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Paul Merrell

U.S. Companies Are Stashing $2.1 Trillion Overseas to Avoid Taxes - Bloomberg Business - 0 views

www.bloomberg.com/...illion-overseas-to-avoid-taxes

U.S. tax-evasion

shared by Paul Merrell on 09 Mar 15 - No Cached
  • Eight of the biggest U.S. technology companies added a combined $69 billion to their stockpiled offshore profits over the past year, even as some corporations in other industries felt pressure to bring cash back home. Microsoft Corp., Apple Inc., Google Inc. and five other tech firms now account for more than a fifth of the $2.10 trillion in profits that U.S. companies are holding overseas, according to a Bloomberg News review of the securities filings of 304 corporations. The total amount held outside the U.S. by the companies was up 8 percent from the previous year, though 58 companies reported smaller stockpiles. The money pileup, reflecting companies’ incentives to park profits in low-tax countries, has drawn the attention of President Barack Obama and U.S. lawmakers, who see a chance to tap the funds for spending programs and to revamp the tax code. That effort is stalled in Washington, and there are few signs that tech companies will bring the profits back to the U.S. until Congress gives them an incentive or a mandate.
Paul Merrell

Vodafone-Linked Company Aided British Mass Surveillance - The Intercept - 0 views

firstlook.org/...fone-surveillance-gchq-snowden

surveillance state GCHQ telecoms undersea-cables

shared by Paul Merrell on 25 Nov 14 - No Cached
  • They flow deep underneath the Atlantic Ocean and into the United Kingdom below the golden sands of idyllic beaches. But the internet cables that come ashore at the coast of Cornwall, England, are not just used to connect the country with the rest of the world. According to new reports based on documents from National Security Agency whistleblower Edward Snowden, the cables have become an integral part of the global mass surveillance system operated by the British spy agency Government Communications Headquarters, intimately assisted by a company now owned by Vodafone, the world’s third largest cellphone network provider.
  • The latest details about the extent of the spying were revealed on Thursday by the British Channel 4 News, the German newspaper Süddeutsche Zeitung, and the German broadcaster WDR, who worked in partnership with Intercept founding editor Laura Poitras. The Intercept obtained a preview of the revelations in advance of their publication. According to the reports, British telecommunications firms have helped GCHQ dramatically scale-up the volume of internet data it collects from undersea cables. In the five years leading up to 2012, there was a 7,000-fold increase in the amount of data the agency was sweeping up, with its computers monitoring some 46 billion private communications “events” every day, according to documents cited in the reports. The data swept up from the cables would include content from emails, online messages, browsing sessions, and calls made using internet chat tools.
  • British telecommunications company Cable & Wireless played a leading role in the secret cable tapping operation, according to the reports, and the collaboration appears to have gone further than simply complying with the law in helping implement the surveillance. The company provided GCHQ with updates on opportunities it could give the agency to tap into internet traffic, and in February 2009 a GCHQ employee was assigned to work within Cable & Wireless in a “full-time project management” role. The British government paid Cable & Wireless more than £5 million ($9 million) of taxpayers’ money as part of an annual lease for GCHQ to access the cables. The agency described the company a “partner” and designated it the codename Gerontic.
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  • According to the reports, Cable & Wireless also appears to have helped GCHQ obtain data from a rival foreign communications company, India’s Reliance Communications, enabling the spies to sweep up communications sent by millions of internet users worldwide through a Reliance-owned cable that stretches from England across Asia and the Middle East. This so-called “access point” for GCHQ was named Nigella and located near an agency surveillance base in Bude, Cornwall (pictured above). Reliance did not respond to a request for comment. In July 2012, the multinational phone company Vodafone bought Cable & Wireless for about $1.5 billion. The documents indicate that the Nigella surveillance access point remained active as of April 2013. Vodafone said in a statement that it complies with the law and does not give “direct access” to its cables. The company says it is compelled to provide certain access to data based on warrants issued by the government.
Gary Edwards

Ukraine's Oligarchs Turn on Each Other | Consortiumnews - 0 views

consortiumnews.com/...s-oligarchs-turn-on-each-other

Ukraine Corporate-Oligarchs Banksters

shared by Gary Edwards on 25 Mar 15 - No Cached
  • n the never-never land of how the mainstream U.S. press covers the Ukraine crisis, the appointment last year of thuggish oligarch Igor Kolomoisky to govern one of the country’s eastern provinces was pitched as a democratic “reform” because he was supposedly too rich to bribe, without noting that his wealth had come from plundering the country’s economy.In other words, the new U.S.-backed “democratic” regime, after overthrowing democratically elected President Viktor Yanukovych because he was “corrupt,” was rewarding one of Ukraine’s top thieves by letting him lord over his own province, Dnipropetrovsk Oblast, with the help of his personal army.
  • Last year, Kolomoisky’s brutal militias, which include neo-Nazi brigades, were praised for their fierce fighting against ethnic Russians from the east who were resisting the removal of their president. But now Kolomoisky, whose financial empire is crumbling as Ukraine’s economy founders, has turned his hired guns against the Ukrainian government led by another oligarch, President Petro Poroshenko.Last Thursday night, Kolomoisky and his armed men went to Kiev after the government tried to wrest control of the state-owned energy company UkrTransNafta from one of his associates. Kolomoisky and his men raided the company offices to seize and apparently destroy records. As he left the building, he cursed out journalists who had arrived to ask what was going on. He ranted about “Russian saboteurs.”It was a revealing display of how the corrupt Ukrainian political-economic system works and the nature of the “reformers” whom the U.S. State Department has pushed into positions of power. According to BusinessInsider, the Kiev government tried to smooth Kolomoisky’s ruffled feathers by announcing “that the new company chairman [at UkrTransNafta] would not be carrying out any investigations of its finances.”
  • Yet, it remained unclear whether Kolomoisky would be satisfied with what amounts to an offer to let any past thievery go unpunished. But if this promised amnesty wasn’t enough, Kolomoisky appeared ready to use his private army to discourage any accountability.On Monday, Valentyn Nalyvaychenko, chief of the State Security Service, accused Dnipropetrovsk officials of financing armed gangs and threatening investigators, Bloomberg News reported, while noting that Ukraine has sunk to 142nd place out of 175 countries in Transparency International’s Corruptions Perception Index, the worst in Europe.The see-no-evil approach to how the current Ukrainian authorities do business relates as well to Ukraine’s new Finance Minister Natalie Jaresko, who appears to have enriched herself at the expense of a $150 million U.S.-taxpayer-financed investment fund for Ukraine.
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  • Regarding Kolomoisky’s claim about “Russian saboteurs,” the government said that was not the case, explaining that the clash resulted from the parliament’s vote last week to reduce Kolomoisky’s authority to run the company from his position as a minority owner. As part of the shakeup, Kolomoisky’s protégé Oleksandr Lazorko was fired as chairman, but he refused to leave and barricaded himself in his office, setting the stage for Kolomoisky’s arrival with armed men.On Tuesday, the New York Times reported on the dispute but also flashed back to its earlier propagandistic praise of the 52-year-old oligarch, recalling that “Mr. Kolomoisky was one of several oligarchs, considered too rich to bribe, who were appointed to leadership positions in a bid to stabilize Ukraine.”Kolomoisky also is believed to have purchased influence inside the U.S. government through his behind-the-scenes manipulation of Ukraine’s largest private gas firm, Burisma Holdings. Last year, the shadowy Cyprus-based company appointed Vice President Joe Biden’s son, Hunter Biden, to its board of directors. Burisma also lined up well-connected lobbyists, some with ties to Secretary of State John Kerry, including Kerry’s former Senate chief of staff David Leiter, according to lobbying disclosures.
  • Jaresko, a former U.S. diplomat who received overnight Ukrainian citizenship in December to become Finance Minister, had been in charge of the Western NIS Enterprise Fund (WNISEF), which became the center of insider-dealing and conflicts of interest, although the U.S. Agency for International Development showed little desire to examine the ethical problems – even after Jaresko’s ex-husband tried to blow the whistle. [See Consortiumnews.com’s “Ukraine Finance Minister’s American ‘Values.’”]Passing Out the BillionsJaresko will be in charge of dispensing the $17.5 billion that the International Monetary Fund is allocating to Ukraine, along with billions of dollars more expected from U.S. and European governments.
  • As Time magazine reported, “Leiter’s involvement in the firm rounds out a power-packed team of politically-connected Americans that also includes a second new board member, Devon Archer, a Democratic bundler and former adviser to John Kerry’s 2004 presidential campaign. Both Archer and Hunter Biden have worked as business partners with Kerry’s son-in-law, Christopher Heinz, the founding partner of Rosemont Capital, a private-equity company.”According to investigative journalism in Ukraine, the ownership of Burisma has been traced to Privat Bank, which is controlled by Kolomoisky.So, it appears that Ukraine’s oligarchs who continue to wield enormous power inside the corrupt country are now circling each other over what’s left of the economic spoils and positioning themselves for a share of the international bailouts to come.
  • As for “democratic reform,” only in the upside-down world of the State Department’s Orwellian “information war” against Russia over Ukraine would imposing a corrupt and brutal oligarch like Kolomoisky as the unelected governor of a defenseless population be considered a positive.(Early Wednesday morning, President Poroshenko dismissed Kolomoisky from his post as Dnipropetrovsk regional governor.)
  • Paul Merrell on 25 Mar 15
     
