FBI Official Warning, Hackers Attacking Corporations

The FBI Most Wanted hackers. Law enforcement is willing to pay $4.2 million to get them

Cybercrime represents one of the most serious threat to Governments and private industries worldwide, law enforcement hunt down this emerging class of criminals who are able to influence the social context like drug traffickers and terrorists.

The FBI has published the lists of most wanted cyber criminals and the rewards for their capture. According to FBI data these individuals are responsible for hundreds of millions of dollars in losses, for this reason, the Feds are willing to pay a combined $4.2 million for information leading to their arrest.

U.S. Retailer giants Target and Home Depot are just a couple of samples of companies that suffered major cyber attacks, we cannot avoid mentioning other illustrious victims of the cybercrime like the Sony Pictures and government agencies, including the Office of Personnel Management.

Recently Trustwave firm published a report related to 2014 incidents that revealed cyber criminal activities are paying with 1,425% return on investment. More details here.

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But the warning bells are sounding from the FBI

FBI Warns U.S. Companies to Be Ready for Chinese Hack Attacks

by Shane Harris:
In a message obtained by The Daily Beast, the bureau strongly implies Beijing was behind the massive hack that exposed U.S. government employees’ secrets—and U.S. companies are next.
Within the U.S. government, there’s a debate about who’s responsible for the massive hack of federal employees’ darkest secrets. The FBI on Wednesday weighed in with its own answer, strongly implying that it was the work of China.

The FBI is warning U.S. companies to be on the lookout for a malicious computer program that has been linked to the hack of the Office of Personnel Management. Security experts say the malware is known to be used by hackers in China, including those believed to be behind the OPM breach.

The FBI warning, which was sent to companies Wednesday, includes so-called hash values for the malware, called Sakula, that can be used to search a company’s systems to see if they’ve been affected.

The warning, known as an FBI Liaison Alert System, or FLASH, contains technical details of the malware and describes how it works. While the message doesn’t mention the OPM hack, the Sakula malware is used by Chinese hacker groups, according to security experts. And the FBI message is identical to one the bureau sent companies on June 5, a day after the Obama administration said the OPM had been hacked, exposing millions of government employees’ personal information. Among the recipients of both alerts are government contractors working on sensitive and classified projects.

Director of National Intelligence James Clapper has publicly called China the “leading suspect” in the OPM hack, but he hasn’t offered any evidence publicly to substantiate those claims. Devin Nunes, the chairman of the House Intelligence Committee, has said the jury is still out on whether China is to blame.

In an email obtained by The Daily Beast, the FBI said it was sending the alert again because of concerns that not all companies had received it the first time. Apparently, some of their email filters weren’t configured to let the FBI message through.

The FLASH alert says the bureau has identified “cyber actors who have compromised and stolen sensitive business information and personally identifiable information.”
The FLASH alert says the bureau has identified “cyber actors who have compromised and stolen sensitive business information and personally identifiable information,” which includes names, dates of birth, and Social Security Numbers. The message notes that this information was a “priority target” of the hackers and that such data are frequently used for financial fraud. But “the FBI is not aware of such activity by these groups,” the message says.

Experts believe the data stolen from OPM is being compiled for espionage purposes, including targeting U.S. government employees and contractors who have access to classified information and could be blackmailed or recruited as spies.

The message also described the malware as being designed to copy information and send it to another computer, presumably being operated by a hacker. The Sakula malware has been linked to a breach of patient records at the health insurer Anthem. Some experts now believe the hackers who pulled off that breach are the same ones who penetrated the OPM’s computers.

The alert comes as Obama administration officials have been briefing members of Congress and their staff about the extent of the OPM hack. The Daily Beast reported earlier that the hackers had compromised so-called adjudication information, which includes revealing details, gleaned from background investigations, about government employees’ sex lives, their history of drug and alcohol use, and their financial problems. The OPM hack has also raised questions about whether the personnel records of intelligence agency employees, including covert operatives, were compromised.

 

Snapshot of the Threats Against America

Today on CBS: “Thousands of law enforcement officers in New York will spend July 4 trying to prevent a terror attack that could come from supporters of the Islamic State of Iraq and Syria (ISIS). NYPD Deputy Commissioner of Intelligence and Counterterrorism John Miller called it one of their biggest operations ever.

“I think if you look at history, they’re looking at big events, they’re looking at symbolic dates. They’re looking at military, police, intelligence,” Miller said Thursday on “CBS This Morning.”

CBS News senior security contributor Mike Morell said Monday the FBI and Department of Homeland Security’s warning of a potential July 4 attack is “nothing routine.” ”

This document is produced by the Majority Staff of the House Homeland Security Committee.

