The Russians Hacked the NSA? Ah…What?

This is bad bad bad….and panic has struck Washington DC ….payment is to be in Bitcoins…

Graphics of files below courtesy of Arstechnica.

    

More here in further detail.

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Most outside experts who examined the posts, by a group calling itself the “Shadow Brokers,” said they contained what appeared to be genuine samples of the code — though somewhat outdated — used in the production of the NSA’s custom-built malware. Most of the code was designed to break through network firewalls and get inside the computer systems of competitors like Russia, China and Iran. That, in turn, allows the NSA to place “implants” in the system, which can lurk unseen for years and be used to monitor network traffic or enable a debilitating computer attack.  More here.

NSA and the No Good, Very Bad Monday

LawFare: Monday was a tough day for those in the business of computer espionage. Russia, still using the alias Guccifer2.0, dumped even more DNC documents. And on Twitter, Mikko Hypponen noted an announcement on Github that had gone overlooked for two days, a group is hosting an auction for code from the “Equation Group,” which is more commonly known as the NSA. The auctioneer’s pitch is simple, brutal, and to the point:

How much you pay for enemies cyber weapons? Not malware you find in networks. Both sides, RAT + LP, full state sponsor tool set? We find cyber weapons made by creators of stuxnet, duqu, flame. Kaspersky calls Equation Group. We follow Equation Group traffic. We find Equation Group source range. We hack Equation Group. We find many many Equation Group cyber weapons. You see pictures. We give you some Equation Group files free, you see. This is good proof no? You enjoy!!! You break many things. You find many intrusions. You write many words. But not all, we are auction the best files.

This release included two encrypted files, and the password to one was provided as proof while the other remains encrypted. The attackers claim that they will provide the password to the second file to the winner of a Bitcoin auction.

The public auction part is nonsense. Despite prevailing misconceptions on cryptocurrency, Bitcoin’s innate traceability means that no one could really expect to launder even $1M out of a high profile Bitcoin wallet like this one without risking detection, let alone the $500M being requested for a full public release. The auction is the equivalent of a criminal asking to be paid in new, marked, sequential bills. Because the actors here are certainly not amateurs, the auction is presumably a bit of “Doctor Evil” theater—the only bids will be $20 investments from Twitter jokesters.

But the proof itself appears to be very real. The proof file is 134 MB of data compressed, expanding out to a 301 MB archive. This archive appears to contain a large fraction of the NSA’s implant framework for firewalls, including what appears to be several versions of different implants, server side utility scripts, and eight apparent exploits for a variety of targets.

The exploits themselves appear to target Fortinet, Cisco, Shaanxi Networkcloud Information Technology (sxnc.com.cn) Firewalls, and similar network security systems. I will leave it to others to analyze the reliability, versions supported, and other details. But nothing I’ve found in either the exploits or elsewhere is newer than 2013.

Because of the sheer volume and quality, it is overwhelmingly likely that this data is authentic. And it does not appear to be information taken from compromised targets. Instead, the exploits, binaries with help strings, server configuration scripts, 5 separate versions of one implant framework, and all sort of other features indicate that this is analyst-side code—the kind that probably never leaves the NSA.

It is also unlikely that this data is from the Snowden cache. Those documents focused on PowerPoint slides and shared data, not detailed exploits. Besides NSA, the only plausible candidate for ownership is GCHQ—and the implications of stealing Top Secret data from GCHQ and modifying it to frame the NSA would themselves be startling.

All this is to say that there is relatively high confidence that these files contain genuine NSA material.

From an operational standpoint, this is not a catastrophic leak. Nothing here reveals some special “NSA magic.” Instead, this is evidence of good craftsmanship in a widely modular framework designed for ease of use. The immediate consequence is probably a lot of hours of work down the drain.

