Facebook’s highly anticipated independent oversight board, a group that will be empowered to overrule the company’s leadership on issues pertaining to the platform’s content moderation decisions, plans to launch in October, just in time for the November U.S. presidential election.The board was created by Facebook after the platform was criticized for its handling of problematic content, most recently a backlash over its decision to take no action in response to posts from U.S. President Donald Trump containing misinformation about mail-in voting and inflammatory language directed toward the Black Lives Matter anti-racism protests that erupted over the summer.Other platforms that contain user-generated content, such as Twitter, have taken measures to combat misinformation online, including attaching fact-checking warning labels to posts.Facebook has not yet announced whether the board will hear cases related to the election. Representatives from the company said that the board did not consider cases involving Trump’s posts in its preliminary hearings.  Reviewing removed postsMembers of the oversight board will review appeals only over posts that Facebook has taken down initially, instead of taking into consideration content that the company leaves up. It will also deal only with individual posts that fall under the areas where Facebook exercises editorial control.Content that is regulated by Facebook includes algorithms that shape how much distribution a post receives, taking down or leaving up Facebook groups, pages, and events, and whether to leave specific pieces of content up on the site.The board has been harshly criticized for starting by reviewing appeals concerning posts that were taken down, which experts say will have little impact on addressing problems like misinformation and hate speech that are rampant on the platform. Critics say that the long-awaited board has not moved fast enough to curb these issues before the election.  Prioritizing casesAccording to the board’s website, the criteria for the prioritization of cases has not been decided and is being debated by the board’s 20 members. While tens of thousands of cases are expected to be presented to the board, leaders say that the board will take only a small number of cases each year, most likely in the “tens or hundreds.”Board members include lawyers, academics, journalists and policy experts from around the world, who collectively speak 27 different languages and represent having lived in 29 different countries.Preparation leading up to the board’s launch includes educating members on Facebook’s community standards, international human rights law and receiving technical training on case management rolls that will allow members to receive and consider appeals.
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President Donald Trump met with nine Republican state attorneys general on Wednesday to discuss the fate of a legal immunity for internet companies after the Justice Department unveiled a legislative proposal aimed at reforming the same law. Trump met with attorneys general from Arizona, Arkansas, Louisiana, Mississippi, Missouri, South Carolina, Texas, Utah and West Virginia. Also Wednesday, the Justice Department, which is probing Google for potential breaches of antitrust law, held a call with state attorneys general’s offices to preview a complaint to be filed against the search and advertising giant, perhaps as soon as next week, according to two sources familiar with the matter.   It is normal for the department to seek support from state attorneys general when it files big lawsuits. Critics have accused Google, owned by Alphabet Inc., of breaking antitrust law by abusing its dominance of online advertising and its Android smartphone operating system as well as favoring its own businesses in search.   The White House said the legal immunity discussion involved how the attorneys general can utilize existing legal recourses at the state level—in an effort to weaken the law known as Section 230 of the Communications Decency Act, which protects internet companies from liability over content posted by users. After the meeting, Trump told reporters he expects to come to a conclusion on the issue of technology platforms within a short period. It was not immediately clear what conclusion he was referring to.   He said his administration is watching the performance of tech platforms in the run-up to the Nov. 3 presidential election. “In recent years, a small group of powerful technology platforms have tightened their grip over commerce and communications in America,” Trump said. “Every year countless Americans are banned, blacklisted and silenced through arbitrary or malicious enforcement of ever-shifting rules,” he added.   Trump, who himself frequently posts on Twitter, said Twitter routinely restricts expressions of conservative views.   Earlier on Wednesday, the Justice Department unveiled a legislative proposal to reform Section 230. It followed through on Trump’s bid earlier this year to crack down on tech giants after Twitter Inc. placed warning labels on some of Trump’s tweets, saying they have included potentially misleading information about mail-in voting. The Justice Department’s proposal would need congressional approval and is not likely to see action until next year at the earliest. Unless the Republicans win control of the House of Representatives and maintain control of the Senate in the November elections, any bill would need Democratic support.   The Justice Department proposal primarily states that when internet companies “willfully distribute illegal material or moderate content in bad faith, Section 230 should not shield them from the consequences of their actions.” It proposes a series of reforms to ensure internet companies are transparent about their decisions when removing content and when they should be held responsible for speech they modify. It also revises existing definitions of Section 230 with more concrete language that offers more guidance to users and courts.   It also incentivizes online platforms to address illicit content and pushes for more clarity on federal civil enforcement actions.    The Internet Association, which represents major internet companies including Facebook Inc., Amazon.com Inc. and Google, said the Justice Department’s proposal would severely limit people’s ability to express themselves and have a safe experience online. The group’s deputy general counsel, Elizabeth Banker, said moderation efforts that remove misinformation, platform manipulation and cyberbullying would all result in lawsuits under the proposal. 
