U.S. Treasury breached by hackers backed by foreign government

https://www.nytimes.com/2020/12/13/us/politics/russian-hackers-us-government-treasury-commerce.html
Russian Hackers Broke Into Federal Agencies, U.S. Officials Suspect
In one of the most sophisticated and perhaps largest hacks in more than five years, email systems were breached at the Treasury and Commerce Departments. Other breaches are under investigation.


The Trump administration acknowledged on Sunday that hackers acting on behalf of a foreign government — almost certainly a Russian intelligence agency, according to federal and private experts — broke into a range of key government networks, including in the Treasury and Commerce Departments, and had free access to their email systems.

Officials said a hunt was on to determine if other parts of the government had been affected by what looked to be one of the most sophisticated, and perhaps among the largest, attacks on federal systems in the past five years.Several said national security-related agencies were also targeted, though it was not clear whether the systems contained highly classified material.

The Trump administration said little in public about the hack,
which suggested that while the government was worried about Russian intervention in the 2020 election, key agencies working for the administration — and unrelated to the election —were actually the subject of a sophisticated attack that they were unaware of until recent weeks.

“The United States government is aware of these reports, and we are taking all necessary steps to identify and remedy any possible issues related to this situation,” John Ullyot, a spokesman for the National Security Council, said in a statement. The Department of Homeland Security’s cybersecurity agency, whose leader was fired by President Trump last monthfor declaring that there had been no widespread election fraud, said in a statement that it had been called in as well.

The Commerce Department acknowledged that one of its agencies had been affected, without naming it. But it appeared to be the National Telecommunications and Information Administration, which helps determine policy for internet-related issues, including setting standards and blocking imports and exports of technology that is considered a national security risk.

The motive for the attack on the agency and the Treasury Department remains elusive, two people familiar with the matter said. One government official said it was too soon to tell how damaging the attacks were and how much material was lost, but according to several corporate officials, the attacks had been underway as early as this spring, meaning they continued undetected through months of the pandemic and the election season.

News of the breach, reported earlier by Reuters, came less than a week after the National Security Agency, which is responsible for breaking into foreign computer networks and defending the most sensitive U.S. national security systems, issued a warning that “Russian state-sponsored actors” were exploiting flaws in a system broadly used in the federal government.

At the time, the N.S.A. refused to give further details of what had prompted the urgent warning. Shortly afterward, FireEye, a leading cybersecurity firm, announced that hackers working for a state had stolen some of its prized tools for finding vulnerabilities in its clients’ systems — including the federal government’s. That investigation also pointed toward the S.V.R., one of Russia’s leading intelligence agencies. It is often called Cozy Bear or A.P.T. 29, and it is known as a traditional collector of intelligence.

FireEye’s clients, including the Department of Homeland Security and intelligence agencies, hire the firm to conduct ingenious but benign hacks of their systems using the company’s large database of techniques it has seen around the world. Its “red team” tools — essentially imitating a real hacker — are used to plug security holes in networks. So the hackers who stole FireEye’s tools have added to their arsenal. But it appears that FireEye was hardly their only victim.

The global campaign, investigators now believe, involved the hackers inserting their code into periodic updates of software used to manage networks by a company called SolarWinds
. Its products are widely used in corporate and federal networks, and the malware was carefully minimized to avoid detection.

The company, based in Austin, Texas, says it has more than 300,000 customers, including most of the nation’s Fortune 500 firms. But it is unclear how many of those use the Orion platform that the Russian hackers invaded, or whether they were all targets.

If the Russia connection is confirmed, it will be the most sophisticated known theft of American government data by Moscow since a two-year spree in 2014 and 2015,in which Russian intelligence agencies gained access to the unclassified email systems at the White House, the State Department and the Joint Chiefs of Staff. It took years to undo the damage, but President Barack Obama decided at the time not to name the Russians as the perpetrators — a move that many in his administration now regard as a mistake.

Emboldened, the same group of hackers went on to invade the systems of the Democratic National Committee and top officials in Hillary Clinton’s campaign, touching off investigations and fears that permeated both the 2016 and 2020 contests. Another, more disruptive Russian intelligence agency, the G.R.U., is believed to be responsible for then making public the hacked emails at the D.N.C.

