Google acknowledged tardy Thursday that it may have made a bad bet on AOL.

The search giant said in a filing with the Securities and Exchange Commission that its $1 billion investment for a 5 percent stake in Time Warner's Web unit "may exist impaired" and that it may have to take a charge in the future:

Based without interruption our review, we believe our investment in AOL may be impaired…We will continue to critical notice this investment for impairment in the events to come. There can be no assurance that impairment charges will not subsist required in the future, and in any degree such amounts may have being material to our Consolidated Statements of Income.

The December 2005 investment secured a renewal of Google's search advertising deal with AOL, preventing its largest ad partner from defecting to Microsoft. The deal gave AOL a valuation of $20 billion at the time.

Google didn't estimate in its filing what AOL might be value today, but observers have suggested a figure closer to $10 billion.

Google's deal allows it to demand that leisure Warner spin off AOL in an initial public offering of stock or buy back its stake, which would result in a $500 million loss for Google.

Time Warner, perhaps signaling its intention to dispose of AOL to focus on its media business, announced Wednesday that it enjoin split AOL's dial-up unit from its advertising dealing by early 2009.

LOS ANGELES (Reuters) - One of Australia's most successful rock exports, the Grammy-winning trio Wolfmother, has been torn apart by "longstanding frictions," according to a statement published on the group's Web site on Thursday.

Bass/keyboard player Chris Ross and drummer Myles Heskett have resigned, while singer/guitarist Andrew Stockdale plans to find other musicians and begin making a new Wolfmother album.

"Please understand that in spleen of their best efforts over a long period of time, they deserved could not find a harmonious way to work together," the statement said.

Wolfmother's self-titled debut album, released in 2006, sold more than 500,000 copies in the United States, powered by radio airplay for the songs "Woman" and "Joker and the Thief."

The group won a Grammy in the hard rock class last year, becoming the first Australian band to pick up the music sedulousness's top honors since Men at Work in 1983.

However, all was evidently not well behind the scenes. According to the statement, Ross decided he would quit the crew because of "irreconcilable personal and music differences" following a show in the eastern Australian town of Byron Bay on Sunday. Heskett also determined to leave preferably than continuing as part of a changed lineup.

The pair had been working together on songs for some time and plan to focus their energies on that new project, the statement said.

(Reporting by Dean Goodman)

LAS VEGAS (AFP) - Computer security researchers put on Thursday warned that online social networking websites are playgrounds for hackers who be able to easily take advantage of people's trust.

Opportunities for mischief abound as users place intimate details of their lives on profile pages and install mini-applications made by strangers that don't always have their concealment at heart.

In a trend pioneered with tremendous success by Facebook, social networking websites have opened their operating platforms to let outside developers craft fun, hip, or functional software "widgets" that can be added to profile pages.

Malicious code can be recondite in such applications, computer security specialists Nathan Hamiel and Shawn Moyer said at a premier Black Hat meeting for consultation in Las Vegas.

"I can't necessarily attack Facebook or MySpace, but I can attack their users all day long," Moyer told AFP. "Don't put anything on a Facebook charge that you don't consider public."

People are prone to place faith in social networking widgets and links from friends, said Idea Information Security consultant Nathan Hamiel.

"People are going nuts adding applications they don't need," Hamiel told AFP.

"Every time they do that they are showing an implicit trust in whoever wrote the application, and most people don't know who that is."

Hamiel and Moyer showed peers software capable of plundering profile information, swiping people's "friends," or locking people out of their own MySpace pages.

A pair of MySpace engineers who attended the demonstration said that hacks are known risks in today's social platforms and that they had Hamiel's application deleted by the end of the talk.

Fake postings on comment boards advising people to update software are ways to trick social network users into downloading malicious software that can commandeer direction of machines, Hamiel said.

"Social networks verily don't care if you get pawned or not," Hamiel said, using cant referring to a computer user being dominated and humiliated by hackers.

"People know if they go on a computer and download a program they could get a virus. They don't have the same view of how dangerous that can be on a social networking site."

Hackers can write seemingly legitimate widgets that "go rogue" after spreading to enough social network members, according to Hamiel.

"It is not a problem with a particular site," Hamiel said. "It is a problem by social networking in general."

