Category Archives: Cyber War

Hillary DID have Accomplishments at State Dept

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Sheesh, it is true she did have many accomplishments but they are not the successes she would use for boasting.

She raised lots of money for the Clinton Foundation, she opened the pathway for Russia to control up to 50% of the uranium output of the United States and she was complicit is the death of four dead Americans.

Her best achievements at State was obstruction and cover-ups.

Sexual harassment complaints at State Department soar under Clinton, Kerry

In part from the Washington Times:

In a disclosure with political implications for 2016, the State Department’s chief watchdog reported Thursday that worker harassment complaints have nearly tripled inside the agency during the tenures of Hillary Clinton and John Kerry but the agency still doesn’t have mandatory training for all employees.

“A significant increase in reported harassment inquiries in the Department of State over the past few fiscal years supports the need for mandatory harassment training,” the department’s inspector general warned in a new oversight report that reviewed the agency’s civil rights office.

The report states that formal harassment claims rose from 88 cases in 2011 during Mrs. Clinton’s third year as America’s top diplomat, to 248 in 2014, Mr. Kerry’s second year as secretary. Hundreds more informal complaints were lodged during the same period.

Last year, 43 percent of the new complaints alleged harassment or unfair hirings or promotions while 38 percent raised sex discrimination or reprisals, the report said.

The report said some of the increases could be attributed to growing knowledge among employees about sexual harassment issues and the procedures for reporting it.

The inspector general said the Office of Civil Rights has made strides in improving the quality, speed and quantity of its work in recent years but that performance issues remains, such as a need to rebalance workloads, reassess positions and complete delinquent performance evaluations. The office has two civil rights complaints pending against itself, it added. More sordid details are here.

Hold on there is more….and personally I read the emails in Wikileaks a few years ago.

Records suggest Hillary chief of staff blocked probe of ambassador nominee

From the Washington Examiner:

 Top State Department staff under Hillary Clinton allegedly blocked an  investigation into the president’s nominee for ambassador to Iraq.

The ambassador-designate, Brett McGurk, was accused of engaging in inappropriate behavior with a reporter from the Wall Street Journal and funneling her information he was not authorized to disclose.

McGurk withdrew his name from consideration for the ambassadorship in the face of a growing scandal over emails that revealed his extra-marital affair with the reporter, Gina Chon. His relationship with the journalist prompted concerns among Republican lawmakers, although the extent of the internal cover-up of his conduct was not then known.

McGurk is presently one of President Obama’s key advisers on the Islamic State, having survived the scandal in 2012 with the help of higher-ups in the Bureau of Diplomatic Security.

“There were rumors inside the State Department that the investigation into McGurk’s actions in Iraq was squashed at the very highest levels,” Van Buren told the Washington Examiner.

Van Buren retired from the State Department in 2012 after a lengthy legal battle with the State Department over whistleblower disclosures he made in a book about his time in Iraq with the agency from 2009 to 2010.

During his nearly quarter-century at the State Department, Van Buren said he saw a variety of management styles from the secretary’s office as agency leadership shifted.

“I think what a lot of State Department people felt was that previous secretaries were focused more on protecting the institution and, by extension, themselves,” he said. “Whereas the Clinton people were 90 percent concerned about protecting Hillary and maybe 10 percent concerned about protecting the institution.”

Although the investigation was eventually closed in July 2013, speculation that he was about to be named to another high-level position involving Iraq began swirling months earlier.

McGurk is presently Deputy Special Presidential Envoy for the Global Coalition to Counter ISIL.

His high-profile role puts him at the forefront of the conflict with the Islamic State. For example, he appeared on NBC’s “Meet the Press” Sunday to announce the government’s intention to equip tribal fighters in Iraq to support their fight against the Islamic State.

McGurk’s affair with Chon, to whom he is now married, became the subject of public scrutiny after a 2012 “computer hacking incident” in Baghdad resulted in the publication of racy emails back and forth between the two while he was in line to be the next ambassador to Iraq.

The leaked emails suggested at the time the two had a sexual relationship. But they also suggested the ambassador-designate may have given sensitive information to the reporter.

The communications show McGurk asked Chon to text him on his Blackberry because texting was a “better way to engage in sensitive deliberations” than emailing from his government address.

Several messages between McGurk and the Journal reporter suggested he used his position to provide Chon with access to Iraqi sources. Yes, there are more details on this one too.

In case that is not enough on the details of Iraq, Blackberry phones, emails and more….click here.

