Entries Tagged "espionage"

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How China Uses Stolen US Personnel Data

Interesting analysis of China’s efforts to identify US spies:

By about 2010, two former CIA officials recalled, the Chinese security services had instituted a sophisticated travel intelligence program, developing databases that tracked flights and passenger lists for espionage purposes. “We looked at it very carefully,” said the former senior CIA official. China’s spies “were actively using that for counterintelligence and offensive intelligence. The capability was there and was being utilized.” China had also stepped up its hacking efforts targeting biometric and passenger data from transit hubs…

To be sure, China had stolen plenty of data before discovering how deeply infiltrated it was by U.S. intelligence agencies. However, the shake-up between 2010 and 2012 gave Beijing an impetus not only to go after bigger, riskier targets, but also to put together the infrastructure needed to process the purloined information. It was around this time, said a former senior NSA official, that Chinese intelligence agencies transitioned from merely being able to steal large datasets en masse to actually rapidly sifting through information from within them for use….

For U.S. intelligence personnel, these new capabilities made China’s successful hack of the U.S. Office of Personnel Management (OPM) that much more chilling. During the OPM breach, Chinese hackers stole detailed, often highly sensitive personnel data from 21.5 million current and former U.S. officials, their spouses, and job applicants, including health, residency, employment, fingerprint, and financial data. In some cases, details from background investigations tied to the granting of security clearances—investigations that can delve deeply into individuals’ mental health records, their sexual histories and proclivities, and whether a person’s relatives abroad may be subject to government blackmail—were stolen as well….

When paired with travel details and other purloined data, information from the OPM breach likely provided Chinese intelligence potent clues about unusual behavior patterns, biographical information, or career milestones that marked individuals as likely U.S. spies, officials say. Now, these officials feared, China could search for when suspected U.S. spies were in certain locations—and potentially also meeting secretly with their Chinese sources. China “collects bulk personal data to help it track dissidents or other perceived enemies of China around the world,” Evanina, the top U.S. counterintelligence official, said.

[..]

But after the OPM breach, anomalies began to multiply. In 2012, senior U.S. spy hunters began to puzzle over some “head-scratchers”: In a few cases, spouses of U.S. officials whose sensitive work should have been difficult to discern were being approached by Chinese and Russian intelligence operatives abroad, according to the former counterintelligence executive. In one case, Chinese operatives tried to harass and entrap a U.S. official’s wife while she accompanied her children on a school field trip to China. “The MO is that, usually at the end of the trip, the lightbulb goes on [and the foreign intelligence service identifies potential persons of interest]. But these were from day one, from the airport onward,” the former official said.

Worries about what the Chinese now knew precipitated an intelligence community-wide damage assessment surrounding the OPM and other hacks, recalled Douglas Wise, a former senior CIA official who served deputy director of the Defense Intelligence Agency from 2014 to 2016. Some worried that China might have purposefully secretly altered data in individuals’ OPM files to later use as leverage in recruitment attempts. Officials also believed that the Chinese might sift through the OPM data to try and craft the most ideal profiles for Chinese intelligence assets seeking to infiltrate the U.S. government­—since they now had granular knowledge of what the U.S. government looked for, and what it didn’t, while considering applicants for sensitive positions. U.S. intelligence agencies altered their screening procedures to anticipate new, more finely tuned Chinese attempts at human spying, Wise said.

Posted on December 24, 2020 at 6:44 AM • View Comments

Swiss-Swedish Diplomatic Row Over Crypto AG

Previously I have written about the Swedish-owned Swiss-based cryptographic hardware company: Crypto AG. It was a CIA-owned Cold War operation for decades. Today it is called Crypto International, still based in Switzerland but owned by a Swedish company.

It’s back in the news:

Late last week, Swedish Foreign Minister Ann Linde said she had canceled a meeting with her Swiss counterpart Ignazio Cassis slated for this month after Switzerland placed an export ban on Crypto International, a Swiss-based and Swedish-owned cybersecurity company.

The ban was imposed while Swiss authorities examine long-running and explosive claims that a previous incarnation of Crypto International, Crypto AG, was little more than a front for U.S. intelligence-gathering during the Cold War.

Linde said the Swiss ban was stopping “goods”—which experts suggest could include cybersecurity upgrades or other IT support needed by Swedish state agencies—from reaching Sweden.

She told public broadcaster SVT that the meeting with Cassis was “not appropriate right now until we have fully understood the Swiss actions.”

EDITED TO ADD (10/13): Lots of information on Crypto AG.

