Business Espionage: The Cruffin Caper (and 230 other recipes swiped)

It takes three days to make a cruffin, a muffin-croissant hybrid that is the signature of Ry Stephen, a 28-year-old pastry chef. His shop, Mr Holmes Bakehouse, has been open three months and inspired a wild following, with customers lining up early to buy the ice-cream-cone-shaped cruffins, which reliably sell out before the line is gone...

Now, the tempting sweet may have inspired a crime. Overnight last week, a thief stole the recipe for cruffins, and Mr. Stephen’s 230 other recipes, from binders in the bakery’s kitchen. Nothing else in the store was touched: not money, valuable baking equipment, an iPad or other computers...

Mr. Stephen does not think it was an inside job. He said he trusts his employees and has told them, “You can have any recipe you want, provided you know how to execute it.” Plus a new surveillance system had been installed, but was not yet operational, although the employees did not know that. more

This is a cautionary tale with important points for your business...

1. Secure your proprietary information and business secrets. Keeping them in your "locked" office, on a shelf, where everyone knows where they are, is not adequate.

2. Use top notch security to protect your business secrets. Hire an independent security consultant to assist you with this. Periodically double-check to make sure your security systems are 100% operational.

Expect to see cruffins everywhere, soon.

Tea - the "greatest single act of corporate espionage in history."

The Scottish Spy Who Stole China's Tea Empire

Robert Fortune

In the mid-19th century, Britain was an almost unchallenged empire. It controlled about a fifth of the world's surface, and yet its weakness had everything to do with tiny leaves soaked in hot water: tea. By 1800, it was easily the most popular drink among Britons.

The problem? All the tea in the world came from China, and Britain couldn't control the quality or the price. So around 1850, a group of British businessmen set out to create a tea industry in a place they did control: India.

For All the Tea In China: How England Stole the World's Favorite Drink and Changed History is writer Sarah Rose's account of the effort to control the tea market, what she calls the "greatest single act of corporate espionage in history." more

Barbie Learns How to Talk. (It only took her 50 years.)

In a recent demonstration of its Internet-connected doll, Hello Barbie, a Mattel spokesperson greeted the souped-up version of the iconic doll by saying, “Welcome to New York, Barbie.”

Thanks to voice-recognition technology, Barbie was able to analyze that remark and give a relevant, conversational response: “I love New York! Don’t you? Tell me, what’s your favorite part about the city? The food, fashion or the sights?”

The company promises that the software will enable the doll “to listen and learn each girl’s preferences and then adapt to those accordingly.”

The interactive doll is slated to hit shelves in the fall, and Mattel is likely hoping it will help revive sinking sales of its flagship brand.

But a children’s privacy advocacy group is calling for the company to cease production of the toy, saying Hello Barbie might more accurately be called "eavesdropping" Barbie. Because the doll works by recording children’s speech with an embedded microphone and then sending that data over the Web, these advocates call the technology “creepy” and say it could leave children vulnerable to stealth advertising tactics. On Wednesday, the Campaign for a Commercial-Free Childhood launched a petition urging Mattel to keep the doll from hitting store shelves. more

"Well, gag me with a spoon!"

Defense Against the Spy - 1967 CIA Training Film

The United States Central Intelligence Agency (CIA) presents a case study of devices that were used for espionage purposes during the 1960's.

Security Director Alert - Time to Update Your BYOD Policy (You do have one don't you?)

According to Alcatel-Lucent’s Motive Security Labs, around 16 million mobile devices are already infected by malicious software designed to spy on users and steal confidential data.

This form of malware is capable of tracking the phone and its owner’s location, monitoring ingoing and outgoing calls, text messages and emails, as well as tracking web browsers.

Cyber-criminals are now targeting Android devices with infection rates for Android and Windows devices estimated to be split 50/50.

Many multinational firms, however, still employ an unmonitored bring-your-own-device (BYOD) policy. This frequently means key staff are connecting to the corporate communications network via unsecured smartphones. It has also led to a situation where staff access social networking sites and audio/visual entertainment of all kinds, exposing them to a growing number of malware attacks. more

Spycams and Wiretaps - Motives for Murder

PA - A man has shot his neighbor eight times - leaving her in critical condition - and taken his own life after accusing her of wiretapping his apartment in a years-long rift.

Steven Outlaw, 51, confronted his downstairs neighbor, 46-year-old Mary Pitts-Devine, in the first-floor hallway of their West Philadelphia building just before 11am on Sunday, WPVI reported.

He shot at her 10 times, hitting her with eight bullets and leaving her in critical condition.

Outlaw then went to his second-floor apartment and shot himself dead, police said.

The shooting came after a simmering argument over whether Pitts-Devine was wiretapping the telephone lines of Outlaw's apartment, Philly.com reported...

He had also written down accusations that she was spying on him with video cameras, according to the channel. more

FutureWatch - FM Bugs Are So Arco - Coming Soon... Bugs with Pluck

For the first time in history, a prototype radio has been created that is claimed to be completely digital, generating high-frequency radio waves purely through the use of integrated circuits and a set of patented algorithms without using conventional analog radio circuits in any way whatsoever. This breakthrough technology promises to vastly improve the wireless communications capabilities of everything from 5G mobile technology to the multitude devices aimed at supporting the Internet of Things.

