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2018年10月3日 星期三

Hillicon Valley: Facebook briefing lawmakers on massive breach | Industry sues California over net neutrality law | New insight into North Korea's bank hacks | US tests presidential alert system

 
 
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Welcome to Hillicon Valley, The Hill's newsletter detailing all you need to know about the tech and cyber news from Capitol Hill to Silicon Valley.

Welcome! Follow the cyber team, Olivia Beavers (@olivia_beavers) and Jacqueline Thomsen (@jacq_thomsen), and the tech team, Harper Neidig (@hneidig) and Ali Breland (@alibreland). And CLICK HERE to subscribe to our newsletter.

 

 

FACEBOOK HAS BROOM AND DUSTPAN IN HAND: Facebook is briefing lawmakers over the latest massive cybersecurity breach, the company confirmed Wednesday.

Facebook, which briefed the Department of Homeland Security and FBI last week, is slated to meet with more lawmakers this week, including members of the Senate Intelligence Committee, according to The Wall Street Journal, which first reported the meetings.

The extent of the details they shared with lawmakers and federal agencies is unclear. While Facebook has released some information about the hack, the suspected perpetrators have not been disclosed.

The company has said that it is still in the early stages of its investigation into the breach.

The move appears to be part of the Silicon Valley giant's efforts to try to get ahead of a breach that could hurt the company and result in undesirable regulations. Lawmakers including Sens. Mark Warner (D-Va.) and Richard Blumenthal (D-Conn.) have used the hack to bolster their calls for regulations intended to reign in technology companies. Read more here.

 

What we're waiting for: Facebook has released some public details so far, but there's a few things we're still curious to see. A geographic breakdown of the 50 million affected could shed light on potential targets or motivations of the hackers. The Irish Data Protection Commission revealed that only about 5 million of the accounts were in Europe, but the remaining 45 million is still unclear.  

 

SUE ME!... OKAY: Internet, cable and wireless providers are suing California over its tough new net neutrality law following a separate lawsuit from the Justice Department seeking to block the state from implementing such rules.

Four industry groups representing internet providers such as AT&T and Comcast filed a lawsuit on Wednesday in federal court in California that accuses lawmakers there of "unconstitutional state regulation."

USTelecom, the American Cable Association, the wireless group CTIA and NCTA - The Internet & Television Association all argue that the state's attempt to replace recently repealed federal rules could hurt consumers.

"We oppose California's action to regulate internet access because it threatens to negatively affect services for millions of consumers and harm new investment and economic growth," the four groups said in a joint statement.

Read more here.

Also, read our story on the coming court battle over the state laws.

 

NAUGHTY, NAUGHTY NORTH KOREA: North Korea has stolen hundreds of millions of dollars globally since 2014 by hacking banks' computer systems, according to a new report from a U.S. security firm.

Fire Eye's report released Wednesday found that a group backed by Pyongyang was responsible for operations across more than 16 organizations and at least 11 countries.

According to the firm, the group remains "an active global threat."

The Department of Homeland Security (DHS) warned Tuesday that North Korean hackers were using malware to withdraw cash from Asian and African banks.

DHS reported that Hidden Cobra, the federal government's term for the North Korean hacking group, had taken tens of millions of dollars from ATMs over the last two years. Read more here.

 

THE WATER IS WARM BUT IT'S SENDING ME SHIVERS: A coalition of child and consumer advocacy groups on Wednesday accused Facebook of illegally collecting data on children with its new Messenger Kids app.

In a complaint filed with the Federal Trade Commission (FTC), the Campaign for a Commercial-Free Childhood (CCFC) and other organizations argued that the service's disclosures about its privacy practices are overly vague, allowing Facebook to share children's data with third parties.

The groups allege that Messenger Kids is in violation of the Children's Online Privacy Protection Act because it doesn't ensure that the adult giving a child permission to use the app is actually the user's guardian.

Read more here.

 

BLOWING UP MY E-COMMERCE SPOT: Ebay on Wednesday publicly accused Amazon of trying to poach its sellers using the online auction company's own messaging system.

