Germany investigates Swiss intelligence officers over espionage claims

Germany SwitzerlandGermany has launched an unprecedented investigation into three officers of Switzerland’s intelligence agency on suspicion that they spied on German tax investigators who were probing the activities of Swiss banks. News of the investigation comes three months after authorities in Germany arrested another Swiss intelligence officer, identified only as “Daniel M.”, for engaging in espionage on German soil. German media report that the three unnamed men are officers of Switzerland’s Federal Intelligence Service (NDB). They are suspected of engaging in the same type of activity as “Daniel M.”, namely monitoring German tax-fraud investigators.

The German government believes that billions of euros are deposited by its citizens in banking institutions in European tax-havens like Liechtenstein, Switzerland or Monaco. For the past decade, German authorities have resorted to bribing whistleblowers in offshore banks in order to acquire internal documents that reveal the identities of German citizens who are hiding their money in foreign bank accounts. It is estimated that over a hundred million dollars have been paid to whistleblowers by German authorities since 2006. The latter argue that the proceeds collected from unpaid taxes and fines more than justify the payments made out to whistleblowers. But the Swiss government has strongly criticized Berlin for encouraging Swiss banking sector employees to steal internal corporate information that often breaks Switzerland’s stringent privacy laws. It is believed that the NDB has been instructed by the Swiss government to monitor efforts by German tax-fraud investigators to approach potential whistleblowers working in the Swiss banking sector.

According to German media, the investigation against the three NDB officers was launched earlier this month. The news is likely to further complicate relations between Berlin and Bern. The two governments have been at loggerheads since the arrest of “Daniel M.”. Switzerland responded to the arrest by issuing arrest warrants for a number of German tax investigators. But Germany dismissed the move, saying it would refuse to comply with the warrants. On Monday, several European news media quoted German foreign minister Sigmar Gabriel, who described the alleged activities of the NDB as “incredible” and warned that the ongoing dispute between Germany and Switzerland could “wreck” their bilateral relationship.

Author: Joseph Fitsanakis | Date: 16 August 2017 | Permalink

Mystery sonic device blamed for foreign diplomats’ hearing loss in Cuba

US embassy in CubaAuthorities in Cuba, the United States and Canada are investigating reports that several foreign diplomats stationed in Havana have been experiencing severe hearing loss in recent months. Some are blaming the deployment of a mystery “covert sonic device” for the diplomats’ symptoms. The allegations originate from diplomatic personnel stationed at the US embassy in Havana. The embassy reopened in 2015, 54 years after it was closed down following a series of diplomatic rifts between Cuba and the US during the height of the Cold War.

Last week, citing anonymous “officials with knowledge of the investigation into the case”, the Associated Press said that the first hearing loss symptoms were reported by personnel at the US embassy in Havana in the fall of 2016. Several of them —five, according to the Associated Press, though the Department of State will not give a precise number— reported suffering from sudden and unexplained loss of hearing. The news agency reported that, in a few cases, the symptoms were so serious that caused some American diplomats “to cancel their tours early and return to the United States”. Following those bizarre incidents, authorities in Washington proceeded to conduct an investigation. They concluded that the American diplomats had suffered loss of hearing after being repeatedly “exposed to an advanced device that had been deployed either inside or outside their residences”.

In response to the outcome of the investigation, the White House secretly ordered on May 23 of this year the expulsion of two Cuban diplomats from the embassy of Cuba in DC. But the Cuban government denied that it had anything to do with the American diplomats’ symptoms, and some believe that the alleged “covert sonic device” may have been deployed by an intelligence service of a third country —possibly Russia— without the knowledge of Cuban authorities. Meanwhile, the plot thickened on Friday of last week, after the Canadian government claimed that at least one of its diplomats stationed in Havana had also suffered from sudden loss of hearing. Canada has now joined the Federal Bureau of Investigation and the Diplomatic Security Service in the US in investigating the incidents. The Cubans have also launched their own investigation.

Author: Joseph Fitsanakis | Date: 15 August 2017 | Permalink

Russian spy services raid bomb lab in Moscow, foil large-scale suicide plot

ISIS RussiaRussian intelligence services say they have foiled a large-scale bomb plot, after raiding an explosives laboratory belonging to the Islamic State and arresting four suspects. The four men were allegedly planning to target the Moscow Metro transit system and a busy shopping center in the Russian capital. In a statement released to the media this morning, the Russian Federal Security Service (FSB) did not specify the intended targets of the plotters. But it said it had arrested four people during an early morning raid at an explosives laboratory located in the Moscow suburbs. The FSB said that its officers confiscated large quantities of peroxide-based explosives that resemble the material used by the Islamic State in the November 2015 attacks in Paris, the March 2016 attacks in Brussels, and last May’s suicide bombing in Manchester.

