U.S. charges three Syrian hackers, Justice Department says

WASHINGTON (Reuters) – U.S. authorities have charged three Syrian nationals who are current or former members of the Syrian Electronic Army with multiple conspiracies related to computer hacking, the U.S. Justice Department said on Tuesday.

Ahmad Umar Agha, 22, and Firas Dardar, 27, were charged with a criminal conspiracy that included “a hoax regarding a terrorist attack” and “attempting to cause mutiny of the U.S. armed forces,” the department said in a statement. Dardar and Peter Romar, 36, were separately charged with other conspiracies, it said.

The FBI announced on Tuesday it was adding Agha and Dardar to its Cyber Most Wanted list and offering a reward of $100,000 for information leading to their arrest, the statement said.

Agha and Dardar, who are believed to reside in Syria, began their criminal activities in or around 2011 under the name of the Syrian Electronic Army in support of the Syrian government, the statement said.

In June 2015, the U.S. Army said it temporarily took down its website after the Syrian Electronic Army hacked into the site and posted messages.

(Reporting by Washington Newsroom)

Apple fight could escalate with demand for ‘source code’

SAN FRANCISCO (Reuters) – The latest filing in the legal war between the planet’s most powerful government and its most valuable company gave one indication of how the high-stakes confrontation could escalate even further.

In what observers of the case called a carefully calibrated threat, the U.S. Justice Department last week suggested that it would be willing to demand that Apple turn over the “source code” that underlies its products as well as the so-called “signing key” that validates software as coming from Apple.

Together, those two things would give the government the power to develop its own spying software and trick any iPhone into installing it. Eventually, anyone using an Apple device would be unable to tell whether they were using the real thing or a version that had been altered by officials to be used as a spy tool.

Technology and security experts said that if the U.S. government was able to obtain Apple’s source code with a conventional court order, other governments would demand equal rights to do the same thing.

“We think that would be pretty terrible,” said Joseph Lorenzo Hall, chief technologist at the nonprofit Center for Democracy & Technology.

The battle between Apple and the U.S Justice Department has been raging since the government in February obtained a court order demanding that Apple write new software to help law enforcement officials unlock an iPhone associated with one of the shooters in the December attack in San Bernardino, California that killed 14 people.

Apple is fighting the order, arguing that complying with the request would weaken the security of all iPhones and create an open-ended precedent for judges to make demands of private companies.

The Justice Department’s comments about source code and signing keys came in a footnote to a filing last week in which it rejected Apple’s arguments. Apple’s response to the DOJ brief is expected on Tuesday.

Justice Department lawyers said in the brief that they had refrained from pursuing the iOS source code and signing key because they thought “such a request would be less palatable to Apple. If Apple would prefer that course, however, that may provide an alternative that requires less labor by Apple.”

The footnote evoked what some lawyers familiar with the case call a “nuclear option,” seeking the power to demand and use the most prized assets of lucrative technology companies.

A person close to the government’s side told Reuters that the Justice Department does not intend to press the argument that it could seize the company’s code, and someone on Apple’s side said the company isn’t worried enough to counter the veiled threat in its brief due Tuesday.

But many people expect the iPhone matter to reach the U.S. Supreme Court, and thus even fallback legal strategies are drawing close scrutiny.

ODDS OF SUCCESS UNCLEAR

There is little clarity on whether a government demand for source code would succeed.

Perhaps the closest parallel was in a case filed by federal prosecutors against Lavabit LLC, a privacy-oriented email service used by Edward Snowden. In trying to recover Snowden’s unencrypted mail from the company, which did not keep Snowden’s cryptographic key, the Justice Department got a court order forcing the company to turn over another key instead, one that would allow officials to impersonate the company’s website and intercept all interactions with its users.

“Lavabit must provide any and all information necessary to decrypt the content, including, but not limited to public and private keys and algorithms,” the lower court ruled.

Lavabit shut down rather than comply. But company lawyer Jesse Binnall said the Fourth Circuit Court of Appeals, which upheld the lower ruling, did so on procedural grounds, so that the Justice Department’s win would not influence much elsewhere.

In any case, full source code would be even more valuable than the traffic key in the Lavabit case, and the industry would go to extreme lengths to fight for it, Binnall said.

“That really is the keys to the kingdom,” Binnall said.

Source code is sometimes inspected during lawsuits over intellectual property, and the Justice Department noted that Apple won permission to review some of rival Samsung’s <005930.KS> code in one such case. In that case and similar battles, the code is produced with strict rules to prevent copying.

No cases brought by the government have led to that sort of code production, or at least none that have come to light.

But intelligence agencies operate under different rules and have wide latitude overseas. Some advanced espionage programs attributed to the United States used digital certificates that were stolen from Taiwanese companies, though not full programs.

U.S. software code may have been sought in other cases, such as investigations relying on the Patriot Act or the Foreign Intelligence Surveillance Act (FISA), which applies within American borders.

