The tyranny of Pokemon Go, more addictive than other games


It’s repetitive. The ‘game play’ is puerile. But it does cast a spell on players.

Malaysia, a plague has just arrived in your land and, if the rest of the world is any indication, it will infect every corner of your society. I’m talking of course about the infectious tyranny that is Pokemon Go. Really.

This is a game with very little in actual game play. You throw Pokeballs at Pokemon that spawn seemingly all over your neighbourhood, on your friends, and even in your own home. You capture them to fight other Pokemon, then you wash, rinse, repeat.

The battle aspect comes down to swiping right and tapping your screen a bunch of times. It’s not exactly the most nuanced or skilled or even fun game play in the world but yet, Pokemon Go has taken over the world.

I didn’t quite understand it until it arrived in Hong Kong, but suddenly on the street people were face down in their phones even more so than usual. And whenever I snuck a look there was a little critter bouncing around on their screens that they were trying to capture by tossing Pokeballs at it.

Silly. Ridiculous. So of course, yours truly had to try it.

And of course, yours truly got addicted just like everyone else.

Really, the game should be called Pokecrack or something a little more indicative of its addictive nature. Walking the dog at night, I seek out the local gyms – Pokemon Go locations where you can train or battle other Pokemon, but only at certain locations in the city – see, that’s why it’s got the “Go” in its name, this isn’t a game you can play from home – and at all these locations, even at midnight, I find people milling around in their pyjamas outside, with their faces stuck to their phones. Me included.

I went to a bar to meet a friend the other day and of course we started hunting Pokemon while there, which quite a few others were already doing. On the way out to the pay the bill the barkeep invited us back on Saturday because they would be “buying lures all day to attract more Pokemon”. Yes, Pokemon is now a way to attract people to your business.

Pikachu, I choose you.

But why is this game so addictive? I just said the game play was infantile. So simple that it boggles the mind. And it is. But everything in Pokemon Go centres on the rewards of new and exotic Pokemon and levelling up.

Basically it’s a game that hinges on the Random Reward Schedule.

The Random Reward Schedule is a tenet of behavioural psychology. It’s a form of reinforcement. Reinforcement, of course, “strengthens an organism’s future behaviour whenever that behaviour is preceded by a specific antecedent stimulus”. That’s a mouthful.

Basically, what it’s saying is that you will continue to do a thing if you get positive feedback.

This all goes back to the research of B.F. Skinner, who noted that the variable reward schedule or the random reward schedule resulted in the most compulsive and addictive behaviour in mice. Basically, mice were trained to press a lever that would dispense treats.

The mice that were rewarded with a treat every time were less inclined to keep pressing the lever, than the mice that were rewarded with a large treat at random intervals. The idea being that when a mouse thinks there could be a nice reward just around the corner, it will keep performing the same action.

The same goes for humans.

In Pokemon Go you’re constantly checking for Pokemon appearing in your vicinity. Most times they are common ones like Pidgeys or Caterpies, but every once in a while, you find something exciting like a Vaporean or an Electabuzz. And yes, I know how nerdy this sounds right now. Those rare and exotic Pokemon are just like large treats to a mouse.

The random reward schedule is linked to the Hook Model which is a technique employed by social media and mobile game designers and, of course the designers of Pokemon Go. Its mission – the name gives it away – is to hook you.

It goes beyond simple reinforcement of behaviour; it’s all about creating habits so that we’ll continue doing something the designers want us to do. In this case, it’s to continue searching for Pokemon and hopefully spend a few of our hard-earned dollars for gear that will help us do just that.

Pokemon Go also employs another aspect of the model, and that is our need to hunt. In the evolutionary sense, we are hunters, hunting for food in the wild. Pokemon Go employs a tracking system to find those rare and exotic Pokemon so that we are literally hunting down little virtual critters. All. Day. Long.

But we’re not hunting for sustenance, now we’re just hunting for the sake of hunting. Our genetic urges are misfiring all over Pokemon Go.

And knowing that I’m being manipulated on the most fundamental level by this game, I’m still checking my phone periodically to see if any rare Pokemon have showed up. And it’s not even fun.

So what to do, now that Pokemon Go has come for … to us? It really depends. It does make you walk more, and it can make your daily commutes a little more enjoyable (depending on your definition of enjoyable) – but if you don’t like having your face stuck in your phone, then you’re better off treating Pokemon Go like drugs, and not even trying it.

By Jason Godfrey –

Catch Jason Godfrey on The LINK on Life Inspired HD (Astro Ch 728).

More addictive than other games

CATCHING virtual critters on Pokémon GO has a tendency to be more addictive than other online games.

Experts say the risk of being addicted to the highly-popular game is increased because it is a feast for the senses.

This is especially since it is an augmented reality game, which requires players to have a live direct or indirect view of their physical surroundings.

“The risk of addiction is increased as there are multiple sensory bombardments that sustain playing Pokémon GO.

“Such sensory bombardments are continuous, leading to pleasure and satisfaction highs once players level up in the game and are motivated to continue,” explains Universiti Sains Malaysia criminologist and psychologist Dr Geshina Ayu Mat Saat.

She says this can be dangerous as it makes individuals dependent on the game for pleasure or happiness and some people may confuse the two.

“It could also lead to despair when the game is concluded, when they experience problems, or when a level objective could not be met.

“These are similar responses that an addict experiences. Normal functioning is disrupted, the least being in terms of sleeping and eating patterns,” Dr Geshina says.

Other aspects that could be affected are family interaction, work-life balance, carrying out responsibilities and daily tasks.

Dr Geshina finds that there are pros and cons to playing the game.

“On one hand, players will get more physical exercise, apply problem-solving skills, and have some social interaction when they meet other players in real life,” she says.

But on the other hand, too much focus on their phones may narrow their perception, leading to selective attention on the immediate environment to fulfil the needs of the game rather than a genuine appreciation of the outdoors.

