Packet-Sniffing Laws Murky as Open Wi-Fi Proliferates

Starbucks is rolling out free, unsecured Wi-Fi access at about 7,000 coffee shops across the United States beginning July 1. But will there be packet-sniffing with your latte?

The Seattle-based coffee concern’s move to lure customers with free internet comes amid a growing legal uncertainty about privacy on open Wi-Fi networks, kicked off by Google’s admission its Street View cars intercepted data on unsecured Wi-Fi networks in neighborhoods across the globe.

Google, in response to government inquiries and lawsuits, claims it is lawful to use packet-sniffing tools readily available on the internet to spy on and download payload data from others using the same open Wi-Fi access point.

“We believe it does not violate U.S. law to collect payload data from networks that are configured to be openly accessible (.pdf)  (i.e., not secured by encryption and thus accessible by any user’s device). We emphasize that being lawful and being the right thing to do are two different things, and that collecting payload data was a mistake for which we are profoundly sorry,” Google wrote Congress.

It’s not considered felony wiretapping “to intercept or access an electronic communication made through an electronic communication system that is configured to that such electronic communication is readily accessible to the general public,” according to the text of the federal wiretapping statute. Password protected — encrypted Wi-Fi networks — are not considered “readily accessible,” Google maintains.

That’s a position one former Justice Department prosecutor backs, although Google may have theoretically violated the rarely prosecuted Pen Register and Trap and Trap and Traces Device Act.

There’s no way to say how many unsecured hot spots dot the United States. McDonald’s announced in January that it would provide unsecured Wi-Fi access in 11,000 restaurants, and more businesses are expected to follow.

So far, government regulators aren’t sure whether Google committed any legal wrongdoing. Connecticut Attorney General Richard Blumenthal announced Monday that as many as 30 attorneys general were examining the lawfulness of Google’s actions. But Blumenthal never said the Mountain View, California, internet giant’s activities were unlawful, going so far as to say they were “potentially impermissible.”

“They certainly acknowledge, at the very least, that intercepting and gathering people’s data was wrong,” he said. “There may be a need to strengthen and enhance federal and state laws.”

French regulators, who are examining the legal issues with more than a dozen other countries, said data captured by Google includes e-mail passwords and content of electronic messages.

Joel Gurin, the Federal Communications Commission’s government affairs chief, said “Google’s behavior also raises important concerns. Whether intentional or not, collecting information sent over Wi-Fi networks clearly infringes on consumer privacy.”

Like Blumenthal, Gurin stopped short of declaring such snooping unlawful and instead reminded consumers to be wary of open Wi-Fi networks.

Marc Rotenberg, executive director of the Electronic Privacy Information Center, believes Google’s actions amount to wiretapping, and he asked the FCC to investigate.

What’s more, Rotenberg said U.S. policy should clearly spell out that such activity is illegal — all in a bid to encourage free Wi-Fi access and protect privacy.

“Telling everybody to race around and lock up their hot spots misses the point,” he said.

The Justice Department declined to state its views on the issue, and the U.S. courts have not clearly addressed the issue.

The closest court ruling was in January, when an Oregon federal judge ruled evidence of child pornography found on a local man’s computer through his open Wi-Fi network could be used against him in court, absent a warrant. In arguing to uphold the warrantless computer search, the government said privacy interests were nullified with unsecured Wi-Fi networks.

“Defendant’s unsecured wireless access point was open to anyone with a wireless modem, whether or not they were law enforcement,” (.pdf) the government argued. “Because defendant made no effort to keep or maintain his computer network private but maintained an access point open to all, no search occurred.” (.pdf)

U.S. District Judge Garr King agreed. (.pdf) The defendant, John Ahrndt, pleaded guilty to child pornography charges (.pdf) last week.

Where the World’s Millionaires Live: The Top 10 Countries

Where the World’s Millionaires Live: The Top 10 Countries

You can’t keep the rich down for long. Global wealth made a remarkable comeback in 2009, increasing by 11.5% to $111.5 trillion. That’s according to a new report, The Boston Consulting Group’s Global Wealth 2010 Report, released Thursday by Boston Consulting Group. The report breaks down wealth by region and by country, creating a geographic portrait of where the world’s wealth is accumulating and at what rate.

