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Cyber defence unit 'may use hackers'

Written By Unknown on Selasa, 22 Oktober 2013 | 23.43

22 October 2013 Last updated at 02:20 ET
Mustafa al-Bassam

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Watch Susan Watts' full Newsnight film, in which former Lulzsec hacker Mustafa al-Bassam and Dr David Day, who helped convict him, meet for the first time

Convicted computer hackers could be recruited to the UK's cyber defence force if they pass security vetting, the head of the new unit has said.

Lt Col Michael White told BBC Newsnight he would "look at individuals in the round" when assessing applicants.

Recruitment would be focused on "capability development" rather than "personality traits", he added.

The Joint Cyber Reserve Unit was announced by the government in September.

Under the £500m initiative, the Ministry of Defence (MoD) is set to recruit hundreds of reservists as computer experts to work alongside regular armed forces.

The unit will defend national security by safeguarding computer networks and vital data, and it will also launch strikes in cyberspace if necessary.

It is hoped the move will address the shortage of people with the technological skills and knowledge to protect corporations, the military, and government systems from cyber attacks.

'Civil liberties'

The MoD said the recruitment, which started in early October, would target regular personnel leaving the armed forces, current and former reservists with the required skills, and civilians with the appropriate technological knowledge.

When asked by Newsnight whether someone with the right skills would be ruled out if they had a criminal record for hacking, Lt Col White said: "I think if they could get through the security process, then if they had that capability that we would like, then if the vetting authority was happy with that, why not?

"We're looking at capability development, rather than setting hard and fast rules about individual personality traits."

Defence Secretary Philip Hammond unveiled plans for the cyber defence unit last month.

Philip Hammond

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Defence Secretary Philip Hammond: "The armed forces, overall, do not have an absolute bar on people with criminal convictions"

Mr Hammond also told Newsnight he could foresee circumstances in which convicted hackers could be employed.

"Each individual case would be looked at on its merits," he said.

"The conviction would be examined in terms of how long ago it was, how serious it was, what sort of sentence had followed. So I can't rule it out."

But one former hacker told Newsnight the government had already undermined its chances of attracting talented individuals.

Mustafa al-Bassam, now a computer science student at King's College London, was the youngest hacker in the Lulzsec group - which recently targeted organisations such as the FBI in the US and Britain's Serious Organised Crime Agency (Soca) in a 50-day hacking campaign.

He told the BBC that revelations by former US contractor Edward Snowden about the extent of mass surveillance carried out by intelligence agencies - including the US' National Security Agency (NSA) and Britain's GCHQ - had dissuaded him from using his cyber skills to protect UK national security.

"I can understand the need for a government to protect itself, but when you go ahead and stomp on everyone's civil liberties - as we've seen with all the mass surveillance stories that have been out over the past year - I think you can rest assured that you're going to repel talented people," he said.

'Industrial scale' attacks

Dr David Day, a Sheffield Hallam University computer forensics expert who provided evidence for Mr Al-Bassam's conviction, told Newsnight it was a "terrible shame" someone convicted of malicious hacking would find it difficult to get a job in the industry.

"If they have those abilities and those skills, then some of the best talent we can't use," he said.

Cyber attacks and crime have become more common in recent years.

In July, it emerged Britain was seeing about 70 sophisticated cyber espionage operations a month against government or industry networks,

GCHQ director Sir Iain Lobban told the BBC business secrets were being stolen on an "industrial scale".

And in a written statement in December last year, Cabinet Office Minister Francis Maude said 93% of large corporations and 76% of small businesses had reported a cyber breach in 2012.

Watch Susan Watts' film in which Mustafa al-Bassam and Dr David Day come face to face for the first time on Newsnight on BBC iPlayer and the Newsnight website.


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Critics dismiss new data legislation

22 October 2013 Last updated at 10:59 ET

Critics have said new European data-protection laws have loopholes that could render the legislation useless.

The rules are the first attempt to create strong data-protection laws for Europe's 500 million citizens.

They include a clause to strengthen online privacy in the wake of whistleblower Edward Snowden's allegations about US spying.

They also set out ways citizens can erase their personal data - the so-called right to be forgotten.

Industry lobbying

Lawmakers have toughened the initial draft regulation, prepared by the European Commission, to make sure companies no longer share European citizens' data with authorities of another country, unless explicitly allowed by EU law or an international treaty.

