Shhh… Latest Cyberattacks on US Government a Hoax – To Restore NSA Surveillance?

You may have read and heard about the latest cyberattacks on the US government (see video above) over the weekend? Reckon you can’t help wondering how coincidental this “incident” was, judging by the following Guardian article. Nice strategy, Congress??

Shhh… Did Obama Know What He's Doing When He Signed the new Executive Order on Cybercrimes?

Was that a brainfart?

President Barack Obama signed an executive order Wednesday that permits the US to impose economic sanctions on individuals and entities anywhere in the world for destructive cyber-crimes and online corporate espionage – see the Bloomberg article below.

Now what’s this about? An all-out effort on cyber-criminals or just plain window dressing?

For all their abilities to trace the attacks right down to the identities of the hackers, have the US authorities been able to do anything? Recall the Mandiant Report two years ago that allegedly traced Chinese hackers down to the very unit of a military base in Shanghai?

Hackers-Chinese

Recall also the five Chinese military hackers (above) on the FBI wanted list last year? Where has that led to (see video clip below)? And what about the alleged North Korean hacks on Sony Pictures?

With all good intent and seriousness to go on the offensive, Obama has yet to put his words into action on this front…


Hackers, Corporate Spies Targeted by Obama Sanctions Order

by Justin SinkChris Strohm

President Barack Obama signed an executive order Wednesday allowing the use of economic sanctions for the first time against perpetrators of destructive cyber-attacks and online corporate espionage.

That will let the Treasury Department freeze the assets of people, companies or other entities overseas identified as the source of cybercrimes. The federal government also will be able to bar U.S. citizens and companies from doing business with those targeted for sanctions.

“Cyberthreats pose one of the most serious economic and national security challenges to the United States,” Obama said in a statement. “As we have seen in recent months, these threats can emanate from a range of sources and target our critical infrastructure, our companies and our citizens.”

Under the order, sanctions only will be used if a cyber-attack threatens to harm U.S. national security, foreign policy or the broader economy. It’s aimed at cybercriminals who target critical infrastructure, disrupt major computer networks, or are involved in the “significant” theft of trade secrets or intellectual property for competitive advantage or private financial gain.

Data Breaches

The administration is using the threat of sanctions to help prevent large-scale data theft after breaches at major U.S. corporations, including retailer Target Corp., health-insurer Anthem Inc. and home-improvement chain Home Depot Inc. It’s also a recognition that companies are facing increasingly destructive attacks, such as the hack against Sony Pictures Entertainment that crippled thousands of computers and delayed release of a comedy movie.

Sanctions imposed under the executive order will help disrupt the operations of hackers who may be in countries outside the reach of U.S. law enforcement, John Carlin, U.S. assistant attorney general for national security, said in a phone interview.

Banks and other companies connected to the U.S. financial system will be required to prohibit sanctioned hackers and entities from using their services, cutting them off from valuable resources, Carlin said.

“It’s a new powerful tool and we intend do to use it,” Carlin said. “It has the capability to significantly raise the cost for those who steal or benefit through cybercrime.”

Transcends Borders

The unique aspect of the executive order is that it allows the U.S. to impose sanctions on individuals or entities over hacking attacks regardless of where they are located, White House Cybersecurity Coordinator Michael Daniel told reporters on a conference call. While other sanctions are tied to a particular country or group of persons, hacking attacks transcend borders.

“What sets this executive order apart is that it is focused on malicious cyber-activity,” Daniel said. “What we’re trying to do is enable us to have a new way of both deterring and imposing costs on malicious cyber-actors wherever they may be.”

The order is a signal of the administration’s “clear intent to go on offense against the full range of very serious cyberthreats that are out there,” said Peter Harrell, the former principal deputy assistant secretary for sanctions at the State Department.

“This is a message that if folks around the world don’t cut out these activities, they’re going to find themselves cut off from the American banking system,” Harrell said in an interview.

Hidden Identities

Harrell said there are potential stumbling blocks to effective implementation. For one, hackers work hard to conceal their identity. Even though the U.S. and private companies have improved their ability to trace attacks, attribution can sometimes be difficult.

Daniel acknowledged that determining who is actually behind hacking attacks is still a challenge but said the U.S. is getting better at it.