North America posted the largest absolute gain in households with assets under management. Its wealth totaled $4.6 trillion (a 15% jump over 2008). But the largest percentage gain occurred in Asia-Pacific, where wealth skyrocketed by 22%, or $3.1 trillion. That’s nearly double the global rate.

Latin American household asset growth rose by 16% to $3.4 billion, and Europe, despite the massive debt problems it now faces, was the wealthiest region with more than $37 trillion in assets under management, an increase of 8.8% from 2008.

Millionaires Hold 38% of Global Wealth

Boston Consulting Group’s report includes a revealing list countries with the highest percentage of millionaire households, but before getting to that, here are some interesting tidbits: The number of millionaire households in the world represents less than 1% of all households. Even so, these most fortunate ones owned about 38% of the world’s wealth in 2009, up from 36% in 2008. In North America, Africa and the Middle East, millionaire households represented more than half of the wealth in those regions.

Another juicy morsel: The number of millionaire households rose by 14% in 2009 to 11.2 million, and the U.S. had by far the most millionaire households, with 4.7 million.

But that doesn’t mean millionaires are crowding U.S. streets or that sumptuous yachts dominate the nation’s waterways. In fact, you’re more likely to find those conditions in Singapore, which had the highest percentage of millionaire households in the world.

Yes, that puts Singapore at the top of Boston Consulting Group list of the top 10 countries with the greatest proportion of millionaire households. You may be surprised by the full run-down:

1) Singapore
Population: 4.7 million
Percentage of Millionaire Households: 11.4%

Who would think the tiny Republic of Singapore would be crammed with so many millionaires? The country, all of just 247 square miles, has emerged from the recession and has rebounded in a big way. Its GDP, exports and manufacturing are all rising, and so, too, are home prices. That has led Singapore to boast the highest concentration of millionaires anywhere on the planet. Among its very rich: Ng Teng Fong, a real estate tycoon, and Wee Cho Yaw, who runs United Overseas Bank, one of Singapore’s big lenders.

2) Hong Kong
Population: 7.1 million
Percentage of Millionaire Households: 8.8%

Hong Kong, the home of Li Ka-shing, who runs conglomerates Cheung Kong and Hutchison Whampoa, had 205,000 millionaire households in 2009 and takes the number two spot for percentage of millionaire households. Hong Kong’s close relationship with mainland China brings benefits and risks, but it’s been good for many of the wealthiest, who made their money by investing in a real estate market that has no shortage of swanky hotels and malls.

3) Switzerland
Population: 7.6 million
Percentage of Millionaire Households: 8.4%

The Swiss economy is recovering from slow growth during the recession, but a good many of its citizens thrived during the upswing, bringing it to third place in percentage of millionaire households. The country boasts 285,000 of them, up 19.5% from 2008. Driving the recovery: manufacturing, rising exports and consumer spending. Among the country’s rich: Swiss biotech tycoon Ernesto Bertarelli, who is, perhaps, better known for winning the America’s Cup in 2003.

4) Kuwait
Population: 2.8 million
Percentage of Millionaire Households: 8.2%

The rising price of oil has led to more millionaires in this tiny country. With some 100 billion barrels of crude, Kuwait has been growing rapidly. But the oil-dependent nation now plans to spend up to $140 billion over the next five years to diversify away from oil and to attract more investment — a move that could help it ascend this list’s ranks. Such a strategy may help billionaire Nasser Al Kharafi, chairman of one of the most diversified and largest conglomerates in the Arab world. His food division, Americana, has the Middle East franchise rights to KFC, Wimpy, TGI Fridays and Pizza Hut, among others.

5) Qatar
Population: 841,000
Percentage of Millionaire Households: 7.4%

Qatar’s economy expanded by about 8.7% last year, thanks to growth in the natural gas business. That helped the country, already the world’s largest gas exporter, to emerge from the global economic crisis pretty much unscathed, leaving many of its millionaire households in good stead. Among its megarich: Bader Al Darwish, with a fortune of about $1.7 billion. Al Darwish runs Darwish Holdings, which operates businesses including real estate, investments and retail services.

