Category Archives: China

There is Spying, Espionage and Stupidity

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The Virginia-based cyber security firm Mandiant recently released a report detailing one source of persistent cyber attacks, the Chinese People’s Liberation Army. Mandiant estimates that since 2006, a single Chinese army cyberattack unit has compromised “141 companies spanning 20 major industries, from information technology and telecommunications to aerospace and energy,” using a “well-defined attack methodology, honed over years and designed to steal large volumes of valuable intellectual property.”

Mandiant explains that once these hackers have infiltrated an organization’s system, they “periodically revisit the victim’s network … and steal broad categories of intellectual property, including technology blueprints, proprietary manufacturing processes, test results, business plans, pricing documents, partnership agreements, and emails and contact lists”. On average, access to a victimized network is maintained for nearly a year.

Now for the Chinese human operatives….

State Dept. contractor allegedly paid by Chinese agent to spy on Americans – yet no charges filed 

Newly unsealed court documents obtained by Fox News show a State Department contractor allegedly was paid thousands by an individual thought to be a Chinese agent in exchange for information on Americans — but despite an FBI probe, the Justice Department declined to prosecute.

A November 2014 FBI affidavit, filed in the U.S. District Court for the District of Maryland, shows the bureau investigated the contractor for her admitted contact with individuals she believed to be Chinese intelligence officers.

The affidavit from agent Timothy S. Pappa states the translator, Xiaoming Gao, was paid “thousands of dollars to provide information on U.S. persons and a U.S. government employee.”

According to the documents, she admitted these meetings took place in hotel rooms in China for years, where she reported on her “social contacts” in the U.S. to an individual who went by the name of “Teacher Zhao.”

The detailed affidavit even goes on to say the translator briefly lived, “for free,” with a State Department employee — who held a top-secret clearance and designed high-security embassies, including the U.S. compound in Islamabad, Pakistan.

The State Department employee, who was not named, initially told the FBI he didn’t discuss his job with Gao, but later changed his statement.

According to the documents, Gao also told the FBI — during interviews in 2013 — that she once told “Teacher Zhao” about the travel plans of an American and ethnic Tibetan. This person told the FBI he ended up being interrogated by Chinese intelligence officers during a trip to Tibet, and a member of his family was imprisoned.

Yet the U.S. attorney’s office in Washington, D.C., which oversaw the case, recently declined to prosecute, allowing the documents to be unsealed. The office offered no further comment. The FBI also is saying nothing beyond the court documents that were filed to search a storage unit in suburban Washington, D.C.

On its face, a former senior Justice Department official said the decision not to prosecute is perplexing, because the case was unlikely to reveal investigative sources and methods.

“It’s not clear to me, based on the court files that were unsealed, how a prosecution of this person could possibly have compromised U.S. intelligence gathering,” Thomas Dupree, former deputy assistant attorney general under the George W. Bush administration, told Fox News. “If it jeopardizes or threatens to disrupt relations with another country, so be it. That you have to draw the line somewhere, and that we need to send a message that this sort of conduct and activity simply will not be tolerated.”

The State Department confirmed Xiaoming Gao worked for the Office of Language Services over a four-year period beginning in June 2010. This would have covered the tenures of former Secretary of State Hillary Clinton and sitting Secretary John Kerry.

“She was employed as a contract interpreter until February 2014, is not employed here anymore. And so any additional questions on this, I’d refer you to the FBI,” spokeswoman Marie Harf said.

When told the FBI was referring Fox News’ questions back to State, Harf responded: “I’m referring you back to them.”

The documents do not fully explain Gao’s side of the story.

Emails and phone calls to the consulting firm, which the translator listed on the web as her employer, have gone unanswered. Fox News extended an invitation to discuss the allegations. No attorney of record was filed with the court.

 

Clinton Foundation(s) Collusion

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From their website:

Creating Partnerships of Purpose We convene businesses, governments, NGOs, and individuals to improve global health and wellness, increase opportunity for women and girls, reduce childhood obesity

New Book, ‘Clinton Cash,’ Questions Foreign Donations to Foundation

The book does not hit shelves until May 5, but already the Republican Rand Paul has called its findings “big news” that will “shock people” and make voters “question” the candidacy of Hillary Rodham Clinton.

