The Jim Bakker Show

‘No doubt’ Russia behind hacks on U.S. election system: senior Democrat

By Dustin Volz

WASHINGTON (Reuters) – A senior Democratic lawmaker said Sunday he had “no doubt” that Russia was behind recent hacking attempts targeting state election systems, and urged the Obama administration to publicly blame Moscow for trying to undermine confidence in the Nov. 8 presidential contest.

The remarks from Representative Adam Schiff, the top Democrat on the intelligence committee in the U.S. House of Representatives, come amid heightened concerns among U.S. and state officials about the security of voting machines and databases, and unsubstantiated allegations from Republican candidate Donald Trump that the election could be “rigged.”

“I have no doubt [this is Russia]. And I don’t think the administration has any doubt,” Schiff said during an appearance on ABC’s “This Week.”

Schiff’s call to name and shame the Kremlin came a week after Trump questioned widely held conclusions made privately by the U.S. intelligence community that Russia is responsible for the hacking activity.

“It could be Russia, but it could also be China,” Trump said during a televised debate with Democratic candidate Hillary Clinton. “It also could be somebody sitting on their bed that weighs 400 pounds.”

On Saturday, Homeland Security Secretary Jeh Johnson said hackers have probed the voting systems of many U.S. states but there is no sign that they have manipulated any voting data.

Schiff said he doubted hackers could falsify vote tallies in a way to affect the election outcome. Officials and experts have said the decentralized and outdated nature of U.S. voting technology makes such hacks more unlikely.

But cyber attacks on voter registration systems could “sow discord” on election day, Schiff said. He further added that leaks of doctored emails would be difficult to disprove and could “be election altering.”

The National Security Agency, FBI and DHS all concluded weeks ago that Russian intelligence agencies conducted, directed or coordinated all the major cyberattacks on U.S. political organizations, including the Democratic National Committee, and individuals, a U.S. official who is participating in the investigations said on Sunday.

However, the official said, White House officials have resisted naming the Russians publicly because doing so could result in escalating cyberattacks, and because it is considered impossible to offer public, unclassified proof of the allegation.

Schiff and Senator Dianne Feinstein, the top Democrat on the U.S. Senate intelligence committee, said last month they had concluded Russian intelligence agencies were “making a serious and concerted effort to influence the U.S. election.”

(Reporting by Dustin Volz and John Walcott; Editing by Nick Zieminski)

FBI Probes Hacks targeting phones of Democratic Party officials

The headquarters of the Democratic National Committee is seen in Washington,

By Mark Hosenball

WASHINGTON (Reuters) – The FBI is investigating suspected attempts to hack mobile phones used by Democratic Party officials as recently as the past month, four people with direct knowledge of the attack and the investigation told Reuters.

The revelation underscores the widening scope of the U.S. criminal inquiry into cyber attacks on Democratic Party organizations, including the presidential campaign of its candidate, former U.S. Secretary of State Hillary Clinton.

U.S. officials have said they believe those attacks were orchestrated by hackers backed by the Russian government, possibly to disrupt the Nov. 8 election in which Clinton faces Republican Party candidate Donald Trump. Russia has dismissed allegations it was involved in cyber attacks on the organizations.

The more recent attempted phone hacking also appears to have been conducted by Russian-backed hackers, two people with knowledge of the situation said.

Federal Bureau of Investigation representatives had no immediate comment, and a Clinton campaign spokesman said they were unaware of the suspected phone hacking.

The Democratic National Committee (DNC) did not respond to a request for comment. An official of the Democratic Congressional Campaign Committee (DCCC) said that nobody at the organization had been contacted by investigators about possible phone hacking.

Interim DNC Chairwoman Donna Brazile told CNN: “Our struggle with the Russian hackers that we announced in June is ongoing – as we knew it would be – and we are choosing not to provide general updates unless personal data or other sensitive information has been accessed or stolen.”

FBI agents had approached a small number of Democratic Party officials to discuss concerns their mobile phones may have been compromised by hackers, people involved said. It was not clear how many people were targeted by the hack or whether they included members of Congress, a possibility that could raise additional security concerns for U.S. officials.

‘OFFICE BRAIN’

If they were successful, hackers could have been able to acquire a wide range of data from targeted cellphones, including call data, text messages, emails, photos and contact lists, one person with knowledge of the situation said.

“In a sense, your phone is your office brain,” said Bruce Schneier, a cyber security expert with Resilient, an IBM company, which is not involved in the investigation. “It’s incredibly intimate.”