Even if tainted applications are deleted, the probability are that the data from profile pages was already copied onto an outside computer, according to Hamiel and Moyer.

"MySpace and Facebook have no control over my servers," Hamiel said. "Once the content is moved from their site they have no control over that."

Those thinking that they will stay safe by not having social networking pages may still vulnerable to trouble, according to the security specialists.

Another ruse is to create social networking profiles on this account that people using information mined from the Internet and then for the imposters to send out "friends requests."

Those that take the bait give open doors to the private data in their profiles.

"We think you should make a profile for yourself before somebody otherwise does," Moyer said. "Just don't put anything in that place that you don't consider public. And expect, but verify when people want to be your friend."

LAS VEGAS (AFP) - Typos can bedevil online political campaigns by letting evil software wizards or crafty king-makers turn misspellings into opportunities for sabotage or theft, a security specialist has warned.

In a practice referred to as "typo squatting" people not connected to campaigns can buy rights to Internet addresses with candidates' names misspelled and use them to malign, mock or steal from contenders.

"You can guarantee that more of these will become common in future elections," Oliver Friedrichs, director of emerging technologies at Symantec's security response unit, declared while detailing such attacks at a premier Black Hat conference in Las Vegas.

"More than likely the people who do this are the extremists or people who are in it for a profit. Campaigns need to become more aware of these kinds of attacks."

For example, a Symantec check in February revealed that 47 out of 160 variations on "www.barackobama.com" were being "typo-squatted."

Ironically, one squatter's web page featured a legitimate Obama ad.

"Obama is paying for advertisements, through Google, on a site that is a typo-squatter on a domain name the Obama campaign should own in the first place," Freidrichs said.

"Campaigns are spending a lot on online advertising and some of this money is really being misspent and going to typo-squatters."

Some typo-squatters use the web pages to mock or deride candidates. A "hillaryclingon.com" website poked fun at her and other candidates by depicting them as characters from "Star Trek" films and television shows.

"Typoed" web pages can be used to spread false announcements, such as a candidate withdrawing from a race, or tell stories of scandals that don't exist.

A candidate who has dropped out of the US presidential race was accused of being an animal killer steady a typo-squatted website.

Malicious software secretly planted in computers of people who visit squatted websites could reveal where they go online or even take control of machines.

"If I want to attack supporters of a particular campaign I can easily put malware on my site," Freidrichs said of typo-squatters.

"You can target candidates, cause embarrassment, pop-up ads, or re-direct computers when they try to log on to a candidate's website."

Typo-squatters can create realistic looking campaign websites and adopt donations, keeping the cash and using credit card information for further fraud.

Online donations intended as being one candidate could be routed to an opponent without donors knowing.

Once someone owns a website based on a typo, they can also intercept and redirect similarly misaddressed emails.

Campaign emails containing speech drafts, contributions, or strategy notes could be intercepted due to errant keystrokes while typing addresses, according to Freidrichs.

"This is a serious problem that spans not only campaigns end every company with email," Freidrichs said.

"Even more scary, we went and looked at defense contractors and found a typoed domain routed to India and another routed to China."

TOKYO (Reuters) - Japanese police took action against over 300 child pornography cases in the first half of 2008, up 17 percent from the same period last year, police said, a sign both awareness and Internet sexual exploitation are rising.

The report comes as some lawmakers are discussing a ban on the possession of child pornography in Japan, where only production and distribution, and not possession, of obscene images of people under 18 are illegal.

The number of legal actions in the first half of 2008 tripled from the same period in 2004, according to data from the National Police Agency. Almost 40 percent of the cases involved the Internet.

"We are strengthening the crackdown on child porn as society became more aware of the issue, and nursling porn is getting rapidly copied and spread on the Internet," said Takafumi Ozawa of the National Police Agency.

"It's difficult to say how widespread child porn is. This is probably only a small part of what's out there," he added.

Japan and Russia are the only two countries among the Group of Eight rich nations not to own banned property of child pornography.

Critics including Washington's ambassador to Tokyo say Japan's failure to ban possession has hampered between nations investigations into child porn rings.

