Start up: botnets worsen, who really hacked Sony?, mobile PCs in 2015, LizardSquad in detail


This stuff doesn’t work on mobile, apparently. Photo by Justin in SD on Flickr.

A selection of 9 links for you. Use them wisely. I’m charlesarthur on Twitter. Observations and links welcome.

Botnet summary 2014 >> Spamhaus

To nobody’s surprise, botnet activity appears to be increasing. The majority of detected botnets are targeted at obtaining and exploiting banking and financial information. Botnet controllers (C&Cs) are hosted disproportionately on ISPs with understaffed abuse departments, inadequate abuse policies, or inefficient abuse detection and shutdown processes. Botnet C&C domains are registered disproportionately with registrars in locations that have lax laws or inadequate enforcement against cybercrime.

In 2014, Spamhaus detected 7,182 distinct IP addresses that hosted a botnet controller (Command & Control server – C&C). That is an increase of 525 (or 7.88%) botnet controllers over the number we detected in 2013. Those C&Cs were hosted on 1,183 different networks.

Depressing.


New York Times bets on native ads to drive mobile-ad revenue >> Media – Advertising Age

The New York Times is looking at native advertising, sponsorships and video to wring more money from readers coming to the Times on their mobile phones, according to Mark Thompson, president and CEO of The New York Times Co.

Just 10% of the Times’ digital advertising revenue was from mobile ads in the third quarter, but more than half its digital traffic came through mobile devices. Although mobile ad revenue is “growing rapidly,” this gap represents a “significant delta,” Mr. Thompson said at the UBS Global Media and Communications Conference in New York on Tuesday.

“It’s a challenge to overcome, but we will overcome it,” he said.

This seems like a natural and necessary evolution, given the low rates of mobile. They won’t make up for desktop, which in turn didn’t make up for print. Advertising rates are falling to zero.


What is going to happen >> AVC

Venture capitalist Fred Wilson with his list of predictions, from which we’ll pick these two:

4/ After a big year in 2014 with the Facebook acquisition of Oculus Rift, virtual reality will hit some headwinds. Oculus will struggle to ship their consumer version and competitive products will underwhelm. The virtual reality will eventually catch up to the virtual hype, but not in 2015.

5/ Another market where the reality will not live up to the hype is wearables. The Apple Watch will not be the homerun product that iPod, iPhone, and iPad have been. Not everyone will want to wear a computer on their wrist. Eventually, this market will be realized as the personal mesh/personal cloud, but the focus on wearables will be a bit of a headfake and take up a lot of time, energy, and money in 2015 with not a lot of results.

I’m very interested in trying Oculus Rift. Wearables are a tough sell anyway. However, Apple isn’t positioning its Watch as any part of what has gone before.


FBI briefed on alternate Sony hack theory >> Politico

Tal Kopan:

Researchers from the cyber intelligence company Norse have said their own investigation into the data on the Sony attack doesn’t point to North Korea at all and instead indicates some combination of a disgruntled employee and hackers for piracy groups is at fault.

The FBI says it is standing by its conclusions, but the security community says the agency has been open and receptive to help from the private sector throughout the Sony investigation.

Norse, one of the world’s leading cyber intelligence firms, has been researching the hack since it was made public just before Thanksgiving.

Norse’s senior vice president of market development said the quickness of the FBI’s conclusion that North Korea was responsible was a red flag.

1) a riled insider or insiders is a far, far more likely path to this hack
2) there’s no way in the world, now that the FBI has said that North Korea did it, and President Obama has echoed that, that the FBI or US government will ever admit to being wrong unless it is part of some gigantic diplomatic deal with North Korea. One has to wonder what NK would give the US in return for making the US eat humble pie in public.


