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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.

Wednesday, May 17, 2006

The two Australian mine-workers, who were trapped for 14 days underground in a collapsed mine, have signed a media deal reportedly worth AUD$2 million for their story of survival. Local media reports that the lucrative deal, announced by the Nine Network, is believed to be the “highest ever paid to secure news talent”. A planned TV special will be the outcome of a deal secured by Publishing and Broadcasting Limited (PBL), which owns the Nine Network.

Miners Todd Russell and Brant Webb were entombed nearly a kilometre underground following a cave-in on April 25 at the Beaconsfield Gold Mine in Tasmania. A third miner, Larry Knight, was killed in the rock-fall. The two survivors trapped in a wire cage, survived by drinking water seeping through rocks until rescuers managed to dig a small tunnel to deliver fresh food and water. Their tale has captured the attention of the nation, with media corporations fighting for exclusive rights to the miners’ story.

The Nine Network’s chief executive Eddie McGuire said under the PBL deal, Woman’s Day, the Australian Women’s Weekly and the Bulletin magazines would also have access to the men. The Nine Network has announced it would broadcast a two-hour special with entitled “The Great Escape.”

Another deal is expected to be brokered with U.S. media. Mr McGuire said the deal would not restrict the pair from selling their story to CNN, the US Today Show and Good Morning America, who have all reportedly made contact with Mr Russell and Mr Webb this week.

Under the PBL deal, Woman’s Day, the Australian Women’s Weekly and the Bulletin magazines would also have access to the men, Mr McGuire said. Nine says it also wants the footage and photographs taken by the miners during their ordeal. The footage remains in the hands of the mining company.

The men, who were rescued on May 9, have not spoken publicly about the time they spent trapped underground.

See Wikipedia article: Beaconsfield mine collapse

Sunday, February 14, 2010

University of Cambridge security expert Professor Ross Anderson has blasted the EMV system used worldwide for credit and debit card transactions, and known in the UK as Chip and PIN, after his research team discovered a serious vulnerability. The group were able to carry out purchases using a card, even without knowing the associated personal identification number (PIN), by using a “man-in-the-middle” attack.

Retail terminals at the point of sale require the cardholder to insert their card and enter their secret PIN before a transaction can be authorised. They then communicate with the microchip built in to the card itself, which holds the PIN. If the correct number has been given, this chip returns a standard verification code (0x9000) to the terminal.

In the researchers’ attack they inserted a genuine card into a second reader, connected to a laptop. The laptop is linked by thin wires to a fake card, which is inserted into the retailer’s terminal. The laptop relays the communications between the terminal and the stolen, but genuine, card, up until the stage where the PIN is to be checked. At this point it intercepts and responds with the verification code, no matter what number was entered. The retailer’s terminal then believes that the correct PIN has been entered, and the card can be told that a signature was used to verify the cardholder instead.

Their technique has been tested successfully on cards from six different issuers: Bank of Scotland, Barclaycard, Co-operative Bank, Halifax, HSBC and John Lewis.

The group say that not much technical skill is required for the attack, and suggested the equipment needed could be kept in a backpack, with the wires to the fake card running down a user’s sleeve. They believe the equipment could be miniaturised to the size of a remote control.

“In practice how this attack would work is that one reasonably technically skilled person would build a device that carries out the attack and then sell this equipment on the internet just like criminals already do,” said Dr Steven Murdoch who worked on the project.

Professor Anderson claimed that the attack could already be in use by criminals. “We have many examples of people who have had their cards stolen and then purchases made using the chip and pin,” he said. “They are adamant they didn’t use it but if the banks say chip and pin has been used you have to pay. I think many of these people would have been victim of the kind of technique we have developed.”

He was scathing about bank claims that the system was secure. “The banks are wrong. All the banks are lying. They are maliciously and wilfully deceiving the customer. If there was any justice then the police would be looking into this. The system is not fit for purpose.”

Consumer group Which? have also called for an investigation, stating that in a recent survey one in seven people said that money had been taken from their accounts without authorisation. Around half of these did not have the money refunded by the bank.

“We want the banks to look into these potential flaws,” said Cathy Neal from Which? Money, “because we have had many examples where the banks have said a pin was used and the customer said it hasn’t.”

Over 90 percent of UK card transactions at point-of-sale use chip and PIN, according to the UK Payments Administration. The attack does not affect ATM transactions, which use different standards. Mark Bowerman, a spokesman for the group which represents card companies, said that there was no evidence the attack was in use and emphasised that card fraud had fallen with the introduction of chip and PIN.

