Category Archives: China

Does China have a Covert System to Kill Americans with 4-FIBF?

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In 1893, Methamphetamine or crystal meth was first developed from ephedrine. A chemist by the name of Nagayoshi Nagai was responsible for this creation. It wasn’t until 1919, that methamphetamine was turned into its crystallized form by Akira Ogata. Ogata was able to do this by reduction of ephedrine using iodine and red phosphorous. Amphetamine, which is a related drug, first came into existence in 1887 by a Lazar Edeleanu in Germany. Methamphetamine manufacturing initially began in the United States in Hawaii in the 1960s.

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Adolf Hitler used cocaine and creative concoctions made by his personal doctor. He also relied on a stunning array of drugs while ruling Nazi Germany, including one made popular by the show Breaking Bad: crystal meth.

According to a 47-page U.S. military dossier, a physician filled the Fuhrer with barbiturate tranquilizers, morphine, bulls’ semen, a pill that contained crystal meth, and other drugs, depending on Hitler’s momentary needs, the Daily Mail reports. By this account, Hitler downed crystal meth before a 1943 meeting with Mussolini in which the Fuhrer ranted for two hours, and took nine shots of methamphetamine while living out his last days in his bunker.

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The next drug of choice used by militants is Captagon which is manufactured and trafficked from Lebanon. Captagon, a meth-like variant of the banned pharmaceutical Fenethylline, and is manufactured in large quantities primarily in Lebanon and neighboring Syria, where it is sold to ISIS via middle men.

Cali Estes, founder of The Addictions Coach, said the drug is referred to as the “Super Soldier Pill”because it can last up to 48 hours and causes users to be full of energy, impervious to pain, and “in a sense removes any barriers they would have to fighting and getting killed.”

Most of the blame for war in Iraq, Syria, Yemen can be blamed on Iran. The proxy terror group Hezbollah operated worldwide and is funded by outright selling Captagon.

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Image result for fluoro iso butyrfentanyl

The newest deadly narcotic on the market is being studied by the DEA and it is an epidemic, the basis of which appears to be China.

***  DailyHerald

WASHINGTON (AP) — No one knew what was in the baggie. It was just a few tablespoons of crystalline powder seized back in April, clumped like snow that had partially melted and frozen again.

Emily Dye, a 27-year-old forensic chemist at the Drug Enforcement Administration’s Special Testing and Research Laboratory, did not know if anyone had died from taking this powder, or how much it would take to kill you.

What she did know was this: New drugs were appearing in the lab every other week, things never before seen in this unmarked gray building in Sterling, Virginia. Increasingly, these new compounds were synthetic opioids designed to mimic fentanyl, a prescription painkiller up to 50 times stronger than heroin.

This, Dye realized, could be one of them.

The proliferation of rapidly evolving synthetic opioids has become so fierce that the DEA says they now constitute an entire new class of drugs, which are fueling the deadliest addiction crisis the United States has ever seen.

The fentanyl-like drugs are pouring in primarily from China, U.S. officials say — an assertion Beijing maintains has not been substantiated. Laws cannot keep pace with the speed of scientific innovation. As soon as one substance is banned, chemists synthesize slightly different, and technically legal, molecules and sell that substance online, delivery to U.S. doorsteps guaranteed.

More Americans now die of drug overdoses than in car crashes. Almost two-thirds of them, more than 33,000 in 2015 alone, took some form of opioid — either heroin, prescription painkillers or, increasingly, synthetic compounds like U-47700 and furanyl fentanyl, manufactured by nimble chemists to stay one step ahead of the law.

It is now forensic chemists like Dye who are on the front line of the nation’s war on drugs, teasing out molecular structures of mystery drugs so they can be named, tracked and regulated.

Dye held the baggie of powder in her gloved hand.

“Man,” she said. “I’ve got to figure out what this is.”

___

A NEW CLASS OF DEADLY DRUGS

Dye had an idea where to start. The sample came in tagged as suspected fentanyl. Dye picked up a vial with 2 milligrams of fentanyl from her long, clean lab bench. The container looked empty. Up close, squinting, she could see a spray of white dust clinging to its sides. The contents of that vial will kill 99 percent of the people who take it.

Dye first handled fentanyl three years ago. If she breathed it or touched it, she could die. It was nerve-wracking then — and still is.

The vial was made of glass. Dye had drop-tested it and knew that if it rolled off and hit the hard floor, it would not shatter. She rapped the vial against the benchtop, trying to make the powder inside more visible. Bang, bang, bang. It was still invisible.

“There’s nothing more terrifying than dealing with a lethal dose of material,” she said. Her hands were steady. Dye won modeling competitions for poise while she was at Graham High School in Bluefield, Virginia, a town of some 5,000 people on the eastern edge of Appalachian coal country.

Dye’s mother is a nurse who also deals with hazardous material. Mother and daughter both know that risk is not something to worry about, it’s something to manage. Dye has recommitted to every safety protocol she was ever taught. One, safety glasses. Two, lab coat, buttoned. Three, powder-free disposable nitrile gloves. Four, face mask. She placed an emergency naloxone injection kit — an antidote for opioid overdose — near her workspace. Just in case. And, on samples like this, she never works alone.

