Theranos and Elizabeth Holmes: Scamming in Modern Time

Theranos and Elizabeth Holmes: Scamming in Modern Time
In the world of scamming the story of Victor Lustig is one of the most amazing and unbelievable ones. Lustig, a professional con man, was successful in selling the Eiffel Tower. Although this case was not very old, it happened at a time where there was no computer, Internet or any mass communication.

In 1925, while living in Paris, Lustig observed the discussion in the French newspapers about the problem with the cost of maintenance of the Eiffel Tower. The Eiffel Tower was the entrance to the 1889 World's Fair, and as the construction of it finished, the problem with the cost of maintenance inspired Lustig for his scam. After hiring a forger to produce fake government stationery, he got ready to start. To proceed with his plan, Lustig invited a small group of metal dealers to a confidential meeting at a luxurious hotel, presenting himself as Deputy Director General of the Ministère de Postes et Télégraphes. In the meeting with the metal dealers, he was able to convince them that the Eiffel Tower was becoming too much for Paris. Thus, he conveyed that the French government wished to sell it so that the metal could be reused but underlined that the government did not want this information to be revealed since it might be controversial and create reactions from the population. This is why nothing could be disclosed until all the details were thought out. During the meeting, he paid attention to who could be the most likely to fall for his scam. He found André Poisson as the person most probable to fall to his fraud, somebody who he felt as eager to rise amongst the inner circles of the Parisian business community and the one who showed the most interest in purchasing the monument. He then arranged a private meeting with Poisson and made him believe that he was a corrupt official and convinced him to pay a hefty bribe to secure ownership of the Eiffel Tower. Once Lustig received his bribe and the funds for the monument, he fled to Austria.

The Lustig story seems unbelievable in today's world, but we might think that was possible at that time since people did not have the level of communication that we enjoy today.

Now let’s look at the story of Elizabeth Holmes and her company Theranos as it is a story parallel to the Lustig case.

Elizabeth Holmes, a young woman who was admitted to Stanford University, dropped out to found her company Theranos in 2003 at the age of 19. She observed that the business of blood tests was enormous and with many analyses conducted every day it was a vast industry. In addition to that, every politician would love to bring this cost down, as that was an appealing issue for the population in regards to healthcare. She claimed that she had the technologies to analyze blood with just a drop of it; thus, no need for precious blood taking procedures and physician prescriptions. She claimed that she had the technology to do so. Theranos quickly raised more than $700 million from venture capitalists, and private investors and the company in 2014 was valued at $10 billion. Elizabeth Holmes claimed that Theranos "Edison" machine was capable of performing hundreds of tests with just with one drop of blood.  Despite experts' opinions who qualified the process technically impossible, Holmes continued her claim, and the company signed up with Safeway and CVS pharmacy and the Cleveland Clinic as a partner. The company was kept private so as not to provide the details of how they did their work. Holmes was able to convince many political leaders and business leaders to have their backing. She also invited many of them to join her company's board, and this included: former U.S. Secretary of State George P. Shultz, William Perry (former U.S. Secretary of Defense), Henry Kissinger (former U.S. Secretary of State), Sam Nunn (former U.S. Senator), Bill Frist (former U.S. Senator and heart-transplant surgeon), Gary Roughead (Admiral, USN, retired), James Mattis (General, USMC), Richard Kovacevich (former Wells Fargo Chairman and CEO) and Riley Bechtel (chairman of the board and former CEO at Bechtel Group).

In short, Elizabeth Holmes and her partner Ramesh "Sunny" Balwani never had any technology to do what they were claiming, and by closely monitoring every employee they were successful in keeping this secret until the investigative journalist John Carreyrou of The Wall Street Journal questioned the validity of Theranos' technology. And the final episode was played out on September 4, 2018, when Theranos announced that it would cease operations and release its assets and remaining cash to creditors after all efforts to find a buyer came to nothing. Most of the company's remaining employees were laid off on the previous Friday, August 31.

