Category Archives: News

Bank hackers find haven in Putin’s Russia

The Hill reports: The diplomatic standoff between the United States and Russian President Vladimir Putin is hobbling efforts to prosecute cyber crime against American banks.

Russian hackers played a major role in the newly exposed worldwide cyber heist, where thieves learned how to imitate bank employees to withdraw more than $1 billion from 100 banks.

While analysts suspect the heist originated in Ukraine and Eastern Europe, that information is of little use to American law enforcement officials who are getting no help from Moscow when it comes to catching cyber thieves.

“Trying to get cooperation from law enforcement in that area is, in many cases, actively hampered by the Russian government,” said Stu Sjouwerman, CEO of cybersecurity training firm KnowBe4, which most often works with banks.

“Given the current relationship between the United States and Russia, [cooperation] does not seem likely,” added Peter Toren, a cyber crime attorney who was part of the Department of Justice’s original batch of computer crimes prosecutors.

Last August, Russian digital thieves were blamed for the cyber attack on JPMorgan that exposed sensitive data on over 83 million households. Reportedly, the same attack infiltrated up to nine other major banks.

“Harassment of U.S. financial firms is just part of the bigger picture and it is the price of business to some degree,” Sjouwerman said.

Experts believe much of the hacking occurs either at the behest of Putin’s government, or with its tacit approval. Some speculated the JPMorgan hit was retaliation for the new U.S. sanctions that were slapped on Russia as the country amassed troops on the Ukraine border. [Continue reading…]

Wade Williamson writes: For several years now, cybercrime in the financial sector was synonymous with banking botnets such as Zeus and Carberp. By and large, these malware families and their many descendants worked by infecting banking customer’s computers and either stealing passwords or manipulating online banking sessions to steal funds.

A recent report from Kaspersky Lab shows that criminals have significantly raised their game with a new strategy focused on infiltrating and stealing directly from more than 100 different banks. Kaspersky named the operation the Carbanak APT and early estimates put losses in the range of $1 billion USD.

As you might expect, robbing a bank can be more lucrative than stealing from its customers. Even highly successful Zeus operations would typically net in the range of $100 million USD or less. Carberp, the banking botnet progenitor of Carbanak, was estimated to have earned a total of $250 million over years of use in the wild. This makes the $1 billion dollar Carbanak heist one of the most successful financial cybercrimes in history. [Continue reading…]

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Russian researchers expose breakthrough U.S. spying program

Reuters reports: The U.S. National Security Agency has figured out how to hide spying software deep within hard drives made by Western Digital, Seagate, Toshiba and other top manufacturers, giving the agency the means to eavesdrop on the majority of the world’s computers, according to cyber researchers and former operatives.

That long-sought and closely guarded ability was part of a cluster of spying programs discovered by Kaspersky Lab, the Moscow-based security software maker that has exposed a series of Western cyberespionage operations.

Kaspersky said it found personal computers in 30 countries infected with one or more of the spying programs, with the most infections seen in Iran, followed by Russia, Pakistan, Afghanistan, China, Mali, Syria, Yemen and Algeria. The targets included government and military institutions, telecommunication companies, banks, energy companies, nuclear researchers, media, and Islamic activists, Kaspersky said. (reut.rs/1L5knm0)

The firm declined to publicly name the country behind the spying campaign, but said it was closely linked to Stuxnet, the NSA-led cyberweapon that was used to attack Iran’s uranium enrichment facility. The NSA is the agency responsible for gathering electronic intelligence on behalf of the United States.

A former NSA employee told Reuters that Kaspersky’s analysis was correct, and that people still in the intelligence agency valued these spying programs as highly as Stuxnet. Another former intelligence operative confirmed that the NSA had developed the prized technique of concealing spyware in hard drives, but said he did not know which spy efforts relied on it. [Continue reading…]

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U.S. won’t back Egypt’s attacks on ISIS

Nancy A. Youssef reports: The Obama administration was given multiple chances Wednesday to endorse a longtime ally’s airstrikes on America’s biggest enemy at the moment, the so-called Islamic State. Over and over again, Obama’s aides declined to back Egypt’s military operation against ISIS. It’s another sign of the growing strain between the United States and Egypt, once one of its closest friends in the Middle East.

