The once-hot DNA-testing company is struggling to profit. From a report: Five years ago, 23andMe was one of the hottest startups in the world. Millions of people were spitting into its test tubes to learn about their ancestry. Oprah had named its kit one of her favorite things; Lizzo dressed up as one for Halloween; Eddie Murphy name-checked the company on "Saturday Night Live." 23andMe went public in 2021 and its valuation briefly topped $6 billion. Forbes anointed Anne Wojcicki, 23andMe's chief executive and a Silicon Valley celebrity, as the "newest self-made billionaire." Now Wojcicki's self-made billions have vanished.

23andMe's valuation has crashed 98% from its peak and Nasdaq has threatened to delist its sub-$1 stock. Wojcicki reduced staff by a quarter last year through three rounds of layoffs and a subsidiary sale. The company has never made a profit and is burning cash so quickly it could run out by 2025. Silicon Valley's fortunes were built on the lofty ambitions of entrepreneurs swinging for the fences -- even if most of them strike out. Wojcicki, for her part, isn't giving up. She's sticking to her goal to transform 23andMe from a supplier of basic ancestry and health data into a comprehensive healthcare company that develops drugs, offers medical care and sells subscription health reports. She still has to prove the business can sustain itself. She's raised about $1.4 billion for 23andMe, and spent roughly 80% of it.

Known for her quirky charm and informal style -- she typically wears workout gear to the office -- Wojcicki, 50, has been searching for fresh capital. But with 23andMe's stock trading at just 74 cents, the company likely can't raise money by selling more shares. And the company's early-stage drug programs are so expensive, she has sought investor partners for some of them, so far unsuccessfully, and given up stakes in others. She could also plug the hole with her own cash. At the center of 23andMe's DNA-testing business are two fundamental challenges. Customers only need to take the test once, and few test-takers get life-altering health results.

An anonymous reader quotes a report from Ars Technica: The business arm of Raspberry Pi is preparing to make an initial public offering (IPO) in London. CEO Eben Upton tells Ars that should the IPO happen, it will let Raspberry Pi's not-for-profit side expand by "at least a factor of 2X." And while it's "an understandable thing" that Raspberry Pi enthusiasts could be concerned, "while I'm involved in running the thing, I don't expect people to see any change in how we do things." CEO Eben Upton confirmed in an interview with Bloomberg News that Raspberry Pi had appointed bankers at London firms Peel Hunt and Jefferies to prepare for "when the IPO market reopens."

Raspberry previously raised money from Sony and semiconductor and software design firm ARM, and it sought public investment. Upton denied or didn't quite deny IPO rumors in 2021, and Bloomberg reported Raspberry Pi was considering an IPO in early 2022. After ARM took a minority stake in the company in November 2023, Raspberry Pi was valued at roughly 400 million pounds, or just over $500 million. Given the company's gradual recovery from pandemic supply chain shortages, and the success of the Raspberry Pi 5 launch, the company's IPO will likely jump above that level, even with a listing in the UK rather than the more typical US IPO. Upton told The Register that "the business is in a much better place than it was last time we looked at it [an IPO]. We partly stopped because the markets got bad. And we partly stopped because our business became unpredictable." "It's a good thing, in that people care about us," Upton said in response to concerned hobbyists and tech enthusiasts. "What Raspberry Pi [builds] are the products we want to buy, and then we sell them to people like us," Upton said. "Certainly, while I'm involved in it, I can't imagine an environment in which the hobbyists are not going to be incredibly important."

The IPO is "about the foundation," Upton said, with that charitable arm selling some of its majority stake in the business entity to raise funds and expand. "We've not cooked up some new way for a not-for-profit to do an IPO, no," he noted. [He told Ars that Raspberry Pi's business arm has had both strategic and private investors in its history, along with a majority shareholder in its Foundation (which in 2016 owned 75 percent of shares), and that he doesn't see changes to what Pi has built. He also noted that the foundation was previously funded by dividends from the business side.]

"We do this transaction, and the proceeds of that transaction allow the foundation to train teachers, run clubs, expand programs, and ... do those things at, at least, a factor of 2X. That's what I'm most excited about." Upton said there would be "no change" to the kinds of products Pi makes, and that makers are "culturally important to us." [...] "If people think that an IPO means we're going to ... push prices up, push the margins up, push down the feature sets, the only answer we can give is, watch us. Keep watching," he said. "Let's look at it in 15, 20 years' time."

New York Attorney General Letitia James filed a lawsuit against Citibank on Tuesday, alleging the big bank failed to do enough to protect and reimburse victims of fraud. From a report: The lawsuit argues that New York customers lost millions of dollars -- in some cases their entire lifesavings -- to scammers and hackers because of Citi's weak security and anti-fraud measures. According to the NY AG, Citi does not do enough to prevent unauthorized account takeovers, illegally refuses to reimburse fraud victims and "misleads" customers about their rights after their accounts are hacked.

The lawsuit, filed in US District Court for the Southern District of New York, alleges that Citi has "overpromised and underdelivered on security" and failed to respond appropriately to red flags. "Banks are supposed to be the safest place to keep money, yet Citi's negligence has allowed scammers to steal millions of dollars from hardworking people, James said in a statement. There is no excuse for Citi's failure to protect and prevent millions of dollars from being stolen from customers' accounts and my office will not write off illegal behavior from big banks."

