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Threat Weekly – A Situational Awareness Report from our Technical Security Team

Volume 2, Issue 11 – 15 March 2012

ThreatCon 1: Normal

Both Microsoft and Adobe have released important security patches this week. Computer devices are at elevated risk until they are patched.

TOP OF THE NEWS


Microsoft, Security Experts Warn ‘Wormable’ RDP Exploit Will Come Sooner Than Later

As a follow-up to its usual Patch Tuesday release this week, officials at Microsoft are warning users that an exploit against the recently disclosed Remote Desktop Protocol (RDP) vulnerability for Windows is likely to come in the next 30 days. According to a supplementary entry on its Security Research & Defence blog, Microsoft claims the “attractiveness” of the RDP vulnerability may make it especially appealing to hackers.

The hole is one of two vulnerabilities patched by Microsoft Security Bulletin MS12-020 yesterday [Tuesday 13th] as part of March’s Patch Tuesday. While the rest of the month’s bulletins ranged from important to moderate, the company rated MS12-020 critical and urged users to patch their systems as soon as possible.

The post, written by MSRC Engineering’s Suha Can and Jonathan Ness, stresses that RDP comes disabled on most computers and client workstations. RDP is a protocol that allows users to remotely access a PC or server. To exploit the vulnerability, hackers would simply need to send malicious packets of information to an RDP-enabled system. Some security experts have speculated that if exploited the hole could spark the beginning of an onslaught of new worms, some perhaps rivalling Conficker.

In an interview with Computerworld, nCircle Security’s Andrew Storms warned the hole “has all the ingredients for a class worm,” hinting at its ability to allow network execution without authentication, among other traits.

Jason Miller, manager of research and development at VMware, also speaking with Computerworld, guaranteed the vulnerability would be analysed by hackers. "Hackers want (vulnerabilities) that don't require authentication and are in a part of Windows that's widely used. I guarantee that attackers are going to look at this closely," Miller said.

Discussing the vulnerability with ZDNet Australia, HackLabs’ director Chris Gatford likened the hole to Microsoft’s critical MS08-067 which allowed attackers to run arbitrary code without authentication to be “used in the crafting of a wormable exploit” in 2008. Four days later, that hole was used by attackers, its exploit code published on the Internet. Eight days later, Conficker launched leading to widespread head scratching from researchers.

While Microsoft claims they haven't seen any active exploits for MS12-020 yet, it seems it will be a matter of time at this point.

http://threatpost.com/en_us/blogs/microsoft-security-experts-warn-wormable-rdp-exploit-will-come-sooner-later-031412


China Cyber Warfare Skills a Risk to U.S. Military: Report

China’s cyber warfare capabilities would pose a danger to U.S. military forces in the event of a conflict over Taiwan, according to a report by a U.S. congressional advisory panel released March 8. The report by defines contractor Northrop Grumman for the U.S.-China Economic and Security Review Commission said China’s People’s Liberation Army (PLA) has placed great emphasis on what is known as “information confrontation.” “Chinese capabilities in computer network operations have advanced sufficiently to pose genuine risk to U.S. military operations in the event of a conflict,” the report said. “(PLA) leaders have embraced the idea that successful warfighting is based on the ability to exert control over an adversary’s information and information systems,” it said. “PLA analysts consistently identify logistics and (command-and-control) infrastructure as U.S. strategic centres of gravity, which they would almost certainly target,” the report said.

The 135-page report outlined a possible scenario in the event of a U.S. defines of self-governing Taiwan — which Beijing considers to be a part of its territory awaiting reunification — from Chinese military attack. The PLA would target U.S. systems with “electronic countermeasures weapons and network attack and exploitation tools, likely in advance of actual combat to delay U.S. entry or degrade capabilities in a conflict,” it said. Difficulty in attributing responsibility for a cyber-attack could hamper the U.S. response, the report warned. “Even if circumstantial evidence points to China as the culprit, no policy currently exists to easily determine appropriate response options to a large scale attack on U.S. military or civilian networks in which definitive attribution is lacking,” the report said. “Beijing may seek to exploit this grey area in U.S. policymaking and legal frameworks to create delays in U.S. command decision-making,” it said.

The report also said that Chinese companies, some with foreign partners supplying critical technology, were giving the PLA access to cutting-edge research and technology. The report warned that the PLA’s ties with large Chinese telecommunications firms “creates an avenue for state sponsored or state directed penetrations of supply chains for electronics supporting the U.S. military, the U.S. government, and civilian industry.” This has the potential to cause the “catastrophic failure of systems and networks supporting critical infrastructure for national security or public safety,” it said.

Michael Wessel, a member of the commission, said the report “highlights China’s extensive development of cyber tools to advance the leadership’s objectives. “It’s getting harder and harder for China’s leaders to claim ignorance and innocence as to the massive electronic reconnaissance and cyber intrusions activities directed by Chinese interests at the U.S. government and our private sector,” Wessel said. “There’s clear and present danger that is increasing every day.”

The commission was created by Congress to report on the national security implications of trade and economic relations between China and the United States and the report comes as the Senate debates cybersecurity legislation.

In an unusually blunt report in November, a U.S. intelligence agency accused the Chinese of being the world’s “most active and persistent perpetrators” of economic espionage, particularly in cyberspace. China has repeatedly denied state involvement in cyber espionage against Western governments and companies, including well-publicized attacks on Internet giant Google that sparked a row between Washington and Beijing.

