Entries Tagged "China"

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The Case of the Stolen BlackBerry and the Awesome Chinese Hacking Skills

A high-level British government employee had his BlackBerry stolen by Chinese intelligence:

The aide, a senior Downing Street adviser who was with the prime minister on a trip to China earlier this year, had his BlackBerry phone stolen after being picked up by a Chinese woman who had approached him in a Shanghai hotel disco.

The aide agreed to return to his hotel with the woman. He reported the BlackBerry missing the next morning.

That can’t look good on your annual employee review.

But it’s this part of the article that has me confused:

Experts say that even if the aide’s device did not contain anything top secret, it might enable a hostile intelligence service to hack into the Downing Street server, potentially gaining access to No 10’s e-mail traffic and text messages.

Um, what? I assume the IT department just turned off the guy’s password. Was this nonsense peddled to the press by the UK government, or is some “expert” trying to sell us something? The article doesn’t say.

EDITED TO ADD (7/22): The first commenter makes a good point, which I didn’t think of. The article says that it’s Chinese intelligence:

A senior official said yesterday that the incident had all the hallmarks of a suspected honeytrap by Chinese intelligence.

But Chinese intelligence would be far more likely to clone the BlackBerry and then return it. Much better information that way. This is much more likely to be petty theft.

EDITED TO ADD (7/23): The more I think about this story, the less sense it makes. If you’re a Chinese intelligence officer and you manage to get an aide to the British Prime Minister to have sex with one of your agents, you’re not going to immediately burn him by stealing his BlackBerry. That’s just stupid.

Posted on July 22, 2008 at 10:05 AM • View Comments

Chinese Cyber Attacks

The popular media conception is that there is a coordinated attempt by the Chinese government to hack into U.S. computers—military, government corporate—and steal secrets. The truth is a lot more complicated.

There certainly is a lot of hacking coming out of China. Any company that does security monitoring sees it all the time.

These hacker groups seem not to be working for the Chinese government. They don’t seem to be coordinated by the Chinese military. They’re basically young, male, patriotic Chinese citizens, trying to demonstrate that they’re just as good as everyone else. As well as the American networks the media likes to talk about, their targets also include pro-Tibet, pro-Taiwan, Falun Gong and pro-Uyghur sites.

The hackers are in this for two reasons: fame and glory, and an attempt to make a living. The fame and glory comes from their nationalistic goals. Some of these hackers are heroes in China. They’re upholding the country’s honor against both anti-Chinese forces like the pro-Tibet movement and larger forces like the United States.

And the money comes from several sources. The groups sell owned computers, malware services, and data they steal on the black market. They sell hacker tools and videos to others wanting to play. They even sell T-shirts, hats and other merchandise on their Web sites.

This is not to say that the Chinese military ignores the hacker groups within their country. Certainly the Chinese government knows the leaders of the hacker movement and chooses to look the other way. They probably buy stolen intelligence from these hackers. They probably recruit for their own organizations from this self-selecting pool of experienced hacking experts. They certainly learn from the hackers.

And some of the hackers are good. Over the years, they have become more sophisticated in both tools and techniques. They’re stealthy. They do good network reconnaissance. My guess is what the Pentagon thinks is the problem is only a small percentage of the actual problem.

And they discover their own vulnerabilities. Earlier this year, one security company noticed a unique attack against a pro-Tibet organization. That same attack was also used two weeks earlier against a large multinational defense contractor.

They also hoard vulnerabilities. During the 1999 conflict over the two-states theory conflict, in a heated exchange with a group of Taiwanese hackers, one Chinese group threatened to unleash multiple stockpiled worms at once. There was no reason to disbelieve this threat.

If anything, the fact that these groups aren’t being run by the Chinese government makes the problem worse. Without central political coordination, they’re likely to take more risks, do more stupid things and generally ignore the political fallout of their actions.

In this regard, they’re more like a non-state actor.

So while I’m perfectly happy that the U.S. government is using the threat of Chinese hacking as an impetus to get their own cybersecurity in order, and I hope they succeed, I also hope that the U.S. government recognizes that these groups are not acting under the direction of the Chinese military and doesn’t treat their actions as officially approved by the Chinese government.