In Denver, Colorado, a pastor had a message for his congregation, reports CNN.

"After months of prayers and cues from God, he was going to start selling cryptocurrency, he announced in a YouTube video last April." The Signature and Silvergate banks had collapsed weeks earlier, signaling the need to look into other investment options beyond financial institutions, he said. With divine wisdom, he said, he was "setting the rails for God's wealth transfer." Shortly afterward, Regalado and his wife, Kaitlyn Regalado, launched a cryptocurrency, INDXcoin, and began selling it to members of his Victorious Grace Church and other Christian communities in the Denver area. They sold it through the Kingdom Wealth Exchange, an online cryptocurrency marketplace he created, controlled and operated.

The Regalados raised more than $3.2 million from over 300 investors, Tung Chang, Securities Commissioner for Colorado, said in a civil complaint. The couple's sales pitches were filled with "prayer and quotes from the Bible, encouraging investors to have faith that their investment ... would lead to 'abundance' and 'blessings,'" the complaint said. But Colorado state regulators say that INDXcoin was "essentially worthless." Instead of helping investors acquire wealth, the Regalados used around $1.3 million of the investment funds to bankroll lavish expenditures, including a Range Rover, jewelry, cosmetic dentistry and extravagant vacations, the complaint said. The money also paid for renovations to the Regalados' Denver home, the complaint said.

In a stunning video statement posted online on January 19 — several days after the civil charges were filed — Eli Regalado did not dispute that he and his wife profited from the crypto venture. "The charges are that Kaitlyn and I pocketed 1.3 million dollars, and I just want to come out and say that those charges are true," he said, adding, "A few hundred thousand dollars went to a home remodel that the Lord told us to do...."

Regalado also said that he and his wife used about half a million dollars of their investors' funds to pay taxes to the IRS.
CNN reports that in videos Regalado explains how God "convinced him that it was a safe and profitable investment venture." ("You read it correctly. God's hand is on INDXcoin and we are launching!" explains the launch video's description.)

"The Regalados used technical terms to confuse investors and misled them into believing that the coins were valued at between $10-$12 even though they were purchased for $1.50 or, at times, given away, the complaint said."

Remember that cheery corporate video Internet Brands tried announcing their new (non-negotiable) hybrid return-to-office policy (with the festive song "Iko Iko" playing in the background)? They've now pulled the video from Vimeo.

Could that signal a larger shift in attitudes about working from home? The Washington Post reports: Now, new research from the Katz Graduate School of Business at the University of Pittsburgh suggests that office mandates may not help companies' financial performances, but they can make workers less satisfied with their jobs and work-life balance... "We will not get back to the time when as many people will be happy working from the office the way they were before the pandemic," said Mark Ma, co-author of the study and associate professor at the Katz Graduate School of Business. Additionally, mandates make workers less happy, therefore less productive and more likely to look for a new job, he said.

The study analyzed a sample of Standard & Poor's 500 firms to explore the effects of office mandates, including average change in quarterly results and company stock price. Those results were compared with changes at companies without office mandates. The outcome showed the mandates made no difference. Firms with mandates did not experience financial boosts compared with those without. The sample covered 457 firms and 4,455 quarterly observations between June 2019 and January 2023...

"There are compliance issues universally," said Prithwiraj Choudhury, a Harvard Business School professor who studies remote work. "Some companies are issuing veiled threats about promotions and salary increases ... which is unfortunate because this is your talent pool, your most valuable resource...." Rather than grappling with mandates as a means of boosting productivity, companies should instead focus on structuring their policies on a team basis, said Choudhury of Harvard. That means not only understanding the frequency and venue in which teams would be most productive in-person, but also ensuring that in-person days are structured for more collaboration. Requiring employees to work in-office to boost productivity in general has yet to prove itself out, he added.

"Return-to-office is just a knee-jerk reaction trying to make the world go back to where it was instead of recognizing this as a point for fundamental transformation," he said. "I call them return-to-the-past mandates."
The article cites US Bureau of Labor Statics showing movement in the other directionRoughly 78% of workers ages 16 and older "worked entirely on-site in December 2023, down from 81% a year earlier" — and for tech workers only 34% worked entirely on-site last month compared with 38% last year.

"Still, some companies are going all in on mandates, reminding workers and sometimes threatening promotions and job security for noncompliance. Leaders are unlikely to backtrack on mandates once they have been implemented because that could be viewed as admitting they made a mistake, said Ma."

Long-time Slashdot reader SonicSpike shared this investigation by Time magazine's senior economics correspondent which argues that America's residential solar industry "is floundering." In late 2023 alone, more than 100 residential solar dealers and installers in the U.S. declared bankruptcy, according to Roth Capital Partners — six times the number in the previous three years combined. Roth expects at least 100 more to fail. The two largest companies in the industry, SunRun and Sunnova, both posted big losses in their most recent quarterly reports, and their shares are down 86% and 81% respectively from their peaks in January 2021... At the root of these struggles is the complicated financial engineering that helped companies raise money but that some investors and analysts say was built on a framework of lies — or at least exaggerations. Since at least 2016, big solar companies have used Wall Street money to fund their growth. This financialization raised the consumer cost of the panels and led companies to aggressively pursue sales to make the cost of borrowing Wall Street money worth it. National solar companies essentially became finance companies that happened to sell solar, engaging in calculations that may have been overly optimistic about how much money the solar leases and loans actually bring in.

