Remember when a door-sized panel blew off a Boeing aircraft back in January? The Seattle Times reports that the "door plug" incident "was caused by two distinct manufacturing errors by different crews" in a Boeing assembly plant in Renton, Washington last fall. (And that Boeing's quality control system "failed to catch the faulty work.")

But the details tell a larger story. The newspaper bases their conclusion on "transcripts of federal investigators' interviews of a dozen Boeing workers, synchronized with an internal Boeing document obtained by The Seattle Times," tracing the whole history of that panel's production. Within a day of its fuselage arriving at the factory, "a small defect was discovered: Five rivets installed by Spirit on the door frame next to the door plug were damaged." That day, the Friday before the Labor Day weekend, repair of those rivets was handed to Spirit, which has contract mechanics on-site in Renton to do any rework on its fuselage. In the meantime, inspectors gave mechanics the OK to install insulation blankets, which covered the door plug. By the following Thursday, a Spirit mechanic had logged an entry in the official Federal Aviation Administration-required record of this aircraft's assembly — the Common Manufacturing Execution System or CMES, pronounced "sea-mass" by the mechanics — that the rivet repair was complete: "removed and replaced rivets." But that day, a Boeing inspector responded with a scathing rebuttal, stating that the rivets had not been replaced but just painted over. "Not acceptable," read the work order. On Sept. 10, records show Spirit was ordered a second time to remove and replace the rivets...

["Shipside Action Tracker"] entries show that after several days, the still-unfinished work order was elevated to higher-level Boeing managers. On Sept. 15, Boeing cabin interiors manager Phally Meas, who needed the work finished so he could get his crew to install cabin walls and seats, texted on-site Spirit manager Tran Nguyen to ask why the rivet work hadn't been done, NTSB interview transcripts show. Spirit mechanics couldn't get to the rivets unless the plug door was opened, Nguyen responded. He sent Meas a photo from his phone showing it was closed, according to the transcripts. It wasn't Spirit's job to open the sealed door plug. Boeing's door team would have to do that, the records show. "He kept asking me how come there wasn't work yet," Nguyen told the NTSB. "The door was not open. That's why there wasn't work yet."

By Sept. 17, the door was still closed, the rivets still unrepaired. The job was elevated again, to the next level of managers. On that day, according to the SAT record, senior managers worked with Ken McElhaney, the door crew manager in Renton, "to determine if the door can just merely be opened or if it needs removal...." [On September 18] at 6:48 a.m., a Boeing mechanic identified as a Door Master Lead texted a young Trainee mechanic on his team to come to the Alaska jet and open the door. The NTSB interviewed but did not name the Trainee or the Door Master Lead, who had almost 16 years at Boeing.

Filling in for the veteran mechanic on vacation, the Trainee was perhaps the least equipped to do this atypical job. He'd been at Boeing for about 17 months, his only previous jobs being at KFC and Taco Bell. "He's just a young kid," the Door Master Lead said...
More key quotes from the article:

• Boeing put both employees on paid administrative leave.

• "A company investigator accused one of them of lying. That employee told the NTSB that Boeing has set the pair up as scapegoats."

• "A 35-year veteran on the door team told NTSB investigators that he is 'the only one that can work on all the doors' and he was typically the only mechanic who would work on door plugs. That mechanic was on vacation on the two critical days, September 18 and 19 last year, when the door plug on the Alaska MAX 9 had to be opened and closed..."

• "No quality inspection of the door plug was conducted, since no record of its opening and closing was ever entered in the system, documents show."

• The FBI ís investigating Boeing "for potential criminal negligence," according to the article, "and has issued subpoenas using a Seattle grand jury."

Thanks to long-time Slashdot reader schwit1 for sharing the news.

Several items were stolen from a woman's P.O. box. So she mailed herself a package containing an Apple AirTag, according to the Santa Barbara County Sheriff's office: Her mail was again stolen on Monday morning, including the package with the AirTag that she was able to track.

It is important to note that the victim did not attempt to contact the suspects on her own... The Sheriff's Office would like to commend the victim for her proactive solution, while highlighting that she also exercised appropriate caution by contacting law enforcement to safely and successfully apprehend the suspects.
CNN reports on what the authorities found: The suspected thieves were located in nearby Santa Maria, California, with the victim's mail — including the package containing the AirTag — and other items authorities believe were stolen from more than a dozen victims, according to the sheriff's office. Virginia Franchessca Lara, 27, and Donald Ashton Terry, 37, were arrested in connection with the crime, authorities said.

Lara was booked on felonies including possession of checks with intent to commit fraud, fictitious checks, identity theft, credit card theft and conspiracy, and remains held on a $50,000 bail as of Thursday, jail records show. Terry faces felony charges including burglary, possession of checks with intent to commit fraud, credit card theft, identity theft and conspiracy and was held on a $460,000 bail, according to jail records...

