Russian colonel was ‘most successful CIA spy’ in recent years

Valery Mikhailov, left, with his attorneyBy JOSEPH FITSANAKIS | intelNews.org |
Before the dust could settle from last month’s closed-door trial of Vladimir Lazar, and the arrest of an unnamed missile engineer on charges of espionage, Russia claims to have exposed yet another spy. Valery Mikhailov, a retired Russian counterintelligence officer, has been given an 18-year prison sentence for allegedly spying on behalf of the United States Central Intelligence Agency. In disclosing Mikhailov’s sentence yesterday, Moscow District Military Court officials were deliberately vague about Mikhailov’s alleged espionage activities, and provided limited information on the precise charges against him. But reporters, who were not allowed to attend Mikhailov’s trial, were told that he voluntarily approached CIA officers in Russia in 2001 and offered to spy on his country on behalf of the US, in exchange for regular payments in cash. Russian government prosecutors said that, from 2001 until 2007, when his activities were detected by Russia’s Federal Security Service (FSB), Mikhailov gave his American handlers access to over a thousand copies of secret or top-secret documents. Most of these, according to reports in the Russian media, had been prepared by FSB analysts for top-level Russian government officials, including the President, Prime Minister, and members of the Security Council of the Russian Federation. Russian government prosecutors say that Mikhailov was arrested following an extensive period of surveillance by the FSB, which allegedly resulted in the capture of an American CIA courier. The latter was apprehended while surreptitiously collecting classified documents copied by Mikhailov. Following his arrest, Mikhailov is said to have admitted that he earned over $2 million from his espionage activities. Read more of this post

Comment: Who authored computer virus that ‘dwarfs Stuxnet’?

Flame virus code segmentBy JOSEPH FITSANAKIS | intelNews.org |
When the Stuxnet computer virus was detected, in 2010, it was recognized as the most sophisticated malware ever created. It had been specifically designed to sabotage Siemens industrial software systems, which were used in Iran’s nuclear energy program. Not surprisingly, most Stuxnet-infected computers were in Iran. Now a new, massive and extremely sophisticated piece of malware has been detected in computers belonging to the Iranian National Oil Company and Iran’s Ministry of Petroleum. It is called Flame and, according to antivirus company Kaspersky Lab, which first spotted the virus last week, it is “one of the most complex threats ever discovered”. Simply consider that Stuxnet, which caused unprecedented waves of panic among Iranian cybersecurity experts, was 500 kilobytes in size. Flame is over 20 megabytes in size, consisting of 650,000 lines of code; it is so complex that it is expected to take programming analysts around a decade to fully comprehend. The two are different, of course. Stuxnet was an infrastructure-sabotaging malware, which destroyed hundreds —maybe even thousands—of Iranian nuclear centrifuges. Flame, on the other hand, appears to be an espionage tool: it aims to surreptitiously collect information from infected systems. What connects them is their intended target: Iran. We now have Stuxnet, the most complex sabotaging malware ever discovered, which must have taken dozens of programmers several months to create, and Flame, the world’s most powerful cyberespionage tool ever detected by computer security experts. And both have been primarily directed at Iranian government computers. Read more of this post

US State Department silent on ‘massive’ China spy revelations

Hillary ClintonBy JOSEPH FITSANAKIS | intelNews.org |
The United States Secretary of State, Hillary Clinton, has declined to comment publicly on the arrest of a senior Chinese government aide, who is said to have conducted “massive” spying for Washington. According to Reuters news agency, who broke the story last week, the aide was arrested several months ago, but both the US and China have chosen to keep the issue under wraps in order “to prevent a fresh crisis in relations” between the two countries. Reuters cited “three sources [with] direct knowledge of the matter”, who said that the aide was employed at a critical post in the office of a vice minister in China’s Ministry of State Security (MSS). The MSS is China’s foremost intelligence agency, with responsibility for both domestic and international intelligence collection. According to the sources quoted by Reuters, the unnamed aide was arrested “sometime between January and March” of 2012 and stands accused of supplying his American handlers with classified information on Chinese espionage activities abroad. According to the report, the accused spy had been working for the US “for several years” and his case could represent the worst breach of China’s MSS in two decades; according to one source, the damage inflicted to the MSS’ operations by this case “has been massive”. Reuters said that the aide, who speaks English, was recruited by the US Central Intelligence Agency, and was paid “hundreds of thousands of US dollars” to provide “political, economic and strategic intelligence” to American intelligence officers. Read more of this post

