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2018年11月1日 星期四

Hillicon Valley: DOJ cracks down on Chinese tech theft | Google employees stage walkout over sexual harassment | Company's CEO vows to do 'better' | Feds struggle to help campaigns against cyberattacks

 
 
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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.

 

HEY, THAT ISN'T YOURS: The Department of Justice (DOJ) on Thursday announced new charges against a Chinese state-owned company, a Taiwanese company and three Taiwanese nationals for engaging in economic espionage on behalf of the Chinese government.  The entities and individuals charged are accused of stealing trade secrets from Micron Technology, an U.S.-based semiconductor company.

Attorney General Jeff Sessions announced the charges at a press conference, describing Chinese economic espionage as a grave threat to U.S. national security and economic competitiveness.

"The problem has been growing rapidly, and along with China's other unfair trade practices, it poses a real and illegal threat to our nation's economic prosperity and competitiveness," Sessions said in remarks at the Justice Department. He suggested that the activity had been "overshadowed in the press by threats from Russia or radical Islamic terrorism."

The charges are the second tranche related to Chinese economic espionage that U.S. officials have unveiled just this week. The announcement came days after the Justice Department charged two Chinese intelligence officers in a conspiracy to hack into U.S. firms and steal sensitive information on jet engines used in American and European commercial airliners.

On Thursday, Sessions also unveiled a new initiative to investigate trade theft cases by China. Assistant Attorney General for National Security John Demers will lead the initiative, with assistance from senior Justice Department and FBI officials as well as five U.S. attorneys.

The new initiative is the latest flashpoint in the Trump administration's efforts to curb what it views as malign activity by Beijing. Administration officials have ratcheted their rhetoric on China in recent months, accusing it of engaging in unacceptable behavior in the military, economic and cyber realms.

President Trump, Vice President Mike Pence and others have accused Beijing of meddling in the November midterm elections – a claim that spurred scrutiny from some critics that see it as an effort to distract from Russian interference and Special Counsel Robert Mueller's investigation into collusion between the Trump campaign and Moscow.

The indictment unveiled Thursday alleges that the defendants conspired to pilfer trade secrets from Micron, particularly information about dynamic random-access memory (DRAM), a technology used to store data in electronic devices that is manufactured by Micron, and pass it to the Chinese government.

The new charges come days after U.S. officials charged two Chinese intelligence officers, Zha Rong and Chai Meng, who allegedly worked with a team of Chinese hackers to steal information on a turbofan engine being developed by a U.S. company and a French firm with offices in China.

Read more here.

 

GOOGLE EMPLOYEES STAGE WORLDWIDE PROTESTS AGAINST HARRASSMENT: Google employees are staging walkouts at offices around the world to protest the company's handling of misconduct allegations against high-level executives.

The allegations and the company's subsequent work with the executives was detailed in a bombshell New York Times report last week.

The walkouts started at the company's offices in Asia and Europe, with demonstrators planning to leave the offices at 11:10 a.m. in whatever time zone they were located.

"All employees and contract workers across the company deserve to be safe," the organizers of the demonstration wrote in a blog post on the online news site The Cut.

"Sadly, the executive team has demonstrated through their lack of meaningful action that our safety is not a priority. We've waited for leadership to fix these problems, but have come to this conclusion: no one is going to do it for us."

According to Reuters, hundreds of workers walked out of Google's Dublin headquarters Thursday morning, and social media posts showed large demonstrations at other offices including in Switzerland. Walkouts were also reported in London.

Read more here.

Google CEO Sundar Pichai said in a statement that he supports the demonstrations.

"Earlier this week, we let Googlers know that we are aware of the activities planned for today and that employees will have the support they need if they wish to participate," Pichai said. "Employees have raised constructive ideas for how we can improve our policies and our processes going forward. We are taking in all their feedback so we can turn these ideas into action." 

Read more here.

