Snowden: NSA 'Targets Millions' With Malware

By Dominic Waghorn, US Correspondent

British and American spies are acting as malware hackers potentially targeting millions of computers worldwide, according to NSA whistleblower Edward Snowden.

The latest Snowden revelation claims that the NSA and GCHQ are expanding a massive programme of state-sponsored malware infection.

The NSA has also set up fake Facebook servers, to infect target computers, according to claims reported by The Intercept.

The malware allows spies to listen in to targets, watch them in some cases, extract data and destroy computers, according to documents reportedly acquired by Snowden.

The malware was previously used secretly to target only a few hundred victims.

The NSA has now developed an automated system code-named TURBINE that allows "the current implant network to scale to large size (millions of implants) by creating a system that does automated control implants by groups instead of individually".

Britain's Government Communications Headquarters (GCHQ) in Cheltenham

What was a carefully-tailored programme run by a small number of human operators is being automated, it is claimed.

The document describes TURBINE as "a new intelligent command and control capability designed to manage a very large number of covert implants".

These implants are thought to be capable of spying on individuals through their PC cameras and microphone, extracting files, monitoring computer usage, and destroying a computer's files.

Earlier documents leaked by Snowden suggest up to 100,000 computers were infected in this way.

The TURBINE revelations suggest a far higher number may be more infected.

Mr Snowden claims the NSA has also set up fake Facebook servers

Computer users spend billions on anti-malware software. 

The revelations indicate British and American taxpayers' money is being spent developing new malware that is then circulated on the internet. 

Critics say neither intelligence agency can guarantee that the malware is not being used by the wrong people.

The programmes therefore make the internet less safe, say critics.

The report claims one technique, code-named QUANTUMHAND, tricks users into thinking they are logging into Facebook by masquerading behind a fake Facebook server. 

The disguised NSA server squirts malicious data packets that allow spies to gain control of the victim's computer.

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Social Media 'Could Save The High Street'

By Gerard Tubb, North Of England Correspondent

Britain's struggling high streets could be saved by a combination of social networks and loyalty schemes, according to shopkeepers in Yorkshire.

The market towns of Ilkley and Boroughbridge are fighting back against supermarkets, retail parks and the internet by using Twitter and Facebook along with newcomer Phlok.

Sarah Lyle, who runs Attic womenswear in IIklely and helps organise the town's new initiative, says digitally connecting independent traders to their customers is paying off.

"Social media is amazing, just last week alone it accounted for a quarter of my turnover," she said.

The latest part of Ilkley's social media strategy is Phlok - a digital loyalty scheme that rewards customers with points each time they spend money in any of the 29 independent businesses signed up in the town.

Ms Lyle pays the firm £69 a month, and when customers redeem their points via a smartphone app it puts money back into her account.

The scheme already has more than 40 clusters of businesses signed up across England and Northern Ireland, with four Yorkshire market towns online and more in the pipeline.

Sarah Lyle from Attic womenswear

Phlok founder and chief executive Paul Graham said the scheme was the opposite of the old message "Use us or lose us" which relies on making people feel guilty for shopping elsewhere.

"What we're saying is: 'Businesses are investing in a system to reward you the customer for remembering they exist' and that's much more positive, he said.

It is a message that has struck a chord in Boroughbridge on the other side of Leeds where 16 independent businesses have signed up to the Phlok scheme which was launched in the town last month.

Like Ilkley, it is seen as a logical next step after traders embraced social media to promote the town.

Organisers have set up training sessions on how to use social media effectively along with a "Love Boroughbridge" website and a business self-help group which meets monthly in the town's Crown Hotel.

Local trader Louise Leong is convinced the new ideas have created a buzz around the town and improved business.

"More towns should be working together like this to keep their economies thriving," she said.

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