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Cyberthieves yank $45 million in sophisticated ATM hack, make Ocean's Eleven look trivial
It has the makings of a film -- but the fallout from one of the world's most sophisticated ATM heists is very real. The New York Times is reporting that a massive team of criminals worked in concert in order to grab some $45 million in a matter of hours over the course of two operations. The sheer scope of the project is hard to wrap one's mind around, involving trained personnel positioned in over two dozen countries. Earlier today, federal prosecutors in Brooklyn "unsealed an indictment charging eight members of the New York crew, offering a glimpse into what the authorities said was one of the most sophisticated and effective cybercrime attacks ever uncovered." In essence, the hackers were able to infiltrate various credit card processing companies and raise withdrawal limits on prepaid accounts -- from there, cashing crews hit thousands of ATMs, socking away millions in the process. Hit up the source link for the full read; it's a wild one, for sure.
House bill proposes fines on retail games without ESRB ratings, prohibition of some sales to minors
Bill H.R.287, or the "Video Games Ratings Enforcement Act" as it will likely be more widely known, seeks to accomplish three goals: To make illegal the act of selling or renting video games that have not been evaluated by the ESRB, to legally prohibit the sale of Adults Only/Mature games to anyone under the age of 18/17 respectively, and to institute a fine not in excess of $5,000 in the event of noncompliance.The bill's second and third provisions aside, mandating that all games be rated doesn't sound too wildly outside the scope of reason, save for the fact that the industry's current architecture supports that already. Granted, indie games that end up on Steam or other PC/Mac distribution platforms may not seek out ESRB evaluation, but any game released for any console must have an ESRB rating, as Nintendo/Sony/Microsoft will refuse licensing otherwise.If the rest of what VGREA is attempting to accomplish sounds familiar, it's because the Supreme Court of the United States already declared such legislation unconstitutional way back in June of 2011. So, unless time is cyclical and this bill is actually what the court ruled on in 2011, the chances of this new one getting off the ground are pretty slim.
Japan prohibits import of R4 cartridges
Nintendo's ongoing struggle against the now-infamous R4 cartridge continues, as another blow against the potentially devious device has been dealt in Japanese government. While the R4 has been illegal to sell in Japan since 2009, importing the thing was still technically legal. Now, however, that too has been prohibited by the Japanese Ministry of Economy, Trade and Industry.For those of you new to this perpetually unfolding saga of prohibition, let's recap: The R4 is a flash cartridge for the Nintendo DS, which allows users to play homebrew and/or pirated games on their handhelds. You can probably guess which usage was more common.So far, distributing the R4 (and similar devices) has been banned in Japan, France and the UK. Additionally, Amazon and eBay have discontinued sales of the cart at the behest of Nintendo. Australian-based distributors of the cartridges have been successfully sued by Nintendo, and a man in the UK went to prison for a year for importing over 26,000 carts.So, if you have to run an illegal import/export business, take our advice and shift away from the R4 and refocus on something less dangerous to work with, like cursed Egyptian artifacts, or mint-in-box time-traveler's bones.
Former Olympus executives plead guilty in accounting fraud trial
Three executives from troubled imaging giant Olympus have pleaded guilty to artificially boosting the company's true value in 2007 and 2008 by concealing losses in financial statements. Former chairman Tsuyoshi Kikukawa, ex-auditor Hideo Yamada and former VP Hisashi Mori were charged with fraud in the scandal, which was brought to light last year by ex-CEO Michael Woodford. He was fired by the Olympus board for blowing the whistle, but reportedly received a large settlement for his troubles. The company has since confessed to cooking the books as far back as the '90s to hide investment losses, and revealed in 2011 that it had a billion dollars less in value than previously stated. That, along with the poor performance of its camera division, has forced Olympus to seek a partner or raise capital to survive.