 

CAMPAIGNS WATCH... FOR CYBER ATTACKS: Federal officials say they want to help political campaigns guard against against cyberattacks, but are struggling to figure out how.

Election officials said this week that while much of the attention since 2016 has focused on protecting voting systems, campaigns remain highly susceptible to cyber intrusions. However, those same officials have no means of directly communicating with the hundreds, if not thousands, of candidates about how best to address cyber threats.

Robert Kolasky, director of the Department of Homeland Security's (DHS) National Risk Management Center, said DHS has resorted to contacting the Republican and Democratic national committees to try to reach campaigns. And even then federal officials aren't able to reach everyone.

Few campaigns reach out to DHS about cybersecurity issues, Kolasky told reporters on Tuesday, adding that candidates are more likely to contact the FBI or their national committees when they notice something has gone wrong. He said that after the midterms he hopes lawmakers, officials and the political parties can figure out a better way to communicate when it comes to making sure campaigns have stronger protections against cyberattacks.

"Competitors work together on security, they don't compete on security," Kolasky said after an event at the Center for Strategic and International Studies (CSIS). "I'd like the department and campaigns to work together on security, work with the government, and not compete on security."

Groups like the Belfer Center at Harvard University have offered guidance to campaigns on how to beef up their cybersecurity, while private firms have offered free resources to campaigns in recent months. Microsoft provides free cybersecurity software to campaigns, as well as nonpartisan groups like think tanks, and other companies have offered similar resources at no cost.

John Gilligan, the CEO of the Center for Internet Security, said his group is starting to talk with campaigns about how they can offer support ahead of the 2020 elections. Read more here.

 

AH, TO BE A CYBER-FOCUSED FLY ON THE WALL FOR THIS: "Just concluded briefing @POTUS with @FBI and @ODNIgov on steps @DHSgov and our partners are taking to protect #Election infrastructure. We are working with state and local election officials to ensure that every vote counts and will be counted correctly," DHS Sec. Kirstjen Nielsen tweeted today.

Administration officials also held a background briefing call for reporters on election security on Thursday, but were tight-lipped about their efforts to keep the election secure.

 

FRAUD ALERT: According to Agari's quarterly report on email and identity fraud, Microsoft and Amazon are the most commonly displayed brands in name impersonation attacks.

"Microsoft was impersonated in 36 percent of all (brand) display name impersonation attacks in the third quarter. Amazon was the second most commonly impersonated company, used in 27 percent of these attacks," according to the report.

The two companies are likely the most common impersonated brand because they both run the largest public cloud computing platforms, which are widely used by companies that are "undergoing digital transformation projects," researchers at Agari found.

"The pattern was different for high-value targets, such as C-suite executives--Microsoft was impersonated in 71 percent of these attacks. Dropbox is a distant second at seven percent, followed by United Parcel Service at six percent."

 

THROWING THE BOOK AT FACEBOOK: A Democratic senator has unveiled a new proposal for a national privacy law, one that would subject technology CEOs to lengthy prison sentences for repeated violations.

Sen. Ron Wyden (D-Ore.) on Thursday released a draft of his legislation, which would give internet users the ability to opt out of being tracked online and having their data collected for advertising.

"Today's economy is a giant vacuum for your personal information," Wyden said in a statement. "Everything you read, everywhere you go, everything you buy and everyone you talk to is sucked up in a corporation's database. But individual Americans know far too little about how their data is collected, how it's used and how it's shared."

Under the proposed law, companies would be fined up to 4 percent of their annual revenue on their first privacy or cybersecurity offense, and on the second one senior executives could be sentenced to 10-20 years in prison. 

Read more here.

 

NOT A DETERRENT AFTER ALL? Grant Schneider, the federal chief information security officer, said Thursday that he doesn't think the U.S.'s new offensive cyber strategy and activities work "really as a deterrent."

Schneider, speaking at Fifth Domain's CyberCon, said that aggressive actors in cyberspace aren't likely to stop their activities because of the more proactive cyber actions taken by the U.S.