“Social interaction may be limited to brusque questions of where the characters are, rather than polite or pleasant queries to initiate meaningful conversation,” says Dr Geshina.

She also notes that there is also a possibility that players, especially children, will be unable to separate between reality and the game as it blurs the lines and makes players a living game avatar.

Malaysian Mental Health Association deputy president and consultant psychiatrist Datuk Dr Andrew Mohanraj Chandrasekaran says people are generally eager to embrace new technology and will surely warm up to augmented reality games like Pokémon GO.

Describing the game as “taking it one step further”, he says one positive point of the game is that it can motivate people to get out more and connect with others with common interests.

“This is particularly relevant to people with introverted personalities and those suffering from depression.”

Dr Andrew, however, points out that the game can be a double-edged sword and could also work negatively in making people more engrossed in their phones.

“Ultimately, technology must be embraced for the right purpose – be it for recreational, therapeutic or competitive purposes.

“Technology can also be harmful, destroy interpersonal relationship, affect social cohesion, blur the lines between appropriate and inappropriate behaviour and cause confusion between reality and the virtual world.

“Knowing how to embrace technology in a balanced manner is the answer,” he says.

Sources:  The Star/Asia News Network

Take precautions on public wifi, hackers are watching you, travellers !


Video:  //players.brightcove.net/4405352761001/default_default/index.html?videoId=5066118149001

http://www.thestar.com.my/news/nation/2016/08/01/take-precautions-on-public-wifi-cybersecurity-firm-hackers-can-gather-sensitive-data-via-unsecure-co/

KUALA LUMPUR: If you are surfing the Internet on a public Wi-Fi, always assume someone is watching you out there.

Better yet, do not connect to any public Wi-Fi at all, said LE Global Services (LGMS) executive director Fong Choong Fook, whose private cybersecurity firm employs hackers to test the network security of the country’s major banks.

“I would never use a public Wi-Fi,” he said.

“Even an IT person may not be able to tell if the access point he is connected to is safe or if the activities are being watched.

“There may be signs like your Internet is slowing down but hackers can make it so elegant that you won’t even notice,” he said in an interview.

Malaysia’s national cybersecurity agency CyberSecurity Malaysia (CSM) said hackers could position themselves between a person’s device and the Wi-Fi router and are able to record sensitive data that the surfer is keying into his device.

Hackers can also “create” their own Wi-Fi and trick people into thinking they are connected to a credible public access point like the one from a restaurant, airport or office – when in actual fact these devices are connected to the criminals’ hardware.

Thus, they would be able to remotely watch everything a person is sending out on the Wi-Fi like passwords, e-mails or credit card information.

As frightening as these attacks may sound, Fong said this had been going as early as the 1990s.

Demonstrating to The Star how a hacker could steal information, LGMS set up an “evil twin” Wi-Fi using a laptop and named it after a famous franchise restaurant just below its office in Puchong, Selangor.

Fong connected two devices to this Wi-Fi and proceeded to log into social media, e-mail and Government websites.

Within seconds of logging in, the hacker’s computer began recording the activities in both devices in the experiment – recording every e-mail address, username and password that was keyed in.

Though the demonstration was only meant for the devices in the controlled environment of the LGMS office, three other users got connected to the dummy Wi-Fi, thinking they were linked to the franchise restaurant’s Internet, during the experiment.

“Hackers can target one specific person or they can target everyone in a cafe to get their devices to send all their data through their dummy Wi-Fi

“When they have your information, they can steal your identity. They can pose as you on Facebook, or send out e-mails to your contacts under your account,” he said.

Fong advised users to avoid connecting to public Wi-Fi or to only limit their browsing to Internet searches if they must connect to one.

The firm also suggested users to subscribe to VPN (virtual private network) technologies to secure their traffic.

VPN encrypts data on devices, making it hard for hackers to spy on the user’s online activities. Most VPNs are available on a subscription basis, much like an anti-virus programme.

So far this year, CSM has recorded eight instances where private Wi-Fi networks were hacked and 1,462 cases of online intrusions have been reported, which is nearly double the number of incidents compared to the same period in 2015.

It advised users to keep their Internet browsers up to date and to disable the feature which automatically saves password in the cache –as it makes it easier for criminals to steal.

by Nicholas Cheng The Star/Asia News Network

82% of travellers would use public Wi-Fi

 

KUALA LUMPUR: You are on a holiday in a foreign country. Naturally, you want to upload pictures to your Facebook or send messages to your friends back home or trawl the Internet for places to visit.

Chances are there is no Internet data connection where you are and you would search for whatever free Wi-Fi there is at the airport, hotel or cafe to stay connected.

An estimated 82% of travellers would choose to connect with unsecured public Wi-Fi, a practice which could up risks of cyberattacks, said Kasper­sky Lab.

The cybersecurity company surveyed 11,850 people worldwide and found that people on holiday would be carefree when it comes to their personal data protection.

The study found that 42% of travellers said they were less likely to care about the credibility of the Wi-Fi when they were on holiday compared to on business travels.

A third (33%) admitted to visiting websites of sensitive nature using foreign Wi-Fi, while almost half of the respondents conducted online banking (48%), shopped online (46%) and made private calls (35%) when they were abroad.

In a separate study, it found that at least 22% of travellers who conducted transactions online had experienced money loss while 8% had had a credit card compromised while in a foreign country.

Most of the time, victims do not even know they are being watched.

CSM advised users to keep an eye on their devices’ firewall alerts. Any trigger may indicate that a third party may be trying to access their devices illegally.

A report by MasterCard estimates that 10.9 million Malaysians travelled for overseas holidays in 2014, with the numbers expecting to hit 15.2 million by 2020.

