Gadget insurance complaints rise

22 December 2014 Last updated at 00:04

The Financial Ombudsman Service (FOS) says it saw 2,200 complaints about gadget warranties last year, double that of the previous year.

It says many people hugely undervalue the cost of the technological items they carry with them, and are also unaware that most general insurance does not cover items outside the home.

Some people who know this are taking out specific gadget insurance.

But the FOS says their policies wrongly failed to pay out almost half the time.

It says it intervened in 800 cases where claims were turned down, and in 43% of them found in favour of the claimant.

High value

Common items such as mobile phones, laptops, MP3 players and portable games consoles are routinely carried by people every day.

The Ombudsman's office recently invited its own staff to empty out their bags and estimated what it would cost to replace the various items; in some cases this was £3,000 or more.

The FOS report points out that gadget insurance should cover specific electronic devices against damage, including the effects of water or liquids, theft, and loss at home or when you are out and about.

But it said: "We see an array of complaints about gadget insurance - the two most common resulting from a claim after the device was stolen or accidentally damaged."

"If an insurer turns down a claim on the basis that it was left unattended, or - in the case of damage - that it was caused deliberately, some insurers [then] reject complaints," it added.

However, the FOS sometimes found that terms in the contract had been applied unfairly, or that they were so ambiguous it was hard to see how anyone could make a successful claim.

Unfair

In one example, a person had his tablet computer stolen from a locked suitcase in a locked room while he was on holiday.

The insurer declined the claim as there was no evidence of forcible or violent entry into the hotel room where he was staying, as required by the terms of the policy.

The Ombudsman did not consider this fair.

It offers a list of tips to consider:

• Check to see if your home contents insurance includes items while away from the home - and the cover limit
• Check age restrictions - some policies will not insure items more than six months old
• When buying a warranty, check what it will cover
• Check the manufacturer's or retailer's existing guarantees
• A credit card purchase may already be covered under the card issuer's insurance.

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Apple 'deeply offended' by BBC story

19 December 2014 Last updated at 14:05

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Richard Bilton reports from Shanghai: ''An exhausted workforce''

Apple has said it is "deeply offended" by a BBC investigation into conditions for workers involved in manufacturing its devices.

Rules on workers' hours, ID cards, dormitories, work meetings and juvenile workers were routinely breached, the Panorama programme witnessed.

In a staff email, senior Apple executive Jeff Williams said he knew of no other company doing as much as Apple to improve conditions.

But he added: "We can still do better."

Panorama's editor Ceri Thomas said he stood by the programme's journalism.

He said the team had found an exhausted workforce making Apple products in China, as well as children working in extremely dangerous tin mines in Bangka, Indonesia.

"While Apple did confirm earlier this year that it gets tin from Bangka, it had never been confirmed whether illegal tin was entering their supply chain," he said.

"We got the first evidence of this on our trip.

"We told Apple what we had found almost two months ago. Although Apple was happy to give us a non-attributable briefing, we were disappointed that the company wasn't prepared to explain its position on camera."

Mr Williams' email, published in full by The Telegraph (and reproduced below), was sent to around 5,000 Apple staff in the UK.

"Panorama's report implied that Apple isn't improving working conditions," he wrote.

"Let me tell you, nothing could be further from the truth."

He said he wanted the email to offer "facts and perspective, all of which we shared with the BBC in advance, but were clearly missing from their programme".

He wrote that he and Apple chief executive Tim Cook were "deeply offended by the suggestion that Apple would break a promise to the workers in our supply chain or mislead our customers in any way".

He added: "We are honest about the challenges we face and we work hard to make sure that people who make our products are treated with the dignity and respect they deserve."

Apple had declined to be interviewed for the programme.

'Appalled'

The email goes on to outline some of the efforts Apple has made to improve working conditions in its various factories across China.

The Panorama film showed exhausted workers falling asleep on their 12-hour shifts at Pegatron factories on the outskirts of Shanghai.

One undercover reporter, working in a factory making parts for Apple computers, had to work 18 days in a row despite repeated requests for a day off.

Mr Williams said Apple had undertaken an audit of working hours.

