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By Clare Baldwin and Donny Kwok HONG KONG (Reuters) - The theft of toy maker VTech Holdings Ltd's database highlights a growing problem with basic cyber security measures at small, non-financial companies that handle electronic customer data, industry watchers said on Monday. The hacked data at VTech included information about customers who download children's games, books and other educational content, the Hong Kong-based toy maker said. "Smaller companies might be targeted less often, but the implications ... can be just as serious," said the chief technology officer of cyber security firm FireEye Bryce Boland. more...

By Julia Fioretti BRUSSELS (Reuters) - The European Union wants to enhance the power of the bloc's national privacy regulators in policing a planned new EU-U.S. data pact after the previous one was struck down by a top EU court on concerns about mass U.S. surveillance. Brussels and Washington are locked in negotiations to forge a new framework enabling data transfers from Europe to the United States, which are otherwise subject to cumbersome and lengthy legal processes under EU data protection law. The previous pact, known as Safe Harbour and used by over 4,000 U.S. and European companies, was declared invalid by the European Court of Justice in October because U.S. national security needs trumped the privacy of Europeans' data. more...

By Barani Krishnan NEW YORK (Reuters) - Amazon has unveiled what its unmanned drones for package delivery would look like with a video launched on Sunday on the prototype of technology it announced two years ago. The promotional clip, narrated by television show host Jeremy Clarkson, shows a family receiving in about 30 minutes replacement soccer shoes for the one chewed up by its dog. "In time, there will be a whole family of Amazon drones. more...

By Clare Baldwin, James Pomfret and Jeremy Wagstaff HONG KONG/SINGAPORE (Reuters) - Almost a year after students ended pro-democracy street protests in Hong Kong, they face an online battle against what Western security experts say are China-sponsored hackers using techniques rarely seen elsewhere. Hackers have expanded their attacks to parking malware on popular file-sharing services including Dropbox and Google Drive to trap victims into downloading infected files and compromising sensitive information. Security experts say such techniques are only used by sophisticated hackers from China and Russia, usually for surveillance and information extraction. more...

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