Australia fears Asia backlash over PRISM surveillance revelations

David IrvineBy JOSEPH FITSANAKIS | intelNews.org |
The government of Australia is concerned that American whistleblower Edward Snowden may leak classified information that could damage Australia’s relations with its Asian neighbors, including China and Malaysia. Early this month, Snowden, a former technical assistant for the United States Central Intelligence Agency (CIA), disclosed the existence of PRISM, a clandestine electronic surveillance program operated by the US National Security Agency (NSA). Information provided by Snowden to British newspaper The Guardian suggests that Washington routinely shares PRISM intelligence with Canada, New Zealand, the United Kingdom and Australia. These four countries, along with the United States, are signatories to the so-called UKUSA agreement, a multilateral accord for cooperation in signals intelligence (SIGINT) collection, which was established secretly in 1946. Australian media reported on Wednesday that the Australian Parliament’s Joint Committee on Intelligence and Security had been briefed by senior intelligence officials on Australia’s role in PRISM. The Sydney Morning Herald said that David Irvine, Director of the Australian Security Intelligence Organisation, and Ian McKenzie, who heads Australia’s Defence Signals Directorate, were among those who briefed the parliamentary Committee. Its members were reportedly told that the disclosures about PRISM were likely to damage Canberra’s relations with several Asian countries, in ways that are difficult to predict. One unidentified Australian intelligence official told The Herald that Snowden had “very wide access” to classified information held by the NSA, and that some of it probably includes “much detail of communications intelligence cooperation between the US and Australia”. One source went as far as to say that Snowden’s disclosures have already “damaged […] Australia’s intelligence capabilities”. Read more of this post

Snowden flees to Russia despite US passport revocation

Edward SnowdenBy JOSEPH FITSANAKIS | intelNews.org |
An American former intelligence contractor, who leaked classified information about intelligence operations, was able to leave Hong Kong for Russia on Sunday, despite having his United States passport revoked. Earlier this month, Edward Snowden, a former technical assistant for the Central Intelligence Agency, disclosed the existence of PRISM, a clandestine electronic surveillance program operated by the US National Security Agency (NSA). Shortly before leaking information about US intelligence operations to the world’s media, Snowden traveled to Hong Kong, a territory under the control of the People’s Republic of China. Last week, Washington charged Snowden, a self-described whistleblower, under the Espionage Act, and revoked his American passport, in an attempt to prevent him from leaving Hong Kong. But reports emerged on Sunday that Snowden had boarded an Aeroflot flight from Honk Kong to Russian capital Moscow, despite the revocation of his American passport. US authorities claim that Snowden’s transfer to Moscow occurred after Washington revoked his American passport, which raises the question of how the former CIA employee was able to exit Chinese territory. Several reports suggest that Snowden was accompanied by “unidentified diplomats” as he left Hong Kong for Moscow. Previously, the US had applied considerable diplomatic pressure on China, requesting Snowden’s extradition. But Hong Kong allowed the American fugitive to board a plane to Moscow, saying it had been given “no legal basis to restrict Mr. Snowden from leaving”. Read more of this post

Analysis: PRISM revelations harm US political, financial interests

NSA headquartersBy JOSEPH FITSANAKIS | intelNews.org |
Ever since June 6, when Edward Snowden, a former United States Central Intelligence Agency (CIA) technician, exposed a vast communications spying system called PRISM, observers have focused on the ramifications of this controversy inside America. But in an excellent analysis written for ComputerWorld magazine’s New Zealand edition, Taylor Armerding points out that Snowden’s revelation could result in extensive international blowback for the United States, in both the political and economic realms. Armerding quotes Toronto University political science professor Ron Deibert, who argues that this latest revelation of massive communications interception activity by the National Security Agency (NSA) carries with it “unintended consequences […] that will undermine US foreign policy interests”. Deibert points out that the spy scandal has the potential to undercut America’s role and influence in global Internet governance. In the words of renowned security expert Bruce Schneier, many around the world are beginning to view the US as “simply too untrustworthy to manage the Internet”. Even policymakers and ordinary users friendly to Washington are worried about what they perceive as the “huge disadvantages” of their dependence on US-managed Internet networks that host the content of social media sites, cloud computing databases, or telecommunications exchanges, says Deibert. But the biggest potential damage to US interests, argues Armerding, is not political, but economic. “It is not just personal information that is being swept into the NSA’s massive databases”, he notes; “it is corporate data as well”. Indeed, the vast foreign and domestic spying represented by PRISM poses a direct threat to the global competitiveness of the American technology sector. Read more of this post