Authorities said they're working on contacting other victims of theft in this case.
Thanks to long-time Slashdot reader schwit1 for sharing the news.

An anonymous reader quotes a report from Ars Technica, written by Dan Goodin: A judge in Ohio has issued a temporary restraining order against a security researcher who presented evidence that a recent ransomware attack on the city of Columbus scooped up reams of sensitive personal information, contradicting claims made by city officials. The order, issued by a judge in Ohio's Franklin County, came after the city of Columbus fell victim to a ransomware attack on July 18 that siphoned 6.5 terabytes of the city's data. A ransomware group known as Rhysida took credit for the attack and offered to auction off the data with a starting bid of about $1.7 million in bitcoin. On August 8, after the auction failed to find a bidder, Rhysida released what it said was about 45 percent of the stolen data on the group's dark web site, which is accessible to anyone with a TOR browser.

Columbus Mayor Andrew Ginther said on August 13 that a "breakthrough" in the city's forensic investigation of the breach found that the sensitive files Rhysida obtained were either encrypted or corrupted, making them "unusable" to the thieves. Ginther went on to say the data's lack of integrity was likely the reason the ransomware group had been unable to auction off the data. Shortly after Ginther made his remarks, security researcher David Leroy Ross contacted local news outlets and presented evidence that showed the data Rhysida published was fully intact and contained highly sensitive information regarding city employees and residents. Ross, who uses the alias Connor Goodwolf, presented screenshots and other data that showed the files Rhysida had posted included names from domestic violence cases and Social Security numbers for police officers and crime victims. Some of the data spanned years.

On Thursday, the city of Columbus sued Ross (PDF) for alleged damages for criminal acts, invasion of privacy, negligence, and civil conversion. The lawsuit claimed that downloading documents from a dark web site run by ransomware attackers amounted to him "interacting" with them and required special expertise and tools. The suit went on to challenge Ross alerting reporters to the information, which ii claimed would not be easily obtained by others. "Only individuals willing to navigate and interact with the criminal element on the dark web, who also have the computer expertise and tools necessary to download data from the dark web, would be able to do so," city attorneys wrote. "The dark web-posted data is not readily available for public consumption. Defendant is making it so." The same day, a Franklin County judge granted the city's motion for a temporary restraining order (PDF) against Ross. It bars the researcher "from accessing, and/or downloading, and/or disseminating" any city files that were posted to the dark web. The motion was made and granted "ex parte," meaning in secret before Ross was informed of it or had an opportunity to present his case.

A recent indictment (PDF) of an Alaska man stands out due to the sophisticated use of multiple encrypted communication tools, privacy-focused apps, and dark web technology. "I've never seen anyone who, when arrested, had three Samsung Galaxy phones filled with 'tens of thousands of videos and images' depicting CSAM, all of it hidden behind a secrecy-focused, password-protected app called 'Calculator Photo Vault,'" writes Ars Technica's Nate Anderson. "Nor have I seen anyone arrested for CSAM having used all of the following: [Potato Chat, Enigma, nandbox, Telegram, TOR, Mega NZ, and web-based generative AI tools/chatbots]." An anonymous reader shares the report: According to the government, Seth Herrera not only used all of these tools to store and download CSAM, but he also created his own -- and in two disturbing varieties. First, he allegedly recorded nude minor children himself and later "zoomed in on and enhanced those images using AI-powered technology." Secondly, he took this imagery he had created and then "turned to AI chatbots to ensure these minor victims would be depicted as if they had engaged in the type of sexual contact he wanted to see." In other words, he created fake AI CSAM -- but using imagery of real kids.

The material was allegedly stored behind password protection on his phone(s) but also on Mega and on Telegram, where Herrera is said to have "created his own public Telegram group to store his CSAM." He also joined "multiple CSAM-related Enigma groups" and frequented dark websites with taglines like "The Only Child Porn Site you need!" Despite all the precautions, Herrera's home was searched and his phones were seized by Homeland Security Investigations; he was eventually arrested on August 23. In a court filing that day, a government attorney noted that Herrera "was arrested this morning with another smartphone -- the same make and model as one of his previously seized devices."

The government is cagey about how, exactly, this criminal activity was unearthed, noting only that Herrera "tried to access a link containing apparent CSAM." Presumably, this "apparent" CSAM was a government honeypot file or web-based redirect that logged the IP address and any other relevant information of anyone who clicked on it. In the end, given that fatal click, none of the "I'll hide it behind an encrypted app that looks like a calculator!" technical sophistication accomplished much. Forensic reviews of Herrera's three phones now form the primary basis for the charges against him, and Herrera himself allegedly "admitted to seeing CSAM online for the past year and a half" in an interview with the feds.