The significance of this new technology cannot be overstated: Every aspect of radio frequency generation is said to be created using a string of digital bits, and nothing else. There are no analog circuits, no filters, no chokes, none of the traditional circuitry and components expected in a radio transmitter. Consisting of a mere handful of components, including a couple of integrated circuits, an antenna, and not much else, the transmitter – dubbed Pizzicato – promises to change the face of wireless transmission.

Created by Cambridge Consultants, the initial trials of the Pizzicato have been claimed to show that it has fully met all the expectations of its myriad performance requirements. But more than this, the Pizzicato has brought bulky radio circuits down to microprocessor levels, with the promise of even smaller, more efficient uses of the technology in future. more

A Short History of Wiretapping

Wiretapping has been around almost since the invention of the telegraph. 

Union and Confederate soldiers intercepted one another’s telegraph wires during the Civil War, scraping off a small piece of insulation and splicing their own line to the enemy’s. 

Later, private detectives spied for clients. The use of a wiretap in a Connecticut divorce case in the 1880s led that state to ban the practice in 1889. News services stole one another’s articles. The use of a wiretap to convey false cotton prices in London, a plot aimed at stock speculators, set off a panic in New Orleans in 1899.

But in the postwar 19th century, much wiretapping of telegraphs and, later, telephones was carried out by crooks trying to cheat other crooks.
more

Workplace Video Voyeurism - Domino’s Falls This Time

NY - An alleged voyeuristic Domino’s worker was arrested after a young woman noticed something odd in the employee bathroom, according to the Nassau County Police Department.

In the early hours of Tuesday morning, a 20-year-old female employee at the 935 Front Street Domino’s in Uniondale took a break to use the bathroom.

Murray Associates composite photo.

The coat rack inside the facility caught her eye, however — specifically, a cell phone peeking out of a jacket pocket. She notified the manager, and her manager dialed 911. The jacket, according to police, belonged to the woman’s co-worker, 19-year-old Jonathan Parra.

Along with footage of the young woman, an investigation revealed images of a 51-year-old man using the bathroom as well.

Parra faces two counts of unlawful surveillance and will be arraigned Tuesday at First District Court in Hempstead.
more

Spying With a Drone May Become a Criminal Offense in CO

Colorado lawmakers want to criminalize the use of drones when they’re used to monitor someone without their consent.

The proposal up for a House committee vote Tuesday would make it a crime of first-degree trespassing to take images of someone when they have an expectation of privacy. Drone users could also be charged with harassment if they use the technology to monitor someone’s movements.

“As technology moves forward, our privacy is becoming more dear to us,” said the bill sponsor, Rep. Polly Lawrence, R-Littleton.

Lawrence’s bill is not just about drones, but “any type of electronic surveillance when a person has a reasonable expectation of privacy.”
more 

Get your (novelty) drone hunting license here. I have one.

Yet More Invisibility Eyeglasses

This year, AVG will reveal a set of concept invisibility glasses at Pepcom in Barcelona before Mobile World Congress. 

What are invisibility glasses?

Developed by AVG Innovation Labs, the glasses help protect your visual identity in the digital age.

Through a mixture of technology and specialist materials, privacy wearables such as invisibility glasses can make it difficult for cameras or other facial recognition technologies to get a clear view of your identity.

...there are generally two different methods of combating unwanted facial recognition:

Infrared Light
The idea is to place infrared LEDs inserted around the eyes and the nose areas. Since the infrared lights are completely invisible to human eyes, they are only detectable by cameras which are sensitive to the wavelengths of these LEDs. They claim to break face detection when the lights are on.

In this example we show how infrared can be used to avoid Facebook’s facial recognition technology.

Retro-reflective Materials
These specialist materials help maintain your privacy at the moment that the image is actually taken.

PS - This is a proof-of-concept project. Not for sale. However, you can make your own.

Other glasses.

Note: Many cell phone cameras have infrared cutoff filters built into their lenses... and you can bet law enforcement facial recognition systems do too.

Fink RAT Co-creator Meets Big Daddy Uncle Sam

One of the co-creators of the Blackshades Remote Access Trojan (RAT) that infected more than 500,000 computers has pleaded guilty to charges of hacking.

 Alex Yücel, 24, faces up to 10 years in prison for his involvement with the $40 program designed to secretly remotely control victims' computers...

Through his creation and sale of the Blackshades RAT, Alex Yücel enabled anyone, for just $40, to violate the property and privacy of his victims...

According to documents filed in the Manhattan federal court, the Blackshades RAT - which was used to secretly take nude photos of Miss Teen USA - could give an attacker complete control over an infected system...
(more)

Indian Oil Ministry Investigating Possible Bugging

India - A sticky tape with a micro-insertion found beneath a table in the office of a top bureaucrat in the ministry has raised suspicion over snooping attempts to tap information on sensitive energy related matters, sources told HT.

“We cannot rule out any possibility... the matter has been brought to the notice of the investigative agencies, who will look into the matter,” a top petroleum ministry bureaucrat told HT requesting not to be identified...

