by The Washington Times has found.

The Government Printing Office’s decision to export the work has proved lucrative, allowing the agency to book more than $100 million in recent profits by charging the State Department more money for blank passports than it actually costs to make them, according to interviews with federal officials and documents obtained by The Times.

The profits have raised questions both inside the agency and in Congress because the law that created GPO as the federal government’s official printer explicitly requires the agency to break even by charging only enough to recover its costs.

Lawmakers said they were alarmed by The Times’ findings and plan to investigate why U.S. companies weren’t used to produce the state-of-the-art passports, one of the crown jewels of American border security.

Officials at GPO, the Homeland Security Department and the State Department played down such concerns, saying they are confident that regular audits and other protections already in place will keep terrorists and foreign spies from stealing or copying the sensitive components to make fake passports.

“Aside from the fact that we have fully vetted and qualified vendors, we also note that the materials are moved via a secure transportation means, including armored vehicles,” GPO spokesman Gary Somerset said.

But GPO Inspector General J. Anthony Ogden, the agency’s internal watchdog, doesn’t share that confidence. He warned in an internal Oct. 12 report that there are “significant deficiencies with the manufacturing of blank passports, security of components, and the internal controls for the process.”

The inspector general’s report said GPO claimed it could not improve its security because of “monetary constraints.” But the inspector general recently told congressional investigators he was unaware that the agency had booked tens of millions of dollars in profits through passport sales that could have been used to improve security, congressional aides told The Times.

GPO is an agency little-known to most Americans, created by Congress almost two centuries ago as a virtual monopoly to print nearly all of the government’s documents … Since 1926, it also has been charged with the job of printing the passports used by Americans to enter and leave the country.

Each new e-passport contains a small computer chip inside the back cover that contains the passport number along with the photo and other personal data of the holder. The data is secured and is transmitted through a tiny wire antenna when it is scanned electronically at border entry points and compared to the actual traveler carrying it.

According to interviews and documents, GPO managers rejected limiting the contracts to U.S.-made computer chip makers and instead sought suppliers from several countries, including Israel, Germany and the Netherlands.

After the computer chips are inserted into the back cover of the passports in Europe, the blank covers are shipped to a factory in Ayutthaya, Thailand, north of Bangkok, to be fitted with a wire Radio Frequency Identification, or RFID, antenna. The blank passports eventually are transported to Washington for final binding, according to the documents and interviews.

The stop in Thailand raises its own security concerns. The Southeast Asian country has battled social instability and terror threats. Anti-government groups backed by Islamists, including al Qaeda, have carried out attacks in southern Thailand and the Thai military took over in a coup in September 2006.

The Netherlands-based company that assembles the U.S. e-passport covers in Thailand, Smartrac Technology Ltd., warned in its latest annual report that, in a worst-case scenario, social unrest in Thailand could lead to a halt in production.

Smartrac divulged in an October 2007 court filing in The Hague that China had stolen its patented technology for e-passport chips, raising additional questions about the security of America’s e-passports.

Transport concerns

A 2005 document obtained by The Times states that GPO was using unsecure FedEx courier services to send blank passports to State Department offices until security concerns were raised and forced GPO to use an armored car company. Even then, the agency proposed using a foreign armored car vendor before State Department diplomatic security officials objected.

Questionable profits

The State Department is now charging Americans $100 or more for new e-passports produced by the GPO, depending on how quickly they are needed. That’s up from a cost of around just $60 in 1998.

Internal agency documents obtained by The Times show each blank passport costs GPO an average of just $7.97 to manufacture and that GPO then charges the State Department about $14.80 for each, a margin of more than 85 percent, the documents show.

The accounting allowed GPO to make gross profits of more than $90 million from Oct. 1, 2006, through Sept. 30, 2007, on the production of e-passports. The four subsequent months produced an additional $54 million in gross profits.

The agency set aside more than $40 million of those profits to help build a secure backup passport production facility in the South, still leaving a net profit of about $100 million in the last 16 months.

GPO plans to produce 28 million blank passports this year up from about 9 million five years ago.

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