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MONDAY, JULY 11, 2016
MAJOR U.S.-EU DATA DEAL NEARS FINISH LINE
A majority of European Union member states endorsed last Friday a major data-sharing pact with the United States, the so-called Privacy Shield, clearing the way for its formal adoption early this week. The international agreement will replace Safe Harbor, a 15-year old accord that was invalidated last October by the European Court of Justice after the Snowden revelations.

Safe Harbor was used by thousands of companies, like Google, Facebook, and Mastercard, to meet Europe’s stricter standards for protecting citizens’ information. Industry analysts expect Privacy Shield to facilitate over $250 billion dollars of transatlantic trade in digital services each year. The United States will create an ombudsman within the State Department to field complaints from EU citizens about spying. However, the new agreement is widely expected to face legal challenges from privacy advocates. (Reuters, The Hill, EU Observer)
Bitcoin: The reward for miners of the virtual currency was halved on Saturday as part of a long-planned effort to control bitcoin inflation. Instead of 25 bitcoins up for grabs every 10 minutes, worth around $16,000, there is now just 12.5. The next such reduction is scheduled for 2020. (Reuters)

Wendy’s: The fast food chain said some of its customers' payment card information was stolen in a cyberattack earlier this year that affected more than 1,000 of its U.S. restaurants. (Reuters)

Mac Backdoors: Three newly discovered pieces of malware can allow hackers to access web cameras, password keychains, and other precious resources on infected machines. (Ars Technica)

Lexicon: The writers at Wired explain the difference between a computer network exploitation (CNE) like Flame and Regin, and a computer network attack (CNA) like Stuxnet. (Wired)
Warrantless Surveillance: U.S. government lawyers defended the legality of an NSA surveillance program challenged as unconstitutional in an Oregon court by a Somali-born U.S. citizen. Mohamed Mohamud was convicted in 2013 of attempting to detonate a bomb at a Christmas tree-lighting ceremony. (Reuters)

KYAnonymous:” Federal prosecutors in Kentucky indicted Deric Lostutter under the Computer Fraud and Abuse Act. The online activist helped spread tweets, photos, and videos on social media that helped draw attention to a 2012 rape case in Steubenville, Ohio. (Ars Technica)

FOIA: The U.S. Court of Appeals for the D.C. Circuit held in a decision that work email stored privately is still subject to Freedom of Information Act requests. The whole point of FOIA, the court said, is to provide transparency on public officials' behavior while in office. The ruling could allow greater scrutiny of Hillary Clinton’s online records during her time as secretary of state, legal analysts say. (WaPo)
Banking: The U.S. Federal Reserve is reportedly leading other agencies in crafting rules requiring banks to adopt baseline safeguards to shield themselves from cyberattacks. (Bloomberg)

Drones: Air-safety authorities on both sides of the Atlantic have acknowledged that the traditional rule-making process is too slow to cope with the rapidly expanding applications of drones. (WSJ)
Facebook: The social media company is set to begin testing “secret conversations” inside its Messenger service, a feature that offers end-to-end encryption on some messages to be read only on the two mobile devices with which users are communicating. (NYT)

Google: The search giant said that it is rolling out a new form of encryption in its Chrome browser designed to resist cyberattacks that might take advantage of a future quantum computer with super codebreaking capabilities. (Wired)

Uber: The ride-hailing service is beginning to track driver behavior. The Uber app will score drivers on how well they brake and accelerate, whether they use their phone while driving and drive within the speed limit, and more. (WaPo)
UN: Members of the UN Human Rights Council approved a nonbinding resolution that condemns internet shutdowns and “human rights violations committed against persons for exercising their human rights and fundamental freedoms on the internet.” (Slate)

Southeast Asia: More than half of workers in Cambodia, Indonesia, the Philippines, Thailand and Vietnam are at high risk of losing their jobs to automation in the next two decades, an International Labour Organization study found, with those in the garments industry particularly vulnerable. (Reuters)

Must Reads
Big Challenges for Self-Driving Cars: “The much harder, and still mainly unsolved, autonomous driving problem involves not highways but cities, with all their chaos and complexity. Self-driving cars still struggle with simple potholes; no one has come even close to demonstrating a completely driverless car that could do the work of a Manhattan taxi driver on a rainy day. The sad reality of autonomous car technology is that the easy parts of have yet to be proven safe, and the hard parts have yet to be proven possible. We’re nowhere close to Silicon Valley’s automotive ‘Tomorrowland,’” writes Lee Gomes in the New York Times.

NATO Cyberspace Capability: “This monograph examines the past and current state of cyberspace defense efforts in NATO to assess the appropriateness and sufficiency to address anticipated threats to member countries, including the United States. The analysis focuses on the recent history of cyberspace defense efforts in NATO and how changes in strategy and policy of NATO writ large embrace the emerging nature of cyberspace for military forces as well as other elements of power,” writes Jeffrey Caton for the Strategic Studies Institute.

‘Zero Days’ Is Chilling Account of Cyberwarfare: “[Alex] Gibney’s film cuts across subjects and genres with its own fluid, quicksilver intelligence. It is by turns a coolly riveting geopolitical thriller, a potted history of Iran’s nuclear program, an alphabet soup of government acronyms, a detailed primer on exactly how malware operates, and a fascinating experiment in cinematic form that may test the limits of some viewers’ tolerance for lines of impenetrable code flooding a movie screen,” writes Justin Chang in the LA Times.
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EDITOR-IN-CHIEF, KAREN J. GREENBERG, DIRECTOR, CENTER ON NATIONAL SECURITY, FORDHAM LAW SCHOOL
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