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  • 22
    Feb
    2013
    1:02pm, EST

    Analysis: As cyberthreat looms, here's what really matters

    By Michael Leiter, Security Analyst, NBC News

    The past several weeks have seen an explosion of news about United States cybersecurity. First, stories about Chinese cyberattacks. Next, the president’s historic reference to cybersecurity in the State of the Union address. Finally, more stories about Chinese cyberespionage. If one is in the business of national security, these and other stories represent identifiable parts of a larger, cohesive story. But for the lay reader, discerning that larger story is more challenging. What is old news? What is new? And what lies ahead?


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    The old news: the scale, types, and sources of the attacks

    According to a recent Washington Post article, a new U.S. government intelligence assessment describes the massive scale of cyberattacks by nation states (most notably, by China), criminal organizations, and individuals. Although it is fair to say that the scale, scope, and sophistication of such attacks have increased over the past several years, the basics have largely remained the same. The U.S. government and affected commercial sectors have been well aware of these threats. All too many industries — information technology, defense, energy, advanced manufacturing, healthcare, agriculture, law, non-governmental organizations, and the media, to name a few — have been attacked, and in the most sophisticated cases the perpetrators have been traced back to China. Even the most technologically able of companies, such as Google and defense contractors, have found Chinese cyberattackers resident in their networks. Intruders have been able to steal enormous amounts of sensitive and valuable information. The combined result of this U.S.-to-China illicit exfiltration is what one official has called “the greatest transfer of wealth in history.” 

    Also in the “old news” category is that not all attacks are about stealing. In less common but more immediately disruptive cases, state-sponsored cyberattackers — most notably from Iran — have caused significant harm to computer networks. Specifically, last fall attackers disrupted U.S. financial institutions’ networks, making some websites temporarily inaccessible. Even more destructively, Iranian cyberattackers rendered inoperable 30,000 computers at the world’s largest oil company, Saudi Aramco. These attacks illustrate what cyber professionals have long known: cyberattacks — especially against critical infrastructure — can easily turn from silent burgling to serious disruptions or destruction. 

    The new news: exactly who is attacking us, and presidential action

    The past several weeks have also highlighted new developments in cyberwarfare, most significantly exactly who the attackers are and more forceful executive branch efforts to combat cyberattacks.     

    On the first, a report this week by the network security company Mandiant concluded that a significant number of sophisticated attacks originated not just from China, but likely were perpetrated by the Chinese military. Although this may not be new to many “on the inside,” the public attribution to the People’s Liberation Army (PLA) with a highly detailed description of their modus operandi as well as individuals involved is something we have not seen publicly before. There are real risks to this disclosure, as it will undoubtedly drive the PLA to pursue new tactics to avoid detection, but Mandiant (and many others) clearly believe that those risks are outweighed by the value of highlighting China’s efforts.

    On the second point, there has indeed been a flurry of presidential activity over the past two weeks. Most significantly, the president’s executive order sought to maximize what federal departments could do absent legislation. The executive order specifically seeks to improve classified and unclassified information-sharing between the government and private sector, prioritize the protection of critical infrastructure (e.g., our electrical grid), and develop voluntary private sector standards for cyberdefense. The administration has also announced a government-wide effort to combat the theft of trade secrets from U.S. companies. This is significant in that it is the first high-profile and consolidated public statement — quite clearly focused on China — that contemplates more forceful legal and trade action against China should it not alter its behavior.

    What lies ahead: legislation, confrontation, destruction?

    Where then does this leave us? I expect major developments on at least three fronts. 

    First, legislation. Although the executive order is a first step, most recognize that legislation is necessary to enhance our cyberdefenses. Specifically, only legislation can provide companies immunity for providing cybersecurity-related information to the government. In addition, only legislation can clarify who in the government — the Departments of Defense, Justice, Homeland Security, and Intelligence Community, among others — should or must have access to the private sector information that is provided to officials. There are, of course, difficult questions embedded in these high-level issues: Will such information sharing affect the privacy of ordinary citizens? How will the federal bureaucracy (and federal workforce) keep pace with rapid technological change? More broadly, will the focus on information-sharing provide enough defense against a smart, determined adversary for whom economic espionage is a national imperative?

