Google Search

Showing posts with label experts. Show all posts
Showing posts with label experts. Show all posts

Tuesday, November 5, 2013

Calling out China on hacking may be working, experts say

SINGAPORE After years of quiet and largely unsuccessful diplomacy, the U.S. has brought its persistent computer-hacking problems with China into the open, delivering a steady drumbeat of reports accusing Beijing's government and military of computer-based attacks against America.

Officials say the new strategy may be having some impact.

In recent private meetings with U.S. officials, Chinese leaders have moved past their once-intractable denials of cyber espionage and are acknowledging there is a problem. And while there have been no actual admissions of guilt, officials say the Chinese seem more open to trying to work with the U.S. to address the problems.

"By going public the administration has made a lot of progress," said James Lewis, a cybersecurity expert at the Center for Strategic and International Studies who has met with Chinese leaders on cyber issues.

Play Video

Play Video

But it will likely be a long and bumpy road, as any number of regional disputes and tensions could suddenly stir dissent and stall progress.

On Wednesday, China's Internet security chief told state media that Beijing has amassed large amounts of data about U.S.-based hacking attacks against China but refrains from blaming the White House or the Pentagon because it would be irresponsible.

The state-run English-language China Daily reported that Huang Chengqing, director of the government's Internet emergency response agency, said Beijing and Washington should cooperate rather than confront each other in the fight against cyberattacks. Huang also called for mutual trust.

President Barack Obama is expected to bring up the issue when he meets with China's new president, Xi Jinping, in Southern California later this week. The officials from the two nations have agreed to meet and discuss the issue in a new working group that Secretary of State John Kerry announced in April. Obama's Cabinet members and staff have been laying the groundwork for those discussions.

Standing on the stage at the Shangri-La Dialogue security conference last weekend, Defense Secretary Chuck Hagel became the latest U.S. official to openly accuse the Chinese government of cyber espionage - as members of Beijing's delegation sat in the audience in front of him. The U.S., he said, "has expressed our concerns about the growing threat of cyber intrusions, some of which appear to be tied to the Chinese government and military."

But speaking to reporters traveling with him to the meeting in this island nation in China's backyard, Hagel said it's important to use both public diplomacy and private engagements when dealing with other nations such as China on cyber problems.

"I've rarely seen that public engagement resolves a problem, but it's important," he said, adding that governments have the responsibility to keep their people informed about such issues.

The hacking issue also featured prominently over two days of meetings between the U.S. Chamber of Commerce and a leading Chinese trade think tank in Beijing.

"This is arguably the single most consequential issue that is serving to erode trust in the relationship," said Jeremie Waterman, the chamber's executive director for greater China. "Over time, it could undermine business support for U.S.-China relations."

According to Lewis and other defense officials familiar with the issue, China's willingness to engage in talks with the U.S. about the problem - even without admitting to some of the breaches - is a step in the right direction.

Cybersecurity experts say China-based instances of cyber intrusions into U.S. agencies and programs - including defense contractors and military weapons systems - have been going on since the late 1990s. And they went along largely unfettered for as much as a decade.

A recent Pentagon report compiled by the Defense Science Board laid out what it called a partial list of 37 programs that were breached in computer-based attacks, including the Terminal High Altitude Area Defense weapon, a land-based missile defense system that was recently deployed to Guam to help counter the North Korean threat. Other programs whose systems were breached include the F-35 Joint Strike Fighter, the F-22 Raptor fighter jet and the hybrid MV-22 Osprey, which can take off and land like a helicopter and fly like an airplane.

The report also listed 29 broader defense technologies that have been compromised, including drone video systems and high-tech avionics. The information was gathered more than two years ago, so some of the data are dated and a few of the breaches - such as the F-35 - had already become public.

According to U.S. officials and cyber experts, China hackers use gaps in software or scams that target users' email systems to infiltrate government and corporate networks. They are then often able to view or steal files or use those computers to move through the network accessing other data.

Chinese officials have long denied any role in cyberattacks and insisted that the law forbids hacking and that their military has no role in it. They have also asserted that they, too, are often the victim.

