Sony predicts increased losses

17 September 2014 Last updated at 15:21

Japanese consumer electronics giant Sony has unexpectedly said its annual loss may be more than four times bigger than initially forecast.

The firm now expects a full-year loss of 230bn yen ($2.15bn; £1.3bn) compared with a previous estimate of 50bn yen.

This was attributed to its struggling mobile business, which has been losing money due to competition from global rivals such as Apple and Samsung.

Sony also said it would not pay a year-end dividend for the first time.

In a statement, Sony said its latest plan had been "modified to address the significant change in the market and competitive environment of the mobile business."

This is the sixth profit warning from the company, which made the announcement after Japanese stock markets had closed.

Analysts say that while the company faces a hard time returning its smartphone division to profit, it is not impossible.

"They are not the only smartphone vendors to be under a lot pressure," Rachel Lashford from consultancy Canalys said.

"With the right restructuring and focus on products, at the right prices, it is absolutely possible for vendors to move forward."

Ms Lashford said both South Korea's LG and Taiwan's HTC have seen their smartphone divisions return to profit after several straight quarterly losses.

Analysis: Andrew Walker, Economics correspondent

Sony has been struggling for several years, and now it has decided for the first time since it was listed on the Tokyo stock exchange not to pay a dividend to shareholders.

The company blames the latest deterioration on its mobile phone business. It has struggled to compete with the dominant players in the smartphone market, Apple and Samsung as well newer Chinese suppliers.

Sony plans to cut staff in the mobile phone unit by 15% to reduce costs. Sony's television business is also struggling, though other operations, notably the Playstation games console, are more successful.

Major restructuring

Sony has been losing money for the past few years and has undertaken a major restructuring to try and stem the losses.

Once an investor darling, Sony has also seen its credit rating reduced to junk due to its poor financial performance.

Under chief executive Kazuo Hirai - who took charge in 2012 - Sony sold off parts of the business deemed not central to the company's operations, including its personal computer business

It also sold its US office building in New York for more than $1bn, and the "Sony City Osaki" premises in Tokyo, which had been its headquarters for six decades.

In addition, Sony culled 5,000 jobs from its computer and hard-hit television unit, which Mr Hirai has so far refused to sell because it is considered a core business.

Sony's high-end Xperia smartphones have seen poor sales in China and the US because of local competition and limited distribution.

In its search for new revenues, the company recently unveiled a new range of smartwatches and launched a smartphone that will allow gamers to integrate the device with its PS4 playstation console.

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Nigerian bank robbery nets millions

16 September 2014 Last updated at 14:34

A Nigerian IT worker is being sought by police for his alleged role in co-ordinating a £25m ($40m) cyber-theft at a bank in Abuja where he worked.

Godswill Oyegwa Uyoyou is being sought by Nigeria's Economic and Financial Crimes Commission (EFCC).

A wanted notice claims he helped conspirators dressed as maintenance staff get into the bank so they could use computers to transfer cash.

Local reports suggest the theft was spotted when stolen cash was withdrawn.

Although no members of the gang have been caught, several are being "tracked", Wilson Uwujaren, a spokesman for the EFCC, told News Nigeria.

Details of the robbery are scant but it is thought that Mr Uyoyou and conspirators entered the bank on a Saturday when it was closed and no other staff were working.

The IT staffer was key to the robbery, said the EFCC, because of the access he enjoyed to the computer systems at the bank. This was used to siphon 6.28bn Nigerian Naira into accounts of the conspirators, said the EFCC. So far, the bank at the centre of the theft has not been named.

The EFCC has issued a warrant for Mr Uyoyou's arrest and he is being actively sought in Nigeria.

John Hawes, a computer security researcher at Sophos, said the amount of cash stolen was "unusually large" but the method the gang chose was "all too common".

"Insider risk is a major problem for banks," he wrote on the firm's security blog, "they still have to rely on trusted employees to behave themselves, resist temptation and keep their hands off the huge amounts of funds they may find themselves dealing with every day."