For those who might be interested in knowing more, I would recommend watching an excellent HBO documentary “The Inventor: Out for Blood in Silicon Valley” directed and produced by Alex Gibney, or read “Bad Blood: Secrets and Lies in a Silicon Valley Startup," by John Carreyrou.

Looking at these two stories we see many parallel points. However, the extent of this scamming is much more significant than the Lustig bribery case especially considering, of course, the context and time. It is astonishing to see that in the 21st century, in Silicon Valley (reputed as the most technologically advanced area in the world), such a case of scamming and fraud could occur for over 15 years. The main question that needs to be answered is who were the people who benefited from this scam.

Interestingly, this case did not have a lot of coverage in the press and media. Maybe too many high profile people were involved.

In cybersecurity, we still see many people fall victim to Phishing emails or social engineering. If we can scam and make a very elite group people believe in an impossible case, then how can we blame an individual for falling victim to a phishing mail?!

Abbas Moallem

Published in HCI International News, Number 95, May 2019
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Gibney Alex (2019): “The Inventor: Out for Blood in Silicon Valley” HBO Documentary, 1h 59m, Initial release: January 24, 2019

https://www.hbo.com/documentaries/the-inventor-out-for-blood-in-silicon-valley/about

Carreyrou John, Siconolfi Michael and Weaver Christopher (2016): “Theranos Dealt Sharp Blow as Elizabeth Holmes Is Banned From Operating Labs" The Wall Street Journal, July 8, 2016.

https://www.wsj.com/articles/u-s-regulator-bans-theranos-ceo-elizabeth-holmes-from-operating-labs-for-two-years-1467956064

Carreyrou John (2018): “Bad Blood: Secrets and Lies in a Silicon Valley Startup by John Carreyrou", Knopf Publishing Group, May 21st, 2018.

A Quick Look at Educational Programs in Cyber Security and Human Factors

The "human agent" is at the center of all security systems. According to
IBM, 95 percent of all security incidents involve human error. [5] One can
assume that human factors should be one of the main areas utilized to
educate future security experts. Developing an understanding of human
behavior must become a focal area for future experts from both a human
computer interaction point of view and a pure human factors perspective.

A quick look at 25 educational programs [6] in the cyber security area
reveals that the educational programs are only offered to postgraduates in
the U.S. Most of the offered programs are within the Eastern U.S.

Looking at the courses offered in this area reveals no base standard for the
content of programs. Among 70 topics identified only the following are
offered by multiple institutions: Forensics (12), Cryptography (8),
Information Assurance (9), Information Security (10), Information Technology
(6), Network Security (10) and Security Management (4).

It is interesting to observe that among these entire programs only one
institution offers a course on "Human Factors and Managing Risk" (Norwich
University Online). Even this course is still not a full human factors
course.

Many private enterprises seem to hire their security analysts from fields
like psychology and the social sciences due to a lack of resources invested
in the study of cyber security. This only emphasizes a crucial need for
courses in human factors and cyber security not only to be offered more
widely as graduate programs but also offered within undergraduate programs.
-

In this area I believe the AHFEI by organizing the "2nd International
Conference on Human Factors in Cybersecurity" has an important role to play
in promoting awareness and communicating the importance of incorporating
human factors within our educational programs.

Abbas Moallem, Ph.D.

Published AHFEI NEWS, FEb 2016

UI Architect Vs. UX Architect

Within the field of Human Computer Interaction and specifically in the area of user interface design, usability and user experience (all different ways of expressing a similar concept), there is some confusion among many hiring managers, recruiters and human resource professionals about the difference between a “UX Architect” and “UI Architect”. As a result, many job offerings and job descriptions use these two interchangeably. 

Some years ago, due to the limited number of opportunities in user experience, the term “UX Architect” did not exist in job rankings and “UI Architect” was generally used for both. Today’s market has extensively changed. User interface design includes two distinct areas that is Design and implementation of the design in terms of UI. Professionals who are specialized in user research, user interface design, prototyping and usability testing and evaluation often do not have any specific software engineering or coding experience. On the other hand, the professionals who are doing UI development implementation of UI design created by the first group are often not trained in the field of HCI.