TOP TAKEAWAYS

ISIS is dead set on attacking America and its allies. With the recent attacks in France and against tourists in Tunisia, ISIS has now been linked to 47 terrorist plots or attacks against the West, including 11 inside the United States. The rate of ISIS terror plots against the West has more than doubled in 2015 (19 plots in all of 2014; 28 already this year).

The number of post-9/11 jihadi terror plots in the United States has surged. There have been more U.S.-based terror plots or attacks in the first half of 2015 (a total of 24) than in any full year since 9/11. Overall, homegrown jihadi plots have tripled in just the past five years (from 36 plots/attacks in June 2010 to 118 today).

Islamist terrorists are getting better at recruiting Americans. Ten U.S.-based ISIS supporters have been arrested in the last month, bringing the total to 55 ISIS-inspired individuals arrested and charged in America (not including two who have been charged in absentia). ISIS followers have now been arrested in at least 19 states.

Foreign fighters continue to pour into terrorist safe havens overseas—and represent a threat to the United States and its allies. More than 4,000 Westerners and 200+ Americans have traveled or attempted to travel to join Islamist terrorists in Syria, figures which have nearly doubled in the past year. Around 40 have already returned to the United States, according to authorities, one of which was arrested plotting a terrorist attack in Ohio.

Islamist terror safe havens and franchises are proliferating rapidly, giving groups like ISIS and al Qaeda a base for operation and further expansion. Libya in particular has deteriorated quickly becoming a training ground for terror recruits. ISIS now has a direct presence, affiliates, or groups pledging support in at least 18 countries or territories, including Afghanistan, Algeria, Egypt, India, Indonesia, Iraq, Jordan, Libya, Lebanon, Nigeria, the Palestinian territories (Gaza), Pakistan, Philippines, Russia (North Caucasus region), Sudan, Syria, Tunisia, and Yemen.

TERROR PLOTS AGAINST THE WEST

ISIS is not a regional phenomenon but a global menace whose targeting against the West has surged in 2015.

By the numbers

Since early 2014, there have been 47 planned or executed ISIS-linked terror plots against Western targets, including 11 inside in the United States.1

There have been more ISIS-linked plots against Western targets in the first half of this year (28) than in all of 2014 (19).2

Recent Developments

June 27: ISIS recruiter and computer hacker Junaid Hussain attempted to enlist a trainee to target the Armed Forces Day parade in London, England, in a bombing attack. Hussain is suspected to have been in social media contact with at least one of the perpetrators of the May 2015 attack on a Muhammad cartoon contest in Garland, Texas.

June 26: Yassine Salhi, 35, decapitated his employer and attempted to blow up an American chemical company’s factory near Lyon, France, before being subdued. He had previously been under French authorities’ scrutiny over his jihadist ties. Salhi maintained regular contact with and sent pictures of the decapitated body to a Syria-based French citizen reportedly fighting for and in contact with ISIS leaders.

June 26: Seifeddine Rezgui, 23, attacked a public beach and luxury resort complex frequented by Western tourists in Sousse, Tunisia, killing 39 individuals. He was eventually shot by security 1 forces. ISIS claimed responsibility for the attack. Tunisian officials believe Rezgui attended the same terror training camp in Libya as the attackers who targeted the National Bardo Museum in Tunis in March. This figure is based on open-source data compiled by the Majority Staff of the Homeland Security Committee.

2 This figure is based on open-source data compiled by the Majority Staff of the Homeland Security Committee.

June 23: ISIS spokesman Abu Muhammad al Adnani issued an aggressive call urging followers around the world to launch terror attacks and turn the month of Ramadan (June 17 – July 17) into a “calamity for the infidels…Shi’ites and apostate Muslims.” Adnani proclaimed that martyrdom during Ramadan would bring “tenfold” rewards to jihadists.

June 19: Justin Nolan, a 19-year-old from Morganton, North Carolina, was arrested for plotting assassinations and a large terror attack on behalf of ISIS using a semi-automatic AR-15 rifle. Nolan expressed his support for ISIS, acquired a gun silencer, desired to kill “as many as 1,000 people,” and planned to send footage of an attack to ISIS.

June 17: Fareed Mumuni was arrested after attempting to stab FBI agents searching his home in connection with an investigation stemming from the arrest of Munther Saleh. Authorities believe Mumuni conspired with Saleh to construct a pressure-cooker bomb, similar to those used in the Boston Marathon bombing in 2013. Mumuni told federal investigators that he pledged allegiance to ISIS, planned to travel to ISIS-controlled territories to join the group, and intended to attack law enforcement officers if his efforts to join ISIS failed.

