Category Archives: Whistleblower

Boeing Secret Deals with Iran, Skirting Sanctions

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Why Boeing kept Iran dealings under the radar

Author: Saam Borhani

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

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

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

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

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

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

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

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

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

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

 

Hillary, Pagliano and Shared Passwords?

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FBI investigating if Clinton aides shared passwords to access classified info

FNC: EXCLUSIVE: The FBI is investigating whether computer passwords were shared among Hillary Clinton’s close aides to determine how sensitive intelligence “jumped the gap” between the classified systems and Clinton’s unsecured personal server, according to an intelligence source familiar with the probe.

The source emphasized to Fox News that “if [Clinton] was allowing other people to use her passwords, that is a big problem.” The Foreign Service Officers Manual prohibits the sharing of passwords.

Such passwords are required to access each State Department network. This includes the network for highly classified intelligence — known as SCI or Sensitive Compartmented Information — and the unclassified system, known as SBU or Sensitive But Unclassified, according to former State Department employees.

Fox News was told there are several potential scenarios for how classified information got onto Clinton’s server:

  • Reading intelligence reports or briefings, and then summarizing the findings in emails sent on Clinton’s unsecured personal server.
  • Accessing the classified intelligence computer network, and then lifting sections by typing them verbatim into a device such as an iPad or BlackBerry.
  • Taking pictures of a computer screen to capture the intelligence.
  • Using a thumb drive or disk to physically move the intelligence, but this would require access to a data center. It’s unclear whether Clinton’s former IT specialist Bryan Pagliano, who as first reported by The Washington Post has reached an immunity deal with the Justice Department, or others had sufficient administrator privileges to physically transfer data.

Most of these scenarios would require a password. And all of these practices would be strictly prohibited under non-disclosure agreements signed by Clinton and others, and federal law.

It remains unclear who had access to which computers and devices used by Clinton while she was secretary of state and where exactly they were located at the time of the email correspondence. Clinton signed her NDA agreement on Jan. 22, 2009 shortly before she was sworn in as secretary of state.

The intelligence source said the ongoing FBI investigation is progressing in “fits and starts” but bureau agents have refined a list of individuals who will be questioned about their direct handling of the emails, with a focus on how classified information jumped the gap between classified systems and briefings to Clinton’s unsecured personal email account used for government business.

Fox News was told the agents involved are “not political appointees but top notch agents with decades of experience.”

A separate source said the list of individuals is relatively small — about a dozen, among them Clinton aide Jake Sullivan, who was described as “pivotal” because he forwarded so many emails to Clinton. His exchanges, now deemed to contain highly classified information, included one email which referred to human spying, or “HCS-O,” and included former Clinton aide Huma Abedin.

As Fox News first reported last year, two emails — one sent by Abedin that included classified information about the 2011 movement of Libyan troops during the revolution, and a second sent by Sullivan that contained law enforcement information about the FBI investigation in the 2012 Benghazi terrorist attack – kick-started the FBI probe.

Testifying to Congress Tuesday about encryption, FBI Director James Comey also was asked about the Clinton investigation. He responded that he is “very close personally” to the case “to ensure that we have the resources we need including people and technology and that it’s done the way the FBI tries to do all of its work: independently, competently and promptly. That’s our goal and I’m confident it’s being done that way.”

Earlier this week when she was asked if Clinton has been interviewed by the FBI, Attorney General Loretta Lynch insisted to Fox News’ Bret Baier “that no one outside of DOJ has been briefed on this or any other case. That’s not our policy and it has not happened in this matter.”

Fox News also has learned the State Department cannot touch the security clearance of top aides connected to the case without contacting the FBI, because agents plan to directly question individuals about their handling of the emails containing classified information, and they will need active clearances to be questioned.

While it is standard practice to suspend a security clearance pending the outcome of an investigation, Fox News reported Monday that  Clinton’s chief of staff at State, Cheryl Mills, who is also an attorney, maintains her top secret clearance. Mills was involved in the decisions as to which emails to keep and which to delete from the server.

At a press briefing Monday, Fox News pressed the State Department on whether this represented a double standard, or whether the clearances are in place at the direction of the FBI.

“This issue is under several reviews and investigations. I won’t speak for other agencies that may be involved in reviews and investigations,” spokesman John Kirby said. “Clearly we are going to cooperate to the degree that we need to.”

