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Details of the Cloud Hopper Attacks

Reuters has a long article on the Chinese government APT attack called Cloud Hopper. It was much bigger than originally reported.

The hacking campaign, known as “Cloud Hopper,” was the subject of a U.S. indictment in December that accused two Chinese nationals of identity theft and fraud. Prosecutors described an elaborate operation that victimized multiple Western companies but stopped short of naming them. A Reuters report at the time identified two: Hewlett Packard Enterprise and IBM.

Yet the campaign ensnared at least six more major technology firms, touching five of the world’s 10 biggest tech service providers.

Also compromised by Cloud Hopper, Reuters has found: Fujitsu, Tata Consultancy Services, NTT Data, Dimension Data, Computer Sciences Corporation and DXC Technology. HPE spun-off its services arm in a merger with Computer Sciences Corporation in 2017 to create DXC.

Waves of hacking victims emanate from those six plus HPE and IBM: their clients. Ericsson, which competes with Chinese firms in the strategically critical mobile telecoms business, is one. Others include travel reservation system Sabre, the American leader in managing plane bookings, and the largest shipbuilder for the U.S. Navy, Huntington Ingalls Industries, which builds America’s nuclear submarines at a Virginia shipyard.

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NSA Hawaii

Recently I’ve heard Edward Snowden talk about his working at the NSA in Hawaii as being “under a pineapple field.” CBS News recently ran a segment on that NSA listening post on Oahu.

Not a whole lot of actual information. “We’re in office building, in a pineapple field, on Oahu….” And part of it is underground — we see a tunnel. We didn’t get to see any pineapples, though.

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More on the Five Eyes Statement on Encryption and Backdoors

Earlier this month, I wrote about a statement by the Five Eyes countries about encryption and back doors. (Short summary: they like them.) One of the weird things about the statement is that it was clearly written from a law-enforcement perspective, though we normally think of the Five Eyes as a consortium of intelligence agencies.

Susan Landau examines the details of the statement, explains what’s going on, and why the statement is a lot less than what it might seem.

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Five-Eyes Intelligence Services Choose Surveillance Over Security

The Five Eyes — the intelligence consortium of the rich English-speaking countries (the US, Canada, the UK, Australia, and New Zealand) — have issued a “Statement of Principles on Access to Evidence and Encryption” where they claim their needs for surveillance outweigh everyone’s needs for security and privacy.

…the increasing use and sophistication of certain encryption designs present challenges for nations in combatting serious crimes and threats to national and global security. Many of the same means of encryption that are being used to protect personal, commercial and government information are also being used by criminals, including child sex offenders, terrorists and organized crime groups to frustrate investigations and avoid detection and prosecution.

Privacy laws must prevent arbitrary or unlawful interference, but privacy is not absolute. It is an established principle that appropriate government authorities should be able to seek access to otherwise private information when a court or independent authority has authorized such access based on established legal standards. The same principles have long permitted government authorities to search homes, vehicles, and personal effects with valid legal authority.

The increasing gap between the ability of law enforcement to lawfully access data and their ability to acquire and use the content of that data is a pressing international concern that requires urgent, sustained attention and informed discussion on the complexity of the issues and interests at stake. Otherwise, court decisions about legitimate access to data are increasingly rendered meaningless, threatening to undermine the systems of justice established in our democratic nations.

To put it bluntly, this is reckless and shortsighted. I’ve repeatedly written about why this can’t be done technically, and why trying results in insecurity. But there’s a greater principle at first: we need to decide, as nations and as society, to put defense first. We need a “defense dominant” strategy for securing the Internet and everything attached to it.

This is important. Our national security depends on the security of our technologies. Demanding that technology companies add backdoors to computers and communications systems puts us all at risk. We need to understand that these systems are too critical to our society and — now that they can affect the world in a direct physical manner — affect our lives and property as well.

This is what I just wrote, in Click Here to Kill Everybody:

There is simply no way to secure US networks while at the same time leaving foreign networks open to eavesdropping and attack. There’s no way to secure our phones and computers from criminals and terrorists without also securing the phones and computers of those criminals and terrorists. On the generalized worldwide network that is the Internet, anything we do to secure its hardware and software secures it everywhere in the world. And everything we do to keep it insecure similarly affects the entire world.