The Kaspersky study also found that people were more likely to throw caution to the wind while on holiday with respondents saying they were 18% more likely to let strangers handle their smartphones to take pictures, 28% more likely to leave their devices unsupervised, 18% more likely to contact strangers online and 6% more likely to engage in “sexting”.

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Hackers in your heads, Cybercriminals preying on gullible


 

Cyberscammers tapping into minds – Conmen get personal data from social media

<< You’ve been had: A user checking an SMS alert about an unauthorised credit card transaction.

PETALING JAYA: Cybercriminals are getting into your head.

Realising that victims are no longer falling for the ‘I’m a Prince who wants to deposit US$50mil (RM199mil) into your account’ e-mail, these syndicates have enlisted psychologists and behavioural experts to launch targetted attacks on companies, groups and individuals.

By going through their victims’ social media accounts, they learn more about their targets and are able to craft attractive e-mail, prompting them to respond.

Clicking on the link in the e-mail will download malware that encrypts your device. Computers, smartphones, smartwatches and any other network-connected device, can be locked by cybercriminals who will only release it for a fee, or “ransom”.

Such ransomware has reached our shores, with a total of 5,069 attacks in Malaysia last year, according to cybersecurity company Symantec Corporation.

“The new modus operandi uses social engineering, with the e-mail being crafted by Malaysians who know the local scenario and how to trigger emotional reactions,” Symantec (Asia Pacific and Japan) cyber security services senior director Peter Sparkes told Sunday Star.

For example, if they find out from Facebook that you went shopping, you could get an official-looking e-mail from a trusted source like a government body or postal department saying: ‘You’ve received a free gift from shopping at our KL outlet. Click this link to trace your parcel’.

“Or if they see you at a cycling event, the e-mail could say: ‘Thank you for participating. Click on the link for photos and videos of the ride’,” he said.

“To decrypt your device, they’ll ask for about US$200 (RM782) in virtual currency like Bitcoin, to bypass the banks,” Sparkes added.

Acknowledging this new threat, Malaysian Communications and Multimedia Commission (MCMC) strategic communication head Sheikh Raffie Abd Rahman urged the public to be more alert.

He said one of the most commonly used social engineering techniques was phishing attacks targetting online banking customers.

Such cases would be investigated by the police under the Computer Crimes Act 1997 or the Penal Code.

A total of 1,311 phishing websites have been blocked by the MCMC between last year and March 8.

This includes fake pages created to acquire personal information such as usernames, passwords, banking information and credit card details by masquerading as a trusted entity in an electronic communication.

CyberSecurity Malaysia (CSM) chief executive officer Dr Amirudin Abdul Wahab said the number of incidents reported to the CSM indicates the growing threat of ransomware here.

Revealing that local businesses are also targeted, he said the CSM will work together with international communities to share current information on ransomware threats and disseminate them to the public.

Malaysian Mental Health Association deputy president Datuk Dr Andrew Mohanraj said cybercriminals have become more sophisticated in their approach by enlisting psychologists.

“But whichever methods they use, there is an underlying modus operandi of appealing to human emotions of fear, greed, curiosity, loneliness, compassion or even spirituality,” he said.

By Christina Chin Yuen Meikeng The Star

Cybercriminals preying on gullible

Users beware! With cybercriminals leveling up, ransomware attacks are expected to spike here. Malaysians shouldn’t let their guard down when it comes to personal information and should be on the lookout for online scams.

HE wasn’t the fastest, but Eugene (not his real name) feels like a champion after finishing his first marathon.

Posting a selfie he made public on his Facebook account, the 28-year-old later receives an e-mail congratulating him on the feat. “Click on this link to see more pictures and videos of the event,” says the e-mail, which appears to be sent from the organiser of the run.

Curious and hoping to see images of himself, Eugene clicks open the link on his laptop but instead, gets a message telling him his device is now locked. All his files have been encrypted and he can’t access them, including his work document to be submitted on Monday.

The only way he can retrieve them is to pay a hacker a ransom of US$300 (RM1,181) in Bitcoin currency. Such an incident, known as a ransomware attack, could very well happen to you if you are not careful.

To top it all off, these cases are expected to increase this year, with “very specific ransomware targeted very specifically at Malaysians” being detected, says Symantec (Asia Pacific and Japan) cyber security services senior director Peter Sparkes.

According to cybersecurity company Symantec Corporation, Malaysia ranks 47th globally, and 12th in the Asia Pacific and Japan region, in terms of ransomware attacks.

Last year, there were 5,069 ransomware attacks or 14 per day in Malaysia. But Sparkes foresees that these numbers will surge.

“Ransomware is very attractive because it makes lots of money. It’ll be big here in the coming months, probably averaging 20 attacks per day.

“We’ve seen a lot of smartphone attacks recently. They love WhatsApp because the best way to get someone to click on a link is if it comes from someone you know,” he says.

Sparkes describes such crypto ransomware as the latest, and most dangerous malware threat because it’s near impossible to get rid of.

He adds that the experience is very emotional because many people do not back up their data.

“For individuals, losing personal data like photos and videos is traumatic so most victims will pay. Some will even tell you how to infect your friends to decrease your ransom,” he reveals.

Ransomware hackers are also using help from psychologists and behavioural experts to study their victims on social media before sending them personalised messages to trigger a response.

But it is not just ransomware that needs to be taken seriously as Malaysians need to be vigilant over social media scams, with these two being named as key trends in the country now by Symantec Malaysia systems engineering director David Rajoo.

He says cybercrime is extremely widespread with one in three Malaysians surveyed having experienced it in the past year and 83% know of someone else who was a victim.

“Consumers here lost an average of 27 hours and about RM8.9bil over the past year, dealing with the fallout of online crime.

“The amount of personal data stored online continues to grow, and while this free flow of data creates immense opportunities, it also opens the doors to new risks,” he warns.

Cybercriminals preying on personal data are also a cause for concern here and globally.

