9 Iranians Charged in Hacking 176 Universities, Intellectual Property

Nine Iranians Charged With Conducting Massive Cyber Theft Campaign On Behalf Of The Islamic Revolutionary Guard Corps

Mabna Institute Hackers Penetrated Systems Belonging to Hundreds of Universities, Companies, and Other Victims to Steal Research, Academic Data, Proprietary Data, and Intellectual Property

Rod J. Rosenstein, the Deputy Attorney General of the United States, Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Division of the Federal Bureau of Investigation (“FBI”), and John C. Demers, Assistant Attorney General for National Security, announced today the unsealing of an indictment charging GHOLAMREZA RAFATNEJAD, EHSAN MOHAMMADI, ABDOLLAH KARIMA, a/k/a “Vahid Karima,” MOSTAFA SADEGHI, SEYED ALI MIRKARIMI, MOHAMMED REZA SABAHI, ROOZBEH SABAHI, ABUZAR GOHARI MOQADAM, and SAJJAD TAHMASEBI.  The defendants were each leaders, contractors, associates, hackers-for-hire, and affiliates of the Mabna Institute, an Iran-based company that was responsible for a coordinated campaign of cyber intrusions that began in at least 2013 into computer systems belonging to 144 U.S.-based universities, 176 universities across 21 foreign countries, 47 domestic and foreign private sector companies, the United States Department of Labor, the Federal Energy Regulatory Commission, the State of Hawaii, the State of Indiana, the United Nations, and the United Nations Children’s Fund.  Through the activities of the defendants, the Mabna Institute conducted these intrusions to steal over 30 terabytes of academic data and intellectual property from universities, and email inboxes from employees of victim private sector companies, government victims, and non-governmental organizations.  The defendants conducted many of these intrusions on behalf of the Islamic Republic of Iran’s (“Iran”) Islamic Revolutionary Guard Corps (“IRGC”), one of several entities within the government of Iran responsible for gathering intelligence, as well as other Iranian government clients.  In addition to these criminal charges, today the Department of Treasury’s Office of Foreign Assets Control (OFAC) designated the Mabna Institute and the nine defendants for sanctions for the malicious cyber-enabled activity outlined in the Indictment.

Deputy Attorney General Rod J. Rosenstein said:  “These nine Iranian nationals allegedly stole more than 31 terabytes of documents and data from more than 140 American universities, 30 American companies, five American government agencies, and also more than 176 universities in 21 foreign countries.  For many of these intrusions, the defendants acted at the behest of the Iranian government and, specifically, the Iranian Revolutionary Guard Corps.  The Department of Justice will aggressively investigate and prosecute hostile actors who attempt to profit from America’s ideas by infiltrating our computer systems and stealing intellectual property.  This case is important because it will disrupt the defendants’ hacking operations and deter similar crimes.”

Manhattan U.S. Attorney Geoffrey S. Berman said:  “Today, in one of the largest state-sponsored hacking campaigns ever prosecuted by the Department of Justice, we have unmasked criminals who normally hide behind the ones and zeros of computer code.  As alleged, this massive and brazen cyber-assault on the computer systems of hundreds of universities in 22 countries, including the United States, and dozens of private sector companies and governmental organizations was conducted on behalf of Iran’s Islamic Revolutionary Guard.  The hackers targeted innovations and intellectual property from our country’s greatest minds.  These defendants are now fugitives from American justice, no longer free to travel outside Iran without risk of arrest.  The only way they will see the outside world is through their computer screens, but stripped of their greatest asset – anonymity.”

FBI Assistant Director William F. Sweeney Jr. said:  “The numbers alone in this case are staggering, over 300 universities and 47 private sector companies both here in the United States and abroad were targeted to gain unauthorized access to online accounts and steal data.  An estimated 30 terabytes was removed from universities’ accounts since this attack began, which is roughly equivalent of 8 billion double-sided pages of text.  It is hard to quantify the value on the research and information that was taken from victims but it is estimated to be in the billions of dollars. The nine Iranians indicted today now find themselves wanted by the FBI and our partner law enforcement agencies around the globe – and like other cyber criminals they will soon learn their ability to freely move was just limited to the virtual world only.”

