Post 9/11 CIA has Shifted its Emphasis for Foreign Ops

http://www.usatoday.com/tech/news/surveillance/2008-10-26-cia-gadgets_N.htm

By Peter Eisler, USA TODAY

LANGLEY, Va. — The CIA has more than doubled the number of science and technology officers sent overseas to support foreign spy operations since the terrorist attacks of Sept. 11, 2001.
“Hundreds” of the specially trained officers have moved abroad to provide eavesdropping and communications devices, disguises and other high-tech support for field agents as the CIA has re-emphasized intelligence collection from human sources, according to agency information provided in response to a USA TODAY inquiry.
The CIA said the increase represents a 150% hike in overseas staffing for its Directorate of Science and Technology (DS&T), which fills the role made famous by “Q” in James Bond films. The agency won’t disclose the exact number of officers involved because its budget and staffing are classified, but the figures represent a rare public acknowledgement of the heightened pace of its foreign operations. The shift also reflects an increased emphasis on “close access” programs, in which information is collected directly from sources on the ground, as opposed to remotely via satellite or aircraft.
The intelligence community’s needs for high-tech equipment have “changed fundamentally” since the start of the war on terrorism and “demand … has increased dramatically,” says Stephanie O’Sullivan, the deputy CIA director who heads the Directorate of Science and Technology. For example, she adds, “there was a big explosion after 9/11 in the need for tracking and locating technology” to hunt leaders of al-Qa

Cyber-Scams on the Uptick in Downturn

http://online.wsj.com/article/SB123318475748226305.html

By M.P. McQueen

The bear economy is creating a bull market for cyber-crooks.

Experts and law-enforcement officials who track Internet crime say scams have intensified in the past six months, as fraudsters take advantage of economic confusion and anxiety to target both consumers and businesses.

Thieves are sending out phony emails and putting up fake Web sites pretending to be banks, mortgage-service providers or even government agencies like the Federal Bureau of Investigation or the Federal Deposit Insurance Corp. Cellphones and Internet-based phone services have also been used to seek out victims. The object: to drain customer accounts of money or to gain information for identity theft.

Avivah Litan, vice president with Internet-technology research company Gartner Inc., said clients are telling her that cyber-assaults on many banks have doubled in the past six months in the U.S. and other parts of the world, including the U.K., Canada, Mexico and Brazil. Though most are thwarted by computer-security defenses, such as spam filters and fraud-detection systems, that still leaves potentially millions of victims.

“They are all experiencing a lot more attacks, and a lot more ATM fraud” aimed at depositors’ accounts, Ms. Litan said.

More than 800 complaints have been logged by the National White Collar Crime Center in Richmond, Va., so far this year from checking-account customers in the U.S. about mysterious, unauthorized transactions of $10 to $40 that appear on monthly statements. Craig Butterworth, a spokesman for the center, a federally funded group that assists police agencies, said investigators suspect a data breach or “phishing” campaign, where deceptive emails and text messages are used to acquire personal information, such as Social Security numbers, user names and passwords. Separately, a “penny” scam of phantom credit- and debit-card charges from 21 cents to 48 cents has generated 300 complaints, Mr. Butterworth said.

The FBI’s Internet Crime Complaint Center confirms a increase in cyber-attacks. In its most recent Internet Crime Report, the FBI said it received 207,000 complaints about crimes perpetrated over the Internet in 2007, the latest year for which data are available, amounting to nearly $240 million in reported losses, or $40 million more than a year earlier. Organized groups in the U.S. and elsewhere are behind many of the crimes, experts say.

Until recently, most attacks were scattershot, with spam emails blasted randomly to thousands of computer users at once. Now crooks are starting to single out specific targets identified through prior research, a tactic called “spear phishing.” In these attacks, emails are sent to the offices of wealthy families or to corporate money managers, for example. They address potential victims by name and company or appear to come from an acquaintance.