Apple reportedly shutting down unauthorized third-party beta sales, restricts iOS 6 to licensed devs
Apple has been arguably more generous when it comes to software sneak peeks than it has been with hardware, but while dues-paying developers are given the go-ahead to download operating systems ahead of their release, consumers have had to sit tight until after each iteration hits GM status. Some internet entrepreneurs have taken it upon themselves to game Apple's system, however, which until recently appeared to have been loosely guarded, with third parties selling beta access for years without intervention. iOS 6 is shaping up to be the end of the line -- Apple has reportedly begun targeting businesses selling early access, citing copyright infringement and contacting hosting providers to shut down sales sites. The operations can be quite profitable, with income approaching six figures for iOS 6 alone, so it's likely that we'll see businesses open up shop under different domains in an attempt to continue to collect. Still, if you're running such an operation of your own, it may be worth your while to peruse Apple's non-disclosure agreement in full -- a site shut down could be but the beginning of the company's actions to control OS releases, and prevent third parties from illegally capitalizing on Cupertino's creations.
Ask Engadget: Are KIRFs worth it?
We know you've got questions, and if you're brave enough to ask the world for answers, here's the outlet to do so. This week's Ask Engadget inquiry is from Sabin, who wants a high-spec smartphone and is prepared to venture to the dark side to get it. If you're looking to send in an inquiry of your own, drop us a line at ask [at] engadget [dawt] com. "I know, I know. I sound like an idiot, but I'd like a full-featured smartphone without the hefty cost. I'm looking for an unlocked phone and came across some of the China Global iPhone KIRFs that run Android. I'm no slouch in loading ROMs, building jtags, etc., but I'd like to know if the hardware is solid, because I can make the software work if that's the case." Putting aside the various ethical and legal quandaries for the moment, it's a very good question. Are KIRFs usable smartphones for those who know their way around tech? Does the hardware work to such a standard that you can expect useful performance and bluff your way through a crowd of those paying full price? Share your experiences with the group -- we're sure you'll feel better afterward.
EVE Evolved: Risk vs. reward in lowsec
In EVE Online's early years, one of its core design philosophies was adherence to a strict risk vs. reward balance scheme. There were riches out there to be found, but to get them, you had to put yourself in the firing line. Police ships patrolled high-security space to keep players safe from piracy, but the only resources available there were low-bounty frigate NPCs and inexpensive ores like Veldspar, Scordite and Omber. In the lawless far-reaches of nullsec, huge NPC bounties and rare ores containing Megacyte and Zydrine tempted hundreds of pilots to head out and make their fortunes. Nullsec offered absolutely no protection against player attacks, and the only safety to be found was in sheer military force. The biggest and best corporations hoarded these gold mines for themselves, locking down the few entrances into the regions and patrolling the skies for unwanted visitors. Low-security space offered a middle-ground between these two extremes, a place where the everyday pilot could enjoy increased income and pirates were easier to spot. At some time in the past nine years, lowsec lost its place in the game and became simply not worth the effort. But how did that happen, and what can be done to fix it? In this week's EVE Evolved, I look at why lowsec systems are now ghost towns and suggest an alternative design philosophy that I think could revitalise these under-used areas.
AU Optronics found guilty of US price fixing, appeal already in the works
AU Optronics has had its name bandied about in the courtroom before, most recently in a 2009 group suit where it was targeted for LCD price fixing. 'Course, LCD price fixing has been quite a popular pastime for a smattering of outfits, but it looks like AUO will be seeing the wrong end of the decision process here in the States. A US court found the Taiwanese company guilty in a case that could see it hit with a fine totaling as much as $1 billion. Yeah, with a b. As it goes, the outfit was charged as part of an alleged price-fixing group that operated between 1999 and 2006, but it was the only Asian LCD maker in that lot to plead not guilty. This here ruling comes after LG agreed to pay a $400 million fine in 2008, while Samsung talked itself into an early deal to sidestep prosecution. A pair of AUO execs were also found guilty, but its former CEO L.J. Chen (who is still hanging around in the top brass) was not. We're told that the company plans to appeal -- a process that could last as long as a year -- but that hasn't kept its stock price from sinking in the interim. First comes sliding LCD margins, and now the looming thought of a $1 billion slap on the wrist; suddenly, your woes don't seem so bad, huh?