This leaves us with a choice: either we secure our stuff, and as a side effect also secure their stuff; or we keep their stuff vulnerable, and as a side effect keep our own stuff vulnerable. It’s actually not a hard choice. An analogy might bring this point home. Imagine that every house could be opened with a master key, and this was known to the criminals. Fixing those locks would also mean that criminals’ safe houses would be more secure, but it’s pretty clear that this downside would be worth the trade-off of protecting everyone’s house. With the Internet+ increasing the risks from insecurity dramatically, the choice is even more obvious. We must secure the information systems used by our elected officials, our critical infrastructure providers, and our businesses.

Yes, increasing our security will make it harder for us to eavesdrop, and attack, our enemies in cyberspace. (It won’t make it impossible for law enforcement to solve crimes; I’ll get to that later in this chapter.) Regardless, it’s worth it. If we are ever going to secure the Internet+, we need to prioritize defense over offense in all of its aspects. We’ve got more to lose through our Internet+ vulnerabilities than our adversaries do, and more to gain through Internet+ security. We need to recognize that the security benefits of a secure Internet+ greatly outweigh the security benefits of a vulnerable one.

We need to have this debate at the level of national security. Putting spy agencies in charge of this trade-off is wrong, and will result in bad decisions.

Cory Doctorow has a good reaction.

Slashdot post.

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CIA Network Exposed through Insecure Communications System

Interesting story of a CIA intelligence network in China that was exposed partly because of a computer security failure:

Although they used some of the same coding, the interim system and the main covert communication platform used in China at this time were supposed to be clearly separated. In theory, if the interim system were discovered or turned over to Chinese intelligence, people using the main system would still be protected — and there would be no way to trace the communication back to the CIA. But the CIA’s interim system contained a technical error: It connected back architecturally to the CIA’s main covert communications platform. When the compromise was suspected, the FBI and NSA both ran “penetration tests” to determine the security of the interim system. They found that cyber experts with access to the interim system could also access the broader covert communications system the agency was using to interact with its vetted sources, according to the former officials.

In the words of one of the former officials, the CIA had “fucked up the firewall” between the two systems.

U.S. intelligence officers were also able to identify digital links between the covert communications system and the U.S. government itself, according to one former official — links the Chinese agencies almost certainly found as well. These digital links would have made it relatively easy for China to deduce that the covert communications system was being used by the CIA. In fact, some of these links pointed back to parts of the CIA’s own website, according to the former official.

People died because of that mistake.

The moral — which is to go back to pre-computer systems in these high-risk sophisticated-adversary circumstances — is the right one, I think.

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New Report on Chinese Intelligence Cyber-Operations

The company ProtectWise just published a long report linking a bunch of Chinese cyber-operations over the past few years.

The always interesting gruqq has some interesting commentary on the group and its tactics.

Lots of detailed information in the report, but I admit that I have never heard of ProtectWise or its research team 401TRG. Independent corroboration of this information would be helpful.

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Japan’s Directorate for Signals Intelligence

The Intercept has a long article on Japan’s equivalent of the NSA: the Directorate for Signals Intelligence. Interesting, but nothing really surprising.

The directorate has a history that dates back to the 1950s; its role is to eavesdrop on communications. But its operations remain so highly classified that the Japanese government has disclosed little about its work ¬≠ even the location of its headquarters. Most Japanese officials, except for a select few of the prime minister’s inner circle, are kept in the dark about the directorate’s activities, which are regulated by a limited legal framework and not subject to any independent oversight.

Now, a new investigation by the Japanese broadcaster NHK — produced in collaboration with The Intercept — reveals for the first time details about the inner workings of Japan’s opaque spy community. Based on classified documents and interviews with current and former officials familiar with the agency’s intelligence work, the investigation shines light on a previously undisclosed internet surveillance program and a spy hub in the south of Japan that is used to monitor phone calls and emails passing across communications satellites.

The article includes some new documents from the Snowden archive.

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