"I've often heard solar finance and sales compared to the Wild West due to the creativity involved," says Jamie Johnson, the founder of Energy Sense Finance, who has been studying the residential solar industry for a decade. "It's the Silicon Valley mantra of 'break things and let the regulators figure it out.'"
Leasing the panels lets the companies claim green-energy tax credits (which they then sell to companies like Google). And meanwhile, bundles of solar-panel leases become asset-backed securities. By 2017, there were over $1 billion such securities... However, these financial innovations also increased the pressure on companies to grow quickly. Solar companies needed lots of new customers in order to package the loans into asset-backed securities and sell them to investors. Public companies especially faced intense scrutiny from investors who expected double-digit quarterly growth. And with upfront costs no longer a barrier for new customers, solar companies began to see almost every homeowner as a target, and they deployed expensive sales teams to go out and sell as aggressively as they could... Even today, about one-third of the upfront cost of a residential solar system goes to intermediaries like sales and financing people, says Pol Lezcano, an analyst with Bloomberg New Energy Finance. In Germany, where installation is done locally and there are fewer intermediaries, the typical residential system costs about 50% less than it costs in the U.S. "The upfront cost of these systems is stupidly high," says Lezcano, making residential solar not "scalable."

After growing 31% in 2021 and 40% in 2022, residential solar will only grow by 13% in 2023 and then contract 12% in 2024, according to predictions from the research firm Wood Mackenzie... Meanwhile, the pressure for fast sales may have led some companies to look the other way when salespeople obscured the terms of the solar panel leases and loans they were selling in order to close a deal.
One customer complains the solar panel company actually took out a lien on his house without his knowledge, according to the article. He's "one of a growing number of consumers now saying in courts and in arbitration that salesmen from solar-panel and solar-panel-finance companies — including some of the biggest in the U.S., like GoodLeap, Mosaic, Sunnova, and SunRun — tricked them into taking out onerous loans they didn't want — or that someone signed them up for a loan without their knowledge." Even some people who voluntarily signed up for financing products say they were misled about the actual cost of the solar panels. That's because loans from companies like GoodLeap and Mosaic often include an unexplained and significant "dealer fee." For example, a customer buying a $30,000 solar panel system with a low interest rate may not know that price includes a $10,000 loan-dealer fee. In other words, the cost of the panels, had they paid cash, would have been just $20,000; the extra 30% is the price they paid for the low-interest loan, though many consumers allege this was not explained to them...

In some ways, the current situation in the residential solar market is analogous to the subprime lending crisis that set off the Great Recession, though on a smaller scale. Like in the subprime lending crisis, some companies issued loans to people who could not — or would not — pay them. Like in the subprime lending crisis, thousands of these loans — and in solar's case, also leases — were packaged and sold to investors as asset-backed securities with promised rates of return. The Great Recession was driven largely by the fact that people stopped paying their loans, and the asset-backed securities didn't deliver the promised rate of return to investors. Similar cracks may be forming in the solar asset-backed securities market. For instance, the rate of delinquencies of loans in one of Sunnova's asset-backed securities was approaching 5% in the fall of last year, according to an October 2023 report issued by KBRA, a bond ratings agency. Historically, delinquencies in solar asset-backed securities had been around 1%.

The firms that grade these asset-backed securities have long said delinquencies would be low because rooftop-solar customers had high credit scores. The problem is that they appear not to have considered that even customers with good credit scores may not want to pay for solar panels that they were told would be free — or that salesmen could be signing people up without their knowledge.
Besides consumer cases in court, there's the possibility that regulators may act against solar companies that used inflated projections to juice their tax credits. "As early as 2016, a researcher at MIT's Energy Initiative estimated that such companies were overstating this value by as much as 50%." The broad problems facing residential solar and financing companies are already causing some pain in the forms of layoffs — California alone lost 17,000 solar jobs in 2023, according to the California Solar and Storage Association. There are ripple effects in the industry; Enphase Energy, which makes microinverters for solar panels, said in December it was laying off 10% of its workforce amidst softening demand.

It could get a lot worse before it gets better, with not just lost jobs, but near-total collapse of the current system. Some analysts, like Lezcano of Bloomberg New Energy Finance, think that the big, national players are going to have to fall apart for residential solar to become affordable in the U.S., and that in the future, the solar industry in the U.S. will look more like it does in Germany, where installations are done locally and there's fewer door-to-door sales.
"Over the past few years, a handful of people got rich off of Americans who were told they could simultaneously save money and save the planet. For example, Hayes Barnard, GoodLeap's founder and chairman, was named by Forbes as one of the 400 richest people in the world in 2023..."

An anonymous reader shared this report from the The New York Times: Over his 54 years as a financial analyst, Richard X. Bove perfected the art of grabbing attention... American Banker once called him "the country's most quotable bank analyst." Last week, a few hours after completing a spot on Bloomberg television, the 83-year-old announced his retirement. He took that weekend off — and then jumped right back in. In an interview with The New York Times, Mr. Bove (pronounced "boe-VAY"), who goes by Dick, shared a dire outlook on the U.S. economy and his former profession.

