Header graphic for print

Steptoe Cyberblog

Episode 287: Plumbing the depths of artificial stupidity

Posted in International, Russia

 

The Foreign Agent Registration Act is having a moment – in fact its best year since 1939, as the Justice Department charges three people with spying on Twitter users for Saudi Arabia. Since they were clearly acting like spies but not stealing government secrets or company intellectual property, FARA seems to be the only law that they could be charged with violating. Nate Jones and I debate whether the Justice Department can make the charges stick.

Continue Reading

Episode 286: Sandworm and the GRU’s global intifada

Posted in Cybersecurity and Cyberwar, International, Russia

 

This episode is a wide-ranging interview with Andy Greenberg, author of Sandworm: A New Era of Cyberwar and the Hunt for the Kremlin’s Most Dangerous Hackers. The book contains plenty of original reporting, served up with journalistic flair. It digs deep into some of the most startling and destructive cyberattacks of recent years, from two dangerous attacks on Ukraine’s power grid, to the multibillion-dollar NotPetya, and then to a sophisticated but largely failed effort to bring down the Seoul Olympics and pin the blame on North Korea. Apart from sophisticated coding and irresponsibly indiscriminate targeting, all these episodes have one thing in common. They are all the work of Russia’s GRU.

Andy persuasively sets out the attribution and then asks what kind of corporate culture supports such adventurism – and whether there is a strategic vision behind the GRU’s attacks. The interview convinced me at least that the GRU is pursuing a strategy of muscular nihilism – “our system doesn’t work, but yours too is based on fragile illusions.” It’s a kind of global cyber intifada, with all the dangers and all the self-defeating tactics of the original intifadas. Don’t disagree until you’ve listened!

Continue Reading

Episode 285: ByteDance bitten by CFIUS

Posted in CFIUS, China, International

 

We open the episode with David Kris’s thoughts on the two-years-late CFIUS investigation of TikTok, its Chinese owner, ByteDance, and ByteDance’s US acquisition of the lip-syncing company Musical.ly. Our best guess is that this unprecedented reach-back investigation will end in a more or less precedented mitigation agreement.

Continue Reading

Episode 284: A throuple can keep a secret – if a couple of them are dead

Posted in China, International

 

 

You knew we’d go there. I talk about Congresswoman Katie Hill’s “throuple” pics and whether the rush to portray her as a victim of revenge porn raises questions about revenge porn laws themselves. Paul Rosenzweig, emboldened by twin tweets – from President Trump calling Never-Trumpers like him “human scum” and from Mark Hamill welcoming him to the Rebel Scum Alliance – takes issue with me.

Continue Reading

Episode 283: Is intelligence “reform” a self-licking ice cream cone and compliance trap?

Posted in Cybersecurity and Cyberwar, International, Privacy Regulation, Security Programs & Policies

 

Our interview is with Alex Joel, former Chief of the Office of Civil Liberties, Privacy, and Transparency at the Office of the Director of National Intelligence. Alex is now at the American University law school’s Tech, Law, and Security Program. We share stories about the difficulties of government startups and how the ODNI carved out a role for itself in the Intelligence Community (hint: It involved good lawyering). We dive pretty deep on recent FISA court opinions and the changes they forced in FBI procedures. In the course of that discussion, I realize that every “reform” of intelligence dreamed up by Congress in the last decade has turned out to be a self-licking compliance trap, and I take back some of my praise for the DNI’s lawyering.

Continue Reading

The California Attorney General’s CCPA Regulations: Clarity or More Questions?

Posted in Privacy Regulation

Last week, California Attorney General Xavier Becerra released much anticipated regulations implementing and interpreting the California Consumer Privacy Act (CCPA). Given the Attorney General’s responsibility for enforcement and the many open questions surrounding the CCPA, even after another round of amendments were passed last month, businesses have been eagerly waiting for the draft regulations to be released. The draft regulations both provide much needed clarity on key aspects of the CCPA but also create additional and potentially burdensome requirements for businesses under the CCPA’s jurisdiction. Before becoming final, the draft regulations will go through a notice and comment period. The CCPA goes into effect on January 1, 2020, but with the draft regulations not expected to become final until the first half of 2020, enforcement likely will not commence until July 1, 2020.