Swiss parliament halts US tax deal following CIA espionage claims

Swiss National Council chamberBy JOSEPH FITSANAKIS | intelNews.org |
The lower house of the Swiss parliament has voted to stop considering a legislation designed to help the United States identify tax evaders, just days after a former Central Intelligence Agency (CIA) employee revealed an espionage operation targeting a Swiss bank executive. The legislation, which was drafted by the government of Switzerland, is aimed at addressing demands by Washington for Swiss banks to turn over to US authorities the identities of American tax dodgers. It is believed that tens of thousands of wealthy Americans manage to evade their tax obligations each year by exploiting strict Swiss banking privacy laws, which effectively shield them from US internal revenue authorities. The legislation has already been approved by the upper house of the Swiss Federal Assembly (the Council of States), but it needs to be cleared by the lower house (the National Council) before it can be officially enacted. Interestingly, the legislation was halted in the lower house just days after American intelligence whistleblower Edward Snowden revealed a US espionage operation aimed at recruiting a Swiss bank official. Snowden, a former technical assistant for the CIA, disclosed the existence of PRISM, a clandestine national security electronic surveillance program operated by the United States National Security Agency (NSA). In addition to PRISM, Snowden, 29, spoke about a CIA operation in 2007, when he was allegedly stationed under diplomatic cover at the CIA station in Geneva, Switzerland. Read more of this post

Secretive US cyber unit has been spying on China for 15 years

NSA headquartersBy JOSEPH FITSANAKIS | intelNews.org |
A secretive cyberattack unit within the United States National Security Agency (NSA) has been engaged in protracted offensive cyberespionage operations against China for nearly 15 years. The revelation, made this week by veteran NSA watcher Matthew M. Aid, appears to confirm recent allegations made by Chinese government officials that Beijing’s secrets come under regular attack by US government-sponsored hackers. It also agrees with claims made by several intelligence observers, including this blog, that America’s cyber-security posture is not purely defensive. According to Aid’s article, published this past Monday in Foreign Policy, China’s allegations that it has been the target of sustained cyberespionage attacks by the US “are essentially correct”. Citing “a number of highly confidential sources”, Aid alleges that the NSA maintains a substantial “hacker army”. These ‘cyberwarriors’ allegedly operate under the NSA’s Office of Tailored Access Operations, known inside NSA simply as TAO. Its personnel is said to have successfully penetrated the Chinese government’s telecommunications networks and servers since the late 1990s, generating “some of the best and most reliable intelligence information” gained by Washington. It does so through computer network exploitation (CNE) techniques, such as surreptitious hacking, password exploitation, and even by compromising Chinese network security technicians. Aid alleges that TAO works closely with the Central Intelligence Agency (CIA) and the Federal Bureau of Investigation (FBI), through a small “clandestine intelligence gathering unit”. The latter employs CIA and FBI operatives who perform what are known as “off-net operations”, a term that refers to physical break-ins of Chinese and other foreign diplomatic facilities, in order to compromise the security computer hardware. Read more of this post

News you may have missed #842 (world reaction to Snowden leak)

