WH/Jack Lew Helping Iran Launder Money

During the Obama summit, did Obama violate government secrets?

WASHINGTON, April 1 (UPI) For the first time in more than a decade, the United States has made public its inventory of nuclear uranium components, President Barack Obama said Friday. Much more here.

                                                         

 

The White House Cedes More, Even As Iran’s Economy Recovers

Mark Dubowitz, Annie Fixler
01 April 2016 – FDD Policy Brief

While U.S. and European diplomats celebrated the conclusion of the Joint Comprehensive Plan of Action last summer, Iran’s Supreme Leader Ali Khamenei and his government saw that deal as not the end of the negotiations but the beginning. This has become increasingly clear in their criticism of sanctions relief and demand for more.

The Obama administration appears ready to comply. Reportsconfirm that the administration is preparing a general license authorizing the use of the U.S. dollar in Iran-related transactions. This is intended to encourage large European and other banks to return to business with Iran and help alleviate its concerns about the legal risks associated with engaging with a country still under U.S. sanctions for money laundering, terrorism and missileproliferation, and human rights abuses.

The license would contradict repeatedadministrationpromises to Congress, and goes beyond any commitments made to Iran under the JCPOA. It also contradicts the evidence: Tehran has already received substantial sanctions relief, a major “stimulus package.”

In 2012 and 2013, Iran’s economy was crashing. It had been hit with an asymmetric shock from sanctions, including those targeting its central bank, oil exports, and access to the SWIFT financial messaging system. The economy shrank by six percent in the 2012-13 fiscal year, and bottomed out the following year, dropping another two percent. Accessible foreign exchange reserves were estimated to be down to only $20 billion.

This changed during the nuclear negotiations. During the 18-month period starting in late 2013, interim sanctions relief and the lack of new shocks enabled Iran to movefrom a severe recession to a modestrecovery. During that time, the Islamic Republic received $11.9 billion through the release of restricted assets, while sanctions on major sectors of its economy were suspended. This facilitated strong imports that supported domestic investment, especially from China. The Obama administration also de-escalated the sanctions pressure by blocking new congressional legislation. Jointly, these forces rescued the Iranian economy and its leaders, including the Revolutionary Guard, from an imminent and severe balance of payments crisis. In the 2014-15 fiscal year, the Iranian economy rebounded and grew at a rate of 3 to 4 percent.

Now, under the JCPOA, Iran has received access to an additional $100 billion in previously frozen foreign assets, significantly boosting its accessible foreign exchange reserves. Sanctions were also lifted on Iran’s crude oil exports and upstream energy investment, and on key sectors of the economy and hundreds of Iranian banks, companies, individuals, and government entities. The additional access of Iranian institutions to global financial payments systems has reduced transaction costs and the need for intermediaries.

In the current fiscal year – with declining oil prices and a tight monetary policy to rein in inflation – Iran’s economy grew only slightly, and may have even experienced a modest contraction. But in the coming fiscal year, its economy is projected to grow at a rate of 3 to 6 percent, according to estimates from the International Monetary Fund, World Bank, and private sector analysts. Assuming that Iran continues to make modest economic reforms to attract investment, the country’s economic growth is projected to stabilize around 4 to 4.5 percent annually over the next five years.

The future success of Iran’s economy depends on privatization, encouraging competition, addressing corruption, recapitalizing banks, and strengthening the rule of law. If Tehran wants to encourage foreign investment and alleviate international banks’ concerns, it also needs to end its support for terrorism, missile development, and destabilizing regional activities, and to reduce the economic power of the Revolutionary Guard Corps and the supreme leader’s business empire. All of these increase the risks of investing in the Islamic Republic, regardless of what deal sweeteners the White House provides.

Meanwhile, there is Russia who did NOT attend the Obama Nuclear Security Summit, but Russia is quite busy.

FreeBeacon: Russia is doubling the number of its strategic nuclear warheads on new missiles by deploying multiple reentry vehicles that have put Moscow over the limit set by the New START arms treaty, according to Pentagon officials.

A recent intelligence assessment of the Russian strategic warhead buildup shows that the increase is the result of the addition of multiple, independently targetable reentry vehicles, or MIRVs, on recently deployed road-mobile SS-27 and submarine-launched SS-N-32 missiles, said officials familiar with reports of the buildup.

“The Russians are doubling their warhead output,” said one official. “They will be exceeding the New START [arms treaty] levels because of MIRVing these new systems.”

The 2010 treaty requires the United States and Russia to reduce deployed warheads to 1,550 warheads by February 2018.

The United States has cut its warhead stockpiles significantly in recent years. Moscow, however, has increased its numbers of deployed warheads and new weapons.

The State Department revealed in January that Russia currently has exceeded the New START warhead limit by 98 warheads, deploying a total number of 1,648 warheads. The U.S. level currently is below the treaty level at 1,538 warheads.

Officials said that in addition to adding warheads to the new missiles, Russian officials have sought to prevent U.S. weapons inspectors from checking warheads as part of the 2010 treaty.

The State Department, however, said it can inspect the new MIRVed missiles.

Disclosure of the doubling of Moscow’s warhead force comes as world leaders gather in Washington this week to discus nuclear security—but without Russian President Vladimir Putin, who skipped the conclave in an apparent snub of the United States.

The Nuclear Security Summit is the latest meeting of world leaders seeking to pursue President Obama’s 2009 declaration of a world without nuclear arms.

