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iStock/Thinkstock(WASHINGTON) — The cost of filling up the tank is still increasing across the U.S. The price of regular unleaded gas increased about 4 cents in the past week to $2.24 a gallon, according to the latest figures from the Department of Energy.

For three consecutive weeks, U.S. gas prices have inched higher as oil prices also rallied.

But even as fuel prices move higher, U.S. drivers have enjoyed a summer with the cheapest gas prices in about a decade. In fact, Americans are still paying 27 cents less than they were on this date a year ago.

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Jamie McCarthy/Getty Images(NEW YORK) -- Fox News has responded to a lawsuit filed by one of its former female staff members alleging sexual harassment, saying that Andrea Tantaros “is not a victim; she is an opportunist” and that her “unverified” lawsuit “bears all the hallmarks of the ‘wannabe’.”

Earlier this month, Tantaros became the latest female Fox News staff member to claim sexual harassment at work when she alleged that the popular cable news network “operates like a sex-fueled, Playboy Mansion-like cult, steeped in intimidation, indecency, and misogyny,” and that she was subject to alleged sexual harassment by former Fox News boss Roger Ailes as well as by former Sen. Scott Brown. Both have denied the allegations.

The misconduct, she claimed, was condoned by top brass at Fox News, some of whom were promoted in the wake of Ailes' widely publicized departure in July.

Seeking to move the dispute to arbitration, Fox News said that Tantaros never complained of harassment by Ailes “in the course of an investigation months ago,” according to court documents obtained by ABC News.

Judd Burstein, a lawyer for Tantaros, hit back on Monday in an email to ABC News. “If Mr. Shine and his minions are innocent, why do they want this dispute to be resolved in the shadows?” Burstein said, referring to arbitration, the proceedings of which would presumably remain confidential. “An innocent person would be so outraged that he or she would want public vindication.”

The documents claim that another lawyer for Tantaros did not return a call from a law firm conducting an internal investigation into allegations made by several women against Ailes.

Burstein said that the charge of the unreturned phone call was “absolutely false.”

He added: “Even if it were true, why is it that Paul Weiss never reached out to me after this lawsuit was filed?”

In separate filings, Ailes’ lawyers also called for the case to be moved to arbitration, calling the allegations “false” and saying her lawsuit was “full of lies and halftruths.”

“From the first page of her Complaint, Ms. Tantaros reverts to tabloid fodder, smearing Mr. Ailes based on no findings of any court or body of competent jurisdiction, and certainly not on her own experience, since she was never harassed by Mr. Ailes,” the lawyers said. “As the Fox News Defendants’ brief makes clear, not once did Ms. Tantaros ever complain that Mr. Ailes had sexually harassed her, much less that she had been retaliated against as a result.”

Burstein also responded to Ailes’ lawyers’ separate filing, saying, “Fox News has all but acknowledged that Roger Ailes did sexually harass Andrea Tantaros because its lawyers are representing every defendant in the suit other than Roger Ailes.”

“They have dropped him like the proverbial hot potato in the hope that his former cabal members can continue in place,” he added.

Ailes left the network in July.

The Fox News documents provided to ABC News by the media company only briefly mention the allegations made against Brown, saying: “His interactions with Tantaros were professional and cordial, and in full view of other personnel and talent.”

In her filing earlier this month, Tantaros said that Brown “made a number of sexually inappropriate comments to Tantaros on set” during an appearance on “Outnumbered,” a program she hosted. She also alleged that the former senator said she “would be fun to go to a nightclub with,” and “snuck up behind” her while she was buying lunch and “put his hands on her lower waist.”

Brown, who represented Massachusetts in the Senate from 2010 until 2013, has called the accusations “false,” according to the Boston Globe.

In an email to the newspaper after news of the suit first broke, Brown said: “Her statement about our limited on air, green room interactions are false.”

“There were never any circumstances of any kind whatsoever in which I had any interaction with her or any other employee at Fox, outside the studio,” he told the newspaper. He said that all interactions were “always in full view of all staff, personnel and talent.”

He added that any other encounters were “professional and cordial,” according to the paper.

Tantaros is not the first person to allege sexual misconduct at Fox News.

Former morning and daytime host Gretchen Carlson filed a lawsuit earlier this summer after 11 years at the company, claiming that Ailes had “sabotaged” her career after she “refused his sexual advances,” and that her job was terminated in retaliation for rebuffing him and complaining to him about sexual harassment.