Source: http://www.defensenews.com/article/20120308/DEFREG02/303080006/China-Cyber-Warfare-Skills-Risk-U-S-Military-Report


Security experts say China hacked secret F-35 fighter jet plans from BAE Systems

Chinese spies hacked into computers belonging to BAE Systems, Britain's biggest defence company, to steal details about the design, performance and electronic systems of the West's latest fighter jet, senior security figures have disclosed. The Chinese exploited vulnerabilities in BAE's computer defences to steal vast amounts of data on the $300 billion F-35 Joint Strike Fighter, a multinational project to create a plane that will give the West air supremacy for years to come, according to the sources. The hacking attack has prompted fears that the fighter jet's advanced radar capabilities could have been compromised.

Details of the attack on BAE have been a closely guarded secret within Britain's intelligence community since it was first uncovered nearly three years ago. But they were disclosed by a senior BAE executive during a private dinner in London for cyber security experts late last year. One of those present said: "The BAE man said that for 18 months, Chinese cyber-attacks had taken place against BAE and had managed to get hold of plans of one of its latest fighters." BAE said: "We don't comment on allegations of cyber-attacks against the company. BAE Systems' own cyber security capability can detect, prevent and rectify such attacks."

A former US official, speaking last week on condition of anonymity, said the BAE Systems element of the JSF program had "almost certainly" been penetrated. However, he cautioned: "There are lots of aspects of weapons development. At least some aspects of it (the F-35 project) were targeted successfully by the Chinese. They didn't steal everything that was on that airplane, just some aspects."

The Chinese embassy in London described the claims as a "baseless allegation". It said China condemned all forms of online crime. Suspicions that the Joint Strike Fighter had been targeted by Chinese hackers first emerged in the US media in 2009.

Source: http://www.terminalx.org/2012/03/security-experts-say-china-hacked.html


Uncle Sam: If It Ends in .Com, It’s .Seizable

When U.S. authorities shuttered sports-wagering site Bodog.com last week, it raised eyebrows across the net because the domain name was registered with a Canadian company, ostensibly putting it beyond the reach of the U.S. government. Working around that, the feds went directly to VeriSign, a U.S.-based internet backbone company that has the contract to manage the coveted .com and other “generic” top-level domains.

EasyDNS, an internet infrastructure company, protested that the “ramifications of this are no less than chilling and every single organization branded or operating under .com, .net, .org, .biz etc. needs to ask themselves about their vulnerability to the whims of U.S. federal and state lawmakers.”

But despite EasyDNS and others’ outrage, the U.S. government says it’s gone that route hundreds of times. Furthermore, it says it has the right to seize any .com, .net and .org domain name because the companies that have the contracts to administer them are based on United States soil, according to Nicole Navas, an Immigration and Customs Enforcement spokeswoman.

The controversy highlights the unique control the U.S. continues to hold over key components of the global domain name system, and rips a Band-Aid off a historic sore point for other nations. A complicated web of bureaucracy and Commerce Department-dictated contracts signed in 1999 established that key domains would be contracted out to Network Solutions, which was acquired by VeriSign in 2000. That cemented control of all-important .com and .net domains with a U.S. company – VeriSign – putting every website using one of those addresses firmly within reach of American courts regardless of where the owners are located – possibly forever.

The government, Navas said, usually serves court-ordered seizures on VeriSign, which manages domains ending in .com, .net, .cc, .tv and .name, because “foreign-based registrars are not bound to comply with U.S. court orders.” The government does the same with the non-profit counterpart to VeriSign that now manages the .org domain. That’s the Public Interest Registry, which, like VeriSign, is based in Virginia.

Such seizures are becoming commonplace under the Obama administration. For example, the U.S. government program known as Operation in Our Sites acquires federal court orders to shutter sites it believes are hawking counterfeited goods, illegal sports streams and unauthorized movies and music. Navas said the U.S. government has seized 750 domain names, “most with foreign-based registrars.”

More on this story at: http://www.wired.com/threatlevel/2012/03/feds-seize-foreign-sites/


THE REST OF THE WEEK’S NEWS


More Symantec Source Code Posted to Internet

As expected, hackers have released the source code of Norton Antivirus 2006 on the net. According to the page on The Pirate Bay where the 1.1GB file has been posted as a torrent, the hackers go by the name of AntiSec and sympathise with the Anonymous hacker group. The posting is dedicated to a number of arrested LulzSec contributors whose release is called for by the hackers.

While Symantec has confirmed the source code's authenticity, the company has put the issue in perspective: the code is part of the 2006 version and its release has been anticipated for some time, said Symantec. The company added that internal analysis shows that, because of the age of the exposed code, there is no increased risk for the products in Symantec's current anti-virus and endpoint security portfolios. The current version's default security settings will suffice against any possible threats that might materialise as a result of this incident, said Symantec.

The code that has now been posted is believed to be the second portion of a large cache of code that was exposed during an incident in 2006. In February, the sources of pcAnywhere were posted on The Pirate Bay after an unsuccessful attempt to negotiate hush money. Symantec anticipates that the source code of Norton Internet Security 2006 will also be posted on the net in the near future.