Posted on October 6, 2020 at 6:11 AM • View Comments

On Executive Order 12333

Mark Jaycox has written a long article on the US Executive Order 12333: “No Oversight, No Limits, No Worries: A Primer on Presidential Spying and Executive Order 12,333“:

Abstract: Executive Order 12,333 (“EO 12333”) is a 1980s Executive Order signed by President Ronald Reagan that, among other things, establishes an overarching policy framework for the Executive Branch’s spying powers. Although electronic surveillance programs authorized by EO 12333 generally target foreign intelligence from foreign targets, its permissive targeting standards allow for the substantial collection of Americans’ communications containing little to no foreign intelligence value. This fact alone necessitates closer inspection.

This working draft conducts such an inspection by collecting and coalescing the various declassifications, disclosures, legislative investigations, and news reports concerning EO 12333 electronic surveillance programs in order to provide a better understanding of how the Executive Branch implements the order and the surveillance programs it authorizes. The Article pays particular attention to EO 12333’s designation of the National Security Agency as primarily responsible for conducting signals intelligence, which includes the installation of malware, the analysis of internet traffic traversing the telecommunications backbone, the hacking of U.S.-based companies like Yahoo and Google, and the analysis of Americans’ communications, contact lists, text messages, geolocation data, and other information.

After exploring the electronic surveillance programs authorized by EO 12333, this Article proposes reforms to the existing policy framework, including narrowing the aperture of authorized surveillance, increasing privacy standards for the retention of data, and requiring greater transparency and accountability.

EDITED TO ADD (10/12): Good New York Times article from 1983 on EO 12333, pointing out that Congress had never limited its power. It still hasn’t.

And a related article on the FISA Court.

Posted on September 28, 2020 at 6:21 AM • View Comments

Nation-State Espionage Campaigns against Middle East Defense Contractors

Report on espionage attacks using LinkedIn as a vector for malware, with details and screenshots. They talk about “several hints suggesting a possible link” to the Lazarus group (aka North Korea), but that’s by no means definite.

As part of the initial compromise phase, the Operation In(ter)ception attackers had created fake LinkedIn accounts posing as HR representatives of well-known companies in the aerospace and defense industries. In our investigation, we’ve seen profiles impersonating Collins Aerospace (formerly Rockwell Collins) and General Dynamics, both major US corporations in the field.

Detailed report.

Posted on June 23, 2020 at 6:22 AM • View Comments

Malware in Google Apps

Interesting story of malware hidden in Google Apps. This particular campaign is tied to the government of Vietnam.

At a remote virtual version of its annual Security Analyst Summit, researchers from the Russian security firm Kaspersky today plan to present research about a hacking campaign they call PhantomLance, in which spies hid malware in the Play Store to target users in Vietnam, Bangladesh, Indonesia, and India. Unlike most of the shady apps found in Play Store malware, Kaspersky’s researchers say, PhantomLance’s hackers apparently smuggled in data-stealing apps with the aim of infecting only some hundreds of users; the spy campaign likely sent links to the malicious apps to those targets via phishing emails. “In this case, the attackers used Google Play as a trusted source,” says Kaspersky researcher Alexey Firsh. “You can deliver a link to this app, and the victim will trust it because it’s Google Play.”

[…]

The first hints of PhantomLance’s campaign focusing on Google Play came to light in July of last year. That’s when Russian security firm Dr. Web found a sample of spyware in Google’s app store that impersonated a downloader of graphic design software but in fact had the capability to steal contacts, call logs, and text messages from Android phones. Kaspersky’s researchers found a similar spyware app, impersonating a browser cache-cleaning tool called Browser Turbo, still active in Google Play in November of that year. (Google removed both malicious apps from Google Play after they were reported.) While the espionage capabilities of those apps was fairly basic, Firsh says that they both could have expanded. “What’s important is the ability to download new malicious payloads,” he says. “It could extend its features significantly.”

Kaspersky went on to find tens of other, similar spyware apps dating back to 2015 that Google had already removed from its Play Store, but which were still visible in archived mirrors of the app repository. Those apps appeared to have a Vietnamese focus, offering tools for finding nearby churches in Vietnam and Vietnamese-language news. In every case, Firsh says, the hackers had created a new account and even Github repositories for spoofed developers to make the apps appear legitimate and hide their tracks.

EDITED TO ADD (7/1): This entry has been translated into Spanish.

Posted on May 5, 2020 at 6:03 AM • View Comments

Companies that Scrape Your Email

Motherboard has a long article on apps—Edison, Slice, and Cleanfox—that spy on your email by scraping your screen, and then sell that information to others:

Some of the companies listed in the J.P. Morgan document sell data sourced from “personal inboxes,” the document adds. A spokesperson for J.P. Morgan Research, the part of the company that created the document, told Motherboard that the research “is intended for institutional clients.”

That document describes Edison as providing “consumer purchase metrics including brand loyalty, wallet share, purchase preferences, etc.” The document adds that the “source” of the data is the “Edison Email App.”