This is a direct response to allegations from former intelligence analyst Edward Snowden about the US National Security Agency (NSA) snooping on European citizens' data.

Another clause seeks to limit user profiling, requiring companies to explain their use of personal data in detail to customers and to seek prior consent.

To ensure that the regulation is properly applied, most businesses would have to designate or hire data-protection officers.

After 18 months of fierce industry lobbying, the legislation was passed with a 49-3 committee vote, with one abstention.

The European Parliament still needs to hold another vote and seek agreement with the EU's 28 member states though — which is likely to result in some changes.

"Tonight's vote sends a clear signal - as of today, data protection is made in Europe," said EU justice commissioner Viviane Reding.

But French consumer group La Quadrature du Net was disappointed with the draft law.

"There are some big loopholes that could void the effectiveness of the whole legislation," said Jeremie Zimmermann, from the organisation.

He said vague wording such as "legitimate interest" could allow businesses to "exonerate themselves from the legislation".

"A business could say that it is a legitimate interest to collect data in order to provide a better service for consumers or to enable it to make money," he said.

He was also surprised that the rules around data profiling were not tougher.

"Machines that crunch data are used to make important decisions such as who can get a job, who can get a loan, who can get insurance," he said.

"This legislation allows firms to continue to collect and process more data and profile individuals."

Comfort blanket

Bridget Treacy, partner and head of UK privacy and cyber-security at law firm, Hunton & Williams thinks that companies will have to ring the changes in order to comply with the legislation.

"It enhances consumer rights and means businesses are going to have to focus on making sure they know what data they've got and what they do with it," she said.

"One of the requirements of the legislation is that companies only collect the minimum amount of data that they require for a specific purpose. Firms are going to have to be much clearer about what data they are collecting and why."

"It means that they will not be able to hold on to data as a bit of a comfort blanket," she added.

Companies that fail to comply with the new law could be subject to a fine of up to 5% of their annual turnover — which could be hundreds of millions of dollars, or even a few billion dollars for internet giants such as Google.

Now begins a long process during which the approved legislation will be debated among between the European Commission, the European Parliament and the European Council.

It is expected to be concluded in March.


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Windows 8.1 glitch hits RT owners

21 October 2013 Last updated at 06:11 ET

The latest Windows update is causing problems for owners of Microsoft's Surface RT gadgets.

The Windows 8.1 update has reportedly meant some of the touchscreen devices will not start up properly.

Microsoft has removed the update from its website while it looks into what has caused the problems.

At the same time, many people are reporting that the 8.1 update for Internet Explorer does not work well with Outlook and some Google services.

Recovery effort

Soon after the update's global release, on 17 October, Microsoft started to receive reports that once it had been applied to RT tablets and laptops, the gadgets had frozen during the boot-up process.

Windows RT is the version of Microsoft's operating system built to work with mobile and portable devices that use Arm chips. By contrast, other version of Windows run on machines that use processors from Intel or AMD.

Soon after the problems were reported, Microsoft pulled Windows RT 8.1 from its update site.

The update was pulled while it was "investigating a situation affecting a limited number of users", it explained in a support forum response. It added that it was working on a fix for the problem it had caused.

Prior to the official release, Windows RT user Scott Williams found a way to help people with tablets crippled by the update. Mr Williams created a start-up drive with a USB stick that helped bring stricken RT gadgets back to life.

Squashed search

The version of Internet Explorer 11 that ships with Windows 8.1 update has also caused problems for many people.

The updated version of the web browser has caused Google search results to be mashed together at the left hand side of a display. Others have reported IE11 has caused similar usability problems with Google's Play website and Music service.

In a statement, Microsoft said changes Google had made to its search and other sites were responsible for the glitches. Despite this, Microsoft has now made changes of its own to fix the problem, which can be turned on by unticking an option in IE11 that makes the browser use "Microsoft Compatibility lists".

Microsoft has also issued advice about how to get IE11 working with web-accessible versions of its Outlook email program that had become unusable with the new version of the browser.


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Cheney: Heart implant hack credible

21 October 2013 Last updated at 09:06 ET

Dick Cheney, the former US vice-president, has revealed that he had his heart implant modified for fear of terrorist attack.

Mr Cheney's doctor disabled the heart defibrillator's wireless function in 2007 to prevent would-be assassins from interfering with it and causing a fatal heart attack.

A similar scenario featured in an episode of the hit TV series Homeland.