    Second, confrontation. Assuming — and I think it is a very solid assumption — that cyberdefense can never do enough to protect networks, to what degree will the U.S. (and other nations) confront China (and other large-scale cyberattackers) to convince them to limit their use of cybertheft? Although the new administration strategy suggests greater forcefulness, the proof will be in the pudding. Neither the United States nor other nations can afford to view China through a singular cyberlens given our deep economic ties and reliance on their support for global hotspots like North Korea. In addition, to what degree will private companies who look to China as a massive emerging market be willing to proclaim publicly that their secrets have been stolen by China or others? I expect to see continued confrontation with China over these matters, but I’m less sanguine that we will be able to seriously alter its current cybercalculus.

    Third, destruction. While the present focus has been largely on economic loss, we must not lose sight of the very real risk of destructive cyberattacks. As already noted, Iranian-sponsored cyberattacks effectively destroyed computers in Saudi Arabia, as well as computers at RasGas in Qatar. Using cybertools, determined adversaries can disrupt industrial control systems that govern our critical infrastructure, to include electrical, water, telecommunications, and air traffic control systems. In an armed conflict with a country like Iran, we will have to be prepared for such attacks; if Iran is willing to disrupt U.S. banking institutions today, then we would be foolish to think they would not be willing to do more in the midst of a hot war. And although Iran may not possess sufficiently skilled cyberwarriors to cause serious harm, we must remember that other, non-state actors might well be willing to assist in the fight if the price is right. Warning of a “cyber Pearl Harbor” is in my view a bit too alarmist, but we must nevertheless recognize — and mitigate — what is a clear, nationwide vulnerability today. 

    Michael Leiter was director of the United States National Counterterrorism Center under Presidents George W. Bush and Barack Obama, serving from 2007 through 2011. He is a counterterrorism, cybersecurity and national security analyst for NBC News.

    25 comments

    cyberthreat=$$$ for security companies. People that put their stuff on the street via the internet is asking for it and are responsible for the damages.

    Show more
    Explore related topics: security, hacking, cyber-war, michael-leiter
  • 20
    Sep
    2012
    6:13pm, EDT

    Officials see Iran, not outrage over film, behind cyber attacks on US banks

    By Robert Windrem and Jim Miklaszewski
    NBC News

    National security officials told NBC News that the continuing cyber attacks this week that slowed the websites of JPMorgan Chase and Bank of America are being carried out by the government of Iran. One of those sources said the claim by hackers that the attacks were prompted by the online video mocking the Prophet Muhammad is just a cover story.

    A group of purported hackers in the Middle East has claimed credit for problems at the websites of both banks, citing the online video mocking the founder of Islam. One security source called that statement "a cover" for the Iranian government's operations.

    The attack is described by one source, a former U.S. official familiar with the attacks, as being "significant and ongoing" and looking to cause "functional and significant damage." Also, one source suggested the attacks were in response to U.S. sanctions on Iranian banks.

    The consumer banking website of Bank of America was unavailable to some customers on Tuesday, and JPMorgan Chase on Wednesday had the same problems, which multiple sources linked to a denial-of-service attack, in which a website is bogged down by a large number of requests. A Chase spokesman said Wednesday that the consumer site was intermittently unavailable to some customers, but did not acknowledge then that there was an attack. On Thursday, Chase said slowness continued but was resolved by late afternoon Eastern Time. Bank of America acknowledged on Tuesday that its site had experienced slowness, but would not say what caused it.

    Senior U.S. officials acknowledge that Iranian attacks have been the subject of intense interest by U.S. intelligence for several weeks. Last week, the Joint Chiefs of Staff's Intelligence Directorate, known as J-2, confirmed continuing Iranian cyber attacks against U.S. financial institutions in a report described as "highly classified." The report was posted on internal classified U.S. government sites last Friday, September 14.


    Because of the level of classification, the officials refused to provide or confirm any specifics on these attacks. However, one official noted that Iran's uranium enrichment program had been the target of the STUXNET worm in 2010. The worm was reportedly developed by the U.S. and Israel. "The Iranians are very familiar with the environment,” quipped the official.