News you may have missed #743 (espionage edition)

Vladimir LazarBy IAN ALLEN | intelNews.org |
►►Denmark professor jailed for spying. Timo Kivimäki a Finnish professor of international politics in Copenhagen, Denmark, has been sentenced to five months in prison for spying, following a trial held behind closed doors, from which even the verdict was not released. Several Russian diplomats left Denmark after the start of the spy case and, according to Danish media, Kivimäki’s lawyer, Anders Nemeth, had attempted to have them return to act as witnesses.
►►Retired Russian colonel convicted of spying for US. A Russian court has ruled that retired Colonel Vladimir Lazar spied for the US, and sentenced him to 12 years in prison. Lazar will be sent to a high-security prison and stripped of his military rank, the Federal Security Service said in a statement. Prosecutors said Lazar purchased several computer disks with more than 7,000 images of classified maps of Russia from a collector in 2008 and smuggled them to neighboring Belarus, where he gave them to an alleged American intelligence agent.
►►India arrests military intel staffer for spying. The soldier, identified only as Shivdasan, worked for the Indian Army’s Technical Support Division, which is a newly founded unit within Indian Military Intelligence. He was reportedly trapped by the Indian Directorate of Revenue Intelligence in an elaborate operation that involved a “double agent” and a relative of the soldier in Dubai.

Japan investigates senior Chinese diplomat for spying

Chinese embassy in TokyoBy IAN ALLEN | intelNews.org |
Japanese authorities are investigating a senior Chinese diplomat for having engaged in “activities in violation of the Vienna Convention on Diplomatic Relations”, which is technical language for espionage. The diplomat, who has been named by the Associated Press as Li Chunguang, and is fluent in Japanese, was posted at the Chinese Embassy in Tokyo in July of 2007 as the Embassy’s Second Secretary in charge of economic affairs. But Japan’s Public Security Intelligence Agency, which serves as the country’s primary counterintelligence organization, secretly monitored Li’s activities almost from the moment he was posted in Tokyo, eventually reaching the conclusion that the Chinese diplomat had ties to “an intelligence division of the Chinese People’s Liberation Army”. Earlier this year, the Agency determined that Li had used fraudulent information and had failed to disclose his diplomatic status while applying for an alien registration certificate from the Japanese government. According to news reports, he used the fraudulent certificate to open a bank account in Tokyo, where he deposited ¥100,000 (about US$ 1,300). According to Japanese investigators, Li he planned to “use [the money] for intelligence activities”. In mid-May of this year, the Japanese Ministry of Foreign Affairs, acting on a tip from Tokyo’s Metropolitan Police Department, requested from the Chinese Embassy that Li turned himself in “for questioning”. However, instead of presenting himself to Japanese authorities, as requested, Li left his Tokyo Embassy post for good on May 23, and is presumed to be Read more of this post

News you may have missed #742

'Spy rock' used in AfghanistanBy IAN ALLEN | intelNews.org |
►►Obama warns Congress of overspending on intelligence. The administration of US President Barack Obama is warning that it has “serious concerns” about a 2013 intelligence authorization bill that the House of Representatives passed on Thursday, because it authorizes spending on intelligence activities that go well beyond President Obama’s request. Despite this concern, the administration said that it “does not oppose” the Intelligence Authorization Act, HR 5743, instead supporting language that would repeal some reporting obligations that the government now has to Congress.
►►US forces use fake rocks to spy on Afghans. Palm-sized sensors, disguised as rocks, developed for the American military, will remain littered across the Afghan countryside –detecting anyone who moves nearby and reporting their locations back to a remote headquarters. Some of these surveillance tools could be buried in the ground, all-but-unnoticeable by passersby. These rocks contain wafer-sized, solar-rechargeable batteries that could enable the sensors’ operation for perhaps as long as two decades. Hmm…where have we seen this before?
►►Pakistan spy chief postpones US trip. Pakistan’s spymaster, Lieutenant-General Zahir ul-Islam, has postponed a trip to the United States in the latest sign of the dire state of relations between two supposed allies in the war against Islamist extremists. America has stepped up drone strikes on Pakistani territory in the week since the two countries failed to reach an agreement on NATO supply convoys at a summit in Chicago. Last week, officials in Washington also condemned Pakistan’s decision to jail a doctor who helped the CIA hunt Osama bin Laden.