One of the men arrested has been named by the FSB as Akbarzhon A. Dzhalilov, 22, a Kyrghyz-born Russian citizen. The other three men, who have not yet been named, are all from former Soviet Republics of Central Asia. Russian media reported that the Moscow cell was being commanded and directed by the Islamic State in Syria. Two Russian-speaking men from the Russian Caucasus, who are located in Syria, are thought to have been handling the cell’s activities. Russian intelligence services estimate that at least 2,500 Russian citizens have move to the Middle East to join jihadist groups in the past three years.

Had it been carried out, the attack would have been added to a growing list of terrorist incidents against Russia since 2015, which are related to the Kremlin’s decision to enter the Syrian Civil War. In October of that year, the Islamic State claimed responsibility for the bombing of Metrojet Flight 9268, a chartered commercial flight operated by Russian company Kogalymavia. The chartered airliner went down over Egypt’s Sinai Peninsula, killing all 217 passengers and crew on board —the worst disaster in Russian aviation history. In November of 2016, the FSB reportedly foiled another attack by five members of the Islamic State in Moscow. In February of this year, a seven-member Islamic State cell was busted in Yekaterinburg, Russia’s fourth-largest city, while it was planning attacks in several metropolitan areas, including Moscow and St. Petersburg. In April, the North Caucasus-based Imam Shamil Battalion claimed responsibility for a suicide attack in the St. Petersburg Metro transit system, which killed 15 train passengers. The group, whose existence was unknown before the St. Petersburgh attack, said it supported al-Qaeda and perpetrated the attack in retaliation for Moscow’s involvement in the Syrian Civil War.

Author: Ian Allen | Date: 14 August 2017 | Permalink

Cold War files show CIA support for guerrilla warfare inside USSR (Part II)

Latvia Forest BrothersThe role of the CIA in funding and helping to organize anti-Soviet groups inside the USSR has been known for decades. But, as intelNews explained in part I of this article, a batch of recently released documents, unearthed by Russian-language service of Latvian state television, sheds light into the CIA’s early understanding of the identity, strength and operations of these groups. They also contain new information about the background and structure of underground anti-Soviet groups like the Forest Brothers in Latvia.

Judging that Latvia’s anti-Soviet underground movement could be “of considerable operational value”, the CIA initiated project ZRLYNCH in the summer of 1950. Operated out of the CIA’s Munich station in Germany, ZRLYNCH was intended as a long-term project supervised by the Office of Policy Coordination, an early Cold War covert operations outfit that in 1952 was absorbed into the CIA’s Directorate of Operations. The Latvia operation was part of a wider effort by the CIA, which was aimed at subverting Soviet power in Eastern Europe.

For the first year of ZRLYNCH, the CIA’s Office of Policy Coordination asked for —and received— a budget of $30,000. The top-secret document unearthed recently by Latvian state television states that the budget was to be used primarily for intelligence collection inside Soviet territory, as well as for covert operations by the Forest Brothers (for information about the group, see part I of this post). The latter were to conduct sabotage activities as part of organized guerrilla warfare. These activities are not specified in the CIA documents. By the end of the first year, it appears that the CIA had recruited three Latvian agents in Europe (one in Sweden and two in Germany), who were acting as mediators between the CIA and the Forest Brothers inside the USSR. Less than three years later, the ZRLYNCH budget had risen to $134,000, with $52,000 going toward covert —mostly psychological— operations and the rest being used to fund intelligence collection efforts. The CIA was also funding the travel expenses of leading Latvian émigré figures in the US, and was diverting tens of thousands of dollars toward Latvian émigré conferences in America, which aimed to unite the various political factions of the fragmented Latvian community in the States.

But the CIA officers behind ZRLYNCH were extremely concerned about operational security. They did not want the Kremlin finding out that the Agency was behind efforts to stir up armed resistance against Soviet power in the Baltic region. One CIA document states that there would be no tolerance for “any breaches of security” that compromised ZRLYNCH. Consequently, any action that uncovered the link between the US government and the Forest Bothers would lead “to an immediate cessation of financial support” for ZRLYNCH, states the memo.