Three former Backpage executives, including co-founder Michael Lacey, were sentenced to prison for promoting prostitution and laundering money while disguising their activities as a legitimate classified business. The Associated Press reports: A jury convicted Lacey, 76, of a single count of international concealment money laundering last year, but deadlocked on 84 other prostitution facilitation and money laundering charges. U.S. District Judge Diane Humetewa later acquitted Lacey of dozens of charges for insufficient evidence, but he still faces about 30 prostitution facilitation and money laundering charges. Authorities say the site generated $500 million in prostitution-related revenue from its inception in 2004 until it was shut down by the government in 2018.

Lacey's lawyers say their client was focused on running an alternative newspaper chain and wasn't involved in day-to-day operations of Backpage. But Humetewa told Lacey during Wednesday's sentencing he was aware of the allegations against Backpage and did nothing. "In the face of all this, you held fast," Humetewa said. "You didn't do a thing." Two other Backpage executives, Chief Financial Officer John Brunst and Executive Vice President Scott Spear, also were convicted last year and were each sentenced on Wednesday to 10 years in prison. The judge ordered Lacey and the two executives to report to the U.S. Marshals Service in two weeks to start serving their sentences.

An anonymous reader quotes a report from the BBC: South Korea's president has urged authorities to do more to "eradicate" the country's digital sex crime epidemic, amid a flood of deepfake pornography targeting young women. Authorities, journalists and social media users recently identified a large number of chat groups where members were creating and sharing sexually explicit "deepfake" images -- including some of underage girls. Deepfakes are generated using artificial intelligence, and often combine the face of a real person with a fake body. South Korea's media regulator is holding an emergency meeting in the wake of the discoveries.

The spate of chat groups, linked to individual schools and universities across the country, were discovered on the social media app Telegram over the past week. Users, mainly teenage students, would upload photos of people they knew -- both classmates and teachers -- and other users would then turn them into sexually explicit deepfake images. The discoveries follow the arrest of the Russian-born founder of Telegram, Pavel Durov, on Saturday, after it was alleged that child pornography, drug trafficking and fraud were taking place on the encrypted messaging app. South Korean President Yoon Suk Yeol on Tuesday instructed authorities to "thoroughly investigate and address these digital sex crimes to eradicate them."

"Recently, deepfake videos targeting an unspecified number of people have been circulating rapidly on social media," President Yoon said at a cabinet meeting. "The victims are often minors and the perpetrators are mostly teenagers." To build a "healthy media culture," President Yoon said young men needed to be better educated. "Although it is often dismissed as 'just a prank,' it is clearly a criminal act that exploits technology to hide behind the shield of anonymity," he said.

The Guardian notes that making sexually explicit deepfakes with the intention of distributing them is punishable by five years in prison or a fine of $37,500.

Further reading: 1 in 10 Minors Say Their Friends Use AI to Generate Nudes of Other Kids, Survey Finds (Source: 404 Media)

According to a new survey from Bitkom, cybercrime and other acts of sabotage have cost German companies around $298 billion in the past year, up 29% on the year before. Reuters reports: Bitkom surveyed around 1,000 companies from all sectors and found that 90% expect more cyberattacks in the next 12 months, with the remaining 10% expecting the same level of attacks. Some 70% of companies that were targeted attributed the attacks to organised crime, the survey found, adding 81% of companies reported data theft, including customer data, access data and passwords, as well as intellectual property such as patents. Around 45% of companies said they could attribute at least one attack to China, up from 42% in the previous year. Attacks blamed on Russia came in second place at 39%.

The increase in attacks has prompted companies to allocate 17% of their IT budget to digital security, up from 14% last year, but only 37% said they had an emergency plan to react to security incidents in their supply chain, the survey showed.

Telegram CEO Pavel Durov is heading to court for a possible indictment after being released from police custody, authorities in France said on Wednesday. From a report: "An investigating judge has ended Pavel Durov's police custody and will have him brought to court for a first appearance and a possible indictment," according to a statement from the Paris prosecutor's office that was quoted in an Associated Press article. Durov was arrested in Paris on Saturday and questioned by police for several days. The French investigative judge will "decide whether to place him under formal investigation following his arrest as part of a probe into organized crime on the messaging app," Reuters wrote today.

"Being placed under formal investigation in France does not imply guilt or necessarily lead to trial, but indicates that judges consider there is enough to the case to proceed with the probe. Investigations can last years before being sent to trial or shelved," Reuters wrote. The judge's decision on a formal investigation is expected today, the article said. On Monday, prosecutor Laure Beccuau issued a statement saying Durov was arrested "in the context of a judicial investigation" into a "person unnamed." The wording leaves open the possibility that the unnamed person is someone else, but the prosecutor's statement listed a raft of potential charges that may indicate what Durov could be charged with. Update: Telegram CEO Indicted in Paris Court .

