Category Archives: Cyber War

Emerging Putin’s Geo Aggressions

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Putin has an inside circle and it is bid-rigging and creating wealth though fraud and collusion. Cunning, calculated, measured and well planned, Putin has a global objective. Is he stoppable beyond Syria?

Few have spoken about the national blackout, the cyber-attack on Ukraine’s power grid. If it can happen in Ukraine, it can happen in America. It must be noted who owns and controls companies with ties to infrastructure….Putin’s friends. For a chilling read, go here.

In part: In a statement announcing the sanctions, the U.S. Treasury Department alleged that Putin “has investments” with Gunvor, the oil-trading firm that Timchenko founded but exited a day before he was hit with U.S. sanctions, and “may have access to Gunvor funds.”

Washington has not released any evidence to substantiate these claims, which the Kremlin and Gunvor deny. (The firm also says CEO Torbjorn Tornqvist was in charge of daily operations.)*

Meanwhile, Navalny filed a lawsuit earlier this month accusing Putin of a conflict of interest in awarding $1.75 billion in state financing to a company part-owned by Shamalov, his alleged son-in-law. A Moscow court rejected the lawsuit, saying it did not qualify for consideration under “administrative proceedings.” Full article here.

When it comes to Crimea and most recently Ukraine, does anyone care? For a data cache on Russian aggressions on Ukraine, go here.

According to Ukrainian officials on March 1 Russia sent three trains with ammunition to the occupied city of Ilovaisk and two tanks and four armoured personnel vehicles to Novoazovsk.

NATO’s top commander says Russian military activity in eastern Ukraine is increasing. Earlier, General Philip Breedlove also warned of ‘disturbing trends’ – including more sniper fire and shelling on the frontline. The NATO leader claims Russia has placed “well above” 1,000 pieces of military hardware in Ukraine over the past 12 months. More here.

Then comes Kazakhstan, where it appears covert pro-Russian adjustments are next up for Putin and Kazakhstan is taking notice.

Reuters in part: Demographically, the region therefore has much in common with Ukraine’s Crimea peninsula and the eastern Donbass region, whose majority Russian-speaking populations pulled out of Kiev’s orbit with help from Moscow.

There is no separatist rebellion in northern Kazakhstan, but the ethnic Russians, who make up more than a fifth of the country’s 18 million population, are feeling increasingly insecure and some sympathize with the separatists in Ukraine.

The Ukraine experience has made the Kazakh authorities highly sensitive to any signs of disloyalty by ethnic Russians. Ethnically based political parties are banned.

Last year, a court in eastern Kazakhstan sentenced a user of Vkontakte, a Russian-based social network, to five years in prison for posting a poll which asked people whether they would support the idea of that region, which also has a big ethnic Russian population, becoming part of Russia.

“Their bodies are in Kazakhstan but their minds are in Russia,” said political analyst Dosym Satpayev, talking about what he described as the significant portion of the Kazakh population influenced by Russian media.

“There are signs that (the authorities) in Kazakhstan are beginning to realize it also faces a separatist threat,” said Satpayev, who runs the Risk Assessment Group, a think tank.

There are no signs of Moscow promoting separatism in Kazakhstan, although it wants to keep the country in its orbit. More here.

So beyond the matter of Putin taking over Syria, then gaining power and control in Afghanistan again, there is the matter of the Arctic. Enter ICEX.

Military: The U.S. Navy’s submarine force is setting up a temporary command center on a sheet of Arctic ice, where U.S. underwater capabilities will be put to the test in the increasingly strategic High North.


The five-week submarine drill coincides with separate war games in Norway called Cold Response involving 16,000 U.S. and NATO forces. Marines have been launching stinger missiles and maneuvering tanks, and the Air Force has dispatched three B-52 Stratofortress bombers.
Together, the exercises underscore the emergence of the Arctic as an area of concern as melting ice caps raise the prospects for competition over vital undersea natural resources. The area could become a flash point between the U.S. and Russia.


“The Arctic environment plays a key role in national defense,” said U.S. Submarine Forces commander Vice Adm. Joseph E. Tofalo in a statement announcing the launch of Ice Exercise 2016. “With over a thousand miles of Arctic coastline, the U.S. has strong national security and homeland defense interests in the region.”


