Thursday, June 30, 2011

'Indestructible' botnet uncovered

More than four million PCs have been enrolled in a botnet security experts say is almost 'indestructible'

The botnet, known as TDL, targets Windows PCs and tries hard to avoid detection and even harder to shut down.

Code that hijacks a PC hides in places security software rarely looks and the botnet is controlled using custom-made encryption.

Security researchers said recent botnet shutdowns had made TDL's controllers harden it against investigation.

The 4.5 million PCs have become victims over the last three months following the appearance of the fourth version of the TDL virus.

The changes introduced in TDL-4 made it the "most sophisticated threat today," wrote Kaspersky Labs security researchers Sergey Golovanov and Igor Soumenkov in a detailed analysis of the virus.

"The owners of TDL are essentially trying to create an 'indestructible' botnet that is protected against attacks, competitors, and anti-virus companies," wrote the researchers.

Recent successes by security companies and law enforcement against botnets have led to spam levels dropping to about 75% of all e-mail sent, shows analysis by Symantec.

A botnet is a network of home computers that have been infected by a virus that allows a hi-tech criminal to use them remotely. Often botnet controllers steal data from victims' PCs or use the machines to send out spam or carry out other attacks.

The TDL virus spreads via booby-trapped websites and infects a machine by exploiting unpatched vulnerabilities. The virus has been found lurking on sites offering porn and pirated movies as well as those that let people store video and image files.

"Start Quote

It's definitely one of the most sophisticated botnets out there"

End Quote Joe Stewart

The virus installs itself in a Windows system file known as the master boot record. This file holds the list of instructions to get a computer started and is a good place to hide because it is rarely scanned by standard anti-virus programs.

The majority of victims, 28%, are in the US but significant numbers are in India (7%) and the UK (5%). Smaller numbers, 3%, are found in France, Germany and Canada.

However, wrote the researchers, it is the way the botnet operates that makes it so hard to tackle and shut down.

The makers of TDL-4 have cooked up their own encryption system to protect communication between those controlling the botnet. This makes it hard to do any significant analysis of traffic between hijacked PCs and the botnet's controllers.

In addition, TDL-4 sends out instructions to infected machines using a public peer-to-peer network rather than centralised command systems. This foils analysis because it removes the need for command servers that regularly communicate with infected machines.

"For all intents and purposes, [TDL-4] is very tough to remove," said Joe Stewart, director of malware research at Dell SecureWorks to Computerworld. "It's definitely one of the most sophisticated botnets out there."

However, the sophistication of TDL-4 might aid in its downfall, said the Kaspersky researchers who found bugs in the complex code. This let them pry on databases logging how many infections TDL-4 had racked up and was aiding their investigation into its creators.



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World of Warcraft offered 'free'

Popular online role-playing game World of Warcraft (WoW) is to be offered free up to level 20.

Previously fans of the game, which has 11.4 million subscribers, had to pay a monthly fee of �8.99.

Under the new system, players will be able to build an unlimited number of characters but they will not be able to join guilds or accumulate more than ten gold coins.

The move is seen as a way of attracting new players to the game.

Free bonanza

World of Warcraft is an online game in which players create characters, such as warriors, warlocks and shaman, who they then take on adventures to gather loot and items to make the avatars more powerful.

It is among the most successful of the so-called massively multi-player online games.

Blizzard Entertainment, maker of WoW, has previously offered free trials of the game but only for a limited number of days.

The free version will have no time restrictions.

Tim Edwards, editor of PC Gamer, estimates that it will offer someone new to the game around 10 to 15 hours of game-play.

"It is a really good offer and will allow people to get a flavour of the world," he said.

More and more companies are offering games for free as they aim to attract more PC owners to gaming.

"It is a free-to-play bonanza for gaming right now," said Mr Edwards.

"Team Fortress 2 went free over last weekend and it tripled its players overnight. If customers like the game it is pretty easy to get them to buy stuff," he said.

Users wishing to take advantage of the WoW free offer will still have to buy the base game, which costs around �10.

There are also three expansion packs for it.



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Wednesday, June 29, 2011

News Corp finally sells MySpace

News Corporation has sold its ailing social networking site MySpace to online advertising firm Specific Media.

News Corp paid $580m (�361m) for MySpace in 2005, but users and advertisers left the site for rival social sites like Facebook and Twitter.

The sale terms were not disclosed, but there were unconfirmed reports that price paid was as low as $35m.

Specific Media said: "We look forward to combining our platforms to drive the next generation of digital innovation."

Specific Media was founded in 1999 by three brothers - Tim, Chris and Russell Vanderhook - and is based in Irvine, California.

MySpace was a leading social networking site when it was bought by Rupert Murdoch's News Corp.

But the business was eclipsed by rivals, and despite attempts to revive MySpace's fortunes the site has been a financial millstone.

News Corp's chief operating officer Chase Carey said in November that the losses at MySpace were "unsustainable".

Although News Corp does not publish specific results for Myspace in its accounts, the "other" segment, which includes the social network, reported a second quarter operating loss of $156m - $31m worse than a year earlier.

The Reuters news agency cited a News Corp-owned blogging site as reporting that MySpace was sold for $35m.



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Google unveils new Facebook rival

Online search giant Google has launched a new social networking website in its latest attempt to take on Facebook, which now claims more than 500m users.

Google+ allows individuals to share photos, messages and comments but also integrates the company's maps and images into the service.

It also aims to help users easily organise contacts within groups.

But some analysts say Google has simply reproduced features of Facebook while adding a video chat function.

Google, which handles roughly two out of every three internet searches in the US, has taken several stabs at Facebook in recent years.

But its previous efforts ended in failure, with both Google Wave and Google Buzz proving unpopular with users.

New functions

The company is now boasting that four features in Google+ could help make the company a permanent player in social networking:

  • Circles - a functionality that allows individuals to place friends into groups, allowing users to share different forms of content with targeted clusters of friends
  • Hangouts - live multi-user video conferencing that permits friends to drop in and out of live group conversations
  • Huddle - group instant messaging
  • Sparks - a feature that connects individuals on the network to others with common interests.

The current version of Google+ has only been released to a small number of users, but the company has said it soon hopes to make the social network available to the millions of individuals that use its services each day.

"Online sharing needs a serious re-think, so it's time we got started," Vic Gundotra, senior vice president of engineering at Google, said in a press release.