Ultimately, ZRLYNCH failed to seriously challenge Soviet power in Latvia. Most of the members of the Forest Brothers were killed during Red Army counterinsurgency operations, and much of the organization’s structure was penetrated by agents of Soviet intelligence. Eventually, the Forest Brothers became extinct in 1957, when their last members emerged from the forest and surrendered to Latvian and Soviet authorities.

Author: Joseph Fitsanakis | Date: 11 August 2017 | Permalink

Cold War files show CIA support for guerrilla warfare inside USSR (Part I)

Latvian Forest BrothersRecently declassified documents from the archive of the Central Intelligence Agency detail financial and material support given by the United States to groups of armed guerrillas in Soviet Latvia in the 1950s. The documents, initially marked ‘Top Secret’ but now declassified, show that the CIA was aware and supported the activities of an anti-Soviet guerrilla army known as ‘the Forest Brothers’. Known also as ‘the Forest Brethren’, the group was formed in the Baltic States in 1944, as the Soviet Red Army established Soviet control over the previously German-occupied states of Estonia, Latvia and Lithuania. The Soviet Union had previously occupied and annexed the three Baltic countries, in a failed attempt to pre-empt Germany’s eastward military expansion. Groups like the Forest Brothers consisted of the most militant members of anti-Soviet groups in the Baltic States, many of whom were ideologically opposed to Soviet Communism.

The role of the CIA in funding and helping to organize anti-Soviet groups inside the USSR has been known for decades. But the recently released documents, unearthed by Russian-language service of Latvian state television, shed light into the CIA’s early understanding of the identity, strength and operations of these groups. They also contain new information about the background and structure of underground anti-Soviet groups like the Forest Brothers in Latvia.

The first declassified CIA document that contains information on anti-Soviet resistance in Latvia is dated November 29, 1949, and is titled “The Organization of the Underground Resistance Movement in Eastern Europe”. It was soon followed by two other documents, entitled “Latvian Resistance to Russian Occupation” and “Request for [Support] to the Latvian Resistance Movement”. The latter document was produced in mid-1950, after the CIA was able to establish contact with anti-Soviet Latvian expatriates living in Germany and Sweden. From these contacts, the CIA was able to determine that active (and possibly armed) resistance to the Soviet Red Army in Latvia was limited to approximately 5,000 individuals, many of whom conducted periodic guerrilla attacks against Soviet troops or installations. However, the CIA report said that, as of 1950, the majority of these armed guerrillas remained dormant, “waiting for a more opportune moment” to return to action. The CIA memorandum also stated that clandestine radio communication existed between the leadership of Latvia’s anti-Soviet underground in Riga and exile Latvian communities in Sweden.

Note: Part II of this report can be found here.

Author: Joseph Fitsanakis | Date: 10 August 2017 | Permalink

US reportedly considering airstrikes against pro-ISIS groups in the Philippines

The United States is reportedly weighing plans to launch airstrikes in the Philippines, against militant groups that are affiliated with the Islamic State of Iraq and Syria. However, some American officials are skeptical about reports of possible airstrikes, while Philippine government officials claim no such action is necessary. For more than 40 years, the Philippine army has been fighting a counterinsurgency campaign against secessionist Moros in the country’s southwest. The region is home to most of the Philippines’ Muslim population, which constitutes around 6 percent of the country’s overall population. In recent years, some Muslim secessionist groups, including the most formidable, Abu Sayyaf, have pledged allegiance to the Islamic State of Iraq and Syria, known as ISIS.

For about 15 years, a small contingent of US troops has assisted the Philippine military in its war against Muslim militants. Known as Joint Special Operations Task Force Trident, the small group of US soldiers performs a low-key advisory role in the Philippine military’s counterinsurgency campaign. The American military presence in the Philippines is not a ‘named operation’, which means that its funding from the Pentagon is relatively small and its range of activities remains limited. But this week’s visit to Manila by the US Secretary of State Rex Tillerson prompted rumors that Washington may be considering naming the Task Force Trident operation, and possibly increasing the scope of its activities to include airstrikes against Abu Sayyaf. The American news network NBC said on Tuesday that the US is considering launching an offensive air campaign against ISIS, “as part of [a new] collective self-defense” treaty with Manila. Citing two unnamed US defense officials, NBC said that the air campaign could be officially announced as early as this week.