[…]

A dataset obtained by Motherboard shows what some of the information pulled from free email app users’ inboxes looks like. A spreadsheet containing data from Rakuten’s Slice, an app that scrapes a user’s inbox so they can better track packages or get their money back once a product goes down in price, contains the item that an app user bought from a specific brand, what they paid, and an unique identification code for each buyer.

Posted on February 12, 2020 at 10:26 AM • View Comments

Crypto AG Was Owned by the CIA

The Swiss cryptography firm Crypto AG sold equipment to governments and militaries around the world for decades after World War II. They were owned by the CIA:

But what none of its customers ever knew was that Crypto AG was secretly owned by the CIA in a highly classified partnership with West German intelligence. These spy agencies rigged the company’s devices so they could easily break the codes that countries used to send encrypted messages.

This isn’t really news. We have long known that Crypto AG was backdooring crypto equipment for the Americans. What is new is the formerly classified documents describing the details:

The decades-long arrangement, among the most closely guarded secrets of the Cold War, is laid bare in a classified, comprehensive CIA history of the operation obtained by The Washington Post and ZDF, a German public broadcaster, in a joint reporting project.

The account identifies the CIA officers who ran the program and the company executives entrusted to execute it. It traces the origin of the venture as well as the internal conflicts that nearly derailed it. It describes how the United States and its allies exploited other nations’ gullibility for years, taking their money and stealing their secrets.

The operation, known first by the code name “Thesaurus” and later “Rubicon,” ranks among the most audacious in CIA history.

EDITED TO ADD: More news articles. And a 1995 story on this. It’s not new news.

Posted on February 11, 2020 at 10:42 AM • View Comments

US Department of Interior Grounding All Drones

The Department of Interior is grounding all non-emergency drones due to security concerns:

The order comes amid a spate of warnings and bans at multiple government agencies, including the Department of Defense, about possible vulnerabilities in Chinese-made drone systems that could be allowing Beijing to conduct espionage. The Army banned the use of Chinese-made DJI drones three years ago following warnings from the Navy about “highly vulnerable” drone systems.

One memo drafted by the Navy & Marine Corps Small Tactical Unmanned Aircraft Systems Program Manager has warned “images, video and flight records could be uploaded to unsecured servers in other countries via live streaming.” The Navy has also warned adversaries may view video and metadata from drone systems even though the air vehicle is encrypted. The Department of Homeland Security previously warned the private sector their data may be pilfered off if they use commercial drone systems made in China.

I’m actually not that worried about this risk. Data moving across the Internet is obvious—it’s too easy for a country that tries this to get caught. I am much more worried about remote kill switches in the equipment.

Posted on January 31, 2020 at 6:46 AM • View Comments

Police Surveillance Tools from Special Services Group

Special Services Group, a company that sells surveillance tools to the FBI, DEA, ICE, and other US government agencies, has had its secret sales brochure published. Motherboard received the brochure as part of a FOIA request to the Irvine Police Department in California.

“The Tombstone Cam is our newest video concealment offering the ability to conduct remote surveillance operations from cemeteries,” one section of the Black Book reads. The device can also capture audio, its battery can last for two days, and “the Tombstone Cam is fully portable and can be easily moved from location to location as necessary,” the brochure adds. Another product is a video and audio capturing device that looks like an alarm clock, suitable for “hotel room stings,” and other cameras are designed to appear like small tree trunks and rocks, the brochure reads.

The “Shop-Vac Covert DVR Recording System” is essentially a camera and 1TB harddrive hidden inside a vacuum cleaner. “An AC power connector is available for long-term deployments, and DC power options can be connected for mobile deployments also,” the brochure reads. The description doesn’t say whether the vacuum cleaner itself works.

[…]

One of the company’s “Rapid Vehicle Deployment Kits” includes a camera hidden inside a baby car seat. “The system is fully portable, so you are not restricted to the same drop car for each mission,” the description adds.

[…]

The so-called “K-MIC In-mouth Microphone & Speaker Set” is a tiny Bluetooth device that sits on a user’s teeth and allows them to “communicate hands-free in crowded, noisy surroundings” with “near-zero visual indications,” the Black Book adds.

Other products include more traditional surveillance cameras and lenses as well as tools for surreptitiously gaining entry to buildings. The “Phantom RFID Exploitation Toolkit” lets a user clone an access card or fob, and the so-called “Shadow” product can “covertly provide the user with PIN code to an alarm panel,” the brochure reads.

The Motherboard article also reprints the scary emails Motherboard received from Special Services Group, when asked for comment. Of course, Motherboard published the information anyway.

Posted on January 10, 2020 at 8:41 AM • View Comments

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Sidebar photo of Bruce Schneier by Joe MacInnis.