Russia, however, is embarked on a major strategic nuclear forces build-up under Putin. Moscow is building new road-mobile, rail-mobile, and silo-based intercontinental-range missiles, along with new submarines equipped with modernized missiles. A new long-range bomber is also being built.

SS-N 30

SS-N 30

“Russia’s modernization program and their nuclear deterrent force is of concern,” Adm. Cecil Haney, commander of the U.S. Strategic Command, which is in charge of nuclear forces, told Congress March 10.

“When you look at what they’ve been modernizing, it didn’t just start,” Haney said. “They’ve been doing this quite frankly for some time with a lot of crescendo of activity over the last decade and a half.”

By contrast, the Pentagon is scrambling to find funds to pay for modernizing aging U.S. nuclear forces after seven years of sharp defense spending cuts under Obama.

Earlier this month, Gen. Joseph Dunford, chairman of the Joint Chiefs of Staff, told Congress that Russia continues to pose the greatest threat to the United States.

“The one that has the greatest capability and poses the greatest threat to the United States is Russia because of its capabilities—its nuclear capability, its cyber capability, and clearly because of some of the things we have seen in its leadership behavior over the last couple of years,” Dunford said.

In addition to a large-scale nuclear buildup, Russia has upgraded its nuclear doctrine and its leaders and officials have issued numerous threats to use nuclear arms against the United States in recent months, compounding fears of a renewed Russian threat.

Blake Narendra, spokesman for the State Department’s arms control, verification, and compliance bureau, said the Russian warhead build-up is the result of normal fluctuations due to modernization prior to the compliance deadline.

“The Treaty has no interim limits,” Narendra told the Free Beacon. “We fully expect Russia to meet the New START treaty central limits in accordance with the stipulated timeline of February 2018. The treaty provides that by that date both sides must have no more than 700 deployed treaty-limited delivery vehicles and 1,550 deployed warheads.”

Both the United States and Russia continue to implement the treaty in “a business-like manner,” he added.

Mark Schneider, a former Pentagon official involved in strategic nuclear forces, however, said he has warned for years that Russia is not reducing its nuclear forces under the treaty.

Since the New START arms accord, Moscow has eliminated small numbers of older SS-25 road-mobile missiles. But the missiles were replaced with new multiple-warhead SS-27s.

SS-27 Mod 2

SS-27 Mod 2

“The Russians have not claimed to have made any reductions for five years,” Schneider said

Additionally, Russian officials deceptively sought to make it appear their nuclear forces have been reduced during a recent nuclear review conference.

“If they could have claimed to have made any reductions under New START counting rules they would have done it there,” Schneider said.

The Obama administration also has been deceptive about the benefits of New START.

“The administration public affairs talking points on New START reductions border on outright lies,” Schneider said.

“The only reductions that have been made since New START entry into force have been by the United States,” he said. “Instead, Russia has moved from below the New START limits to above the New START limits in deployed warheads and deployed delivery vehicles.”

Deployment of new multiple-warhead SS-27s and SS-N-32s are pushing up the Russian warhead numbers. Published Russian reports have stated the missiles will be armed with 10 warheads each.

Former Defense Secretary William Perry said Thursday that New START was “very helpful” in promoting strategic stability but that recent trends in nuclear weapons are “very, very bad.”

“When President Obama made his speech in Prague, I thought we were really set for major progress in this field [disarmament],” Perry said in remarks at the Atlantic Council.

However, Russian “hostility” to the United States ended the progress. “Everything came to a grinding halt and we’re moving in reverse,” Perry said.

Other nuclear powers that are expanding their arsenals include China and Pakistan, Perry said.

Perry urged further engagement with Russia on nuclear weapons. “We do have a common interest in preventing a nuclear catastrophe,” he said.

Perry is advocating that the United States unilaterally eliminate all its land-based missiles and rely instead on nuclear missile submarines and bombers for deterrence.

However, he said his advocacy of the policy “may be pursuing a mission impossible.”

“I highly doubt the Russians would follow suit” by eliminating their land-based missiles, the former secretary said.

Additionally, Moscow is building a new heavy ICBM called Sarmat, code-named SS-X-30 by the Pentagon, that will be equipped with between 10 and 15 warheads per missile. And a new rail-based ICBM is being developed that will also carry multiple warheads.

Another long-range missile, called the SS-X-31, is under development and will carry up to 12 warheads.

Schneider, the former Pentagon official, said senior Russian arms officials have been quoted in press reports discussing Moscow’s withdrawal from the New START arms accord. If that takes place, Russia will have had six and a half years to prepare to violate the treaty limits, at the same time the United States will have reduced its forces to treaty limits.

“Can they comply with New START? Yes. They can download their missile warheads and do a small number to delivery systems reductions,” Schneider said. “Will they? I doubt it. If they don’t start to do something very soon they are likely to pull the plug on the treaty. I don’t see them uploading the way they have, only to download in the next two years.”

The White House said Moscow’s failure to take part in the nuclear summit was a sign of self-isolation based on the West’s sanctions aimed at punishing Russia for the military takeover of Ukraine’s Crimea.

A Russian official said the snub by Putin was directed at Obama.

“This summit is particularly important for the USA and for Obama—this is probably why Moscow has decided to go for this gesture and show its outrage with the West’s policy in this manner,” Alexei Arbatov, director of the Center for International Security at the Russian Academy of Sciences, told the business newspaper Vedomosti.

A Russian Foreign Ministry official, Mikhail Ulyanov, told RIA Novosti that the summit was not needed.

“There is no need for it, to be honest,” he said, adding that nuclear security talks should be the work of nuclear physicists, intelligence services, and engineers.

