Thursday, July 3, 2014

Ian Narev, the CEO of the Commonwealth Bank of Australia, this morning “unreservedly” apologised to clients who lost money in a scandal involving the bank’s financial planning services arm.

Last week, a Senate enquiry found financial advisers from the Commonwealth Bank had made high-risk investments of clients’ money without the clients’ permission, resulting in hundreds of millions of dollars lost. The Senate enquiry called for a Royal Commission into the bank, and the Australian Securities and Investments Commission (ASIC).

Mr Narev stated the bank’s performance in providing financial advice was “unacceptable”, and the bank was launching a scheme to compensate clients who lost money due to the planners’ actions.

In a statement Mr Narev said, “Poor advice provided by some of our advisers between 2003 and 2012 caused financial loss and distress and I am truly sorry for that. […] There have been changes in management, structure and culture. We have also invested in new systems, implemented new processes, enhanced adviser supervision and improved training.”

An investigation by Fairfax Media instigated the Senate inquiry into the Commonwealth Bank’s financial planning division and ASIC.

Whistleblower Jeff Morris, who reported the misconduct of the bank to ASIC six years ago, said in an article for The Sydney Morning Herald that neither the bank nor ASIC should be in control of the compensation program.

Monday, March 19, 2007

At least 10 pets, 9 cats and 1 dog have died as a result of eating contaminated pet food, says the United States Food and Drug Administration, or FDA. The contamination caused cats and dogs to both go into kidney failure.

At least 51 brands of cat food and 40 brands of dog food have been recalled. The manufacturer of the food is Menu Foods, which is based in Mississauga, Ontario in Canada. The brands include: Iams, Nutro, and Eukanuba pet foods. Nestle, Purina PetCare Co., Procter & Gamble and Hill’s Pet Nutrition Inc. are voluntarily recalling their pet foods as a precaution. The FDA says that only wet food has been reported to have caused the deaths. The food was sold between December of 2006 and March 3 of 2007. The recall includes pouches and cans of wet food that total over 60 million.

“We are still trying to find out what the true picture is out there of animals. We’re talking about 1 percent of the pet food [supply] and it’s really just impossible to extrapolate at this point,” reported the FDA’s head veterinarian, Stephen F. Sundlof.

The manufacturer is currently performing tests to determine what might have caused the contamination, but so far, the source has not been identified.

“We’re testing and testing, but we can’t identify the problem in the product,” said Sarah Tuite, a spokeswoman for Menu Foods.

Anywhere from 40 to 50 cats and dogs were fed the contaminated food during testing by Menu Foods, and at least seven of those animals died. The species or how many cats or dogs died during testing is not known.

The FDA says that the possible cause of the contamination could be from heavy metals, lead or fungi inside wheat gluten which is used in pet foods as a “filler.”

A complete list of the products recalled can be found here: Menu Foods Recall List. Pet owners are urged to stop using any and all food on that list that may still be in their home. Owners are also asked to seek immediate veterinarian attention if the pets are suspected of eating the food.

The recall could cost over 30 million USD.

Wednesday, January 10, 2007

Apple Inc. today has introduced the much-anticipated iPhone at the Macworld Conference in San Francisco.

The iPhone is claimed to be “a revolutionary mobile phone” as stated on the Apple website. The device appears to be running a mobile version of the Apple operating system Mac OSX. It is approximately the same size as a 5th generation iPod, it has a 3.5-inch LCD touchscreen display that is used to access all features of the phone including number dial, as well as making phone calls. The iPhone plays music, movies, displays pictures and is able to connect to a wireless network.

Apple CEO Steve Jobs unveiled the device by walking onto the stage and taking the iPhone out of his jeans pocket. During his 2 hour speech he stated that “Today Apple is going to reinvent the phone, We are going to make history today”.

Today Apple also released their Media Center device – Apple TV. It will directly compete with Microsoft’s Media Center operating system. Apple has taken a different approach to the media center market; rather than storing content (such as movies, music and photos) on the device, Apple TV connects to a computer (Mac and Windows) over a wirless network connection and plays all content stored on that computer. This makes it substantially easier for users to organize their media content.

Thursday, April 10, 2008

The United Kingdom is listed second in a report on global cyber-crime statistics, behind the United States and ahead of cyber-crime “hotspots” Nigeria and Romania. The 2007 Internet Crime Report was released in April by the Internet Crime Complaint Center (IC3), a joint operation between the Federal Bureau of Investigation and the National White Collar Crime Center.

