Tag Archives: espionage

How China Uses Stolen US Personnel Data

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2020/12/how-china-uses-stolen-us-personnel-data.html

Interesting analysis of China’s efforts to identify US spies:

By about 2010, two former CIA officials recalled, the Chinese security services had instituted a sophisticated travel intelligence program, developing databases that tracked flights and passenger lists for espionage purposes. “We looked at it very carefully,” said the former senior CIA official. China’s spies “were actively using that for counterintelligence and offensive intelligence. The capability was there and was being utilized.” China had also stepped up its hacking efforts targeting biometric and passenger data from transit hubs…

To be sure, China had stolen plenty of data before discovering how deeply infiltrated it was by U.S. intelligence agencies. However, the shake-up between 2010 and 2012 gave Beijing an impetus not only to go after bigger, riskier targets, but also to put together the infrastructure needed to process the purloined information. It was around this time, said a former senior NSA official, that Chinese intelligence agencies transitioned from merely being able to steal large datasets en masse to actually rapidly sifting through information from within them for use….

For U.S. intelligence personnel, these new capabilities made China’s successful hack of the U.S. Office of Personnel Management (OPM) that much more chilling. During the OPM breach, Chinese hackers stole detailed, often highly sensitive personnel data from 21.5 million current and former U.S. officials, their spouses, and job applicants, including health, residency, employment, fingerprint, and financial data. In some cases, details from background investigations tied to the granting of security clearances — investigations that can delve deeply into individuals’ mental health records, their sexual histories and proclivities, and whether a person’s relatives abroad may be subject to government blackmail — were stolen as well….

When paired with travel details and other purloined data, information from the OPM breach likely provided Chinese intelligence potent clues about unusual behavior patterns, biographical information, or career milestones that marked individuals as likely U.S. spies, officials say. Now, these officials feared, China could search for when suspected U.S. spies were in certain locations — and potentially also meeting secretly with their Chinese sources. China “collects bulk personal data to help it track dissidents or other perceived enemies of China around the world,” Evanina, the top U.S. counterintelligence official, said.

[..]

But after the OPM breach, anomalies began to multiply. In 2012, senior U.S. spy hunters began to puzzle over some “head-scratchers”: In a few cases, spouses of U.S. officials whose sensitive work should have been difficult to discern were being approached by Chinese and Russian intelligence operatives abroad, according to the former counterintelligence executive. In one case, Chinese operatives tried to harass and entrap a U.S. official’s wife while she accompanied her children on a school field trip to China. “The MO is that, usually at the end of the trip, the lightbulb goes on [and the foreign intelligence service identifies potential persons of interest]. But these were from day one, from the airport onward,” the former official said.

Worries about what the Chinese now knew precipitated an intelligence community-wide damage assessment surrounding the OPM and other hacks, recalled Douglas Wise, a former senior CIA official who served deputy director of the Defense Intelligence Agency from 2014 to 2016. Some worried that China might have purposefully secretly altered data in individuals’ OPM files to later use as leverage in recruitment attempts. Officials also believed that the Chinese might sift through the OPM data to try and craft the most ideal profiles for Chinese intelligence assets seeking to infiltrate the U.S. government­ — since they now had granular knowledge of what the U.S. government looked for, and what it didn’t, while considering applicants for sensitive positions. U.S. intelligence agencies altered their screening procedures to anticipate new, more finely tuned Chinese attempts at human spying, Wise said.

Swiss-Swedish Diplomatic Row Over Crypto AG

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2020/10/swiss-swedish-diplomatic-row-over-crypto-ag.html

Previously I have written about the Swedish-owned Swiss-based cryptographic hardware company: Crypto AG. It was a CIA-owned Cold War operation for decades. Today it is called Crypto International, still based in Switzerland but owned by a Swedish company.

It’s back in the news:

Late last week, Swedish Foreign Minister Ann Linde said she had canceled a meeting with her Swiss counterpart Ignazio Cassis slated for this month after Switzerland placed an export ban on Crypto International, a Swiss-based and Swedish-owned cybersecurity company.

The ban was imposed while Swiss authorities examine long-running and explosive claims that a previous incarnation of Crypto International, Crypto AG, was little more than a front for U.S. intelligence-gathering during the Cold War.

Linde said the Swiss ban was stopping “goods” — which experts suggest could include cybersecurity upgrades or other IT support needed by Swedish state agencies — from reaching Sweden.

She told public broadcaster SVT that the meeting with Cassis was “not appropriate right now until we have fully understood the Swiss actions.”

EDITED TO ADD (10/13): Lots of information on Crypto AG.

On Executive Order 12333

Post Syndicated from Bruce Schneier original https://www.schneier.com/blog/archives/2020/09/on-executive-order-12333.html

Mark Jaycox has written a long article on the US Executive Order 12333: “No Oversight, No Limits, No Worries: A Primer on Presidential Spying and Executive Order 12,333“:

Abstract: Executive Order 12,333 (“EO 12333”) is a 1980s Executive Order signed by President Ronald Reagan that, among other things, establishes an overarching policy framework for the Executive Branch’s spying powers. Although electronic surveillance programs authorized by EO 12333 generally target foreign intelligence from foreign targets, its permissive targeting standards allow for the substantial collection of Americans’ communications containing little to no foreign intelligence value. This fact alone necessitates closer inspection.

This working draft conducts such an inspection by collecting and coalescing the various declassifications, disclosures, legislative investigations, and news reports concerning EO 12333 electronic surveillance programs in order to provide a better understanding of how the Executive Branch implements the order and the surveillance programs it authorizes. The Article pays particular attention to EO 12333’s designation of the National Security Agency as primarily responsible for conducting signals intelligence, which includes the installation of malware, the analysis of internet traffic traversing the telecommunications backbone, the hacking of U.S.-based companies like Yahoo and Google, and the analysis of Americans’ communications, contact lists, text messages, geolocation data, and other information.

After exploring the electronic surveillance programs authorized by EO 12333, this Article proposes reforms to the existing policy framework, including narrowing the aperture of authorized surveillance, increasing privacy standards for the retention of data, and requiring greater transparency and accountability.