This shouldn’t be a complete surprise; Cairo, after all, didn’t tell Washington about its strikes on the ISIS hotbed of Derna, Libya. Still, Wednesday’s disconnect was jarring. White House Press Secretary Josh Earnest passed on a reporter’s question about an endorsement of Egypt’s growing campaign against ISIS. So did State Department spokeswoman Jen Psaki.

“We are neither condemning nor condoning” the Egyptian strikes, is all one U.S. official would tell The Daily Beast.

In other words, these once-close nations are now fighting separate campaigns against their mutual foe. And that could prove to be very good news for ISIS. The rift between U.S. and the region’s most populous country portends of another division that ISIS could exploit, this time for its expansion into northern Africa and the broader Middle East. [Continue reading…]

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Brawl in Turkey parliament puts focus on Erdogan power plays

The Associated Press reports: Chairs flew and lawmakers traded punches. A brawl in Parliament over a new security bill has forced the spotlight on mounting suspicions that President Recep Tayyip Erdogan’s real goal is to hand himself more tools to crush dissent.

Five lawmakers were injured early Wednesday in the fight that broke out as opposition leaders tried to delay a debate on the legislation.

The government says the measures to give police heightened powers to break up demonstrations are aimed at preventing violence such as the deadly clashes that broke out last year between Kurds, supporters of an Islamist group and police. Critics say that the new measures are part of a steady march toward blocking mass demonstrations that threaten Erdogan’s iron grip over Turkish politics.

The bill would expand police rights to use firearms, allow them to search people or vehicles without a court order and detain people for up to 48 hours without prosecutor authorization. Police would also be permitted to use firearms against demonstrators who hurl Molotov cocktails. Demonstrators who cover their faces with masks or scarves during violent demonstrations could face four years in prison.

Crucially, the measures would give governors — not just prosecutors and judges — the right to order arrests. [Continue reading…]

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ISIS militants ‘burn to death 45 in Iraq’

BBC News: Jihadist militants from Islamic State (IS) have burned to death 45 people in the western Iraqi town of al-Baghdadi, the local police chief says.

Exactly who these people were and why they were killed is not clear, but Col Qasim al-Obeidi said he believed some were members of the security forces.

IS fighters captured much of the town, near Ain al-Asad air base, last week.

Col Obeidi said a compound that houses the families of security personnel and local officials was now under attack.

He pleaded for help from the government and the international community.

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Fear of Israeli leaks fuels distrust over U.S. talks with Iran

The New York Times reports: With the Obama administration racing to negotiate the outlines of a nuclear deal with Iran by the end of March, aides to Prime Minister Benjamin Netanyahu of Israel have charged in recent days that they are being deliberately left in the dark about the details of the talks. The Americans have said that is untrue, but even one of Washington’s closest negotiating partners reports being warned about being too open with the Israelis, “because whatever we say may be used in a selective way.”

The tensions between the United States and Israel over negotiating with Tehran have a long and twisted history, and they plunged to a new low when Mr. Netanyahu engineered an invitation to address a joint meeting of Congress, in less than two weeks, to warn against a “bad deal.”

Now, with Mr. Netanyahu maneuvering to survive a March 17 election, and Mr. Obama pressing for a breakthrough agreement that could end three decades of enmity with Iran and reduce the chances of a military confrontation, it seems that Washington and Jerusalem are engaging in the diplomatic equivalent of posting notes to each other on the refrigerator door.

The latest dispute has been building since the Israeli news media began running stories about Mr. Netanyahu’s being frozen out of the briefings about the talks, sourced to unnamed Israeli officials. Some of the reports have been accompanied by partial details about how many centrifuges, the machines that enrich uranium, would be left spinning in Iran’s facilities under an American proposal — oftentimes omitting key facts about how quickly the centrifuges could produce bomb-grade fuel. [Continue reading…]

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Israeli sources dispute claims of CIA’s lead role in Mughniyeh assassination

Dan Raviv writes: In true-life espionage stories that inadvertently go public, there are often three stages: the initial revelation, the corrective second version from other sources, and – decades later – what really happened.