According to the allegations contained in the Indictment[1] unsealed today in Manhattan federal court:

Background on the Mabna Institute

GHOLAMREZA RAFATNEJAD and EHSAN MOHAMMADI, the defendants, founded the Mabna Institute in approximately 2013 to assist Iranian universities and scientific and research organizations in stealing access to non-Iranian scientific resources.  In furtherance of its mission, the Mabna Institute employed, contracted, and affiliated itself with hackers-for-hire and other contract personnel to conduct cyber intrusions to steal academic data, intellectual property, email inboxes and other proprietary data, including ABDOLLAH KARIMA, a/k/a “Vahid Karima,” MOSTAFA SADEGHI, SEYED ALI MIRKARIMI, MOHAMMED REZA SABAHI, ROOZBEH SABAHI, ABUZAR GOHARI MOQADAM, and SAJJAD TAHMASEBI.  The Mabna Institute contracted with both Iranian governmental and private entities to conduct hacking activities on their behalf, and specifically conducted the university spearphishing campaign on behalf of the IRGC.  The Mabna Institute is located at Tehran, Sheikh Bahaii Shomali, Koucheh Dawazdeh Metri Sevom, Plak 14, Vahed 2, Code Posti 1995873351.

University Hacking Campaign

The Mabna Institute, through the activities of the defendants, targeted over 100,000 accounts of professors around the world.  They successfully compromised approximately 8,000 professor email accounts across 144 U.S.-based universities, and 176 universities located in foreign countries, including Australia, Canada, China, Denmark, Finland, Germany, Ireland, Israel, Italy, Japan, Malaysia, Netherlands, Norway, Poland, Singapore, South Korea, Spain, Sweden, Switzerland, Turkey, and the United Kingdom.  The campaign started in approximately 2013, and has continued through at least December 2017, and broadly targeted all types of academic data and intellectual property from the systems of compromised universities, including, among other things, academic journals, theses, dissertations, and electronic books.  Through the course of the conspiracy, U.S.-based universities spent over approximately $3.4 billion to procure and access such data and intellectual property.

The hacking campaign against universities was conducted across multiple stages.  First, the defendants conducted online reconnaissance of university professors, including to determine these professors’ research interests and the academic articles they had published.  Second, using the information collected during the reconnaissance phase, the defendants created and sent spearphishing emails to targeted professors, which were personalized and created so as to appear to be sent from a professor at another university.  In general, those spearphishing emails indicated that the purported sender had read an article the victim professor had recently published, and expressed an interest in several other articles, with links to those additional articles included in the spearphishing email.  If the targeted professor clicked on certain links in the email, the professor would be directed to a malicious Internet domain named to appear confusingly similar to the authentic domain of the recipient professor’s university.  The malicious domain contained a webpage designed to appear to be the login webpage for the victim professor’s university.  It was the defendants’ intent that the victim professor would be led to believe that he or she had inadvertently been logged out of his or her university’s computer system, prompting the victim professor for his or her login credentials.  If a professor then entered his or her login credentials, those credentials were then logged and captured by the hackers.

Finally, the members of the conspiracy used stolen account credentials to obtain unauthorized access to victim professor accounts, through which they then exfiltrated intellectual property, research, and other academic data and documents from the systems of compromised universities, including, among other things, academic journals, theses, dissertations, and electronic books.  The defendants targeted data across all fields of research and academic disciplines, including science and technology, engineering, social sciences, medical, and other professional fields.  At least approximately 31.5 terabytes of academic data and intellectual property from compromised universities were stolen and exfiltrated to servers under the control of members of the conspiracy located in countries outside the United States.

In addition to stealing academic data and login credentials for university professors for the benefit of the Government of Iran, the defendants also sold the stolen data through two websites, Megapaper.ir (“Megapaper”) and Gigapaper.ir (“Gigapaper”).  Megapaper was operated by Falinoos Company (“Falinoos”), a company controlled by ABDOLLAH KARIMA, a/k/a “Vahid Karima,” the defendant, and Gigapaper was affiliated with KARIMA.  Megapaper sold stolen academic resources to customers within Iran, including Iran-based public universities and institutions, and Gigapaper sold a service to customers within Iran whereby purchasing customers could use compromised university professor accounts to directly access the online library systems of particular United States-based and foreign universities.

Prior to the unsealing of the Indictment, the FBI provided foreign law enforcement partners with detailed information regarding victims within their jurisdictions, so that victims in foreign countries could be notified and so that foreign partners could assist in remediation efforts.

Private Sector Hacking Victims

In addition to targeting and compromising universities, the Mabna Institute defendants targeted and compromised employee email accounts for at least approximately 36 United States-based private companies, and at least approximately 11 private companies based in Germany, Italy, Switzerland, Sweden, and the United Kingdom, and exfiltrated entire email mailboxes from compromised employees’ accounts.  Among the United States-based private sector victims were three academic publishers, two media and entertainment companies, one law firm, 11 technology companies, five consulting firms, four marketing firms, two banking and/or investment firms, two online car sales companies, one healthcare company, one employee benefits company, one industrial machinery company, one biotechnology company, one food and beverage company, and one stock images company.

