Facebook reaches one billion users in a day

Mark Zuckerberg announced in a post that one billion users logged onto Facebook in a single day. The “important milestone” was reached on August 24, almost three years after the company announced the same visitor figures but in a month, and shows that the site’s popularity is gaining still – more than ten years on from its establishment. “On Monday, one in seven people on Earth used Facebook to connect with their friends and family,” wrote Zuckerberg on the site.

The milestone underlines Facebook’s credentials in the social media community

“When we talk about our financials, we use average numbers, but this is different. This was the first time we reached this milestone, and it’s just the beginning of connecting the whole world,” he continued. “A more open and connected world is a better world. It brings stronger relationships with those you love, a stronger economy with more opportunities, and a stronger society that reflects all of our values.”

The milestone underlines Facebook’s credentials in the social media community, in that no other competitor comes close to its user numbers. More than that, the site is still a ways off its peak, as a string of projects – chief among them Internet.org – promise to connect a greater number of people in developing countries and peripheral communities to the service.

The site’s user base in the US, Europe and India in particular is nearing saturation point, although major growth opportunities remain still in Africa and Asia, where lack of connectivity means that many have been unable to sign up. The relatively low sign-up rate in Asia, Africa and, to a certain extent, Latin America gives some indication about where the company’s focus will lie in the near future.

Five kickstarter projects that haven’t gone anywhere

Zano

Billed as “the world’s most sophisticated nano drone”, Zano caught the public’s imagination last year when a promotional video showed it could expertly capture mountain bikers and cliff divers on film. The campaign received over £2.3m last November, yet the June-time release date has passed without much in the way of information. Today, the project’s more than 12,000 backers are growing restless, and for as long as the team struggle to overcome GPS issues, pressure on the company will continue to mount.

Eyez

Eyez by ZionEyez made headlines around the world when in July 2011 over 2,00 backers handed over $343,415 – six times its goal – to bring the project to life. The idea was that the glasses would record video footage in the user’s line of sight and allow them to easily upload the file to Facebook. There has been no word from the creators since 2012, and backers have had little to go on since the company changed its name to Zeyez and cited “unforeseen hurdles” as reason for the delay.

The Doom That Came to Atlantic City

Although the “light hearted Lovecraftian game of urban destruction” received a relatively modest $122,874, the failed board game is significant in that the project organiser, Erik Chevalier, was later ordered by the FTC to refund the boardgame’s 1,246 supporters. Chevalier is the first to be instructed to do so by the FTC, after he was found to have spent most of the money on himself. However, the project manager is by no means the first to face legal action on account of failed Kickstarter pledges.

Asylum Playing Cards

810 backers turned up to fund Ed Nash’s Asylum Playing Card project, and while the campaign received $10,000 over and above its $15,000 target, contributors never saw a return on their investment. The case became the first crowdfunding-related consumer protection lawsuit, and in May last year Washington State Attorney Bob Ferguson wrote in a press release: “This lawsuit sends a clear message to people seeking the public’s money.” The case led Kickstarter to review its terms of service and alerted the public to the risks.

Kobe Red

According to Quartz, Kobe Red was close to becoming the biggest fraud in Kickstarter history in June 2013; that is until the site shut down the project 10 minutes before the perpetrators could make off with over $120,000. The project promised 100 percent Japanese beer fed Kobe beef jerky and attracted over 3,300 backers before it came to light that the rave reviews and inspection details listed on the page were false. The case highlighted the importance of the crowdfunding community when it comes to flagging suspicious campaigns.

Buy Chinese stocks, says Goldman Sachs

Goldman Sachs is encouraging traders to be more optimistic about Chinese stocks following 'Black Monday'. The investment bank claims that certain stocks are being undervalued
Goldman Sachs is encouraging traders to be more optimistic about Chinese stocks following ‘Black Monday’. The investment bank claims that certain stocks are being undervalued

Despite China’s prolonged stock market volatility and far from optimistic economic outlook, now is a good time to buy Chinese equities, according to the analysts at Goldman Sachs. Recent sell-offs, they argue, have been overplayed, leading to certain stocks being undervalued.

The pessimism of many traders in Chinese equity is misplaced, according to the bank

According to Goldman Sachs, this is due to a change in the way traders are making their decisions when it comes to China. Rather than looking at financial underpinnings of companies, macroeconomic conditions are motivating sell-offs. Chinese stocks are not being sold due to concerns over the actual value of shares, but a general weariness of the future of the Chinese economy.

The pessimism of many traders in Chinese equity is misplaced, according to the bank. The disappointing economic data, it is argued, is already factored into price. Researchers at the bank note that while they recognise “the cyclical and well-documented structural headwinds that China currently faces…these concerns [already] seem quite well priced in Chinese equities from various valuation methodologies that we have discussed,” reports Business Insider.

The undervaluation of Chinese stocks, stemming from misplaced macroeconomic concerns, the bank claims, could see share prices surge by 37 percent in the future. Indeed, after a few bearish days starting with a so-called “Black Monday” which saw Chinese shares fall by around eight percent, August 26 saw an impressive market rally. In the 45 minutes before markets closed, shares recovered by five percent.

While many commentators have a gloomy outlook for the Chinese economy, Goldman Sachs’ researchers are more optimistic, also arguing that China’s economic growth would pick up in the fourth quarter of this year, recovering from the third quarter’s weak growth.

Spotify angers users with privacy policy changes

The CEO of Spotify, Daniel Ek, told users he was sorry about the company’s new terms and conditions and privacy policy, which will permit the music-streaming service to collect customers’ photos, contacts, GPS location, voice controls, and other multimedia files.