Justice: Hackers Steal 40 Million Credit Card Numbers

http://articles.cnn.com/2008-08-05/justice/card.fraud.charges_1_card-numbers-debit-magnetic-strips?_s=PM:CRIME

Eleven people were indicted Tuesday for allegedly stealing more than 40 million credit and debit card numbers, federal authorities said.

The indictments, which alleged that at least nine major U.S. retailers were hacked, were unsealed Tuesday in Boston, Massachusetts, and San Diego, California, prosecutors said.

It is believed to be the largest hacking case that the Justice Department has ever tried to prosecute.

Three of the defendants are from the United States; three are from Estonia; three are from Ukraine, two are from China and one is from Belarus.

The remaining individual is known only by an alias and authorities do not know where that person is.

Under the indictments, three Miami, Florida, men — Albert “Segvec” Gonzalez, Christopher Scott and Damon Patrick Toey — are accused of hacking into the wireless computer networks of retailers including TJX Companies, whose stores include Marshall’s and T.J. Maxx, BJ’s Wholesale Club, OfficeMax, Barnes and Noble and Sports Authority, among others.

The three men installed “sniffer” programs designed to capture credit card numbers, passwords and account information as they moved through the retailers’ card processing networks, said Michael Sullivan, the U.S. attorney in Boston.

“This has other personal numbers that could give them access to credit or debit cards that have already been issued and are active,” Sullivan told CNN. iReport.com: Have you been a victim of identity theft?

The probe began in late 2006, Sullivan said. In addition to the Justice Department, the Secret Service has been conducting an undercover investigation for more than three years through the U.S. attorney’s office in San Diego, he said.

U.S. at Risk of Cyberattacks, Experts Say

http://articles.cnn.com/2008-08-18/tech/cyber.warfare_1_hackers-internet-assault-web-sites?_s=PM:TECH

The next large-scale military or terrorist attack on the United States, if and when it happens, may not involve airplanes or bombs or even intruders breaching American borders.

Instead, such an assault may be carried out in cyberspace by shadowy hackers half a world away. And Internet security experts believe that it could be just as devastating to the U.S.’s economy and infrastructure as a deadly bombing.

Experts say last week’s attack on the former Soviet republic of Georgia, in which a Russian military offensive was preceded by an Internet assault that overwhelmed Georgian government Web sites, signals a new kind of cyberwar, one for which the United States is not fully prepared.

“Nobody’s come up with a way to prevent this from happening, even here in the U.S.,” said Tom Burling, acting chief executive of Tulip Systems, an Atlanta, Georgia, Web-hosting firm that volunteered its Internet servers to protect the nation of Georgia’s Web sites from malicious traffic.

“The U.S. is probably more Internet-dependent than any place in the world. So to that extent, we’re more vulnerable than any place in the world to this kind of attack,” Burling added. “So much of what we’re doing [in the United States] is out there on the Internet, and all of that can be taken down at once.”

“This is such a crucial issue. At every level, our security now is dependent on computers,” said Scott Borg, director of the United States Cyber Consequences Unit, a nonprofit research institute. “It’s a whole new era. Political and military conflicts now will almost always have a cyber component. The chief targets will be critical infrastructure, and the attacks will emerge from within our own computer systems.”

Fighting the Agents of Organized Cybercrime

http://articles.cnn.com/2008-05-08/tech/digitalbiz.cybercrime_1_malware-hackers-phishing-sites?_s=PM:TECH

Back in the good old days of the Internet, the hacker was a teenager motivated by high-tech pranks and bragging rights. Today, the online thief could be anyone with ‘Net access after a quick buck.

“Hacking has escalated from a destructive nature to financial gain through phishing, targeting people for bank account details, and siphoning accounts from there,” says Derek Manky, security researcher at Fortinet.

“It’s a very sophisticated ecosystem, with organizations and services for hire,” he continues.

“There’s a lot of money floating around, a lot of people involved. Once the infrastructure and networks are in place, you start building that foundation, which can be further leveraged and taken to next level: denial of services, cyber warfare, espionage.”

