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By James Bamford Last summer, cyber investigators plowing through the thousands of leaked emails from the Democratic National Committee uncovered a clue.A user named “Феликс Эдмундович” modified one of the documents using settings in the Russian language. Translated, his name was Felix Edmundovich, a pseudonym referring to Felix Edmundovich Dzerzhinsky, the chief of the Soviet Union’s first secret-police organization, the Cheka.It was one more link in the chain of evidence pointing to Russian President Vladimir Putin as the man ultimately behind the operation.During the Cold War, when Soviet intelligence was headquartered in Dzerzhinsky Square in Moscow, Putin was a KGB officer assigned to the First Chief Directorate. Its responsibilities included “active measures,” a form of political warfare that included media manipulation, propaganda and disinformation. Soviet active measures, retired KGB Major General Oleg Kalugin told Army historian Thomas Boghart, aimed to discredit the United States and “conquer world public opinion.”As the Cold War has turned into the code war, Putin recently unveiled his new, greatly enlarged spy organization: the Ministry of State Security, taking the name from Joseph Stalin’s secret service. Putin also resurrected, according to James Clapper, the U.S. director of national intelligence, some of the KGB’s old active- measures tactics. On October 7, Clapper issued a statement: “The U.S. Intelligence community is confident that the Russian government directed the recent compromises of emails from U.S. persons and institutions, including from U.S. political organizations.” Notably, however, the FBI declined to join the chorus, according to reports by the New York Times and CNBC.A week later, Vice President Joe Biden said on NBC’s Meet the Press that "we're sending a message" to Putin and "it will be at the time of our choosing, and under the circumstances that will have the greatest impact." When asked if the American public would know a message was sent, Biden replied, "Hope not." Meanwhile, the CIA was asked, according to an NBC report on October 14, “to deliver options to the White House for a wide-ranging ‘clandestine’ cyber operation designed to harass and ‘embarrass’ the Kremlin leadership.”But as both sides begin arming their cyberweapons, it is critical for the public to be confident that the evidence is really there, and to understand the potential consequences of a tit-for-tat cyberwar escalating into a real war. 

This is a prospect that has long worried Richard Clarke, the former White House cyber czar under President George W. Bush. “It’s highly likely that any war that began as a cyberwar,” Clarke told me last year, “would ultimately end up being a conventional war, where the United States was engaged with bombers and missiles.”The problem with attempting to draw a straight line from the Kremlin to the Clinton campaign is the number of variables that get in the way. For one, there is little doubt about Russian cyber fingerprints in various U.S. campaign activities. Moscow, like Washington, has long spied on such matters. The United States, for example, inserted malware in the recent Mexican election campaign. The question isn’t whether Russia spied on the U.S. presidential election, it’s whether it released the election emails.Then there’s the role of Guccifer 2.0, the person or persons supplying WikiLeaks and other organizations with many of the pilfered emails. Is this a Russian agent? A free agent? A cybercriminal? A combination, or some other entity? No one knows.There is also the problem of groupthink that led to the war in Iraq. For example, just as the National Security Agency, the Central Intelligence Agency and the rest of the intelligence establishment are convinced Putin is behind the attacks, they also believed it was a slam-dunk that Saddam Hussein had a trove of weapons of mass destruction. Consider as well the speed of the political-hacking investigation, followed by a lack of skepticism, culminating in a rush to judgment. After the Democratic committee discovered the potential hack last spring, it called in the cybersecurity firm CrowdStrike in May to analyze the problem.

CrowdStrike took just a month or so before it conclusively determined that Russia’s FSB, the successor to the KGB, and the Russian military intelligence organization, GRU, were behind it. Most of the other major cybersecurity firms quickly fell in line and agreed. By October, the intelligence community made it unanimous. That speed and certainty contrasts sharply with a previous suspected Russian hack in 2010, when the target was the Nasdaq stock market. According to an extensive investigation by Bloomberg Businessweek in 2014, the NSA and FBI made numerous mistakes over many months that stretched to nearly a year. “After months of work,” the article said, “there were still basic disagreements in different parts of government over who was behind the incident and why.”  There was no consensus­, with just a 70 percent certainty that the hack was a cybercrime. Months later, this determination was revised again: It was just a Russian attempt to spy on the exchange in order to design its own. The federal agents also considered the possibility that the Nasdaq snooping was not connected to the Kremlin. Instead, “someone in the FSB could have been running a for-profit operation on the side, or perhaps sold the malware to a criminal hacking group.” Again, that’s why it’s necessary to better understand the role of Guccifer 2.0 in releasing the Democratic National Committee and Clinton campaign emails before launching any cyberweapons.

