Shhh… Hackers Target Database of Chinese with Ties to US Government

Check out the NYT article below.

Hackers May Have Obtained Names of Chinese With Ties to U.S. Government

By DAVID E. SANGER and JULIE HIRSCHFELD DAVISJUNE 10, 2015

WASHINGTON — Investigators say that the Chinese hackers who attacked the databases of the Office of Personnel Management may have obtained the names of Chinese relatives, friends and frequent associates of American diplomats and other government officials, information that Beijing could use for blackmail or retaliation.

Federal employees who handle national security information are required to list some or all of their foreign contacts, depending on the agency, to receive high-level clearances. Investigators say that the hackers obtained many of the lists, and they are trying to determine how many of those thousands of names were compromised.

In classified briefings to members of Congress in recent days, intelligence officials have described what appears to be a systematic Chinese effort to build databases that explain the inner workings of the United States government. The information includes friends and relatives, around the world, of diplomats, of White House officials and of officials from government agencies, like nuclear experts and trade negotiators.

“They are pumping this through their databases just as the N.S.A. pumps telephone data through their databases,” said James Lewis, a cyberexpert at the Center for Strategic and International Studies. “It gives the Chinese the ability to exploit who is listed as a foreign contact. And if you are a Chinese person who didn’t report your contacts or relationships with an American, you may have a problem.”

Officials have conceded in the briefings that most of the compromised data was not encrypted, though they have argued that the attacks were so sophisticated and well hidden that encryption might have done little good.

The first attack, which began at the end of 2013 and was disclosed in the middle of last year, was aimed at the databases used by investigators who conduct security reviews. The investigators worked for a contracting firm on behalf of the Office of Personnel Management, and the firm was fired in August.

The broader attack on the personnel office’s main databases followed in December. That attack, announced last week, involved the records of more than four million current and former federal employees, most of whom have no security clearances.

White House and personnel office officials have provided few details about the latest breach. But the Department of Homeland Security has been telling outside experts and members of Congress that it regards the detection of the attack as a success, because it made use of new “signatures” of foreign hackers, based on characteristics of computer code, to find the attack.

In a statement, the personnel office said Wednesday that “it was because of these new enhancements to our IT systems that O.P.M. was able to identify these intrusions.” But the detection happened in April, five months after the attack began.

The list of relatives and “close or continuous contacts” is a standard part of the forms and interviews required of American officials every five years for top-secret and other high-level clearances, and government officials consider the lists to be especially delicate.

In 2010, when The New York Times was preparing to publish articles based on 250,000 secret State Department cables obtained by WikiLeaks, the newspaper complied with a request by the department to redact the names of any Chinese citizens who were described in the cables as providing information to American Embassy officials. Officials cited fear of retaliation by the Chinese authorities.

Officials say they do not know how much of the compromised data was exposed to the Chinese hackers. While State Department employees, especially new ones, are required to list all their foreign friends, diplomats have so many foreign contacts that they are not expected to list them all.

But other government officials are frequently asked to do so, especially in interviews with investigators. The notes from those interviews, conducted by a spinoff of the personnel office called the United States Investigative Service, were obtained by hackers in the earlier episode last year.

Intelligence agencies use a different system, so the contacts of operatives like those in the C.I.A. were not in the databases.

But the standard form that anyone with a national security job fills out includes information about spouses, divorces and even distant foreign relatives, as well as the names of current or past foreign girlfriends and boyfriends, bankruptcies, debts and other financial information. And it appears that the hackers reached, and presumably downloaded, images of those forms.

“I can’t say whether this was more damaging than WikiLeaks; it’s different in nature,” said Representative Adam B. Schiff, a California Democrat who is a member of the House Intelligence Committee, which was briefed by intelligence officials, the Department of Homeland Security and the personnel office on Tuesday. Mr. Schiff, who declined to speak about the specifics of the briefing, added, “But it is certainly one of the most damaging losses I can think of.”

Investigators were surprised to find that the personnel office, which had already been so heavily criticized for lax security that its inspector general wanted parts of the system shut down, did not encrypt any of the most sensitive data.

The damage was not limited to information about China, though that presumably would have been of most interest to the hackers. They are likely to be particularly interested in the contacts of Energy Department officials who work on nuclear weapons or nuclear intelligence, Commerce Department or trade officials working on delicate issues like the negotiations over the Trans-Pacific Partnership, and, of course, White House officials.

In a conference call with reporters on Wednesday, Senator Angus King, an independent from Maine on both the Intelligence Committee and the Armed Services Committee, called for the United States to retaliate for these kinds of losses. “Nation-states need to know that if they attack us this way, something bad is going to happen to their cyberinfrastructure,” he said.

But Mr. King said he could not say if the attacks on the personnel office were state-sponsored, adding, “I have to be careful; I can’t confirm the identity of the entity behind the attack.” The Obama administration has not formally named China, but there has been no effort to hide the attribution in the classified hearings.

The scope of the breach is remarkable, experts say, because the personnel office apparently learned little from earlier government data breaches like the WikiLeaks case and the surveillance revelations by Edward J. Snowden, both of which involved unencrypted data.