Edward SnowdenBy IAN ALLEN | intelNews.org |
►►Chinese media focus on Snowden leaks. The front pages of Chinese state media were covered Thursday with the allegations of ex-CIA employee Edward Snowden, who says the US government has been hacking computers in China for years. Speaking to media in Hong Kong, where he is currently staying, Snowden said the US has been hacking computers in Hong Kong and mainland China since 2009. He said targets include public officials, businesses and the Chinese University of Hong Kong. Those claims by Snowden were the top story on most of China’s major news portals on Thursday
►►Switzerland furious about Snowden’s charge that CIA spies on Swiss banks. One of the many lurid details in The Guardian’s remarkable interview with NSA whistleblower Edward Snowden was his account of what initially prompted him to leak: namely a CIA tour in Switzerland, where CIA officers recruited Swiss banking officials. The Snowden disclosure could not come at a worse time for the Swiss government, which is trying to convince parliament to back its emergency plan that would allow Swiss banks to turn over data on tax evaders to the US government.
►►Is Russia considering giving asylum to Snowden? Asked if the 29-year-old could claim asylum from Russia, a spokesman for President Vladimir Putin told the newspaper Kommersant: “If such a request is received, it will be considered”. Any attempt by the Kremlin to give refuge to Mr Snowden, amid calls for his prosecution under the US Espionage Act, is likely to infuriate the White House and provoke a major diplomatic standoff.

News you may have missed #841 (Snowden leak analysis)

Edward SnowdenBy IAN ALLEN | intelNews.org |
►►US officials defend spy programs as safeguards against terror. Intelligence officials sought to convince US House lawmakers in an unusual briefing that the government’s years-long collection of phone records and Internet usage is necessary for protecting Americans —and does not trample on their privacy rights. The parade of FBI and intelligence officials who briefed the entire House on Tuesday was the latest attempt to soothe outrage over NSA programs which collect billions of Americans’ phone and Internet records.
►►Some in US intelligence see Chinese behind Snowden leak. Former CIA officer Bob Baer told CNN that some US intelligence officials “are seriously looking at [the revelations made by Edward Snowden] as a potential Chinese covert action. Hong Kong is controlled by Chinese intelligence”, Baer told CNN Sunday evening. “It’s not an independent part of China at all. I’ve talked to a bunch of people in Washington today, in official positions, and they are looking at this as a potential Chinese espionage case”.
►►Leak highlights risk of outsourcing US spy work. The explosive leak uncovering America’s vast surveillance program highlights the risks Washington takes by entrusting so much of its defense and spy work to private firms, experts say. Edward Snowden, the 29-year-old man whose leak uncovered how spy agencies sift through phone records and Internet traffic, is among a legion of private contractors who make up nearly 30 percent of the workforce in intelligence agencies. From analyzing intelligence to training new spies, jobs that were once performed by government employees are now carried out by paid contractors, in a dramatic shift that began in the 1990s amid budget pressures.

Ex-CIA technician who leaked Verizon court order comes forward

Edward SnowdenBy JOSEPH FITSANAKIS | intelNews.org |
Last week, British newspaper The Guardian revealed a secret court order that enables the United States government to collect the telephone records of millions of customers of Verizon, one of America’s largest cellular phone service providers. On the morning of Sunday, June 9, the individual responsible for leaking the secret court order came forward on his own volition. He is Edward Snowden, a former technical assistant for the US Central Intelligence Agency (CIA). The 29-year-old computer expert, who has been working for the National Security Agency (NSA) for the last four years, told The Guardian that he decided to leak the injunction because he felt it posed “an existential threat to democracy”. He added that he was not motivated by money in disclosing the document. Were he after money, he said, he “could have sold these documents to any number of countries and gotten very rich”. In a video published on The Guardian’s website, Snowden told the paper that his disillusionment with America’s “federation of secret law, unequal pardon and irresistible executive powers” began even before 2007, when he was stationed under diplomatic cover at the CIA station in Geneva, Switzerland. He finally decided to act three weeks ago, he said, after careful consideration of the ramifications of his decision for his life and career.