If anyone in the United States Senate had any doubts that the proposed Cyber Information Sharing Act (CISA) was universally hated by a range of civil society groups, a literal blizzard of faxes should’ve cleared up the issue by now. What’s not getting attention is a CISA “alternative” introduced last week by Sens. Mark Warner (D-Va) and Susan Collins (R-Me). Dubbed the “FISMA Reform Act,” the authors make the following claims about the bill:  This legislation would allow the Secretary of Homeland Security to operate intrusion detection and prevention capabilities on all federal agencies on the .gov domain. The bipartisan bill would also direct the Secretary of Homeland Security to conduct risk assessments of any network within the government domain. The bill would allow the Secretary of Homeland Security to operate defensive countermeasures on these networks once a cyber threat has been detected. The legislation would strengthen and streamline the authority Congress gave to DHS last year to issue binding operational directives to federal agencies, especially to respond to substantial cyber security threats in emergency circumstances.

The bill would require the Office of Management and Budget to report to Congress annually on the extent to which OMB has exercised its existing authority to enforce government wide cyber security standards. On the surface, it actually sounds like a rational response to the disastrous OPM hack. Unfortunately, the Warner-Collins bill has some vague or problematic language and non-existent definitions that make it potentially just as dangerous for data security and privacy as CISA. The bill would allow the Secretary of Homeland Security to carry out cyber security activities “in conjunction with other agencies and the private sector” [for] “assessing and fostering the development of information security technologies and capabilities for use across multiple agencies.” While the phrase “information sharing” is not present in this subsection, “security technologies and capabilities” is more than broad — and vague — enough to allow it.

The bill would also allow the secretary to “acquire, intercept, retain, use, and disclose communications and other system traffic that are transiting to or from or stored on agency information systems and deploy countermeasures with regard to the communications and system traffic.”

Activists worried about online privacy are sending Congress a message with some old-school technology: They're sending faxes -- more than 6.2 million, they claim -- to express opposition to the Cybersecurity Information Sharing Act (CISA).Why faxes? "Congress is stuck in 1984 and doesn't understand modern technology," according to the campaign Fax Big Brother. The week-long campaign was organized by the nonpartisan Electronic Frontier Foundation, the group Access and Fight for the Future, the activist group behind the major Internet protests that helped derail a pair of anti-piracy bills in 2012. It also has the backing of a dozen groups like the ACLU, the American Library Association, National Association of Criminal Defense Lawyers and others.

CISA aims to facilitate information sharing regarding cyberthreats between the government and the private sector. The bill gained more attention following the massive hack in which the records of nearly 22 million people were stolen from government computers."The ability to easily and quickly share cyber attack information, along with ways to counter attacks, is a key method to stop them from happening in the first place," Sen. Dianne Feinstein, D-California, who helped introduce CISA, said in a statement after the hack. Senate leadership had planned to vote on CISA this week before leaving for its August recess. However, the bill may be sidelined for the time being as the Republican-led Senate puts precedent on a legislative effort to defund Planned Parenthood.Even as the bill was put on the backburner, the grassroots campaign to stop it gained steam. Fight for the Future started sending faxes to all 100 Senate offices on Monday, but the campaign really took off after it garnered attention on the website Reddit and on social media. The faxed messages are generated by Internet users who visit faxbigbrother.com or stopcyberspying.com -- or who simply send a message via Twitter with the hashtag #faxbigbrother. To send all those faxes, Fight for the Future set up a dedicated server and a dozen phone lines and modems they say are capable of sending tens of thousands of faxes a day.

Fight for the Future told CBS News that it has so many faxes queued up at this point, that it may take months for Senate offices to receive them all, though the group is working on scaling up its capability to send them faster. They're also limited by the speed at which Senate offices can receive them.

