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Showing posts with label Hacking. Show all posts
Showing posts with label Hacking. Show all posts

Monday, October 28, 2013

US State Department lacks any cyber-security whatsoever – report

Reuters / Jim Young
Reuters / Jim Young
 
Access classified data without authorization, use your account after you’ve been fired, or anonymously request a new account for an Afghan friend – these are just some of the features available in State Department’s SMART system, BuzzFeed reports.
In the wake of the Manning and Snowden classified US intelligence leaks, internal documents obtained by BuzzFeed reveal that the US State Departments’ security systems are vulnerable if not providing open access to classified information.
The breaches in security, horrifying to any IT expert, are reported in the State Messaging and Archival Toolset (SMART) – a cable and messaging system which is based on MS Outlook. The SMART operates with working emails and cables, stored both in classified (ClassNet) and unclassified (OpenNet) enclaves.  
SMART was initially created for improving information sharing after the 9/11 attacks. The internal messaging application has been built and maintained by a team of State Department employees and IT contractors under the $2.5 billion Vanguard contract. 
It became fully operational in September 2008 under US State Secretary Hillary Clinton. However, it turns out the system never complied with all the requirements of the Federal Information Security Management Act and the National Institute of Standards and Technology requirements, according to a 2010 Office of Inspector General (OIG) report.
Failing to provide enough cyber protection, the system regularly received failing or below-failing grades from its internal monitoring system, according to documents obtained by BuzzFeed.
The SMART’s monitoring system, deployed for the purpose of determining whether there has been unauthorized access or modification of files, frequently fails to perform any of that, the report said. And with an existing backdoor between the classified and non-classified enclaves, state secrets can be accessed by a user without proper clearance, even unintentionally, BuzzFeed writes.
Access restriction is in fact one of the biggest problems with SMART, it’s well-known but nobody is willing to fix. 
According to the report, in 2012 three SMART accounts were created for users in Kabul, Afghanistan. Internal audit had shown no one has any idea of who requested their creation or was using them. Since then the mystical accounts have been deleted, but no results on possible unauthorized activities via them have been made public. 

Reuters / Kacper Pempel
Reuters / Kacper Pempel
That unauthorized access was not an isolated incident. According to the report accounts for former employees remain active for some time after they leave. In addition the State Department can only guess about the number of contractors who have access to the system, and whether those contractors have gone through proper security checks.
In some cases, the computer systems also allowed access to data to unregistered users through anonymous unsecured access points with default credentials.
Currently, the database has no hashing, time-stamping, or other capabilities telling that the records have not been accessed, tampered with, copied by unauthorized users, or even switched for a fake.
After the 2010 leak of hundreds of thousands of Pentagon and State Department documents by Army Private Bradley Manning to the anti-secrecy website WikiLeaks, the department has disabled the ability to forward messages, but failed to block the ability to cut and paste messages and cables, BuzzFeed reports.
Legitimate users are also contributing to potential classified data leaks with their routine actions. When a non-classified user’s email on an operating level is included in a classified group mailing list – he begins receiving all classified attachments. Users also regularly mislabel classified information as unclassified, BuzzFeed reports, because they just like unclassified system better and appreciate its user friendly interface.
There have also been complaints concerning service accounts with non-expiring passwords or with no passwords at all, despite federal requirements that they be reset every 60 days. 
Over 19,000 of the 121,702 active accounts including users, service, and mailbox accounts, on the unclassified system alone, do not require passwords, said a 2012 independent audit of the system, conducted for the OIG.
There have been requests to fix the security problem, but it has always been delayed by the authorities, BuzFeed reported.
Back in 2009 the Chief Information Officer, Charlie Wisecarver, tasked the department’s current Deputy Chief Intelligence Officer in charge of the SMART program, Glen Johnson, to immediately fix the problem.
However according to email exchanges obtained by BuzzFeed, Johnson’s answer was that it might not be technically possible nor prudent to change passwords every 60 days, as both users and system operators could forget and be blocked from entering the system.
“It is equally easy to imagine the midnight shift trying to fix a problem and being frustrated because they can’t log in because of an expired or changed password,” he emailed the Wisecarver. “It is equally easy to imagine that regularly passing around a sheet of many passwords has its own risks.”
The IT managers proposed changing only the Active Directory user passwords, not the service accounts, however whether that was implemented is not clear. 
The State Department’s security has been a standing problem since at least 2009, as earlier reports suggested a severe lack of security, including unsecured servers, workstations, unencrypted transfer of secret material, and the intermixing of classified and non-classified information
 