Colombian government to probe calls for ‘military coup’

President Santos (in blue tie) with Colombian military officialsBy IAN ALLEN | intelNews.org |
Colombian authorities have opened an official investigation into calls to remove the government of the country, which were found circulating among former and current military officials. The investigation was announced on Tuesday, nearly two weeks after the appearance in the Colombian media of a series of personal email exchanges, which appeared to suggest that the national administration of President Juan Manuel Santos should be removed from power. Some of the emails were exchanged between two influential retired military officers, Major Jorge Galvis Noyes and General Eduardo Santos Quiñones. One message was authored by Galvis on May 15, 2012, shortly after a massive bomb exploded in Colombian capital Bogota, which killed five people and injured 17. The bomb, according to President Santos, was directed against the country’s former Minister of the Interior, Fernando Londoño Hoyos, who is said to have links with rightwing paramilitary groups. Galvis’ email lamented the “attempt [that] was made on the life of Fernando Londoño” and criticized the government of President Santos for not preventing it. He continued by suggesting that Santos should “fulfill his political duties […], otherwise he should be “removed from office”. Around that time, General Quiñones authored an open call against President Santos, which he apparently circulated via email among dozens of senior military officers. The letter blasted the Santos administration, stating that Colombia was ready for “a real leader”. In recent months, rightwing political figures connected to Colombia’s previous President, Alvaro Uribe, have been virulently attacking the Santos administration, accusing it of being “soft” against leftwing paramilitary groups –primarily the Revolutionary Armed Forces of Colombia (FARC). Read more of this post

News you may have missed #741

Glenn CarleBy IAN ALLEN | intelNews.org |
►►MI6 role in rendition could be concealed in new bill. Libyan government officials Sami al-Saadi and Abdel Hakim Belhaj, who allege that they were taken by rendition by Britain to Libya eight years ago, are expected to begin legal proceedings against the British government and Jack Straw, Britain’s former foreign secretary, next month. However, after pressure from the security services, MI5 and MI6, the British government is preparing to publish a Justice and Security Bill that could allow these cases to be held in their entirety behind closed doors.
►►Aussie spy agency defends new headquarters. The Australian Security Intelligence Organisation says its new headquarters in Canberra is not at risk of being spied upon, despite the use of a lot of glass. ASIO director general David Irvine told a senate committee on Thursday it would be impossible for someone with a high resolution camera on the other side of Lake Burley Griffin to spy on the nation’s spies. Australian Greens senator Scott Ludlam had asked whether the design of the “glass palace” could threaten the secrecy of its work.
►►Good interview with ex-CIA officer Glenn Carle. In this interview, Carle, a retired CIA case officer who wrote The Interrogator: An Education, says his former employers have called his publisher asking them to pulp his book; they rang every major network to prevent him going on air. They are, he says several times, “vicious” and have perpetrated a stain on America’s national character.

News you may have missed #740

Timo KivimäkiBy IAN ALLEN | intelNews.org |
►►Denmark professor accused of spying challenges court secrecy. Timo Kivimäki, a Finnish humanities professor at the University of Copenhagen, is accused of spying for the Russians and is being tried at the city court in the Danish city of Glostrup behind closed doors, meaning no information about the trial, including the precise charges, can be disseminated. But following demands from both Kivimäki’s lawyer and the Danish media, he has been granted permission to appeal against the decision to hold the trial in secret.
►►Analysis: CIA’s links with Hollywood are longstanding. Some US officials are suggesting that the producers of a new motion picture, which deals with the raid that killed al-Qaeda founder Osama bin Laden, received “extremely close, unprecedented and potentially dangerous collaboration” from the Obama administration, and particularly the US Intelligence Community. In light of this, a well-researched article in The Los Angeles Times reminds readers that the close connection between the movie industry and the US military and intelligence community goes back decades. The US military has been using movies to drive up recruitment since the 1920s; and the CIA these days even posts potential movie story lines on its website.
►►CIA funds helped launch literary journal. The Paris Review has been hailed by Time magazine as the “biggest ‘little magazine’ in history”. At the celebration of its 200th issue this spring, current editors and board members ran down the roster of literary heavyweights it helped launch since its first issue in 1953. Philip Roth, V. S. Naipaul, T.C. Boyle, Edward P. Jones and Rick Moody published their first stories in The Review; Jack Kerouac, Jim Carroll, Jonathan Franzen and Jeffrey Eugenides all had important early stories in its pages. But as American novelist Peter Matthiessen has told interviewers –most recently at Penn State– the journal also began as part of his CIA cover.