"The dollar is finished as the world's reserve currency," Mr. Bove said matter-of-factly, perched in an armchair outside his home office just north of Tampa, from which he predicted that China will overtake the U.S. economy. No other analysts will say the same because they are, as he put it, "monks praying to money," unwilling to speak out on the mainstream financial system that employs them...

As he spoke, a technician was trying to restore his home internet after his final employer, the boutique brokerage Odeon Capital, pulled the plug on his last day...

He sees the offshoring of American manufacturing as the ultimate threat to the financial sector and the dollar, because "the people making the goods elsewhere are getting greater and greater control of the means of production and therefore greater and greater control of the world economy and therefore greater and greater control of money."
The article notes that Bove was once called "The Loneliest Analyst."

"One way that's still true is that he endorses cryptocurrency — an area that few other financial analysts will touch — which he sees as a natural beneficiary of the decline of the dollar."

"Companies that once serviced the boom in cryptocurrency mining are pivoting to take advantage of the latest data gold rush," reports the Guardian. Canadian company Hive Blockchain changed its name in July to Hive Digital Technologies and announced it was pivoting to AI. "Hive has been a pioneering force in the cryptocurrency mining sector since 2017. The adoption of a new name signals a significant strategic shift to harness the potential of GPU Cloud compute technology, a vital tool in the world of AI, machine learning and advanced data analysis, allowing us to expand our revenue channels with our Nvidia GPU fleet," the company said in its announcement at the time. The company's executive chairman, Frank Holmes, told Guardian Australia the transition required a lot of work. "Moving from mining Ethereum to hosting GPU cloud services involves buying powerful new servers for our GPUs, upgrading networking equipment and moving to higher tier data centres," he said.

"The only commonality is that GPUs are the workhorses in both cases. GPU cloud requires higher end supporting hardware and a more secure, faster data centre environment. There's a steep learning curve in the GPU cloud business, but our team is adapting well and learning fast."

For others, like Iris Energy, a datacentre company operating out of Canada and Texas, and co-founded by Australian Daniel Roberts, it has been the plan all along. Iris did not require any changes to the way the company operated when the AI boom came along, Roberts told Guardian Australia. "Our strategy really has been about bootstrapping the datacentre platform with bitcoin mining, and then just preserve optionality on the whole digital world. The distinction with us and crypto-miners is we're not really miners, we're datacentre people." The company still trumpets its bitcoin mining capability but in the most recent results Iris said it was well positioned for "power dense computing" with 100% renewable energy. Roberts said it wasn't an either-or situation between bitcoin mining and AI.

"I think when you look at bitcoin versus AI, the market will just reach equilibrium based on the market-based demands for each product," he said... Holmes said Hive also saw the two industries operating in parallel. "We love the bitcoin mining business, but its revenue is rather unpredictable. GPU cloud services should complement it well," he said.
Thanks to long-time Slashdot reader mspohr for sharing the article.

Bank of America is cracking down on employees who aren't following its return-to-office mandate, sending "letters of education" warnings of disciplinary action to employees who have been staying home. The Guardian: Some employees at the bank received letters that said they had failed to meet the company's "workplace excellence guidelines" despite "requests and reminders to do so," according to the Financial Times. The letter warned employees that failure to follow return-to-office expectations could lead to "further disciplinary action."

In response to new EU regulations, Apple on Thursday outlined plans to allow iOS developers to distribute apps outside the App Store starting in March, though developers must still submit apps for Apple's review and pay commissions. Now critics say the changes don't go far enough and Apple retains too much control.

Epic Games CEO Tim Sweeney: They are forcing developers to choose between App Store exclusivity and the store terms, which will be illegal under DMA (Digital Markets Act), or accept a new also-illegal anticompetitive scheme rife with new Junk Fees on downloads and new Apple taxes on payments they don't process. 37signals's David Heinemeier Hansson, who is also the creator of Ruby on Rails: Let's start with the extortion regime that'll befell any large developer who might be tempted to try hosting their app in one of these new alternative app stores that the EU forced Apple to allow. And let's take Meta as a good example. Their Instagram app alone is used by over 300 million people in Europe. Let's just say for easy math there's 250 million of those in the EU. In order to distribute Instagram on, say, a new Microsoft iOS App Store, Meta would have to pay Apple $11,277,174 PER MONTH(!!!) as a "Core Technology Fee." That's $135 MILLION DOLLARS per year. Just for the privilege of putting Instagram into a competing store. No fee if they stay in Apple's App Store exclusively.

Holy shakedown, batman! That might be the most blatant extortion attempt ever committed to public policy by any technology company ever. And Meta has many successful apps! WhatsApp is even more popular in Europe than Instagram, so that's another $135M+/year. Then they gotta pay for the Facebook app too. There's the Messenger app. You add a hundred million here and a hundred million there, and suddenly you're talking about real money! Even for a big corporation like Meta, it would be an insane expense to offer all their apps in these new alternative app stores.

Which, of course, is the entire point. Apple doesn't want Meta, or anyone, to actually use these alternative app stores. They want everything to stay exactly as it is, so they can continue with the rake undisturbed. This poison pill is therefore explicitly designed to ensure that no second-party app store ever takes off. Without any of the big apps, there will be no draw, and there'll be no stores. All of the EU's efforts to create competition in the digital markets will be for nothing. And Apple gets to send a clear signal: If you interrupt our tool-booth operation, we'll make you regret it, and we'll make you pay. Don't resist, just let it be. Let's hope the EU doesn't just let it be. Coalition of App Fairness, an industry body that represents over 70 firms including Tinder, Spotify, Proton, Tile, and News Media Europe: "Apple clearly has no intention to comply with the DMA. Apple is introducing new fees on direct downloads and payments they do nothing to process, which violates the law. This plan does not achieve the DMA's goal to increase competition and fairness in the digital market -- it is not fair, reasonable, nor non-discriminatory," said Rick VanMeter, Executive Director of the Coalition for App Fairness.