“Clinton Cash: The Untold Story of How and Why Foreign Governments and Businesses Helped Make Bill and Hillary Rich,” by Peter Schweizer — a 186-page investigation of donations made to the Clinton Foundation by foreign entities — is proving the most anticipated and feared book of a presidential cycle still in its infancy.

The book, a copy of which was obtained by The New York Times, asserts that foreign entities who made payments to the Clinton Foundation and to Mr. Clinton through high speaking fees received favors from Mrs. Clinton’s State Department in return.

“We will see a pattern of financial transactions involving the Clintons that occurred contemporaneous with favorable U.S. policy decisions benefiting those providing the funds,” Mr. Schweizer writes.

His examples include a free-trade agreement in Colombia that benefited a major foundation donor’s natural resource investments in the South American nation, development projects in the aftermath of the Haitian earthquake in 2010, and more than $1 million in payments to Mr. Clinton by a Canadian bank and major shareholder in the Keystone XL oil pipeline around the time the project was being debated in the State Department.

In the long lead up to Mrs. Clinton’s campaign announcement, aides proved adept in swatting down critical books as conservative propaganda, including Edward Klein’s “Blood Feud,” about tensions between the Clintons and the Obamas, and Daniel Halper’s “Clinton Inc.: The Audacious Rebuilding of a Political Machine.”

But “Clinton Cash” is potentially more unsettling, both because of its focused reporting and because major news organizations including The Times, The Washington Post and Fox News have exclusive agreements with the author  to pursue the story lines found in the book.

Members of the Senate Foreign Relations Committee, which includes Mr. Paul and Senator Marco Rubio of Florida, have been briefed on the book’s findings, and its contents have already made their way into several of the Republican presidential candidates’ campaigns.

Conservative “super PACs” plan to seize on “Clinton Cash,” and a pro-Democrat super PAC has already assembled a dossier on Mr. Schweizer, a speechwriting consultant to former President George W. Bush and a fellow at the conservative Hoover Institution who has contributed to the conservative website Breitbart.com, to make the case that he has a bias against Mrs. Clinton.

And the newly assembled Clinton campaign team is planning a full-court press to diminish the book as yet another conservative hit job.

A campaign spokesman, Brian Fallon, called the book part of the Republicans’ coordinated attack strategy on Mrs. Clinton “twisting previously known facts into absurd conspiracy theories,” and he said “it will not be the first work of partisan-fueled fiction about the Clintons’ record, and we know it will not be the last.”

The timing is problematic for Mrs. Clinton as she begins a campaign to position herself as a “champion for everyday Americans.”

From 2001 to 2012, the Clintons’ income was at least $136.5 million, Mr. Schweizer writes, using a figure previously reported in The Post. “During Hillary’s years of public service, the Clintons have conducted or facilitated hundreds of large transactions” with foreign governments and individuals, he writes. “Some of these transactions have put millions in their own pockets.”

The Clinton Foundation has come under scrutiny for accepting foreign donations while Mrs. Clinton served as secretary of state. Last week, the foundation revised its policy to allow donations from countries like Germany, Canada, the Netherlands and Britain but prohibit giving by other nations in the Middle East.

Mr. Schweizer’s book will be released the same day former President Bill Clinton and the Clintons’ daughter, Chelsea, will host the Clinton Global Initiative gathering with donors in Morocco, the culmination of a foundation trip to several African nations. (A chapter in the book is titled “Warlord Economics: The Clintons Do Africa.”)

There is a robust market for books critical of the Clintons. The thinly sourced “Blood Feud,” by Mr. Klein, at one point overtook Mrs. Clinton’s memoir “Hard Choices” on the best-seller list.

But whether Mr. Schweizer’s book can deliver the same sales is not clear. He writes mainly in the voice of a neutral journalist and meticulously documents his sources, including tax records and government documents, while leaving little doubt about his view of the Clintons.