In the blog post, he admitted that the rolling out of the new policy had “caused a lot of confusion” around the type of information the company would access and what it would be used for.

The recent changes the company has made to its privacy policy could see a number of users jumping ship in a bid to protect their personal information

“We apologise for that”, said Ek. “We should have done a better job in communicating what these policies mean and how any information you choose to share will – and will not – be used”.

He then attempted to “clear things up”, explaining how the new policy may ask customers to grant Spotify access to their personal information, but users are free to opt out if they wish.

“Let me be crystal clear here: If you don’t want to share this kind of information, you don’t have to”, wrote Ek.“We will ask for your express permission before accessing any of this data – and we will only use it for specific purposes that will allow you to customise your Spotify experience.”

Currently, the music-streaming service has over 75m active users, with 20m of that number paying $10 per month for its premium service. However, the recent changes the company has made to its privacy policy could see a number of users jumping ship in a bid to protect their personal information.

Markus Persson, the creator of popular video game Minecraft, has already ended his subscription to the music-streaming service, and even tweeted Spotify to say: “As a consumer, I’ve always loved your service. You’re the reason I stopped pirating music. Please consider not being evil.”

Although Spotify has issued an apology to its customers and attempted to clarify the changes it has not shown any signs of overturning them. It will be interesting to see if this decision leads to the company experiencing a fall in membership over the coming months.

Oil prices hit six-year low

The oil market remains bearish as world prices reach a new six-year low. The Brent price of oil has fallen $44.20 a barrel, a drop of 2.6 percent, while the US West Texas Intermediate saw prices dip by 3.2 percent to $39.15 a barrel. Both benchmark prices had not reached such lows since early 2009.

The condition of the Chinese economy has stoked fears of future oil demand. The slowdown of the Chinese economy has caused fears that demand from the world’s largest energy consumer will fall.

The condition of the Chinese economy has stoked fears of future
oil demand

Oil prices have taken a hit since reaching a peak of $115 a barrel in June 2014. After oil prices began to fall, OPEC countries held output steady, eventually pushing prices down to $45 a barrel by January 2015, with a hope to maintain market share over rival producers.

Despite a number of predictions otherwise, prices have not yet bottomed out. Investors are increasingly concerned with a glut in the market. Although some producers have shelved exploration and drilling projects in response to falling prices, the US has recently seen its production capacity increase. As the Financial Times notes, “last week the number of rigs drilling for oil in the US increased by two, to 674, marking the seventh jump in the past eight weeks.”

The prolonged low price of oil has caused trouble for the finances of OPEC countries. Ministers from both Iran and Algeria have recently called OPEC to meet to discuss how to stabilise world oil prices. Such a move would require the approval of the tacit leader of the organisation, Saudi Arabia.

The effect also casts doubt on the anticipated September US Federal Bank interest rate rise. The depressed price of oil means that the Fed’s inflation targets that it wishes to reach before a hike may not be met.

Audi takes on Tesla with electric SUV

The electric car market continues to welcome big name entrants with the news that Audi, the popular German brand owned by Volkswagen, will build an electric SUV. The car will directly rival leading electric car innovator Tesla, which recently unveiled its own Model X SUV.

Tesla has been an early pioneer in the industry

While it may be just a concept at the moment, Audi hopes to begin manufacturing the vehicle by 2018. The company has boasted of its SUV being capable of driving at least 310 miles on a single battery charge, which would represent a substantial increase on Tesla’s basic level vehicles – which can achieve around 261 miles per charge.

Other carmakers are increasingly looking to get on the electric car bandwagon, recognising the industry’s potential as a long-term alternative to traditional petrol hungry vehicles. According to the FT, Mercedes-Benz is expected to launch ten electric cars within the next two years, while BMW already makes its own i3 and i8 hybrid electric cars.

Tesla has been an early pioneer in the industry, allowing its charging patents to be used for free by rivals in the hope it will speed up adoption of the vehicles. However, until recently there has been a problem of standardisation of charging points, as well as a lack of infrastructure across regions. With so many manufacturers entering the market, however, the expansion of charging infrastructure is likely to speed up considerably.

The industry is also getting considerable backing from notable investors. Warren Buffett has begun investing heavily in electric cars, including the Chinese manufacturer Build Your Dreams. Others are also back lithium producers, recognising the demands on the industry for electric car batteries. It is the carmakers that will determine the success of the industry, however.

Speaking to the FT earlier this year, Audi’s CEO, Rupert Stadler, noted the importance of innovation in the car industry, and in particular a focus on electric vehicles. “Hybridisation, plug-in hybrids, or pure electric vehicles – this is a must for everyone. And the car company who is not able [to keep up] — not able by financial power, or not able by competence and technological power — they will disappear.”

Samsung Pay opens – a rival to Apple Pay

Samsung has launched its own mobile wallet service to rival Apple Pay in South Korea, ahead of its general release, with a view to establishing mobile handsets rather than cards as the dominant form of payment. The Samsung Pay service, which trails the release of its closest rival by a year, is compatible with a far greater number of payment terminals and sources at the company believe it could transform the role of smartphones.

For the time being, the appeal of mobile payment services is unclear

Unlike Apple and Android Pay, which work only in areas where NFC terminals are switched on, Samsung Pay is compatible with the vast majority of credit card readers, and uses magnetic strip recognition to make use of “tap-and-go” technology. As with the competition, transactions will be limited to small amounts, though Samsung will hope to increase the cap and, in doing so, speed up the technology’s adoption.

“Samsung Pay will reinvent how people pay for goods and services and transform how they use their smartphones,” said JK Shin, CEO and Head of IT & Mobile Communications Division at Samsung Electronics, in a press release. “The secure and simple payment process, coupled with our robust partner network, makes Samsung Pay a truly game-changing service that will bring value to consumers and our partners in the ecosystem.”