The Special Testing Laboratory is one of eight forensic chemistry labs the DEA runs. Focused on research, it has a worn functionality that gives it an academic feel. Down echoing hallways are labs packed with fume hoods and high-tech machines sprouting tubes and wires. Beakers dry by the sinks. “Safety First” signs have been taped to the doors. Mostly, it is silent.

Forty chemists work here. Their job is to identify substances seized by law enforcement in the field before they kill or kill again. One of the compounds they identified is carfentanil, which is so potent it was used as a chemical weapon before it hit the North American drug supply over the summer.

“Right now we’re seeing the emergence of a new class — that’s fentanyl-type opioids,” Dye’s boss, Jill Head, explained. “Based on the structure, there can be many, many more substitutions on that molecule that we have not yet seen.”

Entrepreneurial chemists have been creating designer alternatives to cannabis, amphetamine, cocaine and Ecstasy for years. But this new class of synthetics is far more lethal.

Back in 2012 and 2013, when reports of fentanyl derivatives started coming in to the U.N. Office on Drugs and Crime in Vienna, chemists chucked them in the “other” category. Today those “other” substances are one of the fastest-growing groups of illicit chemicals tracked by the agency.

“New opioids keep emerging,” said Martin Raithelhuber, an expert in illicit synthetic drugs at the U.N. They deserve their own category, he added, but that will take time.

Once, forensic chemists like Dye confronted a familiar universe of methamphetamine, cocaine and heroin. Drug dealers, users and DEA agents generally knew what substance they were handling.

Today, things are different. This is a golden age of chemical discovery — and subterfuge. Dealers may not know that the high-purity heroin from Mexico they’re selling has been laced with fentanyl. Users may not realize the robin’s-egg-blue oxycodone tablets they’re taking are spiked with acetylfentanyl.

If field agents bust a clandestine drug lab and see a cloud of white powder in the air, they no longer assume it’s cocaine. They run.

“Had I come on board at a time when everything was cocaine and heroin and meth and marijuana, it’s not an exciting day,” Dye said. “Now I come to work and see something that’s never been seen.”

“And it can kill somebody,” she added.

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SEEDS OF A NEW INDUSTRY

The sprint to market unregulated chemicals is driven by demand in the U.S., where users gobble up 80 percent of the world’s opioids, according to the DEA.

Dye was just 6 years old when Purdue unveiled OxyContin as a breakthrough drug, a powerful yet supposedly nonaddictive opioid that would revolutionize pain management.

Instead, aggressive marketing and unscrupulous doctors helped push a generation of people into addiction.

Dye saw them all around her in Bluefield. Her dad’s pharmacy was her window on the crisis.

“People used to break into his store and steal Oxys,” Dye said. “He became friends with a lot of cops.” She did, too.

In high school, Dye fell in love with chemistry. Drawn to linearity and logic, she found beauty in the way equations yielded answers.

The year Dye graduated, 2007, Purdue Pharma and its executives paid more than $630 million in legal penalties for willfully misrepresenting the drug’s addiction risks.

By then it was too late.

The seeds of a new industry had already taken root. Today, it is almost as easy to order synthetic opioids on the open internet as it is to buy a pair of shoes, The Associated Press found in an investigation published in October . Payments can be made by Western Union, MoneyGram or Bitcoin, and products are shipped by DHL, UPS or EMS — the express mail service of China’s state-run postal service. As the lines between licit and illicit commerce blurred, it became possible for just about anyone with internet access to score an ever-changing array of lethal chemicals.

By the time Dye was in college studying forensic chemistry, U.S. regulators were cracking down on prescription drug abuse. Users turned from pills to heroin, which was cheap and relatively easy to get. Between 2010 and 2014 heroin overdoses in the U.S. tripled, according to the Centers for Disease Control and Prevention. Three-quarters of today’s heroin users first used prescription opioids, a JAMA Psychiatry study showed.

Drug dealers soon learned that if they cut potent synthetic opioids, like fentanyls, into drugs like heroin, they could make vastly more money. Overdose deaths from synthetic opioids — a category dominated by illicit fentanyl — more than tripled from 2013 to 2015, hitting 9,580 last year, CDC data show.

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A DISCOVERY

On June 28, two months after the singer Prince died of a fentanyl overdose, Dye walked down a long, white hallway, past a heavy metal grate and into a dim room known as “the vault.” She was surrounded by packages of evidence, seized from the field and waiting for analysis. She checked out an envelope wrapped in plastic wrap and yellow tape that had come in on April 13, and placed it in a steel lockbox with her name on it.

Back in the lab, Dye unwrapped the package and found a silver pouch the size of a small handbag. Inside that was a palm-size baggie.

She scooped up a dot of powder from the baggie with a thin metal spatula and gingerly placed it in a small glass crimp vial. As she worked, she treated the material as if it were radioactive, twisting the spatula around with her fingers to avoid contamination. Using a glass pipette, she transferred a few drops of methanol into the vial and clamped it shut.