Sparkes points out that personal assistants and those in human resources are popular targets because that’s how cybercriminals gain access into an organisation’s database.

“Take a hotel for example. I’d target the CEO’s personal assistant. All I need is 200,000 of their best guests. If I sold the details at US$50 (RM197), it’s pretty good money for a day’s work. HR staff’s another good one because they look at CVs,” he says.

Last year, 500 million personal information was breached globally. That, he says, is a conservative estimate.

Someone checks out your Facebook activities, creates a personalised e-mail to get you to click on a link, and that’s it.

Everytime you download an app on social media, you could be giving access to your life, he cautions.

Of 10.8 million apps analysed in 2015, three million were collecting way more information than necessary, Sparkes says.

“Cyber scammers are also making you call them to hand over your cash,” he adds.

They send fake warning messages to devices like smartphones, driving users to attacker-run call centers to dupe them into buying useless services.

The services industry is the most vulnerable sector in the country, attracting 72.4% of spear phishing attacks.

There was also a significant spam increase with Malaysia jumping up the global ranking from 44 in 2014 to 23 last year, he adds, lamenting how many still don’t realise that cybercrime is an industry.

Cybercriminals are professionals using very sophisticated tools and techniques.

“They work like any other legit organisation – it’s a 9am to 5pm job with weekends off, holidays and proper offices. A lot of users still think it’s 18-year-olds in the garage fooling around. Nothing could be further from truth. The guys sell info to the underground economy,” Sparkes says.

Syndicates only need three things – cheap broadband, a cyber-savvy workforce they can hire, and countries where cyber laws are weak. Asia Pacific and Japan has invested significantly to give their population access to the Internet, he adds, explaining the shocking rise of cybercrime.

“I’m particularly concerned about the senior citizens as many are just discovering the Internet. They’re very trusting and will download without questioning. People stress on being streetsmart, but it’s just as crucial to be cybersmart,” he feels.

By Christina Chin Yuen Meikeng The Star

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M’sians still giving away sensitive info

Fintech – disruptive technology


https://players.brightcove.net/4405352761001/default_default/index.html?videoId=4903561099001

http://www.thestar.com.my/business/business-news/2016/05/21/fintech-disruptive-technology/

Businesses are embracing it by coming up with their innovations and startups

A BUZZWORD growing in popularity in the financial world today is “fintech”, short for financial technology, which in a nutshell refers to the use of technology to deliver faster and cheaper financial services.

Going by some predications, fintech could take a big chunk of business away from traditional banks as it is being run by smaller more nimble start-ups. But the debate is still out there as to how much that chunk will be. In Malaysia in particular, fintech’s presence is still nascent and small. Fintech transactions totalled a mere US$6.37mil this year compared with a global figure of US$769.3bil, according to Statista, an online statistics provider.

It however predicts that fintech transaction values to grow to US$14.4bil by 2020. A significant number of fintech companies, especially those in the digital payments space, actually work alongside local banks.

Still, fintech is not to be taken lightly. Top bankers themselves are speaking of its imminent threat to their business. Former Barclays CEO Anthony Jenkins referred to it as banking’s “Uber moment” to describe technological advances that could see bank branches close down and people laid off.

Last April, Jamie Dimon the CEO of the US’ largest bank JP Morgan in his letter to shareholders warned that “Silicon Valley is coming.” “There are hundreds of start-ups with a lot of brains and money working on various alternatives to traditional banking,” Dimon wrote.

On the home front, just last month prominent banker Datuk Seri Nazir Razak echoed such views. Speaking at the Star Media Group’s PowerTalk: Business Series held at Menara Star, Nazir opined that fintech companies are disrupting banking.

“Bankers must respond to this Uber moment. People actually dislike banks today, since the global financial crisis. Recent data suggests that in the US, the cost of banking intermediation has not changed for 100 years in real terms. This simply means banks have not gotten more efficient over the years, so its right that banks get attacked by ‘Silicon Valley’, which has identified banking as an industry that is very ‘ripe’ or juicy to disrupt.”

Even the central bank is echoing these views.

In his maiden keynote address at an Islamic finance conference in Kuala Lumpur last week, Malaysia’s newly-appointed Bank Negara governor Datuk Muhammad Ibrahim gave a grim reminder to banks of the threats posed by fintech. In particular, Muhammad quoted from a report by McKinsey that 10% to 40% of banking revenue is possibly at risk by 2025 due to innovations outside banking institutions that are able to offer a significant pricing advantage and that technologically-driven applications had spread to nearly every segment of the financial sector, with the number of fintech start-ups having doubled in the last year. “Fintech is challenging the status quo of the financial industry,” he said.

To be fair, Malaysian banks are quick to point out that while fintech does represent a disruption to business, they are embracing the movement, by coming up with their own fintech innovations or by working with fintech startups.

So what is fintech?

In a nutshell, fintech is an economy of companies using technology to improve efficiencies and effectiveness in the financial services industry. To illustrate the offerings of fintech companies, consider the business model of homegrown start-up MoneyMatch, which is modelled after UK-based TransferWise which began in 2011 and today moves US$10bil a year through its platform.

MoneyMatch has created a platform to match individual buyers and sellers of currencies, with the attraction of both sides enjoying better exchange rates than what banks and even money changers offer. The rate used by the MoneyMatch site is the middle rate of the currency exchange spread. So an individual for example, willing to buy US$100 for his travels will be matched with someone wanting to change his US$100 into ringgit. The parties will be matched on this application and then proceed to make their exchange in an agreed location. MoneyMatch is also entering the area of cross border fund transfers.

“For example, someone in Singapore wishing to transfer money to Malaysia can be matched with someone here wishing to send an equal amount of money across the Causeway. Hence the parties can make the respective transfers to local accounts of their choice after an exchange of information. This means the transfer is done minus any cross-border transfer fees,” explains MoneyMatch co-founder Naysan Munusamy, who had spent many years as a forex trader with a number of banks before venturing out to start MoneyMatch.