Consequently, “UX architect” generally refers to senior level user interface designers with advanced knowledge of HCI who are not necessarily experts in UI implementation or any type of coding but have knowledge of the UI and capabilities.

On the other hand, "UI architect" refers to experts in UI development and UI technologies and coding.

Thus if you need somebody to supervise and manage your UI development then you need a “UI architect” but if you want to create a user  interface design from concept to evaluation then you might look for a “UX architect”.

Abbas 

Should We Fear Artificial Intelligence?

Science-Fiction movies often depict human made machines or robots destroying their creators, invading planets, and bringing an end to humanity. A few examples from a long list include I, Robot (2004), Artificial Intelligence (2001), Terminator (1984) and The Matrix (1999). Even the brilliant Stephen Hawking warns us that in fact “artificial intelligence could end mankind” (1). In light of the prevalence of this discussion, the question rises of how it may be a topic deserving of more attention within the HCI community. After all we are investigating ‘Human-Computer Interaction’. Should we not open a discussion on this topic as one deserving of research and conferences?

Professor Hawking’s main fear is that a new machine might be able to redesign and reinvent itself since it is not dependent on biological evolution. Hawking himself has for a longtime used an A.I. machine to communicate, giving him the experience to perhaps support his warning.

Elon Musk [2], the product architect of Tesla, has invested $10 million to try and keep A.I. friendly—or under control. He also shares a fear of A.I. When Bill Gates [3] was asked about his own thoughts, he said that he stands “in the camp that is concerned about super intelligence. First the machines will do a lot of jobs for us and not be super intelligent. That should be positive if we manage it well.”

On the other side, there are some scientific and industrialist minds that consider the risk exaggerated [4]. However, given the prevalence of the discussion regarding artificial intelligence, do you think there should be a larger focus on the matter within the HCI community?

A.M.

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[1]“Stephen Hawking warns artificial intelligence could end mankind,” BBC, 2 December 2014.

http://www.bbc.com/news/technology-30290540

[2]Why Elon Musk Spent $10 Million To Keep Artificial Intelligence Friendly,” Forbes, 15 January 2015.

http://www.forbes.com/sites/ericmack/2015/01/15/elon-musk-puts-down-10-million-to-fight-skynet/

[3]“Bill Gates Says You Should Worry About Artificial Intelligence, Forbes, 1 January, 2015.

http://www.forbes.com/sites/ericmack/2015/01/28/bill-gates-also-worries-artificial-intelligence-is-a-threat/

[4]“Scientists say AI fears unfounded, could hinder tech advances,” Computerworld, Jan 29, 2015.

http://www.computerworld.com/article/2877617/scientists-say-ai-fears-unfounded-could-hinder-tech-advances.html

Published in HCII NEWS News, March, 2015

Book Review: Ewolucja Form Sprzetow Do Siedzenia (Evolution of Sitting Furniture Forms From Prehistory to the Machine Age) In Polish

In this amazing book on the history of chairs, Jerzy Charytonowicz provides us with an extraordinary voyage through time with this common object, one that we use every day and sits center stage in the field of ergonomics. If you want to create an expose or lecture on chairs, this book is a must.