In the Web 2.0 world of ubiquitous, seamless, horizontal communication, information wants to be free. But just as easily as it can be uploaded, downloaded and shared, it can be accessed and exploited by individuals with a different agenda.

While online communities in particular continue to grow through friendly social networking sites, underground cybercrime syndicates continue to thrive on these on-screen relationships based on sharing and trust.

And with social engineering the hottest commodity on the phishing market, it’s a question of knowing what literally what makes people click.

Experts: Internet Filtering and Censorship Rife

http://articles.cnn.com/2008-08-21/tech/internet.filtering_1_web-sites-great-firewall-block-access?_s=PM:TECH

Believe the conspiracy theories: Out of sight and without your knowledge, governments truly are filtering what you see on the Internet.
The recent conflict between Georgia and Russia has highlighted many of the issues at play with Internet filtering, as its increasing use by governments raises serious doubts about the freedom of the Web.
Georgian authorities blocked most access to Russian news broadcasters and Web sites after the outbreak of the conflict, and both sides reported Web sites being blocked, removed or attacked as the situation unfolded.
According to one of CNN’s iReporters in Georgia, the situation has been very frightening for citizens.
Andro Kiknadze said an online forum he used to organize supporters appeared to have been taken down, and he described a “cyberwar” in which some Web sites appear to be blocked.
“Please, please help us. We are losing our treasure, our freedom. I am almost crying because I’m seeing my country is falling,” Kiknadze said.
So, what is Internet filtering, and why all the fuss?
Filtering simply means restricting access, blocking or taking down Web sites.
Karin Karlekar, senior researcher at freedom promoter Freedom House, said there were several ways in which content could be “filtered.”
She said governments could use purpose-built filtering technology, censor Web sites, filter search results — with the assistance of multinational corporations, and block applications and circumvention tools — to stop online applications like Facebook, YouTube or Voice Over IPs that enable social networking.
And the use of these tactics appears to be quite widespread.
According to a 2007 report by the OpenNet Initiative, which surveyed more than 40 countries, almost two-thirds of the states involved were filtering content to some degree.
Ron Deibert, director of the Citizen Lab at the Munk Centre for Internet Studies at the University of Toronto, said in the research, “states are applying ever more fine grained methods to limit and shape the information environment to which their citizens have access.”

One Hacker’s Audacious Plan to Rule the Black Market in Stolen Credit Cards

http://www.wired.com/techbiz/people/magazine/17-01/ff_max_butler

The heat in Max Butler’s safe house was nearly unbearable. It was the equipment’s fault. Butler had crammed several servers and laptops into the studio apartment high above San Francisco’s Tenderloin neighborhood, and the mass of processors and displays produced a swelter that pulsed through the room. Butler brought in some fans, but they didn’t provide much relief. The electric bill was so high that the apartment manager suspected Butler of operating a hydroponic dope farm.
But if Butler was going to control the online underworld, he was going to have to take the heat. For nearly two decades, he had honed his skills as a hacker. He had swiped free calls from local telephone companies and sneaked onto the machines of the US Air Force. Now, in August 2006, he was about to pull off his most audacious gambit yet, taking over the online black markets where cybercriminals bought and sold everything from stolen identities to counterfeiting equipment. Together, these sites accounted for millions of dollars in commerce every year, and Butler had a plan to take control of it all.

Fears of Impostors Increase on Facebook

http://articles.cnn.com/2009-02-05/tech/facebook.impostors_1_facebook-spokesman-barry-schnitt-cnn-friends-track?_s=PM:TECH