Fox News and Ailes have denied Carlson's allegations in the past, calling it a "retaliatory suit for the network's decision not to renew her contract" because of "disappointingly low ratings."

Shortly before Ailes' resignation, New York magazine published a story citing unnamed sources who claimed that another Fox News host, Megyn Kelly, had “told investigators that Ailes made unwanted sexual advances towards her about [10] years ago.”

After that story's publication, Susan Estrich, Ailes' lawyer, told ABC News that her client “never sexually harassed Megyn Kelly.”

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iStock/Thinkstock(NEW YORK) -- After losses Friday, Wall Street rebounded as investors appeared to relax over Fed Chair Janet Yellen's comments on a possible interest rate hike.

The Dow jumped 107.59 ( 0.58 percent) to finish at 18,502.99.

The Nasdaq gained 13.41 ( 0.26 percent) to close at 5,232.33, while the S&P 500 finished at 2,180.38, up 11.34 ( 0.52 percent) from its open.

Crude oil slid over 1 percent with prices hitting about $47 a barrel.

Federal Reserve: Yellen told a conference of central bankers in Jackson Hole, Wyoming, last week that the U.S. economy might be strong enough for an interest rate hike. Though she did not cite when a rate hike might come, she said she believed "the case for an increase in the federal funds rate has strengthened in recent months."

Mylan:
EpiPen maker Mylan announced it will begin to sell a cheaper generic version after the company came under fire for raising prices. Mylan hiked the price of the EpiPen from  approximately $100 in 2009 to more than $600 in 2016. The generic version will sell for about half the price of the original EpiPen, according to Mylan.

J.Crew: J.Crew will sell a collection at select Nordstrom stores in an effort to boost sales for the company. Madewell, a J.Crew brand, has already been selling some clothing items at the fashion retailer since last year.

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ABCNews.com(MIDDLETOWN, Calif.) -- When the Valley Fire swept through Lake County, California, it left devastation in its wake.

Bill and Shaun Roderick from Middletown lost everything in the wildfire that was one of California’s biggest, but even though people in the community were devastated, they were also tremendously touched by the Rodericks' selflessness.

The high school sweethearts –- Bill is the principal at Middletown High School and his wife is a teacher and adviser there -– had only the clothes on their backs but they took charge, helping the 90 students and many school staffers who lost their homes with financial aid, clothing donations and support.

The Rodericks, who are both 42, even turned down donations for themselves, choosing instead to give them to the students.

"They just only cared about the school. They put everything else on hold," Marcella Nikolov, a parent, said.

Student Audrey Showen described the Rodericks as "the wheels of the school."

The Rodericks and their daughters Tori and Taelor are still living in an RV as their home is being rebuilt. The fire destroyed more than 175 structures and forced thousands of residents to evacuate the area.

Authorities have made an arrest in connection with this and several other fires in the area in the past year. The blazes are believed to be cases of arson, authorities have said.

Meanwhile, it's not just the community that's been inspired by the Rodericks' example.

"It makes me proud of them ... my mom, a bunch of the kids that lost their house would go to her and talk to her," Taelor said of her parents.

GMA was so moved by the Rodericks' commitment to their students and school that it surprised them with a vacation to Aulani, a Disney resort and spa on Oahu, Hawaii.

There, the family enjoyed a traditional welcome, along with other highlights included the winding lazy river and a visit to the Rainbow Reef. They sailed on the ocean, dined on local specialties and took lots of selfies to cherish.

The Walt Disney Company is the parent company of ABC News.

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Sean Gallup/Getty Images(NEW YORK) — After facing accusations that Facebook's staff were being biased in their selection of stories for prominent placement on users’ newsfeeds, the company has announced that it is streamlining its “Trending” module so that the selection of topics is more automated.

The social media giant said that the selection of stories would be “more algorithmically driven,” and would no longer features a description written by human beings -- just a topic.

For more information, users will have to hover over a topic with their mouse, at which point they will see a snippet from “an automatically selected original news story.”

Humans will continue to oversee the software selection to ensure that topics selected are indeed newsworthy and not about everyday -- some might say banal -- topics like “#lunch,” according to a blog post on the company’s website.