Competition to intensify in flagging mobile PC market in 2015 >> TrendForce

Google’s low-cost Chromebook notebook computer performed well this year, benefiting from its cloud storage capacity and strong data security capabilities. But Chromebook sales were affected by Microsoft’s subsidized low-cost Windows notebooks. In 2014, Google sold about 6.5m Chromebooks and the device’s market penetration [of the mobile market] reached 4%. But if Chromebook uses the 2-in-1 PC concept, it will be difficult for Google to keep the device’s price low, Chen said. TrendForce forecasts Chomebook sales will increase slightly to 8m units in 2015. 

This year, Microsoft and Intel both launched subsidy plans for their notebooks and tablets, which had reduced their revenues. “Because they lower manufacturers’ costs, subsidies indirectly benefit consumers, but it will be better if Microsoft and Intel can find more substantial ways to develop the market, such as by utilizing the 2-in-1 concept or cloud computing,” [Caroline] Chen [Trendforce notebook analyst] said. 

Notably, this group describes the expected 12.9in iPad as a “2-in-1” device, not a tablet. There’s a certain amount of disagreement between analyst companies on what is a PC, what’s mobile, what’s a 2-in-1, and what’s a tablet; it can make decoding what they say really tricky.


May 2014: Samsung says new Galaxy S5 smartphone is off to a strong start >> WSJ

Noted here for its hindsight value, from an interview in May 2014:

J.K. Shin, who also heads Samsung’s mobile business, said in an interview at company headquarters that sales of the new smartphone reached more than 11m units since its launch in early April, outpacing the Galaxy S4, which sold about 10m in the first month after it was unveiled last year.

Speaking halfway into Samsung’s second quarter, Mr. Shin also said he thinks strong Galaxy S5 sales will lead to higher mobile profit margins and market share in the quarter. He declined to provide specific figures.

“It’s been a month since we began selling the S5, and out of the gate, sales are much stronger than the Galaxy S4,” Mr. Shin said, noting sales were especially good in developed markets such as the U.S., Australia and Germany.

The comments from the top executive at the world’s biggest smartphone maker paint a rosier picture of Samsung’s mobile business than many analysts and investors had been expecting.

What then happened is that Samsung made 20% more S5s than it had S4s, but sold 10% fewer. This meant oversupply in the channel (wholesalers/carriers) and forced price cuts, and so lower profits and slower sales.

Worth considering when you next see a chief executive interviewed, and weigh up what analysts are expecting.

Samsung Electronics should announce its preliminary 4Q results some time next week.


Here’s why The Hunt’s app developer hearts Android >> VentureBeat | Dev | by Barry Levine

While “the conventional wisdom is build first for iOS,” he said, “if we had to do it all over again, I would launch on Android first,” or at the same time as iOS. More than half of The Hunt’s downloads are to Android devices.

The Hunt’s Android version launched last month, and its iOS version came out last year.

The Hunt allows its three million, mostly female users to post a picture of some product they’ve seen online — such as a photo of a dress in a news story — and get feedback from the community of retailers and fellow shoppers about where that item or something similar is sold.

Weingarten noted that his company has “a very successful iPhone app, [with] thousands of daily downloads.”

“I’m not being negative about Apple.”

But, he pointed out, his company is “seeing much stronger engagement rates on Android.”

As one example, more than a third of Android users who have downloaded the app have started Hunts, while only 20% of iOS users have. Additionally, 40% of iOS weekly users are following to see if their Hunt queries have found the product in question, while half of Android users are.

Be good to know some more of the demographics of the users showing these behaviours. An interesting data point though.


Inadvertent algorithmic cruelty >> Eric Meyer

Yes, my year looked like that.  True enough.  My year looked like the now-absent face of my little girl.  It was still unkind to remind me so forcefully.

And I know, of course, that this is not a deliberate assault.  This inadvertent algorithmic cruelty is the result of code that works in the overwhelming majority of cases, reminding people of the awesomeness of their years, showing them selfies at a party or whale spouts from sailing boats or the marina outside their vacation house.