News you may have missed #739

The US Department of DefenseBy IAN ALLEN | intelNews.org |
►►US Supreme Court to consider case on secret wiretapping. The Supreme Court has agreed to consider blocking a constitutional challenge to the government’s secret wiretapping of international phone calls and emails. At issue is whether Americans who have regular dealings with overseas clients and co-workers can sue to challenge the sweep of this surveillance if they have a “reasonable fear” their calls will be monitored. The case, to be heard in the fall, will put a spotlight on a secret surveillance program that won congressional approval in the last year of President George W. Bush’s presidency.
►►Analysis: Why is CIA applauding DoD’s intel grab? Last month, Director of National Intelligence James Clapper and Secretary of Defense Leon Panetta announced the creation of a new US espionage agency: the Defense Clandestine Service, or DCS. The new agency is expected to expand the Pentagon’s espionage personnel by several hundred over the next few years, while reportedly leaving budgets largely unchanged. The news nonetheless surprised some observers in Washington because the move appeared, at least initially, to be a direct challenge to the Central Intelligence Agency, whose National Clandestine Service leads the country’s spy work overseas. Then came a second surprise: former CIA officers and other intelligence experts started applauding. The question is why.
►►FBI forms secretive online surveillance unit. On May 22, CNet’s Declan McCullagh revealed that the FBI had quietly formed a new Domestic Communications Assistance Center (DCAC), tasked with developing new electronic surveillance technologies, including intercepting Internet, wireless, and VoIP communications. According to McCullagh, DCAC’s goal is “to invent technology that will […] more readily eavesdrop on Internet and wireless communications”. Read more of this post

New Israeli special forces command escalates covert action

Benny GantzBy JOSEPH FITSANAKIS | intelNews.org |
In recent months, intelNews has paid particular attention to senior Israeli security officials, or former officials, who routinely caution against plans for an Israeli military attack on Iran. These include Amos Yadlin, former head of Israel’s Military Intelligence directorate, and former Mossad Directors Meir Dagan and Tamir Pardo, who believes that a nuclear-armed Iran “would not be an existential threat to Israel”. But such current or former Israeli officials, who view a possible Israeli military attack on Iran as catastrophic, should not be seen as advocating pacifist views. On the contrary, they caution against an open Israeli military attack on Iran, favoring instead a covert-action approach. There are now signs that, under pressure by the United States, the Israeli administration of Benjamin Netanyahu is gradually heeding such advice. One such indication is to be found in the increasingly instrumental role played by Benny Gantz, the Chief of General Staff of the Israel Defense Forces. Lieutenant-General Gantz, who rose to the position of Israel’s most powerful soldier in February of 2011, arguably represents the most hawkish wing of the Israeli military. He is also one of the most vocal adherents of Israeli military supremacy in the Middle East ‘by any means necessary’. In April, he spoke publicly to confirm that, under his leadership, the Israeli military has “escalated special operations beyond the country’s borders”. Since then, he has refused to provide details of such operations, which he has described as “highly classified”. But an article published earlier this month in The Jerusalem Post discusses the rise in Israeli covert operations in the context of a new Israeli special forces command called Deep Corps. Read more of this post

News you may have missed #738

Gareth WilliamsBy IAN ALLEN | intelNews.org |
►►Pathologist says MI6 spy may have died alone. Leading British pathologist Richard Shepherd has told the BBC there is “credible evidence” that MI6 officer Gareth Williams died alone. Williams, a mathematician in the employment of Britain’s signals intelligence agency, GCHQ, was found dead in a padlocked sports bag at his home in Pimlico, London, in 2010. According to Dr. Shepherd, bags identical to the one Williams was found in, can be locked by someone inside the bag.
►►Turkey may indict Israeli officers Over Gaza flotilla raid. A prosecutor in Turkey has prepared indictments and recommended life sentences for four senior Israeli officers over the killing of nine activists aboard a Gaza-bound aid flotilla forcibly intercepted in international waters by Israeli commandos two years ago. The indictments, which have not been formally approved by the Turkish judiciary, could further strain relations between Turkey and Israel, which were once close but which deteriorated badly after the flotilla raid on May 31, 2010.
►►Czech secret services alarmed by drastic drop in funding. The BIS, Czech Republic’s counterintelligence service, is used to operating on Kč 1.149 billion (around US$60 million). According to the Finance Ministry’s plan, the agency’s budget will be reduced to Kč 911 million (US$45 million) in 2013. The news has prompted former interior minister and current member of parliament František Bublan to accuse the government of effectively leading to the spy service’s “liquidation”. But Finance Minister Miroslav Kalousek argues that all state institutions must cut back in order to help achieve a balanced budget by 2016.