Senate Majority Whip John Cornyn (R-Texas) on Tuesday said the upper chamber is unlikely to move on a stalled cybersecurity bill before the August recess.Senate Republican leaders, including Cornyn, had been angling to get the bill — known as the Cybersecurity Information Sharing Act (CISA) — to the floor this month.ADVERTISEMENTBut Cornyn said that there is simply too much of a time crunch in the remaining legislative days to get to the measure, intended to boost the public-private exchange of data on hackers.  “I’m sad to say I don’t think that’s going to happen,” he told reporters off the Senate floor. “The timing of this is unfortunate.”“I think we’re just running out time,” he added.An aide for Senate Majority Leader Mitch McConnell (R-Ky.) said he had not committed to a specific schedule after the upper chamber wraps up work in the coming days on a highway funding bill.Cornyn said Senate leadership will look to move on the bill sometime after the legislature returns in September from its month-long break.

The move would delay yet again what’s expected to be a bruising floor fight about government surveillance and digital privacy rights.“[CISA] needs a lot of work,” Sen. Patrick Leahy (D-Vt.), who currently opposes the bill, told The Hill on Tuesday. “And when it comes up, there’s going to have to be a lot of amendments otherwise it won’t pass.”Despite industry support, broad bipartisan backing, and potentially even White House support, CISA has been mired in the Senate for months over privacy concerns.Civil liberties advocates worry the bill would create another venue for the government’s intelligence wing to collect sensitive data on Americans only months after Congress voted to rein in surveillance powers.But industry groups and many lawmakers insist a bolstered data exchange is necessary to better understand and counter the growing cyber threat. Inaction will leave government and commercial networks exposed to increasingly dangerous hackers, they say.Sen. Ron Wyden (D-Ore.), who has been leading the chorus opposing the bill, rejoiced Tuesday after hearing of the likely delay.

“I really want to commend the advocates for the tremendous grassroots effort to highlight the fact that this bill was badly flawed from a privacy standpoint,” he told The Hill.Digital rights and privacy groups are blanketing senators’ offices this week with faxes and letters in an attempt to raise awareness of bill’s flaws.“Our side has picked up an enormous amount of support,” Wyden said.Wyden was the only senator to vote against CISA in the Senate Intelligence Committee. The panel approved the measure in March by a 14-1 vote and it looked like CISA was barrelling toward the Senate floor.After the House easily passed its companion pieces of legislation, CISA’s odds only seemed better.But the measure got tied up in the vicious debate over the National Security Agency's (NSA) spying powers that played out throughout April and May.“It’s like a number of these issues, in the committee the vote was 14-1, everyone says, ‘oh, Ron Wyden opposes another bipartisan bill,’” Wyden said Tuesday. “And I said, ‘People are going to see that this is a badly flawed bill.’”

Apparent National Security Agency (NSA) malware has been used in a global cyber-attack, including on British hospitals, in what whistleblower Edward Snowden described as the repercussion of the NSA’s reckless decision to build the tools. “Despite warnings, @NSAGov built dangerous attack tools that could target Western software. Today we see the cost,” Snowden tweeted Friday. At least two hospitals in London were forced to shut down and stop admitting patients after being attacked by the malware, which operates by locking out the user, encrypting data, and demanding a ransom to release it. The attacks hit dozens of other hospitals, ambulance operators, and doctors’ offices as well.

The Blackpool Gazette in the northwest reported that medical staff had resorted to using pen and paper when phone and computer systems shut down. Elsewhere, journalist Ollie Cowan tweeted a photo of ambulances “backed up” at Southport Hospital as the staff attempted to cope with the crisis.

Other disruptions were reported in at least 74 countries, including Russia, Spain, Turkey, and Japan, and the number is “growing fast,” according to Kaspersky Lab chief Costin Raiu. Security architect Kevin Beau said it was spreading into the U.S. as well. The malware, which Microsoft tested briefly earlier this year, was leaked by a group calling itself the Shadow Brokers, which has been releasing NSA hacking tools online since last year, the New York Times reports. Times journalists Dan Bilefsky and Nicole Perlroth wrote: Microsoft rolled out a patch for the vulnerability in March, but hackers apparently took advantage of the fact that vulnerable targets—particularly hospitals—had yet to update their systems. The malware was circulated by email. Targets were sent an encrypted, compressed file that, once loaded, allowed the ransomware to infiltrate its targets. Reuters reported that the National Health Service (NHS), England’s public health system, was warned about possible hacking earlier in the day, but that by then it was already too late.

