The Jim Bakker Show

Hackers release files indicating NSA monitored global bank transfers

By Clare Baldwin

(Reuters) – Hackers released documents and files on Friday that cybersecurity experts said indicated the U.S. National Security Agency had accessed the SWIFT interbank messaging system, allowing it to monitor money flows among some Middle Eastern and Latin American banks.

The release included computer code that could be adapted by criminals to break into SWIFT servers and monitor messaging activity, said Shane Shook, a cyber security consultant who has helped banks investigate breaches of their SWIFT systems.

The documents and files were released by a group calling themselves The Shadow Brokers. Some of the records bear NSA seals, but Reuters could not confirm their authenticity.

The NSA could not immediately be reached for comment.

Also published were many programs for attacking various versions of the Windows operating system, at least some of which still work, researchers said.

In a statement to Reuters, Microsoft <MSFT.O>, maker of Windows, said it had not been warned by any part of the U.S. government that such files existed or had been stolen.

“Other than reporters, no individual or organization has contacted us in relation to the materials released by Shadow Brokers,” the company said.

The absence of warning is significant because the NSA knew for months about the Shadow Brokers breach, officials previously told Reuters. Under a White House process established by former President Barack Obama’s staff, companies were usually warned about dangerous flaws.

Shook said criminal hackers could use the information released on Friday to hack into banks and steal money in operations mimicking a heist last year of $81 million from the Bangladesh central bank.

“The release of these capabilities could enable fraud like we saw at Bangladesh Bank,” Shook said.

The SWIFT messaging system is used by banks to transfer trillions of dollars each day. Belgium-based SWIFT downplayed the risk of attacks employing the code released by hackers on Friday.

SWIFT said it regularly releases security updates and instructs client banks on how to handle known threats.

“We mandate that all customers apply the security updates within specified times,” SWIFT said in a statement.

SWIFT said it had no evidence that the main SWIFT network had ever been accessed without authorization.

It was possible that the local messaging systems of some SWIFT client banks had been breached, SWIFT said in a statement, which did not specifically mention the NSA.

When cyberthieves robbed the Bangladesh Bank last year, they compromised that bank’s local SWIFT network to order money transfers from its account at the New York Federal Reserve.

The documents released by the Shadow Brokers on Friday indicate that the NSA may have accessed the SWIFT network through service bureaus. SWIFT service bureaus are companies that provide an access point to the SWIFT system for the network’s smaller clients and may send or receive messages regarding money transfers on their behalf.

“If you hack the service bureau, it means that you also have access to all of their clients, all of the banks,” said Matt Suiche, founder of the United Arab Emirates-based cybersecurity firm Comae Technologies, who has studied the Shadow Broker releases and believes the group has access to NSA files.

The documents posted by the Shadow Brokers include Excel files listing computers on a service bureau network, user names, passwords and other data, Suiche said.

“That’s information you can only get if you compromise the system,” he said.

ATTEMPT TO MONITOR FLOW OF MONEY

Cris Thomas, a prominent security researcher with the cybersecurity firm Tenable, said the documents and files released by the Shadow Brokers show “the NSA has been able to compromise SWIFT banking systems, presumably as a way to monitor, if not disrupt, financial transactions to terrorists groups”.

Since the early 1990s, interrupting the flow of money from Saudi Arabia, the United Arab Emirates and elsewhere to al Qaeda, the Taliban, and other militant Islamic groups in Afghanistan, Pakistan and other countries has been a major objective of U.S. and allied intelligence agencies.

Mustafa Al-Bassam, a computer science researcher at University College London, said on Twitter that the Shadow Brokers documents show that the “NSA hacked a bunch of banks, oil and investment companies in Palestine, UAE, Kuwait, Qatar, Yemen, more.”

He added that NSA “completely hacked” EastNets, one of two SWIFT service bureaus named in the documents that were released by the Shadow Brokers.

Reuters could not independently confirm that EastNets had been hacked.