But for those of us who lived through the death of loved ones, or spent extended time in the hospital, or were hit by divorce or losing a job or any one of a hundred crises, we might not want another look at this past year.

To show me Rebecca’s face and say “Here’s what your year looked like!” is jarring.  It feels wrong, and coming from an actual person, it would be wrong.  Coming from code, it’s just unfortunate.  These are hard, hard problems.  It isn’t easy to programmatically figure out if a picture has a ton of Likes because it’s hilarious, astounding, or heartbreaking.

This post has been widely shared, but it is worth reflecting on from a distance. Algorithms have dangerous power because once we start them off, it’s really hard to stop them.


Lizard Squad kids: a long trail of fail >> Krebs on Security

In a show of just how little this group knows about actual hacking and coding, the source code for the service appears to have been lifted in its entirety from titaniumstresser, another, more established DDoS-for-hire booter service. In fact, these Lizard geniuses are so inexperienced at coding that they inadvertently exposed information about all of their 1,700+ registered users (more on this in a moment).

These two services, like most booters, are hidden behind CloudFlare, a content distribution service that lets sites obscure their true Internet address. In case anyone cares, Lizardstresser’s real Internet address currently is 217.71.50.57, at a hosting facility in Bosnia.

In any database of leaked forum or service usernames, it is usually safe to say that the usernames which show up first in the list are the administrators and/or creators of the site. The usernames exposed by the coding and authentication weaknesses in LizardStresser show that the first few registered users are “anti” and “antichrist.” As far as I can tell, these two users are the same guy: A ne’er-do-well who has previously sold access to his personal DDoS-for-hire service on Darkode — a notorious English-language cybercrime forum that I have profiled extensively on this blog.

One of the duo alleged to make up Lizard Squad is a 22-year-old Briton who has been arrested and bailed by Thames Valley Police. He’s on Twitter, has been interviewed by Sky News, and denies having taken part in any hack (or DDOS?) of Sony or Microsoft; he claims just to be the group’s spokesman, if his Twitter feed reflects his views.

Let’s see how that works out. He also says the alleged offences for which he has been bailed include some from 2013.


Links: self-driving cars in the rain (oh dear..), iBeacon in the Louvre, the unseen digital ads, bitcoin gets easier, and more


Apparently this stuff affects self-driving cars. Photo by Anthony Quintano on Flickr.

A selection of 6 afternoon links for you. Enjoy to the full extent of the law. I’m charlesarthur on Twitter. Observations and links welcome.

Louvre Museum’s DNA >> MIT SENSEable City Lab

How much time would you take to smile back at the Mona Lisa? Today, sophisticated Bluetooth signal tracking allows us to map how visitors move through a museum like the Louvre in Paris – what galleries they visit, what path they take, and how long they spend in front of each piece of artwork. Join us for a look inside one of the world’s largest museums… to see the people in front of the paintings.

Surprisingly, people who stay for long or short times don’t vary that much in where they go. They just go at different paces.


​This is how bad self-driving cars suck in the rain >> Jalopnik


(Jump forward to about 5 minutes in.)

The issues with the KAIST Unmanned Systems Research Group’s car were numerous, but the biggest problems had less to do with the slippery road surface and more to do with the visual systems. Those cameras and LIDAR arrays are dependent on a clear view, and with the angle of the car shifting and the direction of the sun, the sensors fail to pick up everything from street signs to lane markings and even pedestrians. And it just keeps getting worse.3

The team has to hit the emergency stop button at least twice, veers onto the side of the road, doesn’t see a curb and almost slams into a light pole, and then smacks into a barrier when parking.


56% of digital ads served are never seen, says Google >> Advertising Age

An incredible 56.1% of ads on the internet are not seen by humans, according to new research released today by Google.

“With the advancement of new technologies we now know that many display ads that are served never actually have the opportunity to be seen by a user,” said Google group product manager Sanaz Ahari in a blog post.