    Another of the greatest U.S. exports: corruption.
  • Gary Edwards on 26 Mar 15
     
    Corporate oligarchs leading private but well armed armies in raids against the Ukrainian government holdings - controlled by other corporate oligarchs? This article dives into the mess that the USA and European NATO allies have stirred in the Ukraine, and through this lens we get to see what the world will look like when corporate oligarchs and their Bankster masters rule the world. The article is revealing, but it fails to connect the corporatist to the Banks that are sending in billions of dollars. The connection instead is made to the democratic governments intent on pushing the world into world war 3. Nor is there much mention of the oil and natural gas pipeline and supply geographics that dominate battlefields from the Ukraine, to Syria, Iraq and Lybia. The New World Order needs a third World War if it's to truly overturn the fragile post World War II economic order loosely based on free market capitalism, individual liberty and democratic governance. The end of national sovereignty, religious and cultural identities has one more hurdle. And there is no doubt in my mind that the elites are ready to jump that hurdle. World War III has spread from the middle east to middle Europe. Best we all hold on. .................. "Exclusive: Ukraine's post-coup regime is facing what looks like a falling-out among thieves as oligarch-warlord Igor Kolomoisky, who was given his own province to rule, brought his armed men to Kiev to fight for control of the state-owned energy company, further complicating the State Department's propaganda efforts, reports Robert Parry. In the never-never land of how the mainstream U.S. press covers the Ukraine crisis, the appointment last year of thuggish oligarch Igor Kolomoisky to govern one of the country's eastern provinces was pitched as a democratic "reform" because he was supposedly too rich to bribe, without noting that his wealth had come from plundering the country's economy. In other words, the new U.S.-b
Paul Merrell

Cy Vance's Proposal to Backdoor Encrypted Devices Is Riddled With Vulnerabilities | Just Security - 0 views

www.justsecurity.org/...evices-riddled-vulnerabilities

surveillance state encryption-backdoors Vance tyranny right-to-whisper

shared by Paul Merrell on 11 Dec 15 - No Cached
  • Less than a week after the attacks in Paris — while the public and policymakers were still reeling, and the investigation had barely gotten off the ground — Cy Vance, Manhattan’s District Attorney, released a policy paper calling for legislation requiring companies to provide the government with backdoor access to their smartphones and other mobile devices. This is the first concrete proposal of this type since September 2014, when FBI Director James Comey reignited the “Crypto Wars” in response to Apple’s and Google’s decisions to use default encryption on their smartphones. Though Comey seized on Apple’s and Google’s decisions to encrypt their devices by default, his concerns are primarily related to end-to-end encryption, which protects communications that are in transit. Vance’s proposal, on the other hand, is only concerned with device encryption, which protects data stored on phones. It is still unclear whether encryption played any role in the Paris attacks, though we do know that the attackers were using unencrypted SMS text messages on the night of the attack, and that some of them were even known to intelligence agencies and had previously been under surveillance. But regardless of whether encryption was used at some point during the planning of the attacks, as I lay out below, prohibiting companies from selling encrypted devices would not prevent criminals or terrorists from being able to access unbreakable encryption. Vance’s primary complaint is that Apple’s and Google’s decisions to provide their customers with more secure devices through encryption interferes with criminal investigations. He claims encryption prevents law enforcement from accessing stored data like iMessages, photos and videos, Internet search histories, and third party app data. He makes several arguments to justify his proposal to build backdoors into encrypted smartphones, but none of them hold water.
  • Before addressing the major privacy, security, and implementation concerns that his proposal raises, it is worth noting that while an increase in use of fully encrypted devices could interfere with some law enforcement investigations, it will help prevent far more crimes — especially smartphone theft, and the consequent potential for identity theft. According to Consumer Reports, in 2014 there were more than two million victims of smartphone theft, and nearly two-thirds of all smartphone users either took no steps to secure their phones or their data or failed to implement passcode access for their phones. Default encryption could reduce instances of theft because perpetrators would no longer be able to break into the phone to steal the data.
  • Vance argues that creating a weakness in encryption to allow law enforcement to access data stored on devices does not raise serious concerns for security and privacy, since in order to exploit the vulnerability one would need access to the actual device. He considers this an acceptable risk, claiming it would not be the same as creating a widespread vulnerability in encryption protecting communications in transit (like emails), and that it would be cheap and easy for companies to implement. But Vance seems to be underestimating the risks involved with his plan. It is increasingly important that smartphones and other devices are protected by the strongest encryption possible. Our devices and the apps on them contain astonishing amounts of personal information, so much that an unprecedented level of harm could be caused if a smartphone or device with an exploitable vulnerability is stolen, not least in the forms of identity fraud and credit card theft. We bank on our phones, and have access to credit card payments with services like Apple Pay. Our contact lists are stored on our phones, including phone numbers, emails, social media accounts, and addresses. Passwords are often stored on people’s phones. And phones and apps are often full of personal details about their lives, from food diaries to logs of favorite places to personal photographs. Symantec conducted a study, where the company spread 50 “lost” phones in public to see what people who picked up the phones would do with them. The company found that 95 percent of those people tried to access the phone, and while nearly 90 percent tried to access private information stored on the phone or in other private accounts such as banking services and email, only 50 percent attempted contacting the owner.
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  • In addition to his weak reasoning for why it would be feasible to create backdoors to encrypted devices without creating undue security risks or harming privacy, Vance makes several flawed policy-based arguments in favor of his proposal. He argues that criminals benefit from devices that are protected by strong encryption. That may be true, but strong encryption is also a critical tool used by billions of average people around the world every day to protect their transactions, communications, and private information. Lawyers, doctors, and journalists rely on encryption to protect their clients, patients, and sources. Government officials, from the President to the directors of the NSA and FBI, and members of Congress, depend on strong encryption for cybersecurity and data security. There are far more innocent Americans who benefit from strong encryption than there are criminals who exploit it. Encryption is also essential to our economy. Device manufacturers could suffer major economic losses if they are prohibited from competing with foreign manufacturers who offer more secure devices. Encryption also protects major companies from corporate and nation-state espionage. As more daily business activities are done on smartphones and other devices, they may now hold highly proprietary or sensitive information. Those devices could be targeted even more than they are now if all that has to be done to access that information is to steal an employee’s smartphone and exploit a vulnerability the manufacturer was required to create.
  • Privacy is another concern that Vance dismisses too easily. Despite Vance’s arguments otherwise, building backdoors into device encryption undermines privacy. Our government does not impose a similar requirement in any other context. Police can enter homes with warrants, but there is no requirement that people record their conversations and interactions just in case they someday become useful in an investigation. The conversations that we once had through disposable letters and in-person conversations now happen over the Internet and on phones. Just because the medium has changed does not mean our right to privacy has.
  • Vance attempts to downplay this serious risk by asserting that anyone can use the “Find My Phone” or Android Device Manager services that allow owners to delete the data on their phones if stolen. However, this does not stand up to scrutiny. These services are effective only when an owner realizes their phone is missing and can take swift action on another computer or device. This delay ensures some period of vulnerability. Encryption, on the other hand, protects everyone immediately and always. Additionally, Vance argues that it is safer to build backdoors into encrypted devices than it is to do so for encrypted communications in transit. It is true that there is a difference in the threats posed by the two types of encryption backdoors that are being debated. However, some manner of widespread vulnerability will inevitably result from a backdoor to encrypted devices. Indeed, the NSA and GCHQ reportedly hacked into a database to obtain cell phone SIM card encryption keys in order defeat the security protecting users’ communications and activities and to conduct surveillance. Clearly, the reality is that the threat of such a breach, whether from a hacker or a nation state actor, is very real. Even if companies go the extra mile and create a different means of access for every phone, such as a separate access key for each phone, significant vulnerabilities will be created. It would still be possible for a malicious actor to gain access to the database containing those keys, which would enable them to defeat the encryption on any smartphone they took possession of. Additionally, the cost of implementation and maintenance of such a complex system could be high.
  • Vance also suggests that the US would be justified in creating such a requirement since other Western nations are contemplating requiring encryption backdoors as well. Regardless of whether other countries are debating similar proposals, we cannot afford a race to the bottom on cybersecurity. Heads of the intelligence community regularly warn that cybersecurity is the top threat to our national security. Strong encryption is our best defense against cyber threats, and following in the footsteps of other countries by weakening that critical tool would do incalculable harm. Furthermore, even if the US or other countries did implement such a proposal, criminals could gain access to devices with strong encryption through the black market. Thus, only innocent people would be negatively affected, and some of those innocent people might even become criminals simply by trying to protect their privacy by securing their data and devices. Finally, Vance argues that David Kaye, UN Special Rapporteur for Freedom of Expression and Opinion, supported the idea that court-ordered decryption doesn’t violate human rights, provided certain criteria are met, in his report on the topic. However, in the context of Vance’s proposal, this seems to conflate the concepts of court-ordered decryption and of government-mandated encryption backdoors. The Kaye report was unequivocal about the importance of encryption for free speech and human rights. The report concluded that:
  • States should promote strong encryption and anonymity. National laws should recognize that individuals are free to protect the privacy of their digital communications by using encryption technology and tools that allow anonymity online. … States should not restrict encryption and anonymity, which facilitate and often enable the rights to freedom of opinion and expression. Blanket prohibitions fail to be necessary and proportionate. States should avoid all measures that weaken the security that individuals may enjoy online, such as backdoors, weak encryption standards and key escrows. Additionally, the group of intelligence experts that was hand-picked by the President to issue a report and recommendations on surveillance and technology, concluded that: [R]egarding encryption, the U.S. Government should: (1) fully support and not undermine efforts to create encryption standards; (2) not in any way subvert, undermine, weaken, or make vulnerable generally available commercial software; and (3) increase the use of encryption and urge US companies to do so, in order to better protect data in transit, at rest, in the cloud, and in other storage.
  • The clear consensus among human rights experts and several high-ranking intelligence experts, including the former directors of the NSA, Office of the Director of National Intelligence, and DHS, is that mandating encryption backdoors is dangerous. Unaddressed Concerns: Preventing Encrypted Devices from Entering the US and the Slippery Slope In addition to the significant faults in Vance’s arguments in favor of his proposal, he fails to address the question of how such a restriction would be effectively implemented. There is no effective mechanism for preventing code from becoming available for download online, even if it is illegal. One critical issue the Vance proposal fails to address is how the government would prevent, or even identify, encrypted smartphones when individuals bring them into the United States. DHS would have to train customs agents to search the contents of every person’s phone in order to identify whether it is encrypted, and then confiscate the phones that are. Legal and policy considerations aside, this kind of policy is, at the very least, impractical. Preventing strong encryption from entering the US is not like preventing guns or drugs from entering the country — encrypted phones aren’t immediately obvious as is contraband. Millions of people use encrypted devices, and tens of millions more devices are shipped to and sold in the US each year.
  • Finally, there is a real concern that if Vance’s proposal were accepted, it would be the first step down a slippery slope. Right now, his proposal only calls for access to smartphones and devices running mobile operating systems. While this policy in and of itself would cover a number of commonplace devices, it may eventually be expanded to cover laptop and desktop computers, as well as communications in transit. The expansion of this kind of policy is even more worrisome when taking into account the speed at which technology evolves and becomes widely adopted. Ten years ago, the iPhone did not even exist. Who is to say what technology will be commonplace in 10 or 20 years that is not even around today. There is a very real question about how far law enforcement will go to gain access to information. Things that once seemed like merely science fiction, such as wearable technology and artificial intelligence that could be implanted in and work with the human nervous system, are now available. If and when there comes a time when our “smart phone” is not really a device at all, but is rather an implant, surely we would not grant law enforcement access to our minds.
  • Policymakers should dismiss Vance’s proposal to prohibit the use of strong encryption to protect our smartphones and devices in order to ensure law enforcement access. Undermining encryption, regardless of whether it is protecting data in transit or at rest, would take us down a dangerous and harmful path. Instead, law enforcement and the intelligence community should be working to alter their skills and tactics in a fast-evolving technological world so that they are not so dependent on information that will increasingly be protected by encryption.
Paul Merrell

