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Beijing Adds Weapons to South China Sea Islands

A woman walks past a billboard featuring an image of an island in South China Sea on display with Chinese words that read: "South China Sea, our beautiful motherland, we won't let go an inch" in Weifang in east China's Shandong province. Photo: Associated Press

BEIJING — China appears to have installed anti-aircraft and anti-missile weapons on its man-made islands in the strategically vital South China Sea, a U.S. security think tank says, upping the stakes in what many see as a potential Asian powder keg.

The Center for Strategic and International Studies said in a report late Wednesday that the anti-aircraft guns and close-in weapons systems designed to guard against missile attack have been placed on all seven of China’s newly created islands.

The outposts were built in recent years over objections by the U.S. and rival claimants by piling sand on top of coral reefs, followed by the construction of military grade 3,000-meter (10,000-foot) airstrips, barracks, lighthouses, radar stations and other infrastructure.

CSIS based its conclusions on satellite images taken in mid-to-late November and published on the website of its Asia Maritime Transparency Initiative.

In a statement, China’s Defense Ministry repeated that development on the islands was mainly for civilian purposes, but added that defensive measures were “appropriate and legal.”

“For example, were someone to be threatening you with armed force outside your front door, would you not get ready even a slingshot?” the ministry statement said.

The Philippines, which has troops and villagers stationed on some reefs and islands near China’s new artificial islands, expressed concern despite recently improving relations with China.

“If true, it is a big concern for us and the international community who uses the South China Sea lanes for trade,” Defense Secretary Delfin Lorenzana said. “It would mean that the Chinese are militarizing the area, which is not good.”

China’s new island armaments “show that Beijing is serious about defense of its artificial islands in case of an armed contingency in the South China Sea,” CSIS experts wrote in the report.

“Among other things, they would be the last line of defense against cruise missiles launched by the United States or others against these soon-to-be-operational air bases,” the report said.

Beijing says the islands are intended to boost maritime safety in the region while downplaying their military utility. They also mark China’s claim to ownership of practically the entire South China Sea.

Taiwan, Vietnam, the Philippines, Malaysia and Brunei also claim territory in the waterway through which an estimated USD $5 trillion in global trade passes each year, while the U.S. Navy insists on its right to operate throughout the area, including in waters close to China’s new outposts. China has strongly criticized such missions, known as freedom of navigation operations.

The U.S. has committed to beefing up its military presence in the area, although new uncertainty has been introduced by incoming president Donald Trump, who broke long-established diplomatic protocol by talking on the phone earlier this month with the president of China’s longtime rival Taiwan.

Trump has called for a reconsideration of its commitments to its Asian allies, including Japan and South Korea, while simultaneously criticizing Chinese trade policy toward the U.S. along with its new territorial assertiveness. He also referred to China’s man-made islands in a tweet earlier this month, saying Beijing didn’t ask the U.S. if it was OK to “build a massive military complex in the South China Sea.”

“The timing is significant in that these first clear images come amid Trump’s challenging comments about China and its South China Sea fortresses,” said Alexander Neill, a senior fellow for Asia-Pacific security for the International Institute for Strategic Studies based in Singapore.

Chinese President Xi Jinping said on a visit to the U.S. last year that “China does not intend to pursue militarization” of the area, prompting some foreign experts to accuse China of going back on its word with its new deployments.

Despite that, China considers it vital to equip the islands with defensive means given their distance  1,600 kilometers (1,000 miles)  from the Chinese mainland, together with the nearby presence of forces from rival claimants such as Vietnam, said Yue Gang, a retired colonel and military analyst.

“As the matter of fact, these occupied islands have been armed and fortified for a long time,” Yue said. “No country in the world would only commit to providing civil services without considering its own security safety.”

Looking forward, the nature of China’s new military deployments will likely be calibrated in response to moves taken by the U.S., said the IISS’s Neill.

“China will argue that they are entitled to place whatever they want there in reaction to U.S. actions,” Neill said. “The big question is whether Trump will embark on a more strident or discordant policy in the South China Sea.”

Story: Christopher Bodeen

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Thai Fishing Fleets Roam Far to Break Rules: Greenpeace

A Thai navy officer on Dec. 9 inspecting a fishing boat in the waters off the coast of Samut Sakhon province. Photo: Dake Kang / Associated Press

BANGKOK — The six men lay in red body bags, lined up on a concrete dock. The first died almost three weeks before his ship reached Thailand; the last almost made it alive but died the day before the ship docked.