The service will be available to use in the US from September 28 onwards, though it’s uncertain which companies will offer support. AT&T, Sprint and T-Mobile have subscribed to the service so far, and many more could follow should the system catch on among consumers.

For the time being, the appeal of mobile payment services is unclear, though Samsung Pay does away with perhaps the biggest barrier to adoption simply by extending its compatibility to “tap-and-go” terminals. Samsung has said that the service could be adopted at some 30 million merchant locations worldwide, making it the only service of its kind to boast near universal appeal.

Stream if you want to go faster: how Netflix and friends killed off the TV

For those not familiar, Twitch is a live-streaming video platform with a focus on video gaming. Users can watch or broadcast content, which is streamed live or made available on demand. The content itself ranges immensely, with viewers able to watch their favourite gamers not only play games but also discuss them as they’re playing. It is a winning formula and a resounding hit with both millennials and Generation X (those aged 17 to 48).

It’s important to remember Twitch’s success is partly down to the platform Justin Kan and Emmett Shear created (formerly Justin.tv), but it would be nothing without the community of gamers, top-quality broadcasters and continued support of the wider gaming industry.

This year, the site announced it was home to more than 1.5 million individual broadcasters, while roughly 100 million unique visitors log on every month. One of the biggest drivers of traffic to the site is the professional gaming scene – more commonly referred to as ‘eSports’ – which in recent years has blossomed into a multibillion-dollar industry. The biggest competitive titles and competitions such as Counter-Strike, League of Legends and Dota 2 (with the last offering a $13m prize pool this year) are all streamed live on Twitch, with all the extra trimmings traditional sports fans have come to expect.

1.5m

Individual broadcasters on Twitch

100m

Unique visitors to Twitch each month

45%

of US consumers prefer to watch television live

68%

of US consumers binge watch

Twitch’s popularity and its synonymy with gaming meant both Sony’s PlayStation 4 and Microsoft’s Xbox One integrated the service. This has only helped expand the streaming sites already impressive following.

“While gaming continues to be influenced by mobile technology, consoles are expanding in functionality, and, in doing so, are helping to feed the consumption needs of a larger consumer base”, says Gerald Belson, Vice Chairman of Deloitte. “Gaming devices are not just geared to satiate the appetite of avid gamers, but of those who require devices capable of providing a full package of quality entertainment services, coupled with the speeds to deliver them.”

Shifting habits
The growth of streaming sites such as Twitch.tv is not unique to the gaming community, but part of a much bigger shift in media consumption habits that is having a profound impact on the revenues of many traditional media companies. This shift was documented in Deloitte’s 2015 Digital Democracy Survey, which looked at the generational preferences of various demographics in the US and revealed some intriguing technological, media and telecommunication consumption trends that have arisen in recent years.

According to the survey, streaming video services have been growing in popularity and are now used by more than 42 percent of American households and are having an impact on viewing habits and the types of content consumed.

“The study reveals that streaming content has overtaken live programming as the viewing method of choice, with 56 percent of consumers now streaming movies and 53 percent streaming television on a monthly basis, as compared to 45 percent of consumers preferring to watch television programmes live”, says the report.

The survey also highlighted a significant rise in binge watching (viewing multiple episodes of a programme one after the other) with around 68 percent of consumers engaging in the practice. “In fact, 31 percent of Americans who binge watch, do so at least once a week, led by trailing millennials [14 to 25], who binge watch more frequently than any other generation at 42 percent”, says the report. “The survey also notes that TV dramas are the most popular television genre to binge watch, commanding 54 percent of binge watchers’ attention; a characteristic more pronounced among females.”

The ability to binge is provided by streaming services such as Netflix. Shows such as the critically acclaimed Breaking Bad are uploaded in their entirety, allowing viewers to watch entire runs in a relatively short space of time.

This is just one of the reasons TV subscription services are being cancelled, with a quarter of trailing millennials having chosen to discontinue their subscriptions in the last 12 months, or admitting to not having had one for more than a year, according to the survey. What’s more, the report showed 16 percent of leading millennials (26 to 31) had done the same.

“Personal viewing experiences and the ability to consume media at your own pace is significantly impacting how US consumers value their content devices and services”, says Belson. “Today, binge watching, and the ability to watch what we want, when we want, and where we want, is an exciting cultural phenomenon that is shifting consumer behaviours and attitudes towards curating an individual experience.”

Bland content
Consumer habits are changing, but so are their tastes. Bloomberg Business reported those in charge of Amazon Prime Instant Video (the online retailer’s streaming service) had chosen to cut a number of reality shows from a deal it had made with the mass media company Viacom. The reasoning behind the decision was that subscription holders of their service preferred other kinds of content.

In fact, the ratings for many reality shows in the US have been on a steady decline as viewers have grown bored due to oversaturation. Many have instead turned to on-demand shows, such as the Netflix original House of Cards, which has seen a massive jump in viewers according to broadband technology firm Procera. Streaming services have drawn subscribers because of their ability and willingness to do things public channels cannot.

In an op-ed piece for The New York Times, Cenk Uyger, the founder and host of The Young Turks, the largest online news show in the world, wrote: “In the past, newscasts existed in a pool where they competed against one another in a zero sum game. Now, they exist in an ocean of content with nearly unlimited options. That’s a whole new world with new challenges and opportunities.

“But with so many more options you can’t afford to do things the same old way. Network news has been so bland for so long that people assume that’s the only way you can deliver news. That’s not remotely true. You can present the news passionately, engaging the audience much more effectively.