“There appear to be many victims of this campaign, in government as well as the private sector,” said Dmitri Alperovitch, the chairman of Silverado Policy Accelerator, a geopolitical think tank, who was the co-founder of CrowdStrike, a cybersecurity firm that helped find the Russians in the Democratic National Committee systems four years ago. “Not unlike what we had seen in 2014-2015 from this actor, when they ran a massive campaign and successfully compromised numerous victims.”

Russia has been one of several countries that have also been hacking American research institutions and pharmaceutical companies. This summer, Symantec Corporation warned that a Russian ransomware group was exploiting the sudden change in American work habits because of the pandemic and were injecting code into corporate networks with a speed and breadth not previously seen.

According to private-sector investigators, the attacks on FireEye led to a broader hunt to discover where else the Russian hackers might have been able to infiltrate both federal and private networks. FireEye provided some key pieces of computer code to the N.S.A. and to Microsoft, officials said, which went hunting for similar attacks on federal systems. That led to the emergency warning last week.

Most hacks involve stealing user names and passwords, but this was far more sophisticated. Once they were in the SolarWinds network management software, the Russians, investigators said, were able to insert counterfeit “tokens,” essentially electronic indicators that provide an assurance to Microsoft, Google or other providers about the identity of the computer system its email systems are talking to. By using a flaw that is extraordinarily difficult to detect, the hackers were able to trick the system and gain access, undetected.

It is unclear exactly what they extracted; the situation is reminiscent of the Chinese hack of the Office of Personnel Management, which went on for a year in 2014 and 2015, with the loss eventually tallied at more than 22 million security-clearance files and more than five million fingerprints.

That turned out to be part of a much broader data-gathering effort by Beijing, which involved theft from the Starwood Hotels division of Marriott, the Anthem insurance database and Equifax, the credit reporting agency.

The history of Russian theft of critical data from the United States government stretches more than two decades and resulted in the creation of United States Cyber Command, the Pentagon’s quickly expanding cyberwarfare force. As early as the mid-1990s, the F.B.I. was called in for an investigation into networks that included Los Alamos and Sandia National Laboratories, which work on nuclear weapons design, among other issues.

In the minds of some experts, that Russian operation, soon called Moonlight Maze, never really ended.

“The activity described by the name — Russian cyberoperations against a wide variety of American targets — continues to this day,” Ben Buchanan, now at Georgetown University, and Michael Sulmeyer, now a senior adviser at Cyber Command, wrote for the Carnegie Endowment for International Peace in 2016.

FireEye should be investigated and then fired. Somebody inside must be providing info. to these hackers. There is no way somebody who is totally not familiar with the security structure of the US government networks can hack into the White House. But US has nothing to fear. In fact, I think they would be totally disappointed to find out how poor United States is, a country that is propped up by nothing but a mountain of debt. LOL
 
Can have a man on the moon in 1969, but cannot have a U.S.-only VPN in 2020?

You don't know how the internet works do you. Any geographical limits don't do anything. Do you think they actually connect directly from Russia to the target?
 
Comrade Overnight has a good idea hahaha. Yes, US should implement some sort business domain, call it .bz, for hosting all the business websites. Everyone, inside and outside the US must apply for admission something like certificate-based authentication (the idea is like passport for the virtual world). if one can't be authenticated, one can't join the domain. Let dot com be a domain for the dark businesses, or people want to have fun... the model would be slow, but it'd be safer.

it was vulnerability in the beloved software "Solarwinds", exploited by Russian for the Treasury Department hack.

https://www.theguardian.com/technol...nds-explained-us-treasury-commerce-department


What you need to know about the biggest hack of the US government in years
Russian agents are suspected in the Orion breach, which affected the treasury and commerce departments – and perhaps others

The US treasury department was affected by the breach. Photograph: Eric Baradat/AFP/Getty Images

Kari Paul
Tue 15 Dec 2020 18.05 EST


50
A vast trove of US government emails has been targeted in a hack thought to have been carried out by Russia, American officials revealed on Monday.

The stunningly large and sophisticated operation reportedly targeted federal government networks and marks the biggest cyber-raid against US officials in years. The treasury and commerce departments were both affected and others may have been breached.



Hackers gained entry into networks by getting more than 18,000 private and government users to download a tainted software update. Once inside, they were able to monitor internal emails at some of the top agencies in the US.

Here’s what you need to know, and what comes next.