The Draft Regulations

The draft regulations comprise seven articles clarifying or adding to various existing components of the CCPA. In particular, the draft regulations:

  • Clarify and define additional terms used in the CCPA
  • Clarify and expand on consumer notice requirements, including notice at the point of collection of personal information; notice of consumers’ right to opt-out of the sale of their personal information; notice of financial incentives; and privacy policy notices
  • Clarify and expand on the processes for handling and responding to consumer requests, including a new record keeping requirement
  • Detail the processes through which a business should verify consumer requests
  • Discuss mechanisms a business must use to receive opt-in permission to sell the personal information of minors
  • Clarify and expand on the CCPA’s prohibition of discriminatory practices, including the calculation of the value of a consumer’s personal information

Key Components

For businesses hoping that the Attorney General would clarify and potentially even limit some of the CCPA’s requirements, the draft regulations are a mixed bag.

Businesses will be pleased by many components of the draft regulations. For example, the draft regulations provide businesses with a clear framework for verifying consumer requests, providing much needed clarification with respect to a key component of the CCPA. To verify a consumer request through an existing password protected account, a business may use normal authentication procedures. For verification of non-accountholders, the draft regulations require a business to verify the identity of a consumer either with a reasonable degree of certainty (by matching at least two pieces of personal information provided by a consumer with their existing records) or a reasonably high degree of certainty (by matching at least three pieces of personal information provided by the consumer with their existing records and receiving a signed declaration under penalty of perjury that the requestor is the consumer whose personal information is the subject of the request) depending on the nature of the consumer request. In addition, the draft regulations permit businesses to provide disclosures at the point of collection of personal information and of financial incentives through a link to their privacy policy under certain circumstances.

On the other hand, however, the draft regulations also add to many of the CCPA’s requirements and force businesses to undertake additional measures. For example, one of the most notable additions found in the draft regulations requires businesses wishing to offer consumers a financial incentive for their personal information to calculate the value of a consumer’s personal information and justify the financial incentive under the CCPA. In addition, the draft regulations contain detailed record keeping requirements for businesses’ handling of consumer requests.

Businesses should continue to monitor the status of the draft regulations as the notice and comment process begins. Businesses currently engaging in CCPA compliance efforts should also recognize that the draft regulations, while powerful guidance, are subject to change.

Episode 282: Has China opened a quantum hype lead over the US?

Posted in China, International

 

Our interview is with Sultan Meghji, CEO of Neocova. We cover the large Chinese investment in quantum technology and what it means for the United States. It’s possible that Chinese physicists are even better than American physicists at extracting funding from their government. Indeed, it looks as though some quantum tech, such as the use of entangled particles to identify eavesdropping, may turn out to have dubious military value. But not all. Sultan thinks the threat of special purpose quantum computing to break encryption poses a real, near-term threat to US financial institutions’ security.

Continue Reading

Episode 281: Can the European Union order Twitter to silence President Trump?

Posted in China, European Union, International, Privacy Regulation

 

Today’s episode opens with a truly disturbing bit of neocolonial judicial lawmaking from the Court of Justice of the European Union. The CJEU ruled that an Austrian court can order Facebook to take down statements about an Austrian politician. Called an “oaf” and a “fascist,” the politician more or less proved the truth of the accusations by suing to keep that and similar statements off Facebook worldwide. Trying to find allies for my proposal to adopt blocking legislation to protect the First Amendment from foreign government interference, I argue that President Trump should support such a law. After all, if he were ever to insult a European politician on Twitter, this ruling could lead to litigation that takes his Twitter account off the air. True, he could criticize the judges responsible for the judgment as “French” or “German” without upsetting CNN, but that would be cold comfort. At last, a legislative and international agenda for the Age of Trump!

Continue Reading

Episode 280: Challenging Edward Snowden

Posted in International

 

In this episode I cross swords with John Samples of the Cato Institute on Silicon Valley’s efforts to disadvantage conservative speech and what to do about it. I accuse him of Panglossian libertarianism; he challenges me to identify any way in which bringing government into the dispute will make things better. I say government is already in it, citing TikTok’s PRC-friendly “community standards” and Silicon Valley’s obeisance to European standards on hate speech and terror incitement. Disagreeing on how deep the Valley’s bias runs, we agree to put our money where our mouths are: I bet John $50 that Donald J. Trump will be suspended or banned from Twitter by the end of the year in which he leaves office.