 

 

 

 

China did Not Hack OPM, Operative Just Signed In

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Per ARS Technica: Not only were the database records of POM not encrypted, it simply did not matter. At least 14 million personnel files have been compromised and protecting social security numbers by encryption did not mater.

But even if the systems had been encrypted, it likely wouldn’t have mattered. Department of Homeland Security Assistant Secretary for Cybersecurity Dr. Andy Ozment testified that encryption would “not have helped in this case” because the attackers had gained valid user credentials to the systems that they attacked—likely through social engineering. And because of the lack of multifactor authentication on these systems, the attackers would have been able to use those credentials at will to access systems from within and potentially even from outside the network.

House Oversight Chairman Jason Chaffetz (R-Utah) told Archuleta and OPM Chief Information Officer Donna Seymour, “You failed utterly and totally.” He referred to OPM’s own inspector general reports and hammered Seymour in particular for the 11 major systems out of 47 that had not been properly certified as secure—which were not contractor systems but systems operated by OPM’s own IT department. “They were in your office, which is a horrible example to be setting,” Chaffetz told Seymour. In total, 65 percent of OPM’s data was stored on those uncertified systems.’

Even more chilling, a person or team just found a way to sign in as a root user.

Some of the contractors that have helped OPM with managing internal data have had security issues of their own—including potentially giving foreign governments direct access to data long before the recent reported breaches. A consultant who did some work with a company contracted by OPM to manage personnel records for a number of agencies told Ars that he found the Unix systems administrator for the project “was in Argentina and his co-worker was physically located in the [People’s Republic of China]. Both had direct access to every row of data in every database: they were root. Another team that worked with these databases had at its head two team members with PRC passports. I know that because I challenged them personally and revoked their privileges. From my perspective, OPM compromised this information more than three years ago and my take on the current breach is ‘so what’s new?'”

Given the scope and duration of the data breaches, it may be impossible for the US government to get a handle on the exact extent of the damage done just by the latest attack on OPM’s systems. If anything is clear, it is that the aging infrastructure of many civilian agencies in Washington magnify the problems the government faces in securing its networks, and OPM’s data breach may just be the biggest one that the government knows about to date.

Future consequences of lack of security of data systems is blackmail

Reuters: The same hackers breached several health insurance companies last summer and made off with the medical records of 11 million people, including members of Blue Cross/Blue Shield’s District of Columbia affiliate CareFirst.

Media pundits spent all week talking about how Deep Panda could compile all this information to craft a potential blackmail database on U.S. operatives for its patron, presumably China. But that’s ridiculous. Beijing is smarter than that.

Espionage is a long game, not a race, and countries are patient. Blackmail is a quick, brutal method of acquiring information in the short term.

It typically begins when foreign agents play on a target’s existing weakness — a penchant for gambling, for example, or deviant sexual behavior — enticing the target to indulge in it and then threatening exposure.

That’s a lot of work for a short-term gain. Blackmail targets are almost always found out, or turn on their blackmailers or end their lives. No, a better use for that database is as a reference to create the background for the perfect mole. Many additional details found here.

An additional security concern of real proporations is this cyber intrusion has affected Hill and Congressional staff.

In Part from the Hill: Officials had initially said the breach only encompassed 4.2 million federal employees, all within the executive branch. But the discovery of a second breach that compromised security clearance data has many expecting the breach to eventually expose up to 14 million people.

According to an email sent to House staff members shortly before midnight Tuesday and obtained by The Hill, many of them are at risk.

“It now appears likely that the service records of current House employees employed previously by ANY federal government entity (including the House, if an individual left the House and later returned to a House position) may have been compromised,” said the email said, sent by House Chief Administrative Officer Ed Cassidy.

When staffers leave Capitol Hill, or any federal agency, their retirement records are forwarded to the OPM.

“In addition, the background investigation files of individuals holding security clearances (whether currently active or not) may have been exposed,” the email added.

Senate staffers received a similar email from the Senate Sergeant at Arms several hours earlier on Tuesday, according to multiple reports.

 

 

Putin’s Propaganda Game, Effective

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President Vladimir Putin said on Tuesday that Russia was concerned about an anti-missile defense system near its borders, after announcing that Russia would add more than 40 intercontinental ballistic missiles (ICBM) to its nuclear arsenal this year.

“We will be forced to aim our armed forces … at those territories from where the threat comes,” Putin said.

Putin made his comments a day after Russian officials denounced a U.S. plan to station tanks and heavy weapons in NATO member states on Russia’s border. Putin said it was the most aggressive act by Washington since the Cold War a generation ago.