Then ICEX drill, which is being conducted in the Arctic Ocean, aims to evaluate the terrain and assess the readiness of U.S. submarines operating under ice. It does not explicitly address concerns of a growing Russian military presence.
Still, Russian activity in the High North has grabbed the attention of top U.S. military commanders.
“We are facing a very challenging situation in the Arctic,” European Command’s Gen. Philip Breedlove told lawmakers last week. “Many of our NATO allies, Canada and the U.S. are concerned about what we see as the militarization of the Arctic now by Russia.”
Since 2008, Russia has been steadily upgrading its forces in the Arctic: reopening air bases, restoring air-defense radar stations and building new submarines. The moves are all in response to new security challenges brought on by melting ice and the prospect of new shipping lanes.
Moscow’s actions reflect a focus on “goals beyond the Arctic region,” the Stockholm International Peace Research Institute said in a recent report examining Russian military capabilities and intentions in the region. More here.

Is there some negotiating or new deal that can stop Putin? Anyone?

 

 

 

Boeing Secret Deals with Iran, Skirting Sanctions

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Why Boeing kept Iran dealings under the radar

Author: Saam Borhani

alMonitor: Barely a week after the Jan. 16 lifting of nuclear-related sanctions on Iran, Tehran hosted its first international business summit in years. The event, sponsored by the Centre for Aviation (CAPA), brought together 400 executives of the global aviation industry to re-establish links with their Iranian counterparts after a decades-long estrangement. What raised eyebrows in Tehran and Washington, however, was the conspicuous absence of Boeing, the world’s largest aircraft manufacturer. Boeing’s curious decision to skip the CAPA event raised questions about the United States’ commitment to the sanctions relief mandated under the July 14, 2015, Joint Comprehensive Plan of Action (JCPOA). The decision Boeing made to stay home, likely prompted by unease as to the confusing web of remaining US sanctions, is a harbinger of things to come for the delicate dance between Iran and American business.

It turns out that Boeing, while skipping the high-profile CAPA event in Tehran, has actually been unofficially negotiating behind the scenes with Iranian civil aviation officials for a considerable time. Indeed, weeks after European rival Airbus signed a multibillion dollar deal for 118 passenger jets with Iran, Washington finally gave the go-ahead for Boeing to begin official negotiations and to apply for special licenses to sell aircraft to the Iranians.

As the world cashes in on an Iran ready to do business, the United States risks being late to the game because of a mixture of political sensitivities, confusion about the remaining American sanctions and structural impediments that make trading with Iran prohibitively risky for all but the most adept American companies.

American trade with Iran is known to attract seething headlines in both countries. A simple form on McDonald’s website about franchise opportunities in Iran last year prompted warnings of an impending cultural invasion of the country in the Iranian right-wing media. Similarly, US companies risk the wrath of special interest groups devoted to inflicting reputational damage because of trade with Iran. Halliburton and Hewlett-Packard are prominent examples of companies that have been attacked in the American media for previous legal business relations with Iran.

Groups such as United Against a Nuclear Iran have also been successful in convincing around half of the state legislatures to pass measures punishing companies operating in Iran. These local laws have directed state pension funds with billions of dollars in assets to divest from targeted companies and sometimes have barred these companies from public contracts. The impact of these state “sanctions” on the JCPOA is not clear and may yet prompt a political and legal battle between the federal government and state officials. Indeed, the harm to the reputations of US companies by such local punitive measures is a strong deterrent to engaging with the Iranian consumer. It is also an issue that is likely to continue, as long as Iran remains listed as a state sponsor of terrorism by the State Department.

For American companies large enough to weather bad publicity, the remaining and now largely unilateral US sanctions on Iran represent a potentially costly minefield. The JCPOA allows for licensed sales of American airliners to Iran and the legal importation of Iranian foodstuffs and rugs. Besides these specific carve-outs, US companies may trade with Iran under the general licenses that were available before the JCPOA and under specific licenses granted by the Office of Foreign Assets Control (OFAC), the Treasury Department’s sanctions administrator. In addition, foreign subsidiaries of US companies that are not under the control and direction of US persons may trade directly with Iran. Maintaining a robust compliance system and routinely checking company interactions with Iran to make sure that they do not run afoul of OFAC regulations is a costly and time-consuming endeavor. Indeed, any American company that trades with Iran under the terms of the JCPOA, and especially under the complicated foreign subsidiary clause, must be large enough to support sufficiently adept legal compliance teams. Small and medium-size US businesses are thus effectively shut out of a presence in Iran for this very reason.