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TikTok asked a U.S. judge on Wednesday to block a Trump administration order that would require Apple Inc and Alphabet Inc’s Google to remove the short video-sharing app for new downloads starting Sunday. A federal judge in San Francisco on Saturday issued a preliminary injunction blocking a similar Commerce Department order from taking effect Sunday on Tencent Holdings’ WeChat app. U.S. officials have expressed serious concerns that the personal data of as many as 100 million Americans that use the app was being passed on to China’s Communist Party government. FILE – People walk past a WeChat Pay sign at the Tencent company headquarters, in Shenzhen, Guangdong province, China, Aug. 7, 2020.On Saturday, the Commerce Department announced a one-week delay in the TikTok order, citing “recent positive developments” in talks over the fate of its U.S. operations. TikTok said the restrictions “were not motivated by a genuine national security concern, but rather by political considerations relating to the upcoming general election.” TikTok said if the order is not blocked, “hundreds of millions of Americans who have not yet downloaded TikTok will be shut out of this large and diverse online community — six weeks before a national election.” TikTok’s Chinese owner, ByteDance, said on Monday it will own 80% of TikTok Global, a newly created U.S. company that will own most of the app’s operations worldwide. ByteDance added that TikTok Global will become its subsidiary. Oracle Corp and Walmart Inc have agreed to take stakes in TikTok Global of 12.5% and 7.5%, respectively. On Monday, Oracle said ByteDance’s ownership of TikTok would be distributed to ByteDance’s investors, and that the Beijing-based firm would have no stake in TikTok Global. On Saturday, ByteDance, Walmart and Oracle said they reached an agreement that would to allow TikTok to continue to operate in the United States after President Donald Trump said he had blessed the deal. Trump signed an executive order on Aug. 14 giving ByteDance 90 days to relinquish ownership of TikTok. 
 
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The 75th U.N. General Assembly is breaking new ground by going virtual this year due to the coronavirus. Along with that comes a whole new set of challenges and security risks. Aaron Fedor reports for VOA from New York City.
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Germany’s health ministry Wednesday said its coronavirus smartphone app has been downloaded more than 18 million times and transmitted 1.2 million test results from labs to users during the first 100 days of use.Health Minister Jens Spahn told reporters in Berlin that while the “Corona Warn App” is far from perfect, it should be considered a success. He said almost 5,000 users have activated the app to warn their contacts and called it a key tool in the country’s effort to contain the spread of the virus, which causes the COVID-19 disease.He said, “This shows that the corona tracing app works, it is in demand…it helps to prevent infections and it is one of the most successful apps worldwide.”Spahn noted in particular the fact that most users can get their test results sent directly to their smartphones, without having to wait for their doctor to inform them.German Health Minister Jens Spahn attends a news conference to give an update on a smartphone app that allows users to evaluate their risk of being exposed to the coronavirus in Berlin, Germany, Sept. 23, 2020.Germany’s strict privacy rules mean that the app stores all data on phones and not on a central server. Observers, however, say there is no precise data on the number of people alerted about possible exposure.Should an app user get a positive test result, the app has a button the person can press to warn his or her contacts. Spahn says one problem is not everyone is doing that. “Only about half of the app users who get a positive result inform their contacts afterwards.”Spahn says the app is not a cure-all, but one of a number of important tools the government is using to control the spread of the virus.German tech company Deutsche Telekom, working with software company SAP, developed the app. Deutsche Telekom Chief Executive Tim Hoettges said more than 90% of labs in Germany are now connected to it.Hoettges said efforts are under way to establish a European “gateway” that will allow the German app to communicate with those in 10 other European countries, including Italy, Poland and Spain, that use the same decentralized, Bluetooth-based system.
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The 75th U.N. General Assembly is breaking new ground by going virtual this year due to the coronavirus. Along with that comes a whole new set of challenges and security risks. Aaron Fedor reports for VOA from New York City.