Telegram founder and CEO Pavel Durov was arrested Saturday night by French authorities on allegations that his social media platform was being used for child pornography, drug trafficking and organized crime. The move sparked debate over free speech worldwide from prominent anti-censorship figures including Elon Musk, Robert F. Kennedy. Jr. and Edward Snowden. However, "the immediate freakout came from Russia," reports Politico. "That's because Telegram is widely used by the Russian military for battlefield communications thanks to problems with rolling out its own secure comms system. It's also the primary vehicle for pro-war military bloggers and media -- as well as millions of ordinary Russians." From the report: "They practically detained the head of communication of the Russian army," Russian military blogger channel Povernutie na Z Voine said in a Telegram statement. The blog site Dva Mayora said that Russian specialists are working on an alternative to Telegram, but that the Russian army's Main Communications Directorate has "not shown any real interest" in getting such a system to Russian troops. The site said Durov's arrest may actually speed up the development of an independent comms system. Alarmed Russian policymakers are calling for Durov's release.

"[Durov's] arrest may have political grounds and be a tool for gaining access to the personal information of Telegram users," the Deputy Speaker of the Russian Duma Vladislav Davankov said in a Telegram statement. "This cannot be allowed. If the French authorities refuse to release Pavel Durov from custody, I propose making every effort to move him to the UAE or the Russian Federation. With his consent, of course." Their worry is that Durov may hand over encryption keys to the French authorities, allowing access to the platform and any communications that users thought was encrypted.

French President Emmanuel Macron said Monday that the arrest of Durov was "in no way a political decision." The Russian embassy has demanded that it get access to Durov, but the Kremlin has so far not issued a statement on the arrest. "Before saying anything, we should wait for the situation to become clearer," said Kremlin spokesperson Dmitry Peskov. However, officials and law enforcement agencies were instructed to clear all their communication from Telegram, the pro-Kremlin channel Baza reported. "Everyone who is used to using the platform for sensitive conversations/conversations should delete those conversations right now and not do it again," Kremlin propagandist Margarita Simonyan said in a Telegram post. "Durov has been shut down to get the keys. And he's going to give them."

Pavel Durov, the Russian-born billionaire co-founder of the Telegram messaging app, was arrested in France in connection with an investigation into criminal activity on the platform and a lack of cooperation with law enforcement, prosecutors announced on Monday. From a report: Durov, who has French citizenship, was detained at Le Bourget airport, just outside Paris, on Saturday evening after arriving from Azerbaijan on his private jet. His surprise arrest has sparked debate over free speech worldwide and led to an outcry in Moscow. The Paris prosecutor Laure Beccuau said the investigation concerned crimes related to illicit transactions, child sexual abuse, fraud and the refusal to communicate information to authorities.

Earlier in the day the French president, Emmanuel Macron, gave the first confirmation that Durov had been arrested as part of a judicial inquiry in relation to Telegram. "In a state governed by the rule of law, freedoms are upheld within a legal framework, both on social media and in real life, to protect citizens and respect their fundamental rights," Macron wrote on X, adding that the arrest was "in no way a political decision." "It is up to the judiciary, in full independence, to enforce the law," he said. A senior official at Ofmin, a French agency set up last year to prevent violence against children, said Durov's arrest was linked to Telegram's failure to properly fight crime on the app, including the spread of child sexual abuse material.

Google may be the most successful company in the world. But a Washington Post reporter argues that Google "makes you largely responsible for dodging the criminals who are hurting legitimate businesses and swindling people." On Monday, I found what appeared to be impostors of customer service for Delta and Coinbase, the cryptocurrency company, in the "People also ask" section high up in Google. A group of people experienced in Google's intricacies also said this week that it took about 22 minutes to fool Google into highlighting a bogus business phone number in a prominent spot in search results...

If you look at the two impostor phone numbers in Google for Delta and Coinbase, there are red flags. There are odd fonts and a website below the bogus numbers that wasn't for either company. (I notified Google about the apparent scams on Monday and I still saw them 24 hours later.) The correct customer help numbers did appear at the very top, and Google says businesses have clear instructions to make their customer service information visible to people searching Google.
The larger issue is "a persistent pattern of bad guys finding ways to trick Google into showing scammers' numbers for airlines, hotels, local repair companies, banks or other businesses." The toll can be devastating when people are duped by these bogus business numbers. Fortune recently reported on a man who called what a Google listing said was Coinbase customer support, and instead it was an impostor who Fortune said tricked the man and stole $100,000...

Most of the time, you will find correct customer service numbers by Googling. But the company doesn't say how often people are tricked out of time and money by bogus listings — nor why Google can't stop the scams from recurring.
The article makes two points.

• Google says when they identify listings violating their rules, they move quickly against them.