They were Thai and Cambodian fishermen who had succumbed to beriberi, a disease better known for striking sailors more than a century ago. But their deaths, says a Greenpeace report released Thursday, are part of an all-too modern scourge — Thai fishing fleets operating thousands of kilometers (miles) from home in unregulated waters to dodge government oversight over illegal fishing and onboard human rights abuses.

Thailand has responded to problems in the industry by grounding its overseas fleet and ordering tracking equipment installed on the vessels.

The two ships carrying the dead had left Thailand in the first few months of 2015, according to an earlier Thai government report. They parked themselves off the coast of Madagascar, where they stayed for months. They transferred their catch to “reefers,” refrigerated cargo ships, to avoid government regulators while still getting their fish to market.

Supply ships brought the fishermen fresh food once every couple of months. But they didn’t come often enough.

An inspection found “there was no fresh food,” Thai government investigators concluded after searching one ship, the Somboon 19. “The rest of the kitchen had eggs, vegetable oil, and white rice. No fresh vegetables or meat.”

The ships ran out of fresh food weeks after each delivery, forcing the crew to subsist on fish and rice — a diet deficient in Vitamin B, the root cause of beriberi. Many began to fall ill. Subject to hours of backbreaking labor, some of the fishermen began finding it hard to breathe. Their legs swelled and their bodies went limp.

Though one ship returned to Thailand as soon as a fisherman died, the second one dumped the body in the freezer of the cargo hold and kept fishing, only returning when the navy called them home, said Cmdr. Piyanan Kaewmanee, head of a Thai navy department combating illegal fishing.

“It was gross,” he told The Associated Press in a recent interview.

Crew from a fishing boat show their identity cards to Thai navy officers during a search of their boat in the waters off the coast of Samut Sakhon province. Photo: Dake Kang / Associated Press
Crew from a fishing boat show their identity cards to Thai navy officers during a search of their boat in the waters off the coast of Samut Sakhon province. Photo: Dake Kang / Associated Press

The arrival of the bodies on Thai shores in January 2016 kicked up a media frenzy. Newspapers reported the fishermen had died from vitamin deficiencies.

The story of how these vessels ended up so far from home in the first place starts with Indonesia and Papua New Guinea. For decades, Thai vessels fished in their waters, splitting profits in exchange for fishing licenses.

But following an AP report last year revealing that Thai fishing boats enslaved migrants from Myanmar, Cambodia and other neighboring countries, Indonesia shut off their waters to fishing vessels from foreign countries. Papua New Guinea followed suit soon after.

Deprived of their usual hunting ground, the boats set sail for seas far from the prying eyes of governments.

“Some of these problems we’ve seen in Indonesia … are just being exported and happening somewhere else,” says Mark Dia, an oceans activist and manager at Greenpeace. “Nobody really knows what happens on these vessels.”

The Greenpeace report names some of the worst fishing boat operators, who they say send fish into the supply chain of major retailers of imitation crab and cat food. The AP has not independently verified those claims.

Greenpeace said satellite data it obtained tracked the ships as they moved toward the Saya de Malha Bank, an ecologically rich breeding ground for whales that Mauritius claims is part of its exclusive economic zone. However, it’s effectively unregulated, officials and experts say.

“To send a patrol boat to inspect them at sea is hugely expensive,” Cmdr. Piyanan said. “If it’s not urgent, it’s a rarity that we’d send a patrol boat.”

After Thailand received a “yellow card” from the European Union in April 2015, Prime Minister Prayuth Chan-ocha created the Command Center for Combating Illegal Fishing.

In December 2015, the Thai navy sent a task force to inspect 74 Thai overseas fishing vessels to enforce new permit regulations. A navy report recorded dozens of vessels that had violated labor permits and overstayed their licenses, prompting them to recall their entire overseas fishing fleet back to Thailand.

After these abuses were uncovered, the Thai navy grounded the overseas fleet and prosecuted some of the operators. Seventy of the vessels are now docked in a port an hour away from Bangkok and are being outfitted with new GPS tracking equipment; they will be allowed to sail again next year.

Navy officials say they are exploring cheaper alternatives to regular in-person inspections, including hiring observers, installing on-board cameras and seeking assistance from countries such as Somalia, Djibouti, and Madagascar. New regulations stipulate that the vessels must return to Thailand every year, instead of roaming the high seas indefinitely.