“Anything that’s on your phone, if your phone is hacked, the hacker can get it.”

The FBI has asked some of those whose phones were believed to have hacked to turn over their phones so that investigators could “image” them, creating a copy of the device and related data.

U.S. investigators are looking into whether hackers used data stolen from servers run by Democratic organizations or the private emails of their employees to get access to cellphones, one person said.

Hackers previously targeted servers used by the DNC, the body that sets strategy for the party, and the DCCC, which raises money for Democrats running for seats in the House of Representatives, officials have said.

Clinton said during Monday’s presidential debate there was “no doubt” Russia has sponsored hacks against “all kinds of organizations in our country” and mentioned Russian President Vladimir Putin by name.

“Putin is playing a really tough, long game here. And one of the things he’s done is to let loose cyber attackers to hack into government files, to hack into personal files, hack into the Democratic National Committee,” Clinton said.

Trump countered that there was no definitive proof that Russia had sponsored the hacks of Democratic organizations.

“I don’t think anybody knows it was Russia that broke into the DNC,” he said. “It could be Russia, but it could also be China. It could also be lots of other people.”

(Reporting By Mark Hosenball; Editing by Kevin Krolicki and Grant McCool)

Probe of leaked U.S. NSA hacking tools examines operative’s ‘mistake’

By Joseph Menn and John Walcott

SAN FRANCISCO/WASHINGTON (Reuters) – A U.S. investigation into a leak of hacking tools used by the National Security Agency is focusing on a theory that one of its operatives carelessly left them available on a remote computer and Russian hackers found them, four people with direct knowledge of the probe told Reuters.

The tools, which enable hackers to exploit software flaws in computer and communications systems from vendors such as Cisco Systems and Fortinet Inc, were dumped onto public websites last month by a group calling itself Shadow Brokers.

The public release of the tools coincided with U.S. officials saying they had concluded that Russia or its proxies were responsible for hacking political party organizations in the run-up to the Nov. 8 presidential election. On Thursday, lawmakers accused Russia of being responsible.

Various explanations have been floated by officials in Washington as to how the tools were stolen. Some feared it was the work of a leaker similar to former agency contractor Edward Snowden, while others suspected the Russians might have hacked into NSA headquarters in Fort Meade, Maryland.

But officials heading the FBI-led investigation now discount both of those scenarios, the people said in separate interviews.

NSA officials have told investigators that an employee or contractor made the mistake about three years ago during an operation that used the tools, the people said.

That person acknowledged the error shortly afterward, they said. But the NSA did not inform the companies of the danger when it first discovered the exposure of the tools, the sources said. Since the public release of the tools, the companies involved have issued patches in the systems to protect them.

Investigators have not ruled out the possibility that the former NSA person, who has since departed the agency for other reasons, left the tools exposed deliberately. Another possibility, two of the sources said, is that more than one person at the headquarters or a remote location made similar mistakes or compounded each other’s missteps.

Representatives of the NSA, the Federal Bureau of Investigation and the office of the Director of National Intelligence all declined to comment.

After the discovery, the NSA tuned its sensors to detect use of any of the tools by other parties, especially foreign adversaries with strong cyber espionage operations, such as China and Russia.

That could have helped identify rival powers’ hacking targets, potentially leading them to be defended better. It might also have allowed U.S officials to see deeper into rival hacking operations while enabling the NSA itself to continue using the tools for its own operations.

Because the sensors did not detect foreign spies or criminals using the tools on U.S. or allied targets, the NSA did not feel obligated to immediately warn the U.S. manufacturers, an official and one other person familiar with the matter said.

In this case, as in more commonplace discoveries of security flaws, U.S. officials weigh what intelligence they could gather by keeping the flaws secret against the risk to U.S. companies and individuals if adversaries find the same flaws.

Critics of the Obama administration’s policies for making those decisions have cited the Shadow Brokers dump as evidence that the balance has tipped too far toward intelligence gathering.

The investigators have not determined conclusively that the Shadow Brokers group is affiliated with the Russian government, but that is the presumption, said one of the people familiar with the probe and a fifth person.

One reason for suspecting government instead of criminal involvement, officials said, is that the hackers revealed the NSA tools rather than immediately selling them.

The publication of the code, on the heels of leaks of emails by Democratic Party officials and preceding leaks of emails by former U.S. Secretary of State Colin Powell, could be part of a pattern of spreading harmful and occasionally false information to further the Russian agenda, said Jim Lewis, a cybersecurity expert at the Center for Strategic and International Studies.