Newsweek and The Washington Post scored scoops last month, revealing that the CIA worked jointly with Israel’s Mossad to assassinate a Lebanese terrorist in February 2008 in Damascus: the military chief of the Iranian-controlled Hezbollah movement, Imad Mughniyeh.

The bomb explosion that killed Mughniyeh – who was held responsible for killing hundreds of Americans, notably in Beirut explosions that toppled the U.S. Embassy and a Marines barracks – was triggered from 135 miles away when a button was pushed in Mossad headquarters. A CIA man was inside the HQ near Tel Aviv.

This was a unique arrangement in which CIA and Mossad officers coordinated their undercover efforts in Syria’s capital, located the target, identified his habits, and parked a vehicle containing a bomb just outside an apartment he used.

According to the published accounts, the bomb had been designed, shaped, and repeatedly tested at an American base to be sure that only Mughniyeh and no other people would be killed.

Because of the revelation that the CIA was part of the mission, as well as details of how it was accomplished, Israelis close to their country’s security services wondered why American sources chose to leak so much about it.

One result was that some of those Israelis – apparently miffed that the Americans were taking too much credit – went to the trouble of speaking with Western officials and diplomats to offer corrections.

Basically, using a phrase inspired by the blue-and-white flag of Israel, they suggested that the assassination of Mughniyeh was “almost all blue-and-white, and just a little bit red-white-and-blue.”

Based on what they told their Western contacts this month, the Israelis claim that their Mossad and Aman (military intelligence) agencies managed to pick up the trail of the elusive terrorist – despite plastic surgery that changed his appearance. His biggest mistake was moving around Damascus without bodyguards, and specifically an unguarded area in front of his apartment building in the Syrian capital.

Contrary to the recent reports, the Israelis claim to have designed and tested the bomb, while respecting the CIA’s insistence that it not be too large so as not to kill any innocents. [Continue reading…]

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Netanyahus criticized by Israeli state comptroller for ‘excessive spending’ — will face further investigation

The Washington Post: After nine years with Benjamin Netanyahu as their prime minister, Israelis know a lot about him and his first lady, Sara. Now they also know how much the couple spends on hair and makeup, maid service and swimming pool water.

On Tuesday, at precisely 4 p.m., the Israeli state comptroller released an eagerly awaited report condemning the Netanyahus for “excessive spending” at both the prime minister’s official residence at 2 Balfour St. in Jerusalem and the couple’s private beachfront villa in Caesarea.

Want to know how much the Netanyahus billed the Israeli taxpayer for takeout food in 2011? It was 92,781 shekels, or about $24,000, “even though there was a chef in the residence,” the comptroller noted disapprovingly.

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Copenhagen shooting suspect Omar el-Hussein — a past full of contradictions

The Guardian reports: Danish intelligence services have suggested the fatal Copenhagen shooting of a film-maker at a freedom-of-speech debate and a Jewish security guard at a synagogue may have been a copycat of last month’s Paris attacks on the satirical magazine Charlie Hebdo and a kosher supermarket. If that was the case, Hussein would have had to have followed those Paris attacks from a Danish prison, where he was serving a two-year sentence for stabbing a 19-year-old man on Copenhagen’s inner-city train system. He had been released from prison only two weeks before the attacks in Copenhagen at the weekend.

It is not yet clear whether he became radicalised in prison like the men behind the Paris attacks. But Michael Gjorup, head of the country’s prison and probation service, told Danish media that authorities had noticed changes in his behaviour in prison and had alerted the intelligence services.

Details on Hussein’s upbringing in Copenhagen remain sketchy. A court psychiatric assessment of him carried out during the stabbing case, and obtained by Danish TV2, showed him telling psychologists he had a happy childhood and good relations with his parents and a younger brother. However, he did not graduate from school, was unable to get into a university and later was homeless.

