US Treasury’s Evidence Iran and Russia Cooperating in Syria

The U.S. Treasury Department sanctioned nine targets last week related to an illicit oil network between Iran and Russia.

“We are acting against a complex scheme Iran and Russia have used to bolster the [Bashar] Assad regime and generate funds for Iranian malign activity,” said Treasury Secretary Steven Mnuchin. “Central Bank of Iran officials continue to exploit the international financial system, and in this case even used a company whose name suggests a trade in humanitarian goods as a tool to facilitate financial transfers supporting this oil scheme.

“The United States is committed to imposing a financial toll on Iran, Russia and others for their efforts to solidify Assad’s authoritarian rule, as well as disrupt the Iranian regime’s funding of terrorist organizations,” he added.

Experts said this move was crucial in combating the Iranian threat.

“The scheme uncovered by the Treasury Department shows just how closely Iran and Russia are cooperating to not only help prop up the Assad regime financially, but to help finance the leading players in Iran’s global terrorism,” Boris Zilberman of the Foundation for Defense of Democracies told JNS. “So when Russia talks about cooperating with the United States to counter-terrorism this is empty rhetoric plain and simple.”

“As this scheme shows, Russia works hand in hand with some of the very terror groups we seek to counter,” he continued. “Russia is not a partner in our counter-terrorism efforts, but is, in fact, an adversary.”

“There are already sanctions on Russian arms exporters, but the United States should continue to uncover and sanction schemes such as this,” added Zilberman. “The administration could also consider, in conjunction with Israel, striking destabilizing arms transfers by Hezbollah.

“It’s an important step, and highlights just how much [Russian President Vladimir] Putin has supported Iran, Hezbollah and Assad, and how committed he is, despite hopes that Putin’s partnership with Iran is skin-deep short-lived,” the Washington Institute for Near East Policy’s Anna Borshchevskaya told JNS.

“Hard to tell if this pressure will succeed without being incorporated into a broader strategy,” she continued. “It comes as no surprise that the Kremlin said earlier this month it will continue to help Iran trade oil. It’s possible to imagine Moscow setting up another intermediary to continue shipping oil to the Syrian regime, but nonetheless, this is an important step.”

The State Department joined Treasury in sending a message to the Islamic Republic.

Islamic State crisis: US hits IS oil targets in Syria ...

“The sanctions levied today directly target the Iranian regime’s exploitation of the international financial system to hide revenue streams it uses to fund terrorist activity, provide support for sectarian militias responsible for abuses against civilian populations and destabilize the region,” said the department in a statement. “The Iranian regime, Iranian-commanded forces inside Syria and the proxy terrorist groups it supports such as those targeted today continue to foment instability to extend their malign influence. These actions by the Iranian and Assad regimes undermine the legitimate processes to resolve the conflict in Syria.”

This development preceded Secretary of State Pompeo blasting Iranian President Hassan Rouhani on Monday for calling Israel a “cancerous tumor” and a “fake regime.”

“This is a dangerous and irresponsible step that will further deepen Iran’s isolation,” warned Pompeo.

“The Iranian regime is no friend of America or Israel when they repeatedly call for the death of millions, including Muslims,” he added. “The Iranian people know better and do not agree with their government, which has badly represented them to the world for 39 years. The people have suffered under this tyranny for far too long.”

*** It is quite right that Iran is no friend of the United States or Israel. That Obama/Kerry nuclear deal was supposed to lay the groundwork for Iran to be a good citizen of the world….read on…not so much.

***

Two Iranian Men Indicted for Deploying Ransomware to Extort Hospitals, Municipalities, and Public Institutions, Causing Over $30 Million in Losses

A federal grand jury returned an indictment unsealed today in Newark, New Jersey charging Faramarz Shahi Savandi, 34, and Mohammad Mehdi Shah Mansouri, 27, both of Iran, in a 34-month-long international computer hacking and extortion scheme involving the deployment of sophisticated ransomware, announced Deputy Attorney General Rod J. Rosenstein, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Craig Carpenito for the District of New Jersey and Executive Assistant Director Amy S. Hess of the FBI.

