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Hackers 'target S Korean military'

Written By Unknown on Senin, 08 Juli 2013 | 09.10

8 July 2013 Last updated at 09:28 ET

Hackers who wiped tens of thousands of PC hard drives in South Korea earlier this year also appear to be targeting the country's military secrets, according to a report.

A study by McAfee Labs said the group has created malware which scanned systems for keywords including "weapon", "US Army" and "secret".

It said that once a computer's contents had been catalogued, the attackers could "grab documents at will".

South Korea has played down the threat.

Its defence ministry told the Associated Press news agency that it was technically impossible to have lost classified reports because the computers on which it stored military secrets were not connected to the net.

A spokesman for the Pentagon said it planned to review the report.

Social network

McAfee said the attacks were part of a long-term spying operation dating back to at least 2009 which it called Operation Troy because the name of the ancient city repeatedly appeared in the hackers' code.

It began investigating the group following an attack in March which caused data held on PCs used by several banks and TV networks to be deleted.

Although the security firm said that the malware used to wipe the disks was distinct from that used to hunt for the military secrets, it said there were so many similarities between the two that it believed they must be created by the same team.

It traced the spying effort back to at least 2009 when it said the hackers managed to place an exploit on a military social networking site. It added that it believed the code was also spread through the use of "spear phishing" - email or other messages masquerading as official communications which were designed to fool specific individuals into handing over logins and other sensitive information.

The report said that once the malware was in place it searched the infected systems for "interesting" documents.

To do this it scanned for a variety of Korean and English-language keywords.

The study lists dozens of examples including "tactics", "brigade", "logistics" and "Operation Key Resolve" - a military exercise involving both South Korean and US forces carried out every year. McAfee said it had opted to withhold other "sensitive" terms at the request of US officials.

The report explained the software then flagged which computers appeared to have the most valuable contents and uploaded copies of their directories to the attackers' servers.

It said the hackers were then able to pick and choose which files to download in order to keep network traffic to a minimum, helping them avoid detection.

McAfee also warned that it had discovered a version of the spying malware which had the ability to destroy data in a way similar to the one used against the civilian targets.

"This capability could be devastating if military networks were to suddenly be wiped after an adversary had gathered intelligence," it said.

"There was at least one limitation, however. We found the malware of February 2011 could wipe its targets only if it was detected that it was being debugged or analysed by a security product."

Wiper function

A spokesman for South Korea's government denied classified documents would have been at risk since the computer network that stored them was not connected to the net.

"It's physically separated," said Kim Min-Seok.

However, one of the report's authors suggested there was still a risk.

"It is not entirely impossible to extract information from a closed network that is disconnected from the internet," said senior threat researcher Ryan Sherstobitoff.

"[But] it would require some extensive planning and understanding of the internal layout to stage such an exfiltration [unauthorised data transfer] to the external world."

The report does not name who McAfee believes to be responsible, however South Korean officials have previously said that the 20 March attack "resembled North Korea's past hacking patterns".


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Samsung profit outlook misses estimates

5 July 2013 Last updated at 00:05 ET

Samsung Electronics, the world's biggest mobile phone and TV maker, has forecast weaker-than-expected profits for the April to June quarter.

It has estimated an operating profit of 9.5 trillion won ($8.3bn; £5.5bn) for the quarter. Most analysts had expected a figure closer to 10.1tn won.

The success of its smartphones has been key to Samsung's recent growth.

However there have been concerns that its growth rate may be slowing despite the launch of new models.

Samsung shares fell 3.8% after the profit guidance. Its shares have dropped more than 15% since early June, after a various brokerages downgraded their outlook for the firm.

"The slowdown in its handset business appears to be worse than expected and the disappointing result simply reinforces the market view that Samsung's smartphone growth momentum is slowing," said Lee Sei-chul, an analyst at Seoul-based Meritz Securities.