But the network also said that another US official cautioned that a new collective self-defense agreement between the US the Philippines would not necessarily have to include provisions for an offensive air campaign. Typically, self-defense agreements between Washington and allied countries that are not members of the North Atlantic Treaty Organization are “more about intelligence sharing than offensive US strikes”, said the official. Meanwhile, Philippine government officials denied on Tuesday that Manila had requested air support from Washington in its war against Abu Sayyaf. The island country’s Secretary of Defense, Delfin Lorenzana, told reporters that “there was no need” for US airstrikes in the Philippines. The US Pentagon did not comment on the NBC report.

Author: Joseph Fitsanakis | Date: 09 August 2017 | Permalink

Israeli weapons, airpower, secretly given to Libyan warlord, source claims

Khalifa HaftarIsrael is secretly providing military assistance to Khalifa Haftar, commander of the Libyan National Army, one of the factions in the Libyan Civil War, according to a British-based publication. Libya has remained in a state of war since 2011, when a popular uprising backed by the West and its allies led to the demise of the country’s dictator, Colonel Muammar Gaddafi. Currently the strongest faction in the ongoing Libyan Civil War is the eastern-based Tobruk-led Government, which is affiliated with the Libyan National Army (LNA). The commander of the LNA is Field Marshal Khalifa Haftar, an old adversary of Colonel Gaddafi, who lived in the United States under Washington’s protection for several decades before returning to Libya in 2011 to launch his military campaign.

In February of 2011, shortly after the popular uprising erupted in Libya, the UN Security Council adopted Resolution 1970, which —among other things— forbids the export of war materiel to Libya. In June of this year, the United Nations accused Saudi Arabia and the United Arab Emirates of violating the embargo by providing secret military assistance to Haftar and the LNA. Now a new report in a British-based Arab news outlet claims that, in addition to Saudi Arabia and the Emirates, Israel too is helping the LNA. Allegedly, Tel Aviv has given the LNA war materiel and air power support, with the help of the United Arab Emirates.

Published in the London-based Al-Araby Al-Jadeed (The New Arab) newspaper, the report claims that the Libyan strongman has been holding secret meetings with Israel since 2015. The publication cites a high-ranking official in the LNA, who spoke on condition of anonymity “out of fear for his safety”. The source, who is reportedly close to Haftar, told the newspaper that he is personally aware of two meetings held between Haftar and agents of the Mossad, Israel’s intelligence agency, in 2015 and 2016. The LNA official said the meetings between the LNA and the Mossad were held in Jordan “in strict secrecy”under the supervision of the United Arab Emirates. Soon after the meetings, said the unnamed official, Israel began to provide the LNA with military aid, including night vision equipment and various sniper rifles. He also claimed that this is known to the LNA fighters on the ground, because there are Israeli markings on the rifles issued to them. The official also claimed that Israel may have secretly provided air cover during at least one of the LNA’s offensive in recent years.

The claim of collusion between Israel and the LNA is bound to raise popular pressure against the pro-LNA government in Egypt, which borders with Libya. It will also increase tension between the LNA and Algeria, which borders Libya from the west. According to The New Arab, the government of Algeria issued “a strong warning” against Israel’s involvement in Libya, following reports of secret cooperation between the LNA and Tel Aviv.

Author: Joseph Fitsanakis | Date: 08 August 2017 | Permalink

South Korea spy agency admits secret plan to influence 2012 election result

Moon Jae-in and Suh Hoon in South KoreaAn internal investigation has found that the intelligence agency of South Korea tried to steer the result of the 2012 presidential election in favor of the conservative candidate, and placed liberal politicians under surveillance in the run-up to the election. South Korea’s intelligence agency, the National Intelligence Service (NIS) has fallen into disrepute in recent years, after it was found to have secretly sided with conservative political candidates for public office.

In 2015, the NIS’ former director, Won Sei-hoon, was jailed for directing his staff to use social media to spread negative views of liberal politicians. He is now facing a second trial, after his conviction was overturned on appeal. Mr. Won headed the NIS from 2008 to 2013, during the administration of conservative President Lee Myung-bak. During the 2012 presidential elections, Won ordered a group of NIS officers to “flood the Internet” with messages accusing liberal political candidates of being “North Korean sympathizers”. One of those candidates, Moon Jae-in, of the left-of-center Democratic Party of Korea, is now the country’s president. Mr. Moon succeeded his main right-wing rival, Park Geun-hye, who resigned in March of this year following a series of financial scandals. She is now facing charges of bribery, abuse of power, leaking government secrets, and corruption.