“The political agenda of the summits has long been exhausted,” Ulyanov said.

 

Cyber Intrusions, National Security Threat to Visa System

Primer: Listing a few demonstrating how vulnerable all segments of government, personal databases and corporations have forced lower standards of national security protections. Now with the threat to the State Department U.S. Visa system, terrorists and spies may exploit software security gaps. Anyone fixing this anywhere?

Cyber attack on Office of Personnel Management

Cyber attack of Obamacare

Cyber attack on hospital systems

Cyber attack on law firms

EXCLUSIVE: Security Gaps Found in Massive Visa Database

ABCNews: Cyber-defense experts found security gaps in a State Department system that could have allowed hackers to doctor visa applications or pilfer sensitive data from the half-billion records on file, according to several sources familiar with the matter –- though defenders of the agency downplayed the threat and said the vulnerabilities would be difficult to exploit.

Briefed to high-level officials across government, the discovery that visa-related records were potentially vulnerable to illicit changes sparked concern because foreign nations are relentlessly looking for ways to plant spies inside the United States, and terrorist groups like ISIS have expressed their desire to exploit the U.S. visa system, sources added.

“We are, and have been, working continuously … to detect and close any possible vulnerability,” State Department spokesman John Kirby said in a statement to ABC News.

After commissioning an internal review of its cyber-defenses several months ago, the State Department learned its Consular Consolidated Database –- the government’s so-called “backbone” for vetting travelers to and from the United States –- was at risk of being compromised, though no breach had been detected, according to sources in the State Department, on Capitol Hill and elsewhere.

As one of the world’s largest biometric databases –- covering almost anyone who has applied for a U.S. passport or visa in the past two decades -– the “CCD” holds such personal information as applicants’ photographs, fingerprints, Social Security or other identification numbers and even children’s schools.

Those records could be a treasure trove for criminals looking to steal victims’ identities or access private accounts. But “more dire” and “grave,” according to several sources, was the prospect of adversaries potentially altering records that help determine whether a visa or passport application is approved.

“Every visa decision we make is a national security decision,” a top State Department official, Michele Thoren Bond, told a recent House panel.

Last year alone, the State Department received -– and denied –- visa applications from more than 2,200 people with a “suspected connection to terrorism,” a senior Homeland Security Investigations official, Lev Kubiak, told lawmakers last month.

One official associated with State Department efforts to address the vulnerabilities said a “coordinated mitigation plan” has already “remediated” the visa-related gaps, and further steps continue with “appropriate [speed] and precision.”

“[We] view this issue in the lowest threat category,” the official said, noting that any online system suffers from vulnerabilities.

But speaking on the condition of anonymity, some government sources with insight into the matter were skeptical that CCD’s security gaps have actually been resolved.

“Vulnerabilities have not all been fixed,” and “there is no defined timeline for closing [them] out,” according to a congressional source informed of the matter.

“I know the vulnerabilities discovered deserve a pretty darn quick [remedy],” but it took senior State Department officials months to start addressing the key issues, warned another concerned government source.

Despite repeated requests for official responses by ABC News, Kirby and others were unwilling to say whether the vulnerabilities have been resolved or offer any further information about where efforts to patch them now stand.

PHOTO: U.S. Customs and Border Protection test new biometric technologies with face and iris cameras at the Otay Mesa border pedestrian crossing in San Diego, Calif. on Dec. 10, 2015.Richard Eaton/Demotix/Corbis
U.S. Customs and Border Protection test new biometric technologies with face and iris cameras at the Otay Mesa border pedestrian crossing in San Diego, Calif. on Dec. 10, 2015.more +

Nevertheless, many State Department officials questioned whether terrorists or other adversaries would have the capabilities to access and successfully exploit CCD data — even if the security gaps were still open.

CCD allows authorized users to submit notes and recommendations directly into applicants’ files. But to alter visa applications or other visa-related information, hackers would have to obtain “the right level of permissions” within the system -– no easy task, according to State Department officials.

There is also continuous oversight of the database and a series of other “fail-safes” built into the process, including rigorous in-person interviews and additional background checks, the officials said.

Kirby, the spokesman, described any recent security-related findings as a product of his department’s “routine monitoring and testing of systems” to “identify and remediate vulnerabilities before they can be exploited.”

PHOTO: The U.S. Department of State non-immigrant visa application website is seen in a screen grab made on March 30, 2016.ceac.state.gov
The U.S. Department of State non-immigrant visa application website is seen in a screen grab made on March 30, 2016.

State Department documents describe CCD as an “unclassified but sensitive system.” Connected to other federal agencies like the FBI, Department of Homeland Security and Defense Department, the database contains more than 290 million passport-related records, 184 million visa records and 25 million records on U.S. citizens overseas.

Without getting into specifics, sources said the vulnerabilities identified several months ago stem from aging “legacy” computer systems that comprise CCD.

“Because of the CCD’s importance to national security, ensuring its data integrity, availability, and confidentiality is vital,” the State Department’s inspector general warned in 2011.

The database’s software and infrastructure will be overhauled in the years ahead, according to the State Department.

Stalking Iran and bin Ladin with a Drone

We don’t have an intelligence problem, we don’t have a signit problem, not even a humint problem, we have a lack of will which translates to a lack of strategy and a mission objective. We did get Usama bin Ladin but what was the real gain?

At least for we weary Americans, we can take some confidence that we do have technology.