“In the new media world, passionate will beat dispassionate every time. Authenticity is the most important trait for success. Neutral news anchors reading from a prompter reek of inauthenticity.”

The same is true for all content nowadays. The younger generation has grown more accustomed, and therefore relates better, to YouTubers like video game vlogger PewDiePie or Twitch.tv streamers such as KittyPlaysGames. They are growing up watching content that is often not bound by sponsors or advertisers in the same way TV networks are. The real reason people are turning their backs on TV is because it has grown too scared to take risks and become far too safe, all in a bid to protect what precious revenue streams it still has.

Technology has changed the way people consume media, but one thing that never changes is that people will always crave quality content. Netflix and others have been successful not only because they offer a great service at a reasonable price, but because they are willing to take risks with content that cable networks are either unable or simply too afraid to touch.

Tencent invests $50m in Canadian app

After seeking a strategic partner for some time, messaging app Kik has secured a $50m investment from China’s biggest internet company: Tencent Holdings. The investment values the Ontario-based tech start-up at over $1bn.

Founded in 2009, Kik has become extremely popular with teenage consumers in North America, with over 70 percent of its 200m users aged between 13 and 24. As stated on Kik’s website, 40 percent of teenagers in the US use the service, a feat that has been achieved through its evolving nature and innovative add-ons. As a result of its app-within-app package, which includes gaming and music themed communities, users tend to spend more time than on rival messaging services – according to a recent study carried out by Kik.

Kik still lags behind major competitors, such as Facebook Messenger, Whatsapp and Snapchat

Yet, despite its impressive growth, Kik still lags behind major competitors, such as Facebook Messenger, Whatsapp and Snapchat. As such, through the partnership with tech giant Tencent, Kik founder and CEO Ted Livingston is hopeful that the firm can further expand its multi-media services and vastly increase its popularity within the US.

“Today, there are only five other companies in the world that see the future like we do: Tencent, Line, Facebook, Snapchat and Telegram. One of them owns the largest internet market in the world. We couldn’t be more excited to partner with them as we run this race,” Livingston said following the announcement, as cited by Tech Crunch.

Up until now, Kik’s largest overseas competitor has been WeChat, an app that also offers users an ecosystem of services in addition to messaging. As WeChat is owned by Tencent, Kik no longer has its sights set on the Chinese market, but the alliance will allow the two firms to collaborate on projects and share data, thereby helping Kik to conquer the North American market.

As well as WeChat, Tencent also owns the messaging app QQ, together with a large portfolio of internet services, such as social networking platforms and online marketplaces. Notwithstanding its dominance of the Chinese space, Tencent recently reported a slowdown in its online gaming business, placing pressure for it to engage more in internet advertising and produce new offerings for its users.

Firms’ lack of knowledge puts them dangerously at risk of cyber attacks

Over the past year, a number of high-profile cyber-attacks have caught the attention of the media; from the case in February when £650m was stolen from numerous British banks in the biggest cybercrime to date, to last year’s attack on Sony Pictures and even an infiltration of the White House for President Obama’s schedule. Both the targets themselves and the frequency of breaches indicate just how pressing and dangerous the threat has become.

“These days, the web is where all interesting economic activity has migrated, and so it’s a rich target of opportunity”, says Grady Booch, IBM Fellow Chief Scientist for Software Engineering. The methods and tools with which hackers now infiltrate computer systems and remain undetected are reaching new heights of sophistication. Yet organisations around the world, both private and public, have been slow to implement robust security strategies; for various reasons, their systems are lagging far behind the tactics used by those who break into them.

Stubborn strategies
As companies rely increasingly on IT services to support key aspects of their businesses, they have become more vulnerable to security breaches. Out-dated methods in IT security can even heighten the risk of infiltration.

75%

Of large organisations have had a staff-related breach

“We’re at a point now where traditional antivirus is completely obsolete and even the more advanced malware detection tools really can’t stop new, sophisticated malware from getting into a system”, says Dave Aitel, CEO of specialised security provider Immunity. “One major change in what modern malware does is smuggle the data out of your network in a number of new and interesting ways: inside DNS requests, ICMP, or a picture sent to a social network”.

Many have been slow or reluctant to alter their methods of IT securitisation during this transitional phase, so the weaknesses of their out-dated systems leave them susceptible to attack.

“Those that want to take advantage are often able to do so because systems haven’t been hardened and there’s a lack of general housekeeping and system hygiene”, says Ryan Rubin, Managing Director of Protiviti for EMEA Security & Privacy IT Technology Consulting. “People just aren’t looking out for these things, therefore the lack of awareness and monitoring of activity means that companies only find out about these problems much later down the line.”

What makes new security risks particularly challenging is their fluid and dynamic nature; the rapid rate of change has proven to be increasingly difficult for organisations to keep up with.

“It’s somewhat like being in a submarine with leaks that pop up in random places at random times”, Booch explains. “You have to be vigilant about not just reacting to security threats – any company has to be diligent about keeping up with the latest patches and attending to zero day exploits – but also to be proactive in seeking out potential risks”.

The traditional and perhaps even stubborn mind-sets of those in the IT sector are slowing down progress in cyber securitisation, so accustomed are people to protecting their businesses and assets in a certain way. Yet this rigid approach is no match for hackers.

“I think the first thing that needs to be done is realising that a change in strategy is required”, says Richard Bejtlich, Chief Security Strategist at FireEye. “The current strategy has been one of walking around, checking the doors and windows to make sure they are locked, and not paying enough attention to the fact that there are already intruders inside the house.”

