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WASHINGTON – Russian hackers are going after US government officials, defence workers and others in a new email phishing campaign targeting thousands of people, according to Microsoft Corp.
The hackers have sent “a series of highly targeted spearphishing emails” to thousands of people in more than 100 organisations since Oct 22, according to a blog post from Microsoft Threat Intelligence published on Oct 29.
The latest campaign will add to mounting concerns over US failures to outwit suspected Russian and Chinese hackers.
The FBI said on Oct 25 it is investigating unauthorised access by Chinese state-affiliated hackers targeting the commercial telecommunications sector.
In some of the emails that were part of the latest campaign, the senders impersonated Microsoft employees, according to the blog.
Spearphishing involves sending tailored emails to individuals, including links to malicious websites that can then steal information.
It wasn’t immediately clear how many of the attacks, if any, were successful.
Microsoft has said the attacks are perpetrated by a sophisticated Russian nation-state group it calls Midnight Blizzard, which US and UK governments have connected to the SVR, the Russian foreign intelligence service.
The company said in January that the group attacked its corporate systems, getting into a “small number” of email accounts, including senior leadership and employees who work in cybersecurity and legal.
In April, US federal agencies were ordered to analyse emails, reset compromised credentials and work to secure Microsoft accounts.
At the time, the Cybersecurity and Infrastructure Security Agency (Cisa) said the incident represented a “grave and unacceptable risk” to agencies, according to the April directive.
Cisa and US State Department didn’t immediately respond to requests for comment.
The Russian Embassy in Washington didn’t immediately respond to a request for comment. BLOOMBERG
DUBLIN – Ireland’s data protection commission has fined LinkedIn €310 million (S$442 million) for illegally processing the personal data of users within the European Union to deliver targeted advertising.
The decision also includes an order for Microsoft Corp-owned LinkedIn to bring its data processing into compliance with the EU’s General Data Protection Regulation (GDPR), according to a statement by the Irish Data Protection Commission (IDPC) on Oct 24.
Deputy Commissioner Graham Doyle said in a statement that LinkedIn’s processing of personal data without an appropriate legal basis was a “clear and serious violation of data subjects’ fundamental right to data protection”.
It is the sixth-largest fine to be issued under GDPR since it was introduced in 2018.
The Irish regulator has issued hefty fines to several social media companies for GDPR violations in recent years.
Facebook and Instagram parent Meta Platforms Inc has faced the brunt of the penalties, including a record €1.2 billion charge in May 2023 for transferring EU users’ data to the US. The commission fined ByteDance Ltd’s TikTok €345 million in September 2023 over its handling of children’s data.
It is part of a broader crackdown on Big Tech companies by the EU over a range of issues including data privacy, competition and disinformation.
LinkedIn said the case relates to claims from 2018 about some of its digital advertising efforts in the EU.
“While we believe we have been in compliance with the General Data Protection Regulation (GDPR), we are working to ensure our ad practices meet this decision by the IDPC’s deadline,” a spokesperson said in a statement.
Ireland’s data protection commission launched an inquiry into LinkedIn’s data processing practices following a complaint made to the French data regulator. LinkedIn, like many other big tech companies, has its European headquarters in Ireland, which means that local regulators are tasked with enforcing EU rules. BLOOMBERG
WASHINGTON – A previously confidential directive by Biden administration lawyers lays out how military and spy agencies must handle personal information about Americans when using artificial intelligence, showing how the officials grappled with trade-offs between civil liberties and national security.
The results of that internal debate also underscore the constraints and challenges the government faces in issuing rules that keep pace with rapid advances in technology, particularly in electronic surveillance and related areas of computer-assisted intelligence gathering and analysis.
The administration had to navigate two competing goals, according to a senior administration official Joshua Geltzer, the top legal adviser to the National Security Council, “harnessing emerging technology to protect Americans, and establishing guardrails for safeguarding Americans’ privacy and other considerations”.
The White House last month held back the four-page, unclassified directive when President Joe Biden signed a major national security memo that pushes military and intelligence agencies to make greater use of AI within certain guardrails.
After inquiries from The New York Times, the White House has made the guidance public. A close read and an interview with Mr Geltzer, who oversaw the deliberations by lawyers from across the executive branch, offers greater clarity on the current rules that national security agencies must follow when experimenting with using AI.
Training AI systems requires feeding them large amounts of data, raising a critical question for intelligence agencies that could influence both Americans’ private interests and the ability of national security agencies to experiment with the technology.
When an agency acquires an AI system trained by a private sector firm using information about Americans, is that considered “collecting” the data of those Americans?
The guidance says that does not generally count as collecting the training data – so those existing privacy-protecting rules, along with a 2021 directive about collecting commercially available databases, are not yet triggered.
Still, the Biden team was not absolute on that question. The guidance leaves open the possibility that acquisition might count as collection if the agency has the ability to access the training data in its original form, “as well as the authorisation and intent to do so.” NYTIMES
WASHINGTON – The mastermind behind one of the biggest-ever Bitcoin heists was ordered to serve five years in prison for conspiring with his social-media rapper wife to launder money he stole by hacking into the Bitfinex exchange and grabbing cryptoassets now worth billions of dollars.
Ilya “Dutch” Lichtenstein was sentenced in Washington on Nov 14, after he and his wife, Heather Morgan, pleaded guilty last year in a scheme to hide proceeds from the 2016 hack. Morgan, known as “Razzlekhan” in her rap videos, will be sentenced Nov 18. The government recommended an 18-month sentence for her.
