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Business

Mercedes-Benz dealers seek $650m compensation from German car maker in ‘fight of their lives’

Australian Mercedes-Benz dealers are in a $650 million “fight of their lives” against the luxury German car maker in a test case described as one of the most significant in franchise-law history.

Bob Craig sold his dealership of 48 years last year in frustration over Mercedes-Benz’s decision to move to a fixed-price agency sales model.

“I would love to have done 50 years with Mercedes,” Mr Craig said.

“In the last five years, there was a deterioration in relationships between the dealer and the manufacturer.”

Previously, dealers bought cars from Mercedes and could set their own sale price.

But under the agency model, which came into effect in January, the manufacturer retains ownership of the cars while dealers become agents that sell cars at a fixed price for a set commission.

Thirty-eight of the nation’s 55 Mercedes-Benz dealerships have launched legal action against the company in the Federal Court seeking compensation.

Dealers argue they were forced to sign new agency model deals with Mercedes that will dramatically reduce their profits and wipe out years of goodwill with customers.

Mr Craig is not involved in the court case because he sold his business in Orange before the agency model came into effect, but he is speaking on behalf of former colleagues too nervous to publicly criticize Mercedes.

“They’re all shattered, their livelihood is shattered,” Mr Craig said.

Bob and old photo
A photo of Bob Craig’s Mercedes-Benz dealership in Orange from the 1970s.(ABC News: Hamish Cole )

Dealers allege Mercedes hatched a secret plan in 2016 to switch to an agency model, undertook a sham consultation process, and pushed forward with a decision despite the majority of Australian dealers being against it.

They claim that in a bid to capture the profits of dealers, Mercedes has broken Australian Consumer Law by engaging in unconscionable conduct, along with breaching the franchising code’s good-faith provisions.

“This is an incredibly important case for the automotive industry,” Australian Automotive Dealer Association (AADA) chief executive James Voortman said.

“In fact, it’s probably one of the most important franchising cases in Australian history.”

James Voorten
James Voorten says dealers are arguing Mercedes-Benz has engaged in unconscionable conduct and breached its good-faith obligations.(ABC News: Matt Roberts )

Dealers involved in the case are seeking $650 million in compensation from the car marker.

“That takes account of all the millions of dollars of investment that has gone into facilities, but also equipment and the goodwill they’ve created,” Mr Voortman said.

“It’s a large claim, but it’s more than fair.”

“These are regional dealers, these are city dealers, they are Australian businesses, and they’re in the fight of their lives against a big multinational corporation.”

In March 2019, Deloitte modeled the impact of the agency model for dealers.

It found, for example, that under the agency model one particular dealer’s profits would decline by more than 50 per cent compared to the dealership model.

The case against Mercedes, which saw hearings begin in the Federal Court this week, is being funded by dealers involved in the legal battle, including billionaire businessman Nick Politis, the PR company working for AADA has confirmed.

“So many of these dealers have represented the brand for decades, they’ve invested so much money in the brand, and they’ve put in so much work to bring customers to the brand,” Mr Voortman said.

“And now all of that hard work is being taken away with change to a new business model.

“They need compensation for that change, and we hope that the court agrees with that.”

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Technology

Insider Reveals a Cold Truth About Rockstar Games Amidst GTA 6 Pressure

The iconic action RPG franchise, Grand Theft Auto, is now confirmed to be incubating its next installment, almost a decade after GTA 5’s release. Earlier this year, the Rockstar Games had declared the ongoing production of GTA 6, to end years of speculations. However, fans still await a concrete release window.

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While the game has received an official mention, informants never stop giving out more. In fact, the plot of the game alongside some location details were leaked earlier. The updates, until now, were quite satiating to anticipating fans. However, an informant ran into some new information that could upset a lot of fans.

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Considering the new speculation, Grand Theft Auto’s upcoming game could face further delay. So, as some fans were expecting, GTA 6 may not release next year. A more likely year could be 2024!

GTA 6 reportedly faced a lot of hindrances

According to an industry informant, Rockstar Games has had a lot of trouble with GTA 6’s production, both financially and development-wise. Although a speculation, this information comes from a figure who has been consistent with his revelations from him.