The Drone that Stalked Bin Laden

AirandSpace: In 2009, after two weeks of being embedded as an independent journalist with a small team of U.S. Marines in Afghanistan, I ended up at Combat Outpost Monti, a 14-acre camp of tents, plywood huts, a few concrete bunkers and makeshift guard towers, and a helicopter landing area, all ringed by collapsible barriers. At the outpost, one of hundreds built in Afghanistan during the 13 years of NATO combat operations, the Marines were training and fighting alongside Afghan National Army soldiers. COP Monti was less than 10 miles from the Pakistan border, near the Federally Administered Tribal Areas.

RQ-170

My time with the team was just about up when they were ordered to move up the Kunar River valley on a large combat operation. I stayed behind with the Afghan soldiers and, before I managed to find a ride out, weathered a mortar and rocket attack from combatants who had undoubtedly planned the attack and stockpiled the weapons for it at a site across the border, in Pakistan. Even if the Marines had still been there, they could not have pursued the attackers. Al-Qaeda, Taliban, and other belligerents have hidden from the U.S. military in Pakistan’s tribal areas, with varying success, since Americans entered Afghanistan in 2001.

“Everybody knows that the Taliban and other groups train, raise money, plan operations, and even recruit in the tribal areas of Pakistan,” says a retired U.S. infantry officer who served two tours in Afghanistan as well as a rotation in Iraq. (All of the sources quoted in this article spoke to me on the condition that I would not name them because they do not have permission to speak on the record.) “The insurgent leadership move men and materials into Afghanistan and attack American and coalition forces and assets.” Then, he says, they scurry back to Pakistan, where U.S. forces can’t follow.

At least, not on the ground.

Since 2004, the United States has followed insurgents into Pakistan, and has spied on and sometimes killed them there. The CIA flies Predator and Reaper unpiloted aerial vehicles over the tribal districts, often with the approval of Pakistani leaders, who have enemies of their own among the militants inhabiting the country’s northwest. Some missions though are conducted without approval from Pakistan’s authorities. For those missions, the CIA needed a different aircraft.

In late 2007, reporters and observers at Afghanistan’s Kandahar Airfield discovered that a new spy had joined the team. Grainy photographs emerged of what appeared to be an unmanned flying wing. Aviation reporter Bill Sweetman (who writes a column for this magazine) nicknamed the aircraft “the Beast of Kandahar,” and the name has stuck, though the airplane doesn’t have the ferocity or power of a beast. It is an unarmed, stealthy observer designed to glide silently over its targets and transmit photos, video, and other intelligence to a worldwide network of users. The Air Force acknowledged it in 2009 and revealed its official name: the Lockheed Martin RQ-170 Sentinel.

The RQ-170 is operated by the U.S. Air Force 432nd Wing, which also operates Predators and Reapers. The 432nd, stationed at Creech Air Force Base, northwest of Las Vegas, declined to speak about the Sentinel, and a spokesperson for Lockheed Martin would state only that it is a “low-observable Unmanned Aerial System” and that its “primary mission is Intelligence, Surveillance and Reconnaissance.”

Trying to put together a picture of how the RQ-170 might have been used in the mysterious Afghanistan-Pakistan border region, I spoke to a U.S. military pilot who had flown in the 2003 Iraq war and who had later served in a senior position in an unmanned aerial vehicle unit. “At the start of [Operation Iraqi Freedom], one of our missions was to fly right up against the Iranian border, with our targeting pods slewed to the side to scan for border activity,” the pilot said. “We were right on the border, but we couldn’t cross it. Their radar had us. We were doing ISR work, trying to figure out just what, if any, activity was taking place on and as far inside their border as possible.” One type of activity the U.S. military was trying to follow and disrupt was the Iranian manufacture of devices called EFPs—explosively formed penetrators—and their distribution to enemies in Iraq and Afghanistan.

Historically, insurgencies have required bases of support outside the contested country. “When discussing the RQ-170,” the pilot continued, “you have to understand that both Pakistan and Iran are outside of the ISR grasp of a targeting pod on an aircraft flying on the border, or of satellites. Sheer distance degrades certain aspects of a satellite’s ability to observe.”

The United States needed an intelligence-gathering platform that could avoid detection by Iranian and Pakistani radars. A retired military aviator who held a senior position at Kandahar Airfield during Sentinel operations pointed out that the UAV’s size and shape give it a low radar cross-section—the measure of the amount of energy a target reflects toward the radar that illuminated it. “It’s a large airfoil, roughly 65 to 70 feet in length,” he said. “Being a main wing only, with no fuselage and tail surfaces, drastically reduces both its radar signature and aerodynamic drag.” The Sentinel has the stealthy form of the 172-foot-span B-2 bomber, but is less than half its size.

Because the Sentinel is manufactured by the company that brought us the F-22 stealth fighter and F-35 Joint Strike Fighter (and, before that, the F-117, SR-71, and U-2), we can assume that its skin uses radar-absorbent materials to further diminish radar return. Although its shape and materials keep it invisible to some radars, the aviator explained, others would be able to detect the aircraft but might not be able to track or target it.

At medium altitudes, the Sentinel’s light gray color enables it to blend in with the sky. It must also be quiet enough that it won’t be heard on the ground. An aviator who held a senior position at Kandahar Airfield during the Sentinel’s operation said its sound during takeoff wasn’t loud but distinctive—different from the propeller-driven UAVs and military jets that operated from the airfield.

Kandahar Airfield

An early image of the drone, at Kandahar Airfield before 2010. (Anonymous)

Engine noise or heat can never be eliminated but can be reduced. “[A stealth UAV] would use a high-efficiency turbofan engine, and its exhaust would be spread out as much as possible, masking both heat and noise,” the aviator said. A nozzle that spreads the exhaust eliminates concentrations of heat and helps mix hot exhaust with cooler ambient air.