Failure to acknowledge this major alteration in the way cyber-attacks are conducted has led to a situation where hackers can remain in a system, undetected, for months, as illustrated by the recent breach of the US State Department; despite the intruders first being discovered last November, an incident in February revealed they were still present within the department’s computer network.

Many firms are still under the false impression that they are impervious to cyber-attacks – either internal or external – in spite of the rising frequency of cases and widespread reporting in the media. “They are either moving so fast they don’t feel they have the time or focus to worry about such things, or they assume it would ‘never happen to them’, because they feel they are small enough to never be a target, or they are sadly clueless because they don’t appreciate the risk”, Booch explains. Yet, the reality is, unless an organisation operates in complete physical and cyber isolation, it is in danger of being hacked.

“The first thing I think that people need to realise is that, if you’re a significant target on the internet, there’s a good chance you’ve already been attacked and that the intruders could still be in your environment”, says Bejtlich. “So the first priority has to be to find the intruders that are already there. The second priority is, once you’ve found the people who are already there, you have to get ready for the ones that are going to come back. Dedicated adversaries are going to break into your environment, and then, as soon as you kick them out, they are going to try to get back in. So you have to have a persistent detecting response operation. Then the third priority is working on improving your defences so that it’s tougher for someone to get into your company and get access to your data”.

Trust issues
Over-confidence in third parties, customers and even employees has become a looming risk in terms of cybersecurity. It is easy for management to assume that those within their inner circle and network will not act in malicious ways to harm their business, but this is exactly what happens in many cyber-attacks. In the 2015 Information Security Breaches Survey conducted by PwC and published by the UK Government, 75 percent of large organisations surveyed had experienced a staff-related security breach; an increase of 58 percent from the previous year.

“Someone in a privileged user position or with privileged access to key core systems may become disgruntled, they may get dismissed or decide to leave the organisation”, says Rubin. “Because of the level of access that they have to the underlying systems, they may maliciously decide to destroy some of the company’s IT environment or create a situation where the company experiences some downtime that wasn’t planned.”

Acknowledging breaches can happen from the inside is crucial, particularly given the growing incidence of this type of attack. Therefore, additional layers of protection are essential. This type of approach will also help stave off external attacks, as a major focus in security strategy for a number of years has been the application of firewalls and anti-virus software, but these methods are based on creating a perimeter around a system; once a hacker infiltrates a computer network, there is very little to protect an organisation’s data or vital processes.

Cost is probably the most common reason for the slow adoption of a robust cybersecurity programme, because arming against hackers is an expensive enterprise; small companies must contend with an additional expense on modest budgets, while, for large firms, the cost is far greater due to their size. Of course, it is logical that the bigger the firm, the bigger the risk, but that does not mean smaller firms can remain idle in their security strategies.

“Building, deploying and operating secure systems costs money; money that is important, but that does not necessarily advance the functional mission of an organisation”, says Booch. “Hence, it’s sometimes a calculated trade-off: ‘Security will cost us x but the risk is y and so our exposure is z… Let’s make a calculated business decision that our exposure is sufficiently low that we won’t invest that much.’ This, of course, is a dangerous strategy.” Although this type of cost analysis is logical for any business decision, there is a general underestimation of cyber risk.

Defence tactics
Many organisations are still in reactive mode, responding to a threat sometimes several months after their system has been infiltrated. Yet there are numerous tools, guidance services, software processes and technologies widely available to help companies become more proactive. While implementing a basic layer of protection across the entire organisation is essential (such as basic firewalls, passwords and rudimentary security systems) it is not cost-effective or even practical to implement a strong defence throughout.

Instead, it is far more feasible for organisations to focus on the most important aspects of operations and to add extra layers of protection to the areas that drive success. This may entail additional protection of an information asset or a business process, i.e. whatever is deemed as the element that could bring down an organisation if breached, stolen or used maliciously.

“People are recognising that it’s actually impossible to protect ourselves 100 percent, therefore we need to accept a level of error or weakness and really try to protect things that matter most to us and our organisation”, says Rubin.

Finally, a holistic approach in terms of awareness and understanding is now essential in order to ward off hackers; cybersecurity is not limited to an individual or even to the IT department. “There is a perception that security is an IT problem and we can throw IT products and solutions at it, whereas we’ve seen that clearly it’s something that needs to be tackled at different layers in an organisation”, says Rubin. According to PwC’s survey, 50 percent of the worst breaches that the companies surveyed suffered were a result of human error.

Looking forwards, IT security must be embedded within the culture of an organisation so employees are aware of their actions and refrain from risky behaviour that can make a system vulnerable to attack. Providing training to all staff, as well as the tools needed to protect the businesses’ information and processes, can provide a greater level of security across the entire organisation.

Danger ahead
Of course, while it is impossible to predict a breach, there are some industries in which it is inevitable. The financial sector, for example, is always at risk from a host of attackers, ranging from criminal groups to nation states and hacktivists with a political agenda. But the risk is no longer confined to these obvious targets. As Bejtlich asks: “Who would have predicted that the creation of a movie would result in the hacking of Sony Pictures?” It comes down to understanding which groups would benefit from access (such as competitors, governments or criminals) and implementing the necessary procedures and processes to reduce the threat.

“These days, everyone is a target”, says Aitel. “Those most likely to be hacked will have data or access that a hacker finds valuable. For instance, a company that stores credit card numbers for its customers, or employee socials, or a vendor to a Fortune 1000, or a university with valuable research and data, such as engineering programmes, etc. And even if your data isn’t valuable on the black market or to a foreign intelligence service, it’s still probably valuable to you, and ransomware attacks will exploit that fact.”