Cyber experts say some of the breaches that emanate from Internet locations in China may be the product of patriotic hackers who are not working at the behest of Beijing's government or military but in independent support of it.

The Chinese government's control of the Internet, however, suggests that those hackers are likely operating with at least the knowledge of authorities who may choose to look the other way.

U.S. officials have quietly grumbled about the problem for several years but steadfastly refused to speak publicly about it. As the intrusions grew in number and sophistication, affecting an increasing number of government agencies, private companies and citizens, alarmed authorities began to rethink that strategy.

They were pressed on by cybersecurity experts - including prominent former government officials - who argued that using cyberattacks to steal intellectual property, weapons and financial data and other corporate secrets brought great gain at very little cost to the hackers. The U.S. government, they said, had to make it clear to the Chinese that continued bad behavior would trigger consequences.

In November 2011, U.S. intelligence officials for the first time publicly accused China and Russia of systematically stealing American high-tech data for economic gain.

That was followed by specific warnings about Chinese cyberattacks in the last two annual Pentagon reports on China's military power. And in February, the Virginia-based cybersecurity firm Mandiant laid out a detailed report directly linking a secret Chinese military unit in Shanghai to years of cyberattacks against U.S. companies. After analyzing breaches that compromised more than 140 companies, Mandiant concluded that they can be linked to a unit that experts believe is part of the People's Liberation Army's cyber command.

The change in tone from the Chinese leaders came through during recent meetings with Gen. Martin Dempsey, chairman of the Joint Chiefs of Staff, and has continued, according to officials and experts familiar with more recent discussions with Chinese leaders.

Still, experts say that progress with the Chinese will still be slow and that it's naive to think the cyberattacks will stop.

"This will take continuous pressure for a number of years," said Lewis. "We will need both carrots and sticks, and the question is when do you use them."


View the original article here

Tuesday, October 29, 2013

Cyber experts say calling out China may be working

SINGAPORE (AP) -- After years of quiet and largely unsuccessful diplomacy, the U.S. has brought its persistent computer-hacking problems with China into the open, delivering a steady drumbeat of reports accusing Beijing's government and military of computer-based attacks against America.

Officials say the new strategy may be having some impact.

In recent private meetings with U.S. officials, Chinese leaders have moved past their once-intractable denials of cyber espionage and are acknowledging there is a problem. And while there have been no actual admissions of guilt, officials say the Chinese seem more open to trying to work with the U.S. to address the problems.

"By going public the administration has made a lot of progress," said James Lewis, a cybersecurity expert at the Center for Strategic and International Studies who has met with Chinese leaders on cyber issues.

But it will likely be a long and bumpy road, as any number of regional disputes and tensions could suddenly stir dissent and stall progress.

On Wednesday, China's Internet security chief told state media that Beijing has amassed large amounts of data about U.S.-based hacking attacks against China but refrains from blaming the White House or the Pentagon because it would be irresponsible.

The state-run English-language China Daily reported that Huang Chengqing, director of the government's Internet emergency response agency, said Beijing and Washington should cooperate rather than confront each other in the fight against cyberattacks. Huang also called for mutual trust.

President Barack Obama is expected to bring up the issue when he meets with China's new president, Xi Jinping, in Southern California later this week. The officials from the two nations have agreed to meet and discuss the issue in a new working group that Secretary of State John Kerry announced in April. Obama's Cabinet members and staff have been laying the groundwork for those discussions.

Standing on the stage at the Shangri-La Dialogue security conference last weekend, Defense Secretary Chuck Hagel became the latest U.S. official to openly accuse the Chinese government of cyber espionage — as members of Beijing's delegation sat in the audience in front of him. The U.S., he said, "has expressed our concerns about the growing threat of cyber intrusions, some of which appear to be tied to the Chinese government and military."

But speaking to reporters traveling with him to the meeting in this island nation in China's backyard, Hagel said it's important to use both public diplomacy and private engagements when dealing with other nations such as China on cyber problems.