In other cases, diplomatic considerations may be at play. The administration’s decision in 2014 to file criminal charges against five members of the Chinese military over their role in cyber-espionage strained relations with Beijing.

In January, Obama authorized economic sanctions against 10 North Korean officials and government entities in connection with the Sony attack. The North Korean government has denied any involvement in the Sony case.

Overseas Governments

Harrell said the use of sanctions can provide leverage as the U.S. registers complaints with governments overseas about cyber-attacks. Targeted use of the new sanctions powers also may help deter criminals.

“A number of these cyber-attacks are organized by fairly significant actors out there — large hacking collectives, or organized by foreign intelligence agencies,” Harrell said. “They all have real potential costs if they were put on sanctions lists.”

The Obama administration has been under pressure to take action to help companies protect their networks from cyber-attacks. In early March, Premera Blue Cross announced that hackers may have accessed 11 million records, including customer Social Security numbers, bank account data and medical information.

Home Depot in September said 56 million payment cards and 53 million e-mail addresses had been stolen by hackers. And just days earlier, JPMorgan Chase & Co. announced a data breach affecting 76 million households and 7 million small businesses.

The highest-profile breach, however, may have been the hacking of Sony Pictures. The U.S. government said North Korean hackers broke into the studio’s network and then exposed e-mails and private employment and salary records. U.S. authorities said it was in retaliation for plans to release “The Interview,” a satirical film depicting the assassination of leader Kim Jong Un.

Obama's Still On the Wrong Frequency On Cybersecurity Issues

This is probably the most telling moment of how US President Barack Obama is still on the wrong frequency on cyber matters…

Obama blamed the “impact on their [the tech companies] bottom lines” for the mistrust between the government and Silicon Valley in the aftermath of the Snowden revelations. These were his words, straight from the POTUSA mouth rather than reading from the scripts, in an exclusive interview with Re/code’s Kara Swisher (see video below) following the well publicized cybersecurity summit at Stanford University last Friday, when he signed an executive order to encourage the private sector to share cybersecurity threat information with other companies and the US government.

Contrast that with the high-profile speech by Apple CEO Tim Cook (see video below), who warned about “life and death” and “dire consequences” in sacrificing the right to privacy as technology companies had a duty to protect their customers.

His speech was delivered before Obama’s address to the summit – which the White House organized to foster better cooperation and the sharing of private information with Silicon Valley – best remembered for the absence of leaders from tech giants like Google, Yahoo and Facebook who gave Obama the snub amid growing tensions between Silicon Valley and the Obama administration. Heavyweights whom Obama counted as “my friends” in the Re/code interview (watch closely his expression at the 39th second of the clip above).

Shhh… China to Boost Cyber-Security with the World's First Quantum Communications Network – QC Satellite to Follow Next Year

Amid continuing Sino-US spats on cyber-espionage and related matters, China is beefing up its cyber and national security in a big way as it is reportedly just months away from launching the longest quantum communications network on earth stretching some 2,000 kilometer between its capital Beijing and financial center Shanghai to transfer data close to the speed of light with no hacking risks – initially to transmit sensitive diplomatic and classified information for the government and military with personal and financial data also on the cards for the near future.

And that’s ahead of the previously announced plan for 2016 to become the first country to launch a quantum communications satellite into the orbit.

Looks like Snowden was spot on again. In a post just a month ago, I wrote what he said about how the US (would and) is paying the price for focusing too much on the cyber offensive at the expense of cyber defense.

Meanwhile, following the recent cyber-attack on Sony Pictures, President Barack Obama’s homeland security and counter-terrorism adviser Lisa Monaco announced earlier this week a new intelligence unit – the Cyber Threat Intelligence Integration Center – to take the lead in tracking cyber-threats by pooling and disseminating data on cyber-breaches to other US agencies.

“Currently, no single government entity is responsible for producing coordinated cyber threat assessments,” according to Monaco.


China nears launch of hack-proof ‘quantum communications’ link

Published: Feb 9, 2015 11:13 p.m. ET

Technology to be employed for military and other official uses

BEIJING (Caixin Online) — This may be a quantum-leap year for an initiative that accelerates data transfers close to the speed of light with no hacking threats through so-called “quantum communications” technology.

