{"id":97072,"date":"2016-10-21T10:30:30","date_gmt":"2016-10-21T14:30:30","guid":{"rendered":"http:\/\/countingpips.com\/?p=97072"},"modified":"2016-10-21T06:31:01","modified_gmt":"2016-10-21T10:31:01","slug":"the-internet-an-invisible-battleground","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2016\/10\/the-internet-an-invisible-battleground\/","title":{"rendered":"The Internet: An Invisible Battleground"},"content":{"rendered":"
October 21, 2016<\/div>
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By WallStreetDaily.com<\/u><\/a> \"1016_SPEC_hacker\"<\/p>\n

Literally everything is a weapon in the Digital Age.<\/strong><\/i><\/p>\n

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Yesterday, we talked about what may be the earliest days of an all-out cyberwar with Russia and Vladimir Putin.<\/p>\n

Today, we\u2019re going to talk about some things that may be even more frightening.<\/p>\n

During a compelling sit-down with Establishment conversationalist Charlie Rose, former Assistant Attorney General and chief of the U.S. Department of Justice National Security Division John Carlin talked about threats emerging in this new era of constant interconnection.<\/p>\n

The internet is a wonderful thing. It could also lead to our doom.<\/p>

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There are nation-states \u2014 including Russia, China, North Korea, and Iran \u2014 that can and will penetrate government and corporate networks to do us harm.<\/p>\n

We\u2019ve already revamped policies and procedures to address these relatively symmetric threats, as Carlin explained with regard to Chinese attempts at economic espionage, the North Koreans\u2019 comical attack on Sony, and Russia\u2019s ongoing effort to muck up the current presidential election.<\/p>\n

Motivations here are easy to define and understand, whether it be China\u2019s profit hunger, North Korea\u2019s vengeance for slighting Dear Leader, or Russia\u2019s and Putin\u2019s antipathy toward democracy.<\/p>\n

More troubling \u2014 and perhaps more dangerous \u2014 are the asymmetric threats lying among terrorist groups operating via social media and in the \u201cdark web.\u201d<\/p>\n

These malefactors will hack private networks \u201cin order to steal names to create kill lists, which is an actual case,\u201d according to Carlin.<\/p>\n

The internet is a wonderful thing. It could also lead to our doom.<\/em><\/strong><\/p>\n

Carlin describes what appeared to be a \u201croutine criminal hack\u201d of a company\u2019s network \u2014 a run-of-the-mill theft of names and addresses in order to \u201cmake a buck\u201d via ransom.<\/p>\n

In the case Carlin cites, the hacker stole a relatively small number of names \u2014 an amount of information so insignificant that a company would ordinarily not report it.<\/p>\n

The hacker demanded a payment of $500 for the names \u2014 who happened to be U.S. government and military officials \u2014 via Bitcoin. Typically, companies would just pay the money or otherwise handle the problem on their own.<\/p>\n

But this company \u2014 \u201ca trusted U.S. retail company\u201d \u2014 did report this particular hack, which was actually not some low-level shakedown. Behind it was an extremist from Kosovo who had moved to Malaysia and hooked up with British-born Pakistani \u201cblack hat hacker\u201d Junaid Hussain.<\/p>\n

Hussain was operating out of Syria \u201cat the heart of\u201d the Islamic State of the Levant terrorist organization, better known as ISIL or ISIS. Hussain \u201cculled through that list of names to make a kill list.\u201d<\/p>\n

Hussain used Twitter to \u201cpublish\u201d that kill list in the United States \u2014 basically soliciting adherents\/assassins here at home to finish the work.<\/p>\n

Despite the fact that its targets were far-flung and moving \u201cat the speed of cyber,\u201d the U.S. government was able to disrupt the plot.<\/p>\n

Ardit Ferizi, the Kosovo hacker, was arrested in Malaysia and in June 2016 pleaded guilty in U.S. federal court and faces 25 years in prison.<\/p>\n

Junaid Hussain was, says a statement from the U.S. Central Command, \u201ckilled in a military strike.\u201d<\/p>\n

We\u2019re talking now about the \u201cblended threat,\u201d the overlap of what appears to be criminal activity with a national security situation involving a nation-state or a terrorist operation run by militant groups.<\/p>\n

When it comes to cyberwarfare, it\u2019s not always so easy to identify threats. At the same time, Carlin notes that we\u2019re \u201cmuch better at investigation and attribution than people thought.\u201d<\/p>\n

That conclusion is supported by the China economic espionage case, where the government was able to pinpoint a 9-to-5 working schedule (including a lunch break) for the hacker(s). That it was a \u201cday job\u201d provides \u201ca hint as to who\u2019s involved.\u201d<\/p>\n