Those ads appear outside the viewable area of a browser window. Once you factor in bots, even fewer ads are seen by the people advertisers are paying to reach.


Bitcoin price decline sparks rare mining difficulty drop >> Coindesk

Mining difficulty determines how difficult it is to hash a new block and varies based on the amount of computing power used by miners on the bitcoin network. Bitcoin’s growing popularity has attracted more computing power to the network, meaning that the difficulty has been steadily increasing for some time.

However, stagnant pricing has caused a reduction in the hash rate over the past few weeks, resulting in the slight difficulty decrease. The estimated next difficulty level is 39,884,219,890, or -0.31%.

The sheer size of the bitcoin network ensures resilience and stability, but the hash rate has been stagnant for weeks and started declining in the first days of December.

This actually makes me think that bitcoin might have a chance as a medium of exchange. Once its price is stable for long enough, it becomes unattractive to speculators – but ideal for people looking to transfer value.


The SSD endurance experiment: two freaking petabytes >> The Tech Report

Geoff Gasior:

Our SSD Endurance Experiment has left four casualties in its wake so far. Representatives from the Corsair Neutron Series GTX, Intel 335 Series, Kingston HyperX 3K, and Samsung 840 Series all perished to satisfy our curiosity. Each one absorbed far more damage than its official endurance specification promised—and far more than the vast majority of users are likely to inflict.

The last victim fell at 1.2PB, which is barely a speck in the rear-view mirror for our remaining subjects. The 840 Pro and a second HyperX 3K have now reached two freaking petabytes of writes. To put that figure into perspective, the SSDs in my main desktop have logged less than two terabytes of writes over the past couple years. At this rate, it’ll take me a thousand years to reach that total.

They’re wayyy over spec. Great experiment.


Facebook ad pranking, Samsung’s design wars, Wirelurker arrests, web: alive or dead?, and more


1952 Illustrated Food Ad. This is not targeted to you at all. Honest.

A selection of 11 links for you. Do not spray on pets. I’m on Twitter as @charlesarthur. Do ping me links, opinions, etc.

Pranking my roommate with eerily targeted Facebook ads >> My Social Sherpa

Brian Swichkow:

I don’t do anything half-assed and he knew that. So about two months later I was experimenting with different ways to use Facebook’s Custom Audience targeting and having quite a bit of success. I was using a list of about 10,000 people and getting some of the highest click-throughs I had seen in a long time. Being a fan of the Mythbusters where they believe that anything worth doing is worth overdoing – I asked myself how I could take this to the next level. I realized that stepping things up a notch was actually stepping them down a notch in this case and I asked how targeted I could make my audience. I said to myself, “What if I only had like five people in an audience? What if I only had one person in an audience? … I should test this … I should test this on my roommate.”

The amazing thing here is the cost of doing it. You’ll have to read the article. Try guessing how much first though.


Pearl: the Compact Mirror Battery Project that started on Kickstarter but ended with Indiegogo >> Daniel Chin

Pearl™: Compact Mirror + USB Rechargeable Battery Pack was originally a Kickstarter project that was supposed to run from November 10 to December 3, 2014. In less than 48 hours since the project launched, it raised over $41,000, surpassing its $30,000 funding goal.

Then all of a sudden, we were informed by Kickstarter that our project was suspended due to a DMCA copyright infringement claim. It is a ridiculous, unfounded and fraudulent claim which Kickstarter did not bother to verify with us.

The allegations in the blog post are serious. One wonders how much of this goes on and simply never surfaces. Kickstarter doesn’t come out of it looking much good.


Alleged creators of WireLurker malware arrested in China >> SecurityWeek.Com

Three individuals suspected of being involved in the creation and distribution of a recently uncovered piece of malware referred to as “WireLurker” have been arrested and charged, the Beijing Municipal Bureau of Public Security said on Friday.

The suspects, identified by their surnames as Wang, Lee and Chen, were taken into custody on Thursday based on information provided to law enforcement authorities by the China-based security company Qihoo 360 Technology.