First to Fall? Panama Papers Bring Down Iceland PM, Portending Future Fallout | Common Dreams | Breaking News & Views for the Progressive Community - 0 views

www.commondreams.org/...d-pm-portending-future-fallout

Auction 2016 Hillary Panama-Papers Iceland Ukraine British-Virgin-Isles Chile

shared by Paul Merrell on 07 Apr 16 - No Cached
  • In the first instance of a prominent politician taken down by the 11.5 million documents leaked in the Panama Papers, Iceland Prime Minister Sigmundur Davíð Gunnlaugsson resigned on Tuesday after fully 10 percent of Iceland's population rallied in protest of his wife's secret, offshore shell company holding millions. Gunnlaugsson was asked about the account on the day the leak was announced in a television interview, and he walked out rather than answer the question:
  • The next day, "an estimated 22,000 Icelanders slung eggs and protested outside the Parliament building" demanding his resignation, as Common Dreams reported. Gunnlaugsson initially refused to bow to the public pressure, but eventually announced his resignation on Tuesday evening.
  • News editor of the Reykjavík Grapevine Paul Fontaine said Tuesday, "While the Prime Minister's particular role in the Panama Papers leak is huge, and I don't want to downplay it, I also don't want to downplay the involvement other Icelanders—and the countless others around the world—also had in this." "This extends beyond the prime minister; it reaches parliament, it reaches Reykjavík City Hall, and it reportedly reaches hundreds of as yet unnamed Icelandic businesspeople," Fontaine pointed out. "The greater crime, which the Panama Papers illustrate comprehensively, is that we have a secret economy connected to and even supporting some of the worst aspects of the global capitalist system."
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  • Meanwhile, Ukraine's president faces possible impeachment proceedings for his offshore holdings in the British Virgin Islands, and the Chilean head of anti-corruption group Transparency International resigned Tuesday after the Panama Papers revealed his own use of secret shell companies.
  • Relatively few Americans have been named in the leak thus far, perhaps pointing to the country's status as one of the foremost locales for creating shell corporations like those documented in the Panama Papers. "Americans can form shell companies right in Wyoming, Delaware or Nevada," said Shima Baradaran Baughman, a law professor at the University of Utah, in an interview with Fusion. "They have no need to go to Panama to form a shell company to use for illicit activities."
  • David Dayen explored in depth the paltry U.S. regulations around onshore shell companies in Salon: "While we force foreign financial institutions to give up information on accounts held by U.S. taxpayers through the Foreign Account Tax Compliance Act of 2010, we don’t reciprocate by complying with international disclosure requirements standardized by the Organization for Economic Co-Operation and Development (OECD) and agreed to by 97 other nations. As a result, the U.S. is becoming one of the world’s foremost tax havens."
  • President Barack Obama addressed the Panama Papers leak for the first time on Tuesday, condemning the laws that make offshore tax havens legal. But those words rang hollow to many observers who recalled that the Obama Administration was behind the very trade deal, Panama TPA, that enshrined the rights of firms such as Mossack Fonseca to funnel millions into untraceable offshore shell companies. As Common Dreams noted, "Much of [Mossack Fonseca's] activities were not necessarily illegal—thanks to agreements such as the Panama TPA." It is worth noting that Bernie Sanders advocated against the deal.
  • Reform also seems unlikely should Hillary Clinton become the Democratic party's nominee, considering that she and her husband own a shell corporation such as the ones documented in the Panama Papers, as the Associated Press reported last year. Unnamed officials told the AP that "the entity was a 'pass-through' company designed to channel payments to the former president." Thanks to the nature of the laws surrounding such corporations, Clinton is not required to disclose the company's existence or earnings in her campaign finance reports. Still, observers are hopeful that this record-shattering leak will drum up enough public pressure to not only topple prominent politicians, but to also propel the efforts of groups seeking real legislative reform. "The Panama Papers are a boost to the global movement to stop tax-haven abuse and recapture trillions of the hidden wealth of nations," wrote author Chuck Collins in The Nation. "This story isn’t going away anytime soon."
Paul Merrell

