Monthly Archives: February 2017

Margaret Sullivan receives First Amendment Award – The Boston … – The Boston Globe

Posted: February 25, 2017 at 2:56 pm

From left: Tom Fiedler, Donna Green, Margaret Sullivan, Judith Meyer, and Michael Donoghue at the New England First Amendment Coalitions annual awards luncheon on Friday.

The New England First Amendment Coalition presented its top honor to Margaret Sullivan, the media columnist for The Washington Post.

Sullivan accepted the Stephen Hamblett First Amendment Award on Friday before a large crowd of journalists, lawyers, educators, students, and media executives at NEFACs annual awards luncheon at the Marriott Long Wharf.

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The award is named after the late publisher of the Providence Journal who passed away in 2005, and past recipients have included US Senator Patrick Leahy; former federal judge Nancy Gertner; former Globe editor Marty Baron; James Risen and Anthony Lewis of The New York Times; and GlobalPost founder Philip Balboni.

The New England First Amendment Coalition also presented Judith Meyer, executive editor of the Sun Journal of Lewiston, Maine, with the Michael Donoghue Freedom of Information Award, and Donna Green of New Hampshire received the Antonia Orfield Citizenship Award.

Among those in attendance at the luncheon were Justin Silverman, executive director of the New England First Amendment Coalition; Dan Kennedy of Northeastern University; Michael Rezendes, Larry Edelman, Emily Procknal, Jasmine Wu, Nick Osborne, and Linda Pizzuti Henry of the Globe; Mike Beaudet of WCVB-TV; Tom Fiedler, dean of the College of Communication at Boston University; and WBZ political analyst Jon Keller, who served as emcee.

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Trump Praises First Amendment, Calls for Media Suppression – New York Magazine

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A man who loves free speech more than you do. Photo: Nicholas Kamm/AFP/Getty Images

On Friday, president Trump said that the media shouldnt be allowed to cite anonymous sources because Americas most respected newspapers routinely make up such sources, and publish stories of their own invention. He reiterated his contention that fake news outlets like the New York Times, NBC News, ABC News, CBS, and CNN are the enemy of the people, and suggested that Americans should not protest their government in between elections.

The president also said, I love the First Amendment nobody loves it more than me.

Trump and his administration have been waging a war on objective reality and those tasked with describing it from the moment he was sworn in. In his first appearance as White House press secretary, Sean Spicer demanded that reporters believe the presidents estimate of the size of his inaugural crowd over their own lying eyes. As Trumps tumultuous (and not terribly productive) first month in office progressed, he grew ever more preoccupied with discrediting the Fourth Estate.

On Thursday, at the Conservative Political Action Conference, Steve Bannon and Reince Preibus instructed the audience not to believe any negative news they read about the administration, over and over again. By the end of their conversation, the word media had been spoken 19 times, and the phrase opposition party, Bannons favorite synonym for the mainstream press, six times.

It wasnt terribly surprising, then, that the president opened his remarks to CPAC with a long diatribe against the media. But Trumps speech did represent a significant escalation in his crusade against independent journalism.

Previously, the president had criticized the press for printing illegal leaks from anonymous government officials and suggested that those officials have often shared false information. But hed never before claimed that major newspapers were fabricating sources out of whole cloth and presenting works of fictions as reportage.

The leaks are real. Youre the one that wrote about them and reported them, I mean, the leaks are real, Trump told reporters at a press conference last Thursday. You know what they said, you saw it and the leaks are absolutely real.

As of Friday morning, the president still maintained that the anonymous officials quoted in the media were genuine members of the government.

But hours later Trump suggested that reporters cant find actual government officials to leak to them, and thus are forced to invent them.

A few days ago I called the fake news the enemy of the people. And they are. They are the enemy of the people, Trump said. Because they have no sources, they just make em up when there are none Im against the people that make up stories and make up sources.

The people that make up stories ostensibly includes all of the major outlets listed in this recent tweet.

Late Thursday night, the Trump administration admitted that it had encouraged the FBI to anonymously leak exculpating information about the presidents relationship with Russia. On Friday morning, Trump declared, They shouldnt be allowed to use sources unless they use somebodys name They should put the name of the person. You will see stories dry up like youve never seen before.

Then, after briefly praising the First Amendment, the president said that media doesnt represent the people, and were going to do something about it.

Trumps only substantive argument for why his audience shouldnt trust the media was that most of these outlets pre-election polling suggested that he would not win. He then credited the Los Angeles Times poll for its singular accuracy. That poll predicted that Trump would win the popular vote, making it one of the least accurate national polls of the 2016 cycle.