Within months, China plans to open the world’s longest quantum-communications network, a 2,000-kilometer (1,240-mile) electronic highway linking government offices in the cities of Beijing and Shanghai.

Meanwhile, the country’s aerospace scientists are preparing a communications satellite for a 2016 launch that would be a first step toward building a quantum communications network in the sky. It’s hoped this and other satellites can be used to overcome technical hurdles, such as distance restrictions, facing land-based systems.

Physicists around the world have spent years working on quantum-communications technology. But if all goes as planned, China would be the first country to put a quantum-communications satellite in orbit, said Wang Jianyu, deputy director of the China Academy of Science’s (CAS) Shanghai branch.

At a recent conference on quantum science in Shanghai, Wang said scientists from CAS and other institutions have completed major research and development tasks for launching the satellite equipped with quantum-communications gear.

The satellite program’s likelihood for success was confirmed by China’s leading quantum-communications scientist, Pan Jianwei, a CAS academic who is also a professor of quantum physics at the University of Science and Technology of China (USTC) in Hefei, in the eastern province of Anhui. Pan said researchers reported significant progress on systems development after conducting experiments at a test center in Qinghai province, in the northwest

The satellite would be used to transmit encoded data through a method called quantum key distribution (QKD), which relies on cryptographic keys transmitted via light-pulse signals. QKD is said to be nearly impossible to hack, since any attempted eavesdropping would change the quantum states and thus could be quickly detected by data-flow monitors.

A satellite-based quantum-communications system could be used to build a secure information bridge between the nation’s capital and Urumqi, a city that’s the capital of the restive Xinjiang Uyghur Autonomous Region in the west, Pan said.

It’s likely the technology initially will be used to transmit sensitive diplomatic, government-policy and military information. Future applications could include secure transmissions of personal and financial data.

Plans call for China to put additional satellites into orbit after next year’s ground-breaking launch, Pan said, without divulging how many satellites might be deployed or when. He did say that China hopes to complete a QKD system linking Asia and Europe by 2020, and have a worldwide quantum-communications network in place by 2030.

Success stories

In 2009, China became the first country in the world to put quantum-communications technology to work outside of a laboratory.

In October of that year, a team of scientists led by Pan built a secure network for exchanging information among government officials during a military parade in Beijing celebrating the 60th anniversary of the People’s Republic. The demonstration underscored the research project’s key military application.

“China is completely capable of making full use of quantum communications in a regional war,” Pan said. “The direction of development in the future calls for using relay satellites to realize quantum communications and control that covers the entire army.”

The country is also working to configure the new technology for civilian use.

A pilot quantum-communications network that took 18 months to build was completed in February 2012 in Hefei. The network, which cost the city’s government 60 million yuan ($9.6 million), was designed by Pan’s team to link 40 telephones and 16 video cameras installed at city government agencies, military units, financial institutions and health-care offices.

A similar, civilian-focused network built by Pan’s team in Jinan, the provincial capital of the eastern province of Shandong, started operating in March 2014. It connects some 90 users, most of whom tap the network for general business and information.

In late 2012, Pan’s team installed a quantum-communications network that was used to securely connect the Beijing venue hosting a week-long meeting of the 18th National Congress of the Communist Party, with hotel rooms where delegates stayed, as well as the Zhongnanhai compound in Beijing where the nation’s top leaders live and work.

Next on the development agenda is opening the network linking Beijing and Shanghai. Pan is leading that project as well.

If all goes as planned, Pan said, existing networks in Hefei and Jinan would eventually be tied to the Beijing-Shanghai channel to provide secure communications connecting government and financial agencies in each of the four regions. The new network could be operating as early as 2016.

No room for hype

A quantum code expert said that so far, quantum-communications technology development efforts in China have basically focused on protecting national security. “How important it will be for the public and in everyday life are questions that remain unanswered,” said the expert.

To date, Pan said, technical barriers and the high cost of systems development have kept private capital out of what’s now almost exclusively a government initiative. Moreover, it’s still too early to tell whether the technology has any potential commercial value.

Pan has warned the public not to listen to investment come-ons that hype the money-making potential of quantum-communications businesses. At this stage of the game, he said, the focus is still on technological development, not commercial applications.