How Israel helps eavesdrop on US citizens | The Electronic Intifada - 0 views

electronicintifada.net/...7788

surveillance state NSA Israel Unit 8200 Narus Verint

shared by Paul Merrell on 15 Jun 13 - No Cached
  • It is well-known that the two largest American telecom companies AT&T and Verizon collaborated with the US government to allow illegal eavesdropping on their customers. The known uses to which information obtained this way has been put include building the government’s massive secret “watch lists,” and “no-fly lists” and even, Bamford suggests, to deny Small Business Administration loans to citizens or reject their children’s applications to military colleges. What is less well-known is that AT&T and Verizon handed “the bugging of their entire networks — carrying billions of American communications every day” to two companies founded in Israel. Verint and Narus, as they are called, are “superintrusive — conducting mass surveillance on both international and domestic communications 24/7,” and sifting traffic at “key Internet gateways” around the US.
  • Virtually all US voice and data communications and much from the rest of the world can be remotely accessed by these companies in Israel, which Bamford describes as “the eavesdropping capital of the world.” Although there is no way to prove cooperation, Bamford writes that “the greatest potential beneficiaries of this marriage between the Israeli eavesdroppers and America’s increasingly centralized telecom grid are Israel’s intelligence agencies.” Israel’s spy agencies have long had a revolving-door relationship with Verint and Narus and other Israeli military-security firms. The relationship is particularly close between the firms and Israel’s own version of the NSA, called “Unit 8200.”
  • Israeli companies seeking a share of massively expanded US intelligence budgets formed similarly incestuous relationships with some in the American intelligence establishment: Ken Minihan, a former director of the NSA, served on Verint’s “security committee” and the former Federal Bureau of Investigation (FBI) official responsible for liaison with the telecom industry became head of the Verint unit that sold eavesdropping equipment to the FBI and NSA.
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  • FISA — the Foreign Intelligence Surveillance Act of 1978 — required the government to seek court warrants for wiretaps where at least one target was in the US. In 2005, it was revealed that the Bush administration had been flagrantly violating this law. Last July, Congress passed a bill legalizing this activity and giving retroactive immunity to the telecom companies that had assisted.
  • Israel has a well-established record of compromising American national security. The most notorious case was that of convicted spy Jonathan Pollard. Although the full details of his crimes are still secret, he is thought to have passed critical information about US intelligence-gathering methods to Israel, which then traded those secrets to US adversaries. In 2005, Larry Franklin, a Defense Department analyst, pleaded guilty to spying for Israel. Most recently, Ben-Ami Kadish, a retired US army engineer, was indicted in April for allegedly passing classified documents about US nuclear weapons to Israel from 1979 to 1985. Two former officials of AIPAC, the pro-Israel lobbying group, are still awaiting trial on charges that they passed classified information between Franklin and the Israeli government.
  • Nor have particular Israeli firms established a record of trustworthiness that would justify such complacency. Jacob “Kobi” Alexander, the former Israeli intelligence officer who founded Verint, fled the US to Israel in 2006 just before he and other top executives of a subsidiary were indicted for fraud that allegedly cost US taxpayers and company shareholders $138 million. Alexander eventually adopted a fake identity and hid in the southern African country of Namibia where he is now fighting extradition
  • Israeli companies do not assist the US only to spy on its own citizens, of course. Another Israeli firm, Natural Speech Communication (NSC), among whose directors is former Mossad chief Shabtai Shavit, makes software that the US uses to electronically analyze and key-word search recorded conversations in “Levantine Arabic,” the dialects “spoken by Israeli Arabs, Jordanians, Lebanese and Palestinians.” Mexico and Australia are among other countries known to use Israeli technologies and firms to eavesdrop on their citizens.
Paul Merrell

EXCLUSIVE: Snowden reveals more US cyberspying details | South China Morning Post - 0 views

www.scmp.com/...s-cyberspying-details-revealed

surveillance state NSA China Hong Kong Pacnet

shared by Paul Merrell on 30 Jun 13 - No Cached
  • US spies are hacking into Chinese mobile phone companies to steal text messages and attacking the servers at Tsinghua University, Edward Snowden has told the Sunday Morning Post. The latest explosive revelations about US National Security Agency cybersnooping in Hong Kong and on the mainland are based on further scrutiny and clarification of information Snowden provided on June 12. The former technician for the US Central Intelligence Agency and contractor for the National Security Agency provided documents revealing attacks on computers over a four-year period.
  • The documents listed operational details of specific attacks on computers, including internet protocol (IP) addresses, dates of attacks and whether a computer was still being monitored remotely. The Sunday Morning Post can now reveal Snowden's claims that the NSA is: Extensive hacking of major telecommunication companies in China to access text messages   Sustained attacks on network backbones at Tsinghua University, China’s premier seat of learning   Hacking of computers at the Hong Kong headquarters of Pacnet, which owns one of the most extensive fibre optic submarine cable networks in the region
  • Pacnet, which recently signed major deals with the mainland's top mobile phone companies, owns more than 46,000 kilometres of fibre-optic cables. The cables connect its regional data centres across the Asia-Pacific region, including Hong Kong, the mainland, Japan, South Korea, Singapore and Taiwan. It also has offices in the US. Snowden claims that data from Chinese mobile phone companies has been compromised, with millions of private text messages mined by the NSA. Cybersecurity experts on the mainland have long feared mobile phone companies had fallen victim to back-door attacks because they were forced to go overseas to buy core technology for their networks. In recent years, those security concerns became more vocal and as a result domestic network equipment suppliers such as Huawai, Datang and ZTE started to close the technology gap, enabling the phone companies to reduce their reliance on foreign suppliers.
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  • As for the attacks at Tsinghua University, the leaked information points to the NSA hacking into the institute's servers as recently as January. Tsinghua is widely regarded as China's top education and research institute and carries out extensive work on next-generation web technologies. It is home to one of the mainland's six major network backbones, the China Education and Research Network.
Paul Merrell

Panama Papers database of offshore companies goes public - Chicago Tribune - 0 views

www.chicagotribune.com/...c-database-20160509-story.html

banksters Panama-Papers database

shared by Paul Merrell on 14 May 16 - No Cached
  • group of investigative journalists made live the names of thousands of offshore companies based on a massive trove of data on the finances of the rich and powerful that has become known as the Panama Papers.The International Consortium of Investigative Journalists made data on 200,000 entities available on Monday at 1 p.m. CT on its website. They contain basic corporate information about companies, trusts and foundations set up in 21 jurisdictions including Hong Kong and the U.S. state of Nevada. The data was obtained from Panamanian law firm Mossack Foneca, which said it was hacked.Users can search the data and see the networks involving the offshore companies, including, where available, Mossack Fonseca's internal records of the true owners.
  • It won't be the full cache of data commonly known as the Panama Papers, since the database will exclude information and documents on bank accounts, phone numbers and emails.The ICIJ said it was putting the information online "in the public interest" as "a careful release of basic corporate information" as it builds on an earlier database of offshore entities.Setting up an offshore company is not by itself illegal or evidence of illegal conduct, and Mossack Fonseca said it observed rules requiring it to identify its clients.But anti-poverty campaigners say shell companies can be used by the wealthy and powerful to shield money from taxation, or to launder the gains from bribery, embezzlement and other forms of corruption. The Group of 20 most powerful economies has agreed that individual governments should make sure authorities can tell who really owns companies, but implementation in national law has lagged.
Paul Merrell