The six-count indictment alleges that Savandi and Mansouri, acting from inside Iran, authored malware, known as “SamSam Ransomware,” capable of forcibly encrypting data on the computers of victims.  According to the indictment, beginning in December 2015, Savandi and Mansouri would then allegedly access the computers of victim entities without authorization through security vulnerabilities, and install and execute the SamSam Ransomware on the computers, resulting in the encryption of data on the victims’ computers.  These more than 200 victims included hospitals, municipalities, and public institutions, according to the indictment, including the City of Atlanta, Georgia; the City of Newark, New Jersey; the Port of San Diego, California; the Colorado Department of Transportation; the University of Calgary in Calgary, Alberta, Canada; and six health care-related entities: Hollywood Presbyterian Medical Center in Los Angeles, California; Kansas Heart Hospital in Wichita, Kansas; Laboratory Corporation of America Holdings, more commonly known as LabCorp, headquartered in Burlington, North Carolina; MedStar Health, headquartered in Columbia, Maryland; Nebraska Orthopedic Hospital now known as OrthoNebraska Hospital, in Omaha, Nebraska and Allscripts Healthcare Solutions Inc., headquartered in Chicago, Illinois.

According to the indictment, Savandi and Mansouri would then extort victim entities by demanding a ransom paid in the virtual currency Bitcoin in exchange for decryption keys for the encrypted data, collecting ransom payments from victim entities that paid the ransom, and exchanging the Bitcoin proceeds into Iranian rial using Iran-based Bitcoin exchangers.  The indictment alleges that, as a result of their conduct, Savandi and Mansouri have collected over $6 million USD in ransom payments to date, and caused over $30 million USD in losses to victims.

“The Iranian defendants allegedly used hacking and malware to cause more than $30 million in losses to more than 200 victims,” said Deputy Attorney General Rosenstein.  “According to the indictment, the hackers infiltrated computer systems in 10 states and Canada and then demanded payment. The criminal activity harmed state agencies, city governments, hospitals, and countless innocent victims.”

“The allegations in the indictment unsealed today—the first of its kind—outline an Iran-based international computer hacking and extortion scheme that engaged in 21st-century digital blackmail,” said Assistant Attorney General Benczkowski.  “These defendants allegedly used ransomware to infect the computer networks of municipalities, hospitals, and other key public institutions, locking out the computer owners, and then demanded millions of dollars in payments from them. As today’s charges demonstrate, the Criminal Division and its law enforcement partners will relentlessly pursue cybercriminals who harm American citizens, businesses, and institutions, regardless of where those criminals may reside.”

“The defendants in this case developed and deployed the SamSam Ransomware in order to hold public and private entities hostage and then extort money from them,” said U.S. Attorney Carpenito.  “As the indictment in this case details, they started with a business in Mercer County and then moved on to major public entities, like the City of Newark, and healthcare providers, like the Hollywood Presbyterian Medical Center in Los Angeles and the Kansas Heart Hospital in Wichita—cravenly taking advantage of the fact that these victims depend on their computer networks to serve the public, the sick, and the injured without interruption.  The charges announced today show that the U.S. Attorney’s Office for the District of New Jersey will continue to act to disrupt such criminal acts, and identify those who are responsible for them, no matter where in the world they may seek to hide.”

“This indictment demonstrates the FBI’s continuous commitment to unmasking malicious actors behind the world’s most egregious cyberattacks,” said Executive Assistant Director Hess.  “By calling out those who threaten American systems, we expose criminals who hide behind their computer and launch attacks that threaten our public safety and national security.  The actions highlighted today, which represent a continuing trend of cyber criminal activity emanating from Iran, were particularly threatening, as they targeted public safety institutions, including U.S. hospital systems and governmental entities.  The FBI, with the assistance of our private sector and U.S. government partners, are sending a strong message that we will work together to investigate and hold all criminals accountable.”

Savandi and Mansouri are charged with one count of conspiracy to commit wire fraud, one count of conspiracy to commit fraud and related activity in connection with computers, two substantive counts of intentional damage to a protected computer and two substantive counts of transmitting a demand in relation to damaging a protected computer.

According to the indictment, Savandi and Mansouri created the first version of the SamSam Ransomware in December 2015, and created further refined versions in June and October 2017.  In addition to employing Iran-based Bitcoin exchangers, the indictment alleges that the defendants also utilized overseas computer infrastructure to commit their attacks.   Savandi and Mansouri would also use sophisticated online reconnaissance techniques (such as scanning for computer network vulnerabilities) and conduct online research in order to select and target potential victims, according to the indictment.  According to the indictment, the defendants would also disguise their attacks to appear like legitimate network activity.

