Level 3 Blocks Chinese Servers Linked to Hacking

Level 3 Communications Inc. has cut off data from reaching a group of servers in China that his company believed was involved in an active hacking attack. The Broomfield, Colo., company is taking an aggressive -- and some say risky approach -- to battling criminal activity. Risky because hackers often hijack legitimate machines to do their dirty work, raising the risk of collateral damage by sidelining a business using the same group of servers.

U.S. Tried, Failed to Deploy Computer Virus in N. Korea

The United States tried to deploy a version of the Stuxnet computer virus to attack North Korea's nuclear weapons program five years ago but ultimately failed, according to people familiar with the covert campaign. The operation began in tandem with the now-famous Stuxnet attack that sabotaged Iran's nuclear program in 2009 and 2010 by destroying a thousand or more centrifuges that were enriching uranium.

U.N. Report Calls Encryption Necessary for Free Expression

A new report from the United Nation's Office of the High Commissioner for Human Rights says digital security and privacy are essential to maintaining freedom of opinion and expression around the world -- and warns that efforts to weaken security tools in some countries may undermine it everywhere. The report written by special rapporteur David Kaye says that encryption -- the process of digitally scrambling information so that only authorized persons can access it -- and anonymity tools "provide the privacy and security necessary for the exercise of the right to freedom of opinion and expression in the digital age."

FCC Chairman Proposes Broadband Subsidy for Poor

Federal Communications Commission Chairman Tom Wheeler proposed helping low-income consumers with the cost of broadband Internet access through a program that subsidizes phone bills. Mr. Wheeler’s proposal would expand the government’s Lifeline program by giving low-income households the option to apply the subsidy to broadband Internet access, either wired or wireless.

Home Depot Breach Caused 'Billions' in Losses, Suit Says

Financial institutions claim Home Depot's data breach caused total fraud losses "in the billions of dollars." In a consolidated complaint filed May 27 in federal court in Atlanta, more than 100 financial institutions state their case for why The Home Depot Inc. is responsible for the massive data breach that the world's largest home improvement retailer suffered in 2014.

Judge Refuses to Disqualify Apple Antitrust Monitor

A federal appeals court rejected Apple Inc.'s bid to disqualify an antitrust compliance monitor appointed after the technology company was found liable for conspiring with five publishers to raise e-book prices. While saying some allegations against the monitor Michael Bromwich "give pause," the 2nd U.S. Circuit Court of Appeals in New York said a lower court judge did not abuse her discretion in rejecting Apple's bid to end his two-year appointment early.

Jawbone Sues Fitbit for Stealing Confidential Info

Jawbone sued Fitbit in California State Court, accusing its rival of “systematically plundering” confidential information by hiring Jawbone employees who improperly downloaded sensitive materials shortly before leaving. “This case arises out of the clandestine efforts of Fitbit to steal talent, trade secrets and intellectual property from its chief competitor,” lawyers for Jawbone wrote in the complaint.

Google Fights Ruling in Mexico Over Deleting Links

Free-speech advocates are challenging a ruling against Google Mexico that they say would allow politicians and business moguls to abuse the so-called right to be forgotten by wiping out Internet links that cast them in a negative light. The Google Inc. unit and local digital-rights activists are fighting in court to overturn a recent ruling by Mexico’s Federal Institute for the Access to Information, or IFAI.

Judge Approves Class-Action for Yahoo E-mail Lawsuit

A U.S. judge ordered Yahoo Inc. to face a nationwide class-action lawsuit accusing it of illegally intercepting the content of emails sent to Yahoo Mail subscribers from non-Yahoo Mail accounts, and using the information to boost advertising revenue. U.S. District Judge Lucy Koh in San Jose, California said people who sent emails to or received emails from Yahoo Mail subscribers since Oct. 2, 2011 may sue as a group under the federal Stored Communications Act for alleged privacy violations.

IRS Says Cyber Breach Originated in Russia

The IRS believes that a major cyber breach that allowed criminals to steal the tax returns of more than 100,000 people originated in Russia, two sources briefed on the data theft tell CNN. The Internal Revenue Service announced that organized crime syndicates used personal data obtained from elsewhere to access tax information, which they then used to file $50 million in fraudulent returns.

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German Court Upholds Legality of Ad-Blocking Software

Making software available to block advertising online is not illegal, a German court ruled, in a judgment that poses a challenge to the revenues of global media groups. The operation of a “whitelist” of acceptable ads that are allowed through adblocking filters in exchange for a fee -- a business model that media groups have likened to “extortion” -- is also not in breach of the law, Munich’s district court ruled.

Average Cost of Data Breach Rises to $3.8 Million

The cost of data breaches is rising for companies around the world as sophisticated thieves target valuable financial and medical records, according to a study. The total average cost of a data breach is now $3.8 million, up from $3.5 million a year ago, according to a study by data security research organization Ponemon Institute, paid for by International Business Machines Corp.

European Regulators Increasingly Focus on Facebook

In recent months, European regulators’ gazes have turned to Facebook, raising questions about whether the social network has learned from the past mistakes of companies like Intel, Microsoft and Google when dealing with Europe’s policy makers and its legal system. And as Facebook runs into an increasing number of regulatory hurdles here, the scrutiny could potentially distract the company from its ambitions of becoming a one-stop shop for Internet messaging, online publishing and digital advertising.