In the rapidly advancing world of hacking, old systems and habits have become a major security threat, particularly as more organisations begin migrating to the cloud and using mobile technology. Other advances in computer systems have exacerbated the danger, such as wireless technology and social media platforms. Thus, as online culture evolves, so too must the methods with which these systems are protected and defended.

IT as a field is still relatively new, as are the software products in use; its foundations are therefore inherently insecure and, as such, a drastic overhaul of current systems is key. This will be difficult during this transitional phase – particularly as there is still a limited number of cybersecurity experts – while outsourcing presents another host of concerns.

But while the rigidity of security strategies endures, hackers find themselves in a golden age of attacking IT systems with relative ease; at present, the world is their oyster. A drastic shift in thinking in terms of securitisation is needed urgently, and it does not have to be as costly as many organisations fear. Understanding the mounting dangers in maintaining current policies, protecting the ‘crown jewels’ and raising company-wide awareness can promptly enforce a proactive security strategy that is fit for today’s evolving cyber threats.

Boyan Slat: the 21-year-old saving our oceans

It has almost become fashionable to condemn the youth of today as a generation of lazy, work-shy reprobates. And no wonder people have grown so comfortable labelling millennials with such conviction when even the UK Prime Minister, David Cameron, has been accused by union leaders of “lazily stereotyping” youngsters and blaming them for migrant workers taking their jobs.

But Cameron and other critics, who choose to believe laziness has descended on the youth of today like a virus, might have to reconsider their position, as one millennial may have just found the solution to a problem that threatens mankind’s very existence on this planet: oceanic plastic pollution.

The young man in question goes by the name of Boyan Slat. He is the founder and CEO of the Ocean Cleanup project, which is responsible for the creation and development of a revolutionary technology that aims to do something about the eight million tons of plastic that enter the world’s oceans each and every year.

300

Tons of plastic produced each year

According to his blog, Slat first came up with the idea while diving off the coast of Greece and becoming increasingly frustrated by the fact that he ended up seeing “more plastic bags than fish”. The frustration he felt was quickly converted into something more positive, providing the drive to start asking the obvious questions, such as: “Why can’t we clean this up?”

Questions soon found answers and Slat’s inquisitive nature led to what he dubbed the “passive cleanup concept”, which he first presented to a packed crowd at a TEDx Talk in October 2012, at the tender age of 18. “Once there was a Stone Age, a Bronze Age and now we are in the middle of the Plastic Age”, the young Dutch inventor told his audience. “Because every year we produce about 300 million tons of plastic and a fraction of that enters rivers and waterways and eventually the oceans.

“Due to sun and waves over the years, the [plastic] garbage breaks down into ever smaller pieces, but remains plastic. The [plastic] debris primarily collects at… five rotating currents called the gyres, where it doesn’t only directly kill sea life, but, due to the absorption of PCBs and DDTs, also poisons the food chain.”

Now in his 20s, the young inventor’s system doesn’t directly target the plastic. It instead uses the ocean’s natural currents to concentrate the plastic and then extract it. What’s more, his technique enables the cleanup operation to be carried out extremely efficiently, reducing the overall time from millennia to a couple of years.

Cleanup critics
But there are those who question just how effective Slat’s cleanup strategy really is. The San Francisco-based NGO Project Kaisei (a cleanup initiative set up by the Oceans Voyages Institute with the intention of raising awareness about the global problem of marine debris) estimates only 30 percent of all rubbish that is dumped into the world’s oceans remains on its surface. The remaining 70 percent simply sinks to the bottom – unreachable by the system of barriers Slat has created.

Other critics argue policymakers and conservationists would be better off attempting to implement prevention and interception strategies in a bid to stop the plastic from reaching the ocean in the first place.

“We have recently shown that it can take up to 50 years for plastic released from our shorelines to travel to the patches”, says Erik van Sebille, a physical oceanographer at UNSW Australia in a report for the website The Conversation. “That means that, even if we would clean up the garbage patches today, the garbage would return within a few decades, as the plastic that is currently spread across the ocean slowly accumulates again.

“If we stop polluting today, within a few decades there will be almost no more plastics in our oceans outside of the garbage patches. Only then, once we have stopped plastics entering our oceans in the first place, can we sensibly make the decision whether and how we want to spend the resources to clean the distant garbage patches.”

Then there is Tony Haymet, a professor at Scripps Institution of Oceanography at the University of California, who, in an interview with Al Jazeera America, explained that the micro plastics, which Slat claims to be able to remove and which are abundant in sites such as the Great Pacific Garbage Patch, are simply too small to be practically extracted from the water. “As far as I know – sadly – this remains true today”, Haymet said. “It’s a horribly tricky issue.”

Despite all the naysayers and critics of his cleanup plan, after an intensive feasibility study released in 2014, Slat and his team got the green light for their project and are preparing for its launch, which is set for some time next year. According to Slat’s blog, a research expedition aimed at collecting “more plastic measurements than have been collected in the past 40 years combined” is planned for August. The expedition will require a minimum of 50 vessels, and, in order to ensure the research trip gets as many boats as possible, the Ocean Cleanup’s website has requested volunteers in the hope skippers and ship owners will heed the call and sail with the team across the 3.5 million square kilometre area located between California and Hawaii.

Slat and others engaged in preparations for the project
Slat and others engaged in preparations for the project

Clear blue
Around 80 percent of all marine pollution comes from land-based activities; with the levels of plastic swirling in the world’s oceans becoming so vast they now outweigh all other types of marine debris, according to the Global Ocean Commission.