As it happens, the informant of the name ‘Matheusvictorbr’ claimed the situation of GTA 6’s production in Portuguese.

When translated, the tweet reads, “Rockstar Games faced several issues in the development of its next title Grand Theft Auto. As well as the ambitions left on paper, which appeared to be promising, but in practice was a nightmare, both as Financial and in its development itself.”

A second tweet from him read, “Rockstar games now tend to keep their current version of the upcoming Grand Theft Auto title’s goal of following the caliber of RDRII.”

As fans can decipher, Rockstar Games’ faced a major dilemma during GTA 6 production. While Rockstar Games didn’t make it apparent on paper during the announcement, the company struggled financially and with the game’s development. As a result, the company is now aiming for the upcoming game to match the caliber of its other successful action RPG game, Red Dead Redemption 2.

With the developmental and financial dilemma in question, GTA 6’s release may not happen soon. However, officials have confirmed nothing related to Matheusvictorbr’s tweets, so fans may want to take the same with a grain of salt. Moreover, it’s likely that Rockstar Games has figured out a way to tackle the issues by now.

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The upcoming GTA game will feature a female playable protagonist for the first time, according to a report. In fact, the game’s story takes inspiration from Bonnie and Clyde, a real-life criminal couple from the 1900s.

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What do you think about Rockstar Games facing financial and developmental problems with GTA 6? Let us know in the comments!

WATCH THIS STORY: Biggest celebrities who lent their voices to the popular GTA franchise

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Entertainment

Jay Leno denies he ‘deliberately sabotaged’ Conan O’Brien’s The Tonight Show hosting gig

More than a decade after Jay Leno left and returned to The Tonight Showthe comedian has denied claims he sabotaged fellow late-night host Conan O’Brien‘s shot with the program.

In May 2009, the 72-year-old parted from The Tonight Show – now hosted by Jimmy Fallon – after 17 years and started hosting The Jay Leno Show at an earlier time on NBC, the same network.

O’Brien took over hosting duties of The Tonight Show after Leno’s departure, but ratings for both shows declined, and in 2010, Leno returned to host The Tonight Show until 2014.

Now, Leno has addressed the long-held speculation he played a part in ending O’Brien’s short-lived hosting stint on the program that became synonymous with Leno. Watch what he said above.

READMORE: Brisbane woman’s ravenous hunger caused by common condition

Jay Leno and Conan O'Brien
Conan O’Brien briefly replaced Jay Leno on The Tonight Show before Leno replaced his replacement. (Getty)

“It doesn’t work that way. You try and do the best you can, and it didn’t work,” Leno said in a recent interview with Bill Maher on his Random Club podcast.

After Leno returned to The Tonight ShowO’Brien left NBC – the network with which he had been working since 1993 – to host TBS’ Conan.

Leno denied he did anything to “deliberately sabotage” O’Brien in the interview, and also explained why he stayed at NBC amid the controversy, rather than moving to a different network.

READMORE: Princess Charlotte joins royals at Commonwealth Games

“Sometimes the czar you have is better than the one you’re going to,” Leno said.

“Then you have your old team shooting at you as well. I just figured let’s just play this out and see what happens. This all happened fairly quickly.”

Leno said he even considered joining ABC at the time, which was the home of Jimmy Kimmel Liveand recalled calling Kimmel to discuss the potential switch – but never followed up with Kimmel after he decided to stay at NBC.

“I suppose I should have called Jimmy and explained to him again, but I didn’t,” Leno said. “I don’t know why I didn’t. I just didn’t. I thought he probably would figure it out. But I think maybe he was hurt by that, and I apologized to him for that.”

READMORE: The cost of restaurant cancellations around the world

O’Brien, meanwhile, you have previously claimed he and Leno don’t speak with each otherand in a 2010 sit-down interview with the American 60 minutessaid he would never have done to Leno what Leno allegedly did to him.

“He went and took that show back and I think in a similar situation, if roles had been reversed, I know – I know me, I wouldn’t have done that,” O’Brien, 59, said on the show.

O’Brien, at the time, said he would not have “surrendered The Tonight Show and handed it over to somebody publicly and wished them well – and then… six months later… But that’s me, you know.”