Several people who have argued before the special FISA court or are familiar with some of its cases say they know of no time that the government has sought source code.

(Reporting by Joseph Menn; Editing by Jonathan Weber and Cynthia Osterman)

Government announces new anti-terrorism task force, initiative

The United States government took new steps in the fight against the Islamic State and other extremist groups on Friday, with three separate departments unveiling new measures designed to help stop terrorist organizations from spreading their radical messages to a global audience.

The Department of Justice and Department of Homeland Security teamed up to establish a new anti-extremism task force and the State Department created a new Global Engagement Center that will help counter terrorist propaganda, according to news releases from the departments.

“The horrific attacks in Paris and San Bernardino this winter underscored the need for the United States and our partners in the international community and the private sector to deny violent extremists like ISIL fertile recruitment ground,” National Security Council spokesman Ned Price said in a statement about the new efforts, using an acronym for the Islamic State.

Price noted the announcement came on the day that top White House and national security officials were meeting with several leading technology companies in California’s Silicon Valley.

Lawmakers and President Barack Obama have publicly called for more to be done to help prevent terrorist organizations from using social media to share information about their actions and messages. In December, George Washington University’s Program on Extremism released a report that said it identified at least 300 Islamic State sympathizers in the United States who spread propaganda or communicated with other “like-minded individuals” on social media.

Following the San Bernardino terrorist attacks, lawmakers proposed legislation that would require social media companies to report any evidence of terrorist activities to the proper authorities. The Department of Justice has said one of the San Bernardino shooters pledged allegiance to the leader of the Islamic State on Facebook on the morning of the deadly rampage.

“Today’s developments reflect President Obama’s commitment to take every possible action to confront and interdict terrorist activities wherever they occur, including online,” Price said in a statement.

The State Department said its Global Engagement Center would “more effectively coordinate, integrate and synchronize” its anti-terrorism communications. The State Department currently runs a social media campaign called “Think Again Turn Away,” that says it offers “truths about terrorism.” Its recent Twitter postings tout victories the United States-led coalition and Iraqi military have scored against ISIS, including killing of 75 terrorists and destroying equipment.

It’s not exactly clear if or how this new effort will differ from the existing campaign.

The State Department’s news release said the Global Engagement Center will “focus more on empowering and enabling partners … who are able to speak out against these groups and provide an alternative to ISIL’s nihilistic vision.” The department said the efforts will center on things like how terrorists treat women and defectors, rather than what the groups publicize.

The Department of Justice said the Countering Violent Extremism Task Force is part of the government’s increased effort “to prevent extremists from radicalizing and mobilizing recruits, especially here at home.” The task force will aim to coordinate the anti-terrorism efforts of a variety of government agencies, bringing officials from the Homeland Security and Justice departments, FBI and National Counterterrorism Center together under one roof.

CIA Helped Program Spying On U.S. Cellphones

A new report shows the CIA gave vital help in the Justice Department’s development of technology that would scan and steal data from the cellphones of Americans.

The CIA and the U.S. Marshals Service created a device that attaches to a plane or helicopter and mimics a cellphone tower.  This will cause phones within the range of the device to send all its identifying information to the unit.

The program flies planes around the country to cover almost the entire population.  The units not only collect data from large numbers of citizens not involved in any kind of illegal activity, it can also interrupt actual cellphone service.

The reason the CIA is working with the Marshals is because the CIA is banned from doing domestic spy work.  Even if the CIA provides the equipment, the actual gathering of data is done by a domestic law enforcement organization.

The system works by identifying a target’s cell phone and then having the aircraft circle the area until they pinpoint the target within three yards of his actual position.  The technology has been used in the middle east to track terrorists in Iraq and Afghanistan.

“There’s a lot of privacy concerns in something this widespread, and those concerns only increase if we have an intelligence agency coordinating with them,” Andrew Crocker of the Electronic Frontier Foundation told the Wall Street Journal.  The EFF has filed a lawsuit seeing more information on the program and its funding.

None of the major cell companies would comment to the Journal about the operation or their customer’s information being collected without a warrant.

Justice Department Uses Fake Cell Towers On Airplanes

The Justice Department has been spying on millions of Americans through the use of fake cell phone towers attached to airplanes.

The Wall Street Journal revealed the existence of the U.S. Marshals Service program, which reached full functionality in 2007.  The Marshals fly Cessna aircraft from at least five metropolitan area airports.  The flights can cover most of the U.S. population.

The devices on the airplanes mimic cell phone towers and allow the Marshals to trick cell phones into reporting registration information.  Tens of thousands of cellphones have their data captured during a single flight.

Justice Department officials would not confirm to the Journal the existence of the program.  An official said that to discuss it would allow criminal suspects or foreign powers to determine ways U.S. officials collect intelligence.  He said nothing is done that does not meet federal law including gaining a court’s approval.

The system reportedly can collect a phone’s information even if you have a phone with encryption capabilities, such as the iPhone 6.