His reporting largely focuses on payments made to Mr. Clinton for speeches, which increased while his wife served as secretary of state, writing that “of the 13 Clinton speeches that fetched $500,000 or more, only two occurred during the years his wife was not secretary of state.”

In 2011, Mr. Clinton made $13.3 million in speaking fees for 54 speeches, the majority of which were made overseas, the author writes.

*** Now the questions that need to be asked include what policies did the State Department, the NSC and the White House take covertly with regard to diplomacy and those affects on strategies.

The Cyber-Threats to SCADA Increasing

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Dell has reached out to this site with updated/corrected links for the item below:

Please refer to https://www.quest.com and https://www.quest.com/solutions/network-security/

What is SCADA? A computerized system that controls all national infrastructure. This includes water, power grids, transportation and supply chains.

In 2012:

The last “INTERNET SECURITY THREAT REPORT” published by Symantec reports that in 2012, there were eighty-five public SCADA vulnerabilities, a massive decrease over the 129 vulnerabilities in 2011. Since the emergence of the Stuxnet worm in 2010, SCADA systems have attracted more attention from security researchers.

Today, 2015 there is a significantly more chilling condition.

 

A recent report published by Dell revealed a 100 percent increase in the number of attacks on industrial control (SCADA) systems.

The new Dell Annual Threat Report revealed that the number of attacks against supervisory control and data acquisition (SCADA) systems doubled in 2014 respect the previous year. Unfortunately, the majority of incidents occurred in SCADA systems is not reported. The experts confirmed that in the majority of cases the APT are politically motivated.

“Attacks against SCADA systems are on the rise, and tend to be political in nature as they target operational capabilities within power plants, factories, and refineries,” the researchers explained. “We saw worldwide SCADA attacks increase from 91,676 in January 2012 to 163,228 in January 2013, and 675,186 in January 2014.”

The countries with the greatest number of attacks are the Finland, the United Kingdom, and the United States, where online SCADA systems are widespread.

“In 2014, Dell saw 202,322 SCADA attacks in Finland, 69,656 in the UK, and 51,258 in the US” continues the report.

The experts noticed that buffer overflow is the vulnerability in SCADA system most exploited by hackers (25%), among other key attack methods there are the lack of input validation (9%) and Information Exposure (9%).

SCADA Attack methods Dell Report

 

Security experts speculate that the number of the attacks will continue to increase in the next years.

“This lack of information sharing combined with the vulnerability of industrial machinery due to its advanced age means that we can likely expect more SCADA attacks to occur in the coming months and years.” states the report.

 

The data published by Dell are aligned with the findings included in a report recently published by the ICS-CERT. The CERT responded to 245 incidents in Fiscal Year 2014, more than half of the incidents reported by asset owners and industry partners involved sophisticated APT.

Let’s closed with the suggestions provided by Dell experts to protect SCADA systems from attacks:

  • Make sure all software and systems are up to date. Too often with industrial companies, systems that are not used every day remain installed and untouched as long as they are not actively causing problems. However, should an employee one day connect that system to the Internet, it could become a threat vector for SCADA attacks.
  • Make sure your network only allows connections with approved IPs.
  • Follow operational best practices for limiting exposure, such as restricting USB ports if they aren’t necessary and ensuring Bluetooth is disabled.
  • In addition, reporting and sharing information about SCADA attacks can help ensure the industrial community as a whole is appropriately aware of emerging threats.

Cant Make More Land? China can…

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China has been aggressive in the region of the South China sea over island disputes and territory ownership. This was part in parcel the cause of the Obama administration Asia pivot. In recent years, China has become much more assertive in their military investments and power in that region. But building new islands is making the West very nervous as well as S. Korea, Vietnam, Philippines and Japan. No one is really speaking to this build-up.

Beijing Shocks US With Unbelievable Progress of Airstrip in South China Sea

New satellite imagery shows the extent of China’s construction of artificial islands in the South China Sea. Fiery Cross Reef could soon serve as a military-grade runway in the middle of the ocean. And despite its own military presence in the region, US officials are in panic.