• "Impostor numbers pop up so persistently that I am once again begging you to be wary of Google or Google Maps listings for business phone numbers... You still might see bogus phone numbers in some spots in Google. And if you're stressed trying to find help with a flight or a financial problem, you might overlook warning signs. Scams work because humans make errors in judgment, especially when we're confused or panicky. And business impostors aren't always obvious."

An anonymous reader shared this story from the blog Decrypt: Michael Lewis, author of Going Infinite, an account of the rise and fall of Sam Bankman-Fried, has argued that the disgraced FTX founder didn't have "the character of a thief" in a new The Washington Post article. "His crime was of a piece with his character. The character wasn't the character of a thief. It was the character of a person numb to risk." Lewis explained in the final paragraphs of a 4,500 word essay adapted from a new introduction to his book. "Unable to feel risk himself, he can't really imagine other people feeling much at all about the risk he has subjected them to...."

Lewis doubled down on previous claims that Bankman-Fried wasn't running a Ponzi scheme, arguing that "The crime was unnecessary to the business in a way that, say, Bernie Madoff's was not," and that "The crime made no sense." The collapse of FTX, he added, "might have been avoided and FTX might have survived."

"That doesn't mean I think that Sam Bankman-Fried is innocent. It merely informs how I feel about him," Lewis explained. "I think the truth is closer to 'young person with an intellectually defensible but socially unacceptable moral code makes a huge mistake in trying to live by it' than "criminal on the loose in the financial system.'"
From from The Daily Beast: Lewis also pointed to bankruptcy court filings from FTX in the weeks after Bankman-Fried's sentencing showing that "against the $8.7 billion in missing customer deposits, FTX was now sitting on something like $14.5 to $16.3 billion." "Whatever the exact sum, it was enough to repay all depositors and various other creditors at least 118 cents on the dollar — that is, everyone who imagined they had lost money back in November 2022 would get their money back, with interest," Lewis writes.
Michael Lewis's article offers some vivid details: Inside of three years, he'd gone from socially and emotionally isolated 25-year-old with an upper-middle-class bank account to leader of a small army of math nerds and (according to Forbes magazine) not merely the world's richest person under 30 but maybe the fastest creator of wealth in recorded history... He'd gone from having no friends as a child to having too many as an adult without ever developing a capacity for friendship....

The prosecutors didn't need Sam's help. Sam helped them anyway by ignoring the counsel of his lawyers and testifying on his own behalf... As Lewis Kaplan, the federal judge who presided over the case, said later: "When he wasn't outright lying, he was often evasive, hairsplitting, dodging questions and trying to get the prosecutor to reword questions in ways that he could answer in ways he thought less harmful than a truthful answer to the question that was posed would have been. I've been doing this job for close to 30 years. I've never seen a performance quite like that...." [T]he judge ordered Sam to rise so that he might address him directly. Two hours or so earlier, Sam had shuffled into the courtroom in prison khakis with his head down and his hands oddly clasped behind his back. Just before he'd entered, his guards had told him he was meant to be wearing handcuffs and asked if he could create the impression that he was doing so...

"There is a risk that this man will be in a position to do something very bad in the future, and it's not a trivial risk, not a trivial risk at all," said the judge. "So, in part, my sentence will be for the purpose of disabling him." He then sentenced Sam to 25 years in prison, with no possibility of parole.

A few minutes later, Sam dutifully clasped his hands behind his back and shuffled out of the courtroom.
Lewis adapted his 4,500-word article from the upcoming (updated) paperback edition of his book — which was originally published in 2023 on the same day jurors were selected for Bankman-Fried's trial...

The nonprofit American Radio Relay League — founded in 1914 — has approximately 161,000 members, according to Wikipedia (with over 7,000 members outside the U.S.)

But sometime in early May its systems network was compromised, "by threat actors using information they had purchased on the dark web," the nonprofit announced this week. The attackers accessed the ARRL's on-site systems — as well as most of its cloud-based systems — using "a wide variety of payloads affecting everything from desktops and laptops to Windows-based and Linux-based servers." Despite the wide variety of target configurations, the threat actors seemed to have a payload that would host and execute encryption or deletion of network-based IT assets, as well as launch demands for a ransom payment, for every system... The FBI categorized the attack as "unique" as they had not seen this level of sophistication among the many other attacks, they have experience with.

Within 3 hours a crisis management team had been constructed of ARRL management, an outside vendor with extensive resources and experience in the ransomware recovery space, attorneys experienced with managing the legal aspects of the attack including interfacing with the authorities, and our insurance carrier. The authorities were contacted immediately as was the ARRL President... [R]ansom demands were dramatically weakened by the fact that they did not have access to any compromising data. It was also clear that they believed ARRL had extensive insurance coverage that would cover a multi-million-dollar ransom payment. After days of tense negotiation and brinkmanship, ARRL agreed to pay a $1 million ransom. That payment, along with the cost of restoration, has been largely covered by our insurance policy...