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eBay attack puts its buyers at risk

17 September 2014 Last updated at 15:32 By Leo Kelion Technology desk editor

EBay has been compromised so that people who clicked on some of its links were automatically diverted to a site designed to steal their credentials.

The spoof site had been set up to look like the online marketplace's welcome page.

The US firm was alerted to the hack on Wednesday night but removed the listings only after a follow-up call from the BBC more than 12 hours later.

One security expert said he was surprised by the length of time taken.

"EBay is a large company and it should have a 24/7 response team to deal with this - and this case is unambiguously bad," said Dr Steven Murdoch from University College London's Information Security Research Group.

The security researcher was able to analyse the listing involved before eBay removed it.

He said that the technique used was known as a cross-site scripting (XSS) attack.

It involved the attackers placing malicious Javascript code within product listing pages. This code in turn automatically redirected affected users through a series of other websites, so that they ended up at the page asking for their eBay log-in and password.

Users only had to click the original listing to have their browser hijacked.

"The websites the user is being redirected to are almost certainly compromised by the attacker to hide his or her traces," Dr Murdoch explained.

He added that the fake page the users were ultimately delivered to contained code that had the potential to carry out further malicious actions.

"EBay is pretty competent, but obviously it has been caught out here," he said.

"Cross-site scripting is well within the top 10 vulnerabilities that website owners should be concerned about."

A spokesman for eBay played down the scope of the attack.

"This report relates only to a 'single item listing' on eBay.co.uk whereby the user has included a link which redirects users away from the listing page," he said.

"We take the safety of our marketplace very seriously and are removing the listing as it is in violation of our policy on third-party links."

However, the BBC identified that a total of three listings had been posted by the same account involved.

At least two of them produced the same redirect behaviour. The third was removed by eBay, along with the other two, before it could be checked.

Delayed reaction

The issue was originally identified by Paul Kerr, an IT worker from Alloa in Clackmannanshire who is also an "eBay PowerSeller".

He called the firm shortly after he had clicked on a listing for an iPhone and been redirected.

"The advert had been up for 35 minutes," he told the BBC.

"When I spoke to the lassie on the phone, she said: 'I'm going to report that to the highest level of security to get it looked into.' And she did emphasise that.

"They should have nailed that straight away, and they didn't."

Mr Kerr identified the problem because the web address of the page he was sent to was unusual. He screen-grabbed a video of the attack, which he uploaded to YouTube as evidence.

He added that other less tech-aware users might not have realised the danger they were in.

"It's guaranteed - you can bet your bottom dollar that somebody's going to click on that and be redirected to a third-party site and they're going to enter their details and be compromised," he said.

"You don't know how many of the hundreds of thousands of people who use eBay will have done that."

This is not the first technical setback eBay has suffered in recent months.

The site has experienced several periods when members have been unable to sign into their accounts and have received incorrect password alerts.

In May, the firm made users change their passwords after revealing that a database containing encrypted passwords and other non-financial data had been compromised.

In addition, it announced in July that 1,600 accounts on its StubHub ticket resale site had been broken into resulting in a scam that defrauded the service of about $1m (£600,000).

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Debate on internet fast lanes ends

16 September 2014 Last updated at 12:28

More than three million comments, from consumers, companies and other groups, have been submitted to a controversial US debate on the future of the net.

The debate centres on a proposal to allow ISPs, such as Comcast and Verizon, to introduce so-called fast lanes which would deliver paid-for traffic to users more quickly and reliably.

Content providers and net advocate groups believe that would destroy the principle of net neutrality.

The debate closed on 15 September.

US regulation watchdog the Federal Communications Commission (FCC) is in charge of making the changes.

Devilish detail

It has been forced to rethink its existing net neutrality rules following a court case in January which ruled that ISP Verizon could charge to carry traffic from bandwidth-heavy services such as Netflix.