Human influence over the section, which has the ability to bring lots of eyeballs to news topics, has been the topic of heated controversy in recent months after a Gizmodo report in May in which an unnamed former journalist who worked on the project said that staff “routinely suppressed news stories of interest to conservative readers.”

In wake of the report, Facebook was forced to release more information about how the module -- which sits prominently just to the left of users’ newsfeeds -- worked.

The company has said that it “looked into these claims and found no evidence of systematic bias,” but that making the changes, “allows our team to make fewer individual decisions about topics.”

Facebook did not immediately respond to ABC News’ request for comment. But in the blog post announcing the change, the company said that it was a “platform for all ideas, and we’re committed to maintaining Trending as a way for people to access a breadth of ideas and commentary about a variety of topics.”

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Justin Sullivan/Getty Images(NEW YORK) — Changes announced by WhatsApp have drawn the ire of privacy advocates, who say that the messaging service's plan to share user data with parent company Facebook is against the law and should be blocked.

The changes will allow the popular app — which says it has more than one billion users — to "coordinate more with Facebook" by sharing the user data, they said. The move prompted The Electronic Privacy Information Center (EPIC) and the Center for Digital Democracy to announce they would be filing a complaint with the Federal Trade Commission (FTC).

WhatsApp says will allow the companies to better fight spam, track basic usage statistics and display more relevant advertisements and friend suggestions to users.

In other words, Facebook would be able to use phonebook data from WhatsApp to help users find friends who they chat with on WhatsApp, but who they have not "friended" on Facebook, a WhatsApp spokesperson told ABC News.

The messaging service insists that the contents of users’ messages, "stay private and no one else can read them. Not WhatsApp, not Facebook, nor anyone else," when they’re encrypted, and maintains that banner advertisements will continue to be barred within its app.

Users can decide to opt-out of the changes, though some time restrictions apply.

"WhatsApp complies with applicable laws. As always, we consider our obligations when designing updates like this," a WhatsApp spokesperson said. "We’ve made our terms and privacy policy easily accessible, provided an overview of the key updates, and empowered people to make decisions that are right for them, including offering a control for existing users over how their data can be used."

However, even the basic sharing of user data has generated controversy.

Facebook acquired the messaging service in 2014 for $22 billion, according to Bloomberg.

At the time the acquisition was announced, a blog post on the WhatsApp website told users, "Here’s what will change for you, our users: nothing," and said "WhatsApp will remain autonomous and operate independently."

The blog post — from February, 2014 — does not explicitly rule out data sharing with the parent company.

In a complaint
filed with the FTC a few weeks after the acquisition was announced, EPIC said, “WhatsApp built a user base based on its commitment not to collect user data for advertising revenue,” and noting that “Facebook routinely makes use of user information for advertising purposes,” claimed that it intended to use WhatsApp user data for this purpose.

Facebook, like many free online services, uses user data to target advertising at users that is relevant to their interests.

Therefore, EPIC claimed, that the acquisition would "violate WhatsApp users’ understanding of their exposure to online advertising and constitutes an unfair and deceptive trade practice," which it claimed would be in violation of FTC rules.

A few weeks later, in April 2014, the FTC sent a letter to the companies saying that they had made privacy guarantees to users, and that "regardless of the acquisition, WhatsApp must continue to honor these promises to consumers," and "if the acquisition is completed and WhatsApp fails to honor these promises, both companies could be in violation" of the law and an earlier agreement between the FTC and Facebook.

The letter, according to a press release from the FTC, stated that Facebook must "get consumers’ affirmative consent before making changes that override their privacy settings, among other requirements."

The WhatsApp spokesperson said that the changes are in agreement with this letter, because "people are required to agree to the new terms and privacy policy." The spokesperson said that by allowing people to opt-out of this change, that the company was "offering industry-leading choice to existing users about how their data is used."

The FTC did not immediately respond to ABC News' request for comment. Facebook did not comment separately from WhatsApp.

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iStock/Thinkstock(NEW YORK) — A report in a French newspaper last month that French President Francois Hollande's personal hairdresser is paid $10,000 per month left us scratching our heads and wondering how much most people spend on their trims. We also wondered, what do you really get with a haircut that costs hundreds or thousands of dollars?

To find out, Good Morning America enlisted the help of best friends Mara and Marissa, college sophomores from Long Beach, California, who both wanted to shorten and shape their long, brunette tresses.