Source: http://www.h-online.com/security/news/item/Source-code-of-Symantec-Antivirus-posted-on-the-net-1468974.html


Researchers Ask for Help Identifying Mystery Code in DuQu

Security researchers are appealing for help after discovering that part of the Duqu Trojan was written in an unknown programming language. Duqu is a sophisticated Trojan reckoned to have been created by the same group behind the infamous Stuxnet worm. While the finely tuned Stuxnet worm was designed to home in on specific industrial control systems – namely systems controlling high-speed centrifuges used by Iran's controversial nuclear enrichment plants – Duqu was created to fulfil the slightly different role of a backdoor where intruders could slip into SCADA-based systems and nick confidential information.

Securo-boffins at Kaspersky Lab have discovered during their research that Duqu uses the mystery code to communicate with its Command and Control (C&C) servers once it infects a compromised machine. Researchers at the Russian anti-virus firm have named this unknown section the "Duqu Framework".

Unlike the rest of Duqu, the Duqu Framework is not written in C++ and it's not compiled with Microsoft's Visual C++ 2008. The Kaspersky research team has gone some way in unravelling the mystery language used by the Duqu Framework, but still needs addition help. So far, the researchers have worked out what the mystery code does, but are still mostly in the dark about the grammar and syntax of the programming language, they said.

Kaspersky Lab researchers explained: "It is possible that its authors used an in-house framework to generate intermediary C code, or they used another completely different programming language. However, Kaspersky Lab researchers have confirmed that the language is object-oriented and performs its own set of related activities that are suitable for network applications.

The language in the Duqu Framework is highly specialised. It enables the Payload DLL to operate independently of the other Duqu modules and connects it to its dedicated C&C through several paths, including Windows HTTP, network sockets and proxy servers. It also allows the Payload DLL to process HTTP server requests from the C&C directly, stealthily transmit copies of stolen information from the infected machine to the C&C and even distribute additional malicious payload to other machines on the network, creating a controlled and discreet form of spreading infections to other computers."

Having gone as probably as far as they can, Kaspersky Lab is appealing to the programming community for support in analysing the mystery language used to build the malware. It wants to hear from coders who recognise either a framework, toolkit or a programming language that can generate similar code.

The creation of a dedicated programming language to construct the communications module shows how skilled the developers were, as well as providing evidence that significant financial resources were ploughed into developing the Duqu Trojan project. "Given the size of the Duqu project, it’s possible that an entirely different team was responsible for creating the Duqu Framework as opposed to the team that created the drivers and wrote the system infection exploits," explained Alexander Gostev, chief security expert at Kaspersky Lab. "With the extremely high level of customisation and exclusivity that the programming language was created with, it is also possible that it was made not only to prevent external parties from understanding the cyber-espionage operation and the interactions with the C&Cs, but also to keep it separate from other internal Duqu teams who were responsible for writing the additional parts of the malicious program."

Duqu was first detected in September 2011, but Kaspersky Lab reckons the first trace of Duqu-related malware dates all the way back to August 2007. The Russian security firm has logged more than a dozen incidents of Duqu infection, with the vast majority of victims located in Iran.

Source: http://www.theregister.co.uk/2012/03/08/duqu_trojan_mystery_code_riddle


U.K. ISPs lose appeal, must pay legal fees of file-sharing suspects

Under the United Kingdom's new Digital Economy Act, Internet service providers must pitch in on the legal costs incurred by people suspected of illegally sharing files on their network, an appeals court has ruled.

According to the Guardian, a U.K. court today ruled against an appeal brought by ISPs TalkTalk and BT. The companies, as well as their competitors, now must pay 25 percent of all "qualifying" costs related to establishing and operating an appeals body for alleged file sharers. Ofcom, a U.K.-based communications regulator, will pay the remaining 75 percent of the costs.

U.K. ISPs, which will also pay 25 percent of costs related to identifying alleged file sharers, received a single reprieve from the court: they won't need to pay case fees related to charges brought by the aforementioned appeals body.

Today's ruling now paves the way for the U.K.'s Digital Economy Act to be enforced across the country. The law, whose monetary ramifications have been under discussion for nearly two years, requires providers to disconnect subscribers from their broadband service, if they're found guilty of illegal file sharing. In 2009, the operating managers of all of the country's top ISPs spoke out against the bill. TalkTalk and BT were the last companies standing in its way--until today.

Source: http://news.cnet.com/8301-1009_3-57391558-83/u.k-isps-lose-appeal-must-pay-legal-fees-of-file-sharing-suspects


Browser Bug Hunters Collect Payoff in Pwn2Own

Researchers last Friday unveiled zero-day vulnerabilities in Google's Chrome and Mozilla's Firefox during the final day of two hacking challenges that awarded $210,000 to contestants. The Chrome vulnerabilities were submitted by a teenage researcher identified as "PinkiePie," who was only the second to participate in the Google-sponsored "Pwnium" event. After verifying that PinkiePie's work met Pwnium's requirement for a "full Chrome exploit" -- meaning that the two bugs were in the browser's own code and included a "sandbox escape" exploit -- Google awarded him $60,000. It was the second such payout during the three-day event. On Wednesday, Google paid $60,000 to Sergey Glazunov, a frequent recipient of bounties paid by Google throughout the year. In announcing PinkiePie's win, Jason Kersey, a Chrome program manager, called the researchers' exploits "works of art." Kersey also promised that Google would publish technical write-ups of the two Pwnium submissions.