How the NSA Almost Killed the Internet | Threat Level | Wired.com - 0 views

www.wired.com/...all

surveillance state NSA NSA-blowback Internet-Balkanization

shared by Paul Merrell on 08 Jan 14 - No Cached
  • Greenwald was the first but not the only journalist that Snowden reached out to. The Post’s Barton Gellman had also connected with him. Now, collaborating with documentary filmmaker and Snowden confidante Laura Poitras, he was going to extend the story to Silicon Valley. Gellman wanted to be the first to expose a top-secret NSA program called Prism. Snowden’s files indicated that some of the biggest companies on the web had granted the NSA and FBI direct access to their servers, giving the agencies the ability to grab a person’s audio, video, photos, emails, and documents. The government urged Gellman not to identify the firms involved, but Gellman thought it was important. “Naming those companies is what would make it real to Americans,” he says. Now a team of Post reporters was reaching out to those companies for comment. It would be the start of a chain reaction that threatened the foundations of the industry. The subject would dominate headlines for months and become the prime topic of conversation in tech circles. For years, the tech companies’ key policy issue had been negotiating the delicate balance between maintaining customers’ privacy and providing them benefits based on their personal data. It was new and contro­versial territory, sometimes eclipsing the substance of current law, but over time the companies had achieved a rough equilibrium that allowed them to push forward. The instant those phone calls from reporters came in, that balance was destabilized, as the tech world found itself ensnared in a fight far bigger than the ones involving oversharing on Facebook or ads on Gmail. Over the coming months, they would find themselves at war with their own government, in a fight for the very future of the Internet.
  • Paul Merrell on 08 Jan 14
     
    This lengthy article's lead is great, but it barely crawls by the end. Summary: Major internet company execs are worried about their own customer blowback and potential balkanization of the Internet due to the NSA revelations. 
Paul Merrell

Government let British company export nerve gas chemicals to Syria - UK Politics - UK - The Independent - 0 views

www.independent.co.uk/...hemicals-to-syria-8793642.html

war & peace Syria UK WMD WMD-precursors

shared by Paul Merrell on 02 Sep 13 - No Cached
  • The Government was accused of “breathtaking laxity” in its arms controls tonight after it emerged that officials authorised the export to Syria of two chemicals capable of being used to make a nerve agent such as sarin a year ago. The Business Secretary, Vince Cable, will on Monday be asked by MPs to explain why a British company was granted export licences for the dual-use substances for six months in 2012 while Syria’s civil war was raging and concern was rife that the regime could use chemical weapons on its own people. The disclosure of the licences for potassium fluoride and sodium fluoride, which can both be used as precursor chemicals in the manufacture of nerve gas, came as the US Secretary of State John Kerry said the United States had evidence that sarin  gas was used in last month’s atrocity in Damascus.
  • Mr Kerry announced that traces of the nerve agent, found in hair and blood samples taken from victims of the attack in the Syrian capital which claimed more than 1,400 lives, were part of a case being built by the Obama administration for military intervention.The Department for Business, Innovation and Skills insisted that although the licences were granted to an unnamed UK chemical company in January 2012, the substances were not sent to Syria before the permits were eventually revoked last July in response to tightened European Union sanctions.In a previously unpublicised letter to MPs last year, Mr Cable acknowledged that his officials had authorised the export of an unspecified quantity of the chemicals in the knowledge that they were listed on an international schedule of chemical weapon precursors.Critics of the Business Secretary, whose department said it had accepted assurances from the exporting company that the chemicals would be used in the manufacture of metal window frames and shower enclosures, said it appeared the substances had only stayed out of Syria by chance.
  • The Labour MP Thomas Docherty, a member of the Commons Arms Export Controls Committee, will today table parliamentary questions demanding to know why the licences were granted and to whom.
  • Paul Merrell on 02 Sep 13
     
    Note particularly that neither the company that got the permit nor the intended recipient is identified. I.e., it was not necessarily the Syrian government. Legitimate use for other purposes?  A rebel front organization?
Paul Merrell

US looks at ways to prevent spying on its spying - 0 views

bigstory.ap.org/...king-prevent-spying-its-spying

surveillance state NSA call-metadata dispersed-call-metadata research

shared by Paul Merrell on 29 Jan 14 - No Cached
  • (AP) — The U.S. government is looking at ways to prevent anyone from spying on its own surveillance of Americans' phone records. As the Obama administration considers shifting the collection of those records from the National Security Agency to requiring that they be stored at phone companies or elsewhere, it's quietly funding research to prevent phone company employees or eavesdroppers from seeing whom the U.S. is spying on, The Associated Press has learned. The Office of the Director of National Intelligence has paid at least five research teams across the country to develop a system for high-volume, encrypted searches of electronic records kept outside the government's possession. The project is among several ideas that would allow the government to discontinue storing Americans' phone records, but still search them as needed.
  • Under the research, U.S. data mining would be shielded by secret coding that could conceal identifying details from outsiders and even the owners of the targeted databases, according to public documents obtained by The Associated Press and AP interviews with researchers, corporate executives and government officials.
  • Internal documents describing the Security and Privacy Assurance Research project do not cite the NSA or its phone surveillance program. But if the project were to prove successful, its encrypted search technology could pave the way for the government to shift storage of the records from NSA computers to either phone companies or a third-party organization. A DNI spokesman, Michael Birmingham, confirmed that the research was relevant to the NSA's phone records program. He cited "interest throughout the intelligence community" but cautioned that it may be some time before the technology is used. The intelligence director's office is by law exempt from disclosing detailed budget figures, so it's unclear how much money the government has spent on the SPAR project, which is overseen by the DNI's Intelligence Advanced Research Projects Activity office. Birmingham said the research is aimed for use in a "situation where a large sensitive data set is held by one party which another seeks to query, preserving privacy and enforcing access policies."
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  • A Columbia University computer sciences expert who heads one of the DNI-funded teams, Steven M. Bellovin, estimates the government could start conducting encrypted searches within the next year or two. "If the NSA wanted to deploy something like this it would take one to two years to get the hardware and software in place to start collecting data this way either from phone companies or whatever other entity they decide on," said Bellovin, who is also a former chief technologist for the Federal Trade Commission.
  • An encrypted search system would permit the NSA to shift storage of phone records to either phone providers or a third party, and conduct secure searches remotely through their databases. The coding could shield both the extracted metadata and identities of those conducting the searches, Bellovin said. The government could use encrypted searches to ensure its analysts were not leaking information or abusing anyone's privacy during their data searches. And the technique could also be used by the NSA to securely search out and retrieve Internet metadata, such as emails and other electronic records. Some computer science experts are less sanguine about the prospects for encrypted search techniques. Searches could bog down because of the encryption computations needed, said Daniel Weitzner, principal research scientist at MIT's Computer Science and Artificial Intelligence Laboratory and former deputy U.S. chief technology officer for the Obama administration. "There's no silver bullet that guarantees the intelligence community will only have access to the records they're supposed to have access to," Weitzner said. "We also need oversight of the actual use of the data."
  • The encrypted search techniques could make it more difficult for hackers to access the phone records and could prevent phone companies from knowing which records the government was searching. "It would remove one of the big objections to having the phone companies hold the data," Bellovin said. Similar research is underway by researchers at University of California at Irvine; a group from the University of Wisconsin-Madison and the University of Texas at Austin; another group from MIT, Yale and Rensselaer Polytechnic Institute; and a fourth from Stealth Software Technologies, a Los Angeles-based technology company.
Gary Edwards

Is The US Using Prism To Engage In Commercial Espionage Against Germany And Others? | Techdirt - 1 views

www.techdirt.com/...e-against-germany-others.shtml

NSA-Patriot-Act-NDAA

shared by Gary Edwards on 07 Aug 13 - No Cached
  • Gary Edwards on 07 Aug 13
     
    Meanwhile, illegal NSA spying is expected to cost USA Cloud Computing companies $35 Billion in lost sales and services. "whistleblower Edward Snowden worked for the CIA, rather than the NSA. Here's the original text in the Guardian: By 2007, the CIA stationed him with diplomatic cover in Geneva, Switzerland. His responsibility for maintaining computer network security meant he had clearance to access a wide array of classified documents. That access, along with the almost three years he spent around CIA officers, led him to begin seriously questioning the rightness of what he saw. He described as formative an incident in which he claimed CIA operatives were attempting to recruit a Swiss banker to obtain secret banking information. Snowden said they achieved this by purposely getting the banker drunk and encouraging him to drive home in his car. When the banker was arrested for drunk driving, the undercover agent seeking to befriend him offered to help, and a bond was formed that led to successful recruitment. In that quotation, there's the nugget of information that the CIA was not targeting terrorists on this occasion, at least not directly, but "attempting to recruit a Swiss banker to obtain secret banking information". That raises an interesting possibility for the heightened interest in Germany, as revealed by Boundless Informant. Given that the NSA is gathering information on a large scale -- even though we don't know exactly how large -- it's inevitable that some of that data will include sensitive information about business activities in foreign countries. That could be very handy for US companies seeking to gain a competitive advantage, and it's not hard to imagine the NSA passing it on in a suitably discreet way. Germany is known as the industrial and economic powerhouse of Europe, so it would make sense to keep a particularly close eye on what people are doing there -- especially if those people happen to work in companies that compete with US firms.
  • Paul Merrell on 08 Aug 13
     