For the large multinational American companies that may be able to gain a foothold in Iran, there remain structural constraints that residual US sanctions place on legal trade with Iran. The United States has made it clear that no payments linked to Iran may be processed through its financial system. This means that profits made by American businesses in Iran will likely not be able to be directly repatriated and probably will remain offshore in segregated foreign accounts. American companies must also contend with strict bars on doing business with any Iranian entities that remain on OFAC’s “specially designated nationals” list, the Iranian government and the Islamic Revolutionary Guard Corps. Each of these barred entities took over vast parts of the Iranian economy as a result of the international sanctions that have now been lifted.

The JCPOA has opened small opportunities for trade between American and Iranian firms. However, the remaining labyrinth of hard-to-understand restrictions will likely spook most Americans.

Both the Iranian and US governments have a vital interest in seeing that the JCPOA is an enduring agreement — and this partly depends on sanctions relief benefiting Iranian and American private sectors in a way that would effectuate the “buy-in” of JCPOA skeptics. A mutually beneficial trading arrangement that connects the private sectors of the United States and Iran — despite political differences — would strengthen the nuclear deal by attaching a direct economic cost to nonadherence. The limited avenues for legal trade, if quickly institutionalized, can be insulated from the historically volatile political relationship between Iran and the United States.

In this vein, a quiet Iranian commitment to protect American investors in Iran and to tone down the harshest anti-US rhetoric, at least with respect to American business, would give space for Wall Street to influence a change in Washington’s largely monolithic view of a hostile Iran. More importantly, a quiet US commitment to actively support legal trade with Iran — with the same zeal that it uses to enforce sanctions — would give the Iranians space to consider future negotiated compromises.

 

North Korea Nukes are Ready, Angered by Sanctions

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Report: North Korea readying nukes

AP: North Korean leader Kim Jong-un has ordered his country’s nuclear weapons made ready for use at a moment’s notice, the official state news agency reported Friday.

Kim also said his country will ready its military so it is prepared to carry out pre-emptive attacks, calling the current situation very precarious, according to KCNA.

On Thursday, North Korea fired six short-range projectiles into the sea off its east coast, South Korean officials said, just hours after the U.N. Security Council approved the toughest sanctions on the North in two decades for its recent nuclear test and long-range rocket launch.

The firings also came shortly after South Korea’s National Assembly passed its first legislation on human rights in North Korea.

The North Korean projectiles, fired from the eastern coastal town of Wonsan, flew about 100 to 150 kilometers (60 to 90 miles) before landing in the sea, South Korea’s Joint Chiefs of Staff said in a statement.

It wasn’t immediately known exactly what North Korea fired, and the projectiles could be missiles, artillery or rockets, South Korea’s Defense Ministry said.

North Korea routinely test-fires missiles and rockets, but often conducts weapons launches when angered at international condemnation.

Thursday’s firings were seen as a “low-level” response to the U.N. sanctions, with North Korea unlikely to launch any major provocation until its landmark ruling Workers’ Party convention in May, according to Yang Moo-jin, a professor at the University of North Korean Studies in Seoul.

North Korea has not issued an official reaction to the new U.N. sanctions. But citizens in its capital, Pyongyang, interviewed by The Associated Press said Thursday they believe their country can fight off any sanctions.

“No kind of sanctions will ever work on us, because we’ve lived under U.S. sanctions for more than half a century,” said Pyongyang resident Song Hyo Il. “And in the future, we’re going to build a powerful and prosperous country here, relying on our own development.”

North Korean state media earlier warned that the imposition of new sanctions would be a “grave provocation” that shows “extreme” U.S. hostility against the country. It said the sanctions would not result in the country’s collapse or prevent it from launching more rockets.

The U.N. sanctions include mandatory inspections of cargo leaving and entering North Korea by land, sea or air; a ban on all sales or transfers of small arms and light weapons to the North; and the expulsion of North Korean diplomats who engage in “illicit activities.”

In Beijing, Foreign Ministry spokesman Hong Lei said China, North Korea’s closest ally, hoped the U.N. sanctions would be implemented “comprehensively and seriously,” while harm to ordinary North Korean citizens would be avoided.

At the United Nations, Russia’s ambassador, Vitaly Churkin, asked about the North’s firing of short-range projectiles, said, “It means that they’re not drawing the proper conclusions yet.”