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The battle between China and the U.S. over the fate of video sharing app TikTok raises questions for the tech industry worldwide. What might the struggle over TikTok portend for global companies? Michelle Quinn reports.Produced by: Matt Dibble 
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The U.S. Commerce Department said Monday it is challenging a federal judge’s injunction against its order that Apple and Google remove WeChat from their U.S. app stores due to data privacy and national security concerns.The department’s original order, issued Friday, also included another Chinese-owned app, TikTok, and expressed the Trump administration’s concerns about the way the apps collect user data and the potential for that information to be shared with Chinese government agencies.China has rejected the U.S. allegations of a security threat, and on Saturday condemned what it called “bullying” that violated international trade standards.U.S. Magistrate Judge Laurel Beeler responded Sunday to a request for an injunction from WeChat users by putting the Commerce Department’s order on hold, ruling that the Trump administration’s actions would restrict users’ free speech rights under the First Amendment.WeChat has about 19 million active daily users in the United States. The service, owned by Chinese tech company Tencent, is popular with Americans who use it to communicate with family and friends in China.Video-sharing service TikTok earned a short reprieve from its part of the Commerce Department order after announcing an agreement to form a new company with U.S. tech giant Oracle and retailer WalMart together holding up to a 20% share.The U.S. head office of TikTok is seen in Culver City, California, Sept. 15, 2020.Speaking to Fox News on Monday, Trump said his administration would not approve the agreement if ByteDance, TikTok’s Chinese owner, has any control.“If we find that they don’t have total control, then we’re not going to approve the deal,” Trump said of Oracle and WalMart.  “We will be watching it very closely.”Those comments are in contrast to those Trump gave Saturday when he said he approved of the agreement “in concept” and had “given the deal my blessing.” The Commerce Department has delayed the app store ban for TikTok until September 27, and given the company until November 12 to resolve national security concerns before facing a wider range of restrictions. 
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A U.S. judge early Sunday blocked the Commerce Department from requiring Apple Inc and Alphabet Inc’s Google to remove Chinese-owned messaging app WeChat for downloads by late Sunday.   U.S. Magistrate Judge Laurel Beeler in San Francisco said in an order that WeChat users who filed a lawsuit “have shown serious questions going to the merits of the First Amendment claim [and] the balance of hardships tips in the plaintiffs’ favor.”   On Friday, the Commerce Department had issued an order citing national security grounds to block the app from U.S. app stores owned by Tencent Holdings, and the Justice Department had urged Beeler not to block the order.   Beeler’s preliminary injunction also blocked the Commerce order that would have barred other transactions with WeChat in the United States that could have degraded the site’s usability for current U.S. users. The U.S. Commerce Department did not immediately comment.   WeChat has had an average of 19 million daily active users in the United States, analytics firms Apptopia said in early August. It is popular among Chinese students, Americans living in China and some Americans who have personal or business relationships in China.   The Justice Department said blocking the order would “frustrate and displace the president’s determination of how best to address threats to national security.” But Beeler said, “while the general evidence about the threat to national security related to China [regarding technology and mobile technology] is considerable, the specific evidence about WeChat is modest.”   She added, “The regulation — which eliminates a channel of communication without any apparent substitutes — burdens substantially more speech than is necessary to further the government’s significant interest.”   WeChat is an all-in-one mobile app that combines services similar to Facebook, WhatsApp, Instagram and Venmo. The app is an essential part of daily life for many in China and boasts more than 1 billion users.   The WeChat Users Alliance that had sued praised the ruling “as an important and hard-fought victory” for “millions of WeChat users in the U.S.”   Michael Bien, a lawyer for the users, said “the United States has never shut down a major platform for communications, not even during war times. There are serious First Amendment problems with the WeChat ban, which targets the Chinese American community.”   He added the order “trampled on their First Amendment guaranteed freedoms to speak, to worship, to read and react to the press, and to organize and associate for numerous purposes.” 
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Facebook has told Ireland’s High Court it cannot see how its services could operate in the European Union if regulators freeze its data transfer mechanism, the Sunday Business Post reported, citing court documents seen by the paper.The U.S. social media giant last week said that the Irish Data Protection Commission, its lead EU regulator, had made a preliminary decision that the mechanism it uses to transfer data from the EU to the United States “cannot in practice be used.”Facebook requested and secured a temporary freeze on the order and a court review in the Irish High Court, which is due to consider the issue in November. In an affidavit submitted to the court to request that the order be frozen, Yvonne Cunnane, Facebook Ireland’s head of data protection and associate general counsel, said it was not clear how the company could continue providing services in the EU if the Irish order is enforced, the Sunday Business Post reported.”It is not clear to (Facebook) how, in those circumstances, it could continue to provide the Facebook and Instagram services in the EU,” the newspaper quoted the affidavit as saying.The affidavit has not been made public, a High Court spokesman said, and a Facebook spokeswoman did not immediately respond to an emailed request for comment.In a Sept. 9 blog post that first confirmed the investigation by the Irish regulator, Facebook said it “relied on the mechanism in question – under what are known as standard contractual clauses (SCCs) – to transfer data to countries outside the EU and that a ban would have “a far reaching effect on businesses that rely on SCCs.”The Irish investigation follows a ruling by the Court of Justice of the European Union in July on when SCCs can be used legally.The ruling was in response to EU concerns that the surveillance regime in the United States might not respect the privacy rights of EU citizens when their personal data is sent to the United States for commercial use. 