An internal inquiry has now found that the NIS tried to manipulate the outcome of the 2012 presidential election with 30 dedicated teams of officers —some of whom were hired specifically for that purpose. A number of teams were in charge of creating fake social media accounts and using them to post negative views of Mr. Moon and positive views of his conservative rival, Mrs. Park. Other teams were tasked with creating the false impression that South Korea’s rival, North Korea, was supportive of Mr. Moon’s candidacy. The probe also found that the NIS launched similar —though on smaller scale— efforts to influence the outcome of parliamentary elections in 2011 and 2012. Additionally, the NIS placed a number of opposition politicians under surveillance.

Since his ascendance to power last spring, Mr. Moon has pledged that the NIS will be reformed and that it will stay out of domestic politics. In June of this year, Mr. Moon announced that the domestic intelligence wing of the NIS would be dissolved.

Author: Ian Allen | Date: 07 August 2017 | Permalink

CIA’s withdrawal from Syria could cause pro-US rebels to join Islamists, experts warn

Free Syrian ArmyThe decision by the White House to terminate American support for rebels in war-torn Syria could backfire by causing the suddenly unemployed fighters to join jihadist organizations, according to experts. The United States’ support for the rebels began in secret in early 2013, after the then US President, Barack Obama, instructed the Central Intelligence Agency to provide covert support to fighters in Syria. The CIA then joined forces with spy agencies from Britain, France, Saudi Arabia and the United Arab Emirates, to assist fighters affiliated with the Free Syrian Army. At that time, Washington saw the Free Syrian Army and forces affiliated with it as ideologically moderate. It also agreed with the group’s main aim, which was to topple the regime of Syrian President Bashar al-Assad.

Codenamed TIMBER SYCAMORE, the CIA program was designed to mirror a similar project run by the US military in support of local troops fighting the Islamic State. On the one hand, the White House wanted to use the CIA’s support for the FSA to weaken militarily the regime in Damascus. On the other hand, Washington hoped that the CIA’s involvement in the region would be able to control the influx of weapons, money and fighters that were streaming in from neighboring countries. Under TIMBER SYCAMORE, for over three years, CIA personnel trained Free Syrian Army fighters in irregular warfare, while also providing them with light weaponry including machine guns, sniper rifles and off-road vehicles.

But on July 19 of this year, US President Donald Trump abruptly ended the CIA program, which he called “dangerous and wasteful”. Some observers argued that the termination of TIMBER SYCAMORE was an attempt by the Trump administration to come to an agreement with Russia on Syria. It is believed that America’s local allies, such as Saudi Arabia and the United Arab Emirates, are also terminating their clandestine support for the Free Syrian Army, not wishing to go against the White House. This development, therefore, may signal the effective termination of substantial foreign support for the most important anti-Assad rebel group in Syria.

What does that mean for the fate of the Free Syrian Army and its thousands of fighters? Some experts say that their fate is uncertain, and warn that some of them may turn against their former benefactors. Writing in The Christian Science Monitor, Taylor Luck, said earlier this week that the Free Syrian Army reported 50 defections of its fighters in July. Some of these fighters, says Luck, are joining the Pentagon’s program in support of forces fighting the Islamic State, and are currently heading to the eastern and northern battlefronts. But many others are being tempted to join al-Qaeda affiliated groups, who are still fighting President Assad’s forces. Many do so for financial reasons, after seeing their CIA income suddenly disappear. Others, says Luck, are feeling very emotional and bitter against what they see as a betrayal by Washington. “We lost our brothers, our sisters, our children”, says one of these fighters, before vowing to fight Assad until the end. According to Luck’s report, Saudi Arabia and the United Arab Emirates are trying to come up with ways to continue to pay the Free Syrian Army rebels, in an attempt to stop them from joining rival jihadist groups.