In order to compromise accounts of private sector victims, members of the conspiracy used a technique known as “password spraying,” whereby they first collected lists of names and email accounts associated with the intended victim company through open source Internet searches.  Then, they attempted to gain access to those accounts with commonly-used passwords, such as frequently used default passwords, in order to attempt to obtain unauthorized access to as many accounts as possible.  Once they obtained access to the victim accounts, members of the conspiracy, among other things, exfiltrated entire email mailboxes from the victims.  In addition, in many cases, the defendants established automated forwarding rules for compromised accounts that would prospectively forward new outgoing and incoming email messages from the compromised accounts to email accounts controlled by the conspiracy.

In connection with the unsealing of the Indictment, today the FBI issued a FBI Liaison Alert System (FLASH) message, providing detailed information regarding the vulnerabilities targeted and the intrusion vectors used by the Mabna Institute in their campaign against private sector companies, to provide the public with information to assist in detecting and remediating the threat.

U.S. Government and NGO Hacking Victims

In the same time period as the university and private sector hacking campaigns described above, the Mabna Institute also conducted a computer hacking campaign against various governmental and non-governmental organizations within the United States.  During the course of that campaign, employee login credentials were stolen by members of the conspiracy through password spraying.  Among the victims were the following, all based in the United States:  the United States Department of Labor, the Federal Energy Regulatory Commission, the State of Hawaii, the State of Indiana, the State of Indiana Department of Education, the United Nations, and the United Nations Children’s Fund.  As with private sector victims, the defendants targeted for theft email inboxes of employees of these organizations.

*                *                *

GHOLAMREZA RAFATNEJAD, EHSAN MOHAMMADI, ABDOLLAH KARIMA, a/k/a “Vahid Karima,” MOSTAFA SADEGHI, SEYED ALI MIRKARIMI, MOHAMMED REZA SABAHI, ROOZBEH SABAHI, ABUZAR GOHARI MOQADAM, and SAJJAD TAHMASEBI, the defendants, are citizens and residents of Iran.  Each is charged with one count of conspiracy to commit computer intrusions, which carries a maximum sentence of five years in prison; one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison; two counts of unauthorized access of a computer, each of which carries a maximum sentence of five years in prison; two counts of wire fraud, each of which carries a maximum sentence of 20 years in prison; and one count of aggravated identity theft, which carries a mandatory sentence of two years in prison.  The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the assigned judge.

Mr. Berman praised the outstanding investigative work of the FBI, the assistance of the United Kingdom’s National Crime Agency (NCA), and the support of the OFAC.  The case is being handled by the Office’s Complex Frauds and Cybercrime Unit.  Assistant United States Attorneys Timothy T. Howard, Jonathan Cohen, and Richard Cooper are in charge of the prosecution, with assistance provided by Heather Alpino and Jason McCullough of the National Security Division’s Counterintelligence and Export Control Section.

The charges contained in the Indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.


[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.

Topic(s):
Cyber Crime
Press Release Number:
18-089

POTUS and Omnibus, No Line Item Veto?

2232 pages of stupid and everyone should take the time to just scan the $1.3 trillion spending bill. I got to page 184 last night and went to bed mad. There is no line item veto but there should be. President Trump can veto the whole truck load of crap and should. In place of the line item veto, he can wield his pen and sign an Executive Order eliminating countless crazy spending things or suspend some of the acts for the rest of his term. Something like the Food for Progress Act. And we are still bailing out the healthcare insurance companies…. anyway…there is also $687 million to address Russian interference. Just what is that plan?

  1. How about the Cloud Act? Foreign governments get access to our data? WHAT?   2. Okay how about Trump’s “wall funding.” It’s not a wall. It’s repairs, drones and pedestrian fencing – no construction. 3. Then we have the House Freedom Caucus with their letter to President Trump:   So…need more?  Conservative Review has these 10 items for your consideration.Here are the top 10 problems with the bill:

    1) Eye-popping debt: This bill codifies the $143 billion busting of the budget caps, which Congress adopted in February, for the remainder of this fiscal year. This is on top of the fact that government spending already increased $130 billion last year over the final year of Obama’s tenure. Although the Trump administration already agreed to this deal in February, the OMB put out a memo suggesting that Congress appropriate only $10 billion of the extra $63 billion in non-defense discretionary spending. Now it’s up to Trump to follow through with a veto threat. It’s not just about 2018. This bill paves the road to permanently bust the budget caps forever, which will lead to trillions more in spending and cause interest payments on the debt to surge past the cost of the military or even Medicaid in just eight years.

    Keep in mind that all the additional spending will be stuffed into just six months remaining to the fiscal year, not a 12-month period. A number of onerous bureaucracies will get cash booster shots instead of the cuts President Trump wanted.

    Remember when Mick Mulvaney said the fiscal year 2017 budget betrayal was needed so that he could do great things with the fiscal year 2018 budget? Good times.