This essay originally appeared on the Discovery Channel website.

EDITED TO ADD (7/18): A slightly longer version of this essay appeared in Information Security magazine as part of a point/counterpoint with Marcus Ranum. His half is here.

Posted on July 14, 2008 at 7:08 AM • View Comments

Did the Chinese PLA Attack the U.S. Power Grid?

This article claims that the Chinese Peoples Liberation Army was behind, among other things, the August 2003 blackout:

Computer hackers in China, including those working on behalf of the Chinese government and military, have penetrated deeply into the information systems of U.S. companies and government agencies, stolen proprietary information from American executives in advance of their business meetings in China, and, in a few cases, gained access to electric power plants in the United States, possibly triggering two recent and widespread blackouts in Florida and the Northeast, according to U.S. government officials and computer-security experts.

One prominent expert told National Journal he believes that China’s People’s Liberation Army played a role in the power outages. Tim Bennett, the former president of the Cyber Security Industry Alliance, a leading trade group, said that U.S. intelligence officials have told him that the PLA in 2003 gained access to a network that controlled electric power systems serving the northeastern United States. The intelligence officials said that forensic analysis had confirmed the source, Bennett said. “They said that, with confidence, it had been traced back to the PLA.” These officials believe that the intrusion may have precipitated the largest blackout in North American history, which occurred in August of that year. A 9,300-square-mile area, touching Michigan, Ohio, New York, and parts of Canada, lost power; an estimated 50 million people were affected.

This is all so much nonsense I don’t even know where to begin.

I wrote about this blackout already: the computer failures were caused by Blaster.

The “Interim Report: Causes of the August 14th Blackout in the United States and Canada,” published in November and based on detailed research by a panel of government and industry officials, blames the blackout on an unlucky series of failures that allowed a small problem to cascade into an enormous failure.

The Blaster worm affected more than a million computers running Windows during the days after Aug. 11. The computers controlling power generation and delivery were insulated from the Internet, and they were unaffected by Blaster. But critical to the blackout were a series of alarm failures at FirstEnergy, a power company in Ohio. The report explains that the computer hosting the control room’s “alarm and logging software” failed, along with the backup computer and several remote-control consoles. Because of these failures, FirstEnergy operators did not realize what was happening and were unable to contain the problem in time.

Simultaneously, another status computer, this one at the Midwest Independent Transmission System Operator, a regional agency that oversees power distribution, failed. According to the report, a technician tried to repair it and forgot to turn it back on when he went to lunch.

To be fair, the report does not blame Blaster for the blackout. I’m less convinced. The failure of computer after computer within the FirstEnergy network certainly could be a coincidence, but it looks to me like a malicious worm.

The rest of the National Journal article is filled with hysterics and hyperbole about Chinese hackers. I have already written an essay about this—it’ll be the next point/counterpoint between Marcus Ranum and me for Information Security—and I’ll publish it here after they publish it.

EDITED TO ADD (6/2): Wired debunked this claim pretty thoroughly:

This time, though, they’ve attached their tale to the most thoroughly investigated power incident in U.S. history.” and “It traced the root cause of the outage to the utility company FirstEnergy’s failure to trim back trees encroaching on high-voltage power lines in Ohio. When the power lines were ensnared by the trees, they tripped.

[…]

So China…using the most devious malware ever devised, arranged for trees to grow up into exactly the right power lines at precisely the right time to trigger the cascade.

Large-scale power outages are never one thing. They’re a small problem that cascades into series of ever-bigger problems. But the triggering problem were those power lines.

Posted on June 2, 2008 at 6:37 AM • View Comments

Cyber Espionage

Interesting investigative article from Business Week on Chinese cyber espionage against the U.S. government, and the government’s reaction.