“Everyone’s got their own, you know, way of doing things,” O’Brien said, and added that he had been in Leno’s position, he would have “done something else, [gone] someplace else.”

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Angelina Jolie had a strained relationship with her actor father Jon Voight after her parents split when she was young.  She dropped her dad's last name for her early on in her career, opting for her mother's maiden name for her, Jolie.  Ange refused to speak to Jon for six years after he said during a 2002 interview that he believed his daughter had "serious mental problems".  The pair have since reconciled, and Jon is now a doting grandfather to Angelina's six children.

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US

Biden issues second executive order to protect abortion access

President Biden on Wednesday issued an executive order to protect people’s ability to travel out of state to access abortion.

The big pictures: This is the second executive order the president has issued to preserve abortion access after the Supreme Court’s ruling overturning Roe v. Wade.

State of play: Biden signed the executive order during the first meeting of the White House’s Task Force on Reproductive Health Care, which is focused on coordinating the federal government’s efforts on reproductive health.

Details: The executive order directs the Department of Health and Human Services to “consider action to advance access” to reproductive health services, including through Medicaid for patients who travel out of state.

  • Biden is also asking HHS Secretary Xavier Becerra to consider “all appropriate actions” to ensure that health providers follow federal nondiscrimination laws so that people can “receive medically necessary care without delay.”
  • Becerra must also “evaluate and improve research, data collection, and data analysis efforts” on maternal health.

What he’s saying: Biden said this executive order will respond to “the health care crisis that has unfolded since the Supreme Court overturned Roe and that women are facing all across America.”

  • The order will “help safeguard access to health care, including the right to choose and contraception. [It] promotes safety and security of clinics, patients and providers, and protect patients’ privacy and access to accurate information.”
  • “I believe Roe got it right. It’s been the law for close to 50 years. And I committed to the American people that we are doing everything in our power safeguard access to health care, including the right to choose that women had under Roe v Wade, which was ripped away by this extreme court.”

Zoom out: Although the Biden administration has taken several steps to respond to the Supreme Court ruling, the executive branch’s role when it comes to protecting abortion care is limited without congressional action.

Go deeper:

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Technology

Researchers Have Taught Machines How to Follow Lego Instruction Manuals

The enduring appeal of Lego comes not from the complexity of the sets, nor the adorable minifigure versions of pop culture icons, but from the build process itself, and turning a box of seemingly random pieces into a completed model. It’s a satisfying experience, and another one that robots might steal from you one day, thanks to researchers at Stanford University.

Lego’s instruction manuals are a masterclass in how to visually convey an assembly process to a builder, no matter what their background is, their experience level, or what language they speak. Pay close attention to the required pieces and the differences between one image of the partly-assembled model and the next, and you can figure out where all the pieces need to go before moving on to the next step. Lego has refined and polished the design of its instruction manuals over the years, but as easy as they are for humans to follow, machines are only just learning how to interpret the step-by-step guides.

One of the biggest challenges when it comes to machines learning to build with Lego is interpreting the two-dimensional images of the 3D models in the traditional printed instruction manuals (although, several Lego models can now be assembled through the company’s mobile app, which provides full 3D models of each step that can be rotated and examined from any angle). Humans can look at a picture of a Lego brick and instantly determine its 3D structure in order to find it in a pile of bricks, but for robots to do that, the researchers at Stanford University had to develop a new learning-based framework they call the Manual-to-Executable-Plan Network — or, MEPNet, for short — as detailed in a recently published paper.

Not only does the neural network have to extrapolate the 3D shape, form, and structure of the individual pieces identified in the manual for each step, it also needs to interpret the overall shape of the semi-assembled models featured in every step, no matter their orientation. Depending on where a piece needs to be added, Lego manuals will often provide an image of a semi-assembled model from a completely different perspective than the previous step did. The MEPNet framework has to decipher what it’s seeing, and how it correlates to the 3D model it generated as illustrated in previous steps.