Author: Ian Allen | Date: 04 August 2017 | Permalink

US Pentagon wasted $450 million in Afghan spy training program, says watchdog

Afghan National ArmyNearly half a billion of American taxpayers’ funds were wasted by contractors hired by the United States government to train Afghan intelligence personnel, according to a scathing report by a Congressional body. The funds were spent between 2010 and 2013 by the US Department of Defense, in order to train several thousand members and a few dozen aspiring trainees of the Afghanistan National Defense and Security Forces (ANDSF). Two companies, Legacy Afghanistan R&D and Afghanistan Source Operations Management, oversaw the training program. It was primarily executed by a contractor, Imperatis Corporation, and a subcontractor, New Century Consulting, at a total cost of $457 million to the US taxpayer.

But according to a new report, the four-year program was a monumental, multimillion dollar waste. The report was written by the Special Inspector General for Afghanistan Reconstruction (SIGAR). The body was established by the US Congress in 2008 to supervise the effectiveness of US government-funded reconstruction programs in Afghanistan. Dated July 2017, the SIGAR report says it is “almost impossible” to evaluate the effectiveness of the ANDSF intelligence-training program, because none of the contractors and subcontractors involved in it kept adequate training records. Based on the available information, the SIGAR report concludes that there is virtually “no indication of improvement in intelligence operations” by ANDSF as a result of the four-year training program.

Part of the reason for the poor value of the program is that “a significant portion” of the intelligence trainees enrolled in it performed below the minimum standards required. Additionally, few trainees actually completed the courses that were required prior to graduation. Shockingly, the US Pentagon paid the contractors in full despite the fact that they had failed to keep adequate records of their performance, an omission which legally entitled the Pentagon to refuse to payment. Even more incredibly, the SIGAR report also found that Imperatis Corporation billed the US taxpayer nearly $4 million between March and December of 2011 for training courses that had been canceled and were not being offered.

The training program’s subcontractor, New Century Consulting (owned by retired US Special Forces Colonel Tim Collins), was criticized two years ago in another SIGAR report for spending $130 million of US taxpayers’ funds on “unsupported” and “questioned” purchases. The program’s main contractor, Imperatis Corporation, went out of business in May 2016.

Author: Ian Allen | Date: 03 August 2017 | Permalink

Industrial espionage damages a country’s long-term productivity, study finds

StasiState-sponsored industrial espionage aimed at stealing foreign technical secrets may boost a country’s technological sector in the short run, but ultimately stifles it, according to the first study on the subject. The study is based on over 150,000 declassified documents belonging to the East German Ministry for State Security, known as Stasi. The now-defunct intelligence agency of communist-era East Germany was known for its extensive networks of informants, which focused intensely on acquiring technical secrets from abroad.

The history of industrial and economic espionage by governments is indeed extensive. It includes lucrative efforts by the United States to steal industrial production methods from Europe in the 19th century, and successful attempts by the Soviet Union to steal atomic technology from the American-led Manhattan Project in the 1940s. But there have been no systematic attempts to evaluate the effect of state-sponsored industrial espionage on the entire economy of the sponsoring nation –until now.

This new study –the first of its kind– was carried out by two economists, Erik Meyersson, from the Stockholm School of Economics in Sweden, and the Spain-based Albrecht Glitz of Pompeu Fabra Univeristy in Barcelona. The two researchers describe their preliminary findings in a working paper entitled: “Industrial Espionage and Productivity”, published by the Institute of Labor Economics in Bonn, Germany. Its findings are based on an analysis of nearly 152,000 declassified industrial-espionage-related communiqués sent by Stasi spies to their handlers between 1970 and 1988. The communiqués were examined with reference to their date of authorship and the content-descriptive keywords appended to them by the Stasi.

The report concludes that stealing industrial secrets can boost a nation’s economic activity in the short run. However, in the long run, a nation’s strategic focus on industrial espionage tends to impede homegrown research and development, and ultimately stifles technological productivity on a national scale. This is because “easy access to secrets” from abroad tends to “discourage both state and private investment in research and development”, according to Meyersson and Glitz. That is precisely what happened to East Germany, argues the report. The country’s total factor productivity (TFF –the growth of its output measured in relation to the growth in inputs of labor and capital) rose significantly as a result of its industrial espionage.That was especially noticeable in the digital electronics sector, where the output gap between East and West Germany was narrowed by a fourth. However, that trend was temporary, and East Germany was never able to develop an organic digital-electronics industry. Industrial espionage is like “research and development on cocaine”, professor Meyersson told Science, the magazine of the American Association for the Advancement of Science. “Maybe you can have a little bit of fun with it, but it’s not good for you in the long run”.

