{"id":96995,"date":"2016-10-20T10:37:53","date_gmt":"2016-10-20T14:37:53","guid":{"rendered":"http:\/\/countingpips.com\/?p=96995"},"modified":"2016-10-20T06:38:20","modified_gmt":"2016-10-20T10:38:20","slug":"cyberwarfare-assessing-21st-century-security-threats","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2016\/10\/cyberwarfare-assessing-21st-century-security-threats\/","title":{"rendered":"Cyberwarfare: Assessing 21st-Century Security Threats"},"content":{"rendered":"
October 20, 2016<\/div>
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By WallStreetDaily.com<\/u><\/a> \"Cyberwarfare:<\/p>\n

During the 19th century, Great Britain and Russia did battle over control of Asia\u2019s expanse. A new 21st century contest is taking shape in cyberspace.<\/strong><\/i><\/p>\n

\n

It\u2019s one of the hottest questions circulating among cyberpunks, political junkies, and Facebook opinion-makers.<\/p>\n

On Wednesday, October 12, 2016, Charlie Rose asked it of John Carlin, the now-former Assistant Attorney General and chief of the U.S. Department of Justice National Security Division.<\/p>\n

\u201cHow did we determine that the Russians were behind the hacking of the DNC and perhaps John Podesta as well?\u201d<\/p>\n

Carlin\u2019s long and not-quite-direct answer starts during the 2008 presidential election, when he briefed representatives from the Obama and the McCain campaigns on the fact that both had been \u201ccompromised\u201d by Chinese hackers.<\/p>

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Neither campaign was aware of the breach. But Carlin and the FBI knew, in part due to the use of \u201csensitive sources and methods to collect the information.\u201d Those sources and methods had to remain secret.<\/p>\n

\u201cAt that time,\u201d Carlin notes, \u201cwe had known for a while that China, in particular, was committing economic espionage.\u201d<\/p>\n

The feds weren\u2019t saying so publicly. Cyberattacks on the 2008 campaigns were treated as an intelligence problem, \u201cas a secret issue, as it had for years when it came to spy versus spy.\u201d<\/p>\n

Carlin, who was then Special Counsel to the Director of the FBI, was able to observe up close the intelligence-gathering capabilities, in real-time, of his colleagues.<\/p>\n

\u201cHow did we determine that the Russians were behind the hacking of the DNC and perhaps John Podesta as well?\u201d<\/em><\/strong><\/p>\n

He describes \u201ca system where you could watch on a huge jumbotron screen, Chinese actors, for instance, hop into a university, hop from the university into a company, and then you\u2019d watch the data exfiltrated out of the United States.\u201d<\/p>\n

That\u2019s literally billions of dollars worth of intellectual property and trade secrets. It wasn\u2019t enough, however, to just watch it happen.<\/p>\n

Interdiction and disruption became the order of the day as the Justice Department learned to address cyberthreats.<\/p>\n

During his nearly 20 years with the Justice Department, Carlin, also former Chief of Staff to FBI Director Robert Mueller, prosecuted cybercriminals, including indictments of five Chinese military hackers for economic espionage in 2014 and terrorists such as the Boston Marathon bombers.<\/p>\n

His last project involved crafting a \u201cproportional response\u201d to Russia after the U.S. government officially accused it of hacking the Democratic National Committee, leaking files and attempting to influence the presidential election.<\/p>\n

Carlin stepped down on October 15 as the head of the Justice Department\u2019s National Security Division, which was created as part of the reforms pushed through in the aftermath of the September 11, 2001, terrorist attacks \u201cbecause of a failure to share information across the law enforcement and intelligence divide.\u201d<\/p>\n

In the new model, prosecutors work literally side by side with intelligence officers. Success is not defined by a post-attack prosecution but \u201cby preventing the attack from occurring.\u201d<\/p>\n

\u201cYou\u2019ve got to know what they know, and you\u2019ve got to be creative as lawyers and look across the full set of legal tools.\u201d<\/p>\n

That kit includes federal prosecution. But it also includes diplomacy, the use of military force, Treasury Department sanctions such as asset freezes, and Commerce Department restrictions on trade with terror-sponsoring states.<\/p>\n

That transformation, completed in 2013, meant that U.S. attorneys were retrained and teamed with FBI agents. Their efforts now concentrate on \u201cfour major threat actors\u201d: Russia, China, North Korea, and Iran.<\/p>\n

By 2014, the Justice Department was indicting five members of China\u2019s People\u2019s Liberation Army for economic espionage.<\/p>\n

As Carlin tells it, uniformed members of the Chinese military were stealing technology from non-Chinese companies just ahead of those non-Chinese companies completing joint ventures or cooperation agreements with Chinese companies.<\/p>\n

In the new model, prosecutors work literally side by side with intelligence officers. Success is not defined by a post-attack prosecution but \u201cby preventing the attack from occurring.\u201d<\/em><\/strong><\/p>\n

One theft involved sophisticated pipe technology.<\/p>\n

Another focused on pricing information for a solar panel company that enabled a Chinese company to price-dump its own product. When a lawsuit arose out of these facts, the PLA stole the plaintiffs\u2019 litigation strategy.<\/p>\n

