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Keeping up with advances in employment fraud

IN BRIEF:

• Advanced background checks are being integrated into hiring protocols to address the rise of employment fraud in the digital age, with a focus on enhancing fraud detection rather than guaranteeing complete prevention.

• Future technological developments, such as machine learning and blockchain, hold promise for further improving the integrity of hiring, but caution is advised to avoid overreliance on tech solutions.

As the global economy shifts towards recovery, organizations are ramping up their defenses against the threat of employment fraud. The hiring landscape, ever-evolving and increasingly digital, presents various opportunities for deceitful practices. Impersonation, falsification of qualifications, and sophisticated phishing attacks are just a few of the tactics employed by fraudsters to infiltrate companies.

Employers who place their bets on seemingly promising candidates without conducting thorough background checks are especially vulnerable to fraud. Impersonation, hiding information, falsifying facts, sending proxy attendees during work evaluations, multiple affiliations, and phishing attacks on job portals have been increasing given the advent of technology.

The Report to the Nations 2022 by the Association of Certified Fraud Examiners (ACFE) reports that nearly half of the organizations that fell victim to employment fraud (43%) had bypassed comprehensive background checks in their hiring processes. The data highlight the need for a more diligent and nuanced approach to candidate verification, one that balances thoroughness with the realities of the modern job market.

THE SHORTCOMINGS OF TRADITIONAL BACKGROUND SCREENING METHODS
Currently, the hiring industry relies almost entirely on multiple third-party verification vendors who physically visit addresses to check the claims made by prospective employees. In one of the surveys conducted by EY, as many as 59% of the LinkedIn poll respondents revealed that their organizations employ third-party intermediaries for pre-employment background checks, while 18% conduct manual checks, and 9% onboard employees without any employment verification at all. However, the manual process is not only time consuming but also prone to human error as well as allowing room for misinterpretation. 

As many as 14% of the LinkedIn poll respondents confided that their current manual verification process is prone to error while 66% consider their current method to be time consuming. The costs involved and the exposure of employees’ Personal Identifiable Information (PII) data and the challenges it entails additionally weigh heavily on employers.

Physical verification methods alone are almost redundant given that fraudsters are devising more technically advanced scams. On the other hand, making the process non-virtual makes the process transparent, reduces the chances of employees submitting doctored documents, and ticks all the boxes of data privacy compliance.

NAVIGATING THE EVOLVING TECHNOLOGICAL LANDSCAPE
The rise of the gig economy and the shift to remote work have compounded the difficulty of tracking a candidate’s employment history. Traditional verification methods, which often involve third-party vendors personally verifying claims, are becoming increasingly outdated. These methods are not only slow and prone to human error but also raise privacy concerns as they involve the handling of sensitive personal information.

While the fraud menace threatens to arrest the application of technological advances in the hiring space, the answer to the dilemma lies in tech itself. The development of employee background check tools has led to a complete overhaul of pre-hiring formalities. Technology-supported checks have helped simplify the methods for companies to identify anomalies in the overall assessment of the candidate’s past employment experience. Scaled and customized to fit the hiring prerequisites of diverse industries, these models also have a shorter turnaround time as compared to traditional methods, making for a swifter hiring experience.

Digital address verification, face-match technology, and geotagging are other methods being employed to identify inconsistencies in photographs and validate the authenticity of the claims made by candidates. These solutions are more efficient and offer a higher degree of accuracy and compliance with data privacy standards.

THE ETHICAL USE OF TECHNOLOGY IN HIRING
As we integrate these advanced tools into our hiring processes, it is imperative to consider the ethical implications. It is crucial to ensure that these technologies are used responsibly and that they serve to enhance, rather than replace, human judgment. Technology strengthens our hiring defenses, yet it cannot guarantee absolute protection against fraud.

While these technological advancements significantly enhance our ability to detect inconsistencies and fraudulent claims, they are not foolproof. It is important to acknowledge that no system can guarantee a completely fraud-free hiring process. The goal is to reduce the risk of fraud and to build a more trustworthy workforce.

