Political middlemen and dart-throwing chimps

Martha Gill's "Irrational Animals" column.

Predicting the weather was once quite an interesting profession, needing skill in reading the instruments, intuition in deciphering the skies and years of experience in putting it all together. Now it’s the kind of job Nick Cage’s character would be given in a heavy-handed satire of the American dream, possibly also starring Michael Caine. We don’t need these skilled individuals any more – computers do all that. We just need an algorithm and a mouthpiece.

And so to Nate Silver – one of the biggest winners of the US presidential election. As the race neared its end, becoming “too close to call”, with money and opinions frantically changing hands, the New York Times blogger was calmly and correctly predicting voter outcome in every single state. He had what others didn’t – a formula to convert polling information into probabilities – and it turned out to be dead-on. He was not alone in getting it right but he was among the few. Many failed spectacularly.

Here’s Newt Gingrich on Fox News on 25 October: “I believe the minimum result will be 53-47 [per cent] Romney, over 300 electoral votes, and the Republicans will pick up the Senate. I base that . . . on just years and years of experience.” And here’s the GOP strategist Karl Rove in the Wall Street Journal on 31 October: “It comes down to numbers. And in the final days of this presidential race, from polling data to early voting, they favour Mitt Romney.”

These were not small errors. These people were standing in pre-hurricane wind and predicting sunshine. Are pundits more often wrong than not, or was it just this particular election that threw them? And how often do the statistics spewed out by experts hit the mark? One study found a statistic for it.

Algorithm blues

In the 1980s, a psychologist called Philip Tetlock took a group of journalists, foreign policy experts and economists – 284 of them – and spent the next two decades bombarding them with questions: would the dotcom bubble burst? Would George Bush be re-elected? How would apartheid end?

After analysing 82,361 predictions, Tetlock found that his experts performed worse than random chance. In short, they could have been beaten by dart-throwing chimps.

The reason was confidence. Tetlock found that the more often pundits appeared on TV, the more likely they were to be wrong. Their strong opinions were causing them to ignore dissenting facts or explain them away, leaving them trapped, he said, in the cage of their preconceptions.

Now, semi-expert middlemen are being squeezed out as the focus shifts to minute data analysis. Silver is one of the winners of this change but on the losing side is a whole industry of political forecasters. And it’s not just true of politics. Finance has been moving that way for a while. In UBS’s recent swath of job cuts, at least one trader, David Gallers, was replaced with an algorithm.

Difficult times for the old school, but what of the new? Silver expressed his concerns to the Wall Street Journal: “You don’t want to influence the system you are trying to forecast.” Only one problem with the new machines, then – accuracy. They’re so good that they might start controlling the weather.

Newt Gingrich opining away on Fox News. Photograph: Getty Images

Martha Gill writes the weekly Irrational Animals column. You can follow her on Twitter here: @Martha_Gill.

This article first appeared in the 19 November 2012 issue of the New Statesman, The plot against the BBC

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Marcus Hutchins: What we know so far about the arrest of the hero hacker

The 23-year old who stopped the WannaCry malware which attacked the NHS has been arrested in the US. 

In May, Marcus Hutchins - who goes by the online name Malware Tech - became a national hero after "accidentally" discovering a way to stop the WannaCry virus that had paralysed parts of the NHS.

Now, the 23-year-old darling of cyber security is facing charges of cyber crime following a bizarre turn of events that have left many baffled. So what do we know about his indictment?

Arrest

Hutchins, from Ilfracombe in Devon, was reportedly arrested by the FBI in Las Vegas on Wednesday before travelling back from cyber security conferences Black Hat and Def Con.

He is now due to appear in court in Las Vegas later today after being accused of involvement with a piece of malware used to access people's bank accounts.

"Marcus Hutchins... a citizen and resident of the United Kingdom, was arrested in the United States on 2 August, 2017, in Las Vegas, Nevada, after a grand jury in the Eastern District of Wisconsin returned a six-count indictment against Hutchins for his role in creating and distributing the Kronos banking Trojan," said the US Department of Justice.

"The charges against Hutchins, and for which he was arrested, relate to alleged conduct that occurred between in or around July 2014 and July 2015."

His court appearance comes after he was arraigned in Las Vegas yesterday. He made no statement beyond a series of one-word answers to basic questions from the judge, the Guardian reports. A public defender said Hutchins had no criminal history and had previously cooperated with federal authorities. 

The malware

Kronos, a so-called Trojan, is a kind of malware that disguises itself as legitimate software while harvesting unsuspecting victims' online banking login details and other financial data.

It emerged in July 2014 on a Russian underground forum, where it was advertised for $7,000 (£5,330), a relatively high figure at the time, according to the BBC.

Shortly after it made the news, a video demonstrating the malware was posted to YouTube allegedly by Hutchins' co-defendant, who has not been named. Hutchins later tweeted: "Anyone got a kronos sample."

His mum, Janet Hutchins, told the Press Association it is "hugely unlikely" he was involved because he spent "enormous amounts of time" fighting attacks.

Research?

Meanwhile Ryan Kalember, a security researcher from Proofpoint, told the Guardian that the actions of researchers investigating malware may sometimes look criminal.

“This could very easily be the FBI mistaking legitimate research activity with being in control of Kronos infrastructure," said Kalember. "Lots of researchers like to log in to crimeware tools and interfaces and play around.”

The indictment alleges that Hutchins created and sold Kronos on internet forums including the AlphaBay dark web market, which was shut down last month.

"Sometimes you have to at least pretend to be selling something interesting to get people to trust you,” added Kalember. “It’s not an uncommon thing for researchers to do and I don’t know if the FBI could tell the difference.”

It's a sentiment echoed by US cyber-attorney Tor Ekeland, who told Radio 4's Today Programme: "I can think of a number of examples of legitimate software that would potentially be a felony under this theory of prosecution."

Hutchins could face 40 years in jail if found guilty, Ekelend said, but he added that no victims had been named.

This article also appears on NS Tech, a new division of the New Statesman focusing on the intersection of technology and politics.

Oscar Williams is editor of the NewStatesman's sister site NSTech.