Author: Joseph Fitsanakis | Date: 01 August 2017 | Permalink

North Korean state now uses cyber attacks to steal cash, says report

North KoreaNorth Korea’s intelligence establishment has shifted its attention from spying for political gain to spying for commercial advantage –primarily to secure funds for the cash-strapped country, according to a new report. Since the 1990s, the Democratic People’s Republic of Korea (DPRK) has used computer hacking in order to steal political and military secrets from its rivals. But there is increasing evidence that Pyongyang is now deploying armies of computer hackers in order to steal cash from foreign financial institutions and internet-based firms. This is the conclusion of a new report by the Financial Security Institute of South Korea, an agency that was set up by Seoul to safeguard the stability of the country’s financial sector.

The report, published last week, analyzed patterns of cyber attacks against South Korean state-owned and private financial institutions that took place between 2015 and 2017. It identified two separate computer hacking groups, which it named Lazarus and Andariel. According to the report, both groups’ activities, which are complementary, appear to be directed by the government of North Korea. An analysis of the groups’ targets suggests that Pyongyang has been directing its computer spies to find ways to secure hard currency for use by the government. Foreign currency has been increasingly hard to come by in North Korea in recent years, due to a host of international sanctions that were imposed on the country as a form of pressure against its nuclear weapons program.

Several cyber security experts and firms have claimed in recent months that North Korea has been behind recent cyber attacks against international banking institutions. The DPRK has also been blamed for a 2014 attack against the Hollywood studios of the Japanese multinational conglomerate Sony. Regular readers of intelNews will recall our story in March of this year about comments made on the subject of North Korea by Rick Ledgett, a 30-year veteran of the United States National Security Agency. Speaking at a public event hosted by the Aspen Institute in Washington, Ledgett expressed certainty that the government of North Korea was behind an attempt to steal nearly $1 billion from Bangladesh Bank —the state-owned central bank of Bangladesh—in 2016. Eventually the bank recovered most of the money, which were made through transactions using the SWIFT network. But the hackers managed to get away with approximately $81 million.

More recently, cyber security experts have claimed that the government of North Korea has been behind attempts to hack into automated teller machines, as well as behind efforts to steal cash from online gambling sites. In April of this year, the Russian-based cyber security firm Kaspersky Lab identified a third North Korean hacker group, which it named Bluenoroff. The Russian experts said Bluenoroff directed the majority of its attacks against foreign financial firms. There are rumors that Pyongyang was behind the wave of WannaCry ransomware attacks that infected hundreds of thousands of computers in over 150 countries in May. But no concrete evidence of North Korean complicity in the attacks has been presented.

Author: Joseph Fitsanakis | Date: 31 July 2017 | Permalink

CopyKittens cyber espionage group linked to Iranian state, says report

CopyKittensA cyber espionage group that has alarmed security researchers by its careful targeting of government agencies has links to the Iranian state, according to a new report. The existence of the group calling itself CopyKittens was first confirmed publicly in November of 2015. Since that time, forensic analyses of cyber attacks against various targets have indicated that the group has been active since at least early 2013. During that time, CopyKittens has carefully targeted agencies or officials working for Jordan, Saudi Arabia, Turkey, Israel, the United States, and Germany, among other countries. It has also targeted specific offices and officials working for the United Nations.

Throughout its existence, CopyKittens has alarmed cyber security researchers by its strategic focus on political targets belonging to governments. The group’s methods of operation do not resemble those of most other hacker groups, which are usually crude by comparison. Now a new report by two leading cyber security groups claims that CopyKittens is linked to the Iranian state. The report was published on Tuesday as a joint effort by Japan’s Trend Micro and Israel’s ClearSky firms. The report analyzes several operations by CopyKittens, some conducted as recently as last April. It concludes that CopyKittens is “an active cyber espionage actor whose primary focus [is] foreign espionage on strategic targets”. Additionally, the report suggests that the group operates using “Iranian government infrastructure”.

According to the Trend Micro/ClearSky report, CopyKittens tends to use relatively simple hacking techniques, such as fake social media profiles, attacks on websites, or emails that contain attachments that are infected with malicious codes. However, its members appear to be “very persistent” and usually achieve their goal “despite lacking technological sophistication”. The security report did not directly address the political ramifications of implicating the Iranian government in the CopyKittens’ hacking operations. The Reuters news agency contacted Iranian officials at the United Nations about the CopyKittens report, but they nobody was available for comment.