Greenpeace says more needed to be done, particularly a industry ban on transshipments, the practice of using reefers as intermediaries.

Cmdr. Piyanan said regulation will always be challenging: “Anyone that is greedy enough, they can come up with things to avoid detection to avoid control from the government.”

Story: Dake Kang

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Rubber Farmer Shot Dead in Songkhla

A rubber plantation in Thailand in an undated file photo.

BANGKOK — Police say a rubber farmer has been shot dead in the southern province of Songkhla, in the latest attack in a region that has been in the grip of an ethnic Malay Muslim insurgency for over a decade.

Police say Dech Promjan was sharpening his knife on his porch Thursday when two people arrived by motorcycle. They quoted Dech’s wife as saying that the man riding at the back got off, pulled out a gun and fired three bullets into her husband’s chest.

Insurgents in the Muslim-majority south began their bid for greater autonomy in 2004. Over 6,700 deaths have been tallied since then.

In separate incidents this week, insurgents detonated three bombs and shot at electricians fixing roadside cables, injuring 15 people in all.

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Courageous Cop Trades Uniform for Dress to Bust Muggers

Police Senior Sgt. Maj. Vivek Kamolvibul on duty. Photos: Courtesy

NONTHABURI — Police in northern metro Bangkok had a problem. A gang was mugging women in the area, and they just couldn’t catch them.

The station chief didn’t want to send out women officers late at night – it won’t win him progressive points, but he thought they would be vulnerable – but he did dream up a creative solution.

“We decided to develop a plan, a method to capture the alleged offenders because there were four muggings in 24 hours,” Col. Kittisak Tiangkamol of Rattanathibet police said Thursday.

His methodology, to Kittisak, was practical and simple: Dress Senior Sgt. Maj. Vivek Kamolvibul up as a woman and send him out to catch the bad guys.

“I chose Vivek because he’s a clever officer. He’s a master’s graduate, too. And everyone was in agreement with choosing him because he has the whitest skin at the precinct, and he also is a man without leg hair.”

Beginning Friday, Vivek donned a black wig, casual black sundress and a pink, chain strap purse.

He drove around the Rattanathibet area from 4am to 6am every morning and stood at various bus stops in an attempt to bait the muggers.

“Tuesday in the early morning, I spotted them about to commit another crime,” Vivek said, but the suspects were driven off by an approaching taxi – but not before he noted their license plate.

He ran the plate and found an address. On Wednesday, police moved in and arrested the alleged offenders: Thanawat Krutsorn, 18, and a 17-year-old minor. Police said they would rob victims in Nonthaburi, usually along bus routes.

The string of muggings allegedly yielded the teens petty cash and a handful of junk from unsuspecting women this month, such as a laptop in front of Every Mall, a camera and 16 baht from Soi Rattanathibet 18, a mobile phone and 100 baht from in front of Central Plaza Rattanathibet. Saturday might have been their biggest payoff, when they made off with a stainless steel necklace, 600 baht, an ATM card and acoustic guitar from a victim in front of the Esplanade Rattanathibet shopping mall.

The are also accused of stabbing a woman Dec. 8 near the Nonthaburi City Pillar Shrine who had nothing they could steal.

Vivek said he had the right qualities for the job.

“Well, the chief chose me because I’m really the only guy who can pass off as a woman,” he said. “I’ve got light skin, no leg hair, and slim legs.”

And he’s not ashamed if it helps him do the job.

“I’m always getting teased at the precinct,” he said, laughing. “But if another case comes up where I have to dress as a woman, I’ll probably do it. I’m still a man.”

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Rape Suspect Hunted Khaosan Road for Drunk Women

Ekburut Ritrakkhaphan, 32, seen in an image from a security camera with an Australian woman on his motorcycle traveling from the Khok Wua junction near Khaosan Road to an abandoned building where she said she was assaulted in the early hours of Dec. 5.

BANGKOK — A man accused of sexually assaulting an Australian tourist was arrested early Thursday morning.

Ekburut Ritrakkhaphan was captured in the northeastern province of Sakon Nakhon where police said he fled from Bangkok after he emerged as a suspect in the rape of a 23-year-old Australian woman earlier this month.

Police said the 32-year-old motorcycle taxi driver claims they had consensual sex.