Dye dropped the sample into a mass spectrometer. The machine sucked the evidence through a copper-colored wire and bombarded it with electrons. That broke it up into many different small pieces. “Kind of like when you drop a puzzle,” she said.

The resulting pattern of peaks is akin to a chemical fingerprint. Dye compared the result with the lab’s library of approximately 1,500 known drugs.

None matched. This was new.

Dye had made a discovery.

China has banned many synthetic drugs, but new chemicals continue to sprout like weeds. In October and November, the AP identified 12 Chinese vendors hawking furanyl fentanyl and U-47700 — drugs that are not banned in China — as substitutes for blacklisted drugs. All offered their products via the Korean business-to-business platform EC21.com.

“Most customers choose the U-47700 now,” a man from XiWang Chemical Co. who called himself Adam Schexnayder emailed. “Although U-47700 is weaker than fentanyl. But it is a good opioid product. You can try it. How about it?”

Contacted by the AP, Schexnayder responded with a graphic Chinese obscenity, but said nothing more. The site has since vanished.

EC21 blocked searches for furanyl fentanyl and U-47700 after the AP called to ask about the chemicals, though “heroinn” still yielded results on Wednesday. The site has banned more than 768 search terms and is working with a developer to block changing patterns of forbidden terms more effectively, said Kim Min-Jeong, a service team manager. “We spend a significant amount of operating costs and labor on auditing.”

___

‘ASK TO DIE’

The closest match to Dye’s evidence in the lab’s database was a compound called butyryl fentanyl. But it wasn’t the same. In her sample, distinctive small peaks kept popping up after taller ones.

She and her colleagues ran the evidence through a nuclear magnetic resonance spectrometer, which pulses samples with a magnetic field to help map the position of different atoms. Then they guessed. They bought a sample of the compound they thought they had from a legitimate research chemical company and used it to test their theory.

On July 26, Dye ran the reference standard they’d purchased through the mass spectrometer. The result matched their evidence exactly. Now they knew what they had on their hands.

“It’s 4-fluoroisobutyrylfentanyl,” Dye said.

Case closed.

What had Dye discovered?

4-fluoroisobutyrylfentanyl — 4-FIBF for short —has exactly the same weight and chemical composition as one of the compounds China banned in October 2015. The only difference is the arrangement of three carbon atoms.

Long before Dye made her discovery, Chinese vendors were offering 4-FIBF for sale.

Shanghai Xianchong Chemical Co., a trading company that operates from a small, spare office on a leafy street in central Shanghai, was one of them. Shanghai Xianchong started fielding requests for 4-FIBF around April, according to the manager, a clean-cut man in a white polo shirt named Jammi Gao.

Gao said in an email that he could sell 4-FIBF for $6,000 a kilogram, though he later denied ever brokering a deal.

He refused to ship opioids, like the ultrapotent carfentanil, that are banned from general use in the U.S. But 4-FIBF is so new to the street it is not a controlled substance in either the U.S. or China.

Drug users yearn for better chemistry, for highs with incredible analgesic power that go on and on. 4-FIBF showed promise. It was strong and cheap and though it produced little euphoria, it lasted a long time, users reported in online forums. Several said it could be used like methadone, to control opioid withdrawal symptoms. One user-turned-dealer called 4-FIBF “a miracle molecule.”

But 4-FIBF was so strong that getting the dose right was a problem. “Eyeball this, ask to die. ’nuff said,” one user noted in March.

None of the users replied to AP’s requests for comment.

Back in the lab, Dye peeled off her gloves and tossed them into a hazardous waste container. She didn’t know users were already warning each other not to go overboard chasing a heroin high that never kicked in with 4-FIBF. She didn’t know about the rough dosing schedules addicts had worked out. And she didn’t know that 4-FIBF gave some people satisfying, sleep-through-the-night results when they stuck it up their rectum.

Dye would go home, safe, to her dog. Maybe tomorrow she would find the next new thing in an evidence bag on her bench. User forums were already buzzing with talk of things like cyclopentyl fentanyl and acryl fentanyl.

But elsewhere, all across America, people would not make it through the night. By the time Dye finished work the next day, another 90 Americans would be dead of opioid overdoses.

Denying Russian Encroachment is Dereliction of Security

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Hillary Clinton is no novice to security measures when it comes to global adversarial incursions. Her team of political operatives are not neophytes either.

By virtue of Hillary’s emails, inspector general’s reports and non-approved (unknown servers) and violations of data protection, Hillary’s team are guilty of malfeasance of duty and management. For proof, read the FBI search warrant of the Abedin/Weiner computers and hard-drive.

FBI Search warrant Huma

Have you considered why certain buildings in government have harden structures including sound proof windows, SCIFs, entry and exit procedures, security clearances and action protocol when transmitting information in hardcopy and electronically? This is due to thousands of foreign tasking of espionage of history that include Russia, China and North Korea to mention a few. Not all hacking is equal, there are viruses, malware, electronic theft and propaganda.