Although it was not clear where he had lived after leaving prison, he was well-known on the low-rise, red-brick Mjølnerparken estate in north-west Copenhagen, where police had raided an apartment at the weekend searching for weapons. Behind the peeling paint of the front door, the stairwell was graffitied with black pen and strewn with litter. Past the children’s play areas of the estate, Emilie Hansson, 26, who is half Swedish, said she knew Hussein and had seen him at the estate last week. She said: “For me he’s not a terrorist. He’s someone who felt finished with life and decided to go out with a big bang.” An 18-year-old at school nearby said he thought those who knew Hussein had been shocked he could have carried out the attacks. [Continue reading…]

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Ukraine ceasefire in tatters as fighting escalates in east

The Guardian: Fighting has escalated in eastern Ukraine as government and pro-Russia forces struggle for control of the besieged town of Debaltseve, leaving the new ceasefire in tatters on its second day.

The Ukrainian military said on Monday that rebels had fired on its troops 112 times in the past 24 hours. At least five Ukrainian fighters have been killed and 25 wounded since the ceasefire began on Sunday, a military spokesman, Vladislav Seleznyov, told the Guardian.

Most of the fighting was concentrated around Debaltseve, where thousands of soldiers have been cut off from the main Ukrainian lines near Artemivsk by rebel artillery. Pro-Russia forces have been trying for weeks to take the town, which holds a rail junction connecting the main rebel centres of Donetsk and Luhansk.

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Egyptian and Libyan warplanes bomb ISIS targets

Reuters: Egypt’s air force bombed Islamic State targets inside Libya on Monday, a day after the group released a video showed the beheading of 21 Egyptians there, marking an escalation in Cairo’s battle against militants.

It was the first time Egypt confirmed launching air strikes against the group in neighbouring Libya, showing President Abdel Fattah al-Sisi is ready to expand his fight against Islamist militancy beyond Egypt’s borders.

Egypt said the dawn strike, in which Libya’s air force also participated, hit Islamic State camps, training sites and weapons storage areas in Libya, where civil conflict has plunged the country into near anarchy and created havens for militia.

A Libyan air force commander said between 40 to 50 militants were killed in the attack. “There are casualties among individuals, ammunition and the (Islamic State) communication centres,” Saqer al-Joroushi told Egyptian state television.

“More air strikes will be carried out today and tomorrow in coordination with Egypt,” he said.

Reuters also reports Egypt has once again called for the formation of an international coalition to fight ISIS in Libya. Meanwhile, Libya’s Tripoli-based parliament strongly condemned Monday’s airstrikes.

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Anti-ISIS forces advance towards Raqqa stronghold

Reuters: Kurdish forces backed by Syrian insurgent groups took control of a hill inside the provincial stronghold of the militant Islamic State group on Sunday after deadly clashes, the Syrian Observatory for Human Rights said.

The Kurdish forces, supported by U.S.-led air strikes, drove Islamic State fighters from the town of Kobani last month near the Turkish border and have pushed them back from surrounding villages in northern Syria. Islamic State still holds tracts of land across northern and eastern Syria and into Iraq.

Now the Kurds and other local fighters who oppose Islamic State have taken a hill south of Kobani which lies within Raqqa province – the stronghold of the al Qaeda offshoot in Syria, said the Observatory, which tracks the conflict through sources on the ground.

“It is the first time they get into Raqqa,” the Observatory’s founder Rami Abdulrahman said. He added that at least 35 Islamic State fighters and four members of the Kurdish forces had been killed on Sunday in battles near Kobani, which were the heaviest since the Kurds took back the town.

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Copenhagen attacks: Danish police charge two men

The Guardian: Two men detained on Sunday have been charged with aiding the suspect in the Copenhagen terror attacks.

A 22-year-old Danish-born gunman killed a film director and a young Jewish man at the weekend in Denmark’s most lethal terror attack in decades.

The defence lawyer for one of the detained men said they were accused of helping the gunman evade authorities and get rid of a weapon during the manhunt that ended early on Sunday when the attacker was killed in a shootout with police.