Read more of this post

News you may have missed #840

John KiriakouBy IAN ALLEN | intelNews.org |
►►S. Korea prosecutors might seek ex-spy chief’s arrest. Prosecutors said Monday they will decide sometime this week whether to seek an arrest warrant against Won Sei-hoon, who headed South Korea’s National Intelligence Service (NIS) for about four years until early this year. He is suspected of ordering agents to post a slew of politically sensitive comments on the Internet in order to sway public opinion in favor of the ruling party candidate prior to the December 19 national election. Won, who headed the NIS under former President Lee Myung-bak, has been barred from leaving the country pending investigation.
►►CIA self-described whistleblower writes about life in prison. In 2012, former CIA officer John Kiriakou pleaded guilty to violating the Intelligence Identities Protection Act. In January of this year, he was sentenced to 30 months in a low security prison in Loretto, Pennsylvania. In a letter released by his lawyer, Kiriakou describes his day-to-day life behind bars, from his own tiny cell to an almost anthropological study of the lunchroom and the relatively rare prison fights.
►►Comment: End the spy budget secrecy in Israel. Since the establishment of the Israeli state, the security establishment has enjoyed confidentiality with regard to the details of its budget, justified by the need to keep secrets from enemy intelligence services. This lack of transparency has impaired public scrutiny of security expenditure, which represents a large chunk of the Israeli economy. When the watchful eye is distant, the temptation is great to inflate job slots, exaggerate salary increments and hike up pension conditions.

News you may have missed #838 (analysis edition)

Predator droneBy IAN ALLEN | intelNews.org |
►►Delisle spy case barely caused ripples between Canada and Russia. The arrest of Jeffrey Delisle, a Canadian naval officer spying for Russia, did little to discourage Canada from welcoming that country’s defense chief to a Newfoundland meeting of Arctic nations last year. The visit underscored the puzzling lengths to which the Canadian government went to carry on a business-as-usual relationship with the one-time Cold War adversary. Most other planned military contacts between the two nations last year —including participation in the anti-terrorism exercise Operation Vigilant Eagle— also remained curiously normal.
►►Don’t believe the hype on Chinese cyberespionage. Within a day of each other, The Washington Post published a shocking list of US defense programs whose designs have reportedly been stolen by Chinese cyberattacks, and ABC news said the plans for Australia’s spy headquarters were also stolen by Chinese hackers. It makes China sound like a secret-sucking cyber espionage machine, but is that really the case? The knee-jerk interpretation to this disclosure (and others) is that China is a powerhouse of cyber espionage capable of stealing whatever secrets they want and that the US is powerless to stop them. This seems very unlikely.
►►US Predator drone program quietly shifted from CIA to DoD. The White House has quietly shifted lead responsibility for its controversial armed drone program from the CIA to the Defense Department. In a landmark speech last week at National Defense University in Washington, US President Barack Obama offered some clues into the status of the program, opaquely signaling it will now primarily be conducted by the United States military.

Canada spy agency refused to notify Mounties about Russian agent

Jeffrey Paul DelisleBy JOSEPH FITSANAKIS | intelNews.org |
Canada’s main counterintelligence agency opted to keep secret from the Royal Canadian Mounted Police (RCMP) vital information about a Canadian naval officer who spied for Russia. Regular readers of this blog will be familiar with the case of Jeffrey Paul Delisle, a Sub-Lieutenant in the Royal Canadian Navy, who until 2011 was employed at Canada’s ultra-secure TRINITY communications center in Halifax. Delisle was arrested in January 2012 for passing information gathered from radio and radar signal interceptions to a foreign power, most likely Russia. In May of last year, it emerged that it was in fact the United States that alerted the Canadian Security Intelligence Service (CSIS) about Delisle’s espionage activities. What was supposed to happen next was that the CSIS —which is not a law enforcement agency— should have notified the RCMP of Delisle’s activities and requested his prompt arrest. Remarkably, however, the CSIS chose to keep the Delisle file concealed from the RCMP, ostensibly to prevent the possible exposure of intelligence sources and methods in open-court proceedings. The Canadian Press, which broke the story on Sunday, cited “numerous sources familiar with the Delisle case” in claiming that the CSIS’ refusal to request Delisle’s arrest “frustrated Washington”, which feared that the spy was routinely compromising United States secrets shared by America with its Canadian allies. So frustrated were the Americans, that the Federal Bureau of Investigation (FBI) sketched out a plan to lure Delisle onto US soil and arrest him there. Read more of this post

