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Wednesday, March 28, 2012

Former cybersecurity czar: Every major U.S. company has been hacked by China


Richard Clarke says evidence 'pretty strong' that China is stealing commercial secrets


Former White House cybersecurity advisor Richard Clarke has made a career out of issuing security warnings.
His most famous, of course, was his alert to Bush Administration officials in July 2001 -- 10 weeks before 9/11 -- that "something really spectacular is going to happen here, and it's going to happen soon."
Clarke was talking about an attack on U.S. soil by Al-Qaida, the terrorist group he had been warning the new administration about -- to virtually complete indifference -- since that January.
Now Clarke, author of the book Cyber War, is issuing an alert via Smithsonian magazine that the U.S. is defenseless against a cyberattack which could take down major parts of the nation's infrastructure, including civilian, military and commercial networks.
What makes the U.S. especially vulnerable, Clarke says, is that its aggressive "cyberoffense" -- “the U.S. government is involved in espionage against other governments,” he tells Smithsonian -- isn't matched by an effective, or even competent, cyberdefense, making the nation particularly vulnerable to blowback.
Clarke says he's concerned that hackers on the Chinese government payroll are threatening the U.S. economy.
"I’m about to say something that people think is an exaggeration, but I think the evidence is pretty strong. Every major company in the United States has already been penetrated by China,” Clarke says in the Smithsonian interview:
Clarke claims, for instance, that the manufacturer of the F-35, our next-generation fighter bomber, has been penetrated and F-35 details stolen. And don’t get him started on our supply chain of chips, routers and hardware we import from Chinese and other foreign suppliers and what may be implanted in them—“logic bombs,” trapdoors and “Trojan horses,” all ready to be activated on command so we won’t know what hit us. Or what’s already hitting us.
To Clarke this is a more insidious and dangerous attack than some high-profile, real-time assault on commercial and government networks.
"My greatest fear is that, rather than having a cyber-Pearl Harbor event, we will instead have this death of a thousand cuts. Where we lose our competitiveness by having all of our research and development stolen by the Chinese," Clarke tells Smithsonian. "And we never really see the single event that makes us do something about it. That it’s always just below our pain threshold. That company after company in the United States spends millions, hundreds of millions, in some cases billions of dollars on R&D and that information goes free to China....After a while you can’t compete."
It's easy to dismiss this as alarmism, but the man has a track record of being right.

Tuesday, March 27, 2012

Celebrity hacker pleads guilty to Scarlett Johansson e-mail hack


"Operation Hackerazzi" comes to a close as the hacker most known for sending private nude photos of Scarlett Johansson to gossip Web sites pleads guilty.


Christopher Chaney entered guilty pleas to nine felony counts in federal court today, admitting that he hacked into dozens of celebrities' e-mail accounts, including those of Mila Kunis and Scarlett Johansson, according to the Los Angeles Times.
"Today's guilty pleas shine a bright light on the dark underworld of computer hacking," said U.S. Attorney Andre Birotte Jr., whose office prosecuted the case, according to the Los Angeles Times. "This case demonstrates that everyone, even public figures, should take precautions to shield their personal information from the hackers that inhabit that dark underworld."
Chaney, 35 of Jacksonville, Fla., faces a maximum of 60 years in federal prison when his sentence is announced in July. He was nabbed last October following an 11-month investigation that federal officials named "Operation Hackerazzi."
Originally he was charged with a 26-count indictment that accused Chaney of unauthorized access of protected computers, wiretapping, identity theft, and damaging computers. While more than 50 victims from the entertainment industry were connected with the case, only five people were identified by name: Johansson, Kunis, Christina Aguilera, Simone Harouche, and Renee Olstead.
After the bust Chaney initially pled not guilty, but, according to TMZ, he struck a plea deal with the prosecutors and ended up agreeing to nine counts, including identity theft, wiretapping, and unauthorized access of protected computers. He also agreed to surrender his computers, external drives, and cell phone.

Over the course of the federal hearing, Chaney admitted to hacking into celebrity accounts, obtaining private e-mails and confidential documents, publicizing their personal information, and sending photos to two celebrity Web sites. Some of the photos of Johansson were nude photos she took privately to send to her then-husband Ryan Reynolds, according to The Guardian. Chaney gained access to the accounts by using the "Forgot your password?" feature in their e-mail addresses, according to the Los Angeles Times. He then would reset the passwords by answering security questions from public information he found by searching the Web. According to the plea agreement, Chaney received thousands of e-mails from the victims' accounts.

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