Dredging sand from the seafloor, the Chinese government has been steadily building artificial landmasses atop sunken reefs in the Spratly Islands archipelago. In part, the islands will be used to bolster emergency response in the region. But Beijing also says the islands will be used as military defense posts, which worries officials in Washington, already concerned about a growing Chinese influence.

Images obtained by IHS Jane’s Defense Weekly from Airbus Defence and Space show just how rapid the island growth has been. With construction beginning only last year, Fiery Cross Reef is now home to China’s first airstrip in the South China Sea. With 503 metered already paved, the runway could be as long as 3,000 meters once completed. That’s long enough to support heavy military transport planes and fighter jets, according to Washington’s Center for Strategic and International Studies.

Progress of construction on Fiery Cross Reef
Progress of construction on Fiery Cross Reef

Existing People’s Liberation Army Air Force runways on the mainland range in length from 2,700 meters to 4,000 meters.

Satellite imagery also shows that a second 3,000 meter airstrip could be in the works on Subu Reef, another island being built in the archipelago.

Fiery Cross will also host a large seaport on the island’s southwest end. Imagery shows floating crane fortifying sea walls with concrete.

For US officials already concerned about the island construction, the existence of runways has reinvigorated those fears.

“The United States has a strong interest in preservation of peace and security in the South China Sea,” a spokesman for the US State Department said, according to Reuters. “We do not believe that large-scale land reclamation with the intent to militarize outposts on disputed land features is consistent with the region’s desire for peace and stability.”

A destroyer of the South China Sea Fleet of the Chinese Navy fires a missile during a training exercise.
Senate Demands Formal US Strategy to Stop China in South China Sea

But despite this supposed interested in “peace,” the US military has steadily increased its own presence in the region. In February, the US Navy admitted that it was flying its most advanced spy plane – the P-8A Poseidon – out of the Philippines to monitor the region.

Washington has also organized a series of war exercises with allied nations in the South China Sea. Earlier this month, the US and Indonesia participated in joint military exercises, in a move which was seen by some as a warning against Chinese expansion. Another series of war games conducted between the US and the Philippines will begin next week. Known as the Balikatan, the drills are “designed to increase our capability to defend our country from external aggression,” military spokesman Lieutenant-Colonel Harold Cabunoc told Reuters.

While publicly decrying China’s island construction as “aggressive,” US Senator John McCain, chairman of the Senate Armed Services Committee, has called on the Obama administration to move more military resources into the Pacific.

Nearly 12,000 soldiers will take part in this year’s Balikatan military exercises.
Hint to Beijing? US Organizes Massive War Games With Philippines in South China Sea

Speaking before a seminar in Washington on Thursday, Cui Tiankai, China’s ambassador to the United States, defended Beijing’s right to install military defenses in its own territory. He said there “should be no illusion that anyone could impose on China unilateral status quo” or “repeatedly violate China’s sovereignty without consequences.”

He also noted that the UN’s Convention on Law of the Sea forbids the United States from conducting “intensive and close-range reconnaissance in other countries’ exclusive economic zone.”

The South China Sea is a hotly debated stretch of water through which nearly $5 trillion in trade passes each year. While China argues that most of the area is its own territory, the Philippines, Malaysia, Vietnam, Taiwan, and Brunei also make overlapping claims.

 

Did you get Fired and Replaced by a Foreigner?

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H1B Visa Cap is Suitable For:

Foreign students on F-1 OPT, F-1 CPT or STEM extension

Foreign professionals in specialty occupations, such as programmer analysts, physical therapists, accountants, database administrators, market research analysts, engineers, management analysts, graphic designers, pharmacists, financial analysts, and others with Bachelor’s or equivalent degree

Foreign nationals who have spent at least one year outside United States after reaching the 6-years limit on H1B, to come back and work in a specialty occupation

U.S. companies to employ qualified foreign nationals in jobs that require a bachelor’s degree and specialized skills

So this begs the question, just how deep is the collusion and are there recourses for people that were fired as you read on….

Senators seek probe of claims US workers fired, forced to train foreign replacement

A popular visa program allegedly is being misused by U.S. companies to lay off thousands of American workers and replace them with foreign labor.

And, adding insult to injury, many of the laid-off workers allegedly have been forced to train their replacements, in what one anonymous whistleblower called a “humiliating” experience.