When Israeli Prime Minister Benjamin Netanyahu met with Google chairman Eric Schmidt on Tuesday afternoon, he boasted about Israel’s “robust hi-tech and cyber industries.” According to The Jerusalem Post, “Netanyahu also noted that ‘Israel was making great efforts to diversify the markets with which it is trading in the technological field.'” Just how diversified and developed Israeli hi-tech innovation has become was revealed the very next morning, when the Russian cyber-security firm Kaspersky Labs, which claims more than 400 million users internationally, announced that sophisticated spyware with the hallmarks of Israeli origin (although no country was explicitly identified) had targeted three European hotels that had been venues for negotiations over Iran’s nuclear program.

Wednesday’s Wall Street Journal, one of the first news sources to break the story, reported that Kaspersky itself had been hacked by malware whose code was remarkably similar to that of a virus attributed to Israel. Code-named “Duqu” because it used the letters DQ in the names of the files it created, the malware had first been detected in 2011. On Thursday, Symantec, another cyber-security firm, announced it too had discovered Duqu 2 on its global network, striking undisclosed telecommunication sites in Europe, North Africa, Hong Kong, and  Southeast Asia. It said that Duqu 2 is much more difficult to detect that its predecessor because it lives exclusively in the memory of the computers it infects, rather than writing files to a drive or disk. The original Duqu shared coding with — and was written on the same platform as — Stuxnet, the computer worm  that partially disabled enrichment centrifuges in Iranian nuclear power plants, according to a 2012 report in The New York Times. Intelligence and military experts said that Stuxnet was first tested at Dimona, a nuclear-reactor complex in the Negev desert that houses Israel’s own clandestine nuclear weapons program. While Stuxnet is widely believed to have been a joint Israeli-U.S. operation, Israel seems to have developed and implemented Duqu on its own.

Coding of the spyware that targeted two Swiss hotels and one in Vienna—both sites where talks were held between the P5+1 and Iran—so closely resembled that of Duqu that Kaspersky has dubbed it “Duqu 2.” A Kaspersky report contends that the new and improved Duqu would have been almost impossible to create without access to the original Duqu code. Duqu 2’s one hundred “modules” enabled the cyber attackers to commandeer infected computers, compress video feeds  (including those from hotel surveillance cameras), monitor and disrupt telephone service and Wi-Fi, and steal electronic files. The hackers’ penetration of computers used by the front desk would have allowed them to determine the room numbers of negotiators and delegation members. Duqu 2 also gave the hackers the ability to operate two-way microphones in the hotels’ elevators and control their alarm systems.

The UK National Crime Agency arrested 56 suspected hackers, including one 23-year-old male who allegedly attempted to hack his way into the U.S.’ Department of Defense in 2014. Not attempting to minimize the potential risks of hacking but how much does cyber-crime actually cost, what are the risks and what about those who hack the data of billions of internet users per day to, allegedly, “keep all of us safe?”

Besides the 23-year-old who allegedly attempted to hack his way into the a U.S. Department of Defense site, the other detainees allegedly were members of the hacking collectives Lizard Squad and D33DS which are being accused of fraud, money laundering and Denial of Service and Distributed Denial of Service (DOS & DDOS) attacks.  D33DS stands accused of having stolen data of some 450,000 Yahoo users. The arrests followed the recent announcement about the so-called FREAK security vulnerability that was leaving thousands of SSL sites unprotected. The arrest of the 56 hackers in the UK was reported as the National Crime Agency’s way of “sending a clear message” to the hacker community.

The U.S. DoD’s cyber-security functioned, obviously. A recent article by Benjamin Dean entitled “Hard Evidence: How much is cybercrime really costing us” suggests that the money spent on cyber-security per year is disproportional to the harm that is being caused by cyber-crime. Dean, who is a Fellow for Internet Governance and Cyber-security at the School of International and Public Affairs at Columbia University would conclude that: There are numerous competing budgetary priorities at any one time and limited funds to spend on meeting all these needs. How much money does it make sense to invest in bolstering cybersecurity, relative to the losses? …In the hysteria created in the wake of the hacks of 2014, we risk making the wrong choice simply because we don’t know what the current sums of money are being spent on.