    2) Bait and switch on the wall: Since this bill increases spending for everything, one would think that at least the president would get the $15 billion or so needed for the wall. No. The bill includes only $641 million for 33 miles of new border fencing but prohibits that funding for being used for concrete barriers. My understanding is that President Trump already has enough money to begin construction for roughly that much of the fence, and pursuant to the Secure Fence Act, he can construct any barrier made from any This actually weakens current law.

    3) Funds sanctuary cities: When cities and states downright violate federal law and harbor illegal aliens, Congress’ silence in responding to it is deafening. Cutting off block grants to states as leverage against this dangerous crisis wasn’t even under discussion, even as many other extraneous and random liberal priorities were seriously considered.

    4) Doesn’t fund interior enforcement: Along with clamping down on sanctuary cities, interior enforcement at this point is likely more important than a border wall. After Obama’s tenure left us with a criminal alien and drug crisis, there is an emergency to ramp up interior enforcement. Trump requested more ICE agents and detention facilities, but that call was ignored in this bill. Trump said that the midterms must focus on Democrats’ dangerous immigration policies. Well, this bill he is supporting ensures that they will get off scot-free.

    5) Doesn’t defund court decisions: Some might suggest that this bill was a victory because at least it didn’t contain amnesty. But we have amnesty right now, declared, promulgated, and perpetuated by the lawless judiciary. For Congress to pass a budget bill and not defund DACA or defund the issuance of visas from countries on Trump’s immigration pause list in order to fight back against the courts is tantamount to Congress directly passing amnesty.

    6) Funds Planned Parenthood: We have no right to a border wall or more ICE funding, but somehow funding for a private organization harvesting baby organs was never in jeopardy or even under discussion as a problem.

    7) Gun control without due process: Some of you might think I’m being greedy, demanding that “extraneous policies” be placed in a strict appropriations bill. Well, gun control made its way in. They slipped in the “Fix NICS” bill, which pressures and incentivizes state and federal agencies to add more people to the system even though there is already bipartisan recognition that agencies are adding people who should not be on the list, including veterans, without any due process in a court of law. They are passing this bill without the House version of the due process protections and without the promised concealed carry reciprocity legislation. Republicans were too cowardly to have an open debate on such an important issue, so they opted to tack it onto a budget bill, which is simply unprecedented. The bill also throws more funding at “school violence” programs when they refuse to repeal the gun-free zone laws that lie at the root of the problem.

    8) More “opioid crisis funding” without addressing the problem: The bill increases funding for “opioid addiction prevention and treatment” by $2.8 billion relative to last year, on top of the $7 billion they already spent in February. This is the ultimate joke of the arsonist pretending to act as the firefighter, because as we’ve chronicled in detail, these funds are being used to clamp down on legitimate prescription painkillers and create a de facto national prescription registry so that government can violate privacy and practice medicine. Meanwhile, the true culprits are illicit drugs and Medicaid expansion, exacerbated by sanctuary cities, as the president observed himself. Yet those priorities are jettisoned from the bill.

    9) Student loan bailout: The bill offers $350 million in additional student loan forgiveness … but only for graduates who take “lower-paid” government jobs or work for some non-profits! This was a big priority of Sen. Elizabeth Warren.  Government created this problem of skyrocketing student debt by fueling it with subsidies and giving the higher education cartel a monopoly of accreditation, among other things. Indeed, this very same bill increases Pell grants by $2 billion. But more money is always the solution, especially when it helps future government workers.

    10) Schumer’s Gateway projects earmark: Conservatives had a wish list of dozens of items, but it’s Schumer’s local bridge and tunnel project that got included. While the bill didn’t contain as much as Schumer asked for (remember the tactic of starting off high), the program would qualify for up to $541 million in new transportation funding. Also, the bill would open up $2.9 billion in grants through the Federal Transit Administration for this parochial project that should be dealt with on a state level. New York has high taxes for a reason.

 

With Increase in Pentagon Budget, Can U.S. Compete with Russia/China?

WASHINGTON — Hours after Russian President Vladimir Putin claimed his military has successfully tested a hypersonic cruise missile, the head of the Pentagon’s high-tech workshop says the U.S. is on track for a series of hypersonic prototype tests in the coming years, thanks to a big spending increase in the fiscal year 2019 budget request.

Even with that funding boost, Steven Walker, the director of the Pentagon’s DARPA, warned that it is time for America to come to grips with the fact that a national push is needed if the U.S. is to keep pace with competitors in the hypersonic realm.

Hypersonic flight going Mach 5, or five times the speed of sound — has been a dream of military planners for years, for obvious reasons. Any weapon system able to move that quickly would be able to avoid conventional missile and air defenses, and would have benefits both for manned or unmanned systems.