The allegations have caught the attention of a bipartisan group of senators — including immigration hawk Sen. Jeff Sessions, R-Ala., and the No. 2 Senate Democrat, Illinois’ Dick Durbin — who are calling for a federal probe. A letter sent by 10 senators urging an investigation specifically cited reports of the firing and hiring practices at Southern California Edison, California’s second-largest utility. The incidents are concentrated in the IT field, and involve American workers being replaced by H-1B visa holders.

“A number of U.S. employers, including some large, well-known, publicly-traded corporations, have reportedly laid off thousands of American workers and replaced them with H-1B visa holders,” the senators wrote.

In the letter to Attorney General Eric Holder, Homeland Security Secretary Jeh Johnson, and Labor Secretary Thomas Perez, the senators urged the departments to “investigate the unacceptable replacement of American workers” to see whether laws were broken.

The H-1B program is supposed to be used to bring in, on a temporary basis, skilled workers with highly specialized skills not readily available in the U.S. They are often used in the technology sector to bring in engineers and computer programmers.

Further, U.S. employers can hire foreign workers for up to six years and must pay them the same rate they would pay other workers with similar qualifications, or the prevailing wage for that job and location, whichever is higher. This is done to prevent foreign workers from depressing U.S. wages and from being exploited.

But reports have surfaced that the replacements are happening at an alarming rate. And former Southern California Edison workers have complained to lawmakers that they were replaced by less-skilled workers at lower costs.

Anonymous workers who were displaced by the visa holders also submitted written testimonials to lawmakers detailing their firings. Several claimed they were forced to train their replacements, and threatened with losing their severance if they did not.

“We had no choice in this,” one anonymous worker who claimed to have been one of those let go from Southern California Edison, said in a letter. The worker described how when the two vendors were picked – Infosys and TCS, both major Indian companies – SCE employees were told to “sit with, video chat or do whatever was needed to teach them our systems.”

If they did not cooperate, according to the testimonial, “we would be fired and not receive a severance package.”

Another worker described this process as “humiliating.”

In a statement, Southern California Edison said it abides by the law and will cooperate with any investigation that concerns the issues mentioned in the senators’ letter.

The company explained that it’s reducing its information technology department from 1,400 to 860. Of those left, 97 percent are permanent California residents and 3 percent are on H-1B visas.

Southern California Edison said it’s contracting with IT vendors to fulfill certain contracts and that most of those workers are permanent U.S. residents and aren’t working under H-1B visas.

“By transitioning some IT operations to external vendors, along with SCE eliminating some customized functions it will no longer provide, the company will focus on making significant, strategic changes that can benefit our customers,” Southern California Edison’s emailed statement read.

But the senators, in their letter, raised several questions about how the replacements were being done. They said it appears the workers are often not employees of the U.S. company laying off workers – but are contractors working for foreign-owned IT consultants.

The H-1B program stipulates that applicants must have a valid “employer-employee relationship” – and the senators questioned whether that was the case here.

They also asked whether the companies “engaged in prohibited citizenship status discrimination” (against American citizens); and whether the visa petitions showed “any evidence of misrepresentation or fraud.”

Sessions said in a statement that the SCE allegations “ought to be the tipping point that finally compels Washington to take needed actions to protect American workers.”

The letter from senators follows a hearing last month by the Senate Judiciary Committee, which invited Southern California Edison to testify, though the company declined.

Ronil Hira, a professor at Howard University, said at the hearing that the utility outsourced work to two companies, and those companies employed H-1B staffers who were then trained by the employees they were replacing. “There could not be a clearer case of the H-1B program being used to harm American workers’ wages and working conditions,” Hira said.

Republican senators seeking the investigation are Sessions, Charles Grassley of Iowa, James Inhofe of Oklahoma, and Bill Cassidy and David Vitter of Louisiana.

Democratic senators seeking the investigation are Durbin, Richard Blumenthal of Connecticut, Sherrod Brown of Ohio and Claire McCaskill of Missouri.

Sen. Bernie Sanders, an independent from Vermont, also signed the letter.