Japan’s U.N. ambassador, Motohide Yoshikawa, said, “That’s their way of reacting to what we have decided.”

“They may do something more,” Yoshikawa said. “So we will see.”

In January, North Korea conducted its fourth nuclear test, which it claimed was a hydrogen bomb. Last month, it put a satellite into orbit with a long-range rocket that the United Nations and others saw as a cover for a test of banned ballistic missile technology.

Just before the U.N. sanctions were unanimously adopted, South Korea’s National Assembly passed a bill that would establish a center tasked with collecting, archiving and publishing information about human rights in North Korea. It is required to transfer that information to the Justice Ministry, a step parliamentary officials say would provide legal grounds to punish rights violators in North Korea when the two Koreas eventually reunify.

North Korea, which views any criticism of its rights situation as part of a U.S.-led plot to overthrow its government, had warned that enactment of the law would result in “miserable ruin.”

In 2014, a U.N. commission of inquiry on North Korea published a report laying out abuses such as a harsh system of political prison camps holding up to 120,000 people. The commission urged the Security Council to refer North Korea to the International Criminal Court over its human rights record.

Chronology of U.S.-North Korean Nuclear and Missile Diplomacy

North Korea’s Efforts to Acquire Nuclear Technology and Nuclear Weapons: Evidence from Russian and Hungarian Archives

North Korea’s Congressional Report on Nuclear Weapons

Russia aided North Korea’s and Iran ’s Nuclear Weapons Program, begin page 61

  

 

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Branch by branch, a Look at N. Korea’s Massive Military

By ERIC TALMADGE – Associated Press –

TOKYO (AP) – With tensions high and the United States and South Korea ready to hold their massive annual war games next week, which North Korea sees as a dress rehearsal for invasion, Pyongyang is warning it will respond to any violations of its territory with “merciless” retaliation, including strikes on Seoul and the U.S. mainland.

“Military First” is the national motto of North Korea, which is ever wary of threats to its ruling regime and still technically at war with Washington and Seoul. Nuclear-armed and boasting the world’s fourth-largest military, it is persistently seen as the biggest challenge to the security status quo in East Asia, an image it loves to promote and showcased in an elaborate military parade last October.

The joint South Korea-U.S. military exercises are to begin March 7 and last more than a month. Tensions always go up when they do.

Pyongyang has poured huge resources into developing its nuclear and missile arsenals and maintaining its conventional forces. About 5 percent of its 24 million people are on active military duty, and another 25-30 percent are in paramilitary or reserve units, ready for mobilization.

But just how strong is Kim Jong Un’s army?

Here’s a look, based on what AP reporters and photographers have seen on the ground and the latest report to the U.S. Congress by the Office of the Secretary of Defense:

ON THE GROUND:

BY THE NUMBERS: 950,000 troops, 4,200 tanks, 2,200 armored vehicles, 8,600 pieces of field artillery, 5,500 multiple rocket launchers.

BEHIND THE NUMBERS: This is, and always has been, North Korea’s real ace in the hole. While its threat to launch a nuclear attack on the U.S. mainland appears to be well beyond its current capabilities, turning the South Korean capital into a “sea of fire” is not.

The ground forces of the Korean People’s Army form the largest segment of the military, by far. Seventy percent of them are forward-positioned around the Demilitarized Zone for quick mobilization in a contingency with South Korea; they are extremely well dug-in with several thousand fortified underground facilities.

Their arms are mostly “legacy equipment,” produced or based on Chinese and Russian designs dating back as far as the 1950s. But they have in recent years unveiled new tanks, artillery and infantry weapons. In the October parade, the KPA displayed a new 240 mm multiple rocket launcher with eight tubes on a wheeled chassis. Kim Jong Un was recently shown by state media observing a new, longer-range anti-tank weapon.

“Despite resource shortages and aging equipment, North Korea’s large, forward-positioned military can initiate an attack on the ROK (South Korea) with little or no warning,” the U.S. report concluded. “The military retains the capability to inflict significant damage on the ROK, especially in the region from the DMZ to Seoul.”

AT SEA:

BY THE NUMBERS: 60,000 sailors, 430 patrol combatant ships, 260 amphibious landing craft, 20 mine warfare vessels, about 70 submarines, 40 support ships.