“The dumping is a tactic they’ve been developing for the last five years or so,” Lewis said. “They try it, and if we don’t respond they go a little further next time.”

(Reporting by Joseph Menn in San Francisco and John Walcott in Washington; Editing by Jonathan Weber and Grant McCool)

Spy agencies concerned about possible U.S. election hacks: NSA chief

Eight year-old Emma Gray Bachrodt holds a "USA" sign while U.S. Democratic presidential candidate Hillary Clinton speaks at a campaign voter registration event at Johnson C. Smith University in Charlotte

By Patricia Zengerle

WASHINGTON (Reuters) – American intelligence agencies are concerned about reports that foreign governments may be attempting to undermine the Nov. 8 U.S. elections through cyber attacks, Admiral Mike Rogers, the director of the National Security Agency, said on Tuesday.

“We continue to be actively concerned,” Rogers told a Senate hearing, responding to a question from Senator John McCain, chairman of the Senate Armed Services Committee.

Marcel Lettre, Under Secretary of Defense for Intelligence, testified that the government is taking any such activities “quite seriously” and said an “aggressive investigation” is under way.

McCain noted that one of the two states in which media reports said there was evidence of attempted Russian hacking was his home state, Arizona.

Some analysts have said Arizona, which recently has been reliably Republican in presidential elections, could be tilting more toward the Democratic nominee, Hillary Clinton, this year. McCain, a Republican, himself is in a tougher than usual re-election fight.

Rogers said he could not provide specifics about spy agencies’ current assessment of the alleged hacking in a public setting. But he added, “I will say this, that it continues to be an issue of great focus … for the foreign intelligence community, attempting to generate insights into what foreign nations are doing in this area.”

Under further questioning, Rogers declined to characterize the activity as by a foreign nation-state.

Lettre said the government would adopt a policy for dealing with any such activity once it had the results of the investigation.

“The FBI and the Department of Homeland Security has an aggressive investigation underway,” Lettre said.

U.S. security officials have said that, starting last year, hackers infiltrated computers of the Democratic National Committee, Clinton’s presidential campaign and her party’s congressional fundraising committee.

U.S. officials said they have concluded that Russia or its proxies were responsible, leading to calls by some Democrats and cyber security officials for the Obama administration to blame Russia publicly.

Kremlin officials have dismissed the allegations as absurd, but there is anxiety in Washington over the possibility that a foreign power might be using hacked information to meddle in the November elections.

(Reporting by Patricia Zengerle; Editing by Jonathan Oatis)

Putin says he doesn’t know who hacked U.S. Democratic Party

Russian President Vladimir Putin meets Japanese Prime Minister Shinzo Abe in Vladivostok

By Jack Stubbs

MOSCOW (Reuters) – Russian President Vladimir Putin said he did not know who was behind the hacking of U.S. Democratic Party organizations but the information uncovered was important, Bloomberg news agency reported on Friday.

In an interview two days before a G20 meeting in China with U.S. President Barack Obama and other world leaders, Putin said it might be impossible to establish who engineered the release of sensitive Democratic Party emails but it was not done by the Russian government.

“Does it even matter who hacked this data?” Putin said. “The important thing is the content that was given to the public.”

“There’s no need to distract the public’s attention from the essence of the problem by raising some minor issues connected with the search for who did it,” he added. “But I want to tell you again, I don’t know anything about it, and on a state level Russia has never done this.”

The hacked emails, released by activist group WikiLeaks in July, appeared to show favoritism within the Democratic National Committee (DNC) for presidential nominee Hillary Clinton and prompted the resignation of the body’s chairwoman.

A computer network used by Clinton’s campaign, and the party’s fundraising committee for the U.S. House of Representatives were also hacked.

Clinton, who polls show as leading Donald Trump in the campaign for the U.S. presidential election in November, has said Russian intelligence services conducted a cyber attack against her party. Some officials have suggested Moscow is trying to influence the U.S. election.

Putin dismissed the allegations. “We have never interfered, are not interfering and do not intend to interfere in domestic politics,” he said.

“We will carefully watch what happens and wait for the election results. Then we are ready to work with any American administration, if they want to themselves.”

Relations between Russia and United States hit a post-Cold War low in 2014 over the Ukraine crisis, and Washington and Moscow have since clashed over diverging policies in Syria.

Obama said in August he would discuss the cyber attack with Putin if Russia was responsible, but it would not “wildly” alter the two countries’ relationship.

The U.S. election contest has been hard fought and frequently dominated by both candidates’ attitudes toward Russia.