'Diversification key'
Continue reading the main story

One of the biggest risks for Samsung Electronics going forward is that 70% of total operating profit comes from mobile business"

End Quote Jeff Kim Hyundai Securities

Samsung has enjoyed tremendous success in the smartphone market in recent years. The popularity of its Galaxy range of smartphone saw it replace Nokia as the world's biggest mobile phone maker last year.

According to research firm Strategy Analytics, Samsung accounts for almost 95% of the Android smartphone sector's profits.

But despite all that success, there have been concerns in recent weeks that the rate of growth that Samsung's smartphones have enjoyed in recent years may be slowing, a trend that may eventually hurt profits.

Earlier this month, South Korea's Woori Investment & Securities cut its earnings forecast for the technology giant. That was followed by similar moves from JP Morgan, Goldman Sachs, Merrill Lynch and others.

The concerns have been triggered in part by the launch of new products from rival manufacturers as well as relatively low-cost smartphones by Chinese firms.

Analysts said that for Samsung to be able to maintain its high growth rate the firm needed to come up with new and innovative products and also reduce its reliance on the mobile phone business to drive growth.

"One of the biggest risks for Samsung Electronics going forward is that 70% of total operating profit comes from mobile business," said Jeff Kim of Hyundai Securities.

"Diversification is key. Wearable devices are the next stage in a saturated industry that needs constant innovation to survive.

"We'll see flexible smartphones in the fourth quarter from Samsung and LG Electronics, and iWatch and Galaxy Watch are expected to be one of the first waves."

However, some analysts were sceptical about whether wearable devices would bolster earnings.

"It's more likely to complement its earnings at best," said Byun Han-joon, an analyst at KB Investment & Securities.

Jung Sang-jin, a fund manager at Dongbu Asset Management, added: "The problem is no one is sure whether these products can really wow investors and consumers."


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Rural broadband rollout criticised

5 July 2013 Last updated at 05:00 ET By Leo Kelion Technology reporter
Man with laptop in Cotswolds garden

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The BBC's Rory Cellan-Jones visits the Cotswolds, which is still waiting

The government's rollout of "superfast" broadband to rural areas is about two years behind its original schedule, an official audit has found.

The report said only nine of 44 rural areas would reach targets for high-speed internet by 2015, and four areas could also miss a revised 2017 target.

The National Audit Office also raised concerns that BT would be the only firm likely to win contracts.

It said the company would benefit from £1.2bn of public funds as a result.

"The rural broadband project is moving forward late and without the benefit of strong competition to protect public value," said auditor general Amyas Morse.

"For this we will have to rely on [the Department for Culture Media and Sport's] active use of the controls it has negotiated and strong supervision by [the regulator] Ofcom."

He added the scheme was also expected to cost the taxpayer more than first thought.

Revised targets

In 2011, then Culture Secretary Jeremy Hunt announced that 90% of premises in every local authority area of the UK should have access to internet speeds above 24 megabits per second by May 2015 and a minimum of 2Mbps for others.

To do this he pledged £530m of cash for rural broadband projects which would become available to councils if they also provided funds.

He said this would give the country the "best superfast broadband network in Europe".

However, the scheme was hit by delays, in part because it took longer than expected to get approval from the EU.

The NAO said once officials revised their projections, they found it was going to take 22 months longer than first envisaged for 40 of the areas to reach the goal.

Last week the Treasury revised its target, saying it now wanted 95% of UK properties to have access to superfast broadband by the end of 2017, effectively shifting the goal until after the next general election.

The NAO warned four areas - Highlands and Islands, Cumbria, Norfolk and Suffolk - might still miss this new deadline because the local authorities had failed to request sufficient funds.

A spokesperson for Cumbria County Council told the BBC that since the report was compiled it had signed a contract with BT to deliver superfast broadband to 93% of Cumbrian homes by 2015.

The DCMS said that a pledge to invest an extra £250m meant it would meet the goal.

However, the NAO said that past experience suggested the "government is not strong at taking remedial action to guard against further slippage".