Peer lending

One key growth area in fintech is peer to peer or P2P lending, online platforms that match borrowers with lenders, bypassing the traditional financial institutions. The business had even attracted big names such as Goldman Sachs. The most notable name in this space is Lending Club, which had launched its service as far back as 2007 and became the US’ largest technology IPO in 2014, raising around US$1bil.

Lending Club claims that its platform – which enables borrowers to get unsecured loans of US$1,000 to US$35,000 – has now helped originate close to US$16bil in loans.

Locally, last month the Securities Commission (SC) launched a regulatory framework for P2P lending, paving the way for small and medium-sized companies to access this new avenue of debt funding. Under SC’s rules though, individuals are not allowed to raise money on the local P2P platforms. Rather it is meant to only fund projects and businesses and a number of safeguards are in place. For example, those behind the operator of the P2P platform need to pass the “fit and proper” test; the rate of financing cannot be more than 18% (as that would be deemed predatory lending) and that the P2P operator has to disclose information related to the issuer and the risk assessment and credit scoring parameters adopted by the operator. There is no authorized P2P platform in Malaysia yet as parties wishing to run such platforms have to submit their application to the SC soon.

In China, P2P lending has virtually exploded. As a recent report by Citibank highlights, “China is past the tipping point”, with fintech companies having similar number of clients as the major banks. The report notes that China is the largest P2P lender in the world, with transactions topping US$66bil, compared with the US with only US$16.6bil.

Regulating fintech

But there are problems. Some unregulated P2P platforms in China had run scams. Others helped fuel an equity roller-coaster by offering funding for stock investments. This led to the Chinese benchmark index rallying more than 150% in the 12 months to last June before abruptly crashing. The Chinese authorities are now cleaning up the P2P sector.

So what are the risks of fintech regulation in Malaysia? And do companies like MoneyMatch need be regulated and licensed?

In an emailed reply to StarBizWeek, Bank Negara says: “Fintech start-ups that engage in activities under the purview of the central bank must comply with existing laws”. Bank Negara explains that regulated businesses include banking, insurance or takaful, money changing, remittance, operating a payment system or issuing payment instruments.

“A fintech company that engages in any activity that falls within the definition of a regulated business must be properly authorised to do so under the relevant laws.

“As an example, collecting deposits via a fintech platform would require approval from Bank Negara.

“A fintech company that is authorised to conduct a regulated business under the laws that Bank Negara administers will be subject to the oversight of Bank Negara pursuant to those laws.”

What this indicates is that Bank Negara is going to regulate fintechs the same way it does banks. But exactly how, it still isn’t clear.

But the good news is this: Bank Negara says it is engaging with firms in this space (and presumably that includes the likes of MoneyMatch), “to understand and where appropriate facilitate their business and provide guidance on aspects on regulation that would be applicable to them.”

Bank Negara adds that it is in the process of formulating a framework that “encourages innovation without undermining financial stability, the integrity of the financial system or the adequate protection for financial consumers.”

The SC has also been pushing for fintech innovation to develop in Malaysia. Last year, Malaysia became the first country in the region to introduce the regulatory framework for equity crowd funding. (While P2P is about companies raising debt, crowd funding is for entrepreneurs to sell equity to investors.)

The SC has also launched aFINity@SC, a fintech community aimed at industry engagement and more recently launched the P2P financing framework, which is aimed at addressing the funding needs of small businesses.

Chin Wei Min, the SC’s new head of innovation and digital strategy, says: “We think fintech can provide solutions to some of the unserved and underserved needs in the capital market.”

Chin adds: “We are also mindful of the risk, fraud and all the pitfalls. We continue to enhance our engagement model. We want to remain very close to the industry.”


Fintech’s hiccups

Some recent developments in the fintech space, however, point to weaknesses in fintech companies. LendingClub, the poster boy company for P2P lending has seen its shares tumble, wiping out about a third of its market value.

This came as it faces scrutiny after its founder and CEO resigned following an investigation into improper loan sales.

The US Treasury has released a report criticising the P2P lending business, recommending it to be more tightly regulated. Some commentators are liking P2P lending to the early days of the subprime mortgage bubble of 2006-07.

It is more likely though that the experiences of fintech in mature markets like China and the US will serve as good guides as to how this business will grow in this part of the world, with the requisite regulations put in place.

And the jury is still out as to whether traditional banks here will lose significant parts of their businesses to fintech start-ups.

Or as one industry observer puts it, fintech is more likely to usurp the business of the shadow banking market here, as some unserved borrowers now have the option to move away from loan sharks or “Ah Longs” and into the crowd funding or P2P platforms. But after that, banks could be next.

By Risen Jayaseelan, Wong Wei-Shen, a Zunaira Saieed The Star


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The human rights record of the human rights defender 2016


http://player.cntv.cn/standard/cntvOutSidePlayer.swfhttp://t.cn/RG38MOa

Chinese documentary reveals US hypocrisy on human rights

A TV documentary highlighting the US’s double standards on human rights issues was aired by China’s State-run CCTV on Sunday. The series, by illustrating the true human rights situation in the US, exposed its hypocrisy over the issue.

Citing media reports both inside and outside the US, the documentary called “the human rights record of global police” revealed how the superpower tramples on US citizen’s human rights. The prisons, for example, are rampant with corruption, torture of prisoners and sexual abuse. Career women are subject to discrimination and sexual harassment at work.

The Federal Bureau of Investigation, or the FBI, forces Internet companies to provide clients’ information without court approval, the documentary said.
The airing of the documentary came days after the US, along with 11 other countries, pointed fingers at China’s human rights record at the UN Human Rights Council.

