Biden Administration Announces Cybersecurity Labeling Program for Smart Devices

FILE PHOTO: Jessica Rosenworcel testifies during an oversight hearing held by the US Senate Commerce, Science, and Transportation Committee to examine the Federal Communications Commission (FCC), in Washington, US June 24, 2020.   Alex Wong/Pool via REUTERS/File Photo
FILE PHOTO: Jessica Rosenworcel testifies during an oversight hearing held by the US Senate Commerce, Science, and Transportation Committee to examine the Federal Communications Commission (FCC), in Washington, US June 24, 2020. Alex Wong/Pool via REUTERS/File Photo
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Biden Administration Announces Cybersecurity Labeling Program for Smart Devices

FILE PHOTO: Jessica Rosenworcel testifies during an oversight hearing held by the US Senate Commerce, Science, and Transportation Committee to examine the Federal Communications Commission (FCC), in Washington, US June 24, 2020.   Alex Wong/Pool via REUTERS/File Photo
FILE PHOTO: Jessica Rosenworcel testifies during an oversight hearing held by the US Senate Commerce, Science, and Transportation Committee to examine the Federal Communications Commission (FCC), in Washington, US June 24, 2020. Alex Wong/Pool via REUTERS/File Photo

The Biden administration and major consumer technology players on Tuesday launched an effort to put a nationwide cybersecurity certification and labeling program in place to help consumers choose smart devices that are less vulnerable to hacking.

Officials likened the new US Cyber Trust Mark initiative — to be overseen by the Federal Communications Commission, with industry participation voluntary — to the Energy Star program, which rates appliances’ energy efficiency.

“It will allow Americans to confidently identify which internet- and Bluetooth-connected devices are cybersecure,” deputy national security adviser Anne Neuberger told reporters in a pre-announcement briefing.

According to The Associated Press, she listed Amazon, Best Buy, Google, Samsung and Logitech as among industry participants.

Devices including baby monitors, home security cameras, fitness trackers, TVs, refrigerators and smart climate control systems that meet the US government’s cybersecurity requirements will bear the “Cyber Trust” label as early as next year, officials said.

FCC Chairwoman Jessica Rosenworcel said the mark will give consumers “peace of mind” and benefit manufacturers, whose products would need to adhere to criteria set by the National Institute of Standards and Technology to qualify.

The FCC was launching a rule-making process to set the standards and seek public comment. Besides carrying logos, participating devices would have QR codes that could be scanned for updated security information.
In a statement, the Consumer Technology Association said consumers could expect to see certification-ready products at the industry’s annual January show, CES 2024, once the FCC adopts final rules. A senior Biden administration official said it was expected that products that qualify for the logo would undergo an annual re-certification.

The Cyber Trust initiative was first announced in October following a meeting between White House and tech industry representatives.

The proliferation of so-called smart — or Internet of Things — devices has coincided with growing cybercrime in which one insecure IoT device can often give a cyberintruder a dangerous foothold on a home network.

An April report from the cybersecurity firm Bitdefender and networking equipment company NetGear, based on their monitoring of smart homes, found that the most vulnerable IoT devices in 2022 were, far and away, smart TVs, followed by smart plugs, routers and digital video recorders.

Providers of numerous smart home devices often don’t update and patch software fast enough to thwart newly emerging malware threats.



All Eyes on AI to Drive Big Tech Earnings

OpenAI vs Microsoft- shutterstock
OpenAI vs Microsoft- shutterstock
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All Eyes on AI to Drive Big Tech Earnings

OpenAI vs Microsoft- shutterstock
OpenAI vs Microsoft- shutterstock

Over the next two weeks, the quarterly results of Big Tech giants will offer a glimpse on the bankability of artificial intelligence and whether the major investments AI requires are sustainable for the long haul.
Analysts at Wedbush Securities, one of Wall Street’s biggest believers in AI’s potential, expect "growth and earnings to accelerate with the AI revolution and the wave of transformation" it is causing.
The market generally agrees with this rosy AI narrative. Analysts forecast double-digit growth for heavyweights Microsoft and Google, in contrast to Apple, a latecomer to the AI party, with only three percent growth expected.
The iPhone maker, which releases its results on August 1, unveiled its new Apple Intelligence system only last month and plans to roll it out gradually over the next months, and only on the latest models.
CFRA analyst Angelo Zino believes that the impact of these new features will not be felt until the iPhone 16 launches in September, the first to feature the new AI powers built-in across all options.
But he expects Apple's upcoming earnings to show improvement in China sales, a black spot since last year.
"Apple’s forecasts for the current quarter will be important" in assessing the company's momentum, said Zino.
But "if there's one that we were maybe a little bit more concerned about, versus the others, it would be Meta," he said.
He pointed out that Mark Zuckerberg's company raised its investment projections last April as it devoted a few billion dollars more on the chips, servers and data centers needed to develop generative AI.
CFRA expects Meta's growth to decelerate through the end of the year. Combined with the expected increase in spending on AI, that should put earnings under pressure.
As for the earnings of cloud giants Microsoft (July 30) and Amazon (August 1), "we expect them to continue to report very good results, in line with or better than market expectations," said Zino.
'Crucial' bet
Microsoft is among the best positioned to monetize generative AI, having moved the fastest to implement it across all its products, and pouring $13 billion into OpenAI, the startup stalwart behind ChatGPT.
Winning the big bet on AI is "crucial" for the group, said Jeremy Goldman of Emarketer, "but the market is willing to give them a level of patience."
The AI frenzy has helped Microsoft's cloud computing business grow in the double digits, something that analysts said could be hard to sustain.
"This type of growth cannot hold forever, but the synergies between cloud and AI make it more likely that Microsoft holds onto reliable cloud growth for some time to come," Goldman said.
As for Amazon, "investors will want to see that the reacceleration of growth over the first quarter wasn’t a one-off" at AWS, the company’s world-leading cloud business, said Matt Britzman of Hargreaves Lansdown.
Since AWS leads "in everything data-related, it should be well placed to capture a huge chunk of the demand coming from the AI wave," he added.

The picture "might be a little less clear" for Google parent Alphabet, which will be the first to publish results on Tuesday, "because of their search business" online, warned Zino.
"Skepticism around AI Overviews," introduced by Google in mid-May, "is certainly justified," said Emarketer analyst Evelyn Mitchell-Wolf.
This new feature, which offers a written text at the top of results in a Google search, ahead of the traditional links to sites, got off to a rocky start.
Internet users were quick to report strange, or potentially dangerous, answers proposed by the feature that had been touted by Google executives as the future direction of search.
According to data from BrightEdge, relayed by Search Engine Land, the number of searches presenting a result generated by AI Overviews has plummeted in recent weeks as Google shies away from the feature.
Still, many are concerned about the evolution of advertising across the internet if Google pushes on with the Overviews model, which reduces the necessity of clicking into links. Content creators, primarily the media, fear a collapse in revenues.
But for Emarketer's Mitchell-Wolf, "as long as Google maintains its status as the default search engine across most smartphones and major browsers, it will continue to be the top destination for search, and the top destination for search ad spending."