We\u2019re talking now about the \u201cblended threat,\u201d the overlap of what appears to be criminal activity with a national security situation involving a nation-state or a terrorist operation run by militant groups.<\/em><\/strong><\/p>\n

The government used behavioral analysts from the FBI \u2014 \u201cprofilers\u201d you see on so many procedurals on TV \u2014 to help solve the North Korea\/Sony case. The FBI now has expect cyberprofilers.<\/p>\n

It\u2019s a sophisticated approach incorporating behavior analysis with technical understanding of malware that helps the feds reach \u201chigh-confidence conclusions\u201d about who\u2019s responsible for hacking activity.<\/p>\n

We\u2019re still extremely vulnerable, based on the pace of advancement of digital culture over the past several decades and the potential for where we\u2019re headed.<\/p>\n

\u201cIt\u2019s not only electronic; it\u2019s digital, and we\u2019ve connected almost all of it to the internet,\u201d as Carlin notes. \u201cAnd the internet was not designed with security in mind.\u201d<\/p>\n

Spies, crooks, and terrorists are well aware of this profound vulnerability. \u201cThe whole world\u2019s playing catch-up now,\u201d says Carlin.<\/p>\n

In this world of \u201cblended threats,\u201d options for retaliation aren\u2019t limited to cyberspace. The U.S. government response kit includes not just computers but economic; diplomatic; and, yes, military tools as well.<\/p>\n

And as did the perpetrators of the September 11, 2001, terrorist attacks, those who would do us harm via the internet have made their aspirations clear.<\/p>\n

ISIL\/ISIS, for example, has appealed to its followers around the world to participate in \u201ccyber-Jihad\u201d to create \u201cas much fear and inflict as much damage as they can.\u201d<\/p>\n

\u201cWe have right now a well-funded ecosystem of crime,\u201d explains Carlin, establishing a capability context through which terrorists\u2019 intent can be actualized.<\/p>\n

What\u2019s commonly referred to as the \u201cdark web\u201d comprises sites with IP addresses that can\u2019t be seen. It\u2019s not mapped in the way that the internet you and I search with Google is.<\/p>\n

\u201cIn that dark web, you have things like criminal groups who create, essentially, cyberweapons of mass destruction,\u201d says Carlin, \u201clike a bot-net \u2014 this is hundreds and hundreds of thousands of compromised computers that a bad guy can turn into a weapon by hitting a command.\u201d<\/p>\n

Iran used a bot-net on 46 global financial institutions via a \u201cdigital denial of service\u201d (DDoS) attack.<\/p>\n

Hackers can also use \u201ccryptolockers\u201d to encrypt your personal computer and lock all your files. They can then demand a ransom payment.<\/p>\n

\u201cIt\u2019s not only electronic; it\u2019s digital, and we\u2019ve connected almost all of it to the internet. And the internet was not designed with security in mind.\u201d<\/em><\/strong><\/p>\n

They can also coordinate attacks on hospitals and encrypt its records, resulting in \u201ca matter of life or death.\u201d<\/p>\n

On the dark web, you can \u201cliterally shop\u201d for stolen credit cards or a bot-net to launch a DDoS attack. There are actually customer reviews for such products and services, a la Amazon.com.<\/p>\n

\u201cWe\u2019re on the cusp of a major societal transformation,\u201d notes Carlin. \u201cAs big of a change as it was when we digitalized information, now we\u2019re moving to the Internet of Things.\u201d<\/p>\n

That includes driverless cars run by computers. And, as Charlie interjects, \u201cIf you can hack that computer, you can send that car anywhere you want to.\u201d<\/p>\n

\u201cThink about what one terrorist did with one truck in Nice,\u201d responds Carlin. \u201cWhat happens when you have a fleet of trucks?\u201d<\/p>\n

The key now is to learn from the mistakes we made when the move from paper to digital happened: We have to consider security first.<\/p>\n

\u201cWhen it comes to things like cars and trucks and missiles, planes, drones, this internet of things, or pacemakers, we have to build security in on the front end by design.\u201d<\/p>\n

Carlin explains an odd dilemma at the heart of this rapidly emerging future: \u201csecurity versus security,\u201d and it\u2019s a question of privacy:<\/p>\n

\n

When we think through some of the hard issues, like \u201cIs there certain information you ought to be able to obtain via a court order?\u201d and \u201cWhat should a company\u2019s responsibility be in making its information accessible?\u201d<\/p>\n

We strongly believe in encryption. Because we want to keep information secure. And we wouldn\u2019t want even the government to get it without proper legal process.<\/p>\n