"Other social networking tools make selective sharing within small groups difficult," she added, taking what appears to be a jab at Facebook's recent grouping function.

But some analysts have said Google could have a difficult time converting Facebook devotees to their new social network.

"People have their social circles on Facebook - asking them to create another social circle is challenging," Debra Aho Williamson, principal analyst with research firm eMarketer, told the Associated Press news agency.

"The whole idea of a Google social network... they've been throwing stuff against the wall for several years and so forth nothing has stuck," she added.

In April, Google reached an out-of-court settlement with a US policy group over its rollout out Google Buzz, a previous social effort.

The legal action claimed Google deceived users and violated its own privacy policy by automatically enrolling all Gmail users in its Buzz social network without seeking prior permission.



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Tuesday, June 28, 2011

Anonymous 'declares war' on Orlando

The hacker group Anonymous has taken down a US tourism website in Orlando, Florida as a protest against the arrests of people handing out food to the city's homeless.

Anonymous said the attack on orlandofloridaguide.com was retaliation for the arrest of members of the group Food not Bombs.

The website, which is not owned by the city, went offline for part of Tuesday.

Anonymous rose to prominence by hacking the sites of major corporations.

Anonymous is often seen as a political collective and has pledged to take action against those its members view as acting improperly.

They have been linked to several high-profile web attacks, including several on Sony websites as well as the Church of Scientology.

'Balance of needs'

Anonymous has warned that more attacks could follow as part of what it has dubbed "Operation Orlando".

In a news release, the hacker group promised to carry out a distributed denial of service attack (DDoS) on a separate Orlando-related website every day until the arrests come to an end, choosing orlandofloridaguide.com as its first target.

The collective also said it will email millions of people across the world asking them to boycott the destination.

"This is a declaration of war," said Anonymous, describing Operation Orlando.

"Anonymous will now begin a massive campaign against you and your city web assets," it added in a message directed at Orlando officials.

But orlandofloridaguide.com, which went offline for several hours on Tuesday, has no affiliation to the city, an Orlando spokesperson told the BBC.

"I don't know what the hackers' intentions are, but from the city's standpoint, we're just trying to balance everyone's needs," the spokesperson said.

'Difficult position'

The row between the city of Orlando and the non-profit organisation Food Not Bombs started when the group began feeding homeless people in a park in the city's downtown.

They did not obtain a permit to do so, a move which is required by law in Orlando.

Since then members of Food Not Bombs, including the group's president, Keith Mchenry, have been arrested several times in the past month for handing out meals.

"We're in a difficult position, and we've tried everything," the Orlando spokesperson said.

"If Food Not Bombs continues to violate the ordinance, they will be subject to the consequences of violating it, which is arrest."

Meanwhile, Food Not Bombs has said it has no affiliation with the Anonymous hacker group.

Spanish police arrested three suspected members of the Anonymous group earlier this month.



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Anti-piracy action seeks BT block

Film-makers are going to court in a bid to block access to a site that hosts pirated versions of popular movies.

In a UK legal first, the Motion Picture Association (MPA) has applied for an injunction forcing BT to cut off access for its customers to Newzbin.

The MPA, the industry body for a number of movie studios, said it was targeting BT first as the largest internet service provider in the UK.

BT confirmed it would be in court later but did not make any further comment.

The MPA wants BT to block Newzbin with the same system that stops access to sites hosting child sex abuse images.

The members-only website aggregates a large amount of the illegally copied material found on Usenet discussion forums.

The MPA is the international arm of the Motion Picture Association of America - the industry body representing movie studios such as Warner, Sony, Fox, Disney and Paramount.

"Start Quote

Newzbin has no regard for UK law and it is unacceptable that it continues to infringe copyright on a massive and commercial scale when it has been ordered to stop by the High Court"

End Quote Chris Marcich MPA European president

It brought its action against BT because, as well as being the largest ISP in the UK with more than 5.6 million customers, BT supplies the site-blocking system known as Cleanfeed to many other big UK ISPs.

Success in the courts may mean the blocking spreads to those other operators.

The MPA began its legal action against UK-operated Newzbin in 2010, which resulted in the High Court telling the site to remove material it hosted that infringed copyright.

Newzbin went into administration soon after but its assets, including web domains, were sold to new owners and a fresh version of the site has popped up operating out of the Seychelles.

"Newzbin has no regard for UK law and it is unacceptable that it continues to infringe copyright on a massive and commercial scale when it has been ordered to stop by the High Court," said Chris Marcich, European president of the MPA, in a statement.

"We have explored every route to get Newzbin to take down the infringing material and are left with no option but to challenge this in the courts."

Court-imposed blocks have been used widely throughout Europe but a success for the MPA would mark the first time the tactic has worked in the UK.

The UK's Digital Economy Act does require ISPs to help rights holders identify users who may have downloaded music, software and videos illegally. However, it stops short of giving rights holders legal powers to pursue alleged pirates.

In a statement BT would confirm only that it would be appearing in court on Tuesday "following an application for an injunction by members of the MPA".

The Internet Service Providers Association said it would not comment until the court had made its decision.



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Monday, June 27, 2011

US violent game ban struck down

The US Supreme Court has struck down a Californian law banning the sale or rental of violent video games to those aged under 18.

The court voted 7-2 to uphold an appeals court ruling that declared the law contrary to free speech rights enshrined in the US Constitution.

Video game publishers challenged the 2005 measure, which never took effect because of legal proceedings.

Supporters argued the law was needed as violent games could harm children.

Speaking at the Supreme Court on Monday, Justice Antonin Scalia said: "Our cases hold that minors are entitled to a significant degree of First Amendment protection.

"Government has no free-floating power to restrict the ideas to which they may be exposed."

The US video game industry has about $10.5bn (�6.55bn) in annual sales.

'Morbid interests'

The 2005 California law prohibited the sale of violent video games to children "where a reasonable person would find that the violent content appeals to a deviant or morbid interest of minors, is patently offensive to prevailing community standards as to what is suitable for minors, and causes the game as a whole to lack serious literary, artistic, political or scientific value for minors".

Under the law, parents could still purchase violent video games for their children, but retailers caught selling the titles to minors could face a fine of up to $1,000 (�625) for each game.

After a legal challenge by industry groups, a district court and then the court of appeals stopped the law coming into effect.

Courts in six other states have also reached similar conclusions, striking down bans.

There is already a nationwide voluntary system of game classification in the US.