"Several years ago, the vast majority of workers in our supply chain worked in excess of 60 hours, and 70+ hour work-weeks were typical.

"After years of slow progress and industry excuses, Apple decided to attack the problem by tracking the weekly hours of over one million workers, driving corrective actions with our suppliers and publishing the results on our website monthly - something no other company had ever done.

"This year, our suppliers have achieved an average of 93% compliance with our 60-hour limit."

It also explained how the firm supports moves to address the issue of illegal mining in countries such as Indonesia.

In the Panorama programme, children were seen mining for the tin typically used in devices such as smartphones and tablets.

The process can be extremely dangerous - miners can be buried alive when the walls of sand or mud collapse.

The programme spoke to 12-year-old Rianto who was working with his father at the bottom of a 70ft cliff of sand.

He said: "I worry about landslides. The earth slipping from up there to the bottom. It could happen."

In the Apple staff email, Mr Williams said: "Our team visited the same parts of Indonesia visited by the BBC, and of course we are appalled by what's going on there.

"We spearheaded the creation of an Indonesian Tin Working Group with other technology companies.

"Apple is pushing to find and implement a system that holds smelters accountable so we can influence artisanal mining in Indonesia."

He concluded: "We know there are a lot of issues out there, and our work is never done.

"We will not rest until every person in our supply chain is treated with the respect and dignity they deserve."

Watch Panorama: Apple's Broken Promises on BBC iPlayer.

In full: Email to staff from Apple senior vice president of operations Jeff Williams

UK Team,

As you know, Apple is dedicated to the advancement of human rights and equality around the world. We are honest about the challenges we face and we work hard to make sure that people who make our products are treated with the dignity and respect they deserve.

Last night, the BBC's Panorama program called those values into question. Like many of you, Tim and I were deeply offended by the suggestion that Apple would break a promise to the workers in our supply chain or mislead our customers in any way.

I'd like to give you facts and perspective, all of which we shared with the BBC in advance, but were clearly missing from their program.

Panorama showed some of the shocking conditions around tin mining in Indonesia. Apple has publicly stated that tin from Indonesia ends up in our products, and some of that tin likely comes from illegal mines. Here are the facts:

Tens of thousands of artisanal miners are selling tin through many middlemen to the smelters who supply to component suppliers who sell to the world. The government is not addressing the issue, and there is widespread corruption in the undeveloped supply chain. Our team visited the same parts of Indonesia visited by the BBC, and of course we are appalled by what's going on there.

Apple has two choices: We could make sure all of our suppliers buy tin from smelters outside of Indonesia, which would probably be the easiest thing for us to do and would certainly shield us from criticism. But it would be the lazy and cowardly path, because it would do nothing to improve the situation for Indonesian workers or the environment since Apple consumes a tiny fraction of the tin mined there. We chose the second path, which is to stay engaged and try to drive a collective solution.

We spearheaded the creation of an Indonesian Tin Working Group with other technology companies. Apple is pushing to find and implement a system that holds smelters accountable so we can influence artisanal mining in Indonesia. It could be an approach such as "bagging and tagging" legally mined material, which has been successful over time in the Democratic Republic of the Congo. We are looking to drive similar results in Indonesia, which is the right thing to do.

Panorama also made claims about our commitment to working conditions in our factories. We know of no other company doing as much as Apple does to ensure fair and safe working conditions, to discover and investigate problems, to fix and follow through when issues arise, and to provide transparency into the operations of our suppliers.

I want you to know that more than 1400 of your Apple coworkers are stationed in China to manage our manufacturing operations. They are in the factories constantly — talented engineers and managers who are also compassionate people, trained to speak up when they see safety risks or mistreatment. We also have a team of experts dedicated solely to driving compliance with our Supplier Code of Conduct across our vast supply chain.

In 2014 alone, our Supplier Responsibility team completed 630 comprehensive, in-person audits deep into our supply chain. These audits include face-to-face interviews with workers, away from their managers, in their native language. Sometimes critics point to the discovery of problems as evidence that the process isn't working. The reality is that we find violations in every audit we have ever performed, no matter how sophisticated the company we're auditing. We find problems, we drive improvement, and then we raise the bar.