It was seen as a challenge to the powers of the FCC with some net advocacy groups calling for the watchdog to completely reclassify broadband from being an information service to a utility, giving it far stronger powers.

Instead the FCC favoured the idea of charging for different levels of internet access if ISPs meet a new standard of "commercial reasonableness" that will be judged on a case-by-case basis.

For their part, ISPs argue that they will not be able to invest in future bandwidth demands unless they are better able to make money from existing services.

"The devil will be in the detail. In the US, it is about what can be considered commercially reasonable," said Ovum analyst Matthew Howett.

"The possibility of 'fast lanes' remains a distinct possibility... but on the assumption that a 'basic' lane remains unaffected in an attempt to avoid a situation of 'haves' and 'have-nots'".

Last week, some high-profile net firms including Twitter and Netflix took part in an internet slowdown protest day and many previously signed a letter sent to the FCC expressing dismay at the proposed changes.

The FCC will mull over all the submissions before adopting new rules. Experts predict changes will be in place by the end of the year.

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Judge overturns Uber ban in Germany

16 September 2014 Last updated at 14:50

A German judge has overturned a nationwide ban on one of the services offered by the alternative taxi firm Uber.

The temporary injunction banned the start-up from offering its UberPop ride-sharing service in the country.

Frankfurt Regional Court Judge Frowin Kurth ruled that taxi companies in the country had waited too long to request an emergency injunction.

The German Taxi Association, Taxi Deutschland, said that it would appeal.

"The taxi industry accepts competitors who comply with the law. Uber does not," it said in a statement.

For its part Uber welcomed the judge's decision.

"UberPOP is revolutionising transport in cities and beyond by helping to create smarter cities with more transport choices," the firm said.

"Demand is so great all across the country that we expect to double in size by the end of the year and plan to bring Uber to more and more cities across Germany."

Although the temporary injunction against Uber has been lifted, the case goes on as part of an ongoing civil lawsuit brought by Taxi Deutschland.

London protests

There has been mounting opposition to services such as Uber which uses smartphone apps to connect drivers and customers.

UberPop is one of several services offered by the firm and has proved particularly controversial because it uses drivers not directly employed by the company and therefore without professional transportation licenses.

In London, cab drivers launched a day of protests over Uber's services which they claimed broke Transport for London rules.

Similar protests have been held in Paris, Madrid, Rome, Milan and Berlin and the service has also been banned in Seoul.

Uber operates in more than 205 cities across 45 countries.

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Giant sensor for Panasonic phone

16 September 2014 Last updated at 16:02

Panasonic has unveiled a hybrid smartphone-camera, at the Photokina trade show in Cologne.

More camera than phone, the Android device has a Leica lens and a 1in, 20-megapixel sensor more often found in Panasonic's dedicated cameras.

The 2.5cm sensor will help the camera take snaps in low light conditions and shoot ultra-high definition video.

Panasonic said the Lumix DMC - CM1 would go on sale towards the end of 2014 in Germany and France.

The phone is expected to cost about 900 euros (£720) when it goes on sale.

It is widely seen as a rival to Samsung's Galaxy K Zoom, which also has a built-in large lens.

The lens and its metal ring, to control aperture and shutter settings, make the CM1 21mm thick - considerably more than contemporary smartphones.

The CM1 also has 11.9cm touchscreen and a dedicated switch that instantly flips it into camera-mode.

Reviewing the gadget at tech news site Pocket-lint, Mike Lowe said it was an "interesting experiment" that "impressed" him more than he had expected.

However, Marc Flores, at Tech Radar, was more critical, saying hybrids satisfied no-one.

"We've tried this before, and it didn't work out so well," he wrote, adding that anyone looking for a good camera should buy a dedicated device.

Anyone keen to take better pictures with a smartphone, he added, should just learn how the professionals did it rather than buy a CM1 and hope that would make all the difference to their snaps.

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Drivers warned about smartwatch use

17 September 2014 Last updated at 13:04

Motorists are being warned about the dangers of using a smartwatch while driving.