Today, most systems have been restored or are waiting for interfaces to come back online to interconnect them. While we have been in restoration mode, we have also been working to simplify the infrastructure to the extent possible. We anticipate that it may take another month or two to complete restoration under the new infrastructure guidelines and new standards.
ARRL's called the attack "extensive", "sophisticated", "highly coordinated" and "an act of organized crime". And tlhIngan (Slashdot reader #30335) shared this detail from BleepingComputer.

"While the organization has not yet linked the attack to a specific ransomware operation, sources told BleepingComputer that the Embargo ransomware gang was behind the breach."

An anonymous reader quotes a report from NBC News: The former CEO of a small Kansas bank was sentenced to more than 24 years in prison for looting the bank of $47 million -- which he sent to cryptocurrency wallets controlled by scammers who had duped him in a "pig butchering" scheme that appealed to his greed, federal prosecutors said. The massive embezzlement by ex-CEO Shan Hanes in a series of wire transfers over just eight weeks last year led to the collapse and FDIC takeover of Heartland Tri-State Bank in Elkhart, one of only five U.S. banks that failed in 2023. Hanes, 53, also swindled funds from a local church and investment club -- and a daughter's college savings account -- to transfer money, purportedly to buy cryptocurrency as the scammers insisted they needed more funds to unlock the supposed returns on his investments, according to records from U.S. District Court in Wichita, Kansas. But Hanes never realized any profit and lost all of the money he stole as a result of the scam. Judge John Broomes on Monday sentenced Hanes to 293 months in prison -- 29 months more than what prosecutors requested after he pleaded guilty in May to a single count of embezzlement by a bank officer. [...]

[P]rosecutors and bank regulators said that Hanes, who has three daughters with his school teacher wife, began stealing after being targeted in a pig-butchering scheme in late 2022. That scheme was described in a court filing as "a scammer convincing a victim (a pig) to invest in supposedly legitimate virtual currency investment opportunities and then steals the victim's money -- butchering the pig." Hanes, who had served on the board of the American Bankers Association, and been chairman of the Kansas Bankers Association, in December 2022 began making transactions to buy cryptocurrency, which "appeared to be precipitated by communication with an unidentified co-conspirator on the electronic messaging app 'WhatsApp,'" prosecutors wrote in a court filing. "To date, the true identity of the co-conspirator, or conspirators, remain unknown," the filing notes. Hanes initially used personal funds to buy crypto, but in early 2023 he stole $40,000 from Elkhart Church of Christ and $10,000 from the Santa Fe Investment Club, according to prosecutors and a defense filing. He also used $60,000 taken from a daughter's college fund, and nearly $1 million in stock from the Elkhart Financial Corporation, his lawyer said in a filing.

In May 2023, he began to make wire transfers from Heartland Tri-State Bank to accounts controlled by scammers, at first with a $5,000 transfer. Two weeks later, on May 30, Hanes wired $1.5 million and a day after that, he sent another transfer of the same amount the following day, filings show. Three days later he directed two wire transfers totaling $6.7 million to be sent by the bank to the crypto wallet, and a whopping $10 million less than two weeks later, and another $3.3 million days afterward. Hanes told bank employees to execute the wire transfers, and "made many misrepresentations to various people" to get access to the funds so they could be transferred, prosecutors wrote. Heartland Tri-State employees circumvented the bank's own wire policy and daily limits to approve Hanes' wire transfers, according to a report by the Office of the Inspector General of the Board of Governors of the Federal Reserve System.

An anonymous reader shares a report: U.S. agencies are increasingly accessing parts of a half-billion encrypted chat message haul that has rocked the global organized crime underground, using the chats as part of multiple drug trafficking prosecutions, according to a 404 Media review of U.S. court records. In particular, U.S. authorities are using the chat messages to prosecute alleged maritime drug smugglers who traffic cocaine using speedboats and commercial ships.

The court records show the continued fallout of the massive hack of encrypted phone company Sky in 2021, in which European agencies obtained the intelligence goldmine of messages despite Sky being advertised as end-to-end encrypted. European authorities have used those messages as the basis for many prosecutions and drug seizures across the continent. Now, it's clear that the blast radius extends to the United States.

A 43-year-old Jordanian national, Hashem Younis Hashem Hnaihen, was arrested in Orlando, Florida, and charged with threatening to use explosives and destroying a solar power facility. According to the U.S. Department of Justice, the charges could result in up to 60 years in prison. Gizmodo reports: Hashem Younis Hashem Hnaihen allegedly smashed windows at local businesses in Florida, leaving behind threatening letters about their perceived support of Israel, and broke into a solar power generation facility in Wedgefield, Florida back in June. Hnaihen allegedly spent hours smashing solar panels, cutting various wires, and destroying critical electronic equipment, according to a press release from the DOJ issued Thursday.

