Current Threat to the U.S. from Cyber Espionage & Cyberterrorism



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UNCLASSIFIED//FOUO Current Threat to the U.S. from Cyber Espionage & Cyberterrorism Presented by SSA Elvis Chan FBI San Francisco Overall Classification: UNCLASSIFIED//FOR OFFICIAL USE ONLY UNCLASSIFIED//FOUO

FBI Priorities - Post 9/11 Counterterrorism Foreign Counterintelligence Cyber Public Corruption Civil Rights Criminal Enterprises White Collar Crime Violent Crime

The Cyber Threat America's economic prosperity in the 21st century will depend on cyber security President Barack Obama May 29, 2009

The Cyber Threat Terrorism does remain the FBI s top priority, but in the not too distant future we anticipate that the cyber threat will pose the greatest threat to our country. FBI Director Robert S. Mueller III March 1, 2012

The Cyber Threat I don t see cyber as a thing, I see it as a way. As a vector. FBI Director James B. Comey January 7, 2015

Cyber Threats Hacktivism Cyber Crime Cyber Espionage Cyberterrorism Cyber Warfare

Cyber Espionage Definition What is cyber espionage? Cyber espionage is the act or practice of obtaining secrets without the permission of the holder of the information (personal, sensitive, proprietary, or of classified nature), from individuals, competitors, rivals, groups, governments and enemies for personal, economic, political or military advantage using methods on the Internet, networks, or individual computers through the use of cracking techniques and malicious software including Trojan horses and spyware. -Wikipedia

Cyber Espionage What? What is going on? State sponsored adversaries are pursuing sensitive U.S. information and proprietary technologies. U.S. company networks house this information and may be vulnerable to exploitation.

Cyber Espionage Who? Who is doing it? Chinese actors are the world s most active & persistent perpetrators of economic espionage. U.S. private sector firms and cyber security specialists have reported an onslaught of computer network intrusions that have originated in China. The governments of China and Russia will remain aggressive and capable collectors of sensitive U.S. economic information and technologies, particularly in cyberspace. Foreign Spies Stealing US Economic Secrets in Cyberspace Office of the Director of National Intelligence Published: October 2011 http://www.dni.gov/reports/20111103_report_fecie.pdf

Cyber Espionage How? How do they do it? The exploitation of trust: The trusted incoming e-mail. The publicly available trusted web site of appropriate business interest. The download of trusted code from a trusted and authorized vendor. The trusted protocols for data transfer. The inherent trust of the internal corporate network. The trusted external client server.

Cyber Espionage Why? Why do they do it? Meet intelligence collection requirements Acquire information for advantage Military Economic Political Target key individuals with access Create future opportunities

Cyber Espionage Case Study #1 Ming Zhong and Fei Ye November 2001, two Chinese nationals were arrested at SFO just before boarding a flight to Shanghai. Thousands of proprietary documents and electronic media from NEC, Sun, Transmeta, and Trident were seized.

Cyber Espionage Case Study #2 On May 19, 2014, the Dept. of Justice announced a first-of-its-kind cyber espionage case against Chinese military officials. Five PLA officials were charged with hacking into U.S. companies to steal trade secrets.

Cyber Espionage Case Study #3 In October 2014, security researchers identify a new sophisticated Chinese cyber espionage group dubbed Axiom. Axiom targets the U.S., other Western countries, and Chinese dissidents inside and outside of China. Active for at least six years: Hikit malware provides advanced persistent threat. Maintenance cycles to switch out malware on victim machines.

Cyber Threats Hacktivism Cyber Crime Cyber Espionage Cyberterrorism Cyber Warfare

Cyberterrorism What? What is cyberterrorism? Terrorist Use of the Internet vs. Cyberterrorism

Terrorist Use of the Internet Example Times Square Bombing Faisal Shahzad Public Web Cameras File-sharing websites Proxy servers Remote conferencing software Claimed attack on YouTube

Cyberterrorism Definition What is cyberterrorism? Cyberterrorism is disruptive or destructive acts perpetrated against noncombatant targets at the direction, on behalf, or in support of a terrorist group or their ideology, through the use of computer network attack or exploitation. Such intrusions or attacks are intended to intimidate or coerce a government or population in furtherance of a social, political, ideological, or religious agenda by causing disruption, inducing fear, or undermining confidence. - FBI Definition 18