"I found it credible," Mr Cheney told CBS TV's 60 Minutes programme.

"I know from the experience we had, and the necessity for adjusting my own device, that it was an accurate portrayal of what was possible,'' said Mr Cheney, who was President George W Bush's right-hand man during the "war on terror".

'Close proximity'

"Implantable Cardioverter Defibrillators (ICDs) can be vulnerable to a range of electronic signals," said Adrian Culley, global technical consultant for security company Damballa.

"Research has been undertaken which shows it is entirely feasible to potentially exploit someone's ICD, given close proximity to the individual."

But he said the chance of a successful attack on Mr Cheney would have been "slim".

An ICD monitors heartbeat and if it detects an irregular rhythm, sends low-energy electrical pulses to prompt the heart to beat at a normal rate.

In 2008, researchers from the University of Washington, the University of Massachusetts Amherst, and Harvard Medical School, claimed that they could carry out software radio-based attacks on ICDs that could "compromise patient safety and patient privacy".

More recent research has also highlighted the security and data privacy weaknesses of some implantable medical devices.

"Since the experiments in 2008, experts have acknowledged that greater security of these devices is required, and encryption has been introduced to prevent the loss of personal data," a spokesman for the Institute of Risk Management told the BBC.

"As with all electronic devices, the possibility of targeted hacking still exists given the right physical situation, expert knowledge of the device and the necessary equipment.

"However, it is much more likely that a strong electromagnetic field will cause the device to malfunction," he said.

Cardiac arrest

The American Heart Association warns ICD users against too much close-range exposure to a number of electronic devices, from mobile phones to metal detectors, retail security systems to powerful CB radios.

But it points out that, in most cases, the risks are small.

Cardiologist Jonathan Reiner has co-written a book with Mr Cheney called, Heart: An American Medical Odyssey, chronicling the former vice-president's many heart problems.

Mr Reiner told 60 Minutes that on 11 September 2001, the day of the al-Qaeda attacks on New York and Washington, the potassium in Mr Cheney's blood rose to levels that could have caused abnormal heart rhythms and cardiac arrest - a condition called hyperkalemia.

Mr Reiner feared the vice-president was going to die that night.

Mr Cheney, 72, has a long history of heart troubles culminating in a heart transplant last year.


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Wikipedia in fake entries probe

21 October 2013 Last updated at 14:39 ET

Wikipedia editors have expressed "shock and dismay" at the discovery of hundreds of user accounts set up to make paid-for entries.

Paid-for advocacy and the adoption of fake "sockpuppet" identities for promotional purposes are against the free web encyclopaedia's policies.

Sue Gardner, executive editor of the Wikimedia Foundation, said "as many as several hundred" accounts were suspect.

Editors have blocked or banned more than 250 accounts, she added.

"Our goal is to provide neutral, reliable information for our readers, and anything that threatens that is a serious problem," said Ms Gardner.

"We are actively examining this situation and exploring our options."

Wikipedia considers paid-for advocacy a "black hat" practice, she said, that "violates the core principles that have made Wikipedia so valuable for so many people."

The Wikimedia Foundation is a non-profit organisation that operates Wikipedia, a free online encyclopaedia.

According to investigations by the service's editors, most of the disputed entries appear to originate from a US company called Wiki-PR, which claims to "build, manage, and translate Wikipedia pages for over 12,000 people and companies."

'Promotional tone'

The editors say promotional entries - which were posted by an account called "Morning227" as well as by others - have been commissioned by Silicon Valley dot-coms, small financial institutions, authors, medical doctors, a musician and an oil company, amongst others.

Citations are taken from a number of blog-like websites that accept "citizen journalist" material, including CrunchBase, DigitalJournal.com and Technorati.com.

Entries "often have a promotional tone and always contain material that is either neutral or that is flattering of their subjects, never material that is critical or negative," Wikipedia said.

However, Wiki-PR disputed the idea it had broken Wikipedia's rules by promoting or advertising its clients' agendas, saying it merely wanted to ensure they were "presented accurately" on the site.

"The PR in Wiki-PR is a misnomer - we're a research and writing firm," Jordan French, the firm's chief executive, told the BBC.

"We research the subject and write in an accurate and properly referenced way about it, filling a hole at Wikipedia for many subjects - concepts, companies, people, even astronomy - in which other editors lack an interest.