    Closely related: see http://www.theguardian.com/business/2013/aug/02/telecoms-bt-vodafone-cables-gchq (,) an article on British telecom's collaboration with wiretapping by the UK's counterpart to the NSA, GCHQ. According to an inside source: "The source said analysts used four criteria for determining what was examined: security, terror, organised crime and Britain's economic wellbeing." I also recall that years ago during the furor over the Echelon system, an EU Parliament investigation had concluded that there were concrete instances of commercial intelligence being passed on by NSA to American companies. Specifically, I recall a finding that during development of the AirBus, details of its design had been intercepted by NSA and passed on to Boeing. There was testimony received that more generically discussed the types of economic surveillance conducted. http://cryptome.org/echelon-nh.htm (page search for "economic"). The same researcher stressed that in public statements: "Those targets like terrorism and weapons transport are used as a cover for the traditional areas of spying, the predominant areas of spying, which are political, diplomatic, economic and military."
Paul Merrell

NSA could have accessed Google, Yahoo data through private cable provider - RT USA - 0 views

rt.com/...nsa-snowden-level3-cable-336

surveillance state NSA Google Yahoo wiretap Level3

shared by Paul Merrell on 27 Nov 13 - No Cached
  • A new analysis of the National Security Agency’s covert eavesdropping operations suggests the private American company that supplies the likes of Google and Yahoo with fiber optic cables might have allowed the NSA to infiltrate those networks. Reporters at the New York Times wrote this week that Level 3 Communications — the Colorado-based internet company that manages online traffic for much of North America, Latin America and Europe — is likely responsible for letting the NSA and its British counterpart silently collect troves of sensitive data from the biggest firms on the web.
  • Nearly one month later, an article published this Monday by Nicole Perlroth and John Markoff at the Times says those interception points could have been approved by Level 3, who owns the cable infrastructure that the majority of America’s web traffic travels through. “People knowledgeable about Google and Yahoo’s infrastructure say they believe that government spies bypassed the big Internet companies and hit them at a weak spot — the fiber-optic cables that connect data centers around the world that are owned by companies like Verizon Communications, the BT Group, the Vodafone Group and Level 3 Communications,” Perlroth and Markoff wrote. “In particular, fingers have been pointed at Level 3, the world’s largest so-called Internet backbone provider, whose cables are used by Google and Yahoo.”
  • In a financial report made by the company and obtained by the paper, however, Level 3 is revealed to have much more of a relationship with the government then one that just involves the occasional compliance order. According to that report, the company announced, “We are party to an agreement with the US Departments of Homeland Security, Justice and Defense addressing the US government’s national security and law enforcement concerns. This agreement imposes significant requirements on us related to information storage and management; traffic management; physical, logical and network security arrangements; personnel screening and training and other matters.”
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  • When news of the eavesdropping operation surfaced last month, Christopher Soghoian, a technologist at the American Civil Liberties Union, speculated on Twitter that if Level 3 indeed allowed the government to tap its cables, they’d likely not be covered by the same legal protections in the Foreign Intelligence Surveillance Act, or FISA, that let feds conduct widespread surveillance over private companies’ data. If Level 3 voluntarily let NSA/GCHQ tap Google's data, the immunity available via FISA 702 orders won't apply and they can be sued.
Paul Merrell

Bigger than Libor? Forex probe hangs over banks - Nov. 20, 2013 - 0 views

money.cnn.com/...index.html

banksters forex foreign-exchange fraud

shared by Paul Merrell on 22 Nov 13 - No Cached
  • Yet another dark cloud is looming over global banks as officials examine their behavior in the massive foreign exchange market, threatening to deal a new blow to earnings and reputations. Regulators in the U.S., Europe and Asia are in the early stages of investigating whether traders at the world's top banks manipulated foreign exchange benchmarks to profit at the expense of their clients. Goldman Sachs (GS, Fortune 500), Citigroup (C, Fortune 500), JP Morgan (JPM, Fortune 500), Deutsche Bank (DB), Barclays (BCS), Royal Bank of Scotland (RBS), UBS (UBS) and HSBC (HBCYF)are among the firms in their sights. Financial lawyers say the probe could have steep and uncertain consequences as the impact of currency market abuse would reverberate far beyond Wall Street.
  • It's unwelcome timing for an industry already fighting a raft of legal battles over foreclosure abuses, misleading investors over mortgages and payment protection insurance. And then there's the Libor scandal. A global investigation into the setting of the London interbank lending rate, and related global benchmarks, has so far yielded about $3.6 billion in fines. Penalties for some of the biggest players are still to come. Traders have also faced criminal charges. As the extent of damage caused by Libor-rigging is revealed, lawyers say the probe into fixing currency rates could unfold in a similar way, and rival its impact. London is the center of the loosely regulated foreign exchange market, the biggest in the world's financial system with average daily turnover of $5.3 trillion. Proven abuse in this market would have a significant ripple effect, exposing offending firms to a host of legal action.
  • Paul Merrell on 22 Nov 13
     
    For more detail see http://money.cnn.com/2013/10/30/news/companies/global-forex-probe/ I'll get excited if and when major bankster executives face prison time. Until then, the "fines" against corporations are just a cost of doing business usually dwarfed by the unjust riches that one group of human beings fraudulently acquires from others. Reality check: corporations are an entirely imaginary legal fiction; it's actually people that are committing the misbehavior. Fines for corporations are as fictional as the corporations themselves; you must prosecute the people and send them to prison to deter bankster misbehavior.  And it is human beings working for another legal fiction, government, who are making the decisions to prosecute corporations rather than misbehaving people. 
Gary Edwards

Revealed: Obama's Immense Shadow Army & Its Shocking Takeover Plan - 1 views

www.libertynews.com/...rmy-its-shocking-takeover-plan

shared by Gary Edwards on 26 Oct 13 - No Cached
  • Gary Edwards on 26 Oct 13
     
    Is the ObamaCare train wreck a wreck by design? Another notch in the Bankster belt marking another step in the bankrupting of America? Revealed: Obama's Immense Shadow Army & Its Shocking Takeover Plan October 26, 2013  //  By: Eric Odom  //   The ObamaCare train wreck - it's awful, possibly purposeful, certainly useful for team Obama and its growing army of community activists and organizers. In a previous report, we explored the question, "What if the ObamaCare debacle is really a diversion, using a military term a "feint" - a tactical distraction to draw our attention, our focus and our fire away from the real point of attack on liberty?" Remember that horrible train wreck in Spain not long ago, captured on video? As tragic as it was, watching the crash and its gruesome aftermath was almost irresistible, wasn't it? Well, what if the disastrous rollout of the President's signature legislative achievement - what if this spectacular slow motion ObamaCare train wreck has been and is being allowed to happen so that what's going on around the bend from the fiery crash site gets little attention, from the public, from the media or from Congressional investigators? Think about it, friends. How could Barack Obama and his celebrated team of incredibly proficient, plugged in techies - the team that twice got him elected - be behind the utterly disastrous launch of the ObamaCare online storefront, healthcare.gov - arguably the biggest website failure in history? How could so much money have been spent to produce such a problem-plagued site that apparently was doomed in its developmental confusion? And how to fix this monumental mess, well, there doesn't seem to be any clear plan…other than hope. And now we learn that many, if not most, of the people actually signing up for ObamaCare through the website are enrolling in Medicaid, not signing up for private insurance policies they pay for, but adding their names onto government roll
  • Gary Edwards on 26 Oct 13
     