“We are taking this paper very seriously, as maintaining excellent levels of card security is paramount,” he said. “However, we strongly refute the allegation that chip and PIN is broken.”

The research paper has been made available as a working draft, and is due to be published at the IEEE Security and Privacy Symposium in May 2010. Members of the banking industry were informed of the vulnerability in early December last year.

Tuesday, November 3, 2009

An elderly man in Scotland has died after contacting the H1N1 virus, or swine flu. The Scottish Government made the confirmation of the information on Monday.

The victim is said to have been suffering from underlying health problems. He came from the NHS Fife area. With the death of this victim, the number of deaths that have occurred in Scotland from the virus has now reached 30.

Nicola Sturgeon, the Scottish Health Secretary, made a statement about the incident, and encouraged eligible persons to receive antiviral vaccines. “My deepest sympathy goes to the patient’s loved ones at this sad time,” she said.

“H1N1 can be devastating in a small number of cases but fortunately the vast majority of people only suffer fairly mild symptoms and make a full recovery. However, we must all remain vigilant and I would underline the importance of maintaining hygiene standards and urgently seeking medical advice if you believe you are at greater risk of influenza complications.”

Thursday, December 7, 2006

The New Zealand Government has tabled the Therapeutic Products and Medicines Bill, despite unprecedented political opposition.

In 2003 the Hon Annette King signed a Treaty with Australia agreeing to hand control of the natural health products sector over to an Australian regulatory body, however she needs to pass enabling legislation in New Zealand. “This will be a world-class joint scheme designed to regulate the safety, quality, effectiveness and promotion of therapeutic products in both New Zealand and Australia. That includes the regulation of complementary and alternative medicines, over-the-counter and prescription medicines, medical devices, blood and blood products and tissues and cellular therapies,” Ms King said.

Twice the Bill has been thrown out by select committees, but the Government is determined to ram it through Parliament, according to the New Zealand Health Trust.

“Late tonight the Bill was finally tabled, with no announcement from the Minister,” said Amy Adams, spokesperson for the Trust, “Clearly the Minister is keen to sneak it into Parliament under cover of the silly season, in the hope that she can keep it under the public’s radar.”

“I welcome the support of a majority of the House who want to see the Bill go to Select Committee where New Zealanders can have their say,” Ms King said.

The NZ Health Trust conducted research earlier this year which showed 62% of New Zealanders used natural health products. “This Bill represents a massive and irreparable change to the way we make rules for New Zealand dietary supplements,” Mrs Adams said.

“Under the proposed regime, well over a million New Zealand consumers would find the choice of products adversely affected, and experience cost increases. So you can see why the Government is trying to sneak this into the House without any fuss – they don’t want the public to know.”

All the political parties except Labour have pledged their opposition the proposal, despite some intense lobbying by Australian and New Zealand officials.

“It is a very serious thing to hand sovereignty over your country over to another nation,” Mrs Adams said. “And all the other political parties see the sense in making sure the sector is regulated from New Zealand – not as a minor state of Australia.”

Ms King said: “The Bill… ensures that New Zealand will have an equal say in the setting up and running of the new Authority and joint scheme.” The new authority will be like a crown-owned entity and will have to provide an anuual report and a statement of intent to parliament each year.

Thursday, October 9, 2008

The head of the International Monetary Fund (IMF) says the world is on the brink of a global recession but predicts the economy will begin to recover by late 2009.

Dominique Strauss-Kahn, Managing Director of the IMF, stressed nations must work together to avert a global recession and warns there is “no domestic solution” to the crisis. He also said this week’s coordinated interest rate cuts around the world are a good example of the international cooperation needed to restore faltering economies.

Furthermore, he announced the IMF has activated an emergency program Wednesday that allows the fund to provide loans more easily and quickly to emerging countries in economic trouble. This program was first used during the 1997 Asian crisis.

The program might be used in Iceland, which has seen major problems hitting the financial sector. Iceland has been forced to nationalize the three largest banks and, most recently, Kaupthing Bank.

The IMF chief made these remarks in Washington D.C. on Thursday, as top officials from IMF nations and the G-7 industrialized countries are gathering for meetings on economic issues. U.S. President George Bush is set to meet with G-7 finance ministers at the White House on Saturday.