EastNets, based in Dubai, denied it had been hacked in a statement, calling the assertion “totally false and unfounded.”

EastNets ran a “complete check of its servers and found no hacker compromise or any vulnerabilities,” according to a statement from EastNets’ chief executive and founder, Hazem Mulhim.

In 2013, documents released by former NSA contractor Edward Snowden said the NSA had been able to monitor SWIFT messages.

The agency monitored the system to spot payments intended to finance crimes, according to the documents released by Snowden.

Reuters could not confirm whether the documents released Friday by the Shadow Brokers, if authentic, were related to NSA monitoring of SWIFT transfers since 2013.

Some of the documents released by the Shadow Brokers were dated 2013, but others were not dated.

The documents released by the hackers did not clearly indicate whether the NSA had actually used all the techniques cited for monitoring SWIFT messages.

(Additional reporting by Tom Bergin in London; Dustin Volz and John Walcott in Washington; Joseph Menn in San Franciso; and Jim Finkle in Buffalo, New York.; Editing by Brian Thevenot and Cynthia Osterman)

U.S. authorities charge Russian spies, hackers in huge Yahoo hack

The John Sopinka Courthouse, where Karim Baratov appeared in front of a judge, in connection with a U.S. Justice Department investigation into the 2014 hacking of Yahoo, is pictured in Hamilton, Ontario, Canada March 15, 2017 . REUTERS/Peter Power

By Dustin Volz

WASHINGTON (Reuters) – The United States on Wednesday charged two Russian intelligence agents and two hackers with masterminding the 2014 theft of 500 million Yahoo accounts, the first time the U.S. government has criminally charged Russian spies for cyber offences.

The charges came amid a swirl of controversies relating to alleged Kremlin-backed hacking of the 2016 U.S. presidential election and possible links between Russian figures and associates of U.S. President Donald Trump. This has given rise to uncertainty about whether Trump is willing to respond forcefully to any action by Moscow in cyberspace and elsewhere.

The 47-count Justice Department indictment included charges of conspiracy, computer fraud and abuse, economic espionage, theft of trade secrets, wire fraud, access device fraud and aggravated identify theft. It painted a picture of the Russian security services working hand-in-hand with cyber criminals, who helped spies further their intelligence goals in exchange for using the same exploits to make money.

“The criminal conduct at issue, carried out and otherwise facilitated by officers from an FSB unit that serves as the FBI’s point of contact in Moscow on cyber crime matters, is beyond the pale,” Acting Assistant Attorney General Mary McCord said at a press conference announcing the charges.

Russia’s Federal Security Service (FSB) is the successor to the KGB.

The Kremlin, which denies Russia tried to influence the U.S. election in any way, said on Thursday Moscow had received no official notification of the indictment, but hoped it would.

However, Dmitry Peskov, President Vladimir Putin’s spokesman, dismissed out of hand the idea that FSB employees could have been involved in the Yahoo hack.

“We have said repeatedly that there can be no discussion of any official involvement of any Russian agency, including the FSB…in any unlawful cyber activities,” said Peskov, who has cast U.S. allegations against Russia as part of a political campaign to kill off a U.S.-Russia rapprochement.

Yahoo said when it announced the then-unprecedented breach last September that it believed the attack was state-sponsored, and on Wednesday the company said the indictment “unequivocally shows” that to be the case.

The charges announced Wednesday are not related to the hacking of Democratic Party emails during the 2016 U.S. presidential election. U.S. intelligence agencies have said they were carried out by Russian spy services, including the FSB, to help the campaign of Republican candidate Donald Trump.

The indictment named the FSB officers involved as Dmitry Dokuchaev and his superior, Igor Sushchin, who are both in Russia.

Dokuchaev was arrested for treason in December, according to the Russian news agency Interfax.

Reuters sent a request for comment to the FSB in Moscow on Wednesday evening but there was no response.

The alleged criminals involved in the scheme include Alexsey Belan, who is among the FBI’s most-wanted cyber criminals and was arrested in Europe in June 2013 but escaped to Russia before he could be extradited to the United States, according to the Justice Department.