There’s a lot of news in the Roundup. David Kris explains the background of the first CLOUD Act agreement that may be signed this year with the UK.

Nate Jones and I ask, “What is the president’s beef with CrowdStrike, anyway?” And find a certain amount of common ground on the answer.

This Week in Counterattacks in the War on Terror: David and I recount the origins and ironies of Congress’s willingness to end the NSA 215 phone surveillance program. We also take time to critique the New York Times’s wide-eyed hook-line-and-sinker ingestion of an EFF attack on the FBI’s use of National Security Letters.

Edward Snowden’s got a new book out, and the Justice Department wants to make sure he never collects his royalties. Nate explains. I’m just relieved that I will be able to read it without having to shoplift it. And it seems to be an episode for challenges, as I offer Snowden a chance to be interviewed on the podcast – anytime, anywhere, Ed!

Matthew Heiman explains the latest NotPeya travail for FedEx: A shareholder suit alleging that the company failed to disclose how much damage the malware caused to its ongoing business.

Evan Abrams gives a hint about the contents of Treasury’s 300-page opus incorporating Congress’s overhaul of CFIUS into the CFR.

I credit David for inspiring my piece questioning how long end-to-end commercial encryption is going to last, and we note that even the New York Times seems to be questioning whether Silicon Valley’s latest enthusiasm is actually good for the world.

Matthew tells us that China may have a new tool in the trade war – or at least to keep companies toeing the party line: The government is assigning social credit scores to businesses.

Finally, Matthew outlines France’s OG take on international law and cyber conflict. France opens up some distance between its views and those of the United States, but everyone will get a chance to talk at even greater length on the topic, as the UN gears up two different bodies to engage in yet another round of cyber-norm-building.


 

Download the 280th Episode (mp3).

You can subscribe to The Cyberlaw Podcast using iTunes, Google Play, Spotify, Pocket Casts, or our RSS feed!

As always, The Cyberlaw Podcast is open to feedback. Be sure to engage with @stewartbaker on Twitter. Send your questions, comments, and suggestions for topics or interviewees to CyberlawPodcast@steptoe.com. Remember: If your suggested guest appears on the show, we will send you a highly coveted Cyberlaw Podcast mug!

 

The views expressed in this podcast are those of the speakers and do not reflect the opinions of the firm.

Episode 279: Blockchain Takes over the Podcast

Posted in Blockchain

 

In our 279th episode of The Cyberlaw Podcast, the Blockchain Group takes over the podcast. Host Alan Cohn is joined by Gary Goldsholle, Will Turner, and Evan Abrams to discuss:

  • The SEC has issued its second token-related no-action letter to Pocketful of Quarters, Inc., giving more guidance and opening a number of issues.
  • The SEC has brought a double-headed complaint against ICOBOX, an entity that both conducted an initial coin offering (ICO) and facilitated ICOs for others.
  • The US has brought the Financial Action Task Force along on its travel rule adventure.
  • The SEC and FINRA have custody guidance.
  • FinCEN has guidance on convertible virtual currencies.
  • The SEC has brought a complaint against FantasyCoin for what amounts to sheer, brazen fraud.
  • The SEC settlement in SimplyVital Health, with Steptoe as counsel, shows the SEC’s willingness to work with companies that voluntarily remediate errors.

 

Download the 279th Episode (mp3).

You can subscribe to The Cyberlaw Podcast using iTunes, Google Play, Spotify, Pocket Casts, or our RSS feed!

As always, The Cyberlaw Podcast is open to feedback. Be sure to engage with @stewartbaker on Twitter. Send your questions, comments, and suggestions for topics or interviewees to CyberlawPodcast@steptoe.com. Remember: If your suggested guest appears on the show, we will send you a highly coveted Cyberlaw Podcast mug!

 

The views expressed in this podcast are those of the speakers and do not reflect the opinions of the firm.