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The Trump administration issued a sweeping ban Friday that will begin barring downloads and use of the Chinese-owned mobile apps WeChat and TikTok from U.S. app stores as of midnight Sunday. The announcement is the latest escalation in America’s tech fight with China.Officials from the U.S. Commerce Department cited national security and data privacy concerns over the move to ban the two popular internet platforms that serve more than 100 million people in the United States.Starting Monday, both apps will be removed from app stores and users will not be able to download the apps to their phones. For users who have the apps already installed, they will not be able to receive updates to the platforms. This restriction will quickly make the app obsolete on smartphones, as the inability to update will make it incompatible with Apple and Google smartphone software, which currently dominate the tech market.The order includes moves to render WeChat useless within the United States by banning American companies from hosting internet traffic or processing transactions from within the app as of midnight Sunday.WeChat serves millions of U.S. users who predominantly rely on the app to stay in touch and conduct business with people and companies in China.Like most social networking sites, both TikTok and WeChat collect user data, including location and messages to track what kind of targeted ad content is most applicable to them.As of now, TikTok will escape the most drastic sanctions until similar restrictions go into effect November 12 unless the company is able to resolve the administration’s national security concerns by the deadline. The order follows weeks of wrangling with the company, which recently struck a deal with U.S.-based software maker Oracle, the details of which have yet to be announced.The app, which has become especially popular among younger users, has proved useful in some political contexts, including for mischief.TikTok users made headlines earlier this year by working to inflate the expected turnout for a rally President Donald Trump held in Tulsa, Oklahoma — and making the actual attendance seem especially low by comparison.The deadline to comply with restrictions falls just after the November 3 presidential election in the United States.Prior to striking the deal, representatives of TikTok, which is owned by China’s ByteDance, were in talks with Microsoft. The partnership between Microsoft and ByteDance fell through earlier this month after reports estimated that the company would shell out up to $30 billion for the acquisition of the app.“We are confident our proposal would have been good for TikTok’s users, while protecting national security interests,” Microsoft said in a blog post Sunday. “We would have made significant changes to ensure the service met the highest standards for security, privacy, online safety and combating disinformation, and we made these principles clear in our August statement.”The move to ban the use of the apps in the United States follows an August 6 executive order by Trump, in which he argued that TikTok and WeChat collect data from American users that could be accessed by the Chinese government. Over the past several weeks, Trump has pressured the app’s owner to sell TikTok’s U.S. operations to a domestic company to satisfy these concerns.TikTok spokesman John Gartner said in a statement that the company is “disappointed” by the move and that it would continue to challenge the “unjust executive order.”The American Civil Liberties Union denounced the move as well, saying that the order is an infringement on Americans’ rights to free expression.While the Trump administration has accused the apps of collecting data used by the Chinese government to surveil Americans, the government has not provided specific evidence to support the allegations.ByteDance has repeatedly denied that it has partnered with the Chinese government to siphon U.S. user information. 
