Tag Archives: New York Times

“Russian Hackers” brand

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The media constantly speculate about what “Russian hackers” are doing against Western targets. Publications such as The New York Times are increasingly concerned about “Russian hackers” in the energy and financial sectors in particular:

http://www.nytimes.com/2014/07/01/technology/energy-sector-faces-attacks-from-hackers-in-russia.html?nlid=58721173&src=recpb

http://bits.blogs.nytimes.com/2014/07/07/russian-arrested-in-guam-on-array-of-u-s-hacking-charges/

The term “Russian hackers” needs some clarification. Cyber operations in Russia are conducted by numerous entities with vastly different objectives, resources,  and constraints.

At least one distinct Russian military entity is tasked with infiltrating the critical infrastructure of potential adversaries, planting electronic/cyber bombs that can be activated when ordered, with a devastating result that would only be surpassed by a massive nuclear strike. This activity has been successfully carried out against the US for decades, and several generations of this malware are now sitting all over our critical infrastructure. Top American experts have deemed it practically impossible to detect and eliminate this malware. Welcome to the real world.

Totally different tasks are assigned to other Russian government entities. Acquiring technical/technological intelligence has been a traditional Russian favorite, and has become significantly more aggressive with the opportunities presented by cyberspace. This kind of  intelligence can save a lot of research money, effort and time while providing solutions with minimal delays. In the energy sector this is particularly significant for gaining competitive advantage  in world energy markets. The results are easy to coordinate since most of the Russian energy companies are government-controlled, which gives a great advantage to companies like Gasprom.

The financial sector offers a different kind of target. It attracts the concentrated attention of a wide variety of Russian hacking entities. This sector is simultaneously a part of our critical infrastructure, a vital resource for successful financial investment strategies for the vast amounts of various types of Russian money in the West (and East), and also a practically unlimited source of money to steal with little chance of being caught. Consequently, this industry is under attack from  all sorts of hackers: government, corporate, and private entrepreneurial.

This brief breakdown shows why so-called “Russian hackers” should be differentiated, and as a phenomenon it is certainly not unique to Russia. The players involved differ vastly in size, resources, sophistication and risk tolerance. Taking these differences into account enable us to better understand the nature, origin, and objective of Russian cyber attacks.

Privacy Posturing in the Great Cyber Triangle

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The recent New York Times article, “Internet Giants Erect Barriers to Spy Agencies,” reflects the current political rhetoric over privacy, but it also misrepresents the reality of the situation.

http://www.nytimes.com/2014/06/07/technology/internet-giants-erect-barriers-to-spy-agencies.html

The companies cited– Google, Facebook, Yahoo, and the like– are taking steps to make NSA interception of their data more difficult. But this is a basically political move. They are merely reducing levels of voluntary cooperation with the government. The simple truth is that with the cybersecurity technology currently available and deployed these companies are not capable of protecting themselves, and ultimately their customers, from cyber attacks.

In the great US-Russia-China Cyber Triangle each government has enjoyed the quasi-voluntary cooperation of its cyber-based large companies. The other two governments were simply attacking the companies at will, and with full success. Of course, the companies’ cooperation was helpful to their host government, but it should be clearly understood that this was merely a matter of convenience and efficiency, and had little bearing on the actual result.

So the only change this new US cyber company fad  is that it will take a little more effort by the US Government to get the same results. The other two sides of the great triangle aren’t affected (nor, for that matter, are several  other governments).

This might suggest that the only way to protect people’s privacy is a legislative approach that would prohibit the Government from spying on its own citizens. But then we have to clearly understand that while we can prohibit NSA collecting Americans’ personal and private data, we cannot prevent Russia or China from doing the same. This is a symmetrical situation: Russia and China, and any other country, cannot prohibit the US collecting whatever they want. The situation would be awkward indeed if only American Government cannot collect unrestricted information on Americans. Spying is the oldest profession, and it’s going to prosper for the foreseeable future.

There’s a simple conclusion to be drawn: until and unless we develop new and truly effective cybersecurity technologies all the discussions about our privacy are just exercises in political rhetoric.