We arranged for the friends to have their hair cut at two salons with wildly different price points: Supercuts, a national chain, and The Benjamin Salon, a Los Angeles salon. We ask the friends to pick one photo that embodies the cut they want. They choose a photo of model Chrissy Teigen with beachy curls and layers. The girls then took the photo to their respective stylists.

The Hair Experiment


We started on the budget side. Mara visited a Supercuts in Los Angeles, a one-room salon that’s spacious and clean.

Friendly staff shuttle kids, women, and men through their trims quickly for the straightforward hair maintenance we expect from the chain. The total cost for Mara's cut at Supercuts was $55, which included a $20 haircut, $5 shampoo and $35 blowout.

After about 50 minutes, including talking with the stylist and showing her the photo of Teigen, Mara was styled, blown dry and looking cute with her new 'do! Her reaction was, “I love it!”

Marissa got her hair cut at The Benjamin Salon, where cuts start at $135 but an introductory cut with the salon's owner, Benjamin Mohapi, costs $500.

As Marissa began her journey through the “experience,” and it was an experience, I started to understand why. The salon smelled like freshly mowed grass. The decor at Benjamin was luxurious and very, very hip. Marissa described having her hair shampooed as "The best massage of my life" and was then escorted back to Benjamin's cutting area.

Mohapi was funny and easygoing and clearly intent on hearing what Marissa wanted so he could give her the exact look she desired. They spoke for a while, then Benjamin and his assistant begin a set of choreographed maneuvers that resembled those of a doctor and his surgical nurse. The wet cut took about 35 minutes, then Benjamin stepped away and the assistant dried Marissa’s hair.

Soon after, a lunch cart rolled through offering vegan sandwiches and gluten-free salads gratis.

Once Marissa’s hair was dried, Benjamin finished cutting, applied a few mystery products to her hair and then commenced styling. After about two hours of pampering, Marissa looks adorable and has the same reaction as her friend, saying, "I love it."

We took Marissa and Mara to The Grove, a shopping area in Los Angeles, where shoppers willingly inspected the haircuts.

In the end, about 60 percent of those asked in our very unscientific poll correctly guessed that Marissa has the more expensive haircut.

Observations and Tips


Having witnessed both experiences and seen the results of both cuts, I have a few observations.

1. When you pay a lot for a cut, you’re paying for the known reputation and taste of an established stylist. Benjamin said that he spends a multitude of time cultivating his aesthetic for new haircuts and styles. The Supercuts stylist also goes in for continued training and she is clearly passionate and knowledgeable about her work.

2. You’re also paying for popularity. In Los Angeles, it’s about which stars go to a certain salon or stylist. After the two haircuts, we figured out that one of Benjamin’s stylists actually cuts Chrissy Teigen’s hair.

3. You are paying for a luxury experience. Can an expensive and a budget stylist both get you a great haircut? Yes. But in a salon like Benjamin’s, it is the difference between flying first class and coach; the overall experience was very different.

We asked Benjamin for his tips on avoiding a haircut that isn’t great, regardless of the cost.

1. If it looks good in the salon but you can't make it look right two days later on your own, that’s a red flag.

2. If it looks like it needs to be cut again four weeks later, it’s not a good cut.

3. If the stylist didn't help you choose the right style for your face shape, lifestyle and aesthetic, it’s probably not the right fit.

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Photo by Sascha Schuermann/Getty Images(LONDON) -- The so-called "Brexit" could have a devastating impact on the entire European Union, Germany's vice-chancellor said Sunday at a news conference.

The BBC reports that Sigmar Gabriel said the EU could go "down the drain" if other countries followed the United Kingdom's lead. Britain, he added, would not get to maintain the "nice things" about being a part of the European bloc without taking responsibility.

U.K. Prime Minister Theresa May summoned ministers for a meeting on Wednesday to discuss the British withdrawal from the EU.

"Brexit is bad but it won't hurt us as much economically as some fear," Gabriel said, according to the BBC. "It's more of a psychological problem and it's a huge problem politically. If we organize Brexit in the wrong way, then we'll be in deep trouble, so now we need to make sure that we don't allow Britain to keep the nice things, so to speak, related to Europe while taking no responsibility."

German Chancellor Angela Merkel met with a number of European leaders in recent weeks in order to prepare for a September summit focused on the EU's future without Britain.