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The U.S. Commerce Department said it will issue an order Friday that will bar people in the United States from downloading Chinese-owned messaging app WeChat and video-sharing app TikTok starting on September 20.Commerce officials said the ban on new U.S. downloads of TikTok could be still rescinded by President Donald Trump before it takes effect late Sunday as TikTok owner ByteDance races to clinch an agreement over the fate of its U.S. operations.ByteDance has been talks with Oracle Corp and others to create a new company, TikTok Global, that aims to address U.S. concerns about the security of its users’ data. ByteDance still needs Trump’s approval to stave off a U.S. ban.Commerce officials said they will not bar additional technical transactions for TikTok until Nov. 12, which gives the company additional time to see if ByteDance can reach a deal for its U.S. operations. “The basic TikTok will stay intact until Nov. 12,” Commerce Secretary Wilbur Ross told Fox Business Network.The department said the actions will “protect users in the U.S. by eliminating access to these applications and significantly reducing their functionality.”Oracle shares fell 1.6% after the news in pre-market tradingThe Commerce Department order will “deplatform” the two apps in the United States and bar Apple Inc’s app store, Alphabet Inc’s Google Play and others from offering the apps on any platform “that can be reached from within the United States,” a senior Commerce official told Reuters.The order will not ban U.S. companies from doing businesses on WeChat outside the United States, which will be welcome news to U.S. firms like Walmart and Starbucks that use WeChat’s embedded ‘mini-app’ programs to facilitate transactions and engage consumers in China, officials said.The order will not bar transactions with WeChat-owner Tencent Holdings’ other businesses, including its online gaming operations, and will not prohibit Apple, Google or others from offering TikTok or WeChat apps anywhere outside the United States.The bans are in response to a pair of executive orders issued by Trump on August 6 that gave the Commerce Department 45 days to determine what transactions to block from the apps he deemed pose a national security threat. That deadline expires on Sunday.Commerce Department officials said they were taking the extraordinary step because of the risks the apps’ data collection poses. China and the companies have denied U.S. user data is collected for spying.Ross said in a written statement “we have taken significant action to combat China’s malicious collection of American citizens’ personal data, while promoting our national values, democratic rules-based norms, and aggressive enforcement of U.S. laws and regulations.”The order is set to be published at 8:45 a.m. EDT (1245 GMT) on Friday, Commerce said.Popular appsThe Trump administration has ramped up efforts to purge “untrusted” Chinese apps from U.S. digital networks and has called TikTok and WeChat “significant threats.”TikTok has 100 million users in the United States and is especially popular among younger Americans.WeChat has had an average of 19 million daily active users in the United States, analytics firms Apptopia said in early August. It is popular among Chinese students, ex-pats and some Americans who have personal or business relationships in China.WeChat is an all-in-one mobile app that combines services similar to Facebook, WhatsApp, Instagram and Venmo. The app is an essential part of daily life for many in China and boasts more than 1 billion users.The Commerce Department will not seek to compel people in the United States to remove the apps or stop using them but will not allow updates or new downloads. “We are aiming at a top corporate level. We’re not going to go out after the individual users,” one Commerce official said.Over time, officials said, the lack of updates will degrade the apps usability.”The expectation is that people will find alternative ways to do these actions,” a senior official said. “We expect the market to act and there will be more secure apps that will fill in these gaps that Americans can trust and that the United States government won’t have to take similar actions against.”Commerce is also barring additional technical transactions with WeChat starting Sunday that will significantly reduce the usability and functionality of the app in the United States.The order bars data hosting within the United States for WeChat, content delivery services and networks that can increase functionality and internet transit or peering services.”What immediately is going to happen is users are going to experience a lag or lack of functionality,” a senior Commerce official said of WeChat users. “It may still be usable but it is not going to be as functional as it was.” There may be sporadic outages as well, the official said.Commerce will bar the same set of technical transactions for TikTok, but that will not take effect until Nov. 12 to give the company additional time to see if ByteDance can reach a deal for its U.S. operations. The official said TikTok U.S. users would not see “a major difference” in the app’s performance until Nov. 12.Commerce will not penalize people who use TikTok or WeChat in the United States.The order does not bar data storage within the United States for WeChat or TikTok.Some Americans may find workarounds. There is nothing that would bar an American from traveling to a foreign country and downloading either app, or potentially using a virtual private network and a desktop client, officials conceded.
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President Donald Trump has threatened a US ban on TikTok could happen as early as next week
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A Chinese firm with suspected ties to the Chinese government has been amassing a database of detailed personal information on 2.4 million people, including more than 50,000 Americans, according to findings by an independent researcher and an Australia-based cybersecurity firm.       Christopher Balding, an American professor who taught at Peking University’s HSBC School of Business in Shenzhen for nine years, analyzed the data with Internet 2.0, a cybersecurity firm based in Canberra. They published their findings this week.      Balding said the database was leaked to him in 2019.   The cache, called the Overseas Key Information Database (OKIDB), contains the personal information of roughly 2.4 million people. Many of them are influential policymakers who can exert influence in their fields of specialty.   According to their report, the database was compiled by China’s Zhenhua Data Information Technology Co. The company was founded in 2017 and had offices in Shenzhen and Beijing. Its mission, according to a screen shot of their website, which was deleted not long ago, is to “aggregate global data and help the great rejuvenation of the Chinese nation.”  Zhenhua Data’s marketing and recruiting documents characterize the company as a patriotic firm, with the military as its primary target customer.  