Military planners should not anticipate that the United States will ever dominate cyberspace, the Joint Chiefs of Staff said in a new doctrinal publication. The kind of supremacy that might be achievable in other domains is not a realistic option in cyber operations. “Permanent global cyberspace superiority is not possible due to the complexity of cyberspace,” the DoD publication said. In fact, “Even local superiority may be impractical due to the way IT [information technology] is implemented; the fact US and other national governments do not directly control large, privately owned portions of cyberspace; the broad array of state and non-state actors; the low cost of entry; and the rapid and unpredictable proliferation of technology.” Nevertheless, the military has to make do under all circumstances. “Commanders should be prepared to conduct operations under degraded conditions in cyberspace.” This sober assessment appeared in a new edition of Joint Publication 3-12, Cyberspace Operations, dated June 8, 2018. (The 100-page document updates and replaces a 70-page version from 2013.) The updated DoD doctrine presents a cyber concept of operations, describes the organization of cyber forces, outlines areas of responsibility, and defines limits on military action in cyberspace, including legal limits.

The new cyber doctrine reiterates the importance and the difficulty of properly attributing cyber attacks against the US to their source. “The ability to hide the sponsor and/or the threat behind a particular malicious effect in cyberspace makes it difficult to determine how, when, and where to respond,” the document said. “The design of the Internet lends itself to anonymity and, combined with applications intended to hide the identity of users, attribution will continue to be a challenge for the foreseeable future.”

The National Security Agency and its British counterpart, Government Communications Headquarters, have worked to subvert anti-virus and other security software in order to track users and infiltrate networks, according to documents from NSA whistleblower Edward Snowden. The spy agencies have reverse engineered software products, sometimes under questionable legal authority, and monitored web and email traffic in order to discreetly thwart anti-virus software and obtain intelligence from companies about security software and users of such software. One security software maker repeatedly singled out in the documents is Moscow-based Kaspersky Lab, which has a holding registered in the U.K., claims more than 270,000 corporate clients, and says it protects more than 400 million people with its products. British spies aimed to thwart Kaspersky software in part through a technique known as software reverse engineering, or SRE, according to a top-secret warrant renewal request. The NSA has also studied Kaspersky Lab’s software for weaknesses, obtaining sensitive customer information by monitoring communications between the software and Kaspersky servers, according to a draft top-secret report. The U.S. spy agency also appears to have examined emails inbound to security software companies flagging new viruses and vulnerabilities.

The efforts to compromise security software were of particular importance because such software is relied upon to defend against an array of digital threats and is typically more trusted by the operating system than other applications, running with elevated privileges that allow more vectors for surveillance and attack. Spy agencies seem to be engaged in a digital game of cat and mouse with anti-virus software companies; the U.S. and U.K. have aggressively probed for weaknesses in software deployed by the companies, which have themselves exposed sophisticated state-sponsored malware.

The requested warrant, provided under Section 5 of the U.K.’s 1994 Intelligence Services Act, must be renewed by a government minister every six months. The document published today is a renewal request for a warrant valid from July 7, 2008 until January 7, 2009. The request seeks authorization for GCHQ activities that “involve modifying commercially available software to enable interception, decryption and other related tasks, or ‘reverse engineering’ software.”

Facebook teamed up with several corporate “friends” to adapt Facebook’s in-house software to identify cyber threats and their source with other corporations. Countering cyber threats sounds positive while there are serious questions about transparency when smaller, independent media fall victim to major corporation’s unwillingness to reveal the source of attacks resulted in websites being closed for hours or days. Transparency, yes, but for whom? Among the companies Facebook is teaming up with are Printerest, Tumblr, Twitter, Yahoo, Drpbox and Bit.ly, reports Susanne Posel at Occupy Corporatism. The stated goal of “Threat Exchange” is to locate malware, the source domains, the IP addresses which are involved as well as the nature of the malware itself.

