Teenager arrested in Heartbleed hacking; Bank of America reports losses over legal fees

computer security
Teenager arrested in Heartbleed hacking

A Canadian cyber-crime unit has arrested and charged a ­19-year-old Ontario man for allegedly hacking into the country’s tax agency using the Heartbleed Internet security bug.

The suspect, Stephen Arthuro Solis-Reyes, was arrested Tuesday at his home “without incident,” Royal Canadian Mounted Police officials said in a news release. Officials found and seized computer equipment from Solis-Reyes’s home.

Earlier this week, the Canada Revenue Agency said an attacker using Heartbleed stole 900 Social Security numbers. It was the first known case of a hacker taking advantage of the security flaw for malicious purposes.

The vulnerability stems from a fault in OpenSSL, a widely used security protocol that encrypts Internet traffic for vast numbers of Web sites.

— Brian Fung

earnings
Bank of America reports losses

Bank of America reported an unexpected first-quarter loss on Wednesday after it took a $6 billion charge to cover litigation expenses, a figure that far exceeded the legal settlements the No. 2 U.S. bank announced recently.

Revenue improved in many of the bank’s major businesses, but the results were overshadowed by its bigger-than-expected legal costs. The bank had previously said that a settlement would cut into its earnings by $3.7 billion before taxes.

The extra litigation expenses came from setting aside money to cover future legal settlements tied to previously disclosed mortgage-related matters, Chief Financial Officer Bruce Thompson told reporters. Still, the bank’s setting aside more money does not mean a settlement is imminent, Thompson told analysts on a separate conference call.

Bank of America’s quarterly loss, its first since the second quarter of 2011, underscores how much the bank is still suffering from its disastrous acquisition in 2008 of Countrywide Financial at the height of the financial crisis. That deal was a key factor in more than $50 billion of legal expenses the bank has logged since the financial crisis.

In March, Bank of America agreed to a $9.3 billion settlement to resolve claims that Countrywide and other Bank of America entities overstated the quality of the mortgages they sold to Fannie Mae and Freddie Mac between 2005 and 2007.

— Reuters

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