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Google airs Arab Spring web fears

The use of the web by Arab democracy movements could lead to some states cracking down harder on internet freedoms, Google's chairman says.

Speaking at a conference in Ireland, Eric Schmidt said some governments wanted to regulate the internet the way they regulated television.

He also said he feared his colleagues faced a mounting risk of occasional arrest and torture in such countries.

The internet was widely used during the so-called Arab Spring.

Protesters used social networking sites to organise rallies and communicate with those outside their own country, such as foreign media, amid tight restrictions on state media.

'Completely wired'

Mr Schmidt said he believed the "problem" of governments trying to limit internet usage was going to "get worse".

"Start Quote

In most of these countries, television is highly regulated because the leaders, partial dictators, half dictators or whatever you want to call them understand the power of television"

End Quote Eric Schmidt Executive Chairman, Google

"The reason is that as the technology becomes more pervasive and as the citizenry becomes completely wired and the content gets localised to the language of the country, it becomes an issue like television."

"If you look at television in most of these countries, television is highly regulated because the leaders, partial dictators, half dictators or whatever you want to call them understand the power of television imagery to keep their citizenry in some bucket," he added.

Google has regularly clashed with China over attempts to limit public access to its internet services.

Mr Schmidt also said he was concerned about the danger faced by employees of the company in parts of the world that deemed material found on its search engine illegal.

He said he would not directly name the countries because of the sensitivity of the situation.

During the uprising in Egypt, Google executive Wael Ghonim was detained by Egyptian authorities after taking part in the protests that led to the ousting of President Hosni Mubarak.

Mr Ghonim had been involved in founding an anti-torture Facebook page that helped inspire demonstrations.



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Star Wars Galaxies set to close

A great darkness is set to consume part of the Star Wars universe in late 2011.

Sony has announced that its Star Wars Galaxies online game will be shut down on 15 December.

The news was broken in e-mails sent to players and via messages posted on the game's support forums and website.

Sony said the closure had come about because its contract to run the Star Wars game runs out in 2012, not because of declining player numbers.

In an interview with online gaming site Massively, Sony Online Entertainment boss John Smedley said the combination of the contract finishing and the imminent arrival of a separate Star Wars game made it "feel like it's the right time for the game to end".

The other Star Wars game is Bioware's The Old Republic that is currently under development. Sony also runs the free-to-play Clone Wars Adventures online game.

In the interview, Mr Smedley denied that the recent hack attacks on Sony had anything to do with the closure or that player numbers had shrunk to the point that it was no longer worth keeping the game going.

"Populations have stayed pretty steady for a long time now," he said. He added that Sony had taken measures recently to ensure that there were enough players on each server running a copy of the game.

Game changer

Mr Smedley said Sony would be running a series of events for players to ensure the game ends in a fitting manner.

"Start Quote

It's amazing it's kept going for so long"

End Quote Alec Meer Rock Paper Shotgun

All billing for the game will stop in October, according to Sony. Those subscribing at that point will be able to play for free for the last few months.

Launched in 2003, Star Wars Galaxies (SWG) helped to establish massively multi-player gaming which sees thousands of players adventure together in a shared online environment.

The game was set in the Star Wars universe and played out events following the destruction of the first Death Star but before those of The Empire Strikes back. Players could take the form of one of 10 different species, become a Jedi and fight battles with spaceships.

More than one million copies of the game were sold when it launched in June 2003 and it initially enjoyed great popularity.

However, player numbers have steadily declined as a series of updates alienated many established players and stripped the game of its complexity. Sony has since described some of the changes as a "mistake".

Games journalist Alec Meer, writing on the Rock Paper Shotgun blog said: "It's amazing it's kept going for so long, quite frankly."

He concluded: "Farewell then, Galaxies. You were always a bit of a mess - but you were also one of the most fascinating and ambitious MMOs there's ever been."



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Sunday, June 26, 2011

LulzSec hacking group 'disbands'

A hacker group that has attacked several high-profile websites over the last two months has announced that it is disbanding.

Lulz Security made its announcement through its Twitter account, giving no reason for its decision.

A statement published on the group's website said that its "planned 50-day cruise has expired".

The group leapt to prominence by carrying out attacks on companies such as Sony and Nintendo.

Broadcasters Fox and PBS, the CIA, and the United States Senate have also been cyber-attacked by the group.

As a parting shot, the group released a selection of documents including confidential material taken from the Arizona police department and US telecoms giant AT&T.

The group's identities remain anonymous and its statement also said that "our crew of six wishes you a happy 2011".

It had previously told the BBC's Newsnight programme that it wants to target the "higher ups" who write the rules and "bring them down a few notches".

And in an interview with the Associated Press on Friday, a LulzSec member said the group had at least five gigabytes of "government and law enforcement data" from around the world, which it planned to release in the next three weeks.

Ryan Cleary, 19, from Wickford, Essex, was arrested as part of a Scotland Yard and FBI probe into LulzSec and charged with hacking the website of the UK Serious Organised Crime Agency.



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Saturday, June 25, 2011

Winklevoss Facebook row continues

The Winklevoss brothers have re-started their long-running legal dispute with Facebook and its boss Mark Zuckerberg.

Just days after dropping a supreme court action, the twins filed a fresh lawsuit against the company.

It claims that Facebook "intentionally or inadvertently suppressed evidence" during their previous litigation.

Originally, Tyler and Cameron accused Mr Zuckerberg of stealing their idea to create the site.

The story of the feud formed the core of the 2010 film "The Social Network".

The row dates from 2003 when the Winklevosses hired Mr Zuckerberg to write code for their ConnectU site while at Harvard.

He never did, but instead set up Facebook, which quickly became a success around the world.

A court case over who did what was resolved in 2008 when the parties agreed on a financial settlement, reportedly worth around $65m (�41m).

In January 2011 the Winklevosses tried to reopen the case, seeking more money. However, a US appeals court ruled in April that they would have to accept the settlement.

The twins initially said they would appeal against the settlement, but decided this week not to pursue that legal avenue.

New lawsuit

In the most recent suit filed on Thursday with the US District Court of Massachusetts, the Winklevosses and their business partner Divya Narendra said that Facebook hid some crucial information from them during settlement proceedings.

The twins said that Mr Zuckerberg did not disclose some important documents in regards to the relationship between him and the brothers while they were at Harvard.