June 16: Abdul Malik Abdul Kareem was indicted for providing weapons to Elton Simpson and Nadir Soofi for use in May 2015 Garland, Texas attack. Kareem also traveled with Simpson and Soofi to a remote desert area near Phoenix to practice shooting. He was charged with conspiracy, making false statements and interstate transportation of firearms with intent to commit a felony. The indictment noted that the three men “and others known and unknown to the grand jury” plotted the attack.

June 13: Munther Omar Saleh, a 20-year-old college student, was arrested after he and an unidentified co-conspirator ran towards an undercover law enforcement car near the Whitestone Bridge in New York. Saleh came under scrutiny after a Port Authority police officer saw him walking near the George Washington Bridge in New Jersey this past March. Saleh conducted online research on preparing explosive devices— including research on pressure cooker bombs and other weaponry— in the New York metropolitan area on behalf of ISIS. Saleh was active on Twitter and tweeted his concern that al Qaeda was becoming “too moderate” in 2014. He also espoused pro-ISIS sympathies online and endorsed the Charlie Hebdo massacre in France and the Garland, Texas shooting attack.

June 2: Ussamah Abdullah Rahim of Roslindale, Massachusetts, was initially planning to behead an individual at some point in the future but advanced the timing of his plot and changed the target to law enforcement personnel. Rahim attacked Boston police officers and FBI agents who were attempting to question him before being neutralized. He was radicalized by ISIS and had been on authorities’ radar for several years. His nephew, David Wright, conspired with Rahim and was initially arrested for obstructing the investigation. A third associate, Nicholas Rovinski from Warwick, Rhode Island, also in contact with ISIS recruiters overseas, was arrested June 11th and charged as a co-conspirator.

HOMEGROWN ISLAMIST EXTREMISM

Homegrown terror has reached unprecedented levels as extremist groups work to infiltrate the United States and remotely recruit and radicalize Americans.

By the numbers

Since September 11, 2001, there have been 118 U.S. terrorist cases involving homegrown violent jihadists. Over 80 percent of these cases, which include plotted attacks and attempts to join foreign terrorist organizations, have occurred or been discovered since 2009.3

Authorities have arrested or charged at least 44 individuals in the United States this year – 57 since

2014 – in ISIS-related cases. The cases involve individuals: plotting attacks; attempting to travel to Syria; sending money, equipment and weapons to terrorists; falsifying statements to federal authorities; and failing to report a felony.4

FBI Director James Comey has said authorities have hundreds of open investigations of potential ISIS-inspired extremists that cover all 56 of the bureau’s field offices in all 50 states. He stated there may be hundreds or thousands of Americans who are taking in recruitment propaganda over social media applications: “It’s like the devil sitting on their shoulders, saying ‘kill, kill, kill.’”

Recent Developments

Ten ISIS supporters were arrested in the United States in June, including individuals listed in the previous section tied to ISIS-linked plots or attacks against the West, including David Wright (MA),

Nicholas Rovinski (RI), Abdul Malik Abdul Kareem (AZ), Akmal Zakirov (NY), Munther Omar Saleh (NY), and Fareed Mumuni (NY). Other arrestees include:

June 29: Alaa Saadeh, a 23-year-old from West New York, New Jersey, was arrested in connection with his involvement with an ISIS-supporting cell in New York and New Jersey. Saadeh intended to travel to join ISIS and previously assisted his brother in going overseas for the same purpose.

June 19: Amir Said Abdul Rahman al Ghazi (previously Robert McCollum), a 38-year-old from Sheffield Lake, Ohio, was arrested after pledging support to ISIS, attempting to persuade individuals to join ISIS, expressing a desire to launch terror attacks, attempting to purchase an AK-47, and selling marijuana. Ghazi expressed his radical views through social media tools, including Facebook,

Twitter, and Google+.

June 18: Samuel Rahamin Topaz, a resident of Fort Lee, New Jersey was arrested for his intent to travel abroad to join ISIS in Syria and for providing material support to the terror group. Topaz was a friend and coconspirator of Munther Saleh, arrested June 13. The two watched ISIS propaganda 3 This figure is based on open-source data compiled by the Congressional Research Service and the Majority Staff of the Homeland Security Committee. 4 This figure is based on open-source data compiled by the Majority Staff of the Homeland Security Committee. videos online depicting beheadings and discussed their plans to fight with ISIS by transiting different countries to ISIS-controlled territory in Syria.