"Apple's proposal forces developers to choose between two anticompetitive and illegal options. Either stick with the terrible status quo or opt into a new convoluted set of terms that are bad for developers and consumers alike. This is yet another attempt to circumvent regulation, the likes of which we've seen in the United States, the Netherlands and South Korea. Apple's 'plan' is a shameless insult to the European Commission and the millions of European consumers they represent -- it must not stand and should be rejected by the Commission."

Cruise, the driverless car subsidiary of General Motors, said in a report on Thursday that an adversarial approach taken (non-paywalled link) by its top executives toward regulators had led to a cascade of events that ended with a nationwide suspension of Cruise's fleet. From a report: The roughly 100-page report was compiled by a law firm that Cruise hired to investigate whether its executives had misled California regulators about an October crash in San Francisco in which a Cruise vehicle dragged a woman 20 feet. The investigation found that while the executives had not intentionally misled state officials, they had failed to explain key details about the incident. In meetings with regulators, the executives let a video of the crash "speak for itself" rather than fully explain how one of its vehicles severely injured the pedestrian. The executives later fixated on protecting Cruise's reputation rather than giving a full account of the accident to the public and media, according to the report, which was written by the Quinn Emanuel Urquhart & Sullivan law firm.

The company said that the Justice Department and the Securities and Exchange Commission were investigating the incident, as well as state agencies and the National Highway Traffic Safety Administration. The report is central to Cruise's efforts to regain the public's trust and eventually restart its business. Cruise has been largely shut down since October, when the California Department of Motor Vehicles suspended its license to operate because its vehicles were unsafe. It responded by pulling its driverless cars off the road across the country, laying off a quarter of its staff and replacing Kyle Vogt, its co-founder and chief executive, who resigned in November, with new leaders.

AT&T, Google and Vodafone are investing a total of $206.5 million in AST SpaceMobile, a satellite manufacturer that plans to be the first space-based network to connect standard mobile phones at broadband speeds. Fierce Wireless reports: AST SpaceMobile claims it invented the space-based direct-to-device market, with a patented design facilitating broadband connectivity directly to standard, unmodified cellular devices. In a press release, AST SpaceMobile said the investment from the likes of AT&T, Google and Vodafone underscores confidence in the company's technology and leadership position in the emerging space-based cellular D2D market. There's the potential to offer connectivity to 5.5 billion cellular devices when they're out of coverage.

Bolstering the case for AST SpaceMobile, Vodafone and AT&T placed purchase orders -- for an undisclosed amount -- for network equipment to support their planned commercial services. In addition, Google and AST SpaceMobile agreed to collaborate on product development, testing and implementation plans for SpaceMobile network connectivity on Android and related devices. AST SpaceMobile boasts agreements and understandings with more than 40 mobile network operators globally. However, it's far from alone in the D2D space. Apple/Globalstar, T-Mobile/SpaceX, Bullitt and Lynk Global are among the others.

An anonymous reader quotes a report from Ars Technica: Last Thursday, HP CEO Enrique Lores addressed the company's controversial practice of bricking printers when users load them with third-party ink. Speaking to CNBC Television, he said, "We have seen that you can embed viruses in the cartridges. Through the cartridge, [the virus can] go to the printer, [and then] from the printer, go to the network." That frightening scenario could help explain why HP, which was hit this month with another lawsuit over its Dynamic Security system, insists on deploying it to printers.

Dynamic Security stops HP printers from functioning if an ink cartridge without an HP chip or HP electronic circuitry is installed. HP has issued firmware updates that block printers with such ink cartridges from printing, leading to the above lawsuit (PDF), which is seeking class-action certification. The suit alleges that HP printer customers were not made aware that printer firmware updates issued in late 2022 and early 2023 could result in printer features not working. The lawsuit seeks monetary damages and an injunction preventing HP from issuing printer updates that block ink cartridges without an HP chip. [...]

Unsurprisingly, Lores' claim comes from HP-backed research. The company's bug bounty program tasked researchers from Bugcrowd with determining if it's possible to use an ink cartridge as a cyberthreat. HP argued that ink cartridge microcontroller chips, which are used to communicate with the printer, could be an entryway for attacks. [...] It's clear that HP's tactics are meant to coax HP printer owners into committing to HP ink, which helps the company drive recurring revenue and makes up for money lost when the printers are sold. Lores confirmed in his interview that HP loses money when it sells a printer and makes money through supplies. But HP's ambitions don't end there. It envisions a world where all of its printer customers also subscribe to an HP program offering ink and other printer-related services. "Our long-term objective is to make printing a subscription. This is really what we have been driving," Lores said.