The X-51A Waverider, a U.S. Air Force test program, has successfully shown hypersonic flight is possible. But Russia may have passed the U.S. in this crucial technology. (U.S. Air Force graphic)

“We have lost our technical advantage in hypersonics,” Selva said Jan. 30 at an event hosted by the Defense Writers’ Group. “We haven’t lost the hypersonics fight.”

Whereas both those nations threw a ton of money at developing a specific capability, the U.S. has invested to “come up with a family of hypersonic systems that work without necessarily trying to close all the technology pieces at the front end,” Selva said. “We’re going to start flying these systems in 2019, you’ll see lots of flight tests, and we’re excited that these will be systems that will be very capable that we can use from standoff” range, Walker said. “These are not going to be just flying propulsion concepts through the air.” More here.

***

Michael D. Griffin, the undersecretary of defense for research and engineering, today spoke to more than 500 senior leaders from the U.S. government and defense industry to explore the impact of integrating directed energy capabilities into the national security enterprise at the 2018 Directed Energy Summit at the Ronald Reagan Building and International Trade Center here.

Directed energy weapon systems employ lasers, microwaves and particle beams against enemy targets.

Griffin has been in this arena since the 1980s and worked for the first three directors of the original missile defense agency.

“Directed energy was then in our view an important part of our future portfolio because only directed energy could offer the kind of extended magazine, if you will, the extended range, speed of light delivery of the kill,” Griffin said. “It was the only way that in the long run you could see yourself competing with the threat and coming out on top.”

Directed energy has gone through a lot of evolutions over the years, Griffin added.

Air Force has directed energy weapons; now comes the hard part photo

Superpower Competition

Griffin said there’s a recognition that superpower competition is again on the rise, and the United States must modernize its military if it wants to maintain its position of global preeminence.

“We will not win in a man-to-man fight,” Griffin said. “We have to have the technological leverage. That realization was responsible for the creation of my office, to elevate the role of technology maturation and deployment and I believe it is responsible for the renewed interest in directed energy weapons.”

And, directed energy is more than big lasers, the undersecretary said.

The undersecretary asked his audience to consider directed energy systems such as high-power microwaves, different laser designs and particle beam weapons.

“Each of these systems has its own advantages and each has its own disadvantages,” he said. “We should not lose our way as we come out of the slough of despondence in directed energy into an environment that is more welcoming of our contributions. We should not lose our way with some of the other technologies that were pioneered in the ’80s and early-’90s and now stand available for renewed effort.”

In his capacity as undersecretary for research and engineering, Griffin said he is going to be very welcoming of other approaches that may not have had a lot of focus in recent years or decades.

Directed Energy Venues

There are four venues, he said, in which directed energy can serve: land, air, sea and space.

He urged the audience to not forget that because the technologies are fundamental and can be applied across those domains, all of which are important to them.

The basing strategies, the warfighting tactics, techniques, procedures, the logistics support requirements, the manpower that is needed for support, all of these things are different and are required to be different because of the different venues in which they will have to operate, he added. More here.

 

4 Days of Food Left…Panic? National Grid Hacked

If there is no transportation, there is no food, medicine or basic supplies….what country is ready to deal with this?

British cities would be uninhabitable within days and the country is only a few meals from anarchy if the National Grid was taken down in a cyber attack or solar storm, disaster and security experts have warned.

Modern life is so reliant on electricity that a prolonged blackout would quickly lead to a loss of water, fuel, banking, transport and communications that would leave the country “in the Stone Age”.

Russia plot to cut off UK with hackers taking down ... photo

The warning comes weeks after the Defence Secretary, Gavin Williamson, said Russia had been spying on the UK’s energy infrastructure and could cause “thousands and thousands and thousands” of deaths if it crippled the power supply.

***

The U.S. government has just released an important cybersecurity alert that confirms Russian government cyberattacks targeting energy and other critical infrastructure sectors in the United States.

While there has recently been a significant rise in cyberattacks in these industries, up to now we’ve only been able to speculate on who the actors are, or what their motives may be. In this case the threat actor and their strategic intent has been clearly confirmed, something the U.S. government rarely does publicly.

In addition, the US-CERT alert provides descriptions of each stage of the attack, detailed indicators of compromise (IOCs), and a long list of detection and prevention measures. Many of the attack tactics are like Dragonfly 2.0, so much so that one might call this an expanded playbook for Dragonfly. The Nozomi Networks solution ships today with an analysis toolkit that identifies the presence of Dragonfly 2.0 IOCs.

This article is intended to help you gain perspective on this recent alert, provide additional guidance on what security measures to take, and describe how the Nozomi Networks solution can help.

Russian-Cyberattacks-on-Infrastructure

U.S. energy facilities, like this one, are one of the critical infrastructure targets of the Russian cyberattacks.