An earlier, short-lived Lockheed Martin stealth UAV, the RQ-3 DarkStar, used a Williams-Rolls-Royce FJ44-1A turbofan, an engine favored for 1990s-era business jets, whose manufacturers claimed noise reductions. But those reductions were due partly to a change in the jets’ takeoff and landing profiles. Flight profile, according to an expert in unmanned aerial systems, is key to maintaining low observability. He explained that to fly low over a location of interest, an aircraft would most likely be put into a shallow descent, with its engine throttled back, so that it would essentially glide over the target. After one pass, “it will turn and gently increase power, but in a geometry such that nobody at or near the target could hear.” Once back at a higher altitude, the Sentinel would, if necessary, set up for another pass. This description suggests that maintaining continuous observation of a location would require two, possibly three, Sentinels flying overlapping patterns, not a sole craft orbiting.

**********

In December 2011, one or several of the Sentinel’s stealthy protections could have failed: An RQ-170 was taken prisoner in Iran. It had been on a reconnaissance mission and landed within the country, mainly intact, a few hundred miles from its home runway at Kandahar Airfield. The Iranians seized it, put it on display, and broadcast claims that they had spoofed its guidance system. Another possibility is that the UAV lost power or that its guidance system simply malfunctioned, an explanation that several Pentagon officials offered the press in the days after the incident.

“These systems have trip wires,” an aviator explained. “They’re meant to automatically return home, or at least to friendly airspace. But you have to consider: Was there a possibility of an oversight that the Iranians figured out they could exploit?” The guidance system, he noted, likely uses a combination of GPS and inertial navigation. With inertial navigation, highly sensitive accelerometers and gyros determine a craft’s route in three axes. Inertial systems cannot be fooled, though they can drift. GPS signals and guidance systems can be jammed or fooled; receivers can be sent signals making the onboard navigation system believe that the aircraft’s home airport is hundreds of miles from where the airport really is.

In 2008, at a Marine Aviation Weapons and Tactics training exercise outside Yuma, Arizona, a GPS guidance unit was accidentally spoofed, with a near-disastrous result. The unit was attached to a Containerized Delivery System, a pallet with stuff to resupply ground troops—food, ammunition, water—that had been released from a C-130 transport, and was tracking a GPS signal so it would arrive at a certain point on the ground. In the exercise with the C-130 were a number of airplanes and helicopters, many of them using electronic jamming equipment or testing electronic warfare systems. In the signal-rich environment, the CDS, instead of landing at its programmed landing point, was heading straight for the Chevy Suburban that was waiting to return the pallet to base. Seeing the CDS headed for him, the Suburban driver stepped on it, but he wasn’t fast enough; the cargo crashed into the back of the van. The driver was uninjured.

Reporters have surmised that the Sentinel was in Iran to gather information about Iranian progress in developing nuclear weapons. Satellites can detect nuclear detonations, but to passively sniff for isotopic and other signs of uranium enrichment, analysts would need a platform much closer to the ground. Although reporters have also speculated that the Sentinel, to keep from being heard, flies upwards of 50,000 feet, it probably flies much lower—to be closer to its targets of observation. “Most aircraft are inaudible above 8,000 feet,” says a Department of Defense UAV expert. He explains that if a sensor is operated at a high altitude, it needs to be much larger and heavier to obtain the same degree of accuracy as smaller, lighter ones operating at low altitudes.

He also used intelligence from the MC-12 Liberty, another King Air, this one stuffed with a more exotic sensor suite than the Predator or Guardrail has, including a “complete collection, processing, analysis and dissemination system,” according to its U.S. Air Force fact sheet. The Liberty is brought to bear when commanders want to know what’s going on inside a building, whether people are “manufacturing explosives, packaging opium, or something else,” the officer said. The MC-12 “can sniff things out based on their chemical or metallurgical signatures. They’re incredibly accurate.”

But they aren’t stealthy and can fly only in airspace where the enemy has no radar. So is the purpose of the RQ-170 to carry any combination of the instruments deployed on the Predator, Guardrail, and Liberty into places where those three aircraft can’t go? A former unmanned aircraft systems commander answered: “Yes, definitely.”

The expert pointed out the two bumps on the top of the craft: “Not one antenna but two, so it can be serving multiple, distinct tasks, simultaneously, for users all over the world.”

**********

When I left Combat Outpost Monti—on a blue and white Bell B412 helicopter flown not by the U.S. military but by a Canadian contracting company working for the military (with the call sign “Molson Air,” for the Canadian beer)—we flew for roughly 15 minutes, then landed in a field next to a compound outside a small village. I checked my GPS; we were idling about a half-mile from Pakistan. Two U.S. military personnel, wearing camouflage and helmets unfamiliar to me, climbed aboard the helicopter. We then continued the journey to Asadabad.

A model of the RQ-170, which Iran claimed to have reverse-engineered, on display in Tehran (The Office of the Supreme Leader, Iran)

After returning home, I got an inkling of what those guys in unfamiliar camouflage might have been doing there near the Pakistan border and how they may have used the RQ-170. I learned about counter-terrorism units in a program called Omega, which combined special forces with CIA teams for missions into Pakistan to conduct raids on Taliban and other insurgent and terrorist targets. Putting this information together with what my sources had described, I had little doubt that intelligence about those targets was gathered in part by Sentinels.