Tens of thousands of people have fallen victim to predatory loan apps, which extort users using sensitive information from their phones. Google has changed its policy to prevent the loan apps from being listed on the Play store, but enforcement is unreliable. Rest of World: According to Mexico City's Citizen Council for Safety and Justice, a consumer watchdog group, 135 reports to local authorities have been filed against JoyCredito for fraud and extortion. But despite the government attention, the app is still available to download from the Google Play store. For years, apps like JoyCredito have been exploiting borrowers from Mexico to India. They lend small amounts of money with few requirements and very high interest rates to financially vulnerable people -- and then extort them when the loan is due. After years of mounting pressure from watchdog groups, Google explicitly banned the apps from the Play store in October. But stories like those of Macias Gonzalez show how widespread the apps still are -- and how ineffective Google has been at enforcing its own policy.

Rest of World presented Google with 15 instances of exploitative loan apps based in Mexico that explicitly violate the terms of the Play store. All of them were still available in the store as of press time. Of the 15 apps, 12 explicitly asked for access to either the camera roll or contacts in the Google Play store's terms of services. Two others specified full access only in external documents. One other gave no data access information. Rest of World also found 10 apps in Peru that have been flagged as exploitative by SBS, a national body that oversees banking, insurance, and private pension. All the apps are still available for download on the Google Play store.

One man living in Virginia oversaw "the laundering of some $7 million in fraudulently obtained gift cards" from Walmart in an international operation which over five years scammed hundreds of victims into sending the numbers over the phone, reports a new ProPublica investigation. (Citing court evidence that emerged after his arrested in 2021). Earlier that year, he complained to an associate that more and more people were competing to resell cards in China, eating into his profits. So many scammers were flocking to Walmart that he and his team regularly encountered them at self-checkout counters.... "We ran into quite a few at the store, and we even started chatting."
It was apparently so common that federal prosecutors started calling it "The Walmart scheme." And while the store is supposed to watch for customers who appear to be acting on a scammer's instructions, "Too often, Walmart has failed." America's largest retailer has long been a facilitator of fraud on a mass scale, a ProPublica investigation has found. For roughly a decade, Walmart has resisted tougher enforcement while breaking promises to regulators and skimping on employee training, according to more than 50 interviews, internal documents supplied by former industry executives, court filings and other public records...More than $1 billion in fraud losses were routed through the company's financial systems between 2013 and 2022, according to filings by the Federal Trade Commission and court cases analyzed by ProPublica. That has helped fuel a boom in financial chicanery. Americans, many of them elderly, were swindled out of $27 billion between 2013 and 2022, according to the FTC...

Walmart has a financial incentive to avoid cracking down. It makes money each time a Walmart gift card is used and earns a fee when another brand of card is bought. And it receives one commission when a person sends a money transfer and a second when the recipient picks it up. The company's financial services business generates hundreds of millions in annual profits. (Its filings do not provide specific figures for gift cards and money transfers.) "They were concerned about the bucks. That's all," Nick Alicea, a former fraud team leader for the U.S. Postal Inspection Service who investigated Walmart for years, told ProPublica. Walmart's deficiencies have repeatedly attracted government scrutiny. In 2017, the attorneys general of New York and Pennsylvania investigated Walmart over concerns that it was "reaping the benefits" of gift card fraud. The investigation concluded a year later with Walmart promising to restrict or eliminate the use of its gift cards to purchase other gift cards...

Instead, the company let the practice continue until 2022 — even after it knew that millions of dollars were being laundered through its stores. The FTC sued Walmart in 2022, alleging it "turned a blind eye" as criminals took advantage of its money transfer service. Walmart, the FTC claimed, pocketed millions in fees while "letting fraudsters fleece its customers." Summarizing the FTC's evidence, a federal judge in the case wrote that "Walmart knew that its services were used by fraudsters" and that the company was repeatedly warned about certain stores where "twenty-five, fifty, or even seventy-five percent of money transfer activity was fraudulent." Separately, a federal grand jury in Pennsylvania is hearing evidence of possible criminal conduct in Walmart's money transfer business, according to corporate filings that did not detail the allegations.
While the FTC says Americans were swindled out of $27 billion between 2013 and 2022, Walmart responded to ProPublica's investigation by pointing out it's refunded $4 million to gift-card fraud victims, and also blocked more than $700 million in suspicious money transfers. "We have a robust anti-fraud program and other controls to help stop scammers and other criminals who may use the financial services we offer to harm our customers." The company's legal filings in the FTC case struck a different tone. Walmart is seeking to dismiss the suit, partly on the grounds that it has "no responsibility to protect against the criminal conduct of third parties." Though fraud is "deeply unfortunate," Walmart argues, such schemes are "reasonably avoidable by consumers."
Other interesting quotes from the article:

• "Walmart outlets at one point accounted for the top 20 locations for fraud nationally among chains that partnered with MoneyGram, according to internal documents."

• "In a single week in March 2017, consumers claiming they'd been duped into a money transfer filed 610 complaints about Walmart, according to documents obtained by ProPublica. CVS ranked second, with 47."

• "Site inspections routinely found that Walmart staff lacked anti-fraud training and that employees failed to ask screening questions..."

• Walmart resisted MoneyGram's attempts to fight fraud [according to the former fraud team leader for the postal inspector's office in Harrisburg, Pennsylvania, who investigated MoneyGram and Walmart].