June 11: Ali Shukri Amin, 17, of Manassas, Virginia, pleaded guilty to charges of conspiring to provide material support to ISIS after facilitating the travel of Reza Niknejad to Syria to join the group in January. Amin’s Twitter account, which at one time counted more than 4,000 followers, provided advice and encouragement to ISIS and its supporters, including instructions on how to use virtual currency Bitcoin to raise funds for the terror group.

FOREIGN FIGHTERS

Jihadists are flocking to overseas battlefields unabated, acquiring terror connections and capabilities and representing a near-term threat to their home countries, including the United States.

By the numbers

More than 22,000 fighters from 100 countries have traveled to Syria and Iraq to join extremists—the largest convergence of Islamist terrorists in world history. The number of foreign fighters who have traveled to battlefields globally exceeds 25,000.

Approximately 4,000 Western fighters have traveled to Syria and Iraq.5

An estimated 550 Western women have traveled to the conflict zone.

More than 200 Americans are estimated to have traveled – or attempted to travel – to Syria to fight.

This figure is up 33 percent from the beginning of 2015.

Around 40 American fighters who traveled to Syria have returned to the United States as of March 2015.

In addition to fighters joining Sunni extremist groups like ISIS and Jabhat al Nusrah in Syria, an estimated 5,000-7,000 Lebanese Hezbollah members and other Shi’a militants are fighting alongside the Bashar al Assad regime.

A senior State Department official said almost all foreign fighters are still entering Syria through Turkey.

France continues to be the top European source for fighters joining extremists in Syria (~1,200).

French authorities estimate that nearly 500 French fighters are currently in Syria and Iraq. The top overall source for foreign fighters is Tunisia (~ 3,000).

FOREIGN JIHADIST NETWORKS & SAFE HAVENS

5

National Counterterrorism Center Deputy Director John Mulligan, testimony before the House Homeland Security

Committee, June 3, 2015.

Islamist terror groups are carving our greater sanctuary across the Middle East. ISIS is accelerating its global expansion while al Qaeda deepens its roots in the region.

By the numbers

ISIS now has a direct presence, affiliates, or groups pledging support in at least 18 countries or territories, including Afghanistan, Algeria, Egypt, India, Indonesia, Iraq, Jordan, Libya, Lebanon, Nigeria, the Palestinian territories (Gaza), Pakistan, Philippines, Russia (North Caucasus region), Sudan, Syria, Tunisia, and Yemen.6

ISIS controls 11 cities in Iraq and 10 cities in Syria as of late June.7

Recent Developments

ISIS lost control of Tel Abyad, Syria, to Syrian Kurdish and Free Syrian Army-linked forces. The border town had served as a key ISIS line of communication from Turkey to its northern Syrian stronghold of Raqqa. ISIS has been launching counter-attacks against the border town.

ISIS has maintained control of Ramadi, the capital of Iraq’s largely Sunni-populated Anbar province along the Syrian border, after seizing it in May. It is preparing to defend the area by digging trenches and emplacing improvised explosive devices, among other tactics.

ISIS-affiliated militants have been consolidating control in and around Sirte, Libya. ISIS was recently pushed out of the coastal city of Darnah, which was at one point the top source of foreign fighters for al Qaeda in Iraq (AQI), ISIS’s predecessor. An estimated 3,000 fighters in Libya are aligned with ISIS. ISIS has reportedly sent fighters in Libya funding and military trainers over the last several months. The terrorists who separately attacked the National Bardo Museum and a coastal resort in Tunisia this year reportedly attended training camps in Libya.

ISIS formally accepted a pledge of allegiance from followers in Russia’s North Caucasus region. As many as 2,500 fighters from this region have joined extremists in Syria and Iraq.

Al Qaeda in the Arabian Peninsula (AQAP) has been forging alliances with and co-opting local Sunni tribes in southern Yemen since it defeated Yemeni security forces there in April. A recent prison break in Taiz, Yemen, reportedly freed more than 1,200 prisoners, including suspected AQAP militants.

AQAP leader Nasir al Wuhayshi was killed in a targeted strike in Yemen. Wuhayshi served as deputy to al Qaeda leader Ayman al Zawahiri and helped build AQAP following a 2006 prison break. AQAP military commander Qasim al Raymi has been named his successor.

6 Data compiled by the Majority Staff of the Homeland Security Committee.

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These figures are derived from assessments of territorial control conducted by the Institute for the Study of War.

Al Qaeda’s affiliate in Syria, Jabhat al Nusra, is a prominent force in the anti-Assad regime coalition supported by Qatar, Turkey, and Saudi Arabia – that has captured Idlib and other areas in northern Syria since March.