But in the presidents telling, fake news outlets and skewed pollsters arent the only ones who have been abusing their First Amendment rights the other enemies of the American people are the American people who didnt vote for Donald Trump.

Referring to the town hall protests in support of Obamacare, Trump said, The people that youre watching, theyre not you. Theyre largely many of them are the side that lost, you know they lost the election. Its like, how many elections do we have to have?

The election is over. The worlds biggest fan of the First Amendment won. So, if you voted against him, its time to shut up.

This Obscure News Story, Which Should Be Huge, Shows How Trump Gets Away With Corruption

Connie Britton Leaves Nashville Fans With the Cold Comfort of a Heartfelt Coda After That Momentous Episode

Trumps Counterterrorism Adviser Sebastian Gorka Has Links to Anti-Semitic Groups

The boxing legends family is considering a lawsuit over the incident.

The California Republican thinks Attorney General Jeff Sessions should recuse himself.

As conservatism faces an existential crisis, a tour through CPACs after parties proves educational.

A small dip from 2015, but the third-straight yearly decline under Vision Zero.

Former Kentucky governor Steve Beshear is an out-of-work centrist representing a party thats energized on the left.

A leaked document shows House Republicans mulling controversial ideas like ending Medicaid as we know it and a new tax on employer-provided insurance.

It says citizenship in the Muslim-majority countries included in the ban is an unlikely indicator of a terrorism threat.

Dont feel bad for Paul Ryan, hell end up getting a big tax cut for the rich in the end.

Its been a hot month, with nearly 4,500 record highs set, compared to 29 record lows.

The White House denied any links to President Trumps rhetoric.

Earlier in the day, Trump explained that the media isnt the enemy of the people but the fake news media is.

Kevin Hassett once co-authored a book imploring investors to enter the stock market just before the dot-com bubble burst.

Is the mainstream right ready to replace its traditional values with pure nationalism?

It looked like Attorney General Jeff Sessionss warm-up act in loosening protections for all minorities.

The president told CPAC the media shouldnt be allowed to cite anonymous sources, and suggested people shouldnt protest after an election.

We will not answer to donors, lobbyists, or special interests now heres another story about me answering to special interests.

This may be the lowlight of a week that also saw him make an unhinged phone call to a critic that got recorded and published.

This isnt the first time the president has appeared to advocate for nuclear proliferation.

The White House asked the FBI to leak exculpating details about Trumps ties with Russia. It leaked the details of that conversation instead.

The Republican Partys best chance to repeal Obamacare is already gone.

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First Amendment Victory In Portland: Judge Tosses First Subpoena Of Reporter By Trump Administration – Patch.com

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Patch.com
First Amendment Victory In Portland: Judge Tosses First Subpoena Of Reporter By Trump Administration
Patch.com
In a significant victory for the First Amendment, a federal judge in Portland told prosecutors that they could not force a reporter to testify in an ongoing criminal trial. The subpoena had been the first issued to a reporter by the Trump Justice ...

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Amazon Says First Amendment Protects Alexa Data – Entrepreneur

Posted: at 2:56 pm

Prosecutors in an Arkansas murder trial claim that anAmazon Echocould hold data crucial to the case, but Amazon says that data is protected by the First Amendment and is refusing to give it up.

The case involves a Bentonville, Ark., man accused of first-degree murder. It received national attention in December when authorities issued a warrant for data stored on the defendant's Echo, powered by Amazon's Alexa voice assistant. In a lengthycourt filinglast week, Amazon said that Echo voice commands as well as Alexa data stored on the company's servers cannot be subject to a search warrant, Forbesreports.

In the filing, Amazon explains that it records Echo users' voice commands and a transcript of Alexa's responses. "Both types of information are protected speech under the First Amendment," Amazon's lawyers write.

Because of that protection, the government must show a compelling need for the data. It failed to do so in this case, Amazon writes, arguing that the judge should quash the warrant. "Such government demands inevitably chill users from exercising their First Amendment rights to seek and receive information and expressive content in the privacy of their own home, conduct which lies at the core of the Constitution," the company says.

An Amazon spokespersontold PCMag in Decemberthat it will not release customer information without a "valid and binding legal demand properly served on us."

As Amazon wrangles with the government over Alexa in court, the voice service's features continue to grow, withWiredreporting this week that more than 10,000 Alexa skills are now available, just a year and a half after Amazon opened the platform to third-party developers.Alexa skillsallow users to tap a variety of external services using voice commands, from controllingsmart light bulbsto accessing smartphone notifications.