"I don't think Putin's going to go, 'oh no, the U.S. has another offensive cyber thing, I should stop doing my offensive cyber capabilities,'" he said.

Schneider added that he thinks the U.S. should take care over who and how it targets adversaries in cyberspace, over fears it could cause retaliation against American agencies or companies.

He made the comments just a week after The New York Times first reported that U.S. Cyber Command had begun its first offensive cyber operations to try to protect American elections, by contacting Russian operatives behind influence campaigns and letting them know the U.S. was aware of their actions.

 

AMAZON'S PAY RAISE GOES INTO EFFECT: Amazon's increased minimum wage went into effect on Thursday, providing a $15 per hour salary for all employees of the retail and technology giant.

The company announced in early October that it would raise its minimum wage to $15 per hour for all full-time, part-time, temporary and seasonal employees across the United States.

The policy was set to go into effect on Nov. 1, founder and CEO Jeff Bezos said at the time.

"We're excited about this change and encourage our competitors and other large employers to join us," Bezos said in an Oct. 2 statement.

Read more here.

 

KEEP AN EYE ON: Israel remaining quiet amid reports Iran was hit by a more sophisticated, violent Stuxnet-like computer virus. (Times of Israel)

 

A LIGHTER CLICK: Not his brightest moment.

 

AN OP-ED TO CHEW ON: Forget Halloween: One in five Americans says elections are more scary.

 

NOTABLE LINKS FROM AROUND THE WEB:

Roughly 30 percent of anti-Semitic attacks online are stemming from bots. (NPR)

How Mark Zuckerberg became too big to fail. (New York Times)

HBO channels, now controlled by AT&T, are yanked off Dish and Sling TV. (LA Times)

Bolton says U.S. is conducting 'offensive cyber' action to thwart would-be election disrupters (Washington Post)

How Big Oil Dodges Facebook's New Ad Transparency Rules (ProPublica)

Bannon, ex-Trump officials talked Roger Stone, WikiLeaks with Mueller: report (The Hill)

 
 
 
 
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Election Countdown: 5 days to midterms | Steve King faces his toughest test | Oprah stumps for Abrams in Georgia | Trump stokes controversy with immigration ad | Dems keep focus on health care | Polls show West Virginia, Indiana Senate races tightening | Obama world divided over 2020

 
 
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This is Election Countdown, The Hill's 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 5 days from the 2018 midterm elections and 733 days from the 2020 elections.

 

 

It's been a bad week for Rep. Steve King (R-Iowa).

The eight-term congressman has long been a controversial figure, known for his anti-immigrant – and sometimes racially charged – rhetoric. But his apparent endorsement of a white nationalist candidate in Canada and recent revelations that meetings with representatives of the far-right Austria Freedom Party have put him in an increasingly precarious political position.

 

Republican leaders are facing new pressure to denounce King and public outrage over his comments could bring him loads of unwanted attention. Rep. Steve Stivers (R-Ohio), the chairman of the National Republican Congressional Committee (NRCC) rebuked the Iowa congressman this week, writing in a tweet that King's "recent comments, actions, and retweets are completely inappropriate.

"We must stand up against white supremacy and hate in all forms, and I strongly condemn this behavior," Stivers wrote.

 

King has won reelection with relative ease since he first entered Congress in 2003. But now, signs point to potential peril for King, who's facing a closer-than-expected challenge from Democrat J.D. Scholten. The Cook Political Report, a nonpartisan election handicapper, recently moved King's race from the "Likely Republican" column to the "Lean Republican" column. King also had a heated exchange with an attendee at a town hall on Thursday who asked whether he was a white nationalist and tried to link King's rhetoric to the shooting in Pittsburgh.