Karim Baratov, who was born in Kazakhstan but has Canadian citizenship, was also named in the indictment.

The Justice Department said Baratov was arrested in Canada on Tuesday. Mark Pugash of Toronto police later confirmed the Tuesday arrest.

McCord said the hacking campaign was waged by the FSB to collect intelligence but that the two hackers used the collected information as an opportunity to “line their pockets.”

The United States does not have an extradition treaty with Russia, but McCord said she was hopeful Russian authorities would cooperate in bringing criminals to justice. The United States often charges cyber criminals with the intent of deterring future state-sponsored activity.

The administration of former President Barack Obama brought similar charges against Chinese and Iranian hackers who have not been extradited.

In a statement, White House spokesman Michael Anton said the charges “are part of a broad effort across the government to defend the United States against cyber attacks and cyber-related crimes.”

‘RED NOTICE’

Yahoo in December announced another breach that occurred in 2013 affecting one billion accounts. Special Agent Jack Bennett of the FBI’s San Francisco Division said the 2013 breach is unrelated and that an investigation of that incident is ongoing.

The hacks forced Yahoo to accept a discount of $350 million in what had been a $4.83 billion deal to sell its main assets to Verizon Communications Inc <VZ.N>.

At least 30 million of the Yahoo accounts in the 2014 breach were the most seriously affected, with Belan able to burrow deep into their accounts and take user contact lists that were later used for a financially motivated spam campaign, according to the indictment. Belan also stole financial information such as credit card numbers and gift cards, it said.

Yahoo had previously said about 32 million accounts had fallen victim to the deeper attack, which it said leveraged forged browser cookies to access accounts without the need for a password.

According to the indictment, FSB officers Sushchin and Dokuchaev also directed Baratov to use the information gained in the Yahoo breach to hack specific targets who possessed email accounts with other service providers, including Google.

When Baratov was successful, Dokuchaev would reward him with a bounty, the indictment charged.

Examples where Google accounts were targeted include an assistant to the deputy chairman of the Russian Federation, an officer of the Russian Ministry of Internal Affairs, and a physical training expert employed by the Russian government.

Details in the indictment reflect the often murky relationship in Russia between criminal hackers and government intelligence officers.

Interpol issued a “red notice” on Belan in relation to an earlier hacking campaign, according to the indictment. Instead of arresting Belan, however, the FSB recruited him to help with cyber espionage and provided tools to evade detection from other authorities.

Belan later gained unauthorized access to Yahoo’s network that he shared with FSB, the indictment said.

(Reporting by Dustin Volz in Washington and Joseph Menn in San Francisco; Additional reporting by Julia Edwards in Washington and Alexander Winning and Dasha Afanasieva in Moscow; Editing by Jeffrey Benkoe and James Dalgleish)

Global private companies confident, but unprepared for hacking threat: PwC

LONDON (Reuters) – The chief executives of some of the worlds’ leading private companies are confident about their firms’ prospects and plan to recruit more staff, but are ill-prepared for cyber attacks, according to a report by PwC on Thursday.

The “Undaunted, but underprepared?” report found 86 percent of CEOs were confident about their companies revenue prospects in 2017, an increase of 5 percent from last year.

That made it the first time in five years that private company bosses were more confident than public company CEOs.

The report, based on responses from 781 private company CEOs in 79 countries, also found that 41 percent of private company CEOs were not concerned about cyber threats and only 68 percent were concerned about the speed of technological change.

Stephanie Hyde, Global Entrepreneurial and Private Business Leader for PwC UK, said it was worrying that private company CEOs were less concerned about technology and cyber compared to their public counterparts, as they had less resources available to invest in addressing these issues.

“This may make them more vulnerable to cyber attacks, so in theory they should be more concerned about these threats not less,” she said.

“In our view, this is probably the single most worrying finding in our report, especially in light of growing evidence that hackers are now targeting smaller and private businesses, thinking they will not be so well protected.”