Orion hack exposed vast number of targets – impact may not be known for a while
Read more

What happened?
The hack began as early as March, when malicious code was sneaked into updates to popular software called Orion, made by the company SolarWinds, which monitors the computer networks of businesses and governments for outages.

That malware gave elite hackers remote access to an organization’s networks so they could steal information.

Doing so may not have been difficult. Vinoth Kumar, a security researcher, told Reuters that, last year, he alerted the company that anyone could access SolarWinds’update server by using the password “solarwinds123”.

The breach was not discovered until the prominent cybersecurity company FireEye, which itself also uses SolarWinds, determined it had experienced a breach by way of the software. FireEye has not publicly blamed its own breach on the SolarWinds hack, but it reportedly confirmed that was the case to the tech site Krebs On Security on Tuesday.

The apparent months-long timeline gave the hackers ample time to extract information from many targets. Government officials have not yet stated which agencies were affected but the Centers for Disease Control and Prevention, the state department, and the justice department all use the software in question.

Charles Carmakal, a FireEye executive, said the company was aware of “dozens of incredibly high-value targets” compromised by the hackers and was helping “a number of organizations respond to their intrusions”. He would not name any but said he expected many more to learn in coming days that they, too, had been infiltrated.

Who has been affected, and how bad is it?
The scale of the hack is potentially global and, because the affected software touches many parts of a business, potentially devastating for organizations.

SolarWinds, of Austin, Texas, provides network-monitoring and other technical services to hundreds of thousands of organizations around the world, including most Fortune 500 companies and government agencies in North America, Europe, Asia and the Middle East.

Its compromised product, Orion, accounts for nearly half of SolarWinds’ annual revenue (the company has brought in more than $750m this year). Orion’s centralized monitoring looks for problems in an organization’s computer networks, which means that breaking in gave the attackers a “God view” of those networks.

“These types of tools are allowed deep access to systems,” said Brandon Hoffman, the chief information security officer at the California-based IT provider Netenrich. “The reason these systems are good targets is because they’re deeply embedded in systems operations and administration.”

SolarWinds said it sent an advisory to about 33,000 of its Orion customers who might have been affected, though it estimated a smaller number of customers – fewer than 18,000 – had actually installed the compromised product update earlier this year.

Neither SolarWinds nor US cybersecurity authorities have publicly identified which organizations were breached. Just because a company or agency uses SolarWinds as a vendor doesn’t necessarily mean it was vulnerable to the hacking.

FireEye described the malware’s dizzying capabilities – from initially lying dormant up to two weeks to hiding in plain sight by masquerading its reconnaissance forays as Orion activity. SolarWinds is working with FireEye as well as the FBI, the intelligence community, and other law enforcement to investigate the breach, said Kevin Thompson, the CEO and president of SolarWinds.

Because this software monitors entire networks, a large share of what companies and organizations do online is at risk of a breach. The hackers may have been monitoring email and other internal communications.

Who is behind the hack?
SolarWinds said it was advised that an “outside nation-state” had infiltrated its systems with malware. Neither the US government nor the affected companies have publicly said which nation-state they think is responsible.

A US official, speaking on condition of anonymity because of an ongoing investigation, told the Associated Press on Monday that Russian hackers were suspected. Russia said Monday it had “nothing to do with” the hacking.

“Once again, I can reject these accusations,” the Kremlin spokesman Dmitry Peskov told reporters. “If for many months the Americans couldn’t do anything about it, then, probably, one shouldn’t unfoundedly blame the Russians for everything.”

The infiltration tactic involved, known as the “supply-chain” method, recalled the technique Russian military hackers used in 2016 to infect companies that do business in Ukraine with the hard-drive-wiping NotPetya virus – the most damaging cyber-attack to date.

Advertisement
“We believe that this vulnerability is the result of a highly-sophisticated, targeted and manual supply chain attack by a nation-state,” SolarWind’s Thompson said.

Why do hacks like this matter, and what could happen next?
Espionage does not itself violate international law – and cyber-defense is hard. But retaliation against governments responsible for egregious hacks happens. Diplomats can be expelled. Sanctions can be imposed.

The Obama administration expelled Russian diplomats in retaliation for Kremlin military hackers’ meddling in Donald Trump’s favor in the 2016 election.