REVOLUTIONIZING HIRING
Looking ahead, the potential for further technological advancements in hiring is vast. Machine learning algorithms are becoming increasingly adept at analyzing vast amounts of data to identify patterns that may indicate fraudulent behavior. Blockchain technology holds the promise of creating secure, immutable records of candidates’ employment histories, education, and credentials.

HR departments play a critical role in navigating this new landscape. They must be adept at using these technological tools while also maintaining a human touch. It is their responsibility to ensure that the hiring process remains fair, equitable, and free from discrimination.

In an era where hiring practices are being redefined by digital innovation, it may be crucial to consider engaging the services of an experienced and technologically enabled third party who can do precise and regulatory-compliant models to expedite and secure pre-employment checks. This way, companies will be able to harness the power of data and technology to hire candidates with verified profiles, enabling a more secure and reliable recruitment process.

This article is for general information only and is not a substitute for professional advice where the facts and circumstances warrant. The views and opinion expressed above are those of the author and do not necessarily represent the views of SGV & Co.

 

Roderick M. Vega is the forensic and integrity services leader of SGV & Co.

Philippine competition body eyeing P2.4-B fine versus 12 onion traders

ENGIN AKYURT--UNSPLASH

THE PHILIPPINE Competition Commission (PCC) has recommended a P2.4-billion fine for anti-competitive behavior against 12 importers that allegedly controlled more than half of the country’s onion imports at the height of the onion crisis more than a year ago, the presidential palace said on Sunday.

The importers violated the Philippine Competition Act by sharing with each other sanitary and phytosanitary import clearances issued by the Department of Agriculture-Bureau of Plant Industry, it said in a statement, citing a probe by the commission.

“By agreeing to allocate [import clearances] and divide among themselves the actual volume of imports, respondents effectively controlled more than 50% of the volume of onions imported into the Philippines,” it said. This is illegal because it lessened market competition, it added.

Onion prices hit as high as P700 a kilo between the latter part of 2022 and the early months of 2023. The farming sector had blamed the Agriculture department for failing to make accurate supply estimates and resisting imports. Agriculture officials also suspected internal price manipulations of skyrocketing onion prices.

The palace said the traders also colluded to lessen competition in the market. “Evidence showed that respondents, despite being competitors, shared, exchanged and discussed sensitive business information such as price, suppliers, customers, volume, shipping, distribution and storage.”

The importers and traders avoided competing with each other and failed to independently decide on their policies and “substituted the risk of competition with cooperation,” the palace said, citing the PCC findings.

President Ferdinand R. Marcos, Jr. in his state of the nation address before Congress in July last year ordered the commission and other agencies to investigate the onion crisis and file charges against smugglers, hoarders and those engaged in anti-competitive practices.

The Department of Agriculture in January halted onion imports until May to prevent a free fall in retail prices due to a supply gut. It later extended the ban until July 31 amid stable supply.

The agency last month said it would further extend the ban.

Red onions cost P110.47 a kilo while the white variety costs P108.88 a kilo, according to the Agriculture department’s price monitoring bulletin from Aug. 12-17.

As of July 5, the country had 152,839 metric tons (MT) of red onions, 10,601.42 MT of yellow onions and 63 MT of shallots, according to the Agriculture department.

In the first quarter, onion production was about 201,000 MT, according to the Philippine Statistics Authority, up 36.8% from a year earlier. The DA attributed the production gains to a 40% increase in the land planted with onion.

Agriculture Assistant Secretary and spokesman Arnel V. de Mesa last month said the agency was considering extending the freeze on onion imports to shield domestic producers from price declines just as they are achieving production gains.

The volume was sufficient to meet the demand for about eight months, or until February.

He also said they might opt to import only yellow onions due to the lower inventories of “about 2.5 to three months.”

A bill that seeks to amend the country’s  Anti-Agricultural Smuggling Act/Anti-Agricultural Economic Sabotage Act is among the priorities of the Legislative-Executive Development Advisory Council. — KATA

VP cites abuse of power in raid of Quiboloy house

PHILSTAR FILE PHOTO

VICE-PRESIDENT (VP) Sara Duterte-Carpio on Sunday condemned what she called “gross abuse of police power” after law enforcers served a warrant for the arrest of a church leader who is facing sex and human trafficking charges.