Gabriel also said Sunday that trade talks between the EU and the U.S. had "de facto failed."

The Transatlantic Trade and Investment Partnership was aimed at removing or reducing various barriers to EU-US trade. The plan has faced heavy criticism in countries including Germany and the U.K., however, with detractors saying it would be bad for jobs, consumers and the environment.

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United Airlines(GLASGOW) -- Two United Airlines pilots were arrested in Glasgow, Scotland, Saturday morning before they were set to fly to Newark International Airport, according to police.

"Police Scotland can confirm that two men, aged 35 and 45 years, have been arrested and are presently detained in police custody in connection with alleged offences under the Railways and Transport Safety Act 2003 (Section 93)," said a statement from Glasgow police.

There were 141 passengers on board the 9 a.m. flight who were rebooked to a 7:15 p.m. flight with a new crew later in the evening.

United Airlines said the pilots had been removed from service and their flying duties. United also said it is cooperating with Scottish investigators and would conduct an independent investigation.

Police said the two men were expected to appear in court outside Glasgow on Monday.

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Janet Weinstein / ABC News(GEORGETOWN, Maine) -- Every morning for the past 15 years, it’s been the same routine for Mitchell Thorp and Patty Sullivan: Wake up at dawn, brew a pot of coffee, eat breakfast, and make a list of things to do for the rest of the day.

Recently, their mornings have been different.

Long gone are the sounds of neighborhood kids squealing as they ride their bikes to school or the ringing of phones in their home office. Now, only the music of chattering seagulls and the soft, pulsing harmony of waves seeps through to their small dining room table.

“We’re not lacking anything here but it’s just a much slower pace,” said Thorp.

“It’s nice to pull back into the cove and …” Sullivan said, exhaling. “Peace.”

Thorp and Sullivan are this summer’s caretakers for Seguin Island: a small, 64-acre dot off the coast of Maine where the state’s tallest and second oldest lighthouse resides.

The massive tower is still operated by the U.S. Coast Guard, but local nonprofit, Friends of Seguin Island Light Station, is in charge of maintaining everything else. For six months, the organization supports volunteers living on the island as they look after the land, give up modern conveniences and learn to embrace seclusion.

Thorp and Sullivan have been together for 15 years and used to own an accounting software consultant business in North Carolina. After selling their company in 2012, they chose to spend their retirement as professional caretakers. “Sitting at a desk looking at a computer all day was not hard to walk away from,” said Thorp with a laugh. “At all.”

They say they jumped at the opportunity to come to Seguin Island when they spotted an ad for the caretaker position in a small-town Maine newspaper. “We’ve been doing some caretaking for private residents, small resorts, guest houses … but we’ve never taken care of a lighthouse before,” said Sullivan.

Seguin Island is a 30-minute boat ride from Popham Beach, Maine, with one local man primarily making the daily journey back and forth for seasonal tourists.

Every Wednesday morning, Thorp and Sullivan make a quick trip back to land to throw away trash, pick up weekly essentials from the grocery store and do laundry at the laundromat. “The first Wednesday we went in, we bought two weeks worth of freezer stuff so that way if we do get stuck here, we have food,” said Sullivan. “One prior caretaker told me about eating peanut butter for four days because the only thing they had was peanut butter left and they had encountered some bad weather.”

Thorp says other than a fully stocked fridge, a healthy relationship with your partner and a strong sense of independence make surviving island life easy.

“You have to know you’re not going to kill each other…. You are alone most of the time and you can’t call somebody to come and help you, or deliver you pizza,” said Thorp. “You have to be self-sufficient and you have to like that.”

The house’s toilets are all composting, so they have to clean it almost daily. There’s no Wi-Fi aside from an unreliable and temperamental hotspot. The water isn’t drinkable, so they have to fill up huge jugs of mainland tap water each week, store it in a shed at the bottom of the island’s hill, and bring it up the hill to the house using smaller gallon jugs every day. “It is something you definitely have to adapt to,” said Thorp.

Then there’s the rumors of a paranormal presence on the island. Legend has it that former caretakers have heard ghostly piano music or the giggling of a little girl running around late at night. Sullivan shakes her head when asked about this and smiles.

“There’s stories that it’s haunted, but we’ve seen no evidence of that,” she said.

“There’s only good vibes here,” added Thorp.