'Opaque data'

The revelations prompted claims that DCMS did not have a "good enough grip" on its programme and that BT had been "cagey" about its costs.

"Opaque data and limited benchmarks for comparison means the department has no idea if BT is being reasonable or adding in big mark ups," said Labour MP Margaret Hodge, who is the chair of Parliament's Public Accounts Committee.

However, a spokesman for the DCMS said its efforts to deliver value-for-money were "strong and robust".

"We agree that effective enforcement of the contracts is important and are working with local authorities to ensure this," he said.

"As the NAO report makes clear, the project's funding model greatly reduced the cost and financial risk to the taxpayer."

BT also defended its record.

"There was strong competition when prices were set at the start of the process and that has ensured counties have benefited from the best possible terms," it said.

"Deploying fibre broadband is an expensive long-term business and so it was no surprise that others dropped out as the going got tough."

Dropouts

Sixteen organisations had originally shown interest in competing for the rural broadband projects.

The NAO noted that "competition was envisaged to be a key value-for-money safeguard".

However, it said suppliers had complained the bidding process was "difficult and complicated" and that the process favoured large companies with secure revenue streams.

By early 2013 only BT and Fujitsu were left in the running, and in March Fujitsu dropped out after it said various factors had made winning the work unattractive.

The audit highlighted that officials only scored BT's financial model eight out of 20 - the minimum pass rate.

It said it remained unclear how much of the firm's bids covered "contingency costs" - a safety-cushion to protect it against unexpected charges.

David Corner, from the National Audit Office

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David Corner, from the National Audit Office, said the delay was due to a high number of negotiations around the country

It also raised concern that BT said 40% of its costs would be on staffing - a figure the NAO said was hard to verify.

The report revealed that there had already been one instance when BT had been caught overcharging for management costs by £3m.

It also pointed out that BT's figures were based on the assumption that only 20% of properties would sign up to superfast broadband within seven years of it being enabled.

The study said this was lower than the figure suggested by both industry experts and international comparisons.

A clawback rule is supposed to ensure that if uptake is higher the firm should share the extra profits with the public.

However, the NAO said government workers would have to scrutinise hundreds of thousands of invoices to make sure this happened, and that some councils have already said they might not have enough resources to do this.


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Jay-Z Android app cloned by hackers

5 July 2013 Last updated at 05:36 ET

Hackers have cloned the Android app of rapper Jay-Z and inserted messages criticising the US government.

The official app is being used by the rapper as a way to promote his latest album - Magna Carta Holy Grail.

Cloned versions of the app available via unofficial sites contain code that unlocked anti-Obama messages on 4 July.

The attack is believed to be part of protests against US government surveillance programs revealed this month.

Security firm McAfee discovered the app on third-party Android app sites. In a blogpost, McAfee researcher Irfan Asrar said the program initially appeared to do everything that the official app did.

However, he wrote, code added to the cloned version copied and sent information to a command-and-control server every time the phone was re-started. Once it made contact, the app tried to download extra code that included the anti-government images and messages.

A timer in this extra code waited for 4 July and then changed the app's wallpaper from pictures of album artwork and Jay-Z to that of President Obama wearing headphones. Above his image were the words "Yes we scan"- believed to be a reference to the NSA's extensive Prism scanning system. It is also plays on the slogan that President Obama campaigned under "Yes, we can."

"The image and the service name NSAListener suggest a hacktivist agenda," wrote Mr Asrar, "but we haven't ruled out the possibility that additional malware may target financial transactions or other data."

To avoid falling victim to this and other mobile threats, users should avoid downloading apps from unofficial sources and ensure security software is kept up to date, he added.


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Human gestures perplex robot guide

5 July 2013 Last updated at 08:24 ET

Honda's popular robot Asimo faced problems with gesture recognition on its first day as a museum guide at the Miraikan science museum in Tokyo.

The machine struggled to differentiate between museum-goers raising their hands to ask a question and raising their hands to take photos, Associated Press reported.