But the big picture is a far scarier one. Somebody managed to steal 301 MB of data from a TS//SCI system at some point between 2013 and today. Possibly, even probably, it occurred in 2013. But the theft also could have occurred yesterday with a simple utility run to scrub all newer documents. Relying on the file timestamps—which are easy to modify—the most likely date of acquisition was June 11, 2013 (see Update, however). That is two weeks after Snowden fled to Hong Kong and six days after the first Guardian publication. That would make sense, since in the immediate response to the leaks, as the NSA furiously ran down possible sources, it may have accidentally or deliberately eliminated this adversary’s access.

As with other recent cyber conflicts, the  espionage aspect is troubling but not entirely new. It’s very, very bad that someone was able to go rummaging through a TS//SCI system—or even an unclassified Internet staging system where the NSA operator unwisely uploaded all this data—and to steal 300 MB of data. But whoever stole this data now wants the world to know—and that has much graver implications. The list of suspects is short: Russia or China. And in the context of the recent conflict between the US and Russia over election interference, safe money is on the former.

Right now, I’d imagine that the folks at NSA are having rather unpleasant conversations about what the other encrypted file might contain, and what other secrets this attacker may have gained access to. Even if they were aware of the attack that resulted in this leak, there’s no way of knowing what is in the other archive. Is there evidence of another non-Snowden insider who went silent three years ago? Was a TS//SCI system remotely compromised? Was there some kind of massive screw-up at an agency which prides itself on world class OPSEC? Some combination of the three?

And—most chillingly—what else might be released before this war of leaks is over?

 

Update:  Thanks to @botherder for pointing out that a couple files have a newer date:  One file has a date of June 17th, 2013; another has a date of July 5th, 2013; three setup strips are dated September 4th, 2013; and two have dates of October 18th 2013.  One of those files (which I’m currently investigating) is the database of allocated Ethernet MAC addresses, which may be able to identify a later minimum date of compromise.  If the latter date of October 18th, 2013 is correct, this is even more worrysome, as this suggests that the compromise happened four months after the initial Snowden revelations—a period of time when the NSA’s systems should have been the most secure.

Update 2: Looking at the dates again, it now does seem somewhat likely that this was data copied on June 11th, 2013 with a few updates with a compromise after October 18th.  This does make it more likely that this was taken from a set of files deliberately moved onto a system on the Internet used for attacking others.  To my mind, this is actually an even scarier possibility than the NSA internal system compromise: This scenario would have the NSA, after the Snowden revelations, practicing some incredibly awful operational security.  Why should the NSA include five different versions of the same implant on a system used to attack other systems on the Internet?  Let alone implants which still have all the debugging strings, internal function names, and absolutely no obfuscation?

Update 3: Kaspersky confirms that the particular use of RC6 matches the unique design present in other Equation Group malcode.  XORcat apparently confirmed that the Cisco exploit works and, due to the versions it can attack, was a zero day at the time.  This exploit would generally work to take over a firewall from the inside of a target network since it did require limited access that is almost always blocked from the outside.

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In part from the WashingtonPost:

A cache of hacking tools with code names such as Epicbanana, Buzzdirection and Egregiousblunder appeared mysteriously online over the weekend, setting the security world abuzz with speculation over whether the material was legitimate.

The file appeared to be real, according to former NSA personnel who worked in the agency’s hacking division, known as Tailored Access Operations (TAO).

“Without a doubt, they’re the keys to the kingdom,” said one former TAO employee, who spoke on the condition of anonymity to discuss sensitive internal operations. “The stuff you’re talking about would undermine the security of a lot of major government and corporate networks both here and abroad.”

Said a second former TAO hacker who saw the file: “From what I saw, there was no doubt in my mind that it was legitimate.”

“Faking this information would be monumentally difficult, there is just such a sheer volume of meaningful stuff,” Nicholas Weaver, a computer security researcher at the University of California at Berkeley, said in an interview. “Much of this code should never leave the NSA.”

The tools were posted by a group calling itself the Shadow Brokers using file-sharing sites such as BitTorrent and DropBox.

At the same time, other spy services, like Russia’s, are doing the same thing to the United States.