     

    A conservative website, FreeBeacon.com, initially reported on the Pentagon analysis, quoting it as saying,  “Iran’s cyber aggression should be viewed as a component, alongside efforts like support for terrorism, to the larger covert war Tehran is waging against the west.” U.S officials did not deny the FreeBeacon report when queried by NBC News.

    A financial services industry group,  the Financial Services Information Sharing and Analysis Center, warned U.S. banks, brokerages and insurers late Wednesday to be on heightened alert for cyber attacks. FS-ISAC also raised its raised the cyber threat level to "high" from "elevated" in an advisory to members, citing "recent credible intelligence regarding the potential" for cyber attacks as its reason for the move.

    The former head of cyber-security for the White House testified Thursday that “we were waiting for something like this from Iran.”  Frank Cilluffo, who served as Special Assistant to the President for Homeland Security under President George W. Bush, is currently an associate vice president at George Washington University and heads the Homeland Security Policy Institute. Cilluffo testified in a previously scheduled appearance before the U.S. House of Representatives’ Committee on Homeland Security, saying “the government of Iran and its terrorist proxies are serious concerns in the cyber context. What Iran may lack in capability, it makes up for in intent.  They do not need highly sophisticated capabilities—just intent and cash—as there exists an arms bazaar of cyber weapons, allowing Iran to buy or rent the tools they need or seek.”


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    The statement by the purported Muslim hackers, posted on Tuesday on Pastebin, an online bulletin board, reads in full: "In the name of Allah the companionate the merciful. My soul is devoted to you Dear Prophet of Allah. Dear Muslim youths, Muslims Nations and are noblemen. When Arab nations rose against their corrupt regimes (those who support Zionist regime) at the other hand when, Crucify infidels are terrified and they are no more supporting human rights. United States of America with the help of Zionist Regime made a Sacrilegious movie insulting all the religions not only Islam. All the Muslims worldwide must unify and Stand against the action, Muslims must do whatever is necessary to stop spreading this movie. We will attack them for this insult with all we have. All the Muslim youths who are active in the Cyber world will attack to American and Zionist Web bases as much as needed such that they say that they are sorry about that insult. We, Cyber fighters of Izz ad-din Al qassam will attack the Bank of America and New York Stock Exchange for the first step. These Targets are properties of American-Zionist Capitalists. This attack will be started today at 2 pm. GMT. This attack will continue till the Erasing of that nasty movie. Beware this attack can vary in type. Down with modern infidels. Allah is the Greatest. Allah is the Greatest."

    There was no report of an attack on the New York Stock Exchange.

    Also on Thursday, the U.S. disclosed that it has  bought $70,000 worth of air time on seven Pakistani television channels to air an ad which shows President Barack Obama and Secretary of State Hillary Clinton denouncing the anti-Islamic video. In the ad, President Obama says, "Since our founding the United States has been a nation that respects all faiths. We reject all efforts to denigrate religious beliefs of others." Clinton appears after Obama and says, "Let me state very clearly that the United States has absolutely nothing to do with this video. We absolutely reject its contents. America's commitment to religious tolerance goes back to the very beginning of our nation."

    Pakistan was added Wednesday to the State Department's list of countries to which Americans should avoid travel, joining Lebanon and Tunisia, following protests across the Middle East and North Africa and the attack on the U.S. consulate in Benghazi, Libya, in which American Ambassador Chris Stevens was killed. 

    Robert Windrem is a senior investigative correspondent for NBC News. Jim  Miklaszewski is the chief Pentagon correspondent for NBC News. Patti Domm, executive news editor at CNBC and CNBC.com, contributed to this report.

    Analysis: 'Manufactured outrage' behind Middle East protests

    Click here to receive a Top News email each day from NBC News.

    Slideshow: Anger over film spreads throughout Muslim world

    Protests ignited by a controversial film that ridicules Islam's Prophet Muhammad spread throughout Muslim world.

    Launch slideshow

     

    More world stories from NBC News:

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    French officials are preparing for a potential violent backlash as a satirical magazine defends its decision to publish cartoons mocking the Prophet Muhammad. NBC's Michelle Kosinski reports.

     

    400 comments

    Gotta love the photo of the Jihadists who "hate America" running around in Nikes.

    Show more
    Explore related topics: iran, terrorism, banks, featured, cyber-war

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