Screenshot: Ruocheng Wang, Yunzhi Zhang, Jiayuan Mao, Chin-Yi Cheng, and Jiajun WuScreenshot: Ruocheng Wang, Yunzhi Zhang, Jiayuan Mao, Chin-Yi Cheng, and Jiajun Wu

The framework then needs to determine where the new pieces in each step fit into the previously generated 3D model by comparing the next iteration of the semi-assembled model to previous ones. Lego manuals don’t use arrows to indicate part placement, and at the most will use a slightly different color to indicate where new pieces need to be placed — which may be too subtle to detect from a scanned image of a printed page. The MEPNet framework has to figure this out on its own, but what makes the process slightly easier is a feature unique to Lego bricks: the studs on top, and the anti-studs on the underside that allow them to be securely attached to each other . MEPNet understands the positional limitations of how Lego bricks can actually be stacked and attached based on the location of a piece’s studs, which helps narrow down where on the semi-assembled model they can be attached.

So can you drop a pile of plastic bricks and a manual in front of a robot arm and expect to come back to a completed model in a few hours? Not quite yet. The goal of this research was to simply translate the 2D images of a Lego manual into assembly steps a machine can functionally understand. Teaching a robot to manipulate and assemble Lego bricks is a whole other challenge — this is just the first step — although we’re not sure if there are any Lego fans out there who want to pawn off the actual building process on a machine.

Where this research could have more interesting applications is potentially automatically converting old Lego instruction manuals into the interactive 3D build guides included in the Lego mobile app now. And with a better understanding of translating 2D images into three-dimensional brick-built structures, this framework could potentially be used to develop software that could translate images of any object and spit out instructions on how to turn it into a Lego model.

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US

Sen. Ron Johnson suggests ending Medicare, Social Security as mandatory spending programs

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Sen. Ron Johnson (R-Wis.) has suggested that Social Security and Medicare be eliminated as federal entitlement programs, and that they should instead become programs approved by Congress on an annual basis as discretionary spending.

Those who work in the United States pay Social Security and Medicare taxes that go into federal trust funds. Upon retirement, based on a person’s lifetime earnings and other factors, a retiree is eligible to receive monthly Social Security payments. Similarly, Medicare is the federal health insurance program that kicks in for people 65 and older, or for others who have disabilities.

In an interview that aired Tuesday on “The Regular Joe Show” podcast, Johnson, who is seeking a third term in the Senate, lamented that the Social Security and Medicare programs automatically grant benefits to those who meet the qualifications — that is, to those who had been paying into the system over their working life.

“If you qualify for the entitlement, you just get it no matter what the cost,” Johnson said. “And our problem in this country is that more than 70 percent of our federal budget, of our federal spending, is all mandatory spending. It’s on automatic pilot. It never — you just don’t do proper oversight. You don’t get in there and fix the programs going bankrupt. It’s just on automatic pilot.”

Johnson suggested that Social Security and Medicare be transformed into programs whose budgets are appropriated by Congress on an annual basis. I have pointed out that budgets for the Defense and Veterans Affairs departments are approved as discretionary spending.

“What we ought to be doing is we ought to turn everything into discretionary spending so it’s all evaluated so that we can fix problems or fix programs that are broken, that are going to be going bankrupt,” Johnson said. “As long as things are on automatic pilot, we just continue to pile up debt.”

Johnson’s comments prompted criticism from the White House and from Senate Majority Leader Charles E. Schumer (DN.Y.), who said Democrats would fight any attempt by Republicans to “pull the rug out from under our seniors.”

“The junior senator from Wisconsin wants to put Medicare and Social Security on the chopping block,” Schumer told reporters Wednesday. “He has argued that the benefits which millions of Americans rely on every day shouldn’t be guaranteed, but should be subject to partisan infighting here in Washington. He would like to revoke the guarantee of Medicare and Social Security and make them discretionary. Well, do you know what happens when we make things discretionary around here? All too often they get cut, or even eliminated. We don’t want to do that.”

A representative for Johnson’s office pushed back on the idea that Johnson wanted to eliminate Medicare or Social Security.

“The Senator’s point was that without fiscal discipline and oversight typically found with discretionary spending, Congress has allowed the guaranteed benefits for programs like Social Security and Medicare to be threatened,” Johnson spokeswoman Alexa Henning said in an email.

“This must be addressed by Congress taking its responsibilities seriously to ensure that seniors don’t need to question whether the programs they depend on remain solvent,” she added. “As he said, we need a process to save these programs and no one is doing anything to save them long term. We just continue piling up debt, mortgaging our children’s future, and putting these programs at risk.”