It is not unprecedented for a TAO operator to accidentally upload a large file of tools to a redirector, one of the former employees said. “What’s unprecedented is to not realize you made a mistake,” he said. “You would recognize, ‘Oops, I uploaded that set’ and delete it.”

Critics of the NSA have suspected that the agency, when it discovers a software vulnerability, frequently does not disclose it, thereby putting at risk the cybersecurity of anyone using that product. The file disclosure shows why it’s important to tell software-makers when flaws are detected, rather than keeping them secret, one of the former agency employees said, because now the information is public, available for anyone to employ to hack widely used Internet infrastructure. Read the full article here.

The Authority of the Internet is Turned Over in 2 Months

This is surrender of the one place in the world where there is some freedom, the internet. The transfer date is September 30, 2016. Is this a big deal? Yes…..China and Russia don’t have a 1st amendment and it appears only one senator is waging the war to stop the transfer, Ted Cruz.

“From the very first days of the internet, the American government has maintained domain names and ensured equal access to everyone with no censorship whatsoever,” Cruz says in the video. “Obama wants to give that power away.”

That move poses a “great threat” to national security, Cruz said. Starting on the transfer date of Sept. 30, ICANN control could allow foreign governments to prohibit speech that they don’t agree with, he added.

Cruz has added an amendment to the Senate’s Highway Bill that would require an up-or-down vote on the administration’s plan to give ICANN control over names and numbers. And Cruz’s Protecting Internet Freedom Act, proposed with Republican Rep. Sean Duffy (Wis.), would prevent the transfer of authority to the global group. More from The Blaze.

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Twenty-five advocacy groups and some individuals have told leaders in the Senate and the House of Representatives that key issues about the transition are “not expected to be fully resolved until summer 2017.”

“Without robust safeguards, Internet governance could fall under the sway of governments hostile to freedoms protected by the First Amendment,” wrote the groups, which include TechFreedom, Heritage Action for America and Taxpayers Protection Alliance. “Ominously, governments will gain a formal voting role in ICANN for the first time when the new bylaws are implemented.” Read more here from PCWorld.

America to hand off Internet in under two months

WashingtonExaminer: The Department of Commerce is set to hand off the final vestiges of American control over the Internet to international authorities in less than two months, officials have confirmed.

The department will finalize the transition effective October 1, Assistant Secretary Lawrence Strickling wrote on Tuesday, barring what he called “any significant impediment.”

The move means the Internet Assigned Numbers Authority, which is responsible for interpreting numerical addresses on the Web to a readable language, will move from U.S. control to the Internet Corporation for Assigned Names and Numbers, a multistakeholder body that includes countries like China and Russia.

Critics of the move, most prominently Texas Republican Sen. Ted Cruz, have pointed out the agency could be used by totalitarian governments to shut down the Web around the globe, either in whole or in part.

Opponents similarly made the case that Congress has passed legislation to prohibit the federal government from using tax dollars to allow the transition, and pointed out that the feds are constitutionally prohibited from transferring federal property without approval from Congress. A coalition of 25 advocacy groups like Americans for Tax Reform, the Competitive Enterprise Institute, and Heritage Action sent a letter to Congress making those points last week.

While those issues could, in theory, lead to a legal challenge being filed in the days following the transfer, the administration has expressed a desire to finish it before the president leaves office, a position that Strickling reiterated.

“This multistakeholder model is the key reason why the Internet has grown and thrived as a dynamic platform for innovation, economic growth and free expression,” Strickling wrote. “We appreciate the hard work and dedication of all the stakeholders involved in this effort and look forward to their continuing engagement.”

China Expanding Militarization of Disputed Islands

Into the equation comes Vietnam.

BI: Vietnam has discreetly fortified several of its islands in the disputed South China Sea with new mobile rocket launchers capable of striking China’s runways and military installations across the vital trade route, according to Western officials.

Diplomats and military officers told Reuters that intelligence shows Hanoi has shipped the launchers from the Vietnamese mainland into position on five bases in the Spratly islands in recent months, a move likely to raise tensions with Beijing.