A similar incident of a possible bugging of a government office was reported in June 2011 when suspicion surrounded the office of the then finance minister Pranab Mukherjee. The office of the home ministry and the Intelligence Bureau later confirmed that it was just a suspicion and no bugging took place in the office.
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Indian Corporate Espionage Scandal Deepens

India - A corporate espionage scandal involving allegations of stolen documents from India’s government deepened this weekend, following the arrests of employees at conglomerates controlled by four of the country’s most prominent tycoons, including billionaire brothers Mukesh and Anil Ambani.

The arrests mark the first time since the election of Narendra Modi as prime minister last year that police have launched an investigation targeting such high-profile industrial businesses, and are set leave the companies and their wealthy owners facing a lengthy and potentially damaging legal investigations.
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C.S.I. yi-yi - DNA Can Be Faked!

In a recent story in The New York Times, Andrew Pollack reports that "scientists in Israel have demonstrated that it is possible to fabricate DNA evidence, undermining the credibility of what has been considered the gold standard of proof in criminal cases.

"The scientists fabricated blood and saliva samples containing DNA from a person other than the donor of the blood and saliva. They also showed that if they had access to a DNA profile in a database, they could construct a sample of DNA to match that profile without obtaining any tissue from that person."

“You can just engineer a crime scene,” Dan Frumkin, lead author of the paper, which has been published online by the journal Forensic Science International: Genetics, told the Times. “Any biology undergraduate could perform this.”
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Smart TVs Are Not The Only Things Eavesdropping On You

When the story broke that certain Sansung television sets were eavesdropping on their owners -- a polite way of saying the sets were spying -- it raised some alarms and forced Samsung to rewrite its privacy policy. But if you think hi-tech TVs are the only things capable of gathering your private information and sharing it with others, think again:

Our smartphones and computers, of course, listen to us when we're making audio and video calls. But the microphones are always there, and there are ways a hacker, government, or clever company can turn those microphones on without our knowledge. Sometimes we turn them on ourselves. If we have an iPhone, the voice-processing system Siri listens to us, but only when we push the iPhone's button. Like Samsung, iPhones with the "Hey Siri" feature enabled listen all the time. So do Android devices with the "OK Google" feature enabled, and so does an Amazon voice-activated system called Echo. Facebook has the ability to turn your smartphone's microphone on when you're using the app.
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This is something my clients don't have to worry about. I give them SpyWarn MicSpike™... free. ~Kevin

Spyware Makes Android Phones Play Possum

A particularly devious new Android malware can make calls or take photos even if you shut the device down, according to security research firm AVG.

To achieve this, the malware hijacks the shutting down process — making it appear as though your Android device is shutting down. You see the animation, the screen goes black, but the phone is actually still on.

In this state, the malware can use the phone to send your messages to a third party, record a call or take a photo, essentially turning your phone into a device that spies on you.

AVG, which posted code excerpts showing some of the malware's functionality, names this threat Android/PowerOffHijack.A. According to the company, it infects devices running Android versions below 5.0 and requires root permissions in order to act.

The company spokesperson told us some 10,000 devices were infected so far, mostly in China where the malware was first introduced and offered through the local, official app stores.
(more)

Spywarn™ can detect this.

...and what do you do with electronics returning from International trips?

Officials at the departments of Justice and Homeland Security typically expect employees’ smartphones will be bugged when they travel overseas. So, they are experimenting with various ways to neutralize foreign spy gear.

For years, the FBI has warned government and corporate executives not to use hotel Wi-Fi connections, because of reports that foreign travelers were unknowingly downloading spyware.

When DHS personnel travel, “we understand you go there, you go to Ukraine, you come back, there's a good chance that the BlackBerry or any other device, Androids, iOS, whatever, is probably owned. We get that," said Vincent Sritapan, a cybersecurity division program manager at the DHS Science and Technology Directorate.

To contain the damage, Homeland Security limits what employees can see on their mobile device overseas, and "when it comes back, it's usually quarantined," he added.
(more)

No sure what you should be doing? Call us.

Workplace Video Voyeurism: Rabbi Pleades Guilty to 52 Counts

DC - A prominent US rabbi has pleaded guilty to 52 counts of voyeurism after secretly filming women in his congregation's ritual baths.

Barry Freundel, 63, may have recorded as many as 150 women in the changing area at his orthodox synagogue in Washington DC.

Murray Associates case history photo.

Court documents revealed that Freundel set up a recording device hidden within a digital clock radio in the changing and showering area.

The women were disrobing for the ritual Jewish bath, known as a mikvah.

He has confessed to recording at least 52 nude or partially nude women. Prosecutors say he should be jailed.

They say the actual number of women filmed is likely to have been much higher.

Before his arrest in October 2014, Barry Freundel was a rabbi at the Kesher Israel synagogue in the Georgetown area of the US capital for more than 25 years.
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World's Smallest Voice Recorders

Disclaimer: I do not sell, endorse or promote products.
The following is advertising from the manufacturer. It is posted for two reasons.
1. My private investigator and security director readers are interested in investigation tools.
2. My corporate TSCM clients need to know the type of business espionage tools they face.

Smallest sizes, longest recording time, clearest record sound!

Edic-mini Tiny + А77

This is almost weightless and the smallest recorder in the series, enabling it to conduct recording from built-in rechargeable battery for more than two days. The recorder is perfectly suited for everyday use, recording everyday events and unexpected situations in life.