Mass Effect 3: Space Edition almost raffled off in illegal lottery
Two men who tried to raffle off one of the early Mass Effect 3 "Space Edition" copies decided to call their plan off, after discovering their actions could include possible jail time. Kotaku reported earlier today that videomakers Michael Davis and Miguel Droz were holding a lottery where folks interested in winning a copy of the game early could pay $5 for a ticket, with 30 percent of the accumulated cash going to the Child's Play charity. One tiny problem: It's all so illegal.Former Law of the Game on Joystiq columnist Mark Methenitis explained that the pair could have faced jail time or massive fines in their home state of Nevada, to say nothing of the federal implications for taking cash from across the country.Droz told Kotaku this afternoon that they should have done their due diligence and are refunding everyone's money. They "super apologize" for wasting anyone's time. Guess they'll just have to suffer through playing Mass Effect 3 now instead of selling it off.
Former Olympus chairman Tsuyoshi Kikukawa comes down from the mount, into police custody
If you've been following the latest camera industry accounting scandal, then you're probably well aware that all is not well at Olympus. The Japanese company took its latest blow today when former chairman Tsuyoshi Kikukawa was arrested in Tokyo on suspicion of having falsified financial statements. The Tokyo prosecutor's office released a statement saying that two other former execs were also brought into police custody, including Hisashi Mori, a former executive vice president, and Hideo Yamada, a former auditor. Olympus is also faced with the possibility of being delisted from the Tokyo Stock Exchange -- the decision has been deferred awaiting further evidence. So what does all this mean for the scandal-ridden camera maker's position in the industry? Little, perhaps, from a consumer perspective, considering that Olympus has continued to announce and ship new products, including the well-received EM-5. The fate of its former executives, however, is less auspicious.
Apple files German lawsuit against Samsung, targets Galaxy S II, nine other smartphones
With patent infringement accusations going every which way in recent months, we're certainly familiar with Apple/Samsung banter in the international arena. Now Apple has thrown yet another punch at the Korean smartphone maker, targeting its Galaxy S II, Galaxy S Plus and eight other handsets, claiming -- yes, you've got it -- patent infringement. The suit was filed in Dusseldorf Regional Court -- the same venue that the company used to target the Galaxy Tab 10.1N, which was created specifically to sidestep a September injunction, also in Germany. It's becoming rather difficult to keep track of all the IP hubbub across the pond, but we'll surely be back with more as soon as the German court has a ruling to share.
The SOPAbox: Defeating online piracy by destroying the internet
Disclaimer: The Soapbox column is entirely the opinion of this week's writer and does not necessarily reflect the views of Massively as a whole. If you're afraid of opinions other than your own, you might want to skip this column. Unless you've been living under a rock, chances are you've heard of SOPA and PIPA. The Stop Online Piracy Act and PROTECT IP Act are two radical pieces of copyright legislation currently being pushed through the US government. Although the stated intent of the new legislation is to provide companies with additional tools with which to combat piracy, the bill's loose wording has raised some serious alarm bells. Opponents to the proposed law say it would give corporations the ability to shut down any almost any website under the guise of protecting copyright infringement. Gamers will be affected worst of all, as the loose wording of the law makes any website with user-submitted content potentially vulnerable to a shut down order. That could include YouTube, Facebook, Twitter, any blog with a comment section, or even any online game with a chat system. Perhaps the scariest part is that you'll be affected even if you're not in the US, as one of the new law's enforcement mechanisms is to remove a site from the DNS records, a move that assumes the US has jurisdiction over the global Domain Name System. AOL is among many huge companies strongly opposing SOPA, and so naturally Massively opposes it too. In this week's massive two-page Soapbox, I make the case for why you should be worried about SOPA, and I suggest what can be done to tackle piracy in the games industry. Comments can be left on page two.