 

With just five days to go before Election Day, King is airing the first television ad of his reelection bid. Meanwhile, Scholten has seen a last-minute cash injection in recent days, according to a Politico report, raking in $641,000 on Tuesday and Wednesday alone. A survey conducted late last month by left-leaning polling firm Change Research also showed Scholten within striking distance of King.

 

Exactly how much danger King is in is unclear. Some political observers cast doubt on the notion that the Iowa congressman's ouster is imminent. In a string of tweets on Thursday, Michael McDonald, an associate professor at the University of Florida who tracks elections, wrote that early voting numbers in Iowa's 4th District showed some improvement in Democratic turnout. But that increase, he noted, he not enough on its own to edge out King.

 

 

Senate showdown

Sen. Joe Donnelly (D-Ind.) says he "misspoke" when he discussed the performance of two minority staffers during a debate this week. "Our state director is Indian American, but he does an amazing job," he said at the time. "Our director of all constituent services, she's African American, but she does an even more incredible job than you could ever imagine." Those comments drew accusations that Donnelly was suggesting that the two employees were able to perform well in spite of their race and ethnicity.

"I misspoke," he said. "I meant to say 'and' instead of 'but.' That would have communicated what I have tried to do my entire life: that I make a habit to seek out and promote people of color for both my campaign and official staff."

 

 

Wave watch

Democrats aren't just hopeful that they can capture the 23 seats they need to win a majority in the House. They're confident. The optimism among Democrats has been fueled by favorable recent polls, outsize fundraising numbers and Trump's dwindling approval ratings, The Hill's Melanie Zanona and Mike Lillis report. In fact, House Minority Leader Nancy Pelosi (D-Calif.) declared this week that Democrats "will win" control of the chamber on Election Day.

 

Democrat Abigail Spanberger's campaign says that it was infiltrated by a woman believed to work for the conservative group Project Veritas, The Washington Post reports. The woman had pretended to be a Democratic volunteer and worked in the campaign's Richmond office for several weeks, Spanberger's campaign told the newspaper. Project Veritas is known for its undercover operations, which have targeted news outlets, Democrats and Planned Parenthood. Spanberger is challenging Rep. Dave Brat (R-Va.) in Virginia's 7th District.

 

Democrats are pinning their hopes on health care as a winning message in the final days of the midterm campaign, saying they will not be distracted by President Trump's attempts to make the election about immigration, The Hill's Peter Sullivan reports.

 

 

Survey says…

Fox News polls released Wednesday show tightening Senate races in North Dakota and Arizona with less than one week before the election. Rep. Kevin Cramer (R-N.D.) holds a nine-point lead over Democratic Sen. Heidi Heitkamp (N.D.) among likely voters. An earlier poll gave Cramer a 12-point lead over the incumbent. In Arizona, Reps. Kyrsten Sinema (D-Ariz.) and Martha McSally (R-Ariz.), both hoping to replace retiring Sen. Jeff Flake (R-Ariz.), each have 46 percent of likely voters' support. The new poll makes the race slightly tighter than suggested by an earlier Oct. 3rd poll which gave Sinema a two-point lead.

 

Sen. Joe Manchin's (D-W.Va.) polling lead is starting to tighten. A new MetroNews poll shows that Manchin maintains a 5-point lead over his GOP challenger, state Attorney General Patrick Morrisey. Earlier this year, MetroNews reported an 8-point advantage for Manchin.

 

In Indiana, Sen. Joe Donnelly (D) leads GOP challenger Mike Braun 48 to 46 percent among likely voters, according to a new NBC News/Marist poll. Seven percent of voters remain undecided. Donnelly's two-point lead, which is within the poll's margin of error, is narrower than the 6-point lead he held in September's NBC News/Marist poll.

 

Rep. Marsha Blackburn (R-Tenn.) is leading former Tennessee Gov. Phil Bredesen by 8 points in the race to replace retiring Sen. Bob Corker (R-Tenn.), according to an Emerson College poll out Thursday. The poll shows 52 percent of likely voters backing Blackburn, compared to 44 percent who support Bredesen. Three percent of voters were undecided.