Panorama's report implied that Apple isn't improving working conditions. Let me tell you, nothing could be further from the truth. Here are just a few examples:

Several years ago, the vast majority of workers in our supply chain worked in excess of 60 hours, and 70+ hour workweeks were typical. After years of slow progress and industry excuses, Apple decided to attack the problem by tracking the weekly hours of over one million workers, driving corrective actions with our suppliers and publishing the results on our website monthly — something no other company had ever done. It takes substantial effort, and we have to weed out false reporting, but it's working. This year, our suppliers have achieved an average of 93% compliance with our 60-hour limit. We can still do better. And we will.

Our auditors were the first to identify and crack down on a ring of unscrupulous labor brokers who were holding workers' passports and forcing them to pay exorbitant fees. To date, we have helped workers recoup $20 million in excessive payments like these.

We've gone far beyond auditing and corrective actions by creating educational programs for workers in the same facilities where they make our products. More than 750,000 people have taken advantage of these college-level courses and enrichment programs, and the feedback we get from students is inspiring.

I will not dive into every issue raised by Panorama in this note, but you can rest assured that we take all allegations seriously, and we investigate every claim. We know there are a lot of issues out there, and our work is never done. We will not rest until every person in our supply chain is treated with the respect and dignity they deserve.

If you'd like to learn more about our Supplier Responsibility program, I encourage you and our customers to visit our website at apple.com/supplierresponsibility.

Thanks for your time and your support.

Jeff

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North Korea threatens US over Sony

22 December 2014 Last updated at 11:39

North Korea has threatened unspecified attacks on the US in an escalation of a war of words following the Sony Pictures cyber-attacks.

In a fiery statement, the North warned of strikes against the White House, Pentagon and "the whole US mainland".

North Korea denies US claims it is behind cyber-attacks linked to a film that features the fictional killing of its leader Kim Jong-un.

North Korea has a long history of issuing threats against the US.

The latest statement comes days after the US formally accused the North of orchestrating a massive cyber attack on Sony Pictures.

"The army and people of the DPRK [North Korea] are fully ready to stand in confrontation with the US in all war spaces including cyber warfare space," a long statement carried by the official Korean Central News Agency said.

"Our toughest counteraction will be boldly taken against the White House, the Pentagon and the whole US mainland, the cesspool of terrorism, by far surpassing the 'symmetric counteraction' declared by Obama."

It accused President Obama of "recklessly making the rumour" that North Korea was behind the Sony attack.

It also said it "estimates highly the righteous action" taken by the hackers of Sony, although it is "not aware of where they are".

Analysis by Stephen Evans, BBC Korea correspondent

North Korea frequently uses fierce rhetoric against both South Korea and the United States so there's no great step-up in fierceness. And it is for domestic consumption as well as for outsiders.

The statement has weight because it comes from the most powerful body in North Korea, the National Defence Commission, which is chaired by Kim Jong-un.

It has two arguments - essentially "we didn't do it" and "whoever did do it was right".

The statement goes into some detail about the FBI argument that there were signs in the computer code that North Korea was behind the Sony attack. it said such lines of code are commonplace and do not prove any North Korean involvement.

Sony details leaked

The hack resulted in unreleased films and the script for the next James Bond film being leaked online.

Details of corporate finances and private emails between producers and Hollywood figures were also released.

The eventual fallout from the attack saw Sony cancel the Christmas release of a comedy called The Interview, a film depicting the assassination of the North Korean leader.

That decision followed threats made by a group that hacked into Sony's servers and leaked sensitive information and emails.

The North has denied being behind the attacks, and offered to hold a joint inquiry with the US.

But the US turned down the offer, and President Barack Obama said it was considering putting North Korea back on its list of terrorism sponsors, a move that further angered Pyongyang.

North Korea had been on the US list of state sponsors of terrorism for two decades until the White House removed it in 2008, as part of now-stalled negotiations relating to Pyongyang's nuclear programme.

In an interview with CNN on Sunday, Mr Obama promised to respond "proportionately" to the cyber-attack.

"I'll wait to review what the findings are," he said, adding that he did not think the attack "was an act of war".