Quanta sues AMD, claims it sold defective products
Yikes. Quanta -- also known as the planet's largest contract maker of laptops -- has just slapped a nasty lawsuit on the world's second-largest chipmaker. According to Bloomberg, Quanta is alleging that AMD and ATI sold chips that "didn't meet heat tolerances and were unfit for particular purposes." Those chips were then used in NEC-labeled machines, and caused them to "malfunction" in some regard. No big deal? Hardly. In the complaint, Quanta states that it has "suffered significant injury to prospective revenue and profits," and it's seeking a jury trial and damages for good measure. As if that weren't harsh enough, the suit also claims "breach of warranty, negligent misrepresentation, civil fraud and interference with a contract." When pinged for comment, AMD's spokesman, Michael Silverman stated: "AMD disputes the allegations in Quanta's complaint and believes they are without merit. AMD is aware of no other customer reports of the alleged issues with the AMD chip that Quanta used, which AMD no longer sells. "In fact, Quanta has itself acknowledged to AMD that it used the identical chip in large volumes in a different computer platform that it manufactured for NEC without such issues." Somewhere, Intel has to be smirking.
Belarus limits use of 'foreign' websites, while Kuala Lumpur mandates WiFi in eateries
Talk about polar opposites. In an update posted to the Library of Congress, we're told that the Republic of Belarus will begin fining citizens that host domestic sites on "foreign" domains. Crazy? Definitely, but no less true. Starting later this week, any Belarusian not registered as an entrepreneur may use "only domestic internet domains for providing online services, conducting sales, or exchanging email messages." According to the interpretation, it "appears that business requests from Belarus cannot be served over the internet if the service provider is using online services located outside of the country," and police (as well as the secret police) are authorized to "initiate, investigate, and prosecute such violations." Wilder still, owners of internet cafes could have their entire business shut down if users are found to be accessing external sites on those networks, and for those curious, the law "may" extend to browsing within one's private home. In a land a bit closer to the equator, it seems as if officials have their heads in a far more sensible place. Kuala Lumpur -- already home to one of the world's most lust-worthy airports and some of the most accessible / affordable mobile data plans -- will soon mandate that all new restaurants provide WiFi to their customers. And by "WiFi," we mean "access to the entire internet." According to the New Strait Times, the rule will be enforced as early as April, applying to eatery owners operating on premises larger than 120 square meters. We're told that existing owners will be forced to comply when renewing their license, and while the waves won't have to be given away for free, they'll be encouraged to charge no more than a "reasonable fee." Furthermore, the government is considering dipping into its own pockets in order to extend gratis WiFi to public facilities in the city, likely as a follow-up plan to the expiring WirelessKL contract. As if going to wander through Batu Caves and the colorful streets shown above weren't enough reason to visit Malaysia...
Bell Canada will stop throttling your P2P traffic, might charge instead
Since the CRTC took a swipe at net neutrality a few years back, Bell Canada internet customers have maligned its P2P packet-shaping ways. From March 1st, however, users can file-share at the speeds nature (or your ISP) intended. In a letter to the aforementioned regulator, Bell points out that improvements to its network and the proliferation of video streaming mean that the more nefarious traffic just isn't denting its capacity like it used to. As such, the firm will withdraw all P2P shaping for both residential and wholesale customers. So, those ISPs buying their bandwidth from Bell could see the amount they need go up, and with talk of a capacity-based billing model, this could mean charges passed on to users. At least, for now, all that legitimate sharing you do will go unhampered.