It is "working" as a tour guide at the museum for the next four weeks as a trial.

Asimo cannot respond to voice commands.

The robot is instead designed to answer 100 questions selected via touchscreen from a written panel.

But during a demonstration it froze and asked: "Who wants to ask Asimo a question?" repeatedly when people pointed their cameras at it.

"Right now, it can recognize a child waving to it, but it's not able to comprehend the meaning of the waving," said Honda robotics technology specialist Satoshi Shigemi.

'Not able to comprehend'

Asimo has been in development since 1996.

Speaking to the BBC last year, Prof Chris Melhuish, director of the British Robotics Laboratory at the University of the West of England, said that interaction with humans was the next big step for robotics.

"The key thing, and it's what we're working on at the moment, is safe human-robot interaction," he said.

"That's not just making the robot compliant, it's making it have advanced social intelligence. If a robot is handing you something hot or sharp, for example, it needs to know whether it has your attention."


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BBC to suspend 3D programming

5 July 2013 Last updated at 11:15 ET

The BBC is to suspend 3D programming for an indefinite period due to a "lack of public appetite" for the technology.

Kim Shillinglaw, the BBC's head of 3D, said it has "not taken off" with audiences who find it "quite hassly".

The BBC began a two-year 3D trial in 2011, broadcasting several shows and events in 3D, including the Olympic Games and Strictly Come Dancing.

A Doctor Who anniversary special in November will be among the final shows televised in 3D as part of the trial.

Half of the estimated 1.5 million households in the UK with a 3D-enabled television watched last summer's Olympics opening ceremony in 3D.

The BBC said 3D viewing figures for the Queen's Christmas Message and the children's drama Mr Stink were "even more disappointing", with just 5% of potential viewers tuning in over the Christmas period.

'Wait-and-see'

In an interview with the Radio Times, Shillinglaw said: "I have never seen a very big appetite for 3D television in the UK.

"I think when people watch TV they concentrate in a different way. When people go to the cinema they go and are used to doing one thing - I think that's one of the reasons that take up of 3D TV has been disappointing."

Shillinglaw will return to her main job at the BBC, as head of science and natural history, when the project ends at the close of the year.

"After that we will see what happens when the recession ends and there may be more take up of sets, but I think the BBC will be having a wait-and-see. It's the right time for a good old pause," she said.

"I am not sure our job is to call the whole 3D race," she said.

Last year's Wimbledon finals were the first programmes to be shown in 3D by the BBC. This year, the broadcaster will show both the men's and ladies Wimbledon semi-finals and finals in 3D.

The free-to-air 3D Wimbledon coverage is only available to viewers with access to a 3D TV set and to the BBC's HD Red Button channel on certain platforms, but not Sky.

Last month, US sports network ESPN announced it was to close its 3D channel in the US due to a lack of uptake.

Recent figures from the US suggest no more than 120,000 people are watching 3D channels at any one time.


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Olympic cyber attack fears detailed

8 July 2013 Last updated at 00:46 ET Gordon CoreraBy Gordon Corera Security correspondent, BBC News

Fears that the 2012 London Olympics opening ceremony might have come under cyber-attack have been detailed by officials for the first time.

The concern was that the lights could have been turned off during the ceremony.

The threat did not materialise, but officials have told the BBC they put extensive precautions in place.

It comes amid fears about the vulnerability of Britain's national infrastructure to cyber-attack.

The head of the government's surveillance centre GCHQ, Sir Iain Lobban, says reconnaissance has taken place in cyberspace and there is a "realistic threat", which his intelligence agency is working with partners to try to counter.

A phone call from GCHQ at 04:45 is not the ideal way of being woken on the day of the Olympic opening ceremony if you are head of cyber security for the Games.

"There was a suggestion that there was a credible attack on the electricity infrastructure supporting the Games," Olympic cyber security head Oliver Hoare, who received the call, told BBC Radio 4 - in the first interview an official has given on the events that day.