BEHIND THE NUMBERS: Divided into east and west fleets with about a dozen main bases, the navy is the smallest branch of the North Korean military. But it has some significant strengths, including hovercraft for amphibious landings and one of the largest submarine forces in the world. An estimated 70 attack, coastal or midget-type subs provide stealth and strongly bolster coastal defenses and possible special operations. It has no “blue water” – or long-range – naval forces and relies heavily on a large but aging armada of small coastal patrol craft. But it, too, is upgrading some of its surface ships and has made a show of its efforts to domestically develop a submarine capable of launching a ballistic missile.

IN THE AIR:

BY THE NUMBERS: 110,000 troops, over 800 combat aircraft, 300 helicopters, more than 300 transport planes.

BEHIND THE NUMBERS: Here’s where the “legacy” aspect of the North Korean military really kicks in. North Korea hasn’t acquired any new fighter aircraft for decades. Its best fighters are 1980s-era MiG-29s bought from the Soviet Union, the MiG-23 and SU-25 ground attack aircraft. They all suffer chronic fuel shortages and pilots get little training time in the air. Its air-defense systems are aging and it continues to maintain lots of 1940s-era An-2 COLT aircraft, a single-engine, 10-passenger biplane, which would probably be most useful for the insertion of special forces troops behind enemy lines. Interestingly enough, it also has some U.S.-made MD-500 helicopters, which it is believed to have acquired by bypassing international sanctions. They were shown off during a parade in 2013.

SPECIAL FORCES:

BY THE NUMBERS: Not specified in report to Congress. Somewhere around 180,000 troops. Estimates vary.

BEHIND THE NUMBERS: North Korea is fully aware that it is outgunned, technologically inferior and logistically light years behind its adversaries. But it also knows how to shift the equation through asymmetric tactics that involve stealth, surprise and focusing on cheap and achievable measures with an outsized impact. Special forces operations are among them – and the North’s special forces are the “most highly trained, well-equipped, best-fed and highly motivated” units in the KPA. Commandos can be inserted into the South by air or sea, and possibly on foot through tunnels across the DMZ. The North is working hard on its cyberwarfare capabilities, another key asymmetric military tactic. It is believed to have a growing number of drones.

NUKES AND MISSILES:

BY THE NUMBERS: Number of nuclear weapons not specified in report to Congress. Possibly more than a dozen, outside sources estimate. 50 ballistic missiles with 800-mile range, 6 KN08 missiles with a range of 3,400-plus miles, unknown number of Taepodong-2 missiles with roughly same or longer range. Possibly one submarine-launched ballistic missile. Various shorter-range ballistic missiles.

BEHIND THE NUMBERS: North Korea claims to have tested its first hydrogen bomb on Jan. 6, the day after the Department of Defense report came out. That claim has been disputed, but there is no doubt it has nuclear weapons and its technicians are hard at work boosting their quantity and quality. Major caveat here: The operational readiness of its nuclear weapons and many of its ballistic missiles is debatable.

Pyongyang’s main hurdles are making nuclear warheads small enough to fit on its missiles, testing re-entry vehicles required to deliver them to their targets on an intercontinental ballistic missile and improving and testing the arsenal for reliability and accuracy. Its Taepodong-2 ballistic missile is the militarized version of the rocket it launched on Feb. 8 with a satellite payload. North Korea has yet to demonstrate that it has a functioning ICBM, generally defined as having a range of over 3,418 miles.

CHEMICAL, BIOLOGICAL:

This one is a question mark. The U.S. Defense Department claims Pyongyang is continuing research and development into both, and could use them, but offered no details on biologicals in its recent assessment. It said Pyongyang “likely” has a stockpile of “nerve, blister, blood and choking agents” that could be delivered by artillery shells or ballistic missiles. The North is not a signatory of the Chemical Weapons Convention and its troops train to fight in a contaminated environment.

 

 

When Sharia/ISIS Goes Capitalist and Trading

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Islamic State ‘earning millions by playing the stock market’

Group using cash looted from banks in Mosul to speculate on international currency markets

Telegraph: Isil is making millions of dollars for its war chest by playing foreign currency markets under the noses of bank chiefs, it was revealed today.

The terror group is earning up to $20m (£14.29m) a month by funnelling dollars looted from banks during its takeover of the Iraqi city of Mosul into legitimate currency markets in the Middle East.