Asked Wednesday whether Senate Minority Leader Mitch McConnell (R-Ky.) would support such a plan, a representative for him pointed to his previous rejection of a proposal by Sen. Rick Scott (R-Fla.) that would have similarly increased Social Security and Medicare. In March, Johnson said he supported “most” of Scott’s plan and called it “a positive thing.”

On March 1, Sen. Mitch McConnell rebuked Sen. Rick Scott’s bill that the minority leader says will raise taxes and cut Medicare aid. (Video: Washington Post)

“If we’re fortunate enough to have the majority next year, I’ll be the majority leader. I’ll decide in consultation with my members what to put on the floor,” McConnell told reporters in March. “Let me tell you what would not be a part of our agenda: We will not have as part of our agenda a bill that raises taxes on half the American people and sunsets Social Security and Medicare within five years.”

Earlier this year, Johnson announced that he would seek reelection in November, despite a previous pledge to retire after two terms. He is widely expected to win his primary election next Tuesday.

Wisconsin Lt. Gov. Mandela Barnes, who is running for the Democratic nomination for Senate, criticized his would-be opponent’s remarks on entitlement programs.

“Ron Johnson is threatening to cut Social Security and Medicare,” Barnes tweeted Tuesday. “~surprise surprise~ the self-serving, multimillionaire Senator is trying to strip working people of the Social Security and Medicare benefits they’ve earned over a lifetime of hard work.”

According to the nonprofit Population Reference Bureau, Wisconsin ranks 17th in the nation in the percentage of the population 65 and older.

This was not the first time Johnson has made news for a proposal that prompted even other Republicans to distance themselves. In March, Johnson said he wanted to see the GOP repeal the Affordable Care Act if his party won the White House and the House and Senate majorities in 2024, something Republicans failed to do the last time they had majorities in Washington.

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Technology

Samsung’s self-repair program has finally launched – but there are limits

Samsung and iFixit have finally launched their self-repair program, allowing owners of a phone from the Galaxy S20 and S21 lines as well as the Tab S7 Plus to buy replacement parts.

The initial announcement of the self-repair program was made back in late Marchand not much has changed since. Across the three product lines (opens in new tab), you’ll be able to purchase repair kits for the screen and battery, charging port, and back glass; standalone batteries are not included. What’s new is access to free online repair guides that tell you how to fix the phone via step-by-step guidance that includes images.

repair packages

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Sports

In Perrottet and V’Landys’ stadium stoush, two men are appealing to two very different audiences | Andy Marks

There’s a saying: “Politics is a blood sport.”

New South Wales premier, Dominic Perrottet, could be forgiven for thinking it’s true after weathering a ministerial resignation and sacking another minister in a matter of days. It makes his decision to challenge the stadium upgrade aspirations of the Australian rugby league commission chair, Peter V’landys, to courageous play.

On declining to set a timeframe with the commission for up to $350m in slated stadium investments, the premier advised taxpayer funds would instead be prioritized for people “devastated by the major floods across NSW”.

V’landys in turn accused the government of using “human tragedy” to back out of what he described as a “deal” to refurbish suburban stadiums, among them Cronulla, Leichhardt and Brookvale.

Details of the proposed deployment of repurposed stadium funds have not been released. In justifying his decision, however, the premier cited his receipt of his government’s Floods Inquiry Report noting at least 1,366 people remain homeless because of the floods.

Despite early moves by the premier to visit affected areas and meet with residents and business owners, he has granted the immediate emergency response was “unacceptable”. The timing of the government’s subsequent response has also attracted criticism.

The promised Northern Rivers Reconstruction Corporation, with an initial budget of $300m, was not established until July, more than four months after the initial floods. Staffing and advisory positions are reportedly yet to be finalized. Meanwhile, displaced residents are contending with winter conditions and the prospect of further rains, with one local Lismore feeling he is “stuck in limbo”.

Flood recovery sits against the backdrop of the recent preview of the Perrottet government’s newly reconstructed Sydney Football Stadium.