Hillary Clinton’s E-Mail Scandal Continues: Further Details Surface As Staffer Bryan Pagliano Granted Immunity In Exchange For Cooperating

Inquisitr: of Hillary Clinton’s IT staff members has been granted immunity by the U.S. federal government in exchange for breaking his silence regarding his role in setting up and managing the Democratic presidential front-runner candidate’s private e-mail server in Chappaqua, New York.

Bryan Pagliano — who first installed the network in Clinton’s home in 2009 — plans to now fully cooperate with the U.S. Department of Justice regarding the FBI’s investigation into the matter, according to the Washington Post.


In a statement to the media, Clinton campaign spokesperson Brian Fallon told the Washington Post that he was “pleased” that Pagliano would now work with investigators after previously invoking his Fifth-Amendment right to staying hush-hush before a September, 2015, Congressional panel, noting “As we have said since last summer, Secretary Clinton has been cooperating with the Department of Justice’s security inquiry.”

Many, however, see the Clinton staff member’s previous extended silence as a sign of possible incrimination.
Particularly vocal on the matter has been H.A. Goodman of the Huffington Post, who noted in a recent column that: “First, this can’t be a right-wing conspiracy because it’s President Obama’s Justice Department granting immunity… Second, immunity from what? The Justice Department won’t grant immunity… unless there’s potential criminal activity involved with an FBI investigation.”

Goodman would also note that Pagliano’s settlement to agree to testify “speaks volumes,” as “only one person set up the server that circumvented U.S. government networks.” The blame for this action, Goodman believes, falls squarely on Clinton and Pagliano.
In a previous story, the Washington Post reported that Clinton paid Pagliano as part of a “private arrangement” for the act of maintaining this private server, which she then used for years to store her official correspondences as Secretary of State. This assertion, which The Post sources to an “unnamed Clinton campaign official,” is also coupled with reports that Pagliano failed to list any of his income in his personal financial disclosures.

Clinton’s campaign responded with the spin that she hired Pagliano privately to ensure “taxpayer dollars were not spent on a private server that was shared by Clinton, her husband and their daughter as well as aides to the former president.”

The FBI’s investigation, meanwhile, remains ongoing as to what — if any — level of criminal activity occurred in Clinton’s home by storing actual classified documents on her private, non-government network. While the extent to which Clinton’s involvement in a crime will likely never be officially determined, it is known that as many as 31,380 e-mails were deleted.
According to the Washington Post, the FBI is targeting resolution in its investigation in the “coming months,” and plan to conduct many more interviews with Clinton and her senior officials as the law-enforcement agency attempts to determine the extent to which the presidential candidate is actually at fault. Specifically, officials are focusing on examining, in detail, the potential damage that Clinton’s e-mails could have caused had they been intercepted. No official indication has been given that prosecutors will convene a grand jury to subpoena this testimony and documents.

Clinton — who has been unofficially named the Democratic National Committee’s nominee-of-choice since well before any polls against her rival, Bernie Sanders, were taken — has taken care to classify the entire FBI investigation instead as a “security review.”

According to The Post’s anonymous sources, however, there is a commonly held belief that there is at least a small chance that some sort of an actual crime has been committed.

“There was wrongdoing,” noted a former senior law-enforcement official to the news outlet. “But was it criminal wrongdoing?”

FBI and Department of Justice spokespersons — in addition to Pagliano’s attorney, Mark McDougall — have declined to comment.

Report for California, What About your State?

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Golfing, tequila and spa treatments: These are the gifts given to California lawmakers in 2015

LATimes: State legislators accepted more than $892,000 in gifts last year, including foreign trips, expensive dinners, concert and sports tickets, golf games, spa treatments, Disneyland admissions and bottles of tequila and wine, according to filings released Wednesday.

Lawmakers had their expenses covered by others for educational and trade trips to France, China, Argentina, Australia, Taiwan, Singapore, Mexico and Israel.

 

In fact, travel costs dominate the gift tallies from last year with a large number of lawmakers deciding to fly overseas for conferences or policy meetings paid for entirely by influential interest groups and foundations.

The travel included 21 lawmakers who attended a conference in Maui in November at a cost of about $3,000 per person, paid for by a nonprofit group funded by oil and tobacco firms and other interests lobbying the Legislature.

The flood of gifts, especially from groups tied to interests seeking favorable treatment at the Capitol, raises red flags for ethics experts including Bob Stern, former general counsel for the Fair Political Practices Commission and a co-author of the state Political Reform Act.

“The people that make these gifts are trying to influence legislators and create goodwill, and clearly it does,” Stern said. “The average citizen doesn’t get these gifts. It’s only when you are in a position of power that you get these gifts.”

