U.S. Government Is Silent On Iran's Cyber Attacks Against U.S. Banks

U.S. Response To Bank Cyberattacks Reflects Diplomatic Caution, Vexes Bank Industry -- Washington Post

The United States, concerned that Iran is behind a string of cyberattacks against U.S. banking sites, has considered delivering a formal warning through diplomatic channels but has not pursued the idea out of fears that doing so could escalate hostilities, according to American officials.

At the same time, the officials said, the disruptive activity against the Web sites has not yet reached a level of harm that would justify a retaliatory strike.

The internal discussion reflects the complex nature of deciding when and how the United States should respond to hostile cyber-actions from other countries. It also reflects the pressure the administration is under from banking industry officials, who want to know what amount of pain or damage will justify a government response.

“We don’t have a clear view of what are the triggers — and we’ve asked,” said one industry official who has been involved in discussions with the administration and who spoke on the condition of anonymity. “They’ve just been very coy about it.”

Read more ....

My Comment: This policy of appeasement .... and it is appeasement .... is not going to end well. My prediction .... the Iranians are not going to back down because they regard these cyber attacks as pay-back for U.S. sanctions. In short .... this cyberwar is going to escalate.

The U.S. Is Now Engaged In A ‘Cyber Cold War’ Against China And Iran

West Point cadets work in shifts around the clock to check incoming and outgoing network traffic for suspicious activity. Courtesy West Point Public Affairs

U.S. Engaged in ‘Cyber Cold War’ with China, Iran -- Yasmin Tadjdeh, National Defense

The United States is fighting a secretive “cyber cold war” with Iran and China, a former Department of Homeland Security official said.

While the United States may have a military advantage against countries such as China and Iran, the nations may be more evenly matched in the cyberspace, Paul Rosenzweig, author of the book Cyber Warfare, said at the Heritage Foundation.

“The one thing that is most salient about cyberspace today is it’s the most distributed, dynamic, non-linear environment we’ve ever experienced. It changes every day. It spans the globe in ways we can hardly imagine,” said Rosenzweig, a visiting fellow at Heritage and the former DHS deputy assistant secretary for policy.

Read more ....

My Comment: I concur that most people are totally unaware of what is happening .... and more to the point, they do not care. But I do predict that on the day that a Cyber Pearl Harbor happens .... such as ATMs not working/energy grids breaking down/flight reservations all screwed up/cell networks down .... that is the day that everyone will notice.

U.S. House Intelligence Chairman: America Is Losing The Global Cyber War To China

House Intel Chair Mike Rogers Calls Chinese Cyber Attacks ‘Unprecedented’ -- ABC News

House Intelligence Committee Chair Mike Rogers, R-Mich., said it was “beyond a shadow of a doubt” that the Chinese government and military is behind growing cyber attacks against the United States, saying “we are losing” the war to prevent the attacks.

“They use their military and intelligence structure to steal intellectual property from American businesses, and European businesses, and Asian businesses, re-purpose it and then compete in the international market against the United States,” Rogers said this morning on “This Week.”

“It is unprecedented,” Rogers added. “This has never happened in the history of the world, where one nation steals the intellectual property to re-purpose it – to illegally compete against the country…and I’ll tell you, It is as bad as I’ve ever seen it and exponentially getting worse. Why? There’s no consequence for it.”

Read more ....

More News On House Intel Chair Mike Rogers Calling China's Cyber Attacks ‘Unprecedented’

Lawmakers Dismiss China’s Denials Over Cyberattacks -- New York Times
House Intelligence Chairman: U.S. ‘Losing’ Cyber War -- Wall Street Journal
US losing global cyber war to China - House Intelligence chairman -- RT
Calls mount for US action against Chinese hack attacks -- Phys.org

Report: President Obama Has The Authority To Order A Pre-Emptive Cyber Attack

Responding to a Digital Attack: The Times’s David E. Sanger discusses a secret legal review concerning President Obama’s powers in the face of a major cyberattack on the United States.

Broad Powers Seen for Obama in Cyberstrikes -- New York Times

WASHINGTON — A secret legal review on the use of America’s growing arsenal of cyberweapons has concluded that President Obama has the broad power to order a pre-emptive strike if the United States detects credible evidence of a major digital attack looming from abroad, according to officials involved in the review.