On Saturday, Google patched Chrome to fix PinkiePie's vulnerabilities, the second time in three days that it updated the browser within 24 hours of obtaining bugs. Also on Friday, HP TippingPoint's Zero Day Initiative (ZDI) closed out its "Pwn2Own" hacking contest, which like Pwnium ran March 7-9 at the CanSecWest security conference in Vancouver, British Columbia.

On the last day of Pwn2Own, a two-man team -- Vincenzo Iozzo and Willem Pinckaers -- exploited a Firefox zero-day to take the contest's $30,000 second-place prize. Iozzo and Pinckaers, who also cranked out four other exploits of previously-patched vulnerabilities during Pwn2Own's on-site component, are no strangers to the contest. Last year, they made up two-thirds of a team that won $15,000 by hacking a BlackBerry smartphone.

A team from French security company Vupen won Pwn2Own's first-place prize of $60,000 by hacking Chrome and Microsoft's Internet Explorer earlier in the week. ZDI did not award Pwn2Own's third-place prize of $15,000 because only two teams participated in the contest. All told, the two events paid out $210,000 in prize money, a record at CanSecWest.

The duelling challenges were not on the original agenda for CanSecWest: A week before the conference opened, Google withdrew its Pwn2Own sponsorship over objections to that contest's practice of not requiring researchers to divulge "sandbox-escape" exploits. Google then announced its own Pwnium, and pledged to pay up to $1 million for hacks that exploited Chrome zero-day vulnerabilities. The code execution vulnerabilities used by the Vupen and Iozzo-Pinckaers teams during Pwn2Own will be reported to vendors today, ZDI said on Twitter last Friday.

The only browser not targeted at Pwn2Own was Apple's Safari, which went untouched for the first time in the contest's six-year history.

Source: http://www.pcworld.com/article/251671/browser_bug_hunters_collect_payoff_in_pwn2own.html


Porn site breached in hack attack

Hackers claim to have stolen the details of more than 73,000 subscribers to porn site Digital Playground. The data includes user names, email addresses and passwords. Also taken were the numbers, expiry dates and security codes for 40,000 credit cards. A previously unknown hacker group called The Consortium said it was behind the attack. Subscribers to the site have been contacted to let them know about the breach.

While Manwin investigates, the Digital Playground site has been taken offline. It is not accepting new members and its member’s area has also been taken offline. The Consortium posted some of the data it stole on the web and said security on the site was full of holes that "made it too enticing to resist" stealing the data. "This company has security, that if we didn't know it was a real business, we would have thought to be a joke - a joke that we found much more amusing than they will," wrote The Consortium in a log posted on the web.

Visible in the log were admin login names and passwords as well as a selection of the email addresses and user names of some members. Internal emails, details of the four servers underpinning the site and software licence keys were also posted. The Consortium claims some of the credit card data was stored in plain text form. The group claims to be connected to the Anonymous and LulzSec hacker groups.

Porn producer Digital Playground is based in California but its website is managed and run by Luxembourg-based firm Manwin. The London office of the company declined to comment on the attack. In a statement provided to porn industry news site AVN, Manwin said it took over management of the site on 1 March and said the breach may have occurred before it took charge. Manwin management was overseeing the investigation and Digital Playground subscribers had been contacted to let them know what had happened.

In late February, details of more than 6,000 users of YouPorn's discussion forums, known as YP Chat, were stolen. YP Chat stands separate to YouPorn which is administered by Manwin. Lax security at a third-party provider was blamed for the breach.

Source: http://www.bbc.co.uk/news/technology-17339508


GCHQ-backed competition names Cyber Security Champion

A 19-year-old university student has been named the UK's "Cyber Security Champion" following a competition sponsored by the intelligence agency GCHQ and several leading tech firms. Judges said Jonathan Millican had demonstrated knowledge "years beyond his time". The award in Bristol marks the culmination of a six-month long challenge designed to attract talented people to the cyberdefence industry. It coincides with high-profile attacks.

Last week the FBI charged six men - including two in the UK - with computer hacking crimes which it said had affected "over one million victims". The action prompted retaliatory attacks by the Antisec-wing of the Anonymous hacktivist movement.

On Saturday, James Jeffrey, from the West Midlands, pleaded guilty to breaking into the website of the British Pregnancy Advisory Service in a separate attack. He is accused of stealing details of people who had contacted the abortion provider.

The Sunday Times also reported that Chinese spies had stolen information of the F-35 Joint Strike Fighter jet from BAE Systems' computers. It said the incident had occurred three years ago and had been revealed by a BAE executive at a private dinner. The firm is not commenting. Chinese authorities denied being behind any such incident.

Mr Millican won the competition after taking part in a final series of challenges hosted by HP Labs which pitted six five-person teams against each other on Saturday.  These involved advising an online start-up company how best to protect itself against hackers during a role-playing exercise, and then reconfiguring a computer network during a 15-minute long simulated attack.