"And the first reaction to that is, 'Goodness, you know, let's make a strong cup of coffee.'" If the lights had gone off during the opening ceremony, with close to a billion people watching, the impact would have been enormous.

When it came to risks to the Games, cyber attacks had been lower down the list than terrorism, which could cause real loss of life, but extensive testing had still taken place for a range of different possibilities.

This included precisely the scenario that raised concerns on the opening day. "We'd tested no less than five times the possibility of an attack, a cyber-attack, on the electricity infrastructure," said Mr Hoare.

Ticking clock

This would prove vital in ensuring an effective response from a team that stretched across government, the Olympic organisers Locog and private sector service providers such as BT.

Continue reading the main story Oliver Hoare

Thirty seconds at the opening ceremony with the lights going down would have been catastrophic"

End Quote Oliver Hoare

The initial response to the threat came from the Olympic Cyber Co-ordination Team (OCCT), based at MI5 headquarters in Thames House.

There were two priorities. The first was to investigate how credible the threat might be. The information had come in overnight and was based on the discovery of attack tools and targeting information that it was thought at the time might relate to the Olympics.

While this investigation continued, officials also put in place contingency plans in case the attack materialised. Time was not on their side. "The clock was absolutely ticking," recalled Mr Hoare, who worked first for the Olympic Delivery Authority and then the Government Olympic Executive.

He, and others interviewed for the story, declined to speak in detail about the preparations put in place. "We effectively switched to manual, or had the facility to switch to manual. It's a very crude way of describing it. But effectively we had lots of technicians stationed at various points," he said.

In the afternoon a meeting was held in the Cabinet Office briefing room (although it was not a formal meeting of Cobra, the government's emergency response committee), chaired by deputy national security adviser Oliver Robbins, where different partners could join in videoconferencing from places such as the Olympic Park.

Contingency plans were discussed and ministers informed. Confidence grew that if the threat materialised it could be dealt with.

Vulnerability

Mr Hoare recalls a conversation an hour or so before the opening ceremony, in which he asked someone how the situation looked. "Good news," the individual replied. "If the lights go down we can get them up and running regardless within 30 seconds."

Opening ceremony of the London 2012 Olympic Games

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That did not entirely reassure Mr Hoare. "Thirty seconds at the opening ceremony with the lights going down would have been catastrophic in terms of reputational hit," he said. "So I watched the opening ceremony with a great deal of trepidation."

Other officials said, although they were confident every contingency had been prepared for, that did not prevent some nerves. "You wouldn't be human if you didn't have butterflies," one recalled.

Mr Hoare said that watching at home with his family, who did not know about the threat, he twitched every time the lights dimmed.

In the end the threat turned out to be a false alarm. But it does highlight a growing fear about the vulnerability of Britain's critical infrastructure to cyber-attack.

'Technical reconnaissance'

Increasing numbers of services are being connected to the internet, from power stations through to smart meters in people's homes. This brings many benefits and efficiencies for people's daily lives but also provides a new access point for those seeking to do harm, whether bedroom hackers or foreign states.

"We have seen technical reconnaissance of parts of our critical national infrastructure, yes," Sir Iain told the BBC. "Not to such an extent that we would raise a red flag but certainly we've seen an interest, an intentional interest, in parts of that infrastructure."

The GCHQ head said that the UK, along with its allies, was looking at how compromises and penetrations might occur and how to guard against them.

This year the UK is expected to launch its first national computer emergency response team (Cert). Until now, the UK has had government Certs but not a broader national team, unlike many other countries.

The real challenges on critical infrastructure, as with the Olympics, lies in the meeting point between government and private sector and ensuring that the right people with the right technical expertise are in the right place.

Under Attack - The Threat From Cyberspace is broadcast on BBC Radio 4 on Monday 8 July at 20:00 BST.


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HTC shares at seven and half year low

8 July 2013 Last updated at 04:12 ET

Shares of Taiwanese mobile phone maker HTC have plunged to a seven-and-a-half year low, as its profit continues to slide amid increased competition.