WireLurker, a threat designed to target devices running Mac OS X, iOS and Windows, was recently uncovered by Palo Alto Networks. The network security firm’s researchers identified a total of 467 malicious OS X apps which by mid-October had been downloaded by Chinese users over 350,000 times from an app store called Maiyadi. Cybercriminals distributed the threat by packaging it with popular games and applications.


Ditto creator says Samsung phones are “crammed with complexity and redundant features” >> PhoneArena

Parallel to the launch process of Ditto, the simplest notifications wearable device there is, its product designer Bob Olodort opened up about his small-time gig as a consulting designer at Samsung. He told VentureBeat that he’d pay the Korean chaebol a visit four times a year and show them “elegant, innovative phone designs” – each one “optimized to provide an ideal set of features for a […] target customer” and an example of “simplicity and elegance”. So why are our faithful Samsung phones the exact feature-stuffed opposite of this fine concept? 

Olodort has the blunt answer: “They would louse it up by putting in everything — that’s their style at Samsung. A few young Samsung engineering managers would each add their own pet features. Later, the carriers Samsung sold to would insist on another set of features. Pretty soon the phones would be crammed with complexity and redundant features.” Unsurprisingly, the simplicity-obsessed Oledorf left to do his own thing.

This is hardly news to anyone who’s tried a Samsung smartphone. It sounds much like LG’s approach to Smart TV – every manager is desperate to get their own pet project in.


What happens when pirates play a game development simulator and then go bankrupt because of piracy? >> Greenheart Games

Old (well, from April 2013) but good. Greenheart Games intentionally uploaded a cracked version of their game to torrent sites:

The cracked version is nearly identical to the real thing except for one detail… Initially we thought about telling them their copy is an illegal copy, but instead we didn’t want to pass up the unique opportunity of holding a mirror in front of them and showing them what piracy can do to game developers. So, as players spend a few hours playing and growing their own game dev company, they will start to see the following message, styled like any other in-game message:

“Boss, it seems that while many players play our new game, they steal it by downloading a cracked version rather than buying it legally. If players don’t buy the games they like, we will sooner or later go bankrupt.”

Slowly their in-game funds dwindle, and new games they create have a high chance to be pirated until their virtual game development company goes bankrupt.

The online responses are predictably hilarious as pirating players complain without irony that piracy is hurting the profitability of the pirated game they’re playing.

Apposite today with PCalc developer James Thomson noting that around 70% of the copies of his app in use on iOS are pirated. (The suggestions for how to fix that – read the tweet replies – are quite fun.)


How Apple creates leverage, and the future of Apple Pay >> stratechery by Ben Thompson

I hadn’t come across BATNA – Best Alternative To a Negotiated Agreement – before, which Thompson uses earlier in this piece to explain how Apple uses what it has to succeed in negotiations, and then in new spaces such as Apple Pay:

Presuming this works out as well for Apple as I expect it to, there are two key lessons to be drawn. First, all of Apple’s leverage ultimately – either directly or indirectly – stems from consumer loyalty, which itself is based on Apple’s focus on the user experience. Second, the reason why Tim Cook so confidently called out Apple Pay as a new category is that he knew it was an area where Apple could bring that leverage to bear, just as they did in music and telephony. This is in marked contrast to the Apple TV, which is still a hobby: TV remains a much stronger business that is far more resistant to disruption than most people in tech appreciate, and until Apple has a means of obtaining leverage it will only ever remain so.