That decision is among several reached in recent months as the administration moves, in the next few weeks, to approve the nation’s first rules for how the military can defend, or retaliate, against a major cyberattack. New policies will also govern how the intelligence agencies can carry out searches of faraway computer networks for signs of potential attacks on the United States and, if the president approves, attack adversaries by injecting them with destructive code — even if there is no declared war.

Read more ....

More News On Reports That President Obama Now Has The Authority To Order A Pre-Emptive Cyber Attack

US law permits pre-emptive cyber strikes -- Sydney Morning Herald
Obama Has The Keys To America's Malware Arsenal -- Business Insider/The Atlantic
President Obama Now Authorized To Order Pre-emptive Cyber Attack -- Red Orbit
Pre-emption, Cyberstrikes and Presidential Authority -- Technorati
US military review backs pre-emptive cyber strikes -- Global Post/AFP
President given “broad authority” to order cyber attacks -- Ars Technica
Obama can 'order pre-emptive cyber-attack' if U.S. faces threat -- ZDNet
Report: Obama Can Authorize Pre-emptive Cyber Attack -- PCMag
Today’s NYT and WaPo Pieces on Cyber-Attacks -- Matthew Waxman, Lawfare
Cyberwar, out of the shadows -- Washington Post editorial
Cyber strikes would require Obama's approval under policy being developed -- Defense Systems

Another Cyber Attack On The U.S. Government

Department Of Energy Hit By 'Sophisticated' Cyber-Attack - And Authorities Believe Chinese Hackers Could Be Behind It -- Daily Mail

* U.S. Department of Energy was hacked in 'sophisticated' attack two weeks ago, Washington-based paper reports
* Thousands of personal files stolen, and authorities believe hackers could have been after classified documents
* Comes on the heels of New York Times, Wall Street Journal, and Washington Post hackings

The U.S. Department of Energy suffered a major security breach after a large cyber-attack that targeted computer networks, it was revealed today.

The Washington Free Beacon reported that an unknown group targeted the government organization two weeks ago and harvested the personal information of several hundred of its employees.

While the agency says that no confidential data was compromised, experts said that attackers could have been targeting that data.

Read more ....

More News On Another Cyber Attack Directed At The U.S. Government

Energy Department Hit In The Most Dangerous Cyber Attack Yet -- Business Insider
Sophisticated cyber-attack hits Energy Department, China possible suspect -- FOX News
Energy Department hacked, says no classified data was compromised -- Reuters
Cyber Breach: Energy Department networks hit by sophisticated cyber attack -- Washington Free Beacon
Energy Department Confirms January Hack -- PCMag
US Department of Energy hack disclosed employee information -- Computer World
Add the Department of Energy to the List of Agencies Nailed by Hackers -- Gizmodo
Trade group wants U.S.-China action on cyber security threats -- FOX News/Reuters
China mouthpiece rejects hacking allegations -- Sydney Morning Herald
What To Do About Chinese Cyber Espionage? -- Adam Segal, Council On Foreign Relations

China’s Campaign Of Cyber Attacks Is Reaching Epidemic Proportions

The People's Republic of Hacking -- Adam Segal, Foreign Policy

China’s campaign of cyber attacks has reached epidemic proportions. Can anything be done to stop it?

In an extraordinary story that has become depressingly ordinary, the New York Times reports that Chinese hackers "persistently" attacked the newspaper, "infiltrating its computer systems and getting passwords for its reporters and other employees." The attacks began around the time journalists were preparing a story on the massive wealth the family of China's Prime Minister Wen Jiabao has allegedly accumulated, but the methods, identification, and apparent objectives of the hackers have been seen before in previous attacks on defense contractors, technology companies, journalists, academics, think tanks, and NGOs. Bloomberg, which published a story on the wealth of the family of Xi Jinping, China's top leader, has also been reportedly attacked. While just one case in a sweeping cyber espionage campaign that appears endemic, the attack on the Times does highlight both the willingness of Beijing lean out and shape the narrative about China as well as the vulnerability the top leadership feels about how they are portrayed.