Even with all of these little quirks, Thorp and Sullivan say their experience has been pleasant. Thorp says the daily stream of tourists has kept the loneliness largely at bay, and island mentality has definitely taught him a thing or two about life.

“You have to push the Type-A away because in the business world, you need to be that way, but in the real world, outside of business, it’s not healthy to be that way all the time,” he said.

“But, there’s definitely an element of our friends and family who think we’re crazy,” he added with a smile.

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Twitter/Stephanie(PENSACOLA, Fla.) -- A Southwest Airlines flight from New Orleans to Orlando, Florida, was forced to make an emergency landing Saturday in Pensacola, Florida, due to a "mechanical issue."

A spokesperson from the airline confirmed to ABC News that the plane, SW Flight 3472, suffered a "mechanical issue with the number one engine."

The pilot radioed to air traffic control that the plane had experienced an engine failure, and the flight was diverted, according to the airline, which noted that none of the 99 passengers or five crew members on board were injured.

According to a statement from Southwest, an "operational event" of this nature can sometimes trigger an investigation by the National Transportation Safety Board (NTSB) to establish what went wrong.

Photographs of the plane from social media show one of the engines partially destroyed.

@lexydray @10TV pic.twitter.com/kEqfaqDSL3

— Stephanie (@smillerddd3) August 27, 2016

The aircraft is out of service, the airline noted, and the passengers will be taken to Orlando as soon as possible.

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Montypeter/iStock/Thinkstock(NEW YORK) – General Motors is issuing a recall for thousands of vehicles to fix a potential problem with the windshield wipers.

2013 Chevrolet Equinox and GMC Terrain models are effected. In all, nearly 368,000 vehicles are being recalled. The company says the cars may have been made with ball joints that can corrode and leave the windshield wipers inoperable.

Regulators say the problem was noticed by a GM managed in Canada last September, and an investigation was launched.

Chevrolet Equinox owners can call 1-800-222-1020 and GMC Terrain drivers can call 1-800-462-8782 for more information.

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lzf/iStock/Thinkstock(NEW YORK) -- When noted human rights activist Ahmed Mansoor recently began receiving mysterious text messages promising to detail abuses inside prisons in the United Arab Emirates, it wasn't a topic completely out of the ordinary, considering his line of work.

However, his suspicions were raised by the text messages, he told ABC News in a Skype interview from the UAE, because he had been the victim of several other hacking attacks in recent years. Mansoor, who last year was the Martin Ennals Award Laureate, a top recognition in the field of human rights campaigning, was arrested in 2011 and spent eight months in prison in what he said was a politically motivated effort to discredit him.

Little did he know, however, that the text messages that first arrived on Aug. 10 and then through Aug. 11 would lead to the discovery of what experts called unprecedented vulnerabilities in Apple's iOS operating system.

He took screenshots of the message and sent them to his friend on the other side of the world, Bill Marczak, a senior research fellow with Citizen Lab, which conducts cybersecurity research.

The 28-year-old Berkeley, California, resident had been working on the computer late into the evening, and decided to take a quick look at his phone before hitting the sack at about 1:30 a.m.

“Immediately, when I saw those messages [from Mansoor] it clicked in my brain and I thought, 'I’ve seen those websites before!'" Marczak told ABC News.

Marczak said that he and his colleagues have been compiling a list of websites that are associated with clients of the Israeli software firm NSO Group, which Citizen Lab and cybersecurity firm Lookout say have developed a spyware package called Pegasus.

An NSO Group official told ABC News that the firm developed software “that helps them combat terror and crime,” and that it sells the software "only to authorized governmental agencies.”

The spokesman, Zamir Dahbash, said that NSO Group “has no knowledge of and cannot confirm” the security firms’ allegations. However, he noted in an email that “the company does NOT operate any of its systems.”

Marczak said believes he has a list of around 200 sites that are deployments of NSO Group’s clients. The sites, he explained, were used to dupe hacking victims into downloading malicious software onto their phones, allowing hackers to take control.

While Marczak said he had long suspected the sites hosted the malware, he did not, until receiving Mansoor’s messages, have a specific link to prove it.

Working through the night, Marczak recalled, he and his colleague John Scott-Railton downloaded the spyware onto a dummy iPhone, from which they monitored all the data that was sent and received.

“We basically set up a test phone. We connected it to the internet through another computer that was logging everything sent and received by the phone,” he said.