Putin, the Patriot

Putin opens ‘military Disneyland’ near Moscow

KUBINKA , Russia, June 17 (UPI) — Russian President Vladimir Putin opened “Patriot Park,” a military theme park funded by the Russian Defense Ministry.

The 15,000-acre park, a hour away from Moscow in Kubinka, will be completed by 2017 featuring hotels, conference centers and a residence for Defense Minister Sergey Shoigu. A massive assortment of military hardware will be on display on which children can climb and play.

U.S. Secretary of State John Kerry said that Russia’s plans to buy more intercontinental ballistic missiles was concerning and could herald a return to the international hostility of the “Cold War.” “Nobody should hear that kind of announcement from the leader of a powerful country and not be concerned about what the implications are,” Kerry said in a teleconference Tuesday.

“Of course it concerns me, we have the START agreement (the nuclear arms reduction treaty between the U.S. and Russia) and we’re trying to move in the opposite direction,” he said.   

Kerry said that, since the 1990s, there had been “enormous cooperation” in the destruction of nuclear weapons that were in the former territories of the Soviet Union.

Since leaving the hospital, John Kerry is even busier and that included making a phone call to his Russian counterpart:

Washington, Jun 16 (EFE).- U.S. Secretary of State John Kerry telephoned his Russian counterpart Sergei Lavrov on Monday, urging him to expedite implementation of the Minsk peace agreement and resolve the Ukraine conflict.

“Kerry urged Russia to seize the opportunity of upcoming meetings of the Trilateral Contact Group and its Working Groups to accelerate progress on implementing the Minsk agreements,” State Department spokesman John Kirby said in a brief statement.

The Trilateral Contact Group and its Working Groups, comprising representatives from Ukraine, Russia and the Organization for Security and Co-operation in Europe, or OSCE, favours a diplomatic solution to the conflict in East Ukraine along the Russian border.

However, renewed clashes between government forces and pro-Russian rebels in the Donetsk region in early June had made the viability of peace agreements doubtful.

The last peace agreement was signed in February.

Fresh clashes had erupted in Marinka, along the separation line between the warring forces, 20 kms (12 miles) west of Donetsk, the main separatist bastion.

A report by OSCE observers says the separatists launched the offensive while the government forces limited themselves to defense.

Kerry and Lavrov took the opportunity to also discuss the situation in Syria, Iran, Yemen and the Arctic Council, Kirby added.

 

 

 

 

 

WalMart has a Secret Global Operation

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In 2013, WalMart announced an ‘All American’ objective….yet there are other truths.

Wal-Mart Stores Inc will buy an additional $50 billion in U.S.-made goods over the next decade in areas like sporting goods and high-end appliances in what the world’s largest retailer called a bid to help boost the U.S. economy. Wal-Mart, the largest private employer in the United States, also said on Tuesday it plans to hire 100,000 newly discharged veterans over the next five years, at a time when the U.S. unemployment rate is at 7.8 percent.

The moves are likely to receive a cool reception from critics, who claim Wal-Mart does not pay its workers enough and slam the retailer for selling too many goods made in lower-cost countries like China. The company is also under pressure over its sourcing practices, particularly after a deadly fire at a Bangladesh factory that made Wal-Mart clothes.

Then Walmart went all in with China.

But WalMart is fully offshore hiding monies for tax purposes…what would Barack Obama say?

Wal-Mart Has $76 Billion in Undisclosed Overseas Tax Havens

Wal-Mart Stores Inc. owns more than $76 billion of assets through a web of units in offshore tax havens around the world, though you wouldn’t know it from reading the giant retailer’s annual report. A new study has found Wal-Mart has at least 78 offshore subsidiaries and branches, more than 30 created since 2009 and none mentioned in U.S. securities filings. Overseas operations have helped the company cut more than $3.5 billion off its income tax bills in the past six years, its annual reports show. The study, researched by the United Food & Commercial Workers International Union and published Wednesday in a report by Americans for Tax Fairness, found 90 percent of Wal-Mart’s overseas assets are owned by subsidiaries in Luxembourg and the Netherlands, two of the most popular corporate tax havens.

Units in Luxembourg — where the company has no stores — reported $1.3 billion in profits between 2010 and 2013 and paid tax at a rate of less than 1 percent, according to the report. All of Wal-Mart’s roughly 3,500 stores in China, Central America, the U.K., Brazil, Japan, South Africa and Chile appear to be owned through units in tax havens such as the British Virgin Islands, Curacao and Luxembourg, according to the report from the advocacy group. The union conducted its research using publicly available documents filed in various countries by Wal-Mart and its subsidiaries. Randy Hargrove, a Wal-Mart spokesman, called the report incomplete and “designed to mislead” by its union authors. He said the company has “processes in place to comply with applicable SEC and IRS rules, as well as the tax laws of each country where we operate.”