(Reporting by Michael Holden)

SAP pushes to patch risky HANA security flaws before hackers strike

By Eric Auchard

FRANKFURT (Reuters) – Europe’s top software maker SAP said on Tuesday it had patched vulnerabilities in its latest HANA software that had a potentially high risk of giving hackers control over databases and business applications used to run big multinational firms. While hacks on phones, websites and computers that consumers rely on every day grab headlines, vulnerabilities in big business software are more lucrative to attackers as these tools store data and run transactions which are the lifeblood of businesses. The latest security weaknesses, known in industry parlance as “zero day” vulnerabilities, rank among the most critical ever found in HANA, the engine that runs SAP’s latest database, cloud and other more traditional business apps, according to Onapsis, the security company which uncovered these issues.

SAP software acts as the corporate plumbing for many multinationals and the company claims 87 percent of the top 2,000 global companies as customers.

Onapsis said vulnerabilities lay in a HANA component known as “User Self Service” (USS) which would allow malicious insiders or remote attackers to fully compromise vulnerable systems, without so much as valid usernames and passwords.

It reported 10 HANA vulnerabilities to SAP less than 60 days ago, which the German software maker fixed in near-record time, according to interviews with executives of both companies.

The resulting patch issued by SAP on Tuesday was rated by it as 9.8 on a scale of 10, “very high” in terms of relative risk to its customers. SAP is releasing five HANA patches this week to fix a range of vulnerabilities uncovered in recent months.

“SAP has done a great job by releasing fixes much faster than in past situations,” Onapsis Chief Executive Mariano Nunez told Reuters in an interview.

Customers must in turn choose when to apply such patches to software that runs their most critical corporate functions, a process that may take months or years, in rare cases. They must balance security risks against operational demands.

SAP executives urged security managers working for its customers to patch relevant systems.

“There has not been one case where a customer who applied the recommended patches has been affected,” Siddhartha Rao, vice president of SAP Product Security Response, said of the six years he has been on the job. “We currently expect there will not be that many customers affected by these issues,” he said.

Last May, however, the U.S. Department of Homeland Security issued an alert advising SAP customers they needed to urgently plug holes for which SAP already had offered patches in 2010, but which some customers failed to adopt, leaving dozens exposed to hacker break-ins afterward. (http://reut.rs/2mkTVgI)

Three dozen enterprises were found to have telltale signs of unauthorized access due to outdated or misconfigured SAP NetWeaver Java systems, Onapsis said at the time.

Onapsis helps secure more than 200 SAP customers ranging from Schlumberger to Sony Corp, Westinghouse and the U.S. Army. It also identifies security vulnerabilities for corporate customers in rival systems from Oracle.

Giving HANA customers breathing room, the USS component first offered by SAP in October 2014 is not activated by default, but must be specially enabled, Onapsis said.

It has identified two companies – an energy company and a retailer – where vulnerabilities were found and fixed. Companies which are not using USS features are unaffected, Onapsis said.

Technical details can be found on the security blogs of SAP (https://goo.gl/11Dz5w) and Onapsis (https://goo.gl/Xiryyp). There is no evidence hackers have taken advantage so far, the companies said.

Last year, the company issued more than 160 patches in all, SAP said. Ten percent of these were HANA related, Onapsis added.

(Reporting by Eric Auchard; Editing by Stephen Coates)

CIA contractors likely source of latest WikiLeaks release: U.S. officials

The lobby of the CIA Headquarters Building in Langley, Virginia, U.S. on August 14, 2008. REUTERS/Larry Downing/File Photo

By John Walcott and Mark Hosenball

WASHINGTON (Reuters) – Contractors likely breached security and handed over documents describing the Central Intelligence Agency’s use of hacking tools to anti-secrecy group WikiLeaks, U.S. intelligence and law enforcement officials told Reuters on Wednesday.