Technical characteristics:

• Dimensions: 29x15x12 mm;
• Weight: 7 g;
• Battery life in record mode: up to 55 hours;
• Power supply: rechargeable battery.

Detailed description here

Edic-mini Tiny+ B76 

Owing to standard battery as a power supply, B76 is flexible and effective in operation. Due to low power consumption the recorder is able to operate in record mode up to 36 hours. It is perfectly suited both for everyday use and for those who keep the Recorder handy without recording too much.

Technical characteristics:

• Dimensions: 31x25x6 mm;
• Weight: 16 g (without battery);
• Battery life in record mode: up to 55 hours;
• Power supply: battery of CR2016 type.

Detailed description here

Edic-mini Tiny 16+ A75

Professional voice recorder Edic-mini Tiny16 + A75 is the thinnest among the recorders of the Tiny16 + series. The main distinctive feature of the that model is 16-bit audio codec enable to reduce digital noise. Built-in Automatic Gain Control (AGC) makes it possible to perfectly record very loud sounds and amplify silent ones. It is a professional recording device designed for high- quality audio recording in complicated acoustic environment and from long distance, up to 15 meters.

 Technical characteristics:

• Dimensions: 77x27x4 mm;
• Weight: 12 g (without battery);
• Battery life in record mode: up to 55 hours;
• Power supply: rechargeable battery.
  
  Detailed description here

Is Your Home Security System Putting You at Risk? ...news at eleven.

HP has released results of a security testing study revealing that owners of Internet-connected home security systems may not be the only ones monitoring their homes. The study found that 100 percent of the studied devices used in home security contain significant vulnerabilities, including password security, encryption and authentication issues.

Home security systems, such as video cameras and motion detectors, have gained popularity as they have joined the booming Internet of Things (IoT) market and have grown in convenience... The new HP study reveals how ill-equipped the market is from a security standpoint for the magnitude of growth expected around IoT...

The HP study questions whether connected security devices actually make our homes safer or put them at more risk...
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Busman's Holiday, or Moonlighting Surveillance

Australia - A police officer installed a tracking device on a woman's car illegally to detail her movements, a magistrates court in Perth has been told.

The detective sergeant, who has been a police officer for more than 20 years, was on holiday at the time of the alleged offence with the woman's boyfriend, also a police officer.
(more)
(Sing-a-long)

Yet another Hollywood Bugging Scandal

CA - A West Hollywood City Council aide has been suspended and is being investigated by sheriff’s detectives on charges of eavesdropping on another council deputy and then e-mailing portions of her private conversations to local bloggers and residents in the city.

Ian Owens, a deputy to Councilman John Duran, is accused of bugging the City Hall office of Fran Solomon, the deputy to Councilman John Heilman, said city officials who requested anonymity because they were not authorized to discuss the matter.

But, wait. There's more...

Last month, City Council candidate Larry Block was sued by celebrity spray tanner Jimmy Jimmy Coco. The professional tanner... claimed in his suit that Block was his landlord, that he wrongly evicted him and that he had installed “spy cameras” to catch him in the nude.
(more)

Science Magazine - The End of Privacy

The whole magazine is devoted to privacy.

At birth, your data trail began. You were given a name, your height and weight were recorded, and probably a few pictures were taken. A few years later, you were enrolled in day care, you received your first birthday party invitation, and you were recorded in a census. Today, you have a Social Security or national ID number, bank accounts and credit cards, and a smart phone that always knows where you are. Perhaps you post family pictures on Facebook; tweet about politics; and reveal your changing interests, worries, and desires in thousands of Google searches. Sometimes you share data intentionally, with friends, strangers, companies, and governments. But vast amounts of information about you are collected with only perfunctory consent—or none at all. Soon, your entire genome may be sequenced and shared by researchers around the world along with your medical records, flying cameras may hover over your neighborhood, and sophisticated software may recognize your face as you enter a store or an airport.
(more)

Private Investigators Are Being Nailed for Hacking

Private investigators may be the newest front for federal prosecutors in cracking down on the hacker-for-hire business.

In the coming weeks, a private investigator in New York is expected to plead guilty to charges of paying a so-called hacker-for-hire firm to steal email passwords and credentials, said three people briefed on the matter, who spoke on the condition of anonymity because no charges had been filed yet. The guilty plea would wrap up a nearly yearlong investigation by the Federal Bureau of Investigation and federal prosecutors in New York.

Separately, federal prosecutors in San Francisco on Wednesday announced the indictment of two private investigators and two computer hackers on charges that they illegally entered email and Skype accounts to gather information for matters they were working on for clients. Some of the illegally gathered information was intended to support a lawsuit, authorities said.

The identity of the private investigator in New York, who works for a small firm, could not be determined.
(more)

Study - 16 Million Smartphones Infected with Spyware / Malware

About 16 million mobile devices are infected by malicious software that is secretly spying on users, stealing confidential information and pilfering data plans.

That’s the word from Alcatel-Lucent’s Motive Security Labs, which in a study found that malware infections in mobile devices rose a full 25% in 2014, compared to a 20% increase in 2013. In fact, the uptick is so spectacular that Android devices have now caught up with Windows laptops, which had been the primary workhorse of cybercrime, with infection rates between Android and Windows devices split an even 50/50 in 2014.