President Obama has said he regards the threat of cyberintrusions as a persistent challenge in a world in which both state and nonstate actors “are sending everything they’ve got at trying to breach these systems.”

The problem “is going to accelerate, and that means that we have to be as nimble, as aggressive and as well resourced as those who are trying to break into these systems,” he said at a news conference this week.

The White House has stopped short of blaming Katherine Archuleta, the director of the personnel office, for the breach, emphasizing that securing government computer systems is a challenging task.

Correction: June 10, 2015

An earlier version of a photo caption with this article misstated the name of the federal office building where employees handle national security information are required to list their foreign contacts. It is the Office of Personnel Management building, not Office of Personal Management.

Matt Apuzzo contributed reporting.

Shhh… NSA Too Late With "Snowden-Proof" Cloud Storage

Or better late than never? Check out the article below:

Too little too late? NSA starting to implement ‘Snowden-proof’ cloud storage

Published time: April 14, 2015 10:28
Edited time: April 14, 2015 18:04

The NSA is implementing a huge migration to custom-designed cloud architecture it says will revolutionize internal security and protect against further leaks by data analysts with unfettered access to classified information.

Put simply, the NSA hopes to keep future Edward Snowdens out by employing a cloud file storage system it built from scratch. A major part of the system is that all the data an analyst will have access to will be tagged with new bits of information, including that relating to who can see it. Data won’t even show up on an analyst’s screen if they aren’t authorized to access it, NSA Chief Information Officer Lonny Anderson told NextGov.

The process has been slowly taking place over the last two years following the Snowden leaks. This means any information stored after the fact now comes meta-tagged with the new security privileges, among other things.

The agency has Snowden to thank for expediting a process that was actually started in the aftermath of the September 11 attacks in 2001. The idea for storing all information on cloud servers had been in the making, but hadn’t come to fruition until it was too late.

Now it’s moving at an expanded pace to implement something called GovCloud, which is a scaled version of the NSA’s entire universe of mined data. It is set to become pre-installed on the computers of all 16 US intelligence agencies, a move that started with the NSA.

At first glance, the idea appears counter-intuitive. Edward Snowden pretty much used the fact that all the information was in one place to find what he needed and access it.

However, as Anderson explains, “While putting data to the cloud environment potentially gives insiders the opportunity to steal more, by focusing on securing data down at cell level and tagging all the data and the individual, we can actually see what data an individual accesses, what they do with it, and we can see that in real time.”

The agency’s cloud strategist Dave Hurry explained the strategy further: “We don’t let people just see everything; they’re only seeing the data they are authorized to see.”

And if a situation arises where an employee needs access to information that’s off-limits, the program tells them who to ask to get it sorted out.

A further advantage to this is accelerating the analysis of the log data generated when an analyst wants to access particular information. Edward Snowden’s computer history, for some reason, did not set off any alarms until it was too late. That’s because the security logs had to be manually reviewed at a later time, NSA officials told NextGov.

They say this could have been averted with GovCloud, which would immediately raise a red flag if an analyst attempted to “exceed limits of authority.” The agency would have the former analyst in handcuffs before he managed to pack his bags for the airport.

GovCloud isn’t marketing itself as just a security feature that rescues the intelligence agencies from outdated practices and hardware. It is also touted as the answer to privacy advocates, who had a field day with the NSA when it turned out it was indiscriminately mining citizens’ communications.

“We think from a compliance standpoint, moving from a whole mess of stovepipes into a central cloud that has a lot more functionality gives us more capability,” Tom Ardisana, technology directorate compliance officer at NSA, said.

It’s not clear whether the general public will know if the NSA is ‘complying’, but its officials claim that GovCloud is a step in the right direction. Outdated hardware and an over-reliance on data centers built before the shifts in privacy and security policies meant the process of compliance had to be manual and tedious.

“Whenever you bolt on compliance to address a particular issue, there is always a second- and third-order effect for doing that,” Anderson continued. “It’s an extremely manual process. There is risk built in all over that we try to address. The cloud architecture allows us to build those issues in right from the start and in automated fashion address them,” he explained.

In broader terms, the new trend toward automation will also ensure analysts can drastically cut the time they spend on doing a whole plethora of tasks like cross-checking information between databases manually.

“It’s a huge step forward,” Anderson believes, adding how entire agencies – starting with the NSA and the Defense Department – were being transitioned into the new operating environment starting three weeks ago, meaning all their work tools and applications will now also have to be accessed from there.

Other agencies will follow, but for now it’s all about trial periods and seeing how smoothly the system works.

The agency hopes the move toward cloud computing will herald the end of data centers, although whether the system is hacker-proof remains to be seen.

Shhh… New Google Security Chief – In Search of Balance with Privacy

Here’s an insight to one man at Google to keep tab on – see the article below.

New Google security chief looks for balance with privacy
By GLENN CHAPMAN, AFP April 19, 2015 4:55am

MOUNTAIN VIEW, United States – Google has a new sheriff keeping watch over the wilds of the Internet.

