Capital One Data Hack Hits 100M Customers

U.S. federal prosecutors say a former Amazon cloud hosting company employee was behind the late March breach. Most of the data includes the addresses, birth dates and self-reported income of 106 million American and Canadian credit card applicants between 2005 and 2019 — though around 140,000 social security numbers and 80,000 bank account numbers were also compromised. Authorities say Paige Thompson, 33, who’s been charged with computer fraud and abuse, was arrested after boasting online about the breach.

What’s the bigger picture? The incident helps reveal why many major banks remain wary of moving to cloud storage, which Capital One had embraced.

Gilroy Shooting Spotlights California Gun Laws

Sunday’s deadly shooting at a garlic festival south of San Francisco has shown how neighboring states render the country’s toughest firearms legislation ineffective. Nineteen-year-old gunman Santino William Legan, shot dead by police, used an “AK-47-type assault rifle” he purchased in more-permissive Nevada. Meanwhile, authorities identified the attack’s three fatalities. “He was only 6,” said the youngest victim’s father. “That’s all I can say.”

How does California stack up? It has the seventh-lowest rate of overall gun deaths, OZY reports, but it’s seen 16 percent of U.S. mass shootings in the past five years, while hosting only 11 percent of the population.

Read OZY’s Special Briefing on California shootings.

Trump Doubles Down on Racial Politics

For the third straight day Monday, President Donald Trump dished out criticism against his Black detractors, taking aim at the Rev. Al Sharpton — claiming on Twitter he “Hates Whites & Cops” — and renewing his attack on Maryland Rep. Elijah Cummings. Those broadsides will help ensure race remains a central part of the political debate, experts say, as the president seeks to rally his predominantly White and rural working-class base with the 2020 presidential campaign heating up.

How could that strategy backfire? Besides providing his liberal opponents with plenty of ammunition, some believe Trump also risks alienating a crucial voting bloc, suburban women, while forcing his Republican allies into an even tighter spot.

Huawei Posts 23% Revenue Growth in Year's First Half

Despite an American-backed global isolation campaign, the Chinese telecommunications giant said it raked in $58.26 billion — up from 15 percent growth during last year’s first half — and that the “organization is as sound as ever.” Huawei has faced a significant supply disruption after U.S. authorities added the firm to a trade blacklist, though it’s been granted a reprieve until Aug. 19 as Beijing and Washington attempt to end their trade war.

What’s the future of 5G? A leading developer of the next-generation technology, Huawei says it now holds 50 contracts with carriers around the world, though it also admits facing “difficulties ahead.”

Also Important...

A gang war in a Brazilian prison yesterday left dozens dead, including 16 inmates who were decapitated. At least 18 people were killed after a Pakistani military plane crashed into homes near the city of Rawalpindi. And American rapper ASAP Rocky goes on trial in Sweden today for assault.

#OZYfact: In 1958, Mao Tse-tung launched the Four Pests Campaign — one of the earliest salvos in his Great Leap Forward — aimed at eradicating rats, flies, mosquitoes and sparrows. Read more on OZY.

OZY is hiring! We’re looking for a creative, organized and ambitious social media manager to engage and expand our online audience. Check out our jobs page and read the description here.

This Moderate Islamic Sect Is Creating Its Own Caliphate

Unrecognized by many traditional Muslims — or by the world’s two largest Muslim-majority nations, Indonesia and Pakistan — the Ahmadiyya sect is emerging as the fastest-growing major strand of Islam. But while the India-rooted, London-based sect is widely persecuted for believing its founder is the Messiah, it also emphasizes charitable work, promotes secular education and is devoid of any connections to radicalism, OZY reports. Now, it’s building a peaceful caliphate, particularly in West Africa.

Can the Ahmadis thrive? Despite catching flak from mainstream Muslim sects, the movement’s apolitical nature means governments often see their practices as harmless.

Reports: Grindr Cleared to Go Public

The Committee on Foreign Investment in the United States reportedly has “no objection” to the move, so the Chinese-owned gay dating app will push forward with its plans for an initial public offering. The panel was said to have national security concerns about Chinese firm Kunlun, which took full control of Los Angeles-based Grindr in 2018. Neither side has commented further.

When will the IPO proceed? That’s still unclear — as is the market in which it’ll list — especially since Kunlun had agreed just a couple months earlier to sell Grindr by mid-2020.

Read OZY’s True Story about getting catfished on Grindr.

Canadian Court Rules West Bank Wines Aren't 'Made in Israel'

In a victory for a movement to boycott Israeli products, a judge in Canada ruled yesterday that wines made in Jewish settlements on the West Bank cannot be labeled, “Made in Israel.” Calling the markings “deceptive,” the federal ruling ended a dispute initiated by Canadian-Jewish human rights activist David Kattenburg, saying the Canadian Food Inspection Authority must reconsider how wines made in the Psagot and Shiloh settlements are labeled.

Will there be a backlash? Apart from Jerusalem itself, pro-Israeli groups in Canada have expressed disappointment after lobbying against Kattenburg’s efforts, saying the court is siding with anti-Israel boycotters.

Katy Perry Loses 'Dark Horse' Copyright Lawsuit

Whether knowingly or not, the prominent pop star copied a 16-second riff from rapper Marcus Gray’s decade-old Christian-rap song Joyful Noise, a Los Angeles jury found yesterday. The song, which features rapper Juicy J, is one of Perry’s biggest hits, having reached No. 1 on the Billboard charts in 2014. A trial to determine damages begins today.

How much will she pay? Unlike other high-profile copyright cases, Perry’s legal team may argue for limited damages, given the modest recognition of Joyful Noise.

Check out this OZY feature on the next pop superstar.

US Soccer Challenges Claim of Pay Disparity

After weeks of high-profile complaints over the pay gap in American soccer, U.S. Soccer Federation President Carlos Cordeiro released figures Monday showing female players were collectively paid $34.1 million between 2010 and 2018 — in contrast to the $26.4 million their male counterparts received. Cordeiro’s claim comes as his organization prepares to enter mediation to resolve a gender discrimination suit brought by members of the U.S. women’s national team, which swept the World Cup this month.

How accurate is the assessment? Critics contend the federation’s report is “a ruse” based on dubious accounting, claiming “any apples-to-apples comparison” would reveal a significant disparity.