Schiller

A distinction should also be made between hacking and SIGINT, signals intelligence. SIGINT is the interception of data used by foreign powers which can and does include scooping and snooping. There are electronic signals, radars and weapons systems that are all part of the target base applied by foreign adversaries and allies. No part of the United States government or civilian enterprise is exempt or omitted by outside powers including outright spying and theft of industrial espionage, patent information and intelligence.

Beyond this, there is the whole model of propaganda, real and fake news. Under Barack Obama, the United States has been in a reactionary mode rather than installing and actively pursuing defensive and countermeasures when it comes to biased, misleading, filtered or altered influence causing ill legitimate attitudes, movements, synthesis and policy decisions. The master of this game is Russia.

The U.S. government spent more than a decade preparing responses to malicious hacking by a foreign power but had no clear strategy when Russia launched a disinformation campaign over the internet during the U.S. election campaign, current and former White House cyber security advisers said.

Far more effort has gone into plotting offensive hacking and preparing defenses against the less probable but more dramatic damage from electronic assaults on the power grid, financial system or direct manipulation of voting machines.

Over the last several years, U.S. intelligence agencies tracked Russia’s use of coordinated hacking and disinformation in Ukraine and elsewhere, the advisers and intelligence experts said, but there was little sustained, high-level government conversation about the risk of the propaganda coming to the United States.

A former White House official cautioned that any U.S. government attempt to counter the flow of foreign state-backed disinformation through deterrence would face major political, legal and moral obstacles.  

“You would have to have massive surveillance and curtailed freedom and that is a cost we have not been willing to accept,” said the former official, who spoke on condition of anonymity. “They (Russia) can control distribution of information in ways we don’t.”

Clinton Watts, a security consultant, former FBI agent and a fellow at the nonprofit Foreign Policy Research Institute, said the U.S. government no longer has an organization, such as the U.S. Information Agency, that provided counter-narratives during the Cold War.

He said that most major Russian disinformation campaigns in the United States and Europe have started at Russian-government funded media outlets, such as RT television or Sputnik News, before being amplified on Twitter by others.

A defense spending pill passed this month calls for the State Department to establish a “Global Engagement Center” to take on some of that work, but similar efforts to counter less sophisticated Islamic State narratives have fallen short.

The U.S. government formally accused Russia of a campaign of cyber attacks against U.S. political organizations in October, a month before the Nov. 8 election.

U.S. ‘STUCK’

James Lewis, a cyber security expert at the Center for Strategic & International Studies who has worked for the departments of State and Commerce and the U.S. military, said Washington needed to move beyond antiquated notions of projecting influence if it hoped to catch up with Russia.

“They have RT and all we know how to do is send a carrier battle group,” Lewis said. “We’re going to be stuck until we find a way deal with that.” More here including Alex Jones from Reuters.

Then there is Iran who has and continues to use propaganda to build internal reputation and power, the same as Putin of Russia himself.

When Iran detained our Navy personnel, consider the traction that was gained both positive and negative.

NR: The sight of members of the American military, disarmed and under Iranian control, is of enormous propaganda value in Iran’s ongoing war against the United States. To its allies in the Middle East, the photo demonstrates Iran’s strength – how many jihadist countries have had this many American servicemembers under their power? – and it demonstrates American weakness. Then there’s this: “This time, the Americans were cooperative in proving their innocence, and they quickly accepted their faults without resistance,” the analyst, Hamidreza Taraghi, said in a phone interview. “The Marines apologized for having strayed into Iranian waters.” Never fear, John Kerry made friends with the Iranians, and that made all the difference: Also playing a role was the strong relationship that has developed between Mr. Kerry and the Iranian foreign minister, Mohammad Javad Zarif, during negotiations on the nuclear deal, Mr. Taraghi said. “John Kerry and Zarif were on the phone during the past hours, and this helped the problem to be resolved quickly due to their direct contact,” he said. Nations that take illegal propaganda photos, crow about their seizure of American boats, confiscate part of their equipment, and then point to our allegedly admitted faults aren’t “easing tensions,” they’re flexing their muscles. I’m glad our sailors and boats are back in American hands — minus, apparently, their GPS equipment — but once again Iran has thumbed its nose at the U.S., demonstrating that it does what it wants — whether it’s testing missiles, launching rockets near U.S. warships, or taking, questioning, and photographing American sailors who (allegedly) stray into Iranian waters.

Not only does government need to harden security, but civilians must as well. That includes people, information, news, systems, software and brick and mortar structures. Separating fact from fiction, providing exact and true definitions and not conflating conditions is the charter and mission in the future.

 

Law Firm, Bob Dole Behind the Taiwan Phone Call to Trump

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There is always more to the story right? Yes….and this phone call that set the White House and State Department on their heads when Trump received a phone call from the President of Taiwan, President Tsai Ing-wen. What has not been answered is did anyone in the Trump operation have advanced knowledge of the call or did they understand the policy ramifications for the long term when it comes to conditions in the region?

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Alston & Bird Central to Trump’s Taiwanese Phone Call

TAL: Former senator and Alston & Bird special counsel Bob Dole told The Wall Street Journal Monday that he and his firm helped arrange the president-elect’s taboo-breaking Friday telephone call with Taiwanese President Tsai Ing-wen. “It’s fair to say that we may have had some influence,” Dole told the paper.