The firm's shares fell 7% on Monday to $189 Taiwanese dollars. On Friday, it reported an 83% drop in profit for the second quarter from a year earlier.

Net profit stood at NT$1.25bn ($42m; £27m) for the April to June period.

Although the figure was an improvement on the previous quarter, it fell short of analyst and investor expectations.

The firm, which was an early leader in the Android smartphone sector, has lost its market share to rivals such as Samsung and Apple in recent years.

In an attempt to regain some of that share it has launched new phone models in recent months, including the HTC One.

Analysts said that while those devices had helped in boosting profits in the three months to the end of June, the firm may find it hard to fend off competition in the long term.

"HTC may have new products in the third quarter, but competition from Apple and other Chinese brands is fierce," Taipei-based analyst Peter Liao of Nomura Securities said after the firm released its earnings.

"It'll be hard to keep the growth."

However, HTC is not the only firm that has posted weaker-than-expected earnings.

On Friday, profit estimates issued by Samsung - the world's biggest mobile phone maker - also missed analysts' expectations.

That had triggered concerns that that rate of growth the South Korean firm has enjoyed in the smartphone sector, one of the biggest contributors to its overall profits in recent years, may be slowing.


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Warcraft to test in-game payments

8 July 2013 Last updated at 06:51 ET

World of Warcraft maker Blizzard is to start experimenting with a system that lets players use real money to buy goods in the game.

Blizzard revealed the experiment in a message posted to the WoW chat forums.

Before now players have only been able to spend real money in out-of-game stores to buy pets and mounts for their characters.

The first item players can buy is a potion that boosts the experience points they gain from kills and loot.

The Enduring Elixir of Wisdom boosts experience rewards by 100% and is currently only available on the game's public test servers. To use it, players must be controlling a character of level 85 or above.

A Blizzard community manager called Zarhym said the elixir was one of the elements Blizzard was using to test in-game purchases. Other elements would appear on those test realms soon, they suggested.

"We are currently exploring the possibility of adding a way for players in certain regions to make purchases directly within the game," Zarhym wrote, adding that Blizzard would provide more details soon.

It is not clear which WoW players would be the first to get in-game purchases in the full game or when the switch would happen. Industry experts speculated that it would take place first in Asia where the bulk of WoW's players are located.

The move is widely seen as an attempt by WoW to shore up its declining player base. In May, Blizzard reported that 1.3 million people stopped playing the game in the first three months of 2013. About 8.3 million people are now believed to still be playing. In 2010, subscriber numbers peaked at 12 million.

Previous attempts to make the game more attractive included making it free to play up to level 20 and introducing new playable races.

WoW is facing increasing competition from other massively playable online games that remain free to play throughout. Many of these have already gone down the route that Blizzard is contemplating by letting players use real money to buy gear, boosts and other equipment for their characters.


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Microsoft to close MSN TV service

8 July 2013 Last updated at 07:15 ET

Microsoft will close its subscription-based internet television service MSN TV at the end of September this year.

In a statement the firm said there were now "many new ways" to access the net.

Microsoft purchased the service - originally WebTV - for $425m (£285m) in 1997 and rebranded it MSN TV in 2001.

It was the predecessor of many modern internet TV services and requires a significant amount of hardware including a set-top box and bespoke keyboard.

It enables customers to check email, use MSN chat services and share photos online.

Now however there are numerous devices - including Microsoft's Xbox and all the other major games consoles - that connect the TV and the web.

"You get the feeling a lot of companies are trying to make things more efficient from their end," said Stuart Miles, founder of technology news website Pocket-lint.

"They are trying to align their services - it seems to be a trend. You see it with Yahoo especially, buying loads of products but also turning things off."

Mr Miles added that he didn't think many would mourn the closure of MSN TV.

"It's a technology that served a purpose at the time and now it's redundant," he said.

"I think most people will be saying, 'Oh, they still had that?'"


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