The Chinese have backed away from their aggressive cybertactics because we\u2019re now capable of identifying actors and establishing costs for their actions. The United States and China have agreed a five-point document that includes the concession that it\u2019s wrong to use military assets to acquire economic intelligence from private companies.<\/p>\n

The Group of 20 has also recognized these five principles against cybertheft of intellectual property.<\/p>\n

Carlin, quoting President Obama, noted that \u201ccyberspace is the Wild West.<\/p>\n

\u201cIf we\u2019re going to bring law to this new frontier, it\u2019s going to take agreements like\u201d the U.S.-China arrangement.<\/p>\n

The National Security Division\u2019s other recent activities include the investigation of North Korea\u2019s hack of Sony Corp. over its subsidiary Sony Pictures Entertainment\u2019s release of the 2014 political satire\/stoner comedy The Interview<\/em>, which had great fun at the expense of Kim Jong Un.<\/p>\n

Carlin and his colleagues had war-gamed cyberthreats posed by antagonistic nuclear-armed nation-states but never considered a real scenario triggered by a Seth Rogen\/James Franco movie.<\/p>\n

Carlin got to brief President Obama about the plot of the movie.<\/p>\n

As for motivations behind the respective cyberattacks, the Chinese were in it for the old-fashioned profit: They could steal intellectual property and trade secrets rather than spend money on research and development.<\/p>\n

The North Koreans wanted to avenge Dear Leader. Their society doesn\u2019t allow such mockery. Their attack on Sony represented, in Carlin\u2019s words, \u201can attack on our fundamental values,\u201d including free speech.<\/p>\n

So what\u2019s up with the Russians? \u201cThey want to undermine confidence in our public election,\u201d which would be consistent with their efforts \u201cin Germany and other parts of the world.\u201d<\/p>\n

\u201cSo when we say the Russians are behind this, we are \u2014 the U.S. government is \u2014 pretty clear and pretty sure that that\u2019s, in fact, true?\u201d<\/em><\/strong><\/p>\n

\u201cThis is a country that, under its current leadership, is anti-democratic. It\u2019s fundamentally opposed to the idea of democracy.\u201d<\/p>\n

Asked Charlie: \u201cSo when we say the Russians are behind this, we are \u2014 the U.S. government is \u2014 pretty clear and pretty sure that that\u2019s, in fact, true?\u201d<\/p>\n

Carlin replied: \u201cThey wouldn\u2019t say it unless we\u2019re highly, highly confident that it\u2019s so.\u201d<\/p>\n

\u201cAnd when should we expect an indictment in Russia?\u201d<\/p>\n

According to Carlin:<\/p>\n

\n

So that\u2019s a part of this all-tools approach. It\u2019s important, one, to figure out who did it with high confidence, which you\u2019ve seen. Two, to make it public, and you\u2019ve seen us do that here and say, \u201cIt\u2019s the Russians,\u201d because if you\u2019re going to be able to deter you gotta make sure the world knows we can figure out who did it. And then, third, be public about the fact that there will be consequences. What those consequences are have varied depending on the threat that we\u2019ve faced when we\u2019ve been trying out this new approach. It\u2019ll be at a time and place of our choosing \u2014 not our enemy\u2019s \u2014 and there may be things you do see and things you don\u2019t see.<\/p>\n<\/blockquote>\n

Charlie followed up by asking about everyone\u2019s favorite anti-establishment \u201cjournalistic organization.\u201d \u201cWhat\u2019s the connection between Russian hackers and WikiLeaks?\u201d<\/p>\n

Carlin responded, \u201cSo I\u2019m not gonna address the specifics outside the statement that the Director of National Intelligence and Homeland Security put out.<\/p>\n

\u201cLook, there\u2019s going to be a lot of mischievous, bad actors, ranging from those who want to undermine confidence in an election to terrorist groups who attack private companies in order to steal names to create kill lists, which is an actual case.\u201d<\/p>\n

We\u2019ll have more \u2014 including social media and the threat of crowd-sourced terrorism, the \u201cdark web,\u201d and the risks involved with the Internet of Things and self-driving cars \u2014 in the second part of our breakdown of Carlin\u2019s interview with Charlie in tomorrow\u2019s issue of Wall Street Daily<\/em>.<\/p>\n

\n

Money Quote<\/h2>\n

\u201cHere we are, just as we were, snarling at each other, hating each other, but neither wishing for war.\u201d<\/p>\n

\u2013 Lord Palmerston, 1835<\/p>\n

Smart Investing,<\/p>\n

David Dittman
\nEditorial Director, Wall Street Daily<\/i><\/p>\n

The post Cyberwarfare: Assessing 21st-Century Security Threats<\/a> appeared first on Wall Street Daily<\/a>.<\/p>\n

 <\/p>\n

<\/div>\n","protected":false},"excerpt":{"rendered":"

By WallStreetDaily.com During the 19th century, Great Britain and Russia did battle over control of Asia\u2019s expanse. A new 21st century contest is taking shape in cyberspace. It\u2019s one of the hottest questions circulating among cyberpunks, political junkies, and Facebook opinion-makers. On Wednesday, October 12, 2016, Charlie Rose asked it of John Carlin, the now-former […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-96995","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/96995","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=96995"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/96995\/revisions"}],"predecessor-version":[{"id":97006,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/96995\/revisions\/97006"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=96995"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=96995"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=96995"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}