“With one billion Android devices shipped in 2014, the platform is a favorite target of cybercriminals who can have lots of infection success without a lot of work,” said Kevin McNamee, director of Motive, in a blog. “Android is more exposed than rivals because of its open platform and by allowing users to download apps from third-party stores where apps are not always well-vetted.”

The mobile infection rate in 2014 was 0.68%. Fewer than 1% of infections come from iPhone and Blackberry smartphones.
(more)

Build Your Own Invisiability Device for Under $150

Researchers at the University of Rochester create a 3-D, transmitting, continuously multidirectional cloaking device. ... and they say you can too!
(more)
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To build your own Rochester Cloak, follow these simple steps:

For their demonstration cloak, the researchers used 50mm achromatic doublets with focal lengths f1 = 200mm and f2 = 75mm

1. Purchase 2 sets of 2 lenses with different focal lengths f₁ and f₂ (4 lenses total, 2 with f₁ focal length, and 2 with f₂ focal length)
2. Separate the first 2 lenses by the sum of their focal lengths (So f₁ lens is the first lens, f₂ is the 2nd lens, and they are separated by t₁= f₁+ f₂).
3. Do the same in Step 2 for the other two lenses.
4. Separate the two sets by t₂=2 f₂ (f₁+ f₂) / (f₁— f₂) apart, so that the two f₂ lenses are t₂ apart.

NOTES:

• Achromatic lenses provide best image quality.
• Fresnel lenses can be used to reduce the total length (2t₁+t₂)
• Smaller total length should reduce edge effects and increase the range of angles.
• For an easier, but less ideal, cloak, you can try the 3 lens cloak in the paper.

A patent has been filed for this cloaking device. Please contact UR Ventures for additional information.

5 Million People Wiretapped in One Year (Must be some sort of record.)

Some 5 million people in Turkey were listened in on in 2012, Interior Minister Efkan Ala has stated, referring to a calculation that around 250,000 people who were wiretapped spoke to at least 20 people on the phone. He blamed officers affiliated with the movement of U.S.-based Islamic scholar Fethullah Gülen for the scandal.

“A decision was made [to wiretap] one person, but that person speaks to tens of people. Imagine that he or she spoke to 20 other people - this adds up to 5 million people,” Ala said told state-run Anadolu Agency.

“All these [conversations] were stored and used for blackmailing or threatening. How can such a thing happen?” he asked.
(more)

Why Hotels Check Your ID ...and who gets to see it.

If you’re a privacy-conscious traveler, you may have wondered from time to time why hotels ask for ID when you check in, or why they ask you to give them the make and model of your car and other information that isn’t essential to the transaction. What’s the ID-checking for? ...

DIY ID card

Well, in many jurisdictions around the country, that information-gathering is mandated by law. Local ordinances require hotels, motels, and other lodgers (such as AirBnB hosts) to collect this information and keep it on hand. These laws also require that the information be made available to the police on request, for any reason or no reason, without a warrant.
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Extra...
13 Things Your Hotel Front Desk Clerk Won't Tell You

Privacy Quote of the Week

"The age of information-sharing is brilliant, as long as you have no secrets."
~ Heather du Plessis-Allan

 

...your spoken words will be transmitted to a third party via Voice Recognition.

As the number of connected devices — aka the Internet of Things, aka the sensornet — proliferates so too does the number of devices leaning on voice recognition technology as an interface to allow for hands free control...

The potential privacy intrusion of voice-activated services is massive. Samsung, which makes a series of Internet connected TVs, has a supplementary privacy policy covering its Smart TVs which includes the following section on voice recognition:

You can control your SmartTV, and use many of its features, with voice commands... Please be aware that if your spoken words include personal or other sensitive information, that information will be among the data captured and transmitted to a third party through your use of Voice Recognition.

When all the objects in your home have networked ears that are fine-tuned for commercial intelligence gathering, where will you go to talk about “personal” or “sensitive” stuff?
(more)

Some Simple Corporate Spy Countermeasures

Some information spies navigate the hiring process with every intention to steal corporate secrets for a competitor or foreign state once inside. Others turn against an employer when angered and leave, lured by job offers and incentives to haul out as much data as they can when they go.

Meanwhile, enterprise efforts to spot traitors and limit their access to sensitive data may not be enough. With the right job and the right access, operatives posing as janitors, mailroom employees, or IT staff can skirt efforts to defend data, using their broad access to walk data out the door.

CSO looks at enterprise barriers to these information sleeper agents, how corporate spies get past the protections, and what security leaders can do technically and otherwise to keep their data vaults safe from prying eyes...
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Summary... Thorough background checks, limit access, keep your eyes open.

Security Director Alert - DarkLeaks - The Espionage Bazaar

It looks like the days when concerned individuals share the inner secrets of corporations and governments only due to their nagging consciences are numbered, from here on in they will do so for nothing more than a fast buck. 

A new WikiLeaks-style website has recently been announced that will reward its contributors with Bitcoins in exchange for information.  