Accidents caused by drivers distracted by the devices would result in severe penalties, a Department for Transport (DfT) spokesman said.

"If records show you were texting from said watch," the spokesman said, "you've given police enough material to be able to charge you."

He added: "We are considering a number of further options to deter drivers."

Smartwatches are covered by existing laws designed to stop people checking gadgets while on the move.

"Using a mobile phone or any device that distracts a driver whilst driving is extremely dangerous and is already illegal," the DfT said.

"We increased the fine to £100 last August for using a mobile phone whilst driving."

'Responsible message'

Handheld use of a mobile phone at all while driving, whether there's an accident or not, is punishable by an on-the-spot fine and three points added to a licence.

Use of a smartwatch while driving is not banned outright - but improper use could result in charges for

• dangerous driving
• careless and inconsiderate driving
• failure to be in proper control of the vehicle
• driving without due care and attention

Motoring groups have called for manufacturers to play a role in raising safety awareness.

Speaking to the Daily Telegraph, the Institute of Advanced Motorists said: "It's possible that manufacturers might think it's not their responsibility to warn drivers about the dangers, but they need to be pushing the responsible message too.

"Enjoy this equipment too, but use it in the right place at the right time."

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Apple toughens iCloud security

17 September 2014 Last updated at 14:04 By Leo Kelion Technology desk editor

Apple has expanded its use of "two-step verification" checks to protect data stored online by its customers.

It follows suggestions third-party software had been used to steal intimate photos of celebrities - posted online last month - from iCloud.

The action should stop the tool from being able to infiltrate Apple's internet storage service if the safety measure is implemented.

However, the security facility remains an opt-in choice.

One expert suggested that Apple should instead make it the default option.

The process works by introducing an extra step after an account holder has typed their username and password into a device they have not used before.

They are also required to enter a four-digit code that is either texted to a trusted mobile phone number or sent via Apple's Find My iPhone app.

If the person does not enter the code, they are refused access to iCloud and are blocked from making an iTunes, iBooks, or App Store purchase.

They can, however, use a 14-character recovery key to regain access to the account in the event their trusted device is lost or stolen. They are told to keep this in a safe place to avoid being locked out.

While Apple had offered the two-step verification system in the past, until now it had not come into play when device owners used the firm's back-up service.

That meant that even if people had switched on the two-step feature to prevent cyber-thieves logging into their accounts with a stolen or guessed password, the attackers could still download a complete back-up of their data by using Elcomsoft's Phone Password Breaker.

Several hackers' forums contain discussions about using of pirated copies of Elcomsoft's "forensic" software, which is marketed as a tool for law enforcement agencies to access iCloud content without needing to be in possession of a suspect's iPhone or iPad.

ElmcomSoft's Moscow-based owner told the BBC earlier this month that he believed his software had been used in the recent hacks, as it was "the only one able to do that".

He has now acknowledged that Apple's changes guard against the technique he had used.

"I think that implementation is secure, and so there is no workaround," Vladimir Katalov told the BBC, adding that his program could no longer even get a list of devices and back-ups linked to a user's account.

"The other security improvement, which I like, is that now the owner of the Apple account gets a notification by email immediately when a back-up starts downloading - whether or not two-factor authentication is enabled."

However, he added that he still had concerns about Apple's security system.

"The recovery key is hard to remember. And as far as you are not going to use it frequently - it is not needed at all while you have the trusted device handy - there is a good chance that you lose it," he said.

"And if you lose your device too, there will be no way to get your data back.

"Secondly, the recovery key might be stolen. And someone who managed to get your Apple ID password and your security key could make a lot of trouble for you, not just downloading your selfies."

But another security expert downplayed the risk of lost recovery keys, and said that Apple should do more than just recommend people switch on the two-factor test.

"We've seen so much in recent times that single-step verification - ie passwords - is vulnerable, we're at the stage that two-factor authentication should be the default," said Prof Alan Woodward, from the University of Surrey.