The joint CIA–special operations forces mission that would best show off the RQ-170’s surveillance capabilities was conducted years later, in support of the SEAL team who, on the night of May 1, 2011, flew into Pakistan on two modified Black Hawk helicopters, entered a compound in Abbottabad, and killed Osama bin Laden. U.S. government officials told Washington Post reporter Greg Miller that stealth drones had flown dozens of missions to monitor the Abbottabad compound.

My own experience in Afghanistan suggests other missions the RQ-170 might have flown. I often heard intelligence officers or patrol commanders request “a pattern of movement” or a “pattern of life” for targets and enemy forces. To provide that information, analysts would draw data from a number of types of surveillance and reconnaissance aircraft. Learning about the capabilities of these aircraft helped me understand the kind of surveillance the Sentinel might perform.

One of the most important reconnaissance aircraft collecting data for the coalitions in Iraq and Afghanistan is also one of the least known: the Northrop Grumman RC-12 Guardrail. “The Guardrail is probably the most boring-looking airplane in the Department of Defense, but in my opinion, it brings some of the most important capabilities to ground forces,” said the retired infantry officer. The RC-12 is a Hawker Beechcraft Super King Air sprouting antennas to collect signals intelligence. “Looks like a flying porcupine, with all the antennas dangling off it,” the officer said. He regularly requested the Guardrail’s listening capabilities to identify, locate, and track insurgents and to help develop ground operations. The Guardrail does not process the data it collects; instead, it transmits it via a secure satellite link to locations in the United States or, according to a U.S. Army fact sheet, in Germany or Korea, where the data is processed and the results beamed back to the aircraft, which transmits it to the commanders who requested it. It happens fast. Within a second, the system can identify an individual’s or a group’s precise location. It takes a little longer to record and analyze their transmissions.

“I’ve tasked all sorts of assets, manned and unmanned, to look at ground targets and areas of interest,” said the infantry officer. For imagery intelligence, he said, “we used Predator a lot.”

“The beauty of how intelligence gets disseminated with the systems we have in place is that you just request an intelligence product, and you get it based on classification level and need-to-know,” says the aviator who served in a senior position at Kandahar Airfield. “You don’t ask for a platform, just a product. Much of the time intelligence users won’t know they are seeing something that was sourced from a Sentinel.”

The Sentinel is one platform in a complex intelligence system that collects information from every U.S. military command around the world. Analysts at various centers process 20 terabytes of data, of all intelligence types, every day. “Once each type is processed into a product, then it gets fused together with other intelligence products to give a multidimensional picture,” the aviator says.

“Think of a compound, say in Abbottabad, Pakistan, one with some walls that imagery shows to be 16 feet high. Combine that knowledge with signals collections of those in and around the structure, learn the pattern of life, maybe pick up a tall guy walking around, and maybe do some sniffing for weapons in the compound, soak up computer noise that can be analyzed, and then put that together with some human intelligence gathered on the ground about who that tall guy is.” He laughs. “There you go.”

 

Operation Hemorrhage

It has been said often, either fight the enemy in a true war theater on the battlefield with real war tactics or fight them at home. Brussels and Paris and in the United States in Boston and San Bernardino to mention a few, the hybrid war gets real expensive. These costs are rarely measured or questioned. We are also not measuring the cost of freedoms are giving up. Add in the cost of the cyber war…..well….going back much earlier than 9-11-01 the costs cannot be calculated.

Operation Hemorrhage: The Terror Plans to Wreck the West’s Economy

DailyBeast: Every European who flies frequently knows the airport in Zaventem, has spent time in the ticketing area that was strewn with blood, limbs, broken glass, battered luggage and other wreckage.

It was another attack on aviation that pulled the United States into the conflict sometimes known as the “global war on terror” in the first place. Since then, airports and airplanes have remained a constant target for Islamic militants, with travelers being encumbered by new batches of security measures after each new attack or attempt.

After the ex-con Richard Reid managed to sneak a bomb aboard a transatlantic flight in December 2001, but failed to detonate the explosives, American passengers were forced to start removing their shoes on their way through security. After British authorities foiled a 2006 plot in which terrorists planned to bring liquid explosives hidden in sport drink bottles aboard multiple transatlantic flights, authorities strictly limited the quantity of liquids passengers were allowed to carry. When Umar Farouk Abdulmutallab snuck explosives hidden in his underwear onto a flight on Christmas Day 2009, he ushered in full-body scans and intrusive pat-downs.

Those are the misses. There have been hits, too. In August 2004, two female Chechen suicide bombers, so-called “black widows,” destroyed two domestic Russian flights. In January 2011, a suicide bomber struck Moscow’s Domodedovo airport in an attack that looked almost identical to the one that rocked the airport in Brussels: the bomber struck just outside the security cordon, where the airport is transformed from a “soft” target to a “hard” one. Just months ago, the self-proclaimed Islamic State (ISIS)—the perpetrator of the Brussels attacks—destroyed a Russian passenger jet flying out of Egypt’s Sinai, killing 224 people.

The targeting of airports and airplanes has been so frequent that in lighter times—back when the terrorists seemed so much worse at what they do—some pundits openly mocked their continuing return to airplanes and airports. In one representative discussion from early 2010, a well-known commentator described jihadists as having a “sort of schoolboy fixation” with aviation.