Multi-Stage Campaigns Provide Opportunities for Early Detection

The US-CERT alert characterizes this attack as a multi-stage cyber intrusion campaign where Russian cyber actors conducted spear phishing and gained remote access into targeted industrial networks. After obtaining access, the threat vectors conducted network reconnaissance, moved laterally, and collected information pertaining to Industrial Control Systems (ICS).

This pattern of behavior is typical of APTs (Advanced Persistent Threats). APTs occur over an extended period, meaning there is an opportunity to detect and stop them before damage is done. With the right technology monitoring the industrial network, it is much harder for them to go unobserved before their final attack.

In this case the Russian cyberattacks started by infecting staging targets, which are peripheral organizations, such as trusted third-party suppliers, as pivot points for attacking the final intended targets.

The attackers used a multitude of tactics involving information relevant to industrial control professionals for initial infection of the staging targets. Examples include:

  • Altering trade publication websites
  • Sending emails containing resumes for ICS personnel as infected Microsoft Word attachments
  • Analyzing publicly available photos that inadvertently contained information about industrial systems

The credentials of staging targets’ staff were in turn used to send spear phishing emails to the staff of the intended targets. They received malicious .docx files, which communicated with a command and control (C2) server to steal their credentials.

The SMB (Server Message Block) network protocol was used throughout the spear phishing phases to communicate with external servers, as was described for the Dragonfly 2.0 attacks.This is a distinctive tactic. SMB is usually only used to communicate within LANs, not for outbound communications. Now that this is known, asset owners should ensure their firewalls are locked down for outbound service restrictions.

The credentials of the intended targets were used to access victim’s networks. From there, the malware established multiple local administrator accounts, each with a specific purpose. The goals ranged from creation of additional accounts to cleanup activity. For the report, click here.

***

What Is Known

Forensic analysis shows that the threat actors sought information on network and organizational design and control system capabilities within the organization. In one instance, the report says, the threat actors downloaded a small photo from a publicly accessible human resource page, which, when expanded, was a high-resolution photo that displayed control systems equipment models and status information in the background. The threat actors also compromised third-party suppliers to download source code for several intended targets’ websites. They also attempted to remotely access corporate web-based email and virtual private network (VPN) connections.

Once inside the intended target’s network, the threat actors used privileged credentials to access domain controllers via remote desktop protocols (RDP) and then used the batch scripts to enumerate hosts and users, as well as to capture screenshots of systems across the network.

The threat is inside. US-CERT on March 15 warned that threat actors associated with the Russian government had infiltrated ICS and SCADA systems at power plants using a variety of tactics. This image is a DHS reconstruction of a screenshot fragment of a human machine interface (HMI) that the threat actors accessed. Source: US-CERT

The threat is inside. US-CERT on March 15 warned that threat actors associated with the Russian government had infiltrated ICS and SCADA systems at power plants using a variety of tactics. This image is a DHS reconstruction of a screenshot fragment of a human machine interface (HMI) that the threat actors accessed. Source: US-CERT

Along with publishing an extensive list of indicators of compromise, the DHS and FBI recommended that network administrators review IP addresses, domain names, file hashes, network signatures, and a consolidated set of YARA rules for malware associated with the intrusion authored by the National Cybersecurity and Communications Integration Center. YARA is an open-source and multiplatform tool that provides a mechanism to exploit code similarities between malware samples within a family.

When Biden and Kerry Concocted a Shady Equity Firm

Keep this post in your bookmarks as we enter into the 2020 general election….

Primer:

1. China plants industrial espionage operatives in the U.S. that steal government contract secrets and sell them back to China. FBI caught at least one.

2. Through cyber espionage, China has stolen much of the F-35 technology, more than 50 terabytes.

3. John Kerry and Joe Biden did exactly the same thing as Hillary…sold access for money while exploiting it all as diplomatic missions with the title(s) of bi-lateral agreements.

4. Subpoena former Treasury Secretary Jack Lew and ask him about the CFIUS approvals of Chinese back enterprises. We may surely need to go back to former Treasury Secretary, Tim Geithner, did he set the table for all this with Obama’s approval creating that ‘Asia Pivot‘?

5. What does Congress know about foreign investments and when do they know it? They get reports, but who is asking questions, anyone?

http://commonsensenation.net/wp-content/uploads/2018/03/Biden.jpg photo

NYP: Joe Biden and John Kerry have been pillars of the Washington establishment for more than 30 years. Biden is one of the most popular politicians in our nation’s capital.

His demeanor, sense of humor, and even his friendly gaffes have allowed him to form close relationships with both Democrats and Republicans. His public image is built around his “Lunch Bucket Joe” persona. As he reminds the American people on regular occasions, he has little wealth to show for his career, despite having reached the vice presidency.