“I cannot help but ask whether the use of extraordinary force and unjust abuse to serve the warrant is because the accused is a Duterte supporter,” Ms. Duterte-Carpio said in a statement, after about 2,000 backed by riot squads surrounded the 30-hectare compound of Apollo C. Quiboloy in Davao City on Saturday morning.

They did not find him.

Ms. Duterte-Carpio said the police takeover of the Kingdom of Jesus Christ’s compound was “not only a blatant violation of constitutionally protected rights but a betrayal of trust” by an institution “sworn to protect and serve us.”

“I want to ask for forgiveness from all the members, devotees and constituents of the Kingdom of Jesus Christ, for encouraging and begging you to vote for Bongbong Marcos, Jr. in 2022,” she said, using President Ferdinand R. Marcos, Jr.’s nickname. “May you forgive me.”

Mr. Quiboloy and five other members of his church are facing charges of child abuse and human trafficking, with two courts from Davao City in southern Philippines and Pasig City in Metro Manila having ordered their arrest.

The Senate has separately ordered his arrest for snubbing its own investigation of the church.

United States federal prosecutors in 2021 indicted Mr. Quiboloy for having sex with women and underage girls who faced threats of abuse and “eternal damnation.”

Charges also included sex trafficking by force, fraud and coercion, marriage fraud, money laundering, cash smuggling and visa fraud.

The Police Regional Office 11 (PRO 11) in Davao in a statement on Saturday confirmed the death of 51-year-old Edwin Cabatbat, who was pronounced dead on arrival at the Southern Philippines Medical Center after losing consciousness while guarding one of the church’s watchtowers.

“PRO 11 expresses deep condolences regarding Mr. Cabatbat’s passing and emphasizes that the police were simply fulfilling their duty in executing the warrant of arrest for Pastor Quiboloy, who has been evading law enforcement,” it said.

Videos circulating on social media showed Mr. Quiboloy’s followers yelling at the police while filming the raid with their mobile phones.

Former President Rodrigo R. Duterte had described earlier attempts to arrest his spiritual adviser as overkill, citing large numbers of cops deployed for the mission.

Police have justified the large number of cops deployed for the Saturday raid, saying the compound has 40 buildings and structures and citing heckling efforts by Mr. Quiboloy’s followers.

Members of the Criminal Investigation and Detection Group and the elite Special Action Force of the Philippine National Police raided the same compound and four other properties in June, but Mr. Quiboloy was not found.

Mr. Marcos, Ms. Duterte-Carpio’s running-mate in the 2022 elections, in July defended the multimillion-peso bounty for Mr. Quiboloy and his associates.

In her statement, Ms. Duterte-Carpio expressed regret for endorsing Mr. Marcos during the 2022 presidential election.

“The Dutertes are pretty predictable and parochial when it comes to their actions now that they are out of national power,” said Hansley A. Juliano, who teaches political science at the Ateneo de Manila University.

“This is predictable, about how they think they’re entitled to determine what is moral and upright when it benefits them, but immoral and unacceptable when not,” he added.

Mr. Duterte had appeared in the news programs of Mr. Quiboloy to promote his anti-illegal drug crackdowns, which are now being investigated by the International Criminal Court (ICC).

The ICC probe covers crimes committed in Davao City from November 2011 to June 2016 when he was still its mayor, as well as cases during his presidency up until March 16, 2019, the day before the Philippines withdrew from the ICC.

“Sara Duterte brings nothing more than a cipher that represents her family’s interests, their barefaced hypocrisy and callousness with their family’s extrajudicial killing casualties, and why she should not be trusted with anything resembling high office,” Mr. Juliano said.

The Kabataan Party-list in a statement said Filipinos are the “biggest losers in the Marcos-Duterte rivalry.”

Party-list Rep. Raoul Danniel A. Manuel said the two camps seek to “outmaneuver” each other to “maintain their hold on power towards the 2025 elections and beyond.”