Clinton has rounded on her Republican rival Trump for his perceived praise of Putin and what she says is an “absolute allegiance” to Russia’s foreign policy aims. Trump, in return, has said Clinton’s own close ties to the Russian president deserve greater scrutiny.

Putin said both candidates were using shock tactics and that playing “the anti-Russian card” was short-sighted.

“I wouldn’t like for us to follow their example,” he said. “I don’t think they are setting the best example.”

(Reporting by Katya Golubkova,; Writing by Jack Stubbs,; Editing by Angus MacSwan and Mark Trevelyan)

FBI detects breaches against two state voter systems

A padlock is displayed at the Alert Logic booth during the 2016 Black Hat cyber-security conference in Las Vegas, Nevada,

By Jim Finkle and Dustin Volz

WASHINGTON (Reuters) – The FBI is urging U.S. election officials to increase computer security after it uncovered evidence that hackers have targeted two state election databases in recent weeks, according to a confidential advisory.

The warning was in an Aug. 18 flash alert from the FBI’s Cyber Division. Reuters obtained a copy of the document.

Yahoo News first reported the story Monday, citing unnamed law enforcement officials who said they believed foreign hackers caused the intrusions.

U.S. intelligence officials have become increasingly worried that hackers sponsored by Russia or other countries may attempt to disrupt the November presidential election.

Officials and cyber security experts say recent breaches at the Democratic National Committee and elsewhere in the Democratic Party were likely carried out by people within the Russian government. Kremlin officials have denied the allegations of Moscow’s involvement.

Concerns about election computer security prompted Homeland Security Secretary Jeh Johnson to convene a conference call with state election officials earlier this month, when he offered the department’s help in making their voting systems more secure.

The FBI warning did not identify the two states targeted by cyber intruders, but Yahoo News said sources familiar with the document said it referred to Arizona and Illinois, whose voter registration systems were penetrated.

Citing a state election board official, Yahoo News said the Illinois voter registration system was shut down for 10 days in late July after hackers downloaded personal data on up to 200,000 voters.

The Arizona attack was more limited and involved introducing malicious software into the voter registration system, Yahoo News quoted a state official as saying. No data was removed in that attack, the official said.

(Writing by David Alexander; Editing by Lisa Von Ahn)

U.S. offers states help to fight election hacking

By Doina Chiacu

WASHINGTON (Reuters) – The government is offering to help states protect the Nov. 8 U.S. election from hacking or other tampering, in the face of allegations by Republican Party presidential candidate Donald Trump that the system is open to fraud.

Homeland Security Secretary Jeh Johnson told state officials in a phone call on Monday that federal cyber security experts could scan for vulnerabilities in voting systems and provide other resources to help protect against infiltration, his office said in a statement.

Trump has questioned the integrity of U.S. election systems in recent weeks, but his allegations have been vague and unsubstantiated.

The attempts to sow doubts about the 2016 election results coincided with Trump’s slide in opinion polls against Democratic Party candidate Hillary Clinton and missteps in his campaign. His complaints have focused on fears of voter fraud – that people will vote more than once – rather than election rigging.

“I mean people are going to walk in, they’re going to vote 10 times maybe. Who knows? They’re going to vote 10 times. So I am very concerned and I hope the Republicans are going to be very watchful,” Trump said in an Aug. 3 interview.

President Barack Obama dismissed the claims as “ridiculous.” “Of course the elections will not be rigged. What does that mean?” Obama said at a news conference the next day.

In his phone call, Johnson encouraged the state officials to comply with federal cyber recommendations, such as making sure electronic voting machines are not connected to the internet while voting is taking place, the department said.

Concerns in both parties about manipulation of electronic electoral systems are not new. Hackers can wreak havoc in myriad ways, from hijacking a candidate’s website to hacking voting machines or deleting or changing election records.

An Electronic Privacy Information Center report this week said 32 of the 50 states would allow voting by insecure email, fax and internet portals in this election cycle.

(Reporting by Doina Chiacu; Editing by Jonathan Oatis and Grant McCool)

U.S. weighs dangers, benefits of naming Russia in cyber hack

By Warren Strobel and John Walcott

WASHINGTON (Reuters) – Wary of a global confrontation with Russia, U.S. President Barack Obama must carefully weigh how to respond to what security experts believe was Moscow’s involvement in the hacking of Democratic Party organizations, U.S. officials said.

Publicly blaming Russian President Vladimir Putin’s intelligence services would bring instant pressure on Washington to divulge its evidence, which relies on highly classified sources and methods, U.S. intelligence officials said.