He was arrested 10 days after the woman walked into a police station where she said she had been taken by a tuk-tuk driver to a deserted building in western Bangkok in the early hours of Dec. 5 and assaulted by the man and his friend. Police initially cast doubt on her claim, citing her heavily intoxicated state, which prompted extensive and unsympathetic media coverage.

Read: Police Confirm Australian Tourist Raped, Issue Arrest Warrant

After the news got out, police were pressured to look into the case, and police chief Sanit Mahathavorn instructed officers to fully investigate it.

They eventually issued an arrest warrant for Ekburut on Tuesday after identifying him through security camera footage. That same day the results of a medical examination confirmed the woman was assaulted.

Ekburut told police he often rides his motorcycle to Khaosan Road late at night because he knows it is a good place to find inebriated women getting out of the bars after late-night drinking sessions. He said he usually finds women to take from there to have sex with.

The motorcycle taxi driver said he saw the Australian woman, who appeared to be drunk, near the Khok Wua junction, so he approached her. He said she got onto his motorcycle of her own will, as he always does when he’s hunting for drunk women.

Ekburut said he abandoned her at the empty building at her request, claiming she did not want to go back to where she was staying, despite the dawning sun.

Ekburut was being questioned Thursday afternoon at the Bangkok Metropolitan Police Bureau.

Related stories:

Police Confirm Australian Tourist Raped, Issue Arrest Warrant

Police Weigh Australian Tourist’s Tuk-Tuk Rape Allegation

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Another ‘Indy’ Night Market Opens Sunday in Thon Buri

Photo: Indy Market / Facebook

BANGKOK — The year couldn’t end without another hipster night market joining the trend.

On Sunday Indy Market will open within Dao Khanong to welcome the cool breezy season.

Indy Market promises around 500 stalls of food, drink, crafts, clothes and more on the Thon Buri side of the river in the Dao Khanong area.

While the name suggests a place for auto racing fans, it may refer to the massive parking lot – 400 parking spaces – available for commuting shoppers.

It’s hosted by the same people behind the one which used to take place at Platinum Fashion Mall in the Pratunam area.

Indy Market will be open from 4pm until 11pm daily. It’s located on Soi Suksawat 2, and the closest public transportation option is the Dao Khanong Pier. But really, just drive or taxi there.

Photo: Indy Market / Facebook
Photo: Indy Market / Facebook

Related stories:

Neon Night Market Opens Thursday

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Have a Very Thonglor Xmas at Festive Weekend Flea Market

Photo: 953 Community Mall / Facebook

BANGKOK — What to do for a chill Christmas weekend? Consider a three-day flea market in Thonglor with everything from food, drink and music to poetry, mimes and handmade crafts.

To celebrate the holiday season’s cool weather, Winter Vibes Market will feature bands and solo artists live on stage for three days including acoustic guitarist-singer Thee Chaiyadej, indie-folk trio My life as Ali Thomas, folk-rockin’ Greasy Cafe, and alternative pop Moving and Cut.

Singer “Tul” from Apartment Khun Pa band and actor Peron Yasu will read some poetry and Japanese artist Yano Kazuki will break it down in pantomime.

Winter Vibes Market will take place Dec. 23 through Dec. 25 at the 9:53 Community Mall.

Admission to the market is free. Tickets to the live shows will be available at the door for 100 baht. The community mall is located where Soi Sukhumvit Soi 53 and Thonglor Soi 9 meet.

Photo: Jongrak MC / Facebook
Photo: Jongrak MC / Facebook
Photo: Black Beer’D / Facebook
Photo: Black Beer’D / Facebook

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Bangkok Bank Strikes Back at Fox Networks Over 2.5B Baht Suit

BANGKOK Bangkok Bank hit back at a multinational media corporation’s legal complaint Wednesday, saying it did not default on guarantees of a multi-billion baht licensing deal because it was Fox Networks Group Asia that was in breach of contract.

In a statement released Wednesday night, Thailand’s largest commercial bank said it did not make good on the 2.5 billion baht licensing deal for Thai media companies GMM Grammy and CTH because Fox was at fault.

“CTH has now instructed Bangkok Bank not to make payment as demanded because Fox Networks Group Asia was at fault for breaching the contract,” said the statement from Bangkok Bank’s public relations team.

Read: Fox Sues Bangkok Bank Over 2.5B Baht Licensing Deal

Apart from claiming Fox violated contract terms, it did not go into further detail, citing  the lawsuits filed by Fox against CTH in Hong Kong, and GMM and the bank in Bangkok.