Two officials speaking on condition of anonymity said intelligence agencies have been aware since the end of last year of the breach, which led to WikiLeaks releasing thousands of pages of information on its website on Tuesday.

According to the documents, CIA hackers could get into Apple Inc <AAPL.O> iPhones, devices running Google’s Android software and other gadgets in order to capture text and voice messages before they were encrypted with sophisticated software.

The White House said on Wednesday that President Donald Trump was “extremely concerned” about the CIA security breach that led to the WikiLeaks release.

“Anybody who leaks classified information will be held to the highest degree of law,” spokesman Sean Spicer said.

The two officials told Reuters they believed the published documents about CIA hacking techniques used between 2013 and 2016 were authentic.

One of the officials with knowledge of the investigation said companies that are contractors for the CIA have been checking to see which of their employees had access to the material that WikiLeaks published, and then going over their computer logs, emails and other communications for any evidence of who might be responsible.

On Tuesday in a press release, WikiLeaks itself said the CIA had “lost control” of an archive of hacking methods and it appeared to have been circulated “among former U.S. government hackers and contractors in an unauthorized manner, one of whom has provided WikiLeaks with portions of the archive.”

The CIA, which is the United States’ civilian foreign intelligence service, declined to comment on the authenticity of purported intelligence documents.

The agency said in a statement that its mission was to collect foreign intelligence abroad “to protect America from terrorists, hostile nation states and other adversaries” and to be “innovative, cutting-edge, and the first line of defense in protecting this country from enemies abroad.”

The CIA is legally prohibited from surveillance inside the United States and “does not do so”, the statement added.

CONTRACTORS MUST BE ‘LOYAL TO AMERICA’

A U.S. government source familiar with the matter said it would be normal for the Federal Bureau of Investigation and the CIA both to open investigations into such leaks. U.S. officials previously have confirmed that prosecutors in Alexandria, Virginia for years have been conducting a federal grand jury investigation of WikiLeaks and its personnel.

A spokesman for the prosecutors declined to comment on the possibility of that probe being expanded. It is not clear if the investigation of the latest CIA leaks is part of the probe.

Contractors have been revealed as the source of sensitive government information leaks in recent years, most notably Edward Snowden and Harold Thomas Martin, both employed by consulting firm Booz Allen Hamilton <BAH.N> while working for the National Security Agency.

U.S. Senator Dianne Feinstein of California and a Democrat on the intelligence committee, said the government needed to stop the breaches.

“I think we really need to take a look at the contractor portion of the employee workforce, because you have to be loyal to America to work for an intelligence agency, otherwise don’t do it,” Feinstein said.

Both U.S. Senate and U.S. House of Representatives intelligence committees have either opened or are expected to open inquiries into the CIA breach, congressional officials said.

Some cyber security experts and technology companies have criticized the government for opting to exploit rather than disclose software vulnerabilities, though an interagency review process set up under former President Barack Obama was intended to err on the side of disclosure.

Those concerns would grow if U.S. authorities did not notify companies that CIA documents describing various hacking techniques had been compromised.

Apple, Alphabet Inc’s <GOOGL.O> Google, Cisco Systems Inc <CSCO.O> and Oracle Corp <ORCL.N> did not immediately respond when asked if they were notified of a CIA breach before WikiLeaks made its files public.

At Apple, none of the vulnerabilities described in the documents provoked a panic, though analysis was continuing, according to a person who spoke with engineers there.

Google’s director of information security and privacy, Heather Adkins, said in a statement: “As we’ve reviewed the documents, we’re confident that security updates and protections in both Chrome and Android (operating systems) already shield users from many of these alleged vulnerabilities. Our analysis is ongoing and we will implement any further necessary protections.”

LARGER NUMBER OF CONTRACTORS

One reason the investigation is focused on a potential leak by contractors rather than for example a hack by Russian intelligence, another official said, is that so far there is no evidence that Russian intelligence agencies tried to exploit any of the leaked material before it was published.