"We have uncovered an unlawful and troubling scheme on the part of Amazon to solicit eBay sellers to move to Amazon's platform," Ebay said in a statement to The Wall Street Journal.

It sent a cease and desist letter to Amazon on Monday.

"We have demanded that Amazon end its unlawful activity and we will take the appropriate steps, as needed, to protect eBay," the company said in a statement.

According to The Wall Street Journal, which first reported on Ebay's claim, the company discovered the alleged poaching after being alerted by a seller. The seller claimed that about 10 days ago a person using Ebay's messaging tool tried to persuade the seller to move to Amazon.

Read more here.

 

THIS IS A TEST: U.S. officials on Wednesday afternoon tested the presidential alert system that allows them to send an alert directly to U.S. cellphones.

The message, delivered to millions of cellphones around 2:18 p.m. EDT, read "THIS IS A TEST of the National Wireless Emergency Alert System."

"No action is needed," the message added.

An initial test of the system, planned for Sept. 20, was delayed due to the landfall of Hurricane Florence last month. Wednesday's message was expected to reach about 75 percent of all cellphones in the U.S., according to The New York Times.

Officials have said that use of the system for official alerts -- which cellphone users cannot turn off -- is allowed under a 2016 law signed by then-President Obama ordering the testing of the emergency alert system.

Read more here.

 

THIRD PARTIES ARE STILL SAFE RIGHT NOW: Facebook said Tuesday that it has not yet found evidence that hackers in the company's most recent security attack accessed third-party sites of the company's platform that let users use their Facebook accounts to log in.

The update comes after concerns were raised when Facebook revealed on Friday that users' accounts on apps they had connected to Facebook might have been compromised as a result of its newly revealed breach in which access tokens for 50 million accounts were stolen by hackers.

Companies whose users have the option to create accounts and log in with their Facebook accounts, such as Tinder, Airbnb and Uber, have said that they're investigating potential breaches as a result, but have yet to find evidence of users being compromised.

Read more here.

 

UKRAINE, DID YOU HEAR? The United States plans to announce in the coming days that it will offer its cyber capabilities to NATO amid concerns about Russia's use of its own cyber capabilities.

"We will formally announce that the United States is prepared to offer NATO its cyber capabilities if asked," said Katie Wheelbarger, the principal deputy assistant secretary of Defense for international security affairs, according to Reuters.

Wheelbarger also said the U.S. offering its cyber capabilities "sends a message primarily aimed at Russia," according to Reuters. U.S. intelligence agencies have said that Russia conducted cyber campaigns against digital U.S. voting systems ahead of the 2016 election and that Russia hacked the Democratic National Committee that year.

Wheelbarger added that Britain has led the push for NATO to increase its cyber capabilities, according to Reuters. The news outlet noted that NATO recognizes cyber as a warfare domain but hasn't previously provided further details on what that entails.

The Associated Press on Wednesday reported that the U.S. recently released a new cybersecurity strategy mapping out a more hawkish use of its cyber capabilities. 

Read more here.

 

A LIGHTER TWITTER CLICK: The hunt for bread is worldwide.

 

NOTABLE LINKS FROM AROUND THE WEB:

Schiff: There is legal precedent for impeaching sitting officials over prior criminal conduct. (The Hill)

Amazon offsetting pay rise by removing bonuses, union says. (The Guardian)

The Rise of Netflix Competitors Has Pushed Consumers Back Toward Piracy. (Motherboard)

Ben Thompson looks for nuance in the data as a product narrative. (Stratechery)

Chained to the business model. (The Baffler)

 
 
 
 
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Breaking News: Senators will view FBI report on Kavanaugh Thursday

 
 
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Senators will view FBI report on Kavanaugh Thursday
Senators are being told that they will get to review a supplemental FBI background investigation into Supreme Court nominee Brett Kavanaugh on Thursday, but only one copy is being made available to senators under restricted conditions.