Facebook's outside counsel Neel Chatterjee said in a statement: "These are old and baseless allegations that have been considered and rejected previously by the courts."



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Friday, June 24, 2011

'Super sand' to help clean water

Contaminated water can be cleaned much more effectively using a novel, cheap material, say researchers.

Dubbed "super sand", it could become a low-cost way to purify water in the developing world.

The technology involves coating grains of sand in an oxide of a widely available material called graphite - commonly used as lead in pencils.

The team describes the work in the American Chemical Society journal Applied Materials and Interfaces.

In many countries around the world, access to clean drinking water and sanitation facilities is still limited.

The World Health Organization states that "just 60% of the population in Sub-Saharan African and 50% of the population in Oceania [islands in the tropical Pacific Ocean] use improved sources of drinking-water."

The graphite-coated sand grains might be a solution - especially as people have already used sand to purify water since ancient times.

Coating the sand

But with ordinary sand, filtering techniques can be tricky.

"Start Quote

Given that this can be synthesized using room temperature processes and also from cheap graphite sources, it is likely to be cost-efficient"

End Quote Mainak Majumder Monash University, Australia

Dr Wei Gao from Rice university in Texas, US, told BBC News that regular coarse sand was a lot less effective than fine sand when water was contaminated with pathogens, organic contaminants and heavy metal ions.

While fine sand is slightly better, water drains through it very slowly.

"Our product combines coarse sand with functional carbon material that could offer higher retention for those pollutants, and at the same time gives good throughput," explained Dr Gao.

She said that the technique the team has developed to make the sand involves dispersing graphite oxide into water and mixing it with regular sand.

"We then heat the whole mixture up to 105C for a couple of hours to evaporate the water, and use the final product - 'coated sand' - to purify polluted water."

Cost-efficient

The lead scientist of the study, Professor Pulickel Ajayan, said it was possible to modify the graphite oxide in order to make it more selective and sensitive to certain pollutants - such as organic contaminants or specific metals in dirty water.

Another team member, Dr Mainak Majumder from Monash University in Melbourne, Australia, said it had another advantage - it was cheap.

"This material demonstrates comparable performance to some commercially available activated carbon materials," he said.

"But given that this can be synthesized using room temperature processes and also from cheap graphite sources, it is likely to be cost-efficient."

He pointed out that in Australia many mining companies extract graphite and they produce a lot of graphite-rich waste.

"This waste can be harnessed for water purification," he said.



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Travelodge customer data stolen

Travelodge UK is investigating an apparent hacking attack on its customer database.

The hotel chain issued a warning to users of its online service to be on the lookout for spam e-mails.

Full details of the security breach were not immediately available. A spokesperson said it seemed that a limited number of people were affected.

No financial information or payment details were stolen in the attack, according to Travelodge.

A letter to customers, signed by the company's chief executive Guy Parsons, contains little information about the nature of the leak, although it stresses that Travelodge had not sold user data to a third party.

It also quotes the spam e-mail that some customers have received.

"Good day. Don't miss exciting career opening. The company is seeking for self-motivated people in United Kingdom to help us spread out our activity in the UK area," said the message.

The company promised to give further updates once is has completed an internal investigation.

Phishing trip

Stealing names and e-mail addresses is a favoured tactic of cyber criminals, who use the information to send "phishing" messages to the affected customers.

In many cases, they pose as the company that the data was stolen from in the first place.

Typically, recipients are asked to click on a link that will infect their computer with malicious software. Alternatively, the criminals may solicit financial information directly.

Security experts advise users to pay close attention to the address where an e-mail is sent from and the web URL of any links it contains.

Even when these look genuine, people should avoid handing over secure information in response to unsolicited messages.



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US police hacked over immigration law

Arizona's police force has become the latest victim of hacker group LulzSec.

About 700 confidential documents belonging to the Arizona Department of Public Safety (AZDPS) were stolen and published online.

The cache includes e-mails, memos and training manuals as well as intelligence bulletins detailing work with informants.

The group said it had targeted AZDPS because of a controversial state law designed to stop illegal immigration.

"We are aware of computer issues," Steve Harrison, a spokesman for the force told Reuters. "We're looking into it. And of course we're taking additional security safeguards."

Sabotage

On 24 June, Lulzsec announced that it was putting 400MB of documents on the Pirate Bay file-sharing website via a short message on its Twitter feed and a statement on its website.

It said that AZDPS had been targeted because of its role in upholding the Support Our Law Enforcement and Safe Neighborhoods Act, also known as SB1070.

The legislation, passed in 2010, forces legal aliens to carry their ID documents at all times. It also obliges Arizona police to check those papers when they have a reasonable suspicion that a person may be there illegally.

As a border state, Arizona is particularly affected by illegal immigration. However, critics believe that SB1070 amounts to racial profiling.

Terror targets

Also included in the LulzSec document cache is a Powerpoint presentation about the potential vulnerability of ferries to attack by terrorists, lists of trends in suspicious incidents and a report that drug gangs are using scouts on horseback to evade capture.

The theft is part of an initiative Lulzsec kicked off last week called Antisec which is aimed at taking confidential documents from governments, the military and law enforcement agencies.

It plans to release documents every week to "purposefully sabotage their efforts to terrorize communities fighting an unjust 'war on drugs'."

In recent weeks Lulzsec has carried out attacks on a wide range of targets and has taken down the websites of the US Senate, the CIA and the UK's Serious Organised Crime Agency.



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Google 'faces US antitrust probe'

US federal regulators are preparing to issue court orders to Google and other companies as part of a probe into practices in Google's search engine business, US media report.

The Federal Trade Commission (FTC) is expected to open a formal inquiry within the next several days, the Wall Street Journal said.

The FTC is looking at whether Google manipulates its search results to steer users to its own sites and services.

Google has not commented on the matter.

Google's competitors argue that the search giant, which handles roughly two out of every three internet searches in the US, has used its dominant standing in search to improperly promote its other products, like mapping, shopping and travel websites.

Multiple probes

FTC officials privately debated this month whether to allow the agency's Bureau of Competitions to issue subpoenas to Google, and the FTC is now close to moving forward with handing out the court orders, The New York Times reported.

Meanwhile, the Financial Times said that attorneys-general in California, New York and Ohio have also launched antitrust investigations into Google.

The European Commission is already conducting a probes into whether Google uses its dominance to wrongfully stifle competition.