One European official, speaking on condition of anonymity, said the WikiLeaks material could in fact lead to closer cooperation between European intelligence agencies and U.S. counterparts, which share concerns about Russian intelligence operations.

U.S. intelligence agencies have accused Russia of seeking to tilt last year’s U.S. presidential election in Trump’s favor, including by hacking into Democratic Party emails. Moscow has denied the allegation.

One major security problem was that the number of contractors with access to information with the highest secrecy classification has “exploded” because of federal budget constraints, the first U.S. official said.

U.S. intelligence agencies have been unable to hire additional permanent staff needed to keep pace with technological advances such as the “internet of things” that connects cars, home security and heating systems and other devices to computer networks, or to pay salaries competitive with the private sector, the official said.

Reuters could not immediately verify the contents of the published documents.

A person familiar with WikiLeaks’ activities said the group has had the CIA hacking material for months, and that the release of the material was in the works “for a long time.”

In Germany on Wednesday, the chief federal prosecutor’s office said that it would review the WikiLeaks documents because some suggested that the CIA ran a hacking hub from the U.S. consulate in Frankfurt.

“We will initiate an investigation if we see evidence of concrete criminal acts or specific perpetrators,” a spokesman for the federal prosecutor’s office told Reuters.

Chancellor Angela Merkel is scheduled to visit Washington on March 14 for her first meeting with Trump, who has sharply criticized Berlin for everything from its trade policy to what he considers inadequate levels of military spending.

(Reporting by John Walcott, Mark Hosenball, Dustin Volz, Yara Bayoumy in Washington and Matthias Sobolewski and Andrea Shalal in Berlin; Additional reporting by Joseph Menn in San Francisco; Writing by Grant McCool; Editing by Peter Graff and Bill Rigby)

Austrian parliament says Turkish Islamist hackers claim cyber attack

VIENNA (Reuters) – Austria’s parliament said on Tuesday that a Turkish Islamist hackers’ group had claimed responsibility for a cyber attack that brought down its website for 20 minutes this weekend.

Aslan Neferler Tim (ANT), or Lion Soldiers Team, whose website says it defends the homeland, Islam, the nation and flag, without any party political links, claimed the attack, a parliamentary spokeswoman said.

Relations between Turkey and Austria soured last year after President Tayyip Erdogan cracked down on dissent following a failed coup, and Vienna has since made a solo charge within the European Union for accession talks to be dropped.

On its Facebook page on Sunday afternoon, above a screenshot indicating the website was not loading, ANT said in Turkish: “Our reaction will be harsh in response to this racism of Austria against Muslims!!! (Parliament down).”

ANT says it has carried out “operations” against the pro-Kurdish Peoples’ Democratic Party (HDP), the Austrian central bank and an Austrian airport.

An Interior Ministry spokesman said on Tuesday that an investigation had begun into the cyber attack and, declining to elaborate further, noted that no data had been lost.

A parliamentary spokeswoman said: “ANT has claimed responsibility.” When asked if ANT was responsible, she said: “We assume so.”

The website was brought down after the server was flooded with service requests, a so-called DDoS-attack, similar to an attack last November that targeted the Foreign Affairs and Defense Ministries’ websites, a statement from parliament said.

DDoS attacks are among the most common cyber threats. One such attack targeted the European Commission’s computers in November.

The Vienna-based Organization for Security and Cooperation in Europe (OSCE) was also recently the target of a cyber attack.

(Reporting by Shadia Nasralla, Francois Murphy in VIENNA and Daren Butler in ISTANBUL; Editing by Louise Ireland)

Ukraine’s power outage was a cyber attack: Ukrenergo

Dispatchers at Ukraine's national power company

By Pavel Polityuk, Oleg Vukmanovic and Stephen Jewkes

KIEV/MILAN (Reuters) – A power blackout in Ukraine’s capital Kiev last month was caused by a cyber attack and investigators are trying to trace other potentially infected computers and establish the source of the breach, utility Ukrenergo told Reuters on Wednesday.