 

 

Paper chase

The Koch Network's Hispanic campaign arm, Libre Initiative Action, on Thursday announced a series of bilingual mail ads in support of the reelection campaign for Rep. Cathy McMorris Rodgers (R-Wash.), a member of House GOP leadership. In a district that is 5.8 percent Hispanic, the postcard-sized mailers could tip the scales in McMorris Rodgers's favor on Election Day.

 

The Republican Attorney Generals Association (RAGA) raked in more than $8 million in October, bringing the group's fundraising total for the cycle to $40 million. The group's previous record for October was set in 2014 with $3.1 million. It raised a total of $25 million that cycle.

 

Republican Florida Gov. Rick Scott pumped $12.5 million of his personal fortune into his Senate campaign in just nine days. That brings his total self-funding this cycle to more than $64 million, the Tampa Bay Times reports. Scott, a wealthy former health care executive, is vying to oust Sen. Bill Nelson (D-Fla.) in Florida's closely watched Senate race.

 

 

What we're watching for

Campaign trail:

--Nov. 1: Former Vice President Joe Biden will be in Fargo, N.D. for Sen. Heidi Heitkamp (D). And Sen. Kamala Harris (D-Calif.) will stump for Senate candidate, Rep. Jacky Rosen (D-Nev.), in Reno, Nev., at 10:15 p.m. ET.

--Nov. 2: Former President Barack Obama will campaign for Georgia Democratic gubernatorial nominee Stacey Abrams in Atlanta. He'll also be stumping for Democrat Andrew Gillum, who's running for Florida governor, in Miami.

 

Trump rallies (All times in ET):

--Nov. 1: Columbia, Mo. at 7:30 p.m.

--Nov. 2: Huntington, W. Va. at 4 p.m.; Indianapolis, Ind. at 7 p.m.

--Nov. 3: Belgrade, Mont. at 2:30 p.m.; Pensacola, Fla. at 7:30 p.m.

--Nov. 4: Macon, Ga. at 4 p.m.; Chattanooga, Tenn. at 7 p.m.

--Nov. 5: Cleveland, Ohio at 3 p.m.; Fort Wayne, Ind. at 6:30 p.m.; Cape Girardeau, Mo. at 10 p.m.

 

Debates:

--Nov. 1: West Virginia Senate debate

--CANCELLED: Nov. 4: Georgia gubernatorial debate

 

 

Coming to a TV near you

Trump released an ad on Twitter on Wednesday attacking Democrats on immigration. The ad features Luis Bracamontes, a twice-deported Mexican immigrant who received the death penalty in April for killing two cops. "Democrats let him into our country," bold white text reads in the video. The 50-second clip goes on to display a video of a large group of migrants and asks, "Who else would Democrats let in?"

 

Democratic National Committee Chairman Tom Perez told CNN the ad shows Trump "at his worst." "The dog-whistle of all dog-whistles," Perez said, describing the ad to host Chris Cuomo. And retiring Sen. Jeff Flake (R-Ariz.), an outspoken Trump critic, called it a "sickening ad," urging Republicans to denounce it. The Sacramento Bee also reported that Bracamontes was readmitted to the U.S. during President George W. Bush's tenure.

 

 

Race for the White House

The famously close-knit Obama World is split as former aides and staffers ponder who to throw their support behind in the coming 2020 election, The Hill's Amie Parnes reports. Among the possible names in the hat for the Democratic Party are former Vice President Joe Biden, former attorney general Eric Holder and former Massachusetts Gov. Deval Patrick. Former President Barack Obama has remained tight-lipped on who he will back, but his implicit support is expected to have important weight in the election.

 

Sen. Bernie Sanders (I-Vt.) called President Trump "the most racist, sexist, homophobic, bigoted president in history" at a campaign event for Maryland gubernatorial candidate Ben Jealous (D) this week. Sanders' comments come with increased speculation that the progressive senator will launch a bid to oust Trump in 2020.