Cybersecurity “has not been a presidential priority” during the Trump administration and the outgoing president has been unable or unwilling to hold Russia to account for aggressive action in cyberspace, said Chris Painter, who coordinated cyber policy in the state department during the Obama administration.

“I think that contributes to Russia’s bravado,” he said. The Biden national security team has indicated it will be less tolerant and is expected to restore the position of the White House cybersecurity coordinator, eliminated by Trump.

The greater White House cybersecurity focus will be crucial, industry experts say.

An advisory issued by Microsoft, which assisted FireEye in the hack response, said it had “delivered more than 13,000 notifications to customers attacked by nation-states over the past two years and observed a rapid increase in [their] sophistication and operational security capabilities”.

SolarWinds may face legal action from private customers and government entities affected by the breach. The company filed a report with the Securities and Exchange Commission on Tuesday detailing the hack.

In it, the company said total revenue from affected products was about $343m, or roughly 45% of the firm’s total revenue. SolarWinds’ stock price has fallen 25% since news of the breach first broke.

The Associated Press contributed to this stor
 
Comrade Overnight has a good idea hahaha. Yes, US should implement some sort business domain, call it .bz, for hosting all the business websites. Everyone, inside and outside the US must apply for admission something like certificate-based authentication (the idea is like passport for the virtual world). if one can't be authenticated, one can't join the domain. Let dot com be a domain for the dark businesses, or people want to have fun... the model would be slow, but it'd be safer.

it was vulnerability in the beloved software "Solarwinds", exploited by Russian for the Treasury Department hack.

https://www.theguardian.com/technol...nds-explained-us-treasury-commerce-department


What you need to know about the biggest hack of the US government in years
Russian agents are suspected in the Orion breach, which affected the treasury and commerce departments – and perhaps others

The US treasury department was affected by the breach. Photograph: Eric Baradat/AFP/Getty Images

Kari Paul
Tue 15 Dec 2020 18.05 EST


50
A vast trove of US government emails has been targeted in a hack thought to have been carried out by Russia, American officials revealed on Monday.

The stunningly large and sophisticated operation reportedly targeted federal government networks and marks the biggest cyber-raid against US officials in years. The treasury and commerce departments were both affected and others may have been breached.



Hackers gained entry into networks by getting more than 18,000 private and government users to download a tainted software update. Once inside, they were able to monitor internal emails at some of the top agencies in the US.

Here’s what you need to know, and what comes next.


Orion hack exposed vast number of targets – impact may not be known for a while
Read more

What happened?
The hack began as early as March, when malicious code was sneaked into updates to popular software called Orion, made by the company SolarWinds, which monitors the computer networks of businesses and governments for outages.

That malware gave elite hackers remote access to an organization’s networks so they could steal information.

Doing so may not have been difficult. Vinoth Kumar, a security researcher, told Reuters that, last year, he alerted the company that anyone could access SolarWinds’update server by using the password “solarwinds123”.

The breach was not discovered until the prominent cybersecurity company FireEye, which itself also uses SolarWinds, determined it had experienced a breach by way of the software. FireEye has not publicly blamed its own breach on the SolarWinds hack, but it reportedly confirmed that was the case to the tech site Krebs On Security on Tuesday.

The apparent months-long timeline gave the hackers ample time to extract information from many targets. Government officials have not yet stated which agencies were affected but the Centers for Disease Control and Prevention, the state department, and the justice department all use the software in question.

Charles Carmakal, a FireEye executive, said the company was aware of “dozens of incredibly high-value targets” compromised by the hackers and was helping “a number of organizations respond to their intrusions”. He would not name any but said he expected many more to learn in coming days that they, too, had been infiltrated.

Who has been affected, and how bad is it?
The scale of the hack is potentially global and, because the affected software touches many parts of a business, potentially devastating for organizations.

SolarWinds, of Austin, Texas, provides network-monitoring and other technical services to hundreds of thousands of organizations around the world, including most Fortune 500 companies and government agencies in North America, Europe, Asia and the Middle East.

Its compromised product, Orion, accounts for nearly half of SolarWinds’ annual revenue (the company has brought in more than $750m this year). Orion’s centralized monitoring looks for problems in an organization’s computer networks, which means that breaking in gave the attackers a “God view” of those networks.