"We're part of the fabric of Wikipedia - an integral part - and useful where volunteers don't want to or cannot put in the time to understand a subject, find sources, code, upload, and professionally monitor a page. "


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Obama addresses healthcare glitches

21 October 2013 Last updated at 21:45 ET
Barack Obama

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President Obama talks about the problems with the website

US President Barack Obama has said there is "no excuse" for the glitches that have plagued the rollout of an element of his 2010 healthcare law.

At the White House, Mr Obama said that despite their problems, the insurance enrolment websites were enabling people to sign up for affordable coverage.

Those attempting to sign up for health insurance have reported persistent issues since the 1 October rollout.

Mr Obama said a "tech surge" was under way to fix the snags.

The website's issues have been overshadowed by the recent partial government shutdown, in which Republican lawmakers attempted to gut the law through budgetary brinkmanship.

'No sugar coating'

In Monday's Rose Garden event, Mr Obama conceded that healthcare.gov "hasn't worked as smoothly as it was supposed to work".

Continue reading the main story

For 30 minutes in the Rose Garden, President Obama became America's customer-care-manager-in-chief as he explained the glitches in the healthcare.gov website. In parts this sounded more like an infomercial than a speech.

"Nobody's madder than me," he said, in that rather unconvincing way he tries to affect irritation. To that end he promised a "tech surge", with some of the country's brainiest geeks from the private sector working 24/7. But his main message was that "Obamacare" is more than a website - it is about giving millions of uninsured Americans quality and affordable care.

The irony, of course, is the snags would have presented a far larger political problem for the White House had the Republicans not tried defund Obamacare by shutting down the federal government and haggling over the debt limit. Obamacare was being damaged by self-inflicted wounds at the very moment Tea Party Republicans were trying to kill it off.

"The number of people who've visited the site has been overwhelming, which has aggravated some of these underlying problems."

Mr Obama added: "There's no sugar coating - the website has been too slow, people have been getting stuck during the application process and I think it's fair to say that nobody's more frustrated by that than I am."

He said that notwithstanding the website's problems, there was "massive demand" and the homepage had been visited nearly 20 million times since its launch.

"Precisely because the product is good, I want the cash registers to work; I want the checkout lines to be smooth," said Mr Obama. "And there's no excuse for the problems, and these problems are getting fixed."

He was joined at Monday's event by people who have successfully enrolled during the first three weeks.

Janice Baker, a Delaware business owner who was the first person in her state to enrol for coverage through the exchange website, introduced Mr Obama.

She said she had "a number of frustrating attempts" to use the site, but kept trying as she had been rejected from insurance plans previously because of a pre-existing condition.

Ms Baker said she expected to save $150 (£93) a month with the policy she had signed up for on the exchange.

The website is supposed to be a clearinghouse for uninsured Americans searching for medical coverage.

Software issues
President Barack Obama reaches over to help an unidentified woman who started to lose her balance while he was speaking in the Rose Garden

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President Obama helps a woman who appeared to faint in the Rose Garden

The site acts both as a check on whether applications qualify for government subsidies for private insurance, as well as being the first enrolment step for specific plans.

The non-partisan Congressional Budget Office projects the exchanges will be the gateway for providing health coverage to an estimated seven million Americans during the first year.

The White House has said almost half a million people have applied for healthcare through both federal and state-run exchanges since 1 October.

Exchanges run by individual states do not appear to have been plagued to the same extent by malfunctions.

President Obama addressing the White House

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What is "Obamacare", and why are Republicans against it?

White House officials initially blamed the glitches on the heavy volume of visits to the site, but they recently conceded the flaws were larger and involved software and system design issues.

The Department of Health and Human Services, which runs the exchanges, said in a blog post it had already begun to make improvements.

But the administration has offered few details on who was being brought in from outside the government and the specific causes of the ongoing glitches.

'Costs too much'

Passed in 2010, the Affordable Care Act, commonly known as Obamacare, has rolled out in multiple steps, including coverage requirements on insurance companies and future tax penalties for those who remain uninsured.

Republicans unanimously oppose the law and have worked to undermine it since it was enacted.

Republican-led state governments have used their authority to frustrate its implementation. Republicans in Congress have repeatedly attempted to repeal the law or eliminate its funding, most recently by refusing to pass a budget in an attempt to force Mr Obama's hand. A subsequent 16-day shutdown of the federal government ended with no major concessions from Mr Obama.