News you may have missed #737

Shakil AfridiBy IAN ALLEN | intelNews.org |
►►Turkey suspects bird of being Israeli spy. News agencies are poking fun at Turkish authorities, who say they believe that they have found a bird used for espionage purposes by Israel. An investigation was reportedly launched in Ankara several days ago, after a farmer discovered a dead Merops Apiaster, commonly known as the European Bee-Eater, in his field. The bird had a ring reading “Israel” on one of its legs. The reports undoubtedly lend a certain degree of irony to the announcement that Israel Aerospace Industries (owned by the Israeli government) is in fact developing insect drones for indoor surveillance.
►►CIA discloses names of 15 killed officers. The CIA has disclosed the names of 15 of its operatives killed in the line of duty over the last 30 years, the result of a new effort to honor fallen officers. Fourteen of the dead already had a star inscribed in their memory on the CIA’s wall of honor in the lobby of the old headquarters building on the agency’s Langley, VA, campus. But their names had been withheld. In a closed agency ceremony Monday their names were added to the Book of Honor, which accompanies the stars. In addition, a new star was added this year for Jeffrey R. Patneau, who died at age 26 in Yemen in 2008 from injuries sustained in a car accident. He was the 103rd CIA officer recognized as having died in the line of duty.
►►Pakistan convicts doctor who helped CIA find bin Laden. A Pakistani court imposed a 33-year sentence Wednesday on Shakil Afridi, a doctor who assisted the CIA hunt for Osama bin Laden. Afridi, a government surgeon in the semiautonomous Khyber Agency along the border with Afghanistan, was convicted of treason for using a vaccination drive to try to gather DNA samples at the compound where bin Laden was in hiding. His conviction prompted dismay among US officials, who said that the punishment will lead to cuts in aid. According to a Pakistani prison official, Afridi “has been kept away from other prisoners to avert any danger to his life”.

Comment: US cybersecurity posture is not purely defensive

NSA headquartersBy JOSEPH FITSANAKIS | intelNews.org |
In recent years, news coverage of cyberespionage and cybersecurity has increased several times over; both subjects have escaped the narrow confines of technical literature and have entered the broad expanses of popular news media. This blog is no exception; since 2008, we have covered both cybersecurity and cyberespionage at length. In looking back at our coverage, it takes but a cursory glance to conclude that most of our reports feature the names of two countries: China and –to a far lesser extent– Russia. Moreover, the vast majority of our cybersecurity and cyberespionage coverage portrays the United States as a defensive actor, trying desperately to protect the integrity of its networks from foreign hackers. But is this accurate? How realistic is it to assume that the US, the world’s leading military power, abstains from offensive cyberespionage as a matter of strategy? The most likely answer is: not very. The problem is that much of the reporting on cybersecurity is based on national allegiances. Many American media pundits thus tend to forget that Washington, too, conducts cyberespionage. Read more of this post

Comment: US helped Canada nab accused spy Jeff Delisle

Jeffrey Paul DelisleBy JOSEPH FITSANAKIS | intelNews.org |
Back in January of this year, when the Jeffrey Delisle spy affair made headlines around the world, I spoke with several journalists from The Globe & Mail, The Canadian Press, and other Canadian news outlets. Most of them were –rightly– curious about the role of the United States in the affair, in which Sub-Lieutenant Delisle, who had been employed at Canada’s ultra-secure TRINITY communications center in Halifax, was accused of spying for a foreign power. I told them that, given that Trinity handled –aside from Canadian– NATO communications, Canada was in fact obligated to notify all of its NATO partners about the suspected penetration. That aside, I said that it could be “safely assumed” that US counterintelligence agencies were “fully involved in the Delisle case, and probably ha[d] been for several months”. By the latter phrase, I implied that US counterintelligence agencies had been closely involved in helping their Canadian counterparts build their case against Delisle. Now a new report in The Globe & Mail suggests that US counterintelligence officials “supplied vital information” to their Canadian colleagues during “the early days of the investigation” into the Delisle affair. The article says that the full extent of what the Americans told Canadian authorities remains unclear; but it quotes “a source familiar with the matter”, who claims that the US “helped Canada build its investigation”, not necessarily by providing a single tipoff clue, but through “an accumulation of information”. The paper adds that Washington’s involvement in the investigation from an early stage “adds a key new detail to [the] story”. Not necessarily, I would argue. Read more of this post