To carry out their scheme, the indictment alleges that the defendants also employed the use of Tor, a computer network designed to facilitate anonymous communication over the internet.  According to the indictment, the defendants maximized the damage caused to victims by launching attacks outside regular business hours, when a victim would find it more difficult to mitigate the attack, and by encrypting backups of the victims’ computers.  This was intended to—and often did—cripple the regular business operations of the victims, according to the indictment.  The most recent ransomware attack against a victim alleged in the indictment took place on Sept. 25, 2018.

This case was investigated by the FBI’s Newark Field Office.  Senior Counsel William A. Hall Jr. of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorney and Chief of the Cybercrimes Unit Justin S. Herring of the District of New Jersey are prosecuting the case.  The Department thanks its law enforcement colleagues at the National Crime Agency (UK), West Yorkshire Police (UK), Calgary Police Service (Canada), and the Royal Canadian Mounted Police.  Significant assistance was provided by the Justice Department’s National Security Division and the Criminal Division’s Office of International Affairs.

Salafi Jihadists, More Today than Ever

Despite the Islamic State’s loss of territory in Iraq and Syria, an increasingly diffuse Salafi-jihadist movement is far from defeated.

This report constructs a data set of groups and fighters from 1980 to 2018, including from the Islamic State and al-Qaeda. It finds that the number of Salafi-jihadists in 2018 declined somewhat from a high in 2016, but is still at near-peak levels since 1980.

What Is Religious Fundamentalism? - WorldAtlas.com

The regions with the largest number of fighters are Syria (between 43,650 and 70,550 fighters), Afghanistan (between 27,000 and 64,060), Paki­stan (between 17,900 and 39,540), Iraq (between 10,000 and 15,000), Nigeria (between 3,450 and 6,900), and Somalia (between 3,095 and 7,240). Attack data indicates that there are still high lev­els of violence in Syria and Iraq from Salafi-jihad­ist groups, along with significant violence in such countries and regions as Yemen, the Sahel, Nigeria, Afghan­istan, and So­malia.

These findings suggest that there is a large pool of Salafi-jihadist and allied fighters willing and able to use violence to achieve their goals. Every U.S. president since 9/11 has tried to move away from counterterrorism in some capacity, and it is no different today. Balancing national secu­rity priorities in today’s world needs to happen grad­ually.

For the United States, the challenge is not that U.S. officials are devoting attention and resources to dealing with state adversaries like Russia, China, Iran, and North Korea. These countries present legitimate threats to the United States at home and abroad. Rath­er, the mistake would be declaring victory over ter­rorism too quickly and, as a result, shifting too many resources and too much attention away from terrorist groups when the threat remains significant.

Click here to read report.

Developing national security is more an art than a science, especially when trying to prioritize among a range of important issues. A high school student experimenting with weights on a scale finds that taking off mass from one side too quickly—or adding too
much mass to the other side—will cause the scale to lose its balance. Indeed, balancing U.S. national security priorities in today’s world needs to happen gradu-
ally. The challenge is not that U.S. officials are devoting attention to deal with state adversaries like Russia, China, Iran, and North Korea. These countries present
legitimate threats to the United States at home and abroad. Rather, the mistake would be declaring victory too quickly against terrorism—and then shifting too many resources and too much attention away when the threat remains significant. A significant withdrawal of U.S. special operations forces, intelligence operatives, intelligence resources, and development and diplomatic experts for counterterrorism in key areas of Africa, the Middle East, and South Asia would be unnecessarily risky.

This the Reason N Korea Cancelled the Meeting?

The excuses both sides explain scheduling conflicts. C’mon, lil Kim is not exactly that busy to take a meeting with America, right? As North and South Korea have begin to dismantle 20 guard posts along the DMZ. South Korea has 60 such positions while North Korea has an estimated 160. Allegedly, all firearms have been already removed from the guard posts. Personnel is still there but it is said they are unarmed.

Back to that cancelled meeting….