While the platform may be useful for major corporations, who can afford buying the privilege to join the club, the initiative does little to nothing to protect smaller, independent media from being targeted with impunity. The development prompts the question “Cyber security for whom?” The question is especially pertinent because identifying a site as containing malware, whether it is correct or not, will result in the site being added to Google’s so-called “Safe Browsing List”.

An article written by nsnbc editor-in-chief Christof Lehmann entitled “Censorship Alert: The Alternative Media are getting harassed by the NSA” provides several examples which raise serious questions about the lack of transparency when independent media demand information about either real or alleged malware content on their media’s websites. An alleged malware content in a java script that had been inserted via the third-party advertising company MadAdsMedia resulted in the nsnbc website being closed down and added to Google’s Safe Browsing list. The response to nsnbc’s request to send detailed information about the alleged malware and most importantly, about the source, was rejected. MadAdsMedia’s response to a renewed request was to stop serving advertisements to nsnbc from one day to the other, stating that nsnbc could contact another company, YieldSelect, which is run by the same company. Shell Games? SiteLock, who partners with most western-based web hosting providers, including BlueHost, Hostgator and many others contacted nsnbc warning about an alleged malware threat. SiteLock refused to provide detailed information.

HERE WAS A SIMPLE AIM at the heart of the top-secret program: Record the website browsing habits of “every visible user on the Internet.” Before long, billions of digital records about ordinary people’s online activities were being stored every day. Among them were details cataloging visits to porn, social media and news websites, search engines, chat forums, and blogs. The mass surveillance operation — code-named KARMA POLICE — was launched by British spies about seven years ago without any public debate or scrutiny. It was just one part of a giant global Internet spying apparatus built by the United Kingdom’s electronic eavesdropping agency, Government Communications Headquarters, or GCHQ. The revelations about the scope of the British agency’s surveillance are contained in documents obtained by The Intercept from National Security Agency whistleblower Edward Snowden. Previous reports based on the leaked files have exposed how GCHQ taps into Internet cables to monitor communications on a vast scale, but many details about what happens to the data after it has been vacuumed up have remained unclear.

Amid a renewed push from the U.K. government for more surveillance powers, more than two dozen documents being disclosed today by The Intercept reveal for the first time several major strands of GCHQ’s existing electronic eavesdropping capabilities.

The surveillance is underpinned by an opaque legal regime that has authorized GCHQ to sift through huge archives of metadata about the private phone calls, emails and Internet browsing logs of Brits, Americans, and any other citizens — all without a court order or judicial warrant

NSO Group, an Israeli vendor of “lawful” hacking tools designed to infect a target’s phone with spyware, is regarded by many as a bad actor. The group claims to be shocked when its products are misused, as they have been in Mexico, Saudi Arabia and the United Arab Emirates. One incident might be excusable, but the group’s continued enabling of misbehavior has resulted in well-earned enmity. Recently, Facebook struck back. NSO Group deployed a weaponized exploit for Facebook’s WhatsApp messenger, integrated it into its Pegasus malcode system, and offered it to its customers (a mix of legitimate government agencies and nefarious government actors) interested in hacking WhatsApp users beginning in April. This was a particularly powerful exploit because it required no user interaction and the only sign of the exploit a user might discover would be a series of “missed calls” received on the user’s phone. Facebook patched the vulnerability on May 13, blocking the NSO campaign. Facebook wasn’t satisfied with simply closing the vulnerability. In cooperation with CitizenLab, Facebook identified more than 100 incidents in which NSO Group’s WhatsApp exploit appeared to target human rights activists and journalists. In total, Facebook and CitizenLab identified 1,400 targets (which apparently also included government officials in U.S. allied governments). They then filed a federal lawsuit against NSO Group, closed NSO Group member accounts, and, most damaging of all to NSO’s customers, sent a notice to all identified victims alerting them of the attack. This meant that all targets, both dissidents and drug lords alike, were notified of this surveillance. The lawsuit will be a case to watch. Facebook has already revealed a large amount of detail concerning NSO Group’s internal workings, including the hands-on nature of its business model: NSO Group actively assists countries in hacking targets. For example, we now know that while an NSO Group employee may not press the “Enter” key for a target, NSO employees do act to advise and consult on targeting; and NSO Group is largely responsible for running the infrastructure used to exploit targets and manage implants. Expect more revelations like this as the case proceeds.