Cybersecurity firm Internet 2.0 was able to recover the records of about 250,000 people from the leaked data, including 52,000 Americans, 35,000 Australians and nearly 10,000 British citizens. These include politicians and businessmen, scientists, tech experts, academics, bankers, journalists and lawyers. Information about family members, such as the 11-year-old daughter of Canadian Prime Minister Justin Trudeau, was also recovered. FILE – An iPhone with Twitter, Facebook and other apps, May 21, 2013.Analysts say the data was extracted from social media platforms such as Twitter, Facebook and LinkedIn, as well as news reports and criminal records.  Balding told VOA that apart from open source, there was also data extracted from illegal sources.  “We estimate about 80 percent of the data is what we call open source. There’s also data that appears to be hacked or stolen data that comes from other sources, nonpublic sources,” Balding said.  In a FILE – The logo for LinkedIn Corporation, a social networking networking website for people in professional occupations, is shown in Mountain View, California, Feb. 6, 2013.”It allows China to know which institutions or individuals they should be targeting. This is why, for instance, intelligence agencies in multiple countries have warned about Chinese recruitment through platforms such as LinkedIn,” Balding told VOA.  He added that the database also appears to be targeting policymakers, including influential figures in think tanks and relatives of key politicians. By doing this, China hopes to exert influence on these individuals and possibly shift policies to its liking, Balding said.  According to The Washington Post, which obtained part of OKIDB, the database also targets military officials.   For example, there is detailed information on former Chief of Naval Operations John Richardson; his service history and complete training were highlighted in Chinese.   Former U.S. Acting Secretary of the Navy Thomas Modly is also in the database, along with the names of his wife and four children, his educational background and his work history in the private sector.  A representative from Zhenhua Data told The Guardian that “the report is seriously untrue,” adding “there is no database of 2 million people,” while denying any links to the Chinese government or military.   Analysts say it is not surprising that a consultancy would collect detailed data on prominent figures in different sectors. What matters is how the data is used.  Arun Vishwanath, chief technology officer at Avant Research Group, a cybersecurity research firm, told VOA there are two concerns with a data operation of such scale and scope.  “One is propaganda, information and disinformation, and the other is being used for targeted attacks, which could have all manner of consequences,” Vishwanath said.  “We all need to have better cyber hygiene. We all need to be safer with how we share information online to store information about ourselves online. So this is a responsibility that each of us as individuals share,” he said. 
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Social media companies are taking down videos and images that could be vital in prosecuting serious crimes, according to a new report from Human Rights Watch. Facebook, YouTube and Twitter are increasingly using artificial intelligence algorithms to remove material deemed offensive or illegal. Human Rights Watch says vital evidence is being missed or destroyed. Henry Ridgwell reports.
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Indonesia has had more than 220,000 COVID-19 cases and the country still hasn’t reached its peak. Social distancing is an important part of controlling the virus and new technology aims to help people stay safely apart. VOA’s Rendy Wicaksana reports from Bandung, West Java, Indonesia.
Camera: Rendy Wicaksana 
 
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The U.S. government announced sanctions Wednesday on two Russian nationals for their role in the theft of at least $16.8 million worth of cryptocurrency.In the phishing scheme, which was conducted in 2017 and 2018, Danil Potekhin and Dmitrii Karasavidi allegedly created web sites that looked like legitimate currency exchange sites. Victims would enter their information, which was then used to access real accounts.The two, who were identified by the Treasury Department and the Department of Homeland Security, then allegedly laundered the stolen cryptocurrencies through multiple virtual currency exchanges using fake profiles.“The individuals who administered this scheme defrauded American citizens, businesses and others by deceiving them and stealing virtual currency from their accounts,” Treasury Secretary Steve Mnuchin said in a statement. “The Treasury Department will continue to use our authorities to target cybercriminals and remains committed to the safe and secure use of emerging technologies in the financial sector.”According to the statement, the government seized millions of dollars in virtual currency and U.S. dollars in an account owned by Karasavidi.
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U.S prosecutors announced charges on Wednesday against five suspected Chinese hackers and two Malaysian businessmen in connection with cyber-attacks on more than 100 companies in the United States and abroad.The five Chinese hackers, one of whom allegedly bragged about ties to China’s civilian intelligence service, remain at large. The two Malaysian businessmen, accused of conspiring with two of the hackers to profit from hacks on gaming companies, were arrested in Malaysia on Sept. 14, the Justice Department announced.The Chinese hackers were charged in two separate indictments handed down in August 2019 and August 2020. The Malaysian businessmen were charged in a third indictment returned in August, 2020.U.S. prosecutors alleged the hackers targeted a wide range of entities, including software development firms, computer hardware manufacturers, telecommunications providers, social media companies, video game companies, non-profit organizations, universities, think tanks, and foreign governments, as well as pro-democracy politicians and activists in Hong Kong.”The Department of Justice has used every tool available to disrupt the illegal computer intrusions and cyberattacks by these Chinese citizens,” said Deputy Attorney General Jeffrey A. Rosen. “Regrettably, the Chinese communist party has chosen a different path of making China safe for cybercriminals so long as they attack computers outside China and steal intellectual property helpful to China.”In addition to charging the suspects, U.S. authorities seized hundreds of accounts, servers, domain names, and command-and-control (C2) “dead drop” web pages used by the defendants to conduct their computer intrusion offenses.The indictments are the latest in a series of charges against suspected Chinese hackers and come as amid growing tensions between the U.S. and China over the coronavirus pandemic, trade, and Hong Kong.President Donald Trump has repeatedly blamed China for the spread of the coronavirus and top administration officials have publicly called out China for cyber-intrusions and other alleged misbehavior on the global stage in support of its strategic objectives.In July, Attorney General William Barr accused China of engaging in an “economic blitzkrieg” to supplant the United States as the world’s only superpower, and he warned U.S. businesses not to bow to Chinese pressure in pursuit of profit.