Mailbox Subsidiaries

The union behind the study backs the Organization United for Respect at Wal-Mart, a group that campaigns for wage increases and more predictable schedules. Wal-Mart has historically resisted unions and discourages employees from joining them. The report comes a week after the Group of Twenty nations unveiled its latest effort to combat multinational corporate tax avoidance. The body wants companies to disclose to regulators where they book profits, employees and sales, so tax authorities can be aware of discrepancies between where corporations report income and where they have operations. Hargrove, the Wal-Mart spokesman, pointed to guidance issued by the SEC that permits companies to avoid disclosure of subsidiaries with significant “intercompany transactions.” He said Wal-Mart’s tax savings overseas was driven by lower rates in markets including Canada and the U.K.

‘Continuing Evidence’

Companies such as Google Inc., Apple Inc. and Starbucks Corp. have come under fire for avoiding billions of dollars of income taxes by attributing profits to mailbox subsidiaries in low-tax jurisdictions like Bermuda. The Group of Twenty has directed the Organization for Economic Cooperation and Development to develop plans to crack down on such strategies. The new Wal-Mart disclosures could expand the scope of international tax reform, which has often focused on technology companies that move profits offshore by assigning valuable patent rights to mailbox units. Bloomberg News reported last year that Inditex SA, the parent of Zara, the world’s biggest fashion retailer, cut its taxes by shifting billions of dollars of profits to a tiny Dutch unit. “This report is continuing evidence that everybody has been engaging in cross-border tax avoidance,” said Stephen E. Shay, a professor at Harvard Law School and former deputy assistant secretary for international tax affairs for the Obama Treasury Department.

Hybrid-Loan Strategy

Nearly a decade ago, Wal-Mart ran into trouble over strategies to avoid U.S. state income taxes. It used a real estate investment trust to effectively pay rent to itself, generating big tax deductions, even though the rent payments never left the company. At least six states changed their tax laws after publicity about the tactics. Since then, Wal-Mart has stepped up its use of offshore tax havens. It has created 20 new subsidiaries in Luxembourg alone since 2009, according to the report. Wal-Mart employs a popular legal strategy in that country called a hybrid loan. It permits companies’ offshore units to take tax deductions for interest paid — typically on paper only — to their parents in the U.S. The parent, however, doesn’t include that interest as taxable income in the U.S. The OECD has called for an end to the tax benefits of such loans. Luxembourg generated headlines last year after the International Consortium of Investigative Journalists revealed its role in cutting the tax bills of hundreds of multinationals.

Union Funding

U.S. companies owe tax at a rate of 35 percent but can defer indefinitely the income taxes on profits attributed to overseas units. In 2011, Wal-Mart’s then-chief executive officer, Mike Duke, called in testimony before Congress for a system that would exempt from U.S. income tax the earnings that multinationals generate overseas. Wal-Mart’s accumulated offshore earnings have doubled to $23.3 billion in 2015 from $10.7 billion 2008. The company operates about 6,300 stores in 27 countries outside the U.S. and last fiscal year reported 28 percent of its sales abroad, or about $137 billion. Wal-Mart paid $6.2 billion in U.S. income tax last year, Hargrove, the company spokesman, said, or “nearly 2 percent of all corporate income tax collected by the U.S. Treasury.” Americans for Tax Fairness called on the European Union to open investigations into whether the Luxembourg tax benefits constitute illegal state aid. The EU has issued preliminary findings that this was indeed the case with companies using similar strategies in various countries, including as Starbucks in the Netherlands, Apple in Ireland and Fiat SpA in Luxembourg. The tax group receives most of its funding from foundations, including the Ford Foundation, Open Society Foundations, Bauman Foundations and Stoneman Family Foundation. It’s also funded by public-sector unions, including the American Federation of State, County and Municipal Employees and the National Education Association.

Obama and DHS Fully Compromised our Security

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Getting into America just got easier….

Easier? Yes and while no one is talking about it but I got a tip from an insider. Did you hear the announcement by Jeh Johnson? This program already exists.

It might be a lot easier – and faster – for international travelers to fly into the United States soon.

The U.S. Department of Homeland Security said Friday it will seek approval to put pre-clearance centers at 10 airports in nine foreign countries.

If negotiations are successful, those centers will allow travelers to go through U.S. Customs and Border Protection clearance before they get on their airplane headed to the United States. Once landed, they would not have to be rescreened.