The total value of gifts is up by about $50,000 from 2014. A group with interest in promoting climate change policy helped send a large delegation of legislators led by Gov. Jerry Brown to a United Nations summit on climate change held in Paris in December.

Senate President Pro Tem Kevin de León (D-Los Angeles) had $4,077 of his travel expenses to Paris covered by the Climate Action Reserve, which advocates for solutions to climate change.

In all, De León received $30,200 in gifts, among the most of any lawmaker. Much of it was for educational trips to Japan, Mexico and Australia.

The $14,055 cost for de Leon’s Australian trip to look for drought solutions was covered by the California Foundation on the Environment and the Economy, a San Francisco think tank financed by special interests including PG&E, Shell, the State Building and Construction Trades Council and Chevron.

Claire Conlon, a spokeswoman for De León, defended both the travel and the way it is financed.

“As elected representatives of the world’s seventh-largest economy and a gateway to international trade corridors, building global relationships and studying best practices in other countries is an essential part of the job description,” she said. The funding arrangements with “respected nonprofits” mean “not a single taxpayer dollar is being spent,” she added.

De León also reported gifts of USC football tickets, bottles of tequila, meals and a tie. The disclosure forms that lawmakers must file annually do not require detailed descriptions of the gifts, so there is no way to know the brand of tequila or color of the tie.

Sen. Benjamin Allen (D-Santa Monica) reported receiving $37,900 in gifts, the most of any lawmaker, much of it to cover the cost of educational trips to China and Argentina.

“I represent a diverse coastal district with thousands of globally focused employers creating good jobs for our local economy,” Allen said. “The trips involved important public policy, environmental, economic and cultural exchanges, and I was honored to serve as part of these educational legislative delegations. Not a single taxpayer dollar was spent, and I fully reported and disclosed all such travel.”

Sen. Anthony Cannella (R-Ceres) reported $31,100 in gifts, including expenses for trips to Singapore and Australia. He also received more than $1,100 in green fees for golf paid for by supporters including the prison guards union and the California Independent Petroleum Assn.

A spa treatment, costing $396, was provided to Sen. Holly Mitchell (D-Los Angeles) by the Legislative Black Caucus.

In the Assembly, Cristina Garcia (D-Bell Gardens) received the most gifts, $33,832 worth and mostly involving overseas travel. Her $17,000 trip to Taiwan was paid for by the Taipei Economic and Cultural Foundation and her $14,348 trip to Australia with De León was covered by the California Foundation on the Environment and the Economy.

Evan Low (D-Campbell) received more than $31,000 in gifts, including a trip to China paid for by a group called U.S.-Asia Innovative Gateway, and a trip to Newport Beach paid for by the California Independent Petroleum Assn. He also received a $287 ticket to a Giants baseball game from PG&E.

Many of the gifts received by lawmakers would have been prohibited by legislation the governor vetoed two years ago. The bill would have banned nontravel gifts over $200, and barred tickets to amusement parks, professional sports games and concerts, as well as green fees for golf.

The public can read each legislator’s gift report on the FPPC website.

In vetoing the gifts bill, Brown wrote that it would be “adding further complexity without commensurate benefit. Proper disclosure, as already provided by the law, should be sufficient to guard against undue influence.”

The size of some of the gifts received last year troubled Jessica Levinson, a Loyola Law School professor and president of the Los Angeles City Ethics Commission.

“It’s fair to ask public officials to forgo gifts over certain thresholds,” she said.

A new bill proposes to outlaw travel gifts like the annual Maui convention put on by the Independent Voter Project, which received financing for the event from groups including the Western State Petroleum Assn., Shell Oil, Sempra, tobacco giant Altria, AT&T, the California Cable and Telecommunications Assn. and Koch Industries.

Many event sponsors send lobbyists or representatives to rub elbows with the elected officials poolside or on the golf course.

When Sharia/ISIS Goes Capitalist and Trading

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Islamic State ‘earning millions by playing the stock market’

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

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

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

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

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

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

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

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

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

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

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

Infographic: How Does ISIS Fund Itself? | Statista

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

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

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

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

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

**** 

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

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

Monitoring SWIFT

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

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

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

Hey Pentagon, Hiring Hackers, a Good Idea?

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

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

 

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

 

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

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

Pentagon to Establish Defense Innovation Advisory Board

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

 Google, CEO

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

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

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

Areas Deeply Familiar in Silicon Valley

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

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

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

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

**** Background

US spy chief James Clapper highlights cyber threats

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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