Dole and Ted Schroeder, a former Senate Democratic aide who joined Alston & Bird in January as counsel in its Legislative and Public Policy Group, are on a $20,000-a-month retainer to the Taipei Economic and Cultural Representative Office, according to a lobbyist filing dated April 30. The office is Taiwan’s alternative to an embassy or consulate, handling foreign affairs and services for the Republic of China, commonly known as Taiwan.

In the lobbyist filing, Alston & Bird reported making routine diplomatic contacts on behalf of Taiwan’s U.S. representative. Awkwardly, the firm opened a three-lawyer Beijing office in January, specializing in IP, trade, tort and cyber disputes for Chinese clients in American forums.  Alston & Bird did not respond to a request for comment. Daniel Huang, a spokesman for the Taipei Economic and Cultural Representative Office, said the office had no comment.

Breaking a diplomatic taboo that dates to 1979, the U.S. call with Taiwan’s head of state roiled the chattering classes in both nations, perhaps because China has more than 1,600 ballistic and cruise missiles facing the Taiwan Strait, and dozens aimed at the U.S. A far more measured but nontrivial way for China to retaliate would be for it to return once again to cyberespionage, whose decline was an unsung Obama success. Nick Rossmann of FireEye iSIGHT Intelligence says that while he detects no new change in hacking patterns, “an economic downturn in China coupled with a deterioration in the U.S.-Chinese bilateral relationship would be key factors in a shift to ramp up operations to steal IP.”

The Taiwan call made a parlor game of guessing Trump’s motives for lightly playing with the world’s highest concentration of missiles, and tweaking a rising superpower that fights to keep its own military’s jingoists in check.

“Defensiveness, ignorance, impulsivity, considered aggressive behavior, on-going real estate negotiations?” muses Josh Marshall of Talking Points Memo. “Not having a clear idea about which of these factors is driving decisions is and will be one of the joys of the Trump years.”

Initial speculation centered on ignorance or impulsivity. “This has all the earmarks of randomness on the U.S. side,” a senior Bush diplomat told Politico. Others noted a Taiwanese newspaper report, denied by the Trump Organization, that Trump was considering a luxury development near Taipei’s airport. The New York Times reported that a sales manager overseeing Asia for Trump Hotels had visited Taiwan in October, a trip that she recorded on her Facebook page.

As the consensus shifted toward “considered aggressive behavior” (or at least considered by Trump’s aides), the first reports pointed the finger at former Dick Cheney aide and Heritage Foundation scholar Stephen Yates. But Yates denied the reports, while voicing warm support for the reckless break in protocol.

Thanks to Dole’s candor, we now know who really deserves blame for Trump’s first foreign policy blunder. And to ignorance, impulsivity, aggression and conflicts, we must add another animating factor. Even in the drained swamp of Trump’s Washington, don’t discount the power of lobbying.

Russian State, Non-State Cyber Intrusions Sway Voting/Political Decisions

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In October, before the U.S. presidential election, a Russian man suspected of carrying out cyberattacks against U.S. targets was arrested in Prague and was also wanted by Interpol. What information could have been gained in this case that has provided additional evidence to government officials for further investigations? Anyone remember in 2012 when the Russian hacked LinkedIn?

Everyone appears to be in denial about the ability and reasons that Russia and or their non-state actors swayed the U.S. campaign and voting process. No one official has ever claimed actual votes were altered, but rather the argument is actual affectation of information, attitudes and decisions by candidates and voters. There is a distinct difference and words matter.

Russia is artful when it comes to practicing hybrid warfare, cyber is but one tactic, the other successful tactic is propaganda. It works.

APT 28, Russia (Advanced Persistent Threat) has been seen to have moved on from the United States political season and turned towards Germany’s political season in recent days. This is not likely to affect vote tally results but rather polling attitudes going into consideration of votes for candidates.

This site has been writing about hacking and cyber intrusions for more than two years. While government agency officials have pointed with evidence that Russia played a significant role, it is also important to remember there are thousands of outside government cyber experts that are hired by government to protect against cyber intrusions and to investigate and report that of which is otherwise unknown by government due to being in the private sector. These are generally known as ‘White Hats’. White Hats in their forensic work look for types of penetration, commonality in code or language, trace IP addresses, concepts, malware, login files, brute force, where stolen data later appeared, partitions and code based platforms.

Let’s examine some facts and history.

It was also proven last year that as part of the Russian aggression with the Ukraine, that power grid was hacked by Russian operations. Due to major sanctions applied to Russia for at least the annexation of Crimea and the invasion of Ukraine and the continued threat to East Europe and NATO, the Russian Defense Ministry launched a more aggressive cyber command. Beyond hacking the non-classified but still a protected system at the White House in 2015, there are others of note.

In the past year, researchers have also linked Russian hackers believed to be working for the government to other spying campaigns, including against NATO, the Ukrainian government, energy companies in Poland, and an academic at an American university who was targeted because he studies Ukraine.

On Tuesday, CNN reported that according to U.S. officials, Russian hackers had penetrated portions of the White House computer network by gaining access from another “perch,” at the State Department, where intruders had gotten inside the unclassified email system.