Author: Ian Allen| Date: 26 July 2017 | Permalink

After Trump, NSA director backs away from joint US-Russian cyber unit proposal

NSA headquartersThe director of the United States National Security Agency appears to have backed away from a proposal to set up a joint American-Russian cyber security working group, with the aim of defending both countries from hackers. Earlier in July, US President Donald Trump said he was considering the establishment of what he described as “an impenetrable cyber security unit” that would be a joint project between the United States and Russia. The unit would have the task of defending both countries from cyber attacks aimed at hacking their election systems and other vital state functions. The US president said he had discussed the idea with his Russian counterpart, President Vladimir Putin, during the G20 summit in German city of Hamburg. Last week, a Russian official confirmed that Moscow and Washington were considering the creation of a working group that would examine the creation of a joint cyber defense force.

The announcements, however, were strongly criticized by Democrats in Congress. They were also not welcomed by several Republican lawmakers, who argued that such a move would not be sound policy on the part of the White House, given the ongoing controversy about alleged Russian meddling in the 2016 US presidential election. Eventually, President Trump appeared to abandon the plan. He tweeted that just because he had spoken about the idea with the Russian leader did not mean that such a plan was necessarily in the works. “The fact that President Putin and I discussed a Cyber Security unit doesn’t mean I think it can happen. It can’t”, wrote Mr. Trump.

On Saturday, the Director of the NSA, Admiral Mike Rogers, appeared to agree with Mr. Trump’s revised view that a joint US-Russian cyber unit was not high on Washington’s priority list. After delivering a speech at the Aspen Security Forum, hosted by the Aspen Institute in Colorado, Admiral Rogers was asked by a member of the audience to address the US president’s remarks. He prefaced his response by saying that he is “not a policy guy”. But he went on to “argue [that] now is probably not the best of time to be doing this”. The head of the NSA added that a joint cyber security project between Washington and Moscow is “something that you might want to build over time, were we to see changes in [Russia’s] behavior”. He did not specify what he meant by “changes in [Russia’s] behavior”.

Author: Ian Allen | Date: 24 July 2017 | Permalink

Dozens of Western ‘freelance fighters’ embedded with anti-ISIS forces in Syria

Kurdish YPG SyriaDozens of Western European and American citizens are participating in the ongoing takeover of Raqqa, the de facto capital of the Islamic State in Syria, despite being prohibited from doing so by their own governments, according to recent news reports. Much has been written about foreign fighters who enter Iraq and Syria in order to join the ranks of the Islamic State, the Sunni militant group that previously went by the name Islamic State of Iraq and Syria (ISIS). But relatively little attention has been paid to the thousands of foreign fighters who have traveled to the region to join the war against ISIS.

In late 2015, independent researcher Nathan Patin published “The Other Foreign Fighters”, a rare examination of Americans who had joined the various armed groups fighting ISIS in the region. Patin found that at least 200 Americans had attempted to travel to the region in order to join the fight against ISIS as ‘freelance fighters’. Roughly half of those had managed to embed themselves with armed —primarily Kurdish— groups, and saw action on the ground. In 2016, three British and Irish anti-ISIS volunteers were jailed by Iraqi authorities while attempting to return to Europe after having fought for the Kurdish People’s Protection Unit (YPG), a group that serves as the armed wing of the Kurdistan Workers’ Party (PKK) in northern Syria. The three were initially suspected of being foreign ISIS volunteers, but were released from prison in April of 2016, after the YPG verified their bona fides.

A recent report by The Los Angeles Times claims that there are still “several dozen” Western volunteers embedded with anti-ISIS militias in Syria. They are doing so in the face of warnings by European and American government agencies that freelance participation in the Syrian civil war is a potentially punishable offense. The Times cited “local estimates” and spoke to Daman Frat, a YPG commander stationed in the eastern outskirts of Raqqa, who said that “several foreign volunteers” were embedded in YPG units. Most, though certainly not all of them, said Frat, had prior military experience. According to the paper, at least three Western volunteers, one British and two American citizens, have died in recent days, as YPG forces are closing in on the de facto ISIS capital. The US Departments of State and Defense, which are tacitly in support of the YPG and other Kurdish groups operating in Syria, did not comment on The Los Angeles Times report.

Author: Joseph Fitsanakis | Date: 20 July 2017 | Permalink