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Hive ransomware: modern, efficient business model

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On the so-called dark web, providers of ransomware services and support pitch their products openly
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The US Justice Department’s shutdown Thursday of the Hive ransomware operation — which extorted some $100 million from more than 1,5000 victims worldwide — highlights how hacking has become an ultra-efficient, specialized industry that can allow anyone to become a cyber-shakedown artist.

– Modern business model –

Hive operated in what cybersecurity experts call a “ransomware as a service” style, or RaaS — a business that leases it software and methods to others to use in extorting a target.

The model is central to the larger ransomware ecosystem, in which actors specialize in one skill or function to maximize efficiency.

According to Ariel Ropek, director of cyber threat intelligence at cybersecurity firm Avertium, this structure makes it possible for criminals with minimal computer fluency to get into the ransomware game by paying others for their expertise.

“There are quite a few of them,” Ropek said of RaaS operations.

“It is really a business model nowadays,” he said.

– How it works –

On the so-called dark web, providers of ransomware services and support pitch their products openly.

At one end are the initial access brokers, who specialize in breaking into corporate or institutional computer systems. 

They then sell that access to the hacker, or ransomware operator.

But the operator depends on RaaS developers like Hive, which have the programming skills to create the malware needed to carry out the operation and avoid counter-security measures.

Typically, their programs — once inserted by the ransomware operator into the target’s IT systems — are manipulated to freeze, via encryption, the target’s files and data.

The programs also extract the data back to the ransomware operator.

RaaS developers like Hive offer a full service to the operators, for a large share of the ransom paid out, said Ropek.

“Their goal is to make the ransomware operation as turnkey as possible,” he said.

– Polite but firm –

When the ransomware is planted and activated, the target receives a message telling them how to correspond and how much to pay to get their data unencrypted.

That ransom can run from thousands to millions of dollars, usually depending on the financial strength of the target.

Inevitably the target tries to negotiate on the portal. They often don’t get very far.

Menlo Security, a cybersecurity firm, last year published the conversation between a target and Hive’s “Sales Department” that took place on Hive’s special portal for victims.

In it, the Hive operator courteously and professionally offered to prove the decryption would work with a test file. 

But when the target repeatedly offered a fraction of the $200,000 demanded, Hive was firm, insisting the target could afford the total amount.

Eventually, the Hive agent gave in and offered a significant reduction — but drew the line there.

“The price is $50,000. It’s final. What else to say?” the Hive agent wrote.

If a target organization refuses to pay, the RaaS developers hold a backup position: they threaten to release the hacked confidential files online or sell them. 

Hive maintained a separate website, HiveLeaks, to publish the data.

On the back end of the deal, according to Ropek, there are specialist operations to collect the money, making sure those taking part get their shares of the ransom.

Others, known as cryptocurrency tumblers, help launder the ransom for the hacker to use above-ground.

– Modest blow –

Thursday’s action against Hive was only a modest blow against the RaaS industry.

There are numerous other ransomware specialists similar to Hive still operating.

The biggest current threat is LockBit, which attacked Britain’s Royal Mail in early January and a Canadian children’s hospital in December.

In November, the Justice Department said LockBit had reaped tens of millions of dollars in ransoms from 1,000 victims.

And it isn’t hard for Hive’s operators to just start again.

“It’s a relatively simple process of setting up new servers, generating new encryption keys. Usually there’s some kind of rebrand,” said Ropek.

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TikTok suspends rewards programme after EU probe

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TikTok Lite arrived in France and Spain in March allowing users aged 18 and over to earn points that can be exchanged for goods
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TikTok on Wednesday announced the suspension of a feature in its spinoff TikTok Lite app in France and Spain that rewards users for watching and liking videos, after the European Union launched a probe.

The popular video-sharing social media platform, owned by Chinese company ByteDance, said the suspension would remain  “while we address the concerns that they have raised”.

The European Commission’s top tech enforcer, Thierry Breton, said the EU investigation would continue, stating: “Our children are not guinea pigs for social media.”

TikTok Lite arrived in France and Spain — the only EU countries where it is available — in March. Users aged 18 and over can earn points to exchange for goods like vouchers or gift cards through the app’s rewards programme.

TikTok Lite is a smaller version of the popular TikTok app, taking up less memory in a smartphone and made to perform over slower internet connections.

The European Commission on Monday announced an investigation into TikTok Lite, and threatened to have the rewards programme suspended, raising concerns about the risk to users’ mental health.

The commission demanded TikTok provide more information by a Wednesday deadline, along with any defence against the threatened suspension.

Breton said in a statement that “our cases against TikTok on the risk of addictiveness of the platform continue”.

“We suspect that this (rewards) feature could generate addiction and that TikTok did not do a diligent risk assessment and take effective mitigation measures prior to its launch,” he said.

The probe is the EU’s second against TikTok under a sweeping new law, the Digital Services Act (DSA), that requires digital firms operating in the 27 nations to effectively police online content.

In February, the commission opened a formal probe into TikTok over alleged violations of its obligations to protect minors online.

– TikTok squeezed –

TikTok is also under pressure across the Atlantic.

A bill to ban TikTok cleared the US Congress after the Senate on Tuesday approved legislation requiring TikTok to be divested from ByteDance.