German court's preliminary ruling says Samsung's Galaxy Tab 10.1N isn't aping the iPad
Round a few corners, a bit of nip-tuck and a tossed-on N. Oh, and probably just being sick and tired of the whole ordeal. We're assuming that's the recipe for getting the Cupertino-sourced gorilla off of Samsung's back, as a judge at the district court in Düsseldorf, Germany just issued a preliminary ruling that effectively clears the Galaxy Tab 10.1N from claims that it too mimics the iconic iPad. If you'll recall, the court blocked German sales of the original Tab 10.1 back in September, following Apple's arguments that Sammy's tab just looked too much like the iPad. Not surprisingly, the subtly-redesigned Tab 10.1N still drew fire from Apple's lawyers, but it's looking like they'll be riding home on the losing train this go 'round. A final verdict is expected on February 9th, of which we're sure you'll be resting uneasily on the edge of your seat to hear the result of. Courtroom fever -- catch it!
Justice Department antitrust division probing Verizon cable spectrum deals
Looks like AT&T isn't the only major carrier having issues with the guv'ment lately. Remember that 20MHz AWS spectrum that Verizon got from Cox Communications for a cool $315 million this month? How's about that juicy spectrum Big Red scored from Comcast, Time Warner and Bright House for $3.6 billion? Well, it turns out those deals are raising an eyebrow or two over at the Justice Department, which just launched an investigation into the matter. A spokesperson for the department confirmed the probe with Bloomberg News but declined to provide further details. A source familiar with the investigation, however, says the antitrust division is involved. Apparently, there's concern that the deal puts too much control of the airwaves in the hands of Verizon. For its part, Verizon declined to comment, saying it has yet to receive information about the investigation.
Olympus' Tokyo offices raided over accounting scandal
Eke. A nearly-century old outfit is currently giving up office space to Japanese prosecutors, who today moved in on Olympus' Tokyo facilities in a raid surrounding an ongoing accounting investigation. According to reports from The Wall Street Journal and Reuters, the scandal involves many billions of dollars -- "irregularities" that have raised serious concerns about the outfit's handling of funds. It's bruited that the company has been running a scheme to conceal over $1.5 billion in investment losses, and we're told that the raid should pass right on through Olympus' headquarters and into the "homes of executives involved in the cover-up." All of this follows an admission last month that the firm had used "inflated payments made in acquisitions in recent years," and while it remains unclear what all of this means for its future, there's no doubt a few dark months are ahead as things sort themselves out. So much for looking pretty for the camera, eh?
Dutch officials contemplate barring KPN, T-Mobile and Vodafone from spectrum auction
A spectrum auction looms on the horizon in the Netherlands, but three of the country's largest players may be excluded from participation. As you know, earlier this week, Dutch authorities raided the offices of KPN Mobile, T-Mobile Netherlands and Vodafone Netherlands in a price-fixing investigation. The Netherlands Competition Authority (NMa), which carried out the raid, stressed that its visit does not mean the operators are guilty of collusion or hint at the outcome of its investigation. Now, Dutch lawmakers and the country's Minister of Economic Affairs must come to a decision about the auction that's set to take place in the spring of 2012 -- which is likely to be well in advance of any final report from the NMa. One option tossed around has been to postpone the auction, though, as lawmakers point out, this could hinder the development in the mobile space and further limit competition. Alternately, had any of the named companies actually profited from the alleged collusion, there's a risk that these monies could be used to purchase additional spectrum and further extend their dominance. Those discussing the matter hope to move quickly, though it certainly seems difficult to make any decision of this magnitude lightly.
T-Mobile, Vodafone and KPN raided in Dutch price-fixing probe
Details are pretty slim at the moment, but it appears that Vodafone, KPN and T-Mobile are among the companies that have been raided by Dutch regulators in a price-fixing investigation. The country's competition authorities, NMa, swept through the carriers' offices as part of a probe into alleged "cartel agreements" exposed by whistleblowers. All three of the companies have agreed to cooperate with the investigation and have denied wrong doing but, they're starting with a dark cloud of suspicion hanging over their heads already. It was only ten years ago that the same three mobile operators were fined for illegally coordinating on pricing and fees. Obviously, it's wrong to jump to conclusions, but what are the chances these huge corporations just haven't learned from their past mistakes?