Hnaihen was wearing a mask when he allegedly smashed the glass front doors of businesses that he thought supported Israel in June, the DOJ says, leaving behind "warning letters" that included lines like a desire to, "destroy or explode everything here in whole America. Especially the companies and factories that support the racist state of Israel." [...] Hnaihen was arrested on July 11, though news of his arrest was only made public today. Hnaihen entered a plea of not guilty and faces a maximum of 10 years in prison for each threat made against the Florida businesses and a maximum of 20 years for the destruction of an energy facility, according to the DOJ.

Longtime Slashdot reader schwit1 shares a report from Axios: Locking up merchandise at drugstores and discount retailers hasn't curbed retail theft but is driving frustrated consumers to shop online more, retail experts tell Axios. Retail crime is eating into retailers' profits and high theft rates are also leading to a rise in store closures. Secured cases can cause sales to drop 15% to 25%, Joe Budano, CEO of anti-theft technology company Indyme, previously told Axios. Barricading everything from razors to laundry detergent has largely backfired and broken shopping in America, Bloomberg reports.

Aisles full of locked plexiglass cases are common at many CVS and Walgreens stores where consumers have to wait for an employee to unlock them. Target, Walmart, Dollar General and other retailers have also pulled back on self-checkout to deter shoplifting. "Locking up products worsens the shopping experience, and it makes things inconvenient and difficult," GlobalData retail analyst Neil Saunders said, adding it pushes shoppers to other retailers or to move purchases online.

Driving the news: Manmohan Mahajan, Walgreens global chief financial officer, said in a June earnings call that the retailer was experiencing "higher levels of shrink." Amazon CEO Andy Jassy spoke of the "speed and ease" of ordering online versus walking into pharmacies on a call with investors last week. "It's a pretty tough experience with how much is locked behind cabinets, where you have to press a button to get somebody to come out and open the cabinets for you," Jassy said. schwit1 adds: "The American-style retail shopping experience was invented in a high-trust environment. As trust erodes, so does the experience."

An anonymous reader quotes a report from the Electronic Frontier Foundation (EFF): In a major decision on Friday, the federal Fifth Circuit Court of Appeals held (PDF) that geofence warrants are "categorically prohibited by the Fourth Amendment." Closely following arguments EFF has made in a number of cases, the court found that geofence warrants constitute the sort of "general, exploratory rummaging" that the drafters of the Fourth Amendment intended to outlaw. EFF applauds this decision because it is essential that every person feels like they can simply take their cell phone out into the world without the fear that they might end up a criminal suspect because their location data was swept up in open-ended digital dragnet. The new Fifth Circuit case, United States v. Smith, involved an armed robbery and assault of a US Postal Service worker at a post office in Mississippi in 2018. After several months of investigation, police had no identifiable suspects, so they obtained a geofence warrant covering a large geographic area around the post office for the hour surrounding the crime. Google responded to the warrant with information on several devices, ultimately leading police to the two defendants.

On appeal, the Fifth Circuit reached several important holdings. First, it determined that under the Supreme Court's landmark ruling in Carpenter v. United States, individuals have a reasonable expectation of privacy in the location data implicated by geofence warrants. As a result, the court broke from the Fourth Circuit's deeply flawed decision last month in United States v. Chatrie, noting that although geofence warrants can be more "limited temporally" than the data sought in Carpenter, geofence location data is still highly invasive because it can expose sensitive information about a person's associations and allow police to "follow" them into private spaces. Second, the court found that even though investigators seek warrants for geofence location data, these searches are inherently unconstitutional. As the court noted, geofence warrants require a provider, almost always Google, to search "the entirety" of its reserve of location data "while law enforcement officials have no idea who they are looking for, or whether the search will even turn up a result." Therefore, "the quintessential problem with these warrants is that they never include a specific user to be identified, only a temporal and geographic location where any given user may turn up post-search. That is constitutionally insufficient."

Unsurprisingly, however, the court found that in 2018, police could have relied on such a warrant in "good faith," because geofence technology was novel, and police reached out to other agencies with more experience for guidance. This means that the evidence they obtained will not be suppressed in this case.

"Zelle payments can't be reversed once they're sent," notes the Los Angeles Times — which could be why they're popular with scammers. "You can't simply stop the payment (like a check) or dispute it (like a credit card). Now, the federal regulator overseeing financial products is probing whether banks that offer Zelle to their account holders are doing enough to protect them against scams. Two major banks — JPMorgan Chase and Wells Fargo — disclosed in their security filings in the last week that they'd been contacted by the Consumer Financial Protection Bureau. According to the Wall Street Journal, which reported the filings Wednesday, the CFPB is exploring whether banks are moving quickly enough to shut down scammers' accounts and whether they're doing enough to identify and prevent scammers from signing up for accounts in the first place...

