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In contrast to publications like Stratechery that discuss the business of technology, The Hamiltonian discusses the technology of business and gives you a good overview of some of the trending issues currently happening around the world.
Last week was a big one for some heavy hitters in the financial services industry. HSBC, JP Morgan as well as Goldman Sachs (to name a few) were in the news after reports that they had allegedly moved large sums of illicit money over the past 2 decades. HSBC’s role in an $80m fraud case is detailed in a leak of documents - banks' "suspicious activity reports" (SARs) - called the FinCEN files. The documents, leaked by the IICJ, revealed a wider issue with financial institutions and the surveillance controls they have (or lack thereof) over their own fraud investigations and anti-money laundering efforts. Next, we will explore how students are coping with the pandemic during exams, and how they are rebelling against eye-tracking exam surveillance tools. In Bandwidth, we will explore the implications around surveillance discussed in the popular Netflix documentary, the Social Dilemma. Then, we’ll take a look at some of Amazon’s new products the company debuted, which includes an indoor flying drone. Finally, in Noise, we’re going to provide you guys with some free online tools to protect your privacy!
Stay safe and have a great week ahead!
Signal
This past week, leaked documents involving $2 trillion dollars worth of transactions have revealed how some of the world's biggest banks have allowed criminals to move dirty money around the world. It's the latest in a string of leaks over the past five years that have exposed secret deals, money laundering, and financial crime.
An ICIJ Investigation: FinCEN Files
HSBC was highlighted as a financial institution that was unable to spot the suspicious transactions going through its systems until 2014 after the Securities and Exchange Commission filed charges. However, the leaked files showed that HSBC was in fact aware of the scam. Analysis by the International Consortium of Investigative Journalists shows that between 2011 and 2017 HSBC identified suspicious transactions moving through accounts in Hong Kong of more than $1.5bn - about $900m - linked to overall criminal activity. Unfortunately, the reports failed to include key facts about customers, including beneficial owners of accounts and where the money came from.
FinCEN Files: HSBC moved Ponzi scheme millions despite warning
The allegations of money laundering come as a bit of a surprise considering that in 2019, HSBC revealed a new anti-money laundering (AML) surveillance system and automated sanctions checking tool for its global trade and receivables finance (GTRF) business. The AML system leveraged big data, advanced analytics, and automated monitoring to detect and intercept financial crime in international trade, doing so by combining customer and counterparty trade information and transactional data.
Dirty Money Pours into the World’s Most Powerful Banks
Laws that were meant to stop financial crime have instead allowed it to successfully continue. As long as a bank files a notice that it may be facilitating criminal activity, it all protects itself and its executives from criminal prosecution. The suspicious activity alert effectively gives them a free pass to keep moving the money and collecting the fees. Proof Zero’s Co-Founder Alex wrote a great piece on some of the deeper implications of these findings.
There’s a new privacy backlash brewing in schools, and it is beginning to escalate rapidly. When COVID-19 first hit, end of year exams for students were largely left up in the air. Gone are the days of large groups of students sitting in gyms, auditoriums, or empty classrooms, physically writing out their exams. Now, schools have found early success with software that enables students to sit supervised in their bedrooms. However, students around the world have started to protest this huge invasion of their privacy and excessive surveillance.
Mass school closures in the wake of the coronavirus are driving a new wave of student surveillance
“Online proctor” services like these have already policed millions of American college exams, tapping into students’ cameras, microphones, and computer screens when they take their tests at home. If you’re a student taking an algorithmically proctored test, here’s how it works: When you begin, the software starts recording your computer’s camera, audio, and the websites you visit. It measures your body and watches you for the duration of the exam, tracking your movements to identify what it considers cheating behaviors. If you do anything that the software deems suspicious, it will alert your professor to view the recording and provide them a color-coded probability of your academic misconduct.
Students Are Rebelling Against Eye-Tracking Exam Surveillance Tools
Beyond all the ways that proctoring software can discriminate against students, algorithmic proctoring is also a significant invasion of privacy. These products film students in their homes and often require them to complete “room scans”, which involve using their camera to show their surroundings.
In an interview, Brenda McPhail, Director of Privacy, Technology & Surveillance Projects at The Canadian Civil Liberties Association commented on what it means to educate youth on privacy.
“ I would argue that young people know about their privacy risks and that really do care. They understand the importance of controlling what information others can use about them, but they are also very concerned about managing their personal reputation through the online platforms they themselves choose to use. (read the full interview here)
Bandwidth
Netflix's The Social Dilemma premiered only a few weeks ago and has already provoked a huge response from viewers. Taking a look at the overwhelming proliferation of social media, the documentary has a single, and simple, message: Put down your phone, you're being manipulated. This message is driven home by a series of tech industry employees and executives exposing how AI and algorithms are not only watching everything you do but are also predicting how you will act in the future.