The launchers have been hidden from aerial surveillance and they have yet to be armed, but could be made operational with rocket artillery rounds within two or three days, according to the three sources. More here from BusinessInsider.

Photos suggest China built reinforced hangars on disputed islands: CSIS

Reuters: Satellite photographs taken in late July show China appears to have built reinforced aircraft hangars on its holdings in disputed South China Sea islands, a Washington-based research group said.

The hangars on Fiery Cross, Subi and Mischief Reefs in the Spratly islands have room for any fighter jet in the Chinese air force, the Center for Strategic and International Studies (CSIS) said in a report on the photographs.

The images have emerged about a month after an international court in The Hague ruled against China’s claims in the resource-rich area, a decision rejected by Beijing. China claims most of the South China Sea, through which $5 trillion in ship-borne trade passes every year. The Philippines, Vietnam, Malaysia, Taiwan and Brunei have overlapping claims.

Related reading: U.S. publicly challenges China’s moves in disputed islands

The United States has urged China and other claimants not to militarize their holdings in the South China Sea.

CSIS said that apart from a brief visit to Fiery Cross Reef by a military transport plane earlier in the year, “there is no evidence that Beijing has deployed military aircraft to these outposts.”

The rapid construction of the hangars, however, “indicates that this is likely to change.”

A U.S. defense official, speaking on condition of anonymity, said it was unlikely the hangers would be used for civilian purposes.

“It’s not like the hangers are for mail planes, they are likely for jets,” the official said.

The official added, however, that the Chinese move was seen as skirting around the line rather than crossing it, and there would be increased concern if China actually moved in military aircraft and started using a reef as a forward operating base.

China has repeatedly denied doing so and has in turn criticized U.S. patrols and exercises for ramping up tensions.

“China has indisputable sovereignty over the Spratly islands and nearby waters,” China’s Defence Ministry said in a faxed response to a request for comment on Tuesday.

“China has said many times, construction on the Spratly islands and reefs is multipurpose, mixed, and with the exception of necessary military defensive requirements, are more for serving all forms of civil needs.”

The hangars all show signs of structural strengthening, CSIS said. The new images were first reported by the New York Times.

Other facilities including unidentified towers and hexagonal structures have also been built on the islets in recent months, CSIS said.

Ties around the region have been strained in the lead-up to and since The Hague ruling.

China has sent bombers and fighter jets on combat patrols near the contested South China Sea islands, state media reported on Saturday. Japan has complained about what it has said were multiple intrusions into its territorial waters around another group of islands in the East China Sea.

Beijing Defiant After Ruling on S. China Sea Claims

Hague Court Strikes Down Beijing’s South China Sea Claims

2 More Obama Executive Orders, Curious and Late

Is this one a set up for the International Criminal Court? What about Russia, China or the drug cartels? It is curious that this comes last month when Syria has been at war for 5 years with 700,000 dead. Or could this also be a set up for gun control in America?

Executive Order — Comprehensive Approach to Atrocity Prevention and Response

EXECUTIVE ORDER

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A COMPREHENSIVE APPROACH TO ATROCITY PREVENTION AND RESPONSE

Section 1.  Policy.  As articulated in Presidential Study Directive-10 (PSD-10), preventing mass atrocities and genocide is a core national security interest and a core moral responsibility of the United States.  Noting that governmental engagement on mass atrocities and genocide too often arrives too late, when opportunities for prevention or low-cost, low-risk action have been missed, PSD-10 directed the establishment of an interagency Atrocities Prevention Board (Board), with the primary purpose of coordinating a whole-of-government approach to prevent mass atrocities and genocide.  PSD-10 also directed an interagency study to develop and recommend the membership, mandate, structure, operational protocols, authorities, and support necessary for the Board to coordinate and develop atrocity prevention and response policy.  This order continues in place the Board established in 2012 as I directed in PSD-10, sets out the support to be afforded by executive departments, agencies, and offices, and updates and memorializes the terms on which the Board will continue to operate in the service of its important mission.