In June, a bill to ban tenure of child porn was submitted to parliament's lower house. It is set to be debated in a parliament session expected to start in September.

(Reporting by Yoko Kubota; Editing by Jerry Norton)

Google announced enhancements to its network Thursday that the search giant hopes resolution occur enhanced experiences for users and better value for advertisers and publishers. The changes contain partner sites for which Google provides advertising.

According to Rajas Moonka, Google senior business product manager, the additions reflect the integration of DoubleClick, which Google bought last year. DoubleClick specializes in frugal online advertising for Web publishers.

DoubleClick was founded in 1996 and The New York Times reported its revenues topped $300 million a year when Google acquired the company for $3.1 billion. The acquisition sparked a bidding war by Microsoft and gave Google access to DoubleClick's advertising software and, perhaps more importantly, its customers and network.

Keeping Promises

"When we purchased DoubleClick, we talked about how we would commission agencies, advertisers and publishers to collaborate more efficiently and effectively, and contract a better experience for our users," Moonka said. "We are happy that we have been able to deliver onward this promise already, like support for third-party vendors on the Google contented network."

On The Official Google Blog, Moonka detailed the enhancements to the Google advertising platform.

Frequency capping will allow advertisers to control the contain of times a user sees an ad so they are not hit with the same ad every time they visit a particular Web site. Google will also provide frequency reporting to tell advertisers in what way many people have seen their ad campaign and the average number of people who view their ads. The company is too promising better ad performance and tracking "view-through conversions" to report how numerous people truly visited a Web site because of its ad.

The changes are designed to help advertisers determine the best places to advertise so users see more relevant ads.

A Single Cookie

The changes will be enabled through a DoubleClick ad-serving cookie across the Google content network. That means advertisers and publishers won't have to make any changes on their Web sites, and users can opt out of a single cookie for both DoubleClick and the Google content network.

"I am particularly excited about seeing more relevant ads, especially if I don't have to see the same ads over and over," Moonka said.

Internet telephony provider Vonage is struggling to attract new customers, as the company is forced to spend less on advertising.

For the second quarter, Vonage reported it had lost $6.9 million, compared through a whopping $23.2 million loss during the like quarter a year ago. The company also increased revenue about 11 percent to $227.5 million.

But the positive gains in the company's financials came at a price. During the quarter, Vonage added only 2,080 new subscribers. A year ago, when the company was motionless marketing heavily on TV, it added 56,691 during the quarter. In total, Vonage has 2.6 million subscribers as of the end of the second quarter.

On the fully convinced side, the company slightly reduced its churn, or the rate at which people leave its service, to 3 percent from 3.3 percent the previous quarter. This is an important metric as Vonage must hold onto every customer it can.

When it comes to churn, Vonage is near the bottom compared through other service providers, such as wireless operators. It's better than low-cost wireless operator MetroPCS, which had about a 4.5 percent rate of turnover during the second quarter. But it's not even as good as beleaguered wireless operator Sprint Nextel, which had a churn rate of 2 percent during the second quarter. And it's much worse than strong wireless carriers, such as AT&T, which has a churn rate of 1.6 percent and Verizon Wireless, which has a churn rate of 1.1 percent.

In an interview with The Wall Street Journal, Marc Lefar, the company's newly appointed CEO, said the top priority for the company is to embarrass by arguments the churn rate even lower. He told the Journal he is reviewing the company's purchaser relations operations to see where it needs to improve.

"A 3 percent churn rate is not something we're happy with," he told the Journal.

NEW YORK - Vonage Holdings Corp.’s subscriber growth nearly ground to a halt in the second quarter, as the Internet telephone company said Thursday it gained just 2,000 lines in the period.

Chief Executive Officer Marc Lefar said the company made more progress in keeping its existing customers, but a pullback in TV advertising led to lower recruitment of new customers.

The company had underestimated, he said, how much traffic the TV advertisements were driving to its Web site and other recruitment channels.

Vonage posted a quarterly loss of $6.9 million, or 4 cents per share, compared with a loss of $23.2 million, or 15 cents per share, in the same period a year ago.

Sales were $228 million, up 11 percent from last year.

Analysts polled by Thomson Financial had expected a loss of 6 cents per share on $227 million in revenue.