One option for Washington is to retaliate against Russia in cyberspace. But the intelligence officials said they fear a rapid escalation in which, under a worst-case scenario, Moscow’s sophisticated cyber warriors could attack power grids, financial systems and other critical infrastructure.

Washington also has diplomacy to manage with Russia in Secretary of State John Kerry’s long-shot attempt to enlist Moscow’s help in ending the Syrian civil war and sustaining the Iran nuclear deal, as well as Russia-NATO tensions over Ukraine and Eastern Europe to manage.

“Despite how outrageous it is to interfere with a democratic election, the costs of coming out and saying the Russians did it would far outweigh the benefits, if there would be any benefits,” said one intelligence official, speaking on condition of anonymity to discuss a sensitive matter.

Russia has denied responsibility for hacking the emails of the Democratic National Committee. Also attacked were a computer network used by Democratic presidential nominee Hillary Clinton’s campaign and the party’s fundraising committee for House of Representative candidates in the Nov. 8 election.

Other current and former officials are arguing for a firm response, however. They said the hack was the latest in a series of aggressive moves by Putin, including Russia’s annexation of Crimea, military intervention to rescue Syrian President Bashar al-Assad, and funding of right-wing and anti-European Union groups in Europe.

Columbia University cyber security expert Jason Healey said at an annual security forum in Aspen, Colorado, on Saturday that the Russians had been very aggressive in cyberspace too.

“I think the president needs to start looking at brush-back pitches,” Healey said, referring to a baseball thrown near the batter as a warning.

NAME AND SHAME?

Intelligence officials and cyber experts said the intrusions themselves were not that unusual. American spy agencies conduct similar electronic espionage outside U.S. borders.

What made this hack a game-changer, they said, was the public release of the DNC emails, via the pro-transparency group WikiLeaks, in an apparent attempt to affect the election.

Government and party officials said they were unaware of any evidence that WikiLeaks had received the hacked materials directly from Russians or that WikiLeaks’ release of the materials was in any way directed by Russians.

The Justice Department’s National Security Division, which is overseeing the investigation, has publicly charged U.S. adversaries – known as “naming and shaming” – before.

The U.S. government blamed North Korea for a damaging attack on Sony Pictures, and in 2014 indicted five members of the Chinese military for computer hacking and economic espionage.

Among adversary nations with significant cyber capabilities, a list that also includes Iran, the Russian government is the only one the Justice Department has not yet charged.

Obama’s homeland security and counter-terrorism advisor Lisa Monaco said the government has developed “best practices” to investigate cyber attacks and decide when to make the results public.

Monaco, also speaking at the Aspen forum, said that in the Sony case, FBI investigators had high confidence North Korea was responsible. The attack was deemed destructive, as well as coercive, because it was retaliation for a movie parodying North Korean leader Kim Jong Un.

“Those two things, along with our confidence in the attribution and the ability to talk about it in a way that would not disclose sources and methods and hinder our ability to make such attribution in the future all combined to say, ‘We’re going to call this out’,” she said.

Elissa Slotkin, an acting assistant secretary of defense, said that for the next decade, the U.S. government faced a fundamental question in dealing with Russia: “How do you get the balance right?”

“Are we being too charitable and giving them too many opportunities to come back to the table, or are we providing such a high level of deterrence that we’re potentially provoking them?” Slotkin asked.

(Additional reporting by Mark Hosenball, Jonathan Landay and Arshad Mohammed; editing by Grant McCool)

U.S. to sanction cyber attackers, cites Russia, China

WASHINGTON (Reuters) – The United States will use sanctions against those behind cyber attacks that target transportation systems or the power grid, the White House said on Tuesday, citing Russia and China as increasingly assertive and sophisticated cyber operators.

The sanctions will be used “when the conditions are right and when actions will further U.S. policy,” White House counter terrorism adviser Lisa Monaco said in prepared remarks to a cyber security conference.

Monaco cited an “increasingly diverse and dangerous” global landscape in which Iran has launched denial-of-service attacks on U.S. banks and North Korea has shown it would conduct destructive attacks.

“To put it bluntly, we are in the midst of a revolution of the cyber threat – one that is growing more persistent, more diverse, more frequent and more dangerous every day,” she said.

The United States is working with other countries to adopt voluntary norms of responsible cyber behavior and work to reduce malicious activity, she said. At the same time, it will use an executive order authorizing sanctions against those who attack U.S. critical infrastructure.