When the lights went out in northern Kiev on Dec. 17-18, power supplier Ukrenergo suspected a cyber attack and hired investigators to help it determine the cause following a series of breaches across Ukraine.

Preliminary findings indicate that workstations and Supervisory Control and Data Acquisition (SCADA) systems, linked to the 330 kilowatt sub-station “North”, were influenced by external sources outside normal parameters, Ukrenergo said in comments emailed to Reuters.

“The analysis of the impact of symptoms on the initial data of these systems indicates a premeditated and multi-level invasion,” Ukrenergo said.

Law enforcement officials and cyber experts are still working to compile a chronology of events, draw up a list of compromised accounts, and determine the penetration point, while tracing computers potentially infected with malware in sleep mode, it said.

The comments make no mention of which individual, group or country may have been behind the attack.

“It was an intentional cyber incident not meant to be on a large scale… they actually attacked more but couldn’t achieve all their goals,” said Marina Krotofil, lead cyber-security researcher at Honeywell, who assisted in the investigation.

In December 2015, a first-of-its-kind cyber attack cut the lights to 225,000 people in western Ukraine, with hackers also sabotaging power distribution equipment, complicating attempts to restore power.

Ukrainian security services blamed that attack on Russia.

In the latest attack, hackers are thought to have hidden in Ukrenergo’s IT network undetected for six months, acquiring privileges to access systems and figure out their workings, before taking methodical steps to take the power offline, Krotofil said.

“The team involved had quite a few people working in it, with very serious tools and an engineer who understands the power infrastructure,” she said.

The attacks against Ukraine’s power grid are widely seen by experts as the first examples of hackers shutting off critical energy systems supplying heat and light to millions of homes.

(Writing by Oleg Vukmanovic; reporting by Pavel Polityuk in Kiev, Oleg Vukmanovic and Stephen Jewkes in Milan; editing by Susan Fenton/Ruth Pitchford)

Ukrainian institutions hit by 6,500 hack attacks, sees Russian ‘cyberwar’

A padlock is displayed at the Alert Logic booth during the 2016 Black Hat cyber-security conference

By Natalia Zinets

KIEV (Reuters) – Hackers have targeted Ukrainian state institutions about 6,500 times in the past two months, including incidents that showed Russian security services were waging a cyberwar against the country, President Petro Poroshenko said on Thursday.

In December, Ukraine suffered attacks on its finance and defense ministries and the State Treasury that allocates cash to government institutions. A suspected hack also wiped out part of Kiev’s power grid, causing a blackout in part of the capital.

“Acts of terrorism and sabotage on critical infrastructure facilities remain possible today,” Poroshenko said during a meeting of the National Security and Defence Council, according to a statement released by Poroshenko’s office.

The statement said the president stressed that “the investigation of a number of incidents indicated the complicity directly or indirectly of Russian security services waging a cyberwar against our country”.

Relations between Kiev and Moscow collapsed in 2014 following Russia’s annexation of Crimea and support for pro-Russian separatists in eastern Ukraine, where fighting continues despite a ceasefire agreement.

Among the 6,500 attacks Poroshenko said the country had been hit by, the attack on the State Treasury halted its systems for several days, meaning state workers and pensioners had been unable to receive their salaries or payments on time.

Cyber security firm CrowdStrike said last week a hacking group linked to the Russian government likely used a malware implant on Android devices to track and target Ukrainian artillery units from late 2014 through 2016.

Its findings are the latest to support a growing view among Western security officials and cyber security researchers that Russian President Vladimir Putin has increasingly relied on hacking to exert influence and attack geopolitical foes.

Russia has repeatedly denied hacking accusations.

Poroshenko’s comments come as the Obama administration plans to announce retaliatory measures against Russia for hacking into U.S. political institutions and individuals and leaking information in an effort to help Donald Trump win the presidency. Trump has dismissed the assessments of the U.S. intelligence community.

In December 2015, Ukrainian regional power company Prykarpattyaoblenergo reported an outage, saying the area affected included the regional capital Ivano-Frankivsk. Ukraine’s state security service blamed Russia.