In a statement on its website, FairSearch.org, an organization that represents several of Google's critics, like Expedia, Travelocity, Kayak and Microsoft, said: "Google's practices are deserving of full-scale investigations by US antitrust authorities."

Though the FTC probe would be the broadest federal inquiry into Google to date, the company has previously been targeted by US regulators.

Google settled charges with a US policy group in April, which claimed the company deceived users and violated its own privacy policy by automatically enrolling all Gmail users in a social network called Buzz without seeking prior permission.

The company has faced repeated other antitrust inquiries in recent years, many of which have involved proposed acquisitions.



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UK web blocking plans criticised

Online consumer groups have criticised government plans to block website which stream copyrighted material for free.

It follows a meeting last week between communications minister Ed Vaisey, internet service providers and copyright holders.

Campaign group, The Open Rights Group (ORG) is angry that its request to attend the meeting was turned down.

It called for more public debate on the issue.

Web blocking is seen as a way to combat the increasing amount of copyrighted material that is being streamed for free online.

ORG said that it has learnt that part of the discussion was about setting up a "council" that could be given the power to decide which websites were blocked.

Censorship

Jim Killock, executive director of the ORG is a vocal campaigner against the measures being proposed.

He said: "It is unacceptable for trade groups and the government to conduct policy in this way. Censorship proposals must be discussed in public.

Many of us will oppose any censorship that impacts directly and widely on free expression."

There are no details of how the "councils" would be made up, but consumer group Consumer Focus, who was at the meeting, warned that it would be inappropriate for right holders to decide which UK websites should be blocked.

The plans are part of the Digital Economy Act (DEA) which allows for mandatory web-blocking. Any web blocking plan would require secondary legislation.

The group of copyright holders behind the plans titled as 'Addressing websites that are substantially focused on infringement' included the Publishers Association, the BPI, the Football Association Premier League and the Motion Picture Alliance.

Live streaming

If the proposals get the go-ahead it could allow the Premier League to block access to live streams of its football matches.

Consumer Focus argued in the case of streamed football games, blocking would be a "disproportionate" response.

"We believe that the first step to address this problem is to assess whether consumers' evident demand for streaming football games online is met by legal services."

In response to the criticism, a spokesperson from the Department for Culture Media and Sport issued a statement:

"The Government hosted a useful discussion between ISPs and rights holders on issues around industry proposals for a site blocking scheme to help tackle online copyright infringement.

"Consumer representatives were invited and Consumer Focus attended the meeting."



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Thursday, June 23, 2011

FBI targets 'scareware' sellers

A gang that made more than $72m (�45m) peddling fake security software has been shut down in a series of raids.

Co-ordinated by the FBI, the raids were carried out in the US, UK and six other countries.

The money was made by selling software that claimed to find security risks on PCs and then asked for cash to fix the non-existent problems.

The raids seized 40 computers used to do fake scans and host webpages that tricked people into using the software.

Account closed

About one million people are thought to have installed the fake security software, also known as scareware, and handed over up to $129 for their copy. Anyone who did not pay but had downloaded the code was bombarded with pop-ups warning them about the supposed security issues.

Raids conducted in Latvia as part of the attack on the gang allowed police to gain control of five bank accounts used to funnel cash to the group's ringleaders.

Although no arrests are believed to have been made during the raids, the FBI said the computers seized would be analysed and its investigation would continue.

The raids on the gang were part of an international effort dubbed Operation Trident Tribunal. In total, raids in 12 nations were carried out to thwart two separate gangs peddling scareware.

The second gang used booby-trapped adverts to trick victims. Raids by Latvian police on this gang led to the arrest Peteris Sahurovs and Marina Maslobojeva who are alleged to be its operators.

According to the FBI, the pair worked their scam by pretending to be an advertising agency that wanted to put ads on the website of the Minneapolis Star Tribune newspaper.

Once the ads started running, the pair are alleged to have changed them to install fake security software on victims' machines that mimicked infection by a virus. On payment of a fee the so-called infection was cured. Those that did not pay found their machine was unusable until they handed over cash.

This ruse is believed to have generated a return of about $2m.

"Scareware is just another tactic that cyber criminals are using to take money from citizens and businesses around the world," said assistant director Gordon Snow of the FBI's Cyber Division in a statement.



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Winklevoss twins end Facebook row

The Winklevoss brothers, Harvard contemporaries of Facebook founder Mark Zuckerberg, have ended their legal battle with the social network.

They reached a $65m ($41m) settlement in 2008, after claiming that Mr Zuckerberg stole their idea.

The legal spat was immortalised in the film "The Social Network".

In January they attempted to reopen the case, claiming that they should have received more shares.

They sought to undo the settlement of $20m in cash and $45m in stock - now worth more than $100m.

A US appeals court ruled in April that they could not back out of the deal.

The pair had threatened to go to US Supreme Court to overturn the decision but have now said they will not pursue it.

They offered no statement on what had prompted their decision to abandon the suit.

The twins originally argued that Mr Zuckerberg had stolen their idea after he was hired by them to code their ConnectU site in 2003.

Facebook has always rejected the claims but agreed to the 2008 settlement to end what it called "rancorous litigation".



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Wednesday, June 22, 2011

Man charged with website attacks

A 19-year-old Essex man has been charged with five computer offences, including attacking the Serious Organised Crime Agency's website.

Ryan Cleary, from Wickford, is alleged to have set up a distributed denial of service attack on Soca on 20 June.

It is alleged he attacked the website of the International Federation of the Phonographic Industry in November 2010.

He also allegedly attacked the British Phonographic Industry's website in October.

Mr Cleary was charged under the Criminal Law Act and Computer Misuse Act by the Met Police's e-crime unit and will appear at City of Westminster Magistrates court on Thursday.

A distributed denial of service typically involves flooding a target website with data, in an attempt to overwhelm it so it cannot serve its legitimate users.

The charges against Mr Cleary include conspiring with other unknown people on or before 20 June to construct a botnet - a collection of hijacked home computers - to conduct distributed denial of service attacks.

He is also charged with making, adapting, supplying or offering to supply a botnet, intending that it should be used to commit, or to assist in the commission of a distributed denial of service attack.



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Tuesday, June 21, 2011

Bitcoin 'will recover' from crash

The virtual currency Bitcoin will "bounce back" after a hack attack caused its value to collapse, according to one of its senior developers.

Gavin Andresen said he hoped the crisis would lead to better security on sites where Bitcoins are bought and sold.