“We are at a point of no return,” he said. “The tandem that promised unity is quarreling in front of the people,” he added in Filipino, citing the need for alternative politics. — Kyle Aristophere T. Atienza

Maharlika told to invest in RE, defense sectors

WIND TURBINES are seen in Pagudpud, Ilocos Norte. — PHILIPPINE STAR/KJ ROSALES

By John Victor D. Ordoñez,  Reporter

THE MAHARLIKA Investment Corp. (MIC) should look at investments in renewable energy (RE), technology and the local defense manufacturing sector as the Philippines’ sovereign wealth fund continues to scout for opportunities, analysts said at the weekend.

“The MIC should focus on emerging sectors which have the prospect of rapid capital growth such as energy and tech,” Terry L. Ridon, a public investment analyst and convenor of think tank InfraWatch PH, said in a Facebook Messenger chat.

“Renewable energy projects may be a particular focus as the private sector may have difficulty keeping up with the demand for more generation facilities in the future,” he added.

Finance Secretary Ralph G. Recto, who chairs the MIC board, earlier told senators the corporation plans to finalize potential investments by yearend.

The Maharlika Investment Fund has yet to make any investments since President Ferdinand R. Marcos, Jr. signed the law creating the country’s first wealth fund.

MIC Chief Executive Officer (CEO) Rafael D. Consing, Jr. is “looking for opportunities” but had not approached the board to approve investments yet, Mr. Recto told a Senate finance committee hearing with the Development Budget Coordination Committee on Aug. 14.

Mr. Consing has said the board would invest in the energy sector particularly in off-grid power and infrastructure projects, the Finance chief said.

“I would certainly look into investing in the self-reliant defense industry that is about to be set up after the enactment of the Self-Reliant Defense Posture law,” Michael Henry Ll. Yusingco, a policy analyst and a senior fellow at the Ateneo de Manila University Policy Center, said in a Facebook Messenger chat.

Mr. Marcos is set to sign into law a bill that seeks to boost the country’s defense program through investments in local defense equipment manufacturing amid growing tensions with China.

Congress ratified the bicameral conference committee report of the measure on Aug. 12, which offers incentives to attract foreign defense industry investors.

He said the government should explore investment opportunities other than traditional public works such as roads and bridges “given the high probability of this effort getting politicized.”

John Paolo R. Rivera, a senior research fellow at the Philippine Institute for Development Studies, said the real estate and technology sectors could also be viable prospects for the MIC, saying the development of these sectors could yield decent returns.
Last month at a Senate energy committee hearing, Energy Undersecretary Sharon S. Garin said battery technology is evolving fast enough for the Philippines to meet its RE targets. She said the agency was looking to attract more battery system companies to introduce these advanced systems for local energy projects.

The government aims to raise the share of RE in the energy mix from 22% to 25% by 2030 and to 50% by 2040.

The Philippines is hard-pressed to find new power sources as its only indigenous source of gas, the Malampaya gas field, dries up. It is expected to run out of easily recoverable gas by 2027.

Mr. Consing has said the MIC plans to raise about $1 billion for energy projects on grid modernization, electricity distribution and new sources to “diversify supply and create price stability.”

“The Maharlika Investment Fund reducing reliance on official development assistance and widening fiscal space would depend on whether it can leverage its investments by attracting foreign or local funds to co-invest with it,” Calixto V. Chikiamco, Foundation for Economic Freedom (FEF) president, said in a Viber message.

Probe of rising dengue cases sought

Public Health Image Library/US Centers Disease for Control and Prevention

A PHILIPPINE senator has filed a resolution that seeks a probe into the “alarming” rise of reported dengue cases this year to prevent more deaths caused by the mosquito-borne disease.

The Department of Health (DoH) last week reported a 39% increase in dengue cases nationwide, with a total of 150,354 recorded from the start of the year to Aug. 10. There were 107,953 cases posted in the same period last year.

The agency said 396 people have so far died from the disease this year, attributing the rise in cases to the rainy season. This is lower than the 421 deaths recorded during the same period last year.

“It is necessary for the DoH to inform the public of the overall state of dengue outbreak in the country in order to fully address the situation and protect the health and lives of the people,” Senator Maria Lourdes Nancy S. Binay-Angeles said in Senate Resolution No. 1166, filed on Aug. 21.

