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Global articles on espionage, spying, bugs, and other interesting topics.

Keep abreast of the espionage threats facing your organisation.

Listening devices found in Oslo, prompting spying investigation

OSLO (Reuters) – Norwegian police are investigating a possible spying operation by a foreign power after electronic devices designed to intercept telephone conversations were discovered near government buildings.

In its own two-month investigation, the daily newspaper Aftenposten detected signals from several surveillance devices that had been placed near the prime minister’s offices, the central bank, parliament and major company headquarters.

“We can’t exclude the possibility that this is coming from foreign state agencies,” said Siv Alsen, spokeswoman for the police’s intelligence unit, which will carry out the investigation.

Aftenposten said the devices were able to attract mobile phone signals and record conversations.

“If correct, such surveillance is completely unacceptable,” Justice Minister Anders Anundsen said in a statement. “We must make every effort to identify who or what is behind it, and how comprehensive it is.”

Norway, a U.S. ally and a founding member of NATO, has had its share of diplomatic conflicts in recent years.

Its ties with China have been virtually frozen since 2010 when the Norwegian Nobel Committee awarded the Nobel Peace Prize to Chinese dissident Liu Xiaobo. Norway has also followed the European Union’s sanctions against Russia this year.

Norway’s military also patrols vast parts of the Arctic, monitoring commercial and military activity.

(Reporting by Joachim Dagenborg; Writing by Balazs Koranyi; Editing by Robin Pomeroy)


China passes counter-espionage law

BEIJING (Reuters) – China passed a counter-espionage law on Saturday aimed at tightening state security and helping build a “comprehensive” national security system, state media reported.

The law will allow authorities to seal or seize any property linked to activities deemed harmful to the country, the Xinhua news agency said.

Authorities can also ask organizations or individuals to stop or modify any behavior regarded as damaging to China’s interests, Xinhua said. Refusal to comply would allow enforcement agencies to confiscate properties.

Possession of espionage equipment, as defined by the state security department, had also been made illegal, Xinhua said. The news agency gave no further details.

As China already has broad laws governing state secrets and security, it was not clear to what extent the new law – passed by revising and re-naming a previous national security law for the first time in 21 years – would enhance policing powers.

The revised security law followed a Communist Party meeting last month that promised to allow courts more independence and curtail officials’ influence over legal cases, though the vows were criticized by some as lacking in substance.

Parliament also revised an “administrative procedure law” that would expand peoples’ right to sue the government.

The defendants in these legal cases, such as government officials, would be fined or detained if they “force a plaintiff to withdraw the suit through illegal means such as threats or fraud”, Xinhua said.

(Reporting by Koh Gui Qing; Editing by Robert Birsel)


Cyber ring stole secrets for gaming stock market, security firm says

Security researchers say they have uncovered a cyber espionage ring focused on stealing corporate secrets for the purpose of gaming the stock market, in an operation that has compromised sensitive data about dozens of publicly held companies.

Cybersecurity firm FireEye, which disclosed the operation Monday, said that since the middle of last year, the group has attacked email accounts at more than 100 firms, most of them pharmaceutical and healthcare companies.

Victims also include firms in other sectors, as well as corporate advisors including investment bankers, attorneys and investor relations firms, according to FireEye.

The cybersecurity firm declined to identify the victims. It said it did not know whether any trades were actually made based on the stolen data.

Still, FireEye Threat Intelligence Manager Jen Weedon said the hackers only targeted people with access to highly insider data that could be used to profit on trades before that data was made public.

They sought data that included drafts of U.S. Securities and Exchange Commission filings, documents on merger activity, discussions of legal cases, board planning documents and medical research results, she said.

“They are pursuing sensitive information that would give them privileged insight into stock market dynamics,” Weedon said.

The victims ranged from small to large cap corporations. Most are in the United States and trade on the New York Stock Exchange or Nasdaq, she said.

An FBI spokesman declined comment on the group, which FireEye said it reported to the bureau.

Home Depot faces dozens of lawsuits related to data breach Home Depot Inc. faces at least 44 lawsuits in the U.S. and Canada over a massive data breach this year that affected 56 million debit and credit cards. Home Depot Inc. faces at least 44 lawsuits in the U.S. and Canada over a massive data breach this year that affected 56 million debit and credit cards.

The security firm designated it as FIN4 because it is number 4 among the large, advanced financially motivated groups tracked by FireEye.

The hackers don’t infect the PCs of their victims. Instead they steal passwords to email accounts, then use them to access those accounts via the Internet, according to FireEye.

They expand their networks by posing as users of compromised accounts, sending phishing emails to associates, Weedon said.

FireEye has not identified the hackers or located them because they hide their tracks using Tor, a service for making the location of Internet users anonymous.

FireEye said it believes they are most likely based in the United States, or maybe Western Europe, based on the language they use in their phishing emails, Weedon said.

She said the firm is confident that FIN4 is not from China, based on the content of their phishing emails and their other techniques.

Researchers often look to China when assessing blame for economically motivated cyber espionage. The United States has accused the Chinese government of encouraging hackers to steal corporate secrets, allegations that Beijing has denied, causing tension between the two countries.

Weedon suspects the hackers were trained at Western investment banks, giving them the know-how to identify their targets and draft convincing phishing emails.

“They are applying their knowledge of how the investment banking community works,” Weedon said.


Protecting Your Organisation From Espionage

Gone are the days when a simple sweep for bugs could solve all of your problems. Today’s world of espionage is so much more complex than ever before and it’s getting harder and harder to protect against the threats.