Cyberterrorism Who? Who is conducting Cyberterrorism? Al-Qa ida Islamic State of Iraq and Levant Hizballah Hamas Sympathizers

Cyberterrorism How? Spearphishing Brute Force (Password crackers) Vulnerability Attacks (SQLI, XSS, etc.) Distributed Denial of Service (HOIC, LOIC, Lizard Stressor, etc.) 20

Cyberterrorism Why? Propaganda or incite terror (website defacements) Fundraising (account hijacking, carding, etc.) Facilitation (Research/reconnaissance for kinetic attack) Disruptive acts to cause harm to life or damage to property 21

Cyberterrorism Case Study #1

Cyberterrorism Case Study #1 Compromised servers: Stored beheading videos Created proxy servers Established communication channels Identity theft to acquire servers to host extremist sites Created the Youbombit website A YouTube for jihadists Collaborated with criminal hackers and extremists Tested and utilized malware Was planning traditional kinetic attacks in Europe when he was arrested 23

Cyberterrorism Case Study #2 On 06 January 2015, CyberCaliphate, successfully took over the Twitter accounts of: Albuquerque News Journal (Albuquerque, NM) Mountain View Telegraph (Moriarty, NM) WBOC News (Baltimore, Maryland). CyberCaliphate also hacked the websites of WBOC News and Mountain View Telegraph (a subsidiary of Albuquerque News Journal), and the Facebook account of Albuquerque News Journal. 24

Cyberterrorism Case Study #2 On 12 January 2015, CyberCaliphate obtained access to the Twitter and YouTube accounts for U.S. Central Command (CENTCOM). Hackers utilized the accounts to send the message, American Soldiers, we are coming, watch your back. ISIS. The hackers tweeted the location of purportedly stolen government files on pastebin. 25

Cyberterrorism Case Study #2 On 10 February 2015, CyberCaliphate hacking group hacked the Twitter accounts of Newsweek and Latin Times, and the mobile message provider for WBOC News. CyberCaliphate tweeted from the Newsweek Twitter Account: Bloody Valentine s Day, #MichelleObama! We re watching you, your girls, and your husband! 26

Cyberterrorism Case Study #3 Team Poison Member Junaid Hussain aka Trick Arrested in July 2012 for denial of service attack on U.K. anti-terror hotline and doxing PM Tony Blair & family 27

Cyberterrorism Case Study #3 Team Poison Member Junaid Hussain aka Trick In August 2014, Hussain, while on parole, and his wife travel to Syria to join with ISIS. Jihadi John may have accompanied them. Hussain is now working on behalf of ISIS to set up and run Cyber Caliphate. 28

Cyber Trends Computer network operations by adversaries are becoming ubiquitous. Cyber adversaries will increasingly leverage social media for more tailored and targeted operations. The number of vulnerability points for adversaries to exploit will increase as people move to the Internet of Things. 29

Guidance - Prevention What can I do to prevent a cyber attack? Establish Security Policies then prioritize Support Established Security Policies Monitor and Analyze Network Traffic Assess Vulnerabilities Configure Systems for Security (may mean $$) Support Training for Employees 30

Guidance - Prevention The To Do List Before a Cyber Attack Point of Contact for Legal, Technical and Project Management Legal Banner/Computer Use Agreement Employee Handbook/Corporate Policies Network Topography Maps Internal and External IP address and Host lists List of Network Devices (switches, routers, other devices) Incident Logs (Security, Host, IDS, Web, Database, Network) Archived Network Traffic Forensic Images of Compromised Hosts (live memory captures) Physical Access logs (video cameras, key cards, TFA devices) 31

Guidance After the Attack The To Do List After a Cyber Attack Follow your emergency plan and start protecting your data! Call the FBI. Preserve original media as evidence. Conduct analysis from a copy (if possible). Review ALL logs (DNS, Firewall, Proxy, System Event Logs). Contact ISP for additional logs and possible filtering. Begin damage assessment (including damage valuation). 32

What can the FBI do for you? Investigate National and global reach Combined technical skills and investigative experience Long-term commitment of resources Forensics Silicon Valley Regional Computer Forensics Laboratory (SVRCFL) Keeps options open for your company Analyze Patterns and Links Bring national security concerns to the U.S. Intelligence Community 33