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On September 14, famous video-sharing app TikTok confirmed it will become business partners with Oracle, foregoing Microsoft’s bid. The decision comes weeks after the Trump administration said the Chinese-owned TikTok is a security risk. Anush Avetisyan has the story, narrated by Anna Rice. 
Camera: Elena Matusovsky 
 
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U.S. Secretary of State Mike Pompeo said on Tuesday he is confident there will be effective 5G competitors to China’s Huawei from Western vendors at comparable costs, adding that he believes Western technologies will come to dominate telecommunications.
“I am confident that there will be a cost-effective deliverables from Western trusted vendors that can deliver the same services, or better services, at comparative cost,” Pompeo said during an Atlantic Council event.
In what some observers have compared to the Cold War arms race, the United States is worried 5G dominance would give China an advantage Washington is not ready to accept.
With U.S.-China relations at their worst in decades, Washington has been pushing governments around to world to squeeze out Huawei Technologies Co, arguing that the firm would hand over data to the Chinese government for spying.
Huawei, founded in 1987 by a former engineer in China’s People’s Liberation Army, denies it spies for Beijing and says the United States is trying to smear it because Western firms are falling behind in 5G technology.
Pompeo said countries had come to recognize the costs of putting “untrusted” vendors in their systems.
“Over time, I think the world will come to recognize that’s not the right path and you will see Western technologies that are verifiable, trustworthy and transparent come to dominate the telecommunications markets,” he said.
5G, which will offer much faster data speeds and become the foundation of many industries and networks, is seen as one of the biggest innovations since the birth of the internet itself a generation ago.
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Starting Sept. 15, China’s telecom giant Huawei — once a symbol of Chinese technology prowess — will be cut off from essential supplies of semiconductors. Without those chips, Huawei cannot make the smartphones or 5G equipment on which its business depends, business analysts say.The sanctions against one of China’s most successful technology companies were announced in August, when the United States introduced a new set of rules that prohibit foreign chipmakers that rely on U.S. technology from selling any chips to Huawei without first obtaining a special license.In recent weeks, suppliers from South Korea and Taiwan have all indicated they will comply with the sanctions and cease their supply of semiconductors to Huawei on Tuesday, the day the new moves against the Chinese company comes into force.“Unfortunately, in the second round of U.S. sanctions, our chip producers only accepted orders until May 15. Production of the chip will stop on Sept. 15,” Richard Yu, chief executive of Huawei’s consumer business, said last month. “Because there is no Chinese chip manufacturing industry to support, Huawei is faced with the problem of no chips.”Richard Yu, CEO of Huawei Technologies Consumer Business Group, holds a Huawei Mate Xs foldable smartphone, as he talks to the audience during Huawei stream product launch event in Barcelona, Spain, Feb. 24, 2020.MicrochipsFor all of China’s efforts to become a global leader in high-technology, the factory of the world is yet not able to manufacture top-level contenders in one crucial area — the microchip, the nervous system that runs just about every electronic device.An important mark of a microchip’s level of sophistication is how many transistors can be placed on its surface. The smaller the size, measured in nanometers, the more advanced the microchip.China’s best manufacturing process is believed to be able to make 14-nanometer microchips, which are several generations behind Samsung and Taiwan Semiconductor Manufacturing Company (TSMC). Samsung reached this standard in 2014. TSMC, the world’s largest contract chipmaker, is already making 5-nanometer chips.Kunpeng 920 chipset is on display at Huawei’s booth during the 2020 China International Fair for Trade in Services (CIFTIS) in Beijing, Sept. 4, 2020.While some of the most advanced semiconductor manufacturers are based outside the U.S., the industry is heavily dependent upon U.S. suppliers to provide everything from design software to manufacturing equipment.Washington first placed Huawei on a trade blacklist in May 2019, citing national security concerns. However, this ban did not include most foreign-produced chips. In May, the U.S. extended the ban to cut off Huawei from its non-American suppliers, which affects China’s own semiconductor companies whose market is in China.Early last month, China’s leading chipmaker, Semiconductor Manufacturing International Corporation (SMIC), indicated it will abide by the U.S. rules and stop selling chips to Huawei. Like all of the semiconductor foundries, SMIC relies on U.S.