Prices on the main exchange, Mt.Gox, fell from $17.50 (�10.80) to almost zero when a large number of stolen Bitcoins were dumped on the market.

Trading was suspended and eventually rolled back to pre-crash rates.

Mt.Gox revealed details of the security breach on June 20 with an announcement on its website.

"It appears that someone who performs audits on our system and had read-only access to our database had their computer compromised. This allowed for someone to pull our database," the statement read.

Around the same time, an unidentified person accessed one of the compromised accounts and sold all of its Bitcoins.

They then attempted to buy the coins again and withdraw them in US dollars.

The fraudster was partially foiled when they hit Mt.Gox's $1000 daily limit.

The decision to reset the Bitcoin rate to a point just before the malicious trades were placed was criticised by some users who had taken the opportunity to buy low.

"Why should everyone who profited from the crash suffer your inability to secure the site?" wrote a user called Elments.

Questionable future

Although the problem was caused by security failings at Mt.Gox, it has raised wider questions about the viability of Bitcoin as a virtual currency.

"Start Quote

Like any start-up, it could change the world but it could also be risk."

End Quote Gavin Andresen Bitcoin developer

"I am sceptical about its longer term prospects," said David Birch, director of Consult Hyperion, a consultancy specialising in electronic transactions.

"There were two things here - the specific bubble (caused by the dumping of stolen coins) and the exchange mechanism."

Bitcoin transactions are made by swapping anonymous, heavily encrypted codes which only a specific user can unlock.

Details of who owns each Bitcoin are distributed across a peer-to-peer network, with no central repository.

If an encrypted coin file is deleted, the money is lost.

The system has proved popular with online criminals, keen to keep their financial transactions secret, although it has a wider, legitimate, user base.

Mr Birch said the fact that so many Bitcoins were traded on a single exchange made it vulnerable to market shocks.

He also questioned the fundamental workings of the currency, saying that its emphasis on anonymity and decentralised nature meant there was little recourse for users when things go wrong.

Bitcoin developer Gavin Andresen conceded that current safeguards around the currency may be inadequate.

"I have been the person saying that Bitcoin is an experiment, so you can have confidence in it as much as you can have confidence in any start-up.

"Like any start-up, it could change the world but it could also be risk," he said.



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Teenager held over website hacks

A teenager has been arrested in a joint Scotland Yard and FBI investigation into the hacking of websites.

The 19-year-old man was held during a raid at a house in Wickford, Essex.

On Monday the UK's Serious Organised Crime Agency (Soca) took its website offline after it was attacked by Lulz Security hackers.

Scotland Yard would not confirm the arrest was connected but did say that it followed a series of distributed denial of service (DDoS) attacks.

The raid in Essex had been a "pre-planned, intelligence-led" operation, it said.

The teenager was arrested under the Computer Misuse Act and Fraud Act and is being questioned at a central London police station.

He was arrested by the Metropolitan Police's e-crime unit.

A Scotland Yard spokesman said: "The arrest follows an investigation into network intrusions and distributed denial of service attacks against a number of international business and intelligence agencies by what is believed to be the same hacking group.

"Searches at a residential address in Wickford, Essex, following the arrest last night have led to the examination of a significant amount of material. These forensic examinations remain ongoing."

Scotland Yard is co-operating with the FBI as well as Essex Police.

An FBI spokesman said it had no comment "at this time".

Channel 4 News claimed LulzSec may have succeeded in hacking into the database of the 2011 Census, which holds details of every UK citizen who filled out the survey earlier this year.

But the Office for National Statistics has released a statement saying: "We are aware of the suggestion that Census data has been accessed. We are working with our security advisers and contractors to establish whether there is any substance to this.

"The 2011 Census placed the highest priority on maintaining the security of personal data. At this stage we have no evidence to suggest that such a compromise has taken place."

When Lulz Security, or LulzSec, first appeared in May, the group portrayed itself as a light-hearted organisation, bent on creating online fun and Lulz (laughs).

But LulzSec is said to have been planning to establish itself as a rival to Anonymous, the hacking group embroiled in the WikiLeaks fallout.

LulzSec initially targeted US broadcasters PBS and Fox and gaming firms.

But the Twitter page @LulzSec then declared its intention to break into government websites and leak confidential documents.

LulzSec is also suspected of hacking into CIA, Sony and NHS websites.



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Mobile firms can trade spectrum

UK regulator Ofcom has given phone operators the green light to trade spectrum in a move intended to increase mobile network capacity.

Available bandwidth is becoming a huge issue as smartphones put increasing demand on networks.

The trading of airwaves comes ahead of a crucial spectrum auction next year that will usher in 4G data services.

Both the auction and the decision to allow operators to trade existing spectrum have caused controversy.

Spectrum trading allows operators to sell off the airwaves they own in the 900MHz, 1800MHz and 2100MHz frequency bands.

Historically the 900MHz slice of spectrum has belonged exclusively to O2 and Vodafone because they were the only two mobile operators on the market when it was handed out.

While other nations have reallocated this spectrum to offer a more level-playing field ahead of 4G auctions, this has not happened in the UK.

Ofcom had originally planned to redistribute the spectrum allocated to O2 and Vodafone, but was met with a legal action, initiated by the two operators.

Lifeblood

Ofcom dropped its plans following the merger of T-Mobile and Orange.

Everything Everywhere (EE), the parent company of T-Mobile and Orange will be the biggest beneficiary of spectrum trading.

It was required to sell off about 19 percent of its spectrum frequencies as a condition of the merger.

Three is unhappy as it has the least spectrum to trade.

"Spectrum is the lifeblood of smartphones and the mobile internet and for those with surplus holdings it is also a strategic asset, so voluntary trading is the exception," it said in a statement.

"This move simply allows those who have been gifted access to public spectrum to profit from it, with no benefit for UK taxpayers."

Three will voice its concerns later today at a Department of Culture select committee hearing set up to discuss the way spectrum is being allocated.

Further delays

O2 and Vodafone are unlikely to sell off any of their assets, according to Mr Howett.

"It is simply too valuable to them and they would only trade it if they were forced to," he said.

What may force their hand is the upcoming 4G auction in which Ofcom has set caps on the amount that can be bought.

It will mean the operators with more existing spectrum will be able to buy less of the more valuable 4G airwaves.

Ofcom has also ring-fenced some of the spectrum for new entrants such as Three.