In a news briefing on Aug. 19, Health Secretary Teodoro J. Herbosa said his agency is set to declare a dengue outbreak after cases reached outbreak levels.

An uptick in cases has been recorded in all regions, except SOCCSKSARGEN, Zamboanga Peninsula, and Bicol Region in the recent 3-4 weeks counting back from Aug. 10. Meanwhile, provinces such as Iloilo, Capiz, and Ormoc City have already declared their own outbreaks due to a significant rise in cases.

A 24% increase to 23,290 cases was first observed by the department between July 14 to July 27, compared to 18,784 cases from June 30 to July 13. While there were only 13,369 cases reported from July 28 to Aug. 10, the department noted this may be due to late consultations and reports.

The Philippine Health department last declared a national dengue epidemic in 2019.

As of April 30, there have been over 7.6 million cases of Dengue and 3,000 deaths reported globally, according to the World Health Organization (WHO).  The disease is the most common mosquito-borne disease worldwide, typically found in tropical and sub-tropical climates.

Common symptoms include high fever, severe headaches, nausea, vomiting, rashes, and muscle pain, based on the WHO’s website.

“The ongoing dengue outbreak warrants an inquiry in aid of legislation not actively prevent further loss of lives,” Ms. Binay-Angeles said in the resolution. — John Victor D. Ordoñez

Tourism roads may boost economy

PIXABAY

THE GOVERNMENT’s proposal to allot P6.4 billion for the development of tourism road projects for next year could further spur tourism due to improved road connectivity to tourist attractions, a congressman said on Sunday.

The budget could also boost economic activity and provide jobs in the infrastructure and transportation sectors, among other industries, Quezon City Rep. Marvin D. Rillo said, citing the stimulus effect of a tourism boost in the country.

“The infrastructure projects create construction-related jobs that readily benefit low-income families,” he said in a statement.

“More importantly, the improved road access will boost tourist passage, thus spurring new jobs in accommodation, transport, food and beverage services, entertainment, and other activities,” he added.

The Tourism Road Infrastructure Program is a component of the Philippine National Tourism Development Plan, which seeks to improve connectivity to tourism sites and gateways, according to the Department of Public Works and Highways. — Kenneth Christiane L. Basilio

Korean ‘fraud’ leader nabbed

PHILSTAR FILE PHOTO

THE BUREAU of Immigration (BI) arrested a South Korean man wanted for telecommunications fraud in his country.

Immigration Chief Norman G. Tansingco said the 32-year-old man was arrested in Mactan, Lapu-Lapu City last Aug. 14.

He added that the arrest was strengthened by a deportation warrant issued by the BI Board of Commissioners in October 2021, when it ordered the man’s expulsion from the Philippines for being an undesirable alien.

There is also a standing red notice from the International Police (Interpol) against the man, which came from an arrest warrant issued by the Suwon district court in South Korea in September 2019.

The Korean man had been overstaying in the Philippines since his arrival in July 2019.

Authorities said the man leads a voice phishing syndicate that operated since 2017. It had already defrauded victims of over $840,000.

The gang allegedly disguised themselves as bankers, managing to lure the victims to share personal information which they used to defraud and gain illegal profits.

The man is already an undocumented alien due to his canceled passport. He is currently detained at the BI facility in Taguig City while awaiting deportation. — Chloe Mari A. Hufana

Cigarettes seized in Zamboanga

BW FILE PHOTO

COTABATO CITY — Policemen and agents of the Bureau of Customs (BoC) together foiled an attempt by smugglers to deliver to Zamboanga City P16 million worth of cigarettes from Indonesia.

Radio reports here on Sunday quoted Brig. Gen. Bowenn Joey M. Masauding, director of the Police Regional Office-9, as saying that personnel of units under him and BoC employees seized the contraband on Thursday, piled inside a van-type truck that has just moved out then from a roll on, roll off type vessel from Sulu that docked at the Zamboanga City Port.

The law-enforcement team involved in the operation found inside the truck 281 large boxes, containing cigarettes with Indonesian brands, amounting to P16 million, covered with other cargoes as concealment.