  1. The Board shall be composed of individuals at the Assistant Secretary-level or higher who shall be designated by the leadership of their respective departments or agencies. Within 60 days of a vacancy on the Board, the relevant department or agency or office head shall designate a replacement representative and notify the National Security Advisor. In addition to the Chair, the Board shall consist of the designated representatives from the following:
  1. the Office of the Vice President;
  2. the Department of State;
  3. the Department of the Treasury;
  4. the Department of Defense;
  5. the Department of Justice;
  6. the Department of Homeland Security;
  7. the U.S. Mission to the United Nations;
  8. the Office of the Director of National Intelligence;
  9. the Central Intelligence Agency;
  10. the U.S. Agency for International Development;
  11. the Joint Chiefs of Staff; and
  12. such other agencies or offices as may request to participate in coordination with the Chair.
  1. The Board shall be composed of individuals at the Assistant Secretary-level or higher who shall be designated by the leadership of their respective departments or agencies.  Within 60 days of a vacancy on the Board, the relevant department or agency or office head shall designate a replacement representative and notify the National Security Advisor.  In addition to the Chair, the Board shall consist of the designated representatives from the following:
  2. the Office of the Vice President;
  3. the Department of State;
  4. the Department of the Treasury;
  5. the Department of Defense;
  6. the Department of Justice;
  7. the Department of Homeland Security;
  8. the U.S. Mission to the United Nations;
  9. the Office of the Director of National Intelligence;
  10. the Central Intelligence Agency;
  11. the U.S. Agency for International Development;
  12. the Joint Chiefs of Staff; and
  13. such other agencies or offices as may request to participate in coordination with the Chair.

The Department of Homeland Security (DHS) and the Department of Justice, in coordination with the Department of State, shall continue to develop proposals for legislative, regulatory, or administrative amendments or changes that would permit the more effective use and enforcement of immigration and other laws to deny impunity to perpetrators of mass atrocities and that would enhance our ability to prosecute such perpetrators subject to the jurisdiction of the United States and remove those who are not citizens. Read the whole EO here.

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There is yet another Executive Order and this is due to Mr. Weinstein, an American citizen being killed by an Obama drone strike.

Related reading: Obama Apologizes After Drone Kills American and Italian Held by Al Qaeda

The violent death of an American at the hands of his own government proved a searing moment in a drone war that has come to define the nation’s battle with Al Qaeda, especially since President Obama took office. Visibly upset, Mr. Obama came to the White House briefing room shortly after his staff issued a written statement announcing the deaths to make a rare personal apology.

“As president and as commander in chief, I take full responsibility for all our counterterrorism operations,” the grim-faced president told reporters as television cameras broadcast his words. “I profoundly regret what happened,” he added. “On behalf of the United States government, I offer our deepest apologies to the families.”

Executive Order — United States Policy on Pre- and Post-Strike Measures to Address Civilian Casualties in U.S. Operations Involving the Use of Force

(iv) maintain channels for engagement with the International Committee of the Red Cross and other nongovernmental organizations that operate in conflict zones and encourage such organizations to assist in efforts to distinguish between military objectives and civilians, including by appropriately marking protected facilities, vehicles, and personnel, and by providing updated information on the locations of such facilities and personnel.

Sec. 3. Report on Strikes Undertaken by the U.S. Government Against Terrorist Targets Outside Areas of Active Hostilities. (a) The Director of National Intelligence (DNI), or such other official as the President may designate, shall obtain from relevant agencies information about the number of strikes undertaken by the U.S. Government against terrorist targets outside areas of active hostilities from January 1, 2016, through December 31, 2016, as well as assessments of combatant and non-combatant deaths resulting from those strikes, and publicly release an unclassified summary of such information no later than May 1, 2017. By May 1 of each subsequent year, as consistent with the need to protect sources and methods, the DNI shall publicly release a report with the same information for the preceding calendar year. Read the full Executive Order here.