 A satellite image of a secret North Korean ballistic missile base. The North has offered to dismantle a different major missile launching site while continuing to make improvements at more than a dozen others.CreditCreditCSIS/Beyond Parallel, via DigitalGlobe 2018

More detail is explained here.

What is the reason then? Missile sites….hummm

North Korea are still operating undeclared missile bases and even improving some of their missile sites instead of shutting them down.

The latest report from the Center for Strategic and International Studies in Washington said it had identified 13 of an estimated 20 secret missile operating bases inside North Korea.

They could be used to house ballistic missiles of various ranges, with the largest believed to be capable of striking anywhere in the United States.

The report, written by researcher Joseph Bermudez, said maintenance and minor infrastructure improvements have been observed at some of the sites.

The sites identified in the report are scattered in remote, mountainous areas across North Korea.

It even identified improvements being made to its Sakkanmol site, close to the border with South Korea.

President Trump is still hoping to persuade Pyongyang to give up its nuclear weapons and long-range missiles.

The North Korean leader Kim Jong Un and U.S. President Donald Trump pledged to work towards ‘denuclearization’ at their landmark June summit in Singapore.

Shortly after the summit, Trump tweeted that there was no longer a nuclear threat from North Korea.

North Korea declared its nuclear force ‘complete’ and halted missile and nuclear bomb testing earlier this year.

North Korea has said it has closed its Punggye-ri nuclear testing site and the Sohae missile engine test facility.

It also raised the possibility of shuttering more sites and allowing international inspections if Washington took ‘corresponding measures’.

Last week, North Korea called off a meeting with U.S. Secretary of State Mike Pompeo in New York.

The country’s state media said on Monday the resumption of some small-scale military drills by South Korea and the United States violated a recent agreement aimed at lowering tensions on the Korean peninsula.

‘Missile operating bases are not launch facilities,’ Bermudez wrote.

‘While missiles could be launched from within them in an emergency, Korean People’s Army (KPA) operational procedures call for missile launchers to disperse from the bases to pre-surveyed or semi-prepared launch sites for operations.’

None of the missile bases have been acknowledged by North Korea, and analysts say an accurate disclosure of nuclear weapons and missile capabilities would be an important part of any denuclearization deal.

 

Afghanistan Then and Now

Primer:In September of 1963, the King and Queen of Afghanistan visited Washington DC as guests of President Kennedy.

55 years later, this month, the United States and allies have entered the 17th year of military conflict in Afghanistan. The target is the Taliban. Under the Obama regime, several attempts were made to normalize relationship with the Taliban leadership including swapping one treasonous soldier for 5 senior Taliban leaders from Guantanamo. At the same time, the United States coordinated with Qatar to pay for a Taliban consulate operation in Qatar. It remains today.

Under the Trump administration, the same kind of talks are taking place with Zalmay Khalilzad leading the U.S. envoy.

Zalmay Khalilzad, the Afghan-born U.S. adviser and former U.S. ambassador to Afghanistan, briefed Ghani and Abdullah on October 13 about his meetings with senior ministers and top diplomats in four countries as part of a diplomatic mission aimed at bringing the Taliban to the negotiating table.

Since Khalilzad last visited Kabul on October 4, his tour has taken him to Pakistan, the United Arab Emirates, Saudi Arabia, and Qatar.

A statement sent to journalists on October 13 by Taliban spokesman Zabihullah Mujahid said Khalilzad met Taliban representatives on October 12 in Qatar’s capital, Doha, to discuss ending the Afghan conflict.

Mujahid said the Taliban representatives told Khalilzad that the presence of foreign forces in Afghanistan was a “big obstacle” to peace and that both sides “agreed to continue such meetings.”

Another senior Taliban member said the U.S. envoy had asked the Taliban leadership to declare a cease-fire in Afghanistan for six months, in time for the planned October 20 parliamentary elections.

“Both sides discussed prospects for peace and the U.S presence in Afghanistan,” another Taliban official said.

The Taliban in exchange are seeking the release of their fighters from Afghan jails and the removal of foreign troops currently aiding Afghan security forces.

“Neither side agreed to accept the other’s demands immediately, but they agreed to meet again and find a solution to the conflict,” said a Taliban official who asked not to be identified.

A statement about Khalilzad’s diplomatic tour released by the U.S. Embassy in Kabul did not confirm his meeting with the Taliban. More here.