"It has done this because it recognised that 3 might not be able to survive and it values the disruptive nature of a player like 3," said Mr Howett.

But O2 said it was tantamount to "state aid" and has threatened legal action.

Any further delays to the auction could put the UK behind other European countries in the roll-out of 4G services, said Mr Howett.

4G will be crucial as the market continues to grow.

According to Ofcom there are now 80 million mobiles in the UK, 12.8 million of which are smartphones.



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Monday, June 20, 2011

LulzSec attacks UK crime agency

Hacking group Lulz Security has said it was responsible for taking offline the website of the UK Serious Organised Crime agency (Soca).

Www.soca.gov.uk was unavailable on Monday afternoon, with an intermittent service restored later in the day.

As the agency launched an investigation, LulzSec tweeted: "Tango down - in the name of #AntiSec".

The group has hit a number of high-profile websites in recent weeks, including the CIA and US Senate.

Soca appeared to be the victim of a distributed denial of service (DDoS) attack, where a number of computers, under malicious control, overload their target with web requests.

A later LulzSec twitter posting seemed to confirm that.

"DDoS is of course our least powerful and most abundant ammunition. Government hacking is taking place right now behind the scenes," it said.

Over the weekend, the shadowy organisation declared that it would begin targeting government systems, calling the campaign Antisec.

In an online posting, LulzSec set out its agenda: "Top priority is to steal and leak any classified government information, including e-mail spools and documentation. Prime targets are banks and other high-ranking establishments."



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Web primed for domain name surge

A global internet body has voted to allow the creation of new website domain suffixes, the biggest change for the online world in years.

The Internet Corporation for Assigned Names and Numbers (Icann) plans to dramatically increase the number of domain endings from the current 22.

Internet address names will end with almost any word and be in any language.

Icann will begin taking applications next year, with corporations and cities expected to be among the first.

"Icann has opened the internet's addressing system to the limitless possibilities of the human imagination," said Rod Beckstrom, president and chief executive officer for Icann.

"No one can predict where this historic decision will take us."

There will be several hundred new generic top-level domain names (gTLDs), which could include such addresses as .google, .coke, or even .BBC.

There are currently 22 gTLDs, as well as about 250 country-level domain names such as .uk or .de.

It will cost $185,000 (�114,000) to apply for the suffixes, and companies would need to show they have a legitimate claim to the name they are buying.

Analysts say it is a price that global giants might be willing to pay - in order to maximise their internet presence.

The vote completes a six-year negotiation process and is the biggest change to the system since .com was first introduced 26 years ago.

Icann said it was beginning a global communications programme to raise awareness of the new domain names.

Applications will start on 12 January.



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Sunday, June 19, 2011

Sega hack hits 1.29 million users

Sega has confirmed that the personal data of 1.29 million of its customers was stolen in an attack on its systems.

It comes after the computer games firm said on Friday that e-mail addresses and dates of birth stored on the Sega Pass database were accessed by hackers.

However, Sega continues to say that payment information, such as credit card numbers, remained safe.

Sega spokeswoman Yoko Nagasawa said: "We are deeply sorry for causing trouble to our customers."

She added: "We want to work on strengthening security."

Ms Nagasawa added that it was not yet known when the Sega Pass online network could be restarted.

'Investigation'

In an e-mail sent to Sega Pass users on Friday, the company wrote: "Over the last 24 hours we have identified that unauthorised entry was gained to our Sega Pass database.

"We immediately took the appropriate action to protect our consumers' data and isolate the location of the breach. We have launched an investigation into the extent of the breach of our public systems."

Sega explained that it had reset all passwords and urged customers to change their log-on details on other services and websites where they used the same credentials.

It added that password details had not been stored in plain text, suggesting that they may have been secured by some kind of encryption.

Sega is the latest in a line of games companies to suffer hacking and denial of service attacks on their online services.

Nintendo, Sony and several multi-player gaming communities have been hit in recent months.

The hacker group Lulz Security, which has been involved in a number of high profile attacks, including one against Sega rival Nintento, has denied involvement in the Sega case.

Instead it showed some sympathy for the company on its Twitter feed.

"We want to help you destroy the hackers that attacked you. We love the Dreamcast, these people are going down," it said.



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Friday, June 17, 2011

US builds net for cyber war games

The United States government is building its own "scale model" of the internet to carry out cyber war games.

Several organisations, including the defence company Lockheed Martin, are working on prototypes of the "virtual firing range".

The system will allow researchers to simulate attacks by foreign powers and from hackers based inside the US.

More than $500m (�309m) has been allocated by the Department of Defense to develop "cyber technologies".

The National Cyber Range project is being overseen by the Defense Advance Research Projects Agency (Darpa), which was also involved in early network research that led to the internet.

When ready, it will function as a test-bed for defensive and possibly offensive technologies such as network protection systems.

Having a controllable mini-internet would allow researchers to carry-out experiments "in days rather than the weeks it currently takes," Darpa spokesman Eric Mazzacone told the Reuters news agency.

Unlike the real internet, the in-house version could be wiped or reset between tests, explained Mr Mazzacone.

Development of the National Cyber Range is currently in the hands of several organisations, including Johns Hopkins University in Baltimore and Lockheed Martin.

One of their prototypes will be selected to go into operation later in the year.

Act of war

The United States has been gradually increasing funding for internet security-related projects.

In 2008, the US military was the subject of a serious cyber attack when part of its network became infected by a worm known as agent.btz.

President Obama, in May 2009, declared the cyber threat to be one of the "most serious" challenges facing the country.

Since then, his government claims to have been the subject of several attempted attacks, originating from overseas.

Lockheed Martin, one of the contractors involved in the National Cyber Range project was itself the subject of a security breach in May 2011.

Earlier this month, the Pentagon said it planned to publish proposals to categorise cyber attacks as acts of war.



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Teen hacker stole Lady Gaga songs

Lady Gaga Lady Gaga was one of the artists who had details stolen. <!-- Empty - Wide embedded hyper -->

An 18-year-old computer hacker who stole songs from artists including Lady Gaga has been sentenced to 18 months detention in Germany.

The court heard how the teenager, who called himself DJ Stolen, earned more than 15,000 euros (�13,260) by breaking copyright laws and hacking personal information from a number of singers.

The hacker used phishing emails and Trojan horse software to steal unpublished songs and then offer them for sale on the internet.