Although Mr Millican's team was beaten by a rival, judges decided he still deserved the top prize. "He showed great leadership, strong technical abilities and also demonstrated that he understood the impact what he was doing would have on a business," said Adam Thompson, the chief judge who works for Hewlett Packard's security team. Other judges involved were selected from sponsors, including the accountants PricewaterhouseCoopers, telecoms giant BT, defence firm Cassidian and the security technology maker Qinetiq.

Prizes were tailored towards each winner. Mr Millican - a first year computer sciences student at Jesus College, University of Cambridge - has been offered a paid follow-up masters degree at Royal Holloway, University of London. He has also been invited to visit communications intelligence agency GCHQ's Cheltenham base.

Jonathan Hoyle, director general for cyber security at GCHQ said: "It is through initiatives such as this that organisations, be they in the public or private sector, can continue to develop and maintain our leading edge in cyberspace by being able to recruit the right people with the right skills."

Baroness Pauline Neville-Jones, the competition's patron and the Prime Minister's special representative to business on cybersecurity, added that she hoped such events would encourage children to put their computer skills to constructive use, rather than be tempted to take part in illegal activities.

Finalists took part in a series of challenges held at HP Labs in Bristol "There are people who are hacking and one of the worrying things is that they are regarded as heroes," she told the BBC. "They are involved in the betrayal of both companies and ordinary people. We've seen cases of people's personal email addresses and passwords and bank details being posted online, opening these unfortunate individuals to crime. So they are definitely not heroes."

Mr Millican said he was most interested in the challenges posed by the more complex cyber-attacks - such as the Stuxnet worm which attacked Iran's nuclear systems or the Duqu Trojan suspected of being designed to gather intelligence from industries' control systems. "We're going into an age of cyberwarfare," he said. "Given all the critical systems we have in this country that are connected to the internet it's very important that there are experts out there that can keep people safe."

This was the second year the Cyber Security Challenge has been held.

Organisers are now accepting applications for their 2012/13 contest. They are planning changes to ensure that some of the youngest entrants, who typically would not make it through to the final stages, will be offered follow-up coaching.

Source: http://www.bbc.co.uk/news/technology-17333601


ANALYSIS-In cyber era, militaries scramble for new skills

With growing worries about the threat of "cyber warfare", militaries around the world are racing to recruit the computer specialists they believe may be central to the conflicts of the 21st century. But whilst money is plentiful for new forces of "cyber warriors", attracting often individualistic technical specialists and hackers into military hierarchies is another matter. Finding the people to command them is also tough. After a decade of messy and relatively low-tech ground wars in Iraq and Afghanistan, some senior western officers are if anything less confident with technology such as smartphones and tablet computers than their civilian contemporaries. But with the Pentagon saying its computers are being attacked millions of times every day, time is short.

"We are busy and we are getting busier every day," Lt Gen Rhett Hernandez, a former artillery officer who now heads U.S. Cyber Command, told a cyber security conference in London last month organised by British firm Defence IQ. "Cyberspace requires a world-class cyber warrior ... we must develop, recruit and retain in a different way to today."

Even in an era of shrinking western military budgets, funding for cyber security is ratcheting up fast. The Pentagon's 2012 budget allocated $2.5 million to improve cyber capabilities. In December, the U.S. Army announced its first "cyber brigade" was operational, whilst the U.S. Navy and Air Force have their own cyber "fleets" and "wings". Not only are they tasked with protecting key U.S. military systems and networks, but they are also working to build offensive skills that U.S. commanders hope will give them an edge in any future conflict. These, insiders say, include developing the ability to hack and destroy industrial and military systems such as traffic and electricity controls.

"For better or worse, it is American military thought that is leading American societal thought (in) how to think about things cyber," former CIA director and Air Force Gen Michael Hayden told a security conference in Munich this month.

European, Latin American, Asian and Middle Eastern and other nations are seen following suit. Militaries had barely considered the Internet only a few years ago are building new centres and training hundreds or even thousands of uniformed personnel. Russia and China are believed to put even greater emphasis on a field in which they hope to counter the conventional military dominance of the U.S. But some worry much investment may be wasted.

"My theory is that huge defence agencies - having little clue of what cyber warfare is all about - follow traditional approaches and try to train as many hacking skills as possible," says Ralph Langner, the civilian German cyber security expert who first identified the Stuxnet computer worm in 2010. "(The) idea could be to demonstrate hypothetical cyber power by sheer numbers, i.e. headcount." Many experts say the key to successful operations in cyberspace - such as the Stuxnet attack believed to have targeted Iran's nuclear program by reprogramming centrifuges to destroy themselves - is quality rather than quantity of technical specialists. "Only a very small number of people are the top notch that you would want to employ for a high-profile operation like Stuxnet," says Langner, saying that there might be as few as 10 world-class cyber specialists. "These people will probably not be covered with a military environment." Commanders say they are trying to change that, relaxing rules on issues such as hair length or fitness. But there are limits on how far such loosening can go. While the U.S. Air Force and Navy have significantly eased entry requirements for cyber specialists and removed some of the more arduous elements from basic training, the U.S. Army still requires its "cyber warriors" to endure regular basic training.