In the mid-nineties, I wrote an article titled “Surveillance in Society”. It was intended to highlight the ways in which surveillance had changed over the years, confirming many people’s thoughts, that they could not go about their daily business without being filmed or photographed multiple times. It was by no means a criticism of surveillance systems, rather, a means by which to relay to the community that surveillance is good for us. It protects us.

A lot has changed since then. No longer can we assume that what we do remains private.

Read More


Global cyber-espionage campaign

Security researchers have identified an ongoing cyber-espionage campaign that compromised 59 computers belonging to government organizations, research institutes, think tanks and private companies from 23 countries in the past 10 days.

The attack campaign was discovered and analyzed by researchers from security firm Kaspersky Lab and the Laboratory of Cryptography and System Security (CrySyS) of the Budapest University of Technology and Economics.

Dubbed MiniDuke, the attack campaign used targeted email messages — a technique known as spear phishing — that carried malicious PDF files rigged with a recently patched exploit for Adobe Reader 9, 10 and 11.

The exploit was originally discovered in active attacks earlier this month by security researchers from FireEye and is capable of bypassing the sandbox protection in Adobe Reader 10 and 11. Adobe released security patches for the vulnerabilities targeted by the exploit on Feb. 20.

The new MiniDuke attacks use the same exploit identified by FireEye, but with some advanced modifications, said Costin Raiu, director of Kaspersky Lab’s global research and analysis team, on Wednesday. This could suggest that the attackers had access to the toolkit that was used to create the original exploit.

The malicious PDF files are rogue copies of reports with content relevant to the targeted organizations and include a report on the informal Asia-Europe Meeting (ASEM) seminar on human rights, a report on Ukraine’s NATO membership action plan, a report on Ukraine’s regional foreign policy and a report on the 2013 Armenian Economic Association, and more.

If the exploit is successful, the rogue PDF files install a piece of malware that’s encrypted with information gathered from the affected system. This encryption technique was also used in the Gauss cyber-espionage malware and prevents the malware from being analyzed on a different system, Raiu said. If run on a different computer, the malware will execute, but will not initiate its malicious functionality, he said.

Another interesting aspect of this threat is that it’s only 20KB in size and was written in Assembler, a method that’s rarely used today by malware creators. Its small size is also unusual when compared to the size of modern malware, Raiu said. This suggests that the programmers were “old-school,” he said.

The piece of malware installed during this first stage of the attack connects to specific Twitter accounts that contain encrypted commands pointing to four websites that act as command-and-control servers. These websites, which are hosted in the U.S., Germany, France and Switzerland, host encrypted GIF files that contain a second backdoor program.

The second backdoor is an update to the first and connects back to the command-and-control servers to download yet another backdoor program that’s uniquely designed for each victim. As of Wednesday, the command-and-control servers were hosting five different backdoor programs for five unique victims in Portugal, Ukraine, Germany and Belgium, Raiu said.These unique backdoor programs connect to different command-and-control servers in Panama or Turkey, and they allow the attackers to execute commands on the infected systems.

The people behind the MiniDuke cyber-espionage campaign have operated since at least April 2012, when one of the special Twitter accounts was first created, Raiu said. However, it’s possible that their activity was more subtle until recently, when they decided to take advantage of the new Adobe Reader exploit to compromise as many organizations as possible before the vulnerabilities get patched, he said.

The malware used in the new attacks is unique and hasn’t been seen before, so the group might have used different malware in the past, Raiu said. Judging by the wide range of targets and the global nature of the attacks, the attackers probably have a large agenda, he said.

MiniDuke victims include organizations from Belgium, Brazil, Bulgaria, Czech Republic, Georgia, Germany, Hungary, Ireland, Israel, Japan, Latvia, Lebanon, Lithuania, Montenegro, Portugal, Romania, Russia, Slovenia, Spain, Turkey, Ukraine, United Kingdom and the United States.

In the United States, a research institute, two pro-U.S. think tanks and a health care company have been affected by this attack, Raiu said without naming any of the victims.

The attack is not as sophisticated as Flame or Stuxnet, but is high-level nevertheless, Raiu said. There are no indications regarding where the attackers might operate from or what interests they might be serving.

That said, the backdoor coding style is reminiscent of a group of malware writers known as 29A, believed to be defunct since 2008. There’s a “666” signature in the code and 29A is the hexadecimal representation of 666, Raiu said.

A “666” value was also found in the malware used in the earlier attacks analyzed by FireEye, but that threat was different from MiniDuke, Raiu said. The question of whether the two attacks are related remains open.

News of this cyber-espionage campaign comes on the heels of renewed discussions about the Chinese cyber-espionage threat, particularly in the U.S., that were prompted by a recent report from security firm Mandiant. The report contains details about the years-long activity of a group of cyberattackers dubbed the Comment Crew that Mandiant believes to be a secret cyberunit of the Chinese Army. The Chinese government has dismissed the allegations, but the report was widely covered in the media.

Raiu said that none of the MiniDuke victims identified so far was from China, but declined to speculate on the significance of this fact. Last week security researchers from other companies identified targeted attacks that distributed the same PDF exploit masquerading as copies of the Mandiant report.

Those attacks installed malware that was clearly of Chinese origin, Raiu said. However, the way in which the exploit was used in those attacks was very crude and the malware was unsophisticated when compared to MiniDuke, he said.