This $824m facility foregrounds an additional $250-$300m for the planned upgrade of the rugby league stadium at Penrith. This outer western Sydney project, in the electorate of recently resigned deputy NSW Liberal leader, Stuart Ayres, is set to proceed, despite the halting of other proposed suburban ground renovations, and the abandonment of the promised $810m Sydney Olympic Park stadium refurbishment.

New facilities aside, the national rugby league competition has had its own challenges. Most recently, it was contending with the fallout from a seven-player boycott, for religious reasons, of a pride jersey the Manly club worn to promote LGTBQ+ awareness during the league’s women’s round. The move attracted accusations of hypocrisy over the willingness of the boycotting players to compete in a stadium named after an alcohol sponsor, and in jerseys branded with a gambling sponsor.

Questioned on the issue, V’landys observed his code is “the greatest game of all”, adding that “it’s inclusive” while being respectful of “people’s religious and cultural beliefs”. The social dimension of sport might prove challenging terrain to navigate for a sporting code that generates an estimated $115ma season in broadcast rights alone, with plans to explore access to US sports betting, which V’landys believes “could be one of the big revenue earners” for the NRL.

The NRL’s expansionist verve may also present a contrast with the ambitions of a premier seeking to emphasize the social and ethical values ​​of a 12-year-old government facing an election in March 2023. This is a contest the premier seeks to frame as people- focused. It is a campaign in which he will look to rebalance built or “hard” and social infrastructure priorities.

Not so long ago, the NSW government seemed to have heard the lessons from the election loss inflicted on its federal election colleagues. The June budget provided the clearest indication of that shift, when Perrottet’s treasurer, Matt Kean, emphasized the limits of hard infrastructure projects. “We must invest in more than just bricks and steel,” he said in pitching the pre-election economic blueprint. “We must,” he added, “choose to invest in our greatest asset – our people.”

There looks to be little room for a stadium push in that narrative.

In a none-too-subtle nod to the values ​​that swept the teal independents into power across blue-ribbon federal Liberal seats, the Perrottet-Kean budget made big commitments on the environment and clean energy. Less so on integrity.

An investment of $16.5bn in programs for women was a budget centrepiece. Contrast this with the NRL’s trajectory, which – despite the strong emergence of, and investment, in a female competition – remains comparatively male-dominated in terms of revenue generation, sports-betting profile, and broadcast coverage. In this light, a clash of values, certainly priorities, was perhaps inevitable. It seems an appeal is being made to two very different audiences.

He has threatened he will be forced within “two or three” days to make a call on whether to hold the NRL grand final in NSW or take it interstate.

V’landys has in the past been lauded for his “strong leadership” of the NRL, even dubbed “Saint Peter” by one commentator, for ensuring his code was “the first major sport in Australia to emerge from the [2020] Covid-19 shutdowns”. Just last month, in his capacity as Racing NSW chief executive, he lunched with Queen Elizabeth II at Windsor Castle in recognition of his “contribution to racing”.

The demonstrable influence of V’Landys stands in contrast to a relatively new premier striving to maintain his authority over a government hobbled by an integrity crisis, contending with a record budget deficit, and staring down a looming election against a highly competitive Labor opposition.

Underestimating political resolve, even in these circumstances, would be a mistake.

Having featured heavily during the 2019 state election campaign, the issue of stadiums is again shaping as a spectator sport in NSW politics. Two men are locked in a contest unlikely to produce a clear victor.

Meanwhile, the voices of flood victims might continue to remain lost in the crowd.

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US

Pentagon deleted texts from key Trump officials after Jan. 6, watchdog group says

A government watchdog group said Tuesday that the Pentagon “wiped” text messages from the cell phones of key Trump administration Defense Department officials after the Jan. 6 attack on the Capitol, and is now urging Attorney General Merrick Garland to launch a “cross-agency investigation into the possible destruction of federal records.”

American Oversight, which describes itself as a nonprofit watchdog that uses public records requests to fight corruption, filed several Freedom of Information Act requests within days of Jan. 6, 2021, seeking text messages and other communications among senior Pentagon officials including acting Defense Secretary Chris Miller, his chief of staff, Kash Patel, and Secretary of the Army Ryan McCarthy.