6) United Arab Emirates
Population: 4.9 million
Percentage of Millionaire Households: 6.2%

As the world’s third-largest oil exporter, the UAE’s economic growth is expected to rise to 3.2% this year, after posting a 1.3% increase in 2009,. Like others, its oil business has generated wealth among its citizens. It also helps that UAE isn’t expected to suffer from the eurozone debt crisis. The country is home to Abdul Aziz Al Ghurair and his family, who run Mashreqbank and the second-largest flour milling company in the Mideast, as well as megamalls.

7) United States
Population: 310.2 million
Percentage of Millionaire Households: 4.1%

The 4.7 million U.S. millionaires in 2009 was up by 15.1% over 2008. But as a market percentage, the U.S. falls relatively low on the top 10 list. The country, which is home to two of the world’s wealthiest people, Bill Gates and Warren Buffett, saw its economy bounce back in 2009 from the year before as the Dow Jones Industrial Average rose 40%. By the end of 2009, the economy grew at its fastest pace in more than six years, even though many businesses put the brakes on hiring.

8.) Belgium
Population: 10.4 million
Percentage of Millionaire Households: 3.5%

Suffering from spiraling debt and political problems, Belgium still managed to hold on to a number of millionaires. The country has set a goal of getting its budget deficit to 4.8% of GDP in 2010, which is far below Europe’s average. But Belgium’s total debt will rise above 100% of GDP, placing it behind only Greece and Italy. The debt crisis in Europe will also likely take a toll on the country’s economy in 2010. The good news is that Belgium has a trade surplus, and household savings are high. Among its richest: Albert Frere, who founded the media, utilities and oil conglomerate, Compagnie Nationale a Portefeuille.

9) Israel
Population: 7.4 million
Percentage of Millionaire Households: 3.3%

Unlike other markets, the story in Israel wasn’t about rising real estate values or credit, but about gains in technology, which some say will help lead the country to continued economic growth. While 2009 was a good year for the economy, the current eurozone crisis could hurt Israeli exports because about 33% of them go to Europe. Rich man in Israel: shipping tycoon Sammy Ofer, worth north of $6 billion.

10) Taiwan
Population: 23 million
Percentage of Millionaire Households: 3%

Taiwan may be last on the top 10 list — but that’s still quite a feat. The country was hit hard by the recession mostly because its economy depends on trade. But as the world economy skittishly improves, Taiwanese families have seen their fortunes rise. The country now has some 230,000 millionaire households. That’s an increase of 22.1% over 2008. One of its richest is Terry Gou of Foxconn, a maker of electronics for Apple (AAPL), Nokia (NOK), Nintendo and others. That company has been in the news recently because 13 of its workers have committed suicide or tried to.

Sources:
Population figures: The CIA World Factbook
Percentage of millionaire households: The Boston Consulting Group’s Global Wealth 2010 Report.

“The Code” – A five-day last-ditch treatment

IN a dingy hospital room in the Baltic city of Riga, Catriona Gourlay grimaces at the fresh stitches in her stomach.

The 27-year-old from Camden, North London, has just had an implant – known as The Code – put in her body.

It means a sip of alcohol could potentially kill her.

She is so desperate to stop herself binge drinking she has resorted to seeking help outside the UK.

An alcoholic, she is not alone in taking such extreme measures.

Hundreds of desperate, boozy Brits now travel overseas to get a quick fix for their addiction.

A Sunderland-based company is sending alcoholics to Latvia for The Code – a five-day last-ditch treatment which can have deadly consequences.

Catriona says: “I have tried to get off alcohol on my own, I simply can’t do it.

“I have had kidney stones due to alcohol abuse and even have holes in my teeth from vomiting so much when I’m drunk.

“I have woken up covered in my own blood with no memory of how it happened. My room was smashed to pieces and I assume that’s how I got the cuts to my arms and hands. I couldn’t remember the last three days.”

Catriona’s drinking was acceptable in her job as a recruitment consultant which involved lots of boozy lunches. But Catriona would go home and drink alone – though always managed to get up in the morning for work.

She says: “I drank around four bottles of wine a day and simply could not see a way of changing it.” She went to her GP and Alcoholics Anonymous but they suggested keeping a diary or rehab, which she had neither time nor money for.

“After searching for months in the UK for somewhere to help me I still couldn’t get off the booze. This is why I had to take such a drastic step as having The Code.

“I know drink will ruin my life, and I definitely need a clean break from it for ever.”