One of his closest political allies in Washington is former senator and former Secretary of State John Kerry. “Lunch Bucket Joe” he ain’t; Kerry is more patrician than earthy. But the two men became close while serving for several decades together in the US Senate. The two “often talked on matters of foreign policy,” says Jules Witcover in his Biden biography.

So their sons going into business together in June 2009 was not exactly a bolt out of the blue.

But with whom their sons cut lucrative deals while the elder two were steering the ship of state is more of a surprise.

What Hunter Biden, the son of America’s vice president, and Christopher Heinz, the stepson of the chairman of the Senate Committee on Foreign Relations (later to be secretary of state), were creating was an international private equity firm. It was anchored by the Heinz family alternative investment fund, Rosemont Capital. The new firm would be populated by political loyalists and positioned to strike profitable deals overseas with foreign governments and officials with whom the US government was negotiating.

Hunter Biden, Vice President Joe Biden’s youngest son, had gone through a series of jobs since graduating from Yale Law School in 1996, including the hedge-fund business.

By the summer of 2009, the 39-year-old Hunter joined forces with the son of another powerful figure in American politics, Chris Heinz. Senator John Heinz of Pennsylvania had tragically died in a 1991 airplane crash when Chris was 18. Chris, his brothers, and his mother inherited a large chunk of the family’s vast ketchup fortune, including a network of investment funds and a Pennsylvania estate, among other properties. In May 1995, his mother, Teresa, married Senator John Kerry of Massachusetts. That same year, Chris graduated from Yale, and then went on to get his MBA from Harvard Business School.

Joining them in the Rosemont venture was Devon Archer, a longtime Heinz and Kerry friend.

The three friends established a series of related LLCs. The trunk of the tree was Rosemont Capital, the alternative investment fund of the Heinz Family Office. Rosemont Farm is the name of the Heinz family’s 90-acre estate outside Fox Chapel, Pennsylvania.

The small fund grew quickly. According to an email revealed as part of a Securities and Exchange Commission investigation, Rosemont described themselves as “a $2.4 billion private equity firm co-owned by Hunter Biden and Chris Heinz,” with Devon Archer as “Managing Partner.”

The partners attached several branches to the Rosemont Capital trunk, including Rosemont Seneca Partners, LLC, Rosemont Seneca Technology Partners, and Rosemont Realty.

Of the various deals in which these Rosemont entities were involved, one of the largest and most troubling concerns was Rosemont Seneca Partners.

Rather than set up shop in New York City, the financial capital of the world, Rosemont Seneca leased space in Washington, DC. They occupied an all-brick building on Wisconsin Avenue, the main thoroughfare of exclusive Georgetown. Their offices would be less than a mile from John and Teresa Kerry’s 23-room Georgetown mansion, and just two miles from both Joe Biden’s office in the White House and his residence at the Naval Observatory.

Over the next seven years, as both Joe Biden and John Kerry negotiated sensitive and high-stakes deals with foreign governments, Rosemont entities secured a series of exclusive deals often with those same foreign governments.

Some of the deals they secured may remain hidden. These Rosemont entities are, after all, within a private equity firm and as such are not required to report or disclose their financial dealings publicly.

Some of their transactions are nevertheless traceable by investigating world capital markets. A troubling pattern emerges from this research, showing how profitable deals were struck with foreign governments on the heels of crucial diplomatic missions carried out by their powerful fathers. Often those foreign entities gained favorable policy actions from the United States government just as the sons were securing favorable financial deals from those same entities.

Nowhere is that more true than in their commercial dealings with Chinese government-backed enterprises.

Rosemont Seneca joined forces in doing business in China with another politically connected consultancy called the Thornton Group. The Massachusetts-based firm is headed by James Bulger, the nephew of the notorious mob hitman James “Whitey” Bulger. Whitey was the leader of the Winter Hill Gang, part of the South Boston mafia. Under indictment for 19 murders, he disappeared. He was later arrested, tried, and convicted.

James Bulger’s father, Whitey’s younger brother, Billy Bulger, serves on the board of directors of the Thornton Group. He was the longtime leader of the Massachusetts state Senate and, with their long overlap by state and by party, a political ally of Massachusetts Senator John Kerry.

Less than a year after opening Rosemont Seneca’s doors, Hunter Biden and Devon Archer were in China, having secured access at the highest levels. Thornton Group’s account of the meeting on their Chinese-language website was telling: Chinese executives “extended their warm welcome” to the “Thornton Group, with its US partner Rosemont Seneca chairman Hunter Biden (second son of the now Vice President Joe Biden).”

The purpose of the meetings was to “explore the possibility of commercial cooperation and opportunity.” Curiously, details about the meeting do not appear on their English-language website.

Also, according to the Thornton Group, the three Americans met with the largest and most powerful government fund leaders in China — even though Rosemont was both new and small.