The US has reportedly also asked China to curb cyber-attacks by North Korea.

China is North Korea's close ally and is seen as the nation with the most influence over Pyongyang.

Chinese Foreign Minister Wang Yi held a telephone conversation with his US counterpart John Kerry on Sunday in which they discussed the Sony row.

Mr Wang said China was "against all forms of cyber-attacks and cyber-terrorism" but did not refer directly to North Korea.

In a statement posted on China's foreign ministry's website (in Chinese) on Monday, he said that China "opposes any country or person using infrastructure from another country to launch a cyber attack on a third-party country".

At a later news conference, a foreign ministry spokesman said China wanted to "engage in constructive co-operation with the international community in cyber security on the basis of mutual respect and mutual trust".

Asked to respond to claims that North Korea was using Chinese facilities for cyber-attacks, the spokesman added: "I think to arrive at any conclusion, sufficient facts and evidence are needed. China will handle the case on the basis of facts, international laws and Chinese laws."

Correspondents say the issue of hacking is a sensitive one in Sino-US relations, with the two sides frequently trading accusations of cyber-espionage.

The Interview saga

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Sony has pledged to find a way to get the film out, as Catharina Moh reports

The Interview features James Franco and Seth Rogen as two journalists granted an audience with Mr Kim. The CIA then enlists the pair to assassinate him.

Sony says it made the decision to cancel its release after most US cinemas chose not to screen the film, following terrorism threats.

• 22 November: Sony computer systems hacked, exposing embarrassing emails and personal details about stars
• 7 December: North Korea denies accusations that it is behind the cyber-attack, but praises it as a "righteous deed"
• 16 December: "Guardians of Peace" hacker group threatens 9/11-type attack on cinemas showing film; New York premiere cancelled
• 17 December: Leading US cinema groups say they will not screen film; Sony cancels Christmas-day release
• 19 December: FBI concludes North Korea orchestrated hack; President Obama calls Sony cancellation "a mistake"
• 20 December: North Korea proposes joint inquiry with US into hacks, rejected by the US.

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Suspects deny 'sextorting' teenager

19 December 2014 Last updated at 16:59 By Angus Crawford BBC News

Two Filipino men suspected of blackmailing a UK teenager who took his own life have been traced by the BBC.

Daniel Perry from Dunfermline was 17 when he fell from the Forth Bridge in July 2013.

He had been the victim of online sexual blackmail or "sextortion" by a group operating from the Philippines, after being duped into taking part in an explicit Skype chat.

When the BBC challenged the two suspects, both denied any involvement.

They were two of three suspects in the case arrested in Manila this year and are now, like the third suspect, out on bail.

Daniel believed he was talking to a girl his own age when he engaged in the conversation via Skype.

Interpol says this kind of crime is increasing, with "hundreds of thousands of victims".

Criminal gangs target men on social media, posing as young women.

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Angus Crawford joins the Philippines police on a raid for sextortion suspects

They encourage their victims into sexual encounters via webcam and then blackmail them.

The gang in Daniel's case recorded him and then threatened to make the video public unless he paid them.

A BBC investigation has found Daniel received a message from his blackmailers saying, "I will make you suffer".

Begged

The Scottish teenager begged them not to carry out the threat but detectives claim the suspects replied: "Commit suicide now." Later they wrote: "Are you dead yet?"

Daniel then took his own life.

Archie Tolin, 20, Jomar Palacio, 23, and Vincent Bravo, 22, were arrested by Filipino police in May.

It was part of an operation called Strikeback supported by Interpol and officers from Police Scotland.

A BBC team traced two of the men suspected of being involved in Daniel's death.

Jomar Palacio lives in a run-down area of Manila.

We challenged him about his alleged role in the crime and showed him a photograph of Daniel.

"I do not know him, I did not get any money, I did not do anything wrong to him, that's all," he said.

Another suspect, Vincent Bravo, now works as a waiter in a strip club and lives in a city south of Manila.

"I didn't do it, I don't know anything about it. They have no hard evidence against us," he told the BBC.

"I send my condolences to [the Perry family], but I wasn't the one who did it. I feel sorry because he left behind a family which loves him."