The Wall Street Journal reports: Moves by Broadcom to shore up its $69 billion VMware acquisition, completed in November, include a streamlining of product bundles and new billing models — efforts in line with the chip giant's past acquisitions, but not necessarily welcomed by all of VMware's customers... Broadcom has also recently laid off at least hundreds of VMware workers, disclosures from the Worker Adjustment and Retraining Notification show....

VMware has approximately 330,000 customers, according to the company. Chief information officers say they are closely monitoring what comes next.

"Any CIO that's not taking stock of what they have and mentally considering alternatives and monitoring what else is out there is probably not doing their job," said Jay Ferro, executive vice president and chief information, technology and product officer at clinical research data-management company Clario. All these changes, plus past remarks by Broadcom that its go-to-market strategy is to focus completely on the needs and priorities of its top 600 customers, has left some CIOs rethinking the relationship. Price increases and degrading levels of support are among their biggest concerns. "I'm not one of their top, probably 600 customers, so they've been very clear to me where I fit in that pecking order," said Todd Florence, CIO of trucking company Estes Express Lines. Florence said he's started looking into alternatives. "It certainly doesn't make you feel good, like you're going to get lots of support going forward...."

Goya Foods CIO Suvajit Basu said he is thinking about how to reduce the food company's reliance on VMware as the sole and longtime dominant provider of virtualization for the data center. "They're going to increase their prices or change their licensing so the customer pays more," he said. "And I think this is starting to hit us right now...." Forrester estimates that in 2024, 20% of VMware customers will begin the process of exiting VMware in favor of alternatives.
On the other hand, a group VP at market researcher IDC tells the Journal that on the upside, now VMware and Broadcom will have to engage more actively with customers on the value of new produces included in their bundles...

The S&P 500 index tracks 500 of the largest companies listed on U.S. stock exchanges, according to Wikipedia.

And Friday that index "hit an all-time closing high," reports the Washington Post, "reflecting the staggering gains of a coterie of Big Tech firms against the backdrop of a surprisingly stable economy." The broad-based index closed at 4,839.81 — up more than 1 percent for the day — surpassing the previous closing record set in January of 2022. The stock market surged upward in the final quarter of 2023 as evidence gathered that the [U.S.] economy has not tipped into recession territory, despite the Federal Reserve's campaign to raise interest rates. At the same time analysts point to an AI-driven frenzy on Wall Street that rivals the dot-com boom of the late '90s, when investors sought to capitalize on the transformative gains brought by the early internet.

A booming S&P 500 is a welcome sign for the millions of Americans who invest in the index through retirement accounts. Investors in 2022 had about $5.7 trillion in assets passively indexed to the S&P 500 and another $5.7 trillion in funds that use it as a benchmark comparison, according to S&P Global. Voters' feelings about the stock market and economy could affect the 2024 election...

Tech companies, including a few names heavily associated with artificial intelligence work, led the S&P 500's gains. Seven of the largest tech stocks known as the "Magnificent Seven" — Apple, Microsoft, Alphabet, Amazon, Nvidia, Tesla and Meta — increased 75 percent on average in 2023 and represented 30 percent of the index's total market value at the end of 2023. "AI is the new dot-com," said Michael Farr of Farr, Miller and Washington. "It's the new magic that is going to change the world that we don't really understand yet. But we all understand it's very powerful." Those seven stocks made up around half of the S&P 500's growth last year. Nvidia, whose high-performance chips have become popular for AI uses, had the best year of the bunch, at one point gaining nearly $190 billion in value overnight, a 24 percent gain.
In the last 12 months, the index has risen 21.83%.

The article notes that "Although the rest of the market has lagged Big Tech, analysts say promising economic data from recent months has boosted optimism about the broader economy."

According to Bloomberg (paywalled), OpenAI CEO Sam Altman is reportedly raising billions to develop a global network of chip fabrication factories, collaborating with leading chip manufacturers to address the high demand for chips required for advanced AI models. The Verge reports: A major cost and limitation for running AI models is having enough chips to handle the computations behind bots like ChatGPT or DALL-E that answer prompts and generate images. Nvidia's value rose above $1 trillion for the first time last year, partly due to a virtual monopoly it has as GPT-4, Gemini, Llama 2, and other models depend heavily on its popular H100 GPUs.

Accordingly, the race to manufacture more high-powered chips to run complex AI systems has only intensified. The limited number of fabs capable of making high-end chips is driving Altman or anyone else to bid for capacity years before you need it in order to produce the new chips. And going against the likes of Apple requires deep-pocketed investors who will front costs that the nonprofit OpenAI still can't afford. SoftBank Group and Abu Dhabi-based AI holding company G42 have reportedly been in talks about raising money for Altman's project.

An anonymous reader quotes a report from Wired: Stablecoins, cryptocurrencies pegged to a stable value like the US dollar, were created with the promise of bringing the frictionless, border-crossing fluidity of Bitcoin to a form of digital money with far less volatility. That combination has proved to be wildly popular, rocketing the total value of stablecoin transactions since 2022 past even that of Bitcoin itself. It turns out, however, that as stablecoins have become popular among legitimate users over the past two years, they were even more popular among a different kind of user: those exploiting them for billions of dollars of international sanctions evasion and scams.