Here’s what Homeland Security Secretary Jeh Johnson said in the DHS announcement:

“A significant homeland security priority of mine is building more preclearance capacity at airports overseas. We have this now in 15 airports. I am pleased that we are seeking negotiations with 10 new airports in nine countries.

“I want to take every opportunity we have to push our homeland security out beyond our borders so that we are not defending the homeland from the one-yard line. Preclearance is a win-win for the traveling public. It provides aviation and homeland security, and it reduces wait times upon arrival at the busiest U.S. airports.”

The U.S. will enter talks with officials in Belgium, the Netherlands, Norway, Spain, Sweden, Turkey and the United Kingdom in Europe, as well as Japan and the Dominican Republic.

The 10 airports would be Brussels Airport, Belgium; Punta Cana Airport, Dominican Republic; Narita International Airport, Japan; Amsterdam Airport Schipol, Netherlands; Oslo Airport, Norway; Madrid-Barajas Airport, Spain; Stockholm Arlanda Airport, Sweden; Istanbul Ataturk Airport, Turkey; and London Heathrow Airport and Manchester Airport in the United Kingdom.

“These countries represent some of the busiest last points of departure to the United States – in 2014, nearly 20 million passengers traveled from these ten airports to the U.S.,” DHS said.

For travelers to Dallas/Fort Worth International Airport, the pre-clearance would be available on flights from London Heathrow (American Airlines and British Airways); Amsterdam (KLM Royal Dutch Airlines); Tokyo Narita (American); Madrid-Barajas (American); and Punta Cana (Sun Country Airlines).

Officials from trade group Airlines for American and from American and JetBlue Airways quickly praised the DHS effort.

“U.S. airlines drive $1.5 trillion in economic activity, and by improving the passenger experience for visitors or those returning to the United States, while improving security, we can build on that,” A4A President and chief executive Nick Calio said. “The addition of these pre-clearance airports will help increase safety and security while improving the passenger experience with shorter wait times and quicker connections on arrival in the U.S.”

“Expanding air preclearance is a tremendous step forward for improving the overall travel experience for our customers and welcoming more visitors to the United States,” AA chief operating officer Robert Isom said. “Preclearance eases the congestion at our U.S. gateway airports and ensures our customers get to their destinations faster.”

In addition to the three airports served by American from its D/FW hub, the pre-clearance centers would go to four other airports served by American out of other U.S. airports – Manchester, Amsterdam, Punta Cana and Brussels.

JetBlue passengers would benefit from the Punta Cana pre-clearance center.

“We believe that in addition to the need for an increase in CBP staffing at key U.S. gateway airports, more preclearance facilities like the ones being proposed around the globe are an important tool to enhance our nation’s security and reduce the number of travelers clearing Customs stateside — and that ultimately reduces wait times for travelers on all airlines,” JetBlue president and CEO Robin Hayes said.

United also thanked DHS for the proposal.

“We have worked closely with U.S. Customs and Border Protection and support developments that provide more convenience for our customers,” the carrier said in a statement. “We thank Secretary Johnson and his team at the Department of Homeland Security and CBP for their engagement with United and the airline industry, and we look forward to partnering with them on this initiative to facilitate travel and reduce wait times.”

U.S. Travel Association president Roger Dow issued this statement:

“When the experience for the international traveler improves, the U.S. economy improves, and again this administration deserves praise for pressing ahead with innovative policies that simultaneously bolster national security and streamline the customs entry process.

“Customs preclearance is a program that has proven itself effective, and extending it to these key travel markets will undoubtedly boost visitation. As a bonus, adding preclearance facilities will further relieve pressure on the customs entry process here on our shores, improving the system generally.

“Evolving policies such as these are a big reason why we surpassed a record 74 million international visitors to the U.S. last year, and are well on pace to reach 100 million visitors annually by 2021. With overseas visitors spending an average of $4,300 per person, per trip, that’s just good economic sense.”

Customs and Border Protection currently staffs 15 centers in six countries: Dublin and Shannon in Ireland; Aruba; Freeport and Nassau in the Bahamas; Bermuda; Calgary, Toronto, Edmonton, Halifax, Montreal, Ottawa, Vancouver and Winnipeg in Canada; and Abu Dhabi in the United Arab Emirates.

This is a ‘preclearance system’.  Please read the full description here.

In 2013, there was a Customs and Border Patrol hearing on this matter in the House of Representatives. Essentially, we cant control security within our borders now we are extending them globally and relying on foreign governments and security services? That did not work out at all in Benghazi. Here is the testimony and it is a must read.