Electronic Data Systems Corp. has agreed to pay US$122.7 million to settle a dispute with the British government's tax agency over IT problems in the Child Tax Credit and Working Tax Credits system project, which was overseen by EDS. The agreement terminates a claim by HM Revenue and Customs. The agency said the system overpaid tax credits to as many as 1.9 million families due to the problems.

Samsung to Build Chips for Qualcomm

Qualcomm Inc. has tapped Samsung Electronics Co. Ltd. to manufacture wireless chip sets. Samsung will produce CDMA and W-CDMA wireless chip sets for Qualcomm. The chips, which are used in cell phones, will be produced using 90-nanometer process technology. More-advanced processes will be employed in the future. Financial details of the deal weren't disclosed.

FBI Warns of Fraudulent E-mail

The FBI is warning computer users not to open a widely circulating e-mail that falsely claims to have been sent by U.S. authorities. The note tries to trick users into installing a variant of the Sober worm by claiming that they have been spotted on "illegal Web sites" and asking them to click on a "list of questions." The FBI said it "does not engage in the practice of sending unsolicited e-mails to the public."