While the book is in Polish, a language not accessible to most readers including myself, there is an in-depth English summary included at the end. The book itself includes an immense number of museum pictures and drawings that will enable you to see how “from the very beginning, furniture for sitting has comprised constructions whose dimensions and forms were determined by the shape and size of the human body. That kind of furniture, thus, frequently became ‘prints’ of the human body (according to this principle ergonomic constructions for sitting were shaped), and remained without a user it was designated for, the furniture became a symbol always associated with a man and was referred to as ‘empty chair’ - left by someone or waiting for someone. Chairs sculptured, adorned with intarsia, painted or decorated with various materials always exhibited a level of craftsmanship specific to a certain historical period, types of available materials, tools and a level of manufacture technology as well as social needs, artistic ideas, becoming a source of information about the time they originated in. As one of the most formally varied type of furniture, always being in the direct contact with man, chairs have always intrigued artists and architects becoming an object of various creative experiments. Designing furniture for sitting gave artists an opportunity to integrate their technical and anthropological knowledge, knowledge about the surrounding world and people's needs, and it also provided a chance to apply new materials and professional experience. Therefore, as history shows, the most frequently designed furniture for sitting was of concern to architects treating it as an integral part of designed buildings and manifestation of their artistic ideas.”

I found the reading and viewing of the pictures to be an enjoyable experience, one that can be undoubtedly shared by others.

A.M.

Ewolucja Form Sprzetow Do Siedzenia (Evolution of Sitting Furniture Forms From Prehistory to the Machine Age) by Jerzy Charytonowicz, Edition WROCLSW, 20017. ISBN 978-83-7493-328-5- In Polish

Published in AHFE International News, August, 2014

HCII 2014 is over

We thank all participants of the HCII 2014 Conference, held in Crete, Greece, 22-27 June and look forward to welcoming you all again in Los Angeles, CA, USA for HCII 2015. 

The HCII 2014 conference was held under the auspices of 14 international boards comprising 342 members from 38 countries.

Close to 2.000 people from 73 countries attended this year’s conference.  In 244 sessions, 1476 papers were presented and 225 posters were displayed. 

This year’s keynote speaker was Dr. James R. (Jim) Lewis (IBM, USA). His speech, entitled "Usability: Lessons Learned ... and Yet to Be Learned", reviewed five of the persistent controversies in the field of usability, providing a historical perspective and a pragmatic assessment of their current status.  A companion article in the International Journal of Human-Computer Interaction is available at no charge for a limited period of time at:
http://www.tandfonline.com/doi/full/10.1080/10447318.2014.930311#.U7WWdRDw_0o

One of the most outstanding features of the HCI International conferences is the variety of cultures and institutions that are represented by the contributing participants. With hundreds of papers and sessions to consider, it is truly challenging to choose an area that stood out in popularity and interest. Yet, there was a multitude of research on gestures and haptic interfaces, cognitive modeling, virtual reality and healthcare. This was the content of just some of the many well-attended sessions.

During the opening session of HCII 2014 sixteen awards were conferred. Fourteen awards were conferred to the best papers in each Affiliated Conference / Thematic Area. Among these fourteen best papers, one paper was selected as Best HCI International 2014 Conference paper. Finally, the Best Poster also received an award. For more information, please visit the conference website at: http://www.hcii2014.org/awards

Looking forward to seeing everyone at Los Angeles in 2015.

A.M.

Published in: HCI International NEWS - July 2014 - Number 66

Book Review: Designing with the Mind in Mind

In the 14 chapters of this book the authors provide an excellent selection of topics and examples that constitutes necessary knowledge for everyone involved in designing user interfaces, and perhaps even all software engineers. 
The book starts by reviewing human perception (Chapter 1), followed by vision and visual perception, visual structure (chapter 2 and 3), color blindness (chapter 4), and peripheral vision (chapter 5).
Reading, attention, learning, decision making and aim movement are covered by focusing on areas that are really relevant to HCI and user interface design.
The book is easy to read for novice audiences, students and particularly practitioners. It is well illustrated with plenty of examples.
One missing topic might be a chapter on movement and touch, necessary for interaction design for touch screens.

Designing with the Mind in Mind: Simple Guide to Understanding User Interface Design Guidelines, by Jeff Johnson
Second Edition, Morgan Kaufmann is an imprint of Elsevier, Press, 2014, ISBN: 978-0-12-407914-4
https://www.elsevier.com/books/designing-with-the-mind-in-mind/johnson/978-0-12-407914-4 

HCI International NEWS - May 2014 - Number 65