The intrusion reported by CNN is not “a new incident,” a spokesman for the National Security Council said. Rather, it was acknowledged by the White House last year after intruders accessed an unclassified network used by the Executive Office of the President. More here.

From 2014, long before the presidential election cycle was set into motion:

As reported by Heritage, according to FBI Director James Comey, “There are two kinds of big companies in the United States. There are those who’ve been hacked…and those who don’t know they’ve been hacked.”[1]

A recent survey by the Ponemon Institute showed the average cost of cyber crime for U.S. retail stores more than doubled from 2013 to an annual average of $8.6 million per company in 2014.[2] The annual average cost per company of successful cyber attacks increased to $20.8 million in financial services, $14.5 million in the technology sector, and $12.7 million in communications industries.

This paper lists known cyber attacks on private U.S. companies since the beginning of 2014. (A companion paper discussed cyber breaches in the federal government.)[3] By its very nature, a list of this sort is incomplete. The scope of many attacks is not fully known. For example, in July, the U.S. Computer Emergency Readiness Team issued an advisory that more than 1,000 U.S. businesses have been affected by the Backoff malware, which targets point-of-sale (POS) systems used by most retail industries.[4] These attacks targeted administrative and customer data and, in some cases, financial data.

This list includes only cyber attacks that have been made known to the public. Most companies encounter multiple cyber attacks every day, many unknown to the public and many unknown to the companies themselves.

The data breaches below are listed chronologically by month of public notice.

January

  • Target (retail). In January, Target announced an additional 70 million individuals’ contact information was taken during the December 2013 breach, in which 40 million customer’s credit and debit card information was stolen.[5]
  • Neiman Marcus (retail). Between July and October 2013, the credit card information of 350,000 individuals was stolen, and more than 9,000 of the credit cards have been used fraudulently since the attack.[6] Sophisticated code written by the hackers allowed them to move through company computers, undetected by company employees for months.
  • Michaels (retail). Between May 2013 and January 2014, the payment cards of 2.6 million Michaels customers were affected.[7] Attackers targeted the Michaels POS system to gain access to their systems.
  • Yahoo! Mail (communications). The e-mail service for 273 million users was reportedly hacked in January, although the specific number of accounts affected was not released.[8]

April

  • Aaron Brothers (retail). The credit and debit card information for roughly 400,000 customers of Aaron Brothers, a subsidiary of Michaels, was compromised by the same POS system malware.[9]
  • AT&T (communications). For two weeks AT&T was hacked from the inside by personnel who accessed user information, including social security information.[10]

May

  • eBay (retail). Cyber attacks in late February and early March led to the compromise of eBay employee log-ins, allowing access to the contact and log-in information for 233 million eBay customers.[11] eBay issued a statement asking all users to change their passwords.
  • Five Chinese hackers indicted. Five Chinese nationals were indicted for computer hacking and economic espionage of U.S. companies between 2006 and 2014. The targeted companies included Westinghouse Electric (energy and utilities), U.S. subsidiaries of SolarWorld AG (industrial), United States Steel (industrial), Allegheny Technologies (technology), United Steel Workers Union (services), and Alcoa (industrial).[12]
  • Unnamed public works (energy and utilities). According to the Department of Homeland Security, an unnamed public utility’s control systems were accessed by hackers through a brute-force attack[13] on employee’s log-in passwords.[14]

June

  • Feedly (communications). Feedly’s 15 million users were temporarily affected by three distributed denial-of-service attacks.[15]
  • Evernote (technology). In the same week as the Feedly cyber attack, Evernote and its 100 million users faced a similar denial-of-service attack.[16]
  • P.F. Chang’s China Bistro (restaurant). Between September 2013 and June 2014, credit and debit card information from 33 P.F. Chang’s restaurants was compromised and reportedly sold online.[17]

August

  • U.S. Investigations Services (services). U.S. Investigations Services, a subcontractor for federal employee background checks, suffered a data breach in August, which led to the theft of employee personnel information.[18] Although no specific origin of attack was reported, the company believes the attack was state-sponsored.
  • Community Health Services (health care). At Community Health Service (CHS), the personal data for 4.5 million patients were compromised between April and June.[19] CHS warns that any patient who visited any of its 206 hospital locations over the past five years may have had his or her data compromised. The sophisticated malware used in the attack reportedly originated in China. The FBI warns that other health care firms may also have been attacked.
  • UPS (services). Between January and August, customer information from more than 60 UPS stores was compromised, including financial data,[20] reportedly as a result of the Backoff malware attacks.
  • Defense Industries (defense). Su Bin, a 49-year-old Chinese national, was indicted for hacking defense companies such as Boeing.[21] Between 2009 and 2013, Bin reportedly worked with two other hackers in an attempt to steal manufacturing plans for defense programs, such as the F-35 and F-22 fighter jets.