Both men say they are innocent but Filipino police insist they will be prosecuted.

The suspects will go on trial in Manila but the Scottish authorities want to extradite them to face trial in the UK.

"They will first have to be tried in the Philippines and other legal actions might follow," said Senior Superintendent Gilbert Sosa, director of the Filipino Anti-Cybercrime Group (ACG).

"They will have to serve prison or any verdict entered into by the court."

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Wayne May of support group Scam Survivors demonstrates how victims get drawn in

Too embarrassed

Only then could they be considered for extradition, but justice in the Philippines is notoriously slow and it could be years before the suspects actually face trial.

The authorities are struggling to cope with the sheer scale of sextortion activity.

Internet access is cheap and easy even in the poorest areas of the Philippines and the police know of thousands of victims.

Many are too embarrassed to come forward.

In the police forensic lab, officers analyse seized computers for evidence.

One officer, Jocar Samenian, says the problem is "rampant in the Philippines". He says victims may initially be asked for as much as £3,000 ($4,700).

In one recent case, he says, a gang leader made £1.5m ($2.3m) in 10 months.

Mr Samenian also warns that the blackmail doesn't stop after payment.

"As long as they can extort money from you, it will not end," he says.

Victim's story

John was blackmailed in August this year.

"I went on Facebook and she said 'add me on Skype' so I added her on Skype and she then said: 'Let's do webcam and I'll get naked for you.'

She said she'd tell my family and friends, tell my daughter, tell my wife - you know, ruin your life, ruin your family.

I was very frightened - just the thought of them seeing that was really terrifying.

I feel like telling everyone about it… it happens to a lot of people.

It's just a big scam… as soon as they delete one account they set up another. They target young men who are impressionable, who see a good looking young woman. They'll add her to their account. A lot of men will.

I understood what [Daniel Perry] was going through, I really did. Just the thought of people seeing, of your close family and friends seeing that video, it just terrifies you. I can see why he did what he did."

Sextortionist's story

Rosa worked in 'sextortion', but claims to have stopped.

"It is trying to find some clients from abroad, and then trying to seduce them. And then we video them.

I did it for only about a month. Life was hard for me before - we saw others earning money so we were encouraged to join, we were curious how they were doing it, we were curious how much money they earned from it. Because I'm a single mother I wanted to do it.

I didn't stay long, it was hard for me. I'm not used to doing bad things. My conscience got to me, because some of them [the victims] were begging, some didn't have any money.

I was scared because I was involved in this. I was ashamed."

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Millions deleted in Instagram purge

19 December 2014 Last updated at 11:30 By Dave Lee Technology reporter, BBC News

Photo-sharing app Instagram has removed millions of accounts believed to be posting spam, angering many legitimate users.

People who lost a lot of followers criticised the action, dubbing it the "Instagram Rapture".

Like its parent company Facebook, Instagram routinely removes accounts to limit spam and prevent users buying followers to appear more popular.

Rapper Akon reportedly lost 56% of his followers in the cull.

Figures collated by developer Zach Allia - not affiliated to Instagram - totted up the impact of the purge on the site's top 100 accounts.

The big losers were Justin Bieber (minus 3,538,228 followers), and an online marketing specialist called Wellington Campos, which lost 3,284,304 followers overnight.

One account, chiragchirag78, lost 99% of his followers - 3,660,460 - before he himself was deleted.

Instagram's own account on the site lost 18,880,211 followers overnight.

'Omg'

Instagram had warned its users that the deletion was coming in a blog post earlier this month.

"We've been deactivating spammy accounts from Instagram on an ongoing basis to improve your experience," wrote chief executive and founder Kevin Systrom.

"As part of this effort, we will be deleting these accounts forever, so they will no longer be included in follower counts. This means that some of you will see a change in your follower count."

Reacting to the purge, many of the site's users directed harsh words at Instagram - while others saw the lighter side.

Rapper Ma$e, who lost more than a million followers, deleted his account after he was accused of paying for more followers, while video blogger Jamie Curry tweeted: "I lost 30k followers on instagram omg."