Anti-piracy teams in the UK and Germany noticed a growing number of pre-release tracks being leaked much earlier than normal.

Tracks were stolen from Lady Gaga, Justin Timberlake, Leona Lewis, Kesha and Mariah Carey in 2009 and 2010.

Kesha Singer Kesha had private photos stolen from her computer

The teenager, referred to in court as 'Deniz A' because of his age, was also found guilty of downloading explicit private photos from Kesha's computer.

Apology to Gaga

The court in the German city of Duisburg also heard how a letter of apology was published in Daily Bild, a German tabloid newspaper, from the teenager saying:

"Dear Lady Gaga, I am ashamed of what I have done. I did not think about the consequences."

The judge ruled that the teen was "driven more by a desire for recognition than by criminal intent".

The 18-year-old was also ordered to have therapy for an addiction to the internet.

Another hacker, 23, whose name wasn't released, was also given an 18 months suspended sentence.

Jeremy Banks, from the International Federation of the Phonograhic Industry (IFPI), which helped with the investigation said the sentences acted as a "deterrent" to others.

He said the crimes caused "huge damage to artists and record companies".



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Virgin tackles infected customers

About 1500 customers of internet service provider Virgin Media have been warned that their PCs are infected with a malicious virus.

The targeted customers had fallen victim to the SpyEye trojan that steals logins for online bank accounts.

Letters have been sent to those affected, giving them advice on how to clean up their computers.

Virgin is understood to be the first UK ISP to give specific warnings to customers about viruses on their PCs.

The other major service providers tackle malware at the individual computer level, offering free anti-virus software and advice.

Virgin said it had received information about the SpyEye infections from the Serious and Organised Crime Agency.

Early warning

The company stressed that it had not been monitoring user activity, rather some of their customers' IP addresses were found by law enforcement while investigating criminal botnets.

"It's a small number compared to the four million customers we have," said a spokesman, "but regardless of that, because of the seriousness it's still important to communicate with our customers."

The letters stress the seriousness of the situation and urge customers to update their security software and scan their machine to find and remove the malicious program. Alternatively, customers can sign up for a help service that allows a Virgin to remotely find and fix problems.

The spokesman added that the Virgin campaign started in August 2010 and since then it had sent letters to "several thousand" customers about a serious infection on their home computer.

"The category we are looking at are the ones that put our customers at most risk or the ones that will steal from them," he said.

SpyEye first appeared in early 2010 and has steadily gathered victims ever since. Some machines are infected via booby-trapped webpages or by tricking people into clicking on links that lead to the trojan being installed.

The SpyEye trojan and its many variants are being produced with a software kit that allows novices to put together their own versions of the malware. The kit, which costs $500 (�310), also comes with a tool to help control all the PCs that are infected.



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Thursday, June 16, 2011

Duke Nukem PR firm publicly axed

US games publisher Take 2 has parted company with public relations firm The Redner Group, following Twitter comments concerning Duke Nukem Forever.

Redner's contract was terminated after it said journalists who gave the game a poor review would be blacklisted.

Take 2's subsidiary, 2K Games, said it did not share "or endorse" the views.

Duke Nukem Forever, which has been in development since 1998, was criticised for its embarrassing character, dated design and poor controls.

The row erupted when Redner Group's founder, Jim Redner, published an angry tweet as the negative reviews of Duke Nukem Forever started to come in.

"Too many went too far with their reviews...we r reviewing who gets games next time and who doesn't based on today's venom," he tweeted.

The threat was quickly picked up by blog and gaming sites across the world, accusing Take 2 of strong arm tactics.

A day later, 2K Games sacked Redner Group and tweeted that it maintained "a mutually respectful relationship with the press and will continue to do so. We don't condone @TheRednerGroup's actions at all".

The most recent message on Redner's Twitter feed reads: "Again, I want everyone to know that I was acting on my own. 2K had nothing to do with this. I am so very sorry for what I said."

Classic reworked

First announced in 1998, Duke Nukem Forever was cancelled in 2009 when its developer - 3D Realms - collapsed.

"Start Quote

Too many went too far with their reviews...we r reviewing who gets games next time and who doesn't based on today's venom "

End Quote Tweet Jim Redner

It was subsequently resurrected by US developer Gearbox Software which released the game on PC, PS3 and XBox 360.

It now holds the record for the longest time between game releases. That was formerly held by StarCraft, which had a 12-year hiatus.

The series had legions of fans who waited in expectation of the next release.

However, while expectations were high, the final product disappointed most reviewers.

US game website 1Up said the game was one "not even the most maladjusted 13-year-old could love", IGN described it as a "muddled, hypocritical exercise in irritation" although compensated for by "solid shooting mechanics", and Gamespot UK said "it turns a famous gaming icon into an embarrassment".

Rik Henderson, a former co-presenter of Gamesmaster and writer with Pocket Lint, said that he was surprised at such a public statement by Jim Redner, but not the sentiment expressed.

"This sort of thing happens behind the scene regularly from a number of different companies; I've encountered this on many an occasion, naming no names," he told BBC News.

"Considering the number of games that come out every year, not everything is an A list title.

Mr Henderson said it was common practice for firms not to send out review code until a game was in the shops and journalists who broke such gentleman's agreements would find themselves down the list when it came to receiving future games.

However, he added that a game like Duke Nukem Forever had been so hyped up that this course of action was not a realistic option.

"That said, I'm still waiting for my review code," he quipped.

Take 2 refused to make any further comment on the ongoing row when contacted by the BBC.



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Hackers attack Malaysian websites

Hackers have attacked dozens of government websites in Malaysia, days after a hacking group criticised the country over censorship.

Malaysian officials said attempts had been made to hack 51 websites, and at least 41 had been disrupted.

The "Anonymous" group of hackers had threatened Malaysia with an attack this week, accusing the government of blocking some websites.

No group has yet said they carried out the attack.

But Anonymous said in an earlier web post that Malaysia's censoring of films and television shows and its blocking of file-sharing websites amounted to a denial of human rights.

The exact nature of the attacks was not immediately clear, and it may be that they were denial of service overloads, rather than hacking intrusions into the computer servers.

The main Malaysian government portal was among the websites that was targeted, and it was still inaccessible on Thursday.

The Malaysian Communications and Multimedia Commission said attacks on websites with the .gov.my domain began late on Wednesday.

"We do not expect the overall recovery to these websites to take long as most websites have already recovered from the attack," the commission said in a statement.



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