 

State watch

Oprah Winfrey stumped for Georgia gubernatorial candidate Stacey Abrams (D) on Thursday, making an impassioned call for women voters to turn up at the polls. Abrams and her opponent, Georgia Secretary of State Brian Kemp (R) are neck-and-neck, with Abrams leading by one point. The talk show host told the crowd that their votes "cannot be suppressed" if they show up in big enough numbers, referencing accusations that Kemp has suppressed the votes of minorities in the state. While at the event, Winfrey denied reports she is planning a 2020 presidential bid.

 

Vice President Pence was in Georgia to campaign for Kemp. He told voters at a rally that Abrams had been "bankrolled by Hollywood liberals." "I'd like to remind Stacey and Oprah and Will Ferrell, I'm kind of a big deal, too," Pence added. " "And I've got a message for all of Stacey Abrams's liberal Hollywood friends: This ain't Hollywood... This is Georgia."

 

Florida Republican gubernatorial candidate Ron DeSantis suggested his Democratic opponent, Tallahassee mayor Andrew Gillum, should be impeached for "corruption in action." DeSantis called Gillum's push to impeach Trump ironic given the revelation that Gillum accepted a ticket to the Broadway musical "Hamilton" in 2016 from an undercover FBI agent investigating suspected corruption in Tallahassee City Hall.

Gillum appeared on CNN this morning to defend himself against the accusations. "I've been an elected official for 15 years and I've been elected repeatedly by doing right, not by doing wrong," he said.

 

 

Ballot box

A federal district court judge on Thursday refused to temporarily exempt Native Americans in North Dakota from a state law requiring residents to show a valid ID that lists a current residential street address when voting, The Hill's Lydia Wheeler reports.

 

The Hill's Election Countdown was written by Lisa Hagen, Max Greenwood, Madeline Rundlett, Rachel Cohen and James Wellemeyer.

 
 
 
 
 
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Marketing Day: Email innovation, Pinterest’s new ad unit, Facebook Pixel updates

 


 
Featured story
 

Agencies must now confirm client relationships before enabling Facebook Pixel and event sets

 

Nov 1, 2018 by Amy Gesenhues

Aiming to be more transparent about ad targeting practices, Facebook is updating policies attached to its Pixel and event sets.

 
From Marketing Land
 
Instagram introduces new hashtag search API for businesses
  Nov 1, 2018 by Amy Gesenhues

The new API limits search queries to 30 unique hashtags within a seven-day period.

 
Digital work crisis — take the survey…
  Nov 1, 2018 by Marketing Land

You're not alone. And we want to hear from you. MarTech Today and Workfront are conducting a survey to measure the level of what we're calling the "Digital Work Crisis." We're asking anyone who works in a large organization, especially those who are involved in marketing operations and marketing technology, to answer just a few questions.

 
Marketers must capitalize on the new wave of email innovation
  Nov 1, 2018 by Ryan Phelan

Discover which companies are pushing the virtual envelope in the email marketing space.

 
Pinterest's new Promoted Carousel ads will display up to 5 swipable images in a single ad
  Nov 1, 2018 by Amy Gesenhues

Each image can link to a separate landing page.

 
3 things marketers should know about Facebook's Q3 earnings
  Oct 31, 2018 by Robin Kurzer

The company is investing heavily is shifting its monetization strategy from newsfeed to Stories, messaging and video.

Recent Headlines From MarTech Today, Our Sister Site Dedicated To Marketing Technology
 
Audience targeting service Simulmedia launches 'first' direct-to-consumer ad marketplace for linear TV
  Nov 1, 2018 by Barry Levine

Dollar Shave Club, Casper mattresses and the like now have a TV ad marketplace designed for their needs.


 

For more marketing news from around the web, check out the full Marketing Day article on our site.


 

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