    There is no doubt in my mind that corporations (and their Chamber of Commerce boot licking lackys) believe that employer provided healthcare benefits was a HUGE MISTAKE. The key feature of ObamaCare is that of ENDING the HMO-Employee Healthcare profit draining quagmire these corporations somehow stumbled into. (Hint: they traded healthcare benefits for wide open government assisted Globalization - the new world order Merchantilism). IMHO, the insurance companies know full well that the entire HMO-Employee Healthcare bandwagon is going to end. Not because of socialism; because of profit hungry out of control mercantilism. So they are trying to cut the best deal possible with the government. The merchantilist doesn't care that their employees are going to suffer. They only care that this cost and the blame for losing the benefit is moved from their books to the government. Nor does the merchantilist care about protecting our borders. They want cheap labor. Even if the social cost of that cheap labor lands on the government and destroys the nation. That's why the merchantilist and his Bankster financiers support Open Borders. The merchantilist could care less about the trade deficit and the massive transfer of American manufacturing jobs overseas. As long as they can sell their junk back into the USA market without a 33% import tax these bastardos are happy to destroy their country. I wonder whose army and navy will secure their investments when the USA no longer can? Are their private armies enough? Just wondering.
Paul Merrell

Testosterone Pit - Home - NSA Revelations Kill IBM Hardware Sales in China - 0 views

www.testosteronepit.com/...m-hardware-sales-in-china.html

surveillance state NSA IBM NSA-blowback NSA-targets hardware hardware-backdoors

shared by Paul Merrell on 18 Oct 13 - No Cached
  • The first shot was fired on Monday. Teradata, which sells analytics tools for Big Data, warned that quarterly revenues plunged 21% in Asia and 19% in the Middle East and Africa. Wednesday evening, it was IBM’s turn to confess that its hardware sales in China had simply collapsed. Every word was colored by Edward Snowden’s revelations about the NSA’s hand-in-glove collaboration with American tech companies, from startups to mastodons like IBM.
  • The explanation is more obvious. In mid-August, an anonymous source told the Shanghai Securities News, a branch of the state-owned Xinhua News Agency, which reports directly to the Propaganda and Public Information Departments of the Communist Party, that IBM, along with Oracle and EMC, have become targets of the Ministry of Public Security and the cabinet-level Development Research Centre due to the Snowden revelations. “At present, thanks to their technological superiority, many of our core information technology systems are basically dominated by foreign hardware and software firms, but the Prism scandal implies security problems,” the source said, according to Reuters. So the government would launch an investigation into these security problems, the source said. Absolute stonewalling ensued. IBM told Reuters that it was unable to comment. Oracle and EMC weren’t available for comment. The Ministry of Public Security refused to comment. The Development Research Centre knew nothing of any such investigation. The Ministry of Industry and Information Technology “could not confirm anything because of the matter’s sensitivity.”
  • I’d warned about its impact at the time [read.... US Tech Companies Raked Over The Coals In China]. Snowden’s revelations started hitting in May. Not much later, the Chinese security apparatus must have alerted IT buyers in government agencies, state-owned enterprises, and major independent corporations to turn off the order pipeline for sensitive products until this is sorted out. As Mr. Loughridge’s efforts have shown, it’s hard to explain any other way that hardware sales suddenly collapsed by “40%, 50%” in China, where they’d boomed until then. This is the first quantitative indication of the price Corporate America has to pay for gorging at the big trough of the US Intelligence Community, and particularly the NSA with its endlessly ballooning budget. For once, there is a price to be paid, if only temporarily, for helping build a perfect, seamless, borderless surveillance society. The companies will deny it. At the same time, they’ll be looking for solutions. China, Russia, and Brazil are too important to just get kicked out of – and other countries might follow suit. In September, IBM announced that it would throw another billion at Linux, the open-source operating system, to run its Power System servers – the same that China had stopped buying. It seems IBM was trying to make hay of the NSA revelations that had tangled up American operating system makers. Linux, free of NSA influence, would be a huge competitive advantage for IBM. Or so it would seem. Read.... The Other Reason Why IBM Throws A Billion At Linux (With NSA- Designed Backdoor)
  • ...1 more annotation...
  • The first shot was fired on Monday. Teradata, which sells analytics tools for Big Data, warned that quarterly revenues plunged 21% in Asia and 19% in the Middle East and Africa. Wednesday evening, it was IBM’s turn to confess that its hardware sales in China had simply collapsed. Every word was colored by Edward Snowden’s revelations about the NSA’s hand-in-glove collaboration with American tech companies, from startups to mastodons like IBM.
  • Paul Merrell on 18 Oct 13
     
    It's starting to look as though the price of NSA collaboration is bankruptcy. Look for Big Blue to attempt to recover the loss from the U.S. government via some juicy deal.
Paul Merrell

Core Secrets: NSA Saboteurs in China and Germany - The Intercept - 0 views

firstlook.org/...core-secrets

surveillance state NSA HUMINT China Germany South-Korea

shared by Paul Merrell on 11 Oct 14 - No Cached
  • The National Security Agency has had agents in China, Germany, and South Korea working on programs that use “physical subversion” to infiltrate and compromise networks and devices, according to documents obtained by The Intercept. The documents, leaked by NSA whistleblower Edward Snowden, also indicate that the agency has used “under cover” operatives to gain access to sensitive data and systems in the global communications industry, and that these secret agents may have even dealt with American firms. The documents describe a range of clandestine field activities that are among the agency’s “core secrets” when it comes to computer network attacks, details of which are apparently shared with only a small number of officials outside the NSA.
  • with vast amounts of customer data, including phone records and email traffic. But documents published today by The Intercept suggest that even as the agency uses secret operatives to penetrate them, companies have also cooperated more broadly to undermine the physical infrastructure of the internet than has been previously confirmed. In addition to so-called “close access” operations, the NSA’s “core secrets” include the fact that the agency works with U.S. and foreign companies to weaken their encryption systems; the fact that the NSA spends “hundreds of millions of dollars” on technology to defeat commercial encryption; and the fact that the agency works with U.S. and foreign companies to penetrate computer networks, possibly without the knowledge of the host countries. Many of the NSA’s core secrets concern its relationships to domestic and foreign corporations.
  • Sentry Eagle includes six programs: Sentry Hawk (for activities involving computer network exploitation, or spying), Sentry Falcon (computer network defense), Sentry Osprey (cooperation with the CIA and other intelligence agencies), Sentry Raven (breaking encryption systems), Sentry Condor (computer network operations and attacks), and Sentry Owl (collaborations with private companies). Though marked as a draft from 2004, it refers to the various programs in language indicating that they were ongoing at the time, and later documents in the Snowden archive confirm that some of the activities were going on as recently as 2012.
  • ...3 more annotations...
  • The agency’s core secrets are outlined in a 13-page “brief sheet” about Sentry Eagle, an umbrella term that the NSA used to encompass its most sensitive programs “to protect America’s cyberspace.” “You are being indoctrinated on Sentry Eagle,” the 2004 document begins, before going on to list the most highly classified aspects of its various programs. It warns that the details of the Sentry Eagle programs are to be shared with only a “limited number” of people, and even then only with the approval of one of a handful of senior intelligence officials, including the NSA director. “The facts contained in this program constitute a combination of the greatest number of highly sensitive facts related to NSA/CSS’s overall cryptologic mission,” the briefing document states. “Unauthorized disclosure…will cause exceptionally grave damage to U.S. national security. The loss of this information could critically compromise highly sensitive cryptologic U.S. and foreign relationships, multi-year past and future NSA investments, and the ability to exploit foreign adversary cyberspace while protecting U.S. cyberspace.”
  • The most controversial revelation in Sentry Eagle might be a fleeting reference to the NSA infiltrating clandestine agents into “commercial entities.” The briefing document states that among Sentry Eagle’s most closely guarded components are “facts related to NSA personnel (under cover), operational meetings, specific operations, specific technology, specific locations and covert communications related to SIGINT enabling with specific commercial entities (A/B/C).” It is not clear whether these “commercial entities” are American or foreign or both. Generally the placeholder “(A/B/C)” is used in the briefing document to refer to American companies, though on one occasion it refers to both American and foreign companies. Foreign companies are referred to with the placeholder “(M/N/O).” The NSA refused to provide any clarification to The Intercept.
  • Documents: Sentry Eagle Brief Sheet (13 pages) TAREX Classification Guide (7 pages) Exceptionally Controlled Information Listing (6 pages) ECI WHIPGENIE Classification Guide (7 pages) ECI Pawleys Classification Guide (4 pages) ECI Compartments (4 pages) CNO Core Secrets Slide Slices (10 pages) CNO Core Secrets Security Structure (3 pages) Computer Network Exploitation Classification Guide (8 pages) CNO Core Secrets (7 pages)
Paul Merrell