A cell of veteran al Qaeda operatives in Syria plotting external attacks (Khorasan Group) has maintained a presence in northwest Syria, where U.S. and coalition forces targeted buildings and training camps associated with it in May.

OTHER DEVELOPMENTS

ISIS aggressively exploits social media in order to recruit fighters, disseminate propaganda, and trigger attacks in the West.

Since the beginning of this year, ISIS has pushed out more than 1,700 “products,” including videos, photographic reports, and magazines over social media.8

There are an estimated 200,000 pro-ISIS messages posted on Twitter every day.

ISIS released the 9th issue of its English-language magazine “Dabiq” in May. The articles praises the attackers who targeted the Garland, Texas, cartoon contest, exhorts followers to commit terrorist acts in the United States and other Western countries, and touts the “benefits” it offers people living in its territory.

The risk of Islamist terrorists exploiting refugee and migrant flows to travel freely remains high as underscored in a recent arrest.

Italian authorities arrested Abdel Majid Touil, a 22-year-old Moroccan terror suspect who arrived in Italy on a migrant boat and spent several months there. Touil is suspected of being part of the terror network behind the March National Bardo Museum attack in Tunisia.

ISIS-aligned militants have been taxing migrant boat smugglers and using them to transport militants, according to a Libyan government adviser citing conversations with smugglers. Reports in 2014 indicated that ISIS operatives had discussed using refugee flows into Europe as a “Trojan Horse” for its operatives. Italian officials have reportedly expressed concerns over terrorists’ potential exploitation of these flows.

The Obama Administration released additional detainees from Guantanamo Bay in June and is formulating a broader plan to shutter the facility.

Defense Secretary Ashton Carter said he is working with the White House on a closure plan for Guantanamo to be submitted to Congress.

8

National Counterterrorism Center Deputy Director John Mulligan, testimony before the House Homeland Security

Committee, June 3, 2015.

The Defense Department announced it transferred six al Qaeda detainees – several who reportedly served as bodyguards for Osama bin Laden – from Guantanamo to Oman. Almost 30 percent of released detainees from Guantanamo are known or suspected to have returned to the battlefield.

The travel ban on the “Taliban Five” – freed in exchange for now-charged Sgt. Bowe Bergdahl – will remain in place temporarily. Restrictions enforced by the Qatari government were set to expire on June 1, 2015, but will now be extended until negotiations involving the U.S., Qatar, and Afghanistan are concluded.

Many more details in context here.

Cyber Security on the Skids, Blinking RED

Recorded Future is a real time open source intelligence collection company that determines trends and predictions of emerging threats.

Recorded Future identified the possible exposures of login credentials for 47 United States government agencies across 89 unique domains.

As of early 2015, 12 of these agencies, including the Departments of State and Energy, allowed some of their users access to computer networks with no form of two-factor authentication. The presence of these credentials on the open Web leaves these agencies vulnerable to espionage, socially engineered attacks, and tailored spear-phishing attacks against their workforce.

The damage has yet to be fully realized and cannot be overstated. Where is the White House? Where are the protections? Where is a policy? Major alarm bells as you read on.

From Associated Press:

Tech company finds stolen government log-ins all over Web

WASHINGTON (AP) — A CIA-backed technology company has found logins and passwords for 47 government agencies strewn across the Web – available for hackers, spies and thieves.

Recorded Future, a social media data mining firm backed by the CIA’s venture capital arm, says in a report that login credentials for nearly every federal agency have been posted on open Internet sites for those who know where to look.

According to the company, at least 12 agencies don’t require authentication beyond passwords to access their networks, so those agencies are vulnerable to espionage and cyberattacks.

The company says logins and passwords were found connected with the departments of Defense, Justice, Treasury and Energy, as well as the CIA and the Director of National Intelligence.

From the WSJ: Obama’s Cyber Meltdown

“While Russia and Islamic State are advancing abroad, the Obama Administration may have allowed a cyber 9/11 at home.”

If you thought Edward Snowden damaged U.S. security, evidence is building that the hack of federal Office of Personnel Management (OPM) files may be even worse.

When the Administration disclosed the OPM hack in early June, they said Chinese hackers had stolen the personal information of up to four million current and former federal employees. The suspicion was that this was another case of hackers (presumably sanctioned by China’s government) stealing data to use in identity theft and financial fraud. Which is bad enough.

Yet in recent days Obama officials have quietly acknowledged to Congress that the hack was far bigger, and far more devastating. It appears OPM was subject to two breaches of its system in mid-to-late 2014, and the hackers appear to have made off with millions of security-clearance background check files.