"I've rarely seen that public engagement resolves a problem, but it's important," he said, adding that governments have the responsibility to keep their people informed about such issues.

The hacking issue also featured prominently over two days of meetings between the U.S. Chamber of Commerce and a leading Chinese trade think tank in Beijing.

"This is arguably the single most consequential issue that is serving to erode trust in the relationship," said Jeremie Waterman, the chamber's executive director for greater China. "Over time, it could undermine business support for U.S.-China relations."

According to Lewis and other defense officials familiar with the issue, China's willingness to engage in talks with the U.S. about the problem — even without admitting to some of the breaches — is a step in the right direction.

Cybersecurity experts say China-based instances of cyber intrusions into U.S. agencies and programs — including defense contractors and military weapons systems — have been going on since the late 1990s. And they went along largely unfettered for as much as a decade.

A recent Pentagon report compiled by the Defense Science Board laid out what it called a partial list of 37 programs that were breached in computer-based attacks, including the Terminal High Altitude Area Defense weapon, a land-based missile defense system that was recently deployed to Guam to help counter the North Korean threat. Other programs whose systems were breached include the F-35 Joint Strike Fighter, the F-22 Raptor fighter jet and the hybrid MV-22 Osprey, which can take off and land like a helicopter and fly like an airplane.

The report also listed 29 broader defense technologies that have been compromised, including drone video systems and high-tech avionics. The information was gathered more than two years ago, so some of the data are dated and a few of the breaches — such as the F-35 — had already become public.

According to U.S. officials and cyber experts, China hackers use gaps in software or scams that target users' email systems to infiltrate government and corporate networks. They are then often able to view or steal files or use those computers to move through the network accessing other data.

Chinese officials have long denied any role in cyberattacks and insisted that the law forbids hacking and that their military has no role in it. They have also asserted that they, too, are often the victim.

Cyber experts say some of the breaches that emanate from Internet locations in China may be the product of patriotic hackers who are not working at the behest of Beijing's government or military but in independent support of it.

The Chinese government's control of the Internet, however, suggests that those hackers are likely operating with at least the knowledge of authorities who may choose to look the other way.

U.S. officials have quietly grumbled about the problem for several years but steadfastly refused to speak publicly about it. As the intrusions grew in number and sophistication, affecting an increasing number of government agencies, private companies and citizens, alarmed authorities began to rethink that strategy.

They were pressed on by cybersecurity experts — including prominent former government officials — who argued that using cyberattacks to steal intellectual property, weapons and financial data and other corporate secrets brought great gain at very little cost to the hackers. The U.S. government, they said, had to make it clear to the Chinese that continued bad behavior would trigger consequences.

In November 2011, U.S. intelligence officials for the first time publicly accused China and Russia of systematically stealing American high-tech data for economic gain.

That was followed by specific warnings about Chinese cyberattacks in the last two annual Pentagon reports on China's military power. And in February, the Virginia-based cybersecurity firm Mandiant laid out a detailed report directly linking a secret Chinese military unit in Shanghai to years of cyberattacks against U.S. companies. After analyzing breaches that compromised more than 140 companies, Mandiant concluded that they can be linked to a unit that experts believe is part of the People's Liberation Army's cyber command.

The change in tone from the Chinese leaders came through during recent meetings with Gen. Martin Dempsey, chairman of the Joint Chiefs of Staff, and has continued, according to officials and experts familiar with more recent discussions with Chinese leaders.

Still, experts say that progress with the Chinese will still be slow and that it's naive to think the cyberattacks will stop.

"This will take continuous pressure for a number of years," said Lewis. "We will need both carrots and sticks, and the question is when do you use them."


View the original article here

Sunday, August 4, 2013

From hackers to security experts, the Balkan IT sector is booming

By Radu Marinas and Tsvetelia Tsolova

BUCHAREST/SOFIA (Reuters) - After hacking the Pentagon, NASA and Britain's Royal Navy for fun, TinKode got a real job as a computer security expert for a Romanian cyber safety consultancy.