“These types of tools are allowed deep access to systems,” said Brandon Hoffman, the chief information security officer at the California-based IT provider Netenrich. “The reason these systems are good targets is because they’re deeply embedded in systems operations and administration.”

SolarWinds said it sent an advisory to about 33,000 of its Orion customers who might have been affected, though it estimated a smaller number of customers – fewer than 18,000 – had actually installed the compromised product update earlier this year.

Neither SolarWinds nor US cybersecurity authorities have publicly identified which organizations were breached. Just because a company or agency uses SolarWinds as a vendor doesn’t necessarily mean it was vulnerable to the hacking.

FireEye described the malware’s dizzying capabilities – from initially lying dormant up to two weeks to hiding in plain sight by masquerading its reconnaissance forays as Orion activity. SolarWinds is working with FireEye as well as the FBI, the intelligence community, and other law enforcement to investigate the breach, said Kevin Thompson, the CEO and president of SolarWinds.

Because this software monitors entire networks, a large share of what companies and organizations do online is at risk of a breach. The hackers may have been monitoring email and other internal communications.

Who is behind the hack?
SolarWinds said it was advised that an “outside nation-state” had infiltrated its systems with malware. Neither the US government nor the affected companies have publicly said which nation-state they think is responsible.

A US official, speaking on condition of anonymity because of an ongoing investigation, told the Associated Press on Monday that Russian hackers were suspected. Russia said Monday it had “nothing to do with” the hacking.

“Once again, I can reject these accusations,” the Kremlin spokesman Dmitry Peskov told reporters. “If for many months the Americans couldn’t do anything about it, then, probably, one shouldn’t unfoundedly blame the Russians for everything.”

The infiltration tactic involved, known as the “supply-chain” method, recalled the technique Russian military hackers used in 2016 to infect companies that do business in Ukraine with the hard-drive-wiping NotPetya virus – the most damaging cyber-attack to date.

Advertisement
“We believe that this vulnerability is the result of a highly-sophisticated, targeted and manual supply chain attack by a nation-state,” SolarWind’s Thompson said.

Why do hacks like this matter, and what could happen next?
Espionage does not itself violate international law – and cyber-defense is hard. But retaliation against governments responsible for egregious hacks happens. Diplomats can be expelled. Sanctions can be imposed.

The Obama administration expelled Russian diplomats in retaliation for Kremlin military hackers’ meddling in Donald Trump’s favor in the 2016 election.

Cybersecurity “has not been a presidential priority” during the Trump administration and the outgoing president has been unable or unwilling to hold Russia to account for aggressive action in cyberspace, said Chris Painter, who coordinated cyber policy in the state department during the Obama administration.

“I think that contributes to Russia’s bravado,” he said. The Biden national security team has indicated it will be less tolerant and is expected to restore the position of the White House cybersecurity coordinator, eliminated by Trump.

The greater White House cybersecurity focus will be crucial, industry experts say.

An advisory issued by Microsoft, which assisted FireEye in the hack response, said it had “delivered more than 13,000 notifications to customers attacked by nation-states over the past two years and observed a rapid increase in [their] sophistication and operational security capabilities”.

SolarWinds may face legal action from private customers and government entities affected by the breach. The company filed a report with the Securities and Exchange Commission on Tuesday detailing the hack.

In it, the company said total revenue from affected products was about $343m, or roughly 45% of the firm’s total revenue. SolarWinds’ stock price has fallen 25% since news of the breach first broke.

The Associated Press contributed to this stor

Google's outage is linked I bet. They either pulled the plug to run a security assessment/avoid spread or they got hit.
 
SolarWinds scandal is bigger than life: all 10 major telecoms are hacked, 80% of Fortune 500 enterprises are hacked (utilities, airlines anybody?), City of X, City of Y and City of Z - all use their 'management tools'. Your sewer is hacked, ladies and gentlemen... As a cherry on the cake: they share the same file servers with Dominion.
Damage control teams from all over are super busy. They already push solar flare stories in advance - in case SolarWinds hack will cause a chain reaction and the telecom + energy disruptions will be too long and vast... The best part is that all the Gov and private entities that used their soft have been hacked since March [including Office of The President], and they are not sure which trojans they should address first, add to that sleeper bugs in latent phase. The whole networks have to be ripped, redesigned and implemented anew. What a boost to certain stocks!

{their executives were selling big batches of their shares back in September}
 
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