Tom is PCMag's San Francisco-based news reporter.

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Crowd attends event celebrating the First Amendment – Southwest Virginia Today

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Organizers of a Celebration of the First Amendment Saturday afternoon at Floyds Eco-System had to set up extra chairs for the additional attendees who heard speeches, panel discussions, songs and poems about the Constitutional amendment that protects freedom of speech, the press and other such freedoms.

Designed to speak out against what many see as assaults on such freedoms, the crowd applauded and cheered when speakers discussed the right to protest against the government and freely express opinions. Floyd Countys Commonwealths Attorney Eric Branscom kicked off the speeches with a history lesson that talked about a President who wanted to suppress freedom of speech and the press and jail those who did not agree and was backed by the political party that controlled Congress.

Turned out he was talking about President John Adams in 1794 and control of the Federalist Party over Congress then. Branscom said it took Virginians Thomas Jefferson and James Madison, who followed Adams, to implement a version of states rights and pardons to get those who disagreed with Adams out of jail and protest the then-new First Amendment.

Even so, Branscom said, it would take 165 years before the U.S. Supreme Court would fully overturn the legal challenges from the 1700s in the Times v. Sullivan case that reaffirmed freedom of the press and the other freedoms of the amendment.

Radford University media professor, author and former newspaperman Bill Kovarik introduced himself to the audience as an enemy of the people, citing a term used by current President Donald Trump, and then brought applause and cheers in a speech where he called for strong opposition and protest against the head of state.

We are friends of the people, Kovarik said, adding that the media must questions those elected to office locally, statewide and nationally.

I work in the tradition of Ben Franklin, Joseph Pulitzer, Ernie Pyle and Woodward and Bernstein, Kovarok said.

The press is not perfect, he said. Were watchdogs.

He said that being called an enemy of the people is dangerous speech.

The press is the Constitutions best friend, he added.

A panel on free speech included Branscom, Floyd County Sheriff Brian Craig, activist Tree Gigante and attorney and columnist Alan Graf, who answered questions from the floor and talked about protest.

Craig praised organizers of events like the Womens March in January for working with his department.

We know the people involved in these events, and we work with them, he said.

Graf said that he, as an attorney, has represented people charged with crimes because they protested legally.

When I came to Floyd, I told the sheriff that I also had sued the police over handling of protests, he said.

As a living, Craig answered with a laugh.

Gigante said protests in many cases are not only a right but should also be considered a duty.

Sometimes, she added, it may be necessary to violate the law to carry out that right.

Brancom said law enforcement must establish where the line is drawn between peaceful and violent protest.

What are the boundaries? Sometimes the limits must be it comes back to pushing against the government, he said.

A panel on freedom of religion consisted of Graf, who told the audience Im Jewish and I come from a holocaust family, Imam Abdullah Ferrom of Roanoke Mosque and Quaker Kim ODonnell.

ODonnell said her religion considers relationship with God a deeply personal thing. Our right to practice is a something we strive to protest.

Ferrom said Muslims work to peacefully co-exist with other religions but face a lot of distrust from others who cite their religion as justification for violence against his beliefs.

He cited threats of having a Muslim registry required in America as a threat.

If there such a thing as a Muslim registry, I will register as a Muslim, Graf said, which brought applause and comments of so will I from members of the audience.

The event also awarded youth and adults for essays, poems and songs about the First Amendments and threats against the freedoms it is designed to protect.

First place winners who were present read their essays or poems to the audience and sang their songs.

Michael Kovick closed the event with his second-place winning song.

Linville M. Meadows, Second Place

Will Bason, Honorable Mention

Andrew Finn, Honorable Mention

Alex Hicks, Honorable Mention

Leah Pierce, Honorable Mention

Kaci Marshall, Honorable Mention

Greg Arens, Honorable Mention

Jillian Greenhalgh, First

Cameron Callahan, Third Place

Julian Hensley-Buzzell, Honorable Mention

Isaac Byrd, Honorable Mention

Stella Sessions, Honorable Mention

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Canadian EDC’s Blockchain Crowdfund Scores $0.5m In Equibits Cryptocurrency Sales – Forbes

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Forbes
Canadian EDC's Blockchain Crowdfund Scores $0.5m In Equibits Cryptocurrency Sales
Forbes
Equibit Development Corporation (EDC), a Canadian-based startup behind the Equibit blockchain and applications that is building a decentralized securities platform, has sold over US$500,000 of equibits since launching its crypto coin offering at the ...