Speaking on condition of anonymity, one senior European officer with responsibility for cyber complained of struggling to find suitable recruits in part because of competition from the private sector. Agencies such as the U.S. National Security Agency and Britain's GCHQ say they lose some of their best talent to Microsoft and Google. But such agencies also pride themselves on their ability to find and retain the kind of eccentric expertise that would struggle to find their place in armies, navies, air forces or regular government departments. "Higher end capability isn't principally about spending large amounts of money and having large numbers of people," says John Bassett, a former senior GCHQ official and now senior fellow at London's Royal United Services Institute. "It's about having a small but sustainable number of very good people with imagination and will as well a technical know-how and we may be more likely to find them in an organisation like GCHQ than in the military."

Many experts say offensive cyber warfare capability - particularly anything potentially lethal such as the ability to paralyse essential networks - should be kept in the hands of the directly accountable military, not shadowy spy agencies. But most suspect the NSA, GCHQ and similar organisations will retain a considerable lead in technology and sophistication over their military counterparts. The U.S. NSA and military Cyber Command are both located at Fort Meade outside Washington DC, and intelligence experts say working closely together is already the norm - with the former providing much support and expertise to the latter.

Some other countries now appear keen to avoid ploughing too much money into uniformed military cyber specialists at all. Britain's Royal Corps of Signals and Royal Air Force in particular have been keen to get their hands on a share of the U.K.'s newly expanded 650 million-pound cyber budget, but much of it is seen going straight to GCHQ.

What militaries in general and top commanders in particular need to focus on most, specialists argue, is learning to integrate the new tools and threats into their broader conflict-related understanding and training. At the U.S. Naval War College in Rhode Island, mid-career military officers conducting "wargaming" exercises are now regularly confronted with the new cyber dimension. Systems malfunction, supply chains are attacked, and information corrupted or deleted.

Israel's raid on a suspected Syrian nuclear weapons site in 2007, when a cyber-attack was believed used to disable Syria's air defence radar, is seen a guide of how cyber can work alongside more conventional military operations. "It's a new form of warfare and it has to be appreciated, just as in the past you had new developments - siege warfare, trench warfare and air warfare" says Dick Crowell, associate professor of military operations at the college.

Understanding of cyber warfare in military circles is roughly analogous to the understanding of air power in the 1930s, he said, clearly important in any future conflict, but with the shape of its role still largely unclear. In new conflicts, those in charge may need to learn on their feet.

"What's really important is that you have senior commanders - three and four-star (general) level - who have a good enough understanding of it is to be able to integrate cyber into wider military campaigns," says former GCHQ official Bassett. "Cyber fits into the wider picture of warfare now, and they have to understand that." (Additional reporting by William Maclean in Munich; editing by Andrew Roche)

Source: http://www.trust.org/alertnet/news/analysis-in-cyber-era-militaries-scramble-for-new-skills/ Via G Forbes @OCEANUSlive


Crouching tiger, hidden dragon, stolen data

Cyber-attacks that originate in China have grown in both size and scope.

According to a whitepaper from penetration tester and security consultancy Context, Chinese attacks are targeted and designed to steal data that will furnish the perpetrator with political, commercial and security/intelligence information. It claimed that these requirements are carefully and clearly identified, shared with a number of government departments and constantly updated, and while there is evidence of worldwide targeting, only a minority of attacks are identified and fewer still are made public.

It said that the main protagonists in China are believed to be the Third Department of the People's Liberation Army, while the likely recipients of stolen commercial data are the 117 state-owned enterprises that dominate the economy. It said that these companies are closely linked to the Communist Party, which has power over strategy, senior management and even wages.

Spear-phishing tactics are often used, according to the paper, with attackers targeting one person with an email containing a malicious payload. Attackers also utilise website vulnerabilities to download malicious code onto a machine when a user clicks on a link in an email. Once the attacker has this foothold on the network, they typically look to download and use further hacking tools to escalate privileges to gain administrative access to key internal servers such as domain controllers or file servers. Once this is achieved, the attackers typically use another remote desktop or laptop on the network to collate the data stolen and exfiltrate it to their remote servers.

The main government targets that the Chinese state is most interested in fall into three groups: its nearest neighbours: Japan, Taiwan, Tibet, Mongolia and the Muslim ‘Stans' to the west; other powerful states with international influence such as the US, Russia, the UK, Germany, France and India; and finally states with strong economic links to China, including Brazil, Iran, Australia, parts of Africa and South-East Asia.

The paper also claimed that while the attacks have been going on since 2003, there is no incentive for China to stop as the more stolen data is exploited for the benefit of companies and the government, the greater the motive to continue with these operations.

It added that governments and large companies do not appear to be making much headway in solving this problem. It said that a combination of a reluctance to act, chronic under-investment in IT and a lack of user education about how to spot the warning signs of a potential attack means companies and organisations are extremely vulnerable.

It said: “In order to start rectifying the problem there is a need in the first instance to understand the problem. There needs to be an acceptance that this problem is not going to go away, that this is a business risk not at IT issue. Doing business with China carries extra risk in terms of data security, and traditional security products are unable to defend your data against this type of attack.

“Investigation of compromises needs to be thorough and conducted by people familiar with this problem and not simply the technical aspects of it. Above all, sensitive data must be segregated – it is not possible to defend everything.”