Decha Tulanun, vice president of Bangkok Bank, was not available for comment on Thursday.

Fox announced it had filed suit against the bank on Wednesday afternoon for allegedly breaching contracts under the terms of a 2013 licensing agreement the network made with domestic media companies GMM and CTH to license its programming.

Additional reporting by Asaree Thaitrakulpanich

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Fox Sues Bangkok Bank Over 2.5B Baht Licensing Deal

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Japan to Allow Casino Gambling at ‘Integrated Resorts’

Lawmakers stand to approve a law on "integrated resorts" Thursday at the parliament's lower house in Tokyo. Photo: Yoshinobu Shimizu / Associated Press

TOKYO — Japan’s parliament approved Thursday a law on “integrated resorts” that is the first major hurdle in allowing casinos to set up shop in the wealthy nation.

Supporters of the casino legislation say it would enhance Japan’s allure as a tourism destination and draw in wealthier travelers. Big players in the industry welcomed the news, with Wynn Resorts saying it was “extremely pleased” by its passage.

Opponents object to an expansion of legalized gambling, saying it will fuel organized crime and encourage gambling addiction. Surveys have shown a majority of Japanese oppose the plan.

Casinos are unlikely to start operating in Japan until 2021 or beyond, after the Tokyo 2020 Olympic Games. The new legislation would authorize the drafting of regulations for details such as the number and location of casinos, entry restrictions for Japanese and tax rates, which are expected to take up to a year to gain approval.

The approval of the final version of the legislation came in the wee hours Thursday, after a failed attempt by opposition lawmakers to pass a no-confidence motion against its top supporter, Prime Minister Shinzo Abe. Abe has sought passage of the long-delayed legislation for years, over the objections of many in his own ruling Liberal Democratic Party.

Tokyo, Osaka and Yokohama are among the cities said to be planning to seek casino licenses.

Casino operators view Japan as a lucrative “final frontier.” In a report this month, analysts at investment bank CLSA estimated the potential market at USD $30 billion a year in gross revenue.

“This is a landmark occasion and should be a shot in the arm as it relates to investor sentiment in all gaming names that could be players in Japan,” Grant Govertsen, a Macau-based analyst at investment firm Union Gaming, said in a commentary.

CLSA’s forecast is based on revenues from Japan’s existing forms of gambling, which include lotteries, pachinko  a kind of pin-ball machine  and wagering on horse, auto, bicycle and power boat racing, which combined rake in more than USD $30 billion.

Billionaire U.S. casino moguls such as Sheldon Adelson, head of Las Vegas Sands Corp., and Steve Wynn of Wynn Resorts, or their representatives have often visited Japan to lobby for legalization.

The American Gaming Association, a trade group representing the USD $240 billion U.S. casino industry, said it had been working to inform Japanese lawmakers about various issues.

Facing down fierce objections from opposition lawmakers, Abe argued that gambling would amount to only a small fraction of the total business of the hoped-for integrated resorts, which combine casinos with hotels, convention space, theme parks and shopping malls.

“It’s not like the whole city will be taken over by casinos,” Abe said in response to sharp jibes from Renho, an opposition leader. “These facilities will attract investment and do much to help create jobs.

Japan could become the world’s second largest gambling market behind No. 1 Macau, Govertsen said.

“Quite simply, it represents the next and perhaps only other large opportunity to develop large-scale integrated resorts in Asia for a lot of these companies,” said Govertsen. “Some of these companies, their revenues and cash flow are so large today that it would take an opportunity like Japan to move the needle for them.”

Adelson told analysts in 2014 that his company was “willing to commit substantial capital investment to develop large-scale, truly iconic integrated resorts” if Japan legalizes casinos.

“The reason why everyone’s spending the time on this is that the potential is absolutely enormous,” James Murren, chairman of Las Vegas-based MGM Resorts International, said in a recent conference call with analysts.

Japan is taking a gamble as the market cools elsewhere.

A sweeping anti-graft campaign by Chinese President Xi Jinping has crimped lavish spending by high-rollers from mainland China, causing gambling revenue in Macau, which provides the bulk of profits for companies like Wynn and Sands, to fall for 26 straight months until August.

Macau raked in about USD $29 billion in casino revenue last year, about five times more than the Las Vegas strip, but down about a third from the year before.