Since the 1970s, the US State Department has been submitting annual reports on human rights to its Congress, poking its nose into other countries’ human rights records while leaving many of its own problems unaddressed.

The country that prides itself as the “global police” was blamed that what it did is just to serve its own strategic interests.

Ji Hong, s researcher with the Institute of American Studies under the Chinese Academy of Social Sciences, pointed out that the US always holds a sense of superiority. It considers itself a global leader with the best system and human rights record.

The documentary exposed the US’s lack of willingness and capability to improve its record. The documentary also echoed China’s position on human rights that all countries should face up to their own problems and have more dialogues with others to advance the progress of human rights in the international arena.
Based on extensive media reports both inside and outside the U.S., and interviews of many human rights experts from China, the U.S., France, Canada, Russia and Switzerland, the 45-minute TV program revealed the U.S. trampling on American people’s human rights in all walks of life.

In 2015, more than 560,000 people across the United States were homeless, 25 percent of whom were under age; the country’s primary women’s prison Lowell Correctional Institution, where 2,696 convicts are held, is rampant with corruption, torture of prisoners, and sexual abuse; women are subject to sexual harassment and sexual assaults of different forms, and career women subject to discrimination at work, the documentary showed, citing media reports.

Of teenagers aged 15 and above who succumb to injuries in the States, one quarter die in shooting incidents; the Federal Bureau of Investigation forces Internet companies to provide clients’ information without a court approval, according to the documentary.

The United States has been using double standards on practically every human rights-related issue, which is showcased both by its invasion of citizens’ privacy through online surveillance and civilian deaths caused by its drone attacks in Pakistan, Yemen and other countries, it showed.

For a very long time, the United States has been quite condescending, with the belief that it has the best system and human rights record, and as a result, it tends to find fault with other countries, Ji Hong, researcher with the Institute of American Studies under the Chinese Academy of Social Sciences, said in the program.

By Yang Xun (People’s Daily)

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Information is power, overloaded, who and where can we trust?


A global survey gauging trust in society finds that people of a feather really do flock together.

 

THE person you see in the mirror is the most trusted.”

No, that is not a self-help mantra or nostalgia for Michael Jackson’s old hit Man in the Mirror.

Rather, as the 2016 Edelman Trust Barometer reveals, that is a common belief in the world when it comes to trust.

People now are increasingly reliant on a “person like yourself” (rising 6% in trust) more than the “leaders” of society like CEOs, government officials, technical experts or even academic experts, according to global communications firm Edelman’s annual survey that measures trust levels in the world.

Says Edelman Malaysia managing director Robert Kay, it reflects the way people in Malaysia are increasingly sharing and weighing information and opinions online.

“When it comes to information on social networking sites, content sharing sites and online-only information, Malaysians trust friends and families more at 74% compared to a company CEO at 57% or elected officials at 53%,” shares Kay at the launch of the Barometer in Kuala Lumpur last Tuesday.

For its fifth survey in Malaysia, Edelman polled 1,350 Malaysians online from October to November last year.

What some might find surprising is that in today’s celebrity-obsessed world, online personalities rake in only 45% “believers”, while celebrities rank last in their trustworthiness at 30%.

Interestingly, Malaysians’ overall trust in online content, specifically that shared on social media has dipped seven points to 42%.

Kay points to the rampant sharing of misinformation online in the past year as the main reason.

Consequently, search engines hold their lead as the most trusted source for information at 66%, he adds, as people feel they have more control over what they read and see.

The rise in peer-to-peer trust inevitably coincides with the decline in public faith in public institutions and the business world.

Faith in the press among the “informed public”, however, has jumped 13% – from 46% last year to 59% this year.

Asked how much they trust the media – on a scale of zero to nine – to do the right thing, Malaysian citizens say they have a lot more faith in the press than before.

This, says Edelman, puts Malaysia’s more informed citizens’ trust in media at the same level as the elite of the United States.

“Malaysia has one of the biggest rises in media trust among the informed public globally, possibly due to the constant coverage of alleged corruption at 1MDB,” Kay notes, stressing that it is crucial for the media to continue pursuing rigorous, balanced and transparent reporting to maintain credibility.

While the survey did not distinguish between trust in local and international media, the trust in the media in Asia highlights the perceived role of the media in this region, Edelman Asia Pacific, Middle East & Africa CEO David Brain reportedly said in Mumbrella Asia, a discussion site on the region’s media.

“The media – through Western eyes – is expected to keep politicians to account, but in Asian countries such as Singapore and Malaysia, there is ‘a social contract that the role of the media is about nation building’, and less about revealing the truth,” Brain had explained.

In a panel discussion on the Barometer results, The Malaysian Insider CEO Jahabar Sadiq points out that even as trust in business captains and political leaders fell, those who are perceived to be critical and caring of society and are vocal on social media, such as CIMB group chairman Datuk Seri Nazir Razak and former Cabinet minister Tan Sri Rafidah Aziz, are deemed as “trustworthy”.

Comparing Malaysia to Britain and the United States, Umno Youth exco member Shahril Hamdan suggests the dip in public trust towards the government is a natural development as the nation matures.

“As democracy matures, the cynicism level of people toward the government increases.

“Regardless of how the government communicates or performs, people will put less trust in the government and its leaders.”

Maxis Malaysia Head of Consumer Business Dushyanthan Vathiyanathan believes that it is time for public institutions and the business sector to transform and engage more with people.

“People now are interested in knowing what is happening and not in what you tell them.

By Hariati Azizan The Star/Asia News Network

“You have to be transparent with them and inform them of anything and everything. That’s because now they have information and do their checks.”