If the most valuable commodity is information then it is about to get its own hypermarket; DarkLeaks will allow uses to sell leaked data to the highest bidder in an anonymous blockchain-powered environment where anything goes.

DarkLeaks is being developed by unSystem who are behind DarkWallet, and DarkMarket an anonymous ebay-style marketplace which unlike Silk Road operates on the P2P model so that there is no central point of failure for law enforcement to take down.

The DarkLeaks system is so secure that it does not even allow communication between the seller and the buyer of information. Their website states: “The software uses bitcoin’s blockchain to encrypt files which are released when payment is claimed by the leaker. Files are split into segments and encrypted. These segments are unlocked only when the leaker reveals the key by claiming his bitcoins.”

There are also no limits on the type of content that can be bought and sold. Everything from evidence of corporate corruption to naked pictures of celebrities is up for grabs. UnSystem developer Amir Taaki has told CoinDesk that platforms like DarkLeaks provide a financial incentive for insiders to reveal information thereby “devaluing business models based around proprietary secrecy”.
(more)

This is going to be a BIG problem for corporations. 
Those without a counterespionage strategy will hurt first.

Night Janitor Admits to Hiding Spycam in Staff Bathroom

NV - A former school district janitor told police he hid a video camera in a staff bathroom with the intent to record people using the bathroom in various stages of undress, according to the arrest report.

Gary Wayne Higbee, who has only been employed part-time with the district since September 2014, is facing three counts of capturing an image or the private area of another person...

The video camera was discovered when an employee at Givens Elementary School noticed what appeared to be something hidden next to a silk plant on the bathroom sink.

Another employee told police she noticed Higbee checking out the unisex bathroom every time someone came out of it.

According to the arrest report, Higbee told police he took the camera from his other job at Southwest Airlines, where he works as a ramp agent. He said, he researched on the Internet how to do hidden recordings of people.
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Chinuts - Move Here, Give Us Source Code and Build Some Back Doors (wtf?!?!)

China plans to unveil new cybersecurity rules that require tech companies to hand over source code and build back doors in hardware and software for government regulators. The rules only apply to companies selling computer products to Chinese banks, but they have already sparked anxiety on the part of Western tech companies about being trapped between either giving up intellectual property or not doing business in China.

The new rules—part of cybersecurity policies intended to protect China’s critical industries—first appeared in a 22-page document at the end of 2014, according to a New York Times report. Such rules have not been officially announced yet. But the U.S. Chambers of Commerce joined a number of other foreign business groups in sending a letter [pdf] to the Central Leading Group for Cyberspace Affairs, chaired by President Xi Jinping, that called for “urgent discussions” about the policies. Tech giants such as Microsoft, Cisco, and Qualcomm have also independently voiced their concerns.

Under the bank rules, tech companies would have to hand over source code, set up research and development centers in China, and build hardware and software back doors that would permit Chinese officials to monitor data within their computer systems.
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Workplace Video Voyeurism - Streaming Covert Dressing Room Camera

Reality TV star and Las Vegas showgirl Holly Madison said managers at Mandalay Bay’s 1923 Bourbon and Burlesque watched secret, intimate recordings of her and other women in their dressing room.

Madison and her company, Awesometown Inc., filed a lawsuit Monday against multiple individuals involved with her show, 1923 Bourbon and Burlesque by Holly Madison. A second suit was filed on behalf of the other dancers by the same Las Vegas firm, Garcia-Mendoza and Snavely.

The court documents allege that the corporations and managers who hired Madison and ran the venue filmed, transmitted and disseminated images of the women naked and changing costumes for about five months last year without the women’s knowledge or consent.

Robert W. Sabes, Noel Bowman, Robert Fry and Avi Kopelman, the individuals named in the suit, are accused of secretly placing a digital video recorder capable of storing 17 days of film in the women’s changing room. Video was then streamed to the men’s computers and other digital devices, according to the lawsuit...

In addition to the men named in the lawsuit, the action targets the corporations involved, Fat Hat LLC, ICE Lounge Las Vegas LLC and J. F. Sabes Investment Inc, as well as 20 unnamed people and corporations, which were involved in building the dressing room and setting up the surveillance camera.
(more)

Australian PI Goes Undercover and Gets Sacked (no, really)

Australia - A private investigator who gets paid by councils to have undercover sex inside illegal brothels has been fired after withholding information about a prostitute whom he met on a job.

Over the past four years, "Fred Allen" has received tens of thousands of dollars from at least 10 Sydney metropolitan councils in exchange for evidence that is required, in court, to help close underground parlours.

But in October the investigator was accused, by Sydney-based consultancy firm Brothel Busters, of having "deliberately omitted" important details from a brief of evidence to "protect" an illegal sex worker, with whom he had become "enchanted", while working covertly inside an underground vice den.
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Three Grumpy Spies Nailed with Bugs and Taps

Three men accused in the latest Russian spy case didn't hide behind fake identities and weren't stealing military secrets. The evidence even suggests they were annoyed that their assignment wasn't more like a James Bond film.

Their alleged plot to dig up "economic intelligence" on possible banking penalties and alternative energy sources may not be the stuff of Hollywood movies, but U.S. authorities insist the case is proof that Russian spying is thriving in America more than two decades after the end of the Cold War.