“If you want to eat a biscuit nowadays”, explained Slat during his TED Talk, “we have to buy a biscuit within a plastic wrapper, within a plastic tray, within a cardboard box, within some plastic foil, within a plastic bag.” With such a large proportion of the world’s animals, plants and microbes living under the sea, our reliance on plastic is threatening life as 50 to 80 percent of this planet’s inhabitants know it.

“Taking care of the world’s ocean garbage problem is one of the largest environmental challenges mankind faces today”, explained Slat in a statement. “Not only will this first cleanup array contribute to cleaner waters and coasts, but it simultaneously is an essential step towards our goal of cleaning up the Great Pacific Garbage Patch. This deployment will enable us to study the system’s efficiency and durability over time.”

The world will be hoping, despite what the critics say, that Slat and his team at the Ocean Cleanup will be able to deliver on their promise and rid the oceans of this harmful man-made component. Not just for the sake of those who rely on it to survive day-to-day, but for the future survival of life on this planet.

Costa Rica: the cleanest country around

The urgent need for renewable energy solutions mounts with each passing year; knowledge of the irreversible consequences of mankind’s growing carbon footprint are no longer confined to scientific circles. As a result, governments have become obliged to implement sustainability policies, particularly given the potential long-term economic repercussions of climate change.

Many countries around the world are attempting to implement more impactful environmental policies, whether that involves recycling programmes, creating the infrastructure for alternative energy resources, or reducing air pollution. There are those that stand out for their efforts, such as Iceland’s effective climate change policy and timber reserves management, or Sweden’s low carbon dioxide emissions and organic agricultural practices. Leading in terms of alternative energy and sheer political will to switch to clean electricity generation, however, is Costa Rica: a small Central American nation that currently finds itself the focus of the world’s environmental community.

For years, Costa Rica has held a strong reputation for safeguarding its unique biodiversity and its earnest efforts to protect the rainforest that covers much of the country. Following a period of intense deforestation during the 1960s (a result of cattle ranching and agricultural development), government legislation and the protection of over 50 percent of Costa Rica’s rainforests, as well as numerous National Parks, ensued and has since made it a pioneer for forest conservation in the region.

2021

Year by which Costa Rica plans to run solely on clean energy

80%

Of the country’s electricity came from hydropower in 2014

15%

Of the country’s power comes from geothermal sources

“Costa Rica is a very interesting country and I really believe that they are at the forefront of Central and South America in terms of innovation and creativity and certainly in terms of environmental consciousness”, says Bruce Cutright, CEO of Texas-based geothermal energy company Thermal Energy Partners. Costa Rica’s progressive sustainable policies are not limited to conservation: through rigorous efforts by the government, the country has made strides in the field of renewable energy. According to the Green Energy Leaders report published by the World Wide Fund for Nature: “In the Latin American region, [Costa Rica] is the cleanest country in terms of a range of factors: energy consumption per unit of GDP; carbon intensity in energy conversion processes; impacts over air and water pollution related to energy production; and amount of emissions for electricity produced.” By 2021, the Costa Rican Institute of Electricity (Instituto Costarricense de Electricidad, ICE) aims to run the country solely on clean energy.

Three months
For the first three months of 2015, the entire country ran on sustainable energy resources, making Costa Rica the first nation in the world to fully utilise sustainable energy for such a stretch. This commendable achievement was made possible as a result of unusually heavy rainfall, which meant the national grid did not require fossil fuels to fulfil the state’s electricity needs. The ICE instead relied upon hydroelectricity generated by the country’s four reservoirs (Arenal, Cachi, La Angostura and Pirrís), which all surpassed the generation estimates for the first quarter of this year. Other renewable sources were also used to contribute electricity to the energy mix, including wind, biomass, solar and geothermal power, albeit not to the same degree.

Last year, 80 percent of the nation’s electricity requirements were produced by hydropower, showing much promise for the 2021 plan. “Costa Rica has a huge number of locations for hydroelectricity dams; they have a number of them operating right now”, says Cutright. Although damming rivers to tap into the hydroelectric power has its own environmental drawbacks, the energy that is then produced is completely clean. It is also easier to scale up than other alternative energy resources, such as solar and wind power, and can be run at all hours.

However, a major challenge of using hydroelectric power is its high degree of unpredictability. This was seen last year when a state of emergency was declared due to the drought experienced in the northwest region. The withdrawal from the electricity grid forced the ICE to switch to diesel generators. Cutright says: “Power that is generated from hydroelectric dams [is] based on statistical analysis of past river flows and rainfall events. As climate change has more of an impact, the predictability of rainfall and river flow decreases.”

Geothermal development
There are around 100 active volcanoes on Costa Rica, making it a prime area for traditional geothermal development activities. Its capabilities in this area were first discovered in 1959 and then confirmed by a convoy of UN experts in 1963 and 1964. Following exploration activities in the Miravalles Geothermal Field, a plant with a 163.5 MW capacity was erected. Government efforts to further exploit the country’s geothermal resources then led to the construction of a binary power plant in the Las Pailas Geothermal Field, which began operations in 2011 with a capacity of 42.5MW. Feasibility studies for a second unit in the Las Pailas Geothermal Field are being conducted.

Geothermal energy has become a base load for the system, and now produces around 15 percent of Costa Rica’s total electrical power. It was after the country’s severe drought last year that the government and the ICE unveiled plans for a $958m geothermal energy plant in Guanacaste, near the northwestern province Rincón de la Vieja. By working towards a greater contribution to the energy mix from a more reliable source of renewable energy, Costa Rica can still progress towards its clean energy role, while bypassing the challenges presented by a dependence on hydroelectric power.