These include reports on Americans who work for, did work for, or attempted to work for the Administration, the military and intelligence agencies. They even include Congressional staffers who left government—since their files are also sent to OPM.

This means the Chinese now possess sensitive information on everyone from current cabinet officials to U.S. spies. Background checks are specifically done to report personal histories that might put federal employees at risk for blackmail. The Chinese now hold a blackmail instruction manual for millions of targets.

These background checks are also a treasure trove of names, containing sensitive information on an applicant’s spouse, children, extended family, friends, neighbors, employers, landlords. Each of those people is also now a target, and in ways they may not contemplate. In many instances the files contain reports on applicants compiled by federal investigators, and thus may contain information that the applicant isn’t aware of.

Of particular concern are federal contractors and subcontractors, who rarely get the same security training as federal employees, and in some scenarios don’t even know for what agency they are working. These employees are particularly ripe targets for highly sophisticated phishing emails that attempt to elicit sensitive corporate or government information.

The volume of data also allows the Chinese to do what the intell pros call “exclusionary analysis.” We’re told, for instance, that some highly sensitive agencies don’t send their background checks to OPM. So imagine a scenario in which the Chinese look through the names of 30 State Department employees in a U.S. embassy. Thanks to their hack, they’ve got information on 27 of them. The other three they can now assume are working, undercover, for a sensitive agency. Say, the CIA.

Or imagine a scenario in which the Chinese cross-match databases, running the names of hacked U.S. officials against, say, hotel logs. They discover that four Americans on whom they have background data all met at a hotel on a certain day in Cairo, along with a fifth American for whom they don’t have data. The point here is that China now has more than enough information to harass U.S. agents around the world.

And not only Americans. Background checks require Americans to list their contacts with foreign nationals. So the Chinese may now have the names of thousands of dissidents and foreigners who have interacted with the U.S. government. China’s rogue allies would no doubt also like this list.

This is a failure of extraordinary proportions, yet even Congress doesn’t know its extent. The Administration is still refusing to say, even in classified briefings, which systems were compromised, which files were taken, or how much data was at risk.

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While little noticed, the IRS admitted this spring it was also the subject of a Russian hack, in which thieves grabbed 100,000 tax returns and requested 15,000 fraudulent refunds. Officials have figured out that the hackers used names and Social Security data to pretend to be the taxpayers and break through weak IRS cyber-barriers. As Wisconsin Senator Ron Johnson has noted, the Health and Human Services Department and Social Security Administration use the same weak security wall to guard ObamaCare files and retirement information. Yet the Administration is hardly rushing to fix the problem.

Way back in March 2014, OPM knew that Chinese hackers had accessed its system without having downloaded files. So the agency was on notice as a target. It nonetheless failed to stop the two subsequent successful breaches. If this were a private federal contractor that had lost sensitive data, the Justice Department might be contemplating indictments.

Yet OPM director Katherine Archuleta and chief information officer Donna Seymour are still on the job. Mr. Obama has defended Ms. Archuleta, and the Administration is trying to change the subject by faulting Congress for not passing a cybersecurity bill. But that legislation concerns information sharing between business and government. It has nothing to do with OPM and the Administration’s failure to protect itself from cyber attack.

Ms. Archuleta appears before Congress this week, and she ought to remain seated until she explains the extent of this breach. While Russia and Islamic State are advancing abroad, the Obama Administration may have allowed a cyber 9/11 at home.

Obama has Synchronized Iran’s Nuclear Program

Consider the stated position of the Supreme leader of Iran:

Reuters and AFP – Iran’s Supreme Leader Ayatollah Ali Khamenei has stated his country’s red lines for a nuclear deal with six world powers.

“Freezing Iran’s research and development for a long time like 10 or 12 years is not acceptable,” Khamenei said in a speech broadcast live on June 23.

Khamenei, who has the final say for Iran on any deal, added that all financial and economic sanctions “should be lifted immediately” if an agreement is signed.

Britain, France, Germany, China, Russia, and the United States want Tehran to commit to a verifiable halt of at least 10 years on sensitive nuclear development work as part of a deal they aim to reach by a June 30 deadline. In exchange, they are offering relief from economic sanctions.

Khamenei reiterated that Iran would not give international inspectors access to its military sites and accused the United States of wanting to destroy Iran’s nuclear industry.

The six powers want limits on Tehran’s programs that could have a military use.

Tehran denies it is pursuing nuclear weapons.

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When the NYT finally prints an explosive fantasy piece on what the White House and John Kerry at the State Department are doing with Iran, one needs to take notice. The New York Times calls this Iran agreement a ‘fatal flaw’.