Matt McGorry, an actor who has starred in prison drama Orange is the New Black, wrote: "There may be 545k Instagram followers left but my 11k spam followers that disappeared took a piece of my heart with them.

"I'll honour the memory of each of my 11k spam Instagram followers that I lost with the lighting of candles. Well, one candle. I only have one."

Follow Dave Lee on Twitter @DaveLeeBBC

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Booking.com fraud network revealed

20 December 2014 Last updated at 00:39 By Bob Howard Reporter, Money Box

A whistle-blower has revealed how stolen personal data was used to con thousands of customers of one of the world's biggest hotel booking websites.

He says he was part of a fake call centre operation which had access to personal details of customers from around the world.

"Tom" - not his real name - was recruited via an international freelance telesales website.

Booking.com says it is working with the police to tackle the problem.

BBC Radio 4's Money Box was contacted by "Tom" after reporting on the fraud last month. He told us he was offered $12 an hour for the work and spent around 12 days in the job, sitting at his home computer.

Continue reading the main story

"Start Quote

We would send an email and it would appear that the hotel was sending them an email"

End Quote "Tom" Freelance call worker

"Tom", who asked not to be identified, said he was supplied with long lists of Booking.com customers and could manage to call around 250 in a working day.

Many were foreign visitors coming to London from countries including Bangladesh, Israel, South Africa, China, Japan and India,

"We were told to call up people and tell them that they'll receive an email… and if they have any questions they should get in touch with us," Tom told Money Box.

"We had to say that we were calling from [the hotel into which the customer had booked] and we would send an email and it would appear that the hotel was sending them an email."

The subsequent e-mail would ask for advance payment for the hotel booking with bank details which have no connection to the hotel.

Customers who queried the payment demand were directed to a fraudulent phone line, where the criminals had installed staff who posed as Booking.com employees, insisting that the hotels had changed their payment policies.

'Big secret'

Some Money Box listeners sent a payment, only to find their hotel had no record of it when they checked in. Although they have received refunds for the double payment, the episode represents a major security breach.

Booking.com has estimated that about 10,000 people were affected.

"Tom" claims he was unaware that he was involved in criminal activity and agreed to speak to Money Box because he was angry at having becoming accidentally involved.

Continue reading the main story

"Start Quote

I want to know how this scamming company are finding out the reservation numbers, the dates, the contact details, there's a lot of private information there"

End Quote Claire Booking.com customer

Although his script involved claiming he was phoning from a hotel, he says the message to expect an e-mail seemed harmless enough.

However, when he read the Money Box article, it confirmed suspicions that had been prompted by the elusiveness of the man who recruited him.

"This guy never spoke and he was a big secret," said "Tom", "Nobody's seen him, nobody's spoken to him, and even the agents were not allowed to talk to each other.

"It is pretty much like dealing with a ghost. I tried to look him up on LinkedIn and Facebook just to understand the company better. There's no picture of him on any website, no trace on the internet."

'Claire' from West Yorkshire received one of the phone calls after booking rooms at a London hotel for a trade fair in November.

She avoided being conned by phoning the hotel directly and establishing that they had not demanded advance payment.

Nevertheless she wants Booking.com to announce publicly that customer details are now safe.

"I want to know how this scamming company are finding out the reservation numbers, the dates, the contact details, there's a lot of private information there," she said.

A spokesperson for Booking.com told Money Box the firm is working with police on how to prevent future phishing attacks. They declined to be interviewed.

Money Box is broadcast on Saturdays at 12:00 BST on BBC Radio 4 and repeated on Sundays at 21:00 BST. You can listen again via the BBC iPlayer or by downloading Money Box podcast.

Have your say

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China 'is against cyber attacks'

22 December 2014 Last updated at 08:26

China's foreign minister has told US Secretary of State John Kerry that his country is "against all forms of cyber attacks and cyber terrorism".

However, Wang Yi did not respond directly to US calls to curb cyber attacks by North Korea.

The US has accused North Korea of attacking Sony Pictures over the film The Interview, a claim it rejects.

President Barack Obama has said the US is considering putting North Korea back on its list of terrorism sponsors.

Mr Wang's remarks came in a phone conversation with Mr Kerry in which the two discussed the hacking of Sony Pictures.