But the reason for this targeting, of course, is neither mysterious nor quixotic, and it’s one the jihadists have explained for themselves. Following the November Paris attacks, ISIS released an infographic boasting that its slaughter on the streets of Paris would force Belgium “to strengthen its security measures … which will cost them tens of millions of dollars.” Moreover, the group claimed, “the intensified security measures and the general state of unease will cost Europe in general and France in specific tends of billions of dollars due to the resulting decrease in tourism, delayed flights, and restrictions on freedom of movement and travel between European countries.”

And that was before the group successfully attacked the Brussels airport, despite those costly new security measures.

Even before 9/11, jihadists saw bleeding the American economy as the surest path to defeating their “far enemy.” When Osama bin Laden declared war against the “Jews and crusaders” in 1996, he emphasized that jihadist strikes should be coupled with an economic boycott by Saudi women. Otherwise, the Muslims would be sending their enemy money, “which is the foundation of wars and armies.”

Indeed, when bin Laden first had the opportunity to publicly explain what the 9/11 attacks had accomplished, in an October 2001 interview with Al Jazeera journalist Taysir Allouni, he emphasized the costs that the attacks imposed on the United States. “According to their own admissions, the share of the losses on the Wall Street market reached 16 percent,” he said. “The gross amount that is traded in that market reaches $4 trillion. So if we multiply 16 percent with $4 trillion to find out the loss that affected the stocks, it reaches $640 billion of losses.” He told Allouni that the economic effect was even greater due to building and construction losses and missed work, so that the damage inflicted was “no less than $1 trillion by the lowest estimate.”

In his October 2004 address to the American people, dramatically delivered just before that year’s elections, bin Laden noted that the 9/11 attacks cost Al Qaeda only a fraction of the damage inflicted upon the United States. “Al Qaeda spent $500,000 on the event,” he said, “while America in the incident and its aftermath lost—according to the lowest estimates—more than $500 billion, meaning that every dollar of Al Qaeda defeated a million dollars.”

Al Qaeda fit the wars the United States had become embroiled in after 9/11 into its economic schema. In that same video, bin Laden explained how his movement sought to suck the United States and its allies into draining wars in the Muslim world. The mujahedin “bled Russia for ten years, until it went bankrupt,” bin Laden said, and they would now do the same to the United States.

Just prior to 2011, there was a brief period when jihadism appeared to be in decline. Al Qaeda in Iraq, the group that later became ISIS, had all but met with defeat at the hands of the United States and local Sunni uprisings. Successful attacks were few and far between.

People gather at a memorial for victims of attacks in Brussels on Wednesday, March 23, 2016. Belgian authorities were searching Wednesday for a top suspect in the country's deadliest attacks in decades, as the European Union's capital awoke under guard and with limited public transport after scores were killed and injured in bombings on the Brussels airport and a subway station. (AP Photo/Valentin Bianchi)

Valentin Bianchi/AP

Representative of those dark times for jihadists, Al Qaeda in the Arabian Peninsula released a special issue of its online magazine Inspire celebrating a terrorist attack that claimed no victims. In October 2010, jihadists were able to sneak bombs hidden in printer cartridges onto two cargo planes. Due to strong intelligence efforts, authorities disabled both bombs before they were set to explode, but the group drew satisfaction from merely getting them aboard the planes.

“Two Nokia phones, $150 each, two HP printers, $300 each, plus shipping, transportation and other miscellaneous expenses add up to a total bill of $4,200. That is all what Operation Hemorrhage cost us,” the lead article in that special issue of Inspire boasted. “On the other hand this supposedly ‘foiled plot’, as some of our enemies would like to call [it], will without a doubt cost America and other Western countries billions of dollars in new security measures.” The magazine warned that future attacks will be “smaller, but more frequent”—an approach that “some may refer to as the strategy of a thousand cuts.”

The radical cleric Anwar Al Awlaki, writing in Inspire, explained the dilemma that he saw gripping Al Qaeda’s foes. “You either spend billions of dollars to inspect each and every package in the world,” he wrote, “or you do nothing and we keep trying again.”

Even in those days when the terrorist threat loomed so much smaller, the point was not a bad one. Security is expensive, and driving up costs is one way jihadists aim to wear down Western economies.

Unfortunately, Al Qaeda’s envisioned world of smaller but more frequent attacks proved unnecessary for the jihadists. Less than two months after the special issue of Inspire appeared that celebrated an at best half-successful attack, the revolutionary events that we then knew as the “Arab Spring” sent shockwaves through the Middle East and North Africa.

This instability would help jihadism reach the current heights to which it has ascended, where the attacks are not only more frequent but larger. Unfortunately, the United States—blinded at the time by the misguided belief that revolutions in the Arab world would devastate the jihadist movement—pursued policies that hastened the region’s instability. The damages wrought by these policies are still not fully appreciated.

The silver lining to the jihadist economic strategy is that they, too, are economically vulnerable. The damage inflicted on ISIS’s “state” by coalition bombings and other pressures forced the group to slice its fighters’ salaries at the beginning of this year. But as Al Qaeda watches its flashier jihadist rival carry out gruesome attacks on Western targets and get bombarded in return, it discerns further proof of the wisdom of its strategy of attrition.

As it watches these two sets of foes exhaust each other, Al Qaeda believes that its comparative patience will pay off. It believes that its own time will come.

 

U.S. Govt Cyber Attacks in 2015 Spike

In his annual budget request, President Barack Obama asked for $19bn for cyber security funding, $5bn more than last year.

Last year, a study from Juniper Research, ‘The Future of Cybercrime & Security: Financial and Corporate Threats and Mitigation’, estimated that by 2019 the cost of data breaches will reach $2.1 trillion – four times the total expected for 2015. The average cost of a data breach is expected to exceed $150 million by 2020 as more business infrastructure is connected.

