Hackers’ Delight: 1 Million Miles for Reporting United Airlines Security Flaws

Hackers’ Delight: 1 Million Miles for Reporting United Airlines Security Flaws

A United Airlines plane with the Continental Airlines logo on its tail, sits at a gate at O'Hare International airport in Chicago October 1, 2010.  REUTERS/Frank Polich
Frank Polich
By Suelain Moy

Now here’s a rewards program Julian Assange could love. United Airlines has confirmed that it paid 1 million frequent flier miles each to two hackers who found serious flaws and security breaches in its computer systems.

Related: Millions of Samsung Galaxy Phones May Be Vulnerable to Hackers

This past May, United started a “bug bounty” program to find loopholes in its security, but it’s hardly the first corporate entity to do so. Google, Facebook and Yahoo all offer rewards or incentives to hackers who report bugs to them privately. Netscape engineer Jarrett Ridlinghafer is largely credited with coming up with the concept of rewarding good, or “white hat,” hackers for trouble-shooting in 1995.

Jordan Wiens, founder of cybersecurity company Vector 35, was one of two winners to claim a million airline miles for his prize. He posted a screenshot of his mileage account on Twitter. (He submitted the bug on May 15, got a response on May 19, a validation notice on June 24 and then the payout on July 10.) A second bug he reported won a lesser prize of 250,000 miles. Kyle Lovett from Montgomery, Calif., was the other million-mile winner. Lovett Tweeted that he will use some of the miles to fly out his mother and brother to California.

No doubt the airline saved a ton of money in preventing computer issues. In recent months United has had to ground it flights twice as a result of computer system glitches. On June 2, an automation issue affected 150 flights, or 8 percent of its morning schedule. On July 8, a network connectivity issue due to a router malfunction locked up its reservations system and grounded thousands of flights worldwide.

Looks like the airline has more miles to dole out, too: Twitter was full of happy pronouncement from hackers claiming smaller prizes and begging Delta to do the same.

Map of the Day: Navigating the IRS

IRS, activist lawyers to clash in court over tax preparer rules
Reuters
By Michael Rainey

The Taxpayer Advocate Service – an independent organization within the IRS whose roughly 1,800 employees both assist taxpayers in resolving problems with the tax collection agency and recommend changes aimed at improving the system – released a “subway map” that shows the “the stages of a taxpayer’s journey.” The colorful diagram includes the steps a typical taxpayer takes to prepare and file their tax forms, as well as the many “stations” a tax return can pass through, including processing, audits, appeals and litigation. Not surprisingly, the map is quite complicated. Click here to review a larger version on the taxpayer advocate’s site.

A Surprise Government Spending Slowdown

Wikimedia / Andy Dunaway
By Michael Rainey

Economists expected federal spending to boost growth in 2019, but some of the fiscal stimulus provided by the 2018 budget deal has failed to show up this year, according to Kate Davidson of The Wall Street Journal.

Defense spending has come in as expected, but nondefense spending has lagged, and it’s unlikely to catch up to projections even if it accelerates in the coming months. Lower spending on disaster relief, the government shutdown earlier this year, and federal agencies spending less than they have been given by Congress all appear to be playing a role in the spending slowdown, Davidson said.

Number of the Day: $203,500

Mulvaney listens as U.S. President Donald Trump meets with members of the Republican Study Committee at the White House in Washington
REUTERS/Jonathan Ernst
By The Fiscal Times Staff

The Wall Street Journal’s Catherine Lucey reports that acting White House Chief of Staff Mick Mulvaney is making a bit more than his predecessors: “The latest annual report to Congress on White House personnel shows that President Trump’s third chief of staff is getting an annual salary of $203,500, compared with Reince Priebus and John Kelly, each of whom earned $179,700.” The difference is the result of Mulvaney still technically occupying the role of director of the White House Office of Management and Budget, where his salary level is set by law.

The White House told the Journal that if Mulvaney is made permanent chief of staff his salary would be adjusted to the current salary for an assistant to the president, $183,000.

The Census Affects Nearly $1 Trillion in Spending

Alex Rader/The Fiscal Times
By Michael Rainey

The 2020 census faces possible delay as the Supreme Court sorts out the legality of a controversial citizenship question added by the Trump administration. Tracy Gordon of the Tax Policy Center notes that in addition to the basic issue of political representation, the decennial population count affects roughly $900 billion in federal spending, ranging from Medicaid assistance funds to Section 8 housing vouchers. Here’s a look at the top 10 programs affected by the census:

Chart of the Day: Offshore Profits Continue to Rise

FILE PHOTO: An illustration picture shows euro and US dollar banknotes and coins, April 8, 2017.  REUTERS/Kai Pfaffenbach/File Photo
Kai Pfaffenbach
By Michael Rainey

Brad Setser, a former U.S. Treasury economist now with the Council on Foreign Relations, added another detail to his assessment of the foreign provisions of the Tax Cuts and Jobs Act: “A bit more evidence that Trump's tax reform didn't change incentives to offshore profits: the enormous profits that U.S. firms report in low tax jurisdictions continues to rise,” Setser wrote. “In fact, there was a bit of a jump up over the course of 2018.”