Thursday, March 29, 2012

News Corp. faces new hacking allegations involving pay TV

A software division of News Corp., is accused of knocking off rival pay-TV services by hacking their smartcodes and enabling the public to view the competitors transmissions for free. One rival may have driven out of business as a result.

As News Corp. to fend off phone-hacking allegations in Britain, Rupert Murdoch's international conglomerate is facing new hacking allegations in Australia.

According to the Australian Financial Review, e-mails and internal documents show that a "secret unit" inside News Corp. committed acts of corporate espionage against rival pay-TV services that may have resulted in the collapse of one company.

As part of the proof presented by the paper, editors therehave posted to the Web more than 14,400 internal documents belonging to News Corp.

If the allegations prove true, News Corp., would face a second significant scandal. The company's reputation has already been tarnished when it was revealed that reporters at News Corp.-owned News of The World hacked into the voice mail of scores of public servants, celebrities and Milly Dowler, a teenage girl who had been kidnapped and murdered.

The more allegations involves a unit within the News Corp.-owned NDS, which is accused of hiring hackers to crack smartcard codes issued by rivals of News Corp's pay-TV service. The hackers allegedly then distributed the codes over the Web so viewers could access their competitors' transmissions without paying.

One company was said to have been driven out of business as a result. News Corp and NDS, which was acquired by Cisco recently, have issued denials of wrongdoing. The paper reported that Australia's federal police have launched an investigation.

In covering digital media for CNET News, Greg Sandoval has broken stories on Apple, Microsoft, YouTube, The Pirate Bay, and the digital efforts of the major music labels and Hollywood studios. Before that, in his first tour with CNET News, he covered e-commerce during the dot-com boom and bust. A dogged investigative reporter, he began his journalism career at the Los Angeles Times and followed that with a short TV stint at The E! True Hollywood Story. Later, he spent three years as a staff writer for The Washington Post. Greg is an alumnus of USC and was raised in Chatsworth, California, which is distinguishable only for being the porn capital of the world.

View the original article here

Source From CNET

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