Mr. Masauding said the operation that led to the interception of the smuggled cigarettes was premised on tips by confidential informants. Among them were businessmen, supporting the government’s campaign against the entry into mainland Mindanao of cigarettes from Indonesia via the territorial seas of the southern Sulu and Tawi-Tawi island provinces. — John Felix M. Unson

3,044 NPAs have yielded since 2016

ARMY and civilian local executives inspect the military-type firearms turned in by 10 members of the New People’s Army before they pledged allegiance to the government in a simple rite in Maramag, Bukidnon. — PHILIPPINE STAR/JOHN FELIX M. UNSON

COTABATO CITY — The Army’s 10th Infantry Division (ID) and local government units had jointly secured the surrender of 3,044 New People’s Army (NPA) guerillas since 2016, a feat highlighted in last week’s commemoration of the unit’s 18th founding anniversary.

Radio reports here on Sunday quoted 10th ID’s commander, Major Gen. Allan D. Hambala, as saying that credit for the feat should partly go to different peace advocacy blocs, the municipal, provincial and city officials in areas covered by units of the division.

The 10th ID covers provinces and cities in Region 11 and the municipalities of San Fernando, Cadingilan, and Damulog in Bukidnon province in Region 10.

Sunday’s radio reports here also stated that units of the 10th ID had, with the support of the Philippine National Police and local executives, dismantled all armed groups under the NPA’s Southern Mindanao Regional Committee (SMRC) through combined tactical and diplomatic maneuvers in the past eight years.

The SMRC originally had five sub-regional committees, 16 guerilla fronts and nine other sub-groups, all feared for brutality on hapless villagers who had refused to provide members with money and food. — John Felix M. Unson

Israel, Hezbollah trade massive attacks as conflict escalates

TOY SOLDIERS, Hezbollah and Israel flags are seen in this illustration taken on Oct. 15, 2023. — REUTERS

JERUSALEM/BEIRUT — Hezbollah launched hundreds of rockets and drones against Israel on Sunday in retaliation for the assassination of a senior commander in Beirut last month, the Iranian-backed movement said, as Israel’s cabinet met to prepare a response.

The Israeli military said it had thwarted a much larger attack with preemptive strikes after it assessed that Hezbollah was preparing to launch the barrage.

Sunday’s violence was among the biggest exchanges of fire since hostilities began between Israel and Hezbollah in parallel with the eruption of Israel’s war against Palestinian group Hamas in Gaza.

Around 100 Israeli jets struck more than 40 Hezbollah launch sites in southern Lebanon shortly before the strikes, destroying thousands of launcher barrels that were aimed mainly at northern Israel but with some targets in central areas, the Israeli military said in a statement.

Hezbollah said it had launched drones and more than 320 Katyusha rockets towards Israel and hit 11 military targets. It said the barrage had completed “the first phase” of its response to Israel’s assassination last month of Fuad Shukr, a senior commander, in Beirut but that the full response would take “some time”.

It dismissed Israel’s account of the preemptive strikes but said in a statement its military operation had been completed successfully for the day.

Expectations of an escalation between the two sides had risen since a missile strike in the Israeli-occupied Golan Heights last month killed 12 youngsters and the Israeli military assassinated Mr. Shukr in Beirut in response.

Israel’s cabinet met at 7 a.m. (0400 GMT), Prime Minister Benjamin Netanyahu’s office announced, but there were no immediate details on any further response from Israel.

“We are determined to do everything possible to defend our country, to return the residents of the north safely to their homes and to continue to uphold a simple rule: Whoever harms us — we harm him,” Mr. Netanyahu said in a statement.

Foreign Minister Israel Katz said Israel would respond to developments on the ground but did not seek a full-scale war.

Most of the Israeli strikes were hitting targets in southern Lebanon but the military was ready to strike anywhere there was a threat, an Israeli military spokesperson said.

Defense Minister Yoav Gallant declared a state of emergency, and flights to and from Ben Gurion airport in Tel Aviv were suspended for around 90 minutes, but the airports authority said normal operations were expected to resume by 7 a.m.

WARNING SIRENS
In northern Israel, warning sirens sounded and multiple explosions were heard around several areas as Israel’s Iron Dome aerial defense system shot down rockets coming from southern Lebanon. Israel’s Magen David Adom ambulance service said it was on high alert all over the country.