Welcome to the “Million Smartphone Club” of India >> Counterpoint Technology

Looking at India’s burgeoning smartphone market in Q3 2014:

The growing need for consumers flocking to the internet using mobile phones coupled with rapidly declining average selling price (ASP) of smartphones has been the key drivers of uptake of smartphones in India. The declining smartphone ASPs is as a result of proliferation of firstly not only local brands entering a price-war but also the highly price-competitive Chinese brands such as Xiaomi or Lenovo entering the Indian market. These brands are employing cost-effective distribution strategies such as online e-commerce channels to keep the costs fairly low in order to gain price competitiveness which is a boon to consumers

India smartphone market still has a room for vendors to grow exponentially as it expands deeper beyond urban India. However going forward only the vendors need to find faster and innovative ways to reach out to the end consumer. We estimate that going forward three out of four smartphones in the country will be 3G smartphones.

The idea that American icon Motorola would effectively be saved by selling into India would have seemed weird even a couple of years ago. Now it’s a major player there.


The web is dying; apps are killing it >> Wall Street Journal

Christopher Mims:

even the Web of documents and news items could go away. Facebook has announced plans to host publishers’ work within Facebook itself, leaving the Web nothing but a curiosity, a relic haunted by hobbyists.

I think the Web was a historical accident, an anomalous instance of a powerful new technology going almost directly from a publicly funded research lab to the public. It caught existing juggernauts like Microsoft flat-footed, and it led to the kind of disruption today’s most powerful tech companies would prefer to avoid.

It isn’t that today’s kings of the app world want to quash innovation, per se. It is that in the transition to a world in which services are delivered through apps, rather than the Web, we are graduating to a system that makes innovation, serendipity and experimentation that much harder for those who build things that rely on the Internet. And today, that is pretty much everyone.

Mims’s article has come in for a lot of rejoinders and rebuttals – such as this one on Quartz. But just because an app has a web view, does that mean you’re using “the web”? The navigation idea is all different. And in the end, you almost always end up still inside the app.


Twist: A ultra-portable universal adapter for your MacBook by Oneadaptr >> Kickstarter

What is Twist?

Twist is a universal adapter with four optional USB ports designed to work with the MacBook adapter. It offers much more functions than the Apple World Travel Adapter Kit and makes charging your mobile devices much easier. 

Note that this Kickstarter isn’t live yet; I was sent the link over the weekend (but tried at once to order some). I like the idea of it. I’m hoping to get some to test, but I’d have already put my money in if that hadn’t happened. I particularly like the idea of not having to scoop up multiple plugs and cables when leaving a hotel room; and the bright yellow model would be hard to miss as you check you’ve got everything.


10 cities visualized by how cleanly their streets are laid out >> Co.Exist

Artist Steve Von Worley plots cities according to their orderliness.

One can guess, without seeing them, that younger cities (such as those in the US) will score highly because they are so new, so that they existed when horse-drawn traffic already did. London and especially Tokyo look like a mess, but you also have to consider geography – particularly height and rivers.

That said, what would a city developed now look like in these terms?


Samsung hunts next hit with internet push as phones fade >> Yahoo Finance

To demonstrate the Internet of things, the company is using its Samsung Innovation Museum, a glass-walled building across from its headquarters, about 30 miles south of Seoul. The five-story, 11,000 square-meter structure looks a bit like New York’s Guggenheim museum, painted almost entirely in white with words carved into the walls: ‘smart living’ and ‘inspiring others.’

In an open space on the second floor, booths stand side by side. Each is decorated with different interiors to show off connected life in hotels, planes, shopping malls or living rooms.

In the hotel booth, you can check in by pressing a key-patterned button on an Android smartphone without having to wait in line. Upon entering the room, the window blinds automatically roll up and the television turns on.

In the booth for home technology, lights, appliances and a robot vacuum cleaner are all connected online to mobile phone app. The idea is you can flick on the lights, warm the oven or even clean your living room from your phone before you come home. Samsung has started offering a rudimentary version of the service in Korea and will expand it globally.

This might be me being stupid, but why would you want to turn the lights on before you get home? Isn’t that what we have switches for? As to turning on the TV when you go into the room, what if you don’t want the TV on and the blinds rolled up? So many assumptions and so much effort that is more easily solved through simple human action.