The Code, which costs £2,800, includes three days of sedated detox to remove all alcohol from the patient’s system.

Then an implant of disulfiram – a drug that reacts violently to alcohol – is inserted in the body under local anesthetic.

This implant will release the disulfiram around the body for over a year.

In that time drinking just a tiny amount of alcohol will cause extreme reactions. Reported side-effects have included palpitations, convulsions, heart failure, breathing difficulties – and even death.

Patients have to be so careful after having the implant, they cannot even eat chocolate liqueurs or use mouthwash that contains alcohol without risks. Providing The Code to desperate Brits was the idea of former alcoholics Russell Hughes, 45, and Darya Dyagel, 33.

The pair, then heavy drinkers, met five years ago and decided to have the implant after it was suggested to them by Darya’s mother – who is from the Ukraine where the treatment is regularly performed.

Since they both had the implant two years ago, neither has touched alcohol.

They now help fellow alcoholics seeking an instant fix.

Russell, who runs Aluston Health Ltd with Darya, says: “As a desperate alcoholic, I know how hard it was to get any decent help in the UK.

“I remember going to my GP and telling him my life was in tatters because of my addiction to drink. I was drinking around 12 pints of beer and a liter of vodka a day.

“After 20 years of living with a drink problem, my business was suffering, my marriage had failed, my mates were abandoning me, my kidneys were failing and I had lost my license because of drink-driving.

“My doctor listened to all of this and then told me to keep a diary of what I was drinking. I couldn’t keep a diary – I was completely drunk!

“It was heartbreaking, and even when I looked for help privately, it was totally out of my reach.

“Most private clinics want patients to stay for at least four weeks, which costs between £5,000 and £10,000.

“Not many alcoholics have the time, money or willpower to put themselves through that.

“So when Darya’s mother told us about the implant available in Eastern Europe, I knew it was just what we, and other alcoholics in the UK, needed.” The couple have now been running Aluston Health for six months, and claim they have major national companies interested in making the treatment available for their staff.

“We have had interest from the large banks and law firms – who find a lot of their staff suffer with alcohol problems – and even the MoD,” says Russell.

“Companies don’t want to lose their staff to rehab for months, so the implant is the perfect way of dealing with the problem in a quick and efficient way.”

Russell’s partner Darya admits to having consumed up to seven pints of snakebite (cider and lager mixed), two bottles of wine, half a bottle of vodka and four double whiskeys in a day.
Epidemic

She says: “I know from nearly 20 years of alcohol abuse that the binge drinking problem in the UK is colossal and the NHS cannot cope with it.

“Drastic steps need to be taken, but the Government does not seem to have grasped what an epidemic alcoholism is for several generations in Britain.”

In recent years millions has been spent by government agencies on marketing and education campaigns about the dangers of alcohol.

Tactics include labeling the number of units of alcohol that bottles contain and teaching young people and families about the danger of drink. Yet estimates put the annual cost of dealing with alcohol-related issues in Britain at a minimum £20billion.

Russell says: “Alcoholics need more than a leaflet on how bad binge drinking is. They need help to change, and fast. Getting completely inebriated every night has become socially acceptable, and it’s not right.”

The Code’s latest patient, Catriona, admits to getting drunk on the flight to Latvia to start her treatment.

She says: “When I arrived here, I was completely out of it.

“It hit me at the airport that I would never be able to drink again, and that made me want to drink more.

“If I didn’t have this implant, that is how I think the rest of my life would have continued – as though every drink was my last.

“Knowing I can’t drink again makes me feel like I have a new shot at life.”

Three weeks after having The Code, Catriona is now back in the UK, and says: “My skin already looks better, my mind is clearer and my eyes are brighter.

“Already I can see how much alcohol was destroying my life, and I never want that vision to be blurred by booze again.”

“When I first returned to the UK, I felt a little down.

“It was quite daunting having to change my life so dramatically and pick up the pieces of my life with sober eyes.

“But after a few days I could already see how much better my life is without alcohol.

“I’ve had no sickness or side-effects to the implant, and am now looking forward to a great future that does not involve alcohol.

“When you are drunk you don’t realize how much of a mess your life is. The longer you are sober the more you realize how bad things are and gradually you can start to mend your life. That’s what I’m doing now.”

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