Read more ....

My Comment: It is only a matter of time before internet providers start blocking traffic from Chinese IP addresses, and governments start blacklisting known Chinese companies and individuals who are involved in this trade.

Syria's Brutal Cyberwar

Members of Free Syrian Army, who defected from the regular army, are seen in Kafranbel, near Idlib Syria July 28, 2012. REUTERS/Shaam News Network/Handout

In Syria, The Cyberwar Intensifies -- Defense News

The front pages have been dominated for more than a year by photos of young Syrian rebel fighters, armed and proud, battling an increasingly isolated Syrian military.

But amid the shooting, the atrocities and the bombings, there is a parallel war — a sophisticated cyber insurgency battling a shadowy team working on behalf of the Assad regime. The Syrians’ online conflict may be the most active cyberwar in recent memory, with extraordinary efforts by both sides to sabotage, disrupt and destroy. It may even foreshadow the way cyber battles will play out in future conflicts.

Read more ....

My Comment: If one wants to know what cyberwarfare will look like in the future .... what is happening in Syria right now is a good illustration of what to expect in future conflicts. The fact that many Syrian activists (who use YouTube and social media and who I have been following since the uprising began) are now either dead or have simply disappeared tells me how concerned and serious the Syrian regime is in combating and winning this part of the war. As for the rebels .... cyberspace has become a vital tool for them to coordinate and to win the propaganda war .... and a tool to launch cyberattacks against the Syrian government's own websites and networks.

Why Is The White House Silent On Iran's Cyberwar Against U.S. Banks?

John Bumgarner, a cyberwarfare expert on the Stuxnet computer attacks, works on his laptop computer in Charlotte, N.C., Dec. 1, 2011. (photo by REUTERS/John Adkisson)

US Withholds Evidence For Iran Cyberattacks -- Al-Monitor

Iran is a logical suspect in a barrage of cyberattacks that have hit major U.S. and international banks in recent months.

The so-called distributed denial of service attacks (DDoS) – which make it hard to access websites that are being bombarded with requests from hacker-run computers – seem understandable for two reasons: They could be revenge for the computer viruses such as Stuxnet that destroyed more than 1,000 Iranian centrifuges in 2010 and other covert assaults on Iran’s nuclear program. They could also be a response to draconian U.S.-led sanctions on Iranian banks that are making it difficult for Iran to conduct normal trade and especially to repatriate money from oil exports.

Read more ....

My Comment: This White House's silence is understandable (from their point of view) .... if the U.S. government publicly announces that Iran is attempting to bring down the U.S. banking system, the reaction among the American public would be .... to put it bluntly .... filled with concern and possibly panic.

The U.S. banking system is built on trust and reliability .... if a number of U.S. banks do become cyber-damaged to the point that their networks have become compromised and unreliable .... what would you think the response would be .... especially among those who have their financial assets in these banks. Think worse case scenario .... and then think of what a financial run on a bank would look like.

Are British Military Forces At Risk Of A 'Fatal' Cyber-Attack

UK Armed Forces At Risk Of 'Fatal' Cyber-Attack, MPs Warn -- The Guardian

Defence select committee says there are worrying gaps in MoD's cyber-strategy and calls for urgent ministerial intervention.

Britain's armed forces are at risk of being "fatally compromised" by a sustained cyber-attack because the military is dependent on technology that has no proven back-up, MPs have warned .

The potential vulnerability must be addressed urgently, according to the Commons defence select committee, as part of a broader effort across government to face up to the threats posed from cyberspace.

In a withering critique of the government's cyber-strategy, the committee concludes: "The government needs to put in place – as it has not yet done – mechanisms, people, education, skills, thinking and policies which take into account both the opportunities and the vulnerabilities that cyber presents. It is time the government approached this subject with vigour."

Read more ....