The suspects, arraigned at a closed hearing on Monday, were accused of “having helped the perpetrator in connection with the shooting attacks”, Copenhagen police said.

Michael Juul Eriksen, defence attorney for one of the men, told reporters they deny the allegations. A judge at the hearing will rule on whether to keep the men in custody.

The suspected gunman has been named in local media as Omar Abdel Hamid el-Hussein. He was reportedly released from prison a few weeks ago after serving a sentence for knife crime. Police did not confirm the name.

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Italy ‘ready to lead’ coalition against Libya jihadists

France 24: Italy on Sunday said it was willing to lead an international coalition against jihadists in Libya, as it began repatriating its citizens from the troubled north African country amid security concerns.

Italy on Sunday closed its embassy in Libya, one of the last European missions in the troubled country. About 100 Italians were evacuated on a vessel escorted by the navy, the foreign ministry said.

Rome on Friday warned its nationals against travelling to Libya and urged those already there to leave in the face of mounting insecurity as jihadists gain ground.

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Barely a month after Charlie Hebdo, twin terror attacks hit Denmark

The New York Times reports: The Copenhagen police said on Sunday that they had shot and killed a man believed to be behind two attacks that killed two people, one at a cafe and one outside a synagogue.

The first attack took place on Saturday, when a gunman sprayed bullets into the cafe where a Swedish cartoonist [Lars Vilks] who had caricatured the Prophet Muhammad was speaking. Hours later, early Sunday, a man was shot outside the city’s main synagogue, according to the police.

One man was killed in the cafe attack and three police officers were wounded; a man was shot in the head in the second attack and later died, and two officers were wounded, Danish television reported. In each case the gunman escaped, raising fears throughout the city — the capital of Denmark — and setting off a police manhunt.

Prime Minister Helle Thorning-Schmidt called the shooting at the Krudttoenden cafe a terrorist attack and said that the nation was on high alert. “We feel certain now that it was a politically motivated attack, and thereby it was a terrorist attack,” Ms. Thorning-Schmidt said.

Later Sunday, Jørgen Skov, a police inspector, said at a news conference in Copenhagen that the police had shot and killed the suspect after he opened fire on officers near the Norrebro station. Mr. Skov added that there was no indication other suspects were involved, but that the investigation was continuing. [Continue reading…]

The Local reports: The suspected gunman in two fatal shootings in Copenhagen may have been inspired by the Islamist attacks in Paris a month ago, Danish police said Sunday.

The man, who was killed in a shootout with police earlier in the day, “may have been inspired by the events that took place in Paris a few weeks ago,” Jens Madsen from the Danish Security and Intelligence Service (PET) told reporters.

The man may “generally have been inspired by militant Islamist propaganda issued by IS [also known as Isis or Islamic State, ed.] and other terror organisations,” Madsen said.

Christopher Dickey adds: In Scandinavia, the history of cartoons taunting Muslims by caricaturing Muhammad dates back almost a decade, to September 2005 when the Danish newspaper Jyllands-Posten published 12 cartoons by different satirists. Local Muslims were offended, but it was governments in several Muslim countries encouraging and orchestrating protests that turned the controversy into a firestorm. More than four months after the publication, in February 2006, protesters tried to burn down the Danish and Norwegian embassies in Damascus. The same embassies were attacked in Beirut. Soon, more than 50 people had been killed in related violence in the Middle East, Africa, and Asia.

In Denmark itself, Islamic organizations took Jyllands-Posten to court, claiming that the Muhammad cartoons were an offense against all Muslim people, but they eventually lost the case.

Against this background, Lars Vilks, a run-of-the-mill artist in Sweden, published a rough sketch in an obscure local newspaper in Orebro that picked up on a curious phenomenon of the time — mysterious sculptures of dogs appearing in the grassy centers of traffic circles. He drew the turbaned head of Muhammad on one such “roundabout dog.” Again, governments in Muslim countries made official protests while anger on the streets of those countries grew.