Russia expelled ex-US embassy official who rebuffed spy advances

US embassy in MoscowBy JOSEPH FITSANAKIS | intelNews.org |
Russian authorities expelled a former American diplomat living in Moscow earlier in May, less than two months after he allegedly rebuffed an offer to spy on the United States for Russia. The former official, Thomas Firestone, served two tours of duty as a Resident Legal Adviser at the American embassy in Moscow. He later joined the Moscow office of Baker & McKenzie, a US-based law firm with offices worldwide. Firestone had frequent and direct dealings with the Russian government in his capacity as a specialist in the Foreign Corrupt Practices Act. This US law permits the prosecution of bribery cases in American courts. According to The New York Times, Firestone was approached in March of this year by operatives of the Russian Federal Security Service, the FSB, one of the main successor agencies of the Soviet KGB. Citing “people familiar with the case”, The Times claims that the American lawyer turned down an offer to spy for Moscow on behalf of the FSB. On May 5, however, while returning to Moscow from a trip abroad, Firestone was detained at Sheremetyevo International Airport, 18 miles outside of the Russian capital. After a 16-hour detention, the former Justice Department official was told that he had been declared persona non grata (undesirable) and was to be denied entrance into Russia; he was promptly placed on a flight to the US, which departed shortly afterwards. The Times says that it remains unclear at this point whether Firestone’s expulsion was directly connected to his alleged refusal to give in to the FSB’s espionage advances. However, the paper claims that the matter has been raised with the Russian government by the administration of US President Barack Obama. Read more of this post

Russian news agency reveals name of CIA station chief in Moscow

US embassy in MoscowBy JOSEPH FITSANAKIS | intelNews.org |
A Russian news agency revealed the name of the alleged station chief of the United States Central Intelligence Agency (CIA) in Moscow, but then deleted the information from its website. Russia Today, a multilingual Moscow-based television network funded by the Russian government, hosted an interview on May 17 with an anonymous representative of the FSB, the Russian Federal Security Service. The FSB official was commenting on the case of Ryan Fogle, an alleged CIA case officer who was detained in downtown Moscow by the FSB on the evening of Monday, April 13. The Russians claim that Fogle, who held the post of Third Secretary of the Political Department of the United States embassy in Moscow, was trying to recruit a Russian intelligence officer. Russia Today quoted the FSB official as saying that Fogle’s operations “crossed the red line and [the FSB] had no choice but to react [by] observing official procedures”. He added that Fogle had been detected trying to recruit Russian government employees in as early as 2011. At that time, the anonymous source told Russia Today the FSB had “decided to warn [its] American colleagues and ask them to stop these activities”. The warning, he said, had been delivered by the FSB directly to the CIA station chief in Moscow; the article then proceeded to name the American official. International media are not bound by the 1982 US Intelligence Identities Protection Act, which makes it a federal crime to intentionally reveal the identity of individuals engaged in covert roles with US intelligence agencies. However, publicly revealing the identity of senior intelligence officials during peacetime is highly irregular and frowned upon, even among adversaries. The BBC, which reported on the revelation, described the move as a “breach of diplomatic protocol”. Read more of this post

Analysis: Is US diplomat arrested in Russia a CIA case officer?

Ryan Christopher FogleBy JOSEPH FITSANAKIS | intelNews.org |
The Russian Ministry of Foreign Affairs lodged an official complaint yesterday with the United States Ambassador to Russia over the alleged espionage activities of Ryan Christopher Fogle. The Third Secretary in the Political Section of the US embassy was arrested with great media fanfare on Monday night, allegedly as he was trying to recruit a Russian intelligence officer. As can be expected, the Russian media had a field day with Fogle’s arrest; after all, it has been nearly a decade since the last time an American intelligence operative was publicly uncovered on Russian soil. Many Western observers, however, have questioned if Fogle could really be an officer of the Central Intelligence Agency, and whether the Russian Federal Security Service (FSB) simply framed an unsuspecting junior American diplomat. Much of the skepticism expressed by Western commentators focuses on the articles that were allegedly found by the FSB in Fogle’s backpack. They included several pairs of sunglasses, recording devices, as well as two wigs. Would a CIA officer be foolish enough to be carrying with him surreptitious recording devices in downtown Moscow? And do modern case officers still employ wigs when walking the streets of foreign capitals recruiting spies? The answer is, of course, yes. Read more of this post