Japan’s casinos are expected to follow Singapore’s model in some areas, perhaps charging an entry fee to local residents. Some other Asian nations with legalized gambling, such as Vietnam and Malaysia, have tighter restrictions on their own citizens visiting casinos. Other places like the Philippines and Macau have no restrictions.

Public opposition to the casinos is mainly based on concerns over gambling addiction. In a 2014 study, researchers with Japan’s health ministry found that nearly 5 million people, or 5 percent of the adult population, were thought to be addicted to gambling. That’s far higher than the 1 percent rate found in many other countries, said the researchers, who said pachinko was the main problem.

Study: Kalvin Chan, Elaine Kurtenbach

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1 Billion Yahoo Users Hacked: World’s Biggest Ever Breach

A Yahoo sign at the company's headquarters July in Sunnyvale, California. Photo: Marcio Jose Sanchez / Associated Press

SAN FRANCISCO — Yahoo has discovered a 3-year-old security breach that enabled a hacker to compromise more than 1 billion user accounts, breaking the company’s own humiliating record for the biggest security breach in history.

The digital heist disclosed Wednesday occurred in August 2013, more than a year before a separate hack that Yahoo announced nearly three months ago. That breach affected at least 500 million users, which had been the most far-reaching hack until the latest revelation.

“It’s shocking,” security expert Avivah Litan of Gartner Inc.

Both lapses occurred during the reign of Yahoo CEO Marissa Mayer, a once-lauded leader who found herself unable to turn around the company in the four years since her arrival. Earlier this year, Yahoo agreed to sell its digital operations to Verizon Communications for $4.8 billion  a deal that may now be imperiled by the hacking revelations.

Two Hacks, More Than a Billion Accounts

Yahoo didn’t say if it believes the same hacker might have pulled off two separate attacks. The Sunnyvale, California, company blamed the late 2014 attack on a hacker affiliated with an unidentified foreign government, but said it hasn’t been able to identify the source behind the 2013 intrusion.

Yahoo has more than a billion monthly active users, although some have multiple accounts and others have none at all. An unknown number of accounts were affected by both hacks.

In both attacks, the stolen information included names, email addresses, phone numbers, birthdates and security questions and answers. The company says it believes bank-account information and payment-card data were not affected.

But hackers also apparently stole passwords in both attacks. Technically, those passwords should be secure; Yahoo said they were scrambled twice  once by encryption and once by another technique called hashing. But hackers have become adept at cracking secured passwords by assembling huge dictionaries of similarly scrambled phrases and matching them against stolen password databases.

That could mean trouble for any users who reused their Yahoo password for other online accounts. Yahoo is requiring users to change their passwords and invalidating security questions so they can’t be used to hack into accounts. (You may get a reprieve if you’ve changed your password and questions since September.)

Security experts said the 2013 attack was likely the work of a foreign government fishing for information about specific people. One big tell: It doesn’t appear that much personal data from Yahoo accounts has been posted for sale online, meaning the hack probably wasn’t the work of ordinary criminals.

That means most Yahoo users probably don’t have anything to worry about, said J.J. Thompson, CEO of Rook Security.

Questions for Verizon

News of the additional hack further jeopardizes Yahoo’s plans to fall into Verizon’s arms. If the hacks cause a user backlash against Yahoo, the company’s services wouldn’t be as valuable to Verizon, raising the possibility that the sale price might be re-negotiated or the deal may be called off. The telecom giant wants Yahoo and its many users to help it build a digital ad business.

After the news of the first hack broke, Verizon said it would re-evaluate its Yahoo deal and in a Wednesday statement said it will review the “new development before reaching any final conclusions.” Spokesman Bob Varettoni declined to answer further questions.

At the very least, the security lapses “definitely will help Verizon in its negotiations to lower the price,” Litan predicted. Yahoo has argued that news of the 2014 hack didn’t negatively affect traffic to its services, strengthening its contention that the Verizon deal should be completed under the original terms.

“This just adds to fuel to the fire and it won’t help Yahoo’s cause,” said Eric Jackson, a longtime critic of the company’s management. Although he has in the past, Jackson doesn’t currently own Yahoo stock.

Investors appeared worried about the Verizon deal. Yahoo’s shares fell 96 cents, or 2 percent, to $39.95 after the disclosure of the latest hack.

Story: Michael liedtke

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