When the deluge began in 2006, officials scurried to come up with software “patches,” “wraps,” and other bits of triage. The effort got serious last summer when top military brass discreetly summoned the chief executives or their representatives from the 20 largest U.S. defense contractors to the Pentagon for a “threat briefing.” BusinessWeek has learned the U.S. government has launched a classified operation called Byzantine Foothold to detect, track, and disarm intrusions on the government’s most critical networks. And President George W. Bush on Jan. 8 quietly signed an order known as the Cyber Initiative to overhaul U.S. cyber defenses, at an eventual cost in the tens of billions of dollars, and establishing 12 distinct goals, according to people briefed on its contents. One goal in particular illustrates the urgency and scope of the problem: By June all government agencies must cut the number of communication channels, or ports, through which their networks connect to the Internet from more than 4,000 to fewer than 100. On Apr. 8, Homeland Security Dept. Secretary Michael Chertoff called the President’s order a cyber security “Manhattan Project.”

It can only help for the U.S. government to get its own cybersecurity house in order.

Posted on April 28, 2008 at 6:45 AM • View Comments

Designing Processors to Support Hacking

This won best-paper award at the First USENIX Workshop on Large-Scale Exploits and Emergent Threats: “Designing and implementing malicious hardware,” by Samuel T. King, Joseph Tucek, Anthony Cozzie, Chris Grier, Weihang Jiang, and Yuanyuan Zhou.

Hidden malicious circuits provide an attacker with a stealthy attack vector. As they occupy a layer below the entire software stack, malicious circuits can bypass traditional defensive techniques. Yet current work on trojan circuits considers only simple attacks against the hardware itself, and straightforward defenses. More complex designs that attack the software are unexplored, as are the countermeasures an attacker may take to bypass proposed defenses.

We present the design and implementation of Illinois Malicious Processors (IMPs). There is a substantial design space in malicious circuitry; we show that an attacker, rather than designing one speci?c attack, can instead design hardware to support attacks. Such ?exible hardware allows powerful, general purpose attacks, while remaining surprisingly low in the amount of additional hardware. We show two such hardware designs, and implement them in a real system. Further, we show three powerful attacks using this hardware, including a login backdoor that gives an attacker complete and highlevel access to the machine. This login attack requires only 1341 additional gates: gates that can be used for other attacks as well. Malicious processors are more practical, more flexible, and harder to detect than an initial analysis would suggest.

Theoretical? Sure. But combine this with stories of counterfeit computer hardware from China, and you’ve got yourself a potentially serious problem.

Posted on April 24, 2008 at 1:52 PM • View Comments

Research on Malware Distribution

Interesting:

Among their conclusions are that the majority of malware distribution sites are hosted in China, and that 1.3% of Google searches return at least one link to a malicious site. The lead author, Niels Provos, wrote, ‘It has been over a year and a half since we started to identify web pages that infect vulnerable hosts via drive-by downloads, i.e. web pages that attempt to exploit their visitors by installing and running malware automatically. During that time we have investigated billions of URLs and found more than three million unique URLs on over 180,000 web sites automatically installing malware. During the course of our research, we have investigated not only the prevalence of drive-by downloads but also how users are being exposed to malware and how it is being distributed.'”

Draft paper, and some data.

Posted on February 26, 2008 at 6:23 AM • View Comments

Foreign Hackers Stealing American Health Care Records

What in the world is going on here?

Foreign hackers, primarily from Russia and China, are increasingly seeking to steal Americans’ health care records, according to a Department of Homeland Security analyst.

Mark Walker, who works in DHS’ Critical Infrastructure Protection Division, told a workshop audience at the National Institute of Standards and Technology that the hackers’ primary motive seems to be espionage.

Espionage? Um, how?

Walker said the hackers are seeking to exfiltrate health care data. “We don’t know why,” he added. “We want to know why.” At the same time, he said, it’s clear that “medical information can be used against us from a national security standpoint.”

How? It’s not at all clear to me.

Any health problems among the nation’s leaders would be of interest to potential enemies, he said.

This just has to be another joke.

EDITED TO ADD (3/13): More Posted on February 20, 2008 at 12:30 PM • View Comments

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Sidebar photo of Bruce Schneier by Joe MacInnis.