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PascalCoin Is A Cryptocurrency With a Deletable Blockchain – The Merkle

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Every now and then, cryptocurrency developers come up with a rather intriguing concept. PascalCoin is a great example of one such project, as this cryptocurrency offers a deletable blockchain, effectively solving one of the data storage problems bitcoin has been facing for several years now. It is time we take a closer look at this altcoin, as it shows a lot of promise.

It is not difficult to see why PascalCoin has been seeing a boost in popularity as of late. Although the project was announced in August of 2016, it looks like its potential is finally coming to fruition After all, PascalCoin is the first cryptocurrency that does not require a blockchain of historical operations to be downloaded by the end user. Despite this odd function, there is no way to double-spend ones coins.

Rather than using the blockchain as found in the bitcoin ecosystem, PascalCoin makes use of a technology called SafeBox. This hash mechanism is modified every time a new block in generated by the PascalCoin blockchain. SafeBox is updated with the new block operations, after which it generates a new Safebox hash. Even if the blockchain up to that point were to be deleted, there is still a proof of all transactions and wallet balances.

Controlling the Safebox hash is of the utmost priority for the PascalCoin team. A total of five new accounts arecreated per network block, which effectively helps to keep the hash size as small as possible. For those who want to find out more, it is well worth checking out the projects white paper on GitHub. By removing the need to download and store an entire blockchain, the PascalCoin developers could be onto something.

Other than the SafeBox feature, PascalCoin focuses on being a cryptocurrency that can appeal to the masses. It offers quite a few similarities to how bank accounts work, with easy to remember account names instead of wallet addresses. This is another intriguing development that makes cryptocurrency more approachable by the average person on the street. It remains to be seen whether or not PascalCoin can achieve its goal, though.

Looking at the PascalCoin trading charts, it is evident this cryptocurrency has become the new hot commodity among altcoin traders. That being said, the fact its blockchain can be deleted and its convenient wallet addresses are the only proper features for the time being. There are no merchants or platforms accepting PascalCoin as a payment option, indicating this altcoin still has a long way to go before it can rival bitcoin.

One final thing that sets apart PascalCoin fro other altcoins is how it seemingly favors mining with an NVIDIA GPU. Most altcoins use algorithms which make using an AMD graphics card far more convenient. PascalCoin is doing things a bit differently, although a new miner for AMD cards was released not too long ago. An intriguing take on things, although it remains to be seen whether or not PascalCoin will still be relevant a few months from now.

If you liked this article, follow us on Twitter @themerklenews and make sure to subscribe to our newsletter to receive the latest bitcoin, cryptocurrency, and technology news.

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Cloudflare’s Cloudbleed Has Cryptocurrency Platforms Taking Precautionary Measures – newsBTC

Posted: at 2:54 pm

The recent Cloudbleed memory leak issue has forced cryptocurrency exchanges to issue safety instructions to its users. Read more...

Cybersecurity is one of the major concerns of the cryptocurrency industry. As the cyberthreats increase, online platform operators are flocking to performance and security solutions providers like Cloudflare to ensure that their websites are protected from DDOS and other attacks. But what happens when something goes wrong with the service that is meant to protect digital property worth millions of dollars?

A recent issue with Cloudflares edge servers created a sense of panic among many cryptocurrency exchange operators. Some of them have asked their users to take precautionary measures by changing their login credentials and resetting two-factor authentication for their accounts.Cloudflare reported the recent memory leak issue, known as Cloudbleed in its recent blog post.

According to the blog, Cloudflare was informed of the issue by Tavis Ormandy from Googles Project Zero. Ormandy reported the security problem with Cloudflares edge servers, which he discovered while investigating corrupted web pages. The company offering more details about the incident said,

our edge servers were running past the end of a buffer and returning memory that contained private information such as HTTP cookies, authentication tokens, HTTP POST bodies, and other sensitive data. And some of that data had been cached by search engines.

However, Cloudflare has clarified that the customers SSL private keys were not compromised by the bug as the service always terminates SSL connections through an isolated NGINX instance. The memory leaked by the Cloudbleed bug could have contained private information which was cached by search engines. The issue seems to have gone unnoticed for almost a week, affecting 1 in every 3.3 million HTTP requests made through Cloudflare.