But designing a system so that it is both secure from the bad guys who want to steal or destroy your information and secure as in \u201ca safe place\u201d to prevent terrorists from committing attacks\u2026<\/p>\n

I\u2019m optimistic that we\u2019ll be able to innovate our way out of this situation.<\/p>\n<\/blockquote>\n

Carlin \u2014 if you can muster some trust in a decades-long Justice Department official \u2014 provides solid foundation for the case that Putin himself is behind Russia\u2019s and WikiLeaks\u2019 U.S. presidential election mischief.<\/p>\n

But that\u2019s all part of an emerging \u201cgreat game.\u201d It\u2019s not a deadly conflict, not yet at least.<\/p>\n

The asymmetric threats are the real killers.<\/p>\n

\n

Old Things New<\/h2>\n

\"Seven<\/p>\n

The opening scene of director John Frankenheimer\u2019s 1964 political thriller Seven Days in May<\/em> depicts dueling groups marching in proximate loops in front of the White House gates.<\/p>\n

One group \u2014 \u201cPeace on Earth or No Earth at All!\u201d \u2014 is out in support of a besieged president who is negotiating a treaty with the Soviets that would eliminate nuclear weapons once and for all.<\/p>\n

Another group \u2014 \u201cDon\u2019t Ban the Bomb, Stupid, Ban the Treaty!\u201d \u2014 opposes a policy rooted in na\u00efvet\u00e9 and appeasement.<\/p>\n

A marcher from among the latter group uses his sign to knock a \u201cpro-peace\u201d banner from the hands of two peaceniks. And it\u2019s on: a demonstration turned physical, complete with stomping, punching, and wrestling.<\/p>\n

So the concept of Americans fighting among themselves is not a new one. Heck, think about the Civil War for a moment. Every once in a while, things heat up a little more than normal.<\/p>\n

Seven Days in May<\/em>, set amid the high-tension Cold War, is based on a 1962 novel that uses real events from the early 1960s to drive its narrative.<\/p>\n

Burt Lancaster plays General James Mattoon Scott, Chairman of the Joint Chiefs of Staff. General Mattoon organizes a coup against Frederick March\u2019s President Jordan Lyman.<\/p>\n

Kirk Douglas\u2019s Colonel Jiggs Casey, a top aide to General Mattoon, discovers the plot and relays his knowledge to the president, despite the fact that he opposes the disarmament treaty.<\/p>\n

Ava Gardner gives life to the idea of the Washington socialite and the hostesses of the \u201cGeorgetown Set.\u201d<\/p>\n

The credit sequence of Frankenheimer\u2019s film includes stylized, linked numerals superimposed over the Constitution, progressing from \u201c1\u201d and Article I, through \u201c7\u201d and, naturally, Article VII.<\/p>\n

We may disagree \u2014 even violently \u2014 but that document, whether you consider it a living one or a fixed source not to be messed with by activist judges, embodies ideas, principles, and traditions that will bind us.<\/p>\n

Until they no longer do.<\/p>\n

\u201cI agree with General Scott, sir,\u201d answers Colonel Casey when President Lyman asks his opinion on the treaty.<\/p>\n

\u201cI think we\u2019re being played for suckers. I think it\u2019s really your business, yours and the Senate. You did it, and they agreed, so I don\u2019t see how we in the military can question it. I mean, we can question it, but we can\u2019t fight it. We shouldn\u2019t, anyway.\u201d<\/p>\n

\u201cJiggs, isn\u2019t it? Isn\u2019t that what they call you?\u201d<\/p>\n

\u201cYes, sir.\u201d<\/p>\n

\u201cDo you, uh, you stand by the Constitution, Jiggs?\u201d<\/p>\n

\u201cI never thought of it just like that, Mr. President. But that\u2019s what we\u2019ve got. And I guess it\u2019s worked pretty well so far. I sure don\u2019t want to be the one to say we oughta change it.\u201d<\/p>\n

Smart Investing,<\/p>\n

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

The post The Internet: An Invisible Battleground<\/a> appeared first on Wall Street Daily<\/a>.<\/p>\n

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

By WallStreetDaily.com Literally everything is a weapon in the Digital Age. Yesterday, we talked about what may be the earliest days of an all-out cyberwar with Russia and Vladimir Putin. Today, we\u2019re going to talk about some things that may be even more frightening. During a compelling sit-down with Establishment conversationalist Charlie Rose, former Assistant […]<\/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-97072","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/97072","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=97072"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/97072\/revisions"}],"predecessor-version":[{"id":97080,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/97072\/revisions\/97080"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=97072"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=97072"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=97072"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}