"Obamacare costs too much and it's not working the way they promised," Senate Republican leader Mitch McConnell said on Monday.

"It's time for the president to consider delaying this rushed effort."

Health Secretary Kathleen Sebelius has also been criticised by Republican lawmakers for declining an invitation to testify about the snags on 24 October.

But a spokeswoman for the health department said the secretary would testify at some point.

White House spokesman Jay Carney said on Monday there had been "for many months and years now a concentrated, concerted effort by critics of Obamacare to undermine it".

"There's clearly some joy being taken in some quarters by the experiences that some Americans have had, frustrating experiences that they've had, in trying to get information about affordable health insurance."

Although the law remains divisive, a recent Gallup poll suggests only 29% of the public favours a complete repeal.


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Apple suspends HMV app from AppStore

By Amelia Butterly and Jonathan Blake
Newsbeat reporters
HMV HMV re-launched its digital strategy with apps for iOS and Android

Apple has suspended the new HMV iPhone app only days after its release.

Yesterday HMV's owner, Hilco, said Apple wanted the retailer to remove a feature which allowed users to download music, giving them until 6pm on Monday 21 October to make the changes.

HMV chairman Paul McGowan said Apple had "approved the exact same version" last month and was unable to explain why they had changed their minds.

Continue reading the main story

It's about the fact that there were two hundred million digital downloads last year and HMV didn't have one of those

James Coughlan Managing director, HMV Digital

Apple confirmed the app was removed for violating App Store guidelines.

In a statement Hilco said: "HMV stressed that Apple's removal of the app only prevents further iPhone users from downloading the app and those who have already downloaded the app will continue to be able to use the app as before and will not notice any changes to the experience."

They said the app has been downloaded more than 10,000 times since it was released on 17 October.

"HMV's developers are working around the clock to deliver an updated version of the iOS app for Apple's approval," the company added.

Hilco claimed Apple had earlier approved the app but then raised concerns the day after it became available.

Continue reading the main story

Those who have already downloaded the app will continue to be able to use the app as before and will not notice any changes to the experience

Hilco

HMV launched the iOS app alongside an Android version, both allowing users to identify songs using image and sound recognition software.

Restructuring company Hilco bought HMV in April, after it fell into financial trouble earlier in the year.

The HMV app was seen as a potential challenge to Apple's iTunes service, Amazon and others.

"It's about the fact that there were two hundred million digital downloads last year and HMV didn't have one of those," said James Coughlan, managing director of HMV Digital.

In February, Apple announced it had sold 25 billion songs via its iTunes store.

Follow @BBCNewsbeat on Twitter


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Blackberry resumes BBM rollout

22 October 2013 Last updated at 05:51 ET

Blackberry has resumed a phased rollout of its BBM messaging app for Android and Apple devices after September's botched launch.

The free app is now available for download on Google Play, the App Store and selected Samsung App Stores.

But users had to register an email address after downloading the app then wait in line until they were told they could begin using it, Blackberry said.

Last month Blackberry had to delay the launch after the software was leaked.

The company said that "in just seven hours [following the leak], about one million Android users were using the unreleased version of BBM for Android".

This had caused unspecified "issues" for the launch, it said.

About six million people had signed up for information abut BBM at BBM.com, the company said.

"To help manage this unprecedented pent-up demand for BBM, we are implementing a simple line-up system to ensure a smooth rollout," wrote company spokesman Andrew Bocking.

Continue reading the main story

Blackberry Messenger began life as a simple instant messaging tool offering owners of the firm's handsets a free alternative to SMS texts.

Over the years, the company has added functions including sending pictures, audio messages and other files as well as making voice and video calls, all over the internet.

In addition it offers a Groups facility, which allows users to share photos, lists and calendar appointments with trusted contacts.

A recent addition is Channels - a feature allowing brands and celebrities to send news and status updates to users who want to follow them through the app.

Those who had already signed up for information about BBM were able to start using the app straight away, he said.

Others would have to wait in line, but the company did not specify how long the wait might be.

Struggling

The botched launch was the latest in a run of bad news for the struggling Canadian firm, which is cutting 4,500 jobs, made a net loss of $965m (£600m) in the second quarter of 2013, and has agreed a $4.7bn sale to a consortium led by Fairfax Financial.

Blackberry has failed to keep pace with Apple and devices running Google Android or Microsoft's Windows Phone operating systems.