Saturday, October 26, 2013

FBI makes record $28 million Bitcoin bust

US authorities have reported their largest-ever Bitcoin bust amounting to $28 million of the digital currency. It was seized from the owner of the controversial Silk Road website, which was shut down three weeks ago.
A Friday statement by federal prosecutors in New York details the seizure of 144,336 bitcoins, which were discovered on the computer belonging to Silk Road founder Ross William Ulbricht, alias “Dread Pirate Roberts,” Reuters reports. Ulbricht was arrested Oct. 1 in San Francisco on several charges of conspiracy.
Ulbricht’s lawyer could not be reached for comment, but the accused earlier denied all the allegations.
Since its inception in 2011, the now closed website was an anonymous hub for anything from drug deals to weapons and computer hacking programs – even hiring assassins, the Justice Department said.
The digital currency itself has been around since 2008, but it was not until 2011 that authorities showed greater interest in it, following the discovery of the connection to Silk Road and the near to 1 million registered users regularly engaging in illegal activities.
The current bust was part of a joint civil action against Ulbricht and his website. He is expected to appear in court in a matter of weeks to face charges of conspiring to traffic narcotics, launder money and hack computer networks.
Ulbricht’s arrest and the bitcoin seizure followed a string of international arrests of Silk Road users by Swedish, British and US authorities, a testament to the scale of the international crackdown on the website. The director of Britain’s newly-founded National Crime Agency (NCA), Keith Bristow, warned Oct. 9 that the “latest arrests are just the start” and “there are many more to come."
Bristow added that bitcoin will also now be closely watched, after his agency seized millions of pounds of the electronic currency.
Together with the previous figure of 30,000 bitcoins, the new FBI bust puts the current value of seized currency at $33 million, the US Attorney General’s Office said. In the two years Ulbricht’s website was in operation, about $1.2 billion in bitcoins were traded. Silk Road charged between 8 and 15 percent in commissions.

George Frey/Getty Images/AFP
George Frey/Getty Images/AFP
Following Ulbricht’s arrest and the seizure of 26,000 bitcoins from a public wallet, an FBI-linked public wallet was discovered by Reddit users the next day. The owner could not be identified for certain, but bitcoin users quickly seized the opportunity to use it as a platform for voicing their opinions about the FBI.
They made tiny donations to the wallet, dubbed ‘Silkroad Seized Coins’ on another website – Blockchain.info, which allowed them to post comments – the majority of them bashing the FBI for trying to “control” the bitcoin business instead of seeking justice.
But even now, weeks after Ulbricht’s arrest, it remains unclear what the FBI have actually “seized.” To use bitcoins someone must have a private password corresponding to each wallet.
The previous public wallet seizure was carried out easily because those bitcoins were at the less-protected escrow account of the website, Extreme Tech wrote at the time of Ulbricht’s arrest. Ulbricht’s estimated $80 million personal wealth in bitcoins has remained inaccessible to the FBI, and it also remains unclear what the FBI would do with the bitcoins if they did have access to them – as the US government refuses to recognize the currency as legal tender.
The authorities may be able to prevent Ulbricht from transferring the money, but without having the ability to access the bitcoins, seizing them is not much more than simply confiscating a computer.
The success of the Silk Road website was attributed to its operating on the encrypted Tor network, which made its dealings nearly impossible to trace. One transaction would also generate a vast number of fake ones with the purpose of masking the original buyer and seller – another effect of Bitcoin’s anonymous and decentralized nature.

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