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Panel Discussion of the 2016 Edelman Trust Barometer for Malaysia

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World Internet Conference 2015 Live from Wuzhen, China


Video: President Xi Jinping delivers keynote speech at WIC

Chinese President Xi Jinping began to deliver a keynote speech at the opening ceremony of the Second World Internet Conference (WIC) held in the river town of Wuzhen in east China’s Zhejiang Province Wednesday.
 

http://player.cntv.cn/standard/cntvOutSidePlayer.swf
http://english.cntv.cn/2015/12/16/VIDE1450236360367156.shtml

Xi calls for: No double standards in cyber security, cyber sovereignty, inclusive Internet community to build shared cyber future

WUZHEN, Zhejiang, Dec. 16 (Xinhua) — Chinese President Xi Jinping on Wednesday called for joint efforts to combat cyber crimes and Internet terrorism, while underscoring that there should not be any double standards in safeguarding cyber security.

“We can not just have security for one or some countries, leaving the rest insecure, still less should one seek the so-called absolute security of itself at the expense of security of others,” Xi said in a keynote speech at the opening ceremony of the Second World Internet Conference held in the river town of Wuzhen, east China’s Zhejiang.

Cyberspace is for all mankind. Its future should be in the hands of all nations and countries should step up communication, broaden consensus and deepen cooperation, the Chinese president said.

Xi Jinping has put forward five proposals to build a community of shared future in cyberspace.

Speaking at a government-organised conference in Wuzhen Town attended by executives of global and Chinese Internet companies, he called for efforts to speed up the building of global cyber infrastructure and promote connectivity.

“China stands ready to work with all parties concerned to come up with more investment and technical support to jointly advance the building of global cyber infrastructure and enable more developing countries and their people to share the development opportunities brought by the Internet,” Xi said.

China’s President Xi Jinping laid out his vision for the internet, calling for respect of different governance models and standardized online security, placing China at the front of debates on online control and sovereignty.

“Each country should join hands and together curb the abuse of information technology, oppose network surveillance and hacking, and fight against a cyberspace arms race,” Xi told China’s second World Internet Conference.

Major Internet players such as Facebook, Microsoft, and China’s Alibaba attended the conference.

Participants hail President Xi’s remarks at WIC

Participants hail President Xi’s remarks at WIC.

 

Commentary: “Shared and governed by all” only way for Internet to get out of “Hobbes Jungle”

BEIJING, Dec. 16 (Xinhua) — Twenty-eight years ago, the founding father of the German Internet Dr. Werner Zorn helped Beijing send its first email to the outside world, which said: “Across the Great Wall we can reach every corner in the world.”

However, today, China, together with other developing countries, still find themselves trapped in a jungle due to an expanding digital divide and a lack of joint governance.

The divide, a technological gap between developing and developed countries on an international scale, is mainly caused by some Western countries’ arrogance and monopoly of information and communication technologies.

For example, the central nervous system of the global Internet with 13 root severs is completely dominated by the West, with the United States having 10 root severs while Britain, Sweden and Japan possess one respectively.

The ever-enlarging gap is detrimental to the stability and sustainable development of the international community, leading to anarchy in cyberspace and to some extent, gradually transforming it into a Hobbes Jungle where the stronger always has a bigger say over the destiny of smaller ones.

In addition, the divide has begun to show side effects like cybercrimes or even cyberterrorism as it accelerates social inequality, which provides fertile ground for extremism.

Like China, the United States is also a victim of cyberanarchy and such side effects. The recent shooting rampage in southern California, where two attackers radicalized by fanatical propaganda of the Islamic State (IS) on the Internet opened fire on innocent people, has sent a strong signal to Uncle Sam and its Western allies that they need to share and govern cyberspace with others.

After all, the Law of Jungle is relentlessly fair to everyone. In the long run, it neither favors the United States for its preponderance nor discriminates against the IS for its extremism.

In this sense, the opening of the Second World Internet Conference on Wednesday in China’s Wuzhen with the theme of “an interconnected world shared and governed by all — building a community of common future in cyberspace”, is a boon to nations worldwide threatened by the Law of Jungle.

If they want to get out of the jungle, they should bear three things in mind.

First, teamwork. Treat each other with respect and equality. The jungle is too enormous for egoism. Selfishness and hegemony worship will only ruin the mission. So the hefty ones like the United States should learn to cooperate if they want to defeat common enemies like cybercrimes.

Second, sharing. Don’t let the smaller ones be knocked out. Help them grow. Otherwise, they will become accomplices of the jungle. The Western countries who enjoy early advantages of information technology should loosen their restriction on technology transfers to developing countries.

Thirdly, joint governance. Never seek hegemony in decision-making. There are many paths to leave the jungle and the one you choose may not suit others. The governance of cyberspace needs the participation of all parties and all voices should be heard before a final decision is made.

By Tian Dongdong Xinhua

Cyber security depends on US cooperation

US President Barack Obama delivers remarks next to Secretary of Homeland Security Jeh Johnson (L) at the National Cybersecurity and Communications Integration Center in Arlington, Virginia, January 13, 2015. [Photo/Agencies]

China’s attempts to cooperate with the United States to safeguard the strategic stability of cyberspace have been welcomed, as the Chinese mainland and Hong Kong have suffered a series of high-profile cyber attacks this year, according to the latest PricewaterhouseCoopers Global State of Information Security Survey. The average financial loss caused by cyber-crimes in the region, says the report, rose 10 percent year-on-year to $2.63 million, compared with a 5 percent decline globally.

In cooperating to safeguard cyberspace, Beijing and Washington could seek the Internet equivalent of the code of safe conduct agreed between their militaries to avoid naval and air encounters, which has helped manage several bilateral disputes.

The two countries should first try their best to not point the finger at each other in case a conflict over cyber security emerges. The latest round of tensions in cyberspace started in early 2013, when American private security company Mandiant released a report, “APT1: Exposing One of China’s Cyber Espionage Units”, accusing the Chinese military of stealing US intellectual property.