Spy Tech Company 'Hacking Team' Gets Hacked | Motherboard - 0 views

motherboard.vice.com/...mpany-hacking-team-gets-hacked

surveillance-state Hacking-Team hacking-the-spies

shared by Paul Merrell on 06 Jul 15 - No Cached
  • Sometimes even the cops get robbed. The controversial Italian surveillance company Hacking Team, which sells spyware to governments all around the world, including agencies in Ethiopia, Morocco, the United Arab Emirates, as well as the US Drug Enforcement Administration, appears to have been seriously hacked. Hackers have made 500 GB of client files, contracts, financial documents, and internal emails, some as recent as 2015, publicly available for download. Hacking Team’s spokesperson Eric Rabe did not immediately respond to Motherboard’s calls and email asking for verification that the hacked information is legitimate. Without confirmation from the company itself, it’s difficult to know what percentage of the files are real—however, based on the sheer size of the breach and the information in the files, the hack appears to be authentic. What’s more, the unknown hackers announced their feat through Hacking Team’s own Twitter account.
  • he hackers composed the tweets as if they were written by Hacking Team. “Since we have nothing to hide, we're publishing all our e-mails, files, and source code,” the hackers wrote in a tweet, which included the link to around 500 Gb of files. The hackers also started tweeting a few samples of internal emails from the company. One of the screenshots shows an email dated 2014 from Hacking Team’s founder and CEO David Vincenzetti to another employee. In the email, titled “Yet another Citizen Lab attack,” Vincenzetti links to a report from the online digital rights research center Citizen Lab, at the University of Toronto’s Munk School of Global Affairs, which has exposed numerous cases of abuse from Hacking Team’s clients. Hacking Team has never revealed a list of its clients, and has always and repeatedly denied selling to sketchy governments, arguing that it has an internal procedure to address human rights concerns about prospective customers.
  • It’s unclear exactly how much the hackers got their hands on, but judging from the size of the files, it’s certainly a large collection of internal files. A source who asked to speak anonymously due to the sensitivity of the issue, told me that based on the file names and folders in the leak, the hackers who hit Hacking Team "got everything." A few hours after the initial hack, a list of alleged Hacking Team customers was posted on Pastebin. The list includes past and current customers. Among the most notable, there are a few that were previously unknown, such as the FBI, Chile, Australia, Spain, and Iraq, among others.
  • ...1 more annotation...
  • The breach on Hacking Team comes almost a year after another surveillance tech company, the competing FinFisher, was hacked in a similar way, with a hacker leaking 40 Gb of internal files. FinFisher, like Hacking Team, sells surveillance software to law enforcement agencies across the world. Their software, once surreptitiously installed on a target’s cell phone or computer, can be used to monitor the target’s communications, such as phone calls, text messages, Skype calls, or emails. Operators can also turn on the target’s webcam and exfiltrate files from the infected device.
Paul Merrell

Here Are All the Sketchy Government Agencies Buying Hacking Team's Spy Tech | Motherboard - 0 views

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surveillance state Hacking-Team hacked

shared by Paul Merrell on 07 Jul 15 - No Cached
  • They say what goes around comes around, and there's perhaps nowhere that rings more true than in the world of government surveillance. Such was the case on Monday morning when Hacking Team, the Italian company known for selling electronic intrusion tools to police and federal agencies around the world, awoke to find that it had been hacked itself—big time—apparently exposing its complete client list, email spools, invoices, contracts, source code, and more. Those documents show that not only has the company been selling hacking tools to a long list of foreign governments with dubious human rights records, but it’s also establishing a nice customer base right here in the good old US of A. The cache, which sources told Motherboard is legitimate, contains more than 400 gigabytes of files, many of which confirm previous reports that the company has been selling industrial-grade surveillance software to authoritarian governments. Hacking Team is known in the surveillance world for its flagship hacking suite, Remote Control System (RCS) or Galileo, which allows its government and law enforcement clients to secretly install “implants” on remote machines that can steal private emails, record Skype calls, and even monitor targets through their computer's webcam. Hacking Team in North America
  • According to leaked contracts, invoices and an up-to-date list of customer subscriptions, Hacking Team’s clients—which the company has consistently refused to name—also include Kazakhstan, Azerbaijan, Oman, Saudi Arabia, Uzbekistan, Bahrain, Ethiopia, Nigeria, Sudan and many others. The list of names matches the findings of Citizen Lab, a research lab at the University of Toronto's Munk School of Global Affairs that previously found traces of Hacking Team on the computers of journalists and activists around the world. Last year, the Lab's researchers mapped out the worldwide collection infrastructure used by Hacking Team's customers to covertly transport stolen data, unveiling a massive network comprised of servers based in 21 countries. Reporters Without Borders later named the company one of the “Enemies of the Internet” in its annual report on government surveillance and censorship.
  • we’ve only scratched the surface of this massive leak, and it’s unclear how Hacking Team will recover from having its secrets spilling across the internet for all to see. In the meantime, the company is asking all customers to stop using its spyware—and likely preparing for the worst.
Paul Merrell

Hacking Team Asks Customers to Stop Using Its Software After Hack | Motherboard - 0 views

motherboard.vice.com/...-using-its-software-after-hack

surveillance state Hacking-Team hacked

shared by Paul Merrell on 07 Jul 15 - No Cached
  • But the hack hasn’t just ruined the day for Hacking Team’s employees. The company, which sells surveillance software to government customers all over the world, from Morocco and Ethiopia to the US Drug Enforcement Agency and the FBI, has told all its customers to shut down all operations and suspend all use of the company’s spyware, Motherboard has learned. “They’re in full on emergency mode,” a source who has inside knowledge of Hacking Team’s operations told Motherboard.
  • Hacking Team notified all its customers on Monday morning with a “blast email,” requesting them to shut down all deployments of its Remote Control System software, also known as Galileo, according to multiple sources. The company also doesn’t have access to its email system as of Monday afternoon, a source said. On Sunday night, an unnamed hacker, who claimed to be the same person who breached Hacking Team’s competitor FinFisher last year, hijacked its Twitter account and posted links to 400GB of internal data. Hacking Team woke up to a massive breach of its systems.
  • A source told Motherboard that the hackers appears to have gotten “everything,” likely more than what the hacker has posted online, perhaps more than one terabyte of data. “The hacker seems to have downloaded everything that there was in the company’s servers,” the source, who could only speak on condition of anonymity, told Motherboard. “There’s pretty much everything here.” It’s unclear how the hackers got their hands on the stash, but judging from the leaked files, they broke into the computers of Hacking Team’s two systems administrators, Christian Pozzi and Mauro Romeo, who had access to all the company’s files, according to the source. “I did not expect a breach to be this big, but I’m not surprised they got hacked because they don’t take security seriously,” the source told me. “You can see in the files how much they royally fucked up.”
  • ...2 more annotations...
  • For example, the source noted, none of the sensitive files in the data dump, from employees passports to list of customers, appear to be encrypted. “How can you give all the keys to your infrastructure to a 20-something who just joined the company?” he added, referring to Pozzi, whose LinkedIn shows he’s been at Hacking Team for just over a year. “Nobody noticed that someone stole a terabyte of data? You gotta be a fuckwad,” the source said. “It means nobody was taking care of security.”
  • The future of the company, at this point, it’s uncertain. Employees fear this might be the beginning of the end, according to sources. One current employee, for example, started working on his resume, a source told Motherboard. It’s also unclear how customers will react to this, but a source said that it’s likely that customers from countries such as the US will pull the plug on their contracts. Hacking Team asked its customers to shut down operations, but according to one of the leaked files, as part of Hacking Team’s “crisis procedure,” it could have killed their operations remotely. The company, in fact, has “a backdoor” into every customer’s software, giving it ability to suspend it or shut it down—something that even customers aren’t told about. To make matters worse, every copy of Hacking Team’s Galileo software is watermarked, according to the source, which means Hacking Team, and now everyone with access to this data dump, can find out who operates it and who they’re targeting with it.
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