After 17 years, there are still more Taliban fighters? How is that possible?

Let’s go back many years shall we?

BEFORE THE AMERICAN invasion, before the Russian war, and before the Marxist revolution, Afghanistan used to be a pretty nice place.

An astonishing collection of photos from the 1960s was recently featured by the Denver Post.

To see the full photo essay, go here.

FBI Director Threat Assessment to Senate Committee

210 Billion Attacks in Q2 2018

Report Highlights Include:

  • Analysis of 151 million global cybercrime attacks and 1.6 billion bot attacks
  • 72 percent growth in mobile transactions year-on-year
  • One third of all attacks now targeting mobile
Related reading: Terrorists likely to attack U.S. with drones, says FBI director

Related reading: FBI director says bureau is investigating 5,000 terrorism cases across the world

_______________________________

Threats to the Homeland

Good morning Chairman Johnson, Ranking Member McCaskill, and members of the committee. Thank you for the opportunity to appear before you today to discuss the current threats to the United States homeland. Our nation continues to face a multitude of serious and evolving threats ranging from homegrown violent extremists (HVEs) to cyber criminals to hostile foreign intelligence services and operatives. Keeping pace with these threats is a significant challenge for the FBI. Our adversaries—terrorists, foreign intelligence services, and criminals—take advantage of modern technology to hide their communications; recruit followers; and plan and encourage espionage, cyber attacks, or terrorism to disperse information on different methods to attack the U.S. homeland, and to facilitate other illegal activities. As these threats evolve, we must adapt and confront these challenges, relying heavily on the strength of our federal, state, local, and international partnerships.

Counterterrorism

The threat posed by terrorism—both international terrorism (IT) and domestic terrorism (DT)—has evolved significantly since 9/11. Preventing terrorist attacks remains the FBI’s top priority. We face persistent threats to the homeland and to U.S. interests abroad from HVEs, domestic terrorists, and foreign terrorist organizations (FTOs). The IT threat to the U.S. has expanded from sophisticated, externally directed FTO plots to include individual attacks carried out by HVEs who are inspired by designated terrorist organizations. We remain concerned that groups such as the Islamic State of Iraq and ash-Sham (ISIS) and al Qaeda have the intent to carry out large-scale attacks in the U.S.

The FBI assesses HVEs are the greatest terrorism threat to the homeland. These individuals are global jihad-inspired individuals who are in the U.S., have been radicalized primarily in the U.S., and are not receiving individualized direction from FTOs. We, along with our law enforcement partners, face significant challenges in identifying and disrupting HVEs. This is due, in part, to their lack of a direct connection with an FTO, an ability to rapidly mobilize, and the use of encrypted communications.

In recent years, prolific use of social media by FTOs has greatly increased their ability to disseminate their messages. We have also been confronting a surge in terrorist propaganda and training available via the Internet and social media. Due to online recruitment and indoctrination, FTOs are no longer dependent on finding ways to get terrorist operatives into the United States to recruit and carry out acts of terrorism. Terrorists in ungoverned spaces—both physical and cyber—readily disseminate propaganda and training materials to attract easily influenced individuals around the world to their cause. They motivate these individuals to act at home or encourage them to travel. This is a significant transformation from the terrorist threat our nation faced a decade ago.

Despite significant losses of territory, ISIS remains relentless and ruthless in its campaign of violence against the West and has aggressively promoted its hateful message, attracting like-minded extremists. Unlike other groups, ISIS has constructed a narrative that touches on all facets of life, from family life to providing career opportunities to creating a sense of community. The message is not tailored solely to those who overtly express signs of radicalization. It is seen by many who click through the Internet every day, receive social media notifications, and participate in social networks. Ultimately, many of the individuals drawn to ISIS seek a sense of belonging. Echoing other terrorist groups, ISIS has advocated for lone offender attacks in Western countries. Recent ISIS videos and propaganda have specifically advocated for attacks against soldiers, law enforcement, and intelligence community personnel.