Transcribing from Mansoor’s screenshot, they typed the link into the dummy iPhone's Safari browser.

“For about 10 seconds, Safari was just blank, and then after 10 seconds the Safari app closed -- it just exited. We saw nothing further on the phone screen, but meanwhile the phone, according to our logging, was sending and receiving a lot of information. It appeared to be downloading and installing software from the internet,” Marczak recalled.

The malware was about 2.5 megabytes in size when pulled down from the internet, and about 5 megabytes when uncompressed, he said.

“To see it in action was really, really incredible and fascinating, and just seeing the fact that once we clicked on this link once in this text message, that was enough,” he said.

In fact, what he found was unprecedented and has never been seen before.

“This was the most serious vulnerability for iPhone that we’ve seen in the wild,” Marczak said. “What made this vulnerability especially serious was the fact that it was triggered by a single click -- or a single tap -- on a link that could infect your phone. That’s not something we’ve seen before for iPhones.”

Other experts agreed.

“This is the only public disclosure of a one-click remote jailbreak of a modern Apple device. And it's the first time we've ever seen this type of exploit used against real targets to steal actual information,” Lookout’s Vice President for Security Research Mike Murray told ABC News in an email. “Pegasus is amazingly complex and sophisticated ... everything you have on your phone is compromised once this spyware takes hold.”

The researchers notified Apple of the vulnerabilities on Aug. 15, and the tech giant released a software update to address the issues on Thursday.

Marczak said that the researchers aren’t sure who was attempting to compromise Mansoor’s phone.

“In this case we weren’t able to trace it back to the operator. Whoever was operating it, they were using servers in the cloud. These were servers that they had rented in the United States,” Marczak said. “Presumably these servers were just proxying data back to whoever was trying to spy on Mansoor.”

He later told ABC News that the rented U.S. servers belonged to Amazon, which sells server use for legitimate individual, business and research use around the world.

In a statement, an Amazon Web Services spokesperson said: "AWS’s terms are very clear about the misuse of our services, and we employ a variety of measures to detect and address misuse. When we find misuse, we take action quickly and shut it down. The activity being reported is not currently happening on AWS."

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Photo by Win McNamee/Getty Images(JACKSON HOLE, Wyo.) -- Federal Reserve Chair Janet Yellen hinted today that the U.S. economy might be strong enough for an interest rate hike.

Speaking to a conference of central bankers in Jackson Hole, Wyoming, Yellen cited employment gains and increased consumer spending in saying that the Federal Open Market Committee expects moderate growth in the national GDP, additional strengthening in the labor market, and inflation reaching two percent in the coming years.

As such, Yellen said she believes "the case for an increase in the federal funds rate has strengthened in recent months." She did not, however, specify when the rate hike might come.

A rate hike would mean higher costs for new mortgages, car loans and credit cards. However, rates are currently at historically low levels, and the Federal Reserve has repeatedly signalled that it would allow rates to rise gradually instead of offering agressive hikes.

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iStock/Thinkstock(NEW YORK) -- Wall Street closed mixed Friday as investors weighed comments from Fed Chair Janet Yellen on a possible interest rate hike.

The Dow slid 53.01 (-0.29 percent) to finish at 18,395.40.

The Nasdaq gained 6.71 ( 0.13 percent) to close at 5,218.92, while the S&P 500 finished at 2,169.04, down 3.43 (-0.16 percent) from its open.

Crude oil remained flat with prices hitting above $47 a barrel.

Federal Reserve: In Jackson Hole, Wyoming, Yellen told a conference of central bankers that the U.S. economy might be strong enough for an interest rate hike. Though she did not cite when a rate hike might come, she believes "the case for an increase in the federal funds rate has strengthened in recent months."

In an interview later Friday with CNBC, Fed Vice Chair Stanley Fischer said two rate increases before the end of the year were possible and suggested one could happen as soon as September.

Winners and Losers: ITT Educational Services, Inc. tumbled 61 percent amid a for-profit college crackdown where new ITT students will no longer be allowed to enroll with federal aid.

A report from the Wall Street Journal that said billionaire investor Carl Icahn was exploring selling his Herbalife Lt. stake, sent shares in the nutritional products company down 2 percent.

Stock in software company Autodesk, Inc. soared 8 percent Friday after beating investors' expectations in its quarter two earnings and Autodesk raised its outlook.

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