‘The Social Dilemma’ Review: Unplug and Run
Though surveillance and manipulation by the state and the tech industry are something to watch and be wary of, The Social Dilemma's power largely comes from the insistence that social media's advertising model is personalized and malicious.
We need to rethink social media before it's too late. We've accepted a Faustian bargain
The employee interviews are the most interesting part, as they explain how their companies developed technology that so effectively manipulates the human psyche, and quite a few of them express their regrets over what they unleashed. Surveillance capitalism is talked about at large with Shoshana Zuboff, professor at Harvard Business School, who states that “it’s a marketplace that trades exclusively in human futures.”
Despite the confessionals of these executives, the final recommendations to the average consumer of these tech products were disappointingly basic. These self-help suggestions include: turning off notifications; uninstalling time-wasting apps; fact-checking before you share sources; and following people with different views than you. Considering the weight of some of these current and ex-employees of these technology companies, it’s a scary thought if they can’t come up with better suggestions.
The Social Dilemma’ Review: Sharing a Sense of Dismay
Amazon sought to wow customers with a new collection of products and features on Thursday. During its annual fall event, the company unveiled speakers, TV devices, home, and car security gadgets, and gaming consoles. Amazon also promised to help fight climate change by co-founding and signing The Climate Pledge, a commitment to have a net-zero carbon footprint across the business by 2040.
Here's everything Amazon announced at its latest hardware event
Amazon introduced a set of new security devices designed for cars as part of its Ring product line. Tesla vehicles will be first to have some of them installed when they hit the market in early 2021. Amazon unveiled three Ring offerings: Car Cam, Car Alarm, and an API called Car Connect. All three products can be integrated into the Ring app that supports Amazon’s home security system.
Another new device, from Amazon’s Ring home-security subsidiary, is an indoor drone-mounted camera that can automatically patrol a home’s interior. Due out next year, pending Federal Communications Commission authorization, the $250 flying camera is not designed to be so quiet, and reaction to it wasn’t either. Ring products have been hacked in the past, including an instance last year in which a man was able to see and speak to an 8-year-old girl through a Ring security camera in her bedroom.
Ring’s latest security camera is a drone that flies around inside your house
Asked whether customers fully understand the privacy implications of the proliferation of Amazon-connected cameras and microphones that enable these services, Toni Reid, Vice President of Alexa experiences and devices, said the company has put a lot of effort into teaching customers about privacy and making it easier to manage privacy settings.
Amazon’s Biggest Reveal Isn’t A Product: It’s An Awesome Promise
Noise
Protecting your online privacy is important, and data collection by companies and government agencies is highly concerning to many of us. Luckily, the internet is full of free tools that will help you secure your online privacy. Here are a few online privacy tools you can safely use for free.
Best free browsers for online privacy: Those who are especially concerned about online privacy will want to consider using browsers with built-in security features.
· Tor Browser. The Tor Browser is an essential cybersecurity tool for maximum privacy when browsing the web. While Tor is the most secure browser, the major drawback of it is that it can make browsing the web painfully slow. As such, most users limit their usage of TOR to only when they want maximum protection.
· Avast Secure Browser. Although most famous as an antivirus software provider, Avast has broadened its reach to also offer a secure web browser too. The Avast Secure Browser is their answer to issues surrounding not just keylogging and data tracking but also helping users block out ads during browsing and watching videos online. Avast also claims that their browser doesn’t sacrifice speed for safety.
Best free search engines for online privacy
Google does not hide the fact that it makes most of its money by collecting data about its users and allowing advertisers to target their ads using this information. If you are concerned about having your search history and other data collected, consider switching to a more private option.
· DuckDuckGo is a privacy-first search engine. It does not track your search history or allow targeted advertising, allowing you to keep your online activity private from marketers.
· StartPage uses Google’s search algorithm — allowing for great search results — but unlike Google, does not collect personal data or filter search results based on its idea of what you would like to see.
Best free password tools for online privacy
Common and easy-to-guess passwords are a serious security risk. Creating and remembering secure passwords is hard, but luckily there are many tools available to take the stress away from remembering passwords.
· Although it also has a premium version, users can get a decent amount of cost-free protection out of LastPass when it comes to storing and recalling passwords. The free version of LastPass still enables users to implement two-factor authentication, as well as having a password generator that removes the potential for forgetfulness, human error or simply being unable to think up an uncrackable password on your own.
· Have I been pwned: Have I been pwned is a site which lets you enter your email address and then see if sites you have signed up to with that email have been compromised, exposing your login details. If any results come up, you will know that it is high time to change the rest of your passwords.
That’s all folks! Please like and subscribe if you haven’t already. Have a great week!