In September, there were reports that it was exiting the consumer market to concentrate on providing services to business customers - reports it has since played down.

But the Blackberry Messenger product - known as BBM - has proved very popular, particularly with younger users.

The software offers an alternative to SMS messages - which cost money on some subscription plans - as well as other voice and screen-sharing capabilities.


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Facebook adds alerts to death clips

22 October 2013 Last updated at 10:43 ET By Leo Kelion Technology reporter

Facebook has begun adding warning messages to videos on its site showing decapitations and other instances of extreme violence.

The alert states: "Warning! This video contains extremely graphic content and may be upsetting."

The move follows its decision to allow the clips to be posted to its site following a temporary ban on the material, introduced in May.

The prime minister and Facebook's own advisors had criticised the decision.

The social network said that it wished to allow its users - who can be as young as 13 - to share and condemn the material. It added that it would continue to block clips if the original poster glorified or celebrated the violence shown.

On Monday the firm said it might, in time, add warnings or other controls, but initially allowed a recently uploaded decapitation clip to appear unaltered.

This prompted David Cameron to tweet: "It's irresponsible of Facebook to post beheading videos, especially without a warning. They must explain their actions to worried parents."

US charity the Family Online Safety Institute - a member of the social network's Safety Advisory Board - also raised concern saying it had not been alerted to the change of policy despite previously stating such videos "crossed the line".

A spokeswoman for Facebook declined to comment about its latest move.

She had previously defended its decision to allow a video showing a woman being beheaded - believed to have been filmed in Mexico - to be shared despite the fact it bans images and videos showing a woman's "fully exposed breast".

"Facebook has long been a place where people turn to share their experiences, particularly when they're connected to controversial events on the ground, such as human rights abuses, acts of terrorism and other violent events," she said.

"People are sharing this video on Facebook to condemn it. If the video were being celebrated, or the actions in it encouraged, our approach would be different."

A UK member of Facebook's Safety Advisory Board said he still had concerns despite the addition of the warnings.

"It's a step forward but it's still horrific content," said Will Gardner, chief executive of Childnet.

He added that he needed to look into the changes before commenting further.

Police concern

Until Monday Facebook had also featured adverts alongside the video of the Mexican murder despite the fact several users had complained to it about the material.

Car-sharing firm Zipcar, whose service was one of those shown, said it was disappointed by the discovery.

"We want you to know that we do not condone this type of abhorrent content being circulated on Facebook," it said in a statement.

"We have expressed to Facebook in the past the critical need to block offensive content from appearing and we will continue to engage with them on this important matter."

Facebook has since disabled Zipcar and other firms' ads from appearing on the page in question.

One of the Facebook accounts that had requested the death video be removed belongs to the South Australia Police force (Sapol).

It said it had been contacted by a member of its local community about the matter.

Shelaye Boothey, director of Sapol's media and public engagement section, told the BBC: "Ultimately this is a decision that Facebook is entitled to make, however anyone concerned with the publishing of the video should continue to express their concerns through the appropriate Facebook channels."

Facebook logo

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Hostage UK - a charity that supports kidnap victims and their families - added that it was also urging Facebook to reconsider its decision.

"We know first-hand the acute distress these videos and images cause and we stress that this continues to be a source of worry to the families of today's hostages," it said.

"We can see no useful purpose being served by the decision to make such recordings available. The public are well aware of the brutalities committed and a public showing of such material adds nothing, other than cause further unimaginable suffering."

However, some freedom of speech campaigners believe that Facebook should not block the videos, even if they do celebrate the violence contained.

French digital rights group La Quadrature Du Net described the actions as "privatised censorship".

"It plays a profoundly anti-democratic role when it makes any such choice, whatever the limits are and whatever the good reasons it uses to make the decision," said the organisation's co-founder Jeremie Zimmermann.


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Nokia reveals phablets and tablets

22 October 2013 Last updated at 11:18 ET By Leo Kelion Technology reporter

Nokia has unveiled its first phablets - extra-large phones - as well as its first tablet computer.

The Windows Phone handsets introduce the ability to change which objects in a photo are in focus after it is taken.

The Windows RT tablet has a 4G data chip, unlike Microsoft's recently unveiled Surface 2.

Nokia World in Abu Dhabi is likely to be remembered as the Finnish firm's last major event before it completes the sale of its hardware unit.

Microsoft agreed to buy the business for 5.4bn euros ($7.4bn; £4.6bn) in a deal which the companies have said should be finalised by early 2014.