Number of U.S. government ‘cyber incidents’ jumps in 2015

Reuters: The U.S. government was hit by more than 77,000 “cyber incidents” like data thefts or other security breaches in fiscal year 2015, a 10 percent increase over the previous year, according to a White House audit.

Part of the uptick stems from federal agencies improving their ability to identify and detect incidents, the annual performance review from the Office and Management and Budget said.

The report, released on Friday, defines cyber incidents broadly as “a violation or imminent threat of violation of computer security policies, acceptable use policies, or standard computer security practices.” Only a small number of the incidents would be considered as significant data breaches.

National security and intelligence officials have long warned that cyber attacks are among the most serious threats facing the United States. President Barack Obama asked Congress last month for $19 billion for cyber security funding across the government in his annual budget request, an increase of $5 billion over the previous year.

The government’s Office of Personnel Management was victim of a massive hack that began in 2014 and was detected last year. Some 22 million current and former federal employees and contractors in addition to family members had their Social Security numbers, birthdays, addresses and other personal data pilfered in the breach.

That event prompted the government to launch a 30-day “cyber security sprint” to boost cyber security within each federal agency by encouraging adoption of multiple-factor authentication and addressing other vulnerabilities.

“Despite unprecedented improvements in securing federal information resources … malicious actors continue to gain unauthorized access to, and compromise, federal networks, information systems, and data,” the report said.

***** Depth of hacking illustration:

U.S. Charges 3 As It Chases Syrian Electronic Army — $100,000 Bounties On Hackers’ Heads

Firas Dardar Syrian Electronic Army FBI Most Wanted

Firas Dardar, now on the FBI’s Cyber Most Wanted list for his part in the Syrian Electronic Army. He is also accused of extorting targets.

Forbes: Syrian Electronic Army has caused all sorts of trouble since its emergence at the turn of this decade (including an attack on FORBES, amongst many other major publications). Having largely operated under the radar, the U.S. today filed official charges against three individuals it believes were key in perpetrating SEA’s attacks. Two of the three men – Ahmad Umar Agha (commonly known as Th3 Pr0) and Firas Dardar (also known as The Shadow) – have also been placed on the FBI’s Cyber Most Wanted list with $100,000 rewards on offer for anyone who helps catch them. The third suspect is German-based Peter Romar.

The three have been charged with a range of offences, from hacking, to engaging in a hoax regarding a terrorist attack, to attempting to cause a mutiny within the U.S. armed forces. Throughout the last five years, the SEA were proficient in tricking organization – often media bodies such as the BBC, the Guardian, CNN and FORBES – into handing over login details to Facebook FB +0.38% and Twitter TWTR -0.18% accounts. They would then use that access to send out messages in support of Bashar al-Assad, who remains the Syrian president, despite the chaos of civil war that has engulfed the country.

Its most effective attack came after a compromise of the Associated Press Twitter account. After a tweet that claimed a bomb had exploded at the White House and injured President Obama, $90 billion was wiped off the U.S. stock market. In other successful campaign, the hackers defaced a recruiting website for the U.S. Marine Corps, using the site to urge marines to “refuse [their] orders.”

Ahmed Al charged Syrian Electronic Army hacker

Accused Syrian Electronic Army hacker Ahmad Umar Agha.

According to one of two complaints released today, other victims included Harvard University, the Washington Post, the White House, Reuters, Human Rights Watch, NPR, CNN, The Onion, NBC Universal, USA Today, the New York Post, NASA (which assisted on the investigation), and Microsoft. FORBES was not named as one of the victims of the trio’s attacks.

All three alleged SEA operatives were using Google Gmail and Facebook to coordinate and pass around stolen data. U.S. law enforcement were able to track their activity after acquiring court orders to search their online accounts.

Nation state hackers demanding ransom

According to the Department of Justice, Dardar and Romar (also known as Pierre Romar) have also been accused of typical cybercrime, hacking into target’s machines and demanding a ransom be paid, threatening to delete data or sell personal information. Dardar was thought to be operating out of Homs, Syria, Romar from Waltershausen, Germany. The ransoms would then be handed to SEA members in Syria, a complaint read. Dardar demanded in total more than $500,000 from 14 victims, though the filings did not specify how much they actually received.

“While some of the activity sought to harm the economic and national security of the United States in the name of Syria, these detailed allegations reveal that the members also used extortion to try to line their own pockets at the expense of law-abiding people all over the world,” said Assistant Attorney General John Carlin. “The allegations in the complaint demonstrate that the line between ordinary criminal hackers and potential national security threats is increasingly blurry.”

If the complaints released by the U.S. are accurate, Dardar and Romar are two of a handful of hackers known to be working for their government and carrying out extortion. Suspicions of governments using ransomware – malware that locks users’ files by encrypting them, only decrypting when the victim hands the hackers money – have proven unfounded. But researchers from security firm FireEye told FORBES they have seen a handful of examples where nation states have perpetrated extortion campaigns like the SEA suspects. But, the researchers said, it’s unlikely they ever want funds.

“We don’t believe that their intention was to get a ransom,” said Charles Carmakal, managing director of Mandiant, a FireEye-owned firm, speaking with FORBES last week. “I can say we’ve seen it but our case load isn’t that high.”

The hack of Sony Pictures, which the U.S. accused the North Korean government of sponsoring, included such a ransom demand once hackers had broken in. Sony didn’t pay and the hackers wiped the film studio’s machines before publishing vast tranches of company emails and files for all and sundry to pick through.