BTC-e, the Bitcoin exchange and betting platform has suggested a series of measures to its users to prevent any undesired aftermath incidents. The advisory issued by BTC-e is as follows,

1) You should change your account password before 16:00 (GMT +3) on 26.02.2017. If you fail to do so, your password will be reset automatically. If you enabled 2-factor authentication between the 12th and the 20th February 2017, we strongly recommend you disable and re-enable it again.

2) You should re-create your API keys (info, trade, btc-e code withdraw & coupon) before 16:00 (GMT +3) on 26.02.2017. If you fail to do so, all your keys will be blocked automatically.

3) Cloudflare explicitly mentions that SSL certificates were not leaked. However, we will change SSL certificates for btc-e.com and btc-e.nz within the next several days to provide additional security.

It is always a good idea for users to review and reset their credentials at regular intervals. Irrespective of whether one is using BTC-e, its APIs or not, they should try to follow the suggestions as applicable to ensure that they are not affected on a later date.

READ MORE:Is Bitcoin Industry Too Dependant on CloudFlare?

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Bitcoin is devaluing China’s currency but the country won’t do much about it – Salon

Posted: at 2:54 pm

Its been a volatile year so far for bitcoin. The value of the cryptocurrency jumped 20 percent in the first trading week of the year to a record high of $1,161 per virtual coin. Its value then plunged by more than a third over seven days, to $750, before climbing back up to top $1,200 on Friday.

Traders said the main cause of this roller coaster ride has been China, where the countrys central bank put domestic bitcoin exchanges on notice early last month that they needed to do more to tighten foreign exchange controls. China has been trying to curb the practice of using bitcoin to circumvent rules limiting the amount of money Chinese mainlanders can send abroad, which is currently capped at $50,000 a year.

This capital flight has caused a drop in the value of the renminbi and Chinese regulators have connected the dots between last years drop in the value of the countrys currency and a corresponding rise in the value of bitcoin. Bitcoin bought in renminbi accounted for a staggering 98 percent of all bitcoin trading activity in the last six months of 2016, according to bitcoinity.org.

Eager to convert the Chinese currency into a more stable global currency and stash that wealth abroad, many Chinese mainlanders have been buying bitcoin locally in renminbi and then, using bitcoins blockchain technology, which allows users to safely transmit bitcoin through the Internet, theyre sending bitcoin to other countries where recipients (family members, friends or other contacts) convert bitcoin back into a local currency which can then be used to make investments outside of the country.

But why isnt China simply clamping down hard on the whole bitcoin thing?

You have a government that likes to retain control, and bitcoin is a decentralized currency outside of the control of any nation-state, Christopher Burniske, blockchain products analyst at New York-based ARK Investment Management, told Salon. So that right there is a bit threatening, but at the same time China is working to be recognized as a global leader in technology and economics and the political fallout from outright banning or confiscating bitcoin is arguably too great.

Burniske said China may have other motives for not taking a hardline stance, such as working to develop its own form of digital currency, informally known as ChinaCoin. Early last year, the countrys central banksaid it was mulling a rollout of its own digital currency.

Theamount of bitcoin bought using the Chinese yuan has plummeted to less than 5 percent this week, thank to efforts by domestic exchanges to cool bitcoin trading activity with a one-month ban on making withdrawals and per-transaction fees that went into effect this month. Traders expect Chinas central bank to eventually impose regulations on local bitcoin trading, too, which helped to push the price of bitcoin down. Currently the market is unregulated in China, but traditional financial institutions are barred from dealing in bitcoin.

With so much less bitcoin trading activity from mainland China, why has the value of the currency bounced back to a record high?

Some of it has to do with traders betting the U.S. Securities and Exchange Commission will approve at least one of three proposed exchange-traded funds based on bitcoin trading before a March 11 deadline. Though its uncertain whetherU.S. regulators would actually allow trading securities based on the fluctuation in the value of bitcoin, some less cautious investors are buying bitcoin hoping the value will jump after an announcement is made. The other reason is that bitcoin has become a alternative safe-harbor investment, like gold or U.S. Treasury bonds. U.S. inflation is expected to rise this year and bitcoin is being used by some to hedge against a drop in the value of the U.S. dollar. Global political uncertainty may also be playing a role.

Whatever the case may be, bitcoins quick rebound from the China scare could be a sign that the cryptocurrency is becoming more mainstream, according to Burniske, being used more frequently to buy goods and services from merchants that accept it.

This is a sign of global traction for bitcoin, he said. You now have more bitcoin being transacted as a means of exchange than traded as astore of value. Im seeing this as a positive indication of bitcoins globally distributed support, that its not as reliant on China as many people believed it was just a few months ago.