Investigation A Case Study Recent cyber attack at a local company FBI informed the company of possible computer intrusion. Company conducted internal investigation and found malicious software code, which was provided to FBI. FBI reverse engineered malware, identified attack structure, and developed indicators for dissemination. FBI provided indicators to company for its information security team to search logs for additional signs of compromise, and a scrubbed version to sector sharing group. Company can now look for other similar malicious code and help stop the loss of its intellectual property 34

What the FBI does not do Take over your systems. Repair your systems. Share proprietary information with competitors. Provide investigation-related information to the media or your shareholders. 35

FBI Tools Title 18, United States Code Section 1029, Fraud in connection with access of devices Section 1030 (a)(5)(a)(i) Intentional Damage. 1030(a)(5)(A)(ii)Unauthorized Access, Reckless Damage 1030(a)(7) Extortion. 1831 Economic Espionage Act. 1832 Trade Secrets Act. 36

Way Forward Threats Goals Actions Cyber Warfare Cyberterrorism Cyber Espionage Cyber Crime Hacktivism Investigation Attribution Disruption Arrest, Seizure, Exploitation Public/Private Partner Engagement HUMINT Surveillance Digital Forensics

Way Forward "Maintaining a silence will not benefit you or your company in the long run FBI Director Robert S. Mueller III March 1, 2012 FBI San Francisco Infragard Program Coordinator SA Joy Mihara-Meer 510-808-8488 Yukiyo.Mihara-Meer@ic.fbi.gov

Questions UNCLASSIFIED//FOUO Questions?

Cyber Espionage Case Study #3 In October 2014, security researchers identify a new sophisticated Chinese cyber espionage group dubbed Axiom. Axiom targets the U.S., other Western countries, and Chinese dissidents inside and outside of China. Active for at least six years: Hikit malware provides advanced persistent threat. Maintenance cycles to switch out malware on victim machines.

Cyber Threats Hacktivism Cyber Crime Cyber Espionage Cyberterrorism Cyber Warfare

Cyberterrorism What? What is cyberterrorism? Terrorist Use of the Internet vs. Cyberterrorism

Terrorist Use of the Internet Example Times Square Bombing Faisal Shahzad Public Web Cameras File-sharing websites Proxy servers Remote conferencing software Claimed attack on YouTube

Cyberterrorism Definition What is cyberterrorism? Cyberterrorism is disruptive or destructive acts perpetrated against noncombatant targets at the direction, on behalf, or in support of a terrorist group or their ideology, through the use of computer network attack or exploitation. Such intrusions or attacks are intended to intimidate or coerce a government or population in furtherance of a social, political, ideological, or religious agenda by causing disruption, inducing fear, or undermining confidence. - FBI Definition 44

Cyberterrorism Who? Who is conducting Cyberterrorism? Al-Qa ida Islamic State of Iraq and Levant Hizballah Hamas Sympathizers

Cyberterrorism How? Spearphishing Brute Force (Password crackers) Vulnerability Attacks (SQLI, XSS, etc.) Distributed Denial of Service (HOIC, LOIC, Lizard Stressor, etc.) 46

Cyberterrorism Why? Propaganda or incite terror (website defacements) Fundraising (account hijacking, carding, etc.) Facilitation (Research/reconnaissance for kinetic attack) Disruptive acts to cause harm to life or damage to property 47

Cyberterrorism Case Study #1

Cyberterrorism Case Study #1 Compromised servers: Stored beheading videos Created proxy servers Established communication channels Identity theft to acquire servers to host extremist sites Created the Youbombit website A YouTube for jihadists Collaborated with criminal hackers and extremists Tested and utilized malware Was planning traditional kinetic attacks in Europe when he was arrested 49

Cyberterrorism Case Study #2 On 06 January 2015, CyberCaliphate, successfully took over the Twitter accounts of: Albuquerque News Journal (Albuquerque, NM) Mountain View Telegraph (Moriarty, NM) WBOC News (Baltimore, Maryland). CyberCaliphate also hacked the websites of WBOC News and Mountain View Telegraph (a subsidiary of Albuquerque News Journal), and the Facebook account of Albuquerque News Journal. 50