The Iran Deal’s Fatal Flaw

PRESIDENT OBAMA’S main pitch for the pending nuclear deal with Iran is that it would extend the “breakout time” necessary for Iran to produce enough enriched uranium for a nuclear weapon. In a recent interview with NPR, he said that the current breakout time is “about two to three months by our intelligence estimates.” By contrast, he claimed, the pending deal would shrink Iran’s nuclear program, so that if Iran later “decided to break the deal, kick out all the inspectors, break the seals and go for a bomb, we’d have over a year to respond.”

Unfortunately, that claim is false, as can be demonstrated with basic science and math.  Most important, in the event of an overt attempt by Iran to build a bomb, Mr. Obama’s argument assumes that Iran would employ only the 5,060 centrifuges that the deal would allow for uranium enrichment, not the roughly 14,000 additional centrifuges that Iran would be permitted to keep mainly for spare parts. Such an assumption is laughable. In a real-world breakout, Iran would race, not crawl, to the bomb.  Iran stands to gain enormously. The deal would lift nuclear-related sanctions, thereby infusing Iran’s economy with billions of dollars annually. In addition, the deal could release frozen Iranian assets, reportedly giving Tehran a $30 billion to $50 billion “signing bonus.”

Showering Iran with rewards for making illusory concessions poses grave risks. It would entrench the ruling mullahs, who could claim credit for Iran’s economic resurgence. The extra resources would also enable Iran to amplify the havoc it is fostering in neighboring countries like Iraq, Syria, Lebanon and Yemen.

Worst of all, lifting sanctions would facilitate a huge expansion of Iran’s nuclear program. Ayatollah Ali Khamenei, Iran’s supreme leader, says that he wants 190,000 centrifuges eventually, or 10 times the current amount, as would appear to be permissible under the deal after just 10 years. Such enormous enrichment capacity would shrink the breakout time to mere days, so that Iran could produce enough weapons-grade uranium for a bomb before we even knew it was trying — thus eliminating any hope of our taking preventive action.

Nothing in the pending deal is worth such risks. Read the full article in context here.

*** But is getting worse as new documents demonstrate.

Reported by Fox News via Associated Press:

The United States and its allies are willing to offer Iran state-of-the-art nuclear equipment if Tehran agrees to pare down its atomic weapons program as part of a final nuclear agreement, a draft document has revealed.

The confidential paper, obtained by the Associated Press, has dozens of bracketed text where disagreements remain. Technical cooperation is the least controversial issue at the talks, and the number of brackets suggest the sides have a ways to go, not only on that topic but also more contentious disputes, with less than a week until the June 30 deadline for a deal.

However, the scope of the help now being offered in the draft may displease U.S. congressional critics who already argue that Washington has offered too many concessions at the negotiations.

The draft, titled “Civil Nuclear Cooperation,” promises to supply Iran with light-water nuclear reactors instead of its nearly completed heavy-water facility at Arak, which would produce enough plutonium for several bombs a year if completed as planned. The full details are here.

Civil Nuclear Cooperation platform is not new.

Chilling are the following facts:

Russia and Saudi Arabia have signed a nuclear cooperation agreement. The U.S. has done the same with Korea. Then comes Pakistan learning from U.S. and India where pacts could lead to even more proliferation globally.

For a more detailed summary of the Nuclear Cooperation agreements, take a look at a surface review on equipment, supply and banks in the matter of Korea.

 

Cyber Conflict, Chaos and Calamity

There have been several Congressional hearings on cyber-terrorism, yet with such an emergency and threat, no solution is forthcoming.

From AEI: “America’s intelligence leaders have made clear the biggest threat today is cyber and counterintelligence. Who are the largest perpetrators of these types of attacks? The intelligence report singles out Russia and China as first examples. These nations have “highly sophisticated cyber programs” and are regularly conducting “politically motivated” attacks. What are they up to exactly? Countries such as China are “reconnoitering and developing access to US critical infrastructure systems, which might be quickly exploited for disruption if an adversary’s intent became hostile.” Back in 2013, Verizon released a report detailing Chinese hackers lurking around inside American industrial control systems—the cyber equivalent to casing a robbery target. In 2014 alone, the FBI investigated a likely Russian hacking campaign against American banking backbone JP Morgan, while two cybersecurity firms blamed Iran for a major campaign against US critical infrastructure like major airliners, medical universities, and energy companies. As the year ended, the US government publicly accused North Korea of a devastating cyberattack against Sony.”

When of Office of National Intelligence produced a report, the first chapter is on cyber threats.