More News On British MPs Being Warned That The UK Armed Forces Are At Risk Of A 'Fatal' Cyber-Attack

British military at risk from cyber attack - watchdog -- Reuters
Reliance on computers could see Armed Forces 'fatally compromised' by terrorists mounting cyber attack -- Daily Mail
U.K. Must Focus on Defense Cyber Security, Lawmakers Say -- Bloomberg Businessweek
Cyber attack could defeat UK armed forces, MPs warned -- Scotsman
Cyber Attack Threat: UK Armed Forces Warned -- SKY News

Pentagon Lays The Groundwork For Future Cyberwars

Hatching Cyberwar: Pentagon Incubator Will Manage Weapons -- NextGov

The Pentagon’s research wing is setting up a technology incubator for Defense-funded developers to stitch together computer code to automate offensive cyber operations.

The Arlington, Va.-based experimental lab, called the Collaborative Research Space, will function as the test grounds for Plan X, a four-year funding drive to build a system to “control a cyber battlespace in real-time,” a newly-released contract document on the initiative reveals. The Defense Advanced Research Projects Agency wants onsite developers to build algorithms and combine code that could make it easier for planners to implement more proactive security measures and launch malware campaigns against adversaries. According to the document, DARPA seeks to build "an end-to-end system that enables the military to understand, plan, and manage cyberwarfare in real-time" and an "open platform architecture for integration with government and industry technologies."

Read more ....

Update: DARPA's Plan X program to define enabling technologies for U.S. cyber warfare strategy -- Military & Aerospace

My Comment: The Pentagon is finally getting it's act together on this emerging battlefield.

US Report: China Is Biggest Cyberthreat

China Most Threatening Cyberspace Force, U.S. Panel Says -- Bloomberg

China is “the most threatening actor in cyberspace” as its intelligence agencies and hackers use increasingly sophisticated techniques to gain access to U.S. military computers and defense contractors, according to the draft of an annual report mandated by Congress.

Chinese hackers are moving into “increasingly advanced types of operations or operations against specialized targets,” such as sensors and apertures on deployed U.S. military platforms, according to the report.

Read more ....

More News On A US Congressional report Labeling China As The Most Threatening Cyberspace Force

China is biggest cyberthreat says congressional report -- Salon
U.S. Commission Fingers China As Biggest Cyberthreat -- CIO
China is biggest US cyber threat, says Congressional panel -- Tech Radar
Chinese Cyber Warfare: Has the US Found a Smoking Gun? -- Minyanville

Israel Is Looking For 'Cyber Warriors'

The attack on this Syrian nuclear facility was possible only because Syrian air defence systems had been hacked and disabled Photo: REUTERS

Israel Invests Millions In Drive For Elite 'Cyber Warriors' -- The Telegraph

Israel has invested hundreds of millions of dollars in a drive to recruit an elite force of "cyber warriors".

The Jewish state is facing a dire shortage of "cyber-combat troops" and is scouring the Jewish Diaspora for exceptional, teenage computer minds to recruit to its cyber unit Intelligence Corps Unit 8200, a leading Israeli newspaper reported on Thursday.

"It has become clear that the demand for soldiers in this field is growing, which is why we're searching for solutions not only in Israel but abroad as well," a top officer in the Manpower Directorate told the Yedioth Aranoth.

The Israeli military has made cyber warfare a dominant priority as it looks ahead to the next five years. Military Intelligence Chief Major General Aviv Kochavi is reported to have allocated £320 million to his cyber programme.

Read more ....

My Comment: Another sign that cyberwar conflicts are coming.

U.S. Defense Secretary Panetta Warns Of A Cyber Pearl Harbor

Photo: Defense Secretary Leon Panetta seeks new standards to protect vital infrastructure. Francois Lenoir/Reuters

Panetta Warns of Dire Threat of Cyberattack on U.S. -- New York Times

Defense Secretary Leon E. Panetta warned Thursday that the United States was facing the possibility of a “cyber-Pearl Harbor” and was increasingly vulnerable to foreign computer hackers who could dismantle the nation’s power grid, transportation system, financial networks and government.

In a speech at the Intrepid Sea, Air and Space Museum in New York, Mr. Panetta painted a dire picture of how such an attack on the United States might unfold. He said he was reacting to increasing aggressiveness and technological advances by the nation’s adversaries, which officials identified as China, Russia, Iran and militant groups.

Read more ....