Cyberterrorism Case Study #2 On 12 January 2015, CyberCaliphate obtained access to the Twitter and YouTube accounts for U.S. Central Command (CENTCOM). Hackers utilized the accounts to send the message, American Soldiers, we are coming, watch your back. ISIS. The hackers tweeted the location of purportedly stolen government files on pastebin. 51

Cyberterrorism Case Study #2 On 10 February 2015, CyberCaliphate hacking group hacked the Twitter accounts of Newsweek and Latin Times, and the mobile message provider for WBOC News. CyberCaliphate tweeted from the Newsweek Twitter Account: Bloody Valentine s Day, #MichelleObama! We re watching you, your girls, and your husband! 52

Cyberterrorism Case Study #3 Team Poison Member Junaid Hussain aka Trick Arrested in July 2012 for denial of service attack on U.K. anti-terror hotline and doxing PM Tony Blair & family 53

Cyberterrorism Case Study #3 Team Poison Member Junaid Hussain aka Trick In August 2014, Hussain, while on parole, and his wife travel to Syria to join with ISIS. Jihadi John may have accompanied them. Hussain is now working on behalf of ISIS to set up and run Cyber Caliphate. 54

Cyber Trends Computer network operations by adversaries are becoming ubiquitous. Cyber adversaries will increasingly leverage social media for more tailored and targeted operations. The number of vulnerability points for adversaries to exploit will increase as people move to the Internet of Things. 55

Guidance - Prevention What can I do to prevent a cyber attack? Establish Security Policies then prioritize Support Established Security Policies Monitor and Analyze Network Traffic Assess Vulnerabilities Configure Systems for Security (may mean $$) Support Training for Employees 56

Guidance - Prevention The To Do List Before a Cyber Attack Point of Contact for Legal, Technical and Project Management Legal Banner/Computer Use Agreement Employee Handbook/Corporate Policies Network Topography Maps Internal and External IP address and Host lists List of Network Devices (switches, routers, other devices) Incident Logs (Security, Host, IDS, Web, Database, Network) Archived Network Traffic Forensic Images of Compromised Hosts (live memory captures) Physical Access logs (video cameras, key cards, TFA devices) 57

Guidance After the Attack The To Do List After a Cyber Attack Follow your emergency plan and start protecting your data! Call the FBI. Preserve original media as evidence. Conduct analysis from a copy (if possible). Review ALL logs (DNS, Firewall, Proxy, System Event Logs). Contact ISP for additional logs and possible filtering. Begin damage assessment (including damage valuation). 58

What can the FBI do for you? Investigate National and global reach Combined technical skills and investigative experience Long-term commitment of resources Forensics Silicon Valley Regional Computer Forensics Laboratory (SVRCFL) Keeps options open for your company Analyze Patterns and Links Bring national security concerns to the U.S. Intelligence Community 59

Investigation A Case Study Recent cyber attack at a local company FBI informed the company of possible computer intrusion. Company conducted internal investigation and found malicious software code, which was provided to FBI. FBI reverse engineered malware, identified attack structure, and developed indicators for dissemination. FBI provided indicators to company for its information security team to search logs for additional signs of compromise, and a scrubbed version to sector sharing group. Company can now look for other similar malicious code and help stop the loss of its intellectual property 60

What the FBI does not do Take over your systems. Repair your systems. Share proprietary information with competitors. Provide investigation-related information to the media or your shareholders. 61

FBI Tools Title 18, United States Code Section 1029, Fraud in connection with access of devices Section 1030 (a)(5)(a)(i) Intentional Damage. 1030(a)(5)(A)(ii)Unauthorized Access, Reckless Damage 1030(a)(7) Extortion. 1831 Economic Espionage Act. 1832 Trade Secrets Act. 62

Way Forward Threats Goals Actions Cyber Warfare Cyberterrorism Cyber Espionage Cyber Crime Hacktivism Investigation Attribution Disruption Arrest, Seizure, Exploitation Public/Private Partner Engagement HUMINT Surveillance Digital Forensics

Way Forward "Maintaining a silence will not benefit you or your company in the long run FBI Director Robert S. Mueller III March 1, 2012 FBI San Francisco Infragard Program Coordinator SA Joy Mihara-Meer 510-808-8488 Yukiyo.Mihara-Meer@ic.fbi.gov

Questions UNCLASSIFIED//FOUO Questions?