Source: http://www.scmagazineuk.com/crouching-tiger-hidden-dragon-stolen-data/article/231587/?DCMP=EMC-SCUK_Newswire


China suspected of Facebook attack on NATO's supreme allied commander

NATO’s most senior military commander has been repeatedly targeted in a Facebook scam thought to have been co-ordinated by cyber-spies in China, the Observer has learned. The spies are suspected of being behind a campaign to glean information about Admiral James Stavridis from his colleagues, friends and family, sources say. This involved setting up fake Facebook accounts bearing his name in the hope that those close to him would be lured into making contact or answering private messages, potentially giving away personal details about Stavridis or themselves. This type of "social engineering" impersonation is an increasingly common web fraud. NATO said it wasn't clear who was responsible for the spoof Facebook pages, but other security sources pointed the finger at China.

Last year, criminals in China were accused of being behind a similar operation, which was given the codename Night Dragon. This involved hackers impersonating executives at companies in the US, Taiwan and Greece so that they could steal business secrets. The latest disclosure will add to growing fears in the UK and US about the scale of cyber-espionage being undertaken by China. As well as targeting senior figures in the military, the tactic has been blamed for the wholesale theft of valuable intellectual property from some leading defence companies.

The sophistication and relentlessness of these "advanced persistent threat" cyber-attacks has convinced intelligence agencies on both sides of the Atlantic that they must have been state-sponsored. NATO has warned its top officials about the dangers of being impersonated on social networking sites, and awarded a £40m contract to a major defence company to bolster security at the organisation's headquarters and 50 other sites across Europe. A NATO official confirmed that Stavridis, who is the supreme allied commander Europe (Saceur), had been targeted on several occasions in the past two years: "There have been several fake Saceur pages. Facebook has cooperated in taking them down… the most important thing is for Facebook to get rid of them."

The official added: "First and foremost, we want to make sure that the public is not being misinformed. Saceur and NATO have made significant policy announcements on either the Twitter or Facebook feed, which reflects NATO keeping pace with social media. It is important the public has trust in our social media." NATO said it was now in regular contact with Facebook account managers and that the fake pages were usually deleted within 24 to 28 hours of being discovered. Finding the actual source in cases such as these is notoriously difficult, but another security source said: "The most senior people in NATO were warned about this kind of activity. The belief is that China is behind this."

Stavridis, who is also in charge of all American forces in Europe, is a keen user of social media. He has a genuine Facebook account, which he uses to post frequent messages about what he is doing, and where. Last year he used Facebook to declare that the military campaign in Libya was at an end.

The threat posed by Chinese cyber activity has been causing mounting concern in the UK and the US, where it is judged to be a systematic attempt to spy on governments and their militaries. They also accuse Beijing of being involved in the anonymous theft and transfer of massive quantities of data from the west. In a surprisingly pointed report to Congress last year, US officials broke with diplomatic protocol and for the first time challenged China directly on the issue. The National Counterintelligence Executive said Chinese hackers were "the world's most active and persistent perpetrators of economic espionage".

It said China appeared to have been responsible for "an onslaught of computer network intrusions". The report also claimed that Chinese citizens living abroad were being leaned on to provide "insider access to corporate networks to steal trade secrets". The use of moles was, it said, a clear exploitation of people who might fear for relatives in China.

Security analysts in Washington said they believed China had undertaken comprehensive cyber-surveillance of the computer networks that control much of America's critical infrastructure. This has stoked a political debate on Capitol Hill, where Democrats and Republicans are locked in an ideological battle about how to tackle cyber threats. President Barack Obama wants to introduce regulation to ensure companies are taking them seriously, but that approach is opposed by Republicans, including Senator John McCain.

James Lewis, a cyber expert from the Centre for Strategic and International Studies thinktank in Washington, said the time for dithering had passed. "We know that Russia and China have done the reconnaissance necessary to plan to attack US critical infrastructure," he said. "You might think we should put protection of critical infrastructure at a slightly higher level. It is completely vulnerable."

Shawn Henry, an executive assistant director at the FBI, told the Observer that the agency was dealing with thousands of fresh attacks every month. "We recognise that there are vulnerabilities in infrastructure. That's why we see breaches by the thousand every single month," he said. "There are thousands of breaches every month across industry and retail infrastructure. We know that the capabilities of foreign states are substantial and we know the type of information they are targeting."

The department of homeland security has been tasked by the White House with countering the cyber threat, but without making people lose confidence in the web. Its senior counsellor for cyber-security, Bruce McConnell, said: "The internet is civilian space. It is a marketplace. Like the market in Beirut in the 1970s, it will sometimes be a battleground. But its true nature is peaceful, and that must be preserved."

Source: http://www.guardian.co.uk/world/2012/mar/11/china-spies-facebook-attack-nato Via G Forbes @OCEANUSlive


Court date set for alleged Michael Jackson hackers

The trial of two UK men accused of hacking into Sony systems and downloading Michael Jackson's back catalogue is to begin on 7 January 2013 at Leicester Crown Court, solicitor Karen Todner has told ZDNet UK.

James Marks and Jamie McCormick are "eager to point out to Michael Jackson's fans and family that they would never do anything to harm the legacy that is Michael Jackson's music," and deny the allegations against them, Todner said in a statement on Wednesday.

The alleged theft of Jackson's back catalogue from Sony occurred at around the same time as LulzSec hacking attacks on Sony Entertainment. Marks and McCormick are not accused of taking part in the LulzSec attacks, Todner told ZDNet UK.