More News On US Defense Secretary Panetta Warning Of A Digital 911

Text of Speech by Defense U.S. Secretary Leon Panetta -- Defense News
Panetta lays out new cybersecurity policy -- Army Times
Panetta Issues Stiff 'Cyber Pearl Harbor' Warning -- Military.com
Leon Panetta warns of 'cyber Pearl Harbour' -- BBC
Panetta: 'Cyber-Pearl Harbor' possible -- UPI
U.S. Defense Chief Warns of Digital 9/11 -- Wall Street Journal
Panetta: Cyber threat is pre 9/11 moment -- CNN
Future cyber attacks could rival 9-11, cripple US, warns Panetta -- Computer World
Cyber attacks on infrastructure more critical, damaging, says Panetta -- Government Security News
Panetta warns of potentially devastating cyber attacks on U.S. economy -- Atlanta Business Journal
Panetta: Cyber intruders have already infiltrated US systems -- NBC
Pentagon Chief Reveals ‘Classified’ Cyber Threats … That You Read in August -- Danger Room
Panetta: 'Foreign Cyber-Actors Are Probing America's Critical Infrastructure' -- NPR

Cyberwar Is Spreading In West Asia

The Invisible War In West Asia -- Cherian Samuel, Real Clear World

Almost imperceptibly, West Asia has become the new frontline of the current manifestation of cyber warfare with various types of cyber weapons being deployed by parties whose identities can only be speculated upon, but presumed to be state and non-state actors from within the region and beyond. Since the discovery of the Stuxnet malware in 2010, no less than five other "cyber weapons" have made their appearance over the past two years. The two recent attacks on energy companies are particularly worrisome since they represent a relentless and rapid escalation in capabilities and intent on the part of the perpetrators.

Read more ....

My Comment: The New York Times editorial board is voicing the same concerns.

Update: China and Japan’s Cyber Détente -- Adam Segal, The Diplomat

NSA Chief: Cyber Espionage And Cyber Crime Cost $1 Trillion Per Year

Photo: Gen. Keith Alexander

NSA Chief: Cybercrime Constitutes The “Greatest Transfer Of Wealth In History” -- Josh Rogin, Foreign Policy

The loss of industrial information and intellectual property through cyber espionage constitutes the "greatest transfer of wealth in history," the nation's top cyber warrior Gen. Keith Alexander said Monday.

U.S. companies lose about $250 billion per year through intellectual property theft, with another $114 billion lost due to cyber crime, a number that rises to $338 billion when the costs of down time due to crime are taken into account, said Alexander, the director of the National Security Agency and commander of U.S. Cyber Command, in remarks Monday at the American Enterprise Institute.

"That's our future disappearing in front of us," Alexander said, quoting industry numbers to estimate that $1 trillion was spent globally last year on dealing with cyber espionage and cyber crime.

Read more ....

My Comment: I am skeptical of the stats that he is quoting .... Alexander said, quoting industry numbers to estimate that $1 trillion was spent globally last year on dealing with cyber espionage and cyber crime.

Cyber espionage and cyber crime costing more than the Afghan war .... hmmmm ... I doubt that.

Is The U.S. (And It's Allies) Launching Cyberattacks To Gain Time Against Iran?

Stuxnet And Flame – Gaining Time For An Attack Against Iran? -- Defpro

Is the Cyber War Against Iran a Preliminary Stage to Further Military Action?

09:58 GMT, July 5, 2012 Threats by malware in the internet, such as computer viruses, worms and complex spyware are omnipresent. Each day new malware is being introduced into the Internet, with the potential to cause significant economical damage during the course of a year. Users who want to protect their computers against such attacks currently rely on anti-virus programmes, which autonomously update themselves to be able to automatically ward off even the latest threats. Unfortunately, many users take this protection technology for granted, to the extent that they no longer bother about the danger of attacks from the Web. Awareness of computer safety issues is mostly not sharpened until a virus attack occurs on the personal computer. But by then it is generally too late, and considerable damage to the computer (or, worse, an entire computer network) cannot be prevented.

Read more ....

My Comment: A detailed analysis on cyber war and how it can lead to a more conventional conflict. In reference to Iran .... The strategy has always been one of buying time .... including launching cyber attacks.