China is North Korea's close ally and its largest trading partner, and is seen as the nation with the most influence over Pyongyang.

On Sunday, North Korea issued a fiery statement, saying it was "fully ready to stand in confrontation with the US in all war spaces including cyber warfare space" and describing the US as "the cesspool of terrorism".

Sony last week cancelled the release of The Interview, which depicts the fictional assassination of North Korean leader Kim Jong-un, following threats made by a group that hacked into Sony's servers and leaked sensitive information and emails.

The United States has asked countries including China for help confronting North Korea, but the issue of hacking is a sensitive one in Sino-US relations, with the two sides frequently trading accusations of cyber espionage.

A statement posted on China's foreign ministry's website on Monday noted that in the discussion of the hacking: "Wang Yi reiterated China's relevant position, emphasising that China is against all forms of cyber attacks and cyber terrorism."

"It opposes any country or person using infrastructure from another country to launch a cyber attack on a third-party country."

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Sony has pledged to find a way to get the film out, as Catharina Moh reports

In a CNN interview broadcast on Sunday, Mr Obama said US officials would examine all the evidence to determine whether North Korea should be put back on the list of state sponsors of terrorism.

"I'll wait to review what the findings are," Mr Obama said, adding that he did not think the attack "was an act of war" and that the US would "respond proportionately".

North Korea had been on the US list for two decades until the White House removed it in 2008, as part of now-stalled negotiations relating to Pyongyang's nuclear programme.

On Sunday, North Korea accused the US government of being "deeply involved" in the making of The Interview, in a statement carried by KCNA news agency attributed to a department of North Korea's top military body.

The Interview saga

• 22 November: Sony computer systems hacked, exposing embarrassing emails and personal details about stars
• 7 December: North Korea denies accusations that it is behind the cyber-attack, but praises it as a "righteous deed"
• 16 December: "Guardians of Peace" hacker group threatens 9/11-type attack on cinemas showing film; New York premiere cancelled
• 17 December: Leading US cinema groups say they will not screen film; Sony cancels Christmas-day release
• 19 December: FBI concludes North Korea orchestrated hack; President Obama calls Sony cancellation "a mistake"
• 20 December: North Korea proposes joint inquiry with US into hacks, rejected by the US.

The Interview features James Franco and Seth Rogen as two journalists who are granted an audience with Mr Kim. The CIA then enlists the pair to assassinate him.

The film's cancelled release drew criticism in Hollywood, with some calling it an attack on the freedom of expression.

Sony says it made the decision after most US cinemas chose not to screen the film, following the threats.

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Jail over Silk Road bitcoin deals

22 December 2014 Last updated at 12:53

Bitcoin trader Charlie Shrem has been sentenced to two years in jail for indirectly helping people swap cash for bitcoins on the Silk Road marketplace.

The Silk Road shut down in 2013 following raids by the FBI and other law enforcement agencies which said it was trading in illegal drugs.

Shrem was caught in the Silk Road raids for trading a total of $1m (£640,000) for bitcoins used on the site.

His sentence also includes forfeiting $950,000 (£608,000) to the US government.

Shrem was not directly involved with the Silk Road but was charged because of his association with Robert Faiella who set up an exchange that let the marketplace's customers swap cash for bitcoins. The virtual cash was the only form of currency accepted on the Silk Road.

Bitcoins are a virtual currency built around a complicated cryptographic protocol and a global network of computers that oversee and verify which coins have been spent by whom.

The Judge who handed down the sentence said Shrem was not "some kid making a one-time mistake" but had "excitedly" helped Faiella get access to bitcoins. Faiella is due to be sentenced in late January. He has pleaded guilty to running an unlicensed money transmitting business.

Prior to his arrest Shrem was a strong advocate for bitcoins and served as vice chairman of the foundation that helped to guide the virtual currency's development. He has now resigned from this post.

Lawyers working for Shrem said his involvement stemmed from his interest in bitcoins rather than the Silk Road. The two year sentence is less than government lawyers sought who said he should face 57 months in jail.