September

  • Home Depot (retail). Cyber criminals reportedly used malware to compromise the credit card information for roughly 56 million shoppers in Home Depot’s 2,000 U.S. and Canadian outlets.[22]
  • Google (communications). Reportedly, 5 million Gmail usernames and passwords were compromised.[23] About 100,000 were released on a Russian forum site.
  • Apple iCloud (technology). Hackers reportedly used passwords hacked with brute-force tactics and third-party applications to access Apple user’s online data storage, leading to the subsequent posting of celebrities’ private photos online.[24] It is uncertain whether users or Apple were at fault for the attack.
  • Goodwill Industries International (retail). Between February 2013 and August 2014, information for roughly 868,000 credit and debit cards was reportedly stolen from 330 Goodwill stores.[25] Malware infected the chain store through infected third-party vendors.
  • SuperValu (retail). SuperValu was attacked between June and July, and suffered another malware attack between late August and September.[26] The first theft included customer and payment card information from some of its Cub Foods, Farm Fresh, Shop ‘n Save, and Shoppers stores. The second attack reportedly involved only payment card data.
  • Bartell Hotels (hotel). The information for up to 55,000 customers was reportedly stolen between February and May.[27]
  • U.S. Transportation Command contractors (transportation). A Senate report revealed that networks of the U.S. Transportation Command’s contractors were successfully breached 50 times between June 2012 and May 2013.[28] At least 20 of the breaches were attributed to attacks originating from China.

October

  • J.P. Morgan Chase (financial). An attack in June was not noticed until August.[29] The contact information for 76 million households and 7 million small businesses was compromised. The hackers may have originated in Russia and may have ties to the Russian government.
  • Dairy Queen International (restaurant). Credit and debit card information from 395 Dairy Queen and Orange Julius stores was compromised by the Backoff malware.[30]
  • Snapsave (communications). Reportedly, the photos of 200,000 users were hacked from Snapsave, a third-party app for saving photos from Snapchat, an instant photo-sharing app.[31]

Securing Information

As cyber attacks on retail, technology, and industrial companies increase so does the importance of cybersecurity. From brute-force attacks on networks to malware compromising credit card information to disgruntled employees sabotaging their companies’ networks from the inside, companies and their customers need to secure their data. To improve the private sector’s ability to defend itself, Congress should:

  • Create a safe legal environment for sharing information. As the leaders of technological growth, private companies are in most ways at the forefront of cyber security. Much like government agencies, companies must share information that concerns cyber threats and attack among themselves and with appropriate private-public organizations.[32] Congress needs to create a safe environment in which companies can voluntarily share information without fear of legal or regulatory backlash.
  • Work with international partners. As with the Backoff malware attacks, attacks can affect hundreds if not thousands of individual networks. These infected networks can then infect companies outside the U.S. and vice versa. U.S. and foreign companies and governments need to work together to increase overall cybersecurity and to enable action against individual cyber criminals and known state-sponsored cyber aggressors.[33]
  • Encourage cyber insurance. Successful cyber attacks are inevitable because no security is perfect. With the number of breaches growing daily, a cybersecurity insurance market is developing to mitigate the cost of breaches. Congress and the Administration should encourage the proper allocation of liability and the establishment of a cyber insurance system to mitigate faulty cyber practices and human error.[34]

***

Denial or refusing the argument and examination of evidence is malfeasance and exacerbating a cyber criminal act.

 

 

 

 

Trump Plans/Prepares for a 2 Ocean War

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Maybe new keels are soon to be laid and a draft could be in the future of the military.

As for the Army, the numbers are noted below but do not include the other branches of service.

ArmyTimes: Endstrength for March was 479,172 soldiers, which is 154 fewer troopers than were on active duty when the Army halted the post-Cold War drawdown in 1999 with 479,424 soldiers, the smallest force since 1940, when the active component numbered 269,023 soldiers.

Barring unexpected delays, the Army is well-positioned to achieve, or exceed, its budgeted end-strength of 475,000 soldiers by Sept. 30, the end of fiscal 2016.

Without congressional or Defense Department intervention, the drawdown will continue for two more years, with end strength hitting 460,000 soldiers in 2017, and 450,000 in 2018.

The United States Navy is a powerhouse. The fleet consists of roughly 430 ships in active service or reserve. The vessels run the gamut from the massive Nimitz-class aircraft carrier, which stretches more than 1,000 feet, to the Los Angeles-class submarine that slithers 900 feet below the ocean surface. The graphic below shows all the commissioned and noncommissioned ships of every size as of April 2015. The ships are organized by size, from the humongous aircraft carriers at the top to the smaller ships at the bottom.

2015-u-s-navy-fleet

 

Donald Trump wants to increase America’s military force in the Asia-Pacific

DONALD Trump’s administration has given its strongest indication yet that the United States will increase America’s military force against China.

Rudy Giuliani, the president-elect’s frontrunner for secretary of state, has revealed Mr Trump intends to prioritise building a “gigantic” military force to overthrow China’s ambitions in the Pacific.

Speaking to global business leaders in Washington yesterday, Mr Giuliani said the United States would raise its number of troops to 550,000, instead of shrinking it to 420,000.

He also said they intended to take their navy up to 350 ships, instead of going down to 247. It currently has around 280.