It then makes huge returns on currency speculation, which are then wired back via unsuspecting financial authorities in Iraq and Jordan, a parliamentary committee was told on Wednesday.

Islamic State of Iraq and the Levant’s (Isil) extraordinary venture into white collar crime is now a major source of income, along with oil smuggling and extortion from people living in Isil-controlled areas.

Details of the scam emerged during a hearing of a specially-convened Foreign Affairs sub-committee set up to examine Britain’s role in Isil financing.

The hearing was told that Isil finance chiefs would play the international stock markets using cash looted during their 2014 take over of Mosul, in which the group got its hands on an estimated $429m from the city’s central bank.

They also used money “siphoned off” from pension payments that are still being made by the Iraqi government to civil servants living in the city.

The details were revealed to the hearing by John Baron, the sub-committee’s chair, who demanded to know whether the British government – which has pledged to help cut off Isil’s finance networks – was taking proper action against it.

“The cash that Isil has looted, along with siphoned off pension payments, is routed into Jordanian banks and brought back into the system via Baghdad,” he said. “That allows the system to be exploited by Isil, in that they take a turn (profit) on the foreign currency actions and siphon that cash back.”

The profits were channeled back into Isil coffers by “hawala” transfers, an unregulated system of money transfer whereby cash payments are made via agents in one country after a similar amount is presented as collateral in another.

Infographic: How Does ISIS Fund Itself? | Statista

Tobias Ellwood, a junior Foreign Office minister, admitted to the committee that there was a “porousness” in the local financial system but said that work was now underway to shut it down. It had been done without the active connivance of bank staff, he added.

In December, the Central Bank of Iraq named 142 currency-exchange houses in Iraq that the US suspected of moving funds for Islamic State. It banned them from its twice-monthly dollar auctions in a bid to stop the terror group getting its hands on the cash – a main source of exchange in war-torn Iraq.

But Mr Ellwood conceded: “Iraq could have moved faster on this”. Asked if the similar moves had been made in Jordan, he said he was unable to give an answer.

“Jordan plays an important role in the (anti-Isis) coalition,” he added. “Work is being done to close it down, I don’t think there is anything near as much from that source of revenue as before.”

The committee heard claims that Isil’s “rake off” from foreign currency speculation was a “significant part of their income stream”, although Mr Ellwood said he thought that estimates of $20m were excessive.

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Spiegel: Some members of the intelligence community even view spying in the global financial system with a certain amount of concern, as revealed by a document from the NSA’s British counterpart — the Government Communications Headquarters (GCHQ) — that deals with “financial data” from a legal perspective and examines the organization’s own collaboration with the NSA. According to the document, the collection, storage and sharing of “politically sensitive” data is a highly invasive measure since it includes “bulk data — rich personal information. A lot of it is not about our targets.”

Indeed, secret documents reveal that the main NSA financial database Tracfin, which collects the “Follow the Money” surveillance results on bank transfers, credit card transactions and money transfers, already had 180 million datasets by 2011. The corresponding figure in 2008 was merely 20 million. According to these documents, most Tracfin data is stored for five years.

Monitoring SWIFT

The classified documents show that the intelligence agency has several means of accessing the internal data traffic of the Society for Worldwide Interbank Financial Telecommunication (SWIFT), a cooperative used by more than 8,000 banks worldwide for their international transactions. The NSA specifically targets other institutes on an individual basis. Furthermore, the agency apparently has in-depth knowledge of the internal processes of credit card companies like Visa and MasterCard. What’s more, even new, alternative currencies, as well as presumably anonymous means of payment like the Internet currency Bitcoin, rank among the targets of the American spies.

The collected information often provides a complete picture of individuals, including their movements, contacts and communication behavior. The success stories mentioned by the intelligence agency include operations that resulted in banks in the Arab world being placed on the US Treasury’s blacklist.

In one case, the NSA provided proof that a bank was involved in illegal arms trading — in another case, a financial institution was providing support to an authoritarian African regime. Full article here.

Hey Pentagon, Hiring Hackers, a Good Idea?

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Personally I do see some positives, but I see more downsides….what say you?

The Department of Defense announced today that it will invite vetted hackers to test the department’s cybersecurity under a unique pilot program.  The “Hack the Pentagon” initiative is the first cyber bug bounty program in the history of the federal government.