In March, the Pentagon filed court documents acknowledging that text messages belonging to those individuals had been deleted — but framed that action as standard operating procedure whenever an employee leaves the department.

“When an employee separates from DOD or Army he or she turns in the government-issued phone, and the phone is wiped,” the Pentagon wrote in response to American Oversight’s FOIA lawsuit. “For custodians no longer with the agency, the text messages were not preserved and therefore could not be searched.”

But in their letter to Garland on Tuesday, American Oversight accused the Pentagon of knowingly erasing records under active FOIA — and framed this deletion as another effort by these agencies to obscure the actions of administration officials.

“In short, DOD has apparently deleted messages from top DOD and Army officials responsive to pending FOIA requests that could have shed light on the actions of top Trump administration officials on the day of the failed insurrection,” American Oversight Executive Director Heather Sawyer wrote.

The deletion of DOD officials’ text messages was first reported by CNN.

PHOTO: In this July 3, 2022, file photo, an aerial view of the Pentagon is shown.

In this July 3, 2022, file photo, an aerial view of the Pentagon is shown.

Bill Clark/CQ-Roll Call, Inc via Getty Images, FILE

Sawyer urged Garland to probe not only the Pentagon’s conduct, but also the US Secret Service’s apparent deletion of their agents’ text messages.

“American Oversight accordingly urges you to investigate DOD’s actions in allowing the destruction of records potentially relevant to this significant matter of national attention and historical importance,” the letter said.

Reached for comment, Army spokesperson Col. Cathy Wilkinson told ABC News, “It is our policy not to comment on ongoing litigation.”

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Technology

Researchers Warns of Large-Scale AiTM Attacks Targeting Enterprise Users

AiTM Phishing Attacks

A new, large-scale phishing campaign has been observed using adversary-in-the-middle (AitM) techniques to get around security protections and compromise enterprise email accounts.

“It uses an adversary-in-the-middle (AitM) attack technique capable of bypassing multi-factor authentication,” Zscaler researchers Sudeep Singh and Jagadeeswar Ramanukolanu said in a Tuesday report. “The campaign is specifically designed to reach end users in enterprises that use Microsoft’s email services.”

Prominent targets include fintech, lending, insurance, energy, manufacturing, and federal credit union verticals located in the US, UK, New Zealand, and Australia.

CyberSecurity

This is not the first time such a phishing attack has come to light. Last month, Microsoft disclosed that over 10,000 organizations had been targeted since September 2021 by means of AitM techniques to breach accounts secured with multi-factor authentication (MFA).

The ongoing campaign, effective June 2022, commences with an invoice-themed email sent to targets containing an HTML attachment, which includes a phishing URL embedded within it.

AiTM Phishing Attacks

Opening the attachment via a web browser redirects the email recipient to the phishing page that masquerades as a login page for Microsoft Office, but not before fingerprinting the compromised machine to determine whether the victim is actually the intended target.

AitM phishing attacks go beyond the traditional phishing approaches designed to plunder credentials from unwitting users, particularly in scenarios where MFA is enabled – a security barrier that prevents the attacker from logging into the account with only the stolen credentials.

AiTM Phishing Attacks

To circumvent this, the rogue landing page developed using a phishing kit functions as a proxy that captures and relays all the communication between the client (ie, victim) and the email server.

“The kits intercept the HTML content received from the Microsoft servers, and before relaying it back to the victim, the content is manipulated by the kit in various ways as needed, to make sure the phishing process works,” the researchers said.

CyberSecurity

This also entails replacing all the links to the Microsoft domains with equivalent links to the phishing domain so as to ensure that the back-and-forth remains intact with the fraudulent website throughout the session.

Zscaler said it observed the attacker manually logging into the account eight minutes after the credential theft, following it up by reading emails and checking the user’s profile information.

What’s more, in some instances, the hacked email inboxes are subsequently used to send additional phishing emails as part of the same campaign to conduct business email compromise (BEC) scams.

“Even though security features such as multi-factor authentication (MFA) add an extra layer of security, they should not be considered as a silver bullet to protect against phishing attacks,” the researchers noted.

“With the use of advanced phishing kits (AiTM) and clever evasion techniques, threat actors can bypass both traditional as well as advanced security solutions.”

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