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Spooked by Cyber Extortion Spike, Businesses Stockpile Bitcoin – NewsFactor Network

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U.S. corporations that have long resisted bending to the demands of computer hackers who take their networks hostage are increasingly stockpiling bitcoin, the digital currency, so that they can quickly meet ransom demands rather than lose valuable corporate data.

The companies are responding to cybersecurity experts who recently have changed their advice on how to deal with the growing problem of extortionists taking control of the computers.

"It's a moral dilemma. If you pay, you are helping the bad guys," said Paula Long, chief executive of DataGravity, a Nashua, N.H., company that helps clients secure corporate data. But, she added, "You can't go to the moral high ground and put your company at risk."

"A lot of companies are doing that as part of their incident response planning," said Chris Pogue, chief information security officer at Nuix, a company that provides information management technologies. "They are setting up bitcoin wallets."

Pogue said he believed thousands of U.S. companies had prepared strategies for dealing with hacker extortion demands, and numerous law firms have stepped in to facilitate negotiations with hackers, many of whom operate from the other side of the globe.

Symantec, a Mountain View, Calif., company that makes security and storage software, estimates that ransom demands to companies average between $10,000 and $75,000 for hackers to provide keys to decrypt frozen networks. Individuals whose computers get hit pay as little as $100 to $300 to unlock their encrypted files.

Companies that analyze cyber threats say the use of ransomware has exploded, and payments have soared. Recorded Future, a Somerville, Mass., threat intelligence firm, says ransom payments skyrocketed 4,000 percent last year, reaching $1 billion. Another firm, Kaspersky Lab, estimates that a new business is attacked with ransomware every 40 seconds.

"If you're hit by ransomware today, you have only two options: You either pay the criminals or you lose your data," said Raj Samani, chief technical officer at Intel Security for Europe, the Middle East and Africa. "We underestimated the scale of the issue."

Hackers often send out email with tainted hyperlinks to broad targets, say, an entire company. All it takes is one computer user in a company to click on the infected link to allow hackers to get a foothold in the broader network, leading to hostile encryption.

"At least one employee will click on anything," said Robert Gibbons, chief technology officer at Datto, a Connecticut company that offers digital disaster recovery services.

Law enforcement counsels U.S. businesses not to succumb to ransom demands, urging them to keep backup copies of their data in case of hostile encryption.

"The official FBI policy is that you shouldn't pay the ransom," said Leo Taddeo, chief security officer for Crypt-zone, a Waltham, Mass., company that provides network security. Until 2015, Taddeo ran the cyber division of the FBI's New York City office.

But practical considerations increasingly are dictating a different approach. "It's an option to pay the ransom to get back up and running. Sometimes it's the only option," Taddeo said.

"But it has downsides," he added. "Paying ransom just invites the next attack."

Moreover, 1 in 4 companies that pay ransoms never get their files restored, Gibbons said.

The idea of rewarding extortionists with payment makes some technologists see red.

"That makes me super mad," said Lior Div, chief executive of Cybereason, a Boston-area cybersecurity company. "There are things that are unacceptable, and we need to fight them."

Div and his company have done something about the extortion epidemic. They built a product called RansomFree that claims to detect 99 percent of all ransomware strains.

So far, the free software has been downloaded 125,000 times, the company says.

As extortionists get more sophisticated, researchers say, they are modifying their malicious code, their infection strategies and the way they collect payments.

Once they weasel their way into your network, they now take a look around.

"They'll actually explore your system to see how much money they can squeeze from you," said Andrei Barysevich, director of advanced collection at Recorded Future.

And they won't offer any sympathy, no matter how valuable the encrypted data, even if lives are at stake, say, in a health care network. They may even say they are doing nothing evil.

"They actually think they are on the moral high ground. They think the companies should have paid more for security," said Barysevich, who spoke at a presentation this week at the annual RSA cybersecurity conference in San Francisco, which bills itself as the world's leading gathering of cybersecurity specialists.

One of the reasons midsize and large companies are storing bitcoin for emergency use is that extortionists, once they succeed at penetrating a system, commonly give a deadline for payment before destroying data. But victims can't rush out and buy bitcoin in a day or two.

"It takes at times a week for (brokers) to process you," Barysevich said.

Setting up the wallet ahead of time, Pogue said, allows businesses an option that is quick, although perhaps repugnant.

"If they need to go to it, they are not spinning their wheels standing up a bitcoin wallet," Pogue said.

2017 The Star Democrat under contract with NewsEdge/Acquire Media. All rights reserved.

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