 

Under the pilot program, the department will use commercial sector crowdsourcing to allow qualified participants to conduct vulnerability identification and analysis on the department’s public webpages.  The bug bounty program is modeled after similar competitions conducted by some of the nation’s biggest companies to improve the security and delivery of networks, products, and digital services. The pilot marks the first in a series of programs designed to test and find vulnerabilities in the department’s applications, websites, and networks.

 

Participants in the bug bounty will be required to register and submit to a background check prior to any involvement with the pilot program.  Once vetted, these hackers will participate in a controlled, limited duration program that will allow them to identify vulnerabilities on a predetermined department system.  Other networks, including the department’s critical, mission-facing systems will not be part of the bug bounty pilot program.  Participants in the competition could be eligible for monetary awards and other recognition.

This innovative project is a demonstration of Secretary Carter’s continued commitment to drive the Pentagon to identify new ways to improve the department’s security measures as our interests in cyberspace evolve.

Pentagon to Establish Defense Innovation Advisory Board

WASHINGTON, March 2, 2016 — In an effort to enhance the Defense Department’s culture, organization and processes by tapping innovators from the private sector in Silicon Valley and beyond, Defense Secretary Ash Carter announced plans today to establish a Defense Innovation Advisory Board, Pentagon Press Secretary Peter Cook said.

 Google, CEO

The initiative represents the secretary’s enduring commitment to building lasting partnerships between the public and private sectors, Cook said in a statement.

“Just as the Defense Business Board provides advice to the department on best business practices from the private sector, the Defense Innovation Advisory Board will provide advice on the best and latest practices in innovation that the department can emulate,” Cook added.

The board’s mandate is to provide department leaders independent advice on innovative and adaptive means to address future organizational and cultural challenges, the press secretary said, including the use of technology alternatives, streamlined project management processes and approaches — all with the goal of identifying quick solutions to DoD problems.

Areas Deeply Familiar in Silicon Valley

The board will seek to advise the department on areas that are deeply familiar to Silicon Valley companies, such as rapid prototyping, iterative product development, complex data analysis in business decision making, the use of mobile and cloud applications, and organizational information sharing, Cook said, and will not engage in discussion of military operations or strategy.

Alphabet Executive Chairman Eric Schmidt will chair the board, which will be composed of up to 12 people who have successfully led large private and public organizations and excelled at identifying and adopting new technology concepts, Cook said.

Carter and Schmidt will jointly select the board, Cook said. “Members will represent a cross-section of America’s most innovative industries, drawing on technical and management expertise from Silicon Valley and beyond,” he added.

As chairman of Alphabet and as the author of “How Google Works,” Schmidt has a unique perspective on the latest practices in harnessing and encouraging innovation and in the importance of technology in driving organizational behavior and business operations, Cook said.

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US spy chief James Clapper highlights cyber threats

BBC: US intelligence agencies have placed cyber attacks from foreign governments and criminals at the top of their list of threats to the country.

Online assaults would increasingly undermine US economic competitiveness and national security, said Director of National Intelligence James Clapper.

A report issued by his office said Russia’s military was setting up a cyber command to carry out attacks.

The report also describes China, Iran and North Korea as leading threats.

In testimony to a congressional committee on Thursday, Mr Clapper said he no longer believed the US faced “cyber Armageddon”.

The idea that major infrastructure such as financial networks or power grids could be disabled by hackers now looked less probable, he said.

However he warned: “We foresee an ongoing series of low-to-moderate level cyber attacks from a variety of sources over time, which will impose cumulative costs on US economic competitiveness and national security.”

Mr Clapper highlighted the case of Russia, which he said posed the greatest a cyber risk to US interests. He said that threat from the Russian government was “more severe” than previously realised.

He also said profit-minded criminals and ideologically driven hackers were also increasingly active.

Over the past year there have been a series of high-profile cyber attacks against US targets.

North Korea was accused of being behind the theft of a huge data cache from Sony Pictures in November.

Mr Clapper also mentioned the example of an alleged Iranian attack on the Las Vegas Sands Casino Corporation last year.

Meanwhile in January the Twitter and YouTube accounts of the US military command were hacked by a group claiming to back Islamic State (IS).

During the hearing, Mr Clapper acknowledged that the US had its own “offensive capabilities”.

In 2010 Iran experienced a cyber attack on its nuclear program. Tehran accused Israel and the US of planting malware.