Computer Worm Opens A New Era Of Warfare

Stuxnet: Computer Worm Opens New Era Of Warfare -- CBS News/60 Minutes

(CBS News) The most pernicious computer virus ever known wasn't out to steal your money, identity, or passwords. So what was the intricate Stuxnet virus after? Its target appears to have been the centrifuges in a top secret Iranian nuclear facility. Stuxnet showed, for the first time, that a cyberattack could cause significant physical damage to a facility. Does this mean that future malware, modeled on Stuxnet, could target other critical infrastructure -- such as nuclear power plants or water systems? What kind of risk do we face in this country? Steve Kroft reports.

The following script is from "Stuxnet" which originally aired on March 4, 2012 and was rebroadcast on July 1, 2012. Steve Kroft is the correspondent. Graham Messick, producer.

For the past year, the nation's top military, intelligence and law enforcement officials have been warning Congress and the country about a coming cyberattack against critical infrastructure in the United States that could affect everything from the heat in your home to the money in your bank account. The warnings have been raised before, but never with such urgency, because this new era of warfare has already begun.

Read more ....

My Comment: When it comes to cyber security, my number one worry is my money in my bank account. I always say that if one wants to focus attention to the dangers of a cyber attack .... start messing around with individual banking information .... trust me .... everyone will notice.

A Digital Pearl Harbor Is A Real Possibility

Ex-FBI Cyberexpert: Potential For Digital Pearl Harbor Is Real -- CNET

Shawn Henry talks to CNET about why he left public service and joined a private-sector firm, and he predicts that we will see an attack on critical infrastructure that has physical consequences.

After 24 years with the FBI, Shawn Henry retired late last month from his post as executive assistant director of the Criminal, Cyber, Response, and Service Branch of the agency. Today, he announced that he will be working for security startup CrowdStrike.

In a phone interview with CNET today, Henry discusses what he thinks are the biggest cybersecurity threats facing the country and why the bad guys always seem to be one step ahead.

Read more ....

Update: Several nations trying to penetrate U.S. cyber-networks, says ex-FBI official -- Washington Post

My Comment: Shawn Henry is in the business .... and he is right .... a digital Pearl Harbor is a real possibility, and one that will probably hit us in some distant future.

Duqu Is The Newest Cyber Virus Weapon Developed By The Creators Of Stuxnet

New Malicious Program by Creators of Stuxnet Is Suspected -- New York Times

The designers of Stuxnet, the computer worm that was used to vandalize an Iranian nuclear site, may have struck again, security researchers say.

Stuxnet, which infected tens of thousands of computers in 155 countries last year, created an international sensation when experts reported that it was designed as an American-Israeli project to sabotage Siemens Corporation computers used in uranium enrichment at the Natanz site.

The researchers say the new malicious program, which they call Duqu, is intended to steal digital information that may be needed to mount another Stuxnet-like attack.

Read more ....

My Comment: The first of many specially designed cyber viruses that we are going to have to confront in the years to come.

A Q&A From The Man Who Discovered The Stuxnet Virus On Future Threatsabout the potential threats

German industrial control systems expert, Ralph Langner, poses for a portrait in Boston on Tuesday. Ann Hermes/Staff

From The Man Who Discovered Stuxnet, Dire Warnings One Year Later -- Christian Science Monitor

Stuxnet, the cyberweapon that attacked and damaged an Iranian nuclear facility, has opened a Pandora's box of cyberwar, says the man who uncovered it. A Q&A about the potential threats.

One year ago a malicious software program called Stuxnet exploded onto the world stage as the first publicly confirmed cyber superweapon – a digital guided missile that could emerge from cyber space to destroy a physical target in the real world.

It took Ralph Langner about a month to figure that out.

While Symantec, the big antivirus company, and other experts pored over Stuxnet's inner workings, it was Mr. Langner, a industrial control systems security expert in Hamburg, who deciphered and tested pieces of Stuxnet's "payload" code in his lab and declared it a military-grade cyberweapon aimed at Iran's nuclear facilities.

Read more ....

My Comment: A sobering look at what is coming down the pipeline in regards to future computer viruses and their impact on our computer networks.