TinKode was the name used by Romanian Razvan Cernaianu when he revealed security holes in government and corporate systems across the world, earning him a two-year suspended prison sentence.

"I was really passionate about carrying out what I call security audits," Cernaianu told Reuters "It's a hobby, so I did it for free. Moreover, I've always sent emails to those institutions to fix their problems."

Cernaianu, 21, is an example of a deep well of talent in Romania and Bulgaria. They may be the European Union's two poorest members, but their low labour costs, skilled workers and strategic location are underpinning a technology boom.

Multinational companies are using their expertise for customer support, software development and business process outsourcing. Oracle, SAP, IBM, Hewlett Packard and Siemens all have business centres or operations in the region.

Romania-founded GeCaD developed Microsoft's RAV antivirus software and Bucharest-based Softwin created BitDefender internet security technology more than a decade ago, reaching half a billion users worldwide last year.

The expertise is partly accidental - in the 1980s, Romania's communist dictator Nicolae Ceausescu backed computer research and technical education to promote pride in the nation. Piracy flourished after the 1989 revolution as people who could not afford proprietary content bought cheap copies instead.

EXCEPTIONAL GROWTH

On the other side of the Danube, Bulgaria's communists focused on hardware, at one point producing and supplying 40 percent of all computers used in the Soviet bloc.

The tech sector accounts for up to 10 percent of the two economies, according to business associations - a rare bright spot in the recession-hit Balkan region.

Growth of the Romanian and Bulgarian IT sectors far outpaced the rest of ex-communist Europe, jumping by 45 percent and 80 percent respectively since their 2007 EU entry. Meanwhile, the tech sectors in Poland, Hungary and the Czech Republic each grew by about 20 percent.

Romania's tech sector achieved year-on-year growth of 40 percent in the final quarter of 2012, which helped the country to avoid slipping back into recession.

Cernaianu, one of the world's most-wanted hackers until his arrest last year after a joint investigation by Romanian police, the FBI and NASA, now has a well-paid job and is co-owner of computer network security company CyberSmartDefence.

But the dirty side of the expertise still lingers.

Working from a tidy desk in a downtown Bucharest office, Cernaianu is from the same generation as the youngsters responsible for the Romanian town of Ramnicu Valcea becoming known as a global hacking hub.

Romanian hackers stole about $1 billion from U.S. accounts in 2012, according to the U.S. embassy in Bucharest. A report by Verizon this week said that Romania is the world's second-biggest hacking centre behind China.

The FBI has even set up an office in Romania and helped to train specialist police agents.

Cernaianu says he never attacked a computer to steal money.

"We won't hire thieves," said CyberSmartDefence CEO Madalin Dumitru. "We're not afraid of such people (as Cernaianu); we use their intelligence and expertise."

BRAIN DRAIN

The investment in business outsourcing has created an estimated 15,000 jobs in Bulgaria, where an otherwise depressed economy has sparked nationwide protests that toppled the government in February.

"Why would you choose Bulgaria? Because it offers complex outsourcing and high-end software solutions," said Plamen Tilev, managing director of SAP Labs Bulgaria, which develops core software for the Germany company. "For low-end solutions, like code writing and checking, you'd go to east Asian countries."

The biggest fear is that Romania and Bulgaria become victims of their own success and suffer a brain drain. Tens of thousands of Romanians and Bulgarians have already left to work as IT specialists in the United States.

The populations of the two countries have plunged in the past decade and companies are pushing the governments to improve education, train more engineers and make it easier to bring in workers from neighbours such as Moldova, Serbia, Macedonia and Ukraine.

"There has been zero unemployment in the sector in the past 10 years," said Elena Marinova, who runs software business Musala Soft, which is now struggling to find qualified staff despite salaries about three times the national average.

Bulgarian universities produce about 2,000 IT specialists a year, but the industry says it creates 6,000 jobs a year in the country.

"The software industry is struggling to breathe because of the lack of people," said Petar Statev, head of the Bulgarian business association ICT Cluster.

(Editing by Sam Cage and David Goodman)


View the original article here