The Israeli military issued civil defense instructions from central Israel to the north, limiting gatherings but authorizing people to go to work as long as they were able to reach air raid shelters quickly. There were no casualties immediately reported in Israel, according to the ambulance service.

A security source in Lebanon said at least 40 Israeli strikes had hit various towns in the country’s south in one of the densest bombardments since hostilities began in October.

One of the strikes on the town of Khiam killed one fighter from the Hezbollah-allied Shi’ite group Amal, two security sources told Reuters. Amal later announced his death.

A resident of the southern Lebanese town of Zibqeen, some 7 km (4 miles) from the border, told Reuters it was the first time he had awakened “to the sound of planes and the loud explosions of rockets — even before the dawn prayer. It felt like the apocalypse.”

Israel’s Army Radio, citing defense officials, said the military assessed that the Hezbollah barrage on northern Israel was “improvised” after the pre-emptive strike by Israeli jets on the Hezbollah launch sites.

REGIONAL CONFLICT
The Israel-Hezbollah escalation has drawn fears of a wider regional conflict, potentially involving both the United States and Iran. President Joseph R. Biden was following events closely, the White House said.

“At his direction, senior US officials have been communicating continuously with their Israeli counterparts. We will keep supporting Israel’s right to defend itself, and we will keep working for regional stability,” said National Security Council spokesperson Sean Savett.

The strikes came as negotiators were meeting in Cairo in a last-ditch effort to conclude a halt to fighting in Gaza and a return of Israeli and foreign hostages in exchange for Palestinian prisoners.

Hezbollah fired missiles in Israel immediately after the Oct. 7 attacks by Hamas gunmen on Israel. Hezbollah and Israel have been exchanging fire constantly ever since, while avoiding a major escalation as war rages in Gaza to the south.

That precarious balance appeared to shift after the strike in the Golan Heights, for which Hezbollah denied responsibility, and the subsequent assassination of Shukr, one of Hezbollah’s most senior military commanders.

Mr. Shukr’s death in an air strike was quickly followed by the assassination of Hamas political leader Ismail Haniyeh in Tehran, which led to vows of reprisal against Israel by Iran. — Reuters

‘Things will get worse’ — PM Starmer says fixing UK problems will take time

BRITAIN’S PRIME MINISTER KEIR STARMER — POOL VIA REUTERS

LONDON — Prime Minister (PM) Keir Starmer will warn Britons next week that the changes needed to fix Britain’s many problems will take time, saying “things will get worse before we get better” in a speech he describes as a chance to level with the public.

After being elected as prime minister at a July landslide election, Mr. Starmer has repeatedly blamed the former Conservative government for leaving Britain in a parlous state, something he said allowed “thugs” to spark this month’s anti-migrant riots.

In a speech due on Tuesday, a week before Britain’s parliament returns to work after a summer break, Mr. Starmer will say that “change won’t happen overnight” but that his government is determined to tackle a multitude of problems ranging from overflowing prisons to long waiting lists for health services.

“I said change would not happen overnight. When there is rot deep in the heart of a structure, you can’t just cover it up. You can’t tinker with it or rely on quick fixes. You have to overhaul the entire thing,” Mr. Starmer will say, according to excerpts of his speech provided by his office.

“We have inherited not just an economic black hole but a societal black hole and that is why we have to take action and do things differently. Part of that is being honest with people about the choices we face and how tough this will be. Frankly, things will get worse before we get better.”

Mr. Starmer, a former Director of Public Prosecutions, was forced to cancel his summer holiday this month to tackle riots that targeted Muslims and migrants. The riots began after the killings of three young girls in northern England was wrongly blamed on an Islamist migrant based on online misinformation.

Mr. Starmer said the Conservative government’s failure to tackle problems had widened cracks in society making it harder to deal with rioters than when he was Britain’s top prosecutor from 2008 to 2013.

“And those people throwing rocks, torching cars, making threats, they didn’t just know the system was broken. They were betting on it, they were gaming it, they saw the cracks in our society after 14 years of populism and failure and they exploited them. That’s what we have inherited,” he will say.