"It's a case of turn it on by default, and let people turn it off if they really don't want it.

"And that applies to not just Apple, but companies like Microsoft and Google too."

Apple has told the Wall Street Journal that it "plans to more aggressively encourage people" to turn two-factor authentication on and use stronger passwords.

"When I step back from this terrible scenario that happened and say what more could we have done, I think about the awareness piece," chief executive Tim Cook told the newspaper.

"I think we have a responsibility to ratchet that up. That's not really an engineering thing."

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Instagram adverts are 'coming soon'

By Jonathan Blake Newsbeat technology reporter

17 September 2014 Last updated at 14:23

Tucked away between the cat pictures and cups of coffee, you might have noticed something new on Instagram.

We had been warned that adverts were coming, but the time has come to get used to them.

If you haven't already seen it, look out for a "sponsored" post, breaking the news gently.

Ads will be rolled out "slowly", the social network explains, starting with companies "already great" on Instagram.

After this taster, Instagram said genuine adverts would be "coming soon" to UK users.

"Our aim is to make any advertisements people feel as natural to Instagram as the photos and videos they enjoy from brands who are already using Instagram," said spokesman Will Guyatt.

"You can hide individual adverts and leave feedback by tapping the "..." button.

"We're relying on input from people on Instagram as well as advertisers to help us continually improve the Instagram experience."

Despite the test post receiving more than 18,000 likes, many users expressed their frustration online.

The bottom line is, Instagram needs to start making money.

The company was bought by Facebook in 2012 for $750m (£460m), despite not making a profit.

Instagram's Kevin Systrom told Newsbeat the following year the app would have to "fund its own future".

Earlier in 2014, Instagram introduced adverts to selected users in the US.

Follow @BBCNewsbeat on Twitter and Radio1Newsbeat on YouTube

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IBM's Watson rolled out to business

17 September 2014 Last updated at 15:59

IBM's supercomputer Watson is being made available to businesses to answer tricky questions such as: "Which deals are most likely to close?"

The cognitive platform can understand questions posed in natural language and crunch vast amounts of data.

Watson Analytics is the latest step in IBM's $1bn (£610m) investment in the platform, which is already available for medical research.

But one expert questioned whether it could live up to past successes.

Watson is a computer system capable of artificial intelligence. In 2011 it was tailored to answer questions on the quiz show Jeopardy and won. It had access to 200 million pages of content but was not connected to the internet.

Since then IBM has worked to find more practical uses for the machine, such as helping to make decisions about cancer treatment at a US hospital.

This latest move is part of an attempt to commercialise the platform.

"Watson Analytics is designed to help all businesspeople - from sales reps on the road to company CEOs - see patterns, pursue ideas and improve all types of decisions," said IBM's senior vice-president Bob Picciano.

The first version of Watson Analytics, ready in test form in November, will be available as a cloud-based service, with both free and premium services, which can analyse more complex datasets from a wider array of sources.

Track record

Most existing business analysis tools assume users have data ready to look at, a clear idea of what they want to analyse and the skills and time to do it.

IBM hopes that a tool offering to do much of this work will prove a draw.

Watson does have a good track record, according to Gartner analyst Frank Buytendijk.

"IBM Watson has proven itself very capable to achieve astonishing results, way beyond traditional analytics," he said.

"But most of this work has been done in controlled environments and for very specific topics. There is not a lot of market feedback on Watson performing 'out there in the wild.'"

The decision to offer business analytics via the platform could open up an interesting dilemma for IBM.

"From what I understand of it so far, Watson Analytics is not really the big Watson Jeopardy Supercomputer Cognitive thing, but a next generation of IBM's business analytics software, now also labelled Watson," said Mr Buytendijk.

"Clearly Watson Analytics is a step forward compared to the traditional business analytics market, and it is clearly very innovative. At the same time, labelling it Watson creates a very, very high level of expectations, which is hard to fulfil."

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