As part of itsannual crime report, cryptocurrency-tracing firm Chainalysis today released new numbers on the disproportionate use of stablecoins for both of those massive categories of illicit crypto transactions over the last year. By analyzing blockchains, Chainalysis determined that stablecoins were used in fully 70 percent of crypto scam transactions in 2023, 83 percent of crypto payments to sanctioned countries like Iran and Russia, and 84 percent of crypto payments to specifically sanctioned individuals and companies. Those numbers far outstrip stablecoins' growing overall use -- including for legitimate purposes -- which accounted for 59 percent of all cryptocurrency transaction volume in 2023.

In total, Chainalysis measured $40 billion in illicit stablecoin transactions in 2022 and 2023 combined. The largest single category of that stablecoin-enabled crime was sanctions evasion. In fact, across all cryptocurrencies, sanctions evasion accounted for more than half of the $24.2 billion in criminal transactions Chainalysis observed in 2023, with stablecoins representing the vast majority of those transactions. [...] Chainalysis concedes that the analysis in its report excludes some cryptocurrencies like Monero and Zcash that are designed to be harder or impossible to trace with blockchain analysis. It also says it based its numbers on the type of cryptocurrency sent directly to an illicit actor, which may leave out other currencies used in money laundering processes that repeatedly swap one type of cryptocurrency for another to make tracing more difficult. "Whether it's an individual located in Iran or a bad guy trying to launder money -- either way, there's a benefit to the stability of the US dollar that people are looking to obtain," says Andrew Fierman, Chainalysis' head of sanctions strategy. "If you're in a jurisdiction where you don't have access to the US dollar due to sanctions, stablecoins become an interesting play."

Fierman points to Nobitex, the largest cryptocurrency exchange operating in the sanctioned country of Iran, as well as Garantex, a notorious exchange based in Russia that has been specifically sanctioned for its widespread criminal use. According to Chainalysis, "Stablecoin usage on Nobitex outstrips bitcoin by a 9:1 ratio, and on Garantex by a 5:1 ratio," reports Wired. "That's a stark difference from the roughly 1:1 ratio between stablecoins and bitcoins on a few nonsanctioned mainstream exchanges that Chainalysis checked for comparison."

In an opinion piece for the Guardian, American journalist and author John R. MacArthur discusses the alarming decline in reading skills among American youth, highlighted by a Department of Education survey showing significant drops in text comprehension since 2019-2020, with the situation worsening since 2012. While remote learning during the pandemic and other factors like screen-based reading are blamed, a new study by Columbia University suggests that reading on paper is more effective for comprehension than reading on screens, a finding not yet widely adopted in digital-focused educational approaches. From the report: What if the principal culprit behind the fall of middle-school literacy is neither a virus, nor a union leader, nor "remote learning"? Until recently there has been no scientific answer to this urgent question, but a soon-to-be published, groundbreaking study from neuroscientists at Columbia University's Teachers College has come down decisively on the matter: for "deeper reading" there is a clear advantage to reading a text on paper, rather than on a screen, where "shallow reading was observed." [...] [Dr Karen Froud] and her team are cautious in their conclusions and reluctant to make hard recommendations for classroom protocol and curriculum. Nevertheless, the researchers state: "We do think that these study outcomes warrant adding our voices ... in suggesting that we should not yet throw away printed books, since we were able to observe in our participant sample an advantage for depth of processing when reading from print."

I would go even further than Froud in delineating what's at stake. For more than a decade, social scientists, including the Norwegian scholar Anne Mangen, have been reporting on the superiority of reading comprehension and retention on paper. As Froud's team says in its article: "Reading both expository and complex texts from paper seems to be consistently associated with deeper comprehension and learning" across the full range of social scientific literature. But the work of Mangen and others hasn't influenced local school boards, such as Houston's, which keep throwing out printed books and closing libraries in favor of digital teaching programs and Google Chromebooks. Drunk on the magical realism and exaggerated promises of the "digital revolution," school districts around the country are eagerly converting to computerized test-taking and screen-reading programs at the precise moment when rigorous scientific research is showing that the old-fashioned paper method is better for teaching children how to read.

Indeed, for the tech boosters, Covid really wasn't all bad for public-school education: "As much as the pandemic was an awful time period," says Todd Winch, the Levittown, Long Island, school superintendent, "one silver lining was it pushed us forward to quickly add tech supports." Newsday enthusiastically reports: "Island schools are going all-in on high tech, with teachers saying they are using computer programs such as Google Classroom, I-Ready, and Canvas to deliver tests and assignments and to grade papers." Terrific, especially for Google, which was slated to sell 600 Chromebooks to the Jericho school district, and which since 2020 has sold nearly $14bn worth of the cheap laptops to K-12 schools and universities.

If only Winch and his colleagues had attended the Teachers College symposium that presented the Froud study last September. The star panelist was the nation's leading expert on reading and the brain, John Gabrieli, an MIT neuroscientist who is skeptical about the promises of big tech and its salesmen: "I am impressed how educational technology has had no effect on scale, on reading outcomes, on reading difficulties, on equity issues," he told the New York audience. "How is it that none of it has lifted, on any scale, reading? ... It's like people just say, "Here is a product. If you can get it into a thousand classrooms, we'll make a bunch of money.' And that's OK; that's our system. We just have to evaluate which technology is helping people, and then promote that technology over the marketing of technology that has made no difference on behalf of students ... It's all been product and not purpose." I'll only take issue with the notion that it's "OK" to rob kids of their full intellectual potential in the service of sales -- before they even get started understanding what it means to think, let alone read.