-based companies to obtain key production equipment.”The dominance of U.S.-origin technology in upstream sectors of the global semiconductor supply chain means that Chinese ICT (Information and Communication Technologies) firms across the board are exposed to U.S. export controls, regardless of what happens to SMIC or Huawei as individual companies,” John Lee, a senior analyst at the Mercator Institute for China Studies (MERICS), told VOA.China’s failed attemptsBeijing has a long history of angst about the country’s dependence on foreign semiconductors. Its strategic planning related to this key industry dates back to the 1950s, when the State Council convened a group of scientists to develop an “Outline for Science and Technology Development, 1956–1967,” which identified semiconductor technology as a “key priority.”In recent decades, from the “531 Development Plan” launched in 1986 to the multibillion-dollar National Integrated Circuit Industry Investment Fund that was explicitly established for the chip sector in 2014, the country has poured considerable state resources into its semiconductor aspirations.A report released in July 2019 by U.S. International Trade Commission said the fund, along with provincial and municipal Integrated Circuit-related funds, are well on their way to reaching the goal of $150 billion.James Andrew Lewis, senior vice president and director of the Technology Policy Program at CSIS, told CNBC last week that China might outspend the U.S. “1,000 to 1″ when it comes to investing in semiconductors.In 2016, China’s President Xi Jinping noted, “The fact that core technology is controlled by others is our greatest hidden danger.”Xi emphasized the point again last Friday when chairing a symposium of scientists on the development of science and technology during the 14th Five-Year Plan (2021-2025) period.“Some key core technologies are subject to others,” he said.Last week, in response to the new U.S. restrictions on Huawei, China announced a sweeping new set of government policies to expand its domestic semiconductor industry by providing extensive support for the next generation of semiconductors in the 14th Five-Year Plan.In hopes that key technologies from the foreign firms will get transferred to Chinese companies, Beijing has also encouraged U.S. chipmakers to form joint ventures with domestic firms. According to MERICS, the think tank based in Germany, China’s quest for foreign technology at times even targets entire industries.A visitor is seen at a Huawei P40 Pro+ stand at the IFA consumer technology fair in Berlin, Germany, Sept. 3, 2020.“Almost all of the large semiconductor enterprises in the United States have received investment offers from Chinese state actors,” a research report by MERICS said.On the other hand, Douglas Fuller, a professor at City University of Hong Kong who studies the technology industry, said China should not be viewed as a failure.”There are only four firms ahead of SMIC in foundry services — two from Taiwan (TSMC and UMC), Korea’s Samsung, and U.S./UAE’s GloFo,” Fuller told VOA in an email.As for mass manufacturing, there are only two places with the leading technology —- TSMC in Taiwan and Samsung in Korea, he said.”Intel is even playing catch-up. Thus, other than Taiwan and Korea, the whole rest of the world is behind the cutting edge of manufacturing tech in this industry, including the U.S., Japan, Israel and all of Europe,” said Fuller.Will Huawei survive?It remains unclear where Huawei will be able to buy its chips. Taiwanese chipmaker MediaTek said last month it had applied to the U.S. government for permission to continue supplying Huawei after new U.S. rules take effect. In the meantime, Huawei has reportedly stockpiled up to two years’ worth of silicon to keep its business running.”In the short term, it is difficult to see any effective options available to Chinese firms targeted by U.S. export controls on semiconductors,” said Lee, whose research focuses on the rise of Chinese digital technology.As for the future, analysts say the U.S. will unlikely be able to stop China from making basic semiconductors. Given enough time, the country’s vast consumer market for electronics and decades of investment will eventually make it a chip producer.”In the medium to long term, China will probably be able to substitute U.S. technology and develop a complete domestic semiconductor supply chain (though whether it can catch up to foreign firms at the technological cutting edge is another issue).” Lee said in an email.James Lewis, director of the Technology Policy Program at the Center for Strategic and International Studies (CSIS), wrote in May that Huawei has been harmed by the U.S. effort, “but the Chinese government will not allow it to collapse — Huawei is too important.” 
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Some people stuck inside during coronavirus lockdown are playing video games. In the Democratic Republic of Congo, entrepreneurs are catering to young people who want to share the gaming experience. From Kinshasa, Anasthasie Tudieshe has the story.
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