Appealing to what he calls Britain’s working people such as teachers, nurses, small business owners and firefighters, Mr. Starmer will say his government has taken the “first steps towards the change people voted for” on July 4.

But he will say the poor state of Britain’s public finances — which his finance minister says are on course to show a 22-billion pound ($29 billion) overspend this year — mean his government will have to make tough decisions.

“If we don’t take tough action across the board, we won’t be able to fix the foundations of the country like we need,” he will say. “I won’t shy away from making unpopular decisions now if it’s the right thing for the country in the long term. That’s what a government of service means.” — Reuters

Telegram CEO Durov arrested in France — media

DIMA SOLOMIN-UNSPLASH

PARIS — Pavel Durov, the Russian-French billionaire founder and Chief Executive Officer (CEO) of the Telegram messaging app, was arrested at Bourget airport outside Paris on Saturday evening, TF1 TV and BFM TV said, citing unnamed sources.

Mr. Durov was traveling aboard his private jet, TF1 said on its website, adding he had been targeted by an arrest warrant in France as part of a preliminary police investigation.

TF1 and BFM both said the investigation was focused on a lack of moderators on Telegram, and that police considered that this situation allowed criminal activity to go on undeterred on the messaging app.

The encrypted Telegram, with close to one billion users, is particularly influential in Russia, Ukraine and the republics of the former Soviet Union. It is ranked as one of the major social media platforms after Facebook, YouTube, WhatsApp, Instagram, TikTok and Wechat.

Telegram did not immediately respond to a Reuters request for comment. The French Interior Ministry and police had no comment.

Russian-born Mr. Durov founded Telegram with his brother in 2013. He left Russia in 2014 after refusing to comply with government demands to shut down opposition communities on his VKontakte social media platform, which he sold.

“I would rather be free than to take orders from anyone,” Mr. Durov told US journalist Tucker Carlson in April about his exit from Russia and search for a home for his company which included stints in Berlin, London, Singapore and San Francisco.

After Russia launched its invasion of Ukraine in 2022, Telegram has become the main source of unfiltered — and sometimes graphic and misleading — content from both sides about the war and the politics surrounding the conflict.

The platform has become what some analysts call ‘a virtual battlefield’ for the war, used heavily by Ukraine’s President Volodymyr Zelensky and his officials, as well as the Russian government.

Telegram — which allows users to evade official scrutiny — has also become one of the few places where Russians can access independent news about the war after the Kremlin increased curbs on independent media following its invasion of Ukraine.

The Russian foreign ministry said its embassy in Paris was clarifying the situation around Mr. Durov and called on Western non-governmental organizations to demand his release.

Russia began blocking Telegram in 2018 after the app refused to comply with a court order to grant state security services access to its users’ encrypted messages.

The action interrupted many third-party services, but had little effect on the availability of Telegram there. The ban order, however, sparked mass protests in Moscow and criticism from non-government officials.

‘NEUTRAL PLATFORM’
TF1 said Dubai-based Mr. Durov had been traveling from Azerbaijan and was arrested at around 8.00p.m. (1800 GMT).

Mr. Durov, whose fortune was estimated by Forbes at $15.5 billion, said some governments had sought to pressure him but the app should remain a “neutral platform” and not a “player in geopolitics.”

Telegram’s increasing popularity, however, has prompted scrutiny from several countries in Europe, including France, on security and data breach concerns.

Russia’s representative to international organizations in Vienna, Mikhail Ulyanov, and several other Russian politicians were quick on Sunday to accuse France of acting as a dictatorship — the same criticism that Moscow faced when putting demands on Mr. Durov in 2014 and trying to ban Telegram in 2018.

“Some naive persons still don’t understand that if they play more or less visible role in international information space it is not safe for them to visit countries which move towards much more totalitarian societies,” Mr. Ulyanov wrote on X.

Elon Musk, billionaire owner of X, the social media platform formerly known as Twitter, said after reports of Mr. Durov’s detention: “It’s 2030 in Europe and you’re being executed for liking a meme.”

Several Russian bloggers called for protests at French embassies throughout the world at noon on Sunday. — Reuters

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