Lichtenstein, 37, faced as long as 20 years behind bars. But the government cited his substantial assistance that “has benefited numerous investigations.” The Bitfinex hack resulted in the theft of 119,754 Bitcoin worth about US$71 million (S$23 million) at the time. But since then, the token has surged from US$580 in 2016 to more than US$90,000 this week, boosting the value of the assets to billions.
“This is so massive, it is not comparable to other crypto crimes” based on its scale and complexity, US District Judge Colleen Kollar-Kotelly said before sentencing. Lichtenstein carried out his scheme over several years, which undermines defense claims that his actions were “impulsive,” the judge said.
Lichtenstein, a “highly skilled computer expert,” used several hacking techniques to gain access to the Bitfinex network, and then, in August 2016, fraudulently authorised more than 2,000 transactions to move Bitcoin to a cryptocurrency wallet he controlled, the government said.
He and his wife used sophisticated and meticulous money-laundering techniques to hide the stolen proceeds, including setting up accounts under fictitious identities, moving funds in small amounts, and breaking up the trail of transactions by depositing and withdrawing funds from crypto exchanges and darknet markets. They bought nonfungible tokens, gold and Walmart gift cards, according to the government.
Lichtenstein “became one of the greatest money launderers that the government has encountered in the cryptocurrency space,” prosecutors wrote in an October sentencing memo. “If the defendant were to take what he has learned from this prosecution and incorporate it into a future money laundering scheme, he would be even better-equipped to conceal his activity while monetizing his crimes,” they wrote.
Since his plea last year, Lichtenstein has assisted the government in other criminal cases, including as a government witness in a money-laundering trial involving a mixing service called Bitcoin Fog.
Other hacks
While Lichtenstein had no official criminal history before his arrest in 2022, the Bitfinex hack wasn’t his first, the government said. As a juvenile, he experimented with hacking and financial fraud, and around 2015, he illegally transferred a small amount of PayCoin, an alternative form of virtual currency, prosecutors said. The following year, he stole about US$200,000 from a virtual currency exchange, the government said.
But he also worked in legitimate businesses. While in college, Lichtenstein ran a digital marketing agency from his dorm, and after graduation, a software company he co-founded grew to 30 employees, the government said.
“His decision to use his skills for criminal ends is thus particularly disappointing, but it gives hope for continued successful rehabilitation,” prosecutors said in the sentencing memo.
Morgan attended her husband’s sentencing, along with Lichtenstein’s family. Lichtenstein expressed remorse to the judge and pledged that he would use his skills to help with cybersecurity. “I can make a real difference in the fight against cybercrime,” he said.
He asked that his wife avoid prison time. “Heather is only involved in this case because of me,” he said. BLOOMBERG
WASHINGTON – China-linked hackers have intercepted surveillance data intended for American law enforcement agencies after breaking in to an unspecified number of telecom companies, US authorities said on Nov 13.
The hackers compromised the networks of “multiple telecommunications companies” and stole US customer call records and communications from “a limited number of individuals who are primarily involved in government or political activity”, according to a joint statement released by the Federal Bureau of Investigation (FBI) and the US cyber watchdog agency CISA.
The two agencies said the hackers also copied “certain information that was subject to US law enforcement requests pursuant to court orders”.
The statement gave few other details, and the Cybersecurity and Infrastructure Security Agency immediately responded to a request for comment.
The FBI declined to comment.
The announcement confirms the broad outlines of previous media reports, especially those in the Wall Street Journal, that Chinese hackers were feared to have opened a back door into the interception systems used by law enforcement to surveil Americans’ telecommunications.
That, combined with reports that Chinese hackers had targeted telephones belonging to then-presidential and vice-presidential candidates Donald Trump and J.D. Vance, along with other senior political figures, raised widespread concern over the security of America’s telecommunications infrastructure.
The matter is already slated for investigation by the Department of Homeland Security’s Cyber Safety Review Board, which was set up to analyse the causes and fallout of major digital security incidents.
The Chinese Embassy in Washington did not immediately return a message seeking comment. Beijing routinely denies US hacking allegations. REUTERS
An Iranian hacking group is actively scouting U.S. election-related websites and American media outlets as election day nears, according to a new Microsoft blog published on Wednesday. Researchers say the activity suggests “preparations for more direct influence operations.”
The hackers – dubbed Cotton Sandstorm by Microsoft and linked to Iran’s Islamic Revolutionary Guard Corps – performed reconnaissance and limited probing of multiple “election-related websites” in several unnamed swing states, the report notes. In May, they also scanned an unidentified U.S. news outlet to understand its vulnerabilities.
“Cotton Sandstorm will increase its activity as the election nears given the group’s operational tempo and history of election interference,” researchers wrote. The development is particularly concerning because of the group’s past efforts.
Iran’s mission to the United Nations did not immediately respond to a request for comment. In recent past comments, they denied any involvement in 2024 election-related hacking activity.
In 2020, Cotton Sandstorm launched a different cyber-enabled influence operation shortly before the last presidential election. Posing as the right-wing “Proud Boys,” the hackers sent thousands of emails to Florida residents, threatening them to “vote for Trump or else!”.
The group also released a video on social media, purporting to come from hacktivists, where they showed them probing an election system. While that operation never affected individual voting systems, the goal was to cause chaos, confusion and doubt, senior U.S. officials said at the time.
Following the 2020 election, Cotton Sandstorm also ran a separate operation that encouraged violence against U.S. election officials who had denied claims of widespread voter fraud, Microsoft said.
The Office of the Director of National Intelligence, which is coordinating the federal effort to defend the election from foreign influence, did not immediately respond to a request for comment. REUTERS