TikTok’s CEO, Shou Zi Chew, said the company would fight the law — which he said amounted to a ban — in US courts.

The European Commission has refused to comment on the United States’ move. Instead it has focused on the EU’s legal arsenal to bring big tech into line with its rules.

The move against the TikTok Lite rewards scheme was the latest instance of the EU flexing that legal muscle against online platforms.

It is also investigating tech billionaire Elon Musk’s X, the former Twitter, over alleged illegal content.

TikTok Lite users can win rewards if they log in daily for 10 days, if they spend time watching videos (with an upper limit of 60 to 85 minutes per day), and if they undertake certain actions, such as liking videos and following content creators.

TikTok is among 22 “very large” digital platforms, including Amazon, Facebook, Instagram and YouTube, that must comply with stricter rules under the DSA since August last year.

The law gives the EU the power to hit companies with heavy fines as high as six percent of a digital firm’s global annual revenues. Repeat offenders can see their platforms blocked in the EU.

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In Brazil, hopes to use AI to save wildlife from roadkill fate

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Some 475 million vertebrate animals die on Brazilian roads every year
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In Brazil, where about 16 wild animals become roadkill every second, a computer scientist has come up with a futuristic solution to this everyday problem: using AI to alert drivers to their presence.

Direct strikes on the vast South American country’s extensive road network are the top threat to numerous species, forced to live in ever-closer proximity with humans.

According to the Brazilian Center for Road Ecology (CBEE), some 475 million vertebrate animals die on the road every year — mostly smaller species such as capybaras, armadillos and possums.

“It is the biggest direct impact on wildlife today in Brazil,” CBEE coordinator Alex Bager told AFP.

Shocked by the carnage in the world’s most biodiverse country, computer science student Gabriel Souto Ferrante sprung into action.

The 25-year-old started by identifying the five medium- and large-sized species most likely to fall victim to traffic accidents: the puma, the giant anteater, the tapir, the maned wolf and the jaguarundi, a type of wild cat.

Souto, who is pursuing a master’s degree at the University of Sao Paulo (USP), then created a database with thousands of images of these animals, and trained an AI model to recognize them in real time.

Numerous tests followed, and were successful, according to the results of his efforts recently published in the journal Scientific Reports.

Souto collaborated with the USP Institute of Mathematical and Computer Sciences.

For the project to become a reality, Souto said scientists would need “support from the companies that manage the roads,” including access to traffic cameras and “edge computing” devices — hardware that can relay a real-time warning to drivers like some navigation apps do.

There would also need to be input from the road concession companies, “to remove the animal or capture it,” he told AFP.

It is hoped the technology, by reducing wildlife strikes, will also save human lives.

– ‘More roads, more vehicles’- 

Bager said a variety of other strategies to stop the bloodshed on Brazilian roads have failed.

Signage warning drivers to be on the lookout for crossing animals have little influence, he told AFP, leading to a mere three-percent reduction in speed on average.

There are also so-called fauna bridges and tunnels meant to get animals safely from one side of the road to the other, and fences to keep them in — all insufficient to deal with the scope of the problem, according to Bager.

In 2014, he created an app called Urubu with other ecologists, to which thousands of users contributed information, allowing for the identification of roadkill hotspots.

The project helped to create public awareness and even inspired a bill on safe animal crossing and circulation, which is awaiting a vote in Congress. 

A lack of money saw the app being shut down last year, but Bager is intent on having it reactivated.

“We have more and more roads, more vehicles and a number of roadkill animals that likely continues to grow,” he said.

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Honda to build major EV plant in Canada: govt source

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Honda hopes to sell only zero-emission vehicles by 2040, with a goal of going carbon-neutral in its own operations by 2050
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Japanese auto giant Honda will open an electric vehicle plant in eastern Canada, a Canadian government source familiar with the multibillion-dollar project told AFP on Monday.

The federal government as well as the province of Ontario, where the plant will be built, will both provide some financial incentives for the deal, according to the source, who spoke on condition of anonymity.

The official announcement is due Thursday, though Ontario premier Doug Ford hinted at the deal on Monday.

“This week, we’ve landed a new deal. It will be the largest deal in Canadian history. It’ll be double the size of Volkswagen,” he said, referring to a battery plant announced last year, for which the German automaker pledged Can$7 billion (US$5 billion) in investment.

Canada in recent years has been positioning itself as an attractive destination for electric vehicle investment, touting tax incentives, renewable energy access and its rare mineral deposits.

The Honda plant, to be built an hour outside Toronto, in Alliston, will also produce electric-vehicle batteries, joining existing Volkswagen and Stellantis battery plants.

In January, when news of the deal first bubbled up in the Japanese press, the Nikkei newspaper estimated it would be worth Can$14 billion — numbers backed up by Canadian officials recently.

In the federal budget announced last week, Prime Minister Justin Trudeau’s government introduced a new business tax credit, granting companies a 10 percent rebate on construction costs for new buildings used in key segments of the electric vehicle supply chain.

Canada’s strategy follows that of the neighboring United States, whose Inflation Reduction Act has provided a host of incentives for green industry.

Honda hopes to sell only zero-emission vehicles by 2040, with a goal of going carbon-neutral in its own operations by 2050.

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