February 05, 2009|From John Sutter and Jason Carroll CNN
Fears of impostors are increasing as Facebook’s membership grows.
Without his input, Bryan Rutberg’s Facebook status update — the way friends track each other — suddenly changed on January 21 to this frightening alert:
“Bryan NEEDS HELP URGENTLY!!!”
His online friends saw the message and came to his aid. Some posted concerned messages on his public profile — “What’s happening????? What do you need?” one wrote. Another friend, Beny Rubinstein, got a direct message saying Rutberg had been robbed at gunpoint in London and needed money to get back to the United States.
So, trying to be a good friend, Rubinstein wired $1,143 to London in two installments, according to police in Bellevue, Washington.
Meanwhile, Rutberg was safe at home in Seattle.
Rubinstein told CNN he misses the money, but it’s perhaps more upsetting to feel tricked by someone who impersonated his friend on Facebook, a social-networking site where millions of friends converse freely online.
“It’s an invasion of your whole privacy, who your friends are,” he said.
While reports of extortion and false impersonation have been common in phony phone calls and fake e-mails, similar fraud hasn’t been reported on Facebook until recently. Now a number of complaints are surfacing.
In response to the trend, the Better Business Bureau in late January issued a warning on its Web site, intended for Facebook’s 150 million users: know who your friends are and keep your sensitive information private.
In the Seattle case, a hacker appeared to steal Rutberg’s identity to get money from his friends by toying with their emotions

CSI: TCP/IP

http://www.wired.com/wired/archive/15.01/cybercop.html

Keep your friends close and your enemies closer. Why the Pentagon’s toughest Internet crime fighter likes hanging out with blackhat hackers.
By Robin Mejia
LOCATED ON THE LESS FASHIONABLE north end of the Las Vegas strip, the Riviera Hotel and Casino has seen better days. Even the girls in posters for the hotel’s topless revue could use a makeover. But hey, it’s cheap. Which is why 6,000 hackers have descended upon it for DefCon, billed as the “largest underground hacking event in the world.” So while the hotel is no doubt happy for the business, it’s also – in classic Vegas fashion – hedging its bet. Employees received a memo warning them to be on the lookout for people skimming guests’ card numbers. Credit card processing has been suspended in the food court. The Riviera doesn’t need the grief.
Yet the Riviera’s conference facilities are strangely tranquil. In the “chill-out room,” a bored-looking cashier is selling burgers, chicken sandwiches, and salads to people too focused or too lazy to walk across the hotel to the Quizno’s. On the wall next to the bar, someone is projecting usernames and the first few letters of the associated passwords – noobs sent that info unencrypted over the conference’s wireless network. At the front of the room, a middle-aged man in khaki shorts sits with a small group having a beer. He’s graying, a little thick around the middle. Across the back of his polo shirt are the words dod cyber crime response team – as in US Department of Defense.
A big guy with a shaved head walks up. “You’re Jim Christy,” he says, smiling. He has a hint of an accent.
Christy smiles back: “What’s your handle?”
“Oh, I don’t really have a handle.”
All hackers have handles. Christy pushes it. “But really,” he says, “what’s your handle?”
“Most guys go through that phase for a while, but for me, it was really just a couple of days. Not enough time for a handle.” They’re both smiling. Neither has broken eye contact.

Hathaway to Head Cybersecurity Post

http://online.wsj.com/article/SB123412824916961127.html

By SIOBHAN GORMAN
WASHINGTON — President Barack Obama will tap a top aide to President George W. Bush’s intelligence director to head his cybersecurity effort, according to government officials familiar with the decision. An announcement is expected as early as Monday.
The appointment of Melissa Hathaway, a former consultant at Booz Allen Hamilton, is the president’s first major decision on cybersecurity. She will lead a review of the government’s efforts to secure computer networks against spies, terrorists and economic criminals and is expected to then head a new White House office of cybersecurity.
Ms. Hathaway helped develop a Bush administration cybersecurity initiative, which was expected to cost around $30 billion over five years, with spending this year of about $6 billion. Ms. Hathaway’s new job is to carry out a 60-day review of the initiative and recommend a path forward.
On the campaign trail, Mr. Obama criticized the Bush administration for being too slow to address cyber threats and said he would create a “national cyber adviser” who would report directly to the president. “As president, I’ll make cyber security the top priority that it should be in the 21st century,” he said in a speech in July. He equated cyber threats with those of nuclear and biological weapons in a campaign ad he ran at the time.?