In the years since, the cartoonists and editors responsible for the Jyllands-Posten publications have lived under constant threat, and so has Vilks.

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Might the formation of National Guard lead to the breakup of Iraq?

Al Jazeera reports: Disagreements among political factions are likely to delay – or cancel – plans to form a National Guard, Iraqi lawmakers said. The proposed fighting force was originally suggested by the United States to combat fighters with the Islamic State of Iraq and the Levant (ISIL) in northern and western Iraq, but there have reportedly been disputes over the force’s makeup and its commanders.
[…]
According to analysts, the postponement of the National Guard’s formation could end the thaw between Prime Minister Haider al-Abbadi and Iraq’s Sunnis. It could also undermine national reconciliation efforts between Iraq’s Sunnis, Shia Muslims and Kurds.

“The National Alliance [the Shia bloc in parliament] have [bad] intentions despite the fact that it [National Guard] will be a part of the National Defence System,” Hamid al-Mutlaq, a senior Sunni lawmaker and the deputy of parliament’s security and defence committee, told Al Jazeera.

“There is procrastination and delay when it comes to [discussing] the National Guard law … and this will negatively impact the war against Daesh [ISIL] and the political process,” Mutlaq said. [Continue reading…]

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Mohamed Fahmy still fighting for his freedom

The Toronto Star reports: Mohamed Fahmy may be out of prison but he is still fighting for his freedom.

“We’re still living in this nightmare,” Fahmy told the Star in a wide-ranging interview from his family home in Cairo. “Of course I feel a little bit better that I’m out and I’m able to enjoy this freedom, but it’s still not gone. It’s still there.”

The 40-year-old Canadian journalist was let out on bail early Friday morning after spending more than a year behind bars along with his Al Jazeera English colleagues, Peter Greste and Baher Mohamed. In a case that reverberated around the world, the three had been imprisoned by Egyptian authorities on terror-related charges and sentenced to between seven and 10 years.

Fahmy’s release was ordered on Thursday, the first day of a retrial that he and Mohamed are facing after Egypt’s highest appeals court overturned their conviction on Jan. 1 and issued a damning appraisal of their original trial. Greste, who is still named in the case, was deported to Australia two weeks ago. The next session in court is scheduled for Feb. 23.

“I don’t trust that we’re going to be acquitted, and to think that is naive,” he said. “Anyone who’s covered Egyptian political events and the judiciary here knows that unless you are really vindicated, it doesn’t end. We can celebrate for a couple days, but I’m still very cautious and very aware that more needs to be done on every level.”

Fahmy’s family had to secure the $41,000 bail before he was able to leave prison.

“I was just walking around the house and looking at the bed and enjoying the fact that I don’t have a cop watching me 24 hours a day,” he said Saturday.

The case has made front-page news in Egypt, and Fahmy marvelled at the fact he was now recognized in the street, describing how several strangers approached him to shake his hand and welcome his release.

As a condition of his bail, Fahmy must report to a police station every day and is banned from travelling. None of his possessions, including ID cards and passport, that were seized during his arrest have been returned. [Continue reading…]

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Bank hackers steal millions via malware

The New York Times reports: In late 2013, an A.T.M. in Kiev started dispensing cash at seemingly random times of day. No one had put in a card or touched a button. Cameras showed that the piles of money had been swept up by customers who appeared lucky to be there at the right moment.

But when a Russian cybersecurity firm, Kaspersky Lab, was called to Ukraine to investigate, it discovered that the errant machine was the least of the bank’s problems.

The bank’s internal computers, used by employees who process daily transfers and conduct bookkeeping, had been penetrated by malware that allowed cybercriminals to record their every move. The malicious software lurked for months, sending back video feeds and images that told a criminal group — including Russians, Chinese and Europeans — how the bank conducted its daily routines, according to the investigators.

Then the group impersonated bank officers, not only turning on various cash machines, but also transferring millions of dollars from banks in Russia, Japan, Switzerland, the United States and the Netherlands into dummy accounts set up in other countries. [Continue reading…]

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