Many foreign terrorist organizations use various digital communication platforms to reach individuals they believe may be susceptible and sympathetic to extremist messages. However, no group has been as successful at drawing people into its perverse ideology as ISIS, who has proven dangerously competent at employing such tools. ISIS uses high-quality, traditional media platforms, as well as widespread social media campaigns to propagate its extremist ideology. With the broad distribution of social media, terrorists can spot, assess, recruit, and radicalize vulnerable persons of all ages in the U.S. either to travel or to conduct an attack on the homeland. Through the Internet, terrorists overseas now have direct access to our local communities to target and recruit our citizens and spread the message of radicalization faster than was imagined just a few years ago.

The threats posed by foreign fighters, including those recruited from the U.S., are very dynamic. We will continue working to identify individuals who seek to join the ranks of foreign fighters traveling in support of ISIS, those foreign fighters who may attempt to return to the United States, and HVEs who may aspire to attack the United States from within.

ISIS is not the only terrorist group of concern. Al Qaeda maintains its desire for large-scale spectacular attacks. However, continued counterterrorism pressure has degraded the group, and in the near term al Qaeda is more likely to focus on supporting small-scale, readily achievable attacks against U.S. and allied interests in the Afghanistan/Pakistan region. Simultaneously, over the last year, propaganda from al Qaeda leaders seeks to inspire individuals to conduct their own attacks in the U.S. and the West.

In addition to FTOs, domestic extremist movements collectively pose a steady threat of violence and economic harm to the United States. Trends within individual movements may shift, but the underlying drivers for domestic extremism—such as perceptions of government or law enforcement overreach, socio-political conditions, and reactions to legislative actions—remain constant. The FBI is most concerned about lone offender attacks, primarily shootings, as they have served as the dominant mode for lethal domestic extremist violence. We anticipate law enforcement, racial minorities, and the U.S. government will continue to be significant targets for many domestic extremist movements.

As the threat to harm the U.S. and our interests evolves, we must adapt and confront these challenges, relying heavily on the strength of our federal, state, local, and international partnerships. The FBI uses all lawful investigative techniques and methods to combat these terrorist threats to the United States. Along with our domestic and foreign partners, we collect and analyze intelligence concerning the ongoing threat posed by foreign terrorist organizations and homegrown violent extremists. We continue to encourage information sharing, which is evidenced through our partnerships with many federal, state, local, and tribal agencies assigned to Joint Terrorism Task Forces around the country. The FBI continues to strive to work and share information more efficiently, and to pursue a variety of lawful methods to stay ahead of threats to the homeland.

Intelligence

Incorporating intelligence in all we do remains a critical strategic pillar of the FBI strategy. The constant evolution of the FBI’s intelligence program will help us address the ever-changing threat environment. We must constantly update our intelligence apparatus to improve the way we collect, use, and share intelligence to better understand and defeat our adversaries. We cannot be content only to work the matters directly in front of us. We must also look beyond the horizon to understand the threats we face at home and abroad, and how those threats may be connected. We must also ensure we are providing our partners, whether in the public or private sectors, with actionable, relevant intelligence to help them address their own unique threats.

To that end, The FBI gathers intelligence, pursuant to legal authorities, to help us understand and prioritize identified threats, to reveal the gaps in what we know about these threats, and to fill those gaps. We do this for national security and criminal threats, on both national and local field office levels. We then compare the national and local perspectives to organize threats into priorities for each of the FBI’s 56 field offices. By categorizing threats in this way, we place the greatest focus on the gravest threats we face. This gives us a better assessment of what the dangers are, what is being done about them, and where we should prioritize our resources.

Given the fast pace of technological evolution, we must also focus on ensuring our information technology capabilities allow us to collect and assess information as quickly and thoroughly as possible. We must continue to deploy superior technological capabilities and solutions for large data sets, such as those derived from digital media.

Integrating intelligence and operations is part of the broader intelligence transformation the FBI has undertaken in the last decade to improve our understanding and mitigation of threats. Over the past few years, we have taken several steps to improve this integration. The FBI’s Intelligence Branch, created in August 2014, provides strategic direction and oversight of the FBI’s intelligence program and is responsible for intelligence strategy, resources, policies, and operations. Our special agents and intelligence analysts train together at the FBI Academy, where they engage in joint training exercises and take core courses together, prior to their field deployments. As a result, they are better prepared to integrate their skill sets in the field. To build on the Quantico-based training, the FBI now offers significant follow-on training courses that integrate special agents, intelligence analysts, staff operations specialists, and language analysts. Additionally, our training forums for executives and front-line supervisors continue to ensure our leaders are informed about our latest intelligence capabilities and allow them to share best practices for achieving intelligence integration.