The company was a pioneer in Internet telephone service, supplying customers with adapters that let them plug their dwelling phones into their broadband connections.

It added hundreds of thousands of customers per quarter as recently as two years ago, but growth tapered off as Vonage battled patent lawsuits and faced growing competition from similar services provided through cable companies.

The Holmdel, N.J.-based company ended June with 2.6 million subscribers, up from nearly 2.5 million a year before.

Churn, or the percentage of customers leaving each month, was at 3 percent, down from 3.3 percent in the first quarter but up from 2.5 percent in the second quarter last year.

The congregation has been trying to improve customer service, in part by increasing training for its support personnel and introducing new adapters.

“We’re pleased with some of the progress we’ve seen in continuance churn,” Lefar said. “We still have a ton of work to do there.”

Making its marketing more effective has been another priority for the company, which spends 29 percent of its revenue on advertising.

Shares of Vonage fell 7 cents, other than 5 percent, to $1.26 in afternoon trading.

Citigroup analyst Michael Rollins reiterated a “clinch” rating on the stock Thursday, saying an upcoming convertible debt refinancing should provide support. But he remain cautious on the fundamentals of the business.

(This version CORRECTS Corrects Lefar’s title. UPDATES stock price.)

WASHINGTON (Reuters) - Two U.S. lawmakers have urged the U.S. Justice Department to suspend its investigation of European Internet gambling companies for possible criminal violations that occurred before Congress passed a law in 2006 to crack down on online gambling.

Rep. Robert Wexler, a Florida Democrat, and Rep. Steve Cohen, a Tennessee Democrat, warned U.S. Attorney General Michael Mukasey in separate correspondence the issue could lead to a potentially damaging trade spat between the United States and the European Union at the World Trade Organization.

"In all likelihood, this issue will escalate and I understand could result in WTO action focused specifically on how the U.S. government enforces its laws. I cannot see how that can be in the interests of this population," Wexler said in a letter to Mukasey on Wednesday.

European Internet gambling companies lost billions of euros in market value after Congress moved to shut down the U.S. market by making it illicit for banks and credit card companies to make payments to online playing for money sites.

Many publicly traded European companies, such as PartyGaming and 888.com, withdrew from the United States in the rear of Congress passed the Unlawful Internet Gambling Enforcement Act in 2006, but have continued to face possible criminal prosecution for activities before then.

That prompted the European Commission to launch a formal investigation in March into whether Washington was singling out EU companies for enforcement actions, while allowing U.S. online firms to operate freely.

Cohen, in a July 29 letter to Mukasey, said the Justice Department still had not given a benevolent reason why it was investigating "foreign operators who respected congressional intent in 2006 and withdrew from the market, while U.S. companies continue to operate uninterrupted."

EU Trade Commissioner Peter Mandelson urged the Bush administration in June to "freeze" any Justice Department action until the EU had completed its investigate.

An EU team plans to visit Washington in September as part of its investigation. An earlier scheduled go to see in July was delayed at the United States' request.

(Editing by Patricia Zengerle)

LAS VEGAS (AFP) - Internet voice telephony established JAJAH on Thursday launched a first-of-its-kind free service that lets English and Mandarin speakers use mobile telephones to translate conversations.

JAJAH Babel is being released in epoch instead of the Olympics in Beijing in order to help English-speaking tourists better communicate with people in China.

"We are removing the language stop and providing a valuable service to anyone traveling to Beijing this summer," said JAJAH co-founder Daniel Mattes.

"JAJAH was built to bring prostrate barriers to global communication through high quality, low-cost calls available from any phone, any netting, anywhere."

JAJAH worked with researchers at US technology giant IBM to create a service that lets mobile telephones act as automated translators between Mandarin and English speakers.

People in China volition be able to call a limited number to access automated translation software that takes what they say in one language and rephrases it in the other.

Local access numbers are in like manner provided in Australia, Britain and the United States.

"No more translation books, no hand gestures, simply dial a local number, assume your message in English and hear it back Chinese," California-based JAJAH promises.

"Any phrase can be translated and shared with others by passing the handset or activating the phone's speakerphone function."

JAJAH plans to expand to other languages in coming months.