The project consists of three plants: the first will generate around 55MW at a cost of $333m. Two additional plants will then be built, and will have a capacity of 50MW. “If you lose one plant, you don’t lose a large capacity off the grid”, says Cutright. The project is being backed by the Japanese International Cooperation Agency, which is contributing a loan estimated at over $540m, while the European Investment Bank is providing around $70m.

The benefits of geothermal energy as a source of reliable and clean energy are abundant: it produces zero carbon emissions and its physical footprint is significantly smaller than other generating sources. Around 2.5 acres of land is needed for a 10MW geothermal plant, whereas almost 100 acres is required for a plant that can generate just one megawatt of solar power.

An ICE operator looks at the water level at the Cachi dam in Costa Rica
An ICE operator looks at the water level at the Cachi dam in Costa Rica

Wider, faster, longer
Over the last decade, there have been significant technological improvements to geothermal energy generation that have promoted its cost-effectiveness and made it more widely available. Major improvements have been made to the drilling technology, allowing geothermal wells to be sunk to greater depths and at less cost than was previously possible. Consequently, tapping into geothermal energy is no longer confined to the areas around hot springs and volcanoes.

“The deep drilling and well completion technologies that have been developed over the last decade in the petroleum industry, when applied to the geothermal industry, have made the production of geothermal energy competitive over a much larger geographic region”, explains Cutright.

The second major technological advancement in the field has been in the increased efficiency of thermal to electrical generation, specifically for binary and flash steam generators. These improvements in the binary cycles enable geothermal plants to be online approximately 97 percent of the time, making energy generation more accessible than even the best managed coal or nuclear plants.

“This is one of the clearest benefits of geothermal power production when compared to other renewable energy sources; geothermal energy is available 24 hours a day, 365 days a year”, says Cutright. “And with highly efficient generators, there is very little downtime for maintenance or for the repair of the equipment.”

→ A binary generator consists of two closed systems, beginning with the production and injection wells.

→ The production well is drilled into the deep, hot geothermal reservoir from where the hot steam or geothermal fluid is pumped to the surface.

→ The hot steam is passed through a heat exchanger and then injected back into the reservoir through the injection well.

→ When the hot geothermal fluid is sent through the heat exchanger, a secondary fluid is used to absorb the heat. This secondary fluid is similar to the refrigerant that is used in domestic refrigerators.

→ This heat transfer fluid is flashed to a vapour, which then drives the turbine that generates electricity.

→ The vapour is condensed back to a liquid in the condenser.

→ To complete the cycle, the vapour is then directed back into the heat exchanger to once again absorb heat in order to continue driving the turbine.

→ There are no emissions at all at the surface from this primary energy production system.

Such technological developments have made geothermal energy far more competitive in terms of the cost per kilowatt-hour in comparison with fossil fuels, as well as making it significantly cheaper than other sources of renewable energy, such as solar and wind power. Significantly, geothermal energy is the only base load renewable energy system available at present.

“Up until this point, it has always been the big coal plants, natural gas plants or nuclear plants that [have been] able to provide the base load, and then other specialist plants, such as solar and the wind systems, are used for the peaking load,” says Cutright.

Geothermal plants, on the other hand, can run a constant output for long periods of time without any variation. At the same time, they can vary their output very rapidly, which is achieved simply by increasing or decreasing the flow from the wells. By contrast, going from a cold start to generating electricity with a coal plant can take as long as four to eight hours, while it could take weeks to bring a nuclear plant online.

“Perhaps the key advantage for geothermal is both the base load capability and its ability to follow the load as the load increases or decreases on the general grid system”, says Cutright. “You can ramp up a geothermal plant in five, 10, 15 minutes – so you can go from 30 percent output to 90, 100 percent output in minutes. It can follow an increasing load demand very, very quickly and can meet variable loads, while at the same time act as a base level plant… You can’t do that with a big coal plant or a nuclear plant.”

Workers at a geothermal power plant run by the Costa Rican Institute of Electricity
Workers at a geothermal power plant run by the Costa Rican Institute of Electricity

Social consciousness
While substantial developments are being made towards the 2021 goal for clean energy, there are other areas of the country’s carbon footprint that are not progressing at the same rate. In particular, a considerable amount of pollution is produced by automobiles within Costa Rica, largely as a result of the country’s major tourism industry, which in 2013 accounted for 12.1 percent of the GDP, according to the World Travel and Tourism Council.

Costa Rica is making efforts to incorporate hybrid and electric transportation into its environmental strategy. It began over a decade ago with the introduction of the Toyota Prius, which has been followed by the Indian Reva and the Mitsubishi i-MiEV. The government is also offering support for the movement through incentives, compensating for the higher prices of electric and hybrid vehicles.

With a population of around five million, there are some critics who argue Costa Rica’s small size and limited manufacturing sector enables its clean energy capabilities, and so more populated and industrial nations would not be able to employ such a high rate of renewable energy generation. This case is supported by the country’s per capita electricity consumption, which is considerably lower than that of more developed states.

“Costa Rica is not exceptionally blessed with natural resources; there are many other nations that have equivalent natural resources, but what Costa Rica has is the national will to make a difference”, says Cutright. Political determination, a highly educated populace and a cultural drive to protect the environment are what makes Costa Rica unique in terms of its sustainability practices. “It’s this national recognition of the importance of their natural ecosystems that I think makes them stand out among other governments in the area”.

Of course, Costa Rica’s small population and service-driven economic model have helped its advancements in renewable energy, but it has other aspects that arguably could have held back its achievements in the field but have not. The country’s commendable levels of conservation and sustainability come down to an exceptional degree of environmental awareness, which is deeply ingrained in the national consciousness. With the 75-day triumph to boot and its work towards the 2021 goal, this small country is a role model for the rest of the world and a fine example to all advocates of clean energy.