Counterintelligence

The nation faces a rising threat, both traditional and asymmetric, from hostile foreign intelligence services and their proxies. Traditional espionage, often characterized by career foreign intelligence officers acting as diplomats or ordinary citizens, and asymmetric espionage, often carried out by students, researchers, or business people operating front companies, are prevalent. Foreign intelligence services not only seek our nation’s state and military secrets, but they also target commercial trade secrets, research and development, and intellectual property, as well as insider information from the federal government, U.S. corporations, and American universities. Foreign intelligence services and other state-directed actors continue to employ more creative and more sophisticated methods to steal innovative technology, critical research and development data, and intellectual property in an effort to erode America’s economic leading edge. These illicit activities pose a significant threat to national security and continue to be a priority and focus of the FBI.

Our counterintelligence efforts are also aimed at the growing scope of the insider threat—that is, when trusted employees and contractors use their legitimate access to steal secrets for personal benefit or to benefit a company or another country. This threat has been exacerbated in recent years as businesses have become more global and increasingly exposed to foreign intelligence organizations. We are also investigating media leaks, when federal employees and contractors violate the law and betray the nation’s trust by selectively leaking classified information, sometimes mixed with disinformation, to manipulate the public and advance their personal agendas.

In addition to the insider threat, the FBI has focused on a coordinated approach across divisions that leverages both our classic counterespionage tradecraft and our technical expertise to more effectively identify, pursue, and defeat hostile state actors using cyber means to penetrate or disrupt U.S. government entities or economic interests.

We have also continued our engagement with the private sector and academia on the threat of economic espionage and technology transfer. We have addressed national business and academic groups, met with individual companies and university leaders, worked with sector-specific groups, and encouraged all field offices to maintain close, ongoing liaison with entities across the country that have valuable technology, data, or other assets.

Cyber

Virtually every national security and criminal threat the FBI faces is cyber-based or technologically facilitated. We face sophisticated cyber threats from foreign intelligence agencies, hackers for hire, organized crime syndicates, and terrorists. These threat actors constantly seek to access and steal our nation’s classified information, trade secrets, technology, and ideas—all of which are of great importance to U.S. national and economic security. They seek to strike our critical infrastructure and to harm our economy.

As the committee is well aware, the frequency and impact of cyber attacks on our nation’s private sector and government networks have increased dramatically in the past decade and are expected to continue to grow. We continue to see an increase in the scale and scope of reporting on malicious cyber activity, which can be measured by the amount of corporate data stolen or deleted, personally identifiable information compromised, or remediation costs incurred by U.S. victims. Within the FBI, we are focused on the most dangerous malicious cyber activity: high-level intrusions by state-sponsored hackers and global organized crime syndicates, and other technically sophisticated attacks.

Botnets used by cyber criminals are one example of this trend and have been responsible for billions of dollars in damages over the past several years. The widespread availability of malicious software (malware) that can create botnets allows individuals to leverage the combined bandwidth of thousands, if not millions, of compromised computers, servers, or network-ready devices to conduct attacks. Cyber threat actors have also increasingly conducted ransomware attacks against U.S. systems by encrypting data and rendering systems unusable, thereby victimizing individuals, businesses, and even public health providers.

Cyber threats are not only increasing in scope and scale, but are also becoming increasingly difficult to investigate. Cyber criminals often operate through online forums, selling illicit goods and services, including tools that can be used to facilitate cyber attacks. These criminals have also increased the sophistication of their schemes, which are more difficult to detect and more resilient. Additionally, many cyber actors are based abroad or obfuscate their identities by using foreign infrastructure, making coordination with international law enforcement partners essential.

The FBI is engaged in a myriad of efforts to combat cyber threats, from improving threat identification and information sharing inside and outside of government, to developing and retaining new talent, to examining the way we operate to disrupt and defeat these threats. We take all potential threats to public and private sector systems seriously and will continue to investigate and hold accountable those who pose a threat in cyberspace.

Going Dark

“Going Dark” describes circumstances where law enforcement is unable to obtain critical information in an intelligible and usable form (or at all), despite having a court order authorizing the government’s access to that information. As a technical matter, this challenge extends across several products and platforms, whether it involves “data at rest,” such as on a physical device, or “data in motion,” as with real-time electronic communications.