Nevertheless, since 2009, USTC has been building a commercial enterprise called Anhui Quantum Communication Technology Co. to produce equipment based on technology developed by Pan and his team. The company is China’s largest quantum-communications equipment supplier. Last September, it said it had started mass-producing quantum-cryptography equipment.

Anhui Quantum general manager Zhao Yong said the company’s clients include financial institutions and government agencies seeking to supplement, not replace, conventional communications systems. Their shared goal, he said, is to improve data security.

Once the technology has matured, said Wang Xiangbin, a physicist at Beijing’s Tsinghua University, its range of applications should be targeted to specific industries and regions because of its high barrier in technology and cost. Quantum communications is not a technology suitable for mass use via the Internet, for example, Wang told a group of scientists at a 2012 seminar.

Some experts say it’s wrong to assume that quantum communications is a flawlessly secure means of transmitting information. Another Tsinghua physics professor, Long Guilu, said quantum communication is only theoretically safe, since malfunctioning equipment or operational errors can open doors to risk.

Experimental systems built in 2007 by Chinese and U.S. physicists reportedly achieved secure QKD transmissions between two points more than 100 kilometers apart. But the experiment also taught scientists that data can be intercepted by a third party during a transmission.

In addressing the naysayers, Pan admitted that quantum communications is not perfect. But he defended it as safer than conventional means of communication. In fact, he said, no means of protecting data is more secure than quantum communications.

To test the capacity and safety of the network linking Beijing and Shanghai, Pan said his team plans to ask other communications experts to carefully study the system and look for potential security holes. The network could then be modified in ways that close any detected gaps and reduce hacking risks.

“Assessments and testing will be conducted after the network is completed,” said Pan, who remains convinced that any network using quantum cryptographic technology is more secure than any other communications channel.

Pan has been working on quantum-communications technology since the late 1990s, when he was a researcher at the University of Vienna and working in a partnership with Austrian physicist Anton Zeilinger. That team is credited with developing the first protocol for quantum communications.

Pan worked with Zeilinger about a decade after U.S. physicist Charles Bennett and colleagues at IBM Research built the world’s first functioning quantum cryptographic system. Based on their research, the first network was installed in the U.S. city of Boston.

Like their counterparts in China, researchers in the United States, Japan and European countries continue work to advance the technology. A key effort is aimed at extending that potential reach of quantum-communications systems, which for years were used only to span short distances.

Some experts have even wondered whether the new technology has been misidentified, since its key feature is high-level cryptography, not electronic communications.

“What we can do now is merely encrypt data, which is far from real quantum communications,” said one expert who declined to be named. “Theoretically it can’t be hacked, but in practice it has many limitations.”

Guo Guangcan, director of USTC’s quantum-communications lab, said networks now operating and those being built in China “achieve encryption only,” whereas true communications networks “involve content.”

“It’s not accurate to call it quantum communications,” said Guo.

Whatever it’s called, China appears determined to push ahead with the research and development that paves the way for a new era of secure communications. And according to Pan, that era is still at least a decade away.

“It will take 10 to 20 years to really put (the technology) into practice,” said Pan.

Rewritten by Han Wei

Shhh… Heartbleed Check & Fix

The open source OpenSSL project revealed Monday a serious security vulnerability known as the “Heartbleed” bug that is used by two-third of the web to encrypt data, ie. to protect usernames, passwords and any sensitive information on secure websites. Yahoo is said to be the most exposed to Heartbleed but the company said it has fixed the core vulnerability on its main sites. There are several things you would need to do to check for Heartbleed bug and protect yourself from it, apart from changing your passwords. And according to the Tor project, staying away from the internet entirely for several days might be a good idea.

Check these YouTube video clips for more information – and find out how to fix it on Ubuntu Linux.

Computers: Patriot Games?

US decision to ban Chinese computer parts could mean no computers

The American Congress signed a US appropriations bill into law late March that restricts government purchase of Chinese computer equipments and technologies on fear of cyber-espionage risks.

The move inevitably prompted strong retaliation from China but my immediate curious question is: Where on earth is the US planning to buy its hardware, when even the major US brands like Dell, Apple and Hewlett-Packard – and also many Japanese, Korean and Taiwanese brands – are made in China?

I have 2 solutions…..

Please read the full column here.