Monaco introduced a new directive from President Barack Obama that establishes a “clear framework” to coordinate the government’s response to cyber incidents.

“It will help answer a question heard too often from corporations and citizens alike – ‘In the wake of an attack, who do I call for help?'” she said.

(Reporting by Doina Chiacu; Editing by Jonathan Oatis)

Likely hack of U.S. banking regulator by China covered up: probe

By Jason Lange and Dustin Volz

WASHINGTON (Reuters) – The Chinese government likely hacked computers at the Federal Deposit Insurance Corporation in 2010, 2011 and 2013 and employees at the U.S. banking regulator covered up the intrusions, according to a congressional report on Wednesday.

The report cited an internal FDIC investigation as identifying Beijing as the likely perpetrator of the attacks, which the probe said were covered up to protect the job of FDIC Chairman Martin Gruenberg, who was nominated for his post in 2011.

“The committee’s interim report sheds light on the FDIC’s lax cyber security efforts,” said Lamar Smith, a Republican representative from Texas who chairs the House of Representatives Committee on Science, Space and Technology.

“The FDIC’s intent to evade congressional oversight is a serious offense.”

The report was released amid growing concern about the vulnerability of the international banking system to hackers and the latest example of how deeply Washington believes Beijing has penetrated U.S. government computers.

The report did not provide specific evidence that China was behind the hack.

Shane Shook, a cyber security expert who has helped investigate some of the breaches uncovered to date, said he did not see convincing evidence in the report that the Chinese government was behind the FDIC hack.

“As with all government agencies, there are management issues stemming from leadership ignorance of technology oversight,” Shook said.

Speaking in Beijing, Chinese Foreign Ministry spokesman Lu Kang repeated that China opposed hacking and acted against it.

People should provide evidence for their accusations and not wave around speculative words like “maybe” and “perhaps”, he told reporters.

“This is extremely irresponsible.”

The FDIC, a major U.S. banking regulator which keeps confidential data on America’s biggest banks, declined to comment. Gruenberg is scheduled to testify on Thursday before the committee on the regulator’s cyber security practices.

Washington has accused China of hacking computers at a range of federal agencies in recent years, including the theft of more than 21 million background check records from the federal Office of Personnel Management beginning in 2014.

WATCHDOG MEMO

The compromise of the FDIC computers by a foreign government had been previously reported in May and some lawmakers had mentioned China as a possible suspect, but the report on Wednesday for the first time cited a 2013 memo by the FDIC’s inspector general, an internal watchdog, as pointing toward China.

“Even the former Chairwoman’s computer had been hacked by a foreign government, likely the Chinese,” the congressional report said, referring to Gruenberg’s predecessor, Sheila Bair, who headed the FDIC from 2006 until 2011 when Gruenberg took over as acting chairman.

Bair could not be immediately reached for comment.

A redacted copy of the 2013 FDIC inspector general’s memo seen by Reuters said investigators were unable to determine exactly which files had been extracted from agency computers.

But a source familiar with the FDIC’s internal investigation said the areas of the regulator’s network that were hacked suggested the intruders were seeking “economic intelligence.”

In all, hackers compromised 12 FDIC workstations, including those of other executives such as the regulator’s former chief of staff and former general counsel, and 10 servers, the congressional report said.

It accused the FDIC of trying to cover up the hacks so as not to endanger the congressional approval of Gruenberg, who was nominated by President Barack Obama and confirmed by the U.S. Senate in November 2012.

A witness interviewed by congressional staff said the FDIC’s current head of its technology division, Russ Pittman, instructed employees not to disclose information about the foreign government’s hack, the report said.

The witness said the hush order was to “avoid effecting the outcome of Chairman Gruenberg’s confirmation,” according to the report. Pittman could not immediately be contacted for comment.

The report also provided details of data breaches in which FDIC employees leaving the regulator took sensitive documents with them. It said current FDIC officials have purposely concealed information about breaches that had been requested by Congress.

U.S. intelligence officials believe Beijing has decreased its hacking activity since signing a pledge with Washington last September to refrain from breaking into computer systems for the purposes of commercial espionage.

At the same time, Obama has acknowledged difficulties in keeping government information secure. In addition, Republican opponents have said that Democratic presidential candidate Hillary Clinton’s use of a private email server when she was secretary of state could have exposed classified information to foreign governments.

(Reporting by Jason Lange and Dustin Volz; Additional reporting by Jim Finkle in Boston, and Ben Blanchard in BEIJING; Editing by Grant McCool)

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