Senate Democratic Whip Dick Durbin (Ill.), a member of the Judiciary Committee, said that preparations are being made to review the report on Thursday.
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Election Countdown: Dems raising millions in fight for House | Trump attacks potential challengers | GOP finalizes 2020 convention plans | Dems see Kavanaugh fight driving women voters to the polls | Bloomberg spending big for Senate Dems | How one vulnerable Republican is fighting back on preexisting conditions

 
 
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This is Election Countdown, The Hill's weekly newsletter from Lisa Hagen (@LA_Hagen) and Max Greenwood (@KMaxGreenwood) that brings you the biggest stories on the campaign trail. We'd love to hear from you, so feel free to reach out to Lisa at LHagen@thehill.com and Max at MGreenwood@thehill.com. with any questions, comments, criticisms or food recommendations (mostly the latter, please). Click here to sign up.

 

We're 34 days until the 2018 midterm elections and 762 days until the 2020 elections.

 

 

Democratic House candidates' staggering fundraising hauls are yet another sign of the widening enthusiasm gap between the two parties weeks out from the midterm elections.

We won't see all fundraising reports until the Oct. 15 deadline, but here's a glimpse into the massive hauls Democrats are raising in the third quarter, which runs from July to September:

So far, California Democrat Andrew Janz tops the list with a jaw-dropping $4.3 million raised in the third fundraising quarter of 2018. Janz, a former county prosecutor, is running against Rep. Devin Nunes (R-Calif.), the House Intelligence Committee chairman who's close allies with President Trump and represents a GOP stronghold in California's San Joaquin Valley.

Janz's high-dollar fundraising helps him compete in a tough district for Democrats. But it's still an uphill battle in California's 22nd district where Trump won by nearly 10 points and Nunes won reelection by more than 30 points in 2016.

 

Two Democrats -- Amy McGrath in Kentucky and Josh Harder in California -- have raised more than $3 million each. McGrath has $1.7 million in the bank, while Harder hasn't said his cash on hand.

McGrath is running in a hotly contested race against Rep. Andy Barr (R-Ky.) in a district that Trump easily won by double-digits. And Harder is running against Rep. Jeff Denham (R-Calif.) in a seat that Hillary Clinton carried in 2016.

 

To put this in perspective, these are Senate-level numbers. In the second fundraising quarter of 2018, just seven of the 26 Senate candidates running in competitive races raised more than $3 million.

 

Here's a breakdown of other House fundraising numbers that have been trickling out. Democrat Sean Casten, who's running against Rep. Peter Roskam (R-Ill.), raised $2.6 million, while Democrat Sharice Davids, who's challenging Rep. Kevin Yoder (R-Kan.) raised $2.7 million. Both are running in suburban districts that Clinton won.

According to McClatchy, Davids outraised Yoder by $1.6 million. The GOP congressman, who's running for a fifth term, raised $1.1 million in the third quarter, ending September with $1.3 million on hand.

 

Other Democrats who have surpassed the million-dollar mark: Dana Balter in New York, Betsy Dirksen Londrigan in Illinois and Aftab Pureval in Ohio.

 

Race for the White House

Sen. Elizabeth Warren (D-Mass.) will give some thought to a 2020 White House run – just after the midterms are over. Her comments, made at a town hall event on Saturday, were among the firmest yet from a rumored Democratic presidential hopeful.

 

President Trump went after three potential Democratic challengers at a Monday rally. During a campaign event for Senate hopeful, Rep. Marsha Blackburn (R-Tenn.), the president launched attacks on Sens. Cory Booker (D-N.J.), Warren and former Vice President Joe Biden – all of whom are seen as prospective presidential candidates in 2020.

 

Washington Gov. Steve Inslee (D) isn't ruling out a 2020 bid, telling Politico that Democrats need a candidate who prioritizes climate change. He said: "I think our country needs a Democratic Party to produce a nominee who's going to really be committed to climate change and defeating climate change and creating a clean energy economic message and clean energy jobs."

 

Booker is slated to headline a fundraiser in Hollywood later this month. The event is expected to raise money for his 2020 reelection bid, but it's almost certain to fuel speculation that the first-term Democrat could be eyeing a possible White House run.