The operator of the Silk Road, Ross Ulbricht, is due to face trial in January. He has pleaded not guilty to charges of dealing drugs and conspiracy.

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Hack causes 'damage' at steel works

22 December 2014 Last updated at 13:01

A blast furnace at a German steel mill suffered "massive damage" following a cyber attack on the plant's network, says a report.

Details of the incident emerged in the annual report of the German Federal Office for Information Security (BSI).

It said attackers used booby-trapped emails to steal logins that gave them access to the mill's control systems.

This led to parts of the plant failing and meant a blast furnace could not be shut down as normal.

The unscheduled shutdown of the furnace caused the damage, said the report.

In its report, BSI said the attackers were very skilled and used both targeted emails and social engineering techniques to infiltrate the plant. In particular, said BSI, the attackers used a "spear phishing" campaign aimed at particular individuals in the company to trick people into opening messages that sought and grabbed login names and passwords.

The phishing helped the hackers extract information they used to gain access to the plant's office network and then its production systems.

Once inside the steel mill's network, the "technical capabilities" of the attackers were evident, said the BSI report, as they showed familiarity with both conventional IT security systems but also the specialised software used to oversee and administer the plant.

BSI did not name the company operating the plant nor when the attack took place. In addition, it said it did not know who was behind the attack nor what motivated it.

The attack is one of only a few on industrial systems known to have caused damage. The most widely known example of such an attack involved the Stuxnet worm which damaged centrifuges being used by Iran in its nuclear enrichment programme.

Benjamin Sonntag, a software developer and digital rights activist, told Reuters: "We do not expect a nuclear power plant or steel plant to be connected to the internet.

"To be computerised, but to be connected to the internet and to be hackable - that is quite unexpected," he said.

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S Korea holds cyber drill after hack

22 December 2014 Last updated at 13:49

South Korea's nuclear plant operator is to conduct drills testing its ability to withstand a cyber-attack, after a data leak and threats from a hacker.

Last week, designs and manuals of plant equipment owned by Korea Hydro and Nuclear Power Co (KHNP) were put online by an unknown individual or group.

A threat was made that unless three reactors were closed by Christmas, people should "stay away" from them.

KHNP said the leaked data did not undermine the safety of the reactors.

KHNP, the sole nuclear operator in Korea, is part of the state-run utility Korea Electric Power Corp.

In a statement, the operator said it would conduct a series of large-scale drills at four nuclear power plant complexes on Monday and Tuesday.

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The hackers are threatening to put thousands more documents on the web as Steve Evans reports

'Not core technology'

Using an account named "president of the anti-nuclear reactor group", the hacker posted blueprints of nuclear reactors on social media on Friday.

This was the latest in a series of such postings since 15 December, South Korea's Yonhap news agency said.

Previous postings have included information on the facilities' air condition and cooling systems, a radiation exposure report, and personal data of employees.

Authorities said a probe into the hacking and leak of internal documents had been launched.

Analysis: Mark Ward, BBC technology correspondent

Cyber security experts have warned for years about the dangers of connecting industrial plants and ageing chunks of infrastructure to the internet.

Many have demonstrated how easy it is to use that net connection to leap into the control systems that oversee chemical works, dams, and power plants. Some have detailed hundreds of flaws in the software found on these control systems.

Often plants and machinery in these installations date from a time when nothing was networked so they treat all connections as friendly. Many are hard to update and lack the memory to run any serious security software.

Now nations are scrambling to improve the defences surrounding critical infrastructure to prevent accidents happening through either malice or mischief.

Many firms are taking out hefty insurance policies that will help them recover from a cyber attack. Sadly, lots of them are getting turned down as their defences are not judged to be good enough to repel the attacks.

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The company has said that the information does not relate to core technologies. The South Korean government told the BBC that the central operating systems of the reactors had not been hacked.

KHNP operates 23 nuclear reactors and supplies about 30% of the country's electricity, local media said.

It is not known if this cyber-attack is in any way related to an incident last month when Sony Pictures was hacked and unreleased films put online.

The US says North Korea was behind the attack. Pyongyang has denied this and has called for a joint investigation.

South Korea has in the past blamed North Korea for hacks on banks, government websites and broadcasters.

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