It also shows the time and resources the U.S. still throws at those suspected of being Putin-era spies, using methods developed before many of them were born: listening bugs, hidden cameras and intercepted phone calls.
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Ex-Spy Chief Wanted on Charges of... Spying

Colombia — The former head of Colombia’s intelligence agency ended several years on the run and surrendered to face charges of spying on opponents of former President Alvaro Uribe.

Maria del Pilar Hurtado late Friday turned herself over to authorities in Panama, where she fled in 2010. She was taken on a pre-dawn flight to Bogota, where a judge ordered her to be jailed at the chief prosecutor’s office while charges are considered.

Chief prosecutor Eduardo Montealegre said Hurtado was being processed for at least five offenses that could bring 15 to 20 years in prison for a conviction. He said he would urge Hurtado to cooperate and reveal “who gave the order for the illegal wiretapping.”
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Weird Science - Eavesdropping 3,000 miles away while underwater

1944 - Maurice Ewing and a team of American scientists... believed there may be a layer in the ocean where a combination of pressure and temperature create a narrow channel where certain low-frequency sounds would travel long distances.

In the deep waters of the Atlantic, researches dropped several explosives containing four pounds of dynamite, each timed to detonate at a different depth. Using an underwater microphone called a hydrophone, a second boat stationed 900 miles away successfully detected the sounds.

Subsequent tests picked up the signal at a distance of 3,000 miles.



The discovery of the SOFAR sound channel opened up a new way to study the world's oceans, as well as a unique tool in the nation's defense.
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Four of the Newest (and lowest) Social Engineering Scams

1. Phishing with new lethal-strains of ransomware
Ransomware caught businesses’ attention in 2013 with Cryptolocker, which infects computers running Microsoft Windows and encrypts all of its files, as well as files on a shared server. The extortionists then hold the encryption key for ransom (about $500 USD), to be paid with untraceable Bitcoin. The longer the victim waits to pay, the higher the price, or the data can be erased. Now, copycat CryptoDefense has popped up in 2014 and targets texts, picture, video, PDF and MS Office files and encrypts these with a strong RSA-2048 key, which is hard to undo. It also wipes out Shadow Copies, which are used by many backup programs... 

2. Phishing with funerals 
Perhaps a new low - social engineering gangs have been caught sending people phishing emails that appear to be from a funeral home telling the reader that a close friend of yours is deceased and the burial ceremony is on this date. They have already penetrated and compromised the funeral home’s website, so the moment that the concerned friend clicks on the compromised website they get redirected to a bad guy’s server...

3. IVR and robocalls for credit card information 
Similar Articles group masks Social engineering attacks from the front lines attention. Bad guys steal thousands of phone numbers and use a robocaller to call unsuspecting employees. “It’s fully automated, Sjouwerman says. “The message goes something like – ‘This is your credit card company. We are checking on a potential fraudulent charge on your card. Did you purchase a flat screen TV for $3,295? Press 1 for yes or 2 for no.’” If the person responds no – the script then asks the victim to enter his credit card number, expiration date and security code. In some cases, employees worry that their company credit card has been compromised and they might get into trouble, so they play along...

4. Healthcare records for spear-phishing attacks 
With massive data breaches in 2013, the criminal element has reached a point where they can grab personally identifiable information and start merging records – including healthcare records. For instance, a bogus email looks like it’s coming from your employer and its healthcare provider announcing that they’ve made some changes to your healthcare program. They’re offering preferred insurance rates for customers with your number of children. Then they invite the email reader to check out a link that looks like it goes to the health insurer’s web page. “Because the email is loaded with the reader’s personal information, there’s a high likelihood of one click – and that’s all it takes” to infiltrate company systems...
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How the Hell Are These Popular Spying Apps Not Illegal?

(a long and excellent article)
Here are some sordid scenarios. Your ex-girlfriend can see every time you swipe right while using Tinder. Your former husband is secretly listening to and recording your late-night Skype sessions with your new boyfriend. Some random slippery-dick is jacking off to the naked photos in your private photo library. For millions of people, it's not hypothetical. 

Someone could be spying on every call, Facebook message, snapchat, text, sext, each single keystroke you tap out on your phone, and you'd never know. I'm not talking about the NSA (though that too); I'm talking about software fine-tuned for comprehensive stalking—"spyware"—that is readily available to any insecure spouse, overzealous boss, overbearing parent, crazy stalker or garden-variety creep with a credit card. It's an unambiguously malevolent private eye panopticon cocktail of high-grade voyeurism, sold legally. And if it's already on your phone, there's no way you can tell.

Spyware companies like mSpy and flexiSPY are making money off the secret surveillance of millions of people's devices. Literally millions of people, according to the sales figures provided by these spyware companies, are going about their days not knowing that somewhere, some turdknockers are scouring their photo libraries and contacts and WhatsApp messages, looking for digital misdeeds.

Spyware has been around for decades, but the current crop is especially invasive. They make money by charging people—from $40 a month for a basic phone spying package on mSpy up to $200 a month on one of flexiSPY's bigger plan—for siphoning activity off their target's devices.
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The Sundance Film the FBI Doesn't Want You to See

(T)ERROR is the first film to document an active FBI counterterrorism sting investigation.