The timing of this meeting was also curious. It occurred just hours before Hunter Biden’s father, the vice president, met with Chinese President Hu in Washington as part of the Nuclear Security Summit.

There was a second known meeting with many of the same Chinese financial titans in Taiwan in May 2011. For a small firm like Rosemont Seneca with no track record, it was an impressive level of access to China’s largest financial players. And it was just two weeks after Joe Biden had opened up the US-China strategic dialogue with Chinese officials in Washington.

On one of the first days of December 2013, Hunter Biden was jetting across the Pacific Ocean aboard Air Force Two with his father and daughter Finnegan. The vice president was heading to Asia on an extended official trip. Tensions in the region were on the rise.

The American delegation was visiting Japan, China, and South Korea. But it was the visit to China that had the most potential to generate conflict and controversy. The Obama administration had instituted the “Asia Pivot” in its international strategy, shifting attention away from Europe and toward Asia, where China was flexing its muscles.

For Hunter Biden, the trip coincided with a major deal that Rosemont Seneca was striking with the state-owned Bank of China. From his perspective, the timing couldn’t have been better.

Vice President Biden, Hunter Biden and Finnegan arrived to a red carpet and a delegation of Chinese officials. Greeted by Chinese children carrying flowers, the delegation was then whisked to a meeting with Vice President Li Yuanchao and talks with President Xi Jinping.

Hunter and Finnegan Biden joined the vice president for tea with US Ambassador Gary Locke at the Liu Xian Guan Teahouse in the Dongcheng District in Beijing. Where Hunter Biden spent the rest of his time on the trip remains largely a mystery. There are actually more reports of his daughter Finnegan’s activities than his.

What was not reported was the deal that Hunter was securing. Rosemont Seneca Partners had been negotiating an exclusive deal with Chinese officials, which they signed approximately 10 days after Hunter visited China with his father. The most powerful financial institution in China, the government’s Bank of China, was setting up a joint venture with Rosemont Seneca.

The Bank of China is an enormously powerful financial institution. But the Bank of China is very different from the Bank of America. The Bank of China is government-owned, which means that its role as a bank blurs into its role as a tool of the government. The Bank of China provides capital for “China’s economic statecraft,” as scholar James Reilly puts it. Bank loans and deals often occur within the context of a government goal.

Rosemont Seneca and the Bank of China created a $1 billion investment fund called Bohai Harvest RST (BHR), a name that reflected who was involved. Bohai (or Bo Hai), the innermost gulf of the Yellow Sea, was a reference to the Chinese stake in the company. The “RS” referred to Rosemont Seneca. The “T” was Thornton.

The fund enjoyed an unusual and special status in China. BHR touted its “unique Sino-US shareholding structure” and “the global resources and network” that allowed it to secure investment “opportunities.” Funds were backed by the Chinese government.

In short, the Chinese government was literally funding a business that it co-owned along with the sons of two of America’s most powerful decision makers.

The partnership between American princelings and the Chinese government was just a beginning. The actual investment deals that this partnership made were even more problematic. Many of them would have serious national security implications for the United States.

In 2015, BHR joined forces with the automotive subsidiary of the Chinese state-owned military aviation contractor Aviation Industry Corporation of China (AVIC) to buy American “dual-use” parts manufacturer Henniges.

AVIC is a major military contractor in China. It operates “under the direct control of the State Council” and produces a wide array of fighter and bomber aircraft, transports, and drones — primarily designed to compete with the United States.

The company also has a long history of stealing Western technology and applying it to military systems. The year before BHR joined with AVIC, the Wall Street Journal reported that the aviation company had stolen technologies related to the US F-35 stealth fighter and incorporated them in their own stealth fighter, the J-31. AVIC has also been accused of stealing US drone systems and using them to produce their own.

In September 2015, when AVIC bought 51 percent of American precision-parts manufacturer Henniges, the other 49 percent was purchased by the Biden-and-Kerry-linked BHR.

Henniges is recognized as a world leader in anti-vibration technologies in the automotive industry and for its precise, state-of-the-art manufacturing capabilities. Anti-vibration technologies are considered “dual-use” because they can have a military application, according to both the State Department and Department of Commerce.

The technology is also on the restricted Commerce Control List used by the federal government to limit the exports of certain technologies. For that reason, the Henniges deal would require the approval of the Committee on Foreign Investment in the United States (CFIUS), which reviews sensitive business transactions that may have a national security implication.

According to BHR internal documents, the Henniges deal included “arduous and often-times challenging negotiations.” The CFIUS review in 2015 included representatives from numerous government agencies including John Kerry’s State Department.

The deal was approved in 2015.

Excerpted with permission from “Secret Empires: How the American Political Class Hides Corruption and Enriches Family and Friends,” by Peter Schweizer, published by Harper Collins. The book goes on sale March 20.