Experts widely described that incident as the first known power outage caused by a cyber attack. The U.S. cyber firm iSight Partners identified the perpetrator as a Russian hacking group known as “Sandworm”.

As a result of the cyber attacks, Ukraine’s security council agreed measures to protect state institutions, the statement said. It did not disclose what the measures were.

(Writing by Matthias Williams; Editing by Alison Williams)

Russia says foreign spies plan cyber attack on banking system

A hand is silhouetted in front of a computer screen in this picture illustration taken in Berlin

By Christian Lowe and Natalia Zinets

MOSCOW/KIEV (Reuters) – Russia said on Friday it had uncovered a plot by foreign spy agencies to sow chaos in Russia’s banking system via a coordinated wave of cyber attacks and fake social media reports about banks going bust.

Russia’s domestic intelligence agency, the Federal Security Service (FSB), said that the servers to be used in the alleged cyber attack were located in the Netherlands and registered to a Ukrainian web hosting company called BlazingFast.

The attack, which was to target major national and provincial banks in several Russian cities, was meant to start on Dec. 5, the FSB said in a statement.

“It was planned that the cyber attack would be accompanied by a mass send-out of SMS messages and publications in social media of a provocative nature regarding a crisis in the Russian banking system, bankruptcies and license withdrawals,” it said.

“The FSB is carrying out the necessary measures to neutralize threats to Russia’s economic and information security.”

The statement did not say which countries’ intelligence agencies were behind the alleged plot.

SITUATION ‘UNDER CONTROL’

Russia’s central bank said it was aware of the threat and was in constant contact with the security services. In a statement sent to Reuters, it said it had drawn up a plan to counteract any attack.

“The situation is under control. Banks have been given necessary guidance,” the central bank said.

Anton Onoprichuk, director of Kiev-based BlazingFast, said neither the FSB nor any other intelligence agency had been in touch with his company. He told Reuters he was waiting for more information so his firm could investigate.

Asked if his servers could be used to mount a cyber attack he said: “Technically it is possible. It is possible with any hosting company, where you rent a server. You can attack whatever (you want) from it and in 99 percent of cases it will become known only after the event.”

Russia has been on high alert for foreign-inspired cyber attacks since U.S. officials accused the Kremlin of being involved in hacks on Democratic Party emails during the U.S. presidential election.

U.S. Vice President Joe Biden said at the time that the United States would mount a “proportional” response to Russia.

Since then, there have been a number of cyber attacks affecting Russian institutions, though it is unclear if they were linked to the row between Moscow and Washington.

In October, a network of Ukrainian hackers released a cache of emails obtained from the account of an aide to Kremlin adviser Vladislav Surkov.

And on Nov. 11, Russian lenders Sberbank and Alfa Bank said they had been hit by cyber attacks

Sberbank on Friday declined to comment on the FSB’s statement. The press service of VTB, Russia’s second-largest state-run lender, said its security systems guaranteed clients’ transactions were completely protected.

(Additional reporting by Natalia Zinets in KIEV, Elena Fabrichnaya and Kira Zavyalova in MOSCOW; Writing by Christian Lowe; Editing by Andrew Osborn)

Hackers stole over 2 billion roubles from accounts in central bank Russia

A lock icon, signifying an encrypted Internet connection, is seen on an Internet Explorer browser in a photo illustration

MOSCOW (Reuters) – Hackers have stolen more than 2 billion roubles ($31.3 million) from banks’ correspondent accounts in Russian central bank, the central bank official Artyom Sychyov told a briefing on Friday.

He added that hackers attempted to stole around 5 billion roubles.

Hackers broke into accounts at the Russian central bank earlier this year by faking a client’s credentials and attempted to steal $45 million, the bank said in a report released earlier on Friday.

(Reporting by Andrey Ostroukh and Elena Fabrichnaya; writing by Katya Golubkova; editing by Vladimir Soldatkin)

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