Americans reported losses of US$240 million from global cyber-crime in 2007, a $40 million increase from 2006. The Internet Crime Complaint Center received 206,884 complaints of online fraud in 2007, a decrease from the previous year’s 207,492 complaints.

FBI special agent John Hambrick, in charge of the IC3 unit, told the Agence France-Presse “We’re seeing more schemes involving bigger ticket items, get-rich-quick and work-at-home schemes that involve higher dollar losses”. As the report only includes figures from crimes reported to law enforcement, it is likely that real crime numbers were higher.

FBI Cyber Division Assistant Director James E. Finch commented on the report: “The Internet presents a wealth of opportunity for would be criminals to prey on unsuspecting victims, and this report shows how extensive these types of crime have become … What this report does not show is how often this type of activity goes unreported. Filing a complaint through IC3 is the best way to alert law enforcement authorities of Internet crime.”

In response to the report’s release, the information technology consultancy Global Secure Systems (GSS) warned that the United Kingdom is becoming a hotbed of internet crime. According to the report, the UK accounts for 15.3 per cent of online crime from US crime reports. “This is significantly ahead of other cyber-crime hotspots such as Nigeria (5.7 per cent) and Romania (1.5 per cent),” said David Hobson, managing director of GSS, in an interview with vnunet.com.

The 2007 Internet Crime Report cites the top ten countries by amount of perpetrators of online crime. In descending order, the top ten list includes the United States, the United Kingdom, Nigeria, Canada, Romania, Italy, Spain, South Africa, Russia, and Ghana. Scammers living within the United States most often lived in California, Florida, Georgia, Illinois, New York, Pennsylvania, and Texas. Men lost more money to online fraud than women in 2007, and also accounted for 75 percent of cyber-crime perpetrators.

FBI spokeswoman Cathy Milhoan told CIO Today that online scammers attempt to take advantage of the good will of individuals, asking for money for purported charities during crises. “The scammer tries to prey on victims who are kind of in tune with what’s going on in the world. The scam changes, but ultimately they’re preying on the good will of people,” said Milhoan.

The most widely reported complaint was Internet auction fraud at 35.7 per cent of referred crime complaints. Other online criminal activities cited in the report include non-delivery of purchases and credit/debit card fraud, computer intrusions, spam/unsolicited e-mail, and child pornography. The report also seeks to raise awareness of other types of cyber-crimes, and describes steps individuals can take both to prevent internet crime, and to report it if they have been victimized.

Saturday, August 5, 2006

Three of Sweden’s ten nuclear reactors have been shut down due to safety concerns following an incident last week at the Forsmark Nuclear Power Plant, in which the reactor cooling systems failed. The reactor has since been shut down there. After the incident, the Swedish Nuclear Power Inspectorate, SKI asked all the nuclear power plants to demonstrate that the same failure could not happen in them. On Wednesday, two more reactors at Oskarshamn were shut down after the operator said their safety could not be guaranteed.

Last week’s incident at the Forsmark plant was triggered by a short circuit that cut power to the reactor cooling system. Two of the four backup generators also failed to start, but the remaining two worked and were sufficient to meet the plant’s needs. Greenpeace reports that the fault in the backup power systems were traced to new equipment installed in 1993.

The spokesman of the Swedish Nuclear Power Inspectorate Anders Bredfell denied that there was any danger of a meltdown, adding that there was also a backup gas turbine to power the cooling system in an emergency.

However, Lars-Olov Höglund, who was responsible for the nuclear plant Forsmark for many years, said the incident was the most dangerous one since Chernobyl and Three Mile island, and that a meltdown was avoided only by pure luck. His views have however been questioned as he is involved in litigation with the Swedish nuclear industry and is known as an outspoken nuclear critic. Researchers at the Royal Institute of Technology as well as the personnel at the power plant were critical of Höglunds’ view.

Speaking to BBC News, SKI spokesman Anders Bredfell said that the International Atomic Energy Agency (IAEA) was informed of the incident as required and that the incident classes as a ‘2’ in the 0-7 scale used by the IAEA to assess the severity of the incident.

Another reactor in Forsmark and a fifth at Ringhals nuclear power plant have been offline due to planned maintenance work. With five of its ten reactors down, Sweden’s power generation capacity is down by almost a fifth.

The environmental group Greenpeace called on the government to shut down all reactors and probe whether the fault was a generic one. The Green Party has called for an independent investigation of the incident. Sweden is scheduled to retire all its nuclear power plants in the next few decades, as decided by a referendum in 1980.