 

And as Democrats contemplate challenging Trump in 2020, Republicans have finalized plans for their national convention. The RNC announced Monday that the Republican National Convention (RNC) is set to take place in late August in Charlotte, N.C., from Aug. 24 to 27, 2020.

 

Senate showdown

Missouri GOP Senate candidate Josh Hawley says he does not regret signing onto a lawsuit that would invalidate ObamaCare's pre-existing conditions protections as the state's attorney general. Majority Forward, a liberal super PAC, has released multiple ads attacking Hawley for his position on coverage for those with pre-existing conditions.

 

In that same conference call with reporters, Hawley called for a special counsel to investigate Sen. Dianne Feinstein (D-Calif.) and her staff's handling of the sexual assault allegations against Supreme Court nominee Brett Kavanaugh. Hawley called on his opponent, Sen. Claire McCaskill (D-Mo.), to back his call for a probe, but she decried it as a partisan tactic.

 

Democrats are betting that the confirmation fight over Kavanaugh will boost their support among women voters in November and through 2020, The Hill's Amie Parnes reports. "If there's anything to be gained... it will be massive turnout by women in the midterm election that could add seats to a Democratic House majority and even flip the Senate," said former Rep. Steve Israel (D-N.Y.), who chaired the Democratic Congressional Campaign Committee.

 

Sen. Bill Nelson (D-Fla.), facing one of the toughest re-election bids of his Senate career, is expected to get a boost from Andrew Gillum, his party's progressive, African-American nominee for Florida governor, The Hill's Max Greenwood reports. Gillum rode a wave of support from African-American voters and progressive whites in his August primary. That could help turn more voters out for Nelson in November.

 

Survey says…

Five weeks out, we're seeing a deluge of polls. Here's a roundup of Senate race polls:

 

--In North Dakota: Rep. Kevin Cramer (R-N.D.) leads Sen. Heidi Heitkamp (D-N.D.) by 10 points in a new Gray TV poll, 51 to 41 percent. Eight percent are undecided.

--In West Virginia: Sen. Joe Manchin (D-W.Va.) is polling ahead of West Virginia Attorney General Patrick Morrisey (R) in a Gray TV poll, leading him 46 to 38 percent.

--In Missouri: McCaskill has a small lead over Hawley, within the CNN poll's margin of error, 47 to 44 percent.

 

In Colorado's sixth congressional district, Democrats and Republicans are releasing internal polling that shows very different races. From Democratic group End Citizens United, Rep. Mike Coffman (R-Colo.) is trailing Democratic opponent Jason Crow by 11 points in a recent poll. Meanwhile, a poll conducted for Coffman's campaign has the race in a dead heat, with Crow leading by 1 point.

 

Republican candidates still lead among voters in Southern states, according to an NBC News/SurveyMonkey online poll out this week. Overall, 48 percent of respondents in the South said they planned to back GOP candidates compared to 43 percent who said they would vote for Democrats. One exception, however, is Georgia, where 47 percent said they would choose Democratic candidates and 43 percent would vote for Republicans.

 

Sen. Bob Menendez (D-N.J.) is leading his GOP opponent Bob Hugin by a narrow 2-point margin, according to a Stockton University poll released Monday. That's well within the survey's 4-point margin of error. The poll is the latest sign that the Senate race in New Jersey is tightening in a state that Trump lost handily in 2016. Still, most recent polls show the incumbent Democrat leading by wider margins. A Quinnipiac University poll released Wednesday gives Menendez an 11-point lead over Hugin.

 

Paper chase

Former New York City Mayor Michael Bloomberg is planning to donate $20 million to Senate Majority PAC (SMP), the top super PAC supporting Democratic Senate candidates, The Washington Post reports. The contribution comes after Bloomberg already pledged to spend $80 million to boost Democratic candidates in the midterms. Most of that has gone to helping the party in its efforts to retake control of the House.

 

Bloomberg also announced this week that he would double his commitment to LCV Victory Fund, the League of Conservation Voters' PAC, to $5 million. He'll also give an additional $1 million to support a clean energy ballot measure in Washington state.