Source: http://www.zdnet.co.uk/blogs/security-bullet-in-10000166/court-date-set-for-alleged-michael-jackson-hackers-10025576/?s_cid=169


Iran Defence Forum users logins compromised and Leaked

Hacker with name "Le0n B3lm0nt" claimed to hack into the Iran Defence Forum website (irandefence.net) and leak user details of all 3,212 members including their usernames, Emails and Passwords.  Iran Defence Forum is an independent forum that is not associated with the Iranian Government, neither it is affiliated with any governmental or regulatory agencies nor related to any political or religious entity.

Hacker leak the database on Pastebin Note. Also two days before Iran hacked BBC Persian TV The Reason behind this attack is part of a broader attempt by the government to disrupt the BBC’s Persian service. This attack follows various tactics by the Iranian government, such as harassment, arrests, and threats against the relatives of BBC Persia correspondents who still live in Iran, in an effort to force the journalists to quit the Persian news service.

Source: http://thehackernews.com/2012/03/iran-defense-forum-users-logins.html


APT-Type Attack A Moving Target

Targeted attacks are evolving faster than victims can detect them, and it's not just about cyber-espionage anymore, either: Financially driven cybercriminals are also using advanced persistent threat (APT) methods for longer staying power in order to increase their spoils.  The APT attacker traditionally has been associated with Chinese cyberspies, but the types of attacks waged to steal intellectual property are increasingly blurring as new players and regions enter the landscape. Among the newcomers to this attack model are traditional, financially motivated cybercriminals and cyberspy attackers from Russia.

Recent research from Mandiant, HBGary, and Trustwave SpiderLabs demonstrates how the advanced targeted attack is becoming increasingly difficult to pin down.

While most organizations rely on security tools that detect malware, that's only part of the advanced attack equation, security experts say. "There are so many [of these] attacks going on now," says Greg Hoglund, CEO of HBGary, who says his firm is tracking around 18 different APT groups. "You're not looking for just malware -- it's behaviour you're looking for. They leave behind forensic evidence, [namely] things your employees don't do."

Mandiant, in its new annual M-Trends report on advanced threats, also says finding the malware from an APT or advanced attack is only the tip of the iceberg. According to data gathered by Mandiant in its investigations for clients, malware-infected machines represent only 54 percent of the systems compromised in the attack. In all cases, the attackers employed stolen, legitimate user credentials to move about the network. And these attackers aren't always coming up with their own zero-day attacks, either. In 77 percent of the cases Mandiant investigated, the attackers had used publicly available malware.

Mandiant and other security firms are also finding that the persistent, under-the-radar technique traditionally employed by Chinese hackers for stealing intellectual property is now also being adopted by cybercriminals out for financial gain rather than IP.

Researchers at Trustwave SpiderLabs have noticed that trend, as well. Nicholas Percoco, senior vice president and head of Trustwave SpiderLabs, recently noted this shift when discussing the firm's latest Global Security Report for 2011. "Attackers are becoming more sophisticated and without being detected," he said in an interview last month with Dark Reading. "Smash-and-grab attacks are few and far between. It's all about persistency: You hear a lot about espionage and APT attacks. But there's no reason why organized crime groups after financial information would not want to be using the same techniques [APTs] are."

Mandiant's report echoed the same trend. While these financially motivated attackers have often used the "smash-and-grab" approach with simple tools, that's changing, according to Mandiant. "Organized crime groups are adopting persistence mechanisms previously used by the advanced persistent threat. The long-term access these techniques enable allows the attacker to steal more data over a longer period of time to gain access to more lucrative data, and to ensure their data is a fresh as possible," according to Mandiant.

Among their weapons of choice for staying put longer and under the radar that Mandiant has seen are custom backdoors, publicly available backdoors, Web shells, Metasploit Meterpreter, and remote access utility tools. But it's the attacker's lateral movement within the targeted organization that can go unnoticed and incur the most damage. "A company could have 50,000 nodes, and you may find 100 machines exhibiting [certain behaviours]," some of which appear normal, but then another raises suspicion, such as a user opening up an interprocess communication port, Hoglund says.

Mandiant says that only 6 percent of victim organizations they helped discovered the attacks on their own. Most found out from external sources, including law enforcement. And these attacks typically go on for more than a year before they are found out.

While most of these attacks have ties to China, Russia also increasingly is showing up on the radar screen, as well. Both Mandiant and HBGary's Hoglund report spotting such activity out of Russia. "The two biggest threats to the U.S. are Russia and China," Hoglund says. "We've caught false flags before ... Russian [attackers] trying to insert Chinese language in there" to appear to be Chinese attackers, he says.

The trick is spotting and analysing the behaviours and not just the malware, security experts say. And don't assume you're immune, because these attacks are spreading across various industry sectors. According to Mandiant's report, 23 percent of the attacks are hitting the communications industry; 18 percent, aerospace and defence; 14 percent, computer hardware and software; 10 percent, electronics; 10 percent energy and oil and gas; and 25 percent in other various industries.

"I'm meeting more CSO's saying, 'All I care about is APT,'" says Bruce Schneier, CTO of BT Counterpane. "It's now all about agile security and detection."

http://www.darkreading.com/security-monitoring/167901086/security/attacks-breaches/232602533/apt-type-attack-a-moving-target.html