“At 350, China can’t match us in the Pacific. At 247 ships, we can’t fight a two-ocean war; we gave up the Pacific. If you face them with a military that is modern, gigantic, overwhelming and unbelievably good at conventional and asymmetric warfare, they may challenge it, but I doubt it.”

He said the expansion would allow the US to fight a “two-ocean war”.

This presents a more assertive foreign policy than the world ever heard from Mr Trump in the lead-up to election with regards to China.

While the South China Sea remains one of the world’s most tense geopolitical regions, the celebrity billionaire was careful to keep his remarks on it to a minimum in the lead-up to the US election.

Experts have told news.com.au Mr Trump has always been set on building the US’s military presence.

“It’s likely that America will have a lot more military muscle under his presidency,” said Macquarie University Security Studies analyst Adam Lockyer. “While we can’t get ahead of ourselves, much of that will likely go into the Asia-Pacific region, because China’s a major challenger.

“On one hand they’re paying less diplomatic and critical attention to the region, but on the other they’re building more military presence in the region.”

That said, Mr Giuliani’s remarks suggest Mr Trump’s administration will be more hawkish than expected.

It was expected that Mr Trump would retreat from the disputed region, in line with his pledge to prioritise domestic issues and retreat from foreign affairs.

“Trump has a far more isolationist outlook than Clinton or Obama, but at the same time, if he had his own way, he’d be far more focused on domestic policy and domestic security, including things like terrorism and immigration,” Dr Lockyer said.

Judging by this announcement, the Trump administration may take a more hawkish approach after all.

WILL THIS ACTUALLY HAPPEN?

The Trump administration will face significant financial hurdles if it does take on this ambitious military program.

Asia-Pacific security expert Jingdong Yuan from the Centre For International Security Studies told news.com.au said it was achievable. He said Mr Trump will be able to work with the Republican-controlled Congress to do away with the sequester process that automatically cut $500 billion in defence over a decade.

But it could be relatively difficult for the incoming government to direct too much of its financial focus to defence.

“US defence spending as a percentage of GDP and government spending is at a historical low, especially after the wars in Afghanistan and Iraq,” said Dr Yuan.

“At the same time, entitlement spending, such as social security and medicare cannot be cut, and increase year by year, and federal government deficits of over $18-19 trillion make it difficult to spend more in discretionary areas such as defence.

“So Trump need to find the money to support his ambitious military programs. We will see.”

He also said that neither the United States nor China are being realistic when it comes down to it.

“Beijing and Washington will have to work on their differences while at the same time work together on things they both agree.

“This is a very complex relationship and neither America’s will to remain predominant nor China’s desire for a Sino-centric order in Asia are realistic.

“Indeed, if they both pursue these extreme goals, conflict will become more likely and it will be deeply destabilising for the region — Australia included.”

WHAT DOES ALL THIS MEAN FOR AUSTRALIA?

Defence Industries Minister Christopher Pyne says the planned expansion would create “remarkable opportunities” for Australia’s defence industry.

In a speech to be given at a Submarine Institute of Australia conference today, Mr Pyne will announce that the US expansion could offer a historic opportunity for Australia’s defence industry.

“To give you an understanding of the scale of this increase, it ­includes 50,000 more army troops, 70 new naval warships, 100 air force planes and a dozen new marine battalions,” Mr Pyne will say. “This represents around half a trillion US dollar increase to the US defence budget over the next decade.

“This result could bring with it remarkable opportunities for the Australian defence industry and, thanks to the foresight of the Turnbull government, Australia is well positioned to grasp those opportunities.”

Yesterday, Mr Pyne told The Australian the country will take a “similar focus” to the United States in terms of its defence policy.

“At a time when the US is expanding capability, we are similarly focused. As we have demonstrated throughout the year, the government is putting defence at the very centre of our national policy agenda.”

Mr Giuliani acknowledged the Trump administration hopes to engage with China on economic issues, such as trade.

Yesterday, he told The Wall Street Journal the team wants to reset relations with both China and Russia.

But Mr Trump intends to label China a “currency manipulator” after taking office, which economic analysts say will likely contribute to rising tensions between the two countries.

Chinese media has taken a hostile response to Mr Trump’s more outlandish comments on the country during his campaign.

In May this year, the then-presidential candidate accused China of “raping” the United States economically, and vowed to impose a 45 per cent tariff on Chinese imports.

An article published in the country’s nationalistic newspaper The Global Times this week warned the Chinese government will be forced to “take a tit-for-tat approach” if the president-elect persisted with the trade war.

“If Trump wrecks Sino-US trade, a number of US industries will be impaired. Finally the new president will be condemned for his recklessness, ignorance and incompetence and bear all the consequences.”

This trade war may also present problems for Australia. China and the United States are our first and third largest trading partners respectively, and such an action could trigger a trade war if Beijing were to retaliate, which would directly impact these relationships.

All this said, Dr Yuan says it’s still too soon to panic over what the Trump administration may or may not do.

“The election fog is still here and we need time and information to get more realistic and accurate assessments,” he said.

“I remain cautiously optimistic.”

****

At issue with China is the waterway dispute instigated by China.

 CNN