A J.D. Power survey this year found that 3% of the people who'd used Zelle said they had lost money to scammers, which was less than the average for peer-to-peer money transfer services such as Venmo, CashApp and PayPal. The chief executive of Early Warning Services, which runs Zelle, told a Senate subcommittee in July that only 0.1% of the transactions on Zelle involved a scam or fraud; in 2023, the company said, that percentage was 0.05%. But Zelle operates at such a large scale — 120 million users, 2.9 billion transactions and $806 billion transferred in 2023, according to Early Warning Services — that even a tiny percentage of scam and fraud problems translates into a large number of users and dollars... From 2022 to 2023, Zelle cut the rate of scams by nearly 50% even as the volume of transactions grew 28%, resulting in less money scammed in 2023 than in 2022, said Ben Chance, the chief fraud risk management officer for Zelle. The company didn't disclose the amounts involved, but if 0.05% of the $806 billion transferred in 2023 involved scam or fraud, that would translate to $403 million.

Do Zelle users get reimbursed for scams? Only in certain cases, and this is where the banks that offer Zelle have drawn the most heat. If you use Zelle to pay a scammer, banks say, that's a payment you authorized, so they're not obliged under law to refund your money... Some banks, such as Bank of America, say they will put a freeze on transfers by a suspected scammer as soon as a report comes in, then investigate and, if the report is substantiated, seize and return the money. But that works only if the scam is reported right away, before the scammer has the chance to withdraw the funds — which many will do immediately, said Iskander Sanchez-Rola, director of innovation at the cybersecurity company Gen.

The New York Times visits the downtown of one of America's biggest tech cities to explore San Francisco's "Vacant to Vibrant" initiative, where "city and business leaders provide free rent for up to six months" to "entrepreneurs who want to set up shop in empty spaces, many of which are on the ground floor of office buildings."

The program also offers funding for business expenses (plus technical and business permit assistance) — and it seems to be working. One cafe went on to sign a five-year lease for a space in the financial district's iconic One Embarcadero Center building — and the building's landlord says the program also resulted in another three long leases. Can the progress continue? The hope is that these pop-up operations will pay rent and sign longer leases after the free-rent period is over, and that their presence will regenerate foot traffic in the area. Some 850 entrepreneurs initially applied for a slot, and 17 businesses were chosen to occupy nine storefront spaces in the fall. Out of those businesses, seven extended their leases and now pay rent. Eleven businesses were selected in May for the program's second cohort, which started operating their storefronts this summer...

The city's office vacancy rate hit 33.7%, a record high, in the second quarter this year, according to JLL, a commercial real estate brokerage. That's one of the bleakest office markets in the nation, which has an average vacancy rate of about 22%. For the moment, however, San Francisco has a silver lining in Vacant to Vibrant. Rod Diehl, the BXP executive vice president who oversees its West Coast properties, said the pop-up strategy was good not just for local business owners to test their concepts and explore growth opportunities, but also for office leasing efforts... Beyond free rent, which is typically given for three months with a possibility for another three months, Vacant to Vibrant provides up to $12,000 to the businesses to help cover insurance and other expenses. The program also offers grants up to $5,000 for building owners to cover costs for tenant improvements in the spaces as well as for other expenses like utilities...

In addition to the Vacant to Vibrant program — which received $1 million from the city initially and is set to receive another $1 million for the current fiscal year, which began July 1 — the city is directing nearly $2 million toward a similar pop-up program. This new program would help businesses occupy larger empty spaces along Powell Street, as crime and other retail pressures have driven out several retailers, including Anthropologie, Banana Republic and Crate & Barrel, in the Union Square area.
One business owner who joined "Vacant to Vibrant" in May says they haven't decided yet whether to sign a lease. "It's not as crowded as before the pandemic." But according to the article, "she was hopeful that more businesses opening nearby would attract more people."

"In addition to filling empty storefronts, the program has the opportunity to bring in a fresher and more localized downtown shopping vibe, said Laurel Arvanitidis, director for business development at San Francisco's Office of Economic and Workplace Development." Victor Gonzalez, an entrepreneur who founded GCS Agency to stage showings for artists, is embracing the opportunity to get a foothold downtown despite the city's challenges. When he opened a storefront as part of the first Vacant to Vibrant cohort in the Financial District last year, he immediately knew that he wanted to stay there as long as possible. He has since signed a three-year lease. "San Francisco is no stranger to big booms and busts," he said. "So if we're in the midst of a bust, what's next? It's a boom. And I want to be positioned to be part of it."