 

The Congressional Leadership Fund (CLF), the Republican super PAC aligned with House Speaker Paul Ryan (R-Wis.), has raked in $132 million in fundraising so far this cycle, including $40 million since the beginning of July. That's the largest haul ever for the super PAC. By comparison, CLF raised $51 million in the entire 2016 election cycle.

 

What we're watching for

Debate schedule:

--Oct. 5: North Dakota Senate debate in Fargo

--Oct. 8: Indiana Senate debate at Purdue University in Westville; Wisconsin Senate debate

--Oct. 12: Wisconsin Senate debate

 

Trump rally schedule:

--Oct. 4: Rochester, Minn. at 7:30 p.m. ET

--Oct. 6: Topeka, Kan. at 7:30 p.m. ET

--Oct. 9: Council Bluffs, Iowa at 7:30 p.m.

 

Coming to a TV near you

But first, a few things that won't be coming to a TV near you. Republicans have begun pulling ad reservations from a handful of GOP-held districts, a sign that the party is doubting its chances of holding onto some seats in a year in which Democrats are widely thought to have an edge.

The Hill's Reid Wilson reports that the National Republican Congressional Committee has cancelled more than $1 million in planned advertising boosting Rep. Kevin Yoder (R-Kan.) in Kansas's 3rd District. He's facing a tough challenge from Democrat Sharice Davids, a first-time candidate who stands to become the first Native American woman in Congress if she wins.

Yoder isn't the only one to see outside ad spending cut. Either the NRCC or the Congressional Leadership Fund (CLF) have pulled the plug on planned advertising in the districts of Reps. Keith Rothfus (R-Pa.), Mike Coffman (R-Colo.), Mike Bishop (R-Mich.) and several others.

 

Michigan Senate candidate and veteran John James (R) launched his first TV ad of the general election that blames both parties for problems surrounding education, veterans issues and health care. He ends the ad, which doesn't mention his opponent Sen. Debbie Stabenow (D-Mich.), saying: "I'm John James and I hate politics, but I approve this message because I love this country and I'm ready to serve."

 

Majority Forward, the 501(c)(4) affiliated with SMP, is rolling out a new ad in North Dakota's Senate race hitting Rep. Kevin Cramer (R) over Trump's ongoing trade war with China. Democrats in the state have seized on the trade war as they seek to hold onto Senate seat currently occupied by Sen. Heidi Heitkamp (D-N.D.).

 

Wave watch

Rep. Pete Sessions (R-Texas), who's considered among the most vulnerable House Republicans this cycle, introduced a resolution this week calling to protect people with pre-existing medical conditions. While the resolution is nonbinding, it's a sign of the lengths some Republicans are going to fend off attacks from Democrats, who have seized on failed GOP efforts to repeal the Affordable Care Act (ACA).

 

Democrats are surging in races across the Midwest as they seek to rebuild the so-called "blue wall" that came crashing down in 2016 when Trump stunned Democrats with wins in states, like Michigan and Wisconsin, The Hill's Reid Wilson reports. Now, voters in those states largely appear poised to hand a series of victories to Democrats, driven largely by dissatisfaction with the way Trump has handled in his job.

 

Roughly two months after he jumped into the midterms by backing 81 Democrats in races across the country, former President Barack Obama handed endorsements to 260 more hopefuls nationwide. Among them: Florida gubernatorial hopeful Andrew Gillum, Nelson, and Rep. Kyrsten Sinema (D-Ariz.), who's running to succeed Sen. Jeff Flake (R-Ariz.).

 

Some prominent Democrats did not make the list, like Rep. Beto O'Rourke (D-Texas), who's challenging Sen. Ted Cruz (R-Texas) for his Texas Senate seat. A spokesperson for Obama hinted, however, that it was a strategic decision. "President Obama is keenly aware that Republicans want nothing more than to invent a foil," the spokesperson told The Hill Monday.

 

Election Countdown was written by Lisa Hagen, Max Greenwood, James Wellemeyer and Kenna Sturgeon.

 
 
 
 
 
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