Austrian-born Gerhard Eschelbeck has ranged the British city of Oxford; cavorted at notorious Def Con hacker conclaves, wrangled a herd of startups, and camped out in Silicon Valley.

He now holds the reins of security and privacy for all-things Google.

In an exclusive interview with AFP, Eschelbeck spoke of using Google’s massive scope to protect users from cyber villains such as spammers and state-sponsored spies.

“The size of our computing infrastructure allows us to process, analyze, and research the changing threat landscape and look ahead to predict what is coming,” Eschelbeck said during his first one-on-one press interview in his new post.

“Security is obviously a constant race; the key is how far can you look ahead.”

Eschelbeck took charge of Google’s 500-strong security and privacy team early this year, returning to Silicon Valley after running engineering for a computer security company in Oxford for two years.

“It was a very natural move for me to join Google,” Eschelbeck said. “What really excited me was doing security at large scale.”

Google’s range of global services and products means there are many fronts for a security expert to defend. Google’s size also means there are arsenals of powerful computer servers for defenders to employ and large-scale data from which to discern cyber dangers.

Eschelbeck’s career in security stretches back two decades to a startup he built while a university student in Austria that was acquired by security company McAfee.

What started out as a six-month work stint in California where McAfee is based turned into a 15-year stay by Eschelbeck.

He created and advised an array of computer security startups before heading off to Oxford. Eschelbeck, has worked at computer technology titans such as Sophos and Qualys, and holds patents for network security technologies.

Constant attack

He was confident his team was up to the challenge of fending off cyber attacks, even from onslaughts of sophisticated operations run by the likes of the US National Security Agency or the Chinese military.

Eschelbeck vowed that he would “absolutely” find any hacker that came after his network.

“As a security guy, I am never comfortable,” he said. “But, I do have a very strong team…I have confidence we have the right reactive and proactive defense mechanisms as well.”

State-sponsored cyber attacks making news in the past year come on top of well-known trends of hacking expressly for fun or profit.

The sheer numbers of attack “vectors” has rocketed exponentially over time, with weapons targeting smartphones, applications, datacenters, operating systems and more.

“You can safely assume that every property on the Internet is continuously under attack,” Eschelbeck said.

“I feel really strong about our ability to identify them before they become a threat and the ability to block and prevent them from entering our environment.”

Scrambling data

Eschelbeck is a backer of encrypting data, whether it be an email to a friend or photos stored in the cloud.

“I hope for a time when all the traffic on the Internet is encrypted,” he said.

“You’re not sending a letter to your friend in a transparent envelop, and that is why encryption in transport is so critical.”

He believes that within five years, accessing accounts with no more than passwords will be a thing of the past.

Google lets people require code numbers sent to phones be used along with passwords to access accounts in what is referred to as “two-factor” authentication.

The Internet titan also provides “safe browsing” technology that warns people when they are heading to websites rigged to attack visitors.

Google identifies about 50,000 malicious websites monthly, and another 90,000 phishing websites designed to trick people into giving up their passwords or other valuable personal information, Eschelbeck said.

“We have some really great visibility into the Web, as you can imagine,” he said.

“The time for us to recognize a bad site is incredibly short.”

Doubling-down on privacy

Eschelbeck saw the world of online security as fairly black and white, while the privacy side of his job required subjective interpretations.

Google works closely with data protection authorities in Europe and elsewhere to try and harmonize privacy protections with the standards in various countries.

“I really believe that with security and privacy, there is more overlap than there are differences,” he said.

“We have made a tremendous effort to focus and double-down on privacy issues.”

As have other large Internet companies, Google has routinely made public requests by government agencies for information about users.

Requests are carefully reviewed, and only about 65 percent of them satisfied, according to Google.

“Privacy, to me, is protecting and securing my activities; that they are personal to myself and not visible to the whole wide world,” Eschelbeck said. — Agence France-Presse

Shhh… BadUSB Evil Accessories

Think thrice next time before you plug in USB devices like keyboard, flash memory, webcam, speakers, hub, mice, etc, into your computer as the occasional virus scan and install is no longer safe.

ToyUSB

Several reports have now emerged that hackers could now load malicious software onto cheap petite chips that control the functions inside these devices which have nothing to shield against any tampering of their code.

In other words, these so called BadUSB are reprogrammed into a new form of covert weapons to spoof and take control of a computer, smuggle out data and also spy on the user.

Karsten Nohl, chief scientist with Berlin’s SR Labs will demonstrate these findings in a Black Hat security conference in Las Vegas scheduled 2-7 August 2014.

 

How to Beat the CIA and Protect Your Data

A little secret and long overdue column – as I have promised some weeks ago.

How about leading a cyber lifestyle without the risks of compromising your computer, privacy and precious confidential data… ie. your life?!

There’s an easy solution and you do not have to be a computer expert. But the CIA, MI6, etc, wouldn’t want you to know the trick… because you can beat those spies and hackers by going online and leaving no trace.

Read the full article here.