"Foreign Spies Stealing US Economic Secrets in Cyberspace"

With an inflammatory title like "Foreign Spies Stealing US Economic Secrets in Cyberspace," the Office of the National Counterintelligence Executive's "Report to Congress on Foreign Economic Collection and Industrial Espionage, 2009-2011" is tough to ignore.

The Report's conclusions are equally notable for their candor about the recent actions of the Chinese and Russian governments:

  • "Chinese actors are the world’s most active and persistent perpetrators of economic espionage. US private sector firms and cybersecurity specialists have reported an onslaught of computer network intrusions that have originated in China, but the IC cannot confirm who was responsible."
     
  • "Russia’s intelligence services are conducting a range of activities to collect economic information and technology from US targets."

The NCIX predictions for the future are sobering:

  • "Over the next several years, the proliferation of portable devices that connect to the Internet and other networks will continue to create new opportunities for malicious actors to conduct espionage. The trend in both commercial and government organizations toward the pooling of information processing and storage will present even greater challenges to preserving the security and integrity of sensitive information."
     
  • "The US workforce will experience a cultural shift that places greater value on access to information and less emphasis on privacy or data protection. At the same time, deepening globalization of economic activities will make national boundaries less of a deterrent to economic espionage than ever."

This last prediction is particularly disturbing, but visible, as users migrate from the relatively secure Blackberry platform to iPhones and other smartphones, trading security for an increased sense of utility.

Incident(s) of the Week: February A Tough Month For Hackers

1.  Arrested: Russian Hacker Responsible for Two Minutes of Roadside Porn 

The hacker who managed to compromise computer servers controlling a large commercial advertising screen in Moscow was arrested recently by Russian authorities.  On January 14, 2010, commuters on Moscow's Garden Ring Road passed a large-scale video screen and instead of the normal commercial advertisements saw two minutes of hard-core pornography.  The video, as well as the resulting traffic problems, was thanks to a hacker who is described as a 40 year old, unemployed man living in Novorossiisk.  Apparently, the hacker directed his attack from computers in Chechnya believing that Russian authorities would not bother to track him down.  A month later, the hacker is pleading guilty to criminal charges, insisting that  "he only wanted to entertain people."

2. China Shuts Down Largest Hacker Training Site

Last week, Chinese officials arrested three individuals allegedly responsible for running the Black Hawk Safety Net, a website that was known as the largest hacker training site in China.  The site apparently disseminated training materials and offered users the ability to download virus software, trojan programs and other hacker tools.  According to China Daily, Black Hawk Safety Net had more than 170,000 users and collected more than 7 million yuan in membership fees by the time authorities shut it down.  Authorities seized $1.7 million yuan, 9 servers and one automobile in the raid.