In the feature documentary (T)ERROR, which premiered this week at the 2015 Sundance Film Festival, everyone is spying on everyone: the informant on the target, the target on the informant, the FBI on the informant, the filmmakers on the FBI.

Incredibly, directors Lyric R. Cabral and David Felix Sutcliffe manage to film not just the one doing the surveilling but also the one being surveilled — without either subject knowing the other is also appearing on-camera.

It’s a daring feat made even more impressive when you realize the FBI has no idea that the informant they’re using is in fact simultaneously using them.

But unlike Homeland or some John le Carré novel, where spying is sexy and the characters are all perspicacious, (T)ERROR depicts the reality of today’s domestic intelligence gathering: it is not glamorous, the vernacular is informal, the surveillance techniques utilized include “advanced” approaches like trying to befriend someone on Facebook, and incompetence abounds (at one point a confidential phone number is discovered by typing it into Google).
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Cell Phone Spying Case to Court - Force Sheriff to Reveal Secrets

NY - The Erie County Sheriff's Office is scheduled to be in court next week as it refuses to hand over information regarding its use of cell phone spying equipment.

2 On Your Side was first to report on the agency's use of so-called cell site simulator equipment. The machines -- often used under the names "Stingray" and "KingFish" -- mimic cell phone towers and trick phones into sending over information.



As we reported exclusively, the county paid more than $350,000 for the machines.
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The Top 5 Soviet Bugs & Wiretaps During the Cold War

In an interview Leonid Shebarshin, a former head of the First Chief Directorate of the KGB said, “Our good fortune will only be made known after we suffer a major defeat. Our real success will be made known no earlier than 50 years down the line.” Successful spy operations are already a thing of the past, with modern-day intelligence seeming to consist of a series of failures...

1. Operation “Information of Our Times”
2. The wiretapping of Franklin D. Roosevelt in Tehran
3. A bug in the U.S. coat of arms (The Great Seal Bug)
4. Bugs in Moscow and beyond
5. The Soviet Union’s Cuban ears
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This Week in World Eavesdropping Wiretapping Surveillance & Spying

Australia - Deputy Police Commissioner Nick Kaldas will front a parliamentary inquiry into a long-running NSW police bugging scandal. Mr Kaldas was one of more than 100 police alledgedly spied on more than a decade ago as part of a covert internal corruption investigation.
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IL - Illinois legislators provoked public outrage by reviving an eavesdropping law that the Supreme Court of Illinois struck down earlier in the year—in part because it prohibited citizens from recording public interactions with police. Sponsors and supporters of the new version of the law... insisted that the new statute would allow citizens to record police and that the public's concern was unwarranted. In fact however, Illinois' new eavesdropping law is confusing and harsh. Although it does not ban all recording of police—the court took that off the table—it discourages it about as much possible
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R. Crumb prediction (1967)

US - A program used by U.S. and British spies to record computer keystrokes was part of sophisticated hacking operations in more than a dozen countries, security experts said on Tuesday, after former NSA contractor Edward Snowden reportedly leaked the source code for the program.
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Canada - On Monday, a new report was released, based on leaked documents from Edward Snowden, showing that Canadian intelligence agencies—part of the Five Eyes spying conglomerate that includes the US, the UK, Australia and New Zealand—partnered with UK spies to siphon sensitive data from thousands of smartphones by sniffing traffic between applications on the phones and the servers owned by the companies that made the applications. The so-called Badass program is designed to sniff the normal unencrypted communication traffic of certain smartphone apps to glean location information, the unique identifier of the phone and other data that can help spies learn the identity of phone users, among other things. It can also be used to uncover vulnerabilities in a phone to help spies hack it.
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US - Former U.S. nuclear scientist gets 5 year sentence for spying.
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US - The Department of Justice is using an expanded license plate collection program -- originally intended to track drug crime -- to monitor ordinary citizens without criminal records, government documents reveal, raising questions about how widely surveillance data is shared among agencies and companies.
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NYC - A contractor for Johnson & Johnson was arrested for placing a hidden spy camera in a company bathroom that recorded multiple people using the toilet, authorities said. Stephen Lewins, 42, of Brooklyn, was arrested for unlawful surveillance on January 23, after the pinhole camera was discovered in the restroom a week earlier, the NYPD said. A Johnson & Johnson employee found the camera and an SD card hidden in a wall above a light switch inside the unisex bathroom Jan. 16. The company said it alerted the NYPD immediately.
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WI - A ban on undercover videos on Wisconsin farms is being considered at the state Capitol. Though the bill is expected in the next week or so, laws known as “ag gags” have been proposed all over the country. According to the ASPCA, 26 state legislatures have looked at bans on covert video and pictures. That footage is typically used by animal rights groups to expose animal cruelty and mistreatment.
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Canada - A cast member of CTV sitcom Spun Out has been accused of voyeurism after two women alleged they found hidden cameras in a Toronto condo. Jean Paul "J.P." Manoux, 45, was charged Tuesday by Toronto Police with one count of voyeurism. Last week, Police officers responded to a call from two women -- ages 27 and 25 -- at a Queen St. W. condominium building. The two women allegedly "discovered hidden cameras and video equipment connected to the Internet" in a condo they rented from a man, according to a police statement.
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