Nokia's former chief executive Stephen Elop, who resigned to become head of Microsoft's devices and services division, admitted to the BBC that choosing Windows Phone rather than Android as an operating system had presented the company with "a very difficult challenge."

"It's been hard. It's a very difficult challenge; it's a very competitive environment, but we're pleased with the fact that we're building momentum," he said.

'Jarred'
Continue reading the main story

It's been hard. It's a very difficult challenge; it's a very competitive environment, but we're pleased with the fact that we're building momentum."

End Quote Stephen Elop Chief executive, Nokia

One analyst said the sale should aid the US firm's efforts to promote its mobile platforms against the market leaders, Google Android and Apple iOS.

"For the last two years Microsoft and Nokia's marketing efforts have jarred against each other at times - having one big effort should be better than two smaller ones," said Martin Garner, from the consultancy CCS Insight.

"Microsoft can also spend a lot more marketing the devices than Nokia could. That does seem to be a key criteria - both Samsung and Apple's spends are very high indeed."

Microsoft's share of the handset and tablet markets is growing but from a relatively low level, according to market research firm Gartner.

Windows Phone took a 3.3% share of smartphone sales in the April-to-June quarter, said the firm, with Nokia proving the most popular brand.

It also forecast that about 1.7% of all tablets shipped over 2013 as a whole would be powered by either Windows RT or the full Windows 8 operating system.

Big phones

Nokia showed off two phablets at the UAE launch. Both the Lumia 1520 and Lumia 1320 feature 6in (15.2cm) displays, allowing extra rows of apps to be displayed on their home screens than possible on smaller models.

The firm said that the extra space would also make it easier to use the phones' touchscreen keyboards, suggesting this would appeal to business users who used productivity software.

A new Beamer app will allow the phones to stream the contents of their screens onto to a web browser on a separate display. It works by sending data via Nokia's computer servers.

Another new app - Refocus - lets owners determine which parts of a photograph are in focus and which are blurred after it is taken. The phones achieve this by taking a series of images in quick succession at different focus lengths rather than replicating the light field effect captured by a Lytro camera.

Blackberry is among the other companies to have recently launched a phablet, but one expert said doubts about the Canadian firm's future meant that its existing users might be tempted to switch.

"There's definitely a chance for Nokia to gain ground, of course everyone else is interested in that space too," said Mr Garner.

"It's not a slam dunk, but Microsoft is as well placed as others - better in some respects."

First tablet

The Lumia 2520 becomes the only Windows RT tablet made by a manufacturer other than Microsoft.

Dell, Asus, Lenovo, Acer and Samsung had all initially backed the platform only to later change tack.

The operating system runs on an ARM-based chip allowing it to offer superior battery life to the full Windows 8 system running on tablets powered by x86 processors, but it does not support as many programs.

Nokia's tablet is slightly more compact than Microsoft's version and also distinguishes itself by supporting an optional 4G Sim card.

However, bearing in mind Microsoft has already taken a $900m writedown after weak sales of its original Surface RT tablet, one analyst questioned whether the firm would want to produce two competing models.

"I don't think that having two devices in that space makes a lot of sense," said Carolina Milanesi, consumer devices analyst at Gartner.

"I believe Microsoft may keep the Nokia model on as a cheaper consumer-targeted device focused on media consumption and gaming in order to capture more market share, and also keep on the more expensive Intel-based Surface Pro - but it will phase out the Surface 2 RT model."

More Ashas

Nokia also added three models to its Asha range of low-end handsets targeted at emerging markets and shoppers on a budget. They run Nokia's proprietary Series 40 OS rather than Windows Phone.

The most expensive of the devices, the Asha 530, now supports 3G data in addition to 2G, allowing faster internet access.

"It's important for Nokia and Microsoft to connect the next billion people," said Mr Elop, suggesting that Microsoft would find Asha's popularity a convenient way to promote other services such as its Skydrive cloud storage product.

But one market watcher questioned Asha's future.

"There's still quite a lot of demand for Asha in developing markets where the phones offer brand-value against other low-cost mass-market handsets," said Chris Green from the Davies Murphy Group consultancy.

"So, there's no sense to killing the business while it remains highly profitable.

"But will it be a core focus? Absolutely not. It will be a distraction and Microsoft will be keen to migrate users to the Windows Phone platform."


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