Such a hysterical attitude, to a point, reflects the US’ anxiety over China’s impressive economic growth in the recent years. It is, therefore, important that the US seek to adjust its strategic perception of China and accept that the power gap between them is closing.

Beijing, on its part, ought to make more efforts to make its ideas clear to acquire a bigger say in global cyber-security affairs. Besides, neither country, especially the US, should make a habit of “making enemies” by taking irresponsible actions, even for the sake of national security.

True, most cutting-edge technologies in the age of the Internet can be lawfully and strategically used to gather military intelligence and keep cyber attacks at bay. But highly politicized discussions and operations, which used to be kept secret, can now be made public by the media today. So the challenge is to keep such details confidential.

In regard to China-US cyber cooperation, the major problem lies in Washington’s attempts to create enemies for political motives. Tactics such as exaggerating the perils of the so-called Chinese cyber-attacks and intimidating the American public and legislature with some selectively chosen materials, for example, have been routinely used by the US cyber-security authorities to create more room for political maneuverings and get more military budget.

Such tricks may have eased some of their pressure to safeguard homeland security, but they have come at the cost of cyberspace stability which China and the US both need. They have also failed to protect the two countries’ national interests, which need them to closely coordinate rather than oppose or accuse each other.

Washington should also be careful about its military industry, which is basically bolstered by certain security enterprises and departments trying to abduct the national security policy.

For some US security companies, gathering evidence on the imaginary cyber-attacks from China to help thwart them in the future can guarantee the consistent increase in their market values. Likewise, relevant governmental organs also tend to overstate the cyber security issue to increase their budget and influence security affairs.

China and the US should not let such parochial and hawkish mindset affect Washington’s cyber-security strategy, because neither country can emerge as winner in a cyber war; in fact, such a war will cause huge damage to the world. As a responsible major power, the US is obliged to push forward the China-US strategic dialogue on cyber security to make global cyberspace more stable, rather than using double standard to defend its controversial strategy and tactics, and condemn China for absurd reasons.

By Shen Yi (China Daily)
The author is an associate professor in the Department of International Politics at Fudan University in Shanghai.

China key to turning cyberspace truly global

A visitor tries out wearable device at the Light of the Internet Expo in Wuzhen, Zhejiang province, Dec 14, 2015. [Photo /chinadaily.com.cn]

China holds a pivotal role in the Internet. It had more than 650 million Internet users by the end of last year and it is the largest and fastest growing information and communications technology consumer market in the world. The Chinese ICT sector is currently valued at €433 billion ($477.472 billion) and it is growing at an annual average rate of 7 percent, the fastest in the world. The country has made tremendous progress in Internet development in the past decade having become the most active e-commerce market in the world.

However, if we look at the distribution of the world’s ICT sector, China does not rank first. It ranks third. In 2012 China accounted for 13 percent of the world’s ICT, behind the United States (32 percent) and the European Union (23 percent). In the same year, the value of the EU’s ICT sector exceeded €516 billion.

These figures show the tremendous growth opportunities of China’s ICT industry. Obviously, the strategy should not be just to copy leading brands or seek to produce “Chinese” products. The ICT industry is not the car industry. It doesn’t just produce a series of final products; it produces interconnected systems too. In the ICT industry, we cannot innovate in isolation. Each single new product or system needs to be compatible — to interoperate — with those of upstream service providers and of the applications that users want.

Even more than in other globalized industries, the keyword in ICT is specialization. In other words, China should not promote investments in areas where other countries or economies are strong, but seek cooperation instead. In this regard, an analysis of the ICT statistics of China and the EU show how complementary China’s and Europe’s ICT sectors are.

China is very strong in manufacturing — more than 50 percent of the ICT sector comprises the manufacturing of telecom equipment, consumer electronics and electronic components. The EU instead dominates in high-end innovative services and IT applications, which together account for more than 55 percent of regional ICT sector.

The EU is a major technology hub and it can provide a key contribution for the growth of new ICT markets in China if adequate cooperation agreements are timely discussed and concluded, for example, in niche markets like the Internet of Things, smart cities, big data, e-health, cloud services, which will drive growth in the ICT industry in the next decade.

But opportunities for cooperation also exist in the “traditional” telecom segment. China and the EU are home to the world’s major telecom vendors. Synergies in 5G development are clear, especially following the signing of the EU-China Agreement on 5G last September in Beijing.

The EU-China political and economic relationship is very developed, though there are some challenges, which we need to overcome to improve cooperation in the digital field, such as the lack of mutual understanding of the reciprocal markets, divergences in the approach to cyber security and, related to it, a lack of global Internet confidence. Moreover there are substantial regulatory divergences between the Chinese and EU rules, for example, on consumer protection and data protection.

The EU has just started its ambitious “Digital Single Market” strategy, which should in the coming years reduce barriers to doing business across the EU’s internal borders, provide EU companies scale and resources to grow and make the EU an even more attractive location for global companies.

The EU’s Digital Single Market strategy will offer substantial investment opportunities to Chinese ICT companies.

However, in the global Internet ecosystem, the concept of attracting investment by making one’s investment conditions more attractive than those in competing economies is outdated. We need a global single, open cyberspace.

The second World Internet Conference in Wuzhen, Zhejiang province, could be the starting point of discussions between China and the EU, for instance, on how to facilitate online purchases of digital contents and to promote affordable high quality parcel delivery. Obviously, at a later stage anecdotal evidence should be complemented thorough academic study of respective Internet regulations in China and the EU.

By Luigi Gambardella (China Daily)
The author is president of ChinaEU, a non-profit platform aiming to boost bilateral digital cooperation.

Related:

Wuzhen showcases China’s Net prosperity

If we all apply the rules of the US, many societies could not afford the consequences.
Source: Global Times | 2015-12-16 0:48:01


Aerial view of Wuzhen, venue for World Internet Conference

Wuzhen World Internet Conference 2015


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