“Risk. Despite ever-improving network defenses, the diverse possibilities for remote hacking intrusions, supply chain operations to insert compromised hardware or software, and malevolent activities by human insiders will hold nearly all ICT systems at risk for years to come. In short, the cyber threat cannot be eliminated; rather, cyber risk must be managed. Moreover, the risk calculus employed by some private sector entities does not adequately account for foreign cyber threats or the systemic interdependencies between different critical infrastructure sectors.

Costs. During 2014, we saw an increase in the scale and scope of reporting on malevolent cyber activity that can be measured by the amount of corporate data stolen or deleted, personally identifiable information (PII) compromised, or remediation costs incurred by US victims. “

The stakes are higher than anyone will admit, most of all the White House. The Office of Personnel Management hack of personnel files now appears to exceed 18 million individuals. “FBI Director James Comey gave the 18 million estimate in a closed-door briefing to Senators in recent weeks, using the OPM’s own internal data, according to U.S. officials briefed on the matter. Those affected could include people who applied for government jobs, but never actually ended up working for the government.”

Just announced as a possible additional agency falling victim to hacking is the National Archives and Records Administration (NARA). What is chilling about this probability is all government reports, records and communications are by law to be maintained by NARA., even classified material.

EXCLUSIVE: Signs of OPM Hack Turn Up at Another Federal Agency

The National Archives and Records Administration recently detected unauthorized activity on three desktops indicative of the same hack that extracted sensitive details on millions of current and former federal employees, government officials said Monday. The revelation suggests the breadth of one of the most damaging cyber assaults known is wider than officials have disclosed.

The National Archives’ own intrusion-prevention technology successfully spotted the so-called indicators of compromise during a scan this spring, said a source involved in the investigation, who was not authorized to speak publicly about the incident. The discovery was made soon after the Department of Homeland Security’s U.S. Computer Emergency Readiness Team published signs of the wider attack — which targeted the Office of Personnel Management — to look for at agencies, according to NARA.

It is unclear when NARA computers were breached. Suspected Chinese-sponsored cyberspies reportedly had been inside OPM’s networks for a year before the agency discovered what happened in April. Subsequently, the government uncovered a related attack against OPM that mined biographical information on individuals who have filed background investigation forms to access classified secrets.

The National Archives has found no evidence intruders obtained “administrative access,” or took control, of systems, but files were found in places they did not belong, the investigator said.

NARA “systems” and “applications” were not compromised, National Archives spokeswoman Laura Diachenko emphasized to Nextgov,  “but we detected IOCs,” indicators of compromise, “on three workstations, which were cleaned and re-imaged,” or reinstalled.

“Other files found seemed to be legitimate,” such as those from a Microsoft website, she said. “We have requested further guidance from US-CERT on how to deal with these” and are still awaiting guidance on how to proceed.

It will take additional forensics assessments to determine whether attackers ever “owned” the National Archives computers, the investigator said.

Diachenko said, “Continued analysis with our monitoring and forensic tools has not detected any activity associated with a hack,” including alerts from the latest version of a governmentwide network-monitoring tool called EINSTEIN 3A.

EINSTEIN, like NARA’s own intrusion-prevention tool, is now configured to detect the tell-tale signs of the OPM attack.

“OPM isn’t the only agency getting probed by this group,” said John Prisco, president of security provider Triumphant, the company that developed the National Archives’ tool. “It could be happening in lots of other agencies.”

Prisco said he learned of the incident at a security industry conference June 9, from an agency official the company has worked with for years.

“They told us that they were really happy because we stopped the OPM attack in their agency,” Prisco said.

The malicious operation tries to open up ports to the Internet, so it can excise information, Prisco said.

“It’s doing exploration work laterally throughout the network and then it’s looking for a way to communicate what it finds back to its server,” he added.

Homeland Security officials on Monday would not confirm or deny the situation at the National Archives. DHS spokesman S.Y. Lee referred to the department’s earlier statement about the OPM hack: “DHS has shared information regarding the potential incident with all federal chief information officers to ensure that all agencies have the knowledge they need to defend against this cybersecurity incident.”

The assault on OPM represents the seventh raid on national security-sensitive or federal personnel information over the past year.

Well-funded hackers penetrated systems at the State Department, the White House, U.S. Postal Service and, previously in March 2014, OPM. Intruders also broke into networks twice at KeyPoint Government Solutions, an OPM background check provider, and once at USIS, which conducted most of OPM’s employee investigations until last summer.

On Wednesday, the House Oversight and Government Reform Committee is scheduled to hold a hearing on the OPM incident that, among other things, will examine the possibility that hackers got into the agency’s systems by using details taken from the contractors.