Going Dark remains a serious problem for the FBI across our investigative areas, from counterterrorism to child exploitation, gangs, drug traffickers, and white-collar crimes. The inability to access evidence or intelligence despite the lawful authority to do so significantly impacts the FBI’s ability to identify, investigate, prosecute, or otherwise deter criminals, terrorists, and other offenders.

Our federal, state, local, and international law enforcement partners face similar challenges in maintaining access to electronic evidence despite having legal authorization to do so. Indeed, within the last few months, the nation’s sheriffs called for “the U.S. Congress to exercise leadership in the nation’s public safety interest” to address the Going Dark challenge. Several of our closest law enforcement and intelligence partners (the United Kingdom, Canada, Australia, and New Zealand) similarly described this as a “pressing international concern that requires urgent, sustained attention and informed discussion.”

The FBI recognizes the complexity of the issue, but we believe there is a tremendous opportunity for responsible stakeholders to work together to find sustainable solutions that preserve cybersecurity and promote public safety.

Weapons of Mass Destruction

The FBI, along with its U.S. government partners, is committed to countering the weapons of mass destruction (WMD) threat (e.g., chemical, biological, radiological, nuclear, and explosives) by preventing terrorist groups and lone offenders from acquiring these materials either domestically or internationally through preventing nation state proliferation of WMD sensitive technologies and expertise.

Domestically, the FBI’s counter-WMD threat program, in collaboration with our U.S. government partners, prepares for and responds to WMD threats (e.g., investigate, detect, search, locate, diagnose, stabilize, and render safe WMD threats). Internationally, the FBI, in cooperation with our U.S. partners, provides investigative and technical assistance as well as capacity-building programs to enhance our foreign partners’ ability to detect, investigate, and prosecute WMD threats.

Countering Unmanned Aircraft Systems (UAS)

The threat from unmanned aircraft systems in the U.S. is steadily escalating. While we are working with FAA and other agencies to safely integrate UAS into the national airspace system, the FBI assesses with high confidence that terrorists overseas will continue to use small UAS to advance nefarious activities and exploit physical protective measures. While there has been no successful malicious use of UAS by terrorists in the United States to date, terrorist groups could easily export their battlefield experiences to use weaponized UAS outside the conflict zone. We have seen repeated and dedicated efforts to use UAS as weapons, not only by terrorist organizations, such as ISIS and al Qaeda, but also by transnational criminal organizations such as MS-13 and Mexican drug cartels, which may encourage use of this technique in the U.S. to conduct attacks. The FBI assesses that, given their retail availability, lack of verified identification requirement to procure, general ease of use, and prior use overseas, UAS will be used to facilitate an attack in the United States against a vulnerable target, such as a mass gathering. This risk has only increased in light of the publicity associated with the apparent attempted assassination of Venezuelan President Maduro using explosives-laden UAS.

The FBI recently disrupted a plan in the United States to use drones to attack the Pentagon and the Capitol building. On November 1, 2012, Rezwan Ferdaus was sentenced to 17 years in federal prison for attempting to conduct a terrorist attack and providing support to al Qaeda. Ferdaus, who held a degree in physics, obtained multiple jet-powered, remote-controlled model aircraft capable of flying 100 miles per hour. He planned to fill the aircraft with explosives and crash them into the Pentagon and the Capitol using a GPS system in each aircraft. Fortunately, the FBI interrupted the plot after learning of it and deploying an undercover agent.

Last week, thanks in large part to the outstanding leadership of this Committee, the FBI and DOJ received new authorities to deal with the UAS threat in the FAA Reauthorization Act of 2018. That legislation enables the FBI to counter UAS threats while safeguarding privacy and promoting the safety and efficiency of the national airspace system. The FBI is grateful to the chairman, the ranking member, and other members of this committee for championing this critical authority.

Conclusion

Finally, the strength of any organization is its people. The threats we face as a nation have never been greater or more diverse and the expectations placed on the Bureau have never been higher. Our fellow citizens look to the FBI to protect the United States from all of those threats, and the men and women of the FBI continue to meet and exceed those expectations, every day. I want to thank them for their dedicated service.